Trend Micro 2014 Annual Report Download - page 6

strong PC sales due to a rush demand before consumption tax increase and the Windows XP replacement demand,
etc. As for enterprise business sales increase maintained with the growth of cloud related business. As a
result, net sales for this period in Japan region amounted to 50,736 million yen (4.5% increase from the
same period in the previous year.)
For North America region, consumer business sales has decreased significantly in also local currency due to
the sales channel centralization aiming for higher profit margin and a decrease in number of users, etc. On
the other hand, enterprise business shows the continuous growth of cloud related business and sustainable
growth in its sales. Although low performance of consumer business dragged down the entire North America
region sales, enterprise business has been recovery since second half of this year. In addition, weak yen
benefited for sales figure in Japanese yen, sales for this period in this region was 24,948 million yen
(5.6% increase from the same period in previous year).
Although EMEA region sales has been concerned about macroeconomics weaknesses in future demands, enterprise
business growth has increased in also local currency mainly due to cloud related business. In addition to
weak yen, sales for this period in EMEA registered double digit growth of 22,778 million yen (10.7%
increase from the same period in previous year).
In the Asia Pacific region sales, especially Australia has been leading this region's sales continuously in
also local currency through this year. As a result, net sales for this period in Asia Pacific region
amounted to 13,760 million yen (6.5% increase from the same period in the previous year).
Latin America region has showed strong sales growth even in local currencies. Especially enterprise
business in Brazil which has been enhanced sales division etc. and growth in Brazil sales has been leading
this region's sales mainly due to cloud related business through entire year. As the result, net sales in
this region registered double digit growth of 2,982 million yen (12.5% increase from the same period in
previous year), which is also the region to have achieved the highest net sales growth among the 5
sales regions.
As a result, the consolidated net sales for entire year of fiscal year 2014 amounted to 115,205 million yen
(6.4% increase from the same period in previous year), showing revenue growth in all region.
Cost of sales and operating expenses was largely affected by the weak Japanese yen. Although stock option
related expenses etc. have substantially decreased, people costs have increased. As a result, cost of
sales and operating expenses of 81,553 million yen (3.4% increase from the same period in previous year)
and consolidated operating income for this period was 33,652 million yen (14.3% increase from the same
period in the previous year).
In spite of a decrease in gain on sale of marketable securities, etc. from the same period in previous
year, consolidated ordinary income for this period was 35,992 million yen (10.9% increase from the same
period in the previous year) and the consolidated net income for this period was 22,303 million yen (13.8%
increase from the same period in previous year).
Since the business environment surrounding Trend Micro Group tends to fluctuate in the short run, it is
difficult to make a highly reliable projection figures on a yearly basis. However, forecasts of net sales
for FY 2015 was assumed that Japan increases by around 5%, North America region increases by around 10%
respectively, and Europe region decreases around 5% from the same period in previous year. In consideration
of such a condition, we have decided to announce the earnings on an annually basis in the fiscal year
ending in December 2015 as followings.
Business forecast for the Annual of FY2015 (January 1, 2015 – December 31, 2015)
In development of the business forecasts the main assumed exchange rates for the Annual of FY2015
(January 1, 2015 – December 31, 2015) as follows.
(2) Qualitative Information on the Consolidated Earnings Forecast
Consolidated net sales 123,100 million yen
Consolidated operating income  34,200 million yen
Consolidated ordinary income  36,600 million yen
Consolidated net income  22,600 million yen
1 US $ 118 yen
1 Euro 134 yen
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