Slide 1: Trend Micro FY2025 Q2 Results
Trend Micro FY2025 Q2 Results Mahendra Negi CFO, Representative Director August 7, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain Statements that we make in this presentation are forward-looking statements. These forward-looking statements are based upon management’s current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and
Slide 3: FY2025.Q2 Financial Highlight
FY2025.Q2 Financial Highlight (Second quarter ended Jun 30, 2025)
Slide 4: Q2 Consolidated Results
Q2 Consolidated Results (unaudited) (in million Yen) Three months YoY ended Jun 30, 2Q2024 2Q2025 growth Net sales 68,603 66,407 - 3% Total Operating expenses 56,294 52,941 - 6% Operating income (Margin) 12,308 (18%) 13,465 (20%) + 9% Ordinary income 12,707 9,066 - 29% Net income 7,141 5,478 - 23% a
Slide 5: Net sales & Pre-GAAP growth trend
Net sales & Pre-GAAP growth trend (unaudited) (on a constant currency basis) Net Sales Pre-GAAP 4% 1% Total Enterprise -1% Consumer -2% -6% -10% (Non-GAAP) 5
Slide 6: Progress (6 months)
Progress （6 months） (in million Yen) Revenue Operating Income 300,000 (Forecast) 288,600 (Forecast) 60,300 60,000 250,000 272,638 50,000 48,105 200,000 202,658 (Progress of 40,000 Forecast: 46%) (Progress of 39,237 Forecast: 47%) 150,000 133,909 (Progress of 30,000 28,472 134,534 FY2024Act: 49%) 24,
Slide 7: Pre-GAAP vs Total Costs
(in million Yen) Pre-GAAPⅴs Total Costs (unaudited) (Non-GAAP) (Non-GAAP) Pre-GAAP Total Costs Pre-GAAP Margin 110,000 45% 100,000 102,307 40% 90,000 40% 80,000 35% 70,000 69,296 30% 60,000 65,456 65,108 65,101 60,499 50,000 56,294 61,111 25% 40,000 53,322 52,495 52,941 53,803 30,000 20% 19% 18% 19%
Slide 8: Enterprise ARR
(USD) Enterprise ARR (Non-GAAP) (unaudited) *ARR at constant currency: (1USD= 153.77yen as the company internal budget exchange rate for FY2025). Non-GAAP and reference for internal management. Therefore, they may be subject to so changes hereafter. 8
Slide 9: Cash flows
Cash flows (unaudited) (in million Yen) 2Q2024 2Q2025 YoY growth Cash flows from operating activities 11,410 16,267 + 43% Cash flows from investing activities 2,679 6,708 + 150% Cash flows from financing activities - 29,227 2,356 － Effect of exchange rate changes 5,549 1,101 - 80% on cash and cash e
Slide 10: Headcount
Headcount Mar - 2025 Jun - 2025 6,819 6,813 Admin, Business Admin, Business Process, Process, 711 719 Technical Sales, Marketing, Technical Sales, Marketing, Support, 2,349 Support, 2,392 1,473 1,414 Research, Research, Development, Development, 2,286 -6 2,288 (- 0%) Japan, Japan, 789 780 Europe, Eu
Slide 11: Cost (Non-GAAP)
(in million Yen) Cost (Non-GAAP) (unaudited) Salary & Benefit Office Overhead ・Of 3.3 bn JPY YoY decrease, estimated impact of 65,000 Outside Service Cloud yen appreciation, about 2.2 bn JPY. Administration Selling & Marketing 60,000 Stock Options / Acquisiton Related Costs Goods/Software Amortizati
Slide 12: Q2 Highlights
Q2 Highlights • Healthy growth of Japan Enterprise business • Operating margins continue to improve 12
Slide 13: FY2025 Guidance
FY2025 Guidance
Slide 14: Revision of the forecast announced on Aug. 7, 2025
Revision of the forecast announced on Aug. 7, 2025 ・ The uncertainty in the macro environment has increased resulting in longer deal cycles / postponement of projects. ・ Japanese Yen has strengthened against the USD. (Expected exchange rates for the 2nd half: 1 USD=154 Yen to 147 Yen, 1 EUR=161 Yen
Slide 15: Projection for FY2025 Annual (Revised on Aug. 7th)
Projection for FY2025 Annual (Revised on Aug. 7th) For FY2025 Expected (in million Yen) Jan - Dec, 2025 YoY growth Net Sales 274,000 + 0% (before: 288,600, -14,600) (before: +6%) Operating Income “Margin” 53,600 “20%” + 11% (before: 60,300 “21%”, -6,700) (before: +25%) Ordinary Income 45,000 - 15% (
