Kajima has undertaken construction and real estate development projects in more than 50 countries around the world, with operations currently in more than 20 countries. Revenues from overseas operations during the financial year ended March 31, 2007 amounted to ¥288 billion, a rise of 7.4% year on year.

Kajima's overseas activities consist of business conducted through local subsidiaries and such construction projects managed directly by the International Division in Tokyo as official development assistance (ODA) and large-scale civil engineering projects. Our regional subsidiaries are located in the countries where continuing businesses are established through their design, construction and real estate development entities, providing a business network that allows the Company to make full use of its collective strength and offer a global service.

Construction work on the eastern section of the East-West Highway in Algeria

Construction of Cebu South Coastal Road Project, Segment 3B-2, Subway (Tunnel) Section in the Philippines

Project for the Widening of Kilwa Road in Tanzania

Kajima's current three-year Medium-Term Business Plan calls for an improved performance of overseas operations, and efforts are underway to reposition and to bolster our overseas civil engineering operations.

First and foremost is market selection and focus. We have selectively bid for large projects that are self-financed by governments and public corporations in Taiwan, the Gulf States and North Africa. The jobs that Kajima has successfully bid in these regions include the Dubai Metro and the Algeria East-West Highway. In terms of the sheer scale and the dollar amounts involved, these rank among the most significant infrastructure works that Kajima has undertaken overseas. In order to lift profitability, Kajima aims to carve out market niches by combining its strong track record with superior technical expertise. In this sense, we wish to maintain our market position in Taiwan while pursuing new opportunities that are propelled by oil revenues in the Middle East and the Maghreb countries in North Africa.

On the other hand, we have seen the amounts of Japan's official development assistance (ODA) trending to decline over the years. Since the ODA-funded projects in Southeast Asia and tropical Africa have been the mainstay of our overseas business, in order to defend our position, we will respond by narrowing our focus in terms of project type and location, and by reorganizing and focusing our bidding teams on large, yen credit-financed projects in target markets.

As the scale of our construction projects grows, so does the need to effectively mobilize local subcontractors and to optimally procure materials and equipment. Kajima is poised to meet these challenges by establishing a global management network that best utilizes its strength and resources.

Surabaya Airport Construction Project, Indonesia