full Annual Report 2003(5.9
full Annual Report 2003(5.9
full Annual Report 2003(5.9
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<strong>Annual</strong> <strong>Report</strong> <strong>2003</strong><br />
For the year ended March 31, <strong>2003</strong><br />
Kajima Corporation
c2<br />
Profile<br />
Twenty years after its founding in 1840, Kajima Corporation constructed Japan’s<br />
first Western-style building—the Eiichiban kan—in Yokohama. Since then, Kajima<br />
has rapidly developed its operations by anticipating future trends in all types of<br />
construction-related needs. The Company’s activities have encompassed the railway<br />
construction and electric power development that propelled Japan’s initial<br />
modernization as well as the coastal industrial developments, high-rise structures,<br />
nuclear power plants, and maritime-related projects that helped the nation rise<br />
quickly to economic superpower status. Today, as one of Japan’s leading construction<br />
companies Kajima maintains subsidiaries in North America, Europe, and Asia<br />
and is active in construction and real estate development business around the<br />
world.<br />
With an eye to the dynamic changes under way in the operating and social environments,<br />
Kajima will continue to evolve, supported by superior technological expertise,<br />
rich human resources, and a pioneer spirit. By working in close cooperation<br />
with our stockholders, customers, and local communities, we are confident we can<br />
contribute to a brighter future for all.<br />
Contents<br />
Financial Highlights (Consolidated and<br />
Non-Consolidated) 1<br />
Message from the Management 2<br />
Kajima Group Medium-Term Business Plan<br />
(Fiscal 2004 to Fiscal 2006) 4<br />
Domestic Operations 6<br />
•Construction Business 6<br />
•Real Estate Development 10<br />
•Design 12<br />
Overseas Operations 14<br />
•Construction and Real Estate<br />
Development 14<br />
Research and Development 18<br />
Highlights 20<br />
Financial Section 22<br />
Overseas Network 66<br />
Principal Subsidiaries and Affiliates 68<br />
Board of Directors and Auditors 70<br />
Corporate Data 70<br />
Cautionary Statements<br />
This <strong>Annual</strong> <strong>Report</strong> includes forward-looking statements that represent Kajima’s assumptions and<br />
expectations in light of currently available information. These statements reflect industry trends,<br />
clients’ situations and other factors, and involve risks and uncertainties which may cause actual<br />
performance results to differ from those discussed in the forward-looking statements in accordance<br />
with changes in the domestic and overseas business environment.
Financial Highlights (Consolidated and Non-Consolidated)<br />
KAJIMA Corporation (and Consolidated Subsidiaries)<br />
For the years ended March 31<br />
<strong>2003</strong> 2002 <strong>2003</strong><br />
(Thousands of<br />
Consolidated: (Millions of Yen) U.S. Dollars)<br />
Revenues ¥1,874,802 ¥2,060,353 $15,623,350<br />
Net Income (Loss) 10,111 (41,153) 84,258<br />
Total Assets 2,024,226 2,226,712 16,868,550<br />
Stockholders’ Equity 159,017 180,220 1,325,142<br />
Per Share: (Yen) (U.S. Dollars)<br />
Basic Net Income (Loss) ¥0,0010.44 ¥000(43.05) $0,0000.087<br />
(Thousands of<br />
Non-Consolidated: (Millions of Yen) U.S. Dollars)<br />
Revenues ¥1,458,086 ¥1,550,317 $12,150,717<br />
Net Income (Loss) 8,515 (47,794) 70,958<br />
Total Assets 1,680,439 1,826,910 14,003,658<br />
Stockholders’ Equity 184,011 206,013 1,533,425<br />
Contract Awards 1,139,509 1,200,432 9,495,908<br />
Total Contract Backlog 1,385,832 1,704,409 11,548,600<br />
Per Share: (Yen) (U.S. Dollars)<br />
Basic Net Income (Loss) ¥0,0008.86 ¥000(49.72) $0,0$00,000.074<br />
Cash Dividends 5.00 7.00 0.042<br />
Notes: 1. The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been<br />
translated from yen at the approximate exchange rate in Tokyo on March 31, <strong>2003</strong>, of ¥120=U.S.$1. The translations should<br />
not be construed as representations that Japanese yen have been, could have been or could in the future be converted into<br />
U.S. dollars at that or any other rate.<br />
2. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the<br />
weighted-average number of common shares outstanding for the years ended March 31, <strong>2003</strong> and 2002, respectively.<br />
3. Diluted net income (loss) per share is not disclosed because the Companies have nothing which might dilute the per share<br />
information for the year ended March 31, <strong>2003</strong> and because of the net loss of the Companies for the year ended March 31,<br />
2002 in the consolidated and non-consolidated results.<br />
1
2<br />
Message from the Management<br />
Rokuro Ishikawa<br />
Chairman<br />
Operating Environment<br />
Japanese domestic demand remained subdued overall throughout fiscal <strong>2003</strong><br />
(ended March 31, <strong>2003</strong>), as persistent deflation and steadily deteriorating job<br />
markets kept personal consumption and business investment in check. Business<br />
confidence suffered amid deflationary spirals involving falling land and stock prices.<br />
Concern over a stalling U.S. economy added to the uncertainty, further clouding the<br />
economic outlook.<br />
In the Japanese construction market, private domestic demand for construction<br />
services continued to slide, most notably in the manufacturing sector. Public-sector<br />
demand also fell, as fiscal consolidation induced central and local governments to<br />
rein in public works spending.<br />
Geopolitical risks constrained overseas markets in the latter half of the period, preventing<br />
the economies of the U.S. and Europe from achieving a robust recovery.<br />
Results<br />
Unable to completely avoid the negative influence of these market conditions, the<br />
Kajima Group on a consolidated basis recorded mixed results for fiscal <strong>2003</strong>.<br />
Revenues fell 9.0% from the previous term to ¥1,874.8 billion, primarily due to a<br />
decrease in the total construction revenues of the Company and its consolidated<br />
companies in Japan and overseas.<br />
These shrinking construction revenues and a less favorable gross profit margin<br />
combined to bring gross profit down 9.6% year on year. As a result, operating<br />
income declined 14.2% to ¥36.3 billion. Consolidated net income bounced back to<br />
¥10.1 billion, after a loss of ¥41.2 billion in the previous fiscal year, when the Group<br />
booked a large loss to restructure its asset holdings.<br />
A New Medium-Term Business Plan<br />
To achieve sustained growth and development into the future, the Kajima Group<br />
has been aggressively pursuing a medium-term business plan, known as the Next<br />
Three-Year Plan, which was formulated in fiscal 2002. However, the rapid changes<br />
in the business environment surrounding the Group, including the shrinking construction<br />
market and the deepening of deflationary trends in Japan, have significantly<br />
exceeded the assumptions made when the plan was drafted early in 2001.
Sadao Umeda<br />
President<br />
Therefore, while vigorously pursuing measures to strengthen the Group’s earning<br />
power and diversify sources of profits, we prepared a new medium-term plan one<br />
year earlier than originally intended, targeting the three years from fiscal 2004 to fiscal<br />
2006 (ending March 31, 2006). During the fiscal 2004 to fiscal 2006 period, we<br />
aim to swiftly enhance profitability through measures that include a revamp of our<br />
retirement pensions system. We are currently focusing the efforts of the entire<br />
Group on this plan.<br />
In terms of practical business strategies, we will work to secure orders in our construction<br />
business by strategically shaping projects through planning and technical<br />
proposals and by taking more initiative in urban renewal projects. On the production<br />
side, we will further streamline our production systems, promote centralized and<br />
overseas procurement, and reinforce synergies among Group companies through<br />
renewal and other projects, in an effort to further improve project revenues. At the<br />
same time, we will expand and strengthen overseas operations, development projects,<br />
private finance initiative (PFI) projects, engineering projects, and the environmental<br />
business, and build in further earning opportunities over the whole life-cycle<br />
of buildings. As a result of these strategies, we hope to diversify sources of revenue<br />
and build a solid base for long-term, stable profitability. We will also promote strategic<br />
and selective research and development.<br />
Along with these policies, we will improve and strengthen corporate structures and<br />
financial performance by focusing strong and sustained efforts on paring fixed<br />
costs and personnel expenses, restructuring the head office and branches, cutting<br />
back on asset holdings, and reducing interest-bearing debt.<br />
We are also reviewing our corporate pension system in an effort to establish a stable<br />
system that is free from asset management risk. (The medium-term business<br />
plan is outlined on the following pages.)<br />
Finally, we would like to request the understanding and support of our shareholders<br />
and all other interested parties.<br />
Rokuro Ishikawa<br />
Chairman<br />
Sadao Umeda<br />
President<br />
3
4<br />
Kajima Group Medium-Term Business Plan (Fiscal 2004 to Fiscal 2006)<br />
Business Strategy<br />
The Kajima Group will meet increasingly sophisticated customer needs in shrinking construction<br />
markets by <strong>full</strong>y utilizing its technical capabilities and providing superior quality. In doing<br />
so, Kajima will increase market share as well as profitability in its core construction business.<br />
More specifically, Kajima will expand its presence in urban renewal markets where Kajima’s<br />
construction expertise and real estate development experience can be integrated to produce<br />
unique solutions. Kajima will focus on market segments that require engineering, environmental,<br />
and renovation skills and input. The Group will also work to build additional sources<br />
of revenue including PFI projects, life-cycle management services, and overseas ventures.<br />
Kajima will also improve business fundamentals by cutting back administrative expenses and<br />
