[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, theJapanese-language original shall take precedence.

August 6, 2014
Consolidated Financial Report for theFirst Quarter of the Year Ending March 31, 2015
Name of Listed Company ZEON CORPORATION
Ticker Code 4205
(URL http://www.zeon.co.jp)
Representative
President
Contact
Managing Director and Corporate Officer
Scheduled Date of theSubmission of theQuarterly Report

Listed Stock
Exchanges
NameNameTEL
Scheduled Date ofDividend Payments

August 7, 2014

Tokyo Stock Exchange
Kimiaki Tanaka
Tadayuki Minami+81-3-3216-1412—

Note: All amounts less than one million yen in the tables are rounded off.

1. Consolidated Performance for 1st quarter of the year ending March 31, 2015
(April 1, 2014 to June 30, 2014)(1) Consolidated operating results (Cumulative)(Percentage figures respectively indicate year-over-year changes from the same period of the previous fiscal year.)Net sales
1Q period ended
June 30, 2014
1Q period ended
June 30, 2013

Operating income
Millions of yen

Ordinary income%Millions of yen%

74,815

3.3

6,206 (28.5)

6,071 (39.3)

3,916 (36.7)

72,437

11.1

8,680

9,999

6,190 109.9

31.7

%

Net income

Millions of yen

Millions of yen

74.3

%

Note: Comprehensive income:1Q of the year ending March 31, 2015: 2,397 million yen (-70.4%);
1Q of the year ended March 31, 2014: 8,102 million yen (105.8%)

Net income per share

Fully diluted net income
per share

Yen

Yen

1Q period ended
June 30, 2014
1Q period ended
June 30, 2013

17.27

17.24

26.78

26.73

(2) Consolidated financial position1Q period ended
June 30, 2014
Year ended March31, 2014

Total assets

Net assets

Millions of yen

Millions of yen

376,022

182,05547.4

370,872

181,41447.9

Reference: Equity:
As of June 30, 2014: 178,228 million yen

As of March 31, 2014: 177,604 million yen-1-Equity ratio%

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, theJapanese-language original shall take precedence.

2. Cash Dividends
Record dateYear ended March 31, 2014
Year ending March 31, 2015
Year ending March 31, 2015 (Forecast)

Cash dividend per share
3Q endYear-end

1Q end2Q endYenYenYen

Yen

Full year
Yen——

7.00

—

6.00

13.00

7.00

—

7.00

14.00

Note: Revisions to the most recently disclosed dividend forecasts: No

3. Projected Consolidated Performance for the Year Ending March 31, 2015
(From April 1, 2014 to March 31, 2015)(Percentage figures respectively indicate changes from the previous year.)

OperatingincomeNet sales
Millionsof yen

Interim period ending
150,000
September 30, 2014
Year ending March 31,310,000
2015 (Full year)

Ordinary income

Net income
per share

Net income%Millionsof yen%

Millionsof yen%

Millionsof yen%

Yen

1.1

11,000(34.3)

11,000(39.4)

8,000(26.0)

35.27

4.6

25,000(16.4)

25,000(23.2)

17,000(13.5)

74.96

Note: Revisions to the most recently disclosed dividend forecasts: No

4. Other Matters(1) Significant changes of specified subsidiaries during the three-month period under review (Changes ofSpecified Subsidiaries Accompanied by Change in Scope of Consolidation): No(2) Application of special accounting methods for the preparation of quarterly consolidated financial statements:
Yes(3) Changes in accounting principle, procedures and presentation on preparation of consolidated financialstatements(i) Changes due to amendment in accounting standards: Yes(ii) Changes except above (i): No(iii) Changes in accounting estimates: No(iv) Restatement of revisions: No(4) Number of shares outstanding (Common stock)(i) Number of shares outstanding at the end of the period (Including treasury stock)
As of June 30, 2014: 242,075,556 shares
As of March 31, 2014: 242,075,556 shares(ii) Number of treasury stock outstanding
As of June 30, 2014: 15,284,803 shares
As of March 31, 2014: 15,283,615 shares(iii) Average number of shares during the period
1Q ended June 30, 2014: 226,791,121 shares
1Q ended June 30, 2013: 231,162,163 shares
Note regarding indication of status of implementation of the quarterly review procedure
This quarterly financial report is not subject to the quarterly review required under the Financial Instruments
and Exchange Act. The review of quarterly consolidated financial statements based on the Financial
Instruments and Exchange Act had not been completed as of the date of disclosure of this quarterly financial
report.
Note concerning appropriate use of performance forecasts, etc.
The projected performance figures in this report are based on information available to ZEON’s management at
the time this report was prepared and are not intended to be interpreted as goals the company will achieve.
Accordingly, users should be aware that actual results may differ materially from any expressed future
performance herein due to various factors.

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ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, theJapanese-language original shall take precedence.

