Disclaimer: This document is an English translation of the original Japanese document and has been preparedfor reference purposes only. In the event of any discrepancy between the English translation andthe original Japanese document, the latter shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
[Japanese GAAP]May 10, 2024
Company name: PACIFIC METALS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 5541
URL: https://www.pacific-metals.co.jp/en/
Representative: Masayuki Aoyama, President and Representative Director
Contact: Terunobu Matsuyama, Director and Managing Executive Officer
Phone: +81-3-3201-6681
Scheduled date of Annual General Shareholders Meeting: June 21, 2024
Scheduled date of filing securities report: June 21, 2024
Scheduled date of commencing dividend payments: –Availability of supplementary briefing materials on financial results: Not available
Schedule of financial results briefing session: Scheduled (for analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 - March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2024
15,521 (55.5)(9,114)–(2,119)–(1,074)–
March 31, 2023
34,852(39.0)(12,588)–(4,960)–(5,026)–(Note) Comprehensive income: Fiscal year ended March 31, 2024: ¥(2,972) million [–%]
Fiscal year ended March 31, 2023: ¥(5,095) million [–%]
Basic earnings
per share

Diluted earnings
Ordinary profit to Operating profit to
Return on equity
per share
total assets
net sales

Fiscal year ended
Yen
Yen
%
March 31, 2024
(55.10)–(1.5)
March 31, 2023
(257.75)–(6.6)(Reference) Share of profit of entities accounted for using equity method:
Fiscal year ended March 31, 2024: ¥6,053 million
Fiscal year ended March 31, 2023: ¥7,066 million(2) Consolidated Financial Position
Total assets
Million yen

Net assets

73,790
As of March 31, 2024
78,825
As of March 31, 2023
(Reference) Equity: As of March 31, 2024: ¥68,785 million
As of March 31, 2023: ¥71,746 million

Million yen

69,06072,034

%

(2.8)
(5.9)

Equity ratio%(58.7)(36.1)Net assets per share
%

93.2
91.0

Yen

3,527.21
3,678.90

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Fiscal year ended
March 31, 2024
March 31, 2023

2,793
(7,516)

2. Dividends
1stquarterend
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2025
(Forecast)

2,000
974

Annual dividends
2nd
3rd
Yearquarterquarterend
end
end

Cash and cash
equivalents at endof period

Million yen(5)(3,006)22,15817,248

Total

Total
dividends(annual)Payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)

Yen

Yen

Yen

Yen

Million yen

%

%

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

Yen

–

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 March 31, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentFirst half
Full year

Million yen%

6,641 (17.8)
13,994 (9.8)

Million yen(4,418)(6,838)%––Million yen(2,376)(2,903)%––

Million yen(2,514)(3,252)

%

–
–

Yen

(128.91)(166.76)

* Notes:(1) Changes in significant subsidiaries during the period under review: None
(Changes in specified subsidiaries resulting in changes in scope of consolidation)
Newly included: – (), Excluded: – ()(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Total number of shares issued and outstanding (common stock)1) Total number of shares issued and outstanding at the end of the period (including treasury shares):
March 31, 2024:
19,577,071 shares
March 31, 2023:
19,577,071 shares2) Total number of treasury shares at the end of the period:
March 31, 2024:
75,605 shares
March 31, 2023:
75,035 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:

19,501,793 shares
19,502,385 shares(Reference) Outline of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31,2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Operating profit
Net sales
Ordinary profit
Profit(loss)
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2024
14,752 (56.7)(9,051)–(4,231)–(3,000)–March 31, 2023
34,095 (39.7)(12,564)–(7,261)–(7,098)–

Fiscal year ended
March 31, 2024
March 31, 2023

Basic earnings
per share

Diluted earnings
per share
Yen

Yen(153.88)(364.01)––(2) Non-consolidated Financial Position
Total assets

Million yen

Net assets

Million yen

53,582
49,681
As of March 31, 2024
61,68955,411
As of March 31, 2023
(Reference) Equity: As of March 31, 2024: ¥49,681 million
As of March 31, 2023: ¥55,411 million

Equity ratio

%

92.7
89.8

Net assets per shareYen

2,547.58
2,841.32(Reasons for differences between non-consolidated business results and actual results for the previous fiscal year)
There was general variability in capacity utilization rates of production facilities in the stainless steel industry, theprimary source of demand for the nickel business. In addition, overseas producers of stainless steel are shiftingsome of their procurement to nickel pig iron, which has a price advantage even with the inclusion of production
costs, which is affecting the selling price of the Company’s products. For these reasons, with respect to ferronickel

sales volume, the Company changed its policy to control volumes strategically at a certain level so as not to impair
profitability. This resulted in a decline in net sales. Ordinary loss was recorded due mainly to the decrease in net
sales, despite the decrease in the amount of inventory write down and the recording of dividend income fromequity-method affiliates. Loss was also recorded, despite the recording of gain on sale of investment securities inextraordinary income.
* These financial results are outside the scope of audit by certified public accountants or an audit firm.
* Explanation on the proper use of financial results forecast and other notes(Cautionary statement regarding forward-looking statements)
The forward-looking statements including the financial results forecast contained herein are based on information
currently available to the Company, as well as certain assumptions deemed reasonable by the Company. As such,
the Company does not intend to guarantee the achievement of these forecasts. In addition, actual results may differ
significantly from these forecasts due to various factors. For preconditions for the financial results forecast andprecautions when using the financial results forecast, please see “(4) Future Outlook” under “1. Overview ofOperating Results, etc.” on page 6.