taking measures to reduce financial risk.<br />
The following are the specific targets and tactics of the plan.<br />
Performance Targets for Fiscal 2006 (Ending March 31, 2006)<br />
Consolidated Non-consolidated<br />
Revenues ¥1,600 billion ¥1,100 billion<br />
Recurring profit ¥42 billion or more ¥32 billion or more<br />
Interest-bearing debt ¥480 billion or less ¥300 billion or less
Principal Tactics<br />
1. Augment profitability of the construction business<br />
(1) Secure orders by enhancing marketing initiatives<br />
• Assist clients to coordinate pre-construction tasks, provide clients with technical advice<br />
that makes strategic sense, and integrate marketing/design/construction staff in ways that<br />
allow this marketing approach to work most efficiently.<br />
• Aggressively pursue projects where Kajima’s know-how and expertise can have the greatest<br />
impact. Specifically targeted are “engineering” and “environmental” fields and reinforcing<br />
renovation operations.<br />
(2) Improve project profit margins by boosting cost-competitiveness<br />
2. Strengthen involvement in overseas business<br />
3. Diversify and expand sources of profits<br />
(1) Real estate operations in Japan<br />
• Launch complex, large-scale development projects in strategically selected CBD or railwaylinked<br />
locations.<br />
• Achieve sufficiently high returns on equity by structuring deals such that the funds invested<br />
by Kajima are minimized and/or quickly recovered.<br />
• Launch a real estate investment fund (tentatively called the Kajima Fund) with a mission to<br />
acquire and manage income producing properties that will generate stable fees/dividends<br />
over the long haul.<br />
(2) Enhance involvement in PFI projects<br />
(3) Building life-cycle management<br />
• Enhance capabilities in the area of building maintenance and operation as well as consulting<br />
on related tasks.<br />
4. Focused research and development<br />
Stay focused on innovations that enable cost reduction, shortening of works schedules, and<br />
improvements in other areas of importance to Kajima.<br />
5. Cut fixed costs and selling and administrative expenses<br />
(1) Downsize the workforce<br />
(2) Revamp the retirement benefit system, etc.<br />
(3) Slim the administrative divisions and cut back on selling and administrative<br />
expenses<br />
6. Restructure the head office and branches<br />
7. Reinforce Group management systems (enhance revenue<br />
generating capacity and increase in consolidated profits)<br />
8. Improve risk management and return on assets<br />
Reduce assets by disposing of asset holdings (shares, real estate, etc.) and reduce interestbearing<br />
debt (target for fiscal 2006 year-end: reduce consolidated interest-bearing debt to<br />
¥480 billion or less).<br />
9. Strengthen the Kajima brand<br />
5
6<br />
Roppongi Hills Mori Tower<br />
Winds Sasebo<br />
DOMESTIC OPERATIONS<br />
Kajima<br />
Corporation<br />
Construction Business<br />
During fiscal <strong>2003</strong>, the Japanese construction industry faced a<br />
challenging business climate amid enormous structural changes in<br />
the market, including a slump in investment and the imbalance<br />
between the falling scale of construction investment and the<br />
increasing number of construction businesses. Against a high of<br />
¥84,000 billion recorded in fiscal 1993, investment in construction<br />
for fiscal 2004, amid ongoing structural reform, appears likely to<br />
fall as low as ¥54,000 billion as a result of a reduction in publicsector<br />
investment and a decline and shifting offshore of privatesector<br />
investment in plant and equipment. A look at the number of<br />
construction companies as of March 31, <strong>2003</strong> reveals that there<br />
were 9.4% more companies in fiscal <strong>2003</strong> than in the days of peak<br />
construction investment, indicating a fiercely competitive environment.<br />
Given such circumstances, the current difficult situation is<br />
likely to continue for the foreseeable future, as investment in construction<br />
is not expected to grow in the medium to long term.<br />
Influenced by these environmental factors, the performance of<br />
Kajima’s operations in Japan for fiscal <strong>2003</strong> was as follows. The<br />
value of contracts awarded decreased 9.6% from the previous<br />
term to ¥1,132.4 billion due to a significant decline in orders for<br />
construction projects by non-manufacturing industries. Total revenues<br />
across Japan declined 10.8% year on year to ¥1,449.0 billion.<br />
The gross profit margin for completed works decreased from<br />
6.8% in fiscal 2002 to 6.6% for the term under review as a result of<br />
a decline in total revenues and continued fierce price competition.<br />
Gross income of ¥101.8 billion was recorded for fiscal <strong>2003</strong>.<br />
<strong>Annual</strong> <strong>Report</strong><br />
<strong>2003</strong><br />
Nakanoshima Mitsui Building
TOKI MESSE: Niigata Convention Center • Bandaijima Building<br />
PENTA-KUN Tama Center Branch<br />
In light of the performance outlined above, a new Medium-Term<br />
Business Plan (fiscal 2004 to fiscal 2006) was recently formulated<br />
to overlap the final year of the Next Three-Year Plan (fiscal 2002 to<br />
fiscal 2004). The plan was developed to address the negative business<br />
environment, which is deteriorating even faster than expected,<br />
and is a product of Kajima’s awareness of the urgent need to<br />
establish a stable revenue base for the aggressive promotion of<br />
stronger earnings and more diverse sources of revenue. In the<br />
construction business, the core business of the Kajima Group, the<br />
most pressing issues are increasing Kajima’s share of all contracts,<br />
strengthening earnings capacity and diversifying sources of<br />
income.<br />
To enhance the Group’s share of contracts, Kajima will provide<br />
clients with ideas and technical advice to assist the launch of their<br />
projects. More specifically, Kajima is putting in place an organizational<br />
framework that will help clients coordinate pre-construction<br />
tasks, provide clients with strategically sound technical advice, and<br />
integrate the Group’s marketing, design and construction functions.<br />
In addition, the Group will make the most of Kajima’s technical<br />
expertise in urban renaissance projects and projects involving<br />
special zones for structural reform, and will expand and strengthen<br />
enterprise and sector-based marketing resources based on market<br />
trends. In the engineering sector, where demand is predicted to<br />
rise, Kajima intends to increase <strong>full</strong>-turnkey contracts for building<br />
production-related facilities and distribution facilities. In addition to<br />
7
8<br />
Kinokawa Viaduct<br />
Akita Highway, Gojome IC<br />
No. 10 and 11 LNG underground<br />
storage tanks at TEPCO’s Futtsu<br />
electric power plant<br />
Nagoya City Subway, Sunada-<br />
Bashi, East Construction Area<br />
the construction of facilities, Kajima aims to cross new business<br />
boundaries by providing unparalleled solutions that encompass all<br />
services from the planning of facilities through their operation and<br />
maintenance. In the environmental sector, Kajima will expand its<br />
recycled-resources business, focusing on waste-to-resource conversion,<br />
soil rehabilitation and water treatment. The Group will also<br />
deploy resources for the recycling of organic waste, wind power<br />
and the dismantling of existing incinerators. In renewal projects,<br />
Kajima will generate customer demand that leads to new contracts<br />
by making the most of proprietary technologies related to in situ<br />
seismic isolation and earthquake-proofing reinforcement, the<br />
Group’s various consultation and assessment services, and the<br />
Kajima Customer Building Support Center.<br />
Kajima’s initiatives for enhancing earning power, or increasing the<br />
profit margin on work, are aimed at bolstering on-site productivity.<br />
To accomplish this, Kajima will take <strong>full</strong> advantage of a diverse<br />
range of production systems that enable rationalized construction<br />
costs and shorter work schedules. Kajima is making maximum use<br />
of information technology to make labor savings and reduce costs.<br />
Furthermore, Kajima’s goal is to make thoroughgoing cost reductions<br />
by reforming procurement activities through adopting practices<br />
such as centralized procurement by branches, overseas<br />
procurement and procurement using e-commerce.<br />
To diversify revenue sources, Kajima will engage in strategic largescale<br />
and complex projects, mainly real estate development projects<br />
within Japan, such as projects in the Tokyo central business<br />
district and developments in the vicinity of transportation hubs.<br />
Another source of revenue is expected from the establishment of<br />
the Kajima Fund, which aims to promote leasing projects and thus<br />
acquire long-term stable revenues. Kajima will also gear up to be a<br />
leading figure in the field of PFI projects, taking a careful approach<br />
to project selection. The Kajima Group will work together to promote<br />
maintenance, control and management services aimed at<br />
acquiring a wide array of revenue opportunities. In the LCM (lifecycle<br />
management) sector, the framework for LCM initiatives will<br />
be strengthened on a Group basis in terms of the maintenance,<br />
control and management of facilities as well as consulting services.<br />
Kajima has set its sights on increasing contract opportunities by<br />
enhancing its services for life-cycle management of buildings.<br />
The essence of Kajima’s business is to acquire revenue by providing<br />
invaluable services to customers. As it makes ever greater use<br />
of its technical capabilities and expertise, the Company’s ambition<br />
is to provide customers with new services and create new markets<br />
by stimulating customer demand. By continuing to accurately<br />
assess market changes, Kajima will strive to develop projects that<br />
ensure the most effective use of the Group’s resources, in particular<br />
in sectors where future growth is anticipated. Kajima will do its<br />
utmost to ensure growth for the entire Group as it continues to fulfill<br />
all its obligations to society.
