[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and provided for convenience only. In all cases, theJapanese-language original shall take precedence.

October 29, 2015
Consolidated Financial Report for the Second Quarter of the Year Ending March 31, 2016
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

November 9, 2015

Listed Stock Exchanges
NameNameTELScheduled Date of Dividend
Payments

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

December 4, 2015

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, 2016
(April 1, 2015 to September 30, 2015)(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

Ordinary income

Net income
attributable toowners of parent

Millions of yen%Millions of yen%

Millions of yen%

Millions of yen%

152,427(0.6)

16,51813.8

17,160

10.3

10,94621.3

153,362

3.4

14,513 (13.3)

2Q period ended
September 30, 2015
2Q period ended
September 30, 2014
Note: Comprehensive income:

15,564 (14.3)

9,024 (16.5)

2Q of the year ending March 31, 2016: 5,178 million yen (−49.8%);
2Q of the year ended March 31, 2015: 10,320 million yen (−31.2%)

Net income per share

Fully diluted net income
per share

YenYen2Q period ended
September 30, 2015
2Q period endedSeptember 30, 2014

48.26

48.18

39.79

39.72

(2) Consolidated financial position

2Q period ended
September 30, 2015
Year ended March 31,2015
Reference: Equity:Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

407,485

219,23252.7

399,512215,631

52.9

As of September 30, 2015: 214,670 million yen-1-

As of March 31, 2015: 211,217 million yen

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and provided for convenience only. In all cases, theJapanese-language original shall take precedence.
2. Cash Dividends

Record dateYear ended March 31, 2015
Year ending March 31, 2016
Year ending March 31, 2016 (Forecast)

Cash dividend per share
3Q endYear-end

1Q end2Q end

Yen

Yen

Yen

Yen

Full year
Yen

——

7.00
7.00

—

7.00

14.00

—

8.00

15.00

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

3. Projected Consolidated Performance for the Year Ending March 31, 2016
(From April 1, 2015 to March 31, 2016)(Percentage figures respectively indicate changes from the previous year.)

Operatingincome

Net sales

Ordinary income

Net income
attributable toowners of parent

Net income
per share

Millionsof yen%

Millionsof yen%

Millionsof yen%

Millionsof yen%

YenYear ending March 31,320,000
2016 (Full year)

4.1

32,00013.3

32,0002.9

23,00020.5

101.42

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 September 30, 2015: 242,075,556 shares
As of March 31, 2015: 242,075,556 shares(ii) Number of treasury stock outstanding
As of September 30, 2015: 15,179,259 shares
As of March 31, 2015: 15,286,593 shares(iii) Average number of shares during the period
2Q ended September 30, 2015: 226,834,891 shares 2Q ended September 30, 2014: 226,790,726 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 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, 2015)(Assets)
Current assets
Cash and bank deposits
Notes and accounts receivable—trade
Electronically recorded monetary claimsMarketable securities
Merchandise and products
Work in process
Raw materials and supplies
Accounts receivable—otherDeferred 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, 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
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,
2015

4,151
70,970720—
43,2994,393
13,54332,2843,231
4,115(95)
176,609

10,67570,282
1,035
3,400
47,019
4,639
13,10632,910
3,223
4,546
(93)
190,743

42,45555,187
18,371
11,965
6,249
134,227

44,31651,78318,355
16,5236,112
137,088

5,262
5,262

4,820
4,820

75,972
44
618
7,177
(397)
83,414
222,903399,51267,43735
598
7,202(438)74,833
216,742
407,485

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and provided for convenience only. In all cases, theJapanese-language original shall take precedence.
(Millions of yen)Previous fiscal year
(As of March 31, 2015)(Liabilities)
Current liabilities
Notes and accounts payable—trade
Electronically recorded obligations
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
Net defined benefit liability
Other reservesOther 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 September 30,2015

60,466796
18,22010,000
3,902
1,977
531
23,282
119,174

64,804
1,431
31,841
—
4,763
1,297
3,657
20,791
128,585

10,00020,66912,908
14,2091,461
5,460
64,707
183,881

20,00010,463
10,005
13,569170
5,461
59,668188,253

24,211
18,514
148,285(12,737)
178,273

24,211
18,505
157,644(12,648)
187,71228,350(0)
7,666(3,072)
32,943304
4,111
215,631399,512

21,938(2)
8,050(3,028)26,958239
4,324
219,232
407,485

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and 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
Depreciation from idle assets
Other non-operating expenses
Total non-operating expensesOrdinary income
Extraordinary gains
Compensation income
Other
Total extraordinary gains
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes
Income taxes
Net income
Net income attributable to owners of parent
Net income attributable to non-controlling interests-5-

For the six months
ended September 30,
2014
153,362
112,565
40,79726,284
14,513For the six months
ended September 30,
2015
152,427
108,00344,42427,906
16,518

60
810
423
657
1,949

59
999
—331
1,388

410
337
151
898
15,564

309
245
192
746
17,160

—893
893

338
95
433

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

156
735
34
925
16,6685,430
11,239

192

292

9,024

10,946

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and 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 six months
ended
September 30, 2014
9,215

For the six months
ended
September 30, 2015
11,2392,648
3(1,680)134
1,104
10,320(6,488)(3)387
44(6,060)5,178

10,092
228

4,961
218

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and 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
Depreciation and amortization
Gain on goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in reserve for repair
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expense
Impairment loss
Decrease (increase) in notes and accounts
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable—trade
Other, netSubtotal
Interest 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
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
Cash dividends paid to non-controlling interests
Other, netNet 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 30,2014)(Millions of yen)
For the six months
ended September 30,2015)

14,4668,858
335(488)579
147(870)410
1,247(5,241)(1,928)14,716(8,919)23,312917(403)(9,720)49
14,154

16,668
10,070
335
(676)
1,966
(580)
(1,057)309
735
324(3,442)
5,014(1,086)28,5781,084(294)(4,348)825,028(9,123)
(603)
(550)
(590)
508
1,056
(9,303)(13,811)
(507)
(996)
(781)
406
(908)
(16,597)

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

3,481
(10,000)—(434)
10,000(1,586)
(5)
(104)
1,353
(43)
9,742
3,491
13,233

[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is a translation of the original Japanese-language document and provided for convenience only. In all cases, theJapanese-language original shall take precedence.

(4) Segment Information
Previous 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

Elastomer

Specialty
Materials

Sub Total

92,88335,689970
93,854
8,926

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
14,513Current 2nd quarter cumulative period (From April 1, 2015 to September 30, 2015)

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

92,27436,045854
93,127
10,786(Millions of yen)
Eliminations
Consolidated/Corporate

OtherTotal

128,319

24,108152,427—

152,427—854

207

1,061

(1,061)—

36,0455,280

129,172
16,06624,315
1,106

153,488
17,172(1,061)(654)

152,427
16,518-8-