Corporate Report 2017

CORPORATE REPORT 2017
CONTENTS
Message 2
Zeon’s information disclosure
Zeon Products Making
3
Basic information on Zeon Corporation and Zeon Group is available on
Contributions to Society the Company Information section of the corporate website.
This Corporate Report (booklet) contains a wide range of information on
　Highlight 1 Zeon corporate management and CSR. A CSR report (PDF) with detailed
S-SBR in tire helps information on initiatives and site reports is available on the CSR activities
section of the corporate website.
fight climate change 3 More information about Zeon’s management and operations is available
　Highlight 2 on the Investor Relations section of the corporate website and in the Fact
Book.
Zeon’s energy materials supporting
lithium-ion batteries 5
Website▶ http://www.zeon.co.jp/index_e.html
Zeon material and component products
making contributions to society 7 Website
Company Profile 9
Zeon Group History 11
Business Overview 13
Zeon Group Locations 15
19 Zeon’s Business and Strategy Company Information CSR Activities IR Information
　2016–2017 Topics 20
　Interview with the President/
　New Mid-Term Management Plan Toward
　the Enterprise Blueprint for 2020 21
　Elastomer Business 27
　Specialty Materials Business 29 CSR Report Corporate Report Fact Book
　Research and Development (R&D) 31

　Corporate Governance 33
Zeon Group
CSR REPORT 2017 CORPORATE REPORT 2017
35 Zeon’s CSR
　Zeon’s CSR 36 All about Zeon! website 2017 (Japanese only)
　Environment 37
　Safety 38
　Labor Practices 39 All about Zeon! is a
special website featuring
　Fair Operating Practices 40 interviews with employees

and Zeon TV commercials
　Community 41 broadcast regionally in

Japan.
Editorial policy
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 2017 Corporate Report include an introduction to Zeon products that make contributions to society. The Corporate Report is divided into Zeon’s Business
and Strategy and Zeon’s CSR. Zeon’s Business and Strategy section describes the new SZ-20 Phase III mid-term management plan and Zeon’s value creation model. Zeon’s CSR
reviews social issues in the supply chain and includes updated reporting on initiatives based on ISO 26000.
Reporting period Reporting scope

April 2016 to March 2017 (includes some information after April 2017) Zeon Corporation and Zeon Group companies inside and outside Japan. Some data
covers only Zeon Corporation.
1 ZEON GROUP
Message
Corporate 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.
Following our corporate philosophy, we have consistently released new products using our
pioneering, inimitable technologies. Zeon’s products are incorporated into customers’ final products
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
our enterprise blueprint for 2020 plan with the mission of “Zeon makes the future today through the
power of chemistry.”
Our new mid-term management plan starts in FY 2017 and finishes in FY 2020. As we were
embarking on this plan, our Kawasaki Plant and R&D Center were honored with a visit by His
Majesty the Emperor on July 7, 2017. This visit was a welcome opportunity to reaffirm our
responsibilities and enhance solidarity among Zeon employees of all ages and ranks. Taking to heart
the warm words of appreciation and encouragement that we received during this Imperial visit, we at
Zeon Group will work as a team to develop our business and boldly achieve our management plan so
that we may continue to contribute to the development of society.
We deeply appreciate your continued support and encouragement.
Naozumi Furukawa
Chairman
Zeon Corporation
2
ZEON GROUP
Highlight 1 Zeon Products Making Contributions to Society
S-SBR in tire helps

fight climate change
Fuel efficiency is one important element
determining a vehicle’s value. Tires have a significant S-SBR is mainly
impact on fuel efficiency. When driving on city streets, used here
tires account for approximately 10% of a vehicle’s fuel
efficiency. This increases to more than 20% when Tread
driving at fixed speeds such as highway cruising speed.
Tires that meet a certain standard of performance Shoulder
are called fuel-efficient tires. Zeon’s

solution-polymerized styrene-butadiene rubber
(S-SBR) makes significant contributions to this Sidewall
fuel-efficient performance. Tire cross section
Fuel-efficient tires typically weigh between 7 and 8

kilograms, of which approximately 10% is S-SBR. In Bead
addition to rubber, tire manufacturers use a number
of materials combined with their own technologies to
make vehicle tires.
●Driving condition and tire
The diagram shows the different parts of a tire.
　contribution to fuel efficiency
Zeon’s S-SBR is used in the tread that makes
Driving condition Tire contribution (%)
contact with the road. to fuel efficiency
Constant
driving speed 20 – 25%
Driving on
city streets 7 – 10%
Source: Tire Fair Trade Council (Japan) website (Japanese only)

http://www.tftc.gr.jp/performance/labeling
●Tires are made from many materials
Zeon supplies S-SBR as one of the raw material rubber
S-SBR
S-SBR is shipped in 35-kg blocks. Tire Tire manufacturers

manufacturers then crush this and combine it Kneading / Parts creation / Molding /
with other materials.
Vulcanization / Inspection / Shipment
Materials supplied from materials manufacturers

・Natural rubber ・Silica ・Fiber
・Butadiene rubber ・Sulfur ・Wire
・Carbon black ・Compounding agents
What is rolling resistance? ●Three types of rolling resistance affecting tires

during driving
A vehicle’s fuel efficiency is affected by its tires’ rolling resistance. As
the diagram on the right shows, there are three types of resistance.
Because about 90% of the resistance comes from tire deformation, ❸ Aerodynamic ❶ Tire
controlling tire deformation is key to reducing rolling resistance. 　drag 　deformation
Zeon reduces tire deformation by controlling the molecular structure
of S-SBR. 90% of resistance
❷ Contact friction
3 ZEON GROUP
Zeon’s S-SBR boasts three world-class properties
●Relationship between rolling resistance and stopping distance
Having too little rolling resistance is dangerous, because on wet surfaces
tires will have poor wet grip performance and be slippery on
wet road surfaces. Generally speaking, rolling resistance
Long
When there is low rolling
and wet grip have an inverse relationship—when one gets resistance, wet grip
⬇
　 Stopping distance on wet surfaces　
better, the other gets worse. performance is low,
So tire manufacturers have been innovating in many resulting in longer stopping
distance (good fuel
ways to develop tires with low rolling resistance and high efficiency but dangerous in
wet grip performance, including rubber composition, tire rainy weather)
construction, and tread patterns.
Wear resistance is another important feature that tires
need in order to deliver long life.
When there is high rolling
Zeon’s S-SBR technology controls the molecular resistance, wet grip
structure of the rubber to achieve high performance in the ⬆ performance is high,
three aspects of wet grip, rolling resistance, and wear Short resulting in shorter stopping
distance (poor fuel efficiency
resistance. but safe in rainy weather)
Low⬅　Rolling resistance　➡High
❶ Wet grip performance ❷ Low rolling resistance

(better fuel efficiency)
❸ Wear resistance
Just the right softness If the drag against a vehicle’s motion is low, Tires better able to withstand
to grip wet roads fuel consumption will also be low friction will last longer
Rubber softness when braking is regulated by The coupling agents at the middle and the end of The size of rubber molecules primarily affects wear
controlling the ratios of styrene and butadiene, two S-SBR molecule disperse the right amount of the resistance, and S-SBR regulates rubber molecule
raw materials of S-SBR, and butadiene bonding reinforcing fillers (carbon black and silica). size and branching.
types.
●S-SBR and
　reinforcing fillers
Reinforcing fillers CB
CB: Carbon black Coupling Si
Powdered carbon. Blended with agent
rubber to make it stronger
Si: Silica
Powdered silicon dioxide (SiO2).
Blended with rubber to make it Coupling agent
softer and lower rolling resistance
while improving wet grip
performance
BR
S-S
Si
Reducing vehicle CO2 emissions with fuel-efficient tires

Comparing the lifecycle CO2 emissions of fuel-efficient tires and standard tires from raw materials production to disposal, fuel-efficient tires
reportedly have 19% lower CO2 emissions*. Zeon is contributing to reducing overall vehicle CO2 emissions by improving the performance of
fuel-efficient tires with S-SBR.
* Tyre Life Cycle CO2 Calculation Guidelines, Ver. 2 (Japan Automobile Tyre Manufacturers Association)
4
ZEON GROUP
Highlight 2 Zeon Products Making Contributions to Society
Zeon’s energy materials

supporting lithium-ion batteries
Today’s smartphone batteries have greater
capacity, output, and operating life than yesterday’s
cell phones. Lithium-ion rechargeable batteries are
also used in electric and hybrid vehicles. These
batteries have been adopted in vehicles because of
their recognized safety performance.
In the growing lithium-ion rechargeable batteries
market, we have been focusing on the potential of
binders used in the batteries. Zeon’s energy
materials are one factor contributing to the
widespread use of lithium-ion rechargeable batteries
today.
Growing lithium-ion rechargeable

battery market for automobiles
Lithium-ion rechargeable batteries were
commercialized in 1991, and their market has
grown from their contributions to the spread of
desktop and laptop computers as well as cell
phones. Lithium-ion batteries were first used in
vehicles in 2010, and by 2016 the automotive
battery market quickly grew to about the same size
as the mobile electronics battery market. The high
growth seen in the automotive lithium-ion
rechargeable battery market is expected to increase
further with the rising number of hybrid and electric
vehicles in the market. The markets where Zeon’s
energy materials can make contributions are also
expected to expand.
●Growth in Battery Market of the Automotive and

Mobile Electronics ●PHV & EV Sales Forecast by Automaker
Automotive applications Mobile applications ■Japan　■Europe　■North America　■China and Asia　

（MWh） (1,000 units)
250,000 4,500
4 million units
4,000
200,000 3,500
Expanded Adoption in
Automotive Applications
3,000
150,000
2,500
2,000
100,000
1,500
50,000 1,000 0.72 million units

500
0 0
11 12 13 14 15 16 17 18 19 20 (FY) 2016 2017 2018 2019 2020 (FY)
Source: B3 Report, November 15–16 Source: Zeon estimates based on B3 Report
5 ZEON GROUP
Zeon’s Energy Materials
Positive terminal Safety valve
Gasket Sealants Sealants
Separator
Compounds for coating the gasket surface of cylindrical
lithium-ion batteries to increase the adhesive properties
of the cylinder’s exterior and cap.
Anode tab
Zeon’s sealants offer excellent heat resistance, cold
Cathode resistance, and electrolyte resistance. They help
prevent battery leakage to preserve battery
performance and extend operating life.
Metal case Cathode tab ➡Contributing to longer life
Anode
Cathode binder Anode binder Cathode and anode binders
Aluminum foil Active material Separator Active material Copper foil Lithium-ion rechargeable batteries comprise cathode
materials made from metal oxide including lithium, anode
materials that attract lithium ions, the electrolyte that
transfers the lithium ions between the cathode and
anode, and a separator that electrically separates the
cathode and anode. The basic function of the cathode
and anode binder is to bind the cathode and anode
particulate material to the electrodes. Binders have
received attention recently for their ability to control
interface reactions with the active material and the
electrolyte solution.
Cathode active Conductive Anode active Zeon’s binders create the right amount space in the
materials additive materials active material for lithium ions to pass and are
Functional Layer Binders resistant to volume expansion and shrinking from
battery charging and discharging.
➡Contributing to longer life
Zeon’s binders not only bind, they support the
❶Preventing electrode volume expansion chemical reactions occurring on the surface of the
active materials. This enhances the reactions to
increase battery output.
12
➡Contributing to higher output
10 Condition
Electrode swelling rate (%)
Charge: 4.2V,1C Conventional product

8 Discharge: 3.0V,1C Functional Layer Binders
Temperature: 60℃
6 Loading 13mg/c m2 To meet the growing needs for safety, battery structures
Density 1.50g/c m3 that separate the heat-resistant layer or coat the electrode
4 New product
surfaces to prevent internal short circuits have been
2 commercialized.
※Swelling rate of electrode
thickness after pressing
Zeon started this development in 2003 and released
0 a binder for the heat-resistant layer in 2005. We are
After pressing After vacuum After immersion After 1 cycle After 100 cycles expanding sales of this binder mainly for automotive
drying applications. In 2013, we released a slurry for the
heat-resistant layer.
❷Improving electrolyte impregnation
●Preventing thermal contraction of the separator

Long with a functional layer binder
Conventional
product
Solution absorption time (sec.)
Zeon’s binders Thermal contraction test (150℃ for 1 hour)

quickly absorb electrolyte
solution even when
electrode density is high
New product
Short With binder Without binder

