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 Nine Months Ended December 31, 2023
[Japanese GAAP]
February 9, 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 filing quarterly securities report: February 9, 2024
Scheduled date of commencing dividend payments: –Availability of supplementary briefing materials on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2023 (April 1, 2023 – December 31,
2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Nine months ended Million yen% Million yen% Million yen% Million yen%
December 31, 2023
11,926 (56.7)(8,236)–(3,095)–(1,964)–
December 31, 2022
27,518 (33.8)(6,718)–(580)–(1,195)–(Note) Comprehensive income: Nine months ended December 31, 2023: ¥(2,590) million [–%]
Nine months ended December 31, 2022: ¥(2,113) million [–%]

Nine months ended
December 31, 2023
December 31, 2022

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

(100.75)(61.32)––(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

74,622As of December 31, 2023
69,44278,82572,034As of March 31, 2023
(Reference) Equity: As of December 31, 2023: ¥69,168 million
As of March 31, 2023: ¥71,746 million

92.7
91.0

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen

Yen

Yen

Yen

Yen

–

0.00

0.00

0.00

0.00

Fiscal year ended–
0.00
March 31, 2023
Fiscal year ending–
0.00
March 31, 2024
Fiscal year ending
March 31, 2024
(Forecast)(Note) Revision from the latest released dividends forecast : None

Year-endTotal–

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31,
2024)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentMillion yen% Million yen% Million yen

Full year
15,586 (55.3)(8,740)–(3,242)(Note) Revision from the latest released financial results forecast : None%–

Million yen(1,138)%–Yen(58.35)

* 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) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None
(3) 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
(4) 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):December 31, 2023:
19,577,071 shares
March 31, 2023:
19,577,071 shares2) Total number of treasury shares at the end of the period:
December 31, 2023:
75,401 shares
March 31, 2023:
75,035 shares
3) Average number of shares during the period:
Nine months ended December 31, 2023:
Nine months ended December 31, 2022:

19,501,868 shares
19,502,471 shares* These quarterly consolidated financial results are outside the scope of quarterly review 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, theCompany 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 “(3) Forward-looking Statements Including Consolidated
Financial Results Forecast” under “1. Qualitative Information on Quarterly Financial Results” on page 5.

Table of Contents – Attachments
1. Qualitative Information on Quarterly Financial Results ........................................................................ 2(1) Explanation on Operating Results .................................................................................................... 2(2) Explanation on Financial Position .................................................................................................... 4(3) Forward-looking Statements Including Consolidated Financial Results Forecast............................... 5
2. Quarterly Consolidated Financial Statements and Key Notes ................................................................ 7(1) Quarterly Consolidated Balance Sheets ............................................................................................ 7(2) Quarterly Consolidated Statements of Income and Comprehensive Income ...................................... 9(3) Notes to Quarterly Consolidated Financial Statements .................................................................... 11(Notes on going concern assumption) ........................................................................................ 11(Notes on significant changes in the amount of shareholders’ equity) ......................................... 111