Table of Contents – Attachments
1. Overview of Operating Results, etc. ..................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review ..................................................... 2(2) Overview of Financial Position for the Fiscal Year under Review ..................................................... 4(3) Overview of Cash Flows for the Fiscal Year under Review............................................................... 5(4) Future Outlook................................................................................................................................. 6
2. Management Policy ............................................................................................................................. 7(1) Medium- to Long-term Management Strategy of the Company ........................................................ 7
3. Basic Policy on Selection of Accounting Standards .............................................................................. 7
4. Consolidated Financial Statements and Key Notes ............................................................................... 8(1) Consolidated Balance Sheets ............................................................................................................ 8(2) Consolidated Statements of Income and Comprehensive Income .................................................... 10
Consolidated Statements of Income........................................................................................... 10
Consolidated Statements of Comprehensive Income ................................................................. 11(3) Consolidated Statements of Changes in Equity ............................................................................... 12(4) Consolidated Statements of Cash Flows ......................................................................................... 14(5) Notes to Consolidated Financial Statements ................................................................................... 15(Notes on going concern assumption) ........................................................................................ 15(Segment information, etc.) ....................................................................................................... 15(Per share information) .............................................................................................................. 20(Significant subsequent events) ................................................................................................. 20
5. Other ................................................................................................................................................. 21(1) Changes of Officers, Etc. ............................................................................................................... 21(2) Other ............................................................................................................................................. 23

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2024, although the simultaneous occurrence of the high resource
prices and the appreciation of the U.S. dollar led to price hikes, and concerns about the impact on economic
activities and uncertainty remained, corporate earnings remained steady, and there was a moderate recovery of
the Japanese economy despite signs of standstill.
As for overseas economies, weaknesses were seen in some regions due to concerns about the effects ofsevere real estate market conditions in China, global monetary tightening, the increasing volatility of thesituations in the Middle East and Ukraine, and the still high inflation rate. While the employment and income
environment remained steady, the pace of economic recovery seemed to have slowed down somewhat.
Under these circumstances, in the stainless steel industry, the primary source of demand for the nickel
business that accounts for the majority of the Group’s sales and profit and loss, despite the high capacity
utilization rate in China, the expectations preceded the weak movement of actual demand, and high inventory
levels have been piling up. Moreover, intermittent adjustments were evident in some areas, and the capacity
utilization rates of production facilities generally remained varied and lacked momentum.
The demand for ferronickel continued to slow down since, in addition to the environment describedabove, overseas producers of stainless steel shifted some of their procurement to nickel pig iron, which has aprice advantage, and moreover, due to reviewing of the stainless steel scrap blending ratio with carbon
neutrality in mind.
On the procurement front, prices of nickel ore, the primary raw material for ferronickel products, havebeen high against the backdrop of a robust demand for nickel ore. Moreover, although there was some sign ofglobal prices of various raw materials and fuel settling down from their previous extremely high levels, theyremained elevated, which also kept production costs up.
Nickel prices on the London Metal Exchange (LME) remained slightly weaker due to complex factors,
including the slowdown of the Chinese economy, fluctuations in foreign exchange rates and financial andcapital markets, and the increasingly volatile situations in the Middle East and Ukraine.
In this situation, the Company’s ferronickel sales volume decreased by 51.4% year on year as a whole due
to a decrease in both domestic and overseas sales. The Company continued its policy with the objective ofstrategically controlling volume so as to secure a certain level of profitability, since the price of nickel pig iron,which has a price advantage mentioned above, is also affecting the selling price of the Company’s products.
The ferronickel production volume decreased year on year due to the policy of controlling sales volume.
Regarding the selling price of ferronickel products, the LME nickel price applicable to the Company
declined by 16.9% year on year, while the average exchange rate of the Japanese yen against the U.S. dollar
applicable to the Company was 6.8% weaker year on year. Moreover, in addition to the market prices
applicable to the Company, as mentioned previously, the selling price level of the Company’s ferronickel
products also partly referred to the price of nickel pig iron, resulting in the lowering of the selling price.
Therefore, the selling environment continued to be challenging, with stagnant revenue growth due to lower
selling prices compared to before.
Despite this harsh business environment, the Company is striving to thoroughly focus on the profitabilityof orders, thereby building a flexible production and sales system. Furthermore, the Company continues its
efforts to improve business performance and stabilize earnings through measures such as the early realizationof overseas business development and new business development, initiatives to reduce GHG emissions toachieve carbon neutrality, and reinforcement of operational efficiency improvement measures to pursue cost
minimization.
As a result, consolidated net sales for the fiscal year under review decreased by 55.5% year on year to¥15,521 million. On the profit front, the Company posted an operating loss of ¥9,114 million (compared withthe operating loss of ¥12,588 million for the previous fiscal year), owing to an increase in cost of sales due toan inventory write down following a downturn in profitability, on top of the decrease in net sales, and ordinary
loss was ¥2,119 million (compared with the ordinary loss of ¥4,960 million for the previous fiscal year),2reflecting the recording of ¥6,053 million in share of profit of entities accounted for using equity method under
non-operating income. Loss attributable to owners of parent was ¥1,074 million (compared with loss
attributable to owners of parent of ¥5,026 million for the previous fiscal year), including ¥2,638 million of gainon sale of investment securities included in extraordinary income and ¥977 million of impairment losses
included in extraordinary losses.
Operating results by business segment are as follows.
(i) Nickel business
The operating results of the nickel business are described in “(1) Overview of Operating Results.”
As a result, net sales in this segment decreased by 56.9% year on year to ¥14,727 million with anoperating loss of ¥9,082 million (compared with the operating loss of ¥12,441 million for the previous fiscal
year).
(ii) Gas businessIn the gas business, the recording of costs associated with facility repair resulted in recording a loss
despite stable operations.
As a result, net sales in this segment increased by 4.7% year on year to ¥811 million with an operating
loss of ¥14 million (compared with the operating profit of ¥4 million for the previous fiscal year).
(iii) Other
The segment of other businesses recorded a loss, despite concluding sales contracts in the real estatebusiness, because the sales proceeds failed to exceed costs such as administrative expenses.
As a result, net sales in this segment increased by 57.2% year on year to ¥61 million with an operating
loss of ¥26 million (compared with the operating loss of ¥160 million for the previous fiscal year).

