[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.

April 28, 2016
Consolidated Financial Flash Report for theYear Ended March 31, 2016
Name of Listed Company
Ticker Code 4205
Representative
Contact

ZEON CORPORATION(URL http://www.zeon.co.jp)
President
Managing Director and Corporate Officer

Scheduled Date of the General June 29, 2016
Shareholders Meeting
Scheduled Date of theJune 29, 2016
Submission of the Securities
ReportListed Stock Exchanges Tokyo Stock Exchange
Name
Kimiaki Tanaka
Name
Takeo Furuya
TEL+81-3-3216-2747
Scheduled Date of
From June 30, 2016
Dividend Payments

Note: Figures are rounded down to the nearest million yen.

1. Consolidated Performance for the Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(1) Consolidated operating results(Percentage figures respectively indicate year-over-year changes from the same period of the previous fiscal year.)

Operating income

Ordinary income

Net income
attributable toowners of parent%

Millions of yen%

Millions of yen%

Millions of yen

295,647 (3.9)

29,856

5.7

32,153

3.4

18,079 (5.2)

307,524

28,245 (5.5)

31,098 (4.5)

19,080 (2.9)

Net sales
Millions of yen

Year ended March
31, 2016
Year ended March
31, 2015
Notes:

3.7%

Comprehensive income:Year ended March 31, 2016: 6,897 million yen (−81.6%);
Year ended March 31, 2015: 37,573 million yen (32.8%)

Net income per
share

Fully diluted net
income per share

Yen

Yen

Year ended March
31, 2016
Year ended March
31, 2015

Return on
equityOrdinary
income tototal assets

Operatingincome to
sales

%

%

%

79.86

79.74

8.6

8.2

10.1

84.13

83.98

9.8

8.1

9.2

Reference: Equity in earnings (losses) of unconsolidated subsidiaries and affiliates, net:
Year ended March 31, 2016: - million yen
Year ended March 31, 2015: - million yen(2) Consolidated financial position
Total assets
As of March 31,
2016
As of March 31,
2015

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

384,753

215,58654.8

949.91

399,512215,63152.9

931.34

Reference: Equity:
As of March 31, 2016: 210,780 million yen%

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

-1-

Yen

[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) Consolidated cash flows

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at theend of the year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

47,599(34,847)(9,010)

6,832

34,006(26,767)(12,019)

3,491

Year ended March
31, 2016
Year ended March
31, 2015

2. Cash Dividends
Cash dividend per share

Record dateYear ended March
31, 2015
Year ended March
31, 2016
Year ending March
31, 2017 (Forecast)

Dividend
Total annual
payout ratio
cash
dividends
Year-end Full year
(Consolidated)

Ratio ofdividends to
net assets

1Q endInterim3Q end

Yen

Yen

Yen

Yen

Yen

Millions of yen%(Consolidated)
%

—

7.00

—

7.00

14.00

3,175

16.6

1.6

—

7.00

—

8.00

15.00

3,363

18.8

1.6

—

8.00

—

8.00

16.00

18.7

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.)

Operating income

Ordinary income

Net income
attributable toowners of parent%

Millions ofyen%Millionsof yen%Millions of
yen

%

Yen

135,000 (11.4)

13,500(18.3)

13,500(21.3)

9,000(17.8)

40.56

280,000

28,000(6.2)

28,000(12.9)

19,0005.1

85.63

Net sales
Millions ofyenInterim period
endingSeptember 30,
2016
Year ending
March 31, 2017
(Full year)

(5.3)

-2-

Net income
per share[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.