Low Electrode density (g/cm3) High Resistant to contraction Contracts
(1.3% contraction)
6
ZEON GROUP
Zeon Products Making Contributions to Society
Zeon material and products

making contributions to
society
The value created by Zeon’s materials and products contribute to society in many ways.
Here are just a few examples.
Global
Environment Improved performance and extended life of manufacturers’ products made
with Zeon’s materials and components contribute to reducing environmental
impacts through such ways as energy conservation, mitigating climate
change, and reducing waste.
Solution-polymerized Biosynthetic
styrene-butadiene rubber epichlorohydrin rubber
(S-SBR): (ECO):
Improves the performance of The first biosynthetic rubber
fuel-efficient tires and adopted in automotive vacuum
contributes to energy sensing hoses. Contributes to
conservation and reduced CO2 reduced lifecycle CO2
emissions. emissions by switching fossil
fuel-derived materials to
plant-derived materials.
Energy materials:
Zeon’s binders prevent electrode volume
expansion and greatly improve cell life. They
also increase the chemical reactions on the
surface of the active materials to increase
battery output.
Prohydrojasmon
plant growth regulator: ZEOCOATⓇ
Reduces declines in the production Coating-type insulating and
volume and quality of agricultural protective layer for displays:
products due to the effects of climate With high transparency, low
change (Jasmomate® Ekizai moisture absorption, and low
agrochemical formulation). dielectric constant, contributes to
reduced environmental impacts by
ZEORORAⓇ H improving display performance
HFC solvent: and extending the life of electronics
Contributes to climate change components.
prevention as an alternative
HFC solvent.
OMe Cyclopentyl methyl ether
(CPME)
Ⓡ
ZEORORA Hydrophobic ether solvent:
Etching gas for oxide layers: Low environmental impact
Contributes to climate change since it is easily recovered after
prevention as an etching gas use as a solvent and little is
with low global warming disposed of in wastewater.
potential.
7 ZEON GROUP
Improved Health and
Performance Using Zeon’s materials Living Zeon’s materials, components,
and components can and products are useful in
greatly improve daily life and benefit health
product performance. and well-being.
Synthetic aroma chemicals:

The raw materials are derived
from fossil fuels but have the
same chemical structure as
natural aromas. They are used
in foods, cosmetics, and other
products.
Thermoplastic elastomer:
Used in elastic film for
ZeonorFilmTM disposable diapers to achieve
Optical film: lighter weight and greater
ZeonorFilmTM optical film contributes to improved display comfort.
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 Synthetic latex for gloves:
composite achieves low thermal resistance. Due to concern about allergic
It increases the thermal conductivity of the heat sink reactions from proteins found
and resolves the heat generation problem of servers in natural rubber, demand is
and power devices. shifting from natural to
synthetic rubber gloves made
with NBR latex and the market
is expanding.
Cyclo-olefin polymers:
COP are used in prefilled
medical syringes and
contribute to increased safety
in medical settings. With
properties including light
weight, high strength,
transparency, high purity, and
low protein absorption.
ZEOGLOBULETM
Polymerized toner: Intravascular pressure
The world’s first -sensing guidewires:
industrialized polymerized Zeon’s guidewires help lessen
toner. Contributes to patients’ pain and healthcare
improving resolution and professionals’ workloads,
print speed with its because treatment decisions
uniform spherical capsule can be accurately made using
structure. sensors and a monitor.
Catheters for removal of

bile duct stones:
Zeon’s catheters help lessen
patients’ pain and healthcare
professionals’ workloads, with
a strong reputation in
treatment to remove bile duct
stones.
8
ZEON GROUP
Company Profile
Name: Zeon Corporation

Established: April 12, 1950
Capital: 24.211 billion yen (as of March 31, 2017)
Consolidated net sales
Market capitalization: 172.5 billion yen (as of March 31, 2017)
(million JPY)
Total number of shares outstanding: 237,075,556 shares
350,000
Employees: 3,090 (consolidated) 307,524
296,427 295,647 287,624
　　　　　 1,590 (non-consolidated) (as of March 31, 2017)
300,000
Business segments: Elastomer Business, Specialty Materials 250,763

250,000
Business, other businesses（➡P13）
200,000
Head Office: Shin Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan 150,000
Plants: Takaoka Plant, Kawasaki Plant, Tokuyama Plant,
100,000
Mizushima Plant
Research laboratories: R&D Center (Kawasaki) 50,000
Offices: Osaka Office, Nagoya Office 0

2012 2013 2014 2015 2016 (FY)
（➡P17）
Subsidiaries and affiliates in Japan ：
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.,
Consolidated operating income
RIMTEC Corporation, Zeon RIM Co., Ltd.,
(million JPY)
Zeon Medical Inc., Optes Inc., TFC Inc., 35,000
Zeon Polymix Inc., Tohpe Corporation, 29,901 29,856
30,767
30,000 28,245
Zeon Nano Technology Co., Ltd., ZS Elastomers Co., Ltd.,
25,000 23,696
Okayama Butadiene Co., Ltd., ZIS Information Technology Co., Ltd.
20,000
（➡P13）
Subsidiaries and affiliates outside Japan ： 15,000
【Europe】
Zeon Europe GmbH, Telene S.A.S.
10,000
【USA】
Zeon Chemicals L.P., Tokyo Zairyo (USA) Inc.
【Mexico】
Zeon Kasei Mexico S.A. de C.V., 5,000
Tokyo Zairyo México S.A. de C.V. 0
2012 2013 2014 2015 2016 (FY)
【Brazil】
Zeon do Brasil Ltda
【China】
Zeon (Shanghai) Co., Ltd., Shanghai Zeon Co., Ltd.,
Zeon Trading (Shanghai) Co., Ltd.,
Zeon Polymix (Guangzhou) Co., Ltd.,
Suzhou Rui Hong Electronic Chemicals Co., Ltd.,
Zeon Kasei (Changshu) Co., Ltd., Zeon Medical (Guangzhou) Inc.,
Segment net sales (outer circle) and operating income (inner circle)
Takehara Zeon (Shanghai) Co., Ltd., Tokyo Zairyo (Shanghai) Co., Ltd.,
Tokyo Zairyo (Tianjin) Co., Ltd., Tokyo Zairyo (Guangzhou) Co., Ltd.
【South Korea】
Zeon Korea Co., Ltd., Zeon Shinhwa (Zeshin) Inc. Other Businesses
【Taiwan】
Zeon CSC Corporation
17% 9%
【Singapore】
Zeon Chemicals Singapore Pte. Ltd.,
Zeon Asia Pte. Ltd., Tokyo Zairyo (Singapore) Pte. Ltd.
Specialty Materials
【Thailand】
Zeon Chemicals (Thailand) Co., Ltd., Business 30 % FY
Elastomer Business
Zeon Advanced Polymix Co., Ltd., 2016 62 %
26 % 57%
Tokyo Zairyo (Thailand) Co., Ltd.
【Vietnam】
Zeon Manufacturing Vietnam Co., Ltd.,
Zeon Research Vietnam Co., Ltd.,
Tokyo Zairyo (Vietnam) LLC.
【Malaysia】
Zeon Asia Malaysia Sdn. Bhd.
【India】
Zeon India Private Limited, Tokyo Zairyo (India) Pvt. Ltd.
【Indonesia】
PT. Tokyo Zairyo Indonesia
9 ZEON GROUP
Shareholder information (as of March 31, 2017) Dividends
Treasury stock (JPY)

15,093,000 shares 20
（6.4％）
Financial institutions & 16
15
securities companies 15 14
Individuals & others
93,321,000 shares 13
21,954,000 shares （39.4％）
12
（9.2％）
10
Foreign investors
48,211,000 shares
（20.3％）
5
Other domestic
institutional investors
58,494,000 shares
（24.7％）
0
2012 2013 2014 2015 2016 (FY)
Share price (closing price on March 31) Market capitalization (as of March 31)
(JPY) (100 million JPY)

1,500 3,500
1,271 3,013
3,000
1,110 2,687
974 2,500 2,358 2,261
1,000
934 2,000
1,725
728 1,500
500
1,000
500
0 0
2012 2013 2014 2015 2016 (FY) 2012 2013 2014 2015 2016 (FY)
Energy use per net sales（Zeon Group inside and outside Japan） CO2 emissions (including Zeon Group inside and outside Japan)
(crude oil equivalent, kL /million JPY) (1,000 tons)

1.00 900
0.95 0.95 800
0.95 724
0.91 700 675 655
0.90 640
601
0.85 600
0.85
0.82 500
0.80
400
0.75 300
0.70 200
100
0 0
2012 2013 2014 2015 2016 (FY) 2012 2013 2014 2015 2016 (FY)
10
ZEON GROUP
Zeon Group History
Starting from PVC and synthetic rubber production World-leading C4 and C5 technologies with GPB and GPI
Zeon Corporation was founded as a PVC manufacturer in processes
1950, established with capital from three Furukawa group In the petrochemical industry, which uses crude oil as a
companies—Furukawa Electric, Yokohama Rubber, and raw material, technological capabilities are a key element
Nippon Light Metal. Zeon acquired its PVC manufacturing impacting company competitiveness. Zeon developed the
technologies from U.S.-based B.F. Goodrich Chemical GPB process in 1965 to efficiently extract high-grade
Company, which at the time was the global leader in the butadiene, which is the raw material used in PVC and
industry. Zeon continued developing the PVC business from synthetic rubber production, from C4 fractions. In 1971, Zeon
its founding until full withdrawal in 2000. developed the GPI process to efficiently extract isoprene, the
In 1959, Zeon acquired technologies from B.F. Goodrich raw material in isoprene rubber, and other useful components,
Chemical Company to operate a special synthetic rubber from C5 fractions.
(NBR) plant. This was Japan's first domestic synthetic rubber Zeon licenses its proprietary GPB process technology in
plant. Following this, Zeon embarked on the production of countries around the world. This greatly contributes to Zeon’s
general-purpose synthetic rubber (SBR). Zeon thus competitive edge and promotes the Zeon brand globally.
established its synthetic rubber business for tires and engine
components, which it continues to manufacture today.
Timeline of main businesses

and product development 1960 1970 1980 1990
Processed
Products Powder slush compounds (PSC)
Polyvinyl chloride resins
Medical Ventricular assist device

Devices
Latex
(for paper coating) VP latex Hollow latex
(tire cord) (paper coating)
Specialty Synthetic Rubbers

C4 (NBR & ACM for auto parts) Hydrogenated NBR
(Zetpol®)
Toner Polymerized toner
Synthetic Rubbers for Tires

(SBR & BR for tires) General-purpose synthetic rubber
C5 with modified terminals
C5 petroleum resin
Chemicals (roadmarking paints)
Isoprene rubber SIS thermoplastic elastomer

(tires) (adhesives)
Specialty
Synthetic aroma chemicals Synthetic aroma chemicals
Chemicals (leaf alcohol) (jasmine aroma chemicals)
Fluorinated C5
Electronics Materials
Specialty Plastics
Dicyclopentadiene Cyclo-olefin polymers
(lenses, prisms)
RIM
RIM molded items and formulation
(large plastic products)
11 ZEON GROUP
Developing comprehensive uses for C5 fractions Developing more advanced materials and establishing
Isoprene rubber is a useful material with the same chemical leading manufacturing technologies
stability as natural rubber. Many byproducts are derived from In recent years, needs have grown for products with
the process of extracting isoprene feedstock from C5 advanced functions that offer higher energy efficiency in
fractions. One advantage of the GPI process is the ability to response to environmental problems, and similar expectations
extract these byproducts at a high degree of purity. Zeon has are rising for chemical materials. To meet these expectations,
focused on ways to effectively use these substances. As a Zeon developed Zetpol® hydrogenated nitrile rubber, which
result, Zeon subsequently grew its business to include provides high functionality at a competitive cost and is used
petroleum resins and thermoplastic elastomer SIS in the in automotive engine components and other applications with
1980s, synthetic aroma chemicals and RIM molded products harsh working conditions. In addition, cyclo-olefin polymers,
in the 1990s, and cyclo-olefin polymers since the 2000s. developed from comprehensive use of C5 fractions, are
These businesses now enjoy a large share of the global high-performance materials used in optical films, such as for
market. The technologies gained during this development LCD panels and lenses, and in electrical insulation.
process are being used in other areas in addition to C5
fractions.
2000 2010
Enhanced low-temperature PSC

PVC business withdrawal (automobile instrument panels)
Balloon catheters (IABP) 4 core catheter products Stents (bile ducts sheath)
NBR latex
(gloves)
Energy
Materials Water-based anode Solvent-based cathode Functional layer Anode and functional Water-based anode Water-based
※LIB： binder for mobile LIB binder for mobile LIB binder for mobile LIB layer binder for binders for large-capacity cathode binders
Lithium-ion batteries automobile LIB mobile batteries
Heat-resistant H-NBR (Zetpol®)

Heat-resistant acrylic rubber
Polymerized color toner Low-temperature fixing toner

(high-speed printers)
Solution-SBR
(fuel-efficient tires)
Light-color petroleum resin

(adhesives for diaper)
Asymmetric SIS
(elastic film for diaper)
Cyclopentanone Cyclopentyl methyl ether (CPME)

(solvent and fine chemical raw material) (eco-friendly solvent)
Photo resists Insulation materials LCD resists for large sized wafers
Cyclo-olefin polymers Cyclo-olefin polymers

(commodity use) (blue laser)
Optical Films
Melt extrusion Retardation films Retardation films High thermostability film
process by successive by diagonal by diagonal stretching process
stretching process stretching process (touch panels)
12
ZEON GROUP
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
C4 GPB Butadiene
fractions process
Synthetic latexes
Synthetic rubbers
Isoprene
Crude oil Naphtha Thermoplastic
elastomers
GPB process: Proprietary Zeon technology to extract

highly pure butadiene from C4 fractions Petroleum resins
Piperylene
Petroleum resins
C5 GPI
fractions process Dicyclopentadiene RIM compound
Specialty plastics
Synthetic aroma
2-butyne chemicals
GPI process: Proprietary Zeon technology to extract highly