3

Operating profit(loss)

Ordinary profit(loss)

Profit (loss)
attributable toowners of parent

34,852(12,588)(4,960)(5,026)

15,521(9,114)(2,119)(1,074)(55.5)–––Net sales
Fiscal year ended March 31, 2023
(Million yen)
Fiscal year ended March 31, 2024
(Million yen)
Change (%)

Sales volume (t)1st half

Production volume (t)2nd half

Full year

1st half

2nd half

Full year

Fiscal year ended March 31, 2023

5,668

6,725

12,393

8,079

5,301

13,380Fiscal year ended March 31, 2024

3,052

2,973

6,025

3,210

2,825

6,035

Applicable LME nickel price ($/lb)

Applicable exchange rate (¥/$)

1st half

1st half

2nd half

Full year

2nd half

Full year

Fiscal year ended March 31, 2023

12.12

11.11

11.57

131.49138.44135.26

Fiscal year ended March 31, 2024

10.78

8.42

9.62

140.18148.85144.46(2) Overview of Financial Position for the Fiscal Year under Review
Assets, liabilities, and net assets of the Group as of March 31, 2024 are as follows.
Total assets decreased by ¥5,035 million from the end of the previous fiscal year to ¥73,790 million.
Current assets decreased by ¥2,432 million from the end of the previous fiscal year mainly due to adecrease in raw materials and supplies resulting from cash flow optimization, a decrease in accounts receivable- other resulting from the receipt of a bonus incentive reward for reducing power consumption throughparticipation in a winter-time power-saving campaign of our power supplier and the refund of consumption
taxes receivable, and other factors, despite an increase in cash and deposits.
Non-current assets decreased by ¥2,602 million from the end of the previous fiscal year mainly due to adecrease in investment securities resulting from the sale of cross-shareholdings, a decrease in property, plantand equipment due to the recording of impairment losses, and other factors. Investment securities held by theCompany amounting to ¥23,687 million consisted mainly of ¥19,124 million in the amount reflected in the
consolidated balance sheet of shares of entities accounted for using equity method, ¥2,331 million in shares ofsubsidiaries and associates, and ¥1,583 million in shares of Nickel Asia Corporation, a holding company of theCompany’s equity-method affiliates listed on the Philippine Stock Exchange.
Total liabilities decreased by ¥2,062 million from the end of the previous fiscal year to ¥4,729 million.
Current liabilities decreased by ¥865 million from the end of the previous fiscal year primarily owing to
the settlement of notes and accounts payable - trade, and other factors.
Non-current liabilities decreased by ¥1,196 million from the end of the previous fiscal year mainly due toa decrease in deferred tax liabilities associated with the sale of cross-shareholdings, and other factors.
Total net assets decreased by ¥2,973 million from the end of the previous fiscal year to ¥69,060 million.
Shareholders’ equity decreased by ¥882 million resulting from the recording of loss, and other factors.
Accumulated other comprehensive income decreased by ¥2,077 million resulting mainly from a decrease invaluation difference on available-for-sale securities associated with the sale of cross-shareholdings. Noncontrolling interests decreased by ¥13 million.

