April 28, 2022
To whom it may concern,
Company name:
Representative:

Contact:

PACIFIC METALS CO., LTD.
Aoyama Masayuki, President
and Representative Director(Securities code: 5541
TSE Prime Market)
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 and Foreign Exchange Gains) 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 and foreign exchange gains under non-operating income for thefiscal year ended March 31, 2022 (April 1, 2021 through March 31, 2022). The Company also announces that,in light of the most recent performance trends, it has decided to revise the financial results forecast for the fiscalyear ended March 31, 2022 (April 1, 2021 through March 31, 2022) announced on January 31, 2022.
● 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 6,483
million yen for the fiscal year ended March 31, 2022 due mainly to strong performance of entities accounted
for using equity method in the Philippines supported primarily by strong demand.
● Details of non-operating income (foreign exchange gains)With respect to valuation of receivables and payables denominated in foreign currencies, the Company
plans to record foreign exchange gains of 1,311 million yen for the fiscal year ended March 31, 2022 that aremainly attributable to gains on valuation of foreign currency-denominated receivables primarily because ofdepreciation of the yen in foreign exchange markets.
● Revisions to financial results forecast
1. Revisions to consolidated financial results forecast for the fiscal year ended March 31, 2022 (April 1, 2021
through March 31, 2022)
ProfitBasic
Operating
Ordinary
attributable toNet sales
earnings per
profitprofitowners ofshareparent
Million yen

Million yen

Million yen

Million yen

Yen(Announced on January 31, 2022)

54,713

2,722

9,913

8,455

433.52

Revised forecast (B)57,1294,806

12,99911,368582.93

Change (B–A)

2,4162,084

3,086

2,913

4.4

76.6

31.1

34.5

32,217(493)

3,344

1,162

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

159.61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.
On the sales volume front, the forecast remains mostly unchanged from the previously announced
figures because the stainless steel industry, which is the primary source of demand for the nickel business,is performing well, 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 an indicator for determining the selling
price of the Company’s ferronickel products, is expected to exceed the previously announced price due tofirm nickel demand in line with the economic recovery in various countries and reflecting the tense
situation in Ukraine. On the procurement front, production costs are expected to be affected mainly bypersistently higher prices of nickel ore, fuels, and other raw materials, while the volume of nickel ore will
be secured to meet production needs. Moreover, as described in “Details of non-operating income (shareof profit of entities accounted for using equity method)” and in “Details of non-operating income (foreignexchange gains)” above, the Company plans to record share of profit of entities accounted for using
equity method and foreign exchange gains.
Although the COVID-19 impact is expected to continue during the fiscal year ending March 31, 2023,
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.

(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

half

half

year

half

half

year

half

half

year

Previously
announced
forecast(January 31,2022)

12,957

14,04327,00011,874

14,652

26,526

8.12

8.83

8.49

109.16111.61110.43

Revisedforecast

12,957

14,10327,06011,874

14,37526,2498.12

9.33

8.75109.16

113.97111.67(Reference)
Actual results
for the previous
fiscal year
ended March
31, 2021

9,674

11,11920,793

9,374

9,040

18,414

5.94

7.07

6.54

106.06104.47105.212