Trend Micro 2011 Annual Report Download

(Translation)
Business Report
(From January 1, 2011, to December 31, 2011)
1. Business Review
(1) Process and Results of Business Operations of the Group
During this term of fiscal year 2011, from January 1 to December 31, just when the world
economy had made a brisk recovery from the stagnation caused by the global financial crisis, it
confronted the disaster of Japan and the entire world, and the deterioration of the European
financial crisis. The world economy seemed to be back to a global recession mood.
Starting from Greek debt crisis, the European financial crisis was getting into more disarray. The
European financial crisis became the destabilizing factor on the global recession and world
financial market. The US economy was also substantially slowing down the economic recovery
since beginning of the 2011. Though the various economic indexes showed a little improvement at
the end of the year, it was still down in part due to the downgrade in the housing market and
high levels of unemployment. In addition, there is increasing concern that the economic
momentum of emerging countries was slowing down due to domestic demand with the tightened
credit and weak external demand. The overall state of the world economy is still uncertain and in
flux.
Japans economy continued to be affected by natural disasters over the year with a considering
large amount of anxiety over the soaring budget deficit, employment improvement, deflationary
recession, the electric power shortage, and the yen at historically high levels. Under the many
negative affects of macro economy, Japans economy seems to be still a long way from recovery.
In the worldwide Information Technology Industry, despite the business demands in emerging
countries, worldwide PC shipments were in a decline caused by worldwide recession and short
supply of parts. It was recorded as the worst year of the decade for PC shipments in the US. On
the other hand, new IT technology and services were attracting a great deal of attention as the
driving forces of political and economical action tools. Moreover, those new IT services worked
well in aid for reconstruction after the Great East Japan Earthquake. In 2011, IT spending
increased more than originally expected mainly due to increasing demand for mobile devices such
as smartphones, cloud computing, and SNS.
In the computer security industry, hacking / cracking tools held most of worldwide incidents in
the reports. According to the virus infection damage incident report, Japan reported 7,750
infections during 2011. Virus infections has been decreasing every year and showed a substantial
decrease from 2010 at 16,908 and reducing for four years in a row. Though incidents reports has
been decreasing every year because of 2 major trends, more “monetary gain or data stealing” and
“more targeted,” threats itself increases the intensity of the crimes over the world. The article of
the enterprise hacking attack incidents were widely reported in 2011. That popular attack
technique is called Advanced Persistent Threat (APT). With APTs, businesses face a constantly
evolving threat landscape. APTs are sophisticated, multifaceted attacks targeting a particular
organization. This type of attack technique is becoming more sophisticated. At the same time, in
the consumer market, there are variable devices and services like smartphones and SNS which
make it easy to access and exchange vital information including monetary information. Thus,
security is not only for the devices themselves, but also the cloud computing services and data
being used in the devices.
Under such an environment, our group business conditions are as follows:
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