full Annual Report 2006 (PDF 3.2MB)

Kajima GroupMedium-Term Business Plan (Financial Year to March 2007—Financial Year to March 2009)Announced on May 18, 2006Credibility and TrustOur Credibility and TrustMedium-Term Business Plan4Our goals for the three-year medium-term businessplan ended in the financial year to March 2006were to secure consolidated recurring profit ofmore than ¥42.0 billion and reduce our level ofinterest-bearing debt. As a result of our efforts toenhance business profitability, improve our financialposition, strengthen earnings capacity and diversifysources of earnings, we exceeded this figure, andachieved nearly all targets in our initial plan.The basic principles of the new medium-term businessplan, launched in April 2006 and extendingthrough the financial year to March 2009,are “Focus on client orientation” and “Ensurecorporate ethics.”In executing our business, we emphasize workingwith the client, to maintain the level of trustworthinessexpected of the Kajima Group. We will significantlyenhance our efforts with regard to quality,safety and the environment, while respecting andfully enforcing compliance and CSR based on selfdisciplinedcorporate ethics.Through such company-wide efforts, we will realizea corporate culture filled with the spirit of challenge,achieve a higher earnings capacity, and raise ourcorporate value by fostering vigorous and enthusiasticemployees, as we seek to make furtherstrides in our development.I. Earnings Targets (Financial Year toMarch 2009)Our target is to establish a structure capable ofmaintaining a stable level of consolidated recurringprofit of more than ¥60.0 billion annually,raising profitability to an even higher level. At thesame time, we will maintain a proactive stancewith regard to return of profit to investors andstakeholders, and by cutting interest-bearing debtand enhancing shareholders’ equity, achieve adebt/equity ratio of around 1.00.II. Business StrategiesDeeply cultivate our mainstay construction business,and strengthen technology and marketing•To further boost competitiveness in the coredomestic construction business, we will enhanceour sales capability to win contracts through aproject proposal capacity that respects the growingsophistication and diversification of customerneeds, and through our advanced technologyand engineering capabilities, thereby boostingearning capacity.•We will pursue synergistic effects in the constructionbusiness through proactive expansion of thereal estate development business, strengtheningthe environment and private finance initiative (PFI)businesses, and expanding the constructionrelatedfield, seeking to enhance the earningscapacity of the Kajima Group.Principal measures for these strategies are asfollows.1. ConstructionDomestic Construction Business•We will strengthen our project proposal capacityand competitiveness through efforts to ensurecloser cooperation between sales, design andconstruction, and by enhancing our productionplanning and estimate functions at the time ofreceipt of the contract. In particular, we will bolsterthe business framework by sector, such as forelectronic devices and healthcare.•Responding to the growth of comprehensive evaluationsystems as a result of laws related to thepromotion of quality maintenance for public