February 2, 2024

To whom it may concern,
Company name:
Representative:

Contact:

PACIFIC METALS CO., LTD.
Masayuki Aoyama, President
and Representative Director(Securities code: 5541
TSE Prime Market)
Terunobu Matsuyama,
Director and Managing
Executive Officer(Telephone: +81-3-3201-6681)

Notice Concerning Recording of Non-operating Income (Share of Profit of Entities Accountedfor Using Equity Method) and Revisions to Financial Results Forecast
PACIFIC METALS CO., LTD. (the “Company”) hereby announces that it has recorded share of profit ofentities accounted for using equity method under non-operating income for the nine months ended December
31, 2023 (April 1, 2023 through December 31, 2023). The Company also announces that, in light of the mostrecent performance trend, it has decided to revise the consolidated financial results forecast for the fiscal year
ending March 31, 2024 (April 1, 2023 through March 31, 2024) announced on October 31, 2023.
● Details of non-operating income (share of profit of entities accounted for using equity method)
For the nine months ended December 31, 2023, the Company expects to record share of profit ofentities accounted for using equity method of 1,719 million yen due mainly to strong performance ofentities accounted for using equity method in the Philippines supported by strong demand, in addition to
the 2,827 million yen already recorded, for a total expected share of profit of entities accounted for using
equity method of 4,546 million yen.
● Revisions to financial results forecast
1. Revisions to consolidated financial results forecast for the fiscal year ending March 31, 2024 (April 1,2023 through March 31, 2024)
ProfitBasic
attributable toOperating
Ordinary
earnings per
Net sales
owners ofprofit
profitshareparent
Million yen

Million yen

Million yen

Million yen

Yen(Announced on October 31, 2023)

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

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

Change (B–A)

(288)

(129)

269

1,304

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

(1.8)

－－－

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

Previously announced forecast (A)1(257.75)

2. Reason for revisions
With regard to the consolidated financial results forecast, the protracted situation in Ukraine continues
to affect the Japanese and overseas economies. The concerns over an economic recession primarily
against the backdrop of the cumulative effects of monetary tightening in the U.S., Europe and otherregions, as well as the real estate crisis in China, have made the economic outlook even more uncertain.
On the volume front of the Company’s ferronickel products, the environment in which the Company
operates has remained largely unchanged. Accordingly, the Company has continued with the policy ofcontrolling volume from the viewpoint of profitability and expects results to be lower than the previously
announced forecast.
In terms of profit and loss, on the selling price front of ferronickel products, the Company also partiallyrefers to the price of nickel pig iron, which has a price advantage over ferronickel products, in addition to
the applicable LME nickel price in setting the selling price of the Company’s products. Therefore,
income was restrained to a certain extent. Moreover, on the procurement front, prices of nickel ore, whichis the main raw material, continue to remain high, as do the prices of raw materials, fuel and electricity.
These and other factors are expected to have a significant impact.
In other areas, regarding a write-down of inventories, while the Company expects to record additional
write-down of inventories for the first half, a reversal is expected to occur in the second half because of areduction in the write-down amount. Therefore, the earnings trend is expected to differ for the first half
and the second half. In addition, as announced in the “Notice Concerning Recording of ExtraordinaryIncome (Gain on Sale of Investment Securities)” dated January 18, 2024, the Company expects to record
a gain on sale of investment securities under extraordinary income.
Although the situation remains challenging, response measures against such 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.
Accordingly, the consolidated financial results forecast has been revised as described above. For theunderlying assumptions, please refer to “(Reference) Revisions to underlying assumptions,” on thefollowing page.
(Note) 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. Actual
results may differ significantly from these forecasts due to various factors.

(Reference) Revisions to underlying assumptions
Sales volume (t)Production volume (t)Applicable LME nickel priceApplicable exchange rate($/lb)

(¥/$)

1st

2nd

Full

1st

2nd

Full

1st

2nd

Full

1st

2nd

Full

half

half

year

halfhalf

year

half

half

year

half

half

year

3,052

3,148

6,200

3,210

2,848

6,058

10.78

9.27

10.01

140.18139.22139.69

Revisedforecast

3,052

2,998

6,050

3,210

2,805

6,015

10.78

8.43

9.61

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

5,668

6,725

12,393

8,079

5,301

13,380

12.12

11.11

11.57

131.49138.44135.26

Previously
announced
forecast(October 31,2023)

2