4(3) Overview of Cash Flows for the Fiscal Year under Review
Net cash provided by operating activities amounted to ¥2,793 million, a ¥10,310 million increase in cash
inflow compared with the previous fiscal year. Main items for cash inflow were decrease (increase) ininventories amounting to ¥3,272 million and interest and dividends received amounting to ¥4,152 million.
Main items for cash outflow were share of profit of entities accounted for using equity method amounting to¥6,053 million and loss (gain) on sale of investment securities amounting to ¥2,638 million.
Net cash provided by investing activities amounted to ¥2,000 million, an increase of ¥1,026 million
compared with the previous fiscal year. The main item for cash inflow was proceeds from redemption of
securities amounting to ¥3,412 million. The main item for cash outflow was purchase of securities amounting
to ¥700 million.
Net cash used in financing activities amounted to ¥5 million, a ¥3,000 million decrease in cash outflow
compared with the previous fiscal year.
Net increase (decrease) in cash and cash equivalents increased by ¥14,293 million compared with thefigure for the previous fiscal year.
As a result, cash and cash equivalents at end of period amounted to ¥22,158 million, an increase of ¥4,909
million compared with the previous fiscal year.
The table below shows trends in cash flow indicators on a consolidated basis.
Fiscal year
Fiscal year
Fiscal year
Fiscal year
ended March ended March ended March ended March
31, 2020
31, 2021
31, 2022
31, 2023

Fiscal year
ended March
31, 2024

Equity ratio (%)

90.4

88.4

88.9

91.0

93.2

Equity ratio at market value(%)
Ratio of interest-bearing debt
to cash flows (year)

43.8

55.4

89.6

47.7

36.1

–

0.0

0.0

–

0.0

Interest coverage ratio (times)–

13,702.1

33,918.9–

4,097.53

Equity ratio: Shareholders’ equity / Total assets
Equity ratio at market value: Market capitalization / Total assets
Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest expenses(Notes) 1. The consolidated financial figures constitute the basis for calculating these indicators.
2. Market capitalization is calculated based on the number of shares issued and outstanding
excluding treasury shares.
3. The cash flows used for calculation are operating cash flows.
4. Interest-bearing debt includes all debts recorded on the consolidated balance sheets on whichinterest is paid.
5. Figures of the ratio of interest-bearing debt to cash flows and the interest coverage ratio for the
fiscal year ended March 31, 2020 and for the fiscal year ended March 31, 2023 are not indicatedbecause operating cash flows were negative.

5(4) Future Outlook
With regard to the consolidated financial forecast, the economic outlook has become even more uncertain
as the domestic and overseas economies continue to be affected by concerns of a downturn against the
backdrop of the problems in China’s real estate market conditions, the increasing volatility of the situations in
the Middle East and Ukraine, and the cumulative impact of monetary tightening in Europe, the United States,and elsewhere.
In terms of volumes of the Company’s ferronickel products, our forecast is for a harsh environment, as
there have been no major changes. As such, following on from the previous fiscal year, the Company willcontinue to implement its policy of controlling volumes from the perspective of profitability.
Regarding profit and loss, in terms of the selling price of ferronickel products, the forecast is for a pricelevel that partially refers to the price of nickel pig iron, which has a price advantage, in addition to the market
price applicable to the Company. On the procurement price front, the price of nickel ore, the primary raw
material for ferronickel products, and the prices of other raw materials, fuel and electricity are expected toremain at high levels. Accordingly, a significant impact on the price front is expected.
Although the circumstances remain severe, response measures to address such a business environment areconsistent with activities to be undertaken under the basic policies set forth in the Group’s Medium-termManagement Plan, and the Company will continue to strongly push forward with these measures.
The Group’s financial results forecast is follows.
Operating profit

Ordinary profit

Profit attributable toowners of parent

13,994(6,838)(2,903)(3,252)

15,521(9,114)(2,119)(1,074)

(9.8)

–

–

–

Net sales
Forecast for the fiscal year ending
March 31, 2025 (Million yen)
Results for the fiscal year ended
March 31, 2024 (Million yen)
Change (%)[Reference] Results for the fiscal year ended March 31, 2024 and underlying assumptions for the forecast for the
fiscal year ending March 31, 2025 are as follows.
Sales volume (T/Y)
Production volume (T/Y)
1st half
2nd half
Full year
1st half
2nd half
Full year
Forecast for the fiscal year ending
2,869
3,131
6,000
2,777
2,770
5,547
March 31, 2025
Results for the fiscal year ended
3,052
2,973
6,025
3,210
2,825
6,035
March 31, 2024

Forecast for the fiscal year ending
March 31, 2025
Results for the fiscal year ended
March 31, 2024

Applicable LME nickel price ($/lb)

