[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.

January 31, 2019
Consolidated Financial Report for theThird Quarter of the Year Ending March 31, 2019
Name of Listed Company ZEON CORPORATION
Ticker Code 4205
(URL http://www.zeon.co.jp)
Representative
President
Contact
Director and Senior Corporate Officer
Scheduled Date of theSubmission of theQuarterly Report

Listed Stock
Exchanges
NameNameTEL
Scheduled Date ofDividend Payments

February 13, 2019

Tokyo Stock Exchange
Kimiaki Tanaka
Hirofumi Imai+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, 2019
(April 1, 2018 to December 31, 2018)(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, 2018
3Q period ended
December 31, 2017

Operating income

Millions of yen%

254,5501.4

251,017

19.2

Millions of yen%

Ordinary income
Millions of yen

Net income
attributable toowners of parent%

Millions of yen%

27,020 (11.9)

29,303 (10.8)

12,57597.3

30,68032,855

6,375 (60.2)

42.0

48.0

Note: Comprehensive income:3Q period ended December 31, 2018: 2,011 million yen (down 89.6%);
3Q period ended December 31, 2017: 19,255 million yen (22.4%)

Net income per share

Fully diluted net income
per share

YenYen3Q period endedDecember 31, 2018
3Q period ended
December 31, 201757.18

57.10

28.71

28.68

(2) Consolidated financial position

3Q period ended
December 31, 2018Year ended March31, 2018

Total assets

Net assets

Millions of yen

Millions of yen

417,451

253,03059.9

440,519

259,940

58.4

Reference: Equity:
As of December 31, 2018: 249,959 million yen

Equity ratio%

As of March 31, 2018: 257,167 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, the Japaneselanguage original shall take precedence.

2. Cash Dividends
Record dateYear ended March 31, 2018Year ending March 31, 2019Year ending March 31, 2019 (Forecast)

Cash dividend per share
3Q endYear-end

1Q end2Q end

Yen

Yen

Yen

Yen

Full year
Yen

——

8.00
9.00

—
—

9.00

17.00

10.00

19.00

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

3. Projected Consolidated Performance for the Year Ending March 31, 2019
(From April 1, 2018 to March 31, 2019)(Percentage figures respectively indicate changes from the previous year.)

OperatingincomeNet sales
Year ending March 31,340,000
2019 (Full year)

2.2

34,000(12.6)

Ordinary income

Net income
attributable toowners of parent

37,00018,000(9.5)

37.9Net income
per share
81.97

Note: Revisions to the most recently disclosed dividend forecasts: Yes

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 December 31, 2018: 237,075,556 shares
As of March 31, 2018: 237,075,556 shares(ii) Number of treasury stock outstanding
As of December 31, 2018: 18,576,875 shares
As of March 31, 2018: 15,054,569 shares(iii) Average number of shares during the period
3Q ended December 31, 2018: 219,907,679 shares
3Q ended December 31, 2017: 222,005,794 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 atthe 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)

(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
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
Deferred tax assets
Other investments and assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-3-

Previous fiscal year
(As of March 31,2018)

As of December 31,
201841,66675,7873,557
45,4484,689
13,75936,2413,810(97)224,859

32,062
79,2403,552
52,934
4,596
14,51134,367
4,813(99)
225,975

41,91445,88818,246
5,285
4,225
115,559

39,70235,65918,251
5,428
3,157
102,197

3,355
3,355

3,089
3,089

87,362
886
8,726
(228)
96,746215,660
440,519

77,100810
8,510(229)86,190191,476
417,451

[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)

(Liabilities)
Current liabilities
Notes and accounts payable—trade
Electronically recorded monetary claims
Short-term loans payable
Current portion of bonds payable
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 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 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-

Previous fiscal year
(As of March 31,2018)

As of December 31,
2018

81,1032,900
16,573
10,000
4,920
2,160
2,032
19,576139,264

82,722
3,741
14,095
—
2,229
561
2,998
21,658128,004

10,0002,000
10,06012,181
1,359
5,715
41,315
180,579

10,0002,000
5,690
12,482397
5,848
36,417
164,421

24,211
19,240190,273(12,245)
221,480

24,211
19,240198,884(17,238)
225,098

33,771(2)
3,925(2,008)35,687
246
2,527
259,940
440,519

23,122(1)3,667(1,926)
24,862283
2,788
253,030
417,451

[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 investments accounted for using theequity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
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
Reversal of foreign currency translation adjustment
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 non-controlling interests
Net income attributable to owners of parent-5-

For the nine months
ended December 31,
2017
251,017
174,554
76,46345,78330,680For the nine months
ended December 31,
2018
254,550
180,390
74,16047,14027,020

81
1,595
662
224

104
1,693
343
180

325
2,886

570
2,890

249
278
183
710
32,855

156
159
293
607
29,303

2231
316
72
622

7
1
—0
9

358
14,726
2,472
17,55615,921
9,222
6,700

362
8,561
37
8,961
20,351
7,509
12,842

325

266

6,375

12,575

[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 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
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-6-

For the nine months
ended Decembers
31, 2017
6,700

For the nine months
ended Decembers
31, 2018
12,842

12,429(0)(1,016)1,125
17(10,650)
(0)
(288)
82
25

12,555
19,255(10,830)
2,011

18,790
465

1,750
261

[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.

(4) Segment Information
Previous 3rd quarter cumulative period (From April 1, 2017 to December 31, 2017)

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

Elastomer

Specialty
Materials

Sub Total

144,588

66,146

1,422
146,009
16,642

Other

Total

210,734

40,283251,017—251,017

—

1,422

197

1,618

(1,618)—66,146
13,400212,155
30,042

40,4802,548

252,635
32,590(1,618)(1,910)251,01730,680Current 3nd quarter cumulative period (From April 1, 2018 to December 31, 2018)

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

147,570

64,662

1,651
149,221
14,401(Millions of yen)
Eliminations
Consolidated/Corporate

Other

Total

212,232

42,318254,550—

254,550

—

1,651

226

1,876

(1,876)—64,662
12,962

213,883
27,36442,543
1,951

256,426
29,315(1,876)(2,295)

254,550
27,020-7-