Yamaguchi Reservoir<br />
New Building Construction Contracts<br />
•Muromachi Mitsui New Building Construction Project<br />
Use: Office, hotel, retail, parking and common area, Floor area: 130,752 m2 Structure: S and SRC, partially RC 4 basements, 38 floors above ground,<br />
1 penthouse<br />
•Shiodome Sumitomo Building Construction Project<br />
Use: Office, hotel, retail, parking, Floor area: 99,400 m 2<br />
Structure: S, RC, SRC 3 basements, 25 floors above ground, 2 penthouses<br />
•Akasaka 1-chome Project<br />
Use: Office, condominiums, retail, Floor area: 74,640 m 2<br />
Structure: S, SRC 3 basements, 29 floors above ground, 1 penthouse<br />
•Shiki Asakadai Project<br />
Use: Condominiums, Floor area: 61,269 m 2<br />
Structure: RC, 1 basement, 14 floors above ground<br />
•Laurel Tower Namba<br />
Use: Condominiums (389 units), Floor area: 50,731 m 2<br />
Structure: RC, 1 basement, 39 floors above ground, 1 penthouse<br />
•Takeda Chemical Industries Hikari Plant<br />
Use: Pharmaceutical-related facilities, Floor area: 11,926 m 2<br />
Structure: SRC (partially RC), 3 floors above ground<br />
New Civil Engineering Contracts<br />
•Construction Work on the Sunakosawa Dam<br />
Gravity dam; Height: 78.5 m, Length: 185 m, Maximum water capacity:<br />
8,650,000 m3 , Effective capacity: 7,630,000 m3 , Control of flood, water flow<br />
level and supply of drinking water<br />
•Ishioka Second Section Tunnel Construction of the Kasumigaura Water<br />
Conveyance Project<br />
Water tunnel work to connect Kasumigaura Lake and Nakagawa River; shield<br />
tunnel method. Main tunnel length: 5,000 m, Tunnel diameter (interior): 3.5 m<br />
•Water Pipeline (f 1,800 mm – 700 mm) Project, to be constructed between<br />
Ohi Water Supply Station and Higashi-Ohi, Shinagawa Ward in Tokyo<br />
Shield tunnel method; utilizing a unique system of ejecting a smaller 2,400-mm<br />
diameter sub-shield machine from a 4,500-mm main shield machine at right<br />
angle to build a backup water line system in Tokyo<br />
•Construction Work of National Highway 9, Kyoto-Nishi Underground<br />
Two-Level Crossover Project<br />
Conversion of four-lane highway and building of a two-lane underpath to solve<br />
traffic congestion at the intersection. Tunnel length: 490 m<br />
•Civil Portion (The 4th Building Construction Area) of Construction Work<br />
for the Nakanoshima New Railway<br />
Open cut tunnel; Length: 192.4 m, Width: 15 to 21 m<br />
Shield tunnel; Length: 418.6 m, External diameter of segments: 6,800 mm<br />
•Fukuoka Route 202 Outer Ring Common Duct No. 1 Work Shield Tunnel<br />
Project<br />
Construction of a common duct underneath Fukuoka Route 202;<br />
Length: 2,770 m, External diameter of segments: 6,300 mm<br />
•Construction Work for the Body of Inaba Dam<br />
Gravity dam; Height: 56 m, Length: 233.5 m<br />
Maximum water capacity: 7,270,000 m 3 , Effective capacity: 6,190,000 m 3 ,<br />
Control of water flow level and supply of drinking water<br />
9
10<br />
Garden Plaza Shinkemigawa<br />
Garden Plaza Shinkemigawa<br />
(1988 to March <strong>2003</strong>)<br />
Location: Mizuho 2-chome, Hanamigawa-ku,<br />
Chiba City, Chiba Prefecture<br />
Project outline: 1,031 condominiums (large-scale<br />
condominium development of 14<br />
buildings), 14 floors above ground<br />
Construction area: 128,927 m 2<br />
DOMESTIC OPERATIONS<br />
Kajima<br />
Corporation<br />
Real Estate Development<br />
Shinjuku East Building<br />
(1999 to October 2002)<br />
Location: Tomihisa-cho, Shinjuku-ku, Tokyo<br />
Project outline: Offices, 6 floors above ground, 2 basement<br />
levels<br />
Construction area: 10,906 m 2<br />
During fiscal <strong>2003</strong>, land prices throughout Japan fell for the 12th<br />
consecutive year, and the current environment offers no signs of a<br />
slowdown in the decline. In the 23 wards of Tokyo, however, the<br />
rate of decrease has dropped for four consecutive years, and there<br />
are some areas in the central business district where prices have<br />
actually held steady or even risen.<br />
In the residential market, the supply of newly built condominiums<br />
in the greater Tokyo metropolitan area was significantly high during<br />
the fiscal year under review, at around 88,500 new units. Despite<br />
developers’ concerns over slack demand, low interest rates for<br />
housing loans and the effects of the calendar <strong>2003</strong> tax reform<br />
package — which increased the limit for tax exempt pre-mortem<br />
gifts when the funds are used for acquisition of residential properties<br />
— are expected to maintain a favorable environment for home<br />
purchases. Under these conditions, no significant deterioration in<br />
the balance of supply and demand is currently anticipated. In addition,<br />
large condominium projects in superior locations with excellent<br />
access will continue to attract demand.<br />
The office building market continues to be affected by consolidation<br />
accompanying the restructuring of large enterprises, resulting<br />
in rising vacancy rates. Although demand for large newly constructed<br />
buildings remains high, ever-intensifying competition for<br />
tenants among medium and small-sized buildings has caused further<br />
softening in rental market prices. As these facts illustrate, the<br />
gap between successful properties, which feature good locations<br />
or added-value amenities, and unsuccessful properties, which lack<br />
special features, appears likely to continue in both the condominium<br />
and office property markets.<br />
Amid this market environment, Kajima has focused its development<br />
business on redevelopment projects, primarily large office<br />
buildings and large condominiums. In the office building sector, a<br />
redevelopment project in Tokyo’s Higashi Shinagawa district<br />
(Shinagawa Seaside Forest, Phase I, completed in September<br />
<strong>Annual</strong> <strong>Report</strong><br />
<strong>2003</strong><br />
Shinjuku East Building
Shinagawa Seaside Forest<br />
Shinagawa Seaside Forest, Phase I<br />
(1996 to September 2002)<br />
Location: Higashi Shinagawa 4-chome,<br />
Shinagawa-ku, Tokyo<br />
Project outline: Offices, retail stores, 23 floors above<br />
ground, 2 basement levels<br />
Construction area: 45,608 m 2<br />
2002) saw Kajima acquire a 23-story office building with a total floor<br />
area of approximately 46,000 square meters, which was then sold to<br />
Hitachi Software Engineering Co., Ltd., becoming its new headquarters.<br />
In the case of the Shinjuku East Building (completed in October<br />
2002), a six-story metropolitan office building with a total floor area<br />
of approximately 10,900 square meters, all office space was taken<br />
prior to the completion of the construction, illustrating the successful<br />
acquisition of tenants in an unsympathetic market environment.<br />
In the commercial leasing business as a whole, Kajima leased a total<br />
of 62 properties as an owner or master lessor. This business generated<br />
revenues of approximately ¥14.0 billion, with an occupancy rate<br />
above 95%. Kajima will continue to conduct efficient leasing management<br />
in association with its affiliates, East Real Estate Co., Ltd.,<br />
and Kajima Tokyo Kaihatsu Corporation.<br />
In residential sales, several large condominium development projects<br />
such as Garden Plaza Shinkemigawa (completed in March<br />
<strong>2003</strong>) have reached completion, with all of these properties either<br />
sold out or nearly sold out prior to the completion of the construction.<br />
The Company recorded sales of a total of around 1,770 condominiums<br />
and single-family homes in fiscal <strong>2003</strong>.<br />
During fiscal <strong>2003</strong>, Kajima completed due diligence works on 69<br />
buildings, earning high praise for its performance in this area. With<br />
the forecasted acceleration in the liquidation of real estate, Kajima<br />
will focus on fee-based businesses, in which the Company will be<br />
able to leverage its real estate development expertise both in<br />
Japan and overseas.<br />
11
12<br />
Seinan Gakuin Junior and Senior<br />
High School<br />
Sumitomo Osaka Cement<br />
Nano/Tera Technology Center<br />
DOMESTIC OPERATIONS<br />
Design<br />
Makuhari Park Tower<br />
Kajima<br />
Corporation<br />
Kajima’s Architectural and Engineering Design Division provides<br />
design services worldwide in a variety of construction marketing<br />
and design fields. The division maximizes the global synergies of<br />
Kajima’s locally incorporated design offices in the United States,<br />
Europe and Asia — Kajima Associates, Inc. (KAI), Kajima Design<br />
Europe Ltd. (KDE), and Kajima Design Asia Pte. Ltd. (KDA). In<br />
Japan, the division is realizing increasingly efficient operations<br />
through its well-established collaboration with Ilya Corporation,<br />
which specializes in interior design, and Armo Architects &<br />
Engineers, experts in presentations and drafting.<br />
In year ended March 31, <strong>2003</strong>, the division was awarded 533<br />
design commissions (for a total construction value of ¥409.6 billion),<br />
and delivered consultancy services in 1,068 projects.<br />
Among the division’s major design projects were three skyscrapers<br />
completed between April and June <strong>2003</strong> on redeveloped land in<br />
Shiodome in Tokyo — the Shiodome Tower complex (38 stories) of<br />
offices and a city hotel, the Shiodome Media Tower (34 stories),<br />
and the Nippon Express Headquarters Building (28 stories). Major<br />
projects that have played an important role in urban renewal in<br />
Tokyo included the construction management of three high-rise<br />
towers in Higashi Shinagawa, and a residential and office complex<br />
in Toranomon that is currently in the design stage. The Makuhari<br />
Park Tower (32 stories), which used the Kajima Free-Plan High-<br />
Rise Housing System (using Super Reinforced-Concrete Frame<br />
Construction), was completed in March <strong>2003</strong> and has elicited a<br />
favorable response from the market. Several other high-rise residential<br />
developments using this proprietary Kajima system are<br />
currently on the drawing board.<br />
Other noteworthy design proposals include (1) the Akihabara UDX<br />
Building, which employs performance design to meet the needs of<br />
diversifying work styles and ensure open and highly adaptable<br />
work spaces; and (2) the PFI project for the Akasaka Apartment for<br />
the House of Representatives, a commission that Kajima won<br />
thanks to special security proposals and overall design quality as a<br />
housing complex.<br />
<strong>Annual</strong> <strong>Report</strong><br />
<strong>2003</strong><br />
The Second Building of Taisho<br />
Pharmaceutical’s Head Office
Shiodome Area including Shiodome Tower and Nippon Express Headquarters<br />
Technical development by the division included the development<br />
of a 3-Dimensional Data Base CAD system that supports data<br />
sharing and integration at all phases of a project from design to<br />
construction. In 2001, the division began applying the technology<br />
to actual design work, and in 2002, 27 projects were done using<br />
this system. CAD drafting centers have also been established<br />
overseas to promote even greater operating efficiency.<br />
The division is also involved in a variety of environmentally conscious<br />
design projects. These include the use of natural ventilation<br />
Organizational Profile<br />
Kajima’s dynamic global marketing and design campaign is spearheaded by<br />
the Company’s Architectural and Engineering Design Division, which provides<br />
design services to meet the needs of a rapidly changing world, working in close<br />
cooperation with Kajima’s locally incorporated design offices in the United<br />
States, Europe and Asia — KAI, KDE, and KDA. The credibility of the Company’s<br />
services has been further enhanced by its status as a design organization<br />
accredited with ISO9000 and ISO14001.<br />
Volume of Business in Fiscal <strong>2003</strong><br />
(Architectural and Engineering plus Design Division Branches)<br />
Commissioned design projects:<br />
533<br />
Value of construction of commissioned projects:<br />
¥409.6 billion<br />
Number of consulting projects:<br />
1,068<br />
Major Design Projects<br />
Shiodome Tower<br />
Shiodome Media Tower<br />
Nippon Express Headquarters<br />
TOKI MESSE Bandaijima Building<br />
Higashi Shinagawa Stage 2 Development<br />
Akihabara Station Environs Redevelopment<br />
Akasaka Apartment for the House of Representatives<br />
Jiji Press Building<br />
to conserve energy, technologies to reduce energy consumption<br />
throughout a building’s life cycle, and the use of large-panel terracotta<br />
tiles for skyscraper exteriors that are manufactured with low<br />
carbon dioxide emissions.<br />
Kajima’s technical and design prowess was recognized with a total<br />
of 41 awards in 2002, including the Greening Techniques<br />
Concours Grand Award.<br />
The Second Building of Taisho Pharmaceutical’s Head Office<br />
Makuhari Park Tower<br />
Seinan Gakuin Junior and Senior High School<br />
PENTA-KUN Tama Center Branch<br />
Sumitomo Osaka Cement Nano/Tera Technology Center<br />
Consultancies<br />
Life-cycle engineering (LCE), renewal projects, conversion projects, seismic risk<br />
assessment, deterioration assessment, market competitiveness assessment,<br />
energy conservation assessment, environmental site assessment, engineering<br />
due diligence.<br />
Technical Development<br />
Development of 3-Dimensional Data Base CAD system, application of this technology<br />
to actual projects and the establishment of overseas CAD drafting centers,<br />
adapting technologies for performance specifications (fire proofing and<br />
prevention, evacuation safety, earthquake proofing), development of the Kajima<br />
Free-Plan High-Rise Housing System (using Super Reinforced-Concrete Frame<br />
Construction).<br />
External Awards<br />
Greening Techniques Concours Grand Award (Kajima KI Building and Atrium)<br />
Good Design Award (Shiba Park Tower)<br />
Award of the Society, Society of Heating, Air-Conditioning and Sanitary<br />
Engineers of Japan (Commissioning Tools with Building Energy Management<br />
Systems [BEMS])<br />
Total of 41 awards<br />
13
14<br />
Macronix Fab-3 plant<br />
in Hsinchu, Taiwan<br />
Yamanouchi Pharmaceutical<br />
Oklahoma plant in Norman, U.S.A.<br />
OVERSEAS OPERATIONS<br />
Kajima<br />
Corporation<br />
Since the Kajima Group took on the challenge of its first overseas<br />
construction project, the Group has expanded its reach to more<br />
than 50 countries. Kajima now maintains local subsidiaries and<br />
affiliates, district offices, or other permanent presences in 22 countries,<br />
with projects in 13 countries directly managed by Kajima<br />
headquarters.<br />
As the Kajima Group works to integrate overseas operations, the<br />
subsidiaries and affiliates in Kajima’s main regions of operation —<br />
the United States, Europe, Southeast Asia, and Taiwan — continue<br />
to streamline corporate structure and enhance profitability to contend<br />
with a dramatically changing market environment. At the<br />
same time, they are focusing their efforts on increasing the volume<br />
of contracts awarded by the leading local companies in these<br />
regions. These efforts are driven by Kajima’s strategy of advancing<br />
into new arenas to offset the decrease of foreign direct investment<br />
by Japanese companies, which had been the principal pillar of<br />
Kajima’s overseas sales. This approach enabled Kajima’s subsidiaries<br />
and affiliates to post more than ¥100 billion in total new<br />
contracts for the third consecutive year. Of the ¥102.7 billion in<br />
new contracts, local non-Japanese companies placed more than<br />
70%, demonstrating the steadily increasing localization of Kajima<br />
Group operations.<br />
In real estate development operations undertaken by subsidiaries<br />
and affiliates, the Kajima Group is improving the return on investment<br />
of the operating properties and working to reduce each company’s<br />
indebtedness. On the other side of the equation, new<br />
investments such as the development of distribution warehouse<br />
facilities in the United States and Private Finance Initiative (PFI)<br />
projects in the United Kingdom are being selectively undertaken in<br />
line with profitability and risk management criteria.<br />
Construction and Real Estate Development<br />
<strong>Annual</strong> <strong>Report</strong><br />
<strong>2003</strong><br />
Department for Environment, Food<br />
and Rural Affairs (DEFRA) office<br />
building in Cambridge, U.K.