4. Other Matters(1) Significant changes of specified subsidiaries (Changes of Specified Subsidiaries Accompanied by Change in
Scope of Consolidation): None
(2) Changes in accounting principle, procedures and presentation on preparation of consolidated financial
statements(i) Changes in policy due to amendment in accounting standards: Yes(ii) Changes in policy other than above (i): No(iii) Changes in accounting estimates: No(iv) Restatements: No(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at the end of the year (Including treasury stock)
As of March 31, 2016: 237,075,556 shares
As of March 31, 2015: 242,075,556 shares(ii) Number of treasury stock
As of March 31, 2016: 15,179,841 shares
As of March 31, 2015: 15,286,593 shares(iii) Average number of shares outstanding in each year
Year ended March 31, 2016: 226,389,994 sharesYear ended March 31, 2015: 226,790,078 shares
Reference: Summary of Non-consolidated PerformanceNon-consolidated Performance for the Year ended March 31, 2016
(From April 1, 2015 to March 31, 2016)(Percentage figures respectively indicate changes from the previous year.)(1) Non-consolidated operating results
Net salesYear ended March
31, 2016
Year ended March
31, 2015

Operating income

Ordinary income%

Millions ofyen%Millions ofyen

197,698(7.7)

23,062(2.7)

214,224

4.6

23,705(6.9)

Millions ofyen

Net income per share
Year ended March 31, 2016
Year ended March 31, 2015

Year ended March 31, 2016
Year ended March 31, 2015%%

26,010(2.7)

13,283(25.2)

26,729(5.5)

17,768(3.3)

Fully diluted net income per share

Yen

Yen

58.67
78.35

58.58
78.21

(2) Non-consolidated financial position
Total assets

Net income
Millions ofyen

Net assets

Equity ratio

Millions of yen

Millions of yen%

Yen

310,533
330,472

171,312175,07055.1
52.9

770.89770.61

Reference: Equity
As of March 31, 2016: 171,058 million yen

Net assets per share

As of March 31, 2015: 174,766 million yen

Note regarding indication of status of implementation of the review procedure
The review of consolidated financial statements based on the Financial Instruments and Exchange Act had notbeen completed as of the date of disclosure of this 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.

-3-

[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, 2015)

Current fiscal year (As of
March 31, 2016)

4,151
70,970720
43,2994,393
13,54332,284
3,231
4,115
(95)
176,609

7,963
64,7081,308
47,462
3,732
12,53426,601
4,607
4,070
(79)
172,90742,45555,187
18,371
11,965
6,249
134,227

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

5,262
5,262

4,187
4,187

75,972
44
618
7,177
(397)
83,414
222,903399,51260,821
165
320
8,130
(302)
69,133211,846
384,753(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
Deferred tax assets
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
Net defined benefit asset
Deferred tax assets
Other investments and assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-4-[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, 2015)

Current fiscal year (As of
March 31, 2016)

60,466796
18,220
3,902
1,977
—

51,852
1,754
25,755
4,633
1,586
3,268

531
33,282
119,174

3,017
22,563
114,427

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

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

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

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

28,35017,713(0)
7,666(3,072)
32,943304
4,111
215,631399,512(3)
6,461(2,898)21,272
255
4,551
215,586
384,753(Liabilities)
Current liabilities
Notes and accounts payable—trade
Electronically recorded monetary claims
Short-term loans payable
Income taxes payable
Reserve for bonuses
Provision for loss on liquidation of subsidiaries
and associates
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
Net unrealized holding gain 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-5-[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
Previous fiscal year
(From April 1, 2014
to March 31, 2015)
307,524
224,887
82,63654,391
28,245Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Nonoperating income
Interest income
Dividend income
Foreign exchange gain
Miscellaneous income
Total nonoperating income
Nonoperating expenses
Interest expense
Foreign exchange loss
Depreciation from idle assets
Miscellaneous loss
Total nonoperating expenses
Ordinary income
Extraordinary gains
Compensation income
incomeGain on sale of fixed assets
Other
Total extraordinary gains
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Loss on liquidation of affiliates
Other
Total extraordinary losses
Income before income taxes
Income taxes—current
Income taxes—deferred
Total taxes
Net income
Net income attributable to owners of parent
Net income attributable to non-controlling interests-6-(Millions of yen)
Current fiscal year
(From April 1, 2015
to March 31, 2016)
295,647
208,460
87,18757,331
29,856

