[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.

April 28, 2017
Consolidated Financial Flash Report for theYear Ended March 31, 2017
Name of Listed Company
Ticker Code 4205
Representative
Contact

ZEON CORPORATION(URL http://www.zeon.co.jp)
President
Director and Corporate Officer

Listed Stock Exchanges Tokyo Stock Exchange
Name
Kimiaki Tanaka
Name
Takeo Furuya
TEL+81-3-3216-2747
Scheduled Date of
From June 30, 2017
Dividend Payments

Scheduled Date of the General June 29, 2017
Shareholders Meeting
Scheduled Date of theJune 29, 2017
Submission of the Securities
ReportNote: Figures are rounded down to the nearest million yen.

1. Consolidated Performance for the Year Ended March 31, 2017 (From April 1, 2016 to March 31, 2017)(1) Consolidated operating results(Percentage figures respectively indicate year-over-year changes from the same period of the previous fiscal year.)

Operating income

Ordinary income

Net income
attributable toowners of parent%

Millions of yen%

Millions of yen%

Millions of yen%

287,624 (2.7)

30,7673.1

31,805 (1.1)

23,152

28.1

295,647 (3.9)

29,856

5.7

32,15318,079 (5.2)

Fully diluted net
income per share

Return on
equityOrdinary
income tototal assets

Operatingincome tosales

Net sales
Millions of yen

Year ended March
31, 2017
Year ended March
31, 2016
Notes:

3.4

Comprehensive income:Year ended March 31, 2017: 32,148 million yen (366.1%);
Year ended March 31, 2016: 6,897 million yen (−81.6%)

Net income per
share
Year ended March
31, 2017
Year ended March
31, 2016

Yen

Yen

%

%

%

104.31104.17

10.3

8.0

10.7

79.86

79.74

8.6

8.2

10.1

Reference: Share of (profit) loss of entities accounted for using equity method:Year ended March 31, 2017: - million yen
Year ended March 31, 2016: - million yen(2) Consolidated financial position
Total assets
As of March 31,
2017
As of March 31,
2016

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

411,415

244,63458.4

1,082.02

384,753

215,58654.8

949.91

Reference: Equity:
As of March 31, 2017: 240,189 million yen

As of March 31, 2016: 210,780 million yen-1-[Translation for reference only]
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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.

(3) Consolidated cash flows

Cash and cash
equivalents at theend of the year

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

49,042(29,121)(15,834)

11,36847,599(34,847)(9,010)6,832

Year ended March
31, 2017
Year ended March
31, 2016

2. Cash Dividends
Cash dividend per share

Record dateYear ended March
31, 2016
Year ended March
31, 2017
Year ending March
31, 2018 (Forecast)

Dividend
Total annual
payout ratio
cash
dividends
Year-end Full year
(Consolidated)

Ratio ofdividends to
net assets

1Q endInterim3Q end

Yen

Yen

Yen

Yen

Yen

Millions of yen%(Consolidated)
%

—

7.00

—

8.00

15.00

3,363

18.8

1.6

—

8.00

—

8.00

16.00

3,552

15.3

1.6

—

8.00

—

9.00

17.00

18.9

3. Projected Consolidated Performance for the Year Ending March 31, 2018
(From April 1, 2017 to March 31, 2018)(Percentage figures respectively indicate changes from the previous year.)Net salesInterim period
endingSeptember 30,
2017
Year ending
March 31, 2018
(Full year)

Operating income

Ordinary income

Net income
attributable toowners of parent

Net income
per share

Millions ofyen%Millions ofyen%Millionsof yen%Millions of
yen

%

Yen

140,000(0.1)

13,000(1.6)

13,000

7.4

8,000

(0.9)

36.04

290,000

0.8

29,000(5.7)

30,000(5.7)

20,000(13.6)

90.10-2-

[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.

