Trend Micro (OTCPK:TMIC.Y) 2025 Investor Day Transcript

Trend Micro Investor Day Summary Company Overview - Company: Trend Micro (OTCPK:TMIC.Y) - Event: 2025 Investor Day - Date: December 04, 2025 Key Industry Insights - AI Era Impact: Trend Micro is entering a significant phase influenced by AI technology, which will reshape its cybersecurity strategy and operations [1][2] - Cybersecurity Landscape: The threat landscape is evolving with new challenges such as deepfake technology, spear phishing, and automated attacks driven by AI [2] Core Strategic Points - Shift in Strategy: Trend Micro's strategy formula (X = I + U - T) will be adapted to incorporate AI, focusing on infrastructure changes, user behavior, and the evolving threat landscape [1][2] - Mass Scalability of Knowledge: The transition from an agricultural to an industrial and now to a knowledge economy is highlighted, with AI enabling mass scalability of knowledge [5] - Customization and Domain Knowledge: The future value will stem from customization and specialized knowledge, particularly in cybersecurity, through the development of specific language models and agentic AI [6][10] Technological Developments - Cybertron: Trend Micro has developed a cybersecurity-specific language model called Cybertron, which integrates domain knowledge about cybersecurity threats [8] - Information Flow Digital Twin: A new technology that allows customers to visualize and simulate their information flow, enhancing their ability to react to potential cyber threats [9] Business Unit Structure - New Business Units: - Magna AI: Focused on securing AI data centers [11] - VicOne: Concentrates on physical AI cybersecurity, particularly for autonomous vehicles and robotics [12] - Trend Life: A new consumer brand aimed at addressing broader digital life protection beyond traditional antivirus solutions [13][27] Consumer Market Strategy - Trend Life Brand: Aimed at transforming the perception of Trend Micro from a technical antivirus company to a human-focused digital life protection brand, addressing issues like identity theft and online scams [28][29] - Partnerships: Collaborations with local police and financial institutions to enhance consumer trust and expand market reach [33][34] Enterprise Market Strategy - Trend AI: The enterprise business is rebranded as Trend AI, focusing on AI-driven cybersecurity solutions and leveraging existing customer relationships to expand platform adoption [37][38] - Vision One Platform: A unified platform that integrates various cybersecurity solutions, showing significant growth in adoption and revenue [44][45] Financial Performance and Projections - Revenue Growth: Digital life protection revenue has increased to 34% of total revenue globally, with expectations for continued growth in both consumer and enterprise segments [35] - Future Projections: Anticipated net sales growth of 5%-7% in 2026, with operating margins expected to be in the 17%-19% range [59][60] Conclusion - Strategic Focus: Trend Micro is positioning itself to capitalize on the AI opportunity in cybersecurity, with a clear focus on both consumer and enterprise markets, aiming for sustainable growth and enhanced customer trust [61][62]