Cover photo:
Zeon Corporation Kawasaki Plant
Established in 1959, the Kawasaki
Plant was the first factory in Japan
to begin volume production ofsynthetic rubber. The synthetic rubber
manufactured at the Plant has superior
heat-resistance and oil-resistanceproperties, and is used for automotive
components that are in close proximity
to the vehicle’s engine. The Kawasaki
Plant also produces synthetic latex,
undertaking small-volume productionof a wide range of high-value-added
product items such as rubber gloves,cosmetic puffs and non-woven fabrics.
Main products
Synthetic rubber and synthetic latex

CORPORATE REPORT 2018
ZEON, Zetpol, Nipol, Quintone, Quintac, ZEONEX,ZEONOR, ZEORORA and ZEONANO
are registered trademarks of Zeon Corporation,in the United States and other countries.
ZeonorFilm, ZEOGLOBULE, STEC, ZEOCOAT, ZEOSTENT
and MEISHU are trademarks of Zeon Corporation.

Zeon Corporation
CSR Promotion Department
Shin Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604 http://www.zeon.co.jp/index_e.html

Printed on paper made with woodfrom forest thinning. ”Morino Chonai- Kai”
(Forest Neighborhood Association)
supporting sound forest management.

CONTENTS
Message

Message2
Zeon’s information disclosure

3 Highlights
Highlight 1

CSR Implementation Plan measures aimed
at the realization of the Enterprise Blueprintfor 2020

3

Highlight 2Catheters that contribute towards
the enhancement of patients’ qualityof life through minimally-invasive treatment

5

Zeon material and component products
making contributions to society

7

Basic information on Zeon Corporation and Zeon Group is available on
the Company Information section of the corporate website.
This Corporate Report (booklet) contains a wide range of information
on Zeon corporate management and CSR. A CSR report (PDF) withdetailed information on initiatives and site reports is available on the CSR
activities section of the corporate website.
More information about Zeon’s management and operations isavailable on the Investor Relations section of the corporate website and in
the Fact Book.

Website▶ http://www.zeon.co.jp/index_e.html
WebsiteCorporate Philosophy

Zeon is contributing to the preservation of the
Earth and the prosperity of the human race
Zeon, with its name drawn from words signifying the Earth (geo) and eternity (eon),is committed to responsible stewardship of the global environment
as the foundation for human prosperity through the development
and application of unique, world-leading technologies.

Company Profile

9

Zeon Group History

11

Following our corporate philosophy, we haveBusiness Overview

13

consistently released a steady stream of new products

Zeon Group Locations

15

Company Information

CSR Activities

using our pioneering, inimitable technologies. Zeon’s

IR Information

products are incorporated into customers’ final products

19 Zeon’s Business and Strategy
2017–2018 Topics

20

Interview with the President

21

Elastomer Business

25

Specialty Materials Business27

Research and Development (R&D)

29

Corporate Governance

31

33 Zeon’s CSR

to support society through their presence all around us.
To fulfill our responsibility to society now and in the
future, we are developing our business under ourEnterprise Blueprint for 2020 plan with the mission of
CSR Report

Corporate Report“Zeon makes the future today through the power ofFact Book

chemistry.”
In FY 2017, while continuing to develop ourbusiness activities and expand our businessfoundations, we also benefited from external factors
such as changes in raw material prices, exchange rates,
Our TVCM broadcast at Asia

Zeon’s CSR

34

CSR Implementation Plan

35

Environment

41

Fair Operating Practices/Human Rights

42

Labor Practices

43

Community

45

Naozumi Furukawa
Chairman
Zeon Corporation

market conditions, etc., and as a result we posted ourhighest ever net sales and operating profit.
This year, FY 2018, is the second year of the new

Television commercials
designed for Asian
audiences are being
shown throughout
Southeast Asia onsatellite TV channels.

mid-term management plan to be completed at the endof FY 2020. In order to realize our Enterprise Blueprintfor 2020, and contribute to the creation of a sustainable
society, the Zeon Group will be working as a team todevelop our business.
We deeply appreciate your continued support andEditorial policy

encouragement.

Zeon Corporation and Zeon Group (“Zeon”) previously published a stand-alone CSR report. Since FY 2013, Zeon has published a booklet form of the CSR report renamed the
Corporate Report, which includes an annual report and corporate profile providing of overview of Zeon’s general business activities.
Highlights of the FY 2018 Corporate Report include an introduction to the Zeon Group’s CSR measures and medical products business. The Corporate Report is divided into
Zeon’s Business and Strategy and Zeon’s CSR. The Zeon’s Business and Strategy section describes the mid-term management plan SZ-20 Phase III and Zeon’s value creation
model. The Zeon’s CSR section includes updated reporting on initiatives based on ISO 26000.

Reporting period

Reporting scope

April 2017 to March 2018 (includes some information after April 2018)

Zeon Corporation and Zeon Group companies inside and outside Japan. Some data
covers only Zeon Corporation.

1

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 20182

CONTENTS
Message

Message2
Zeon’s information disclosure

3 Highlights
Highlight 1

CSR Implementation Plan measures aimed
at the realization of the Enterprise Blueprintfor 2020

3

Highlight 2Catheters that contribute towards
the enhancement of patients’ qualityof life through minimally-invasive treatment

5

Zeon material and component products
making contributions to society

7

Basic information on Zeon Corporation and Zeon Group is available on
the Company Information section of the corporate website.
This Corporate Report (booklet) contains a wide range of information
on Zeon corporate management and CSR. A CSR report (PDF) withdetailed information on initiatives and site reports is available on the CSR
activities section of the corporate website.
More information about Zeon’s management and operations isavailable on the Investor Relations section of the corporate website and in
the Fact Book.

Website▶ http://www.zeon.co.jp/index_e.html
WebsiteCorporate Philosophy

Zeon is contributing to the preservation of the
Earth and the prosperity of the human race
Zeon, with its name drawn from words signifying the Earth (geo) and eternity (eon),is committed to responsible stewardship of the global environment
as the foundation for human prosperity through the development
and application of unique, world-leading technologies.

Company Profile

9

Zeon Group History

11

Following our corporate philosophy, we haveBusiness Overview

13

consistently released a steady stream of new products

Zeon Group Locations

15

Company Information

CSR Activities

using our pioneering, inimitable technologies. Zeon’s

IR Information

products are incorporated into customers’ final products

19 Zeon’s Business and Strategy
2017–2018 Topics

20

Interview with the President

21

Elastomer Business

25

Specialty Materials Business27

Research and Development (R&D)

29

Corporate Governance

31

33 Zeon’s CSR

to support society through their presence all around us.
To fulfill our responsibility to society now and in the
future, we are developing our business under ourEnterprise Blueprint for 2020 plan with the mission of
CSR Report

Corporate Report“Zeon makes the future today through the power ofFact Book

chemistry.”
In FY 2017, while continuing to develop ourbusiness activities and expand our businessfoundations, we also benefited from external factors
such as changes in raw material prices, exchange rates,
Our TVCM broadcast at Asia

Zeon’s CSR

34

CSR Implementation Plan

35

Environment

41

Fair Operating Practices/Human Rights

42

Labor Practices

43

Community

45

Naozumi Furukawa
Chairman
Zeon Corporation

market conditions, etc., and as a result we posted ourhighest ever net sales and operating profit.
This year, FY 2018, is the second year of the new

Television commercials
designed for Asian
audiences are being
shown throughout
Southeast Asia onsatellite TV channels.

mid-term management plan to be completed at the endof FY 2020. In order to realize our Enterprise Blueprintfor 2020, and contribute to the creation of a sustainable
society, the Zeon Group will be working as a team todevelop our business.
We deeply appreciate your continued support andEditorial policy

encouragement.

Zeon Corporation and Zeon Group (“Zeon”) previously published a stand-alone CSR report. Since FY 2013, Zeon has published a booklet form of the CSR report renamed the
Corporate Report, which includes an annual report and corporate profile providing of overview of Zeon’s general business activities.
Highlights of the FY 2018 Corporate Report include an introduction to the Zeon Group’s CSR measures and medical products business. The Corporate Report is divided into
Zeon’s Business and Strategy and Zeon’s CSR. The Zeon’s Business and Strategy section describes the mid-term management plan SZ-20 Phase III and Zeon’s value creation
model. The Zeon’s CSR section includes updated reporting on initiatives based on ISO 26000.

Reporting period

Reporting scope

April 2017 to March 2018 (includes some information after April 2018)

Zeon Corporation and Zeon Group companies inside and outside Japan. Some data
covers only Zeon Corporation.

1

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 20182

Highlight 1 CSR Implementation Activities

CSR Implementation Plan
measures aimed at the realizationof the Enterprise Blueprint for 2020

CSR Implementation Plan Measures
The Zeon Group’s CSR Implementation Plan has been formulated on the basis of ISO 26000, the international standard for CSR.
The CSR Implementation Plan specifies the progress that needs to be made in order to realize the Enterprise Blueprint for 2020, in
terms of ISO 26000’s Seven Core Subjects. Examination of the CSR Implementation Plan shows what measures the Zeon Group is
implementing in relation to the Seven Core Subjects, which embody society’s expectations.

CSR Code of Conduct
Zeon Group’s Goal of CSR
The Zeon Group’s goal of CSR is achieved when we are able to answer the question from thesociety asking “Does the Zeon Group meet the expectations of the society?” “Yes.” To meet the
expectations of the society means to be a company which provides value to the society and istrusted by the society. Every member of the Zeon Group aims to offer value to the society
thorough our products and services produced with our original technology and to become acompany trusted by the society by carrying out safe, secure and sincere activities.

Zeon CSR Policy and CSR Code of Conduct
To act in a manner that is trusted by the society, we have established the Zeon CSR Policy(cornerstone of values, ethics and actions which every member of the Zeon Group values).
<Zeon CSR Policy>■ We will ensure compliance and meet society’s needs for safety and security.
■ We will contribute to sustainably developing society and protecting the global environment
through our corporate activities.
■ We will ensure that each and every Zeon person is aware of CSR and acts accordingly.
The CSR Code of Conduct has been established based on the Zeon CSR policy and thecorporate philosophy.
The CSR Code of Conduct was formulated in January 2018.
http://www.zeon.co.jp/content/000257956.pdf

In the future, we will be working to further the dissemination of the CSR Implementation Plan both within and outside the Zeon
Group, and we will be implementing activities aimed at helping all stakeholders to understand Zeon’s CSR measures.
●The Zeon Group’s CSR Implementation Plan
ISO 26000
Seven Core Subjects

Enterprise Blueprint for 2020 =To meet the expectations ofsociety

Corporate Governance
Human Rights
Labor Practices
Environment
Fair Operating Practices

Example in the Labor
Practices area:
Promoting diversity andusing fair, equitable
human resources
practices to invigorate theworkplace.
(Recruitment)

Consumer Issues
Community Involvement

Activities currently
being implemented
Example in the Labor
Practices area:
・Appropriate operation ofhuman resources systems
・Support for employees’capability-building and careerdevelopment
・Prevention of harassment in
the workplace
・Dialogue between
management and female
employees
etc.

Items that need to be
implemented in the future
Example in the Labor
Practices area:
Promoting diversity-oriented
management
・Proactive recruitment offemale employees
・Proactive recruitment offoreign nationals
・Promoting the employment ofsenior citizens
・Establishment of systematic
employee cultivation systems➡ See summary on P.35

Measures Aimed at Supporting the Realization of the SDGs by 2030
With the realization of the Enterprise Blueprint for 2020 fast approaching, inorder to help realize the Sustainable Development Goals (SDGs) that are being
promoted by the United Nations, the Zeon Group is formulating targets for 2030 inline with both Zeon’s CSR Implementation Plan and the SDGs.
➡ For more details, see P.35–40.

A Message from the CSR Division Manager

Zeon’s CSR Code of Conduct was revised in January 2018, for the first time in seven years.
Recently, several Japanese companies have experienced quality issue or problems with corporate governance, and there havebeen growing calls for changes in working practices. The extent to which business enterprises are really meeting society’s
expectations, and the extent to which they provide meaningful value for society, have been called into question.
This revision of the CSR Code of Conduct has been undertaken to make clear Zeon’s commitment to meeting society’s
expectations, which represents Zeon’s fundamental approach to CSR, and to facilitate the making of improvements to the CSR
activities that Zeon undertakes. In this way, we are redefining, in the clearest possible way, the CSR vision for the Zeon Group as awhole, in line with the ongoing globalization of the Zeon Group’s operations.
In order to realize the Enterprise Blueprint for 2020 and meet society’s expectations, we will be working to achieve theobjectives specified in our CSR Implementation Plan, which represents the practical guidelines for CSR, while continuing toemphasize the Sustainable Development Goals (SDGs) and ISO 26000, which are issues of great importance for society.

3

ZEON GROUPCORPORATE REPORT 2018

Last year, in the process of revising Zeon’s CSR Code of Conduct, we undertook theredefining of Zeon’s CSR vision, which emphasizes “meeting society’s expectations.”
The CSR Implementation Plan outlines the Enterprise Blueprint for 2020 in line with ISO
26000’s Seven Core Subjects, collates the issues that are currently being faced and that
we will be facing in the future, and specifies the direction that we will be taking in terms of
implementing activities in line with society’s needs that are explicitly linked to the SDGs.
While working to realize the Enterprise Blueprint for 2020, all Zeon Group employees
will be demonstrating a firm commitment to the CSR Implementation Plan, so that we canconfidently state that the Zeon Group is indeed meeting society’s expectations.

Erisa Watanabe
Corporate Officer and the CSR Division Manager

ZEON GROUPCORPORATE REPORT 20184

Highlight 1 CSR Implementation Activities

CSR Implementation Plan
measures aimed at the realizationof the Enterprise Blueprint for 2020

CSR Implementation Plan Measures
The Zeon Group’s CSR Implementation Plan has been formulated on the basis of ISO 26000, the international standard for CSR.
The CSR Implementation Plan specifies the progress that needs to be made in order to realize the Enterprise Blueprint for 2020, in
terms of ISO 26000’s Seven Core Subjects. Examination of the CSR Implementation Plan shows what measures the Zeon Group is
implementing in relation to the Seven Core Subjects, which embody society’s expectations.

CSR Code of Conduct
Zeon Group’s Goal of CSR
The Zeon Group’s goal of CSR is achieved when we are able to answer the question from thesociety asking “Does the Zeon Group meet the expectations of the society?” “Yes.” To meet the
expectations of the society means to be a company which provides value to the society and istrusted by the society. Every member of the Zeon Group aims to offer value to the society
thorough our products and services produced with our original technology and to become acompany trusted by the society by carrying out safe, secure and sincere activities.

Zeon CSR Policy and CSR Code of Conduct
To act in a manner that is trusted by the society, we have established the Zeon CSR Policy(cornerstone of values, ethics and actions which every member of the Zeon Group values).
<Zeon CSR Policy>■ We will ensure compliance and meet society’s needs for safety and security.
■ We will contribute to sustainably developing society and protecting the global environment
through our corporate activities.
■ We will ensure that each and every Zeon person is aware of CSR and acts accordingly.
The CSR Code of Conduct has been established based on the Zeon CSR policy and thecorporate philosophy.
The CSR Code of Conduct was formulated in January 2018.
http://www.zeon.co.jp/content/000257956.pdf

In the future, we will be working to further the dissemination of the CSR Implementation Plan both within and outside the Zeon
Group, and we will be implementing activities aimed at helping all stakeholders to understand Zeon’s CSR measures.
●The Zeon Group’s CSR Implementation Plan
ISO 26000
Seven Core Subjects

Enterprise Blueprint for 2020 =To meet the expectations ofsociety

Corporate Governance
Human Rights
Labor Practices
Environment
Fair Operating Practices

Example in the Labor
Practices area:
Promoting diversity andusing fair, equitable
human resources
practices to invigorate theworkplace.
(Recruitment)

Consumer Issues
Community Involvement

Activities currently
being implemented
Example in the Labor
Practices area:
・Appropriate operation ofhuman resources systems
・Support for employees’capability-building and careerdevelopment
・Prevention of harassment in
the workplace
・Dialogue between
management and female
employees
etc.

Items that need to be
implemented in the future
Example in the Labor
Practices area:
Promoting diversity-oriented
management
・Proactive recruitment offemale employees
・Proactive recruitment offoreign nationals
・Promoting the employment ofsenior citizens
・Establishment of systematic
employee cultivation systems➡ See summary on P.35

Measures Aimed at Supporting the Realization of the SDGs by 2030
With the realization of the Enterprise Blueprint for 2020 fast approaching, inorder to help realize the Sustainable Development Goals (SDGs) that are being
promoted by the United Nations, the Zeon Group is formulating targets for 2030 inline with both Zeon’s CSR Implementation Plan and the SDGs.
➡ For more details, see P.35–40.

A Message from the CSR Division Manager

Zeon’s CSR Code of Conduct was revised in January 2018, for the first time in seven years.
Recently, several Japanese companies have experienced quality issue or problems with corporate governance, and there havebeen growing calls for changes in working practices. The extent to which business enterprises are really meeting society’s
expectations, and the extent to which they provide meaningful value for society, have been called into question.
This revision of the CSR Code of Conduct has been undertaken to make clear Zeon’s commitment to meeting society’s
expectations, which represents Zeon’s fundamental approach to CSR, and to facilitate the making of improvements to the CSR
activities that Zeon undertakes. In this way, we are redefining, in the clearest possible way, the CSR vision for the Zeon Group as awhole, in line with the ongoing globalization of the Zeon Group’s operations.
In order to realize the Enterprise Blueprint for 2020 and meet society’s expectations, we will be working to achieve theobjectives specified in our CSR Implementation Plan, which represents the practical guidelines for CSR, while continuing toemphasize the Sustainable Development Goals (SDGs) and ISO 26000, which are issues of great importance for society.

3

ZEON GROUPCORPORATE REPORT 2018

Last year, in the process of revising Zeon’s CSR Code of Conduct, we undertook theredefining of Zeon’s CSR vision, which emphasizes “meeting society’s expectations.”
The CSR Implementation Plan outlines the Enterprise Blueprint for 2020 in line with ISO
26000’s Seven Core Subjects, collates the issues that are currently being faced and that
we will be facing in the future, and specifies the direction that we will be taking in terms of
implementing activities in line with society’s needs that are explicitly linked to the SDGs.
While working to realize the Enterprise Blueprint for 2020, all Zeon Group employees
will be demonstrating a firm commitment to the CSR Implementation Plan, so that we canconfidently state that the Zeon Group is indeed meeting society’s expectations.

Erisa Watanabe
Corporate Officer and the CSR Division Manager

ZEON GROUPCORPORATE REPORT 20184

Highlight 2 Zeon Products Making Contributions to Society

Catheters that contribute towards the enhancementof patients’ quality of life throughminimally-invasive treatment

2

3

ZEOSTENTTM plus

1

OptoWire

Extraction Balloon Catheter

When used as a medical term, the word “invasive” refers to something that isharmful to the human body. It is most commonly used to refer to forms of treatmentthat may cause physical harm; in the case of surgical procedures, using a scalpel isinvasive, while in regard to pharmaceuticals, the possible side-effects are invasive.
Minimally-invasive treatment is medical treatment that aims to reduce theinvasiveness of medical procedures as much as possible. One of the best examplesof minimally-invasive treatment is surgery using catheters. With catheter
procedures, only a small incision needs to be made in order to insert a catheter into avein or into the alimentary tract, so by comparison with traditional surgery that required themaking of a large incision in the abdomen, the impact on the body is much reduced.
Because minimally-invasive treatment causes less harm to the patient’s body, it enhances patient
QOL* by reducing the amount of time that patients need to spend in hospital, and it can also be
expected to lead to reduced medical expenses. Zeon Medical Inc., a member of the Zeon Group whichis engaged in the manufacturing and sale of medical devices, is contributing towards the expansion ofminimally-invasive treatment by developing a range of products, including catheters, in its
Cardiovascular and Endoscopic Accessory Businesses.
*QOL: Quality of Life

®

Heart

Heart diseases such as myocardial infarction and angina are caused when arteries(Cardiovascular Business)

OptoMonitorⓇ for inter-arterial measurement of
intravascular pressure
OptoWireⓇ, a sensor-equipped guide-wire formeasuring intravascular pressure

Measuring the intravascular pressure of coronary arteries allows quantitative
diagnosis of the extent of arterial blockage.
OptoWireⓇ is the world’s first guide-wire type product to incorporate afiberoptic sensor. This facilitates more precise measurement and more accurate
diagnosis. The small touch-panel display design used for OptoMonitorⓇ makes it
possible to carry out measurements regardless of the location.

Helping the heart to function properly●The size of the Japanese medical device market

MEISHUTM for IABP*
Using a balloon that expands and contracts in line with the rhythm of the heart
can provide temporary support for weakened heart pumping function. The utilizationof helium gas for the balloon ensures that the balloon can be rapidly expanded andcontracted safely.
MEISHUTM is relatively short and thick by comparison with conventional products,
which makes it easier to have it expand and contract in close proximity to the heart,
thereby enhancing the supporting function while maintaining safety.
*IABP: Intra-Aortic Balloon Pumping(100 million JPY)

27,4785,304

20,00015,000

5,692

6,378

5,173

4,920
5,703

5,968

6,782

6,963

13,85014,103

7,036

6,113

14,853

14,987

6,124

5,536

10,00011,304

12,506

12,563

2009

2010

2011

5,000
0

2012

2013

2014

Driving device

Since the deviceis shorter thanconventional
products, it isless likely tonegatively impact
other arteries

Alimentary Tract(Endoscopic Business)internal organs from the inside. An endoscope can guide a catheter into the body, sothat treatment can be performed while being able to clearly view what is going on.
Zeon Medical’s products are widely used for removing polyps or cancerous tumors
from the aliementary tract, for staunching bleeding after operations, for crushing andremoving bile duct stones from the bile duct, and for easing blockage of the bile duct.

2 Easing blockage of the bile duct 3 Removing bile duct stones
ZEOSTENT TM plus for bile duct

30,000

Balloon component

Endoscopes can be inserted into the alimentary tract, making it possible to view theThe overall size of the global medical device market—including catheters—in 2016 was 36 trillion yen. The U.S. market accounts for over
40% of this total; Japan is the second largest national market, with a market size in excess of 2.7 trillion yen in 2015. The overall rate of growthof the Japanese market has been held back because of the periodic adjustments made to pharmaceuticals pricing in Japan, but in absoluteterms the trend is one of continued growth.
There is high demand for minimally-invasive treatment, which contributes to a reduction in overall healthcare expenses while also helping to
improve patients’ quality of life, and Zeon Medical’s business is expected to grow not only in Japan, but also in the wider global market.

4,946

used in the diagnosis and treatment of arterial blockage.

1 Measuring intravascular pressure

The Medical Device Market and Zeon Medical Inc.

25,000running on the heart narrow and become obstructed. Zeon Medical’s products are widely■Other medical
devices■Diagnostic medical
devices
Includes OptoWire®
etc.
■Therapeutic medical
devices
Includes stents,
balloon catheters,
etc.

2015

A stent is a small mesh-like metal tube that is used to expand anartery, trachea, alimentary tract, bile duct etc. from the inside. By
placing a stent in the bile duct, it is possible to ease blockage of thebile duct and allow bile to flow more easily.
ZEOSTENTTM plus is made using shape-memory alloy so that it
expands by body temperature warming, making it easier to position.
The special mesh-like structure enables the stent to maintain its
tubular shape even inside the curving bile duct.
The device used to position the stent incorporates special featuresthat make it easy to use, and as a result the stent has been very
positively received by medical practitioners.

The mesh structure
allows the tubular
shape to be maintainedeven when bent.

The Extraction Balloon Catheter for removing
bile duct stones
The balloon at the end of the catheter is inflated inside the bile
duct to crush a stone stuck in the bile duct.
Zeon Medical’s balloon catheters have been speciallydesigned—in terms of balloon size, shape, and water-squirting
capability—to enhance their ability to extract stones. In particular,
Zeon Medical’s original patented technology allows the balloon
to be positioned at an angle.

The balloon at the endof the catheter is inflated
inside the bile duct to crape
out the stones.

Source: Ministry of Health, Labour and Welfare (MHLW), “Statistics of Production by Pharmaceutical Industry”

5

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 20186

Highlight 2 Zeon Products Making Contributions to Society

Catheters that contribute towards the enhancementof patients’ quality of life throughminimally-invasive treatment

2

3

ZEOSTENTTM plus

1

OptoWire

Extraction Balloon Catheter

When used as a medical term, the word “invasive” refers to something that isharmful to the human body. It is most commonly used to refer to forms of treatmentthat may cause physical harm; in the case of surgical procedures, using a scalpel isinvasive, while in regard to pharmaceuticals, the possible side-effects are invasive.
Minimally-invasive treatment is medical treatment that aims to reduce theinvasiveness of medical procedures as much as possible. One of the best examplesof minimally-invasive treatment is surgery using catheters. With catheter
procedures, only a small incision needs to be made in order to insert a catheter into avein or into the alimentary tract, so by comparison with traditional surgery that required themaking of a large incision in the abdomen, the impact on the body is much reduced.
Because minimally-invasive treatment causes less harm to the patient’s body, it enhances patient
QOL* by reducing the amount of time that patients need to spend in hospital, and it can also be
expected to lead to reduced medical expenses. Zeon Medical Inc., a member of the Zeon Group whichis engaged in the manufacturing and sale of medical devices, is contributing towards the expansion ofminimally-invasive treatment by developing a range of products, including catheters, in its
Cardiovascular and Endoscopic Accessory Businesses.
*QOL: Quality of Life

®

Heart

Heart diseases such as myocardial infarction and angina are caused when arteries(Cardiovascular Business)

OptoMonitorⓇ for inter-arterial measurement of
intravascular pressure
OptoWireⓇ, a sensor-equipped guide-wire formeasuring intravascular pressure

Measuring the intravascular pressure of coronary arteries allows quantitative
diagnosis of the extent of arterial blockage.
OptoWireⓇ is the world’s first guide-wire type product to incorporate afiberoptic sensor. This facilitates more precise measurement and more accurate
diagnosis. The small touch-panel display design used for OptoMonitorⓇ makes it
possible to carry out measurements regardless of the location.

Helping the heart to function properly●The size of the Japanese medical device market

MEISHUTM for IABP*
Using a balloon that expands and contracts in line with the rhythm of the heart
can provide temporary support for weakened heart pumping function. The utilizationof helium gas for the balloon ensures that the balloon can be rapidly expanded andcontracted safely.
MEISHUTM is relatively short and thick by comparison with conventional products,
which makes it easier to have it expand and contract in close proximity to the heart,
thereby enhancing the supporting function while maintaining safety.
*IABP: Intra-Aortic Balloon Pumping(100 million JPY)

27,4785,304

20,00015,000

5,692

6,378

5,173

4,920
5,703

5,968

6,782

6,963

13,85014,103

7,036

6,113

14,853

14,987

6,124

5,536

10,00011,304

12,506

12,563

2009

2010

2011

5,000
0

2012

2013

2014

Driving device

Since the deviceis shorter thanconventional
products, it isless likely tonegatively impact
other arteries

Alimentary Tract(Endoscopic Business)internal organs from the inside. An endoscope can guide a catheter into the body, sothat treatment can be performed while being able to clearly view what is going on.
Zeon Medical’s products are widely used for removing polyps or cancerous tumors
from the aliementary tract, for staunching bleeding after operations, for crushing andremoving bile duct stones from the bile duct, and for easing blockage of the bile duct.

2 Easing blockage of the bile duct 3 Removing bile duct stones
ZEOSTENT TM plus for bile duct

30,000

Balloon component

Endoscopes can be inserted into the alimentary tract, making it possible to view theThe overall size of the global medical device market—including catheters—in 2016 was 36 trillion yen. The U.S. market accounts for over
40% of this total; Japan is the second largest national market, with a market size in excess of 2.7 trillion yen in 2015. The overall rate of growthof the Japanese market has been held back because of the periodic adjustments made to pharmaceuticals pricing in Japan, but in absoluteterms the trend is one of continued growth.
There is high demand for minimally-invasive treatment, which contributes to a reduction in overall healthcare expenses while also helping to
improve patients’ quality of life, and Zeon Medical’s business is expected to grow not only in Japan, but also in the wider global market.

4,946

used in the diagnosis and treatment of arterial blockage.

1 Measuring intravascular pressure

The Medical Device Market and Zeon Medical Inc.

25,000running on the heart narrow and become obstructed. Zeon Medical’s products are widely■Other medical
devices■Diagnostic medical
devices
Includes OptoWire®
etc.
■Therapeutic medical
devices
Includes stents,
balloon catheters,
etc.

2015

A stent is a small mesh-like metal tube that is used to expand anartery, trachea, alimentary tract, bile duct etc. from the inside. By
placing a stent in the bile duct, it is possible to ease blockage of thebile duct and allow bile to flow more easily.
ZEOSTENTTM plus is made using shape-memory alloy so that it
expands by body temperature warming, making it easier to position.
The special mesh-like structure enables the stent to maintain its
tubular shape even inside the curving bile duct.
The device used to position the stent incorporates special featuresthat make it easy to use, and as a result the stent has been very
positively received by medical practitioners.

The mesh structure
allows the tubular
shape to be maintainedeven when bent.

The Extraction Balloon Catheter for removing
bile duct stones
The balloon at the end of the catheter is inflated inside the bile
duct to crush a stone stuck in the bile duct.
Zeon Medical’s balloon catheters have been speciallydesigned—in terms of balloon size, shape, and water-squirting
capability—to enhance their ability to extract stones. In particular,
Zeon Medical’s original patented technology allows the balloon
to be positioned at an angle.

The balloon at the endof the catheter is inflated
inside the bile duct to crape
out the stones.

Source: Ministry of Health, Labour and Welfare (MHLW), “Statistics of Production by Pharmaceutical Industry”

5

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 20186

Zeon Products Making Contributions to Society

Zeon material and products
making contributions tosociety

Improved
Performance

Using Zeon’s materials
and components cangreatly improve
product performance.

The value created by Zeon’s materials and products contribute to society in many ways.
Here are just a few examples.

GlobalEnvironment

Improved performance and extended life of manufacturers’ products madewith Zeon’s materials and components contribute to reducing environmental
impacts through such ways as energy conservation, mitigating climatechange, and reducing waste.

Solution-polymerized
styrene-butadiene rubber(S-SBR):

Biosynthetic
epichlorohydrin rubber(ECO):

Improves the performance of
fuel-efficient tires andcontributes to energy
conservation and reduced CO2
emissions.

The first biosynthetic rubber
adopted in automotive vacuum
sensing hoses. Contributes toreduced lifecycle CO2
emissions by switching fossil
fuel-derived materials toplant-derived materials.

The raw materials are derived
from fossil fuels but have thesame chemical structure as
natural aromas. They are usedin foods, cosmetics, and otherproducts.

ZeonorFilm
Optical film:TM

ZeonorFilmTM optical film contributes to improved display
performance by combining ZEONOR® resin properties
including transparency and low water absorption with
our world-first sheet extrusion process, film stretching
technology, and other film processing technologies.

Pad-type thermal interface material (TIM):
TIM using rubber/single-walled carbon nanotube(ZEONANO®) composite achieves low thermal resistance.
It increases the thermal conductivity of the heat sinkand resolves the heat generation problem of servers
and power devices.

Zeon’s binders prevent electrode volume
expansion and greatly improve cell life. They
also increase the chemical reactions on thesurface of the active materials to increase
battery output.

ZEORORAⓇ H
HFC solvent:Contributes to climate change
prevention as an alternative
HFC solvent.

ZEORORA Ⓡ
Etching gas for oxide layers:
Contributes to climate change
prevention as an etching gas
with low global warming
potential.

7

ZEON GROUPCORPORATE REPORT 2018

OMe

SIS thermoplastic
elastomer:
Used in elastic film fordisposable diapers to achieve
lighter weight and greater
comfort.

Synthetic latex for gloves:
Due to concern about allergic
reactions from proteins foundin natural rubber, demand is
shifting from natural tosynthetic rubber gloves madewith NBR latex and the market
is expanding.

Cyclo olefin polymers:

ZEOCOAT TM
Coating-type insulating andprotective layer for displays:

Reduces declines in the production
volume and quality of agricultural
products due to the effects of climatechange (JasmomateTM Ekizai
agrochemical formulation).