Pampered Chef headquarters building in Chicago, U.S.A.<br />
UMCi Wafer Fab plant in Singapore<br />
Kajima U.S.A. Inc. (KUSA), which is responsible for the North<br />
American market, has focused on strategic markets such as automobiles,<br />
pharmaceuticals, food products, and schools where<br />
Kajima can capitalize on its experience and expertise. This<br />
approach countered the lackluster capital investment of the post-<br />
IT bubble environment, resulting in ¥44.9 billion in new contracts<br />
for KUSA, which surpassed the volume of the previous year.<br />
Excelling in distribution warehouse facility development, Industrial<br />
Developments International, Inc. (IDI), an affiliate of KUSA, continued<br />
to post robust performance, contributing to KUSA’s consolidated<br />
revenues and profits.<br />
Hualalai Resort, developed and managed by Kajima Kona<br />
Company (KKCo), has been rated one of Hawaii’s premier luxury<br />
resorts since its opening in 1996. The resort features an awardwinning<br />
five-star Four Seasons hotel, championship golf courses,<br />
and other recreational facilities — all catering to the discriminating<br />
tastes of the high-end resort guests and home owners of Hualalai.<br />
Hotel performance for this year rebounded relatively quickly as<br />
the impact of September 11, 2001 dissipated and the number of<br />
individual repeat guests increased.<br />
Kajima Overseas Asia Pte. Ltd. (KOA) handles the Southeast Asia<br />
market, which has been buffeted by the Asian economic slump,<br />
the secondary effects of the Iraq war, and most recently by the<br />
outbreak of Severe Acute Respiratory Syndrome (SARS). The current<br />
challenging business environment has not altered Kajima’s<br />
long-term prospects in the Southeast Asian region, which is one of<br />
the Group’s most important overseas markets. With contracts for a<br />
large-scale public construction project in Singapore and a steady<br />
flow of projects in Thailand and Malaysia, KOA won new contracts<br />
worth ¥33.8 billion in 2002, an increase over the previous year.<br />
Although the market environment for real estate development<br />
continues to be as harsh as in recent years in the Southeast Asian<br />
region, low interest rates have supported KOA’s steady performance<br />
15
16<br />
Hitachi High-Technologies headquarters<br />
building in Düsseldorf,<br />
Germany<br />
Shinnyo-En Buddhist temple in<br />
Seattle, U.S.A<br />
SONY Supply Chain Solutions<br />
Distribution Center in Bangi,<br />
Malaysia<br />
Renovation work on highway in<br />
Ethiopia<br />
in the leasing and operation of offices, hotels, shopping malls, and<br />
other facilities.<br />
Chung-Lu Sino-Kajima Construction Co., Ltd., the Kajima Group’s<br />
affiliate in the Taiwanese market, posted record profits due to<br />
improved gross profit ratios in plant construction for Japanese<br />
companies. Total new contracts, however, declined to ¥6.2 billion,<br />
in comparison with the extraordinary performance of the previous<br />
year, when the volume of new contracts doubled due to projects<br />
for large-scale Japanese plants and local apartment buildings. As<br />
the company has earned credibility with clients in Taiwan for its<br />
capability to execute large-scale construction, it will seek to<br />
improve management stability by selectively undertaking projects<br />
based on a thorough analysis of profitability and risk management.<br />
In the face of the mature European construction market, Kajima<br />
Europe B.V. (KE) is working to improve business performance by<br />
focusing on specific projects in the United Kingdom, as well as<br />
seeking to expand its operations on the continent with select projects<br />
for Japanese companies. In terms of real estate development<br />
operations, proactive involvement in national and local governmental<br />
PFI projects in the United Kingdom is beginning to bear fruit.<br />
The Department for Environment, Food and Rural Affairs (DEFRA)<br />
office building in Cambridge, a project already in progress in 1999<br />
and the first PFI project commissioned to a Japanese company,<br />
was completed and opened in April <strong>2003</strong>. KE also secured contracts<br />
from North Tyneside and two other local governments for<br />
PFI school construction projects, which are currently underway.<br />
The projects directly managed by Kajima headquarters in regions<br />
and arenas not covered by subsidiaries and affiliates are primarily<br />
in the field of large-scale civil engineering. Although total new contracts<br />
for directly managed projects in this year did not exceed that<br />
of the previous year, Kajima was able to secure contracts for largescale,<br />
locally financed, infrastructure projects in Taiwan.<br />
With the projected cutbacks in official development assistance<br />
(ODA) projects, which have formed the core of directly managed<br />
operations, Kajima’s long term strategy is to expand its involvement<br />
in prospective projects in China, Russia, Central Europe, and<br />
other promising regions, while reinforcing its presence in the fields<br />
of locally financed infrastructure projects where Kajima leads in<br />
technological expertise.<br />
The following are the major projects completed this year: Chirundu<br />
Bridge over the Zambezi River between Zambia and Zimbabwe,<br />
rehabilitation works for the Trunk Road in Ethiopia, rehabilitation<br />
works for National Route 3 in Central Africa, the Yazaki Surabaya<br />
Factory in Indonesia, the Toppan CFI Taiwan Color Filter Factory in<br />
Taiwan, and the Pampered Chef headquarters building and central<br />
distribution warehouse facilities in the United States.
