Trend Micro Incorporated

I'd like to get started with my presentation about this Q2 results. So this is a summary slide. Sales, 13% gross net sales and operating income 42% plus. And compared to last year, the operating income margin is 42% plus, 18%. And so pre-gap, 12% plus, and the pre-gap-based operating income plus 36%. So last year, there were accounting standard changes. There were a lot of changes. However, this year, things are rather straightforward. So this is the result of this quarter. And looking at these numbers, This is the progress to date against the annual expectation. or forecast, the blue is the actual so far. And at the right top, we have the revenue forecast, the target, and we're steadily working and moving towards that. And so I think if things continue as is, I will be able to reach the target. And pre-GAAP, this is the trend that we see. Now, one of the key points this year is the improvement of the margin. as was mentioned earlier this year, pre-GAAP margin. So actually operating income is improving in the margin as well. And another key point is with regard to the subscription business. Enterprise ARR is shown here. Perpetual license renewables, that's the top part. And then the subscription, they are at the bottom, the dark blue. And if you add them together, 7% growth is shown. And perpetual license compared to – well, you see there's a negative 8% while the – perpetual, or rather the subscription is increasing by 17%. There will be more details in Kevin's presentation later, so please wait until he gives more details.

And cash flow, last year versus this year,

So compared to last year, because of deferred revenue and so forth, there is some negative numbers here. But cash flow-wise, this is rather healthy this year. And this is headcount. In the first quarter, there was this one-time changes.