Simplex (4373) Investor presentation summary

Business model and growth

• FY26 revenue reached ¥58.6bn, up 21.0% YoY; operating profit was ¥14.4bn, up 21.4%, and ROE was 21.0%.

• Consulting and technology teams cover strategy through system development, operations and ongoing improvement, with direct client engagement and hybrid business-technology talent.

• Low-risk, stable revenue streams were ~62% of FY26 revenue: repeat orders ~38% and recurring revenue ~24%; one-off revenue was ~38%.

• Since FY3/21, revenue from major domestic financial groups above ¥5.0bn grew from 0 to 3; FY26 Xspear revenue reached ¥10.8bn and Enterprise DX revenue growth was 51%.

MTBP 2030 and financial targets

• FY26 operating profit before special bonus payments was ¥15.4bn versus the ¥15.0bn MTBP 2027 target, achieving the plan one year early; reported operating profit after ¥1.0bn in special bonuses was ¥14.4bn.

• FY27 targets are revenue of ¥71.0bn, operating profit of ¥17.5bn and ROE of 22.3%.

• FY30 targets, excluding M&A, are revenue of ¥100.0bn, operating profit of ¥25.0–30.0bn, gross margin of 45–50%, operating margin of 25–30% and ROE of 25–30%.

• Four-year revenue CAGR target is 14.3%; Strategy/DX Consulting is expected to represent ~25% of FY30 revenue.

• The plan prioritizes investment in the first two years and harvesting returns in the last two; stated priorities include AI-native delivery, a less labor-intensive model, web3 and account development.

AI delivery and productivity

• AI tool use lifted annual revenue per engineer/consultant from ¥26.32mn in FY25 to ¥28.79mn in FY26; FY26 project trials recorded person-month reductions of 30%, 39% and 73% across three delivery approaches.

• Simplex Siphon standardizes development processes, a secure AI platform, tools and assets; company-wide AI-native delivery began in FY27, covering all new development projects and expanding in additional development in stages.

• H1 FY27 AI productivity gains of ~¥0.9bn exceeded AI usage fees of ~¥0.7bn, producing slightly positive Net AI Productivity; the FY27 full-year outlook is broadly flat, with usage fees expected at ~¥1.8bn.

• Productivity capacity is intended for higher-value and more complex work, faster project turnover and order growth; the plan targets improved project profitability and gross margin through AI-enabled delivery.