Chirundu Bridge over the Zambezi River between Zambia and Zimbabwe<br />
Major New Contracts Won in 2002<br />
Taipei Metropolitan Area Rapid Transit System Project<br />
Taiwan<br />
Shield tunnel<br />
Inner diameter: 5.6 m, Total length: 4,730 m<br />
Keelung River Yuanchantze Flood Diversion Project<br />
Taiwan<br />
NATM Tunnel<br />
Inner diameter: 12.0 m, Total length: 2,470 m<br />
First ITE Regional Campus Project<br />
Singapore<br />
Institutional buildings for education<br />
7 floors, Floor area: 180,000 m 2<br />
Pidemco Center Redevelopment Project<br />
Singapore<br />
Commercial building<br />
1 basement, 23 floors, Floor area: 74,632 m 2<br />
Toppan CFI Taiwan H-11 Line Clean Room Project<br />
Taiwan<br />
Clean room<br />
4 floors, Floor area: 34,893 m 2<br />
Accordia Housing Project<br />
Cambridge, U.K.<br />
Residential buildings<br />
21 blocks, 379 units, Floor area: 44,500 m 2<br />
John A. Burns School of Medicine, University of Hawaii<br />
Hawaii, U.S.A.<br />
Education & administrative building<br />
Floor area: 12,700 square meters<br />
Biomedical research building<br />
Floor area: 16,600 m 2<br />
Yamanouchi Pharmaceutical Technologies R&D Facility Consolidation<br />
Oklahoma, U.S.A.<br />
Relocation of research facilities<br />
Pharmaceutical manufacturing and laboratory consisting of R&D space,<br />
office areas, GMP storage, process utilities & equipment<br />
Floor area: 5,950 m 2<br />
17
18<br />
Environmental jet method<br />
RESEARCH & DEVELOPMENT<br />
R&D Topics<br />
Kajima<br />
Corporation<br />
Continuous research and development is essential to corporate<br />
growth. Kajima proceeds proactively with R&D targeting diversifying<br />
social and client needs. Kajima’s R&D covers a wide range of<br />
subjects from developing new technologies, to improving the quality<br />
and productivity of construction projects, to research on technologies<br />
to meet the needs of society in the future, which the<br />
Company efficiently conducts with universities, public organizations<br />
and other firms.<br />
In fiscal <strong>2003</strong>, the second year of the Company’s Next Three-Year<br />
Plan, Kajima emphasized R&D and its efficient promotion.<br />
Research topics were selected on a priority basis, with emphasis<br />
on fields closely related to market needs. Economies were realized<br />
through greater efficiency, reducing overall R&D expenses without<br />
compromising the Company’s commitment to strong R&D investment.<br />
There were 155 technical development topics identified for<br />
fiscal <strong>2003</strong>, and research investment totaled ¥10.5 billion, or<br />
0.72% of net sales.<br />
In the current challenging business environment, Kajima is focusing<br />
its R&D on contributing to winning and expanding contracts<br />
and reducing construction costs, and has selected urban redevelopment,<br />
the environment, and housing as the key market sectors.<br />
The Company’s R&D initiative emphasizes technologies associated<br />
with reducing construction costs, irrespective of its application in<br />
new or traditional market sectors. Kajima is also engaged in a wide<br />
spectrum of activity to contribute to the solution of global environmental<br />
problems, from environmental conservation to environment<br />
creation. Markets with considerable potential are those of building<br />
renewal and life-cycle engineering (LCE), and R&D is also being<br />
carried out in these areas.<br />
Here are some of the major R&D results recently achieved by<br />
Kajima. Urban redevelopment related successes included the<br />
“Total Construction System of Shield Tunnels for Traffic<br />
Infrastructure” which combined a series of shield tunnel technologies;<br />
the “Self Elevating Bridge (SEB) Construction Method” for a<br />
low-cost two-level crossover; the “Water Screen System,” a fire<br />
prevention system for underground space; and “Construction<br />
Technology of Underground Floor,” which provides for shorter<br />
construction periods and higher levels of safety. In the field of environment<br />
related projects, results included analysis and planning<br />
technologies for the “Environmentally-Friendly Energy-Conserving<br />
Office”; the “Assessment System for Greenspace and Water<br />
Environment”; the “Environmental Jet Method” of combating VOC<br />
related soil contamination; and “Resource Technology of Organic<br />
Waste,” which is based on our METAKLES technology that converts<br />
organic waste into bio-gas. In the field of renewal and Life<br />
Cycle Engineering, major successes were the “Seismic Risk<br />
Assessment Method”; and “Assessment for the Deterioration of<br />
Concrete Structure.” In addition to these, Kajima produced results<br />
in the area of earthquake forecasting and disaster prevention technologies,<br />
such as “Assessment of Strong Ground Motion.”<br />
The following are the primary technical development results<br />
achieved in fiscal <strong>2003</strong>.<br />
<strong>Annual</strong> <strong>Report</strong><br />
<strong>2003</strong>
Image of “Total Construction<br />
System of Shield Tunnels for<br />
Traffic Infrastructure”<br />
Image showing how Shiodome<br />
Media Tower’s hybrid airconditioning<br />
system works<br />
Air flow<br />
Fire prevention system for underground<br />
space — fire compartment<br />
using water screen system<br />
Total Construction System of Shield Tunnels for Traffic Infrastructure<br />
Growth in urban renewal and the passage of special legislation on public use of space deep underground<br />
have seen the increasing use of underground space for infrastructure, and plans that<br />
include the use of space deep underground for arterial roads in cities have made the cut and cover<br />
method difficult. It is in this context that Kajima has developed new technology that has made it<br />
possible to construct special sections of road tunnels (emergency parking bays, ramp tunnels) deep<br />
underground, and by integrating this with previously developed large-diameter shield tunnel technology,<br />
has developed a “Total Construction System of Shield Tunnels for Traffic Infrastructure.”<br />
This new technology comprises three methods: the “shield tunneling method of partly widening<br />
cross-sectional area,” the “shield tunneling method of reducing cross-sectional area” and the<br />
“shield tunneling method of applying recoverable and reusable machines.”<br />
Large-Scale Hybrid Air-Conditioning System with Natural Ventilation for Offices<br />
The heightened level of interest in environmentally-friendly buildings has resulted in stronger demand<br />
for natural ventilation. As well as developing specific design tools for the cost-efficient design of buildings<br />
using natural ventilation, Kajima has compiled a list of items for examination at the planning<br />
stage, including airflow simulation, assessment of the thermal environment, and a ventilation control<br />
strategy, which have led to the realization of large-scale hybrid air-conditioning systems with natural<br />
ventilation for offices. In the case of some buildings, we have commissioned natural ventilation<br />
systems and double-skin facades, and have confirmed their favorable performance.<br />
Fire Prevention System for Underground Space — Water Screen System<br />
As illustrated by the public use of space deep underground, the role of underground space in urban<br />
renewal is being re-evaluated. In doing so, however, fire safety requires serious attention.<br />
Experiments using scaled models have been repeated numerous times for railroad and vehicle tunnels,<br />
underground streets, and underground parking lots, resulting in the development of highly<br />
accurate simulation technology for simulating fire behavior in such spaces. Furthermore, knowledge<br />
gained through these activities has been used to develop and construct a fire prevention system in<br />
which compartments use water screens, a completely new concept. As well as localizing the size of<br />
the area affected by a fire and providing a safe evacuation environment, the system also inhibits<br />
rapid combustion, thus minimizing structural damage.<br />
Development of a Quantitative Assessment System for the Environmental Functions of<br />
Greenspaces — “m-EASE (microscale Environmental Assessment System on Ecology)”<br />
Kajima has developed a quantitative assessment system for the environmental functions of greenspaces<br />
called “m-EASE,” a green CAD system through which a quantitative assessment of the following<br />
six environmental functions of greenspaces can be made: fixation of atmospheric CO2;<br />
atmospheric purification; mitigation of heat island effects; preservation of biological diversities;<br />
improvement of scenery; and fire prevention. Use of this system has made it possible to promptly<br />
and effortlessly formulate proposals for optimum greenspace plans corresponding to customers’<br />
needs at the planning and design stages. The system also enables constructive “quantitative<br />
assessment of the environmental functions that greenspaces already possess” and “prediction of<br />
future changes of the functions of greenspaces.”<br />
Environmental Jet Method<br />
The environmental jet method is a ground contamination cleaning technique that is able to partially<br />
clean contaminated ground (soil and ground water) using intersecting jet flows of water. This<br />
method has the following advantages: (1) it is possible to partially clean at only the depths required;<br />
(2) it can be applied to various kinds of contaminated substances; (3) it can even be applied to contaminated<br />
layers difficult to penetrate with water (clay, etc); and (4) it can be applied in small places<br />
and even inside buildings.<br />
Kajima offers the following three options, depending on the contamination circumstances and<br />
budget for the cleaning work.<br />
1) The Jet Replace method for substituting contaminated soil with non-harmful materials.<br />
2) The Jet Blend method for cleaning ground water by mixing cleaning materials in contaminated<br />
water layers.<br />
3) The Jet Rinse method for cleaning contaminated soil.<br />
19
20<br />
Highlights<br />
Shiodome Tower — A High-Rise Building<br />
Designed for People and the Environment<br />
This eye-catching high-rise building in the Shiodome area in Tokyo’s Minato Ward is<br />
the Shiodome Tower, designed and built by Kajima. Its exterior is clad with terracotta<br />
tiles — a nature-friendly material — and the building is also equipped with the latest<br />
environmental control technology. The result is a new style of high-rise building that<br />
puts both people and the environment first.<br />
Launch of the Akihabara IT Center (Tentative<br />
Name) Redevelopment Project<br />
Kajima’s IT Center (tentative name) Project is underway on a site in front of Akihabara<br />
Station. Kajima and two other companies, NTT Urban Development and Daibiru<br />
Corporation, won a publicly invited bid to acquire land that was owned by the Tokyo<br />
Metropolitan Government. The IT Center will be a hub of international information technology,<br />
serving as a center for new initiatives such as creation of new businesses<br />
through industrial-academic collaboration, as a location for employee training, and as a<br />
facility to bring people together.<br />
New National Art Museum<br />
under Construction<br />
Construction is moving forward on a new national art museum (tentatively called the<br />
“National Gallery”), in Tokyo’s Roppongi district. Based on the concept of “an art museum<br />
surrounded by greenery,” the gallery will mark the birth of a new form of art museum<br />
that focuses on exhibiting publicly invited art works. Construction is scheduled for<br />
completion in August 2005.<br />
Kajima Contracted to Build<br />
Japan’s First PFI Library<br />
A special purpose company (SPC) headed by Kajima has been contracted to build a<br />
public complex that will house a library and other facilities, utilizing the private finance<br />
initiative (PFI) method. Planned by Kuwana City in Mie Prefecture and designed by AXS<br />
Satow Inc., the library will be Japan’s first to be operated by the private sector, and is<br />
expected to provide high-quality public service. The complex is scheduled to open in<br />
October 2004.
