Simplex (4373) Company presentation summary

Management philosophy and business model

• Pursues innovation from Japan to the world, aiming to be a strategic partner for clients and a game changer in digital transformation (DX).

• Operates a unique business model, the "Simplex Way," emphasizing full cycle coverage, direct client engagement, and hybrid talent development.

• Retains intellectual property rights through the Simplex Library, enabling faster, higher-quality solution delivery.

• Achieved nine consecutive years of revenue growth, with a strong focus on capital markets, financial retail, and enterprise DX.

Financial performance and targets

• FY3/26 revenue reached ¥58.6bn (+19.3% YoY), with operating profit at ¥14.4bn and ROE at 21.0%.

• Targets for FY3/30 are ¥100.0bn in revenue and ¥25.0–30.0bn in operating profit, aiming for a 30% OP margin.

• Xspear, the consulting arm, is expected to contribute about 25% of total revenue by FY3/30.

• Maintains a stable dividend policy with a 40% payout ratio and increasing ROE.

Growth strategy and AI initiatives

• Launched MTBP 2030 – Vision1000, focusing on AI-native delivery, web3, and non-labor-intensive business models.

• AI adoption has improved productivity, with company-wide transition to AI-native delivery underway.

• Proprietary framework "Simplex Siphon" standardizes AI utilization, enhancing reproducibility and project quality.

• AI-driven productivity gains are redirected to higher-value work, supporting faster growth and higher margins.