1. Qualitative Information on Quarterly Financial Results(1) Explanation on Operating Results
During the nine months ended December 31, 2023 (the “period under review”), although corporate
earnings and personal consumption remained steady, the recovery of the Japanese economy was moderate, as
the simultaneous occurrence of the high resource prices and the appreciation of the U.S. dollar led to pricehikes and concerns about the impact on economic activities and uncertainty remained.
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 prolonged situation in Ukraine,and the remaining high level of 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 due to expectations of economic recovery in China, the expectations preceded the weak
movement of actual demand, and high inventory levels have piled up. Intermittent adjustments were also
evident in some parts, and the capacity utilization rates of production facilities generally remained varied andlacked 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, prices of various raw materials
and fuel remained high due to the steep rise in resource prices globally, keeping production costs high.
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 situation in Ukraine.
In this situation, the Company’s ferronickel sales volume decreased by 52.7% 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 to a certain level so as not to impair 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
mentioned above.
Regarding the selling price of ferronickel products, the LME nickel price applicable to the Company
declined by 12.1% year on year, while the average exchange rate of the Japanese yen against the U.S. dollar
applicable to the Company was 5.1% 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 lowering its selling price. Therefore, theselling environment continued to be challenging, with stagnant revenue growth due to lower selling prices
compared to before.
Despite the rapidly evolving business environment, the Company is striving to thoroughly focus on the
profitability of 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
realization of overseas business development and new business development, initiatives to reduce GHG
emissions to achieve carbon neutrality, and reinforcement of operational efficiency improvement measures topursue cost minimization.
As a result, consolidated net sales for the period under review decreased by 56.7% year on year to¥11,926 million. On the profit front, the Company posted operating loss of ¥8,236 million (compared with
operating loss of ¥6,718 million for the same period of the previous fiscal year), owing to an increase in cost of
sales due to an inventory write down following a downturn in profitability, on top of the decrease in net sales,2and ordinary loss was ¥3,095 million (compared with ordinary loss of ¥580 million for the same period of theprevious fiscal year), reflecting the recording of ¥4,546 million in share of profit of entities accounted for using
equity method under non-operating income. Loss attributable to owners of parent was ¥1,964 million(compared with loss attributable to owners of parent of ¥1,195 million for the same period of the previous
fiscal year), including ¥1,538 million of gain on sale of investment securities included in extraordinary income.
Operating results by business segment are as follows.
(i) Nickel business
The operating results of the nickel business are described in “(1) Explanation on Operating Results.”
As a result, net sales in this segment decreased by 58.1% year on year to ¥11,301 million with operating
loss of ¥8,196 million (compared with operating loss of ¥6,559 million for the same period of 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 8.2% year on year to ¥626 million with operating lossof ¥24 million (compared with operating loss of ¥8 million for the same period of 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 59.3% year on year to ¥61 million with operating lossof ¥22 million (compared with operating loss of ¥157 million for the same period of the previous fiscal year).

3(2) Explanation on Financial Position
Assets, liabilities, and net assets of the Group as of December 31, 2023 are as follows.
Total assets decreased by ¥4,203 million from the end of the previous fiscal year to ¥74,622 million.
Current assets decreased by ¥3,481 million from the end of the previous fiscal year mainly due to adecrease in accounts receivable - other resulting from the receipt of a bonus incentive reward for reducing
power consumption through participation in a winter-time power-saving campaign of our power supplier andthe refund of consumption taxes receivable, and other factors.
Non-current assets decreased by ¥721 million from the end of the previous fiscal year mainly due to adecrease in investment securities resulting from the sale of cross-shareholdings, and other factors. Investment
securities held by the Company amounting to ¥24,608 million consisted mainly of ¥17,931 million in theamount reflected in the consolidated balance sheet of shares of entities accounted for using equity method,¥2,331 million in shares of subsidiaries and associates, and ¥3,753 million in shares of Nickel Asia
Corporation, a holding company of the Company’s equity-method affiliates listed on the Philippine Stock
Exchange.
Total liabilities decreased by ¥1,611 million from the end of the previous fiscal year to ¥5,179 million.
Current liabilities decreased by ¥859 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 ¥752 million from the end of the previous fiscal year mainly due to adecrease in deferred tax liabilities associated with the sale of cross-shareholdings, and other factors.
Total net assets decreased by ¥2,591 million from the end of the previous fiscal year to ¥69,442 million.
Shareholders’ equity decreased by ¥1,945 million resulting from the recording of loss, and other factors.
Accumulated other comprehensive income decreased by ¥631 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) Forward-looking Statements Including Consolidated Financial Results Forecast
With regard to the consolidated financial results forecast, the economic outlook remains highly uncertain
as the prolonged situation in Ukraine continues to affect the domestic and overseas economies, as well as due
to recession fears against the background of the impact of cumulative monetary tightening mainly in the U.S.
and Europe and the real estate problem in China.
On the volume front of the Company’s ferronickel products, the Company expects a decrease from theannounced plan, since the environment has remained largely unchanged and the Company has been continuing
the policy of volume control from the profitability perspective.
In terms of profit and loss, on the selling price front of ferronickel products, the Company also partly
refers to the price of nickel pig iron, which has a price advantage, in addition to the market prices applicable to
the Company, so the revenue is restrained to a certain extent. On the procurement front, prices of nickel ore,the primary raw material, and the prices of raw materials, fuel, and electricity remain at high levels and are
expected to continue to have an impact.
In addition, regarding the write-down of inventories, while an additional amount was recorded in the first
half, the reversal amount will be recorded in the second half due to a decrease in the inventory write-down. As
a result, the profit and loss trend is expected to differ between the first and the second half of the fiscal year.
Moreover, as announced in “Notice Concerning Recording of Extraordinary Income (Gain on Sale ofInvestment Securities)” dated January 18, 2024, the Company expects to record gain on sale of investment
securities under extraordinary income.
Although these challenging conditions persist, response measures to address such business environment
are consistent 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.
Based on the above, the Company revised its consolidated financial results forecast as follows and also
reviewed underlying assumptions, as announced in “Notice Concerning Recording of Non-operating Income(Share of Profit of Entities Accounted for Using Equity Method) and Revisions to Financial Results Forecast,”
dated February 2, 2024.

