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November 6, 2014
Consolidated Financial Report for theSecond 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

November 7, 2014

Tokyo Stock Exchange
Kimiaki Tanaka
Tadayuki Minami+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, 2015
(April 1, 2014 to September 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
2Q period ended
September 30, 2014
2Q period ended
September 30, 2013

Operating income
Millions of yen

Ordinary income%Millions of yen%

153,362

3.4

14,513 (13.3)

15,564 (14.3)

9,024 (16.5)

148,374

16.6

16,73818,162

10,80646.3%

Net income

Millions of yen

76.0

Millions of yen%

94.7

Note: Comprehensive income:2Q of the year ending March 31, 2015: 10,320 million yen (-31.2%);
2Q of the year ended March 31, 2014: 14,990 million yen (243.7%)

Net income per share

Fully diluted net income
per share

Yen

Yen

2Q period ended
September 30, 2014
2Q period ended
September 30, 2013

39.79

39.72

46.70

46.63(2) Consolidated financial position

2Q period ended
September 30, 2014
Year ended March31, 2014

Total assets

Net assets

Millions of yen

Millions of yen

388,284

189,98647.9

370,872

181,41447.9

Reference: Equity:
As of September 30, 2014: 186,015 million yen

Equity ratio%

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

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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.

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 end

Yen

Yen

Yen

Yen

Full year
Yen

——

7.00
7.00

—

6.00

13.00

—

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.)

Operatingincome

Net sales

Ordinary income

Net incomeper share

Net income

Millionsof yen%Millionsof yen%Millionsof yen%

Millionsof yen%

Yen

Year ending March 31,310,000
2015 (Full year)

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 financial
statements(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 September 30, 2014: 242,075,556 shares
As of March 31, 2014: 242,075,556 shares(ii) Number of treasury stock outstanding
As of September 30, 2014: 15,285,588 shares
As of March 31, 2014: 15,283,615 shares(iii) Average number of shares during the period
2Q ended September 30, 2014: 226,790,726 shares 2Q ended September 30, 2013: 231,380,773 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 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.

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—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
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 September 30, 2014

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

10,01375,561
46,257
4,136
11,87236,392
3,581
3,802
(82)
191,533

38,95345,31918,192
14,1096,148
122,72138,99846,93718,02012,938
5,943
122,837

5,943
5,943

5,624
5,624

56,030
293
536
7,247
(295)
63,812
192,476
370,872

60,468
590
483
7,157
(408)
68,291
196,751
388,284

[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)

(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 costTotal 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-

Previous fiscal year
(As of March 31, 2014)

As of September 30, 2014

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

78,74823,700
8,500
4,265
1,316
2,793
20,797140,118

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

10,00020,886
9,468
12,722863
4,240
58,180198,298

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

24,211
18,514
139,817(12,736)
169,806

15,081

17,653(1)
2,261(2,205)
15,136
266
3,545
181,414370,8722627(2,071)
16,210288
3,682
189,986
388,284

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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.

(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
Depreciation from idle assets
Other nonoperating expenses
Total nonoperating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
OtherTotal extraordinary gains
Extraordinary losses
Loss on disposal of fixed assetsImpairment loss
Valuation loss on investment securities
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 six months
ended September 30,
2013
148,374
105,694
42,68025,942
16,738For the six months
ended September 30,
2014
153,362
112,565
40,79726,284
14,513

46
602
1,134
483
2,265

60
810
423
657
1,949

376
345
118
840
18,162

410
337
151
898
15,56401313834
59
893

101
—
460
25
586
17,590
6,591
10,999

612
1,247
—
132
1,991
14,466
5,250
9,215

193

192

10,8069,024

[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)

Income before minority interests in net income ofconsolidated subsidiaries
Other comprehensive incomeValuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Pension liabilities adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests-6-

For the six months
ended
September 30, 2013
10,999For the six months
ended
September 30, 2014
9,215

(483)
(1)
4,781
(306)
—
3,991
14,9902,648
3(1,680)
—
134
1,104
10,32014,636353

10,092228

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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.

(4) 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
Interest and dividends income
Interest expense
Impairment loss
Loss (gain) on valuation of investment securities
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
Income taxes paid
Other, net
Net cash provided by operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of loans receivableCollection of loans receivable
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
Cash dividends
paid
Redemptionof bonds
Cash dividends paid
Cash dividends paid to minority shareholders
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
Cash and cash equivalents at end of period-7-For the six months
ended September 30,2013)(Millions of yen)
For the six months
ended September 30,2014)

17,590
7,841
294
1,404
(647)
376
—
460
(2,392)(21)(8,550)1,439
17,794682(439)(4,247)1
13,791

14,466
8,858
335
579
(870)
410
1,247
—
(5,241)(1,928)14,716(9,259)23,312917(403)(9,720)49
14,154(11,610)1(537)(203)(207)
72(82)(12,566)(9,123)
1,059
(603)
(550)
(590)
508
(4)
(9,303)2,869(3,000)—(3,682)
10,000(10,000)(1,385)(5)(74)(5,277)818(3,235)
12,115
8,880

(411)
3,500
1,535
(6,735)——(1,359)(5)(101)(3,575)
(113)
1,162
8,117
9,279

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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) Segment Information
Previous 2nd quarter cumulative period (From April 1, 2013 to September 30, 2013)

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

Elastomer

Specialty
Materials

Sub Total

90,91033,004

1,258
92,167
10,654

Other

Total

123,914

24,461

148,374—

148,374

—

1,258

172

1,430

(1,430)—33,004
5,408

125,172
16,062

24,632679

149,804
16,740(1,430)(3)

148,374
16,738Current 2nd quarter cumulative period (From April 1, 2014 to September 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

SpecialtyMaterials

Sub Total

92,88335,689970
93,854
8,926(Millions of yen)
Eliminations
Consolidated/Corporate

OtherTotal

128,572

24,791

153,362—

153,362

—

970

229

1,199

(1,199)—35,6894,545

129,542
13,471

25,020
1,038

154,562
14,508(1,199)5

153,362
14,513-8-