Micware Co., Ltd.

Good day, ladies and gentlemen. Thank you for taking the time out of your busy schedules to join us today for MIGWARE Company Limited's earnings call.

私はIR担当責任者の川島と申します。 ただいまより当社の2026年2月期の決算説明会を開始いたします。 I'm Michael Kawashima, MIGWARE Co., Ltd.'s Head of Investor Relations.

We will now begin our earnings call for the fiscal year ended February 28, 2026.

Today, after the presentation, we will proceed in the form of answering the questions that have been asked in advance. During the delivery, all participants will be able to participate in the viewer mode. In addition, this explanation meeting is recorded, and we are planning to deliver it on demand on the IR site at that time. Please let us know in advance.

After the presentation, we will address questions that were submitted in advance. Please note that all parties will be in a listen-only mode during the call. A video replay of this call will be made available on our IR website at a later date.

CEO, Narushima Kenji CFO, Segawa Takuma Let me begin by introducing today's speakers. Joining us are our Chairman and Chief Executive Officer, Mr. Kenji Norishima, and our Chief Financial Officer, Mr. Takumasagawa.

We would also like to acknowledge the presence of our Chief Technology Officer, Mr. Masahide Shigeno, our Chief Operating Officer, Mr. Hideaki Tokuhara, and our Chief Growth Officer, Mr. Teriaki Koshiba.

In today's presentation, I will explain the President's name, and then I will explain the CFO's growth strategy.

Today's presentation will begin with an overview of our growth strategy from our CAO, Mr. Narushima. Following that, our CFO, Mr. Sagawa, will provide an overview of our financial results. After the presentation, we will conduct a question-and-answer session to address some key topics and areas of interest regarding our results.

As long as there is no specific research, Co., Ltd.

Unless otherwise noted, please be advised that all figures and growth rates referenced in this presentation are based on our U.S. dollar results, with the U.S. dollar and JPY or Japanese yen exchange rates of $1 is to 150.64 yen for fiscal year 2025, and $1 is to 156.05 yen for fiscal year 2026.

Before we continue, I would just like to quickly touch on the forward-looking statements. 本説明会で議論される情報の一部には 米国改正1934年証券取引法第21以上の定義に基づき また1995年米国指摘証券訴訟改革法で定義される I believe that the forecast for the future is logical, Before we continue, I would just like to quickly remind

Due to some information discussed in this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations except as may be required by law. Although the company believes that the expectations expressed in this forward-looking statement are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the company's registration statement and its other filings with the SEC. And during today's presentation, Mr. Narushima and Mr. Segawa will deliver the remarks in Japanese, and a member of the IR team will provide the corresponding English translations. With that, I will now turn the call over to Mr. Kenji Narushima, the company's chairman and chief executive officer. Mr. Narushima, please go ahead.

Hi, everyone. I'm Narushima, the CEO of NICWARE. Thank you for joining us today at NICWARE's February 20, 2026 Earnings Call. This is Narushima, and thank you for taking the time to join NICWARE's Fiscal Year 2026 Earnings Call today.

This is Narushima, and thank you for taking the time to join NICWARE's This is our first earnings call following our initial public offering and math listing on May 14, 2026. Please note that these financial results are our pre-IPO financial results.

First of all, I would like to express my sincere gratitude to all of you who have supported me so far. I would like to begin by expressing our sincere appreciation to everyone who has supported NICWARE along the way. We are truly honored to have reached this milestone which represents both a major achievement and the beginning of a new chapter for the company. As we embark on this new chapter, I would like to start with an overview of our fiscal year 2026 financial performance. This is the result of a 0.1% increase in the previous year. However, the sales have continued to improve in terms of profitability of those that remained the same as the previous year. The sales and net profit have increased by 5.1% in the previous year to $516,000, and the sales and net profit ratio has expanded by 1.8% to 36.8%.

For fiscal year 2026, we recorded revenue of $140.3 million, representing a slight year-over-year increase of 0.1%. While revenue remained largely in line with the previous year, profitability continued to improve. Gross profit increased by 5.1% year-over-year to $51.6 million, and gross margin expanded by 1.8 percentage points to 36.8%.