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous fiscal year
(As of March 31, 2014)(Assets)
Current assets
Cash and bank deposits
Notes and accounts receivable—trade
Merchandise and products
Work in process
Raw materials and supplies
Accounts receivable—otherDeferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net
LandConstruction in progress
Other property, plant and equipment, net
Total property, plant and equipment
Intangible assets
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit assets
Deferred tax assets
Other investments and assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-3-

As of June 30, 2014

9,105
71,06044,6594,099
12,20130,303
3,721
3,294
(45)
178,396

10,21373,04745,9104,548
12,64531,833
3,628
4,207
(40)
185,989

38,95345,31918,192
14,1096,148
122,721

39,22048,59018,163
9,613
6,009
121,596

5,943
5,943

5,817
5,817

56,030293
536
7,247(295)
63,812
192,476
370,872

55,102
307
499
6,995
(284)
62,620190,032
376,022

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, theJapanese-language original shall take precedence.
(Millions of yen)Previous fiscal year
(As of March 31, 2014)(Liabilities)
Current liabilities
Notes and accounts payable—trade
Short-term loans payable
Commercial paper
Income taxes payable
Reserve for bonuses
Other reserves
Other current liabilities
Total current liabilities
Long-term liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Allowance for employees’ retirement benefits
Other reserves
Other long-term liabilities
Total long-term liabilities
Total Liabilities(Net Assets)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized holding gain on
available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets-4-

As of June 30, 2014

64,76930,302
5,000
8,929
1,813
2,632
20,223
133,668

70,77931,921
11,0002,1662202,490
19,756
138,331

10,00020,2638,290
12,368507
4,361
55,789189,457

10,00019,966
7,927
12,689753
4,300
55,636
193,966

24,211
18,514132,476(12,734)
162,467

24,211
18,514
134,710(12,735)
164,699

15,081

14,413(1)
2,261(2,205)
15,136
266
3,545
181,414370,872(0)
1,250(2,134)
13,529280
3,547
182,055
376,022

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, theJapanese-language original shall take precedence.

(2) Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Nonoperating income
Interest income
Dividend income
Foreign exchange gain
Other nonoperating income
Total nonoperating income
Nonoperating expenses
Interest expense
Foreign exchange loss
Depreciation from idle assets
Other nonoperating expenses
Total nonoperating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
OtherTotal extraordinary gainsExtraordinary losses
Loss on disposal of fixed assets
OtherTotal extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests in net income ofconsolidated subsidiaries
Minority interests in net income of consolidated subsidiaries
Net income-5-

For the three months
ended June 30, 2013
72,43751,18921,24812,5688,680

For the three months
ended June 30, 2014
74,81555,36919,446
13,241
6,206

22
292
1,255
194
1,762

31
397
—
279
708

192
—
161
90
444
9,999

206
400
169
68
842
6,071

01313833
59891

36
843
9,969
3,665
6,303

547
4551
6,412
2,399
4,013

114

96

6,190

3,916

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, theJapanese-language original shall take precedence.

(3) Segment Information
Previous 1st quarter cumulative period (From April 1, 2013 to June 30, 2013)

Net sales(1) Sales to third parties(2) Intersegment sales andtransfers
Total
Segment income

Elastomer

Specialty
MaterialsSub Total

44,90815,482640
45,548
5,859

OtherTotal

60,38912,04772,437—72,437—640

67707(707)—

15,482
2,496

61,0298,355

12,115
320

73,144
8,675(707)672,437
8,680

Current 1st quarter cumulative period (From April 1, 2014 to June 30, 2014)

Net sales(1) Sales to third parties(2) Intersegment sales andtransfers
Total
Segment income and loss

(Millions of yen)
Eliminations
Consolidated/Corporate

Elastomer

Specialty
Materials

Sub Total

45,674

16,651

476
46,1504,190(Millions of yen)
Eliminations
Consolidated/CorporateOtherTotal

62,325

12,48974,815—74,815

—

476

145

621(621)—

16,651
1,616

62,802
5,806

12,634389

75,436
6,195(621)
1174,815
6,206

Changes Related to the Reporting Segment
The Company adopted the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17,2012) and the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17,2012) with regard to provisions set forth in the text of paragraph 35 of the Accounting Standard for Retirement
Benefits and paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits from theconsolidated cumulative first quarter under review, and has revised the calculation methods for retirement benefit
obligations and service costs. Accordingly, the Company changed the method for attributing expected benefit toperiods from one calculated on a straight-line basis to a method based on the benefit formula, and the method for
determining the discount rate from one based on the average period up to the estimated timing of benefit
payment to a method using a single weighted average discount rate reflecting the estimated timing and theamount of benefit payment.
These changes had no material impact in terms of the monetary value of segment information reported for theconsolidated cumulative first quarter.

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