January 31, 2022
To whom it may concern,
Company name:Representative:

Contact:

PACIFIC METALS CO., LTD.
Aoyama Masayuki, President
and Representative Director(Securities code: 5541 TSE 1stSection)
Matsuyama Terunobu,
Managing Executive Officerand Director(Telephone: +81-3-3201-6681)

Notice Concerning Recording of Non-operating Income (Share of Profit of Entities Accounted
for Using Equity Method), Revisions to Financial Results Forecast, and Revisions to Dividend
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, 2021 (April 1, 2021 through December 31, 2021). The Company also announces that, in light of the mostrecent performance trends, it has decided to revise the financial results forecast for the fiscal year ending
March 31, 2022 (April 1, 2021 through March 31, 2022) announced on October 29, 2021.
● Details of non-operating income (share of profit of entities accounted for using equity method)
The Company plans to record share of profit of entities accounted for using equity method of 4,934
million yen for the nine months ended December 31, 2021 due to strong performance of entities accounted
for using equity method in the Philippines supported primarily by strong demand.
● Revisions to financial results forecast
1. Revisions to consolidated financial results forecast for the fiscal year ending March 31, 2022 (April 1,2021 through March 31, 2022)
ProfitBasic
Operating
Ordinary
attributable toNet sales
earnings perprofit
profitowners ofshareparent
Previously announced forecast (A)Million yen

Million yen

Million yen

Million yen

Yen(Announced on October 29, 2021)

51,840

213

4,321

3,712

190.33

Revised forecast (B)54,713

2,722

9,913

8,455

433.52

Change (B–A)

2,873

2,509

5,592

4,743

5.5

─

129.4

127.8

32,217(493)

3,344

1,162

Change (%)(Reference) Actual results for theprevious fiscal year ended March
31, 2021

59.61

2. Reason for revisions
With regard to the consolidated financial results forecast, the economic outlook remains highly
uncertain as COVID-19 continues to affect the domestic and overseas economies.
1On the sales volume front, the forecast remains unchanged from the previously announced figures
because the stainless steel industry, which is the primary source of demand for the nickel business, isperforming well on the whole, despite variations among operations in Japan and overseas.
On the selling price front, the LME nickel price applicable to the Company, which is used as anindicator for determining the selling price of the Company’s ferronickel products, is expected to remain
firm reflecting tight supply and demand balance in addition to expectations for economic measures aimed
at economic recovery in each country.
On the procurement front, production costs are expected to be affected mainly by persistently higher
prices of nickel ore, fuels, and other raw materials, while the volume of nickel ore will be secured to meetproduction needs.
Although the COVID-19 impact is expected to continue during the current consolidated fiscal year,
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-term Management Plan, and the Company willcontinue 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.”(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.

● Revisions to dividend forecast
1. Details of revisions
Annual dividends
Firstquarter-end

Secondquarter-end

Thirdquarter-endPrevious forecast(Announced on October 29, 2021)

Yen

Yen

Yen

YenYen─

──

35.00

55.00

Revised forecast───

110.00130.00

Actual results for the current fiscalyear

─

20.00

Actual results for the previous fiscalyear (Fiscal year ended March 31,2021)

─0.00

─

20.00

20.00

Year-endTotal

2. Reason for revisions
With regard to dividends of surplus, the Company has positioned the return of profits to shareholders as
one of the important management issues in its medium-term management plan. The Company will aim toachieve a consolidated dividend payout ratio of 30% while enhancing and strengthening its corporate
structure.
As a result of revisions to the consolidated financial results forecast, the Company has revised the year-end
dividend forecast to 110 yen and the dividend forecast for the full year to 130 yen, in accordance with theabove dividend policy.

2

(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

halfyearhalf

halfyearhalf

half

year

half

half

year

Previously
announced
forecast(October 29,2021)

12,957

14,04327,00011,874

14,28026,154

8.12

8.32

8.22

109.16108.06108.59

Revisedforecast

12,957

14,04327,00011,874

14,652

26,526

8.12

8.83

8.49

109.16111.61110.43(Reference)
Actual results
for theprevious fiscal
year ended
March 31,2021

9,674

11,11920,793

9,374

9,040

18,414

5.94

7.07

6.54

106.06104.47105.213