Electronics materials
pure isoprene and other useful components
from C5 fractions
Energy materials
Medical devices
Carbon nanotubes
13 ZEON GROUP
Applications Business Segments
Automobile Elastomer Business

Tires
components
In 1959, Zeon became the first
Social value created from C4 and C5

company in Japan to
Gloves for medical use Cosmetic mass-produce synthetic
and food processing puffs rubbers. Even today, the
Elastomer Business is the core
Elastomer Business
business, providing 60% of total
net sales and operating income.
Automobile
components Tires Main products
Synthetic rubbers, synthetic
latexes, chemical products
(thermoplastic elastomers,
Adhesives
petroleum resins)
Adhesives Traffic paints
Paints/
coatings Inks
Other
Housing equipment Large-size

and components molding
Specialty Materials
Medical Business
Lenses　　　　　Optical films containers
Specialty materials refer to
materials and components with
Specialty Materials Business
high added value that have a

macromolecular design and are P7
Fragrances　　　　　Food additives
made with processing
technology. The three main
business areas of the Specialty
Materials Business are IT
Electronics materials Toner
components, energy
materials, and medical devices.
Main products
Binders for lithium-ion rechargeable batteries High-performance resins and
materials, electronics materials,
toners, battery materials,
medical devices
Medical catheters
Other
Single-walled carbon nanotubes, Other Businesses

composite materials
Engineering, packaging
materials, building
materials, deodorants, RIM
formulation, single-walled
carbon nanotubes,
paints/coatings, trading, etc.
14
ZEON GROUP
Zeon Group Locations
GLOBAL as of September 30, 2017
Europe China
Zeon Europe GmbH Zeon (Shanghai) Co., Ltd. Suzhou Rui Hong Electronic Chemicals
Hansaallee 249, 40549 Dusseldorf, Germany Room 1502, Hongwell International Plaza, No. 1600 Zhongshan Co., Ltd.
TEL: +49-211-52670 FAX: +49-211-5267160 West Road, Xuhui District, Shanghai, 200235, China No. 501, Minfeng Road, Economic Development Zone,
• Sales, export, and import of synthetic rubbers and TEL: +86-21-6167-5776 FAX: +86-21-6040-7258 Wuzhong District, Suzuhou City, Jiangsu, 215128, China
resins • Provide assistance and exercise control over the Zeon Group TEL: +86-512-6921-7666 FAX: +86-512-6921-7555
companies in China with regard to such functions as • Manufacture and sales of photo resists
Zeon Europe GmbH - Branch in France accounting, finance, personnel management, legal, etc.
22, rue Guynemer 78600 Maisons Laffitte, France Zeon Kasei (Changshu) Co., Ltd.
TEL: +33-1-39-12-75-20 FAX: +33-1-39-12-75-26 Shanghai Zeon Co., Ltd. Huangpujiang Road 96, Dongnankaifa District, Changshu
No. 380 Shennan Road, Xinzhuang Industry District, Minhang, City, Jiangsu Province, 215500, China
Zeon Europe GmbH - Branch in Spain Shanghai, 201108, China TEL: +86-512-5235-7000 FAX: +86-512-5235-7308
C/Beethoven, 15, 4O08021 Barcelona, Spain TEL: +86-21-6489-6160 FAX: +86-21-6442-0569 • Manufacture and sales of powder slush compounds
TEL: +34-93-183-87-08 FAX: +34-93-183-87-58 (Push “0” after announcements)
• Manufacture and sales of rubber compounds (CM) Zeon Medical (Guangzhou) Inc.
Zeon Europe GmbH - Branch in Italy Room 1706A, Goldlion Digital Network Center, No. 138 Ti Yu
Via Mauro Macchi, 27, 20124 Milano, Italia Zeon Trading (Shanghai) Co., Ltd. Dong Road, Tianhe District, Guangzhou, Guangdong,
TEL: +39-02-36680101 FAX: +39-02-36680124 Room 1501, Hongwell International Plaza, No. 1600 Zhongshan 510620, China
West Road, Xuhui District, Shanghai, 200235, China TEL: +86-20-2283-6788 FAX: +86-20-2283-6789
Telene S.A.S. TEL: +86-21-6040-7255 FAX: +86-21-6040-7258 • Sales, export, and import of medical devices
• Purchase and sales of synthetic rubbers, chemical (cardiovascular and endoscopic accessory, etc.)
2, rue Marie Curie - 59910 Bondues, France
products, and other products (including international trade)
TEL: +33-3-20-69-57-10 FAX: +33-3-20-69-57-11
• Development and sales of Telene® DCP-RIM resin Takehara Zeon (Shanghai) Co., Ltd.
Zeon Polymix (Guangzhou) Co., Ltd. No. 380 Shennan Road, Xinzhuang Industrial Zone, Minhang
Jing Quan 1st Road, Yong He Economic Zone, Guangzhou, District, Shanghai, 201108, China
511356, China • Manufacture and sales of silicon rubber compounds (CM)
TEL: +86-20-3222-1171 FAX: +86-20-3222-1820
• Manufacture and sales of rubber compounds (CM)
India Vietnam
Zeon India Private Limited Zeon Manufacturing Vietnam Co., Ltd.
Time Tower, Unit No.507, Sector-28, M.G Road, No.109, Road No.10, VSIP Haiphong Township, Industrial and
Gurgaon-122002, Haryana, India Service Park, Dinh Vu-Cat Hai Economic Zone, Thuy Nguyen
TEL: +91-124-4229461 FAX: +91-124-4229462 District, Haiphong City, Vietnam
• Import, sales, and marketing of synthetic rubbers and TEL: +84-225-3797-027 FAX: +84-225-3797-028
other Zeon products • Manufacture and sales of packing containers
Tokyo Zairyo (India) Pvt, Ltd. Zeon Research Vietnam Co., Ltd.
Time Tower, Unit No.507, 5th floor, Sector-28, M.G Road, 6th Floor, Building 85 Nguyen Du Str., Hai Ba Trung District,
Gurgaon-122002, Haryana, India Hanoi, Vietnam 100000
TEL: +91-124-424-9011 FAX: +91-124-424-9005 TEL: +84-4-3632-0557 FAX: +84-4-3632-0557
• Purchase and sales of synthetic rubbers, chemical • Design simulation of optical materials and molded
products, and other products (including international trade) products, and market research for Zeon products in
Southeast Asia Singapore
Thailand Zeon Chemicals Singapore Pte. Ltd.
Tokyo Zairyo (Vietnam) LLC. 100 Banyan Drive, Jurong Island, Singapore 627571
Zeon Chemicals (Thailand) Co., Ltd. 4th Floor, Building 85 Nguyen Du Str., Hai Ba Trung District, TEL: +65-6933-4400 FAX: +65-6933-4413
3 Soi G-14, Pakorn-Songkhrorad Road, Tambol Huaypong, Hanoi, Vietnam 100000 • Manufacture and sales of synthetic rubbers
Amphur Muangrayong, Rayong 21150, Thailand TEL: +84-4-3941-3825 FAX: +84-4-3941-3826
TEL: +66-3-868-5973~5 FAX: +66-3-868-5972 • Purchase and sales of synthetic rubbers, chemical
Zeon Asia Pte. Ltd.
• Manufacture and sales of petroleum resins products, and other products (including international trade)
331 North Bridge Road, #20-01/02, Odeon Towers,
Singapore 188720
Zeon Advanced Polymix Co., Ltd. Malaysia TEL: +65-6332-2338 FAX: +65-6332-2339
591 UBCII BLDG, Office No.2206, 22thFL, Sukhumvit 33rd, • Sales, export, and import of synthetic rubbers,
Klongton Nua, Wattana, Bangkok 10110, Thailand Zeon Asia Malaysia Sdn. Bhd. synthetic latex, and petroleum resins
TEL: +66-2-261-0175 FAX: +66-2-261-0172 Unit 208, Block B, Phileo Damansara II, No.15, Jalan16/11, Off
• Manufacture and sales of rubber compounds (CM) Jalan Damansara, 46350 Petaling Jaya, Selangor, Malaysia Tokyo Zairyo (Singapore) Pte. Ltd.
TEL: +603-7956-7069 FAX: +603-7957-1758 331 North Bridge Road, #20-01/02, Odeon Towers,
Tokyo Zairyo (Thailand) Co., Ltd. • Sales of synthetic latexes
Singapore 188720
29th Floor Room 2903, Empire Tower 1 South Sathorn Rd., TEL: +65-6337-5053 FAX: +65-6337-4557
Yannawa, Sathorn, Bangkok 10120, Thailand • Purchase and sales of synthetic rubbers, chemical
TEL: +66-2-670-0285 FAX: +66-2-670-0283 products, and other products (including international trade)
• Purchase and sales of synthetic rubbers, chemical
products, and other products (including international trade)
15 ZEON GROUP
We are continuing to globalize our business operations, having first turned our attention to global markets in the 1970s. We are setting up
sales networks in major markets around the world and establishing 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 with
local communities and contributes to the global society.
USA
Tokyo Zairyo (Shanghai) Co., Ltd. Zeon Chemicals L.P. Zeon Chemicals L.P. - Texas Plant
Room 1503, Hongwell International Plaza, West Zhongshan 4111 Bells Lane, Louisville, Kentucky 40211, U.S.A. 11235 Choate Road, Pasadena, Texas 77507, U.S.A.
Road 1600, Xuhui District, Shanghai, 200235, China TEL: +1-800-735-3388 FAX: +1-502-775-2055 TEL: +1-281-474-9693 FAX: +1-281-474-0966
TEL: +86-21-6119-9400 FAX: +86-21-6119-9401 TEL: +1-502-775-2000
• Purchase and sales of synthetic rubbers, chemical • Manufacture and sales of synthetic rubbers Tokyo Zairyo (U.S.A.) Inc.
products, and other products (including international 50 Main Street, White Plains, New York 10606, U.S.A.
trade) Zeon Chemicals L.P. - West Coast Office TEL: +1-914-285-9070 FAX: +1-914-285-9072
5 Centerpointe Drive 4th Floor Suite 401 Lake Oswego, • Purchase and sales of synthetic rubbers, chemical
Tokyo Zairyo (Tianjin) Co., Ltd. OR, 97035, U.S.A. products, and other products (including international
Room 1805, The Exchange Tower 1, 189 Nanjing Road, TEL: +1-971-204-0245 FAX: +1-971-204-0240 trade)
Heping District, Tianjin, 300051, China
TEL: +86-22-23021268 FAX: +86-22-23021278 Zeon Chemicals L.P. - R＆D Center
• Purchase and sales of synthetic rubbers, chemical 4111 Bells Lane, Louisville, Kentucky 40211, U.S.A.
products, and other products (including international TEL: +1-502-775-7765 FAX: +1-502-775-7783
trade)
Zeon Chemicals L.P. - Kentucky Plant
Tokyo Zairyo (Guangzhou) Co., Ltd. 4100 Bells Lane, Louisville, Kentucky 40211, U.S.A.
Room 1208, Goldlion Digital Network Center, No. 138 Ti yu TEL: +1-502-775-7600 FAX: +1-502-775-7614
Dong Road, Tianhe District, Guangzhou, Guangdong,
510620, China Zeon Chemicals L.P. - Mississippi Plant
TEL: +86-20-3878-0671 FAX: +86-20-3878-1336 1301 West Seventh Street, Hattiesburg, Mississippi 39401,
• Purchase and sales of synthetic rubbers, chemical
U.S.A.
products, and other products (including international
TEL: +1-601-583-6020 FAX: +1-601-583-6032
trade)
Indonesia Mexico
PT. Tokyo Zairyo Indonesia Zeon Kasei Mexico S.A. de C.V.
Gedung MidPlaza 2, Lantai 12, Jl. Jend. Sudirman Kav. Avenida Santiago Sur 100, Los Jassos, San Luis Potosi,
10-11,Jakarta 10220 San Luis Potosi, MEXICO, C.P.78420
TEL: +62-21-574-6454 FAX: +62-21-573-5661 TEL: +52-1-444-478-5400
• Purchase and sales of synthetic rubbers, chemical • Manufacture and sales of resin compounds for
products, and other products (including international trade) powder slush
South Korea Tokyo Zairyo México S.A. de C.V.

