Zeon : Presentation on the Financial Results for the 1st Half of FY2022

Financial Results

The 1st Half of FY2022 (Apr. 1- Sep. 30)

Answers beyond Challenges.

October 31, 2022

Content of Report

P.2 Summary and Segment Overview

P.3 Business Environment

(Trends in Exchange Rates and Prices of Raw Materials)

P.5 Performance Summary (Overall)

P.6 Performance Summary (By Segment)

P.9 Elastomer Business Overview

P.10 Elastomer Business Profit and Loss

P.11 Elastomer Business Operating Income Variance

P.14 Specialty Materials Business Profit and Loss

P.15 Specialty Materials Operating Income Variance

P.17 Specialty Chemicals Business: Battery Materials Situation

P.18 Specialty Plastics Business: Optical Plastics Situation

P.19 Specialty Plastics Business: Optical Films Situation

P.21 Balance Sheet Overview

P.22 Cash Flow Overview

P.24 FY2022 Business Environment

P.26 FY2022 Performance Forecast

P.27 FY2022 Dividend Forecast

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Q2 FY2022 Summary and Segment Overview

[Summary]

• In Q2 consolidated results, sales were up, but profits were down YoY and QoQ.
• Raw material prices dropped, and the yen continued to depreciate.
• Remote and shut-in demand arising from the spread of COVID-19 was calmed.

[Elastomer Business Overview]

• Sales and profits were up both YoY and QoQ with progress on selling price adjustments.
• Synthetic rubber sales volume was adjusted due to regular repairs at main plants, but demand remained firm.

[Specialty Materials Business Overview]

• Sales and profits were down both YoY and QoQ.
• Demand for optical plastics was firm for medical use, etc., while demand for optical films weakened.

There was a lull in demand for battery materials for consumer use, and customer utilization rates were down due primarily to soaring LIB raw material prices.

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Q2 FY2022 Business Environment

(Trends in Exchange Rates and Prices of Raw Materials)

	[Exchange Rates]			[Raw Materials]

	Q2	Q1	Q2	YoY(%)	QoQ(%)
	FY2021	FY2022	FY2022
JPY/US$	¥109.9	¥126.5	¥136.7	+24%	+8%
JPY/€	¥131.2	¥136.8	¥139.6	+6%	+2%
Naphtha(JPY/KL)	¥53,500	¥86,100	¥79,900	+49%	-7%
Asian Butadiene(US$/MT)	$1,234	$1,448	$1,071	-13%	-26%

*Naphtha: Figures for Q2 FY2021 and Q1 FY2022 are confirmed, while the figure for Q2 FY2022 is our estimate.

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Content of Report

P.2 Summary and Segment Overview

P.3 Business Environment

(Trends in Exchange Rates and Prices of Raw Materials)

P.5 Performance Summary (Overall)

P.6 Performance Summary (By Segment)

P.9 Elastomer Business Overview

P.10 Elastomer Business Profit and Loss

P.11 Elastomer Business Operating Income Variance

P.14 Specialty Materials Business Profit and Loss

P.15 Specialty Materials Operating Income Variance

P.17 Specialty Chemicals Business: Battery Materials Situation

P.18 Specialty Plastics Business: Optical Plastics Situation

P.19 Specialty Plastics Business: Optical Films Situation

P.21 Balance Sheet Overview

P.22 Cash Flow Overview

P.24 FY2022 Business Environment

P.26 FY2022 Performance Forecast

P.27 FY2022 Dividend Forecast

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©ZEON CORPORATION. All rights reserved.