Micware Co., Ltd. American Depositary Shares 96th Emerging Growth Conference

Welcome, gentlemen. Good afternoon. Thank you for joining us today.

My name is Kenji Narushima. I am the founder and CEO of Micware. Mr. Takashi Harishima, president of our U.S. subsidiary, is also here with me. Today, we will give you a brief update on Micware and our growth strategy. This presentation contains forward-looking statements. Our actual results may be different. Some of the numbers you will see are management targets, not earnings forecasts. Please read our disclaimer and the risk factors in our annual report. 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 highlights. Micware 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, micAuto Platform and DynaPlanet Platform together. They represent the next stage of Micware's growth. We work closely with OEMs to build software for production cars. This includes custom IVI, 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, micAuto Platform built on our automotive software, and DynaPlanet 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, Micware Navigations, was renamed Micware Spacia to lead our spatial information business. Let me start with micAuto Platform. Today, the business is mainly OEM consulting. The next step is SDV services. We plan to expand into SDK and API usage fees, 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 DynaPlanet. DynaPlanet uses 3D technology and AI to connect real and virtual spaces. Our work covers three areas, indoor spaces, VR cities, and virtual 3D world. PlaceBot is already generating initial revenue, and DynaPlanet 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. Our next focus is scaling the business. Our long-term targets. One important note first. Those are management targets, not earnings forecasts with no guarantee. They are operating company targets consolidated, so please don't add them together. For micAuto Platform, JPY 19 billion this fiscal year and JPY 55 billion by February 2033. For DynaPlanet Platform, JPY 3.5 billion this fiscal year and JPY 33 billion by February 2033. The interim numbers are on the slide. This slide shows the milestones behind our long-term targets. For micAuto Platform, we plan to target seven OEMs this fiscal year, 15 by 2030, and around 30 by 2033. For DynaPlanet, 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, generate cash, and work with leading OEMs. At the same time, we are investing in two growth platforms, micAuto Platform and DynaPlanet Platform. These platforms give us new opportunities in mobility and 3D spatial services. We have a growing business today and new growth opportunities ahead. We believe this is an important stage for Micware. Thank you, very good. Now I would like to open the floor for any questions.

Thank you. I'm Takashi Harishima, President of Micware North America. To make sure our answers are as clear as possible for you today, I'll take over from here. We aim to evolve from a business centered mainly on individual development projects 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 micAuto and DynaPlanet. 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.

micAuto and DynaPlanet focus on different areas, but they are designed to work together. micAuto focuses on mobility in the physical world, while DynaPlanet 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 DynaPlanet. At the same time, analysis and simulations in digital spaces can be applied to real-world services. Through this connection, we aim to create value across mobility, cities, facilities, and logistics.

Thank you very much. Thank you very much.