Boulevard Bernardo Quintana 7001 Torre II Suite 807
Zeon Korea Co., Ltd. Colonia Centro Sur, C.P. 76090 Querétaro; Querétaro,
No.403, 4Fl., 36, Teheran-ro 87-gil, Gangnam-gu, Seoul, México
06164, Korea（City Air Tower, Samseong-dong） TEL: +52-442-229-3242 FAX: +52-442-229-3244
TEL: +82-2-539-8565 FAX: +82-2-538-5190 • Purchase and sales of synthetic rubbers, chemical
• Sales and import of optical materials, imaging and products, and other products (including international trade)
electronics materials, synthetic resins, and synthetic
rubbers, etc.
Brazil
Zeon Shinhwa (Zeshin) Inc. Zeon do Brasil Ltda
No.502 CALT B/D (City Airport）
22, Teheran-ro 87-gil, Rua Arandu, 57/cj 23, Sao Paulo-SP, Brazil
Gangnam-gu, Seoul, 06164, Korea TEL: +55-11-5501-2120 FAX: +55-11-5501-2122
TEL: +82-2-761-7030 FAX: +82-2-786-7221 • Sales of synthetic rubbers and resins, etc.
• Sales of imaging and electronics materials
Taiwan
Zeon CSC Corporation
3rd Fl. 266, Sec. 1, Wen Hwa 2 Road, Linkou District, New
Taipei City 24448, Taiwan, R.O.C.
TEL: +886-2-2609-2156 FAX: +886-2-2600-6413
• Sales of optical materials
16
ZEON GROUP
Zeon Group Locations
Japan as of September 30, 2017
Zeon Corporation – Head Office Zeon Corporation – Kawasaki Plant Zeon Corporation – Tokuyama Plant
Shin Marunouchi Center Building, 1-6-2 1-2-1 Yako, Kawasaki-ku, Kawasaki-ku, 2-1 Nachi-cho, Shunan-shi, Yamaguchi 745-0023,
Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan Kanagawa 210-9507, Japan Japan
TEL：+81-3-3216-1772 FAX：+81-3-3216-0501 TEL: +81-44-276-3700 (direct) TEL: +81-834-21-8501 (direct)
FAX: +81-44-276-3720 FAX: +81-834-21-8793
Zeon Kasei Co., Ltd.
Shin Marunouchi Center Building, 1-6-2 Zeon Corporation – R&D Center Zeon Yamaguchi Co., Ltd.
Marunouchi, Chiyoda-ku, Tokyo 100-0005, TEL: +81-44-276-3721 2-1 Nachi-cho, Shunan-shi, Yamaguchi 745-0023,
Japan*same as follows FAX: +81-44-276-3720 Japan
TEL：+81-3-5208-5111 FAX：+81-3-5208-5290 TEL: +81-834-21-8482 FAX: +81-834-21-8663
• Manufacture and sales of powder slush • Purchase and sale of civil engineering materials,
compounds (PSC), functional films, containers and packing materials, and various facilities; design
other transport materials, packaging materials, and construction, contracting for various plants;
construction materials, and deodorants. Zeon Corporation – Takaoka Plant environment analysis
630 Ogino, Takaoka-shi, Toyama 933-8516,
Zeon F&B Co., Ltd. Japan
TEL: +81-3-3216-1410 FAX: +81-3-3216-1421 TEL: +81-766-21-0252 (direct)
• Agency business for life and non-life insurance; FAX: +81-766-21-8201
loan and factoring business to each group
company Zeon North Co., Ltd.
351 Ejiri, Takaoka-shi, Toyama 933-0062, Japan
RIMTEC Corporation TEL: +81-766-25-1111 FAX: +81-766-25-4059
TEL: +81-3-5220-8581 FAX: +81-3-5220-8584 • Contracting, design, construction, and
Plants, R&D Center: Mizushima management for various facilities; sales of industrial
• Sales of formulation liquid for Reaction Injection materials and equipment, purchase and sale of
Molding (RIM) petrochemical products; testifying environmental
measurements, measurement working
Zeon Nano Technology Co., Ltd. environment; conducting various analyses
TEL: +81-3-3216-1766 FAX: +81-3-3216-1767
• Processing and sales of Carbon Nanotubes and Optes Inc.
related products 422-1 Futagamishin, Takaoka-shi, Toyama
933-0981, Japan
Zeon Medical Inc. TEL: +81-766-32-1590 FAX: +81-766-32-1591
TEL：+81-3-3216-1265 FAX：+81-3-3216-1269 Plants: Toyama, Fukui, Sano
Plant: Takaoka • Manufacturing of optical film and optical parts;
• Manufacturing and sale of medical devices design and manufacturing of mold
Tokyo Zairyo Co., Ltd.

TEL: +81-3-5219-2171 FAX: +81-3-5219-2201
• Trading
ZS Elastomer Co., Ltd.

TEL：+81-3-3216-0620 FAX：+81-3-3216-0629
• Sales and R&D of S-SBR
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
ZIS Information Technology Co., Ltd.

Shin Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan
TEL: +81-3-3216-6500 FAX: +81-3-3216-6534
• Consulting about data processing systems; sales
and maintenance of computer and office
automation equipment
17 ZEON GROUP
Zeon Corporation – Mizushima Plant Zeon Corporation – Osaka Office
2767-1 Kojima Shionasu Aza Niihama, Kurashiki-shi, Furukawa Osaka Bldg. West 4F, 2-1-9 Dojimahama,
Okayama 711-8511, Japan Kita-ku, Osaka-shi, Osaka 530-0004 Japan
TEL: +81-86-475-0021 FAX: +81-86-475-1169 TEL: +81-6-4797-8220 FAX: +81-6-4797-8225
Zeon RIM Co., Ltd. Tohpe Corporation

2767-22 Kojima Shionasu Aza Niihama, Kurashiki-shi, 1-5-11 Chikkoshinmachi, Nishi-ku, Sakai-shi, Osaka
Okayama 711-0934, Japan 592-8331, Japan
TEL: +81-86-475-0621 FAX: +81-86-475-0620 TEL: +81-72-243-6411 FAX: +81-72-243-6415
• Manufacturing, processing and sale of plastic Plants: Ibaraki, Mie, Kurashiki
molding products • Manufacturing and sale of paints and chemical
products
Zeon Corporation – Nagoya Office Zeon Polymix Inc.

Ichigo Fushimi Bldg. 7F, 1-18-24 Nishiki, Naka-ku, 1-11-1 Ishizue, Otsu-shi, Shiga 520-2272, Japan
Nagoya-shi, Aichi 460-0003 Japan TEL: +81-77-546-1223 FAX: +81-77-546-0338
TEL：+81-52-209-9145 FAX：+81-52-209-9147 Plants: Otsu
• Manufacturing compound of synthetic rubber
(carbon masterbatches)
Zeon Chemicals Yonezawa Co., Ltd. Zeon Kasei Co., Ltd. – Ibaraki Plant
3-446-13 Hachimanpara, Yonezawa-shi, 1175 Kamiizushima, Bando-shi, Ibaraki 306-0654,
Yamagata 992-1128, Japan Japan
TEL: +81-238-29-0055 FAX: +81-238-29-0053 TEL: +81-297-34-2111 FAX: +81-297-34-2316
• Manufacturing, processing and sale of aromatic • Manufacture of processed plastic products (PVC
chemicals, the intermediate of medicine and compounds), powder rubbers, resin sheets, and
agricultural chemicals and RIM formulation liquid low-pollution resin sheet molded products
River Xemex Co., Ltd. TFC Inc.

2-11-17 Osachigosho, Okaya-shi, Nagano 34-23-2 Azono, Tsuruga-shi, Fukui 914-0141,
394-0082, Japan Japan
TEL: +81-266-21-2131 FAX: +81-266-21-1550 TEL: +81-770-21-1711 FAX: +81-770-21-1775
• Manufacture of medical devices • Manufacturing of optical films
18
ZEON GROUP
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 power
of chemistry.”
2016‒2017 Topics P20

Interview with the President
New Mid-Term Management Plan Toward
the Enterprise Blueprint for 2020 P21
Business and Strategy

Elastomer Business P27
Specialty Materials Business P29
Research and Development (R&D) P31
Corporate Governance P33
19 ZEON GROUP
2016–2017 Topics
The summary of Zeon’s major business developments from April 2016 to the first half of 2017.
●Germany
Shanghai
● ●Kawasaki
■
ATSL
▶P21 ▶P28 ▶P22
Start of mid-term management plan Asia Technical Support Laboratory Mexico plant began operations for
SZ-20 Phase III (ATSL) opened in Singapore powder slush compound (PSC)
In April 2017, Zeon Group started the new In July 2017, ATSL opened in Singapore Zeon Kasei has constructed a plant in
mid-term management plan for the to offer technical support to Mexico to produce PSC used in
four-year period until the end of FY 2020. manufacturers of oil seals and other automotive dashboards. The plant began
The plan aims to achieve the Enterprise specialized rubbers. ATSL enhances full-scale operations in June 2017. The
Blueprint for 2020 goal of 500 billion yen Zeon’s technical services for specialized plant supplies PSC for automotive
in consolidated net sales by providing rubbers in the ASEAN and Indian regions, production in the growing North American
solutions that combine Zeon products and where growth in vehicles with internal market.
services. combustion engines is expected.
▶P22 ▶P27 ▶P22
Expansion of Mizushima Plant ZS Elastomer Co., Ltd. begins Zeon Chemicals Singapore (ZCS)
In July 2016, construction to increase the operations for S-SBR completed second S-SBR production
production capacity of Quintac ® ZS Elastomer was established as a joint line
thermoplastic elastomers and ZEONEX ® venture between Zeon Corporation and A second S-SBR production line for ZCS
and ZEONOR ® cyclo-olefin polymers at Sumitomo Chemical for solution- was completed in April 2016. The addition
Mizushima Plant was completed. polymerized styrene butadiene rubber increases its annual production capacity
Hydrogenation facilities for Quintone ® (S-SBR) and began operations in April from 35,000 tons to a total of 70,000
petroleum resin were installed in July 2017. ZS Elastomer handles sales and tons. The S-SBR produced here is sold
2017. research and development of S-SBR. through ZS Elastomer.
▶P30 ▶P32
Prototype service launches for Multiple research centers established for Development of pad-type thermal
production of microfluidic chips single-walled carbon nanotubes (SWCNT) interface material (TIM)
In March 2017, Zeon began a prototype In July 2016, the Zeon–AIST Nanotube achieving low thermal resistance
production service for devices using Industrialization Cooperative Research Zeon completed a pilot plant for mass-
ZEONEX® and ZEONOR ® in the medical Laboratory was established to conduct production of pad-type TIM using rubber/
and biotechnology fields. production research on SWCNT. In February SWCNT composite in February 2016, and
2017, the Zeon Sunarrow AIST CNT Composite further development is ongoing.
Material Research Center was established with
Sunarrow and AIST to conduct research and
development on SWCNT composite materials.
20
ZEON GROUP
New Mid-Term Management

Plan Toward the Enterprise
Blueprint for 2020
President Kimiaki Tanaka outlines where Zeon Group is
today and its outlook for the future in a Q&A format.
Kimiaki Tanaka
President
Zeon Corporation
Q.1 Could you summarize what Zeon achieved and did not achieve in the SZ-20 Phase II plan that finished at the
end of fiscal 2016?
A.1 【Summary】Reforming our corporate culture is not as far along as we had planned. While Zeon’s Groupwide
sales have also not reached our target, the Elastomer Business has augmented its global sites
in growth markets and is undergoing reorganization to achieve greater growth. The Specialty
Materials Business has seen steady growth in the three key fields.
So I still see reforming our corporate culture as the most ●Fig. 1. Consolidated Results by Segment
important issue we face. When we were formulating our
Phase II plan, we talked about the need to change how we Net sales　■Specialty Materials　■ Elastomers　■Others
as individuals think and do our work, and how ultimately we Operating income　●Specialty Materials　 Elastomers　◆Total
need to change Zeon, which is made up of us as individuals, Net sales Operating income
(billion JPY) (billion JPY)
to achieve large and disruptive growth unlike what we have Consolidated net sales total in [ ]
350 35
achieved in the past. And then we set about reforming our ［296.4］［307.5］［295.6］［287.6］
corporate culture. We have not yet arrived at where we want 30.8
29.9 29.9
to be, and this is the biggest piece we did not accomplish 300 28.2 30
before Phase II. 50.8 48.0
50.0 49.0
In terms of performance, Zeon’s Groupwide net sales
250 25
did not grow significantly, but the Elastomer and Specialty
Materials businesses, and Zeon Group, were reasonably 20.7
200 19.3 20.6
profitable (Fig. 1). 20
16.8
The Elastomer Business expanded its global sites, mainly
184.4
in the growth markets of India and Southeast Asia (Fig. 2). The 178.9 166.2
150 15
business also underwent reorganization with a joint venture 188.8
with Sumitomo Chemical and the closing of a UK plant. 9.1
100 9.4 8.2 9.8 10
Nonetheless, we are still not satisfied with our ability to
meet changing market conditions. We must develop value-
added, differentiated products that are not easily impacted 50 5
by market swings. And we need to further increase our cost 64.2 70.9 71.0 75.0
competitiveness.
0 0
2013 2014 2015 2016 (FY)
21 ZEON GROUP
●Fig. 2. The Elastomer Business has expanded its global footprint in growth markets and has been reorganized for growth
■ Existing production base

■ New production base
● New sales base
U.K.
Ended NBR production
Plant closed
in March 2016
Japan (Mizushima Plant)
・SIS capacity expanded
・Installed hydrogenation
India facility for petroleum resin
Sales base
Established
in July 2015
Japan and Singapore

