Simplex Integrated Report 2024
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An essential part of our trajectory of transformation is the delisting of our shares following the MBO in 2013 in a bid to return to a growth path. Since then, we have positioned the post-MBO period as our second founding phase and we focus on breakthroughs in the Financial Frontier Domain and expansion into new business areas. In the eight years after delisting, we implemented drastic changes that have taken us to where we are today.FY3/1998Founded as Simplex Risk Management (currentlySimplex Inc.)Simplex, founded in September 1997 as Simplex Risk Management, expanded its client base and solution offerings by engaging in a system development business, with a focus on the Financial Frontier Domain. We supported financial institutions in improving profitability from a technology perspective, and steadily increased our earnings. Our shares were listed on the JASDAQ market in February 2002, and then on the 1st Section of the Tokyo Stock Exchange in September 2005. After the IPO, we continued to achieve steady earnings growth through FY3/2010 toward securing a position as Japan’s leading provider in the Financial Frontier Domain.Net sales/Revenue *1 *2(Billions of yen)8FY3/2005Listed on the 2nd Section of theTokyo Stock Exchange (TSE)FY3/2002Listed on JASDAQFY3/2006Listed on the TSE 1st SectionHowever, after FY3/2010, our earnings entered a downward trend to the extent that sustainable growth in the future could no longer be expected without drastic business restructuring. Under these circumstances, we decided to conduct a tender offer with the support of the Carlyle Group. We believed that, for us to sustainably increase our corporate value over the medium to long term, we needed to delist our shares by means of an MBO and establish a structure that would enable us to quickly and boldly implement management reforms under a consistent policy. After the completion of the tender offer, our shares were delisted from the 1st Section of the Tokyo Stock Exchange in October 2013. FY3/2014Delisted from the TSE 1st Section via an MBO(FY3/2011–FY3/2014)FY3/2022Re-listed on the TSE 1st Section(currently the TSE Prime Market)(FY3/2015–FY3/2022)While defining the period after the delisting due to the MBO as a second founding phase, we then spent the first four years on achieving a breakthrough in the Financial Frontier Domain, which had reached a plateau in its growth. This was done by thoroughly implementing a proactive consulting sales approach. During the latter four years, we developed the key technologies from the Financial Frontier Domain and took these into several new business areas that broadened our target clients outside financial institutions. In order to achieve further growth, we newly defined the Cross Frontier Domain as a business area in which technology could make a significant contribution to improving the profitability of client companies. In September 2021, we relisted on the 1st Section of the Tokyo Stock Exchange (currently the Prime Market of the Tokyo Stock Exchange).FY3/98*1 Net sales for the period from FY3/2011 to FY3/2017 exclude those of Virtualex Consulting, which was a consolidated subsidiary from August 2010 to June 2016.*2 Revenue for FY3/2017 and beyond were prepared in accordance with International Financial Reporting Standards (IFRS).FY3/99FY3/00FY3/01FY3/02FY3/03FY3/04FY3/05FY3/06FY3/07FY3/08FY3/09FY3/10FY3/11FY3/12FY3/13FY3/14FY3/15FY3/16FY3/17FY3/18FY3/19FY3/20FY3/21FY3/22FY3/23FY3/24FY3/25(Forecast)First founding phase and listing on the stock exchange (FY3/1998–FY3/2010)Earnings stagnation and MBOSecond founding phase and re-listing 468407Our Trajectory of Transformation

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