With experience in over 50 countries, Kajima has a permanent presence in 21 nations, and currently has 13 project offices which are directly managed from Japan.

Kajima conducts most of its overseas operations through three primary regional subsidiariesin the United States, Europe, and Southeast Asia. Each of these subsidiaries has independent division companies engaged in construction, development, and design, forming a far-reaching network that maximizes Kajima's global capacity to meet the particular needs of each market. The remaining overseas worklarge-scale civil engineering, and Japanese government official development assistance (ODA)is managed directly from Japan.

Market Conditions and Business Performance
Kajima is working to achieve a consistent scale for its overseas operations by pursuing contracts from a wide range of local clients, avoiding undue concentration on certain companies or industries. In the term under review, the value of overseas construction contracts reached 111 billion, with approximately 80% of these from local clients.

In the real estate development business, Kajima is working to improve profitability in each region, while striving to reduce interest-bearing debt. The Company is very selective about the projects it undertakes, maintaining a sharp focus on risk management and profitability. Total revenues including construction operations, real estate development and other businesses at Kajima's overseas operations, combining subsidiaries and directly managed operations, were 191.3 billion.

Kajima U.S.A. Inc. (KUSA)
With the Hawaiian Dredging Construction Company joining the group, Kajima's construction business in the U.S. reached 62.6 billion in new contracts. In real estate development, Industrial Developments International, Inc. (IDI), which develops distribution warehouse facilities, continued to post favorable earnings through property portfolio sales and property management. Consolidated revenues at KUSA were 89.2 billion.

Kajima Kona Holdings, Inc. (KKH)
The Hualalai Resort, developed and operated by Kajima on the big island of Hawaii, has earned a reputation as one of Hawaii's premier resorts. KKH posted consolidated revenues of 14.7 billion.

Kajima Overseas Asia Pte. Ltd. (KOA)
Although the construction business in Southeast Asia is facing intense competition, Kajima sees the potential for steady growth in the region. In real estate, business in the management, leasing, and operation of offices, hotels, and shopping malls performed well. KOA posted consolidated revenues of 22.7 billion and secured a sound profit overall.

Chung-Lu Sino-Kajima Construction Co., Ltd. (Sino-Kajima)
Sino-Kajima, in Taiwan, achieved 15.9 billion in new contracts (up 9.6 billion year on year) and 12.1 billion in revenues by winning large-scale construction contracts from local Taiwanese companies, including the Taiwan High Speed Rail Depot. This progress brought Sino-Kajima record profits for the second year in a row.

Kajima Europe B.V. (KE)
Since the construction market has matured in Europe, Kajima Europe is improving business performance by focusing on the U.K. and the promising Central European markets, which are expected to benefit from the EU expansion. In real estate development, KE is aggressively pursuing the private finance initiative (PFI) projects of the national and local governments in the United Kingdom. Consolidated revenues at KE were 21.8 billion.

Overseas Operations Managed Directly from Japan
Kajima expects to continue winning large-scale civil engineering contracts in Vietnam, Thailand, the Philippines, and elsewhere. Meanwhile, to offset anticipated cutbacks in ODA projects, the Company plans to heighten its effort in infrastructure construction markets funded by local capital.

Future Outlook and Priorities
One of the key elements of Kajima's Medium-Term Business Plan is to achieve the target of 235 billion in revenues from overseas operations. Along with this, Kajima aims to establish an overseas business framework capable of securing sound and stable recurring profit. In the area of individual projects, the Company is pursuing a profit-oriented strategy of selective business development, focusing on regions and fields where the Company already has significant experience and expertise, while closely monitoring changes in the market environment of each country and region.

Major Building Construction Contracts in the Term under Review

Major Civil Engineering Contracts in the Term under Review