131
1,610
457
2,099
4,297

123
2,760
—
1,191
4,074

721
—
539
183
1,443
31,098

617
552
351
256
1,777
32,153

—
892
234
1,126

338
85
10
434

1,027
1,263
—
144
2,434
29,791
10,093282
10,375
19,416337
19,080

541
2,117
3,629
34
6,322
26,265
9,637(2,203)
7,433
18,831
752
18,079

[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-7-

Previous fiscal year
(From April 1, 2014
to March 31, 2015)
19,416

Previous fiscal year
(From April 1, 2015
to March 31, 2016)
18,831

13,439
1
5,583
(867)
18,157
37,573(10,761)(3)(1,343)
174(11,934)
6,897

36,881
692

6,407
490

[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.

(4) Consolidated Statements of Changes in Net Assets
Previous fiscal year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current period

Capital surplus

24,211Retained earnings

18,514

Cumulative effects of changes inaccounting policies

132,476

Treasury stock

Total shareholders’equity(12,734)

162,467(322)
24,211

Restated balance

18,514132,154(322)(12,734)

162,145

Changes of items during the period
Dividends from surplus(2,948)(2,948)

Profit attributable to owners of parent

19,08019,080Purchase of treasury stock

(3)

(3)

Net changes of items other thanshareholders’ equity——

16,131(3)

16,12824,211

18,514

148,285(12,737)

178,273

Total changes of items during the period
Balance at the end of current period

Accumulated other comprehensive income
Valuation
Deferreddifference on
gains or losses
available-foron hedges
sale securities
Balance at the beginning ofcurrent period

15,081(1)Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Subscription
rights tosharesNon-controllinginterests

2,261(2,205)

15,136

266

3,545

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets181,414(322)

15,081(1)

2,261(2,205)

15,136266

3,545

181,092

Changes of items during theperiodDividends from surplus(2,948)

Profit attributable toowners of parent

19,080(3)

Purchase of treasury stock
Net changes of items otherthan shareholders’ equity

13,269

1

5,404

(867)

17,80738

565

18,411

Total changes of items
during the period

13,269

1

5,404

(867)

17,80738

565

34,539Balance at the end of current
period28,350(0)

7,666(3,072)

32,943304

4,111

215,631-8-

[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.

Current fiscal year (From April 1, 2015 to March 31, 2016)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current
periodCapital surplus

24,211Retained earnings

18,514

148,285

Treasury stock

Total shareholders’equity(12,737)

178,273

Cumulative effects of changes inaccounting policies—
24,211

Restated balance

18,514

148,285(12,737)

178,273

Changes of items during the period
Dividends from surplus(3,176)(3,176)

Profit attributable to owners of parent

18,07918,079(9)

Disposal of treasury stock
Purchase of treasury stock
Retirement of treasury stock(4,066)

Transfer to Capital Surplus from
Retained Earnings

3,933

Change in treasury shares of parent
arising from transactions with
non-controlling shareholders

15

90

81

(3,764)(3,764)

4,066

—
—

(3,933)15

Net changes of items other thanshareholders’ equity

—

(127)

10,969392

11,23524,211

18,387

159,255(12,345)

189,508

Total changes of items during the period
Balance at the end of current period

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginning ofcurrent period

28,350

Deferred
gains orlosses onhedges(0)Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Subscription
rights tosharesNon-controllinginterests

7,666(3,072)

32,943304

4,111

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets215,631—

28,350(0)

7,666(3,072)

32,943304

4,111

215,631

Changes of items during theperiodDividends from surplus(3,176)

Profit attributable toowners of parent

18,079

Disposal of treasury stock

81

Purchase of treasury stock(3,764)Retirement of treasury
stock

—

Transfer to Capital Surplus
from Retained Earnings—

Change in treasury sharesof parent arising fromtransactions with
non-controllingshareholders

15

-9-

[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.

