November 10, 2022
Report of Earning Results (Consolidated) | |||||
for the Third Quarter of the Fiscal Year | |||||
Ending December 31, 2022 | |||||
Company : | Trend Micro Incorporated | Tokyo Stock Exchange, Prime Market | |||
Code : | 4704 | Location : | Tokyo | ||
URL : | http://www.trendmicro.com | ||||
Representative: | Title | Representative Director | |||
Name | Eva Chen | ||||
Contact: | Title | Representative Director | |||
Name | Mahendra Negi | ||||
TEL | +81-3-5334-3600 |
Expected date of the submission of quarterly security reports ("Shihanki Hokokusho") : November 11, 2022
1. Financial Highlights for the Nine Months Ended September 30, 2022
- Consolidated Results of Operations
Net Sales | Operating Income | Ordinary Income | Net Income Attributable | |||||||||||||
to Owners of the Parent | ||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||
Nine Months Ended | 162,100 | 16.5 | 25,870 | (25.3) | 30,408 | (14.2) | 28,492 | 11.0 | ||||||||
September 30, 2022 | ||||||||||||||||
Nine Months Ended | 139,180 | 9.6 | 34,622 | 25.7 | 35,423 | 28.8 | 25,670 | 35.2 | ||||||||
September 30, 2021 | ||||||||||||||||
(Note) Comprehensive Income: | 55,540million yen 65.5 % as of September 30, 2022 | |||||||||||||||
(33,552million yen 114.4% as of September 30, 2021) | ||||||||||||||||
Net Income per share | Net Income per share | |||||||||||||||
(basic) | (diluted) | |||||||||||||||
Yen | Yen | |||||||||||||||
Nine Months Ended | 203.89 | 203.54 | ||||||||||||||
September 30, 2022 | ||||||||||||||||
Nine Months Ended | 184.22 | 184.09 | ||||||||||||||
September 30, 2021 | ||||||||||||||||
(2) Consolidated Financial Position | ||||||||||||||||
Total Assets | Net Assets | Equity Ratio | ||||||||||||||
As of | Million yen | Million yen | % | |||||||||||||
September 30, 2022 | 470,322 | 240,662 | 50.7 | |||||||||||||
December 31, 2021 | 420,457 | 221,434 | 52.1 | |||||||||||||
(Note) Net Assets after deduction of Share acquisition rights and Non-controlling interest
: 238,601million yen as of September 30, 2022 (219,084million yen as of December 31, 2021)
2. Dividend of Surplus
Cash dividends per share | ||||||||
As of | The first | The second | The third | Annual end | Total | |||
quarter end | quarter end | quarter end | ||||||
Yen | Yen | Yen | Yen | Yen | ||||
December 31, 2021 | - | 0.0 | - | 195.0 | 195.0 | |||
December 31, 2022 | - | 0.0 | - | |||||
Projection for FY 2022 | - | - | ||||||
(Note) | Revision of the projection of dividend for the first quarter of FY 2022 | : | No | |||||
(Note) | The dividend projection for FY2022 annual end has not been determined yet. |
3. Forecasts of consolidated financial results for FY 2022
(January 1, 2022 through December 31, 2022)
(Note) For the forecast of FY 2022, please refer to next page.
4. Others
(1) Change in the basis of consolidation and application of equity method | : | No | |
(2) Application of simplified or specified accounting procedures | : | Yes | |
(3) Changes in accounting principles, accounting estimates and restatement | |||
① Changes under the revision of Accounting Standards | : | Yes | |
②Changes in Accounting Principles other than ① | : | No | |
③Changes in Accounting Estimates | : | No | |
④Restatements | : | No |
Forecasts of consolidated financial results for FY 2022
Net Income | ||||||||||
Net Sales | Operating Income | Ordinary Income | Attributable to | Net Income | ||||||
Owners of the Parent | per share (basic) | |||||||||
FY2022 | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
(January 1, 2022 | ||||||||||
through December | 225,900 | 18.7 | 37,000 | (15.2) | 37,100 | (16.6) | 31,900 | (16.9) | 228.39 | |
31, 2022) | ||||||||||
Appendix contents:
1. Qualitative Information and Financial Statements ------------------------------------------------- | 2 | ||
(1) | Qualitative Information on the Consolidated Business Results --------------------------------- | 2 | |
(2) | Consolidated Financial Positions ------------------------------------------------------------------- | 3 | |
(3) | Consolidated Earnings Forecast -------------------------------------------------------------------- | 3 | |
2. | Others ---------------------------------------------------------------------------------------------------- | 5 | |
(1) | Movement of Significant Subsidiaries ------------------------------------------------------------- | 5 | |
(2) Application of Simplified or Special Accounting Procedures ---------------------------------- | 5 | ||
3. | Consolidated Financial Statements ------------------------------------------------------------------ | 6 | |
(1) | Consolidated Balance Sheets ------------------------------------------------------------------------ | 6 | |
(2) | Consolidated Statements of Income ---------------------------------------------------------------- | 8 | |
Consolidated Statements of Comprehensive Income --------------------------------------------- | 9 | ||
(3) | Consolidated Statements of Cash Flows ----------------------------------------------------------- | 10 | |
