Financial Report
The 3 rd Quarter of FY2019(From Apr. 1 to Dec. 31)

Jan. 30, 2020

Index■Main Points in 3Q

P. 2■Summary and FY2019 ForecastP. 3■Summary of P/LP. 6■Summary of B/S

P. 17■Summary of C/F

P. 18

1
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Main Points in 3Q
Both sales and operating income decreased YoYand QoQ due to the impact of the global economic
slowdown caused by the US-China trade friction.
We revise the forecast of FY 2019, because of thebleak prospect in economic situation.

Dividend: No change since the announcement on
Oct. 31st. (Interim ￥11+Year-end ￥10=total ¥21)
(Ref.: ￥19 annual dividend in 2018)

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Summary (9 months, YoY)
(Unit : JPY100m)

YoY（1-3Q）
FY2019Net Sales
Operating Income
Ordinary Income
Net Income
JPY/US$
JPY/€
Naphtha price (JPY/KL)Asian Butadiene (US$/t）

FY2018

Increase/Decrease

AmountRate

2,426
215
235
167

2,545
270
293
126-120-55-58+41-5%-20%-20%+33%¥109.1¥121.3¥42,400
US$1,075¥110.8¥129.6¥51,800
US$1,453-1.7-8.3-9,400-378-2%-6%-18%-26%
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Forecast of operating performance for FY2019(Unit : JPY100m)

3,200

3,375
2,426
1,634
824331FY2018(Actual)83
2019-1Q
Net Sales150
2019-1H

215
2019-3Q

Operating Income250
FY2019(RevisedForecast)• Forecast is revised from the announcement on Apr. 26th , 2019
Net sales 3,200(-100), OP 250(-50)
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Index■Main Points in 3Q

P. 2■Summary and FY2019 Forecast

P. 3■Summary of P/L

P. 6■Summary of B/S

P. 17■Summary of C/F

P. 18

5
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Summary of P/L : Elastomer Business (9 mo. YoY)
(Unit : JPY100m)

1,492

1,355

【Year-on-year】
Net Sales: -13.8 billion yen, -9%
Operating Income: -5.9 billion yen, -41%

144

2018/3Q
Net Sales85

 Rubbers: Both net sales and OP
decreased due to the sluggish
business in automobile andgeneral industry.
 Chemicals: Both net sales andOP decreased due to production
volume decrease from the regularplant maintenance in Mizushima.

2019/3Q
Operating Income
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Elastomers: Net sales variance (9 mo./YoY)(Unit : JPY100m)-97

Sluggish all in domestic, export and oversea
subsidiaries by the global economic slowdown

-15

-31

+6

Low sales because of the regular plant maintenance.
Petroleum resins are affected by the Asian market
decline.

1,492

2018/3Q Rubbers

1,355

-138

Latexes Chemicals

Others /Eliminations

2019/3Q
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Elastomers: Operating income variance (9 mo./YoY)(Unit : JPY100m)• Raw material /sales price formula• Downturn in Asian market-31

Price decrease of raw
material+6-63-14
144
2018/3Q+4385

-59
Qty.

PriceExchangeRate

Rawmaterialprices

SG&A

2019/3Q
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Summary of P/L : Elastomer Business (QoQ)(Unit : JPY100m)

448435【Quarter-on-quarter】
Net Sales: -1.3 billion yen, -3%
Operating Income: +0.1 billion yen, +5%25
2019/2Q
Net Sales26

 Rubbers: Net sales decreased
2.4 billion yen
 Chemicals: Net sales increased,but not enough to cover thedecrease of rubber business Operating Income: Increased
0.1 billion yen

2019/3Q
Operating Income
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Situation in Elastomer: Rubbers (9 mo./YoY)（Index) Volume for FY2018/3Q=100

General purpose• YoY +6% by the growth ofshipment outside of Japan, eventhough the demand for tires wasweak.

1001062018/3Q

2019/3Q

Specialty

10090
2018/3Q

 General purpose rubbers(mainly for tires)2019/3Q• ZS Elastomer sales added 2% involume
 Specialty rubbers (mainly forautomobile industries)
YoY -10% due to global demand
decline and sluggish marketconditions
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Summary of P/L : Specialty Materials (9 mo. YoY)
【Year-on-year】(Unit : JPY100m)

679

647

Net Sales ：+3.2 billion yen, +5%
Operating Income: +0.3 billion yen, +2%
 Specialty Plastics:
 Optical Plastics: Both net sales andOP increased by steady business Films: Net sales increased, but OP
decreased by the increase of R&D/trial
manufacturing and freight cost130

2018/3Q
Net Sales132

2019/3Q
Operating Income Specialty Chemicals: Specialty Chemicals Unit: Both netsales and OP decreased due toproduction volume decrease by theregular plant maintenance.
 Energy Materials: Both net sales andOP increased by steady business.

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Specialty Materials: Net sales variance (9 mo./YoY)(Unit : JPY100m)+3+10
Steady in Energy
Materials+19

Steady in optical plastics
and films

647+32679

2018/3Q

Sp. Plastics Sp. Chemicals Medical etc.

2019/3Q
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Specialty Materials: Operating income variance (9 mo./YoY)(Unit : JPY100m)

Increased the shipment ofoptical films and energymaterials-10+23••+15-21-3

Increased the freight and packaging cost due
to the increased shipment
Increased R&D and trial manufacturing cost+3130
2018/3Q

Increased operationof optical films

Qty.

