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 Six Months Ended September 30, 2023
[Japanese GAAP]
November 9, 2023
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, Managing Executive Officer and Director
Phone: +81-3-3201-6681
Scheduled date of filing quarterly securities report: November 9, 2023
Scheduled date of commencing dividend payments: –Availability of supplementary briefing materials on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Scheduled (for analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 - September 30,
2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Million yen% Million yen% Million yen% Million yen%
September 30, 2023
8,083 (54.2)(6,194)–(2,487)–(2,611)–
September 30, 2022
17,642 (26.8)(4,464)–605 (84.8)
229 (93.3)(Note) Comprehensive income: Six months ended September 30, 2023: ¥(1,927) million [–%]
Six months ended September 30, 2022: ¥(1,049) million [–%]

Six months ended
September 30, 2023
September 30, 2022

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

(133.90)
11.75

–
–

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

76,304As of September 30, 2023
70,10678,825
As of March 31, 2023
72,034(Reference) Equity: As of September 30, 2023: ¥69,840 million
As of March 31, 2023: ¥71,746 million

91.5
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
15,874 (54.5)(8,611)–(3,511)(Note) Revision from the latest released financial results forecast : None%–

Million yen(2,442)%–

Yen(125.22)

* 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):
September 30, 2023:
19,577,071 shares
March 31, 2023:
19,577,071 shares2) Total number of treasury shares at the end of the period:
September 30, 2023:
75,313 shares
March 31, 2023:
75,035 shares
3) Average number of shares during the period:
Six months ended September 30, 2023:
Six months ended September 30, 2022:

19,501,943 shares
19,502,574 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 six months ended September 30, 2023 (the “period under review”), 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, the Japanese economy showed a gradual
recovery trend as corporate earnings and personal consumption remained steady.
As for overseas economies, while weaknesses were seen in some regions due to concerns about the effects
of severe real estate market conditions in China, global monetary tightening, the prolonged situation in
Ukraine, and the accelerating inflation, the employment and income environment remained steady, and theeconomies remained resilient despite some signs of challenges.
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, while the capacity utilization
rate has been improving due to expectations of economic recovery in China, the expectations preceded theweak movement of actual demand, and high inventory levels have been piling up. Moreover, intermittent
adjustments were evident in the overall market conditions, 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 reviewed 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, causing increasing production costs.
Nickel prices on the London Metal Exchange (LME) remained slightly weaker due to complex factors,
including delayed economic recovery in China, fluctuations in foreign exchange rates and financial and capital
markets, and the situation in Ukraine.
In this situation, the Company’s ferronickel sales volume decreased by 46.2% 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 11.0% year on year, while the average exchange rate of Japanese yen against U.S. dollar applicableto the Company was 6.6% weaker year on year. Moreover, in addition to the market prices applicable to theCompany, as mentioned previously, 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, the selling 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, and reinforcement of operational efficiency improvement measures to pursue cost minimization.
As a result, consolidated net sales for the period under review decreased by 54.2% year on year to ¥8,083
million. On the profit front, the Company posted operating loss of ¥6,194 million (compared with operating
loss of ¥4,464 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, andordinary loss was ¥2,487 million (compared with ordinary profit of ¥605 million for the same period of theprevious fiscal year), reflecting the recording of ¥2,827 million in share of profit of entities accounted for using
equity method under non-operating income. Loss attributable to owners of parent was ¥2,611 million
2

(compared with profit attributable to owners of parent of ¥229 million for the same period of the previous
fiscal year), including ¥138 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 55.6% year on year to ¥7,696 million with operating
loss of ¥6,147 million (compared with operating loss of ¥4,328 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 25.2% year on year to ¥430 million with operating lossof ¥43 million (compared with operating loss of ¥25 million for the same period of the previous fiscal year).
(iii) Other
The segment of other businesses recorded a loss because the real estate business had no sales contracts.
As a result, net sales in this segment were nil (compared with net sales of ¥28 million for the same periodof the previous fiscal year) with operating loss of ¥8 million (compared with operating loss of ¥114 million forthe same period of the previous fiscal year).

