[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.

July 31, 2020
Consolidated Financial Report for theFirst Quarter of the Year Ending March 31, 2021
Name of Listed Company ZEON CORPORATION
Ticker Code 4205
(URL http://www.zeon.co.jp)
Listed Stock Exchanges:
Tokyo Stock Exchange
Representative:
President and CEONameKimiaki Tanaka
Contact:
Director and Corporate Officer
Name
Kazuyoshi Matsuura TEL: +81-3-3216-2747
Scheduled Date of the Submission of the Quarterly Report: August 6, 2020
Scheduled Date of Dividend Payments: —Note: Figures are rounded down to the nearest million yen.

1. Consolidated Performance for 1st quarter of the year ending March 31, 2021
(April 1, 2020 to June 30, 2020)(1) Consolidated operating results (Cumulative)(Percentage figures respectively indicate year-over-year changes from the same period of the previous fiscal year.)Net sales

Operating income

Millions of yen

1Q period ended
June 30, 2020
1Q period ended
June 30, 2019%

Millions of yen

Net income
attributable toowners of parent

Ordinary income%Millions of yen%

Millions of yen%

69,492 (15.7)

4,310 (48.2)

5,069 (41.5)

3,576 (41.0)

82,4188,325

8,664 (10.3)

6,065

(1.5)

(1.6)

(8.8)

Note: Comprehensive income (loss):
1Q of the year ending March 31, 2021: 6,331 million yen (47.4%);
1Q of the year ended March 31, 2020: 4,295 million yen (202.0%)

Net income per share

Fully diluted net income
per share

YenYen1Q period ended
June 30, 2020
1Q period ended
June 30, 201916.36

16.34

27.76

27.72

(2) Consolidated financial position

1Q period ended
June 30, 2020
Year ended March31, 2020

Total assets

Net assets

Millions of yen

Millions of yen

393,727

265,204

66.6

405,131

260,358

63.5

Reference: Equity:
As of June 30, 2020: 262,256 million yen

Equity ratio%

As of March 31, 2020: 257,217 million yen

2. Cash Dividends
Record dateYear ended March 31, 2020
Year ending March 31, 2021
Year ending March 31, 2021 (Forecast)

Cash dividend per share
3Q endYear-end

1Q end2Q endYen

Yen

Yen

Yen

Yen——

11.00

—

10.00

21.00

11.00

—

—

—

Note: Revisions to the most recently disclosed dividend forecasts: Yes
Please refer to the Notice of Business and Dividend Forecasts (in Japanese), announced on July 31, 2020.

-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, 2021
(From April 1, 2020 to March 31, 2021)(Percentage figures respectively indicate changes from the previous year.)

Operatingincome

Net salesInterim period ending
September 30, 2020

Net income
Net income
attributable toper shareowners of parent

Ordinary
incomeMillions ofyen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

130,000(20.4)

7,000(53.4)

8,000(50.1)

5,500(52.4)

25.16

Note: Revisions to the most recently disclosed dividend forecasts: Yes
Please refer to the Notice of Business and Dividend Forecasts (in Japanese), announced on July 31, 2020. Given thedifficulty of reasonably calculating future business performance, the notice discloses only the second quarter forecast for
the fiscal year ending March 2021.

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 June 30, 2020: 237,075,556 shares
As of March 31, 2020: 237,075,556 shares(ii) Number of treasury stock outstanding
As of June 30, 2020: 18,515,547 shares
As of March 31, 2020: 18,515,473 shares(iii) Average number of shares during the period
1Q ended June 30, 2020: 218,560,064 shares
1Q ended June 30, 2020: 218,498,401 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-

[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.

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous fiscal year
(As of March 31, 2020)(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, netMachinery, equipment and vehicles, netLand
Construction 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, 2020

32,02968,603
2,729
53,026
3,937
16,24030,018
7,946(81)
214,447

25,873
61,7792,594
56,043
2,842
15,24826,3098,224(84)
198,827

40,12329,465
18,26822,573
4,361
114,791

40,81830,152
18,437
21,572
4,314
115,292

3,669
3,669

3,514
3,514

62,118
2,713
7,638
(245)
72,224
190,684
405,131

68,004
855
7,479
(245)
76,093
194,900
393,727

[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)Previous fiscal year
(As of March 31, 2020)(Liabilities)
Current liabilities
Notes and accounts payable—trade
Electronically recorded monetary claims
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision for repair
Other provisions
Other current liabilities
Total current liabilities
Long-term liabilities
Bonds payable
Deferred tax liabilities
Net defined benefit liability
Provision for repairs
Other provisions
Other long-term liabilitiesTotal 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 June 30, 2020

62,926
2,765
10,9602,999
1,919
2,989
45
27,807
112,41050,552
2,407
10,960
1,322
268
5,476
33
26,431
97,44910,000758
12,704
1,638
106
7,156
32,363
144,773

10,000844
12,766
311
117
7,036
31,074
128,522

24,211
19,252
220,379(17,181)
246,662

24,211
19,152
222,566(17,181)248,749

10,027(1)
2,511(1,981)
10,556283
2,858
260,358
405,131

14,062(0)
1,394(1,947)
13,508283
2,665
265,204
393,727

[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 gain
Share of profit of entities accounted for using equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange gains
Depreciation of inactive non-current assets
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary gains
Extraordinary losses
Loss on disposal of non-current assets
Loss on sales of investment securities
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 threemonths ended June30, 2019
82,41858,49923,91915,5948,325

For the threemonths ended June30, 202069,492
50,292
19,20014,890
4,310

53760
—
50122
985

29719
17
28
117
910

34
465
62
85
645
8,664

33
—
4177
151
5,069

0
—
048993

106
—
23
130
8,535
2,406
6,129

15
25
18
59
5,103
1,522
3,581

63

6

6,065

3,576

[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 incomeOther 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 parent
Non-controlling interests

For the three months
ended June 30, 2019
6,129

For the three months
ended June 30, 2020
3,581

(2,083)
(1)
180
25

4,035
(0)
(1,145)34

46(173)(1,834)
4,2952,750
6,331

4,188
107

6,519
(188)

(4) Segment Information
Previous 1st quarter cumulative period (From April 1, 2019 to June 30, 2019)

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

Elastomer

Specialty
Materials

Sub Total

46,62622,259459
47,085
3,504

OtherTotal

68,884

13,53482,418—82,418

—

459

45

504

(504)

—

22,2595,058

69,343
8,561

13,579390

82,922
8,951

(504)
(626)

82,418
8,325

Current 1st quarter cumulative period (From April 1, 2020 to June 30, 2020)

Net sales(1) Sales to third parties(2) Intersegment sales andtransfers
Total
Segment income (loss)(Millions of yen)
Eliminations
Consolidated/Corporate

Elastomer

Specialty
Materials

Sub Total

36,721

22,333383
37,104(117)(Millions of yen)
Eliminations
Consolidated/Corporate

Other

Total

59,054

10,43869,492—

69,492

12395

121

516

(516)

—

22,345
4,814

59,4494,697

10,559222

70,008
4,919

(516)
(609)

69,492
4,310-6-