Applicable exchange rate (¥/$)

1st half

1st half

2nd half

Full year

7.83

8.00

7.92

10.78

8.42

9.62

6

2nd half

Full year

139.28139.15139.21140.18148.85144.46

2. Management Policy(1) Medium- to Long-term Management Strategy of the Company
In order to establish a management platform capable of responding to changes in the businessenvironment and to achieve continuous growth, we established the long-term vision, “Become a world-classferronickel manufacturer with comprehensive power,” and endeavored to achieve this long-term vision.
However, the business environment surrounding the Company has become increasingly severe due to thematerialization of resource nationalism in the nickel ore-producing countries, changes in the market structureof mainstay products, and other factors. The situation is unpredictable due to soaring resource and energy
prices, etc., caused by the tense situation in Ukraine.
In this business environment, having positioned further strengthening of the platform, contributing to theSDGs, and becoming carbon neutral as important issues for the Company, we aim to evolve as a sustainable
company by building and developing a business structure based on problem-solving.
Based on the above, we have set forth a new long-term vision, “A comprehensive materials company thatco-creates a sustainable, recycling-oriented society,” and have formulated a medium-term business plan
covering the period from FY2022 to FY2024 (hereinafter, PAMCO-2024) to realize this vision.
(1) Long-term vision: “A comprehensive materials company that co-creates a sustainable, recyclingoriented society”(2) Theme of PAMCO-2024: “Further strengthen the platform and promote the sustainability strategy”(3) Materiality and Priority Measures (1) to 9))—Contribute to the achievement of the SDGs through the resolution of material issues—
Restructuring of ferronickel production and sales systems with emphasis on profitability
1) Establishment of optimal production system by reviewing production strategy
2) Strengthening of cost competitiveness by reviewing procurement strategy
Acceleration of consideration of expansion into overseas smelting business3) Promotion of overseas smelting projects and start-up of production
Creation of new businesses that contribute to society4) Promotion of production and sales of raw materials for LIB materials
Diversification of business in Japan to contribute to a recycling-oriented society5) Restructuring of recycling business
Enhancement of corporate value by addressing sustainability issues6) Sustainability Promotion Council—Promotion of medium- and long-term initiatives related to material sustainability issues—7) Reduction of GHG emissions
8) Promotion of symbiosis by contributing to the development of regions and resource-richcountries
9) Promotion of constructive dialogue with stakeholders

3. Basic Policy on Selection of Accounting Standards
The Group intends to prepare consolidated financial statements in conformity with the generally accepted
accounting principles in Japan (Japanese GAAP) for the time being, taking into consideration comparability ofconsolidated financial statements over time and comparability among companies.
With regard to adoption of the International Financial Reporting Standards (IFRS), the Group intends tomake an appropriate response, taking into consideration situations in Japan and abroad.
7

4. Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

8

As of March 31, 2024

16,848
6,593
1,500
8,204
361
5,836
4,904
(1)
44,24721,758
5,001
2,199
7,303
257
3,521
1,773
(1)
41,814

16,452(14,028)
2,424
56,527(55,674)
852
4,777
806
(477)
329
8,383
239

16,295(14,235)
2,059
56,525(55,580)
945
4,304
563
(485)
77
7,388
285

25,518198
243(5)25,95434,57778,82523,687476
142(5)24,301
31,97573,790(Million yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Accrued expenses
Income taxes payable
Provision for bonuses
Provision of restoration cost
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for environmental measures
Provision for loss contract
Provision of restoration cost
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

9

As of March 31, 2024

760
1,018
7
95
–
657
2,539

234
892
47
117
5
376
1,674

50
2,087
631
11
1,273
187
10
4,252
6,791

59
1,135
547
2
1,273
14
23
3,055
4,729

13,922
3,481
50,540(452)
67,491

13,922
3,481
49,658(452)
66,609

3,831
593
(510)
340
4,254
287
72,03478,825

1,183
400
179
412
2,176
274
69,06073,790(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year ended
March 31, 2023
Net sales
Cost of sales
Gross loss
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Rental income from real estate
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Rental expenses on facilities
Loss on disposal of inventories
Commitment fees
Commission for syndicated loans
Foreign withholding tax
Provision for environmental measures
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Received incentive
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Loss on retirement of inventories
Restoration expenses on facilities
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Profit (loss) attributable to non-controlling interests
Loss attributable to owners of parent

10

For the fiscal year ended
March 31, 2024

34,85245,144(10,292)

15,521
22,637(7,115)

852
1,443
2,296
(12,588)

344
1,653
1,998
(9,114)

13
459
103

24
229
107

7,066

6,053

–
160
7,803

696
73
7,183

0
4
18
–
26
4
64
34
22
175
(4,960)

0
–
15
31
27
53
33
13
13
188
(2,119)

0
386
854
1,241

7
2,638
–
2,646

–
115
34
418
567
(4,287)501
237
739(5,026)0(5,026)

