Top Message

SATO Corporation changed to a holding company structure on October 3, 2011, with the aim of achieving further growth.

The three key objectives of this change to our organization are as follows:

First, by pursuing expertise in each group company created through the separation and decentralization of the organization we will strengthen our Japanese business, which we see as the foundation from which we will expand our overseas business.

Second, under a holdings company structure it will be easier to carry out M&As in the various sectors of our Japanese and overseas business. This in turn will accelerate the growth of our organization.

Third, by establishing top management at each of the smaller independent companies, we will develop a next generation of fast-moving and motivated management personnel.

By achieving these three key objectives we will enhance the profit-earning capacity and growth potential of the entire SATO group.

The SATO Group has established the unique business model of DCS (Data Collection Systems) and Labeling that enables the accurate and efficient collection of information on people and goods through the use of Auto-ID technology such as barcodes, QR codes and IC tags. With DCS & Labeling, the SATO Group proposes solutions to improve efficiency in the workplaces of customers from a wide range of industries.

While we continue to anticipate growth in the Japanese market as the industry leader, we also aim to achieve the largest share of the global market, estimated to be more than ten times the size of the Japanese market. Without growth in the overseas market, it is not possible for the SATO Group to realize sustainable growth. Under the new system started in October we will accelerate the global development of DCS & Labeling. To realize our long-term goal of sales of 600 billion yen, we will first achieve our mid-term targets for FY2020: sales of 150 billion yen, and an operating income of 15 billion yen.

We continue to ask for the continued support and understanding of all of our shareholders and investors.

October, 2011

President and CEO
Kazuo Matsuyama