Simplex Integrated Report 2024
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+1.3%Phase 1: Entry into the Securities IndustrySimplex demonstrated its value as a tech firm capable of implementing a full stack of services, from low-layer source code development to mission-critical system construction and 24/7 operations and maintenance. While major system companies were mainly localizing overseas packages, it did not take long for Simplex's bond front office system to become the de facto standard in the securities industry.Phase 2: Expansion into banking Since the 2000s, we expanded our business domain to the banking industry. Our trading systems can be used for more than 200 types of financial instruments, from plain vanilla products to small-volume exotic products and have become synonymous with Simplex. Based on our advanced financial technology and engineering capabilities, including a high-speed computing platform that enables real-time risk monitoring, we have become a household name in the banking industry.Phase 3: Transition from individual optimization to overall optimizationWe were responsible for building systems on a financial instrument-by-instrument basis in Phase 1 and Phase 2. For this reason, what we pursued during these phases was individual optimization. In contrast, Phase 3 after the MBO in 2013 was truly a challenge to achieve total optimization. Another major turning point was the need for regulatory response to strengthen risk management triggered by the collapse of Lehman Brothers in 2008. By providing a single platform that integrates trading and risk management for several major banks and securities firms that were facing advanced risk management challenges, we have achieved true business transformation that is not superficial DX.History of Capital MarketsSimplex is a unique tech firm that has been helping financial institutions increase their value by focusing on advanced financial technologies primarily for trading and risk management. Capital Markets, a core business domain that has remained unchanged since the firm was founded in 1997, has gone through three major phases of deep-diving.The modest growth rate for Capital Markets targeted in MTBP2027 is a strategic decision to focus our engineering resources on other growth areas. However, Capital Markets remains our core of core areas, as it brings evolution in our digital capabilities such as ultra-low latency, massive cloud, AI, and web3.Also, this is an ideal area for the development of hybrid professionals, as Capital Markets requires not only advanced financial engineering, but also a high degree of business understanding. Simplex Group aims to maximize client value in capital markets and achieve sustainable growth through these innovations and talent development.Q. What is the value of the one-platform offering?Q. How should we view the contribution of one platform to our business performance?Q. How much room is there for development of clients who are interested in one-platform offering?Q. What factors contributed to your breakthrough after the MBO?Q. Why is the growth rate in MTBP2027 so modest?Q. To what extent do you expect sales to expand over the medium to long term?Future Growth StrategyLeading financial institutions, which are the major clients in Capital Markets, are enhancing their competitiveness and strengthening risk management through long-term IT investments with an eye to the future. We at Simplex Group have a strong belief that we can work with these clients to contribute to the development of capital markets. Based on this belief, we will continue our proactive consulting sales approach and focus on winning important projects that will benefit from our one-platform offering.[Reference] FAQs about Capital Markets29Financial Solutions199714,13913,402In our Capital Markets business, we provide trading and risk management platforms and other IT solutions for institutional investors to financial institutions, mainly banks and comprehensive securities firms.Broad categoryMarket entryProvider(Millions of yen)RevenueFY3/22FY3/2314,330YoYFY3/24Accelerates talent development and the acquisition of cutting-edge technologies in the environment where advanced “Biz x Tech” is required Capital Markets

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