Japan’s Largest Covered<br />
Final Disposal Facility Completed<br />
This is the Kizukuri-Inagaki municipal waste final disposal site in Aomori Prefecture,<br />
constructed by Kajima. Maintenance and control are made easy at this roofed disposal<br />
facility, which is located on reclaimed land. Thanks to the roof, work can proceed<br />
irrespective of weather conditions. The facility also prevents odors from escaping and<br />
waste materials from being scattered by the wind, thus serving to protect the<br />
surrounding landscape.<br />
Assessing the Seismic Vibrations of the<br />
Great Kanto Earthquake<br />
Information on the damage caused by the Great Kanto Earthquake have been collated<br />
and used to draw up a “map” of the damage and the distribution of seismic vibrations<br />
across the entire southern Kanto region. The results provide a clearer picture of the<br />
relationship between ground conditions and the distribution of seismic vibrations. This<br />
information may now be used in predictions of strong earth tremors.<br />
Kajima Sculpture Competition Wins the 2002<br />
Mécénat Award for Outstanding Corporate Culture<br />
Held for the 7th time in 2002, the biennial Kajima Sculpture Competition was inaugurated<br />
in 1989 to commemorate the 150th anniversary of the founding of Kajima<br />
Corporation. The competition discovers new, emerging sculptors, serving as a launching<br />
pad for successful careers. It was awarded the Mécénat Award in appreciation of<br />
these factors, indicating the widespread recognition enjoyed by the competition in the<br />
sculpting world.<br />
Phase II Construction Begins on the<br />
Shinagawa Seaside-Forest Project<br />
Phase II construction on the Shinagawa Seaside-Forest urban redevelopment project is<br />
underway in Tokyo’s Shinagawa Ward. The phase II project will add a mixed-use<br />
hotel/office building and two other office buildings to the structures built during phase I:<br />
an office building, multi-family housing, commercial retail facilities and a new train station.<br />
Kajima is the sole developer of the phase II project, which is scheduled for completion<br />
in August 2004.<br />
21
22<br />
Selected Financial Data<br />
KAJIMA Corporation (and Consolidated Subsidiaries)<br />
For the years ended March 31<br />
<strong>2003</strong> 2002 2001 2000 1999 <strong>2003</strong><br />
(Thousands of<br />
Consolidated: (Millions of Yen) U.S. Dollars)<br />
Revenues ¥1,874,802 ¥2,060,353 ¥1,909,948 ¥1,727,871 ¥1,658,884 $15,623,350<br />
Net Income (Loss) 10,111 (41,153) 9,275 9,018 (198,557) 84,258<br />
Total Assets 2,024,226 2,226,712 2,438,041 2,423,542 2,402,481 16,868,550<br />
Stockholders’ Equity 159,017 180,220 235,192 176,058 174,595 1,325,142<br />
Short-Term Borrowings, Commercial Paper<br />
and Long-Term Debt 594,592 674,153 718,760 771,982 862,539 4,954,933<br />
(Thousands of<br />
Non-Consolidated: (Millions of Yen) U.S. Dollars)<br />
Revenues ¥1,458,086 ¥1,550,317 ¥1,330,729 ¥1,174,910 ¥1,250,260 $12,150,717<br />
Contract Awards 1,139,509 1,200,432 1,245,516 1,287,623 1,280,287 9,495,908<br />
Net Income (Loss) 8,515 (47,794) 7,127 7,633 (196,675) 70,958<br />
Total Assets 1,680,439 1,826,910 1,998,802 2,017,756 2,027,805 14,003,658<br />
Stockholders’ Equity 184,011 206,013 271,464 215,020 214,117 1,533,425<br />
Short-Term Borrowings, Commercial Paper<br />
and Long-Term Debt 399,800 452,889 508,615 568,808 619,405 3,331,666<br />
Per Share: (Yen) (U.S. Dollars)<br />
Cash Dividends ¥5.00 ¥7.00 ¥7.00 ¥7.00 ¥7.00 $0.042<br />
(Thousand Shares)<br />
Number of Shares Issued 961,312 961,312 961,312 961,312 961,312
24<br />
Summary of Business Performance for Fiscal <strong>2003</strong><br />
Overview<br />
During the fiscal year under review, the Kajima Group companies performed<br />
as follows:<br />
Consolidated revenues totaled ¥1,874.8 billion, down 9.0% from the<br />
previous year, reflecting the setbacks in total construction revenues of<br />
the Company and its group companies.<br />
Consolidated gross profit dropped 9.6% as construction revenues<br />
and the gross profit margin also decreased, resulting in consolidated<br />
operating income of ¥36.3 billion, down 14.2%. Consolidated net<br />
income recovered to ¥10.1 billion from the net loss of ¥41.2 billion a<br />
year earlier, when the Group restructured its asset holdings by booking<br />
a large loss.<br />
Segment Performance<br />
Construction<br />
•Contracts Awarded<br />
Year ended Year ended<br />
March 31, <strong>2003</strong> March 31, 2002<br />
(Millions of Yen)<br />
Construction in Japan ¥1,132,437 ¥1,252,815<br />
Construction overseas<br />
(The Company and consolidated<br />
140,599 156,676<br />
companies in Japan) 37,884 39,736<br />
(Overseas subsidiaries) 102,714 116,939<br />
Construction total ¥1,273,036 ¥1,409,492<br />
•Revenues<br />
Year ended Year ended<br />
March 31, <strong>2003</strong> March 31, 2002<br />
(Millions of Yen)<br />
Construction in Japan ¥1,449,017 ¥1,624,925<br />
Construction overseas<br />
(The Company and consolidated<br />
105,757 134,225<br />
companies in Japan) 19,959 26,846<br />
(Overseas subsidiaries) 85,798 107,379<br />
Construction total ¥1,554,775 ¥1,759,151<br />
(1) Domestic Operations<br />
New construction orders for the Group companies totaled ¥1,132.4<br />
billion, down 9.6% from the previous year, reflecting drops in orders<br />
secured by the Company and Chemical Grouting Co., Ltd. The<br />
Company itself accounted for ¥265.1 billion in civil engineering contracts<br />
(down 6.1%) and ¥726.0 billion in architectural construction<br />
contracts (down 10.5%), for a total of ¥991.1 billion (down 9.3%). The<br />
civil engineering business suffered from weak demand in public and<br />
private markets, while the architectural construction business slipped<br />
as non-manufacturing clients sharply reduced their orders.<br />
Group revenues for the year stood at ¥1,449.0 billion, a 10.8%<br />
decline. Both the Company and its consolidated companies in Japan<br />
posted lower total revenues. The Company registered total revenues<br />
of ¥1,343.7 billion (down 6.4%), with ¥373.5 billion in civil engineering<br />
contracts (up 3.0%) and ¥970.1 billion in architectural construction<br />
contracts (down 9.5%).<br />
(2) Overseas Operations<br />
New orders received amounted to ¥140.6 billion (down 10.3% from<br />
the previous year), which breaks down to ¥102.7 billion awarded to<br />
overseas subsidiaries and ¥37.9 billion secured by the Company and<br />
its consolidated companies in Japan. The decrease is mostly attributable<br />
to reduced contract awards to the Company’s Taiwan subsidiary.<br />
Total revenues reached ¥105.8 billion (down 21.2%), consisting of<br />
¥85.8 billion posted by overseas subsidiaries and ¥20.0 billion by the<br />
Company and its consolidated companies in Japan.<br />
(3) Profit Margins<br />
The Group finished the period with a gross profit of ¥101.9 billion,<br />
down ¥18.6 billion from last year. The results reflect a smaller total<br />
revenue base, coupled with intense price competition in the marketplace<br />
that pushed the Group companies’ gross profit margin on completed<br />
construction jobs down to 6.6% from 6.8% a year ago. The<br />
Company itself also suffered a year-on-year deterioration in the same<br />
margin from 7.0% to 6.9%.
Real Estate Operations<br />
•Revenues<br />
Year ended Year ended<br />
March 31, <strong>2003</strong> March 31, 2002<br />
(Millions of Yen)<br />
Development projects in Japan ¥ 95,853 ¥ 88,251<br />
Development projects overseas 88,985 66,760<br />
(The Company) 576 576<br />
(Overseas subsidiaries) 88,409 66,184<br />
Real estate development total ¥184,838 ¥155,011<br />
Buoyed by higher revenues in the United States, consolidated revenues<br />
from real estate operations advanced to ¥184.8 billion, up<br />
19.2% from last year, with consolidated operating income of ¥14.1<br />
billion, up 19.4%.<br />
Others<br />
Other segments, consisting mainly of processed construction materials<br />
and design, engineering and property management services,<br />
reported consolidated revenues of ¥135.2 billion (down 7.5% from<br />
the previous year) and consolidated operating income of ¥2.7 billion<br />
(up 43.7%).<br />
Forecast of Business Performance for Fiscal 2004<br />
In Japan, we see no sign of deflation ending, and little reason to<br />
expect strength in job markets, personal consumption or housing<br />
starts over the short term. Slumps in demand and capital investment<br />
will leave the economy confined to a sub-par growth mode.<br />
We recognize signs of domestic construction markets shrinking<br />
steadily. Fiscal retrenchment keeps governments in Japan under<br />
pressure to cut back on public works orders. Private-sector demand<br />
faces structural adjustments as manufacturing companies opt to<br />
move abroad.<br />
Globally, while conditions vary from region to region, cyclical weaknesses<br />
persist in the major markets of Europe and North America.<br />
Based on the above perspective, we forecast our consolidated performance<br />
for year ending March 31, 2004 as follows:<br />
Year ended Year ended<br />
March 31, 2004 March 31, <strong>2003</strong><br />
(forecast)<br />
(Millions of Yen)<br />
Revenues ¥1,700,000 ¥1,874,802<br />
Operating income 45,000 36,298<br />
Net income (loss) (5,000) 10,111<br />
We look for consolidated revenues to edge downward to ¥1,700 billion.<br />
However, on-site construction cost reduction along with a paring<br />
