Financial Results
The 3 rd Quarter of FY2020

Jan. 29, 2021

Index■Main Points in 3Q/FY2020

P. 2■Business environment

P. 3■Summary of performance

P. 4■Summary of P/LElastomer Business

P. 7



Specialty Materials Business

P. 10



OthersP. 15■Summary of B/S

P. 17■Summary of C/F

P. 18■Forecast for FY2020

P. 20

1
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Main Points in 3Q of FY2020
Elastomers are recovering, Specialty Materials are steady.
Thus, sales of 3Q maintained YoY level, and operating income exceededYoY.
There is no impact on procurement and production by Covid-19.

Elastomers: The demand for Rubbers was in the recovery trend and for
Chemicals was steady. Latexes demand for medical/sanitary gloves washigher than expected.

Specialty Materials: The demand for Optical films and plastics weresteady. Energy materials were in the recovery trend. Toner had a strong
business by the expanding demand for home printers due to the Covid-19.
Thus, reached OP record as a quarter result.
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2

Business Environment【Raw Materials】【Exchange rate】（JPY）JPY/US$JPY/€
Naphtha (JPY/KL)Asian Butadinene (JPY/MT)

3Q-FY2019

2Q-FY2020

3Q-FY2020¥108.8¥120.0¥41,300$976¥105.9¥123.6¥30,200$586¥104.8¥123.6¥31,500$1,159YoY

QoQ-4%-1%+3%-24%0%+4%+19%+98%
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Summary of Performance(Unit : JPY100m)

QoQ

1-3Q
FY20191-3Q
FY2020YoY-3 +1102,426

2,163-262+56215

211-5+45+61235

229-6+41+47167

174+83Q
FY20192Q
FY20203Q
FY2020792679789Operating Income

6556112+46

Ordinary Income

7559120Net Income

514693

Net SalesYoY

 YoY (in 3 mo.) : Net sales: -0.3B JPY, operating income: +4.6B JPY
 QoQ:Net sales: +11B JPY, operating income: +5.6B JPY

 YoY (in 9 mo.) : Net sales: -26.2B JPY, operating income: -0.5B JPY* July-Sept. 2020 results of overseas subsidiaries are consolidated in 3Q result.
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Summary of Performance (by segments)(Unit : JPY100m)

Net Sales

3Q
FY20192Q
FY20203QFY2020

YoY

QoQ

Elastomer Business

435342431-4+89Specialty Materials Biz.

224

242237+13-5

Others/Eliminations, etc.

13296

121-11+25Net sales (consolidated)

792679789-3+110

Operating Income

3Q
FY20192Q
FY20203Q
FY2020YoY

QoQ

Elastomer Business

26945+19+35

Specialty Materials Biz.

404966+26+17

Others/Eliminations, etc.

-1-3

1+2+4Op. Income (consolidated)

65

56

112+47+565©ZEON CORPORATION. All rights reserved.

Index■Main Points in 3Q/FY2020

P. 2■Business environment

P. 3■Summary of performance

P. 4■Summary of P/LElastomer Business

P. 7



Specialty Materials Business

P. 10



OthersP. 15■Summary of B/SP. 17■Summary of C/F

P. 18■Forecast for FY2020

P. 20

6
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Summary of P/L: Elastomer Business【Sales volume of Rubbers*】【Naphtha price vs. Sales of Elastomer biz.】
110.0

19/Q1=100(JPY100m)

100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
19/Q1

Q2

Q3

Q420/Q1

Q2

Q3* Index: Sales/volume for 19/Q1=100

 Sales increased because of the main raw materials prices rose(the market situation and the supply/demand balance).
 Sales volume of rubbers are in the recovery trend since 2Q.
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Summary of P/L: Elastomer Business(Unit : JPY100m)

3Q-2019 2Q-2020 3Q-2020
Sales volume (thousand tons)
150
146
151
Rubbers
85
82
82
Latexes33
3132
Chemicals
32
33
37
Net sales
435
342
431
Rubbers
297
218
286
Latexes
41
32
45Chemicals
87
79
85
Others/Eliminations
101315
Operating income
26945
Operating income ratio

