Micware Co (MWC) Registration filing summary

Company overview and business model

• Provides software development and IT solutions for automotive and mobility sectors, focusing on in-vehicle infotainment (IVI) systems, navigation software, and location-based smartphone applications.

• Operates through three segments: Software Defined Vehicles (SDV), Location-Based Services (LBS), and Other (overseas SDV and B2C apps).

• Revenue streams include software development services, licensing, and other software-related services such as after-sales support and B2C apps.

• Maintains strong relationships with major Japanese OEMs and has subsidiaries in the U.S., Thailand, and Germany.

• Proprietary IVI platform (micAuto-PF) and scalable development environment (CARE-SUITE) support modular, efficient software delivery.

Financial performance and metrics

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

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

• Revenue breakdown (FY 2025): 81.4% software development, 15.0% licensing, 3.6% other services.

• Gross profit margin improved to 35.0% in FY 2025 from 30.4% in FY 2024.

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

Use of proceeds and capital allocation

• Estimated net proceeds of ~$13.4M (or $15.7M if over-allotment exercised) at $8.00/ADS.

• 44% allocated 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.