October 29, 2021
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 six months ended September
30, 2021 (April 1, 2021 through September 30, 2021). The Company also announces that, in light of the mostrecent performance trends, it has decided to revise the financial results forecast for the six months ended
September 30, 2021 (April 1, 2021 through September 30, 2021) and for the fiscal year ending March 31,2022 (April 1, 2021 through March 31, 2022) announced on July 30, 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 2,642
million yen for the six months ended September 30, 2021 due to strong performance of entities accounted forusing equity method in the Philippines supported primarily by strong demand.
● Revisions to financial results forecast
1. Revisions to consolidated financial results forecast for the six months ended September 30, 2021 (April 1,2021 through September 30, 2021)
ProfitBasic
Operating
Ordinary
attributable toNet sales
earnings perprofit
profitowners ofshareparentMillion yen

Million yen

Million yen

Million yen

Yen(Announced on July 30, 2021)

23,599

(265)

1,520

1,157

59.32

Revised forecast (B)24,098

952

3,995

3,405

174.61

Change (B–A)

499

1,217

2,475

2,248

Change (%)(Reference) Results for the six
months ended September 30, 2020

2.1

─

162.9

194.3

13,262(53)

1,293

1,260

Previously announced forecast (A)164.62

2. Revisions to consolidated financial results forecast for the fiscal year ending March 31, 2022 (April 1,2021 through March 31, 2022)
ProfitBasicOperating
Ordinary
attributable toNet sales
earnings perprofit
profitowners ofshareparentMillion yen

Million yen

Million yen

Million yen

Yen(Announced on July 30, 2021)

46,591

(843)

2,106

1,685

86.40

Revised forecast (B)51,840

213

4,321

3,712

190.33

Change (B–A)

5,249

1,056

2,215

2,027

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

11.3

─

105.2

120.3

32,217(493)

3,344

1,162

Previously announced forecast (A)

59.61

3. Reason for revision
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 stainless steel industry, which is the primary source of demand for thenickel business, is expected to achieve more sales than those in the previously announced forecast
because operations in Japan and overseas are recovering.
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 remainfirm reflecting 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-end

Previous forecast(Announced on May 11, 2021)

Yen

Yen

Yen

YenYen

─

0.00

─

15.00

15.00

Revised forecast

─

──

35.00

55.00

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

──

20.00

20.00

Year-end

Total

20.00

0.00
2

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 thedividend forecast to 55 yen for the full year, consisting of an interim dividend of 20 yen per share and ayear-end dividend of 35 yen per share, in accordance with the above dividend policy.
(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(July 30, 2021)

13,047

12,95326,00011,46913,54125,010

7.94

7.58

7.76

107.61106.40107.01

Revisedforecast

12,957

14,04327,00011,874

14,28026,154

8.12

8.32

8.22

109.16108.06108.59(Reference)
Actual results
for theprevious fiscal
year ended
March 31,2021

9,674

11,11920,793

9,374

9,040

18,414

5.947.07

6.54

106.06104.47105.213