6%

3%YoYQoQ

1-3-1
5-4-114-2

YoY (%)
1%-4 %
-3 %
16 %
-1 %
-4 %
10 %
-2 %

5-0148968136

QoQ (%)
4%
-0 %
2 %
14 %
26 %
31 %
41 %
8%

1973 %

35374 %

10%

 Rubbers: Sales volume maintained the 3Q-2019. Sales prices rose alongwith the raw material price. Net sales increased QoQ.
 Latexes: Sales price rose by the supply / demand balance for the medical /sanitary gloves. Net sales increased.
 Chemicals: Sales volume increased by the steady demand for petroleumresin. Net sales increased QoQ.
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Elastomers: Operating income variance (QoQ)(Unit : JPY100m)-2-4-1+39
Sales volumeincreased in Chemicals• Raw material price• Supply/demandbalance+320/Q2920/Q345＋35
Exchange
Rate

Rawmaterialprices
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Summary of P/L : Specialty Materials(Unit : JPY100m)

Net sales
Specialty chemicals
Specialty plastics
Medical devices, etc.
Operating income
Operating income ratio

3Q-2019 2Q-2020 3Q-2020
224242237

YoY
YoY (%)
136%

QoQ-5QoQ (%)
-2 %

73137
1467
163
1269
154
14-4
17-0-5 %12 %-3 %2-923 %
-6 %17 %4049662665 %

1735 %

18%

20%

28%

 Specialty Chemicals: Battery Materials’ shipment was on the recovery trend.
 Toner had a increased demand for the home printers by Covid-19.
 Specialty Chemicals has steady demand, but controlling the shipment toprepare for the shut-down maintenance of the Mizushima plant.
 Specialty Plastics: Both Optical plastics and Films had steady business.
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Specialty Materials: Operating income variance (QoQ)(Unit : JPY100m)

Cost reduction, etc.
• Plant operation rate
• Raw material price, etc.
Sales volume
increased+620/Q249-2+5+8-1
20/Q366+17
ExchangeRate

Rawmaterialprices
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Situation in Specialty Materials: Energy materials (volume)

YoY

QoQ

EV

112%

142%

Consumer use, etc.

173%

98%

Total

128%

123%

 EV:
The shipment is recovering both for Europe/USA and China market.
 Customer use, etc.:
Steady demand for the mobile devices (by remote working).
ESS (Energy storage system) demand is also steady (including 5G basestation).

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Situation in Specialty Materials: COP (volume)
YoY

QoQ

Optical use

150%

125%

Medical use, etc.

95%

96%

Total

110%

124%

 Optical use:
The demand is steady (by the multi-camera smartphones).
Still controlling the shipment to prepare the construction to expand theproduction capacity and the regular shut-down maintenance in July,2021.
 Medical use, etc.:
The demand is steady. Controlling the shipment by the same reason
above.
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Situation in Specialty Materials: Optical films (volume)
YoY

QoQ

For small-to-medium size

131%

105%

For large size FPD

106%

97%

Total

112%

99%

 For small-to-medium size:
The demand for the mobile devices (by remote working) continues.
 For large size FPD:
Despite the forecast of the demand decrease, the business continued
steady by the increased shipments to the Chinese market.

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Summary of P/L: Others(Unit : JPY100m)

137

125

【3Q (three months) /Year-on-year】
Net sales ︓-1.2 billion yen
Operating income: +0.1 billion yen

100【QonQ】Net sales ︓-2.5 billion yen
Operating income: +0.4 billion yen

526

Sales increased in Trading andPaint business3Q-2019 2Q-2020 3Q-2020
Net Sales

Operating Income
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Index■Main Points in 3Q/FY2020