977
160
–
–
1,137
(611)
390
85
476
(1,087)(13)(1,074)

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year ended
March 31, 2023
Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

11

For the fiscal year ended
March 31, 2024

(5,026)(1,087)(790)
101(2,728)
111

620

731

(68)
(5,095)(1,885)(2,972)(5,095)(2,959)0(13)

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period
Changes during period
Dividends of surplus
Loss attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve
for landNet changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Retainedearnings

Capital surplus

13,922

3,481

Treasury shares

58,590

(450)

Total
shareholders’equity75,542(3,022)(3,022)(5,026)(5,026)
(1)

(1)
–
–

–
13,922–
3,481(8,049)50,540(1)(452)(8,051)
67,491

Accumulated other comprehensive income
Valuationdifference on Revaluation
available-for- reserve for landsale securities

Balance at beginning of period

4,603

593

Foreigncurrencytranslation
adjustment

(969)

Total
NonRemeasurements accumulated controlling Total net
assetsof defined
otherinterests
benefit plans comprehensive
income

95

4,323

287

80,153

Changes during period
Dividends of surplus
Loss attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve forland
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period(3,022)(5,026)
(1)
–
–
(772)

–

458

245

(68)

0

(68)

(772)

–

458

245

(68)

0

(8,119)

3,831

593

(510)

340

4,254

287

72,03412

Fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of period
Changes during period
Dividends of surplus
Loss attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve
for landNet changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Retainedearnings

Capital surplus

13,922

3,481

Treasury shares

50,540

(452)

Total
shareholders’equity67,491–(1,074)(1,074)
(0)
0

(0)

(0)
0

192

–
13,922

–
3,481

(881)
49,658

192

(0)
(452)

(882)
66,609

Accumulated other comprehensive income
Valuationdifference on Revaluation
available-for- reserve for landsale securities

Balance at beginning of period

3,831

593

Foreigncurrencytranslation
adjustment

(510)

Total
NonRemeasurements accumulated controlling Total net
assetsof defined
otherinterests
benefit plans comprehensive
income

340

4,254

287

72,034

Changes during period
Dividends of surplus
Loss attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve forland
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period–(1,074)(0)0192(2,647)

(192)

690

71

(2,077)(13)(2,091)(2,647)

(192)

690

71

(2,077)(13)(2,973)

1,183

400

179

412

2,176

274

69,06013

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year ended
March 31, 2023
Cash flows from operating activities
Loss before income taxes
Depreciation
Impairment losses
Interest and dividend income
Share of loss (profit) of entities accounted for using equity
methodLoss on retirement of property, plant and equipment
Loss on retirement of inventories
Received incentive
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in provision for bonuses
Increase (decrease) in provision of restoration cost
Increase (decrease) in accrued expenses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for loss contract
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from redemption of securities
Purchase of intangible assets
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Other, net
Net cash provided by (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

14

For the fiscal year ended
March 31, 2024

(4,287)
289
–
(472)

(611)
350
977
(253)

(7,066)(6,053)

115
34
(854)
(386)
7,400
(2,711)
612

160
–
–
(2,638)
1,592
3,272
29

(1,477)

1,585

(580)
(239)
(348)
187
(743)
(107)
(90)
(33)
(2)
(707)
(11,472)
5,229–(1,273)(7,516)

(525)
(3)
21
(167)
(126)
8
(88)
–
(0)
1,040
(1,429)
4,152
(0)
71
2,793

–
527
(942)
1,600
(129)
(80)
974

(700)
3,412
(466)
–
(93)
(152)
2,000

(3,000)(5)(3,006)164(9,383)
26,631
17,248

(1)
(4)
(5)
121
4,909
17,24822,158(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The Company’s reportable segments are components of the Company for which separate financial
information is available and which are subject to periodic review by the Board of Directors in order todetermine the allocation of management resources and evaluate their performance.
The Company mainly produces and sells ferronickel products. For product production, a manufacturing
division, which forms the basis of the product production system, is located at the Hachinohe Head Office, andfor product sales, a sales division spanning the Hachinohe Head Office and the Tokyo Head Office is
responsible for formulating comprehensive sales strategies and conducting business development in Japan andabroad.
In addition, gases used in the product manufacturing process at the Hachinohe Head Office are purchasedfrom Pacific Gas Center Co., Ltd., which operates the gas business.
Therefore, the Company is composed of segments by product based on production and sales systems, with“nickel business” and “gas business” as reportable segments.
2. The method of calculating net sales, profit or loss, assets, liabilities, and other items by reportable segment
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Reportable segment
Other(Note 1)

Total

Amountrecorded in
Adjustment Consolidated(Note 2) Statementsof Income(Note 3)

NickelbusinessGasbusiness

Net sales to outside
customers
Intersegment sales ortransfer

34,135677

34,81338

34,852

─

34,852

0

97

97

─

97

(97)

─

Total

34,135774

34,91038

34,949(97)

34,852

Segment profit (loss)(12,441)4(12,437)(160)(12,597)9(12,588)