3(2) Explanation on Financial Position
Assets, liabilities, and net assets of the Group as of September 30, 2023 are as follows.
Total assets decreased by ¥2,521 million from the end of the previous fiscal year to ¥76,304 million.
Current assets decreased by ¥3,733 million from the end of the previous fiscal year mainly due to receipt
of a bonus incentive reward for reducing power consumption through participation in a winter-time powersaving campaign of our power supplier and a decrease in accounts receivable - other, in line with consumption
taxes refund receivable, and other factors.
Non-current assets increased by ¥1,211 million from the end of the previous fiscal year mainly due to therecording of share of profit of entities accounted for using equity method, and other factors, despite a decrease
in investment securities resulting from the sale of cross-shareholdings. Investment securities held by theCompany amounting to ¥26,661million consisted mainly of ¥17,722 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 ¥5,976 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 ¥593 million from the end of the previous fiscal year to ¥6,197 million.
Current liabilities decreased by ¥445 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 ¥148 million from the end of the previous fiscal year mainly due to adecrease in provision for restoration cost resulting from acceptance inspection of construction costs, and otherfactors.
Total net assets decreased by ¥1,927 million from the end of the previous fiscal year to ¥70,106 million.
Shareholders’ equity decreased by ¥2,611 million resulting from the recording of loss, and other factors.
Accumulated other comprehensive income increased by ¥705 million resulting from an increase in foreign
currency translation adjustment. Non-controlling interests decreased by ¥21 million.

4(3) Forward-looking Statements Including Consolidated Financial Results Forecast
With regard to the consolidated financial forecast, the economic outlook remains highly uncertain as theprolonged situation in Ukraine continues to affect the domestic and overseas economies, as well as due torecession fears against the background of the impact of cumulative monetary tightening in the U.S. and Europe
and a delayed economic recovery in China.
On the volume front of ferronickel products, the Company expects the environment to remain unchanged
and a decrease from the announced plan since the Company will strengthen volume control from theprofitability perspective.
In terms of profit and loss, on the selling price front of ferronickel products, the Company refers to theprice of nickel pig iron, which has a price advantage, in addition to the market prices applicable to theCompany, so the revenue growth 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 have a significant 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 October 5, 2023, 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 October 31, 2023.

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

20,885(7,089)(2,891)(3,246)(166.44)

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

Change (B–A)(5,011)(1,522)

(620)

804

Change (%)(24.0)

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

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

Net sales

Previously announced forecast (A)(Announced on August 2, 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 August 2, 2023)

3,330

4,870

8,200

3,428

3,540

6,968

Revised forecast

3,052

3,148

6,200

3,210

2,848

6,058

(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 August 2, 2023)

10.82

10.00

10.33

135.34134.10134.60

Revised forecast

10.78

9.27

10.01

140.18139.22139.69(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 September 30, 2023

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

17,104
6,820
1,700
7,936
267
4,874
1,812
(1)
40,514

8,383
239

8,384
291

25,518198
243(5)25,95434,57778,825

26,661266
192(5)
27,11435,78976,304

(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 September 30, 2023

760
1,018
7
95
657
2,539

622
1,029
46
163
232
2,094

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

55
2,068
631
5
1,273
43
26
4,103
6,197

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

13,922
3,481
47,929(452)
64,879

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

3,663
593
375
328
4,960
266
70,10676,304

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Six Months Ended September 30(Million yen)
For the Six months ended
September 30, 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
Foreign withholding tax
Other
Total non-operating expenses
Ordinary profit (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
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

9

For the Six months ended
September 30, 2023

17,642
20,885(3,243)

8,083
13,318(5,234)

437
783
1,220
(4,464)

176
783
960
(6,194)

6
237
51

11
174
53

3,699

2,827

1,056
86
5,137

691
33
3,791

0
–
31
36
67
605

0
32
25
25
83
(2,487)

0
386
386

–
138
138

76
76
915
518
177
696
219
(9)
229

1
1
(2,350)230
51
282(2,632)(21)(2,611)

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended September 30(Million yen)
For the Six months ended
September 30, 2022
Profit (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 Six months ended
September 30, 2023

219

(2,632)(1,937)
9

(200)
(19)

659

926

(1,269)(1,049)705(1,927)(1,040)(1,905)(9)(21)

(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