Singapore
S-SBR plant S-SBR Joint venture
・Second Line began launched with Sumitomo
operating in April 2016 Chemical in April 2017
・Oil extension facility began
operations in July 2017
Mexico
PSC plant Established
Full-scale operations
in June 2017
Singapore
The Asia Technical Support
Lab. for Specialty rubber
began operating in July 2017
NBR: Nitrile Rubber
S-SBR: Solution-polymerized Styrene Butadiene Rubber
PSC: Powder slush compound
The Specialty Materials Business is focused on the three ●Fig. 3. The three key fields of the Specialty
key fields of IT components, energy materials, and medical Materials Business Net sales index
devices, and is showing steady growth (Fig. 3). Optical films
for IT components has become one major field of business ● Energy materials　● IT components　■ Medical devices
and where we have expanded our facilities. The field of energy (FY 2010=100. Consolidated basis)
materials has also seen a lot of growth over the last three (Index)
years. We’ve expanded our product offerings from anode 500
binders for lithium-ion batteries to include cathode binders and
450
binders for functional layers. In the field of medical devices,
we’re seeing positive response for the FFR device we released 400
last year.
In 2015, we finished building the world’s first mass- 350
production plant for single-walled carbon nanotubes. We have 300
set up a research center together with a number of companies
and groups are now working to develop applications for the 250
carbon nanotubes.
200
While it has had many successes, our Specialty Materials
Business as a whole has not managed to achieve dramatic 150
growth, and needs to develop new products and expand
100
production to reach the scale of our Elastomer Business.
50
0
2010 2011 2012 2013 2014 2015 2016 (FY)
SZ-20 SZ-20
PhaseⅡ
22
ZEON GROUP
●Fig. 4. New mid-term management plan SZ-20 Phase III: Groupwide strategy
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 and

product development in key development areas: global
environment, smart devices, and health and living
(3)Cultivate a corporate culture that places value on

Culture taking proactive action by harnessing diverse ideas
and trying them.
Q.2 In the Groupwide strategy for the new mid-term management plan SZ-20 Phase III (Fig. 4), what are the
objectives of “reinforce,” “explore,” and “solution”?
A.2 【Summary】We will provide added value by satisfying customers’ needs throughout the supply chain as well
as their hidden needs. By reinforcing and exploring products and services, we will create and
provide solutions.
Just providing product samples is not enough to get departments, bringing together the knowledge that exists
customers to use new products. We have to offer new throughout Zeon, and combining our technological expertise,
products with an understanding of how the customer will we can reinforce these products. And if we also work
process the product and what kind of equipment they need together with outside partners to bring in new knowledge, we
for this. For example, I used to work in the field of etching will be able to create more new applications and products.
gases. If a gas is toxic, then the customer needs to use a This is the meaning of explore.
gas detector, mask, and gloves, and also needs the relevant Reinforcing and exploring enables us to see across the
safety information. And if it’s a new substance, the customer entire supply chain for the customer—not just procurement
might not have the peripheral equipment and other things but planning and development as well as sales and after-
they need to use the substance. The solutions we’re talking sales service. I want us to expand our business with the
about are packages of all of these things sold as a set. mindset of creating added value to meet customers’ known
Rubber, latex, and some other chemicals with a long and hidden needs by combining our products with services.
history as stand-alone products have not required these
peripherals. However, by removing the barriers between
Q.3 Zeon has set the three new key development areas of Global Environment, Health and Living, and Smart
Devices (Fig. 5). How is Zeon involved in these fields?
A.3 【Summary】Taking a bird’s eye view of all of Zeon, we have great potential for growth, and these key
development areas have high probability of innovation.
In addition to development in new areas, we are also looking at applications for existing products
and new applications development. (Related ➡P31 Research and Development)
In the past, we set three key business fields just for the large growth potential after 2020, and we see high probability of
Specialty Materials Business, but we include the Elastomer contributing to innovation with Zeon technologies.
Business in these new areas to add heightened perspective and The Global Environment area includes batteries and power
broader range. These areas were chosen because they have generation, where we have contributed energy materials, and
23 ZEON GROUP
automobiles, reducing fossil fuel use, and energy conservation, R&D is central to this, and we are reorganizing our research
which involve our Elastomer Business. organization and starting new initiatives to strengthen our
In the field of self-driving cars in Health and Living, the market cooperation with outside partners.
for automotive sensing cameras is growing as self-driving car
technology advances, and we anticipate related new product
development in high-performance resin.
Smartification will continue to
advance, and the IoT field in Smart
Devices encompasses all fields in the ●Fig. 5. Groupwide strategy (2) Key development areas
Global Environment and Health and
Living areas. All of these fields are Global Environment Health and Living
connected to Zeon’s business.
Batteries Agriculture
To expand our business scale, we Reduced of Self-driving
fossil fuel use
must launch new products to create cars
new business. And we have to do Energy Daily

conservation Medical necessities
Automotive
more than just launch new products— materials
we have to harness other potential
Power Medical
within Zeon. For instance, divisions generation devices
should be introducing other divisions’
products to their customers and finding
new markets for existing products.
IoT
Zeon Group can create new value by
exploring ways to leverage our customer
relationships and combine our products
and technologies.
Smart Devices
Q.4 How will you achieve the Groupwide strategy of cultivating Zeon’s corporate culture?
What outcomes have been achieved through the ongoing Taimatsu (Torchlight) activities and activities for a
healthy workforce?
A.4 【Summary】We will continue efforts to develop our corporate culture and create ways to generate and apply
ideas. (Related ➡P39)
While the mid- to long-term outlook holds much uncertainty,

we will not be able to generate new things if we hesitate
to act from fear of failure. To achieve our growth strategy, Groupwide Strategy (3):
all employees need to take action, and this is why I believe
reforming our organizational culture is the most important issue
Cultivate a Corporate Culture
that we face.
As a team, I want us to create an organizational culture that
● Taimatsu (Torchlight) Activities
encourages individuals to take the initiative and think about ● Dialogue between management
what is possible and how to achieve it, and then take action. 　 and employees
We have conducted activities to encourage dialogue that ● System to support and generation
transcends the barriers within and between organizations. We 　 of ideas
call these Taimatsu (Torchlight) activities because we want them
● Promotion of diversity
to light a fire in people’s hearts. The Torchlight activities have
been going on for six years now, and we will continue them
and make them a fixed feature of Zeon Group. We hear about
the results the Torchlight activities are achieving during twice
annual plant visits senior managers make to engage in dialogue
and at meetings to report on ＺΣ improvement activities. We’re abnormal results in routine physical exams among employees
going to continue these activities in our Phase III plan as well at both the Head Office and plants. We welcome all employee
as make it easier to get ideas and suggestions through two- efforts big and small to become healthier, and as a company
way dialogue between management and employees and offer we are developing initiatives and creating conditions for better
support to realize them. We will also try some new ways to get health and well-being. Specifically, we will continue efforts
ideas and suggestions and see them realized. to improve employee lifestyle habits based on data including
In addition, the health and well-being of all Zeon employees from physical exams, to detect changes in health early through
is a source of our strength. Right now, we have a high rate of stress checks, and to reduce excessive working hours.
24
ZEON GROUP
Q.5 What challenges does diversity pose, and what initiatives are you undertaking?
A.5 【Summary】Diversity is a key component of strengthening our global development. We will continue the
initiatives we have been implementing, including advancing women’s participation in the workplace.
In SZ-20 Phase III, global markets are the main focus of growth. As part of this, we will continue to have senior
our business expansion. So it becomes increasingly important managers and women employees engage in dialogue.
for us to understand and embrace the cultures and customs We also want to have greater diversity in terms of more
of our global customers and business partners. Zeon’s participation by non-Japanese employees, older employees,
percentage of women in senior management positions is also and employees with disabilities. For example, local Singapore
not high. employees are senior managers at our plant in Singapore.
I believe that greater diversity leads to more opportunity We will create workplace conditions that allow more diverse
to create change in people and organizations and achieve human resources to play an active role irrespective of gender.
Q.6 What are the key points of Zeon’s Elastomer Business strategy?
A.6
【Summary】W
e will continue to assess added-value product fields and globally reorganize the business to
move away from commodities toward specialty products. (Related ➡ P27)
Synthetic rubber is made from a limited source, and in the

rubber business we aim to use the raw material in products that
are more in demand by customers and contribute to society. We SZ-20 Phase III: Strategy
are focusing on quickly identifying value leading to differentiation, by Business Segment
and on specialty products with recognized value instead of Elastomer Business
commodity products easily impacted by market swings. Our
specialty rubbers such as Zetpol®, acrylic rubber, NBR, and ● Reinforce competitive businesses by responding
S-SBR are products we are targeting for reinforcement. globally to growth markets and raising cost
effectiveness.
S-SBR was created in collaboration with Sumitomo Chemical,
and we launched the joint venture ZS Elastomers in April of this ● Explore new opportunities and achieve growth
based on the trust built in the market and
year. We intend to create technology and production synergies relationships with customers.
to take a leading position in the global marketplace. In July,
➡ S-SBR Highlight 1 P3
we opened the Asia Technical Support Laboratory (ATSL) to
➡ Elastomer Business strategy P27
support the growing ASEAN and Indian region and are offering
solutions in specialty rubbers to expand business.
In the latex business, we are targeting sales of new products in
the growing industrial gloves market and development of emulsion category for Asymmetric SIS (Related ➡ P32).
IR. Demand is rising for powder slush compounds, which are
We will expand our business in petroleum resin with hygienic used in automotive interior applications, along with higher global
materials applications using our proprietary hydrogenation vehicle production. We are augmenting our supply structure and
technology. In thermoplastic elastomers, we are exploring new business with a new plant in Mexico to serve the large North
applications for Asymmetric SIS. We received the 2016 Award American market. This is our third plant following ones in Japan
of the Society of Polymer Science, Japan in the Technology and China.
Q.7 What are the key points of the Specialty Materials Business strategy?
A.7 【Summary】Expand product volumes and applications in response to the growing market. (Related ➡ P29)
Strong-performing optical films that use ZeonorFilm® meet panel market with a portfolio of new components and materials.
growing demand for large sized and high-resolution LCD Cyclo-olefin polymer is a high-performance resin, and we will
panels. We will also enter the promising Organic EL display offer solutions through one-stop service providing prototypes
25 ZEON GROUP
targeting the medical and biotechnology fields.
We will steadily expand our business in energy components
with distinctive products mainly for the automotive market that SZ-20 Phase III: Strategy
meet needs for battery safety, extended life, and higher output.
by Business Segment
We intend to expand our market share by achieving growth that
outpaces market growth. Specialty Materials Business
In the area of medical devices, we plan to expand our market
share of FFR devices while also focusing on devices for the ● Expand business in step with the speed of
digestive system. market growth and technological progress
In new specialty materials, in 2018 we expect to commercialize through focused investment of resources and
a thermal interface material that is a rubber–carbon nanotube stronger collaboration with outside players.
composite. We intend to grow this into a major business area with ➡ Energy materials Highlight 2 P5
applications development mobilizing its properties. ➡ Specialty Materials Business Strategy P29
Q.8 What approach are you taking to achieve the Enterprise Blueprint for
2020 target of 500 billion yen in net sales?
When we were drafting the SZ-20 plan in 2011, we had

consolidated sales of around 250 billion yen. We set the
goal of doubling this to 500 billion with the aim of achieving
disruptive growth. This is still our approach today. To achieve
disruptive growth along with major business expansion, we
will invest in facilities at an early stage and may use M&A as
well.
In SZ-20 Phase III, we added the phrase “employees’
individual growth” to the Enterprise Blueprint for 2020. This
reflects our belief that it is important for everyone, from
senior managers to workers on the plant floor, to take the
initiative and achieve growth for their self-realization.
Our central focus is on changing our corporate culture
and organization, which we believe will in turn lead to
higher sales and profit. Through this process, we aim to
continue contributing to realizing customers’ dreams and a
prosperous society.
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.
Targeting consolidated net sales over

500 billion yen in FY 2020
26
ZEON GROUP
Elastomer Business
Net sales -12.7
In elastomers, our main business involves the three fields of billion JPY
（-7％）
synthetic rubber, synthetic latex, and chemical products, the (billion JPY)
main raw materials of which are C4 and C5 fractions derived 200 188.8 2017
184.4 178.9 （forecast）
from naphtha. In 1959, Zeon became the first company in 166.2 168.0
Japan to mass-produce synthetic rubbers. Even today, the
150
Elastomer Business is the core Zeon business, providing
60% of total net sales and operating income.
100
50
0
2013 2014 2015 2016 2017 (FY)
Segment
ratio
57％
Business overview and future strategy