4. Other Matters(1) Significant changes of specified subsidiaries (Changes of Specified Subsidiaries Accompanied by Change in
Scope of Consolidation): None
(2) Changes in accounting principle, procedures and presentation on preparation of consolidated financial
statements(i) Changes in policy due to amendment in accounting standards: Yes(ii) Changes in policy other than above (i): No(iii) Changes in accounting estimates: No(iv) Restatements: No(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at the end of the year (Including treasury stock)
As of March 31, 2017: 237,075,556 shares
As of March 31, 2016: 237,075,556 shares(ii) Number of treasury stock
As of March 31, 2017: 15,093,031 shares
As of March 31, 2016: 15,179,841 shares(iii) Average number of shares outstanding in each year
Year ended March 31, 2017: 221,957,049 sharesYear ended March 31, 2016: 226,389,994 shares
Reference: Summary of Non-consolidated PerformanceNon-consolidated Performance for the Year ended March 31, 2017
(From April 1, 2016 to March 31, 2017)(Percentage figures respectively indicate changes from the previous year.)(1) Non-consolidated operating results
Net salesYear ended March
31, 2017
Year ended March
31, 2016

Operating income

Ordinary income%

Millions ofyen%Millions ofyen

193,405(2.2)

23,2190.7

197,698(7.7)

23,062(2.7)

Millions ofyen

Net income per share
Year ended March 31, 2017
Year ended March 31, 2016

Year ended March 31, 2017
Year ended March 31, 2016%

24,722(5.0)

19,471

46.6

26,010(2.7)

13,283(25.2)

Fully diluted net income per share
Yen

87.72
58.67

87.60
58.58

Millions of yen
347,651
310,533

Reference: Equity
As of March 31, 2017: 196,688 million yen%

Yen(2) Non-consolidated financial position
Total assets

Net income
Millions ofyen

Net assets

Equity ratio

Net assets per share

Millions of yen
196,910
171,312

%
56.6
55.1

Yen
886.05770.89As of March 31, 2016: 171,058 million yen

Note regarding indication of status of implementation of the review procedure
The review of consolidated financial statements based on the Financial Instruments and Exchange Act had notbeen completed as of the date of disclosure of this 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.

-3-

[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.

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous fiscal year (As of
March 31, 2016)

Current fiscal year (As of
March 31, 2017)

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

11,67770,222
2,782
43,734
5,145
12,97829,328
3,799
2,959
(91)
182,533

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

44,66760,351
18,6988,046
6,297
138,058

4,187
4,187

3,857
3,857

60,821
165
320
8,130
(302)
69,133211,846
384,753

76,82887
273
10,012(233)
86,967
228,883
411,415(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, 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
Net defined benefit asset
Deferred tax assets
Other investments and assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-4-[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)

Current fiscal year (As of
March 31, 2017)

51,852
1,754
25,755
4,633
1,586

63,851
2,834
18,037
5,018
1,556

3,268

—

3,017
22,563
114,427

2,238
20,719114,253

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

20,0005,140
8,776
12,760626
5,225
52,528
166,781

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

24,211
19,128179,390(12,275)
210,454

17,713

27,767(3)
6,461(2,898)21,272
255
4,551
215,586
384,753(1)
4,474(2,505)29,736
222
4,224
244,634
411,415(Liabilities)
Current liabilities
Notes and accounts payable—trade
Electronically recorded monetary claims
Short-term loans payable
Income taxes payable
Reserve for bonuses
Provision for loss on liquidation of subsidiaries
and associates
Other reserves
Other current liabilities
Total current liabilities
Long-term liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
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 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-5-[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
Previous fiscal year
(From April 1, 2015
to March 31, 2016)
295,647
208,460
87,18757,331
29,856

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Nonoperating income
Interest income
Dividend income
Subsidy income
Miscellaneous income
Total nonoperating income
Nonoperating expenses
Interest expense
Foreign exchange loss
Depreciation from idle assets
Miscellaneous loss
Total nonoperating expenses
Ordinary income
Extraordinary gains
Compensation income
Gain on sale of fixed assets
Other
Total extraordinary gains
Extraordinary losses
Loss on disposal of fixed assets
Loss on liquidation of affiliates
Loss on abolishment of retirement benefit plan
Other
Total extraordinary losses
Income before income taxes
Income taxes—current
Income taxes—deferred
Total taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent-6-(Millions of yen)
Current fiscal year
(From April 1, 2016
to March 31, 2017)287,624
200,699
86,92556,15830,767

