2021 Q3 Financial Report Data

November 11, 2021

			Report of Earning Results (Consolidated)
			for the Third Quarter of the Fiscal Year
			Ending December 31, 2021
Company :		Trend Micro Incorporated	Tokyo Stock Exchange 1st Section
Code :	4704		Location :	Tokyo
URL :		http://www.trendmicro.com
Representative:	Title	Representative Director
	Name	Eva Chen
Contact:	Title	Representative Director
	Name	Mahendra Negi
	TEL	[phone]

Expected date of the submission of quarterly security reports ("Shihanki Hokokusho") : November 12, 2021

1. Financial Highlights for the Nine Months Ended September 30, 2021

1. 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	139,180		9.6		34,622	25.7			35,423	28.8	25,670	35.2
September 30, 2021
Nine Months Ended	127,029		5.0		27,535	(5.6)			27,504	(10.9)	18,981	(15.0)
September 30, 2020
(Note) Comprehensive Income:		33,552million yen	114.4 % as of September 30, 2021
(15,646million yen (13.4)% as of September 30, 2020)
			Net Income per share		Net Income per share
			(basic)							(diluted)
			Yen							Yen
Nine Months Ended		184.22							184.09
September 30, 2021
Nine Months Ended		136.37							136.07
September 30, 2020
(2) Consolidated Financial Position
			Total Assets					Net Assets				Equity Ratio
As of			Million yen					Million yen				%
September 30, 2021		389,923			205,105					52.0
December 31, 2020		376,701			189,360					49.7

(Note) Net Assets after deduction of Share acquisition rights and Non-controlling interest

: 202,794million yen as of September 30, 2021 (187,310million yen as of December 31, 2020)

(4) Number of shares issued (common shares)

① Number of shares issued (including treasury stocks):

140,736,604 shares as of September 30, 2021

140,629,204 shares as of December 31, 2020

②Number of treasury stocks :

1,129,090 shares as of September 30, 2021

1,471,155 shares as of December 31, 2020

③Average number of shares outstanding :

139,348,017 shares nine months ended September,2021

139,189,981 shares nine months ended September,2021

* Statement relating to the status of the quarterly review procedures

This quarterly report is not subject to the quarterly review procedures, which are based on the Financial Instruments and Exchange Law. The review procedures for quarterly consolidated accounts have not finished at the point of the announcement of the quarterly financial results.

* Explanation for the proper use of projection and other notes

Any forward-lookingstatement in this report including forecast results, are based on certain assumptions that were deemed rational as well as information currently available to the Company. However, various factors could cause actual results to differ materially. Please refer to (3) Qualitative Information on the Consolidated Earnings Forecast on page 3 of the attachment for conditions serving as assumptions for forecast results.

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, 2020	－	0.0	－		153.0		153.0
December 31, 2021	－	0.0	－
Projection for FY 2021					－		－
(Note)	Revision of the projection of dividend for the third quarter of FY 2021	:	No
(Note)	The dividend projection for FY2021 annual end has not been determined yet.

3. Forecasts of consolidated financial results for FY 2021

(January 1, 2021 through December 31, 2021)

(Note) For the forecast of FY 2021, 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	:	No
②Changes in Accounting Principles other than ①	:	No
③Changes in Accounting Estimates	:	No
④Restatements	:	No

Forecasts of consolidated financial results for FY 2021

								Net Income
	Net Sales		Operating Income	Ordinary Income	Attributable to	Net Income
								Owners of the Parent	per share (basic)
FY2021	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
(January 1, 2021
through December	183,400		5.4	40,900	3.6	41,200	3.4	34,100	26.7	245.05
31, 2021)

Appendix contents:

1. Qualitative Information and Financial Statements -------------------------------------------------	2
(1)	Qualitative Information on the Consolidated Business Results ---------------------------------	2
(2)	Qualitative Information on the Consolidated Financial Positions ------------------------------	3
(3)	Qualitative Information on the 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
	(Additional information) ------------------------------------------------------------------------------	11
	(Segment Information) --------------------------------------------------------------------------------	12
	(Subsequent Events) -----------------------------------------------------------------------------------	13

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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
	FY2021	FY2020
Japan	56,936	52,622	8.2%
North America Reg.	26,816	26,302	2.0%
Europe Reg.	25,173	22,157	13.6%
Asia and Pacific Reg.	25,825	22,413	15.2%
Latin America Reg.	4,428	3,532	25.4%
Total	139,180	127,029	9.6%

During this term of fiscal year 2021, from January 1 to September 30, despite the world economy shows recovery in some components, it has been still going through which economic activities are limited caused by concerns running rampant again variant of Covid-19. Under such a situation, deep recession and taking longer for worldwide economic recover have been concerned continuously.

Even if it is showing movements of picking up recently, Japanese economy, under going through the promotion of getting vaccinated, has been considered in severe situation caused by Covid-19 continuously.

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 5.5% into $4.5 trillion in 2022. According to accommodating increasingly complex hybrid work for employees, then enterprise software is expected to have growth in 11.5% mainly due to infrastructure software.

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 ransomware which recognized as new threat in targeted attacks, against IoT environment associated with industrial control system operations in smart factory, phishing scams using the global epidemic of Covid-19 infection and the malware files which abuse remote meeting system have infested. Due to worldwide Covid-19 pandemic, 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, both enterprise and consumer business were going well. Especially consumer business has led this region sales under the background of good demands in remote work and education. In Enterprise business, despite network security performed not well, endpoint security and cloud security were growing. As a result, net sales for this period in Japan region amounted to 56,936 million yen (8.2% increase from the same period in the previous year) increase to.

For North America region, the entire enterprise business sales which has been picking up due to SaaS business in significant growth turned to surplus in this term from January 1 to September 30. Network security seemed to passing time away from slowdown used to be. In addition, cloud security showed big growth. As the result, sales for this period in North America region was 26,816 million yen (2.0% increase from the same period in previous year) increased to.

In Europe region sales, whole enterprise business sales showed growth mainly due to endpoint security, additionally cloud security and network security. In addition, there was a weak yen impact, net sales in this region were 25,173 million yen (13.6% increases from the same period in previous year) increase in double-digit growth rate.

In the Asia Pacific region, enterprise business showed growth with mainly both endpoint and cloud security. Taiwan and Singapore area led this region sales performed well. In addition, there as a depreciation of yen impact. As a result, net sales for this period in

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