[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, the Japaneselanguage original shall take precedence.

October 31, 2019
Consolidated Financial Report for theSecond Quarter of the Year Ending March 31, 2020
Name of Listed Company ZEON CORPORATION
Ticker Code 4205
(URL http://www.zeon.co.jp)
Listed Stock Exchanges:
Representative:
President
Name
Kimiaki Tanaka
Contact:
Director and Corporate Officer
Name
Kazuyoshi Matsuura
Scheduled Date of the Submission of the Quarterly Report: November 12, 2019
Scheduled Date of Dividend Payments: December 6, 2019

Tokyo Stock Exchange
TEL: +81-3-3216-2747

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

1. Consolidated Performance for 2nd quarter of the year ending March 31, 2020
(April 1, 2019 to September 30, 2019)(1) Consolidated operating results (Cumulative)(Percentage figures respectively indicate year-over-year changes from the same period of the previous fiscal year.)Net sales

2Q period ended
September 30, 2019
2Q period ended
September 30, 2018

Operating income
Millions of yen

Ordinary income%

Millions of yen

Millions of yen%

163,358(3.4)

15,020 (16.5)

16,045 (20.9)

11,550 (20.6)

169,031

1.4

17,97920,273

14,549(9.7)%

Net income
attributable toowners of parent
Millions of yen(6.4)%

1.5

Note: Comprehensive income (loss):2Q of the year ending March 31, 2020: 10,074 million yen (down 31.0%);
2Q of the year ended March 31, 2019: 14,597 million yen (down 23.9%)

Net income per share

Fully diluted net income
per share

YenYen2Q period endedSeptember 30, 2019
2Q period ended
September 30, 2018

52.85

52.78

65.98

65.89

(2) Consolidated financial position

2Q period ended
September 30, 2019Year ended March31, 2019

Total assets

Net assets

Millions of yen

Millions of yen

411,083

267,101

64.2

424,937

259,156

60.3

Reference: Equity:
As of September 30, 2019: 264,004 million yen

Equity ratio%

As of March 31, 2019: 256,167 million yen

2. Cash Dividends
Record dateYear ended March 31, 2019Year ending March 31, 2020
Year ending March 31, 2020 (Forecast)

Cash dividend per share
3Q endYear-end

1Q end2Q endYenYenYen

YenYen——

9.00
11.00

—

10.00

19.00

—

10.00

21.00

Note: Revisions to the most recently disclosed dividend forecasts: No-1-

Full year

[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, the Japaneselanguage original shall take precedence.

3. Projected Consolidated Performance for the Year Ending March 31, 2020
(From April 1, 2019 to March 31, 2020)(Percentage figures respectively indicate changes from the previous year.)

OperatingincomeNet sales

Ordinary income

Net income
attributable toowners of parent

Net income
per share

Millionsof yen%Millionsof yen%Millionsof yen%

Millionsof yen%

Yen

Year ending March 31,330,000
2020 (Full year)(2.2)

30,000(9.5)

32,000(11.9)

22,00019.2

100.69Note: Revisions to the most recently disclosed dividend forecasts: No

4. Other Matters(1) Material changes in subsidiaries during the three-month period (changes in scope of consolidations resulting
from change in subsidiaries): No(2) Application of special accounting methods for the preparation of quarterly consolidated financial statements:
Yes(3) Changes in accounting policies, procedures and presentation on preparation of consolidated financialstatements(i) Changes in policy due to amendment in accounting standards: No(ii) Changes in policy other than above (i): No(iii) Changes in accounting estimates: No(iv) Restatements: No(4) Number of shares outstanding (Common stock)(i) Number of shares outstanding at the end of the period (Including treasury stock)
As of September 30, 2019: 237,075,556 shares
As of March 31, 2019: 237,075,556 shares(ii) Number of treasury stock outstanding
As of September 30, 2019: 18,515,299 shares
As of March 31, 2019: 18,577,060 shares(iii) Average number of shares during the period
2Q ended September 30, 2019: 218,524,921 shares
2Q ended September 30, 2018: 220,511,496 sharesThis quarterly financial report is not subject to the quarterly review required under the Financial
Instruments and Exchange Act.
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.