In the Elastomer Business, the Enterprise Blueprint for 2020 The specialty rubbers business including NBR, hydrogenated
calls for taking the front-runner position globally in synthetic NBR, and acrylic rubber will see growth along with higher
rubbers. Being the front runner means being the supplier able to automobile production primarily in emerging countries. Automakers
offer best value that customers identify with and endorse. are focusing on developing electric vehicles, but we see internal
A major development in fiscal 2016 was the merger of our combustion engine vehicles as continuing to be the mainstream in
S-SBR business with Sumitomo Chemical Company and the the ASEAN and Indian region until around 2040. We are targeting
establishment of ZS Elastomers Co., Ltd. Zeon and Sumitomo the ASEAN-Indian region in our specialty rubber business and
Chemical handle production of S-SBR, while ZS Elastomers established the technical support organization ATSL (see Topics
handles R&D and sales. We expect to generate new synergies on right) in Singapore to strengthen our competitiveness. We are
through the combination of both our companies’ technologies for enhancing Zeon’s value by hiring local engineers to visit customers
S-SBR with modified terminals. The S-SBR business will continue in the region and provide a range of solutions.
to expand, and we are also exploring investing in new facilities for New synthetic latex products that we released in the second
future development. half of 2016 begin to demonstrate results in 2017. We are shifting
our focus from disposable latex gloves to products with higher
added value. Our NBR latex for industrial gloves is resistant to
tearing, and emulsion IR for surgical gloves feels comfortable and
does not contain proteins that cause allergic reactions. These are
some of Zeon’s added-value offerings.
In our chemicals business, we received the 2016 Award of the
Society of Polymer Science, Japan in the Technology category for
Asymmetric SIS (thermoplastic elastomer SIS). Asymmetric SIS
offers both high strength and flexibility, properties that are
challenging to achieve together with conventional elastomer
technologies. Asymmetric SIS shows development promise in a
number of new applications such as elastic films used in
disposable diapers. We increased the production capacity of
Mizushima Plant in 2016. Hydrogenation facilities for C5 petroleum
resin were installed at Mizushima Plant in July 2017. Hydrogenated
petroleum resin has beneficial properties including low odor,
transparency, and low VOCs, making it a promising material for
disposable diapers along with Asymmetric SIS.
Hiroyuki Hirakawa
Director & Senior Corporate Officer
Elastomers and Chemicals
Business
Division Manager – Logistics
27 ZEON GROUP
Operating income (ratio) Elastomer Business breakdown (FY 2016)
(billion JPY)
35 Sales quantity Net sales
(1,000 tons) (billion JPY)
-0.2
30 billion JPY Rubber 308 112.5
（-1％）（➡4％）（➡5％）
25 2017
20.7 20.6 (forecast)
19.6 Latex 121 17.8
20
19.3 （➡2％）（➡7％）
16.8
15
Chemicals 129 32.9
（％）（ 3％）（➡14％）
10 20
11.6
12.4
10.5 8.9
5 10 ●Reason for -4% change in rubber sales quantity
General purpose -2%: Japan -9%, global +4%
0 0
2013 2014 2015 2016 2017 (FY) Specialty -6%: Japan +5%, global -11%
●Change in specialty rubber ratio

Segment
ratio 62％ Quantity basis in 2015: 31% → 2016: 30%
Value basis in 2015: 58% → 2016: 54%
Zeon Kasei’s Mexico plant began operations for powder slush TOPICS
compound (PSC) manufacturing in June 2017. Use of PSC in

automotive interiors is growing due to its excellent design and Technical support center for specialty rubbers
mold fabrication properties and inexpensive cost. Products opened in Singapore
produced at the plant are supplied to automotive manufacturers in The Asia Technical Support Laboratory (ATSL) was
the Americas, where expansion is continuing. This is our third PSC established in July 2017. The ATSL provides technical
plant in addition to the Ibaraki Plant in Japan and the Changshu support to customers in areas such as blending, kneading,
Plant in China. Going forward, we will also explore plant and evaluating specialty rubbers primarily used in peripheral
development in Europe. automotive engine parts. By providing customers with proven
We are currently in the process of rebuilding our global solutions to their challenges, we will enhance Zeon’s presence
production capacity. Demand for automotive applications is rising in the ASEAN–Indian
in Asia, while political regimes in various countries are undergoing region, where growth
major changes. These factors are affecting the suitability of in internal combustion
production sites. We are therefore reorganizing where we make engine vehicles is
Zeon products, including increasing and suspending some forecast.
production operations. In addition, we need to realize disruptive
growth to achieve our new mid-term management plan targets.
We will explore M&A under the right conditions as part of this.
●SIS and Asymmetric SIS thermoplastic elastomer, petroleum resin, hydrogenated resin production and use
Raw materials procurement & manufacturing Production & sales Final product
Zeon (Mizushima Plant)

Customer
Isoprene SIS/Asymmetric Disposable diaper

GPI SIS films
C5 fractions
process
Piperylene (Hydrogenated) Disposable diaper
Petroleum resin paper adhesives
Risk Strength Strength Customer value
C5 fractions are Zeon’s proprietary GPI Added facilities for SIS production Disposable diaper films: Strength, flexibility
affected by naphtha process can extract raw (2016) Disposable diaper adhesives: Low odor,
price fluctuations materials from C5 fractions Added facilities for petroleum resin low VOCs, reduced discoloration
and supply volumes with a high degree of purity hydrogenation (2017)
28
ZEON GROUP
Specialty Materials Business

Net sales
Specialty materials refers to materials and components
offering high added value due to their macromolecular design
+4.0
(billion JPY)
100
billion JPY
and processing technology. （+6％）
2017
Focusing on future growth areas, we are positioning IT （forecast）
components (optical, packaging, electronics), energy 75.0 77.0
75 70.9 71.0
materials, and medical devices as our three main business 64.2
areas.
50
25
0
2013 2014 2015 2016 2017(FY)
Segment
ratio 26％
Business Overview and Future Strategy

In the Specialty Materials Business, we are using unique Onboard sensors supporting self-driving car technologies
concepts based on innovative original technologies to represent a new promising market for cyclo-olefin polymer
produce products with high added value that are not overly (COP) of the specialty plastics division. Demand for optical
influenced by conditions in the materials market. lenses for sensors is anticipated.
To achieve our Enterprise Blueprint for 2020, we will COP is gradually being adopted as a pharmaceutical
expand business in step with the speed of market growth packaging material alternative to glass in syringes pre-filled
and technological progress through focused investment of with drug solutions. We expect use of COP to expand along
resources and stronger collaboration with outside players. with market expansion as medical institutions seek greater
Optical films are a core business of our Specialty labor savings and pharmaceuticals come increasingly
Materials Business. Offering excellent performance, demand pre-packaged. In 2017, we began a prototype provision
for large-screen TVs is rising, although demand has fallen service for microfluidic chips (see Topics). We are aiming to
somewhat for smartphones and other small displays. develop this service in the medical and biotechnology fields
Demand is growing overall, and we anticipate stable by conducting R&D looking to future mass-production.
demand in the years ahead. We have entered the growing In energy materials, demand for electric vehicles (EV) is
market for organic EL panels (OLED) with new components forecast to rise, and with it the market for materials used in
based on new retardation film development. lithium-ion batteries for the automotive industry is also
forecast to grow. We anticipate growth in environmentally
friendly aqueous anode and cathode binders that replace
organic solvents as well as separators that contribute to
improved battery insulation. We intend to increase our
market share through systematic facilities investment to
augment our capacity and further performance improvements
in our components and materials. (Related➡P5)
We are aiming to double the scale of our medical devices
business between FY 2016 and FY 2020. Our market share
target of FFR devices, where solid growth is being seen in
circulatory system applications, is 30% by fiscal 2020.
Regarding the endoscopic business, we plan to release new
products for the removal of bile duct stones and stents.
In electronics materials, higher quality is being demanded
of materials as semiconductors become increasingly
miniaturized. We are going to introduce electronics materials
Hiroshi Fujisawa that satisfy the required quality, including etching gases,
Director & Corporate Officer insulation materials, and resists, to enter the market. In the
Specialty Business display market, we are expanding sales of insulating films
Division Manager – Specialty
Chemicals
with properties of high transparency, low water absorbency,
29 ZEON GROUP
Operating income (ratio) Specialty Materials Business breakdown (FY 2016)
(billion JPY)
20 Net sales (billion JPY) % change
Specialty
+1.6 chemicals 20.8 10％
16 billion JPY
（+20％） 2017 Specialty
12
（forecast）
plastics 49.0 4％
10.5
9.1 9.4 9.8
8.2
8 Medical, etc. 5.2 8％
（％）
20
14.2 13.3 11.6 13.1
4 ●Reason for +10% change in net sales in specialty chemicals
10 Specialty chemicals +3%, electronics materials +1%,
battery materials +38%, toners -3%
0 0
2013 2014 2015 2016 2017(FY) ●Reason for +4% change in net sales in specialty plastics
COP resins -8%, optical films +8%
• Optical film sales volume: +21%
Segment
ratio 30％ • Ratio of optical films for small displays (net sales)
2015: 37% → 2016: 18%
low outgassing, and high insulation. multiple divisions.

We are seeing strong sales in specialty chemicals that As our first component using single-walled carbon
offer original Zeon advantages. These include aroma nanotubes (SWCNT), we have commercialized a pad-type
chemicals, solvents for semiconductors, and thermal interface materials that combines SWCNT with
Prohydrojasmon, plant growth regulator. We are not only rubber to greatly lower thermal resistance and improve heat
making specialty chemicals sold on a stand-alone basis, radiating performance. This product contributes to
but also specialty chemicals that use for other materials smartification by helping lower the semiconductor
and components or are required in new product production. temperature of servers and power devices and resolving
Specialty chemical coatings to improve film performance their problematic heat generation. We will continue research
and processing solvents are two examples. A role of the on compounds using Zeon materials and seek out joint
Specialty Chemicals Division is to work across business research opportunities with a range of outside companies
divisions to enhance Zeon products. We intend to further and groups. (Related➡P20, 32)
strengthen this type of collaboration that brings together
TOPICS
Prototype service launched for production of microfluidic

chips using COP Low autofluorescence* Low protein absorption
Microfluidic chips are transparent circuit boards with microfluidic channels in
which reagents flow. This allows for easy observation of chemical reactions
in applications such as disease diagnosis. The development is continuing in Excellent optical properties Low impurity & low leachability
the drug development and medical testing and diagnosis fields in anticipation
of growing this into a major market in the future.
Demand is now rising for microfluidic chips in devices designed to detect
objects at high speed and with high sensitivity. COP has better properties as
a microfluidic chip material that make it suited than glass, which is the
mainstream material used today. These include low autofluorescence, low
protein absorption, and ease of precision etching.
This service receives orders from research institutes, universities, and other
groups to manufacture chips using COP for research purposes. Along with
limited production of a wide variety of products for research purposes, we
are supporting chipmaking that leverages the material’s properties with an
Low moisture permeability & Excellent resistance to chemicals
eye to mass-production using our expertise as a resin manufacturer. low water absorbency
*Autofluorescence: The natural emission of light by structures after they have absorbed light.
Lower autofluorescence is preferred due to noise during analysis
High heat resistance & strength Precision cutting
30
ZEON GROUP
Research and Development (R&D) R&D expenses

(billion JPY)
The R&D Center conducts Zeon Group’s R&D activities with a 15 14.1
13.6 13.2
workforce of more than 400 researchers. In addition to the 12.7
R&D Center’s 10 research buildings located next to the 11.9
Kawasaki Plant, we have established other laboratories
10
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 and
5
using new analysis and simulation techniques, and
developing and improving production processes and
equipment.
0
2012 2013 2014 2015 2016 (FY)
Major research themes in key development

areas Key development areas
Major research themes are needed to contribute to

achieving the Enterprise Blueprint for 2020 and its goal of 500
Global Environment Health and Living
billion yen in net sales. We strive to create these major
research themes as well as to quickly generate results.
We have defined the three priority markets to target as Smart Devices
Global Environment, Smart Devices, and Health and Living. To
explore research themes, we will create task forces comprising
researchers with advanced specializations, and will define the
research themes by backcasting (reverse forecasting) from Define research themes by
future market forecasts. backcasting (reverse forecasting) from
the market forecast for the area
Generating results means launching products in the
markets. We will reorganize and reinforce our organization to
commercialize a large number of major research themes.
●R&D System
Research & Foundation Technology Laboratory

Development Center
New Materials Development Laboratory
CNT Laboratory
Elastomer Laboratory
Functional Particles Laboratory
C5 Chemicals Laboratory (Mizushima)
Specialty Chemicals Laboratory
Advanced Performance Materials Laboratory
Specialty Plastics Laboratory
Precision Optics Laboratory (Takaoka)
Medical Laboratory (Takaoka)
Manufactured Product Development Laboratory

Sachio Hayashi
Director & Senior Corporate Officer Production Technology Laboratory
Research & Development
Division Manager – Research and Development Center
31 ZEON GROUP
Organization for new synergy creation IP strategy
We reorganized our R&D system in April 2017. We integrated We are working to expand our intellectual property rights with
separate laboratories for electronics materials and specialty the key phrase “patent first” to enhance our competitiveness and
chemicals into the Specialty Chemicals Laboratory. We also contribute to industry development in line with our corporate
integrated laboratories conducting research on toners and the strategy.
molecular properties of latex into the Functional Particles At Zeon, we define “patent first” as investigating patents at the
Laboratory. We expect to create new synergies from these initial product development stage, proceeding with development
moves to combine overlapping areas of research. based on the patent strategy, and filing patent applications before
We are also purposefully creating exchanges among announcing products and providing samples.
researchers in our Japanese and global laboratories. We will maintain a high degree of competitiveness based on
patents that combine and apply leading individual technologies.
Strengthening collaboration with

outside parties From materials to components and
solutions
We need even more manpower to conduct research on a
number of new themes and shorten the time to product launch. Zeon has primarily offered materials as a chemicals
This is why we are continuing to ramp up our joint research manufacturer. In the years ahead, we will process these materials
activities with other companies, public research institutes, and to add value and create solutions. For example, we will offer our
universities. We are collaborating on the sidelines on various materials together with technical usage support in the same way
research themes and will explore partnerships with outside we have processed cyclo-olefin polymers to produce films as
players including some of our competitors according to the high added-value components. To do this, we are focusing on
anticipated outcomes. R&D and strengthening coordination with customers.
●Zeon’s technology advances and business development
Hybrid technologies
Specialty components Precision processing technologies
Cyclo-olefin polymer technologies

