Toshiki Kawai

Profile
Tenure
Jan 2016 – Present
Years in office
10.8 years
Name in Japanese
河合利樹
Title at appointment
Representative Director, President and CEO
Performance in office
Tokyo Electron
Performance in office
FY2015FY2026Change
Revenue¥613.1billion¥2.4trillion+299%
Net margin11.7%23.5%+11.8pt
TakenakaHigashiKawai
Revenue¥663.9 billionRevenue¥2.4 trillionNet margin11.7%Net margin23.5%2011/32016/32021/32026/3
Revenue¥663.9 billionRevenue¥2.4 trillionNet margin11.7%Net margin23.5%2011/32016/32021/32026/3
Tenure

Tenure

Background

He joined the company in 1986 and comes from sales. He became an Executive Officer in October 2010 and Representative Director, Executive Vice President and COO in June 2015, two months after the April 2015 announcement that the combination agreement with Applied Materials of the United States had been terminated. He became President and CEO in January 2016.

Education: Meiji University, Faculty of Business Administration (1986)

Selection

The business combination with Applied Materials of the United States had been pursued by his predecessor Tetsuro Higashi, who from April 2013 handled the negotiations while serving as both Chairman and President. Kawai took office in January 2016. The year before, the combination had collapsed after antitrust problems were raised, and the option of absorbing swelling development costs through the combination was already gone. In the fiscal year ended March 2016, consolidated net sales were ¥663.9 billion and operating income ¥116.8 billion.

Initiatives

In May 2019 he set a target of achieving net sales of ¥2 trillion and an operating margin of 30% or more within five years, and this financial model was achieved two years ahead of schedule. Organizationally, he consolidated the development departments that had been split by equipment type into one. The mid-term management plan that followed in June 2022, with the fiscal year ending March 2027 as its final year, set targets of net sales of ¥3 trillion or more, an operating margin of 35% or more and ROE of 30% or more. It plans to devote more than ¥1 trillion to research and development and ¥400 billion to capital investment over five years. Shareholder returns combine a consolidated payout ratio of 50% with a floor on annual dividends, and in April 2023 the company split each common share into three.

Career

Career

Tokyo Electron

Date Position
Apr 1986 Joined
Oct 2010 Executive Officer
Jun 2015 Representative Director, Executive Vice President and COO
Jan 2016 Representative Director, President and CEO