-2-

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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, the Japaneselanguage original shall take precedence.

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

(Assets)
Current assets
Cash and bank deposits
Notes and accounts receivable—trade
Electronically recorded monetary claims
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable—other
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery, 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
Deferred tax assets
Other investments and assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-3-

Previous fiscal year
(As of March 31, 2019)

As of September 30,
201937,53474,823
3,529
52,494
3,832
14,79935,6754,631(80)
227,238

35,19370,487
2,658
50,102
2,919
14,747
23,798
8,765(90)
208,580

39,35433,334
18,255
8,323
3,057
102,323

39,34731,50918,25315,0004,271
108,380

3,1973,197

3,057
3,057

81,103801
10,505(229)
92,179197,700
424,937

81,312779
9,221(245)
91,066
202,503
411,083

[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, the Japaneselanguage original shall take precedence.
(Millions of yen)

(Liabilities)
Current liabilities
Notes and accounts payable—trade
Electronically recorded monetary claims
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision for repairs
Other provision
Other current liabilities
Total current liabilities
Long-term liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Provision for repairs
Other provision
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
Valuation difference on available-for-sale securities
Deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-4-

Previous fiscal year
(As of March 31, 2019)

As of September 30,
201978,862
3,552
12,125
6,894
2,216
4,013
46
22,331130,039

59,256
2,722
12,125
3,643
1,602
2,864
38
25,467
107,716

10,0002,000
5,107
12,373
648
122
5,491
35,742
165,781

10,0002,000
4,851
12,396
372
124
6,522
36,266
143,982

24,211
19,240204,767(17,238)
230,981

24,211
19,252
214,132(17,181)240,415

24,117(0)2,629(1,560)25,187
296
2,693
259,156
424,937

23,280(0)
1,788(1,479)23,589283
2,815
267,101
411,083

[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, the Japaneselanguage 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
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodMiscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Total extraordinary gains
Extraordinary losses
Loss on disposal of non-current assets
OtherTotal extraordinary losses
Income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent-5-

For the six months
ended September 30,
2018
169,031
119,745
49,28631,307
17,979For the six months
ended September 30,
2019
163,358
115,99747,361
32,341
15,020

69
1,276
847
124

89
1,639
—
91

348
2,664

212
2,031

112
—
259
371
20,273

70
691
245
1,006
16,045

7
7

2
2

232
20
252
20,027
5,280
14,747218
25
244
15,803
4,151
11,652

197

102

14,54911,550[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, the Japaneselanguage original shall take precedence.

(3) Statement of Comprehensive Income(Millions of yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parentNon-controlling interests

For the six months
ended September 30,
2018
14,747For the six months
ended September 30,
201911,652

1,282
4(1,453)
88(70)(838)
0(880)
8158(150)
14,597(1,578)
10,074

14,505
92

9,953
122

(4) Segment Information
Previous 2nd quarter cumulative period (From April 1, 2018 to September 30, 2018)

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

Elastomer

Specialty
Materials

Sub Total

99,21742,411

1,007
100,224
9,545

OtherTotal

141,628

27,402

169,031—

169,031

—

1,007

162

1,169

(1,169)—42,411
8,745

142,635
18,291

27,5651,265

170,200
19,556(1,169)(1,577)

169,031
17,979Current 2nd quarter cumulative period (From April 1, 2019 to September 30, 2019)

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

90,96845,471

951
91,9205,967(Millions of yen)
Eliminations
Consolidated/Corporate

Other

Total

136,440

26,918163,358—

163,358

—

95197

1,048

(1,048)—45,471
9,189

137,391
15,15627,015
1,170

164,406
16,326(1,048)(1,305)

163,358
15,020-6-