About the Simplex GroupRepeat-order business refers to additional development projects that result from proactive business tuning after a system is up and running. Specifi cally, it refers to projects for additional development of existing systems at clients resulting from a business gap analysis against the system concept development phase, business plan review, and improvement proposals. As the above-mentioned process is a key element of DX success, winning repeat orders is essential for strengthening existing client loyalty and keeping abreast of cutting-edge business and technology.Recurring business refers to a project in which monthly revenue is stably recorded as long as the contract with the client continues. Specifi cally, revenue from recuring business consists of operation and maintenance services including 24/7 system operation and monitoring, troubleshooting and recovery activities and from subscription services . In the multi-layered vendor hierarchy of the IT industry that is commonplace in Japan, the fi nal subcontractors are often only responsible for operations and maintenance. In contrast, our Operation Service, handled by the industry's best hybrid talent, satisfi es many of our clients.A high-quality revenue model enabled by the Simplex WayThe Simplex Way has successfully created a high-quality revenue model in which repeat-order business and recurring business grow in a cascading fashion as one-time-fee business related to new system development expands. Repeat-order and recurring businesses are a low-risk, stable source of revenue, accounting for 63% of total revenue for FY3/2024.Growth StrategyMateriality Issues and Major RisksFY3/21ESGDataFY3/22FY3/23FY3/24Simplex Integrated Report 2024One-time-fee businessRepeat-order businessRecurring business18Type of revenues that the Simplex Way generates275- Strategy/DX Consulting- New system developmentOne-time-fee businessRepeat-order businessRecurring business- Additional development of existing systems3033- Operation and maintenance- Subscription services37Our Business ModelPercentage of total revenue by revenue type (%)Low-risk, stable sourceof revenue63Business ModelRevenue by revenue type (Billions of yen)Full Cycle CoverageOn-time-fee business407349305Direct Client EngagementRepeat-order businessHybrid TalentsRecurring businessRevenue ModelRepeat-order businessRecurring businessSimplex Way
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