Micware Co (MWC) Registration Filing summary

Company overview and business model

• Japan-based provider of software development and IT solutions, primarily for automotive and mobility sectors, with a focus on in-vehicle infotainment (IVI) systems, navigation software, and location-based smartphone applications.

• Operates through six entities in Japan and subsidiaries in the U.S., Thailand, and Germany; reorganized as a holding company in March 2024.

• Revenue streams: software development services (custom automotive software), licensing (proprietary modules to Tier 1 suppliers), and other software-related services (maintenance, B2C apps).

• Major customers include leading Japanese OEMs; business model includes both B2B and B2C offerings.

Financial performance and metrics

• FY ended Feb 28, 2025: revenue JPY21,119.3 million (~US$140.2 million), up 20.6% YoY; net income JPY1,330.6 million (~US$8.8 million).

• Six months ended Aug 31, 2025: revenue JPY10,261.1 million (~US$69.9 million), net income JPY702.9 million (~US$4.8 million).

• Revenue breakdown (FY25): software development services 81.4%, licensing 15.0%, other services 3.6%.

• Gross profit margin improved to 35.0% in FY25 from 30.4% in FY24.

• Cash and cash equivalents as of Aug 31, 2025: JPY8,663.7 million (~US$59.0 million); long-term borrowings JPY5,177.6 million (~US$35.2 million).

Use of proceeds and capital allocation

• Estimated net proceeds of ~$25.1 million (up to $29.3 million with full over-allotment) at $8.00/ADS.

• Planned allocation: 44% to DSMM project and micAuto-PF expansion, 36% for general corporate purposes, 12% for strategic investments in SDV/LBS, 8% for marketing and advertising.

• No current commitments for strategic investments; management retains flexibility in allocation.