Specialty materials Technologies for comprehensive use of C5
Commodity chemicals Elastomer technologies
Business
Technologies & businesses foundation New business
TOPICS TOPICS
Awards for research results Joint research on carbon nanotubes

In May 2017, we received the 2016 Award of the Zeon is the first company in the world to commercialize
Society of Polymer Science, Japan in the Technology single-walled carbon nanotubes (SWCNT) in the Super-Growth
category for development of styrene-isoprene-styrene method. In compounds with various materials, SGCNT are
block copolymer, which has an asymmetric structure expected to demonstrate novel properties and performance.
(Asymmetric SIS). Zeon is participating in a number of projects and engaging in
Asymmetric SIS not only offers dramatic performance applied research.
gains over conventional ・Participation in the Project for Super-Rapid Development
products, it also offers Infrastructure Technologies for Super-Advanced Materials/NEDO*1
functional properties that project (May 2017)
are a challenge to ・Zeon Sunarrow AIST*2 CNT Composite Material Research Center
achieve together and is established (February 2017)
seen as having potential ・Development of thermal interface material (TIM) as a high-
widespread application. performance thermal pad using SWCNT and rubber compound
through Research Projects for Commercializing Nano-Carbon
Materials to Realize Low Carbon Society (November 2016)
・Zeon–AIST Nanotube Industrialization Cooperative Research
Laboratory established (July 2016)
*1 NEDO: New Energy and Industrial Technology Development Organization
*2 AIST: National Institute of Advanced Industrial Science and Technology
32
ZEON GROUP
Corporate Governance
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 the
company and to carry out rapid decision-making and execution. We are also improving corporate transparency through appropriate
monitoring and disclosure of business activities and their effects. We are determined to further enhance our corporate governance
system to effectively carry out these aims.
●Corporate Governance System ●Board of Directors

The Board of Directors meets, in principle, every
General Meeting of Shareholders month with corporate auditors in attendance to
ensure compliance with applicable laws and the
Decisions/Supervision (Appointments/dismissals) Collaboration (Appointments/ Articles of Incorporation in the execution of
(assistance) dismissals)
(appointments/dismissals) business. In addition to its statutory duties, the
Auditing (Dismissals) role of the Board of Directors is to make
Board of Directors Corporate Auditors (Board) Financial Auditors Auditing important decisions about basic management
Collaboration
Financial Personnel policy, strategy, and other aspects of business
Decisions/Supervision Auditing
(selections/dismissals) Audits execution. As of October 2017, the Board of
Directors consists of 12 directors, including three
Collaboration outside directors.
Business Execution &
Representative Director Internal Controls System
Executive Committee ●Executive Committee
The Executive Committee, in accordance with
Department of CSR Conference
Reporting the Executive Committee Rules, comprises the
Internal Auditing President and executive officers ranked senior
CSR corporate officer or above and meets twice a
Basic Policy Risk Management Committee Reporting month in principle to examine and make
Committee (external)
decisions on important business matters after
Compliance Committee due deliberation involving consultation with
Internal audits
External
lawyers attending full-time corporate auditors. Important
Environmental & Safety Affairs Committee business matters stipulated in the Board of
Director Rules are examined and decided by the
PL Committee Reporting
(internal)
Board of Directors.
Quality Assurance Committee
●Board of Corporate Auditors
Public Relations Committee The Board of Corporate Auditors comprises five
members, including three outside corporate
auditors. The Board reports, discusses, and
Business divisions, indirect divisions, research laboratories, plants adopts resolutions on important business
matters. In accordance with the auditing
Reporting Reporting
Control/monitoring (internal) guidelines established by the Board of Corporate
(external)
Auditors, each corporate auditor audits directors’
Subsidiaries/Affiliates execution of their duties through various means,
such as attending Board of Directors meetings
and monitoring business operations, including
subsidiaries' operations.
Risk Management
The Risk Management Committee and the Compliance Committee, along with the ●Risk Management and Compliance System
Compliance Committee’s subcommittees, namely the Antitrust Law Regulatory
Subcommittee, the Export Security Control Subcommittee, the Corporate Governance
CSR Conference
Subcommittee, and the Information Security Subcommittee, are advancing Zeon's risk
management and compliance initiatives.
Compliance Risk
Committee Management
Prevention of legal Committee
violations
Education and Prevention and
training in control of risks
compliance with laws Crisis management
Antitrust Law Regulatory Subcommittee
Export Security Control Subcommittee
Corporate Governance Subcommittee
Information Security Subcommittee
33 ZEON GROUP
Directors and Officers (as of October 1, 2017)
Directors
Chairman President Director & Senior Corporate Officer Director & Senior Corporate Officer
Naozumi Furukawa Kimiaki Tanaka Hiroyuki Hirakawa Toru Nishijima
Chairman of Tohpe Corporation Elastomers and Chemicals Business Production and Engineering Technology
Division Manager – Logistics Division Manager – Production Center
Department Manager – Production
Administration
Director & Senior Corporate Officer Director & Senior Corporate Officer Director & Corporate Officer Director & Corporate Officer
Hirofumi Imai Sachio Hayashi Takeo Furuya Noboru Yanagida
Administration Research & Development CSR Division Manager – President of Zeon Medical Inc.
Division Manager – Raw Material Division Manager – Research & Corporate Administration
General Manager – Department of China Development Center President of Zeon F&B Co., Ltd.
Business Administration
Director & Corporate Officer Director Director Director

Hiroshi Fujisawa Haruo Itoh Takao Kitabata Tadanobu Nagumo
Specialty Business Adviser – Fuji Electric Co., Ltd. Chairman of the Board – Sanda Gakuen Chairman & Representative Member
Division Manager – Specialty Chemicals Junior High School & High School of the Board – The Yokohama Rubber
President of TFC Inc. Co., Ltd.
Audit & Supervisory Board

Member External Member
Tadayuki Minami Yuzuru Fujita
Shinichi Hirakawa Adviser of Asahi Mutual Life Insurance Company
Akio Kohri
President – ADEKA Corporation
Nobutake Nishijima
Chairman of Fujitsu Total Insurance Service Ltd.
Corporate Officer
Member External Member
Toshihiro Inoue Makoto Watanabe
Division Manager – Synthetic Latex Plant Manager – Tokuyama Plant
Tomoyuki Kose Kazuyoshi Matsuura
Plant Manager – Mizushima Plant Division Manager – Synthetic Rubber
Tetsuya Toyoshima Takafumi Kawanaka
Director & Corporate Officer – Zeon Chemicals Incorporated Plant Manager – Kawasaki Plant
Makoto Yokota Tsutomu Eguchi
General Manager – Business Innovation Promotion Division Manager – Human Resources, General Manager – Human Resources 1
34
ZEON GROUP
Zeon’s CSR
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 P36

Environment P37
Safety P38
Labor Practices P39
Fair Business Practices P40
Community P41
35 ZEON GROUP
Zeon’s CSR
Visit our
corporate Zeon’s CSR
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 “a

company 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 our
CSR Management Framework.
Zeon CSR Policy (established April 2010)
1. W
e will ensure compliance and meet society’s needs for safety and
security
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 and
acts accordingly
CSR Management Framework
The CSR Management Framework comprises the CSR Conference and seven committees. ●Committee functions
Chaired by the President and held six times a year, the CSR Conference is the chief CSR Basic Policy Committee
Provides guidance and support for CSR
decision-making body on matters relating to CSR. The CSR Conference is held to review Promotional Committee activities. Builds
and finalize committee activities, initiatives, and annual activity plans, and to give necessary systems to support making social contributions.
instruction based on progress reports.
The committees report to the CSR Conference and advance CSR activities in their Compliance Committee
Education and training in legal compliance.
specific areas. The seven committees are the CSR Basic Policy Committee, the Compliance
Oversees four compliance subcommittees.
Committee, the Risk Management Committee, the Public Relations Committee, the Quality
Assurance Committee, the PL Committee, and the Environmental and Safety Affairs Risk Management Committee
Committee. Responsible for systematically preventing
potential risks and handling risks that emerge.
●Zeon’s CSR Management Framework
Public Relations Committee
CSR
Enhances Zeon’s reputation and image
CSR
President CSR Headquarters Coordination Division Promotion Department through communication activities. Discloses
necessary information at appropriate times.
CSR Basic Policy CSR Promotional General Affairs
Committee Committees at Offices Department Quality Assurance Committee
and Group Companies
Activities related to quality assurance. Reviews,
Compliance Antitrust Law Environmental & Safety takes action on, and make improvements to
Committee Regulatory Subcommittee Affairs Department QA problems.
Risk Management Export Security Control Quality Assurance PL Committee
CSR Conference Committee Subcommittee Department
Manages prevention activities, training, and
Public Relations
emergency response related to product
Corporate Governance Legal Affairs
Committee Subcommittee Department liability.
Quality Assurance Department of Environmental and Safety Affairs

Information Security
Committee Corporate Committee
Subcommittee
Communications
Plans and proposes environmental and safety
PL Committee Department of measures and monitors their progress.
Internal Auditing
Environmental & Safety

Affairs Committee
36
ZEON GROUP
Zeon’s CSR
Environment
Visit our
corporate Environment
website for more http://www.zeon.co.jp/csr_e/environment/index.html
information
Environmental Philosophy (established August 2001)
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*1 in 1998, and established our Environmental Philosophy in 2001. We set goals for esponsible Care: A voluntary initiative by businesses
*1 R
that manufacture or handle chemical substances to
the Zeon Group’s environmental initiatives based on the two approaches of reducing achieve continuous improvement in health, safety, and
environmental impacts and developing environmentally friendly products, and each environmental (HSE) performance across the entire life
cycle of such substances—from development and
plant plans and executes specific environmental initiatives. manufacture, 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.
Reducing environmental impacts
The Enterprise Blueprint for 2020 contains the following two goals, which we are working
toward. 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).
Enterprise Blueprint for 2020
1.All plants receive public recognition for their environmental impact reductions
2.Proactively enhance awareness and make further improvements in the areas of the
environment and energy conservation through comprehensive education
Results for FY 2016 are as follows.

• Zero environmental irregularities*2
• Environmental impact reductions
　・Acrylonitrile emissions: 4.1 tons *2 E
nvironmental irregularities: Defined in Zeon Corporation
company rules as the failure to meet environment-related
　・Final landfill disposal (non-consolidated): 1.7 tons rules and regulations and voluntary standards. Also,
　・Final landfill disposal (Zeon Group): 2.9 tons situations in which standards were met but may not
have been if regular measures had been taken. Or when
　・Per-unit energy consumption (FY 1990 baseline): 62% there is no set standard, any instance a complaint is
　・Per-unit CO2 emissions (FY 1990 baseline): 60% received or could have been received if the situation had
been left unattended.
Developing environmentally friendly products
At Zeon, we are continuing to conduct R&D with the objective of developing and
launching environmentally friendly products.
As of fiscal 2016, we have successfully developed fuel-efficient tire components, low-
temperature toners, fluorinated solvents and etching gases with zero ozone depletion
potential, and binders for lithium-ion batteries. (Related➡P7)
In the years ahead, we will engage in R&D that attempts to address environment-
related social issues.
37 ZEON GROUP
Safety
Visit our
corporate Safety
website for more http://www.zeon.co.jp/csr_e/safety.html
information
Safety Philosophy (established March 1997)
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)
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 to
guide our safety activities. Our Responsible Care Policy established in 1998 also clearly
states, “Protecting the environment and ensuring safety are preconditions for all business
activities and are the most important priorities.”
We set safety goals based on the three approaches of eliminating safety irregularities*2, *2 S
afety irregularities: Defined in company rules as the
occurrence of a fire, explosion, leak, damage, failure,
eliminating occupational accidents, and improving safety in logistics, and each plant plans runaway reaction, or similar event. Or, even without an
and executes specific safety initiatives. actual occurrence, the possibility of such an event if
actions had been delayed, and observation of signs
before such an event.
Safety and accident prevention
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
TOPICS Systematic safety education
Improvements and leads initiatives to improve our Safety Management System based
on the belief that ensuring safety is the greatest priority. Senior managers at Zeon visit
Held since FY 2003, this education program aims to
plants on a regular basis to confirm the progress of improvement initiatives and hold prevent the lessons of past accidents from fading from
informational meetings with workers to communicate directly with them. Top management memory, to apply these lessons in work operations, to
raise workers’ awareness of safety, and to increase their
visited plants over 54 days in FY 2016. sensitivity to potential risks.
The plants conduct emergency-response drills each year based on various hypothetical Former plant managers give presentations to all plant
employees. They cover specific examples of accidents at
scenarios. We conduct drills jointly with local fire departments when possible. Zeon and other companies to communicate the grim
consequences of such accidents, and provide instruction
on how to analyze risk factors as well as
countermeasures to prevent recurrences.
Occupational safety
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
2016. We are focusing on communication between worksite supervisors and workers,
safety inspections, and hands-on education in order to achieve a safe and stable
production system.
Safety in logistics Education using accident case studies (Mizushima Plant)
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*3 when transporting such
*3 Yellow Card: Document describing what to do if an
products. We also conduct reporting and communication training for drivers, and each accident occurs during transportation, as established
plant offers training on product handling to prevent accidents in logistics. by the Logistics Safety Management Policy of the
Japan Chemical Industry Association.
The document is called a Yellow Card because it is
printed on yellow paper.
38
ZEON GROUP
Zeon’s CSR
Labor Practices
Visit our
corporate Labor Practices
website for more http://www.zeon.co.jp/csr_e/employee/index.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 other
attribute.
Based on this policy, we aim to enable every employee* to work with pride by
cultivating employees to continually evolve by pursuing high goals based on independent *At Zeon, “employees” refers to all workers including
thinking, building a human resource system in which employees take on challenges full-time and part-time workers.
without fear of failure and gain a sense of accomplishment, and creating a comfortable
working environment that values dialogue. ●Zeon Corporation employment information
(non-consolidated, does not include non-permanent employees)
(No.)
Men Women Total
Zeon – A company of which each and Employees 1,407 183 1,590

