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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.

January 30, 2017
Consolidated Financial Report for theThird 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

February 9, 2017

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 3rd quarter of the year ending March 31, 2017
(April 1, 2016 to December 31, 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

3Q period ended
December 31, 2016
3Q period ended
December 31, 2015

Operating income

Millions of yen%210,610(6.3)

224,673(3.4)

Millions of yen

Ordinary income%Millions of yen

Net income
attributable toowners of parent%

Millions of yen%

21,612 (10.9)

22,194 (12.7)

16,02617.3

24,261

25,427

13,660

(9.1)

4.4

0.8

Note: Comprehensive income (loss):
3Q of the year ending March 31, 2017: 15,728 million yen (183.4%);
3Q of the year ended March 31, 2016: 5,549 million yen (−77.5%)

Net income per share

Fully diluted net income
per shareYenYen

3Q period ended
December 31, 2016
3Q period ended
December 31, 2015

72.20

72.11

60.21

60.12

(2) Consolidated financial position

3Q period ended
December 31, 2016
Year ended March31, 2016

Total assets

Net assets

Millions of yen

Millions of yen

404,403228,269

55.4

384,753

215,58654.8

Reference: Equity:
As of December 31, 2016: 224,157 million yen

Equity ratio%

As of March 31, 2016: 210,780 million yen-1-[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

—
—

8.00

15.00

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.)

OperatingincomeNet sales

Ordinary income

Net income
attributable toowners of parent

Net income
per share

Millionsof yen%

Millionsof yen%

Millionsof yen%

Millionsof yen%

YenYear ending March 31,280,000
2017 (Full year)(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 December 31, 2016: 237,075,556 shares
As of March 31, 2016: 237,075,556 shares(ii) Number of treasury stock outstanding
As of December 31, 2016: 15,091,818 shares
As of March 31, 2016: 15,179,841 shares(iii) Average number of shares during the period
3Q ended December 31, 2016: 221,949,300 shares 3Q ended December 31, 2015: 226,853,263 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-[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)(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—otherDeferred tax assets
Other current assetsAllowance 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-

As of December 31,
2016

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

15,14868,667
2,928
40,943
4,342
12,70527,255
4,362
6,113
(81)
182,382

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

43,57359,064
18,123
8,295
6,134
135,189

4,187
4,187

3,678
3,678

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

73,574
294
9,521
(235)
83,155222,022404,403

[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
Provision for loss on liquidation of subsidiaries andassociates
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
Valuation difference 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 December 31,
201651,852
1,754
25,755
4,633
1,586

64,3903,293
17,618
2,961
222

3,268

2,422

3,017
22,563
114,427

1,426
31,499123,830

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

20,0005,546
9,160
12,523310
4,763
52,304
176,134

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

24,211
19,128172,263(12,274)
203,328

17,713(3)
6,461(2,898)21,272
255
4,551
215,586
384,753

25,8093(2,493)(2,491)
20,829213
3,900
228,269
404,403

[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
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange gain
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
Loss on liquidation of subsidiaries and affiliates
Other
Total 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 nine months
ended December 31,
2015
224,673
158,552
66,121
41,861
24,261For the nine months
ended December 31,
2016
210,610
147,72162,88941,277
21,612

88
1,291
729
2,108

83
1,233
445
1,761

464
—478943
25,427

362
462
355
1,179
22,194

338
95
434

486
165
651

276
3,566
1,980
5,821
20,0395,910
14,129469
13,660

424
335
54
813
22,032
5,549
16,483457
16,026

[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 the parent
Non-controlling interests-6-

For the nine months
ended
December 31, 2015
14,129For the nine months
ended
December 31, 2016
16,483(7,568)(2)(1,134)123(8,580)
5,549

8,079
7(9,249)408(756)
15,7285,270
279

15,521207

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENTThis 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) Segment Information
Previous 3rd quarter cumulative period (From April 1, 2015 to December 31, 2015)

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

Elastomer

Specialty
Materials

Sub Total

134,826

53,982

1,253
136,079
16,281

Other

Total

188,808

35,865

224,673—

224,673

—

1,253

413

1,665

(1,665)—53,982
7,183

190,061
23,46436,2781,832

226,339
25,296(1,665)(1,035)

224,673
24,261

Current 3rd quarter cumulative period (From April 1, 2016 to December 31, 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

118,454

55,946

1,490
119,945
13,508(Millions of yen)
Eliminations
Consolidated/Corporate

Other

Total

174,400

36,210210,610—

210,610

—

1,490

259

1,750(1,750)—

55,946
7,493

175,890
21,001

36,4702,329

212,360
23,330(1,750)(1,718)210,610
21,612-7-