Zeon’s materials, components,
and products are useful indaily life and benefit healthand well-being.
Synthetic aroma chemicals:

Energy materials:

Prohydrojasmon
plant growth regulator:

Health and
LivingWith high transparency, lowmoisture absorption, and low
dielectric constant, contributes toreduced environmental impacts byimproving display performanceand extending the life of electronics
components.

Cyclopentyl methyl ether(CPME)
Hydrophobic ether solvent:Low environmental impact
since it is easily recovered after
use as a solvent and little isdisposed of in wastewater.

COP are used in prefilled
medical syringes andcontribute to increased safety
in medical settings. With
properties including lightweight, high strength,transparency, high purity, andlow protein adsorption.

ZEOGLOBULETM
Polymerized toner:
The world’s firstindustrialized polymerized
toner. Contributes toimproving resolution andprint speed with its
uniform spherical capsule
structure.

Intravascular pressure-sensing guidewires andmonitors:
Zeon’s guidewires help lessen
patients’ pain and healthcare
professionals’ workloads,
because treatment decisions
can be accurately made using
sensors and a monitor.

Catheters for removal ofbile duct stones:
Zeon’s catheters help lessen
patients’ pain and healthcare
professionals’ workloads, witha strong reputation intreatment to remove bile ductstones.

ZEON GROUPCORPORATE REPORT 20188

Zeon Products Making Contributions to Society

Zeon material and products
making contributions tosociety

Improved
Performance

Using Zeon’s materials
and components cangreatly improve
product performance.

The value created by Zeon’s materials and products contribute to society in many ways.
Here are just a few examples.

GlobalEnvironment

Improved performance and extended life of manufacturers’ products madewith Zeon’s materials and components contribute to reducing environmental
impacts through such ways as energy conservation, mitigating climatechange, and reducing waste.

Solution-polymerized
styrene-butadiene rubber(S-SBR):

Biosynthetic
epichlorohydrin rubber(ECO):

Improves the performance of
fuel-efficient tires andcontributes to energy
conservation and reduced CO2
emissions.

The first biosynthetic rubber
adopted in automotive vacuum
sensing hoses. Contributes toreduced lifecycle CO2
emissions by switching fossil
fuel-derived materials toplant-derived materials.

The raw materials are derived
from fossil fuels but have thesame chemical structure as
natural aromas. They are usedin foods, cosmetics, and otherproducts.

ZeonorFilm
Optical film:TM

ZeonorFilmTM optical film contributes to improved display
performance by combining ZEONOR® resin properties
including transparency and low water absorption with
our world-first sheet extrusion process, film stretching
technology, and other film processing technologies.

Pad-type thermal interface material (TIM):
TIM using rubber/single-walled carbon nanotube(ZEONANO®) composite achieves low thermal resistance.
It increases the thermal conductivity of the heat sinkand resolves the heat generation problem of servers
and power devices.

Zeon’s binders prevent electrode volume
expansion and greatly improve cell life. They
also increase the chemical reactions on thesurface of the active materials to increase
battery output.

ZEORORAⓇ H
HFC solvent:Contributes to climate change
prevention as an alternative
HFC solvent.

ZEORORA Ⓡ
Etching gas for oxide layers:
Contributes to climate change
prevention as an etching gas
with low global warming
potential.

7

ZEON GROUPCORPORATE REPORT 2018

OMe

SIS thermoplastic
elastomer:
Used in elastic film fordisposable diapers to achieve
lighter weight and greater
comfort.

Synthetic latex for gloves:
Due to concern about allergic
reactions from proteins foundin natural rubber, demand is
shifting from natural tosynthetic rubber gloves madewith NBR latex and the market
is expanding.

Cyclo olefin polymers:

ZEOCOAT TM
Coating-type insulating andprotective layer for displays:

Reduces declines in the production
volume and quality of agricultural
products due to the effects of climatechange (JasmomateTM Ekizai
agrochemical formulation).

Zeon’s materials, components,
and products are useful indaily life and benefit healthand well-being.
Synthetic aroma chemicals:

Energy materials:

Prohydrojasmon
plant growth regulator:

Health and
LivingWith high transparency, lowmoisture absorption, and low
dielectric constant, contributes toreduced environmental impacts byimproving display performanceand extending the life of electronics
components.

Cyclopentyl methyl ether(CPME)
Hydrophobic ether solvent:Low environmental impact
since it is easily recovered after
use as a solvent and little isdisposed of in wastewater.

COP are used in prefilled
medical syringes andcontribute to increased safety
in medical settings. With
properties including lightweight, high strength,transparency, high purity, andlow protein adsorption.

ZEOGLOBULETM
Polymerized toner:
The world’s firstindustrialized polymerized
toner. Contributes toimproving resolution andprint speed with its
uniform spherical capsule
structure.

Intravascular pressure-sensing guidewires andmonitors:
Zeon’s guidewires help lessen
patients’ pain and healthcare
professionals’ workloads,
because treatment decisions
can be accurately made using
sensors and a monitor.

Catheters for removal ofbile duct stones:
Zeon’s catheters help lessen
patients’ pain and healthcare
professionals’ workloads, witha strong reputation intreatment to remove bile ductstones.

ZEON GROUPCORPORATE REPORT 20188

Company Profile
Name: Zeon Corporation
Established: April 12, 1950
Capital: 24.211 billion yen (as of March 31, 2018)
Market capitalization: 364.6 billion yen (as of March 31, 2018)
Total number of shares outstanding: 237,075,556 shares
Employees: 3,328 (consolidated)
1,600 (non-consolidated) (as of March 31, 2018)
Business segments: Elastomer Business, Specialty Materials
Business, other businesses（➡P.13）
Head Office: Shin Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
Plants: Takaoka Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Research laboratories: R&D Center (Kawasaki)
Offices: Osaka Office, Nagoya Office

Consolidated net sales

Shareholder information (as of March 31, 2018)(million JPY)

350,000
300,000

296,427

332,682

307,524

295,647

287,624

Treasury stock(JPY)

15,054,000 shares20（6.4％）

250,000

Individuals & others

200,000（8.8％）

150,000

Foreign investors

100,000（22.1％）

20,766,000 shares

Financial institutions &securities companies

237,075,000
shares15

1390,424,000 shares

14

15

16

17

（38.1％）

10

52,383,000 shares
Other domestic
institutional investors

50,0000

Dividends

58,446,000 shares

2013

2014

2015

2016

（24.6％）

2017 (FY)

5

0

2013

2014

2015

2016

2017 (FY)

Subsidiaries and affiliates in Japan（➡P.17）：
Tokyo Zairyo Co., Ltd., Zeon Kasei Co., Ltd.,
Zeon North Co., Ltd., Zeon Yamaguchi Co., Ltd.,
Zeon F&B Co., Ltd., Zeon Chemicals Yonezawa Co., Ltd.,RIMTEC Corporation, Zeon RIM Co., Ltd.,
Zeon Medical Inc., Optes Inc., TFC Inc.,

Consolidated operating income

Share price (closing price on March 31)(million JPY)

30,00038,881

Subsidiaries and affiliates outside Japan（➡P.15）：

Zeon Chemicals L.P., Zeon Specialty Materials lnc.,【USA】
Tokyo Zairyo (U.S.A.) Inc.
Zeon do Brasil Ltda.
【Brazil】

Zeon Kasei Mexico S.A. de C.V.,【Mexico】

1,538
1,500

29,901

29,85628,245

2,687
2,261

1,110
2,000

1,000

1,725

934
728

500

10,000
0

3,013

3,000

1,271

30,76720,000Tokyo Zairyo Mexico, S.A. de C.V.

3,646

4,000

2,000

40,000

Okayama Butadiene Co., Ltd., ZIS Information Technology Co., Ltd.

(100 million JPY)

(JPY)

50,000

Zeon Polymix Inc., Tohpe Corporation,
Zeon Nano Technology Co., Ltd., ZS Elastomers Co., Ltd.,

Market capitalization (as of March 31)

2013

2014

2015

2016

2017 (FY)

0

2013

2014

2015

1,000

2016

2017 (FY)

0

2013

2014

2015

2016

2017 (FY)

Zeon Europe GmbH, Telene S.A.S.
【Europe】

Zeon (Shanghai) Co., Ltd., Zeon Trading (Shanghai) Co., Ltd.,【China】
Shanghai Zeon Co., Ltd., Zeon Polymix (Guangzhou) Co., Ltd.,
Takehara Zeon (Shanghai) Co., Ltd., Zeon Kasei (Changshu) Co., Ltd.,
Zeon Medical (Guangzhou) Inc., Tokyo Zairyo (Shanghai) Co., Ltd.,Tokyo Zairyo (Tianjin) Co., Ltd., Tokyo Zairyo (Guangzhou) Co., Ltd.
Zeon Korea Co., Ltd., Zeon Shinhwa (Zeshin) Inc.
【South Korea】

Segment net sales (outer circle) and operating income (inner circle)

Zeon Asia Pte. Ltd., Tokyo Zairyo (Singapore) Pte. Ltd.
Zeon Asia Malaysia Sdn. Bhd.
【Malaysia】
Zeon India Private Limited,【India】

Tokyo Zairyo (India) Pvt, Ltd.
Zeon Chemicals (Thailand) Co., Ltd.,【Thailand】
Zeon Advanced Polymix Co., Ltd.,Tokyo Zairyo (Thailand) Co., Ltd.

1.00
1.00

Other Businesses

16%

Specialty Materials
Business

26%

8
40%

900

0.95

0.95
0.95
%

FY

2017

0.91

0.90
0.90
0.85
0.85

52%

Elastomer Business

58%

0.82

0.93

Tokyo Zairyo (Vietnam) LLC.

800
700

0.85

640

675

724

770
655

600
500

0.80
0.80

400

0.75
0.75

300

0.70
0.70

200

Zeon Manufacturing Vietnam Co., Ltd.,【Vietnam】
Zeon Research Vietnam Co., Ltd.,CO2 emissions (including Zeon Group inside and outside Japan)(1,000 tons)(crude oil equivalent, kL /million JPY)

Zeon CSC Corporation, Zeon Taiwan Co., Ltd.
【Taiwan】

Zeon Chemicals Singapore Pte. Ltd.,【Singapore】

Energy use per net sales（Zeon Group inside and outside Japan）

100
0

2013

2014

2015

2016

2017 (FY)

0

2013

2014

2015

2016

2017 (FY)

PT. Tokyo Zairyo Indonesia【Indonesia】

9

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201810

Company Profile
Name: Zeon Corporation
Established: April 12, 1950
Capital: 24.211 billion yen (as of March 31, 2018)
Market capitalization: 364.6 billion yen (as of March 31, 2018)
Total number of shares outstanding: 237,075,556 shares
Employees: 3,328 (consolidated)
1,600 (non-consolidated) (as of March 31, 2018)
Business segments: Elastomer Business, Specialty Materials
Business, other businesses（➡P.13）
Head Office: Shin Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
Plants: Takaoka Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Research laboratories: R&D Center (Kawasaki)
Offices: Osaka Office, Nagoya Office

Consolidated net sales

Shareholder information (as of March 31, 2018)(million JPY)

350,000
300,000

296,427

332,682

307,524

295,647

287,624

Treasury stock(JPY)

15,054,000 shares20（6.4％）

250,000

Individuals & others

200,000（8.8％）

150,000

Foreign investors

100,000（22.1％）

20,766,000 shares

Financial institutions &securities companies

237,075,000
shares15

1390,424,000 shares

14

15

16

17

（38.1％）

10

52,383,000 shares
Other domestic
institutional investors

50,0000

Dividends

58,446,000 shares

2013

2014

2015

2016

（24.6％）

2017 (FY)

5

0

2013

2014

2015

2016

2017 (FY)

Subsidiaries and affiliates in Japan（➡P.17）：
Tokyo Zairyo Co., Ltd., Zeon Kasei Co., Ltd.,
Zeon North Co., Ltd., Zeon Yamaguchi Co., Ltd.,
Zeon F&B Co., Ltd., Zeon Chemicals Yonezawa Co., Ltd.,RIMTEC Corporation, Zeon RIM Co., Ltd.,
Zeon Medical Inc., Optes Inc., TFC Inc.,

Consolidated operating income

Share price (closing price on March 31)(million JPY)

30,00038,881

Subsidiaries and affiliates outside Japan（➡P.15）：

Zeon Chemicals L.P., Zeon Specialty Materials lnc.,【USA】
Tokyo Zairyo (U.S.A.) Inc.
Zeon do Brasil Ltda.
【Brazil】

Zeon Kasei Mexico S.A. de C.V.,【Mexico】

1,538
1,500

29,901

29,85628,245

2,687
2,261

1,110
2,000

1,000

1,725

934
728

500

10,000
0

3,013

3,000

1,271

30,76720,000Tokyo Zairyo Mexico, S.A. de C.V.

3,646

4,000

2,000

40,000

Okayama Butadiene Co., Ltd., ZIS Information Technology Co., Ltd.

(100 million JPY)

(JPY)

50,000

Zeon Polymix Inc., Tohpe Corporation,
Zeon Nano Technology Co., Ltd., ZS Elastomers Co., Ltd.,

Market capitalization (as of March 31)

2013

2014

2015

2016

2017 (FY)

0

2013

2014

2015

1,000

2016

2017 (FY)

0

2013

2014

2015

2016

2017 (FY)

Zeon Europe GmbH, Telene S.A.S.
【Europe】

Zeon (Shanghai) Co., Ltd., Zeon Trading (Shanghai) Co., Ltd.,【China】
Shanghai Zeon Co., Ltd., Zeon Polymix (Guangzhou) Co., Ltd.,
Takehara Zeon (Shanghai) Co., Ltd., Zeon Kasei (Changshu) Co., Ltd.,
Zeon Medical (Guangzhou) Inc., Tokyo Zairyo (Shanghai) Co., Ltd.,Tokyo Zairyo (Tianjin) Co., Ltd., Tokyo Zairyo (Guangzhou) Co., Ltd.
Zeon Korea Co., Ltd., Zeon Shinhwa (Zeshin) Inc.
【South Korea】

Segment net sales (outer circle) and operating income (inner circle)

Zeon Asia Pte. Ltd., Tokyo Zairyo (Singapore) Pte. Ltd.
Zeon Asia Malaysia Sdn. Bhd.
【Malaysia】
Zeon India Private Limited,【India】

Tokyo Zairyo (India) Pvt, Ltd.
Zeon Chemicals (Thailand) Co., Ltd.,【Thailand】
Zeon Advanced Polymix Co., Ltd.,Tokyo Zairyo (Thailand) Co., Ltd.

1.00
1.00

Other Businesses

16%

Specialty Materials
Business

26%

8
40%

900

0.95

0.95
0.95
%

FY

2017

0.91

0.90
0.90
0.85
0.85

52%

Elastomer Business

58%

0.82

0.93

Tokyo Zairyo (Vietnam) LLC.

800
700

0.85

640

675

724

770
655

600
500

0.80
0.80

400

0.75
0.75

300

0.70
0.70

200

Zeon Manufacturing Vietnam Co., Ltd.,【Vietnam】
Zeon Research Vietnam Co., Ltd.,CO2 emissions (including Zeon Group inside and outside Japan)(1,000 tons)(crude oil equivalent, kL /million JPY)

Zeon CSC Corporation, Zeon Taiwan Co., Ltd.
【Taiwan】

Zeon Chemicals Singapore Pte. Ltd.,【Singapore】

Energy use per net sales（Zeon Group inside and outside Japan）

100
0

2013

2014

2015

2016

2017 (FY)

0

2013

2014

2015

2016

2017 (FY)

PT. Tokyo Zairyo Indonesia【Indonesia】

9

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201810

Zeon Group History
Starting from PVC and synthetic rubber production
Zeon Corporation was founded as a PVC manufacturer in
1950, established with capital from three Furukawa groupcompanies—Furukawa Electric, Yokohama Rubber, andNippon Light Metal. Zeon acquired its PVC manufacturing
technologies from U.S.-based B.F. Goodrich Chemical
Company, which at the time was the global leader in theindustry. Zeon continued developing the PVC business fromits founding until full withdrawal in 2000.
In 1959, Zeon acquired technologies from B.F. Goodrich
Chemical Company to operate a special synthetic rubber(NBR) plant. This was Japan’s first domestic synthetic rubber
plant. Following this, Zeon embarked on the production ofgeneral-purpose synthetic rubber (SBR). Zeon thus
established its Synthetic Rubber Business for tires and engine
components, which it continues to manufacture today.

Timeline of main businesses
and product development

World-leading C4 and C5 technologies with GPB and GPIprocesses
In the petrochemical industry, which uses crude oil as araw material, technological capabilities are a key element
impacting company competitiveness. Zeon developed the
GPB process in 1965 to efficiently extract high-grade
butadiene, which is the raw material used in synthetic rubber
production, from C4 fractions. In 1971, Zeon developed the
GPI process to efficiently extract isoprene, the raw material in
isoprene rubber, and other useful components, from C5
fractions.
Zeon licenses its proprietary GPB process technology incountries around the world. This greatly contributes to Zeon’scompetitive edge and promotes the Zeon brand globally.

1960

1970

1980

Processed
Products

Developing comprehensive uses for C5 fractions
Isoprene rubber is a useful material with the same chemical
stability as natural rubber. Many byproducts are derived fromthe process of extracting isoprene feedstock from C5
fractions. One advantage of the GPI process is the ability to
extract these byproducts at a high degree of purity. Zeon has
focused on ways to effectively use these substances. As aresult, Zeon subsequently grew its business to include
petroleum resins and thermoplastic elastomer SIS in the
1980s, synthetic aroma chemicals and RIM molded productsin the 1990s, and Cyclo olefin polymers since the 2000s.
These businesses now enjoy a large share of the global
market. The technologies gained during this development
process are being used in other areas in addition to C5
fractions.

1990

Developing more advanced materials and establishingleading manufacturing technologies
In recent years, there has been growing demand for productswith advanced functions that can contribute towards solving the
problems affecting society, and similar expectations are rising forchemical materials. To meet these expectations, Zeon’s Synthetic
Rubber Business developed Zetpol® hydrogenated nitrile rubber,which provides high functionality at a competitive cost and isused in automotive engine components and other applications
with demanding working conditions. Cyclo olefin polymers,
developed from comprehensive use of C5 fractions, are highperformance materials used in optical films and lenses, and inelectrical insulation.
Single-walled carbon nanotubes (SWCNT), in compoundswith other materials such as rubber, are able to demonstratenovel properties and performance. Zeon Corporation has
become the first company in the world to use the Super-Growthmethod for mass production of SWCNT.

2000

2010

Enhanced low-temperature PSC(automobile instrument panels)

Powder slush compounds (PSC)
PVC business withdrawal

Polyvinyl chloride resins

Medical
Devices

Latex(for paper coating)

VP latex(tire cord)

Stents (bile ducts sheath)

NBR latex(gloves)

Hollow latex(paper coating)

EnergyMaterials

Solvent-based cathodebinder for mobile LIB

Functional layerbinder for mobile LIB

Hydrogenated NBR(Zetpol®)

General-purpose synthetic rubberwith modified terminals

Water-based
cathode binders

Low-temperature fixing toner(high-speed printers)

Solution-SBR(fuel-efficient tires)Light-color petroleum resin(adhesives for diaper)

C5 petroleum resin(roadmarking paints)

Isoprene rubber(tires)Specialty
Chemicals

Water-based anodebinders for large-capacity
mobile batteries

Polymerized color toner

Polymerized toner&
Chemicals

Anode and functional
layer binder for
automobile LIB

Heat-resistant H-NBR (Zetpol®)Heat-resistant acrylic rubber

Toner

Synthetic Rubbers for Tires(SBR & BR for tires)

4 core catheter products

Water-based anodebinder for mobile LIB*
*LIB：
Lithium-ion batteriesSpecialty Synthetic Rubbers(NBR & ACM for auto parts)&

Balloon catheters (IABP)

Ventricular assist device

SIS thermoplastic elastomer(adhesives)

Synthetic aroma chemicals(leaf alcohol)

Synthetic aroma chemicals(jasmine aroma chemicals)

Asymmetric SIS(elastic film for diaper)

Fluorinated C5

Electronics Materials

Cyclopentanone(solvent and fine chemical raw material)

Photo resists

Cyclopentyl methyl ether (CPME)(eco-friendly solvent)Insulation materials

LCD resists for large sized wafers

Specialty Plastics
Cyclo olefin polymers(lenses, prisms)

Dicyclopentadiene

Cyclo olefin polymers(commodity use)

Optical Films
RIM

Cyclo olefin polymers(blue laser)

Melt extrusion
process

Retardation films
by successive
stretching process

Retardation films
by diagonal
stretching process

High thermostability film
by diagonal stretching process(touch panels)

RIM molded items and formulation(large plastic products)

CNT
Super Growth Carbon Nanotube

11

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201812

Zeon Group History
Starting from PVC and synthetic rubber production
Zeon Corporation was founded as a PVC manufacturer in
1950, established with capital from three Furukawa groupcompanies—Furukawa Electric, Yokohama Rubber, andNippon Light Metal. Zeon acquired its PVC manufacturing
technologies from U.S.-based B.F. Goodrich Chemical
Company, which at the time was the global leader in theindustry. Zeon continued developing the PVC business fromits founding until full withdrawal in 2000.
In 1959, Zeon acquired technologies from B.F. Goodrich
Chemical Company to operate a special synthetic rubber(NBR) plant. This was Japan’s first domestic synthetic rubber
plant. Following this, Zeon embarked on the production ofgeneral-purpose synthetic rubber (SBR). Zeon thus
established its Synthetic Rubber Business for tires and engine
components, which it continues to manufacture today.

Timeline of main businesses
and product development

World-leading C4 and C5 technologies with GPB and GPIprocesses
In the petrochemical industry, which uses crude oil as araw material, technological capabilities are a key element
impacting company competitiveness. Zeon developed the
GPB process in 1965 to efficiently extract high-grade
butadiene, which is the raw material used in synthetic rubber
production, from C4 fractions. In 1971, Zeon developed the
GPI process to efficiently extract isoprene, the raw material in
isoprene rubber, and other useful components, from C5
fractions.
Zeon licenses its proprietary GPB process technology incountries around the world. This greatly contributes to Zeon’scompetitive edge and promotes the Zeon brand globally.

1960

1970

1980

Processed
Products

Developing comprehensive uses for C5 fractions
Isoprene rubber is a useful material with the same chemical
stability as natural rubber. Many byproducts are derived fromthe process of extracting isoprene feedstock from C5
fractions. One advantage of the GPI process is the ability to
extract these byproducts at a high degree of purity. Zeon has
focused on ways to effectively use these substances. As aresult, Zeon subsequently grew its business to include
petroleum resins and thermoplastic elastomer SIS in the
1980s, synthetic aroma chemicals and RIM molded productsin the 1990s, and Cyclo olefin polymers since the 2000s.
These businesses now enjoy a large share of the global
market. The technologies gained during this development
process are being used in other areas in addition to C5
fractions.

1990

Developing more advanced materials and establishingleading manufacturing technologies
In recent years, there has been growing demand for productswith advanced functions that can contribute towards solving the
problems affecting society, and similar expectations are rising forchemical materials. To meet these expectations, Zeon’s Synthetic
Rubber Business developed Zetpol® hydrogenated nitrile rubber,which provides high functionality at a competitive cost and isused in automotive engine components and other applications
with demanding working conditions. Cyclo olefin polymers,
developed from comprehensive use of C5 fractions, are highperformance materials used in optical films and lenses, and inelectrical insulation.
Single-walled carbon nanotubes (SWCNT), in compoundswith other materials such as rubber, are able to demonstratenovel properties and performance. Zeon Corporation has
become the first company in the world to use the Super-Growthmethod for mass production of SWCNT.

2000

2010

Enhanced low-temperature PSC(automobile instrument panels)

Powder slush compounds (PSC)
PVC business withdrawal

Polyvinyl chloride resins

Medical
Devices

Latex(for paper coating)

VP latex(tire cord)

Stents (bile ducts sheath)

NBR latex(gloves)

Hollow latex(paper coating)

EnergyMaterials

Solvent-based cathodebinder for mobile LIB

Functional layerbinder for mobile LIB

Hydrogenated NBR(Zetpol®)

General-purpose synthetic rubberwith modified terminals

Water-based
cathode binders

Low-temperature fixing toner(high-speed printers)

Solution-SBR(fuel-efficient tires)Light-color petroleum resin(adhesives for diaper)

C5 petroleum resin(roadmarking paints)

Isoprene rubber(tires)Specialty
Chemicals

Water-based anodebinders for large-capacity
mobile batteries

Polymerized color toner

Polymerized toner&
Chemicals

Anode and functional
layer binder for
automobile LIB

Heat-resistant H-NBR (Zetpol®)Heat-resistant acrylic rubber

Toner

Synthetic Rubbers for Tires(SBR & BR for tires)

4 core catheter products

Water-based anodebinder for mobile LIB*
*LIB：
Lithium-ion batteriesSpecialty Synthetic Rubbers(NBR & ACM for auto parts)&

Balloon catheters (IABP)

Ventricular assist device

SIS thermoplastic elastomer(adhesives)

Synthetic aroma chemicals(leaf alcohol)

Synthetic aroma chemicals(jasmine aroma chemicals)

Asymmetric SIS(elastic film for diaper)

Fluorinated C5

Electronics Materials

Cyclopentanone(solvent and fine chemical raw material)

Photo resists

Cyclopentyl methyl ether (CPME)(eco-friendly solvent)Insulation materials

LCD resists for large sized wafers

Specialty Plastics
Cyclo olefin polymers(lenses, prisms)

Dicyclopentadiene

Cyclo olefin polymers(commodity use)

Optical Films
RIM

Cyclo olefin polymers(blue laser)

Melt extrusion
process

Retardation films
by successive
stretching process

Retardation films
by diagonal
stretching process

High thermostability film
by diagonal stretching process(touch panels)

RIM molded items and formulation(large plastic products)

CNT
Super Growth Carbon Nanotube

11

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201812

Business Overview
Zeon’s main products are created from raw materials such as butadiene and isoprene, which are extracted from the C4 and C5
fractions of naphtha using proprietary Zeon technologies. Business segments are divided into the Elastomer Business, Specialty Materials
Business, and other businesses.

C2 fractions Ethylene
C3 fractions Propylene

Main Products
Synthetic rubbers

GPB
process

Automobile
components

Business Segments
Elastomer Business

Tires

Butadiene
Gloves for medical use
and food processing

Synthetic rubbers

Automobile
components

Thermoplastic
elastomers

Adhesives

Petroleum resins

Adhesives

Petroleum resins

Paints/coatings, Inks

RIM compound

Housing equipment
and components

Specialty plastics

LensesCosmetic
puffs
Elastomer Business

Synthetic latexes

Tires

Isoprene

Crude oil

NaphthaProprietary Zeon technology used
to extract highly pure butadienefrom C4 fractions

In 1959, Zeon became the firstcompany in Japan tomass-produce synthetic
rubbers. The Elastomer
Business is a core businessarea, providing over 50% of total
net sales and operating income.
Main products
Synthetic rubbers, synthetic
latexes, chemical products(thermoplastic elastomers,
petroleum resins)

Traffic paints

Piperylene

GPI
process

Dicyclopentadiene

Proprietary Zeon technology used
to extract isoprene and otherhighly-pure, useful components
from C5 fractions

Specialty Materials
Business

Medicalcontainers

Optical films

Fragrances

Electronics materials

Electronics materials

Energy materials

Binders for lithium-ion rechargeable batteries

Medical devices

Medical catheters

Carbon nanotubes

Single-walled carbon nanotubes,
composite materials

Food additives

Toner

Other

Synthetic aroma
chemicals

Specialty Materials Business

2-butyne

Large-size
molding

Other

C5
fractions

Specialty materials refer tomaterials and components withhigh added value that have amacromolecular design and aremade with processing
technology. The three key
business areas of the Specialty
Materials Business are IT
components, energy
materials, and medical devices.
Main products
Specialty plastics andcomponents, electronics
materials, toners, battery
materials, medical devices

Social value created from C4 and C5

C4
fractionsApplications

P.7

Other Businesses
Engineering, packaging
materials, building
materials, deodorants, RIM
formulation, single-walledcarbon nanotubes,
paints/coatings, trading, etc.

13

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201814

Business Overview
Zeon’s main products are created from raw materials such as butadiene and isoprene, which are extracted from the C4 and C5
fractions of naphtha using proprietary Zeon technologies. Business segments are divided into the Elastomer Business, Specialty Materials
Business, and other businesses.

C2 fractions Ethylene
C3 fractions Propylene

Main Products
Synthetic rubbers

GPB
process

Automobile
components

Business Segments
Elastomer Business

Tires

Butadiene
Gloves for medical use
and food processing

Synthetic rubbers

Automobile
components

Thermoplastic
elastomers

Adhesives

Petroleum resins

Adhesives

Petroleum resins

Paints/coatings, Inks

RIM compound

Housing equipment
and components

Specialty plastics

LensesCosmetic
puffs
Elastomer Business

Synthetic latexes

Tires

Isoprene

Crude oil

NaphthaProprietary Zeon technology used
to extract highly pure butadienefrom C4 fractions

In 1959, Zeon became the firstcompany in Japan tomass-produce synthetic
rubbers. The Elastomer
Business is a core businessarea, providing over 50% of total
net sales and operating income.
Main products
Synthetic rubbers, synthetic
latexes, chemical products(thermoplastic elastomers,
petroleum resins)

Traffic paints

Piperylene

GPI
process

Dicyclopentadiene

Proprietary Zeon technology used
to extract isoprene and otherhighly-pure, useful components
from C5 fractions

Specialty Materials
Business

Medicalcontainers

Optical films

Fragrances

Electronics materials

Electronics materials

Energy materials

Binders for lithium-ion rechargeable batteries

Medical devices

Medical catheters

Carbon nanotubes

Single-walled carbon nanotubes,
composite materials

Food additives

Toner

Other

Synthetic aroma
chemicals

Specialty Materials Business

2-butyne

Large-size
molding

Other

C5
fractions

Specialty materials refer tomaterials and components withhigh added value that have amacromolecular design and aremade with processing
technology. The three key
business areas of the Specialty
Materials Business are IT
components, energy
materials, and medical devices.
Main products
Specialty plastics andcomponents, electronics
materials, toners, battery
materials, medical devices

Social value created from C4 and C5

C4
fractionsApplications

P.7

Other Businesses
Engineering, packaging
materials, building
materials, deodorants, RIM
formulation, single-walledcarbon nanotubes,
paints/coatings, trading, etc.

13

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201814

Zeon Group Locations

GLOBALWe are continuing to globalize our business operations, having first turned our attention to global markets in the 1970s. We have set up
sales networks in major markets around the world and established a production system for rubber and resin products. In addition, we
have R&D facilities in the USA and Europe capable of quickly meeting local needs. We are also establishing R&D and sales locations in
China, a market that is growing rapidly. We are aiming to be a company that, through our local production systems, builds close ties withlocal communities and contributes to the global society.

as of July 31, 2018

EuropeChina

Zeon Europe GmbH

Zeon (Shanghai) Co., Ltd.

• Provide assistance and exercise control over the Zeon Group
companies in China with regard to such functions as
accounting, finance, personnel management, legal, etc.

Hansaallee 249, 40549 Dusseldorf, Germany
TEL:+49-211-52670 FAX:+49-211-5267160• Sales, export, and import of synthetic rubbers and resins

Zeon Europe GmbH - Branch in France

ZEON France Succursale française de Zeon Europe GmbH c/o
Sofradec 153, Boulevard Haussmann 75008 Paris, France
TEL:+49-211-5267-145

Zeon Europe GmbH - Branch in Spain
C/Beethoven, 15, 4O, 08021 Barcelona, Spain
TEL:+34-93-183-87-08 FAX:+34-93-183-87-58

Zeon Europe GmbH - Branch in Italy
Via Mauro Macchi, 27, 20124 Milano, Italia
TEL:+39-02-67141701 FAX:+39-02-36680124

Zeon Europe GmbH - Branch in U.K.
Scott Court, Unit 2A, Ocean Way, Cardiff, CF24 5HF,
United Kingdom
TEL:+44-1446-725000 FAX:+44-1446-74798

Telene S.A.S.