(4) | Footnotes on Consolidated Financial Statements ------------------------------------------------- | 11 | |
(Footnote on Going Concern) ------------------------------------------------------------------------ | 11 | ||
(Notes on Significant Changes in Shareholders' Equity) ----------------------------------------- | 11 | ||
(Changes in Accounting Policies) ------------------------------------------------------------------- | 11 | ||
(Additional information) ------------------------------------------------------------------------------ | 12 | ||
(Segment Information) -------------------------------------------------------------------------------- | 13 | ||
(Business Combinations, etc.) ------------------------------------------------------------------------ | 15 |
1
1 Qualitative Information and Financial Statements
(1) Qualitative Information on the Consolidated Business Results
(Unit: million yen)
Net Sales | |||
Nine Months Ending | Nine Months Ending | ||
Third Quarter | Third Quarter | Rate of Change | |
of | of | ||
FY2022 | FY2021 | ||
Japan Reg. | 60,955 | 56,936 | 7.1% |
Americas Reg. | 37,849 | 31,244 | 21.1% |
Europe Reg. | 29,496 | 25,173 | 17.2% |
Asia and Pacific Reg. | 33,798 | 25,825 | 30.9% |
Total | 162,100 | 139,180 | 16.5% |
During this term of fiscal year 2022, from January 1 to September 30, the world economy expects to pick up moderately due to the gradual easing of COVID-19 from the severe situation. On the other hand, there are risks mainly associated with the global policy rate tightening, exchange rate fluctuations, worldwide inflation, and steep rise in fuel import prices due to prolonging the Russian- Ukrainian crisis, etc. The worldwide economic outlook has been a concern.
The worldwide Information Technology industry has growth due to accelerated demands of remote working, education, DX (digital transformation) under the global affected by the Covid-19 pandemic. Refer to the report by 3rd party, it forecasts worldwide IT spending to grow 5.1% into $4.5 trillion in 2022. According to accommodating increasingly complex hybrid work for employees, then enterprise software is expected to have growth in 11.0% mainly due to increasing in cloud usage and SaaS migration.
In the cyber security industry, continuously multitude of cyber terrorism that targets specific national institutions, etc., a spate of identity theft in business client information, and targeted attacks including crypto assets drain in specific companies, organizations have been still coming across occasionally. In addition, the global epidemic of Covid-19 infection was used by phishing scams, the malware files which abuse remote meeting system have infested. Especially in ransomware, threat in targeted attacks which implemented the 'double extortion' technique by reveal stolen and sensitive information stood out. In Japan, there was a stoppage incident attracted people's attention by ransomware attacking supply chain vulnerabilities of the large enterprise for its stoppage all factory operations. Against this background, the conventional security measure, with defense of each single terminal and device, and the network segmented into smaller zones, has been changing to no longer desired. The demand is expanding for the solutions including visibility and deep analytics on the premise of intrusion risks. Going through the trend of such threat changes, it has been required showing more rigorous approach to information management to regardless business or individual into new daily life.
Under such environment, our group business conditions are as follows:
With regards to sales in Japan region, consumer business has led this region sales with going well continuously under the sustained good sales in mobile channel shop, etc. In Enterprise business, despite endpoint security performed not well, cloud security and service business are going well. As a result, net sales for this period in Japan region amounted to 60,955 million yen (7.1% increase from the same period in the previous year) increase to.
For Americas region, which integrates the former North American region and Latin American region, despite intensifying endpoint security market competition, SaaS related business has been still kept well and also cloud security besides on demands for Trend Micro Vision One ("Vision One" which is a security operation at the center of the Trend Micro cybersecurity platform) performed well in enterprise business sales. In addition, there was a weak yen impact, net sales in this region were 37,849 million yen (21.1% increases from the same period in previous year) increase in double-digit growth rate.
In Europe region sales, associated with good demands of Vision One which showed growth, mainly cloud security, network security and others were largely growing in entire enterprise business. As a results, net sales in this region were 29,496 million yen (17.2%
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Trend Micro Inc. published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 08:26:00 UTC.