Price

Exchange
Rate

132
Raw
materialprices

SG&A

2019/3Q
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Summary of P/L : Specialty Materials (QoQ)【Quarter-on-quarter】(Unit : JPY100m)

232

Net Sales ：-0.8 billion yen, -4%

224

Operating Income: -0.1 billion yen, -2%
 Specialty Plastics:
 Optical Plastics: Both net sales andOP increased by steady business inmedical use

41

2019/2QNet Sales40

 Films: Net sales decreased; steadyfor TV, but for mobiles weredecreased in the in-between season
 Specialty Chemicals: Energy Materials declined by thepostponement of the EV production
to wait-to-see the new NEV
regulation in 2020 China.

2019/3Q
Operating Income

 Electronics Materials has steadybusiness.
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Situation in Specialty Materials: Energy materials（Index) Volume for FY2018/3Q=100

For EV100

 For EV: +13%
Sales grow in Japan, Europe andUSA.

113

Other than EV

 Other than EV: +5%
The model numbers of power tools
which adopted our products
increased.

100105* Volume analysis of usage is Zeon’s
estimation.

2018/3Q

2019/3Q

2018/3Q

2019/3Q

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

425【Year-on-year】

408

Net Sales ：-1.8 billion yen, -4%
Operating Income: -0.3 billion yen, -14%

• Decline in Trading and RIMbusiness• Both net sales and OP increasedin QoQ basis

2017

2018/3Q

2019/3Q

Net Sales

Operating Income
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Summary of B/S(Unit : JPY100m)【Current assets】 +64【Current liabilities】 -0

 Cash / bank deposit +27
 Inventories +13

Currentliabilities
1,300

Currentassets
2,336（-0）

Long-term liabilites 363(+5)
382（+24）（+64）
Fixedassets
2,069【Fixed assets】 ＋92
 Capital expenditures 191（+92）

Total netassets
2,724（+132）【Total net assets】 +132
 Net income 167• Retained earnings +121 Financial indicators• Interest-bearing debt 241 (±0)
• Equity ratio 61.1％ (+0.8％)• Enhancement of opticalfilm facility, etc.

• D/E ratio 0.09 (±0.00)
Year-on-year variance is in ( )©ZEON CORPORATION. All rights reserved.

17

Summary of C/F(Unit : JPY100m)

264

248

2018/3Q

2019/3Q-152-163

2018/3Q

2019/3Q

CF from
Operating Act.

264

248

CF fromInvesting Act.

-152-163

Free CF

112

85

CF fromfinancing Act.

-216

-48-104

37-48 CF-216
CF from Operating Act.

CF from Investing Act.

CF from Financing Act.
18
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Next Announcement of Financial Statements

FY2019Apr. 28, 2020
Subject to change without notice

Zeon’s plans, forecasts, and other data appearing in this presentation werecalculated based on information which was currently available and therefore
includes risks and uncertainties. Actual results may differ depending onvarious 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: Business EnvironmentAve.for 9 mo.

FY2019FY2018

3Q

3Q

JPY/USD
109.1
JPY/Euro
121.3($/bbl)
65
Crude Oil(JPY/kl) 42,400
Naphtha price($/ｔ)
Asian Butadiene
1,075($/ｔ)
Isoprene
1,343
($/ｔ)
Natural rubber
1,410

110.8
129.6
72
51,800
1,453
1,487
1,331

Increase/Decrease
Amount-1.7-8.3-7-9,400
-378
-144
79

Rate

-2 %
-6 %
-10 %
-18 %
-26 %
-10 %
6 %

20
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Reference: Consolidated Statement of Income (Quarterly)(Unit : JPY100m)

FY2018FY2019Q2→Q3

Q1Q2Q3Q4Q１Q2Q3Amount Rate

159

149

145

164

147

150

150-10%

Rubbers

91

84

80

99

85

90

85-5-6%

Latexes

312930

32

30

31

33

27%

Chemicals

3735

34

32

32

30

32

28%

837

854

855

829

824

809

792

-17-2%

Elstomers Business

509

493

490

489

471

448

435

-13-3%

Rubbers

363

340

339

345

328

321

297

-24-8%

Latexes

44

51

48

45

45

42

41-1-1%

Chemicals

98

96

95

94

92

78

87

912%

Others / Eliminations

467

577

10

341%

Specialty Materials Biz.

195

229

223

205

223232224-8-4%

Sp. Plastics

116148

138

117

142

143

137-6-5%

Sp. Chemicals

66

6870

72

67

75

73-2-2%

Medical, etc.

141215161414

14

01%

Ohters / Eliminations

132

132

143136

131

129

132

43%

85

95

90

61

83

67

65

-2-3%

Operating income ratio

10%

11%

11%

7%

10%

8%

8%

-0 pt

Elastomer Business

51444933352526

15%Specialty Materials Biz.

34

53

42

32

51

41

40

-1-2%

Others

-1-2-0-3-2

1-1-2-205%

Sales Volume (thousand tons)

Net Sales

Operating income

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Summary (QoQ)(Unit : JPY100m)

QoQ
Increase/Decrease

FY2019Net Sales
Operating Income
Ordinary Income
Net Income
JPY/US$JPY/€
Naphtha price (JPY/KL)Asian Butadiene (US$/t）

3Q

2Q

Amount

792
65
75
51

809
67
74
55

-17-2
+1-4

Rate
-2%-3%+1%-7%¥109.1¥121.3¥42,400
US$1,075¥109.2¥122.0¥42,800
US$1,121-0.1-0.7-400-46-1%-1%-4%

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Reference: Capital Expenditures, Depreciation & Amortizationand R&D Expenses(Unit : JPY100m)

2018 Actl.
146

2018 Actl.
188

2019
Forecast
270

2019
Forecast180

2018 Actl.
165
2019
Forecast
155

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Business Environment【Exchange rate】【Raw materials】

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