2, rue Marie Curie - 59910 Bondues, France
TEL:+33-3-20-69-57-10 FAX:+33-3-20-69-57-11• Development and sales of Telene® DCP-RIM resin

Room 1904, 2 Grand Gateway, No.3 Hongqiao Road, Xuhui
District, Shanghai, 200030, China
TEL: +86-21-6167-5776 FAX: +86-21-6040-7258

Shanghai Zeon Co., Ltd.

No. 380 Shennan Road, Xinzhuang Industry District, Minhang,
Shanghai, 201108, China
TEL: +86-21-6489-6160 FAX: +86-21-6442-0569(Push “0” after announcements)• Manufacture and sales of rubber compounds (CM)

Zeon Trading (Shanghai) Co., Ltd.

Room 1901-2, 2 Grand Gateway, No.3 Hongqiao Road, Xuhui
District, Shanghai, 200030, China
TEL: +86-21-6040-7255 FAX: +86-21-6040-7258• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international trade)

Zeon Polymix (Guangzhou) Co., Ltd.

No. 1 1st Jingquan Road, Yong He Economic Zone, Guangzhou,
511356, China
TEL: +86-20-3222-1171 FAX: +86-20-3222-1820• Manufacture and sales of rubber compounds (CM)

China

USA

Zeon Kasei (Changshu) Co., Ltd.

Tokyo Zairyo (Tianjin) Co., Ltd.

Zeon Chemicals L.P.

• Manufacture and sales of powder slush compounds• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)• Manufacture and sales of synthetic rubbers

Huangpujiang Road 96, Dongnankaifa District, Changshu
City, Jiangsu Province, 215500, China
TEL: +86-512-5235-7000 FAX: +86-512-5235-7308

Zeon Medical (Guangzhou) Inc.

Room 1706A, Goldlion Digital Network Center, No. 138 Ti Yu
Dong Road, Tianhe District, Guangzhou, Guangdong,
510620, China
TEL: +86-20-2283-6788 FAX: +86-20-2283-6789• Sales, export, and import of medical devices(cardiovascular and endoscopic accessory, etc.)

Takehara Zeon (Shanghai) Co., Ltd.

No. 380 Shennan Road, Xinzhuang Industrial Zone, Minhang
District, Shanghai, 201108, China

Room 1805, The Exchange Tower 1, 189 Nanjing Road,
Heping District, Tianjin, 300051, China
TEL: +86-22-23021268 FAX: +86-22-23021278

Tokyo Zairyo (Guangzhou) Co., Ltd.

Room 1208, Goldlion Digital Network Center, No. 138 Ti yu
Dong Road, Tianhe District, Guangzhou, Guangdong,
510620, China
TEL: +86-20-3878-0671 FAX: +86-20-3878-1336• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)• Manufacture and sales of silicon rubber compounds(CM)

South Korea

Tokyo Zairyo (Shanghai) Co., Ltd.

Zeon Korea Co., Ltd.

• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)• Sales and import of optical materials, imaging andelectronics materials, synthetic resins, and synthetic
rubbers, etc.

Room 1503, Hongwell International Plaza, West Zhongshan
Road 1600, Xuhui District, Shanghai, 200235, China
TEL: +86-21-6119-9400 FAX: +86-21-6119-9401

No.403, 4Fl., 36, Teheran-ro 87-gil, Gangnam-gu, Seoul,06164, Korea（City Air Tower, Samseong-dong）
TEL:+82-2-539-8565 FAX:+82-2-538-5190

4111 Bells Lane, Louisville, Kentucky 40211, U.S.A.
TEL:+1-800-735-3388 FAX:+1-502-775-2055
TEL:+1-502-775-2000

R&D Center

4111 Bells Lane, Louisville, Kentucky 40211, U.S.A.
TEL:+1-502-775-7765 FAX:+1-502-775-7783

Kentucky Plant

4100 Bells Lane, Louisville, Kentucky 40211, U.S.A.
TEL:+1-502-775-7600 FAX:+1-502-775-7614

Mississippi Plant

1301 West Seventh Street, Hattiesburg, Mississippi 39401,
U.S.A.
TEL:+1-601-583-6020 FAX:+1-601-583-6032

Texas Plant

11235 Choate Road, Pasadena, Texas 77507, U.S.A.
TEL:+1-281-474-9693 FAX:+1-281-474-0966

Zeon Specialty Materials lnc.

1731 Technology Drive, Suite 595, San Jose, CA 95110, USA
TEL:+1-408-641-7889 FAX:+1-408-516-9382• Sale of advanced materials

Tokyo Zairyo (U.S.A.) Inc.

333 Mamaroneck Avenue PMB#394 White Plains, NY 10605
U.S.A
TEL:+1-914-646-7450• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)Nashville Office

One Brentwood Comons 750 Old Hickory Blvd., Suite 220
Brentwood, TN 37027
TEL:+1-615-922-4633 FAX:+1-615-942-7424

McAllen Office2112 South Shary Rd, Suite# 26 Mission, TX 78572
TEL:+1-914-314-8919

Zeon Shinhwa (Zeshin) Inc.

No.502 CALT B/D (City Airport）22, Teheran-ro 87-gil,Gangnam-gu, Seoul, 06164, Korea
TEL:+82-2-761-7030 FAX:+82-2-786-7221• Sales of imaging and electronics materials

India
Zeon India Private Limited

Time Tower, Unit No.507, Sector-28, M.G Road,
Gurgaon, 122002, Haryana, India
TEL:+91-124-4229461 FAX:+91-124-4229462• Import, sales, and marketing of synthetic rubbers andother Zeon productsTokyo Zairyo (India) Pvt, Ltd.

Time Tower, Unit No.507, 5th floor, Sector-28, M.G Road,
Gurgaon-122002, Haryana, India
TEL:+91-124-424-9011 FAX:+91-124-424-9005• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)

ThailandZeon Chemicals (Thailand) Co., Ltd.

3 Soi G-14, Pakorn-Songkhrorad Road, Tambol Huaypong,
Amphur Muangrayong, Rayong 21150, Thailand
TEL:+66-3-868-5973~5 FAX:+66-3-868-5972• Manufacture and sales of petroleum resins

Zeon Advanced Polymix Co., Ltd.

111/2 Soi Nikom 13, Moo 2 T.Makhamkhoo, Nikompattana
District Rayong 21180, Thailand
TEL:+66-38-893-565 FAX:+66-38-893-569• Manufacture and sales of rubber compounds (CM)Sales office

591 UBCII BLDG, Office No.2206, 22thFL, Sukhumvit
33rd, KlongtonNua, Wattana, Bangkok 10110, Thailand
TEL:+66-2-261-0175 FAX:+66-2-261-0172

15

ZEON GROUPCORPORATE REPORT 2018

Tokyo Zairyo (Thailand) Co.,Ltd.

Tokyo Zairyo (Vietnam) LLC.

Zeon Taiwan Co., Ltd.

• Sale of electronics materials

Singapore• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)

29th Floor Room 2903, Empire Tower 1 South Sathorn Rd.,
Yannawa, Sathorn, Bangkok, 10120, Thailand
TEL:+66-2-670-0285 FAX:+66-2-670-0283

4th Floor, Building 85 Nguyen Du Str., Hai Ba Trung District,Hanoi, Vietnam 100000
TEL:+84-4-3941-3825 FAX:+84-4-3941-3826

Zeon Chemicals Singapore Pte. Ltd.

Branch of Tokyo Zairyo (Vietnam) LLC in HCMC

100 Banyan Drive, Jurong Island, Singapore 627571
TEL:+65-6933-4400 FAX:+65-6933-4413

Unit 1203, 2nd Fl., CITYVIEW, 12 Mac Dinh Chi st., Da
Kao Ward, Dist. 1, Ho Chi Minh City, Vietnam
TEL:+84-28-3911-0135 FAX:+84-28-3911-0136• Manufacture and sales of S-SBR

Zeon Asia Pte. Ltd.

331 North Bridge Road, #20-01/02, Odeon Towers,
Singapore 188720
TEL:+65-6332-2338 FAX:+65-6332-2339• Sales, export, and import of synthetic rubbers,
synthetic latex, and petroleum resins

Asia Technical Support Laboratory

61 Science Park Road, #05-09/10 The Galen, Singapore
Science Park 2, Singapore 117525
TEL:+65-6266-7631 FAX:+65-6266-7712

Tokyo Zairyo (Singapore) Pte. Ltd.

331 North Bridge Road, #20-01/02, Odeon Towers,
Singapore 188720
TEL:+65-6337-5053 FAX:+65-6337-4557• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)

10F, No.209. Sec.1, Civic Blvd., Datong Dist., Taipei City
103, Taiwan (R.O.C.)
TEL:+886-2-2181-1620

MexicoZeon Kasei Mexico S.A. de C.V.

Avenida Santiago Sur 100, Los Jassos, San Luis Potosi, San
Luis Potosi, MEXICO, C.P.78420
TEL:+52-1-444-478-5400• Manufacture and sales of powder slush compounds

Malaysia

Indonesia

Zeon Asia Malaysia Sdn. Bhd.

PT. Tokyo Zairyo Indonesia

Unit 208, Block B, Phileo Damansara II, No.15, Jalan16/11, Off
Jalan Damansara, 46350 Petaling Jaya, Selangor, Malaysia
TEL:+603-7956-7069 FAX:+603-7957-1758• Sales of synthetic latexes

VietnamZeon Manufacturing Vietnam Co., Ltd.

No.109, Road No.10, VSIP Haiphong Township, Tan Duongward, Thuy Nguyen District, Haiphong City, Vietnam
TEL:+84-225-3797-027 FAX:+84-225-3797-028• Manufacture and sales of packing containers

Zeon Research Vietnam Co., Ltd.

6th Floor, Building 85 Nguyen Du Str., Hai Ba Trung District,Hanoi, Vietnam 100000
TEL:+84-24-3632-0557 FAX:+84-24-3632-0557• Design simulation of optical materials and molded
products, and market research for Zeon products inSoutheast Asia

Gedung MidPlaza 2, Lantai 12, Jl. Jend. Sudirman Kav.
10-11,Jakarta 10220
TEL:+62-21-574-6454 FAX:+62-21-573-5661

Tokyo Zairyo Mexico, S.A. de C.V.

Boulevard Bernardo Quintana 7001 Torre II Suite 807
Colonia Centro Sur, C.P. 76090 Querétaro; Querétaro,
MéxicoTEL:+52-442-229-3242 FAX:+52-442-229-3244• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)

TaiwanBrazilZeon CSC Corporation

Zeon do Brasil Ltda.

3F.-2, No.266, Sec. 1, Wenhua 2nd Rd., Linkou Dist., New
Taipei City 24448, Taiwan (R.O.C.)
TEL:+886-2-2609-2156 FAX:+886-2-2600-6413

Rua Arandu, 57/cj 23, Sao Paulo-SP, 04562-031
TEL:+55-11-5501-2120 FAX:+55-11-5501-2122• Sales of synthetic rubbers and resins, etc.

• Sales of optical materials

ZEON GROUPCORPORATE REPORT 201816

Zeon Group Locations

GLOBALWe are continuing to globalize our business operations, having first turned our attention to global markets in the 1970s. We have set up
sales networks in major markets around the world and established a production system for rubber and resin products. In addition, we
have R&D facilities in the USA and Europe capable of quickly meeting local needs. We are also establishing R&D and sales locations in
China, a market that is growing rapidly. We are aiming to be a company that, through our local production systems, builds close ties withlocal communities and contributes to the global society.

as of July 31, 2018

EuropeChina

Zeon Europe GmbH

Zeon (Shanghai) Co., Ltd.

• Provide assistance and exercise control over the Zeon Group
companies in China with regard to such functions as
accounting, finance, personnel management, legal, etc.

Hansaallee 249, 40549 Dusseldorf, Germany
TEL:+49-211-52670 FAX:+49-211-5267160• Sales, export, and import of synthetic rubbers and resins

Zeon Europe GmbH - Branch in France

ZEON France Succursale française de Zeon Europe GmbH c/o
Sofradec 153, Boulevard Haussmann 75008 Paris, France
TEL:+49-211-5267-145

Zeon Europe GmbH - Branch in Spain
C/Beethoven, 15, 4O, 08021 Barcelona, Spain
TEL:+34-93-183-87-08 FAX:+34-93-183-87-58

Zeon Europe GmbH - Branch in Italy
Via Mauro Macchi, 27, 20124 Milano, Italia
TEL:+39-02-67141701 FAX:+39-02-36680124

Zeon Europe GmbH - Branch in U.K.
Scott Court, Unit 2A, Ocean Way, Cardiff, CF24 5HF,
United Kingdom
TEL:+44-1446-725000 FAX:+44-1446-74798

Telene S.A.S.

2, rue Marie Curie - 59910 Bondues, France
TEL:+33-3-20-69-57-10 FAX:+33-3-20-69-57-11• Development and sales of Telene® DCP-RIM resin

Room 1904, 2 Grand Gateway, No.3 Hongqiao Road, Xuhui
District, Shanghai, 200030, China
TEL: +86-21-6167-5776 FAX: +86-21-6040-7258

Shanghai Zeon Co., Ltd.

No. 380 Shennan Road, Xinzhuang Industry District, Minhang,
Shanghai, 201108, China
TEL: +86-21-6489-6160 FAX: +86-21-6442-0569(Push “0” after announcements)• Manufacture and sales of rubber compounds (CM)

Zeon Trading (Shanghai) Co., Ltd.

Room 1901-2, 2 Grand Gateway, No.3 Hongqiao Road, Xuhui
District, Shanghai, 200030, China
TEL: +86-21-6040-7255 FAX: +86-21-6040-7258• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international trade)

Zeon Polymix (Guangzhou) Co., Ltd.

No. 1 1st Jingquan Road, Yong He Economic Zone, Guangzhou,
511356, China
TEL: +86-20-3222-1171 FAX: +86-20-3222-1820• Manufacture and sales of rubber compounds (CM)

China

USA

Zeon Kasei (Changshu) Co., Ltd.

Tokyo Zairyo (Tianjin) Co., Ltd.

Zeon Chemicals L.P.

• Manufacture and sales of powder slush compounds• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)• Manufacture and sales of synthetic rubbers

Huangpujiang Road 96, Dongnankaifa District, Changshu
City, Jiangsu Province, 215500, China
TEL: +86-512-5235-7000 FAX: +86-512-5235-7308

Zeon Medical (Guangzhou) Inc.

Room 1706A, Goldlion Digital Network Center, No. 138 Ti Yu
Dong Road, Tianhe District, Guangzhou, Guangdong,
510620, China
TEL: +86-20-2283-6788 FAX: +86-20-2283-6789• Sales, export, and import of medical devices(cardiovascular and endoscopic accessory, etc.)

Takehara Zeon (Shanghai) Co., Ltd.

No. 380 Shennan Road, Xinzhuang Industrial Zone, Minhang
District, Shanghai, 201108, China

Room 1805, The Exchange Tower 1, 189 Nanjing Road,
Heping District, Tianjin, 300051, China
TEL: +86-22-23021268 FAX: +86-22-23021278

Tokyo Zairyo (Guangzhou) Co., Ltd.

Room 1208, Goldlion Digital Network Center, No. 138 Ti yu
Dong Road, Tianhe District, Guangzhou, Guangdong,
510620, China
TEL: +86-20-3878-0671 FAX: +86-20-3878-1336• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)• Manufacture and sales of silicon rubber compounds(CM)

South Korea

Tokyo Zairyo (Shanghai) Co., Ltd.

Zeon Korea Co., Ltd.

• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)• Sales and import of optical materials, imaging andelectronics materials, synthetic resins, and synthetic
rubbers, etc.

Room 1503, Hongwell International Plaza, West Zhongshan
Road 1600, Xuhui District, Shanghai, 200235, China
TEL: +86-21-6119-9400 FAX: +86-21-6119-9401

No.403, 4Fl., 36, Teheran-ro 87-gil, Gangnam-gu, Seoul,06164, Korea（City Air Tower, Samseong-dong）
TEL:+82-2-539-8565 FAX:+82-2-538-5190

4111 Bells Lane, Louisville, Kentucky 40211, U.S.A.
TEL:+1-800-735-3388 FAX:+1-502-775-2055
TEL:+1-502-775-2000

R&D Center

4111 Bells Lane, Louisville, Kentucky 40211, U.S.A.
TEL:+1-502-775-7765 FAX:+1-502-775-7783

Kentucky Plant

4100 Bells Lane, Louisville, Kentucky 40211, U.S.A.
TEL:+1-502-775-7600 FAX:+1-502-775-7614

Mississippi Plant

1301 West Seventh Street, Hattiesburg, Mississippi 39401,
U.S.A.
TEL:+1-601-583-6020 FAX:+1-601-583-6032

Texas Plant

11235 Choate Road, Pasadena, Texas 77507, U.S.A.
TEL:+1-281-474-9693 FAX:+1-281-474-0966

Zeon Specialty Materials lnc.

1731 Technology Drive, Suite 595, San Jose, CA 95110, USA
TEL:+1-408-641-7889 FAX:+1-408-516-9382• Sale of advanced materials

Tokyo Zairyo (U.S.A.) Inc.

333 Mamaroneck Avenue PMB#394 White Plains, NY 10605
U.S.A
TEL:+1-914-646-7450• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)Nashville Office

One Brentwood Comons 750 Old Hickory Blvd., Suite 220
Brentwood, TN 37027
TEL:+1-615-922-4633 FAX:+1-615-942-7424

McAllen Office2112 South Shary Rd, Suite# 26 Mission, TX 78572
TEL:+1-914-314-8919

Zeon Shinhwa (Zeshin) Inc.

No.502 CALT B/D (City Airport）22, Teheran-ro 87-gil,Gangnam-gu, Seoul, 06164, Korea
TEL:+82-2-761-7030 FAX:+82-2-786-7221• Sales of imaging and electronics materials

India
Zeon India Private Limited

Time Tower, Unit No.507, Sector-28, M.G Road,
Gurgaon, 122002, Haryana, India
TEL:+91-124-4229461 FAX:+91-124-4229462• Import, sales, and marketing of synthetic rubbers andother Zeon productsTokyo Zairyo (India) Pvt, Ltd.

Time Tower, Unit No.507, 5th floor, Sector-28, M.G Road,
Gurgaon-122002, Haryana, India
TEL:+91-124-424-9011 FAX:+91-124-424-9005• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)

ThailandZeon Chemicals (Thailand) Co., Ltd.

3 Soi G-14, Pakorn-Songkhrorad Road, Tambol Huaypong,
Amphur Muangrayong, Rayong 21150, Thailand
TEL:+66-3-868-5973~5 FAX:+66-3-868-5972• Manufacture and sales of petroleum resins

Zeon Advanced Polymix Co., Ltd.

111/2 Soi Nikom 13, Moo 2 T.Makhamkhoo, Nikompattana
District Rayong 21180, Thailand
TEL:+66-38-893-565 FAX:+66-38-893-569• Manufacture and sales of rubber compounds (CM)Sales office

591 UBCII BLDG, Office No.2206, 22thFL, Sukhumvit
33rd, KlongtonNua, Wattana, Bangkok 10110, Thailand
TEL:+66-2-261-0175 FAX:+66-2-261-0172

15

ZEON GROUPCORPORATE REPORT 2018

Tokyo Zairyo (Thailand) Co.,Ltd.

Tokyo Zairyo (Vietnam) LLC.

Zeon Taiwan Co., Ltd.

• Sale of electronics materials

Singapore• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)

29th Floor Room 2903, Empire Tower 1 South Sathorn Rd.,
Yannawa, Sathorn, Bangkok, 10120, Thailand
TEL:+66-2-670-0285 FAX:+66-2-670-0283

4th Floor, Building 85 Nguyen Du Str., Hai Ba Trung District,Hanoi, Vietnam 100000
TEL:+84-4-3941-3825 FAX:+84-4-3941-3826

Zeon Chemicals Singapore Pte. Ltd.

Branch of Tokyo Zairyo (Vietnam) LLC in HCMC

100 Banyan Drive, Jurong Island, Singapore 627571
TEL:+65-6933-4400 FAX:+65-6933-4413

Unit 1203, 2nd Fl., CITYVIEW, 12 Mac Dinh Chi st., Da
Kao Ward, Dist. 1, Ho Chi Minh City, Vietnam
TEL:+84-28-3911-0135 FAX:+84-28-3911-0136• Manufacture and sales of S-SBR

Zeon Asia Pte. Ltd.

331 North Bridge Road, #20-01/02, Odeon Towers,
Singapore 188720
TEL:+65-6332-2338 FAX:+65-6332-2339• Sales, export, and import of synthetic rubbers,
synthetic latex, and petroleum resins

Asia Technical Support Laboratory

61 Science Park Road, #05-09/10 The Galen, Singapore
Science Park 2, Singapore 117525
TEL:+65-6266-7631 FAX:+65-6266-7712

Tokyo Zairyo (Singapore) Pte. Ltd.

331 North Bridge Road, #20-01/02, Odeon Towers,
Singapore 188720
TEL:+65-6337-5053 FAX:+65-6337-4557• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)

10F, No.209. Sec.1, Civic Blvd., Datong Dist., Taipei City
103, Taiwan (R.O.C.)
TEL:+886-2-2181-1620

MexicoZeon Kasei Mexico S.A. de C.V.

Avenida Santiago Sur 100, Los Jassos, San Luis Potosi, San
Luis Potosi, MEXICO, C.P.78420
TEL:+52-1-444-478-5400• Manufacture and sales of powder slush compounds

Malaysia

Indonesia

Zeon Asia Malaysia Sdn. Bhd.

PT. Tokyo Zairyo Indonesia

Unit 208, Block B, Phileo Damansara II, No.15, Jalan16/11, Off
Jalan Damansara, 46350 Petaling Jaya, Selangor, Malaysia
TEL:+603-7956-7069 FAX:+603-7957-1758• Sales of synthetic latexes

VietnamZeon Manufacturing Vietnam Co., Ltd.

No.109, Road No.10, VSIP Haiphong Township, Tan Duongward, Thuy Nguyen District, Haiphong City, Vietnam
TEL:+84-225-3797-027 FAX:+84-225-3797-028• Manufacture and sales of packing containers

Zeon Research Vietnam Co., Ltd.

6th Floor, Building 85 Nguyen Du Str., Hai Ba Trung District,Hanoi, Vietnam 100000
TEL:+84-24-3632-0557 FAX:+84-24-3632-0557• Design simulation of optical materials and molded
products, and market research for Zeon products inSoutheast Asia

Gedung MidPlaza 2, Lantai 12, Jl. Jend. Sudirman Kav.
10-11,Jakarta 10220
TEL:+62-21-574-6454 FAX:+62-21-573-5661

Tokyo Zairyo Mexico, S.A. de C.V.

Boulevard Bernardo Quintana 7001 Torre II Suite 807
Colonia Centro Sur, C.P. 76090 Querétaro; Querétaro,
MéxicoTEL:+52-442-229-3242 FAX:+52-442-229-3244• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international
trade)

TaiwanBrazilZeon CSC Corporation

Zeon do Brasil Ltda.

3F.-2, No.266, Sec. 1, Wenhua 2nd Rd., Linkou Dist., New
Taipei City 24448, Taiwan (R.O.C.)
TEL:+886-2-2609-2156 FAX:+886-2-2600-6413

Rua Arandu, 57/cj 23, Sao Paulo-SP, 04562-031
TEL:+55-11-5501-2120 FAX:+55-11-5501-2122• Sales of synthetic rubbers and resins, etc.

• Sales of optical materials

ZEON GROUPCORPORATE REPORT 201816

Zeon Group LocationsJapan

as of July 31, 2018

Zeon Corporation – Head Office
Shin Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
TEL：+81-3-3216-1772 FAX：+81-3-3216-0501
Tokyo Zairyo Co., Ltd.
Shin Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-0005,
Japan*same as follows
TEL: +81-3-5219-2171 FAX: +81-3-5219-2201• Trading
Zeon Kasei Co., Ltd.
TEL：+81-3-5208-5111 FAX：+81-3-5208-5290
Plants: Ibaraki, Yamaguchi• Manufacture and sale of PVC compounds,
packaging materials, packaging containers,
logistics equipment, etc.
Zeon F&B Co., Ltd.
TEL: +81-3-3216-1410 FAX: +81-3-3216-1421• Agency business for life and non-life insurance;
loan and factoring business to each groupcompany
RIMTEC Corporation
TEL: +81-3-5220-8581 FAX: +81-3-5220-8584
Plants, R&D Center: Mizushima• Sales of formulation liquid for Reaction Injection
Molding (RIM)ZIS Information Technology Co., Ltd.
TEL: +81-3-3216-6500 FAX: +81-3-3216-6534• Consulting about data processing systems; sales
and maintenance of computer and officeautomation equipment
Zeon Nano Technology Co., Ltd.
TEL: +81-3-3216-1766 FAX: +81-3-3216-1767• Processing and sales of Carbon Nanotubes andrelated products
ZS Elastomer Co., Ltd.
TEL：+81-3-3216-0620 FAX：+81-3-3216-0629• Sales and R&D of S-SBR

Zeon Corporation – Kawasaki Plant
1-2-1 Yako, Kawasaki-ku, Kawasaki-ku,
Kanagawa 210-9507, Japan
TEL: +81-44-276-3700 (direct)
FAX: +81-44-276-3701

Zeon Corporation – Tokuyama Plant
2-1 Nachi-cho, Shunan-shi, Yamaguchi 745-0023,
Japan
TEL: +81-834-21-8501 (direct)
FAX: +81-834-21-8793

Zeon Corporation – R&D Center
TEL: +81-44-276-3721
FAX: +81-44-276-3720

Zeon Yamaguchi Co., Ltd.
2-1 Nachi-cho, Shunan-shi, Yamaguchi 745-0023,
Japan
TEL: +81-834-21-8482 FAX: +81-834-21-8663• Purchase and sale of civil engineering materials,
packing materials, and various facilities; designand construction, contracting for various plants;
environment analysis

Zeon Corporation – Takaoka Plant
630 Ogino, Takaoka-shi, Toyama 933-8516,
Japan
TEL: +81-766-21-0252 (direct)
FAX: +81-766-21-8201
Zeon North Co., Ltd.
351 Ejiri, Takaoka-shi, Toyama 933-0062, Japan
TEL: +81-766-25-1111 FAX: +81-766-25-1114• Contracting, design, construction, andmanagement for various facilities; sales ofindustrial materials and equipment, purchase andsale of petrochemical products; testifying
environmental measurements, measurement
working environment; conducting various
analyses
Optes Inc.
422-1 Futagamishin, Takaoka-shi, Toyama
933-0981, Japan
TEL: +81-766-32-1590 FAX: +81-766-32-1591
Plants: Takaoka, Himi, Tsuruga, Sano
• Manufacturing of optical film and optical parts;
design and manufacturing of mold

Zeon Corporation – Mizushima Plant
2767-1 Kojima Shionasu Aza Niihama, Kurashiki-shi,
Okayama 711-8511, Japan
TEL: +81-86-475-0021 FAX: +81-86-475-1169
Zeon RIM Co., Ltd.
2767-22 Kojima Shionasu Aza Niihama, Kurashiki-shi,
Okayama 711-0934, Japan
TEL: +81-86-475-0621 FAX: +81-86-475-0620• Manufacturing, processing and sale of plastic
molding products

Zeon Corporation – Osaka Office
Furukawa Osaka Bldg. West 4F, 2-1-9 Dojimahama,
Kita-ku, Osaka-shi, Osaka 530-0004 Japan
TEL: +81-6-4797-8220 FAX: +81-6-4797-8225
Tohpe Corporation
1-5-11 Chikkoshinmachi, Nishi-ku, Sakai-shi, Osaka
592-8331, Japan
TEL: +81-72-243-6411 FAX: +81-72-243-6415
Plants: Ibaraki, Mie, Kurashiki, Kyushu• Manufacturing and sale of paints and chemical
products

Zeon Corporation – Nagoya Office
Ichigo Fushimi Bldg. 7F, 1-18-24 Nishiki, Naka-ku,
Nagoya-shi, Aichi 460-0003 Japan
TEL：+81-52-209-9145 FAX：+81-52-209-9147

Zeon Polymix Inc.
1-11-1 Ishizue, Otsu-shi, Shiga 520-2272, Japan
TEL: +81-77-546-1223 FAX: +81-77-546-6099
Plants: Otsu
• Manufacturing compound of synthetic rubber(carbon masterbatches)

Zeon Chemicals Yonezawa Co., Ltd.
3-446-13 Hachimanpara, Yonezawa-shi,
Yamagata 992-1128, Japan
TEL: +81-238-29-0055 FAX: +81-238-29-0053• Manufacturing, processing and sale of aromatic
chemicals, the intermediate of medicine andagricultural chemicals and RIM formulation liquid

River Xemex Co., Ltd.
2-11-17 Osachigosho, Okaya-shi, Nagano
394-0082, Japan
TEL: +81-266-21-2131 FAX: +81-266-21-1550• Manufacture of medical devices

TFC Inc.
34-23-2 Azono, Tsuruga-shi, Fukui 914-0141, Japan
TEL: +81-770-21-1711 FAX: +81-770-21-1775• Manufacturing of optical films

Zeon Medical Inc.
TEL：+81-3-3216-1265 FAX：+81-3-3216-1269
Plant: Takaoka• Manufacturing and sale of medical devices
Okayama Butadiene Co., Ltd.
Sen-i Kaikan 2F, 3-1-11 Nihonbashi-Honcho,
Chuo-ku, Tokyo 103-0023, Japan
TEL: +81-3-3278-0721 FAX: +81-3-3278-0722• Manufacturing of butadiene monomer

17

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201818

Zeon Group LocationsJapan

as of July 31, 2018

Zeon Corporation – Head Office
Shin Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
TEL：+81-3-3216-1772 FAX：+81-3-3216-0501
Tokyo Zairyo Co., Ltd.
Shin Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-0005,
Japan*same as follows
TEL: +81-3-5219-2171 FAX: +81-3-5219-2201• Trading
Zeon Kasei Co., Ltd.
TEL：+81-3-5208-5111 FAX：+81-3-5208-5290
Plants: Ibaraki, Yamaguchi• Manufacture and sale of PVC compounds,
packaging materials, packaging containers,
logistics equipment, etc.
Zeon F&B Co., Ltd.
TEL: +81-3-3216-1410 FAX: +81-3-3216-1421• Agency business for life and non-life insurance;
loan and factoring business to each groupcompany
RIMTEC Corporation
TEL: +81-3-5220-8581 FAX: +81-3-5220-8584
Plants, R&D Center: Mizushima• Sales of formulation liquid for Reaction Injection
Molding (RIM)ZIS Information Technology Co., Ltd.
TEL: +81-3-3216-6500 FAX: +81-3-3216-6534• Consulting about data processing systems; sales
and maintenance of computer and officeautomation equipment
Zeon Nano Technology Co., Ltd.
TEL: +81-3-3216-1766 FAX: +81-3-3216-1767• Processing and sales of Carbon Nanotubes andrelated products
ZS Elastomer Co., Ltd.
TEL：+81-3-3216-0620 FAX：+81-3-3216-0629• Sales and R&D of S-SBR

Zeon Corporation – Kawasaki Plant
1-2-1 Yako, Kawasaki-ku, Kawasaki-ku,
Kanagawa 210-9507, Japan
TEL: +81-44-276-3700 (direct)
FAX: +81-44-276-3701

Zeon Corporation – Tokuyama Plant
2-1 Nachi-cho, Shunan-shi, Yamaguchi 745-0023,
Japan
TEL: +81-834-21-8501 (direct)
FAX: +81-834-21-8793

Zeon Corporation – R&D Center
TEL: +81-44-276-3721
FAX: +81-44-276-3720

Zeon Yamaguchi Co., Ltd.
2-1 Nachi-cho, Shunan-shi, Yamaguchi 745-0023,
Japan
TEL: +81-834-21-8482 FAX: +81-834-21-8663• Purchase and sale of civil engineering materials,
packing materials, and various facilities; designand construction, contracting for various plants;
environment analysis

Zeon Corporation – Takaoka Plant
630 Ogino, Takaoka-shi, Toyama 933-8516,
Japan
TEL: +81-766-21-0252 (direct)
FAX: +81-766-21-8201
Zeon North Co., Ltd.
351 Ejiri, Takaoka-shi, Toyama 933-0062, Japan
TEL: +81-766-25-1111 FAX: +81-766-25-1114• Contracting, design, construction, andmanagement for various facilities; sales ofindustrial materials and equipment, purchase andsale of petrochemical products; testifying
environmental measurements, measurement
working environment; conducting various
analyses
Optes Inc.
422-1 Futagamishin, Takaoka-shi, Toyama
933-0981, Japan
TEL: +81-766-32-1590 FAX: +81-766-32-1591
Plants: Takaoka, Himi, Tsuruga, Sano
• Manufacturing of optical film and optical parts;
design and manufacturing of mold

Zeon Corporation – Mizushima Plant
2767-1 Kojima Shionasu Aza Niihama, Kurashiki-shi,
Okayama 711-8511, Japan
TEL: +81-86-475-0021 FAX: +81-86-475-1169
Zeon RIM Co., Ltd.
2767-22 Kojima Shionasu Aza Niihama, Kurashiki-shi,
Okayama 711-0934, Japan
TEL: +81-86-475-0621 FAX: +81-86-475-0620• Manufacturing, processing and sale of plastic
molding products

Zeon Corporation – Osaka Office
Furukawa Osaka Bldg. West 4F, 2-1-9 Dojimahama,
Kita-ku, Osaka-shi, Osaka 530-0004 Japan
TEL: +81-6-4797-8220 FAX: +81-6-4797-8225
Tohpe Corporation
1-5-11 Chikkoshinmachi, Nishi-ku, Sakai-shi, Osaka
592-8331, Japan
TEL: +81-72-243-6411 FAX: +81-72-243-6415
Plants: Ibaraki, Mie, Kurashiki, Kyushu• Manufacturing and sale of paints and chemical
products

Zeon Corporation – Nagoya Office
Ichigo Fushimi Bldg. 7F, 1-18-24 Nishiki, Naka-ku,
Nagoya-shi, Aichi 460-0003 Japan
TEL：+81-52-209-9145 FAX：+81-52-209-9147

Zeon Polymix Inc.
1-11-1 Ishizue, Otsu-shi, Shiga 520-2272, Japan
TEL: +81-77-546-1223 FAX: +81-77-546-6099
Plants: Otsu
• Manufacturing compound of synthetic rubber(carbon masterbatches)

Zeon Chemicals Yonezawa Co., Ltd.
3-446-13 Hachimanpara, Yonezawa-shi,
Yamagata 992-1128, Japan
TEL: +81-238-29-0055 FAX: +81-238-29-0053• Manufacturing, processing and sale of aromatic
chemicals, the intermediate of medicine andagricultural chemicals and RIM formulation liquid

River Xemex Co., Ltd.
2-11-17 Osachigosho, Okaya-shi, Nagano
394-0082, Japan
TEL: +81-266-21-2131 FAX: +81-266-21-1550• Manufacture of medical devices

TFC Inc.
34-23-2 Azono, Tsuruga-shi, Fukui 914-0141, Japan
TEL: +81-770-21-1711 FAX: +81-770-21-1775• Manufacturing of optical films

Zeon Medical Inc.
TEL：+81-3-3216-1265 FAX：+81-3-3216-1269
Plant: Takaoka• Manufacturing and sale of medical devices
Okayama Butadiene Co., Ltd.
Sen-i Kaikan 2F, 3-1-11 Nihonbashi-Honcho,
Chuo-ku, Tokyo 103-0023, Japan
TEL: +81-3-3278-0721 FAX: +81-3-3278-0722• Manufacturing of butadiene monomer

17

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201818

2017–2018 Topics
The summary of Zeon’s major business developments from the second half of 2017 through to the first half of 2018.

