It has already been three years since our relisting in September 2021. As a manager, I am fully committed to driving business growth and enhancing our fundamental value as a company. I believe that what I am about to share will provide a context that will help you, as shareholders or investors, assess the future outlook of the Simplex Group.In our first integrated report, I, as CEO, look back on the progress we have made to date and share with you the vision we aim to achieve at the Simplex Group. I hope that, in reading this report, you will gain some sense of what drives us as a company.Simplex Group’s originsThe Simplex Group, with Simplex as a tech firm working in tandem with Xspear as a consulting firm, guides our clients throughout their entire digital transformation (DX) journey. Our core competencies are technology, consulting, and finance, these are skills that I first developed while working as a company employee. I joined Arthur Andersen (now Accenture) after graduating from college. Later, I moved to a Silicon Valley startup that developed trading tools, which sparked my interest in finance. I then moved on to Solomon Brothers Asia Securities (now Citigroup Securities), then regarded as the world's most powerful investment bank. There is no doubt that my experiences at these three companies are at the core of the Simplex Group.One thing I felt strongly while working for these international companies was the high potential of a team of Japanese professionals. Through my experiences at the U.S. headquarters of these firms, I became confident that a team based out of Japan could compete on an equal footing with finance and IT professionals working in New York, London, and even Silicon Valley. However, in the eyes of the world, Japan as a country was often looked down as being second-rate in both finance and IT. The key factor for this ultimately comes down to corporate management and the industry structure peculiar to Japan. I was determined to build the best possible team capable of making an impact on the Japanese financial and IT industries by launching a company of my own, and ultimately, taking innovation from Japan to the rest of the world. It was with these resolutions and aspirations that I founded Simplex in September 1997.First founding phase and IPOAfter our founding in 1997, Simplex achieved consistent growth with a business model that defied the conventional wisdom of the industry and an “edgy” strategy that differed from other IT companies. One of the reasons for this steady growth was the lack of Japanese companies capable of proposing and building trading systems based on an understanding of financial engineering. Simplex successfully took the lead in this niche field and acquired most of the major financial institutions as clients without the need for organizing a sales force. Instead, project managers worked closely with the end users and provided solutions that truly impressed them. As a result of these business activities, Simplex achieved strong growth, listing on the JASDAQ market in February 2002, then moved to the First Section of the Tokyo Stock Exchange in September 2005.4Hideki KanekoRepresentative Director, President and CEOSimplex Group's history of challengesCEO MessageCreating value added and delivering innovation withthe best and brightest team
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