Micware Co (MWC) Micro-Cap Virtual Conference summary

Business overview and key investment highlights

• Leading Japanese automotive software developer with over 20 years of experience and strong ties to major OEMs, including Toyota and Honda, who are also strategic shareholders.

• Operates through three business segments: Software-Defined Vehicles (SDV), Location-Based Services (LBS), and other software services, with most revenue from custom automotive software.

• Holds over 300 patents, employs about 600 people, and maintains a global presence with subsidiaries in the U.S., Thailand, and Germany.

• DynaPlanet, an AI-driven 3D platform, is positioned to create new recurring revenue streams and expand commercial use cases.

• Long-term OEM relationships provide a competitive advantage and support repeat business as the SDV market grows.

Financial performance and position

• Revenue grew 19.9% from JPY 116.9 million in FY2024 to JPY 140.2 million in FY2025, remaining stable in FY2026.

• Gross profit increased by over 38% from JPY 35.5 million in FY2024 to JPY 51.6 million in FY2026, with gross margin reaching a record 36.8%.

• Adjusted operating profit rose from JPY 13.5 million in FY2024 to JPY 15.6 million in FY2026; net income attributable to shareholders increased from JPY 9.1 million to JPY 10.3 million.

• Cash and cash equivalents nearly doubled since FY2024, while total debt decreased from JPY 40.3 million to JPY 34.5 million by February 2026.

• R&D spending rose by 40%, yet profitability and financial strength were maintained.

Strategic direction and growth initiatives

• Transitioning from an automotive software supplier to a next-generation mobility platform provider, focusing on micAuto and DynaPlanet as dual growth pillars.

• New organizational structure and launch of Micware Spacia planned for September 2026 to support spatial intelligence business.

• 30% of capital to be allocated to SDV (micAuto), 70% to LBS (DynaPlanet) for growth and recurring revenue.

• micAuto platform aims to deepen OEM relationships, expand into ADAS and autonomous driving, and begin contributing revenue in FY2027.

• DynaPlanet targets B2B, government, and consumer markets, with monetization through commissions and licensing.