▶P22

Zeon’s Business and Strategy
This section describes Zeon’s business and strategy in the Enterprise Blueprint for 2020, with the target of“Over 500 billion yen in consolidated net sales” and the mission “Zeon makes the future today through the powerof chemistry.”

2017–2018 Topics

P.20

Interview with the President

P.21

▶P22

Zeon Specialty Materials Inc. (ZSM) was established to handle the Zeon
Group’s advanced materials business in Silicon Valley in the U.S.A.

Zeon has decided to increase production of special cross-linking
type hydrogenated nitrile rubber Zetpol ®

In October 2017, Zeon Special Materials Inc. (ZSM) was establishedto handle sales of cyclo olefin polymers (COP), optical film, lithiumion rechargeable battery binder, insulation materials, photo resist andetching gas. By locating ZSM in Silicon Valley, with its flourishing IT
sector, it will be possible to respond more rapidly to market needs.

In April 2018, it was decided to increase the production capacity of
the Kawasaki Plant in order to expand Zeon’s special cross-linking
type Zetpol® Business. The related construction work is scheduled forcompletion in September 2019.

▶P6

Zeon Medical Inc. has launched a series of new balloon catheter
products

Zeon has launched a new type of resin for high heat resistancelenses that are required for automotive sensing cameras

In December 2017 and May 2018, Zeon Medical Inc. introduced new
balloon catheter products for removing bile duct stones. It is anticipatedthat the new devices, which can be operated by two people comparedto three people with conventional products, will help to ease manpower
shortages in hospitals.

In October 2017, Zeon launched, a new grade of cyclo olefin polymer
designed for use with automotive sensing camera lenses, which
require superior heat resistance. Zeon is working to expand the scopeof potential uses for ZEONEX®, with an eye on applications relating toautomated driving systems.

Accelerate new business creation and new product developmentusing carbon nanotube (ZEONANO ®)Zeon won the Japan Petroleum Institute Award for Technological
Progress for its successful development of a new Cyclopentyl
methyl ether (CPME) manufacturing process

Zeon’s Business and Strategy
Elastomer Business

P.25

Specialty Materials Business

P.27

Research and Development (R&D)

P.29

Corporate Governance

P.31

The pace of R&D work at the Zeon Sunarrow AIST CNT Composite
Material Research Center has been accelerated. By creating compounds
that combine ZEONANO® with other materials, the Center has succeeded
in developing new types of electromagnetic shielding materials and othermaterials with superior heat resistance and pressure resistance.

19

ZEON GROUPCORPORATE REPORT 2018

In June 2018, Zeon Corporation was awarded the 2017 Japan
Petroleum Institute Award for Technological Progress for the company’s
development of a process for manufacturing Cyclopentyl methyl ether(CPME) which was commercialized in 2005 and which has maintained
stable operation since then, as well as for the spillover effect in relation
to the development of other technologies.
ZEON GROUPCORPORATE REPORT 201820

2017–2018 Topics
The summary of Zeon’s major business developments from the second half of 2017 through to the first half of 2018.

▶P22

Zeon’s Business and Strategy
This section describes Zeon’s business and strategy in the Enterprise Blueprint for 2020, with the target of“Over 500 billion yen in consolidated net sales” and the mission “Zeon makes the future today through the powerof chemistry.”

2017–2018 Topics

P.20

Interview with the President

P.21

▶P22

Zeon Specialty Materials Inc. (ZSM) was established to handle the Zeon
Group’s advanced materials business in Silicon Valley in the U.S.A.

Zeon has decided to increase production of special cross-linking
type hydrogenated nitrile rubber Zetpol ®

In October 2017, Zeon Special Materials Inc. (ZSM) was establishedto handle sales of cyclo olefin polymers (COP), optical film, lithiumion rechargeable battery binder, insulation materials, photo resist andetching gas. By locating ZSM in Silicon Valley, with its flourishing IT
sector, it will be possible to respond more rapidly to market needs.

In April 2018, it was decided to increase the production capacity of
the Kawasaki Plant in order to expand Zeon’s special cross-linking
type Zetpol® Business. The related construction work is scheduled forcompletion in September 2019.

▶P6

Zeon Medical Inc. has launched a series of new balloon catheter
products

Zeon has launched a new type of resin for high heat resistancelenses that are required for automotive sensing cameras

In December 2017 and May 2018, Zeon Medical Inc. introduced new
balloon catheter products for removing bile duct stones. It is anticipatedthat the new devices, which can be operated by two people comparedto three people with conventional products, will help to ease manpower
shortages in hospitals.

In October 2017, Zeon launched, a new grade of cyclo olefin polymer
designed for use with automotive sensing camera lenses, which
require superior heat resistance. Zeon is working to expand the scopeof potential uses for ZEONEX®, with an eye on applications relating toautomated driving systems.

Accelerate new business creation and new product developmentusing carbon nanotube (ZEONANO ®)Zeon won the Japan Petroleum Institute Award for Technological
Progress for its successful development of a new Cyclopentyl
methyl ether (CPME) manufacturing process

Zeon’s Business and Strategy
Elastomer Business

P.25

Specialty Materials Business

P.27

Research and Development (R&D)

P.29

Corporate Governance

P.31

The pace of R&D work at the Zeon Sunarrow AIST CNT Composite
Material Research Center has been accelerated. By creating compounds
that combine ZEONANO® with other materials, the Center has succeeded
in developing new types of electromagnetic shielding materials and othermaterials with superior heat resistance and pressure resistance.

19

ZEON GROUPCORPORATE REPORT 2018

In June 2018, Zeon Corporation was awarded the 2017 Japan
Petroleum Institute Award for Technological Progress for the company’s
development of a process for manufacturing Cyclopentyl methyl ether(CPME) which was commercialized in 2005 and which has maintained
stable operation since then, as well as for the spillover effect in relation
to the development of other technologies.
ZEON GROUPCORPORATE REPORT 201820

Interview with the President●Fig.2: The Enterprise Blueprint for 2020 and the Mid-term Management Plan SZ-20 Phase III: Groupwide strategy

Aiming for further growth anda transformation of the corporate
culture in order to realize
the Zeon of the futureEnterprise Blueprint for 2020
Zeon makes the Future Today through the Power of Chemistry
Zeon will continue to contribute to the realization of customer dreams
and a prosperous society through employees’ individual growth.

Targeting consolidated net sales over 500 billion yen in FY 2020
President Kimiaki Tanaka outlines where Zeon Group is
today and its outlook for the future in a Q&A format.

SZ-20 Phase III: Groupwide Strategy[1] Reinforce the combined strengths of the Zeon
Group. Explore ways of going beyond boundaries
and collaborating with external players to provide
solutions globally as a contribution to society.
Growth[2] Accelerate the pace of new business creation andproduct development in key development areas: global
environment, smart devices, and health and living

Kimiaki Tanaka
President
Zeon Corporation

CultureQ.1 What is the current situation in terms of the economic environment and for the Zeon Group, and what is the[3] Cultivate a corporate culture that places value on
taking proactive action by harnessing diverse ideas
and implementing them.

situation in Zeon’s Elastomer Business and Specialty Materials Business?

A.1 【Summary】S upported by buoyant demand, in FY 2017 Zeon posted its highest ever net sales and profits.

Both the Elastomer Business and the Specialty Materials Business saw an increase in sales, andprofits rose too.

●Fig.1: Consolidated Results by Segment
Net sales ■Specialty Materials ■ Elastomers ■Others
Elastomers ◆Total
Operating income ●Specialty Materials
Net sales(100 million JPY)

4,000
3,500
3,000
2,500

［3,075］

Consolidated net sales given in [ ](intra-group transactions are excluded)［2,956］

299

282
500

580
207

2,000

168

1,500

1,888

1,789

91

94

1,000
500
0

21

［2,876］308

Operating income(100 million JPY)

389
［3,327］

350

539

300

490
206

222
1,946

1,662

167

250
200
150
100

98

709

710

750

865

2014

2015

2016

2017 (FY)ZEON GROUPCORPORATE REPORT 2018

400

50
0

In FY 2017, Zeon’s Elastomer Business posted its highest ever net
sales and operating profit, thanks to consistently high demand in therubber market as well as the fall in the price of oil and of butadiene(which is an important raw material), and the depreciation of theyen. Regarding the Specialty Materials Business, the Film Business,
which is the largest segment within the business, saw steady growth,particularly for film used in the manufacturing of large-screen TVs; theenergy materials and other segments also grew smoothly.
In the Elastomer Business, with regard to synthetic rubber,
although we had strong sales in both the domestic and overseas
markets, the capacity utilization rate for the production of solutionpolymerized styrene-butadiene rubber (S-SBR) in Singapore for fuelefficient tires remained unavoidably low because of the time neededby the client to implement evaluation; as a result, we had to book
an extraordinary expense for this in FY 2017. However, the capacity
utilization rate is gradually rising, and we will be able to turn thissituation around.
In the specialty rubber materials segment, sales of Zetpol®, which
has superior heat and pressure resistance, have increased, because
demand for mechanical seals for shale gas and oil drilling in the U.S. isrising again.

In 2017, we established the Asia Technical Support Laboratory(ATSL) in Singapore to provide technical services to local customers.
We have hired talent locally, and have conducted training in Japanon how to make synthetic rubber and compounds, and on analysis
methods. We have been improving equipment for evaluation, andhave already received inquiries from various quarters.
ZS Elastomers Co., Ltd., a joint venture company established byZeon Corporation and Sumitomo Chemical Co., Ltd. to undertake
development and sale of S-SBR, began operation in April 2017, andsince then has continued to expand its business scope, generatingsynergies through the collaboration between our two companies.
The goal is to expand the integration of operations to cover every
stage up to and including production in the future.
In the film segment, which has the biggest impact on sales
revenue in the Specialty Materials Business, there has beenstrong demand for film used for large-screen LCD TVs. Demand
for the types of film used in smartphone LCD and OLED displays
is heavily affected by smartphone sales, so the goal is to develop
film that will be used in a high-selling “hit” smartphone product.
Outside the film segment, sales of the resins used in cyclo olefin
polymers (COP) have also been buoyant. These have a wide
range of applications, including medical devices, optical lenses,
semiconductor containers, pre-filled syringes for medical use, etc.
With regard to energy materials, the lithium ion battery binder
market is projected to grow by around 4% in 2018. China is themost important market for this product. The battery binder for
hybrid vehicles and electric vehicles are growing faster than thebinder for smartphone batteries. In addition, lithium ion batteries arealso starting to be used for Energy Storage System (ESS) stationary
power sources. Strong growth is anticipated in these types ofindustrial battery materials. The ESS market in the U.S.A. andEurope offers particularly high potential.
In the chemical products segment, the demand for special
solvents used in semiconductor manufacturing and for fragrances isincreasing. With regard to fragrances in particular, while this market
segment had previously been affected by the impact of emerging
materials manufacturers, many of these manufacturers have now
withdrawn from the market, resulting in higher demand for Zeon’s
products.
In the medical device segment, sales of Zeon’s Fractional Flow
Reserve (FFR) measurement system for examining coronary arteryblockage have been brisk. We will continue to roll out new products
for the cardiovascular system and the digestive system. (See also
➡ P.5, Highlight 2)
Regarding our ZEONANO® single-walled carbon nanotube (SWCNT)
product, we are continuing to bring manufacturing costs down, andalso developing new product applications. Thermal interface materials(TIM) that use ZEONANO® is expected to start contributing to sales
in FY 2019. A method for the low-cost manufacturing of solar cells
that uses ZEONANO® for the electrodes instead of platinum has also
been developed. Making use of this technology, research is underwaywith the aim of having devices that use solar power for charging
smartphones on sale by 2019.

ZEON GROUPCORPORATE REPORT 201822

Interview with the President●Fig.2: The Enterprise Blueprint for 2020 and the Mid-term Management Plan SZ-20 Phase III: Groupwide strategy

Aiming for further growth anda transformation of the corporate
culture in order to realize
the Zeon of the futureEnterprise Blueprint for 2020
Zeon makes the Future Today through the Power of Chemistry
Zeon will continue to contribute to the realization of customer dreams
and a prosperous society through employees’ individual growth.

Targeting consolidated net sales over 500 billion yen in FY 2020
President Kimiaki Tanaka outlines where Zeon Group is
today and its outlook for the future in a Q&A format.

SZ-20 Phase III: Groupwide Strategy[1] Reinforce the combined strengths of the Zeon
Group. Explore ways of going beyond boundaries
and collaborating with external players to provide
solutions globally as a contribution to society.
Growth[2] Accelerate the pace of new business creation andproduct development in key development areas: global
environment, smart devices, and health and living

Kimiaki Tanaka
President
Zeon Corporation

CultureQ.1 What is the current situation in terms of the economic environment and for the Zeon Group, and what is the[3] Cultivate a corporate culture that places value on
taking proactive action by harnessing diverse ideas
and implementing them.

situation in Zeon’s Elastomer Business and Specialty Materials Business?

A.1 【Summary】S upported by buoyant demand, in FY 2017 Zeon posted its highest ever net sales and profits.

Both the Elastomer Business and the Specialty Materials Business saw an increase in sales, andprofits rose too.

●Fig.1: Consolidated Results by Segment
Net sales ■Specialty Materials ■ Elastomers ■Others
Elastomers ◆Total
Operating income ●Specialty Materials
Net sales(100 million JPY)

4,000
3,500
3,000
2,500

［3,075］

Consolidated net sales given in [ ](intra-group transactions are excluded)［2,956］

299

282
500

580
207

2,000

168

1,500

1,888

1,789

91

94

1,000
500
0

21

［2,876］308

Operating income(100 million JPY)

389
［3,327］

350

539

300

490
206

222
1,946

1,662

167

250
200
150
100

98

709

710

750

865

2014

2015

2016

2017 (FY)ZEON GROUPCORPORATE REPORT 2018

400

50
0

In FY 2017, Zeon’s Elastomer Business posted its highest ever net
sales and operating profit, thanks to consistently high demand in therubber market as well as the fall in the price of oil and of butadiene(which is an important raw material), and the depreciation of theyen. Regarding the Specialty Materials Business, the Film Business,
which is the largest segment within the business, saw steady growth,particularly for film used in the manufacturing of large-screen TVs; theenergy materials and other segments also grew smoothly.
In the Elastomer Business, with regard to synthetic rubber,
although we had strong sales in both the domestic and overseas
markets, the capacity utilization rate for the production of solutionpolymerized styrene-butadiene rubber (S-SBR) in Singapore for fuelefficient tires remained unavoidably low because of the time neededby the client to implement evaluation; as a result, we had to book
an extraordinary expense for this in FY 2017. However, the capacity
utilization rate is gradually rising, and we will be able to turn thissituation around.
In the specialty rubber materials segment, sales of Zetpol®, which
has superior heat and pressure resistance, have increased, because
demand for mechanical seals for shale gas and oil drilling in the U.S. isrising again.

In 2017, we established the Asia Technical Support Laboratory(ATSL) in Singapore to provide technical services to local customers.
We have hired talent locally, and have conducted training in Japanon how to make synthetic rubber and compounds, and on analysis
methods. We have been improving equipment for evaluation, andhave already received inquiries from various quarters.
ZS Elastomers Co., Ltd., a joint venture company established byZeon Corporation and Sumitomo Chemical Co., Ltd. to undertake
development and sale of S-SBR, began operation in April 2017, andsince then has continued to expand its business scope, generatingsynergies through the collaboration between our two companies.
The goal is to expand the integration of operations to cover every
stage up to and including production in the future.
In the film segment, which has the biggest impact on sales
revenue in the Specialty Materials Business, there has beenstrong demand for film used for large-screen LCD TVs. Demand
for the types of film used in smartphone LCD and OLED displays
is heavily affected by smartphone sales, so the goal is to develop
film that will be used in a high-selling “hit” smartphone product.
Outside the film segment, sales of the resins used in cyclo olefin
polymers (COP) have also been buoyant. These have a wide
range of applications, including medical devices, optical lenses,
semiconductor containers, pre-filled syringes for medical use, etc.
With regard to energy materials, the lithium ion battery binder
market is projected to grow by around 4% in 2018. China is themost important market for this product. The battery binder for
hybrid vehicles and electric vehicles are growing faster than thebinder for smartphone batteries. In addition, lithium ion batteries arealso starting to be used for Energy Storage System (ESS) stationary
power sources. Strong growth is anticipated in these types ofindustrial battery materials. The ESS market in the U.S.A. andEurope offers particularly high potential.
In the chemical products segment, the demand for special
solvents used in semiconductor manufacturing and for fragrances isincreasing. With regard to fragrances in particular, while this market
segment had previously been affected by the impact of emerging
materials manufacturers, many of these manufacturers have now
withdrawn from the market, resulting in higher demand for Zeon’s
products.
In the medical device segment, sales of Zeon’s Fractional Flow
Reserve (FFR) measurement system for examining coronary arteryblockage have been brisk. We will continue to roll out new products
for the cardiovascular system and the digestive system. (See also
➡ P.5, Highlight 2)
Regarding our ZEONANO® single-walled carbon nanotube (SWCNT)
product, we are continuing to bring manufacturing costs down, andalso developing new product applications. Thermal interface materials(TIM) that use ZEONANO® is expected to start contributing to sales
in FY 2019. A method for the low-cost manufacturing of solar cells
that uses ZEONANO® for the electrodes instead of platinum has also
been developed. Making use of this technology, research is underwaywith the aim of having devices that use solar power for charging
smartphones on sale by 2019.

ZEON GROUPCORPORATE REPORT 201822

Interview with the President

Q.3●Fig.3: Examples of “reinforce,” “explore” and “solutions”

Reinforce: ZEONEX®

Explore: S-SBR

With its low moisture absorption, hightransparency, precise opticalcharacteristics and high-precisionmolding, ZEONEX® is ideally suited foruse as a lens material in HMD* devices.

Zeon’s S-SBR contributes to develop
new types of studless tire by enhancing
wet-grip performance, improving fuelefficiency and enhancing frictional
resistance.

*HMD: Head-Mounted Display

Forecast for sales of lens material
for use in HMD devices*Index taking actual sales in FY 2016as the base value, set at 100.

Solution:
Powder slush compounds (PSC)
Zeon’s PSC based on PVC has been
adopted in a variety of skin materials forautomotive interiors, because of its
superior design, molding, and processing
capabilities.

Forecast for sales of S-SBR*Index taking actual sales in FY 2017as the base value, set at 100.

Forecast for sales of PSC*Index taking actual sales in FY 2017as the base value, set at 100.

208

2016

100

2017

2018

2017

116

2018

138

100

2019

2020

2017

117

can be explored from multiple different perspectives, thereby
contributing to earlier commercialization. In FY 2017, this system
was used to implement discussion of 17 research topics fromdifferent angles.
Another new R&D system is the Innovation Highway. This system
relates to medium-term and long-term research topics; it involves
determining the feasibility of research topics that have been put
forward by individual units by having the topics examined fromdifferent perspectives. Over a period of around six months, a totalof 65 proposals were examined, of which three have already been
selected as formal research topics.
The most important thing is that the adoption of these new
systems has invigorated our R&D activity. We anticipate that thesemeasures will help to generate the new businesses that will underpin
Zeon’s operations in the future.
*AIST: National Institute of Advanced Industrial Science and Technology

A.4 【Summary】We are addressing the issue of diversity through management-led initiatives. Zeon’s CSR Code of
2018

2019

2020

【Summary】W
 e are enhancing value-added by satisfying customers’ diverse, including latent needs.
By reinforcing product functions and exploring new applications, we are generating Solutions (Fig.3).

There are situations where, rather than expecting the customer tospecify a particular type of material (such as “X Rubber”), it makes
more sense to focus on selling the customer a material that meetsthe customer’s needs, regardless of what type of material that is.
For example, you might have a case where the customer asks:“We want something that we can use for this part of the pump,
but because there is a lot of heat being generated there, it is going
to be affected by friction. Do you have a good material for that?”
As long as the material used meets the customer’s performancerequirements, it doesn’t matter whether it is Zetpol®, or NBR, or
acrylic rubber. Adopting this kind of approach is vital for boostingsales and growing our businesses. By expanding their knowledgeof the wide range of materials that Zeon produces, sales staff cancreate a wider range of business opportunities.
An example of “reinforce”: we added new functionality to
our petroleum resin by using Zeon’s proprietary hydrogenating
technology. Also, the differentiated Asymmetric SIS expands thefield of potential applications from conventional SIS. The use of
cyclo olefin polymer is growing in the field of Head-Mounted Display

ZEON GROUPCORPORATE REPORT 2018

We are accelerating the pace of new business creation and new
product development. In our Latex Business, we have developed
new latex products for use in manufacturing surgical gloves andwork gloves; we expect to see strong growth in demand for theseproducts, particularly in overseas markets. We are also planningto launch a steady stream of new products in the medical device
segment in both FY 2017 and FY 2018. The successful collaborative
development of new single-walled carbon nanotube materials has
been announced by AIST.*In order to facilitate the creation of new business areas throughnew products, we are adopting new R&D systems. One of thesesystems is Multi-review, which has been launched with the aim offacilitating the early commercialization of research topics in the formof new product development. Multi-review involves implementing
review that brings in researchers from other departments toparticipate, so that the potential for new product development

strategy of corporate culture cultivation?

strategy for the new mid-term management plan SZ-20 Phase III (Fig.2)?

23

in the short term with measures for supporting the proposal of new research topics oriented
towards the medium and long term. (See also ➡ P.29 R&D)

Q.4 What is the current situation in terms of measures to promote diversity and CSR regarding the Group-wide

171

146

Q.2 What is being achieved in relation to the objectives of “reinforce,” “explore” and “solution” in the Groupwide
A.2

A.3 【Summary】Z eon has launched a new approach that combines measures for accelerating research activity

212

165
100

Regarding the R&D work that Zeon has been undertaking in the three key development areas of Global
Environment, Health and Living, and Smart Devices, what is the current status of this R&D activity?

(HMD) lenses, because of its superior optical properties, and also
for wafer-handling containers because of its ultra-low out-gassing
and low water vapor transmission.
An example of “explore”: ZS Elastomer, a joint venture with
Sumitomo Chemical, is striving to realize the ideal performanceof tires which balance wet-grip performance, fuel efficiency andfrictional resistance, by combining both companies’ polymer
modification and production technology.
As regards “solutions”, Zeon’s PSC (Powder slush compound)is one example. We tailor material properties to meet customers’
needs to offer solutions. In the battery binder segment, we offer
materials to satisfy customers’ requirements that improve output
and cell durability dynamically, etc.

Conduct has been revised, and we are implementing measures to strengthen CSR promotion andworking to further the reform of our corporate culture. (See also ➡ P.3 Highlight 1, P.34 Zeon’s CSR)

Starting from FY 2017, we have been implementing managementled initiatives to foster diversity. We have held several meetings of aworking group to discuss issues relating to women’s participation andadvancement, and I myself have held one-to-one meetings with nine
middle-ranking female managers. What was brought home to me
by being able to listen to these female managers in person was thatthey are highly motivated, but they also have significant concerns.
This reinforced my conviction that we need to adopt a consistent
approach towards addressing this issue, by formulating career plans
for female employees and by encouraging supervisors to develop abetter understanding of female employees’ needs, etc. Since female
employees currently account for only a relatively small percentage of
all Zeon employees, the first priority is to raise this percentage. We are
implementing various measures, starting with an increase in the numberof female employees that we recruit, and also working to increase thenumber of female managers and the number of female employees
promoted to corporate officer level, etc.
In January 2018, Zeon’s CSR Code of Conduct was revised for the
first time in seven years. This revision of the CSR Code of Conduct
has been undertaken to make clear Zeon’s commitment to meeting
society’s expectations, which represents Zeon’s fundamental approach
to CSR, and to clarify Zeon’s CSR vision. Over the period 2017–2018,presentations outlining Zeon’s CSR—including the approach noted
above—were held 26 times within Japan, as well as in three othercountries (Singapore, Vietnam and Germany).
So what do we mean when we say that we want Zeon to meetsociety’s expectations? As a manufacturer, Zeon meets society’s
expectations by providing differentiated products that customers
appreciate. At a time when problems with product quality at othercompanies are being reported all the time, we regard compliance withlaws and regulations as being a basic requirement for doing business.
Meeting society’s expectations has always been the basis of our CSR,
and in the future we will continue to implement this approach thoroughly.

ZEON GROUPCORPORATE REPORT 201824

Interview with the President

Q.3●Fig.3: Examples of “reinforce,” “explore” and “solutions”

Reinforce: ZEONEX®

Explore: S-SBR

With its low moisture absorption, hightransparency, precise opticalcharacteristics and high-precisionmolding, ZEONEX® is ideally suited foruse as a lens material in HMD* devices.

Zeon’s S-SBR contributes to develop
new types of studless tire by enhancing
wet-grip performance, improving fuelefficiency and enhancing frictional
resistance.

*HMD: Head-Mounted Display

Forecast for sales of lens material
for use in HMD devices*Index taking actual sales in FY 2016as the base value, set at 100.

Solution:
Powder slush compounds (PSC)
Zeon’s PSC based on PVC has been
adopted in a variety of skin materials forautomotive interiors, because of its
superior design, molding, and processing
capabilities.

Forecast for sales of S-SBR*Index taking actual sales in FY 2017as the base value, set at 100.

Forecast for sales of PSC*Index taking actual sales in FY 2017as the base value, set at 100.

208

2016

100

2017

2018

2017

116

2018

138

100

2019

2020

2017

117

can be explored from multiple different perspectives, thereby
contributing to earlier commercialization. In FY 2017, this system
was used to implement discussion of 17 research topics fromdifferent angles.
Another new R&D system is the Innovation Highway. This system
relates to medium-term and long-term research topics; it involves
determining the feasibility of research topics that have been put
forward by individual units by having the topics examined fromdifferent perspectives. Over a period of around six months, a totalof 65 proposals were examined, of which three have already been
selected as formal research topics.
The most important thing is that the adoption of these new
systems has invigorated our R&D activity. We anticipate that thesemeasures will help to generate the new businesses that will underpin
Zeon’s operations in the future.
*AIST: National Institute of Advanced Industrial Science and Technology

A.4 【Summary】We are addressing the issue of diversity through management-led initiatives. Zeon’s CSR Code of
2018

2019

2020

【Summary】W
 e are enhancing value-added by satisfying customers’ diverse, including latent needs.
By reinforcing product functions and exploring new applications, we are generating Solutions (Fig.3).

There are situations where, rather than expecting the customer tospecify a particular type of material (such as “X Rubber”), it makes
more sense to focus on selling the customer a material that meetsthe customer’s needs, regardless of what type of material that is.
For example, you might have a case where the customer asks:“We want something that we can use for this part of the pump,
but because there is a lot of heat being generated there, it is going
to be affected by friction. Do you have a good material for that?”
As long as the material used meets the customer’s performancerequirements, it doesn’t matter whether it is Zetpol®, or NBR, or
acrylic rubber. Adopting this kind of approach is vital for boostingsales and growing our businesses. By expanding their knowledgeof the wide range of materials that Zeon produces, sales staff cancreate a wider range of business opportunities.
An example of “reinforce”: we added new functionality to
our petroleum resin by using Zeon’s proprietary hydrogenating
technology. Also, the differentiated Asymmetric SIS expands thefield of potential applications from conventional SIS. The use of
cyclo olefin polymer is growing in the field of Head-Mounted Display

ZEON GROUPCORPORATE REPORT 2018

We are accelerating the pace of new business creation and new
product development. In our Latex Business, we have developed
new latex products for use in manufacturing surgical gloves andwork gloves; we expect to see strong growth in demand for theseproducts, particularly in overseas markets. We are also planningto launch a steady stream of new products in the medical device
segment in both FY 2017 and FY 2018. The successful collaborative
development of new single-walled carbon nanotube materials has
been announced by AIST.*In order to facilitate the creation of new business areas throughnew products, we are adopting new R&D systems. One of thesesystems is Multi-review, which has been launched with the aim offacilitating the early commercialization of research topics in the formof new product development. Multi-review involves implementing
review that brings in researchers from other departments toparticipate, so that the potential for new product development

strategy of corporate culture cultivation?

strategy for the new mid-term management plan SZ-20 Phase III (Fig.2)?

23

in the short term with measures for supporting the proposal of new research topics oriented
towards the medium and long term. (See also ➡ P.29 R&D)

Q.4 What is the current situation in terms of measures to promote diversity and CSR regarding the Group-wide

171

146

Q.2 What is being achieved in relation to the objectives of “reinforce,” “explore” and “solution” in the Groupwide
A.2

A.3 【Summary】Z eon has launched a new approach that combines measures for accelerating research activity

212

165
100

Regarding the R&D work that Zeon has been undertaking in the three key development areas of Global
Environment, Health and Living, and Smart Devices, what is the current status of this R&D activity?

