[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, 2020
Consolidated Financial Flash Report for theYear Ended March 31, 2020
Name of Listed Company ZEON CORPORATION
Ticker Code 4205
(URL http://www.zeon.co.jp)
Listed Stock Exchanges
Representative
President
Name Kimiaki Tanaka
Contact
Director and Corporate Officer
Name Kazuyoshi Matsuura
Scheduled Date of the General Shareholders Meeting: June 26, 2020
Scheduled Date of the Submission of the Securities Report: June 26, 2020
Scheduled Date of Dividend Payments: From June 29, 2020

Tokyo Stock Exchange
TEL: +81-3-3216-2747

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

1. Consolidated Performance for the Year Ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(1) Consolidated operating results(Percentage figures respectively indicate year-over-year changes from the same period of the previous fiscal year.)Net sales
Millions of yen

Year ended
March 31, 2020
Year ended
March 31, 2019
Notes:%

Operating income

Ordinary income

Net income
attributable toowners of parent

Millions of yen

Millions of yen%

Millions of yen%%

321,966 (4.6)

26,104 (21.2)

28,744 (20.9)

20,201

9.4

337,499

33,147 (14.7)

36,319 (11.2)

18,45841.4

1.4

Comprehensive income:Year ended March 31, 2020: 5,810 million yen (down 29.4%);
Year ended March 31, 2019: 8,224 million yen (down 57.6%)

Net income per
share
Year ended
March 31, 2020
Year ended
March 31, 2019

Fully diluted net
income per share

Return on
equityOrdinary
income tototal assets

Operatingincome to
sales

Yen

Yen

%

%

%

92.44

92.30

7.9

6.9

8.1

84.06

83.94

7.2

8.4

9.8

Reference: Share of (profit) loss of entities accounted for using equity method:Year ended March 31, 2020: 116 million yen
Year ended March 31, 2019: 235 million yen(2) Consolidated financial position
Total assets
As of March 31,
2020
As of March 31,
2019

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

405,131

260,358

63.5

1,176.87

424,937

259,15660.3

1,172.40

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

As of March 31, 2019: 256,167 million yen-1-[Translation for reference only]
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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

28,430(24,570)(8,276)30,19840,393(21,426)(23,575)

34,846

Year ended March
31, 2020
Year ended March
31, 2019

2. Cash Dividends
Cash dividend per share

Record date1Q endInterim3Q end

Yen

Yen

Yen

Year-end Full year
Yen

Yen

Total annual
cash
dividends

Dividend
payout ratio(Consolidated)

Millions of yen%

Year ended March
—
9.00
—
10.00
19.00
4,151
22.6
31, 2019
Year ended March
—
11.00
—
10.00
21.00
4,590
22.7
31, 2020
Year ending March
—
—
—
—
—
—
31, 2021 (Forecast)
Note: The forecast of cash dividends for the year ending March 31, 2021 has yet to be determined.

Ratio ofdividends to
net assets(Consolidated)
%

1.6
1.8

3. Projected Consolidated Performance for the Year Ending March 31, 2021
(From April 1, 2020 to March 31, 2021)

The projected consolidated performance for the year ending March 31, 2021 has yet to be determined due tothe difficulty of rationally calculating how the COVID-19 pandemic will affect the company’s business
operations and performance; however, it will be promptly disclosed when it becomes available.

-2-

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4. Other Matters(1) Material changes in subsidiaries during this period (changes in scope of consolidations resulting from change
in subsidiaries): No(2) Changes in accounting principle, procedures and presentation on preparation of consolidated financial
statements(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(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, 2020: 237,075,556 shares
As of March 31, 2019: 237,075,556 shares(ii) Number of treasury stock
As of March 31, 2020: 18,515,473 shares
As of March 31, 2019: 18,577,060 shares(iii) Average number of shares outstanding in each year
Year ended March 31, 2020: 218,541,188 sharesYear ended March 31, 2019: 219,582,485 shares
Reference: Summary of Non-consolidated PerformanceNon-consolidated Performance for the Year ended March 31, 2020
(From April 1, 2019 to March 31, 2020)(Percentage figures respectively indicate changes from the previous year.)(1) Non-consolidated operating results
Net salesYear ended March
31, 2020
Year ended March
31, 2019

Operating income

Ordinary income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

214,977(4.0)

19,268(12.3)

26,023(5.6)

19,59490.8

223,848

2.2

21,973(21.1)

27,573(14.7)

10,270484.0

Net income per share
Year ended March 31, 2020
Year ended March 31, 2019Year ended March 31, 2020
Year ended March 31, 2019