5

<Reference>[Revisions to financial results forecast]
Revisions to consolidated financial results forecast for the fiscal year ending March 31, 2024 (April 1, 2023
through March 31, 2024)
Operating profit

Ordinary profit

Million yen

Million yen

Million yen

Profitattributable toowners ofparentMillion yen

15,874(8,611)(3,511)(2,442)(125.22)

15,586(8,740)(3,242)(1,138)(58.35)

Change (B–A)

(288)

(129)

269

1,304

Change (%)

(1.8)

－

－

－

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

Net sales

Previously announced forecast (A)(Announced on October 31, 2023)
Revised forecast (B)(Reference) Actual results for theprevious fiscal year ended March
31, 2023

Basic earnings
per share
Yen(257.75)[Revisions to underlying assumptions]
Sales volume (t)1st half

2nd half

Production volume (t)Full year

1st half

2nd half

Full year

Previously announced forecast(Announced on October 31, 2023)

3,052

3,148

6,200

3,210

2,848

6,058

Revised forecast

3,052

2,998

6,050

3,210

2,805

6,015

(Reference) Actual results for theprevious fiscal year ended March
31, 2023

5,668

6,725

12,393

8,079

5,301

13,380Applicable LME nickel price ($/lb)
1st half

2nd half

Applicable exchange rate (¥/$)

Full year

1st half

2nd half

Full year

Previously announced forecast(Announced on October 31, 2023)

10.78

9.27

10.01

140.18139.22139.69

Revised forecast

10.78

8.43

9.61

140.18146.29143.21(Reference) Actual results for theprevious fiscal year ended March
31, 2023

12.12

11.11

11.57

131.49138.44135.266

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly 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
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

7

As of December 31, 2023

16,848
6,593
1,500
8,204
361
5,836
4,904
(1)
44,247

20,150
5,189
1,699
7,283
251
4,297
1,895
(1)
40,766

8,383
239

8,508
300

25,518198
243(5)25,95434,57778,82524,608277
166(5)25,04633,856
74,622

(Million yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Accrued expenses
Income taxes payable
Provision for bonuses
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

8

As of December 31, 2023

760
1,018
7
95
657
2,539

324
908
24
43
379
1,680

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

56
1,472
623
5
1,273
43
24
3,499
5,179

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

13,922
3,481
48,595(452)
65,545

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

2,377
573
344
326
3,622
274
69,442
74,622

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended December 31(Million yen)
For the Nine months ended
December 31, 2022
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
Loss on disposal of inventories
Commitment fees
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
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on retirement of inventories
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Loss attributable to non-controlling interests
Loss attributable to owners of parent

9

For the Nine months ended
December 31, 2023

27,51832,463(4,944)

11,926
18,708(6,781)

663
1,110
1,773
(6,718)

260
1,193
1,454
(8,236)

8
459
77

16
228
80

5,600

4,546

28
106
6,280

328
45
5,245

0
–
19
63
30
27
142
(580)

0
31
21
33
–
18
104
(3,095)

0
386
386

7
1,538
1,546

101
34
135
(329)
494
373
868
(1,197)(1)(1,195)13–
13(1,563)386
29415(1,978)(13)(1,964)

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31(Million yen)
For the Nine months ended
December 31, 2022
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

10

For the Nine months ended
December 31, 2023

(1,197)(1,978)(1,539)13(1,539)
(22)

609

949

(915)
(2,113)(612)(2,590)(2,111)(2,576)(1)(13)

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.

11