P. 2■Business environment

P. 3■Summary of performance

P. 4■Summary of P/LElastomer Business

P. 7



Specialty Materials Business

P. 10

Others

P. 15■Summary of B/S

P. 17■Summary of C/FP. 18■Forecast for FY2020

P. 2016©ZEON CORPORATION. All rights reserved.

Summary of B/S(Unit : JPY100m)( )=Variance with the figures at the end of Mar., 2020

Total assets
4,195 (+144)【Current assets】 +42
 Cash and deposits +101

 Account payable -35

 Account receivable +13
 Inventories【Current liabilities】 -39-46• Current ratio: 202%
• On-hand liquidity ratio:
1.8 month（-39）
（-2）

（+42）

【Total net assets】 +185
 Net income【Fixed assets】 +102（+102）（+185）

 Capital expenditures +150+174• Retained earnings +137
 Financial indicators• Interest-bearing debt 210 (-)

 Depreciation & Amortization-128• Equity ratio 65.8％ (+2.3％)• D/E ratio 0.08 (-)

 Investment securities +92

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Summary of C/F(Unit : JPY100m)

362

3Q-2019 3Q-2020

248-60-48
3Q-FY2019-163

CF from Operating Act
CF from Financial Act

3Q-FY2020-209
CF from Investing Act

CF from Operating Act.

248

362

CF from Investing Act.

-163

-209

Free CF85152

CF from Financing Act.

-48-60CF3792

 CF from Operating act: +114
• Working capital: +22
 CF from Investing act: -46• Increase of capital investment: -32(Optical film facility, etc.)
 CF from Financing act: -1218©ZEON CORPORATION. All rights reserved.

Index■Main Points in 3Q/FY2020

P. 2■Business environment

P. 3■Summary of performance

P. 4■Summary of P/L

Elastomer Business

P. 7



Specialty Materials Business

P. 10



OthersP. 15■Summary of B/S

P. 17■Summary of C/F

P. 18■Forecast for FY2020

P. 2019©ZEON CORPORATION. All rights reserved.

Changes since October 2020
Factors

BusinessRubbers

Sales prices rose accompanied with raw materials.
Demand is in the recovery trend.

Latexes

Demand for medical/sanitary gloves has increased. Sales
prices rose by the supply/demand balance.

Chemicals

Sales volume increased by the steady demand for
petroleum resin.

TonerMarkets

In-house

Differences from Oct. 2020

Influence

Demand increased for home printers by the outspread ofCovid-19.

Optical films

Large-sized: Increase in the Chinese market
Small-to-medium size: Continued the steady demand

Exchange rateCheaper JPY against both USD/EUR than our budget

Main rawmaterials
Cost reduction

Higher prices than our budget••

Reducing the non-essential payment (business trip, etc.)
Self-help cost reduction activities

Many factors are expected to work on the positive side and boost profit indicators
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OP Forecast for FY2020(Unit : JPY100m)+

Business++

Markets

 Operating Income FY2020 will be 29 billion yen (from 16 billion yen)
 60% of 10.2 billion yen of the Market factor is from the Elastomer business
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Forecast for FY2020
Net sales & operating income(Unit : JPY100m)

Dividend (Unit : JPY) Revised forecast of FY2020: Net sales 300 billion yen, Operating Income 29billion yen
 Dividend forecast: revised to ¥11/share at the year-end (total ¥22/share/year,+¥1 from previous year’s result)
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We continue to implement infection prevention measuresat all business sites globally and maintain the supply
chain and ensure the health and safety of employees andtheir families.
Next Announcement of Financial Statements

FY2020

Apr. 28 th , 2021
Subject to change without noticeZeonʼs plans, forecasts, and other data appearing in this presentation were calculated
based on information which was currently available and therefore includes risks anduncertainties. Actual results may differ depending on various factors.
This document is a translation of the original Japanese-language and is provided for convenience only.
In all cases, the original Japanese version shall take precedence.
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Reference: Capital Expenditures, Depreciation & Amortization
and R & D Expenses(Unit : JPY100m)

2019 Actl.
291

2019 Actl.
174

2020
Forecast
180

2020
Forecast
1852019 Actl.
153
2020
Forecast
145

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