Segment assets

75,778597

76,376

2,527

78,904(78)

78,825Total

Net sales

Other items
Depreciation and
258
24
282
7
289
─
289
amortization
Investment in entities
accounted for using equity
18,250─
18,250355
18,606
─
18,606
methodIncrease in property, plantand equipment and
1,169
29
1,198
2
1,201
─
1,201
intangible assets
Notes: 1. “Other” corresponds to business segments, etc. that are not included in the reportable

15

segments and comprises the real estate business and the waste recycling business.
2. Adjustments are as follows.
(1) Adjustment to segment profit (loss) of ¥9 million includes intersegment elimination of ¥9million and other adjustments of ¥0 million.
(2) Adjustment of segment assets of ¥(78) million is intersegment elimination.
3. Segment profit (loss) is adjusted with operating loss in the consolidated statements ofincome.
For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)Amountrecorded in
Adjustment Consolidated(Note 2) Statementsof Income(Note 3)

Reportable segment
Other(Note 1)

Total

NickelbusinessGasbusiness

Net sales to outside
customers
Intersegment sales ortransfer

14,727732

15,46061

15,521

─

15,521

0

78

78

─

78

(78)

─

Total

14,727811

15,53861

15,600(78)

15,521

Segment profit loss

(9,082)(14)(9,097)(26)(9,123)9(9,114)

Segment assets

72,304574

72,879986

73,865(75)

73,790Depreciation andamortization

321

23

345

5

350

─

350

Impairment loss

977

─

977

─

977

─

977

Total

Net sales

Other items

Investment in entities
accounted for using equity
21,477
─
21,477
─
21,477
─
21,477methodIncrease in property, plantand equipment and
314
16
331
─
331
─
331
intangible assets
Notes: 1. “Other” corresponds to business segments, etc. that are not included in the reportablesegments and comprises the real estate business.
2. Adjustments are as follows.
(1) Adjustment to segment loss of ¥9 million includes intersegment elimination of ¥9 million
and other adjustments of ¥0 million.
(2) Adjustment of segment assets of ¥(75) million is intersegment elimination.
3. Segment loss is adjusted with operating loss in the consolidated statements of income.

16

3. Information on the amounts of net sales, profit or loss, assets, liabilities, and other items by reportable segment
and information on breakdown of revenue
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Reportable segment
Nickel business Gas business

Other(Note 1)

Total

Total

Japan

18,418677

19,09538

19,134South Korea

4,509

─

4,509

─

4,509

Taiwan

5,043

─

5,043

─

5,043

China

5,640

─

5,640

─

5,640

India

524

─

524

─

524

Revenue from contracts withcustomers

34,135677

34,81338

34,852

Revenue from other sources

─

─

─

─

─

34,135677

34,81338

34,852

Net sales to outside customers(Note) “Other” corresponds to business segments, etc. that are not included in the reportable segments andcomprises the real estate business and the waste recycling business.

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)
Reportable segment
Nickel business Gas business

Other(Note 1)

Total

Total

Japan

13,514732

14,24761

14,308

Taiwan

1,288

─

1,288

─

1,288

China (Note 2)

(75)

─

(75)

─

(75)

Revenue from contracts withcustomers

14,727732

15,46061

15,521

Revenue from other sources

─

─

─

─

─

14,727732

15,46061

15,521

Net sales to outside customers

Notes: 1. “Other” corresponds to business segments, etc. that are not included in the reportable segments andcomprises the real estate business.
2. Net sales in the fiscal year ended March 31, 2023 is due to changes to contract prices resulting fromthe fluctuation of LME nickel prices, etc.

17

[Related information]
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
1. Information by product/service
This information is omitted because the amount of net sales to outside customers in a single
product/service category exceeds 90% of the amount of net sales in the consolidated statement of income.
2. Information by geographical area
(1) Net sales(Million yen)
Japan

South Korea

19,134

Taiwan

4,509

China

5,043

5,640

India

Total
524

34,852

Note: Net sales are based on the location of customers and are classified by country or region.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment located in Japan exceeds
90% of the amount of property, plant and equipment in the consolidated balance sheet.

3. Information by major customer(Million yen)
Customer name

Net sales

Related segment nameNIPPON STEEL Stainless Steel Corporation

17,359 Nickel business

TISCO TRADING (H.K.) LTD

5,086 Nickel business

WALSIN LIHWA CORPORATION

5,043 Nickel business

POSCO

4,509 Nickel business

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)
1. Information by product/service
This information is omitted because the amount of net sales to outside customers in a single
product/service category exceeds 90% of the amount of net sales in the consolidated statement of income.
2. Information by geographical area
(1) Net sales(Million yen)Japan

Taiwan14,308Notes:

1.
2.

