for Employees1,000billion yenLooking at this in another way, there is still solid DX demand in Japan. We believe that by capturing this demand, we can expect sustained growth and high profitability. However, many Japanese companies also face an important challenge when it comes to DX, which is the limitations of in-house system development.While Japanese companies are increasingly willing to utilize in-house system development, this brings high barriers for non-tech companies. One example would be the lack of IT personnel. There is a need for staff who can assess and make a judgment on how a company's business model should change with the evolution of IT, especially at the management level. However, it takes a long time to develop such personnel.There are also structural issues that get in the way of in-house system development. Especially in non-tech companies, talented staff tend to be assigned to core businesses and rarely to the systems department function. In addition, the larger the company, the larger and heavier legacy existing systems there are that cannot be easily untangled. These compounding factors make bringing the in-house system development a challenging task for many Japanese companies.Trend and challenge of DX in JapanThe DX of Japanese companies now lags that of Europe and US companies. One of the reasons for this situation is the "third generation banking online system," an interbank remittance system that was considered the most advanced in the world in the 1980s. Prior to the bubble era, the third generation banking online system was a symbol of Japan leading the world in technology. However, its convenience meant no change was required through DX, and as a result, Japan fell behind Western economies.There are three goals that we aim to achieve with Vision1000. The first is to be the one and only strategic partner for our clients. SBI SECURITIES, the leading comprehensive online securities company in Japan in terms of number of accounts and market share, has selected us to be its one and only strategic partner. We aim to be similarly chosen by leading firms in various industries. Second, for our employees, the Simplex Group will continue to be the dominant Biz x Tech innovator. Innovation in the DX field is at the forefront of the times, and the exciting appeal of this challenge is attracting many talented people. In order to continue to draw in such talent, Simplex Group will continue to aspire to be a dominant innovator in the field of Biz x Tech. The third is to be the game changer in the age of DX for society. While more and more Japanese companies are facing challenges in DX, we are of the view that in-house production is not the only answer, and we aim to be the game changer who can have an impact on society.Vision1000 sets out indicative targets of 100 billion yen in revenue, a 30% operating profit margin, and a 20% ROE by the early 2030s. If we can reach this level, we should finally be able to draw close to the top tier players in the IT industry in terms of operating profit.Simplex Group's visionIn order for us to have a certain social impact in the midst of this DX trend, we believe it is important to first aim for 100 billion yen in revenue. Based on this belief, we have formulated Vision1000, which defines the Simplex Group's vision and also serves as a long-term growth strategy for sustainable enhancement of corporate value. And as a halfway point on our journey toward Vision1000, we have also formulated our Medium-Term Business Plan (MTBP2027) covering three years from FY3/2025.RevenueOperating profit marginReturn on equityThe Simplex Group Aspires to BeIndicative targets with an assumedachievement timeframe of the early 2030sfor Clientsfor Society6Vision1000 as a long-term growth strategyThe one and only strategic partnerThe dominant Biz x Tech innovatorThe game changer in the age of DX30%20%Vision1000
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