123
2,760
369
822
4,074

123
1,917
470
525
3,035

617
552
351
256
1,777
32,153

455
929
354
261
1,998
31,805

338
85
10
434

1,060
128
37
1,226

541
3,629
—
2,152
6,322
26,265
9,637(2,203)
7,433
18,831
752
18,079

758
555
489
300
2,102
30,928
8,341(1,179)7,162
23,766613
23,152

[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) 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
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-7-

Previous fiscal year
(From April 1, 2015
to March 31, 2016)
18,831

Previous fiscal year
(From April 1, 2016
to March 31, 2017)
23,766(10,761)(3)(1,343)
174(11,934)
6,897

10,0583(2,072)393
8,383
32,1486,407
490

31,554594

[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.

(4) Consolidated Statements of Changes in Net Assets
Previous fiscal year (From April 1, 2015 to March 31, 2016)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current period

Capital surplus

24,211Retained earnings

18,514

148,285

Treasury stock

Total shareholders’equity(12,737)

178,273

Changes of items during the period
Dividends from surplus(3,176)(3,176)

Profit attributable to owners of parent

18,07918,079(9)

Disposal of treasury stock
Purchase of treasury stock
Retirement of treasury stock(4,066)

Transfer to capital surplus from retained
earnings

3,933

Change in treasury stock of parent arisingfrom transactions with non-controllingshareholders

15

90

81

(3,764)(3,764)

4,066—(3,933)—15

Net changes of items other thanshareholders’ equity

—

(127)

10,969392

11,23524,211

18,387

159,255(12,345)

189,508

Total changes of items during the period
Balance at the end of current period

Accumulated other comprehensive income
Valuation
Deferreddifference on
gains or losses
available-foron hedges
sale securities
Balance at the beginning ofcurrent period

28,350(0)Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Subscription
rights tosharesNon-controllinginterests

7,666(3,072)

32,943304

4,111

Total net
assets215,631

Changes of items during theperiodDividends from surplus(3,176)

Profit attributable toowners of parent

18,079

Disposal of treasury stock

81

Purchase of treasury stock(3,764)Retirement of treasury
stock

—

Transfer to capital surplus
from retained earnings—

Change in treasury stock ofparent arising fromtransactions with
non-controllingshareholders

15

Net changes of items otherthan shareholders’ equity(10,637)(3)(1,205)

174(11,671)

(49)

440

(11,280)

Total changes of items
during the period(10,637)(3)(1,205)

174(11,671)

(49)

440

(45)

17,713(3)

6,461(2,898)21,272

255

4,551

215,586

Balance at the end of current
period-8-

[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.

Current fiscal year (From April 1, 2016 to March 31, 2017)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current
periodCapital surplus

24,211Retained earnings

18,387

159,255

Treasury stock

Total shareholders’equity(12,345)

189,508

Changes of items during the period
Dividends from surplus(3,551)(3,551)

Profit attributable to owners of parent

23,152

23,152(7)

Disposal of treasury stock
Purchase of treasury stock
Transfer to capital surplus fromretained earnings

7

Change in treasury stock of parent
arising from transactions with
non-controlling shareholders

741

74

67

(4)

(4)

(7)

—
741

540

Change of scope of consolidation540

Net changes of items other thanshareholders’ equity—

741

20,13570

20,94624,211

19,128179,390(12,275)

210,454

Total changes of items during the period
Balance at the end of current period

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginning ofcurrent period

17,713

Deferred
gains orlosses onhedges(3)

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Subscription
rights tosharesNon-controllinginterests

6,461(2,898)21,272

255

4,551

Total net
assets215,586

Changes of items during theperiodDividends from surplus(3,551)

Profit attributable toowners of parent

23,152

Disposal of treasury stock

67

Purchase of treasury stock(4)

Transfer to capital surplus
from retained earnings—

Change in treasury stockof parent arising fromtransactions with
non-controllingshareholders

741

Change of scope of
consolidation540

Net changes of items otherthan shareholders’ equity

10,0542(1,987)

393

8,463

(33)

(327)

8,103

Total changes of items
during the period

10,0542(1,987)

393

8,463

(33)

(327)

29,049Balance at the end of current
period27,767(1)

4,474(2,505)29,736

222

4,224

244,634-9-

[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.