of selling, general and administrative expenses puts projected consolidated<br />
operating income at ¥45 billion, up 24% from this year.<br />
A major effort is under way to revamp the Company’s retirement benefits<br />
plan whereby the existing employees’ pension fund will be dissolved,<br />
and a new defined-contribution plan adopted. As this will<br />
involve taking a loss of approximately ¥40 billion, our forecast for consolidated<br />
net loss for the year is ¥5 billion.<br />
25
26<br />
Consolidated Balance Sheets<br />
KAJIMA Corporation and Consolidated Subsidiaries<br />
March 31, <strong>2003</strong> and 2002
28<br />
Consolidated Statements of Operations<br />
KAJIMA Corporation and Consolidated Subsidiaries<br />
Years ended March 31, <strong>2003</strong> and 2002
Consolidated Statements of Stockholders’ Equity<br />
KAJIMA Corporation and Consolidated Subsidiaries<br />
Years ended March 31, <strong>2003</strong> and 2002<br />
29
30<br />
Consolidated Statements of Cash Flows<br />
KAJIMA Corporation and Consolidated Subsidiaries<br />
Years ended March 31, <strong>2003</strong> and 2002
Notes to Consolidated Financial Statements<br />
KAJIMA Corporation and Consolidated Subsidiaries<br />
Years ended March 31, <strong>2003</strong> and 2002<br />
31
50<br />
Non-Consolidated Balance Sheets<br />
KAJIMA Corporation<br />
March 31, <strong>2003</strong> and 2002
52<br />
Non-Consolidated Statements of Operations<br />
KAJIMA Corporation<br />
Years ended March 31, <strong>2003</strong> and 2002
Non-Consolidated Statements of Stockholders’ Equity<br />
KAJIMA Corporation<br />
Years ended March 31, <strong>2003</strong> and 2002<br />
53
54<br />
Non-Consolidated Statements of Cash Flows<br />
KAJIMA Corporation<br />
Years ended March 31, <strong>2003</strong> and 2002
Notes to Non-Consolidated Financial Statements<br />
KAJIMA Corporation<br />
Years ended March 31, <strong>2003</strong> and 2002<br />
55
66<br />
Overseas Network<br />
HEAD OFFICE OVERSEAS DISTRICT AND REPRESENTATIVE OFFICES, SUBSIDIARIES, AND AFFILIATES<br />
2-7, Motoakasaka 1-chome,<br />
Minato-ku, Tokyo 107-8388, Japan<br />
Tel: 81-3-3404-3311<br />
Fax: 81-3-3470-1444, 1445<br />
(International Division)<br />
28th Floor, Shinjuku Park Tower Building,<br />
7-1, Nishishinjuku 3-chome, Shinjuku-ku,<br />
Tokyo 163-1028, Japan<br />
Tel: 81-3-5324-5880<br />
Fax: 81-3-5324-5827<br />
KAJIMA TECHNICAL<br />
RESEARCH INSTITUTE<br />
19-1, Tobitakyu 2-chome,<br />
Chofu-shi, Tokyo 182-0036, Japan<br />
Tel: 81-424-85-1111<br />
Fax: 81-424-88-3394<br />
U.S.A.<br />
KAJIMA U.S.A. INC.<br />
1251 Avenue of the Americas, 9th Floor,<br />
New York, New York 10020-1104, U.S.A.<br />
Tel: 1-212-355-4571<br />
Fax: 1-212-355-4576<br />
KAJIMA INTERNATIONAL INC.<br />
KAJIMA REAL ESTATE DEVELOPMENT INC.<br />
395 West Passaic Street, 3rd Floor,<br />
Rochelle Park, New Jersey 07662, U.S.A.<br />
Tel: 1-201-518-2100<br />
Fax: 1-201-518-1539<br />
KAJIMA ENGINEERING AND<br />
CONSTRUCTION, INC.<br />
901 Corporate Center Drive, Suite 212,<br />
Monterey Park, California 91754-7630, U.S.A.<br />
Tel: 1-323-780-4700<br />
Fax: 1-323-780-4900<br />
EAST WEST DEVELOPMENT CORPORATION<br />
123 Astronaut Ellison S.<br />
Onizuka Street, Suite 313,<br />
Los Angeles, California 90012, U.S.A.<br />
Tel: 1-213-485-1177<br />
Fax: 1-213-687-4324<br />
KAJIMA KONA COMPANY<br />
100 Ka’upulehu Drive,<br />
Ka’upulehu-Kona, Hawaii 96740 U.S.A.<br />
Tel: 1-808-325-8550<br />
Fax: 1-808-325-8551<br />
BELGIUM<br />
KAJIMA EUROPE B.V.<br />
Belgium Branch<br />
Rue Defacqz, 113-115 1060,<br />
Brussels, Belgium<br />
Tel: 32-2-537-9885<br />
Fax: 32-2-537-3247<br />
CZECH REPUBLIC<br />
KAJIMA EUROPE B.V.<br />
Czech Branch<br />
J&T Building 4th Floor, Pobrezni 14,<br />
186 00 Praha 8, Czech Republic<br />
Tel: 420-2-2171-0301<br />
Fax: 420-2-2171-0310<br />
EGYPT<br />
KAJIMA CORPORATION<br />
Egypt District Office<br />
3 El Mansour Mohamed St.,<br />
4th Floor, Apt. No. 401, Zamalek<br />
Cairo, Egypt<br />
Tel: 20-2-7360935<br />
Fax: 20-2-7360948<br />
FRANCE<br />
KAJIMA EUROPE S.A.<br />
10 Rue de la Paix 75002,<br />
Paris, France<br />
Tel: 33-1-42-61-20-53<br />
Fax: 33-1-42-60-37-64<br />
GERMANY<br />
Kajima GmbH<br />
Niedenau 61-63, 60325,<br />
Frankfurt/Main, Germany<br />
Tel: 49-69-740372, 740373, 740374<br />
Fax: 49-69-742514<br />
NETHERLANDS<br />
KAJIMA EUROPE B.V.<br />
Biesbosch 225, 1181 JC,<br />
Amstelveen, The Netherlands<br />
Tel: 31-20-347-3250<br />
Fax: 31-20-347-3260<br />
POLAND<br />
KAJIMA CORPORATION<br />
Poland District Office<br />
KAJIMA EUROPE B.V.<br />
Poland Branch, Warsaw Office<br />
LIM Center 16th Floor, Al. Jerozolimskie<br />
65/79 00-697, Warsaw, Poland<br />
Tel: 48-22-630-7520<br />
Fax: 48-22-630-7519<br />
TANZANIA<br />
KAJIMA CORPORATION<br />
Tanzania District Office<br />
P.O. Box 9763 Dar Es Salaam, Tanzania<br />
Tel: 255-22-2170510, 2170438<br />
Fax: 255-22-2170438, 2170510<br />
TURKEY<br />
KAJIMA CORPORATION<br />
Turkey District Office<br />
Balmumcu, Sakir Kesebir Sok,<br />
No. 32/10, 80700 Besiktas,<br />
Istanbul, Turkey<br />
Tel: 90-212-275-4620<br />
Fax: 90-212-275-4626<br />
UNITED KINGDOM<br />
KAJIMA EUROPE UK HOLDING LTD.<br />
Grove House, 248A Marylebone Road,<br />
London NW1 6JZ, U.K.<br />
Tel: 44-20-7465-0007<br />
Fax: 44-20-7465-8788
CHINA<br />
KAJIMA CORPORATION<br />
China District Office<br />
Tower A-605, Pacific Century Place<br />
No. 2 A Gong Ti North Road, Chaoyang District,<br />
Beijing 100027, China<br />
Tel: 86-10-6539-2171, 2172<br />
Fax: 86-10-6539-1716<br />
KAJIMA CORPORATION<br />
Shanghai District Office<br />
East Tower 437, Shanghai Centre,<br />
1376 Nanjing XI Lu,<br />
Shanghai 200040, China<br />
Tel: 86-21-6279-8525<br />
Fax: 86-21-6279-8526<br />
HONG KONG<br />
KAJIMA OVERSEAS ASIA PTE. LTD.<br />
Hong Kong District Office<br />
Room 1901, 19th Floor, Allied Kajima Building,<br />
138 Gloucester Road,<br />
Wan Chai, Hong Kong, S.A.R., China<br />
Tel: 852-2598-6767<br />
Fax: 852-2598-0696<br />
INDIA<br />
KAJIMA CORPORATION<br />
New Delhi Liaison Office<br />
S-71, Greater Kailash Part-I,<br />
New Delhi - 110048, India<br />
Tel: 91-11-2647-8505<br />
Fax: 91-11-2647-5806<br />
INDONESIA<br />
KAJIMA CORPORATION<br />
Indonesia District Office<br />
Sentral Seneyan 1, 17th Floor, Unit #117C,<br />
JL. Asia Afrika No. 8,<br />
Jakarta 10270, Indonesia<br />
Tel: 62-21-572-4480<br />
Fax: 62-21-572-4485<br />
P.T. KAJIMA INDONESIA<br />
Sentral Senayan 1, 17th Floor, Unit #117A<br />
JL. Asia Afrika No. 8,<br />
Jakarta 10270, Indonesia<br />
Tel: 62-21-572-4477<br />
Fax: 62-21-572-4473<br />
P.T. SENAYAN TRIKARYA SEMPANA<br />
JL. New Delhi No. 9 Pintu Satu Senayan,<br />
Gelora Bung Karno,<br />
Jakarta Pusat 10270, Indonesia<br />
Tel: 62-21-570-8877<br />
Fax: 62-21-570-8879<br />
MALAYSIA<br />
KAJIMA CORPORATION<br />
Malaysia District Office<br />
Unit 11.08, 11th Floor Menara Promet,<br />
Jalan Sultan Ismail 50250,<br />
Kuala Lumpur, Malaysia<br />
Tel: 60-3-2145-2526<br />
Fax: 60-3-2145-2786<br />
KAJIMA (MALAYSIA) SDN. BHD.<br />
16th Floor, Menara Promet,<br />
Jalan Sultan Ismail 50250,<br />
Kuala Lumpur, Malaysia<br />
Tel: 60-3-2141-4391<br />
Fax: 60-3-2142-0322<br />
MYANMAR<br />
KAJIMA CORPORATION<br />
Myanmar District Office<br />
55-A, University Avenue, Bahan Township,<br />
Yangon, Myanmar<br />
Tel: 95-1-503237, 503238<br />
Fax: 95-1-503308<br />
PHILIPPINES<br />
KAJIMA CORPORATION<br />
Philippines District Office<br />
KAJIMA PHILIPPINES INC.<br />
12F Sky Plaza, 6788 Ayala Avenue,<br />
Makati City, Philippines<br />
Tel: 63-2-886-6818<br />
Fax: 63-2-886-6817<br />
SINGAPORE<br />
KAJIMA CORPORATION<br />
Singapore District Office<br />
80 Marine Parade Road,<br />
#14-07 Parkway Parade,<br />
Singapore 449269, Singapore<br />
Tel: 65-6344-9722<br />
Fax: 65-6342-2272<br />
KAJIMA OVERSEAS ASIA PTE. LTD.<br />
80 Marine Parade Road,<br />
#14-07 Parkway Parade,<br />
Singapore 449269, Singapore<br />
Tel: 65-6344-0066<br />
Fax: 65-6344-3777<br />
SRI LANKA<br />
KAJIMA CORPORATION<br />
Sri Lanka District Office<br />
No. 77A, Ward Place,<br />
Colombo 7, Sri Lanka<br />
Tel: 94-1-678415, 678416, 678417<br />
Fax: 94-1-678414<br />
TAIWAN<br />
KAJIMA CORPORATION<br />
Taiwan District Office<br />
2nd Floor, No. 9, Lane 65,<br />
Chung Shan North Road Section 2,<br />
Taipei, Taiwan<br />
Tel: 886-2-2541-0812<br />
Fax: 886-2-2523-5637<br />
CHUNG-LU SINO-KAJIMA<br />
CONSTRUCTION CO., LTD.<br />
2nd Floor, No. 9, Lane 65,<br />
Chung Shan North Road Section 2,<br />
Taipei, Taiwan, R.O.C.<br />
Tel: 886-2-2541-0812<br />
Fax: 886-2-2522-3092<br />
THAILAND<br />
KAJIMA CORPORATION<br />
Thai District Office<br />
952 Ramaland Building 17th Floor,<br />
Rama IV Road, Suriyawongse, Bangrak,<br />
Bangkok 10500, Thailand<br />
Tel: 65-2-632-8600<br />
Fax: 65-2-632-8603<br />
THAI KAJIMA CO., LTD.<br />
19th Floor, Ramaland Building,<br />
952 Rama IV Road, Bangrak,<br />
Bangkok 10500, Thailand<br />
Tel: 66-2-632-9300<br />
Fax: 66-2-632-9312<br />
VIETNAM<br />
KAJIMA CORPORATION<br />
Vietnam District Office<br />
Thanglong Bldg. Unit No. 203A, 2nd Floor,<br />
No. 105, Lang Ha Street,<br />
Hanoi, Vietnam<br />
Tel: 84-4-562-2748<br />
Fax: 84-4-562-2738<br />
KAJIMA OVERSEAS ASIA PTE. LTD.<br />
Vietnam District Office<br />
7th Floor, Me Linh Point Tower,<br />
2 Ngo Duc Ke, District 1,<br />
Ho Chi Minh City, Vietnam<br />
Tel: 84-8823-4510<br />
Fax: 84-8823-4512<br />
67
68<br />
Principal Subsidiaries and Affiliates<br />
DOMESTIC<br />
Katabami Kogyo Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1941<br />