And on the profit side, operating profit rose by 5.6% to 15.1 million US dollars, while adjusted operating profit reached 15.6 million US dollars.

Net income increased 17.0% year-over-year to US$10.3 million.

In the fiscal year 2026, we were able to improve profitability while maintaining a stable revenue base.

We believe that these results were driven by the steady performance of our core automotive software business, our continued efforts to enhance profitability, and our ongoing investments in future long-term growth areas.

Next, I would like to highlight three key takeaways from our fiscal year 2026 performance. First is our continued improvement in profitability that has supported our revenue growth.

売上総利益率は前年同期比で1.8%向上しまして36.8%となりました。 これは一時的なものではなく持続的な収益性の向上を反映したもので、 The growth margin improved by 1.8 percentage points year-over-year to 36.8%. This resulted in record high margins and sustainable profitability rather than one-off gains.

成長投資と収益拡大の両立です。 Second, we achieved both growth in investment and expansion in earnings. During the fiscal year, we actively increased investment for future growth, including a 40.0% year-over-year increase in R&D expenses. On the other hand, business profits and adjusted business profits have increased together, and positive profit growth has been achieved while continuing to invest in growth. This shows that we have a business foundation that allows us to invest in future innovations and expand our revenue.

At the same time, both operating profit and adjusted operating profit increased, allowing us to deliver steady profit growth while continuing to invest in our growth initiatives. We believe that this demonstrates how our business foundation enables us to balance investment and future innovation with sustained earnings growth.

三点目は主要OEMとの長期的な関係を生かしたソフトウェア・デファインドビークスSDV事業の成長です。

Third is our growth in our software-defined vehicle or FED business, supported by our long-standing relationships with major OEMs. We have built strong and trusted relationships over many years with major automotive manufacturers in Japan, including Honda, Toyota, Mazda, and Daihatsu. These partnerships, characterized by long development cycles, support recurring and follow-on opportunities.

Next, I would like to briefly look back on our growth journey to date and then outline our growth strategy moving forward.

Since our founding in Kobe, Japan in 2003, we have consistently focused on software development in the mobility domain, beginning our business with the development of software for car audio and navigation systems.

And by building a trust relationship between technology and customers, we have grown into one of the Tier 1 software suppliers in the IVI field, which represents Japan. We have also evolved into a system that requires about 600 employees globally.

Since then, by steadily strengthening our technological capabilities and building trusted relationships with our customers, we have grown into one of the leading Japan-based IVI Tier 1 software suppliers. Today, we have scaled into a global team with approximately 600 employees worldwide.

And now, we are entering the next stage of our growth. We have evolved from a software developer for car audio and navigation systems into a Tier 1 software supplier supporting the broader automotive ecosystem. Looking ahead, we aim to further evolve into a platform provider that supports next generation mobility by accelerating our global expansion and creating new business opportunities. Through these initiatives, we aim to create new value beyond our traditional business domains and drive mid-to-long-term growth and corporate value. Dynaplanet is an initiative that symbolizes the evolution of our platformers.

And one initiative that symbolizes our evolution into a platform provider is DynaPlanet. DynaPlanet is the platform that we have been developing under the name DFMM or Dynamic Street Map and Marketplace. As we look ahead to future business expansion, we have rebranded it to DynaPlanet to establish a name that is more suitable for global deployment.

DynaPlanet is a next-generation 3D space platform that uses AI to integrate location information and various digital contents.

Dynplanet is a next-generation 3D platform that leverages AI to integrate location data with a wide range of digital content. Its first product is Dynamic Share Map, a consumer-oriented digital platform that aggregates and organizes location-based content, including text, images, audio, video, and 3D content, with the aim of creating new value and enabling monetization.

ここで実際のダイナミックシェアマップを活用して制作した姫路城の3Dコンテンツ動画をご覧いただきたいと思います。

And at this point, please take a look at this 3D content video of Himeji Castle created using Dynamic Share Map. Co., Ltd.

Thank you. Co., Ltd.

Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. In addition, as announced yesterday, we introduced a new service called Pre-Spot, with a full product launch expected at the later date.

PressBot is a service that utilizes 3D spatial technology to recreate entire stadium environments, allowing users to preview the view from their seats in advance and to experience the route through their seats as if they're actually there.

