We have launched a new Medium-term Business Plan (Financial Years 2009 - 2011) in April 2009 to adapt the Group to this highly volatile and changing business environment so that the foundation for stable earnings will be firmly established.
Kajima Group's core business is comprised of civil engineering business, building construction business, and real estate development business and the Plan's target is to attain such corporate constitution that will ensure annually a minimum of ¥40.0 billion consolidated recurring profit and ¥30.0 billion non-consolidated recurring profit by the end of Financial Year 2011.
The Plan aims to lay the robust foundations for becoming a truly profitable enterprise by further strengthening competitiveness and profitability in each of our core business segments.
In order to maximize profits in each business, while ensuring closer cooperation and allocating company resources optimally among sales, design, and construction units, we will secure proper profits by improving technology-related proposals capability, by enhancing estimate and procurement functions and by exercising prudence in obtaining new orders, and, in addition, we will raise profitability by implementing measures to rationalize production, by strengthening operational and production-related units including subcontractors and vendors, by increasing the efficiency of administrative and overhead-related units, by beefing up production-supporting functions and by undertaking strategically-oriented research and technological development.
We will steadily build up profits by carrying out these measures and thereby increase the shareholders' equity as well as reduce interest-bearing debts. With enhanced equity and smaller debt, we will have an improved tolerance for risks associated with real estate development business and overseas business.