Fully diluted net income per share

Yen

Yen

89.66
46.77

89.53
46.70

(2) Non-consolidated financial position
Total assets

Net income

Net assets

Equity ratio

Millions of yen

Millions of yen%

Yen

326,723
350,230

194,240
192,77159.4
55.0

887.43880.90

Reference: Equity
As of March 31, 2020: 193,957 million yen

Net assets per share

As of March 31, 2019: 192,475 million yen

The financial flash report is not subject to auditing procedures by certified public accountants or auditing
firms.
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-

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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. 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 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, 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-

Previous fiscal year
(As of March 31, 2019)

Current fiscal year
(As of March 31, 2020)

37,53474,823
3,529
52,494
3,832
14,79935,6754,631(80)
227,238

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

39,35433,334
18,255
8,323
3,057
102,323

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

3,197
3,197

3,669
3,669

81,10344
801
10,460(229)
92,179197,700
424,937

62,118
21
2,713
7,618
(245)
72,224
190,684
405,131

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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
Electronically recorded monetary claims
Short-term loans payable
Income taxes payable
Provision for bonuses
Other provisions
Other current liabilities
Total current liabilities
Long-term liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Other provisions
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 (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-5-Previous fiscal year
(As of March 31, 2019)

Current fiscal year
(As of March 31, 2020)

78,862
3,552
12,125
6,894
2,216
4,059
22,331130,039

62,926
2,765
10,960
2,999
1,919
3,035
27,807
112,410

10,0002,000
5,107
12,373771
5,491
35,742
165,781

10,000—758
12,704
1,744
7,156
32,363
144,773

24,211
19,240204,767(17,238)
230,981

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

24,117(0)2,629(1,560)25,187
296
2,693
259,156
424,937

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

[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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange loss
Depreciation of inactive non-current assets
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of investment securities
Gain on sales of non-current assets
Other
Total extraordinary gains
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Impairment loss
Other
Total extraordinary losses
Income before income taxes
Income taxes—current
Income taxes for prior periods
Income taxes—deferred
Total taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent-6-

Previous fiscal year
(From April 1, 2018
to March 31, 2019)337,499
240,757
96,742
63,59533,147(Millions of yen)
Current fiscal year
(From April 1, 2019
to March 31, 2020)
321,966
230,055
91,91165,807
26,104

146
2,338
83
235
1,092
3,894

165
2,848
—
116
684
3,813

200
—
177
346
723
36,319

139
663
172
199
1,173
28,744

8
13
0
22

2
3
—
5

642
—
8,606
49
9,297
27,044
9,485
(359)
(879)
8,247
18,797338
18,458

539
707
—
22
1,268
27,480
7,392
—
(261)
7,130
20,350148
20,201

[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
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-7-

Previous fiscal year
(From April 1, 2018
to March 31, 2019)18,797

Current fiscal year
(From April 1, 2019
to March 31, 2020)
20,350(9,654)1(1,343)448(25)(14,091)
(0)
(154)
(421)
126

(10,573)
8,224(14,540)
5,810

7,958
266

5,571
239

[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, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current
periodRetainedearnings

Capital surplus

24,211

19,240190,273

Treasury stock

Total shareholders’equity(12,245)

221,480

Changes of items during the period
Dividends from surplus(3,965)(3,965)

Profit attributable to owners of parent

18,45818,458(0)

Disposal of treasury stock
Purchase of treasury stock

7

7(5,001)(5,001)

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of current period—(0)14,494(4,993)

9,501

24,211

19,240204,767(17,238)

230,981

Accumulated other comprehensive income

Balance at the beginningof current period

Valuationdifference on
availablefor-salesecurities

Deferred
gains(losses) onhedges

33,771(2)

Total
RemeasureForeign
accumulated
ments ofcurrency
otherdefinedtranslation
comprehenadjustment benefit plans
sive income

3,925(2,008)35,687

Subscription
rights toshares246

Noncontrollinginterests

2,527

Total net
assets259,940

Changes of items during
the period
Dividends from surplus(3,965)

Profit attributable toowners of parent

18,458

Disposal of treasury
stock

7

Purchase of treasury
stock(5,001)

Net changes of items
other than shareholders’equity(9,654)

1(1,296)448(10,500)

50

166(10,285)

Total changes of items
during the period(9,654)

1(1,296)448(10,500)

50

166

(784)

Balance at the end ofcurrent period

24,117(0)2,629(1,560)25,187

296

2,693

259,156-8-

[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, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current
periodRetainedearnings

Capital surplus

24,211

19,240204,767

Treasury stock

Total shareholders’equity(17,238)

230,981

Changes of items during the period
Dividends from surplus(4,589)(4,589)Profit attributable to owners ofparent20,201

20,201

12

Disposal of treasury stock
Purchase of treasury stock

58

70

(1)