Dynaplanet is aiming to create new services and revenue opportunities by combining digital content, location information, and AI.

And through this, Dynapilot aims to create new services and revenue opportunities by combining digital content, location data, and AI.

Including these initiatives, we currently operate through three business segments. First, Software Defined Vehicles. First, software-defined vehicles, or our SED business, where we develop and provide next-generation mobility software centered on IBI system software. Second, location-based services, or our LBS business, where we provide navigation software and location-based services. Dynoplanet, which I introduced earlier, is positioned within this segment. Third, other services, which comprise software development services provided by our overseas subsidiaries, as well as B2C mobile app services. And building on this business foundation, we will allocate resources to two key areas, SDV and LBS, to accelerate our growth moving forward. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.

In terms of our growth investments, we plan to allocate 30% to the STV domain, aimed at strengthening the competitiveness of our existing business, and 70% to the LBS domain, aimed at creating new growth opportunities.

In the SDV area, we will continue to invest in our own IVI software platform, NIC Auto Platform, while taking advantage of the strength of existing support software business. We will continue to strengthen the competitiveness in the development of next-generation support software.

In the SDB domain, we will leverage the strengths of our existing in-vehicle software business while continuing to invest and make AutoPF our proprietary IDI software platform to enhance our competitiveness and next-generation automotive software development.

And in the LBS area, we will continue to educate businesses that generate revenue. Through investing in new platform businesses such as Dynaplanet,

In the LPS domain, we will focus on developing businesses capable of generating recurring revenue. Through investments in new platform businesses, including DynaPlanet, we aim to create new growth opportunities. And I will discuss each of the strategic priorities in more detail on the following slides.

Our first strategic priority is to evolve from an IDI Tier 1 software supplier to an SDV Tier 1 software supplier. Building on the long-term partnerships we have developed with OEMs, we aim to further expand our participation in upstream development and broaden our involvement across the vehicle development process. Furthermore, we seek to accelerate talent acquisition and retention through geographic and industry expansions.

In addition, we aim to advance into advanced driver assistance systems and autonomous driving integration while continuing to enhance our business and technical development capabilities to support scalable and next-generation vehicle software solutions.

二つ目の重点戦略は3D空間プラットフォームの拡大と収益化となります。

Now, our second strategic priority is to expand and monetize our 3D spatial platform software services.

このサービスは位置情報に紐づくテキスト、画像、音声、動画などのマルチメディアコンテンツを集約整理して、新たな価値創出と利益化を目指すコンシューマ向けデジタルプラットフォームでございます。

This service is a consumer-facing digital platform that aggregates and organizes location-based multimedia content, including text, images, audio, and video, with the aim of creating new value and enabling monetization. And through this initiative, we aim to establish new revenue streams in addition to our OEM-focused business.

特に従来のプロジェクト型収益の依存を低減して、データを活用したサービスを通じて、持続的な収益を生み出すビジネスモデルへの転換を進めてまいります。 また、国内外におけるB2D及びB2G観光庁向け市場への展開を進めるとともに、

In particular, we will reduce our reliance on traditional project-based revenue and transition to a business model that generates recurring revenue through data-driven services. At the same time, we will expand into B2B and B2G markets in new and overseas markets while strengthening our data acquisition and utilization capabilities to build a solid business foundation that supports long-term growth.

これらの取り組みによって、中核であるOEM事業に加えて、より多様で安定した収益基盤の確立を目指してまいります。

Through these efforts, we aim to establish a more diversified and stable revenue base alongside our core OEM-focused business. And as a publicly listed company, we will continue to focus on steady business execution, technological development, and enhancing corporate value over the mid to long term.

Thank you for listening, and I would now like to turn the call over to our CFO, Mr. Segawa, who will walk you through our financial results in detail. Mr. Segawa, please go ahead. Good morning, everyone. This is CFO Segawa.

Good morning, everyone. This is Mikko's CFO, Segawa. Please note that the financial results are our pre-IPO financial results.

Before discussing the detailed financial results, I would like to briefly look back on the past six months and highlight several key developments that marked important milestones for our company.

