Micware Co., Ltd. (MWC) September 2026 Conference Transcript

Welcome back. We have an update from McWare Company Limited. It trades on the NASDAQ under the symbol NWC and is a Japan-based provider of software development services and innovative IT solutions, mainly focused on the automotive and mobility sectors, and is primarily engaged in development and sale of in-vehicle infotainment systems covering multimedia, navigation, human-machine interface, telematics, and driver assistance. as well as navigation software and local information-based smartphone applications. We're so happy to have Founder and CEO Kenji Narushima and President of Micware North America, Takashi Harashima. Welcome, gentlemen.

Okay. Good afternoon. Thank you for joining us today. My name is Kenji Narushima. I am the founder and CEO of Mikuya. Mr. Takashi Harishima, president of our U.S. subsidiary, is also here with me. Today we will give you a brief update on Mikuya and our growth strategy. This presentation contains forward-looking statements. Our actual results may be different. Some of the numbers you will see a management target, not annual forecast. Please read our disclaimer and the risk factors in our annual report. And one note on our calendar, our fiscal year ends at the end of February. Before I discuss the latest updates, let me briefly review our key investment highlight. Mikuya has more than 20 years of experience in automotive software. We have built long-term relationships with leading Japanese OEMs, including Honda and Toyota. Our core business is profitable and we are using that foundation to expand into new areas of growth. Our strategy is focused on two platforms, Miko platform and Dynplanet platform together. They represent the next stage of micro-earth growth. We work closely with OEMs to build software for production cars. This includes custom IBI, navigation, connected, and mobility software. We can reuse our software and know-how in future projects. After launch, we also provide maintenance and software licenses. So one project can lead to more business over time. This is how we build long-term value from our engineering work. As we introduced in August, our growth strategy is focused on two main platforms. We got platform built on our automotive software and DivaPlanet platform, our 3D spatial platform. Since then, we have taken the next steps to support their growth. In September, we reorganized our business to give each platform a clearer focus. Our subsidiary, MiCode Navigation, was renamed MiCode Spatia to lead our special information business. Let me start with MiCode platform. Today, the business is mainly OEM consulting. The next step is SDV services. We plan to expand into SDK and API usage fields, vehicle data licenses, and connected services. Over the longer term, we plan to expand into mobility, physical AI. Our key next milestone is a platform contract with an automaker. Now, let me turn to Dynoplanet. Dynoplanet uses 3D technology and AI to connect real and virtual spaces. Our work covers three areas, indoor spaces, real cities, and virtual 3D worlds. PlaySpot is already generating initial revenue and Liner Planet Studio is planned to launch in January 2027. We are still at an early stage and large B2B, B2G and OEM projects are still ahead of us. So our next focus is scaling the business. Now, our long-term targets. One important note first, those are management targets, not earnings focused with no guarantee. They are operating company targets consolidated, so please don't add them together. For MECOT platform, 19 billion yen this fiscal year and 55 billion by February 2033. For DINAPRANET platform, 3.5 billion this fiscal year and 33 billion by February 2033. The interim numbers are on the slide. This slide shows the milestones behind our long-term targets. For MidCode platform, we plan to target seven OEMs this fiscal year, 15 by 2030, and around 30 by 2033. For DadaPlanet, we plan to grow users, creators, applications, and B2B projects over time. Our target is 1 million registered users by 2030 and 10 million by 2033. Let me close with the main points. We have a strong core business today. We are profitable to generate cash and work with bidding OEMs. At the same time, we are investing in two close platforms, Bitcoin platform and Dynapranet platform. These platforms give us new opportunities in mobility and 3D spatial services. We have a problem business today and new growth opportunities ahead. We believe this is an important stage for Mikya. Thank you. We would now like to open the floor for any questions.

Thank you so much. Thank you. Yes, let's talk about how does McWear expect its business model to evolve under this new growth strategy?

Thank you. So I'm Takashi Harishima, President of McWear North America. So to make sure our answers are as clear as possible for you today, I'll take over from here. so we aim to evolve from a business centered mainly on individual development project into a platform-based business model under the new strategy we plan to turn our technologies software data and development expertise into reusable assets within mic auto and dynapranet These assets can then be used more broadly and monetized through services, licensing, and data provision. This approach is intended to allow us to create value from our existing technology assets on a more continuous basis, rather than relying only on project-by-project development work.

And how do McAuto and DynaPlanet complement each other strategically? and where do you see the strongest potential synergies between the two platforms?

So Mikoto and Dynapranet focus on different areas, but they are designed to work together. Mikoto focuses on mobility in the physical world, while Dynapranet focuses on surrounding cities, buildings, and digital spaces. One key synergy is the use of data between the two platforms for example sensor data from mobility can be used to create and update spatial information in dynapranet at the same time analysis and simulations in digital spaces can be applied to real world services so though this connection we aim to create value across across mobility, cities, facilities, and logistics. Thank you.

Perfect. Well, thank you, Mr. Hiroshima and Mr. Naroshima. We appreciate your update, and we certainly would like to see you again very soon.

Thank you very much. Thank you very much.

Thank you. Thank you, everyone. We'll be right back.