(HMD) lenses, because of its superior optical properties, and also
for wafer-handling containers because of its ultra-low out-gassing
and low water vapor transmission.
An example of “explore”: ZS Elastomer, a joint venture with
Sumitomo Chemical, is striving to realize the ideal performanceof tires which balance wet-grip performance, fuel efficiency andfrictional resistance, by combining both companies’ polymer
modification and production technology.
As regards “solutions”, Zeon’s PSC (Powder slush compound)is one example. We tailor material properties to meet customers’
needs to offer solutions. In the battery binder segment, we offer
materials to satisfy customers’ requirements that improve output
and cell durability dynamically, etc.

Conduct has been revised, and we are implementing measures to strengthen CSR promotion andworking to further the reform of our corporate culture. (See also ➡ P.3 Highlight 1, P.34 Zeon’s CSR)

Starting from FY 2017, we have been implementing managementled initiatives to foster diversity. We have held several meetings of aworking group to discuss issues relating to women’s participation andadvancement, and I myself have held one-to-one meetings with nine
middle-ranking female managers. What was brought home to me
by being able to listen to these female managers in person was thatthey are highly motivated, but they also have significant concerns.
This reinforced my conviction that we need to adopt a consistent
approach towards addressing this issue, by formulating career plans
for female employees and by encouraging supervisors to develop abetter understanding of female employees’ needs, etc. Since female
employees currently account for only a relatively small percentage of
all Zeon employees, the first priority is to raise this percentage. We are
implementing various measures, starting with an increase in the numberof female employees that we recruit, and also working to increase thenumber of female managers and the number of female employees
promoted to corporate officer level, etc.
In January 2018, Zeon’s CSR Code of Conduct was revised for the
first time in seven years. This revision of the CSR Code of Conduct
has been undertaken to make clear Zeon’s commitment to meeting
society’s expectations, which represents Zeon’s fundamental approach
to CSR, and to clarify Zeon’s CSR vision. Over the period 2017–2018,presentations outlining Zeon’s CSR—including the approach noted
above—were held 26 times within Japan, as well as in three othercountries (Singapore, Vietnam and Germany).
So what do we mean when we say that we want Zeon to meetsociety’s expectations? As a manufacturer, Zeon meets society’s
expectations by providing differentiated products that customers
appreciate. At a time when problems with product quality at othercompanies are being reported all the time, we regard compliance withlaws and regulations as being a basic requirement for doing business.
Meeting society’s expectations has always been the basis of our CSR,
and in the future we will continue to implement this approach thoroughly.

ZEON GROUPCORPORATE REPORT 201824

Zeon’s Business and Strategy

Elastomer Business+28.3
billion JPY

Net sales
In elastomers, our main business involves the three fields ofsynthetic rubber, synthetic latex, and chemical products, themain raw materials of which are C4 and C5 fractions derived
from naphtha. In 1959, Zeon became the first company inJapan to mass-produce synthetic rubbers. Even today, theElastomer Business is the core Zeon business, providing over
50% of total net sales and operating income.

（+17％）(100 million JPY)

2,000

1,888

1,946

1,789

Elastomer Business breakdown (FY 2017)

Operating income (ratio)

2018（forecast）

1,840

1,662

(100 million JPY)

350
300

1,500

200

222

Latex

（⬆7％）

Chemicals

（⬆2％）

206

2018

（forecast）

170

168

（％）

100
50

0

2014

2015

2016

2017

2018 (FY)58％

Segment
ratio

0

11.6

8.9
2014

Segment
ratio

2015

12.4

2016

1,380

（⬆17％）

150
500

360

Rubber250

1,000

Net sales(100 million JPY)

+1.6
billion JPY
（+8％）

207

Sales quantity(1,000 tons)

130

192

（⬆8％）

131

347

（⬆5％）

20

11.7

10

2017

（⬆23％）

2018 (FY)057％●Reason for +17% change in rubber sales quantity
General purpose +20%: Japan +2%, global +33%
Specialty +5%: Japan 0%, global +8%●Change in specialty rubber ratio
Quantity basis in 2016: 30% → 2017: 27%
Value basis in 2016: 54% → 2017: 51%

Business Overview and Future Strategy
The strategy for the Elastomer Business under the mid-term
management plan SZ-20 Phase III is as follows.

● Reinforce competitive businesses by responding
globally to growth markets and raising costeffectiveness.
● Explore new opportunities and achieve growth
based on Zeon’s reputation built in the market andrelationships with customers.

In FY 2018, demand both in Japan and in overseas markets

equipment for extracting oil and shale gas. In the oil and gas field,that satisfy performance requirements using locally available raw

remained high, as it had been in the previous year, and our facilities

NBR demand corresponding to temperature-range requirements ismaterials are needed. Through technical support, we intend tofor rubber, latex and chemicals have continued to operate at full

also recording solid growth.

contribute to the development of the overall rubber processing

capacity. At the same time, however, as the price of raw materials

Compared with the Japanese market, NBR is more often usedin construction materials and infrastructure-related products inthese negotiations) with those customers with whom a pricing formula

European and North American markets than in automotive partsin our Synthetic Latex Business, are gloves and cosmetic puffs.

has not been established is particularly important.

applications. We anticipate strong growth in the future. DemandCurrently, glove applications mainly consist of disposable gloves. We

is also expanding for acrylic rubber, mainly for automotive parts

will augment our glove applications in the future to include higher

Zeptol® hydrogenated nitrile rubber—has won high praise for its

applications, and we are seriously examining expanding ourvalue-added surgical and work gloves.

superior thermal resistance, and has been widely adopted for oil seal

production capacity.

In the Rubber Business segment, our Specialty cross-linked

Zeon’s NBR takes approximately 90% of the global share of the raw

Demand for general-purpose rubber is also showing

material market for cosmetic puffs. We are proud of the superior highthe Kawasaki Plant to adequately meet future increases in demand.

solid growth overall. Amid this performance, we recorded an

quality of our NBR as the raw material in high-end puffs, which are

extraordinary expense of 14.723 million JPY as an appraisal loss on

gentle on the skin and create smoother-looking makeup application.

well as in seals, gaskets, and hoses in construction equipment andthe manufacturing facilities of our local company in Singapore that

We anticipate ongoing growth in the puff market, especially as thehigh-pressure and high-temperature resistant parts used in drilling

manufactures S-SBR. This loss is the result of delays in transferring

population that wears makeup increases in Asian countries.

manufacturing from our Tokuyama Plant, and lower revenue thanIn our Chemicals Business, sales of thermoplastic elastomer

initially planned due to intensified competition. Despite this, we are

SIS are steadily expanding since we increased our production

Gasket heat resistancecomparison
Heat resistance is improved by
10°C compared withconventional Zetpol®

confident that the market for high-performance, fuel-efficient tires

capacity in 2016. Based on our Asymmetric SIS technology, whichusing S-SBR will grow substantially in the coming years, and we will

received the Award of the Society of Polymer Science, Japan (2017),

continue to focus on S-SBR. We expect ZS Elastomer Co., Ltd., a

we expanded applications into elastic film for disposable diapers andHeat resistance●Growth potential for the High Heat Resistance Rubber Business

HigherHiroyuki Hirakawa
Director & Senior Corporate Officer
Elastomers and Chemicals Business
Division Manager – Logistics

Specialty cross-linked
Zeptol®
Sales performance andsales forecasts
249

Specialty
cross-linked
Zeptol®

NBR

joint venture between Sumitomo Chemical and Zeon, to create new

specialty labels. In addition to improving the smell and color of C5

products attractive to the S-SBR market and customers through thepetroleum resin, we are developing hygienic materials and automotive

integration of our companies’ technologies.

applications by leveraging its low-VOC characteristics. In July

The Asia Technical Support Laboratory (ATSL), which opened in⬆10°C
improvement

Conventional
Zetpol®

ZEON GROUPCORPORATE REPORT 2018

The main applications for NBR latex, which primarily drives sales

applications etc. In 2019, we are increasing the production capacity ofStandard Zetpol® is widely used in automotive part applications as

25

industry in Asia and increase our presence in the region.

has been tending to rise, making price negotiations (and the timing of

148

100

106

2016 20172018
2019(Actual) (Actual) (Forecast) (Forecast)2017 in Singapore, primarily provides technical support in such areas

2017, we installed hydrogenation facilities in the C5 petroleum resin
manufacturing plant at Mizushima Plant.

as blending, kneading, and physical property evaluations of specialty

For powder slush compounds (PSC), getting the Zeon Kasei

oil- and heat-resistant rubbers used in peripheral automotive engine

Mexico plant, which started operations in 2017, fully operational isparts. Rubber processing technology in India and the ASEAN is still in

key. Demand for PSC in high-end automotive interiors is steadily

the development stage. Locally available compounding materials andexpanding, and we are considering opening a fourth plant in addition

chemical agents are limited, and in many cases the blends developed

to our plants in Japan, China, and Mexico.

in Japan, the United States, and Europe cannot be used without
modifications. For this reason, blending and processing technologies

ZEON GROUPCORPORATE REPORT 201826

Zeon’s Business and Strategy

Elastomer Business+28.3
billion JPY

Net sales
In elastomers, our main business involves the three fields ofsynthetic rubber, synthetic latex, and chemical products, themain raw materials of which are C4 and C5 fractions derived
from naphtha. In 1959, Zeon became the first company inJapan to mass-produce synthetic rubbers. Even today, theElastomer Business is the core Zeon business, providing over
50% of total net sales and operating income.

（+17％）(100 million JPY)

2,000

1,888

1,946

1,789

Elastomer Business breakdown (FY 2017)

Operating income (ratio)

2018（forecast）

1,840

1,662

(100 million JPY)

350
300

1,500

200

222

Latex

（⬆7％）

Chemicals

（⬆2％）

206

2018

（forecast）

170

168

（％）

100
50

0

2014

2015

2016

2017

2018 (FY)58％

Segment
ratio

0

11.6

8.9
2014

Segment
ratio

2015

12.4

2016

1,380

（⬆17％）

150
500

360

Rubber250

1,000

Net sales(100 million JPY)

+1.6
billion JPY
（+8％）

207

Sales quantity(1,000 tons)

130

192

（⬆8％）

131

347

（⬆5％）

20

11.7

10

2017

（⬆23％）

2018 (FY)057％●Reason for +17% change in rubber sales quantity
General purpose +20%: Japan +2%, global +33%
Specialty +5%: Japan 0%, global +8%●Change in specialty rubber ratio
Quantity basis in 2016: 30% → 2017: 27%
Value basis in 2016: 54% → 2017: 51%

Business Overview and Future Strategy
The strategy for the Elastomer Business under the mid-term
management plan SZ-20 Phase III is as follows.

● Reinforce competitive businesses by responding
globally to growth markets and raising costeffectiveness.
● Explore new opportunities and achieve growth
based on Zeon’s reputation built in the market andrelationships with customers.

In FY 2018, demand both in Japan and in overseas markets

equipment for extracting oil and shale gas. In the oil and gas field,that satisfy performance requirements using locally available raw

remained high, as it had been in the previous year, and our facilities

NBR demand corresponding to temperature-range requirements ismaterials are needed. Through technical support, we intend tofor rubber, latex and chemicals have continued to operate at full

also recording solid growth.

contribute to the development of the overall rubber processing

capacity. At the same time, however, as the price of raw materials

Compared with the Japanese market, NBR is more often usedin construction materials and infrastructure-related products inthese negotiations) with those customers with whom a pricing formula

European and North American markets than in automotive partsin our Synthetic Latex Business, are gloves and cosmetic puffs.

has not been established is particularly important.

applications. We anticipate strong growth in the future. DemandCurrently, glove applications mainly consist of disposable gloves. We

is also expanding for acrylic rubber, mainly for automotive parts

will augment our glove applications in the future to include higher

Zeptol® hydrogenated nitrile rubber—has won high praise for its

applications, and we are seriously examining expanding ourvalue-added surgical and work gloves.

superior thermal resistance, and has been widely adopted for oil seal

production capacity.

In the Rubber Business segment, our Specialty cross-linked

Zeon’s NBR takes approximately 90% of the global share of the raw

Demand for general-purpose rubber is also showing

material market for cosmetic puffs. We are proud of the superior highthe Kawasaki Plant to adequately meet future increases in demand.

solid growth overall. Amid this performance, we recorded an

quality of our NBR as the raw material in high-end puffs, which are

extraordinary expense of 14.723 million JPY as an appraisal loss on

gentle on the skin and create smoother-looking makeup application.

well as in seals, gaskets, and hoses in construction equipment andthe manufacturing facilities of our local company in Singapore that

We anticipate ongoing growth in the puff market, especially as thehigh-pressure and high-temperature resistant parts used in drilling

manufactures S-SBR. This loss is the result of delays in transferring

population that wears makeup increases in Asian countries.

manufacturing from our Tokuyama Plant, and lower revenue thanIn our Chemicals Business, sales of thermoplastic elastomer

initially planned due to intensified competition. Despite this, we are

SIS are steadily expanding since we increased our production

Gasket heat resistancecomparison
Heat resistance is improved by
10°C compared withconventional Zetpol®

confident that the market for high-performance, fuel-efficient tires

capacity in 2016. Based on our Asymmetric SIS technology, whichusing S-SBR will grow substantially in the coming years, and we will

received the Award of the Society of Polymer Science, Japan (2017),

continue to focus on S-SBR. We expect ZS Elastomer Co., Ltd., a

we expanded applications into elastic film for disposable diapers andHeat resistance●Growth potential for the High Heat Resistance Rubber Business

HigherHiroyuki Hirakawa
Director & Senior Corporate Officer
Elastomers and Chemicals Business
Division Manager – Logistics

Specialty cross-linked
Zeptol®
Sales performance andsales forecasts
249

Specialty
cross-linked
Zeptol®

NBR

joint venture between Sumitomo Chemical and Zeon, to create new

specialty labels. In addition to improving the smell and color of C5

products attractive to the S-SBR market and customers through thepetroleum resin, we are developing hygienic materials and automotive

integration of our companies’ technologies.

applications by leveraging its low-VOC characteristics. In July

The Asia Technical Support Laboratory (ATSL), which opened in⬆10°C
improvement

Conventional
Zetpol®

ZEON GROUPCORPORATE REPORT 2018

The main applications for NBR latex, which primarily drives sales

applications etc. In 2019, we are increasing the production capacity ofStandard Zetpol® is widely used in automotive part applications as

25

industry in Asia and increase our presence in the region.

has been tending to rise, making price negotiations (and the timing of

148

100

106

2016 20172018
2019(Actual) (Actual) (Forecast) (Forecast)2017 in Singapore, primarily provides technical support in such areas

2017, we installed hydrogenation facilities in the C5 petroleum resin
manufacturing plant at Mizushima Plant.

as blending, kneading, and physical property evaluations of specialty

For powder slush compounds (PSC), getting the Zeon Kasei

oil- and heat-resistant rubbers used in peripheral automotive engine

Mexico plant, which started operations in 2017, fully operational isparts. Rubber processing technology in India and the ASEAN is still in

key. Demand for PSC in high-end automotive interiors is steadily

the development stage. Locally available compounding materials andexpanding, and we are considering opening a fourth plant in addition

chemical agents are limited, and in many cases the blends developed

to our plants in Japan, China, and Mexico.

in Japan, the United States, and Europe cannot be used without
modifications. For this reason, blending and processing technologies

ZEON GROUPCORPORATE REPORT 201826

Zeon’s Business and Strategy

Specialty Materials BusinessNet sales
Specialty materials refers to materials and components
offering high added value due to their macromolecular design
and processing technology.
Focusing on future growth areas, we are positioning IT
components (optical, packaging, electronics), energy
materials, and medical devices as our three main businessareas.

（+15％）(100 million JPY)

1,000

865
750

709

710

Specialty Materials Business breakdown (FY 2017)

Operating income (ratio)+11.5
billion JPY
2018（forecast）+ 6.9
billion JPY(100 million JPY)（+70％）

200

850

750

167
160

2018

（forecast）

160

Net sales (100 million JPY)

% change

Specialty
chemicals

243

⬆17％

Specialty
plastics

565

⬆15％

56

⬆10％

120
500

98

94
80

250

40
0

Segment
ratio

2014

2015

2016

2017

2018 (FY)26％

0

Medical, etc.

82

19.4
13.3

2014

11.6

2015

（％）

20

13.1

10

2016

Segment
ratio

2017

2018 (FY)043％●Reason for +17% change in net sales in Specialty Chemicals
Specialty chemicals +12%, electronics materials +15%,
battery materials +34%, toners +2%●Reason for +15% change in net sales in Specialty Plastics
COP resins +7%, optical films +18%

•Optical film sales volume: +8%•Ratio of optical films for small displays (net sales)
2016: 18% → 2017: 28%

Business Overview and Future Strategy
Our strategy for the Specialty Materials Business in SZ-20 Phase
Ⅲ is as follows.

● Expand business in step with the speed of market
growth and technological progress through focusedinvestment of resources and stronger collaboration
with outside players.
The Film Business accounts for a large proportion of
the Specialty Materials Business. Creating growth in the Film
Business is key to increasing overall sales. For this reason, we
increased our production capacity in October 2017. We have

Hiroshi Fujisawa
Director & Corporate Officer
Specialty Business
Division Manager–Specialty
Chemicals

27

ZEON GROUPCORPORATE REPORT 2018

also lowered costs through more efficient use of the cyclo olefin
polymer (COP) raw material, leading to higher profit. ZeonorFilm®
enjoys high demand in LCD panels for large-screen TVs, and we
also anticipate stable growth going forward.
Our sales increased sharply in FY 2017 with the new adoption offilms for liquid crystal panels (LCD) and organic EL panels (OLED) forsmall and medium-sized tablets. We are also currently working on
developing films with superior flexibility for foldable devices.
ZEONEX® and ZEONOR® cyclo olefin polymers arebeing used in applications including automotive sensing camera
lenses that require high heat resistance, lenses for headmounted displays that require precise optical characteristics,
and semiconductor containers where low impurity and lowleachability are critical. Market expansion is anticipated in all ofthese fields.
Pre-filled medical syringes with the ability to prevent protein
solidification have obtained approval for use from the U.S. Foodand Drug Administration (FDA), and we are also promoting themin academic circles. In addition, the prototype provision service
for microfluidic chips we started in FY 2017 is seeing a steadyincrease in the number of orders it receives.
Demand for battery materials (energy materials) isalso rising sharply. A large number of batteries are used in
automobiles. With the growing trend of electric vehicles, themarket is forecast to grow to a large size. The use of stationary
energy storage systems (ESS) as a backup power source inrenewable energy power generation systems is growing. ESS
are shifting from lead batteries to lithium-ion batteries and theirstorage capacity is rising, leading to lower costs for renewableenergy power generation. Demand for Zeon’s energy materials is
anticipated to grow as the use of renewable energy expands inthe coming years.
In Specialty Chemicals, demand for fragrances isparticularly strong. Though emerging manufacturers havereleased fragrances, these manufacturers have been weededout out, so demand for Zeon products has risen and sales are
increasing.
In the Medical Business, our sensor-equipped guide-wire formeasuring intravascular pressure is performing well. In FY 2017,
we launched a balloon catheter for removing bile duct stones,
and in FY 2018, we launched a new catheter for removing bile
duct stones and a new bile duct stent.
(See also ➡ P.5, Highlights 2)
In our Single-Walled Carbon Nanotube Business, we areconducting research on composite materials. In February 2018,
we announced a corking material that forms a composite withliquefied rubber and shields electromagnetic waves.
We established Zeon Specialty Materials Inc. (ZSM) in the
United States to sell advanced materials in North America andEurope. ZSM aims to respond more quickly to market needs in
Silicon Valley, where the tech industry is concentrated.
Strengthening information linkages in Zeon Group and having
individual customers use multiple Zeon products are key to sellingeven more products in the future. There are cases of our etchinggases being used in a customer’s semiconductor manufacturing
division and our films being used in its assembly division. As wego forward, we will look at all customer processes and strive tooffer a diverse variety of Zeon products.

●Diagram of business model strategy for products that use COP
Raw materials procurement& manufacturing

Materials production

Mizushima Plant (Zeon Corp)

Processing & sales

Final product & sales

Takaoka Plant (Zeon Corp)/Optes/Zeon Medical

Customer

ZeonorFilm® films

Large-screen TVs

Dicyclopentadiene
C5
fractionsRisk
C5 fractions areaffected bynaphtha pricefluctuations andsupply volumes

GPI
process

COP
manufacturing

Strength
Zeon’sproprietary GPI
process can
extract raw
materials fromC5 fractions
with a highdegree of purity

Strength
Able to design
the molecular
structure of
COP according
to customer
requirements

Strength

Original manufacturing technology,
dimensional stability, etc.

ZEONEX® for optical lenses and medical usage
Strength

Precise optical characteristics, chemical
resistance, etc.

ZEONEX® for optical lenses and medical usage
StrengthHigh transparency, chemical resistance,
etc.
Strength
Able to replace existing
Precision Optics Laboratory
materials with diverse
Medical Laboratory
variety of available
Strengthmaterials with excellent
Prompt support and close coordination with plants
properties

R&D

Small cameras
Pre-filled syringes
Semiconductor container
Biochips
Resin molds
Strength
Able to diversify risk ofmarket changes using
wide-ranging application
development capabilities

ZEON GROUPCORPORATE REPORT 201828

Zeon’s Business and Strategy

Specialty Materials BusinessNet sales
Specialty materials refers to materials and components
offering high added value due to their macromolecular design
and processing technology.
Focusing on future growth areas, we are positioning IT
components (optical, packaging, electronics), energy
materials, and medical devices as our three main businessareas.

（+15％）(100 million JPY)

1,000

865
750

709

710

Specialty Materials Business breakdown (FY 2017)

Operating income (ratio)+11.5
billion JPY
2018（forecast）+ 6.9
billion JPY(100 million JPY)（+70％）

200

850

750

167
160

2018

（forecast）

160

Net sales (100 million JPY)

% change

Specialty
chemicals

243

⬆17％

Specialty
plastics

565

⬆15％

56

⬆10％

120
500

98

94
80

250

40
0

Segment
ratio

2014

2015

2016

2017

2018 (FY)26％

0

Medical, etc.

82

19.4
13.3

2014

11.6

2015

（％）

20

13.1

10

2016

Segment
ratio

2017

2018 (FY)043％●Reason for +17% change in net sales in Specialty Chemicals
Specialty chemicals +12%, electronics materials +15%,
battery materials +34%, toners +2%●Reason for +15% change in net sales in Specialty Plastics
COP resins +7%, optical films +18%

•Optical film sales volume: +8%•Ratio of optical films for small displays (net sales)
2016: 18% → 2017: 28%

Business Overview and Future Strategy
Our strategy for the Specialty Materials Business in SZ-20 Phase
Ⅲ is as follows.

● Expand business in step with the speed of market
growth and technological progress through focusedinvestment of resources and stronger collaboration
with outside players.
The Film Business accounts for a large proportion of
the Specialty Materials Business. Creating growth in the Film
Business is key to increasing overall sales. For this reason, we
increased our production capacity in October 2017. We have

Hiroshi Fujisawa
Director & Corporate Officer
Specialty Business
Division Manager–Specialty
Chemicals

27

ZEON GROUPCORPORATE REPORT 2018

also lowered costs through more efficient use of the cyclo olefin
polymer (COP) raw material, leading to higher profit. ZeonorFilm®
enjoys high demand in LCD panels for large-screen TVs, and we
also anticipate stable growth going forward.
Our sales increased sharply in FY 2017 with the new adoption offilms for liquid crystal panels (LCD) and organic EL panels (OLED) forsmall and medium-sized tablets. We are also currently working on
developing films with superior flexibility for foldable devices.
ZEONEX® and ZEONOR® cyclo olefin polymers arebeing used in applications including automotive sensing camera
lenses that require high heat resistance, lenses for headmounted displays that require precise optical characteristics,
and semiconductor containers where low impurity and lowleachability are critical. Market expansion is anticipated in all ofthese fields.
Pre-filled medical syringes with the ability to prevent protein
solidification have obtained approval for use from the U.S. Foodand Drug Administration (FDA), and we are also promoting themin academic circles. In addition, the prototype provision service
for microfluidic chips we started in FY 2017 is seeing a steadyincrease in the number of orders it receives.
Demand for battery materials (energy materials) isalso rising sharply. A large number of batteries are used in
automobiles. With the growing trend of electric vehicles, themarket is forecast to grow to a large size. The use of stationary
energy storage systems (ESS) as a backup power source inrenewable energy power generation systems is growing. ESS
are shifting from lead batteries to lithium-ion batteries and theirstorage capacity is rising, leading to lower costs for renewableenergy power generation. Demand for Zeon’s energy materials is
anticipated to grow as the use of renewable energy expands inthe coming years.
In Specialty Chemicals, demand for fragrances isparticularly strong. Though emerging manufacturers havereleased fragrances, these manufacturers have been weededout out, so demand for Zeon products has risen and sales are
increasing.
In the Medical Business, our sensor-equipped guide-wire formeasuring intravascular pressure is performing well. In FY 2017,
we launched a balloon catheter for removing bile duct stones,
and in FY 2018, we launched a new catheter for removing bile
duct stones and a new bile duct stent.
(See also ➡ P.5, Highlights 2)
In our Single-Walled Carbon Nanotube Business, we areconducting research on composite materials. In February 2018,
we announced a corking material that forms a composite withliquefied rubber and shields electromagnetic waves.
We established Zeon Specialty Materials Inc. (ZSM) in the
United States to sell advanced materials in North America andEurope. ZSM aims to respond more quickly to market needs in
Silicon Valley, where the tech industry is concentrated.
Strengthening information linkages in Zeon Group and having
individual customers use multiple Zeon products are key to sellingeven more products in the future. There are cases of our etchinggases being used in a customer’s semiconductor manufacturing
division and our films being used in its assembly division. As wego forward, we will look at all customer processes and strive tooffer a diverse variety of Zeon products.

●Diagram of business model strategy for products that use COP
Raw materials procurement& manufacturing

Materials production

Mizushima Plant (Zeon Corp)

Processing & sales

Final product & sales

Takaoka Plant (Zeon Corp)/Optes/Zeon Medical

Customer

ZeonorFilm® films

Large-screen TVs

Dicyclopentadiene
C5
fractionsRisk
C5 fractions areaffected bynaphtha pricefluctuations andsupply volumes

GPI
process

COP
manufacturing

Strength
Zeon’sproprietary GPI
process can
extract raw
materials fromC5 fractions
with a highdegree of purity

Strength
Able to design
the molecular
structure of
COP according
to customer
requirements

Strength

Original manufacturing technology,
dimensional stability, etc.

ZEONEX® for optical lenses and medical usage
Strength

Precise optical characteristics, chemical
resistance, etc.

ZEONEX® for optical lenses and medical usage
StrengthHigh transparency, chemical resistance,
etc.
Strength
Able to replace existing
Precision Optics Laboratory
materials with diverse
Medical Laboratory
variety of available
Strengthmaterials with excellent
Prompt support and close coordination with plants
properties

R&D

Small cameras
Pre-filled syringes
Semiconductor container
Biochips
Resin molds
Strength
Able to diversify risk ofmarket changes using
wide-ranging application
development capabilities

ZEON GROUPCORPORATE REPORT 201828

Zeon’s Business and Strategy

Research and Development (R&D)

Strengthening Diversity
R&D expenses(100 million JPY)

The R&D Center conducts Zeon Group’s R&D activities with aworkforce of more than 400 researchers. In addition to the
R&D Center’s 10 research buildings located next to the
Kawasaki Plant, we have established other laboratories
located near production plants. We develop new products
and improve existing products through close collaboration
with business units to meet the needs of customers.
Additionally, we are exploring new materials, developing andusing new analysis and simulation techniques, anddeveloping and improving production processes andequipment.

200

150

127

136

141

151
132

100

50

0

2013

2014

2015

2016

2017 (FY)

Increasing Development Speedthrough Selection and Concentration
The companywide strategy established in our SZ-20 Phase Ⅲ
mid-term management plan adopts the keywords of “reinforce”
and “explore.” “Reinforce” refers to how we can combine theinternal strengths we possess companywide, while “explore”
refers to generating new results from external cooperation.
Through these efforts, we will provide “solutions” and makecontributions to society.
We have set the three key development areas of the Global
Environment, Smart Devices, and Health and Living. We
expect to raise the level of our research findings—in other words
our output—in these areas.
The 2016 reorganization of our research and development
structure is gradually producing results. Locating our laboratories
next to our plants is contributing to production stability at an
early stage.
On the other hand, we must admit that new researchfindings have not sufficiently contributed to our management
performance in recent years. One cause of this is the fact thatthe technology seeds we currently possess are not the best fit
with what society needs. To have our products be well received
by customers, they not only need to be of high quality, they also

must fit the cost requirements and the needs of the times when
they are launched.
We will therefore efficiently mobilize our resources of people,
goods, and money and select and concentrate our research
themes to deliver greater results. As part of this, we began using a
multi-review process in 2017. In this process, we collect a wide
range of opinions on individual research themes, including frompeople in other divisions and outside our company, decide the key
performance indicators (KPIs), and conduct evaluations in a shorttimeframe. Incorporating a diverse range of viewpoints helps us
judge whether the individual research theme fits society’s needs
at the time. We then select and concentrate on research themes
where output can be anticipated in the short term.

Strengthening diversity is a companywide strategy of our midterm management plan, and this also includes research anddevelopment.
We are aiming to achieve innovation through reforms of ourcompany culture. We anticipate that efforts including promoting
women’s advancement, hiring researchers from countries otherthan Japan, holding exchanges with outside companies andinstitutions based on open innovation, and creating research
environments that reduce as much as possible the constraintsof time and place will prompt researchers to grow professionallythrough their interactions with a diverse range of people andenvironments and create a foundation that sparks innovation.

*Patent first
At Zeon, we define this as filing patent applications before developing and announcing
products and providing samples. In other words, we conduct product development
after first considering the potential for filing patents.

R&D Based on a Long-term Vision

Intellectual Property Strategy andTechnology-Related Communications
As we have been doing, we are working to expand ourintellectual property rights with the key phrase of “patent first”*
to enhance our competitiveness and contribute to industry
development in line with our corporate strategy. Instead ofusing our technologies as individual points from which to create
intellectual property, we need to strategically connect thesepoints in planes that become intellectual property. In order tomake our technologies into intellectual property, we need to
strategically connect them in “planes” instead of using them as
individual “points.” This leads to product differentiation.
We will maintain a high degree of competitiveness based on
patents that combine and apply leading individual technologies,
including broad conceptual ideas, development of manufacturing
processes and applications, and know-how.

While we have set the Enterprise Blueprint for 2020 as ourgoal, the year 2020 is merely a milestone on our journey. Key
to remaining a company that contributes to society in the
future is identifying promising research themes anticipated todeliver results while envisioning our future aspirations in the key
development areas. Promising refers to future marketability as
well as the potential to create new products by mobilizing ourtechnological assets.
To this end, in 2017 we started using a framework we call the
Innovation Highway. For newly proposed research themes, wecollect opinions from a wide range of viewpoints and determine
whether Zeon’s technologies can be mobilized and whether weshould undertake the research.
We plan to use this framework to more efficiently undertake
research and development that achieves our future aspirations in
the mid- to long term.

●Strengthening output at an early stage and mid- to long-term R&D●R&D System
Research &Development Center

Looking to strengthen our intellectual property strategy, weare placing our Intellectual Property Section within the R&D
Center as well as assigning staff involved in intellectual property
to each laboratory.
It is also important to communicate our technologicalcapabilities to society. While joint research may present
some difficulties, we will communicate technical information,
primarily through presentations at professional societies andpapers published in journals, to increase our presence among
specialized professionals.