Taiko Trading Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1947<br />
Azuma Kanko Kaihatsu Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1954<br />
Kajima Road Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1958<br />
Nippon Foundation Engineering Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1959<br />
Kajima Resort Corporation<br />
Head Office: Tokyo<br />
Established: 1960<br />
Toasangyo Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1961<br />
Chemical Grouting Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1963<br />
Kajima Institute Publishing Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1963<br />
Kajimavision Productions Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1963<br />
Japan Sea Works Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1965<br />
Chuo Industries Co., Ltd.<br />
Head Office: Osaka<br />
Established: 1972<br />
Hotel Kajima no Mori<br />
Head Office: Karuizawa<br />
Established: 1977<br />
Yaesu Book Center Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1977<br />
Kajima Services Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1978<br />
Kajima Leasing Corporation<br />
Head Office: Tokyo<br />
Established: 1984<br />
Shinrinkohen Golf Club<br />
Head Office: Saitama<br />
Established: 1984<br />
Creative Life Corporation<br />
Head Office: Tokyo<br />
Established: 1984<br />
Ilya Corporation<br />
Head Office: Tokyo<br />
Established: 1985<br />
KOCAMB Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1985<br />
Kobori Research Complex Inc.<br />
Head Office: Tokyo<br />
Established: 1986<br />
Kajima Regional Engineering Support &<br />
Services Tokyo<br />
Head Office: Tokyo<br />
Established: 1987<br />
Armo Architects & Engineers<br />
Head Office: Tokyo<br />
Established: 1987<br />
Human Life Services Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1987<br />
Environment Management Corporation<br />
Head Office: Tokyo<br />
Established: 1987<br />
F.R.C. Corporation<br />
Head Office: Tokyo<br />
Established: 1988<br />
Kajima Mechatro Engineering Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1989<br />
Kajima Regional Engineering Support &<br />
Services Yokohama<br />
Head Office: Yokohama<br />
Established: 1989<br />
Atema Kogen Resort Inc.<br />
Head Office: Niigata<br />
Established: 1989<br />
Act Technical Support Inc.<br />
Head Office: Tokyo<br />
Established: 1989<br />
Kajima Tokyo Kaihatsu Corporation<br />
Head Office: Tokyo<br />
Established: 1989<br />
Kajima Aquatech Corporation<br />
Head Office: Tokyo<br />
Established: 1990<br />
ARTES Corporation<br />
Head Office: Tokyo<br />
Established: 1990<br />
Nasu Resort Corporation<br />
Head Office: Tokyo<br />
Established: 1990<br />
Plus Alpha, Ltd.<br />
Head Office: Tokyo<br />
Established: 1991<br />
Kajima Karuizawa Resort Inc.<br />
Head Office: Gunma<br />
Established: 1991<br />
Kajima Regional Engineering Support &<br />
Services Osaka<br />
Head Office: Osaka<br />
Established: 1991<br />
Today & Tomorrow Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1991<br />
Toshi Kankyo Engineering Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1992<br />
Grout Trading Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1992<br />
Kasen Development Inc.<br />
Head Office: Tokyo<br />
Established: 1994<br />
KRC Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1994
East Real Estate Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1994<br />
SEEDER Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1996<br />
Act Engineering Inc.<br />
Head Office: Tokyo<br />
Established: 1997<br />
Kajima Tohoku Kosan Co., Ltd.<br />
Head Office: Sendai<br />
Established: 1997<br />
Clima-Teq Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1998<br />
Public Relations Officer Corporation<br />
Head Office: Tokyo<br />
Established: 1998<br />
Engineer & Risk Services Corporation<br />
Head Office: Tokyo<br />
Established: 1998<br />
Techno-Wave Corporation<br />
Head Office: Tokyo<br />
Established: 1999<br />
Kajima Yaesu Kaihatsu Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 1999<br />
Niigata Bandaijima Building Co., Ltd.<br />
Head Office: Niigata<br />
Established: 1999<br />
Kajima Shiodome Kaihatsu Co., Ltd.<br />
Head Office: Tokyo<br />
Established: 2000<br />
Green Materials Recycle Corporation<br />
Head Office: Tokyo<br />
Established: 2002<br />
Toyama Green Food Recycle Co., Ltd.<br />
Head Office: Toyama<br />
Established: 2002<br />
OVERSEAS<br />
NORTH AMERICA<br />
Kajima U.S.A. Inc.<br />
Head Office: New York, New York, U.S.A.<br />
Established: 1987<br />
Kajima International Inc.<br />
Head Office: Rochelle Park, New Jersey, U.S.A.<br />
Established: 1964<br />
Kajima Construction Services, Inc.<br />
Kajima Associates, Inc.<br />
Head Office: Rochelle Park, New Jersey, U.S.A.<br />
Established: 1991<br />
Kajima Real Estate Development Inc.<br />
Head Office: Rochelle Park, New Jersey, U.S.A.<br />
Established: 1999<br />
Industrial Developments International, Inc.<br />
Head Office: Atlanta, Georgia, U.S.A.<br />
Established: 1989<br />
KUD International LLC<br />
Head Office: Santa Monica, California, U.S.A.<br />
Established: 1997<br />
Commercial Development International/<br />
East, Inc.<br />
Head Office: New York, New York, U.S.A.<br />
Established: 1990<br />
Commercial Development International/<br />
West, Inc.<br />
Head Office: Monterey Park, California, U.S.A.<br />
Established: 1991<br />
Kajima Engineering and Construction, Inc.<br />
Head Office: Monterey Park, California, U.S.A.<br />
Established: 1984<br />
East West Development Corporation<br />
Head Office: Los Angeles, California, U.S.A.<br />
Established: 1973<br />
Kajima Kona Company<br />
Head Office: Ka'upulehu-Kona, Hawaii, U.S.A.<br />
Established: 1992<br />
EUROPE<br />
Kajima Europe B.V.<br />
Head Office: Amstelveen, The Netherlands<br />
Established: 1987<br />
Kajima Europe UK Holding Ltd.<br />
Head Office: London, U.K.<br />
Established: 1990<br />
Kajima Construction Europe (U.K.) Ltd.<br />
Head Office: London, U.K.<br />
Established: 1990<br />
Kajima Design Europe Ltd.<br />
Head Office: London, U.K.<br />
Established: 1992<br />
Kajima Property Holdings Ltd.<br />
Head Office: London, U.K.<br />
Established: 1991<br />
Kajima Europe S.A.<br />
Head Office: Paris, France<br />
Established: 1980<br />
Kajima GmbH<br />
Head Office: Frankfurt/Main, Germany<br />
Established: 1991<br />
ASIA<br />
Kajima Overseas Asia Pte. Ltd.<br />
Head Office: Singapore, Singapore<br />
Established: 1988<br />
Kajima Design Asia Pte. Ltd.<br />
Head Office: Singapore, Singapore<br />
Established: 1992<br />
P.T. Kajima Indonesia<br />
Head Office: Jakarta, Indonesia<br />
Established: 1975<br />
P.T. Senayan Trikarya Sempana<br />
Head Office: Jakarta, Indonesia<br />
Established: 1991<br />
Thai Kajima Co., Ltd.<br />
Head Office: Bangkok, Thailand<br />
Established: 1985<br />
Kajima (Malaysia) Sdn. Bhd.<br />
Head Office: Kuala Lumpur, Malaysia<br />
Established: 1989<br />
Kajima Philippines Inc.<br />
Head Office: Makati City, Philippines<br />
Established: 2002<br />
Chung-Lu Sino-Kajima Construction Co., Ltd.<br />
Head Office: Taipei, Taiwan<br />
Established: 1983<br />
69
70<br />
Board of Directors and Auditors<br />
CHAIRMAN<br />
Rokuro Ishikawa<br />
PRESIDENT<br />
Sadao Umeda<br />
EXECUTIVE VICE PRESIDENTS<br />
Yoshihiko Iwamatsu<br />
Masaru Kawai<br />
Mikio Shoji<br />
Naoki Atsumi<br />
Osamu Minamitani<br />
Kiyoshi Ogami<br />
Corporate Data<br />
HEAD OFFICE<br />
2-7, Motoakasaka 1-chome, Minato-ku,<br />
Tokyo 107-8388, Japan<br />
Tel: 81-3-3404-3311<br />
Fax: 81-3-3470-1444, 1445<br />
URL: http://www.kajima.co.jp/welcome.html<br />
FOUNDED<br />
1840<br />
ESTABLISHED<br />
1930<br />
SENIOR MANAGING DIRECTORS<br />
Ryosuke Hirota<br />
Kazuhito Amikura<br />
Suguru Akiyama<br />
Takehisa Iho<br />
Seiichiro Tomioka<br />
Mitsuyoshi Nakamura<br />
Kinji Ohashi<br />
Yukihiro Omika<br />
Tasaburo Shimizu<br />
Hiroshi Kaneko<br />
MANAGING DIRECTORS<br />
Takahiko Nishio<br />
Keiichiro Namai<br />
Seisuke Nakano<br />
Mitsuhiro Hirata<br />
Yoshihiro Nakahora<br />
Yoshitoshi Tamura<br />
Takashi Tokuda<br />
Hisaya Igarashi<br />
Akira Okamoto<br />
Komao Yasuda<br />
Noboru Ikebata<br />
Hiroshi Ishikawa<br />
Hiroaki Hoshino<br />
Shuji Horita<br />
Hirohisa Takita<br />
Kaoru Someya<br />
Yasuo Morimitsu<br />
NUMBER OF EMPLOYEES<br />
10,850<br />
PAID-IN CAPITAL<br />
¥64,071 million<br />
COMMON STOCK<br />
Authorized: 1,920,000,000 shares<br />
Issued: 961,312,022 shares<br />
NUMBER OF STOCKHOLDERS<br />
77,658<br />
DIRECTOR AND SENIOR ADVISER<br />
Shoichi Kajima<br />
DIRECTORS<br />
Takaji Mineo<br />
Kunio Yanagisawa<br />
Kenichi Kotani<br />
Teruaki Murata<br />
Atsushi Hattori<br />
Teruaki Yamaguchi<br />
Motomichi Ishikawa<br />
Susumu Tsuchiya<br />
Takashi Hinago<br />
Toshio Yamamoto<br />
Takashi Momma<br />
Seigo Akanuma<br />
Kimitsugu Kudo<br />
CORPORATE AUDITORS<br />
Kozo Takahara<br />
Tatsuo Hatanaka<br />
Akira Aoki<br />
Shoh Nasu<br />
Shigeru Kobori<br />
(As of June 30, <strong>2003</strong>)<br />
TRANSFER AGENT<br />
The Chuo Mitsui Trust & Banking Co., Ltd.<br />
INDEPENDENT AUDITORS<br />
Deloitte Touche Tohmatsu<br />
LISTINGS<br />
Common stock is listed on the Tokyo, Osaka,<br />
Nagoya, and London stock exchanges.<br />
(As of March 31, <strong>2003</strong>)
2-7, Motoakasaka 1-chome,<br />
Minato-ku, Tokyo 107-8388, Japan<br />
TEL: 81-3-3404-3311<br />
FAX: 81-3-3470-1444, 1445<br />
URL: http://www.kajima.co.jp/welcome.html<br />
Printed in Japan