Slide 16: Appendix for FY2025.Q2
Appendix for FY2025.Q2
Slide 17: Q2 USD based Results (Non-GAAP)
Q2 USD based Results (Non-GAAP) (unaudited) Three months (in thousand USD) ended Jun 30, 2Q2024 2Q2025 YoY change Net sales 440,017 459,215 + 4% Cost of sales 105,780 107,324 + 1% Operating expenses 255,289 258,771 + 1% Operating income 78,947 93,118 + 18% Ordinary income 81,507 62,694 - 23% Net Inc
Slide 18: Net Sales Growth by Region
(in million Yen) Net Sales Growth by Region (unaudited) + 2% 2024Q2 25,000 21,822 2025Q2 21,295 20,000 - 3% - 14% - 1% 17,526 16,961 14,899 14,882 14,771 15,000 12,852 10,000 5,000 0 Japan Americas Europe APAC, MEA
Slide 19: Net Sales Growth by Region (constant currency)
Net Sales Growth by Region (unaudited) (in million Yen) If currency exchange rates used for 2Q2024 were used for 2Q2025: 2024Q2 25,000 + 2% * ( ) : difference from GAAP base 2025Q2 21,295 21,822 (0) + 4% (+ 1,289) 20,000 - 5% + 2% (+ 1,280) 18,250 (+ 368) 17,526 14,899 14,133 14,882 15,139 15,000 10
Slide 20: Decomposition of Revenue (vs. last year)
Decomposition of Revenue (vs. last year） (in million Yen) (unaudited) Europe Japan Americas APAC, MEA Exchange impact 526 257 766 724 2,938 2024Ｑ2 2025Ｑ2 Net Net sales sales 68,603 66,407 (Non-GAAP)
Slide 21: Constant currency Revenue growth
Constant currency Revenue growth (YoY) (unaudited) (Non-GAAP) • Each growth rate shown above is based on applying to each quarter the same currency rate as the previous year for the same period
Slide 22: Sales by Segment
(in million Yen) Sales by Segment (unaudited) 25,000 Growth rate (YoY) Consumer - 11% 20,000 Enterprise - 1% 10,097 - 1% 910 - 41% 15,000 124 - 37% 1,298 - 36% 10,000 16,050 + 0% 14,647 - 0% 5,000 11,724 + 5% 11,553 - 10% 0 Japan Americas Europe APAC, MEA “Notice” As Sales by Segment numbers are jus
Slide 23: % share by region
% share by region 2Q2024 2Q2025 68,603 million Yen 66,407 million Yen APAC,MEA APAC,MEA Japan 26% Japan 26% 31% 33% Europe Americas Europe 22% Americas 22% 22% 19%
Slide 24: Pre-GAAP (Revenue before adjusting Deferred revenue)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) (in million Yen) (unaudited) 2024Q2 25,000 + 1% 2025Q2 20,284 20,563 - 3% 20,000 18,619 17,996 16,032 - 22% - 2% 15,000 14,359 14,031 12,510 10,000 5,000 0 Japan Americas Europe APAC, MEA “Notice” Pre-GAAP means Revenue before adju
Slide 25: Pre-GAAP (Revenue before adjusting Deferred revenue)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) If currency exchange rates used for 2Q2024 were used for 2Q2025: (in million Yen) (unaudited) 2024Q2 25,000 + 1% 2025Q2 + 4% 20,284 20,563 20,000 19,404 18,619 - 14% + 0% 16,032 15,000 13,771 14,359 14,364 10,000 5,000 0 Japan Amer
Slide 26: Pre-GAAP recent 4-quarter moving average trend
“For reference” Pre-GAAP recent 4-quarter moving average trend (in million Yen) ※ Based on the Yen rate applied at the time of each quarter financial results. (Non-GAAP) 110,000 100,000 Total Pre-GAAP Trailing 4-quarter moving average 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
Slide 27: Deferred Revenue
(in million Yen) Deferred Revenue (unaudited) 230,000 221,386 217,014 218,013 214,473 211,532 210,643 210,000 203,061 202,356 200,337 195,225 190,000 170,000 150,000 130,000 0 110,000 0 Mar-'23 Jun-'23 Sep-'23 Dec-'23 Mar-'24 Jun-'24 Sep-'24 Dec-'24 Mar-'25 Jun-'25
Slide 28: Deferred Revenue by Region
Deferred Revenue by Region (in million Yen) (unaudited) 2025Q1 + 4% 2025Q2 80,000 - 2% 71,983 70,000 69,436 65,188 63,764 60,000 + 8% 50,188 50,000 46,469 - 3% 40,000 29,548 28,536 30,000 20,000 10,000 0 Japan Americas Europe APAC, MEA (Non-GAAP)
Slide 29: Deferred Revenue by Region (constant currency)