1,288

China (Note 2)
(75)

Total
15,521

Net sales are based on the location of customers and are classified by country or region.
Net sales in the fiscal year ended March 31, 2023 is due to changes to contract prices
resulting from the fluctuation of LME nickel prices, etc.
18

(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment located in Japan exceeds
90% of the amount of property, plant and equipment in the consolidated balance sheet.

3. Information by major customer(Million yen)
Customer name

Net sales

Related segment nameNIPPON STEEL Stainless Steel Corporation

12,011 Nickel business

WALSIN LIHWA CORPORATION

1,288 Nickel business[Information on loss on impairment of non-current assets]
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Not applicable.
For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)
Reportable segment
Nickel business Gas businessImpairment loss

977

Total
977

─

Corporate/elimination

Other
─

[Information on amortization of goodwill and unamortized balance by reportable segment]
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Not applicable.
For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)
Not applicable.
[Information on gain on bargain purchase by reportable segment]
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Not applicable.
For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)
Not applicable.

19

─

Total
977

(Per share information)
For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

Net assets per share¥3,678.90¥3,527.21

Basic loss per share¥(257.75)¥(55.10)Notes:

1.
2.

Diluted earnings per share is not presented for the current fiscal year because net loss per share
was recorded and because there are no dilutive shares.
The basis for calculation of net assets per share and the basis for calculation of basic loss per
share are as follows.

Basis for calculation of net assets per share
As of March 31, 2023
Total net assets in consolidated balance sheets(million yen)Amount deducted from total net assets (Million
yen)(of which non-controlling interests (Million
yen))
Net assets at end of period attributable to sharesof common stock (Million yen)
Number of shares of common stock at end of
period used for calculation of net assets per share(Thousand shares)

As of March 31, 2024

72,03469,060

287

274

(287)

(274)

71,746

68,785

19,502

19,501For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

(5,026)(1,074)――(5,026)(1,074)

19,502

19,501

Basis for calculation of basic earnings (loss) per share

Loss attributable to owners of parent (Million
yen)
Amount not attributable to common shareholders(Million yen)
Loss attributable to owners of parent relating toshares of common stock (Million yen)
Average number of shares of common stockduring period (Thousand shares)(Significant subsequent events)
Not applicable.

205. Other(1) Changes of Officers, Etc.
At the Board of Directors meeting held on May 10, 2024, the Company made an unofficial decision on thefollowing changes in officers, etc.
1) Candidates for Representative Director
Not applicable.
2) Changes of other officers⋅ New candidate for Auditor
Auditor (Outside)
Kyosuke Miyazaki⋅ Auditor scheduled to retire
Auditor (Outside)
Shuzo Ikeda⋅ Scheduled date of election
Scheduled for election at the 98th Annual General Shareholders Meeting on June 21, 2024

21

(Reference) Officers and Executive Officers from June 21, 2024
A. Directors
Name

Current Position

New Position

Masayuki Aoyama

President & Representative Director

As left

Yoshiharu Inomata

Director

As left

Kenichi Hara

Director

As left

Terunobu Matsuyama

Director

As left

Hiroaki Ichiyanagi

Director

As left

Kazuo Iwadate

Director

As left

Shinya Matsumoto

Outside Director (part-time) (Independent Officer)

As left

Hikari Imai

Outside Director (part-time) (Independent Officer)

As left

Yukari Sakai

Outside Director (part-time) (Independent Officer)

As left

B. Auditors
Name

Current Position

New Position

Kiichi Tatsunaka

Permanent Auditor (Full-time)

As leftKen Yasuda

Outside Auditor (part-time) (Independent Officer)

As left

Yutaka Iimura

Outside Auditor (part-time) (Independent Officer)

As left–

Outside Auditor (part-time)(Independent Officer)

Kyosuke Miyazaki

C. Executive Officers
Name
Yoshiharu Inomata
Kenichi Hara

Terunobu Matsuyama

Hiroaki Ichiyanagi

Kazuo Iwadate

Chitaru Okamura
Satoshi Kawabata
Tomoyuki Matsumura
Tetsuji Kimura

Current Position
Senior Managing Executive Officer, Assistant to the
President, In charge of Corporate Planning,
Recycling Business
Managing Executive Officer, In charge ofProcurement, General Manager of Sales &Marketing Dept.
Managing Executive Officer, In charge of Internal
Control, IR, General Administration, Finance &Accounting, General Manager of Personnel & Labor
Relation Dept.
Senior Executive Officer, In charge of Quality
Control & Environmental Management, General
Manager, Resources & Technology Development
Project Dept.
Senior Executive Officer, In charge of Safety &Health Management, Utility & Maintenance andProduction, General Manager of Business Process
Reengineering Dept.
Senior Executive Officer, General Manager,
Corporate Planning Dept.
Senior Executive Officer, General Manager,
Procurement Dept.
Executive Officer, General Manager, Recycling
Business Dept.
Executive Officer, General Manager, Production
Dept.

22

New Position
As left
As left

As left

As left

As left

As left
As left
General Manager, Recycling
Business Dept.
As left(2) Other
Not applicable.

23