(5) Cash Flow Statement

Net cash provided by operating activities
Income before income taxes and minority interests
Depreciation and amortization
Gain on goodwill
Increase (decrease) in reserve for repair
Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Compensation income
Loss (gain) on disposal of non-current assets
Subsidy income
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable—trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Proceeds from subsidy
Proceeds from compensation
Income taxes paid
Net cash provided by operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Loss (gain) on disposal of non-current assets
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for investments in capital
Purchase of long-term prepaid expenses
Payments of loans receivableCollection of loans receivable
Net decrease (increase) in time deposits
Other, net
Net cash provided by (used in) investing activities
Net cash used in financing activities
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Purchase of treasury shares
Cash dividends paid shareholders
Dividends paid to non-controlling interests
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period-10-Previous fiscal year
(From April 1, 2015
to March 31, 2016)(Millions of yen)
Current fiscal year
(From April 1, 2016
to March 31, 2017)

26,26520,904670
1,566

30,92820,431
670
(455)

3,399

(2,673)(1,140)(2,883)
617
(338)
456
(369)
4,861
(3,085)(7,021)
10,792
54,693
1,906
(600)
200
—
(8,600)47,599(798)(2,040)455(1,060)629(470)(8,200)1,178
13,802
1,119
53,515
2,592
(452)
640
941
(8,195)49,042(29,200)
(709)
(869)
(1,030)21(1,513)(437)(2,879)
2,261
(533)
41
(34,847)(24,397)(409)(1,303)(2,400)539(88)(1,951)(5,812)
5,923
730
46
(29,121)(3,023)(8,000)1,500(2,301)
10,000(3,765)(3,173)(33)(215)(9,010)
(400)
3,342
3,491

706
(500)
500
(12,567)—(4)(3,546)(33)(390)(15,834)
(162)
3,925
6,832

[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.

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period

-11-

—

611

6,832

11,368

[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.

(6) Segment Information
a. Business segments
Previous fiscal year (From April 1, 2015 to March 31, 2016)(Millions of yen)

Specialty
Elastomer
Materials

Sub Total

Other

Total

177,248

70,979248,227

47,420295,647—

295,647

1,691

—

1,691

530

2,222

(2,222)—

178,940

70,979249,918

47,950297,868(2,222)295,647

Adjustment Consolidated

Net sales
Sales to third parties
Intersegment sales and transfers
Total
Operating income

20,725

8,221

28,9452,503

31,448(1,592)

29,856

Assets

193,560

80,916274,475

27,873

302,349

82,404

384,753

Depreciation and amortization

9,693

8,569

18,262316

18,5782,326

20,904Gain on goodwill
Increase in property, plant andequipment and intangible assets

670

—

670

—

670

—

670

15,665

7,521

23,186395

23,581

4,069

27,650

OthersCurrent fiscal year (From April 1, 2016 to March 31, 2017)(Millions of yen)

Specialty
Elastomer
Materials

Sub Total

Other

Total

163,967

74,980238,947

48,677

287,624—

287,624

2,276

—

2,276

361

2,637

(2,637)—

166,243

74,980241,223

49,038290,261(2,637)

287,624

Adjustment Consolidated

Net sales
Sales to third parties
Intersegment sales and transfers
Total
Operating income

20,552

9,832

30,384

2,865

33,250(2,482)30,767

Assets201,054

82,673

283,727

29,165

312,892

98,523

411,415

Depreciation and amortization

9,929

7,845

17,774353

18,1272,304

20,431Gain on goodwill
Increase in property, plant andequipment and intangible assets

670

—

670

—

670

—

670

11,166

7,644

18,810342

19,151

2,971

22,122Othersb. Sales by region
Previous fiscal year (From April 1, 2015 to March 31, 2016)
Japan
137,791

North America
28,291

Europe32,016

Asia(except Japan)
94,035Current fiscal year (From April 1, 2016 to March 31, 2017)
Japan
136,652

North America
24,129Europe28,577-12-(Millions of yen)
Other

Total
3,514

295,647(Millions of yen)Asia
(except Japan)
95,110

Other

Total
3,155

287,624