Until 2020

Foundation Technology Laboratory2020 and after

New Materials Development Laboratory

Launch line
CNT Laboratory
Elastomer Laboratory
C5 Chemicals Laboratory
Specialty Chemicals Laboratory
Functional Particles Laboratory
Specialty Plastics Laboratory

Producing results at an earlystage through selection
and concentration

Evaluate progressfrom multifaceted
viewpoints inthe multi-review
process
Suspension or
postponement
when KPIs are
not metPrecision Optics Laboratory

Global Key development Healthareas
Environmentand Living
Smart
Devices

Maintain a good balanceof short-term and long-term
R&D themes in the key
development areas

Medical Laboratory

Review and select research themes anticipatedto generate results in the mid- to long term using
the Innovation Highway

Manufactured Product Development Laboratory

Sachio Hayashi
Director & Senior Corporate Officer
Research & Development
Division Manager—Research & Development Center

29

ZEON GROUPCORPORATE REPORT 2018

Production Technology Laboratory

Research theme ideas

ZEON GROUPCORPORATE REPORT 201830

Zeon’s Business and Strategy

Research and Development (R&D)

Strengthening Diversity
R&D expenses(100 million JPY)

The R&D Center conducts Zeon Group’s R&D activities with aworkforce of more than 400 researchers. In addition to the
R&D Center’s 10 research buildings located next to the
Kawasaki Plant, we have established other laboratories
located near production plants. We develop new products
and improve existing products through close collaboration
with business units to meet the needs of customers.
Additionally, we are exploring new materials, developing andusing new analysis and simulation techniques, anddeveloping and improving production processes andequipment.

200

150

127

136

141

151
132

100

50

0

2013

2014

2015

2016

2017 (FY)

Increasing Development Speedthrough Selection and Concentration
The companywide strategy established in our SZ-20 Phase Ⅲ
mid-term management plan adopts the keywords of “reinforce”
and “explore.” “Reinforce” refers to how we can combine theinternal strengths we possess companywide, while “explore”
refers to generating new results from external cooperation.
Through these efforts, we will provide “solutions” and makecontributions to society.
We have set the three key development areas of the Global
Environment, Smart Devices, and Health and Living. We
expect to raise the level of our research findings—in other words
our output—in these areas.
The 2016 reorganization of our research and development
structure is gradually producing results. Locating our laboratories
next to our plants is contributing to production stability at an
early stage.
On the other hand, we must admit that new researchfindings have not sufficiently contributed to our management
performance in recent years. One cause of this is the fact thatthe technology seeds we currently possess are not the best fit
with what society needs. To have our products be well received
by customers, they not only need to be of high quality, they also

must fit the cost requirements and the needs of the times when
they are launched.
We will therefore efficiently mobilize our resources of people,
goods, and money and select and concentrate our research
themes to deliver greater results. As part of this, we began using a
multi-review process in 2017. In this process, we collect a wide
range of opinions on individual research themes, including frompeople in other divisions and outside our company, decide the key
performance indicators (KPIs), and conduct evaluations in a shorttimeframe. Incorporating a diverse range of viewpoints helps us
judge whether the individual research theme fits society’s needs
at the time. We then select and concentrate on research themes
where output can be anticipated in the short term.

Strengthening diversity is a companywide strategy of our midterm management plan, and this also includes research anddevelopment.
We are aiming to achieve innovation through reforms of ourcompany culture. We anticipate that efforts including promoting
women’s advancement, hiring researchers from countries otherthan Japan, holding exchanges with outside companies andinstitutions based on open innovation, and creating research
environments that reduce as much as possible the constraintsof time and place will prompt researchers to grow professionallythrough their interactions with a diverse range of people andenvironments and create a foundation that sparks innovation.

*Patent first
At Zeon, we define this as filing patent applications before developing and announcing
products and providing samples. In other words, we conduct product development
after first considering the potential for filing patents.

R&D Based on a Long-term Vision

Intellectual Property Strategy andTechnology-Related Communications
As we have been doing, we are working to expand ourintellectual property rights with the key phrase of “patent first”*
to enhance our competitiveness and contribute to industry
development in line with our corporate strategy. Instead ofusing our technologies as individual points from which to create
intellectual property, we need to strategically connect thesepoints in planes that become intellectual property. In order tomake our technologies into intellectual property, we need to
strategically connect them in “planes” instead of using them as
individual “points.” This leads to product differentiation.
We will maintain a high degree of competitiveness based on
patents that combine and apply leading individual technologies,
including broad conceptual ideas, development of manufacturing
processes and applications, and know-how.

While we have set the Enterprise Blueprint for 2020 as ourgoal, the year 2020 is merely a milestone on our journey. Key
to remaining a company that contributes to society in the
future is identifying promising research themes anticipated todeliver results while envisioning our future aspirations in the key
development areas. Promising refers to future marketability as
well as the potential to create new products by mobilizing ourtechnological assets.
To this end, in 2017 we started using a framework we call the
Innovation Highway. For newly proposed research themes, wecollect opinions from a wide range of viewpoints and determine
whether Zeon’s technologies can be mobilized and whether weshould undertake the research.
We plan to use this framework to more efficiently undertake
research and development that achieves our future aspirations in
the mid- to long term.

●Strengthening output at an early stage and mid- to long-term R&D●R&D System
Research &Development Center

Looking to strengthen our intellectual property strategy, weare placing our Intellectual Property Section within the R&D
Center as well as assigning staff involved in intellectual property
to each laboratory.
It is also important to communicate our technologicalcapabilities to society. While joint research may present
some difficulties, we will communicate technical information,
primarily through presentations at professional societies andpapers published in journals, to increase our presence among
specialized professionals.

Until 2020

Foundation Technology Laboratory2020 and after

New Materials Development Laboratory

Launch line
CNT Laboratory
Elastomer Laboratory
C5 Chemicals Laboratory
Specialty Chemicals Laboratory
Functional Particles Laboratory
Specialty Plastics Laboratory

Producing results at an earlystage through selection
and concentration

Evaluate progressfrom multifaceted
viewpoints inthe multi-review
process
Suspension or
postponement
when KPIs are
not metPrecision Optics Laboratory

Global Key development Healthareas
Environmentand Living
Smart
Devices

Maintain a good balanceof short-term and long-term
R&D themes in the key
development areas

Medical Laboratory

Review and select research themes anticipatedto generate results in the mid- to long term using
the Innovation Highway

Manufactured Product Development Laboratory

Sachio Hayashi
Director & Senior Corporate Officer
Research & Development
Division Manager—Research & Development Center

29

ZEON GROUPCORPORATE REPORT 2018

Production Technology Laboratory

Research theme ideas

ZEON GROUPCORPORATE REPORT 201830

Zeon’s Business and Strategy

Corporate GovernanceDirectors and Officers (as of December 1, 2018)
Visit our
Corporate Governance Report (PDF)
corporate
website for more http://www.zeon.co.jp/csr_e/management.html
information

Directors

Zeon aims to increase profits and enhance corporate value on an ongoing basis while respecting and balancing the various
interests of its shareholders and other diverse stakeholders. To this end, we are continuing efforts to build a system that enables
efficient and sound corporate management through corporate governance.
Having a system of corporate governance allows us to clarify the functions and roles of each organizational entity within thecompany and to carry out rapid decision-making and execution. We are also improving corporate transparency through appropriatemonitoring and disclosure of business activities and their effects. We are determined to further enhance our corporate governancesystem to effectively carry out these aims.

●Corporate Governance System
General Meeting of Shareholders
Decisions/Supervision(appointments/dismissals)

Director andOfficer Nomination and
Board of Directors
Compensation Committee Suggestions

Auditing

Decisions/Supervision(selections/dismissals)(Dismissals)

Corporate Auditors (Board)
Auditing

Collaboration

Financial Auditors
Financial
AuditsBusiness Execution &Internal Controls System

Representative Director

Executive Committee
Department ofInternal Auditing

CSR Conference
Risk Management Committee
Compliance Committee
Information Management Committee
Environmental & Safety Affairs Committee
Quality Assurance Committee
PL Committee
Public Relations Committee

Reporting(external)

Internal audits

CSR
Basic Policy
Committee

President

Director & Senior Corporate Officer

Director & Senior Corporate Officer

Naozumi Furukawa

Kimiaki Tanaka

Hiroyuki Hirakawa

Toru Nishijima

The Board of Directors meets, in principle, every
month with corporate auditors in attendance toensure compliance with applicable laws and the
Articles of Incorporation in the execution ofbusiness. In addition to its statutory duties, therole of the Board of Directors is to makeimportant decisions about basic management
policy, strategy, and other aspects of businessexecution. As of July 2018, the Board of
Directors consists of 11 directors, including threeoutside directors.

Chairman of
TOHPE CORPORATION

Director & Senior Corporate Officer

Director & Senior Corporate Officer

Director & Corporate Officer

Director & Corporate Officer

Hirofumi Imai

Sachio Hayashi

Takeo Furuya

Hiroshi Fujisawa

CSR
Elastomers and Chemicals Business
Division Manager – Logistics

Production and Engineering Technology
Division Manager – Production Center●Executive Committee

ReportingExternal
lawyers

The Executive Committee, in accordance with
the Executive Committee Rules, comprises the
President and executive officers ranked senior
corporate officer or above and meets twice amonth in principle to examine and makedecisions on important business matters afterdue deliberation involving consultation withattending full-time corporate auditors. Importantbusiness matters stipulated in the Board of
Director Rules are examined and decided by the
Board of Directors.

Administration
Division Manager – Raw Material
General Manager – China Business
Administration

Research & Development
Division Manager – Research &Development Center

Carbon Nanotube Business
Vice president of Zeon Nano
Technology Co., Ltd.

Specialty Business
Division Manager – Specialty
Chemicals
President of TFC Inc.
President of Zeon CSC Corporation●Board of Corporate Auditors
Reporting(external)

Collaboration(Appointments/
dismissals)(Appointments/
dismissals)

Reporting (internal)

RequireadviceChairman●Board of Directors

Business execution divisions

The Board of Corporate Auditors comprises fivemembers, including three outside corporate
auditors. The Board reports, discusses, andadopts resolutions on important businessmatters. In accordance with the auditing
guidelines established by the Board of Corporate
Auditors, each corporate auditor audits directors’
execution of their duties through various means,such as attending Board of Directors meetingsand monitoring business operations, including
subsidiaries' operations.

Director

Director

Haruo Itoh

Takao Kitabata

Tadanobu Nagumo

Adviser – Fuji Electric Co., Ltd.

Chairman of Board – Sanda Gakuen
Junior High School & High School

Chairman and Representative Member ofthe Board – The Yokohama Rubber Co., Ltd.

Audit & Supervisory Board

Risk Management
The Risk Management Committee, the Compliance Committee and the Information
Management Committee, along with the subcommittees, namely the Antitrust Law
Regulatory Subcommittee, the Export Security Control Subcommittee, and the
Corporate Governance Subcommittee, are advancing Zeon's risk management andcompliance initiatives.

Director●Risk Management and Compliance System

MemberExternal Member

Tadayuki Minami
Shinichi Hirakawa

Adviser – ASAHI MUTUAL LIFE INSURANCE CO.

CSR Conference

Akio Kohri
Chairman and Chief Executive Officer – ADEKA CORPORATION

Nobutake Nishijima

Risk Management Committee
Prevention and control of risks
Crisis management

Yuzuru Fujita

Corporate Adviser – NIPPON TOCHI-TATEMONO Co., Ltd.

Corporate Officer

Compliance Committee

Tomoyuki Kose

Takafumi Kawanaka

Prevention of legal violations
Education and training in compliance with laws

Plant Manager – Mizushima Plant

Plant Manager – Kawasaki Plant

Antitrust Law Regulatory Subcommittee
Export Security Control Subcommittee
Corporate Governance Subcommittee

Information Management
Committee
Appropriate management of information

Tetsuya Toyoshima

Tsutomu Eguchi

Director & Corporate Officer – Zeon Chemicals Incorporated

Division Manager – Human Resources

Makoto Yokota

Yoshiyuki Sone

Division Manager – Corporate Administration
President – Zeon F&B Co., Ltd.
General Manager – Business Innovation Promotion

Division Manager – Specialty Components

Makoto Watanabe
Plant Manager – Tokuyama Plant

Kazuyoshi Matsuura

Erisa Watanabe
Division Manager – CSR

Satoshi Tominaga
Division Manager – Corporate Planning
General Manager – Corporate Planning

Division Manager – Synthetic Rubber

31

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201832

Zeon’s Business and Strategy

Corporate GovernanceDirectors and Officers (as of December 1, 2018)
Visit our
Corporate Governance Report (PDF)
corporate
website for more http://www.zeon.co.jp/csr_e/management.html
information

Directors

Zeon aims to increase profits and enhance corporate value on an ongoing basis while respecting and balancing the various
interests of its shareholders and other diverse stakeholders. To this end, we are continuing efforts to build a system that enables
efficient and sound corporate management through corporate governance.
Having a system of corporate governance allows us to clarify the functions and roles of each organizational entity within thecompany and to carry out rapid decision-making and execution. We are also improving corporate transparency through appropriatemonitoring and disclosure of business activities and their effects. We are determined to further enhance our corporate governancesystem to effectively carry out these aims.

●Corporate Governance System
General Meeting of Shareholders
Decisions/Supervision(appointments/dismissals)

Director andOfficer Nomination and
Board of Directors
Compensation Committee Suggestions

Auditing

Decisions/Supervision(selections/dismissals)(Dismissals)

Corporate Auditors (Board)
Auditing

Collaboration

Financial Auditors
Financial
AuditsBusiness Execution &Internal Controls System

Representative Director

Executive Committee
Department ofInternal Auditing

CSR Conference
Risk Management Committee
Compliance Committee
Information Management Committee
Environmental & Safety Affairs Committee
Quality Assurance Committee
PL Committee
Public Relations Committee

Reporting(external)

Internal audits

CSR
Basic Policy
Committee

President

Director & Senior Corporate Officer

Director & Senior Corporate Officer

Naozumi Furukawa

Kimiaki Tanaka

Hiroyuki Hirakawa

Toru Nishijima

The Board of Directors meets, in principle, every
month with corporate auditors in attendance toensure compliance with applicable laws and the
Articles of Incorporation in the execution ofbusiness. In addition to its statutory duties, therole of the Board of Directors is to makeimportant decisions about basic management
policy, strategy, and other aspects of businessexecution. As of July 2018, the Board of
Directors consists of 11 directors, including threeoutside directors.

Chairman of
TOHPE CORPORATION

Director & Senior Corporate Officer

Director & Senior Corporate Officer

Director & Corporate Officer

Director & Corporate Officer

Hirofumi Imai

Sachio Hayashi

Takeo Furuya

Hiroshi Fujisawa

CSR
Elastomers and Chemicals Business
Division Manager – Logistics

Production and Engineering Technology
Division Manager – Production Center●Executive Committee

ReportingExternal
lawyers

The Executive Committee, in accordance with
the Executive Committee Rules, comprises the
President and executive officers ranked senior
corporate officer or above and meets twice amonth in principle to examine and makedecisions on important business matters afterdue deliberation involving consultation withattending full-time corporate auditors. Importantbusiness matters stipulated in the Board of
Director Rules are examined and decided by the
Board of Directors.

Administration
Division Manager – Raw Material
General Manager – China Business
Administration

Research & Development
Division Manager – Research &Development Center

Carbon Nanotube Business
Vice president of Zeon Nano
Technology Co., Ltd.

Specialty Business
Division Manager – Specialty
Chemicals
President of TFC Inc.
President of Zeon CSC Corporation●Board of Corporate Auditors
Reporting(external)

Collaboration(Appointments/
dismissals)(Appointments/
dismissals)

Reporting (internal)

RequireadviceChairman●Board of Directors

Business execution divisions

The Board of Corporate Auditors comprises fivemembers, including three outside corporate
auditors. The Board reports, discusses, andadopts resolutions on important businessmatters. In accordance with the auditing
guidelines established by the Board of Corporate
Auditors, each corporate auditor audits directors’
execution of their duties through various means,such as attending Board of Directors meetingsand monitoring business operations, including
subsidiaries' operations.

Director

Director

Haruo Itoh

Takao Kitabata

Tadanobu Nagumo

Adviser – Fuji Electric Co., Ltd.

Chairman of Board – Sanda Gakuen
Junior High School & High School

Chairman and Representative Member ofthe Board – The Yokohama Rubber Co., Ltd.

Audit & Supervisory Board

Risk Management
The Risk Management Committee, the Compliance Committee and the Information
Management Committee, along with the subcommittees, namely the Antitrust Law
Regulatory Subcommittee, the Export Security Control Subcommittee, and the
Corporate Governance Subcommittee, are advancing Zeon's risk management andcompliance initiatives.

Director●Risk Management and Compliance System

MemberExternal Member

Tadayuki Minami
Shinichi Hirakawa

Adviser – ASAHI MUTUAL LIFE INSURANCE CO.

CSR Conference

Akio Kohri
Chairman and Chief Executive Officer – ADEKA CORPORATION

Nobutake Nishijima

Risk Management Committee
Prevention and control of risks
Crisis management

Yuzuru Fujita

Corporate Adviser – NIPPON TOCHI-TATEMONO Co., Ltd.

Corporate Officer

Compliance Committee

Tomoyuki Kose

Takafumi Kawanaka

Prevention of legal violations
Education and training in compliance with laws

Plant Manager – Mizushima Plant

Plant Manager – Kawasaki Plant

Antitrust Law Regulatory Subcommittee
Export Security Control Subcommittee
Corporate Governance Subcommittee

Information Management
Committee
Appropriate management of information

Tetsuya Toyoshima

Tsutomu Eguchi

Director & Corporate Officer – Zeon Chemicals Incorporated

Division Manager – Human Resources

Makoto Yokota

Yoshiyuki Sone

Division Manager – Corporate Administration
President – Zeon F&B Co., Ltd.
General Manager – Business Innovation Promotion

Division Manager – Specialty Components

Makoto Watanabe
Plant Manager – Tokuyama Plant

Kazuyoshi Matsuura

Erisa Watanabe
Division Manager – CSR

Satoshi Tominaga
Division Manager – Corporate Planning
General Manager – Corporate Planning

Division Manager – Synthetic Rubber

31

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201832

Zeon’s CSR

Zeon’s CSR
Visit ourZeon’s CSR
corporate
website for more http://www.zeon.co.jp/csr_e/concept.html
information

At Zeon, we regard CSR activities as all activities undertaken to continue being “acompany trusted and valued by society.” With all employees acting with an awareness of
CSR, we ensure compliance and contribute to the global environment and sustainable
development through our corporate activities. In April 2010, we established the Zeon CSR
Policy and the more specific CSR Code of Conduct. In January 2011, we established ourcurrent CSR Management Framework.
The CSR Code of Conduct was revised in January 2018. This revision clearly specifies
Zeon’s commitment to meeting society’s expectations, which represents Zeon’s
fundamental approach to CSR, and restructures the CSR activities that Zeon undertakes.
(See also ➡ P.3, Highlights 1)

Zeon CSR Policy (established April 2010)
1. W
 e will ensure compliance and meet society’s needs for safety andsecurity
2. W
 e will contribute to sustainably developing society and protecting
the global environment through our corporate activities
3. W e will ensure that each and every Zeon person is aware of CSR andacts accordingly●Committee functions

CSR Management Framework

Zeon’s CSR
We ensure compliance and conduct safe and stable production activities.
At our global business locations, we conduct business activities together with local residents
as a member of the local community.

Zeon’s CSR

P.34

CSR Implementation Plan

P.35

Environment

P.41

Fair Operating Practices/Human Rights

P.42

Labor Practices

P.43

Community

P.45

The CSR Management Framework comprises the CSR Conference and eight committees.
Chaired by the President and held six times a year, the CSR Conference is the chief
decision-making body on matters relating to CSR. The CSR Conference is held to review
and finalize committee activities, initiatives, and annual activity plans, and to give necessary
instruction based on progress reports.
The committees report to the CSR Conference and advance CSR activities in their specificareas. The eight committees are the CSR Basic Policy Committee, the Risk Management
Committee, the Compliance Committee, the Information Management Committee, theEnvironmental and Safety Affairs Committee, the Quality Assurance Committee, the PL
Committee, and the Public Relations Committee.
●Zeon’s CSR Management Framework
President

CSR Headquarters

CSR
Coordination Division

CSR
Promotion Department

CSR Basic Policy
Committee

CSR Promotional
Committees at Offices
and Group Companies

General Affairs
Department

Risk Management
Committee
CSR Conference

Environmental & Safety
Affairs Department

Compliance
Committee

Antitrust Law
Regulatory Subcommittee

Quality Assurance
Department

Information Management
Committee

Export Security Control
Subcommittee

Legal Affairs
Department

Environmental & Safety
Affairs Committee

Corporate Governance
Subcommittee

Department ofCorporate
Communications

Quality AssuranceCommittee
PL Committee

Department ofInternal Auditing

CSR Basic Policy Committee
Provides guidance and support for CSR
Promotional Committee activities. Builds
systems to support making social contributions.
Risk Management Committee
Responsible for systematically preventing
potential risks and handling risks that emerge.
Compliance Committee
Education and training in legal compliance.
Oversees three compliance subcommittees.
Information Management Committee
Planning, implementation status management,
and formulation of proposals for improvement,in regard to the appropriate management of
information.
Environmental and Safety Affairs
Committee
Plans and proposes environmental and safetymeasures and monitors their progress.
Quality Assurance Committee
Activities related to quality assurance. Reviews,
takes action on, and make improvements to
QA problems.
PL Committee
Manages prevention activities, training, andemergency response related to productliability.
Public Relations Committee
Enhances Zeon’s reputation and image
through communication activities. Discloses
necessary information at appropriate times.

Public Relations
Committee

33

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201834

Zeon’s CSR
Visit ourZeon’s CSR
corporate
website for more http://www.zeon.co.jp/csr_e/concept.html
information

At Zeon, we regard CSR activities as all activities undertaken to continue being “acompany trusted and valued by society.” With all employees acting with an awareness of
CSR, we ensure compliance and contribute to the global environment and sustainable
development through our corporate activities. In April 2010, we established the Zeon CSR
Policy and the more specific CSR Code of Conduct. In January 2011, we established ourcurrent CSR Management Framework.
The CSR Code of Conduct was revised in January 2018. This revision clearly specifies
Zeon’s commitment to meeting society’s expectations, which represents Zeon’s
fundamental approach to CSR, and restructures the CSR activities that Zeon undertakes.
(See also ➡ P.3, Highlights 1)

Zeon CSR Policy (established April 2010)
1. W
 e will ensure compliance and meet society’s needs for safety andsecurity
2. W
 e will contribute to sustainably developing society and protecting
the global environment through our corporate activities
3. W e will ensure that each and every Zeon person is aware of CSR andacts accordingly●Committee functions

CSR Management Framework
The CSR Management Framework comprises the CSR Conference and eight committees.
Chaired by the President and held six times a year, the CSR Conference is the chief
decision-making body on matters relating to CSR. The CSR Conference is held to review
and finalize committee activities, initiatives, and annual activity plans, and to give necessary
instruction based on progress reports.
The committees report to the CSR Conference and advance CSR activities in their specificareas. The eight committees are the CSR Basic Policy Committee, the Risk Management
Committee, the Compliance Committee, the Information Management Committee, theEnvironmental and Safety Affairs Committee, the Quality Assurance Committee, the PL
Committee, and the Public Relations Committee.
●Zeon’s CSR Management Framework
President

CSR Headquarters

CSR
Coordination Division

CSR
Promotion Department

CSR Basic Policy
Committee

CSR Promotional
Committees at Offices
and Group Companies

General Affairs
Department

Risk Management
Committee
CSR Conference

Quality Assurance
Department

Compliance
Committee

Antitrust Law
Regulatory Subcommittee

Legal Affairs
Department

Information Management
Committee

Export Security Control
Subcommittee

Department ofCorporate
Communications

Environmental & Safety
Affairs Committee

Corporate Governance
Subcommittee

Quality AssuranceCommittee
PL Committee

CSR Basic Policy Committee
Provides guidance and support for CSR
Promotional Committee activities. Builds
systems to support making social contributions.
Risk Management Committee
Responsible for systematically preventing
potential risks and handling risks that emerge.
Compliance Committee
Education and training in legal compliance.
Oversees three compliance subcommittees.
Information Management Committee
Planning, implementation status management,
and formulation of proposals for improvement,in regard to the appropriate management of
information.
Environmental and Safety Affairs
Committee
Plans and proposes environmental and safetymeasures and monitors their progress.
Quality Assurance Committee
Activities related to quality assurance. Reviews,
takes action on, and make improvements to
QA problems.
PL Committee
Manages prevention activities, training, andemergency response related to productliability.
Public Relations Committee
Enhances Zeon’s reputation and image
through communication activities. Discloses
necessary information at appropriate times.

Public Relations
Committee

ZEON GROUPCORPORATE REPORT 201834

Zeon’s CSR

CSR Implementation Plan

The Zeon Group’s CSR Implementation Plan has been formulated on the basis of ISO 26000, the international standard for CSR.
The CSR Implementation Plan specifies the progress that needs to be made in order to realize the Enterprise Blueprint for 2020, in
terms of ISO 26000’s Seven Core Subjects. The CSR Implementation Plan shows what measures the Zeon Group is implementing in
relation to the Seven Core Subjects, which embody society’s expectations.
In the future, we will further the dissemination of the CSR Implementation Plan both within and outside the Zeon Group, andimplement activities aimed at helping all stakeholders to understand Zeon’s CSR measures.

Structure of Zeon Group’s CSR Implementation Plan

1. Corporate Governance Decision-making as an organization
Correlation with SDGs:
Goal 16: Peace, Justice and Strong Institutions
Goal 17: Partnerships for the Goals

Enterprise Blueprint for 2020

Details of current activities

To meet the expectations of society( ■ : Completed, △ : Ongoing)

Decision-making with accountability andtransparency

ISO 26000
Seven Core
Subjects

Enterprise Blueprint for 2020 =To meet the expectations ofsociety

Activities currently
being implemented

Items for future
implementation

Society’s
expectations

Zeon Grouptargets

Initiatives toachieve our goals

Remaining challenges to achieve
the Enterprise Blueprint for 2020

Initiatives for the Enterprise Blueprint for 2020
While addressing the remaining challenges stated as “Items
for future implementation” in the CSR Implementation Plan, we
will monitor how close we are to the Enterprise Blueprint for2020. We will then consider what we need to do next to achieve
the Enterprise Blueprint for 2020 and update the items for
future implementation.

Enterprise Blueprint for 2020

Zeon makes the Future Today
through the Power of Chemistry
Zeon will continue to contribute to the realization of customer
dreams and a prosperous society through employees’ individual growth.

・Organizational decision-making is conducted appropriately
based on internal regulations
・Business divisions carry out their operations using the
PDCA cycle based on policies
・The process of decision-making takes into considerationsocial and environmental impacts

Corporate governance・Corporate governance functions effectively and reasonably
・Many business processes are handled using key businesssystems designed based on internal regulations, andthe overall framework creates a very low level of error inprocesses
・When risks to corporate governance arise, systems
operate to appropriately address the risks under theproper authority

Risk management
・Established a global crisis management structure
・The Compliance Hotline is operated appropriately

Business continuity

Initiatives supporting the realization of the SDGs by 2030
Adopted at a United Nations summit, the Sustainable
Development Goals (SDGs) are a call to action to addresscritical international issues by 2030.
Taking into consideration a diverse range of social issues
from developing and developed countries, the United Nations
has set 17 goals and 169 detailed targets. Companies are also

expected to make contributions to achieve these goals.
In accordance with the principles of the SDGs, the Zeon
Group is also making contributions to achieve the goals throughbusiness activities as a chemicals manufacturer.
Also see ➡ P.40, “Correlation between the SDGs andZeon’s business activities”

・Independent business continuity management (BCM)
activities (establishing a BCM system, periodically revising
BCM through drills and other means, etc.) are conducted
throughout the Zeon Group, and have become establishedand reinforced.

Future initiatives and targets△ System to develop internal regulations in the CSR
implementation framework(Create internal rules → Apply to routine work)△ Operations address corporate governance(details of results below)
・Zeon Corporation’s Basic Policy on Corporate
Governance (Japanese Only)
http://www.zeon.co.jp/content/200281514.pdf
・Corporate Governance Report (Japanese Only)
http://www.zeon.co.jp/content/200323153.pdf

1. Continue implementing our CSR promotion structure,and periodically revise its operations based on society’s
expectations△ Report corporate governance reports(status of system for ensuring appropriateness ofbusiness affairs)△ Develop work systems△ Conduct corporate governance activities to satisfy
Japan’s Corporate Governance Code

1. Improve internal control level at Zeon Group companies■ Create a risk table and periodically revise it△ Evaluate risks using the risk table, and conduct the sameacross the Zeon Group (Japan/global)■ Operate an internal reporting system■ Continue sending out information and conducting
legal education using the CSR Code of Conduct andcompliance texts

1. Evaluate the risk table and give guidance for
improvements at divisions and Group companies, andhorizontally implement successful cases
2. Consider can business risks broadly and manage them inview of demands and society’s expectations.

■ Examine and establish business continuity
management (BCM)■ Create and periodically revise various business continuity
plans (companywide BCP, division BCP, raw materials
procurement BCP, etc.)

1. Support for establishing an independent BCM structure
through drills and other means (support so that individualorganizations can create the situation of conducting the
PDCA cycle for BCM by themselves)

2. Human Rights Protect basic rights granted to all people
Correlation with SDGs:
Goal 1: No Poverty, Goal 2: Zero Hunger, Goal 3: Good Health and Well-Being,
Goal 5: Gender Equality, Goal 10: Reduced Inequalities

Enterprise Blueprint for 2020
To meet the expectations of society
Discrimination and vulnerable groups,
avoidance of complicity
・The section on respect for human rights and prohibitionof discrimination in the CSR Code of Conduct has beenshared with all Zeon Group companies and Zeon Groupbusiness partners, and compliance with the prohibitions
on child labor and forced labor are confirmed

35

ZEON GROUPCORPORATE REPORT 2018

Details of current activities( ■ : Completed, △ : Ongoing)■ Release Zeon Group’s CSR Code of Conduct and CSR
Procurement Guidelines on the Corporate Report andthe Zeon corporate website△ Conduct CSR education through means including having
employees read compliance texts, e-learning, and CSR
informational sessions

Future initiatives and targets
1. Provide information on the Zeon Group’s CSR Codeof Conduct and CSR Procurement Guidelines tobusiness partners (business, procurement, and materials
purchasing departments)
2. Build a database of external reports related to respectfor human rights at business partners (supply chain CSR
survey database) (CSR Implementation Department)
3. Establish a policy specific to human rights and implement
it across the Zeon GroupZEON GROUPCORPORATE REPORT 201836

Zeon’s CSR

CSR Implementation Plan

The Zeon Group’s CSR Implementation Plan has been formulated on the basis of ISO 26000, the international standard for CSR.
The CSR Implementation Plan specifies the progress that needs to be made in order to realize the Enterprise Blueprint for 2020, in
terms of ISO 26000’s Seven Core Subjects. The CSR Implementation Plan shows what measures the Zeon Group is implementing in
relation to the Seven Core Subjects, which embody society’s expectations.
In the future, we will further the dissemination of the CSR Implementation Plan both within and outside the Zeon Group, andimplement activities aimed at helping all stakeholders to understand Zeon’s CSR measures.

Structure of Zeon Group’s CSR Implementation Plan

1. Corporate Governance Decision-making as an organization
Correlation with SDGs:
Goal 16: Peace, Justice and Strong Institutions
Goal 17: Partnerships for the Goals

Enterprise Blueprint for 2020

Details of current activities

To meet the expectations of society( ■ : Completed, △ : Ongoing)

Decision-making with accountability andtransparency

ISO 26000
Seven Core
Subjects

Enterprise Blueprint for 2020 =To meet the expectations ofsociety

Activities currently
being implemented

Items for future
implementation

Society’s
expectations

Zeon Grouptargets

Initiatives toachieve our goals

Remaining challenges to achieve
the Enterprise Blueprint for 2020

Initiatives for the Enterprise Blueprint for 2020
While addressing the remaining challenges stated as “Items
for future implementation” in the CSR Implementation Plan, we
will monitor how close we are to the Enterprise Blueprint for2020. We will then consider what we need to do next to achieve
the Enterprise Blueprint for 2020 and update the items for
future implementation.

Enterprise Blueprint for 2020

Zeon makes the Future Today
through the Power of Chemistry
Zeon will continue to contribute to the realization of customer
dreams and a prosperous society through employees’ individual growth.