First, in December 2025, we opened a new office in New York as part of our efforts to further strengthen our global expansion. This has strengthened our business foundation in the U.S. and established a structure to support our international expansion strategy. A few months later, in March 2026, we launched Dynamic Share Map. Furthermore, this May, we achieved a major milestone for our company with our listing on the NASDAQ global market.

これにより調達総額は26.2百万ドルとなりました。 Through our IPO, we raised 22.8 million U.S. dollars, and this was followed by the full exercise of the underwriter's over-allotment option, which generated an additional 3.4 million U.S. dollars, bringing total proceeds to 26.2 million U.S. dollars. また同月には、本田技研工業株式会社様より、

In the same month, we were also honored to receive Honda Motors' Excellent Appreciation Award in the Development Division.

This recognition reflects our ability to establish robust development processes in large-scale projects, which contributed to improved product quality and reduction in abnormal costs. Finally, in June 2026, we rang the NASA closing bell to celebrate NICRUSH transition into a publicly listed company together with our employees, partners, and everyone who have supported us along the way. Taken together, these milestones reflect a year of meaningful progress on multiple fronts, deepening the trust of our automotive partners, advancing our global expansion, building new growth platforms, and taking the important step of becoming a public company.

それでは、これらの事業面、経営面での進展を踏まえ、2026年2月期の業績についてご説明いたします。

まずは売上高からご覧ください。 And based on this business and corporate development, I will now walk you through our financial results for the fiscal year ended February 28, 2026, beginning with our revenue.

売上高は140.300万ドルとなり、前年度の140.200万ドルから0.1%増加しました。 ベイドル換算ではほぼ横ばいとなりましたが、 Revenue increased to US$140.3 million in fiscal year 2026, representing an increase of 0.1% from US$140.2 million in fiscal year 2025.

While revenue was essentially flat on a U.S. dollar basis, it increased by 3.7% year-over-year on a Japanese yen basis, excluding the impact of foreign exchange. This is indicative of how our underlying business performance remained solid.

By service line, software development services remained our core revenue source. The increase in revenue was primarily driven by the shift to successor vehicle development projects in the SDV domain, as well as the expansion of connected mobility services and progress in the next generation development project in the LBS domain. While some projects experience revenue declines due to completion or progression to later stages, overall revenue increased on a year-over-year basis.

Licensing revenue was supported by higher OEM-related license fees, newly launched vehicle models, and the addition of a new customer.

On the other hand, while revenue from certain older vehicle models and some connected services declined, overall licensing revenue remained solid.

Software-related services also recorded higher revenue year-over-year, driven by contributions from acquired businesses and an increase in projects for a non-OEM customer. While there was a decrease in revenue due to determination of certain technical support services, overall performance remained solid.

売上構成を見ると、ソフトウェア開発サービスが引き続き当社の主力事業であり、 2026年2月期は売上高全体の約80%を占めました。

Looking at our revenue breakdown by service line, software development services continue to be our core business, representing approximately 80% of total revenue in fiscal year 2026. This level was broadly consistent with the previous fiscal year, and the segment continues to serve as the foundation of our business. また、ライセンス収入は安定した収入源として推移しており、ソフトウェア関連サービスについても売上構成費はまだ限定的ながら成長を続けています。 Licensing revenue remained a stable source of earnings while software-related services, although still representing a relatively small portion of total revenue, continued to grow.

LBS関連ライセンス収入は安定的に推移しているものの、

While LDS-related licensing revenue remains stable, its share of total revenue declined relative to the growth of our other businesses.

And as we look ahead, we are actively investing in DynaPlanet and NikAutoPF.

Through these strategic investments, we aim not to only strengthen the competitiveness of our existing businesses, but also to establish a new business foundation capable of generating recurring revenue.

続いて売上総利益についてご説明いたします。

During our gross profit, we continue to deliver steady improvement in our profitability. Gross profit increased to US$51.6 million in fiscal year 2026, representing an increase of 5.1% from US$49.1 million in the previous fiscal year. On a Japanese yen basis, gross profit grew 8.9% year-over-year, excluding the impact of foreign exchange.

