Zeon (4205) investor relations material

Executive summary

• FY2025 consolidated net sales were ¥411,966 million, down 2.1% year-over-year, while net income rose 38.3% to ¥36,226 million, driven by higher shipments in specialty materials, cost reductions, and a change to straight-line depreciation.

• Operating income increased 24.1% year-over-year to ¥36,377 million, with specialty materials showing strong growth and elastomers benefiting from fixed cost reductions.

• Comprehensive income surged 66.3% year-over-year to ¥43,476 million.

• Shareholder returns included a dividend of ¥76 per share and a completed treasury stock buyback of 10 million shares (¥10 billion).

• Cash flows from operating activities increased significantly to ¥76,436 million.

Financial highlights

• Net sales: ¥411,966 million (YoY -2.1%), operating income: ¥36,377 million (YoY +24.1%), ordinary income: ¥40,000 million (YoY +21%), net income: ¥36,226 million (YoY +38.3%).

• Operating profit margin improved to 8.8% from 7.0% year-over-year.

• Basic earnings per share rose to ¥186.67 from ¥127.43 year-over-year.

• ROE reached 9.9% for FY2025.

• Extraordinary profit included a gain on sale of investment securities: ¥17,310 million.

Outlook and guidance

• FY2026 forecast: net sales ¥405,000 million (YoY -1.7%), operating income ¥38,000 million (YoY +4.5%), net income ¥36,000 million (YoY -0.6%).

• Dividend forecast for FY2026 is ¥79 per share, marking 17 consecutive years of dividend increases.

• Planned treasury stock buyback of ¥10 billion for FY2026.

• Assumptions: US$=¥150, €=¥175, naphtha/kl=¥63,000, Asian butadiene/mt=US$950.