Net changes of items otherthan shareholders’ equity(10,637)(3)(1,205)

174(11,671)

(49)

440

(11,280)

Total changes of items
during the period(10,637)(3)(1,205)

174(11,671)

(49)

440

(45)

17,713(3)

6,461(2,898)21,272

255

4,551

215,586

Balance at the end of current
period-10-

[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) Cash Flow Statement

Net cash provided by operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Gain on goodwill
Increase (decrease) in reserve for repair
Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Subsidy income
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
Proceeds from subsidy
Income taxes paid
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
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments for investments in capital
Payments of loans receivableCollection of loans receivable
Net decrease (increase) in time deposits
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
Purchase of treasury shares
Cash dividends paid shareholders
Dividends paid to non-controlling interests
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-11-

Previous fiscal year
(From April 1, 2014
to March 31, 2015)(Millions of yen)
Current fiscal year
(From April 1, 2015
to March 31, 2016)

29,791
19,4391,263
670(1,104)—26,26520,904
2,117
670
1,566
3,399

733
(1,741)
721
(986)
1,036
1,819
(4,548)208
47,301
1,745
(714)
1,075
(15,401)
34,006(1,140)(2,883)
617
(369)
4,861
(3,085)(7,021)
8,792
54,693
1,906
(600)
200
(8,600)47,599(25,257)
1,139
(405)
(770)
(1,475)—(1,013)
918
392
(297)
(26,767)(29,200)
67
(709)
(869)
(1,030)(1,513)(2,879)
2,261
(533)
(442)
(34,847)

1,710
5,000
1,619
(17,172)—(3)(2,945)(34)(195)(12,019)154(4,626)
8,117
3,491

(3,023)(8,000)1,500(2,301)
10,000(3,765)(3,173)(33)(215)(9,010)
(400)
3,342
3,491
6,832

[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.

(6) Segment Information
a. Business segments
Previous fiscal year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Eliminations/
Consolidated
Corporate

Elastomer

Specialty
Materials

Sub Total

Other

Total

187,044

70,875257,919

49,605

307,524—

307,524

1,785

—

1,785

444

2,229

(2,229)—188,82970,875

259,704

50,049309,753(2,229)307,524

16,818196,1159,446
78,75426,264
274,870

2,017
26,91928,281
301,789(36)
97,72328,245399,512

8,902

8,144

17,046278

17,325

2,114

19,439Gain on goodwill

670

—

670

—

670

—

670

Capital expenditures

13,906

9,650

23,556355

23,911

4,605

28,516

Net sales
Sales to third parties
Intersegment sales andtransfers
Total
Operating income
AssetsOthersDepreciation and amortization

Current fiscal year (From April 1, 2015 to March 31, 2016)(Millions of yen)
Eliminations/
Consolidated
Corporate

Elastomer

Specialty
Materials

Sub Total

Other

Total

Sales to third parties
Intersegment sales andtransfers
Total

177,248

70,979248,227

47,420295,647—

295,647

1,691

—

1,691

530

2,222

(2,222)—

178,940

70,979249,918

47,950297,868(2,222)295,647

Operating income

20,725
193,560

8,221
80,91628,945
274,475

2,503
27,87331,448302,349(1,592)82,40429,856
384,753

9,693

8,569

18,262316

18,5782,326

20,904Gain on goodwill

670

—

670

—

670

—

670

Capital expenditures

15,665

7,521

23,186395

23,581

4,069

27,650Net sales

AssetsOthersDepreciation and amortizationb. Sales by region
Previous fiscal year (From April 1, 2014 to March 31, 2015)
Japan
150,178

North America
28,773

Europe35,622(Millions of yen)Asia
(except Japan)
89,807

Other

Asia(except Japan)
94,035

Other

Total
3,144

Current fiscal year (From April 1, 2015 to March 31, 2016)
Japan
137,791

North America
28,291

Europe32,016-12-

307,524(Millions of yen)
Total

3,514

295,647