売上早期総利益率は36.8%に拡大し、 Cost margin expanded to 36.8% and increased of 1.8 percentage points from 35% in the prior fiscal year, driven by the cost of revenue increasing at a lower rate than revenue. This improvement was primarily attributable to a higher portion of value-added upstream processes, such as design and development work within projects for related parties, which resulted in a more favorable project mix and contributed to improved profitability. In February of 2026, the adjusted operating profit was $15.6 million, and it increased by 2.0% from the previous year's $15.3 million. In addition to the cost effect, the Japanese yen base increased by 5.1% in the previous year's same period.

Adjusted operating profit increased to US$15.6 million in fiscal year 2026, representing an increase of 2.0% from US$15.3 million in the previous fiscal year. On a Japanese yen basis, adjusted operating profit increased by 5.1% year-over-year, excluding the impact of foreign exchange. The increase in adjusted operating profit was driven by gross margin expansion and disciplined SGA expense control.

一方で旧DSNM現ライナプラネットを中心とした研究開発投資を積極的に進めるなど将来の成長に向けた投資も継続しています。

At the same time, we have continued to make strategic investments for future growth, including increased R&D spending, particularly in DSMM, also now known as DynaPlanet.

In this way, we were able to achieve both improved profitability and continued investment in growth.

Now, please be advised that details regarding the calculation of the adjusted operating profit and the cancellations to GAAP operating profit are provided in the appendix section of this presentation.

10.300万ドルとなり Net income attributable to our ordinary shareholders increased to $10.3 million in fiscal year 2026, representing an increase of 17.0% from $8.8 million in the previous fiscal year.

On a Japanese yen basis, net income increased by 20.4% year-over-year, excluding the impact of foreign exchange.

当基準利益の増加は、営業利益の成長を中心とした業績全体の改善によるものです。 売上総利益率及び営業利益率の改善に加え、買収関連の利益や為替差益なども結集的に貢献いたしました。

The increase was primarily driven by overall improvement in financial performance led by growth in our operating profit. In addition to improvements in gross and operating margins, other income, including gains related to acquisitions and foreign exchange, also contributed to our earnings.

We have achieved a profit growth that exceeds research and development investment and tax costs.

Although R&D investment and tax expenses increased, we were able to achieve profit growth that more than offset these factors.

続いて財政状態についてご説明いたします。 Next, I will discuss our financial position. 2026年2月末時点の現金及び現金同等物は52.900万ドルであり、前年度末の50.900万ドルから増加しました。

As of February 28, 2026, the company had cash and cash equivalents of US$52.9 million compared to US$50.9 million at the end of the prior fiscal year. This reflects our continued ability to maintain a solid financial foundation to support continued investment in growth.

Total assets were US$156.6 million as of February 28, 2026, compared with US$152.5 million at the end of the previous fiscal year. Total liabilities decreased to $107.5 million compared with $101.4 million in the prior year.

Total equity increased to US$52.7 million compared with US$44.6 million as of February 28, 2025.

Overall, we have continued to strengthen and enhance the flexibility of our balance sheet, positioning us to execute our growth strategy going forward.

Next, I will touch on our cash flows.

In the fiscal year ended February 2026, we continued to generate positive operating cash flow with net cash provided by operating activities totaling 13.3 million U.S. dollars. This was primarily driven by solid net income and stronger customer cash collections from software development services and licensing revenue. And we continue to maintain stable cash generation capabilities. Meanwhile, we also continue to invest in long-term growth with net cash used in investing activities totaling to 5.1 million U.S. dollars.

This was primarily attributable to strategic investments, capital expenditures, and acquisitions, all of which are aimed at strengthening our mid- to long-term growth foundation.

財務活動によるキャッシュフローは4.8百万ドルの支出となりました。 主な要因は借入金の返済によるものです。

On the financing side, net cash used in financing activities was US$4.8 million, primarily reflecting loan repayments during the year.

当社は営業活動による安定したキャッシュ創出力を維持しながら、成長投資を着実に実行しており、引き続き健全なキャッシュフロー基盤を有しています。

And our cash flow profile remains solid, supported by continued operating cash generation and continued execution of our growth initiatives.

