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full Annual Report 2003(5.9

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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.

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