・Organizational decision-making is conducted appropriately
based on internal regulations
・Business divisions carry out their operations using the
PDCA cycle based on policies
・The process of decision-making takes into considerationsocial and environmental impacts

Corporate governance・Corporate governance functions effectively and reasonably
・Many business processes are handled using key businesssystems designed based on internal regulations, andthe overall framework creates a very low level of error inprocesses
・When risks to corporate governance arise, systems
operate to appropriately address the risks under theproper authority

Risk management
・Established a global crisis management structure
・The Compliance Hotline is operated appropriately

Business continuity

Initiatives supporting the realization of the SDGs by 2030
Adopted at a United Nations summit, the Sustainable
Development Goals (SDGs) are a call to action to addresscritical international issues by 2030.
Taking into consideration a diverse range of social issues
from developing and developed countries, the United Nations
has set 17 goals and 169 detailed targets. Companies are also

expected to make contributions to achieve these goals.
In accordance with the principles of the SDGs, the Zeon
Group is also making contributions to achieve the goals throughbusiness activities as a chemicals manufacturer.
Also see ➡ P.40, “Correlation between the SDGs andZeon’s business activities”

・Independent business continuity management (BCM)
activities (establishing a BCM system, periodically revising
BCM through drills and other means, etc.) are conducted
throughout the Zeon Group, and have become establishedand reinforced.

Future initiatives and targets△ System to develop internal regulations in the CSR
implementation framework(Create internal rules → Apply to routine work)△ Operations address corporate governance(details of results below)
・Zeon Corporation’s Basic Policy on Corporate
Governance (Japanese Only)
http://www.zeon.co.jp/content/200281514.pdf
・Corporate Governance Report (Japanese Only)
http://www.zeon.co.jp/content/200323153.pdf

1. Continue implementing our CSR promotion structure,and periodically revise its operations based on society’s
expectations△ Report corporate governance reports(status of system for ensuring appropriateness ofbusiness affairs)△ Develop work systems△ Conduct corporate governance activities to satisfy
Japan’s Corporate Governance Code

1. Improve internal control level at Zeon Group companies■ Create a risk table and periodically revise it△ Evaluate risks using the risk table, and conduct the sameacross the Zeon Group (Japan/global)■ Operate an internal reporting system■ Continue sending out information and conducting
legal education using the CSR Code of Conduct andcompliance texts

1. Evaluate the risk table and give guidance for
improvements at divisions and Group companies, andhorizontally implement successful cases
2. Consider can business risks broadly and manage them inview of demands and society’s expectations.

■ Examine and establish business continuity
management (BCM)■ Create and periodically revise various business continuity
plans (companywide BCP, division BCP, raw materials
procurement BCP, etc.)

1. Support for establishing an independent BCM structure
through drills and other means (support so that individualorganizations can create the situation of conducting the
PDCA cycle for BCM by themselves)

2. Human Rights Protect basic rights granted to all people
Correlation with SDGs:
Goal 1: No Poverty, Goal 2: Zero Hunger, Goal 3: Good Health and Well-Being,
Goal 5: Gender Equality, Goal 10: Reduced Inequalities

Enterprise Blueprint for 2020
To meet the expectations of society
Discrimination and vulnerable groups,
avoidance of complicity
・The section on respect for human rights and prohibitionof discrimination in the CSR Code of Conduct has beenshared with all Zeon Group companies and Zeon Groupbusiness partners, and compliance with the prohibitions
on child labor and forced labor are confirmed

35

ZEON GROUPCORPORATE REPORT 2018

Details of current activities( ■ : Completed, △ : Ongoing)■ Release Zeon Group’s CSR Code of Conduct and CSR
Procurement Guidelines on the Corporate Report andthe Zeon corporate website△ Conduct CSR education through means including having
employees read compliance texts, e-learning, and CSR
informational sessions

Future initiatives and targets
1. Provide information on the Zeon Group’s CSR Codeof Conduct and CSR Procurement Guidelines tobusiness partners (business, procurement, and materials
purchasing departments)
2. Build a database of external reports related to respectfor human rights at business partners (supply chain CSR
survey database) (CSR Implementation Department)
3. Establish a policy specific to human rights and implement
it across the Zeon GroupZEON GROUPCORPORATE REPORT 201836

Zeon’s CSR

3. Labor Practices

Based on Japanese law and international standards, fulfill not only our minimum obligations but alsoestablish better work environments and systems for organizations and employees

4. Environment

The organization takes responsibility for the environment, and promotes preventive measures
Correlation with SDGs:
Goal 6: Clean Water and Sanitation, Goal 7: Affordable and Clean Energy,
Goal 9: Industry, Innovation and Infrastructure,
Goal 12: Responsible Consumption and Production,
Goal 13: Climate Action, Goal 14: Life Below Water, Goal 15: Life on Land

Correlation with SDGs:
Goal 3: Good Health and Well-Being, Goal 4: Quality Education,
Goal 5: Gender Equality, Goal 8: Decent Work and Economic GrowthEnterprise Blueprint for 2020

Details of current activities

To meet the expectations of society( ■ : Completed, △ : Ongoing)

Employment
・Equal employment opportunities are ensured.
(employment)△ Set a numerical target for women new graduate hires△ Hiring of non-Japanese employees (mid-career
employees, exchange students)△ Expand re-employment system for employees reaching
the age of mandatory retirement

Future initiatives and targets
1. Further expand employment not tied to gender,
nationality, race, age, disability, or other attribute
2. Build a supply chain CSR survey database of labor
practices at business partners

FY 2017 results
No. of employees rehired after mandatory retirement: 17(94.4%)

Labor conditions and social protections
・Workplaces are re-energized by promoting diversity
and the fair and equitable treatment of personnel(appointments)△ Appropriately implement HR systems△ Support for employee skills and career development△ Harassment prevention△ MD Committee activities by women members (including
dialogue between senior management and women employees)△ Implementation of employment for people with disabilities

Labor conditions and social protections

Occupational health and safety
・Policies for managing workplace health and safety
and the health of employees have been strengthened,
work hours are appropriately managed, and the numberof people reporting physical and mental health issues isdeclining significantly.
・Rate of abnormal results in routine physical exams is at or
below standard

Occupational health and safety
・Increased trust in Zeon to protect local communities’safety and security by conducting emergency drills andother initiatives such as concluding disaster cooperationagreements
・All worksites have earned public trust by maintaining asafety record of zero incidents and accidents

HR development and training at workplaces
・Have proactively enhanced awareness and made further
improvements in the areas of health and safety throughcomprehensive education

1. Further pursue dynamic work styles(Promote taking annual paid vacation)△ Include health management in top policy and take steps
to maintain and improve the physical and mental healthof employees
・Conduct mental health education and run a committee
for determining returning to work
・Ensure labor hours management and prevent excessive work
・Encourage leaving work on time and taking of annual
paid vacation
・Detect changes in health early through stress checks
・Provide guidance to prevent lifestyle diseases

1. Promote improved physical and mental health for all
employees, who are the source of the company’s strength
・Enhance mental health education
・Implement company policies and create conditions forbetter health and well-being△ Implement the Safety Management Improvement Master
Plan△ Fully implement deterioration countermeasures andidentify measures to prevent errors, and horizontally
implement measures arising from cases of accidents atother companies and plants△ Eliminate safety incidents: Regularly conduct plant safety
evaluations and audits△ Eliminate occupational accidents△ Improve safety in logistics△ Conduct comprehensive emergency-response drills andmonthly drills by our self-defense emergency response teams■ Conclude cooperation agreements with local
governments (Cooperative Agreement for Disaster
Prevention in Industrial Complexes)△ Participate in community disaster readiness activities

To improve safety capabilities

37

ZEON GROUPCORPORATE REPORT 2018

△ Provide training to enhance accident prevention
awareness (4 plants, 1 Group company)(e.g., education using accident case studies, hands-on
training)△ Promote the 5S’s → 3S’s

Pollution prevention
Climate change mitigation and adaptation
・ All plants received public recognition for theirenvironmental impact reductions
・Proactively enhance awareness and make further
improvements in the areas of the environment and energy
conservation through comprehensive education△ Reduce emissions of hazardous substances, industrial
waste, and impacts on atmospheric and water
environments△ Improve energy conservation in Responsible Care audits,
the Safety Management System, the Environment
Management System based on ISO 14001, and theEnergy Conservation Implementation Committee
FY 2017 results● Zero environmental incidents● Environmental impact reductions
・Per-unit energy consumption: +6%
・Per-unit CO2 emissions: +11%

Climate change mitigation and adaptation■ Introduce flex-time systems■ Develop a shortened work-hours system for childcare
and family caregiving■ Draft the general employer’s action plan under the Act
on Advancement of Measures to Support Raising NextGeneration Children and implement related notifications
to acquire the Kurumin mark in Japan
Childcare
support systems (shortened working hours,△
overtime restrictions and exemptions, sick care leave,breast feeding time, etc.)△ Return-to-work program for employees taking childcare
and caregiving leave△ Reduce long working hours△ Implement a work-from-home system on a trial basis

FY 2017 results● Plant safety evaluations conducted 100%● Implement RC audits conducted (once/year or more forall 4 plants)● Eliminate safety incidents: 2 safety incidents● Eliminate occupational accidents: 2 occupational
accidents resulting in lost work time
● Zero serious accidents without lost work time
● Improve safety in logistics: 0 accidents in logistics

Details of current activities( ■ : Completed, △ : Ongoing)

1. Promote diversity-oriented management
・Appoint more women employees to higher positions
・Appoint more employees who are non-Japanesenationals to higher positions
・Advance employment of older persons
・Create a systematic professional development system

FY 2017 results
Percentage of employees with disabilities: 2.07%

・Promote work–life balance (harmony between work andlife) to enable people to work while also caring for children
and/or sick families

Enterprise Blueprint for 2020
To meet the expectations of society

・Products with reduced environmental load continue
to be developed and launched in the market.

■ Develop S-SBR for fuel-efficient tire, low-temperature
toners, ZEORORA® with zero ODP, and binders forlithium-ion batteries

Future initiatives and targets
1. Conduct environmental management using the multiple
systems noted on the left
2. Implement activities companywide to reduce
environmental load
3. Identify energy-saving measures and implement them on
an ongoing basis
4. Conduct risk assessments of hazardous chemical
substances
Targets● Zero environmental incidents● Environmental impact reduction targets
・Per-unit energy consumption: -1% average per year
・Per-unit CO2 emissions: -1% average per year

1. Research and development, manufacturing, andsales that address environmental issues faced bysociety

5. Fair Operating Practices Ethical organizational conduct in interactions with other organizations
Correlation with SDGs:
Goal 10: Reduced Inequalities
Goal 16: Peace, Justice and Strong Institutions

Enterprise Blueprint for 2020

Details of current activities

To meet the expectations of society( ■ : Completed, △ : Ongoing)

Fair competition

1. Conduct four safety activities (“4R-KY”) at all Group
companies (supply chain development)
2. Reinforce specified sources of hazards to prevent safety
accidents
3. Enhance dialogue activities on safety, the environment,
and quality with local communities

・Are complying with all laws and regulations, ordinances,agreements, and internal regulations, and acting with highethical standards based on being a model for society
・Management policies are broadly understood andcompliance awareness is widespread. As a result, by
proactively conducting CSR activities and adapting toenvironmental changes, business continuity as well assustainable development are achieved

Targets● Plant safety evaluations conducted 100%● Implement RC audits (once/year or more for all 4 plants)● Eliminate safety incidents: 0 safety incidents● Eliminate occupational accidents: 0 occupational
accidents resulting in lost work time
● Zero serious accidents without lost work time
● Improve safety in logistics: 0 accidents in logistics● Implement the above guidelines at Group companies

Fair competition
・Information is disclosed quickly and appropriately, andmarket value has increased(Including negative information regarding businessconditions, CSR, risks, etc.)

1. Conduct safety education companywide (supply chain
development)
2. Implement the 3S’s companywide (supply chain
development)

Social responsibility in the value chain
・Select business partners based on the CSR Procurement
Guidelines and periodically confirm the Guidelines’ statusof implementation

Future initiatives and targets■ Enact and implement management regulations including
those on insider trading and appropriate disclosure△ Comply with internal regulations including the Export
Security Control Regulations△ Appropriately implement regulations to comply with
the Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade (Antimonopoly Act)△ Compliance with the Subcontract Act and the Act for
Securing the Proper Operation of Worker Dispatching
Undertakings (prevention of falsified contracts)△ Regulations in the CSR Code of Conduct and the CSR
Procurement Guidelines△ Employees read the CSR Textbook and Compliance
Textbook and take e-learning courses△ Conduct CSR education including holding CSR
informational sessions△ Hold workshops on legal and regulatory compliance△ Legal compliance inspections△ Regularly revise internal regulations (to satisfy legal
amendments)

To reduce legal risks△ Hold financial results briefings△ Publish various reports△ Release information via the company website△ Hold briefings for individual investors and analysts andrespond to media inquiries△ Hold press conferences for mass media outlets andothersTo enhance the corporate brand and value■ Multiple-source△ Comply with laws and regulations on competition
including the Antimonopoly Act△ Satisfy the RoHS Directive, bans on substances, etc.
△ Purchasing following the CSR Procurement Guidelines

1. Develop and establish the CSR Code of Conduct andCSR Procurement Guidelines in the supply chain
2. Build the supply chain CSR survey database● Compliance with internal regulations● Ongoing legal training and information sharing using theCompliance Textbook and other materials● Education on the CSR Code of Conduct● Ongoing compliance education● Revise the Compliance Textbook and the CSR Textbook
and hold related informational meetings● Ongoing CSR briefings by the head of the CSR division● Support the establishment of compliance systems at
Zeon Group companies outside Japan (develop in the
supply chain)● Shift from compliance to sustainability (promote
understanding among management and establish among
employees)● Become a signatory to the United Nations Global
Compact

1. Improve the website (IR, CSR information)
2. Strengthen the information communications structure(PR)
3. Communicate information that supports ESG investment

ZEON GROUPCORPORATE REPORT 201838

Zeon’s CSR

3. Labor Practices

Based on Japanese law and international standards, fulfill not only our minimum obligations but alsoestablish better work environments and systems for organizations and employees

4. Environment

The organization takes responsibility for the environment, and promotes preventive measures
Correlation with SDGs:
Goal 6: Clean Water and Sanitation, Goal 7: Affordable and Clean Energy,
Goal 9: Industry, Innovation and Infrastructure,
Goal 12: Responsible Consumption and Production,
Goal 13: Climate Action, Goal 14: Life Below Water, Goal 15: Life on Land

Correlation with SDGs:
Goal 3: Good Health and Well-Being, Goal 4: Quality Education,
Goal 5: Gender Equality, Goal 8: Decent Work and Economic GrowthEnterprise Blueprint for 2020

Details of current activities

To meet the expectations of society( ■ : Completed, △ : Ongoing)

Employment
・Equal employment opportunities are ensured.
(employment)△ Set a numerical target for women new graduate hires△ Hiring of non-Japanese employees (mid-career
employees, exchange students)△ Expand re-employment system for employees reaching
the age of mandatory retirement

Future initiatives and targets
1. Further expand employment not tied to gender,
nationality, race, age, disability, or other attribute
2. Build a supply chain CSR survey database of labor
practices at business partners

FY 2017 results
No. of employees rehired after mandatory retirement: 17(94.4%)

Labor conditions and social protections
・Workplaces are re-energized by promoting diversity
and the fair and equitable treatment of personnel(appointments)△ Appropriately implement HR systems△ Support for employee skills and career development△ Harassment prevention△ MD Committee activities by women members (including
dialogue between senior management and women employees)△ Implementation of employment for people with disabilities

Labor conditions and social protections

Occupational health and safety
・Policies for managing workplace health and safety
and the health of employees have been strengthened,
work hours are appropriately managed, and the numberof people reporting physical and mental health issues isdeclining significantly.
・Rate of abnormal results in routine physical exams is at or
below standard

Occupational health and safety
・Increased trust in Zeon to protect local communities’safety and security by conducting emergency drills andother initiatives such as concluding disaster cooperationagreements
・All worksites have earned public trust by maintaining asafety record of zero incidents and accidents

HR development and training at workplaces
・Have proactively enhanced awareness and made further
improvements in the areas of health and safety throughcomprehensive education

1. Further pursue dynamic work styles(Promote taking annual paid vacation)△ Include health management in top policy and take steps
to maintain and improve the physical and mental healthof employees
・Conduct mental health education and run a committee
for determining returning to work
・Ensure labor hours management and prevent excessive work
・Encourage leaving work on time and taking of annual
paid vacation
・Detect changes in health early through stress checks
・Provide guidance to prevent lifestyle diseases

1. Promote improved physical and mental health for all
employees, who are the source of the company’s strength
・Enhance mental health education
・Implement company policies and create conditions forbetter health and well-being△ Implement the Safety Management Improvement Master
Plan△ Fully implement deterioration countermeasures andidentify measures to prevent errors, and horizontally
implement measures arising from cases of accidents atother companies and plants△ Eliminate safety incidents: Regularly conduct plant safety
evaluations and audits△ Eliminate occupational accidents△ Improve safety in logistics△ Conduct comprehensive emergency-response drills andmonthly drills by our self-defense emergency response teams■ Conclude cooperation agreements with local
governments (Cooperative Agreement for Disaster
Prevention in Industrial Complexes)△ Participate in community disaster readiness activities

To improve safety capabilities

37

ZEON GROUPCORPORATE REPORT 2018

△ Provide training to enhance accident prevention
awareness (4 plants, 1 Group company)(e.g., education using accident case studies, hands-on
training)△ Promote the 5S’s → 3S’s

Pollution prevention
Climate change mitigation and adaptation
・ All plants received public recognition for theirenvironmental impact reductions
・Proactively enhance awareness and make further
improvements in the areas of the environment and energy
conservation through comprehensive education△ Reduce emissions of hazardous substances, industrial
waste, and impacts on atmospheric and water
environments△ Improve energy conservation in Responsible Care audits,
the Safety Management System, the Environment
Management System based on ISO 14001, and theEnergy Conservation Implementation Committee
FY 2017 results● Zero environmental incidents● Environmental impact reductions
・Per-unit energy consumption: +6%
・Per-unit CO2 emissions: +11%

Climate change mitigation and adaptation■ Introduce flex-time systems■ Develop a shortened work-hours system for childcare
and family caregiving■ Draft the general employer’s action plan under the Act
on Advancement of Measures to Support Raising NextGeneration Children and implement related notifications
to acquire the Kurumin mark in Japan
Childcare
support systems (shortened working hours,△
overtime restrictions and exemptions, sick care leave,breast feeding time, etc.)△ Return-to-work program for employees taking childcare
and caregiving leave△ Reduce long working hours△ Implement a work-from-home system on a trial basis

FY 2017 results● Plant safety evaluations conducted 100%● Implement RC audits conducted (once/year or more forall 4 plants)● Eliminate safety incidents: 2 safety incidents● Eliminate occupational accidents: 2 occupational
accidents resulting in lost work time
● Zero serious accidents without lost work time
● Improve safety in logistics: 0 accidents in logistics

Details of current activities( ■ : Completed, △ : Ongoing)

1. Promote diversity-oriented management
・Appoint more women employees to higher positions
・Appoint more employees who are non-Japanesenationals to higher positions
・Advance employment of older persons
・Create a systematic professional development system

FY 2017 results
Percentage of employees with disabilities: 2.07%

・Promote work–life balance (harmony between work andlife) to enable people to work while also caring for children
and/or sick families

Enterprise Blueprint for 2020
To meet the expectations of society

・Products with reduced environmental load continue
to be developed and launched in the market.

■ Develop S-SBR for fuel-efficient tire, low-temperature
toners, ZEORORA® with zero ODP, and binders forlithium-ion batteries

Future initiatives and targets
1. Conduct environmental management using the multiple
systems noted on the left
2. Implement activities companywide to reduce
environmental load
3. Identify energy-saving measures and implement them on
an ongoing basis
4. Conduct risk assessments of hazardous chemical
substances
Targets● Zero environmental incidents● Environmental impact reduction targets
・Per-unit energy consumption: -1% average per year
・Per-unit CO2 emissions: -1% average per year

1. Research and development, manufacturing, andsales that address environmental issues faced bysociety

5. Fair Operating Practices Ethical organizational conduct in interactions with other organizations
Correlation with SDGs:
Goal 10: Reduced Inequalities
Goal 16: Peace, Justice and Strong Institutions

Enterprise Blueprint for 2020

Details of current activities

To meet the expectations of society( ■ : Completed, △ : Ongoing)

Fair competition

1. Conduct four safety activities (“4R-KY”) at all Group
companies (supply chain development)
2. Reinforce specified sources of hazards to prevent safety
accidents
3. Enhance dialogue activities on safety, the environment,
and quality with local communities

・Are complying with all laws and regulations, ordinances,agreements, and internal regulations, and acting with highethical standards based on being a model for society
・Management policies are broadly understood andcompliance awareness is widespread. As a result, by
proactively conducting CSR activities and adapting toenvironmental changes, business continuity as well assustainable development are achieved

Targets● Plant safety evaluations conducted 100%● Implement RC audits (once/year or more for all 4 plants)● Eliminate safety incidents: 0 safety incidents● Eliminate occupational accidents: 0 occupational
accidents resulting in lost work time
● Zero serious accidents without lost work time
● Improve safety in logistics: 0 accidents in logistics● Implement the above guidelines at Group companies

Fair competition
・Information is disclosed quickly and appropriately, andmarket value has increased(Including negative information regarding businessconditions, CSR, risks, etc.)

1. Conduct safety education companywide (supply chain
development)
2. Implement the 3S’s companywide (supply chain
development)

Social responsibility in the value chain
・Select business partners based on the CSR Procurement
Guidelines and periodically confirm the Guidelines’ statusof implementation

Future initiatives and targets■ Enact and implement management regulations including
those on insider trading and appropriate disclosure△ Comply with internal regulations including the Export
Security Control Regulations△ Appropriately implement regulations to comply with
the Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade (Antimonopoly Act)△ Compliance with the Subcontract Act and the Act for
Securing the Proper Operation of Worker Dispatching
Undertakings (prevention of falsified contracts)△ Regulations in the CSR Code of Conduct and the CSR
Procurement Guidelines△ Employees read the CSR Textbook and Compliance
Textbook and take e-learning courses△ Conduct CSR education including holding CSR
informational sessions△ Hold workshops on legal and regulatory compliance△ Legal compliance inspections△ Regularly revise internal regulations (to satisfy legal
amendments)

To reduce legal risks△ Hold financial results briefings△ Publish various reports△ Release information via the company website△ Hold briefings for individual investors and analysts andrespond to media inquiries△ Hold press conferences for mass media outlets andothersTo enhance the corporate brand and value■ Multiple-source△ Comply with laws and regulations on competition
including the Antimonopoly Act△ Satisfy the RoHS Directive, bans on substances, etc.
△ Purchasing following the CSR Procurement Guidelines

1. Develop and establish the CSR Code of Conduct andCSR Procurement Guidelines in the supply chain
2. Build the supply chain CSR survey database● Compliance with internal regulations● Ongoing legal training and information sharing using theCompliance Textbook and other materials● Education on the CSR Code of Conduct● Ongoing compliance education● Revise the Compliance Textbook and the CSR Textbook
and hold related informational meetings● Ongoing CSR briefings by the head of the CSR division● Support the establishment of compliance systems at
Zeon Group companies outside Japan (develop in the
supply chain)● Shift from compliance to sustainability (promote
understanding among management and establish among
employees)● Become a signatory to the United Nations Global
Compact

1. Improve the website (IR, CSR information)
2. Strengthen the information communications structure(PR)
3. Communicate information that supports ESG investment

ZEON GROUPCORPORATE REPORT 201838

Zeon’s CSR

6. Consumer Issues

Not causing harm to consumers, and not causing consumers to have harmful effects on society

Correlation between the SDGs and Zeon’s business activities

Correlation with SDGs:
Goal 9: Industry, Innovation and Infrastructure
Goal 12: Responsible Consumption and Production

Enterprise Blueprint for 2020

Details of current activities

To meet the expectations of society( ■ : Completed, △ : Ongoing)

Protecting consumers’ health and safety
・Both quality and cost are globally first rate

Sustainable consumption△ Have a quality management system based on ISO 9001
△ Manage quality assurance risks (product liability lawsuits,
supply obligations, product recalls, and credibility loss
due to rumors)△ Improve processes (reduce losses, improve consistency)△ Develop activities for production innovations△ Develop business based on business plans

・Developed and launched a series of products thatare beneficial to society

Future initiatives and targets
1. To maintain and expand conditions where Zeon products
are chosen● Establish systems to definitively reduce complaints,
process abnormalities, and defects, prevent defective
products from leaving Zeon, create corporate quality
trusted by customers, and further improve customer
satisfaction● Develop initiatives for chemical substance regulations● Develop Zeon’s quality management system at Zeon
Group companies outside Japan and at outsourcing
partners
2. Measure customer satisfaction to understand thecurrent satisfaction level, set targets, and promote
improvements

1. Research and development, manufacturing, andsales that address consumer issues faced bysociety

A large number of people and organizations are involved in the supply
chain, from obtaining the raw materials to production and product supply thatform Zeon’s business activities. In this process, there are areas where we can
exercise our influence. Many of our products are also used in other products,
including automobiles and buildings. There are ways in which our value cancontribute to resolving issues faced by society.
Zeon is a company that provides materials to companies, and we contributeto resolving issues faced by society throughout all of our business activities.

A. Contributions through our actions in the
supply chain, from securing raw materials
to production and product supply

ZEON
B. Contributions through products andprovided value using Zeon products

7. Community

Involvement in and contribution to the community in various forms, from dialogue with local
residents to improvement of education and culture in the community and local employment creation

Correlation with SDGs:
Goal 4: Quality Education, Goal 9: Industry, Innovation and Infrastructure,
Goal 11: Sustainable Cities and Communities, Goal 17: Partnerships for the Goals

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities( ■ : Completed, △ : Ongoing)

Community involvement, education, and culture△ Develop CSR Core Projects (social contribution activities
by Group as a whole, among locations, and at individual
worksites)● Develop the CSR Core Projects based on a defined Zeon
Group activity policy△ Upgrade and enhance the system for promoting
volunteer activities (establish a volunteer leave system)△ Introduce volunteer activities and promote andsupport participation in them (volunteering to support
reconstruction from earthquakes, etc.)● Raise employee awareness for social contributions
・Conduct CSR education including CSR informationalsessions
・Establish a social contribution policy for the entire Zeon
Group (e.g., on water)● Create a system to support volunteering (volunteer
registration system, etc.)● Create opportunities for social contributions fromexchanges with local councils of social welfare, nongovernmental organizations and non-profit organizations

・Zeon’s social contributions are understood, receive
recognition, and are supported

Community involvement
・An organization for promoting volunteer activities among
employees has been established, and employees actively
volunteer in various ways

FY 2017 results
Number of employees participating in volunteer tours: 60(cumulative total of 425 employees)

Community involvement
・Guidelines for coexisting with local communities havebeen created and are used, and good relations have been
built with local communities

Technological development and access totechnologies■ Formulate and utilize disaster recovery support standards△ Donations and charity activities (Furukawa Scholarship,
expenses for community promotions, Red Cross, etc.)△ Maintain good community relations and have community
exchanges
・Sponsor and participate in community festivals andevents including summer festivals at plants
・Community cleanup activities
・Plant tours (receive plant visitors, internships)

Future initiatives and targets● Maintain and expand exchanges with local
communities
・Support the reconstruction of the Tohoku region
・Devise and implement ongoing measures to support
recovery from disasters
・Actively participate in community activities● Through dialogue with stakeholders including local
communities, identify expectations from society, thecurrent level of meeting those expectations, and set
targets

Potential for contributions from Zeon’s business activities to the 17 goals and 169 targets
that make up the SDGs (examples)
3. Good health andwell-being

9. Industry, innovationand infrastructure

12. Responsible
consumption andproduction“Ensure healthy lives and promote wellbeing for all at all ages”“Build resilient infrastructure,promote inclusive and sustainableindustrialization, and foster innovation”“Ensure sustainable consumption andproduction patterns”

Target 3.6:
By 2020, halve the number of global
deaths and injuries from road traffic
accidents.

Target 9.b:Support domestic technology
development, research and innovation indeveloping countries including by ensuring
a conducive policy environment for, interalia, industrial diversification and value
addition to commodities.

Target 12.4:
By 2020, achieve the environmentallysound management of chemicals andall wastes throughout their life cycle, in
accordance with agreed internationalframeworks, and significantly reduce theirrelease to air, water and soil in order tominimize their adverse impacts on humanhealth and the environment.

➡ Potential for Zeon contributions
Potential for contributions frombusiness related to the auto
industry➡ Potential for Zeon contributions
Contribute to enhancing productvalue based on “reinforce” and“explore”➡ Potential for Zeon contributions
Promote reduced consumption
and discharge as ongoing
independent initiatives● Strategy for “reinforce” and “explore” in the Research andDevelopment Division and business divisions

Explore the needs of society and cultivate the seeds to meetthese needs based on unique technologies and unparalleledproducts to create new business and make contributions tosociety.

39

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201840

Zeon’s CSR

6. Consumer Issues

Not causing harm to consumers, and not causing consumers to have harmful effects on society

Correlation between the SDGs and Zeon’s business activities

Correlation with SDGs:
Goal 9: Industry, Innovation and Infrastructure
Goal 12: Responsible Consumption and Production

Enterprise Blueprint for 2020

Details of current activities

To meet the expectations of society( ■ : Completed, △ : Ongoing)

Protecting consumers’ health and safety
・Both quality and cost are globally first rate

Sustainable consumption△ Have a quality management system based on ISO 9001
△ Manage quality assurance risks (product liability lawsuits,
supply obligations, product recalls, and credibility loss
due to rumors)△ Improve processes (reduce losses, improve consistency)△ Develop activities for production innovations△ Develop business based on business plans

・Developed and launched a series of products thatare beneficial to society

Future initiatives and targets
1. To maintain and expand conditions where Zeon products
are chosen● Establish systems to definitively reduce complaints,
process abnormalities, and defects, prevent defective
products from leaving Zeon, create corporate quality
trusted by customers, and further improve customer
satisfaction● Develop initiatives for chemical substance regulations● Develop Zeon’s quality management system at Zeon
Group companies outside Japan and at outsourcing
partners
2. Measure customer satisfaction to understand thecurrent satisfaction level, set targets, and promote
improvements

1. Research and development, manufacturing, andsales that address consumer issues faced bysociety

A large number of people and organizations are involved in the supply
chain, from obtaining the raw materials to production and product supply thatform Zeon’s business activities. In this process, there are areas where we can
exercise our influence. Many of our products are also used in other products,
including automobiles and buildings. There are ways in which our value cancontribute to resolving issues faced by society.
Zeon is a company that provides materials to companies, and we contributeto resolving issues faced by society throughout all of our business activities.

A. Contributions through our actions in the
supply chain, from securing raw materials
to production and product supply

ZEON
B. Contributions through products andprovided value using Zeon products

7. Community

Involvement in and contribution to the community in various forms, from dialogue with local
residents to improvement of education and culture in the community and local employment creation

Correlation with SDGs:
Goal 4: Quality Education, Goal 9: Industry, Innovation and Infrastructure,
Goal 11: Sustainable Cities and Communities, Goal 17: Partnerships for the Goals

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities( ■ : Completed, △ : Ongoing)

Community involvement, education, and culture△ Develop CSR Core Projects (social contribution activities
by Group as a whole, among locations, and at individual
worksites)● Develop the CSR Core Projects based on a defined Zeon
Group activity policy△ Upgrade and enhance the system for promoting
volunteer activities (establish a volunteer leave system)△ Introduce volunteer activities and promote andsupport participation in them (volunteering to support
reconstruction from earthquakes, etc.)● Raise employee awareness for social contributions
・Conduct CSR education including CSR informationalsessions
・Establish a social contribution policy for the entire Zeon
Group (e.g., on water)● Create a system to support volunteering (volunteer
registration system, etc.)● Create opportunities for social contributions fromexchanges with local councils of social welfare, nongovernmental organizations and non-profit organizations

・Zeon’s social contributions are understood, receive
recognition, and are supported

Community involvement
・An organization for promoting volunteer activities among
employees has been established, and employees actively
volunteer in various ways

FY 2017 results
Number of employees participating in volunteer tours: 60(cumulative total of 425 employees)

Community involvement
・Guidelines for coexisting with local communities havebeen created and are used, and good relations have been
built with local communities

Technological development and access totechnologies■ Formulate and utilize disaster recovery support standards△ Donations and charity activities (Furukawa Scholarship,
expenses for community promotions, Red Cross, etc.)△ Maintain good community relations and have community
exchanges
・Sponsor and participate in community festivals andevents including summer festivals at plants
・Community cleanup activities
・Plant tours (receive plant visitors, internships)

Future initiatives and targets● Maintain and expand exchanges with local
communities
・Support the reconstruction of the Tohoku region
・Devise and implement ongoing measures to support
recovery from disasters
・Actively participate in community activities● Through dialogue with stakeholders including local
communities, identify expectations from society, thecurrent level of meeting those expectations, and set
targets

Potential for contributions from Zeon’s business activities to the 17 goals and 169 targets
that make up the SDGs (examples)
3. Good health andwell-being

9. Industry, innovationand infrastructure

12. Responsible
consumption andproduction“Ensure healthy lives and promote wellbeing for all at all ages”“Build resilient infrastructure,promote inclusive and sustainableindustrialization, and foster innovation”“Ensure sustainable consumption andproduction patterns”

Target 3.6:
By 2020, halve the number of global
deaths and injuries from road traffic
accidents.