Fiscal year 2026 was an important year for MIGWARE. In addition to advancing our global expansion and delivering solid financial performance, we have made steady progress in executing our growth strategies in SDV and Dynplanet.

In May, we have also completed our listing on NASDAQ, marking the first step into a new chapter of our growth.

In May, we have also completed our listing on NASDAQ, marking the first step into a new chapter of our growth.

And as we move forward, we will continue to capture the growth opportunities arising from the transformation of the automotive industry while striving to meet the expectations of our customers, partners, employees, and shareholders and to enhance our corporate value over the mid to long term.

And this concludes my presentation, and thank you so much for listening in.

Thank you very much. We will now move on to our Q&A session today.

Today's session will be conducted in the format of addressing questions that were submitted in advance.

Please note that we will not be taking any live questions during this session, and thank you so much for understanding.

では最初のご質問をご紹介いたします。 Let me begin with the first question. 2026年2月においてもソフトウェア開発サービスは引き続き当社売上の中心を占めていますが、 この事業構造をどのように中長期的な成長につなげていくのでしょうか。

In fiscal year 2026, software development services continue to account for the largest portion of your revenue. How do you plan to leverage this business structure to drive your mid- to long-term growth?

I will ask our CFO, Mr. Segawa, to respond to this question. Mr. Segawa, please go ahead. Thank you.

This is Segawa. So software development services will continue to serve as a foundation of our business.

In the fiscal year ended February 28, 2026, this segment generated revenue of US$112.3 million, accounting for approximately 80% of our total revenue.

この事業には、IVI、SDV、ナビゲーション、マルチメディア、コネクティビティ関連ソリューションなど、自動車向けソフトウェア開発が含まれています。

Now, this business includes automotive software development across a broad range of areas including IDI, SDV, navigation, multimedia, and connectivity-related solutions.

売上規模の大きさだけではなく OEMとの長期的な関係構築や 車両開発プロセスに関する深い知識の備蓄 さらには継続案件の追加開発案件の獲得機会につながるなど

Beyond its scale, this business also serves as a key source of our competitive advantage, supported by our long-standing relationships with OEMs, deep expertise in vehicle development processes, and the recurring opportunities it generates for follow-on and additional development projects.

This business also serves as a key source of our competitive advantage,

And the technological capabilities and customer base we have built through this business form a critical foundation for our evolution from an IDI Tier 1 software supplier to an SDV Tier 1 software supplier.

And the stable revenue base also supports our investments in new growth areas, including Dynoplanet and Meek Auto P.S.

By leveraging this foundation, we aim to create a positive cycle in which we can both grow our existing businesses and also generate new growth opportunities. Through this approach, we are executing a strategy that balances profitability and investments while also driving expansion across all of our revenue segments.

So, this concludes my answer to your question. Thank you.

Let's now move on to the second question.

So R&D expenses increased significantly in fiscal year 2026, largely related to Dynaplanet. Could you please provide an update on Dynaplanet's development status and commercialization timeline?

I will be taking this question.

DynaPlanet is a core initiative within our mid-to-long-term growth strategy, and we are advancing its development based on a multi-year plan. In the past few years, we have focused on basic research, concept design, development system maintenance, and core technology. In February of 2026, in addition to the high level of basic technology, we have been able to greatly advance the development at the service level. In addition, we are also advancing the acquisition of special licenses and licenses for the preservation of private assets.

Over the past several years, we have focused on foundational research, concept design, building our development structure, and developing core technologies. In the fiscal year ended February 28, 2026, we have made significant progress, not only in advancing our core technologies, but also in developing the platform at the service level. We have also made steady progress in securing intellectual property, including patent filings and licensing.

Looking ahead, we plan to begin full-scale service and platform development in the fiscal year ending February 28, 2027 planning to focus on enhancing service value and expanding globally. And from the fiscal year ending February 29, 2028 onwards, we aim to expand the scale of the business and create new revenue opportunities through further enhancement of functionality and continued market expansion. We position Dynaplanet as a key strategic initiative to expand into new growth areas, leveraging the technological capabilities that we have developed through our existing software development business. And looking ahead, we aim to diversify our revenue sources through the growth of this platform while building a business foundation that can generate recurring revenue alongside our automotive software business. Yes, that's all.

