Kiyoshi Sato

Profile
Tenure
Jun 2003 – Apr 2009
Years in office
5.8 years
Name in Japanese
佐藤潔
Title at appointment
President
Performance in office
Tokyo Electron
Performance in office
FY2003FY2009Change
Revenue¥460.5billion¥508.0billion+10%
Net margin-9%1.5%+10.5pt
HigashiSatoTakenakaHigashi
Revenue¥529.6 billionRevenue¥612.1 billionNet margin1.5%Net margin-3.2%1999/32004/32009/32014/3
Revenue¥529.6 billionRevenue¥612.1 billionNet margin1.5%Net margin-3.2%1999/32004/32009/32014/3
Tenure

Tenure

Background

He joined the company in April 1979, became Business Unit General Manager for Clean Track in December 2001 and Executive Officer attached to the President in April 2003. Just before becoming President he was a Corporate Senior Staff member, equivalent to an Executive Officer, and had no experience as a Director.

Education: Waseda University, Faculty of Law (1979)

Selection

With the bursting of the IT bubble, the company posted a consolidated net loss of ¥19.9 billion in the fiscal year ended March 2002, ending a run of profits that had lasted from its founding through the FY ended March 2001. In the FY ended March 2003 it again posted an ordinary loss of ¥0.2 billion and a net loss of ¥41.5 billion, a second straight year in the red. The company had an unwritten rule that one loss was a warning sign and two in a row meant a change of management. On March 10, 2003, the board, acting on the nominating committee's recommendation, chose 46-year-old Kiyoshi Sato as the next President.

Initiatives

To lower the break-even point, he cut about 1,000 employees, or 10% of the workforce, and consolidated factories. Because the company needed to serve semiconductors for digital consumer electronics with short product lives, he ordered that the production lead time, which had taken five to six months, be cut in half. Consolidated net sales grew from ¥529.6 billion in the fiscal year ended March 2004 to ¥906.0 billion in the FY ended March 2008, with operating income reaching ¥168.5 billion. But the Lehman shock cut net sales to ¥508.0 billion and operating income to ¥14.7 billion in the FY ended March 2009.

Career

Career

Tokyo Electron

Date Position
Apr 1979 Joined
Dec 2001 Kurintorakku BUGM
Apr 2003 President, Staff, Executive Officer
Jun 2003 President
Apr 2009 Stepped down as President