(1)

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of current period—

12

15,612

57

15,681

24,211

19,252

220,379(17,181)

246,662

Accumulated other comprehensive income

Balance at the beginningof current period

Valuationdifference on
availablefor-salesecurities

Deferred
gains(losses) onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

24,117(0)2,629(1,560)

Total
Subscription
accumulated
rights toothersharescomprehensive income

25,187296

Noncontrollinginterests

2,693

Total net
assets259,156

Changes of items during
the period
Dividends from surplus(4,589)Profit attributable toowners of parent

20,201

Disposal of treasury
stock

70

Purchase of treasury
stock

(1)

Net changes of items
other than shareholders’equity(14,091)

(0)

(119)

(421)

(14,631)

(13)

165

(14,479)

Total changes of items
during the period(14,091)

(0)

(119)

(421)

(14,631)

(13)

165

1,202

Balance at the end ofcurrent period

10,027(1)

2,511(1,981)

10,556283

2,858

260,358-9-

[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.

(5) Cash Flow Statement(Millions of yen)

Net cash provided by operating activities
Income before income taxes and minority interests
Depreciation and amortization
Gain on goodwill
Increase (decrease) in provision for repair
Interest and dividends income
Interest expenses
Loss (gain) on disposal of non-current assets
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
Proceeds from insurance income
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
Purchase of long-term prepaid expenses
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
Repayment of long-term loans payable
Redemption 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-10-Previous fiscal year
(From April 1, 2018
to March 31, 2019)

Current fiscal year
(From April 1, 2019
to March 31, 2020)

27,044
18,78041
1,419(2,483)
200
629
8,606
—
48
(7,760)(916)
1,911
47,518
2,561
(219)
501
(10,387)419
40,39327,48017,448—(34)(3,014)
139
536
—
707
6,617
(2,204)(16,401)
5,504
36,779
2,997
(132)
—
(11,451)
238
28,430(12,041)(733)(7,388)(218)(2,096)
2,283
(859)
(373)
(21,426)(21,788)(1,347)(1,345)(642)(4,568)
4,469
947
(295)
(24,570)(1,407)(2,971)(10,000)(5,001)(3,959)(82)(155)(23,575)(338)(4,946)
39,791
34,846(3,165)——(1)(4,587)(34)(489)(8,276)(232)(4,648)34,84630,198

[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, 2018 to March 31, 2019)(Millions of yen)

Specialty
Elastomer
Materials

Sub Total

Other

Total

195,93185,142

281,073

56,426

337,499—

337,499

Adjustment Consolidated

Net sales
Sales to third parties
Intersegment sales and transfers

2,156

—

2,156

308

2,463

(2,463)—

Total

198,087

85,142283,229

56,733339,962(2,463)

337,499

Operating income

17,691

16,11533,8072,786

36,593(3,446)33,147

Assets209,089

89,402

298,491

32,907331,398

93,539424,937

8,864

6,793

15,657302

15,9582,822

18,780

41

—

41

—

41

—

41

1,943

—

1,943

—

1,943

—

1,943

5,744

6,234

11,978359

12,3372,303

14,640

OthersDepreciation and amortization
Gain on goodwill
Investments in entities accounted
for using equity method
Increase in property, plant andequipment and intangible assets

Current fiscal year (From April 1, 2019 to March 31, 2020)(Millions of yen)

Specialty
Elastomer
Materials

Sub Total

Other

Total

176,956

91,749268,705

53,262321,966—

321,966

1,892

—

1,892

211

2,103

(2,103)—

178,847

91,749270,596

53,473324,069(2,103)321,966

Adjustment Consolidated

Net sales
Sales to third parties
Intersegment sales and transfers
Total
Operating income
Assets

9,642

17,311

26,953

2,098

29,052(2,948)

26,104

189,618

101,425

291,044

31,193322,236

82,895405,131

8,432

6,089

14,520312

14,832

2,616

17,448

—

—

—

—

—

—

—

2,156

—

2,156

—

2,156

—

2,156

7,792

17,96525,75795

25,852

3,236

29,088OthersDepreciation and amortization
Gain on goodwill
Investments in entities accounted
for using equity method
Increase in property, plant andequipment and intangible assets

b. Sales by region
Previous fiscal year (From April 1, 2018 to March 31, 2019)Japan
150,003

North America
29,759Europe34,214Asia(except Japan)
119,104(Millions of yen)
Other

Total
4,419

Current fiscal year (From April 1, 2019 to March 31, 2020))
Japan
142,303

North America
26,075

Europe32,355-11-

Asia(except Japan)
117,620

337,499(Millions of yen)

Other

Total
3,613

321,966