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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.

July 27, 2016
Consolidated Financial Report for theFirst Quarter of the Year Ending March 31, 2017
Name of Listed Company ZEON CORPORATION
Ticker Code 4205
(URL http://www.zeon.co.jp)
Representative
President
Contact
Director and Corporate Officer
Scheduled Date of theSubmission of theQuarterly Report

Listed Stock
Exchanges
NameNameTEL
Scheduled Date ofDividend Payments

August 8, 2016

Tokyo Stock Exchange
Kimiaki Tanaka
Takeo Furuya+81-3-3216-2747—

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, 2017
(April 1, 2016 to June 30, 2016)(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, 2016
1Q period ended
June 30, 2015

Operating income
Millions of yen

Ordinary income%Millions of yen

Millions of yen%

69,998(7.8)

7,054 (10.1)

5,771 (32.4)

3,861 (31.1)

75,953

1.5

7,849

8,532

5,607

26.5%

Net income
attributable toowners of parent
Millions of yen

40.5%

43.2

Note: Comprehensive income (loss):
1Q of the year ending March 31, 2017: (6,878 million yen) (—%);
1Q of the year ended March 31, 2016: 5,326 million yen (122.2%)

Net income per share

Fully diluted net income
per share

YenYen1Q period ended
June 30, 2016
1Q period ended
June 30, 2015

17.40

17.3824.73

24.68(2) Consolidated financial position

1Q period ended
June 30, 2016
Year ended March31, 2016

Total assets

Net assets

Millions of yen

Millions of yen

363,995

207,57655.7

384,753

215,58654.8

Reference: Equity:
As of June 30, 2016: 202,607 million yen

As of March 31, 2016: 210,780 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, 2016
Year ending March 31, 2017
Year ending March 31, 2017 (Forecast)

Cash dividend per share
3Q endYear-end

1Q end2Q end

Yen

Yen

Yen

Yen

Full year
Yen

——

7.00

—

8.00

15.00

8.00

—

8.00

16.00

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

3. Projected Consolidated Performance for the Year Ending March 31, 2017
(From April 1, 2016 to March 31, 2017)(Percentage figures respectively indicate changes from the previous year.)

Operatingincome

Net sales
Millionsof yenInterim period ending
135,000
September 30, 2016
Year ending March 31,280,000
2017 (Full year)

Ordinary income

Net income
attributable toowners of parent

Net income
per share%

Millionsof yen%Millionsof yen%Millionsof yen%

Yen(11.4)

13,500(18.3)

13,500(21.3)

9,000(17.8)

40.56

(5.3)

28,000(6.2)

28,000(12.9)

19,0005.1

85.63

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, 2016: 237,075,556 shares
As of March 31, 2016: 237,075,556 shares(ii) Number of treasury stock outstanding
As of June 30, 2016: 15,180,064 shares
As of March 31, 2016: 15,179,841 shares(iii) Average number of shares during the period
1Q ended June 30, 2016: 221,895,594 shares
1Q ended June 30, 2015: 226,788,775 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.
-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, theJapanese-language original shall take precedence.

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous fiscal year
(As of March 31, 2016)(Assets)
Current assets
Cash and bank deposits
Notes and accounts receivable—trade
Electronically recorded monetary claims
Merchandise and products
Work in process
Raw materials and supplies
Accounts receivable—other
Deferred 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
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, 2016

7,963
64,7081,308
47,462
3,732
12,53426,601
4,607
4,070(79)
172,907

8,739
61,501
1,816
42,961
4,075
11,48020,836
4,505
6,346
(78)
162,181

43,79347,28918,27623,293
5,875
138,526

44,03749,224
18,195
23,134
5,729
140,318

4,187
4,187

3,813
3,813

60,821
320
8,295
(302)
69,133211,846
384,753

49,658
312
8,011
(299)
57,683201,814363,995

[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, 2016)(Liabilities)
Current liabilities
Notes and accounts payable—trade
Electronically recorded obligations
Short-term loans payable
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
Non-controlling interests
Total net assets
Total liabilities and net assets-4-

As of June 30, 2016

51,852
1,754
25,755
4,633
1,586
6,285
22,563
114,427

47,622
2,115
25,519
2,001
198
5,725
23,694
106,875

20,0009,309
6,463
13,383386
5,199
54,740169,167

20,0008,138
2,976
13,084412
4,934
49,543
156,419

24,211
18,387
159,255(12,345)
189,508

24,211
18,387
161,852(12,345)
192,105

17,713

10,165(3)
6,461(2,898)21,272
255
4,551
215,586
384,753(4)
3,081(2,739)10,503262
4,706
207,576
363,995

[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
Non-operating income
Interest income
Dividend income
Foreign exchange gain
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange loss
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Compensation income
Other
Total extraordinary gains
Extraordinary losses
Loss on disposal of fixed 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 three months
ended June 30, 2015
75,95354,07021,883
14,033
7,849

For the three months
ended June 30, 2016
69,99849,19120,807
13,752
7,054

29
546
376
149
1,099

29
424
—
136
589

147
—
269
416
8,532

1451,583
145
1,872
5,771

138
1139357
3360

32
0
32
8,639
2,877
5,762

144
13
157
5,974
1,954
4,020

154

158

5,607

3,861

[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, 2015 to June 30, 2015)

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

Elastomer

Specialty
Materials

Sub Total

46,37017,645439
46,809
5,652

Other

Total

64,015

11,93875,953—75,953

—

439

103

542

(542)

—

17,645
1,904

64,454
7,556

12,041
539

76,495
8,096

(542)
(246)

75,953
7,849

Current 1st quarter cumulative period (From April 1, 2016 to June 30, 2016)

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

41,202

17,422425
41,6274,552(Millions of yen)
Eliminations
Consolidated/Corporate

OtherTotal

58,624

11,37469,998—69,998

—

425

94

519

(519)

—

17,422
2,460

59,0497,012

11,468600

70,517
7,613

(519)
(559)

69,9987,054-6-