And that's my answer to your question. Thank you.

Thank you so much. So let's now move on to the next question.

Honda及トヨタとの取引関係は当社の収益基盤において重要な位置を占めています。今後の成長戦略や顧客基盤の拡大において当社との関係をどのように活用していくお考えでしょうか? Your relationships with Honda and Toyota represent an important part of your revenue base. How do you plan to leverage these partnerships in your future growth strategy and in expanding your customer base?

I will be taking this question as well. Honda and Toyota are important long-term partners for us, and also important shareholders. In February of 2026, Honda Group and Toyota Group were the main customers of our company, and we have a significant share in sales. I think that these relationships have been a sign of a relationship of trust that has been developed through software development for cars for a long time.

So, Honda and Toyota are important long-term partners for our company as well as our shareholders as well. So, in the fiscal year ended February 28, 2026, both the Honda Group and the Toyota Group continued to be our key customers, accounting for a significant portion of our revenue. And we believe that these relationships reflect the strong trust that we have built over the many years and through our automotive software development work.

The long-term customer strategy of NICUYA is to further evolve the relationship between the main OEMs, including Honda and Toyota, and to expand the customer base. In fact, we are also negotiating with various companies in the automotive industry, including Mazda, Daihatsu, and Denso.

And as part of our mid-to-long-term customer strategy, we aim to further deepen our relationships with key OEMs, including Honda and Toyota, while also expanding our customer base. In fact, we have already engaged with a broad range of companies across the automotive industries, including Mazda, Daihatsu, and Denso.

As we continue to expand our business area from IVI to SDV,

And as we expand our business scope from IDI to SDV, we believe that this long-standing customer relationships will serve as a critical foundation for capturing new business opportunities and supporting sustainable growth. So that answers your question. Thank you. All right, let's now move on to the next question.

So, MICWARE currently has subsidiaries in the U.S., Thailand, and Germany. So, how do these overseas operations support your global expansion and mid- to long-term growth?

So I will also be taking this question.

So our overseas subsidiaries serve as an important basis that supports customer engagement outside Japan and the development of new business opportunities. And while Japan remains our core market, our customer base also includes major Japanese OEMs that operate globally. By maintaining a presence in the United States, Thailand, and Germany, we are able to more effectively support our customers' international operations.

At the same time, these locations also enable us to expand access to talent and partnerships while also building a foundation for the future expansion of our overseas business. We view our global network of subsidiaries as an important foundation supporting the growth of both our FTP business and new initiatives such as Dynapilot. As part of our mid- to long-term growth strategy, we are continuing to strengthen this global footprint to support our future expansion.

Thank you.

So, before the interest of time, we're going to now take the last question.

So, how do you balance investment in organic growth initiatives with potential strategic investment opportunities, including M&A? Yes, I will answer this question from Narishima.

I will also be taking this question.

Our highest priority in capital allocation is growth investment. 一方で技術力の強化や顧客基盤の拡大、競争力向上につながる戦略的なM&Aや提携につきましては、規律ある姿勢で検討していきます。 We plan to drive business expansion through continuous investment in technology development, product and platform enhancement and talent.

At the same time, we will actively explore strategic M&A and partnerships while maintaining disciplines that can strengthen our technological capabilities, expand our customer base, and enhance our competitiveness.

今後も戦略的合成や投資効果を見極めながら、オーガニックな成長とM&Aのバランスを図り、中長期的な企業価値向上を目指してまいります。

And going forward, we will carefully assess strategic fit and return on investment while maintaining an appropriate balance between organic growth and M&A to enhance corporate value over the long term. In terms of our investment discipline, we establish KPIs for each investment and development project and conduct annual reviews based on the achievement of these KPIs.

Until profitability is achieved, decisions on whether to continue or revise investments are made based on progress against these KPIs. That's all.

That's the end of my answer. Thank you.

Thank you so much, and this concludes today's earnings call.

Thank you so much for taking the time to join us today.

If you have any questions, please feel free to contact our IR team using the contact information provided here. We will do our best to respond to your questions as promptly as possible.

Once again, we would like to express our sincere gratitude for your interest and support of NICWARE. We look forward to your continued support and thank you so much.