Target 9.b:Support domestic technology
development, research and innovation indeveloping countries including by ensuring
a conducive policy environment for, interalia, industrial diversification and value
addition to commodities.

Target 12.4:
By 2020, achieve the environmentallysound management of chemicals andall wastes throughout their life cycle, in
accordance with agreed internationalframeworks, and significantly reduce theirrelease to air, water and soil in order tominimize their adverse impacts on humanhealth and the environment.

➡ Potential for Zeon contributions
Potential for contributions frombusiness related to the auto
industry➡ Potential for Zeon contributions
Contribute to enhancing productvalue based on “reinforce” and“explore”➡ Potential for Zeon contributions
Promote reduced consumption
and discharge as ongoing
independent initiatives● Strategy for “reinforce” and “explore” in the Research andDevelopment Division and business divisions

Explore the needs of society and cultivate the seeds to meetthese needs based on unique technologies and unparalleledproducts to create new business and make contributions tosociety.

39

ZEON GROUPCORPORATE REPORT 2018

ZEON GROUPCORPORATE REPORT 201840

Zeon’s CSR

Environment

Fair Operating Practices/Human Rights
Visit ourEnvironment
corporate
website for more http://www.zeon.co.jp/csr_e/environment.html
information

Fair Operating Practices
Visit our
http://www.zeon.co.jp/csr_e/suppliers.html
corporate
website for more Human Rights
information

http://www.zeon.co.jp/csr_e/humanrights.html

Environmental Philosophy (established August 2001)

Fair operating practices

1. E
 nvironmental protection is a mission of a socially responsible organization
2. O ur basic belief is that environmental protection can be achieved with
innovative technology
3. E nvironmental protection will be achieved when all employees work together
with a sense of mission to overcome challenges
We established our Responsible Care Policy embodying the principles of Responsible
Care* in 1998, and established our Environmental Philosophy in 2001. We set goals for
the Zeon Group’s environmental initiatives based on the two approaches of reducing
environmental impacts and developing environmentally friendly products, and eachplant plans and executes specific environmental initiatives.

Reducing environmental impacts*R esponsible Care: A voluntary initiative by businesses
that manufacture or handle chemical substances toachieve continuous improvement in health, safety, andenvironmental (HSE) performance across the entire life
cycle of such substances—from development andmanufacture, through distribution and use, and ending in
final consumption or disposal—based on the principles
of independent decision-making and personal
responsibility. These businesses publicly commit to
Responsible Care in their business policies, implement
HSE-related actions, and strive to improve their HSE
performance.

We comply with emissions standards for substances with environmental impact based on
the Japanese Energy Conservation Act, Air Pollution Control Act, Water Pollution Control Act,PRTR Act, and agreements with local authorities (voluntary management standards).
We are taking steps to continue reducing our CO2 emissions and per-unit CO2 emissions by
an average of 1% per year compared with FY 1990.

CO2 emissions-36％

Per-unit CO2 emissions

1,000

600

60%

400

40%

200

20%

2008

2009

2010

2011

2012

2013

Developing environmentally friendly products
At Zeon, we are continuing to conduct R&D with the objective of developing andlaunching environmentally friendly products.
Up to fiscal 2017, we have successfully developed S-SBR for fuel-efficient tires, lowtemperature fixing toners, cleaning solvents and etching gases with zero ozone depletion
potential, and binders for lithium-ion batteries. In the years ahead, we will engage in R&D
that attempts to address environment-related social issues.

41

100%
80%

1990

ZEON GROUPCORPORATE REPORT 2018

We have established the CSR Procurement Guidelines and Requests to Suppliers,
which integrate CSR perspectives into our existing QCD*, and are taking steps to ensure
CSR procurement.
Looking ahead, we will consolidate our approach to supply chain management
and build a system for sharing our CSR policies in order to embed CSR procurement
throughout the supply chain.

Compliance Committee
Prevention of law violations
Education and training in compliancewith laws
Antitrust Law
Regulatory Subcommittee
Prevention of violations of
the Antitrust Law
Export Security
Control Subcommittee
Proper security export control
Corporate Governance
Subcommittee
Reliability in financial reporting*QCD: System of production management that controls
and improves quality, cost, and delivery.

Human rights

8000●CSR Procurement●Compliance system

Per-unit CO2
emissions(FY 1990 comparison)
FY 2017●CO2 emissions and Per-unit CO2 emissions (FY 1990 comparison)×103 t-CO2

Ensuring compliance is established as the first priority of the Zeon CSR Policy, and wewill meet the public’s expectations by having all employees act with awareness of CSR.
We endeavor to engage in fair operating practices, and our CSR Code of Conduct clearly
defines related matters including compliance with antitrust regulations and a prohibition on
entertaining and offering gifts to overseas civil servants.
The Compliance Committee advances Zeon’s compliance efforts. The Compliance
Committee has three subcommittees, namely the Antitrust Law Regulatory Subcommittee,
the Export Security Control Subcommittee, and the Corporate Governance
Subcommittee. Each subcommittee is performing its function.

2014

2015

2016

2017

0%

In the provisions of our CSR Code of Conduct, we state respect for human rights andprohibit discrimination. We strive to be a company that understands and accepts diverse
values, and where no person is discriminated against based on gender, age, nationality,
or other attribute.

●Protecting human rights in the supply chain
Respect for human rights and considerations for work environments form part of theRequests to Suppliers section of the CSR Procurement Guidelines.
We are conducting a survey of human rights measures at our business partners, andare working to build a supply chain CSR survey database. Based on this database, wewill survey whether there are problems including with the work environment (human rights,
health and safety, etc.), environmental destruction, and conflict minerals, and will collectand disclose information about our supply chain.

TOPICS

Adopted in the latest studless tires for
improving fuel economy and wet-grip
performance
In January 2018, Zeon’s
S-SBR was adopted in
the latest studless tires
that were announced asa new product. S-SBR
improves fuel economy,
wet-grip performance, andperformance on ice.

ZEON GROUPCORPORATE REPORT 201842

Zeon’s CSR

Environment

Fair Operating Practices/Human Rights
Visit ourEnvironment
corporate
website for more http://www.zeon.co.jp/csr_e/environment.html
information

Fair Operating Practices
Visit our
http://www.zeon.co.jp/csr_e/suppliers.html
corporate
website for more Human Rights
information

http://www.zeon.co.jp/csr_e/humanrights.html

Environmental Philosophy (established August 2001)

Fair operating practices

1. E
 nvironmental protection is a mission of a socially responsible organization
2. O ur basic belief is that environmental protection can be achieved with
innovative technology
3. E nvironmental protection will be achieved when all employees work together
with a sense of mission to overcome challenges
We established our Responsible Care Policy embodying the principles of Responsible
Care* in 1998, and established our Environmental Philosophy in 2001. We set goals for
the Zeon Group’s environmental initiatives based on the two approaches of reducing
environmental impacts and developing environmentally friendly products, and eachplant plans and executes specific environmental initiatives.

Reducing environmental impacts*R esponsible Care: A voluntary initiative by businesses
that manufacture or handle chemical substances toachieve continuous improvement in health, safety, andenvironmental (HSE) performance across the entire life
cycle of such substances—from development andmanufacture, through distribution and use, and ending in
final consumption or disposal—based on the principles
of independent decision-making and personal
responsibility. These businesses publicly commit to
Responsible Care in their business policies, implement
HSE-related actions, and strive to improve their HSE
performance.

We comply with emissions standards for substances with environmental impact based on
the Japanese Energy Conservation Act, Air Pollution Control Act, Water Pollution Control Act,PRTR Act, and agreements with local authorities (voluntary management standards).
We are taking steps to continue reducing our CO2 emissions and per-unit CO2 emissions by
an average of 1% per year compared with FY 1990.

CO2 emissions-36％

Per-unit CO2 emissions

1,000

600

60%

400

40%

200

20%

2008

2009

2010

2011

2012

2013

Developing environmentally friendly products
At Zeon, we are continuing to conduct R&D with the objective of developing andlaunching environmentally friendly products.
Up to fiscal 2017, we have successfully developed S-SBR for fuel-efficient tires, lowtemperature fixing toners, cleaning solvents and etching gases with zero ozone depletion
potential, and binders for lithium-ion batteries. In the years ahead, we will engage in R&D
that attempts to address environment-related social issues.

41

100%
80%

1990

ZEON GROUPCORPORATE REPORT 2018

We have established the CSR Procurement Guidelines and Requests to Suppliers,
which integrate CSR perspectives into our existing QCD*, and are taking steps to ensure
CSR procurement.
Looking ahead, we will consolidate our approach to supply chain management
and build a system for sharing our CSR policies in order to embed CSR procurement
throughout the supply chain.

Compliance Committee
Prevention of law violations
Education and training in compliancewith laws
Antitrust Law
Regulatory Subcommittee
Prevention of violations of
the Antitrust Law
Export Security
Control Subcommittee
Proper security export control
Corporate Governance
Subcommittee
Reliability in financial reporting*QCD: System of production management that controls
and improves quality, cost, and delivery.

Human rights

8000●CSR Procurement●Compliance system

Per-unit CO2
emissions(FY 1990 comparison)
FY 2017●CO2 emissions and Per-unit CO2 emissions (FY 1990 comparison)×103 t-CO2

Ensuring compliance is established as the first priority of the Zeon CSR Policy, and wewill meet the public’s expectations by having all employees act with awareness of CSR.
We endeavor to engage in fair operating practices, and our CSR Code of Conduct clearly
defines related matters including compliance with antitrust regulations and a prohibition on
entertaining and offering gifts to overseas civil servants.
The Compliance Committee advances Zeon’s compliance efforts. The Compliance
Committee has three subcommittees, namely the Antitrust Law Regulatory Subcommittee,
the Export Security Control Subcommittee, and the Corporate Governance
Subcommittee. Each subcommittee is performing its function.

2014

2015

2016

2017

0%

In the provisions of our CSR Code of Conduct, we state respect for human rights andprohibit discrimination. We strive to be a company that understands and accepts diverse
values, and where no person is discriminated against based on gender, age, nationality,
or other attribute.

●Protecting human rights in the supply chain
Respect for human rights and considerations for work environments form part of theRequests to Suppliers section of the CSR Procurement Guidelines.
We are conducting a survey of human rights measures at our business partners, andare working to build a supply chain CSR survey database. Based on this database, wewill survey whether there are problems including with the work environment (human rights,
health and safety, etc.), environmental destruction, and conflict minerals, and will collectand disclose information about our supply chain.

TOPICS

Adopted in the latest studless tires for
improving fuel economy and wet-grip
performance
In January 2018, Zeon’s
S-SBR was adopted in
the latest studless tires
that were announced asa new product. S-SBR
improves fuel economy,
wet-grip performance, andperformance on ice.

ZEON GROUPCORPORATE REPORT 201842

Zeon’s CSR

Labor Practices
Visit ourLabor Practices
corporate
website for more http://www.zeon.co.jp/csr_e/employee.html
information

In our CSR Code of Conduct, we stipulate respect for human rights and prohibit
discrimination. We strive to be a company that understands and accepts diverse values,
and where no person is discriminated against based on gender, age, nationality, or otherattribute.
Based on this policy, we aim to enable every employee* to work with pride bycultivating employees able to continually evolve by pursuing high goals based on
independent thinking, building a human resource system in which employees take onchallenges without fear of failure and gain a sense of accomplishment, and creating a
comfortable workplace environment that values dialogue.

Occupational safety*At Zeon, “employees” refers to all workers including
full-time and part-time workers.

Safety Philosophy (established March 1997)●Zeon Corporation employment information(non-consolidated, does not include non-permanent employees)

(No.)

Men

Women

Total

1,402

198

1,600

New graduate

28

10

38

Mid-year9312Employees

1. S afety is the foundation of all business activities and the greatest priority
2. O ur basic belief regarding safety is that we can prevent all accidents
3. S
 afety will be achieved by performing the 5Ss*1 and when everyone
takes responsibility for their own actions*1 5Ss: Seiri (sort), Seiton (straighten), Seisou (scrub),
Seiketsu (systematize), and Shitsuke (sustain)

No. of new hires

Zeon—A company of which each andevery one of its employees can be proud
Encourage employees
to continually evolve by
pursuing high goals
based on independent
thinking

Human resource system
in which employees takeon challenges without fearof failure and gain a senseof accomplishment

Percentage of employeeswith disabilities
A comfortable working
environment thatvalues dialogue

Promoting diversity
Respect for human rights, prohibition of discrimination

Employment and diversity

Re-employment of
employees who havereached mandatory
retirement age

2.07％

17（94.4％）

Includes 20 non-Japanese employees (9 men and 11 women)
New graduate: Employees that joined the company in April
2017
Mid-year: Employees that joined the company from April 2017
to March 2018

In the action plan (plan period until March 2018) for
general business operators in the Act on Promotionof Women’s Participation and Advancement in the
Workplace, we established targets for the issue ofincreasing the number of women employees. Based on
our new plan, we will promote women’s advancementfrom FY 2018.

New action plan targets
Target 1: Achieve 30% women hires among
new graduate hires
Target 2: Conduct career plan workshops
Target 3: Increase understanding for diversity
management

HR development
Zeon’s concept of “being the worker I want to be” embodies “persons to continually
evolve by pursuing high goals based on independent thinking.” Personnels are encouraged
to set goals to become the worker they want to be, and we are modifying our educationand training systems to allow them to bridge the gap between the current reality and theirgoals and facilitate goal-driven actions on a daily basis. By fairly evaluating what employees
have accomplished and rewarding them accordingly, we aim for them to set even higher
goals. With every personnel continuing to improve and demonstrating this in actions, we
can create an even more capable workforce across Zeon.

43

ZEON GROUPCORPORATE REPORT 2018

TOPICS

Holding the Zeon North Safety
Conference (every May)
The primary business of Zeon North is plant engineering
for the Zeon Group. Zeon North holds a safety conference
for representatives of partner companies to deepen
cooperation with them, enhancing safety awareness,spreading safety knowledge, and sharing information.
Zeon North works together with all of its partner companies
with the goal of building a culture in which all on-site
workers have a strong awareness of safety and safety isalways given the highest priority.

Safety and accident prevention

TOPICS

Advancement of women
Zeon Group respects diversity and strives to be a company in which everyone in our
diverse team of employees is able to fully demonstrate their capacities. Our employees
today have a range of backgrounds and perform their duties regardless of gender, age,and nationality.
We conduct diversity training for all employees to help create the capacity for diversity
understanding. We also support employees who are balancing work with raising children
and have acquired the Kurumin mark in Japan in recognition of this, based on the Act on
Advancement of Measures to Support Raising Next-Generation Children.

A consistently safe work environment is the foundation of all production activities. We
formulated our Safety Philosophy in 1997 based on the Responsible Care approach toguide our safety activities. Our Responsible Care Policy established in 1998 also clearlystates, “Protecting the environment and ensuring safety are preconditions for all businessactivities and are the most important priorities.”
Our goal is zero occupational accidents resulting in lost work time and zero serious
accidents without lost work time. There were two lost-time occupational accidents in FY
2017. We are focusing on communication between worksite supervisors and workers,
safety inspections, and hands-on education in order to achieve a safe and stableproduction system.

●HR development at Zeon
Performancebased reward
The worker I want to be
Evaluation

Education &training

Actions &results

The worker
I want to be(higher goals)

Education &training

We conduct safety assessments and audits of plants, and provide training to enhance
accident prevention awareness with the goal of achieving zero safety irregularities.
Each year, top management develops a Master Plan for Safety Management
Improvements and leads initiatives to improve our Safety Management System basedon the belief that ensuring safety is the greatest priority. Senior managers at Zeon visit
plants on a regular basis to confirm the progress of improvement initiatives and holdinformational meetings with workers to communicate directly with them. Top management
visited plants over 64 days in FY 2017.

Zeon North Safety Conference

Safety in logistics
We are working to maintain our achieved goal of zero accidents in logistics.
At Zeon, we established Yellow Card Management Rules for transporting hazardous
products. These rules require drivers to carry a Yellow Card*2 when transporting suchproducts. We also conduct reporting and communication training for drivers, and eachplant offers training on product handling to prevent accidents in logistics.

Zeon North Education Center*2 Yellow Card: Document describing what to do if an
accident occurs during transportation, as establishedby the Logistics Safety Management Policy of theJapan Chemical Industry Association.
The document is called a Yellow Card because it isprinted on yellow paper.

ZEON GROUPCORPORATE REPORT 2018

44

Zeon’s CSR

Labor Practices
Visit ourLabor Practices
corporate
website for more http://www.zeon.co.jp/csr_e/employee.html
information

In our CSR Code of Conduct, we stipulate respect for human rights and prohibit
discrimination. We strive to be a company that understands and accepts diverse values,
and where no person is discriminated against based on gender, age, nationality, or otherattribute.
Based on this policy, we aim to enable every employee* to work with pride bycultivating employees able to continually evolve by pursuing high goals based on
independent thinking, building a human resource system in which employees take onchallenges without fear of failure and gain a sense of accomplishment, and creating a
comfortable workplace environment that values dialogue.

Occupational safety*At Zeon, “employees” refers to all workers including
full-time and part-time workers.

Safety Philosophy (established March 1997)●Zeon Corporation employment information(non-consolidated, does not include non-permanent employees)

(No.)

Men

Women

Total

1,402

198

1,600

New graduate

28

10

38

Mid-year9312Employees

1. S afety is the foundation of all business activities and the greatest priority
2. O ur basic belief regarding safety is that we can prevent all accidents
3. S
 afety will be achieved by performing the 5Ss*1 and when everyone
takes responsibility for their own actions*1 5Ss: Seiri (sort), Seiton (straighten), Seisou (scrub),
Seiketsu (systematize), and Shitsuke (sustain)

No. of new hires

Zeon—A company of which each andevery one of its employees can be proud
Encourage employees
to continually evolve by
pursuing high goals
based on independent
thinking

Human resource system
in which employees takeon challenges without fearof failure and gain a senseof accomplishment

Percentage of employeeswith disabilities
A comfortable working
environment thatvalues dialogue

Promoting diversity
Respect for human rights, prohibition of discrimination

Employment and diversity

Re-employment of
employees who havereached mandatory
retirement age

2.07％

17（94.4％）

Includes 20 non-Japanese employees (9 men and 11 women)
New graduate: Employees that joined the company in April
2017
Mid-year: Employees that joined the company from April 2017
to March 2018

In the action plan (plan period until March 2018) for
general business operators in the Act on Promotionof Women’s Participation and Advancement in the
Workplace, we established targets for the issue ofincreasing the number of women employees. Based on
our new plan, we will promote women’s advancementfrom FY 2018.

New action plan targets
Target 1: Achieve 30% women hires among
new graduate hires
Target 2: Conduct career plan workshops
Target 3: Increase understanding for diversity
management

HR development
Zeon’s concept of “being the worker I want to be” embodies “persons to continually
evolve by pursuing high goals based on independent thinking.” Personnels are encouraged
to set goals to become the worker they want to be, and we are modifying our educationand training systems to allow them to bridge the gap between the current reality and theirgoals and facilitate goal-driven actions on a daily basis. By fairly evaluating what employees
have accomplished and rewarding them accordingly, we aim for them to set even higher
goals. With every personnel continuing to improve and demonstrating this in actions, we
can create an even more capable workforce across Zeon.

43

ZEON GROUPCORPORATE REPORT 2018

TOPICS

Holding the Zeon North Safety
Conference (every May)
The primary business of Zeon North is plant engineering
for the Zeon Group. Zeon North holds a safety conference
for representatives of partner companies to deepen
cooperation with them, enhancing safety awareness,spreading safety knowledge, and sharing information.
Zeon North works together with all of its partner companies
with the goal of building a culture in which all on-site
workers have a strong awareness of safety and safety isalways given the highest priority.

Safety and accident prevention

TOPICS

Advancement of women
Zeon Group respects diversity and strives to be a company in which everyone in our
diverse team of employees is able to fully demonstrate their capacities. Our employees
today have a range of backgrounds and perform their duties regardless of gender, age,and nationality.
We conduct diversity training for all employees to help create the capacity for diversity
understanding. We also support employees who are balancing work with raising children
and have acquired the Kurumin mark in Japan in recognition of this, based on the Act on
Advancement of Measures to Support Raising Next-Generation Children.

A consistently safe work environment is the foundation of all production activities. We
formulated our Safety Philosophy in 1997 based on the Responsible Care approach toguide our safety activities. Our Responsible Care Policy established in 1998 also clearlystates, “Protecting the environment and ensuring safety are preconditions for all businessactivities and are the most important priorities.”
Our goal is zero occupational accidents resulting in lost work time and zero serious
accidents without lost work time. There were two lost-time occupational accidents in FY
2017. We are focusing on communication between worksite supervisors and workers,
safety inspections, and hands-on education in order to achieve a safe and stableproduction system.

●HR development at Zeon
Performancebased reward
The worker I want to be
Evaluation

Education &training

Actions &results

The worker
I want to be(higher goals)

Education &training

We conduct safety assessments and audits of plants, and provide training to enhance
accident prevention awareness with the goal of achieving zero safety irregularities.
Each year, top management develops a Master Plan for Safety Management
Improvements and leads initiatives to improve our Safety Management System basedon the belief that ensuring safety is the greatest priority. Senior managers at Zeon visit
plants on a regular basis to confirm the progress of improvement initiatives and holdinformational meetings with workers to communicate directly with them. Top management
visited plants over 64 days in FY 2017.

Zeon North Safety Conference

Safety in logistics
We are working to maintain our achieved goal of zero accidents in logistics.
At Zeon, we established Yellow Card Management Rules for transporting hazardous
products. These rules require drivers to carry a Yellow Card*2 when transporting suchproducts. We also conduct reporting and communication training for drivers, and eachplant offers training on product handling to prevent accidents in logistics.

Zeon North Education Center*2 Yellow Card: Document describing what to do if an
accident occurs during transportation, as establishedby the Logistics Safety Management Policy of theJapan Chemical Industry Association.
The document is called a Yellow Card because it isprinted on yellow paper.

ZEON GROUPCORPORATE REPORT 2018

44

Zeon’s CSR❸ Activities with the local community/

Community

Zeon Advanced Polymix Co., Ltd.

Community
Visit our
http://www.zeon.co.jp/csr_e/community.html
corporate
website for more Site Reports
information

http://www.zeon.co.jp/csr_e/sitereport.html❹ Holding community events

Thailand-based Zeon Advanced Polymix Co., Ltd. has made charity
donations to neighboring institutions and supported the healthmanagement of nearby residents for many years.

Zeon places great importance on connections with local communities.
Zeon’s plants and Group companies hold various events including summer
festivals and welcome opportunities to participate in community events.

Zeon Advanced Polymix received the 2017 CSR-DIW Continuous Award fromthe Department of Industrial Works (DIW) in recognition of its excellent CSR
activities.

Tokuyama Plant sponsors the Zeon Waraku Odori Dance Festival held every
summer. First held in 1974, more than 2,000 community residents participate in
the festival each year.

❺ Cleanup campaigns❻ Educational support

With the goal of conducting activities that are beneficial and will pleaselocal communities, Zeon’s plant and Group companies conduct
community cleanup campaigns around their sites and beyond.

Zeon’s plants and Group companies offer assistance to educational
institutions with internships for high school, vocational high school, anduniversity students, by welcoming plant tours for school groups, and bysending special instructors to give lessons at schools.

Employees of Mizushima Plant visited local elementary and secondary schools togive lessons.

We believe that contributing to the development of local communities and building strong relationships of trust are crucial toconducting stable business activities and creating improved products and services.

Zeon’s approach to social contributions
We believe that social contributions are essentially carriedout through our core businesses. As companies are membersof society, however, the complex set of issues faced by society
and a company’s activities are not independent of one another.
We are therefore undertaking social contribution activities outsideof our core businesses to engage with society from a broader
perspective.
In 2012, we launched CSR Core Projects, which are initiatives
we selected from proposals submitted by Zeon Group companies.
CSR Core Projects are activities that focus on social contributions
outside the scope of our core businesses and provide employeeswith opportunities to turn their attention to social issues.
The Head Office plans various activities related to supporting
reconstruction from the Great East Japan Earthquake, as well asshared projects that are conducted across multiple plants andsubsidiaries. Furthermore, plants and subsidiaries also conduct
their own independent projects. We are developing activities inthese three broad categories with a focus on their synergistic
benefits.

●Social contributions at ZeonCSR Core Projects

Great East Japan
Earthquake reconstruction

Shared projects

Independent
projects

FY 2017 initiatives❶ Activities with the local community/❷ Activities with the local community/

Takaoka Plant and others in Zeon Takaoka Group jointly participated in a beachcleanup organized by the local government.

Zeon Chemicals L.P. (ZCLP) in U.S.A. has conducted volunteer activities
and donation drives for many years.

Zeon Chemicals (Thailand) Co., Ltd. conducts communication activities
with the local community, participates in local events, and makes charity
donations.

❼ Chemistry classrooms

Zeon Chemicals L.P.

Zeon Chemicals (Thailand) Co., Ltd.

Based on the motto of “nurturing future Nobel Prize winners inchemistry,” we are holding chemistry experiment classrooms in various
areas to communicate the appeal of chemistry to children.

ZCLP employees entered the Kentucky Derby Festival Great Bed Races with abed decorated like a space shuttle and collected donations for the Disabled
American Veterans Charity.

ZEON GROUPCORPORATE REPORT 2018

areas

Zeon supports a tree-planting campaign organized by Yokohama RubberCo., Ltd. by serving as the event’s operations staff at Otsuchi Gakuen
school in Otsuchi Town, Iwate Prefecture. We also donate science andtechnology books to the school library at Otsuchi Gakuen.

Communication activities with the local community.

Zeon Chemicals Yonezawa participated in the 2017 Youth Science Festival in
Yamagata. Staff and children together made aromatic air fresheners by using our
synthetic fragrances.

45❽ Donations of books to disaster-affected

Tree-planting event for local education organized by Otsuchi Gakuen
school at Heisei-no-Mori in Otsuchi Town.

ZEON GROUPCORPORATE REPORT 201846

Zeon’s CSR❸ Activities with the local community/

Community

Zeon Advanced Polymix Co., Ltd.

Community
Visit our
http://www.zeon.co.jp/csr_e/community.html
corporate
website for more Site Reports
information

http://www.zeon.co.jp/csr_e/sitereport.html❹ Holding community events

Thailand-based Zeon Advanced Polymix Co., Ltd. has made charity
donations to neighboring institutions and supported the healthmanagement of nearby residents for many years.

Zeon places great importance on connections with local communities.
Zeon’s plants and Group companies hold various events including summer
festivals and welcome opportunities to participate in community events.

Zeon Advanced Polymix received the 2017 CSR-DIW Continuous Award fromthe Department of Industrial Works (DIW) in recognition of its excellent CSR
activities.

Tokuyama Plant sponsors the Zeon Waraku Odori Dance Festival held every
summer. First held in 1974, more than 2,000 community residents participate in
the festival each year.

❺ Cleanup campaigns❻ Educational support

With the goal of conducting activities that are beneficial and will pleaselocal communities, Zeon’s plant and Group companies conduct
community cleanup campaigns around their sites and beyond.

Zeon’s plants and Group companies offer assistance to educational
institutions with internships for high school, vocational high school, anduniversity students, by welcoming plant tours for school groups, and bysending special instructors to give lessons at schools.

Employees of Mizushima Plant visited local elementary and secondary schools togive lessons.

We believe that contributing to the development of local communities and building strong relationships of trust are crucial toconducting stable business activities and creating improved products and services.

Zeon’s approach to social contributions
We believe that social contributions are essentially carriedout through our core businesses. As companies are membersof society, however, the complex set of issues faced by society
and a company’s activities are not independent of one another.
We are therefore undertaking social contribution activities outsideof our core businesses to engage with society from a broader
perspective.
In 2012, we launched CSR Core Projects, which are initiatives
we selected from proposals submitted by Zeon Group companies.
CSR Core Projects are activities that focus on social contributions
outside the scope of our core businesses and provide employeeswith opportunities to turn their attention to social issues.
The Head Office plans various activities related to supporting
reconstruction from the Great East Japan Earthquake, as well asshared projects that are conducted across multiple plants andsubsidiaries. Furthermore, plants and subsidiaries also conduct
their own independent projects. We are developing activities inthese three broad categories with a focus on their synergistic
benefits.

●Social contributions at ZeonCSR Core Projects

Great East Japan
Earthquake reconstruction

Shared projects

Independent
projects

FY 2017 initiatives❶ Activities with the local community/❷ Activities with the local community/

Takaoka Plant and others in Zeon Takaoka Group jointly participated in a beachcleanup organized by the local government.

Zeon Chemicals L.P. (ZCLP) in U.S.A. has conducted volunteer activities
and donation drives for many years.

Zeon Chemicals (Thailand) Co., Ltd. conducts communication activities
with the local community, participates in local events, and makes charity
donations.

❼ Chemistry classrooms

Zeon Chemicals L.P.

Zeon Chemicals (Thailand) Co., Ltd.

Based on the motto of “nurturing future Nobel Prize winners inchemistry,” we are holding chemistry experiment classrooms in various
areas to communicate the appeal of chemistry to children.

ZCLP employees entered the Kentucky Derby Festival Great Bed Races with abed decorated like a space shuttle and collected donations for the Disabled
American Veterans Charity.

ZEON GROUPCORPORATE REPORT 2018

areas

Zeon supports a tree-planting campaign organized by Yokohama RubberCo., Ltd. by serving as the event’s operations staff at Otsuchi Gakuen
school in Otsuchi Town, Iwate Prefecture. We also donate science andtechnology books to the school library at Otsuchi Gakuen.

Communication activities with the local community.

Zeon Chemicals Yonezawa participated in the 2017 Youth Science Festival in
Yamagata. Staff and children together made aromatic air fresheners by using our
synthetic fragrances.

45❽ Donations of books to disaster-affected

Tree-planting event for local education organized by Otsuchi Gakuen
school at Heisei-no-Mori in Otsuchi Town.

ZEON GROUPCORPORATE REPORT 201846

Cover photo:
Zeon Corporation Kawasaki Plant
Established in 1959, the Kawasaki
Plant was the first factory in Japan
to begin volume production ofsynthetic rubber. The synthetic rubber
manufactured at the Plant has superior
heat-resistance and oil-resistanceproperties, and is used for automotive
components that are in close proximity
to the vehicle’s engine. The Kawasaki
Plant also produces synthetic latex,
undertaking small-volume productionof a wide range of high-value-added
product items such as rubber gloves,cosmetic puffs and non-woven fabrics.
Main products
Synthetic rubber and synthetic latex

CORPORATE REPORT 2018
ZEON, Zetpol, Nipol, Quintone, Quintac, ZEONEX,ZEONOR, ZEORORA and ZEONANO
are registered trademarks of Zeon Corporation,in the United States and other countries.
ZeonorFilm, ZEOGLOBULE, STEC, ZEOCOAT, ZEOSTENT
and MEISHU are trademarks of Zeon Corporation.

Zeon Corporation
CSR Promotion Department
Shin Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604 http://www.zeon.co.jp/index_e.html

Printed on paper made with woodfrom forest thinning. ”Morino Chonai- Kai”
(Forest Neighborhood Association)
supporting sound forest management.