Zeon : Presentation on the Financial Results for the 1st Quarter of FY2023

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.8 Elastomer Business Overview

P.9 Elastomer Business Profit and Loss

P.10 Elastomer Business Operating Income Variance

P.13 Specialty Materials Business Profit and Loss

P.14 Specialty Materials Operating Income Variance

P.16 Specialty Chemicals Business: Battery Materials Situation

P.17 Specialty Plastics Business: Optical Plastics Situation

P.18 Specialty Plastics Business: Optical Films Situation

P.20 Balance Sheet Overview

P.21 Cash Flow Overview

P.23 H1 FY2023 Business Environment

P.24 FY2023 Performance Forecast

P.25 FY2023 Dividend Forecast

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Q1 FY2023 Summary and Segment Overview

• Summary 】
• In Q1 consolidated results, both sales and profits were down YoY, while sales were down and profits were up QoQ.
• As for raw material prices, Naphtha was flat, while Asian butadiene was down. The yen depreciated.
• H1 FY2023 Performance Forecast was revised downward for sales and upward for profits.

[Elastomer Business Overview]

• Sales and profits were down YoY. With synthetic rubber, it was due to the economic slowdown in China, with chemicals, the slow recovery in demand, and with latexes, the easing supply-demand balance for gloves.
• On the other hand, synthetic rubber boosted operating income for the Elastomer Business overall due to the impact of foreign exchange rate fluctuations and the reversal of loss on disposal and valuation for inventories, resulting in an increase in profits QoQ.

[Specialty Materials Business Overview]

• Both sales and profits of specialty plastics and specialty chemicals were down YoY due to inventory adjustments caused by China's economic slowdown, and with the slowdown of the semiconductor market.
• The sales volume of optical films and battery materials has been recovering since Q1, and both sales and profits were up QoQ.

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