Deferred Revenue by Region (unaudited) If currency exchange rates used as of the end of 1Q2025 were used as of the end of 2Q2025: (in million Yen) 2025Q1 + 3% - 2% (- 806) 80,000 * ( ) : difference from GAAP base 2025Q2 (0) 69,436 71,177 70,000 + 3% 65,188 63,764 (- 2,251) 60,000 - 2% 50,000 (+ 347)
Slide 30: Non-operating & Extra-ordinary Items
Non-operating & Extra-ordinary Items (in million Yen) (unaudited) Other incomes Exchange loss Interest income 58 774 5,171 Equity in losses of affiliated companies Operating Income Other expenses 13,465 51 10 Ordinary Income Income before income taxes 9,066 9,066
Slide 31: Balance Sheet
Balance Sheet (unaudited) (in million Yen) Mar-2025 change Jun-2025 Assets Cash & cash equivalents 165,974 + 29,495 195,469 Account receivable - 2,655 50,849 (less allowance for doubtful accounts) 53,504 Marketable securities & Securities investments 34,457 - 14,027 20,430 Software 18,384 - 660 17,7
Slide 32: FY2025 6months Financial Highlight
FY2025 6months Financial Highlight (January ~ June, 2025)
Slide 33: Consolidated Results (6 months)
Consolidated Results (6 months) (in million Yen) (Progress vs. last (Progress vs. 6 months year’s annual YoY current year’s ended Jun 30, 2024（1-2Q） result) 2025（1-2Q） growth annual forecast) Net sales 134,534 (49%) 133,909 + 0% (46%) Total Operating expenses 110,098 105,436 - 4% Operating income 24
Slide 34: Net Sales Growth by Region
Net Sales Growth by Region (unaudited) (in million Yen) + 3% 2024Q1-Q2 50,000 43,894 2025Q1-Q2 45,000 42,657 40,000 - 0% - 8% + 2% 35,000 34,028 33,954 29,288 30,000 27,026 28,561 29,032 25,000 20,000 15,000 10,000 5,000 0 Japan Americas Europe APAC, MEA 34
Slide 35: Net Sales Growth by Region (constant currency)
Net Sales Growth by Region (in million Yen) If currency exchange rates used for 2024（Q1-Q2） were used for 2025（Q1-Q2）: (unaudited) 2024Q1-Q2 50,000 + 3% 2025Q1-Q2 45,000 42,657 43,894 (0) * ( ) : difference from GAAP base + 4% 40,000 - 3% + 3% (+ 1,296) (+ 1,319) (+ 433) 34,028 35,250 35,000 29,288
Slide 36: Pre-GAAP (Revenue before adjusting Deferred revenue)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) (in million Yen) (unaudited) - 1% 2024Q1-Q2 50,000 43,722 43,157 2025Q1-Q2 45,000 - 4% 40,000 35,661 34,361 35,000 - 23% - 2% 29,873 30,000 25,494 24,980 25,000 23,102 20,000 15,000 10,000 5,000 0 Japan Americas Europe APAC, MEA “N
Slide 37: Pre-GAAP (Revenue before adjusting Deferred revenue)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) (unaudited) If currency exchange rates used for 2024(Q1-Q2) were used for 2025(Q1-Q2): 50,000 - 1% 2024Q1-Q2 45,000 43,722 43,157 2025Q1-Q2 + 1% 40,000 35,661 35,999 35,000 - 18% 29,873 - 0% 30,000 24,531 25,494 25,416 25,000 20,00
Slide 38: FY2025 Cost (6 months) YoY Growth
(in million Yen) FY2025 Cost (6 months) YoY Growth (unaudited) 120,000 Salary & Benefit - 4% Goods / Software 110,000 6,208 Amortization & Capitalization 6,967 Office Overhead - 9% 100,000 3,739 Stock options / 10,090 Acquisition Related Costs 5,061 90,000 Outside Service - 12% 7,077 Selling & Marke
Slide 39: Thank You
Thank You ©2025 Trend Micro Inc.
Slide 40: Appendix: Quarterly Chart (1)
Appendix (unaudited) Quarterly Chart (1) (in million Yen) FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 N e t s ale s 65,931 68,603 68,124 69,979 67,501 66,407 Co s t o f s ale s 16,015 16,492 15,967 16,505 16,417 15,520 O pe r at in g e x pe n s e s 37,788 39,802 37,355 44,606 36,077 37,420 O pe r at in g
Slide 41: Appendix: Quarterly Chart (2)
Appendix (unaudited) Quarterly Chart (2) (in million Yen) FY2024 FY2025 （ S ale s by r e g io n ） Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 J apan 21,361 21,295 21,373 21,725 22,072 21,822 A m e r ic as 14,388 14,899 14,340 15,199 14,174 12,852 Eu r o pe 13,679 14,882 14,949 15,035 14,261 14,771 A P A C, Middle Eas t