every one of its employees can be proud
No. of new hires
New graduate 28 11 39
Encourage employees Human resource system
to continually evolve by in which employees take A comfortable working Mid-year 2 3 5
pursuing high goals on challenges without fear environment that
based on independent of failure and gain a sense values dialogue
thinking of accomplishment Percentage of employees
2.20％
with disabilities
Promoting diversity
Re-employment of
employees who have
reached mandatory （82.7％）
67
Respect for human rights, prohibition of discrimination
retirement age
Includes 12 non-Japanese employees (6 men and 6 women)
New graduate: Employees that joined the company in April
2017
Mid-year: Employees that joined the company from April 2016
Employment conditions to March 2017
As of March 31, 2017, Zeon Corporation employed 1,590 people on a non-

consolidated basis, and Zeon Group employed 3,090 people on a consolidated basis.
The non-consolidated workforce includes 2.20% employees with disabilities, meeting the
employment rate requirement. We have also adopted a re-employment system shared
across Zeon Group in which employees reaching mandatory retirement age are given
opportunities to continue working by passing on their skills and training successors. As a
term of respect, we refer to these re-employed employees as “(Zeon) master employees.”
In FY 2016, 67 people became master employees.
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.
HR development
Zeon’s concept of “being the worker I want to be” embodies “persons to continually ●HR development at Zeon
evolve by pursuing high goals based on independent thinking.” Personnels are encouraged
Performance-
to set goals to become the worker they want to be, and we are modifying our education based reward The worker
and training systems to allow them to bridge the gap between the current reality and their I want to be
The worker I want to be (higher goals)
goals 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 Evaluation Education &
training Education &
goals. With every personnel continuing to improve and demonstrating this in actions, we training
Actions &
can create an even more capable workforce across Zeon. results
39 ZEON GROUP
Fair Operating Practices
Visit our
corporate Fair Operating Practices
website for more http://www.zeon.co.jp/csr_e/suppliers.html
information
Ensuring compliance is established as the first priority of the Zeon CSR Policy, and we
will 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.
Fair competition
The Compliance Committee advances Zeon’s compliance efforts. The Compliance ●Compliance system
Committee has four subcommittees, namely the Antitrust Law Regulatory Subcommittee,
the Export Security Control Subcommittee, the Corporate Governance Subcommittee, Compliance Committee
and the Information Security Subcommittee. Prevention of law violations
In FY 2016, the Compliance Committee engaged in the following activities. Education and training in compliance
with laws
・Educated staff on global assignments on compliance with antitrust regulations and
preventing bribery Antitrust Law
Regulatory Subcommittee
・Conducted workshops on legal compliance at plants and subsidiaries (in and outside Prevention of violations of
of Japan) the Antitrust Law
・Checked the level of compliance understanding through e-learning Export Security
Control Subcommittee
●Internal audits Proper security export control
Internal audits are performed for the purpose of preventing improprieties and errors in
Corporate Governance
business operations. Subcommittee
The Department of Internal Auditing inspects and assesses whether business operations
Reliability in financial reporting
in all departments are being carried out appropriately and effectively in accordance with
laws and internal regulations, and demands improvements when there are incidents of Information Security
violations or non-compliance. In addition, the Department of Internal Auditing carries out Subcommittee
periodic follow-up audits on the progress of measures taken by each department. Management of corporate
confidentiality
In FY 2016, internal audits were conducted for 34 departments (15 Zeon Corporation and information security
departments, 10 Zeon Group companies inside Japan, 9 Zeon Group companies outside
Japan).
Social responsibility in the value chain
In order to provide safe products to customers, we procure raw materials based on the
Zeon CSR Policy and the CSR Code of Conduct. We have been developing our system of
CSR procurement since FY 2012. We have established the CSR Procurement Guidelines *QCD: System of production management that controls
and improves quality, cost, and delivery.
and Requests to Suppliers, which integrate CSR perspectives into our existing QCD*.
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.
40
ZEON GROUP
Zeon’s CSR
Community
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.html
We believe that contributing to the development of local communities and building strong relationships of trust are crucial to
conducting stable business activities and creating improved products and services.
Zeon’s approach to social contributions
We believe that social contributions are essentially carried ●Social contributions at Zeon
out through our core businesses. As companies are members
of 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 outside CSR Core Projects
of our core businesses to engage with society from a broader
perspective.
In 2012, we launched CSR Core Projects, which are initiatives Great East Japan
we selected from proposals submitted by Zeon Group companies. Earthquake reconstruction
CSR Core Projects are activities that focus on social contributions
outside the scope of our core businesses and provide employees
with opportunities to turn their attention to social issues. Independent
Shared projects
The Head Office plans various activities related to supporting projects
reconstruction from the Great East Japan Earthquake, as well as
shared projects that are conducted across multiple plants and
subsidiaries. Furthermore, plants and subsidiaries also conduct
their own independent projects. We are developing activities in
these three broad categories with a focus on their synergistic
benefits.
FY 2016 initiatives
❶ Activities with the local community/ ❷ Activities with the local community/
Zeon Chemicals L.P. Zeon Chemicals (Thailand) Co., Ltd.
Zeon Chemicals L.P. (ZCLP) in U.S.A. has conducted volunteer activities Zeon Chemicals (Thailand) Co., Ltd. conducts communication activities
and donation drives for many years. with the local community, participates in local events, and makes charity
donations.
ZCLP employees collect donations at in-house events to donate to the Make-A- Communication activities with the local community
Wish Foundation of Ohio, Kentucky and Indiana
41 ZEON GROUP
❸ Activities with the local community/ ❹ Holding community events
Zeon Advanced Polymix Co., Ltd.
Thailand-based Zeon Advanced Polymix Co., Ltd. has made charity Zeon places great importance on connections with local communities.
donations to neighboring institutions and supported the health Zeon’s plants and Group companies hold various events including
management of nearby residents for many years. summer festivals and welcome opportunities to participate in community
events.
Donations to local temples (contributions are also made to nearby schools, Tokuyama Plant sponsors the Zeon Waraku Odori Dance Festival held every
hospitals, and educational institutions) summer. First held in 1974, more than 2,000 community residents participate in
the festival each year
❺ Cleanup campaigns ❻ Educational support

With the goal of conducting activities that are beneficial and will please Zeon’s plants and Group companies offer assistance to educational
local communities, Zeon’s plant and Group companies conduct institutions with internships for high school, vocational high school, and
community cleanup campaigns around their sites and beyond. university students, by welcoming plant tours for school groups, and by
sending special instructors to give lessons at schools.
Community cleanup activities around Tokuyama Plant Receiving interns and product inspection experience at the Optes Sano Plant
❼ Chemistry classrooms ❽ Donations of books to disaster-affected

areas
Based on the motto of “nurturing future Nobel Prize winners in Zeon supports a tree-planting campaign organized by Yokohama Rubber
chemistry,” we are holding chemistry experiment classrooms in various Co., Ltd. by serving as the event’s operations staff at Otsuchi Gakuen
areas to communicate the appeal of chemistry to children. school in Otsuchi Town, Iwate Prefecture. We also donate science and
technology books to the school library at Otsuchi Gakuen.
RIMTEC has participated in Omoshiro Taiken (fun experience) Day, an event held at
Okayama Research Park, with a hands-on experiment to make plastic together
with Okayama University since FY 2012. RIMTEC also received the 2016 Chemistry
Communication Award
Donating books to Vice Principal Ito (left) of Otsuchi Gakuen
42
ZEON GROUP
Cover photo:
Zeon Corporation’s Mizushima Plant
Established in 1969. Mizushima Plant
has facilities for extracting butadiene
monomer from C4 fractions* and
facilities for extracting isoprene
monomer from C5 fractions*, and
produces various related products
using C5 fractions.
*C4 and C5 fractions: Hydrocarbon molecules
containing four carbon atoms and five carbon
atoms, respectively, created as byproducts of
naphtha thermal cracking.
Main products
Isoprene rubbers, thermoplastic
elastomers, petroleum resins, synthetic
aromas, specialty plastics, isoprene
monomer, butadiene monomer
Zeon, Zetpol, Nipol, Quintone, Quintac, ZEONEX and

ZEONOR are registered trademarks of Zeon Corporation,
in the United States and other countries.
ZeonorFilm, ZEOGLOBULE and STEC are trademarks of
Zeon Corporation.
Zeon Corporation Printed on paper made with wood

CSR Promotion Department from forest thinning. "Morino Chonai-
Shin Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan Kai"(Forest Neighborhood Association)
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604 http://www.zeon.co.jp/index_e.html supporting sound forest management.

Corporate Report 2017

Uploaded by

Copyright:

Available Formats

Corporate Report 2017

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Corporate Report 2017

Uploaded by

Copyright:

Available Formats

CORPORATE REPORT 2017

19 Zeon’s Business and Strategy Company Information CSR Activities IR Information

Research and Development (R&D) 31

Fair Operating Practices 40 interviews with employees

Community 41 broadcast regionally in

Reporting period Reporting scope

Zeon is contributing to the preservation of the

S-SBR in tire helps

are called fuel-efficient tires. Zeon’s

Fuel-efficient tires typically weigh between 7 and 8

Source: Tire Fair Trade Council (Japan) website (Japanese only)

●Tires are made from many materials

Zeon supplies S-SBR as one of the raw material rubber

S-SBR is shipped in 35-kg blocks. Tire Tire manufacturers

Materials supplied from materials manufacturers

What is rolling resistance? ●Three types of rolling resistance affecting tires

❶ Wet grip performance ❷ Low rolling resistance

Reducing vehicle CO2 emissions with fuel-efficient tires

Zeon’s energy materials

Growing lithium-ion rechargeable

●Growth in Battery Market of the Automotive and

Automotive applications Mobile applications ■Japan ■Europe ■North America ■China and Asia

50,000 1,000 0.72 million units

Source: B3 Report, November 15–16 Source: Zeon estimates based on B3 Report

Charge: 4.2V,1C Conventional product

❷Improving electrolyte impregnation

●Preventing thermal contraction of the separator

Zeon’s binders Thermal contraction test (150℃ for 1 hour)

Short With binder Without binder

Zeon material and products

Synthetic aroma chemicals:

Catheters for removal of

Name: Zeon Corporation

Business segments: Elastomer Business, Specialty Materials 250,763

Offices: Osaka Office, Nagoya Office 0

Treasury stock (JPY)

(JPY) (100 million JPY)

(crude oil equivalent, kL /million JPY) (1,000 tons)

Timeline of main businesses

Polyvinyl chloride resins

Medical Ventricular assist device

Specialty Synthetic Rubbers

Toner Polymerized toner

Synthetic Rubbers for Tires

Isoprene rubber SIS thermoplastic elastomer

Enhanced low-temperature PSC

Heat-resistant H-NBR (Zetpol®)

Polymerized color toner Low-temperature fixing toner

Light-color petroleum resin

Cyclopentanone Cyclopentyl methyl ether (CPME)

Cyclo-olefin polymers Cyclo-olefin polymers

GPB process: Proprietary Zeon technology to extract

GPI process: Proprietary Zeon technology to extract highly

Automobile Elastomer Business

Social value created from C4 and C5

Adhesives Traffic paints

Housing equipment Large-size

high added value that have a

Single-walled carbon nanotubes, Other Businesses

　Research and Development (R&D) 31

　Fair Operating Practices 40 interviews with employees

　Community 41 broadcast regionally in

Automotive applications Mobile applications ■Japan　■Europe　■North America　■China and Asia　

GPB process: Proprietary Zeon technology to extract

GPI process: Proprietary Zeon technology to extract highly