July 29, 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 Revisions to Financial Results Forecast and Revisions to Dividend Forecast
PACIFIC METALS CO., LTD. (the “Company”) hereby announces that, in light of the most recent
performance trends in the three months ended June 30, 2022 (April 1, 2022 through June 30, 2022), it hasdecided to revise the financial results forecast and dividend forecast for the six months ending September 30,2022 (April 1, 2022 through September 30, 2022) and for the fiscal year ending March 31, 2023 (April 1, 2022
through March 31, 2023) announced on May 10, 2022.
● Revisions to financial results forecast
1. Revisions to consolidated financial results forecast for the six months ending September 30, 2022 (April 1,2022 through September 30, 2022)
ProfitBasic
Operating
Ordinary
attributable toNet sales
earnings perprofit
profitowners ofshareparent
Million yen

Million yen

Million yen

Million yen

Yen(Announced on May 10, 2022)

25,164

735

2,101

1,856

95.17

Revised forecast (B)25,068

(78)

2,705

2,294

117.62

Change (B–A)

(96)

(813)

604

438

Change (%)(Reference) Actual results for thesix months ended September 30,2021

(0.4)

–

28.7

23.6

24,098

952

3,995

3,405

Previously announced forecast (A)

174.61

2. Revisions to consolidated financial results forecast for the fiscal year ending March 31, 2023 (April 1,2022 through March 31, 2023)
ProfitBasicOperatingOrdinary
attributable toNet sales
earnings perprofit
profitowners ofshareparent
Million yen

Million yen

Million yen

Million yen

Yen(Announced on May 10, 2022)

50,210

925

3,844

3,513

180.13

Revised forecast (B)60,744(1,516)

2,508

2,167

111.11

Change (B–A)

10,534(2,441)(1,336)(1,346)21.0–(34.8)(38.3)

57,1294,806

12,99911,368Previously announced forecast (A)Change (%)(Reference) Actual results for theprevious fiscal year ended March
31, 2022

1582.93

3. Reason for revisions
With regard to the consolidated financial results forecast, the economic outlook remains highly
uncertain as the COVID-19 pandemic and the situation in Ukraine continue to affect the domestic andoverseas economies.
Regarding volumes, the production volume has been affected by an electric furnace molten material
leakage incident that occurred at one of the three ferronickel manufacturing facilities shortly before theend of the previous fiscal year. On the sales front, the business environment has become more uncertain
owing to the impact of restrictions on economic activity in China in response to the resurgence ofCOVID-19 cases and concerns about the prolonging of the situation in Ukraine. Although production andsales activities are expected to be challenging, the sales volume forecast remains unchanged from thepreviously announced figures. Regarding restoration of the electric furnace whose operation has beensuspended owing to the leakage incident, production is scheduled to resume in the third quarter ending
December 31, 2022.
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
unstable albeit at a relatively high level, reflecting financial and capital market fluctuations, complex
factors associated with the tension in Ukraine, concerns about the impact of accelerating inflation, andother factors attracting a great deal of attention in the market.
On the procurement front, the Company expects to secure nickel ore sufficient to meet production needs.
However, a great increase in production costs due to persistently higher prices of nickel ore, fuels, andother raw materials is expected to have a great impact on profitability.
Moreover, for the three months ended June 30, 2022, the Company forecasts a recording of ¥1,197
million in share of profit of entities accounted for using equity method and ¥731 million in foreignexchange gains.
With respect to profit/loss information, for the six months ending September 30, 2022, although
operating profit is expected to decrease due to sharp increases in prices of nickel ore, fuels, and other raw
materials, profit attributable to owners of parent is expected to increase, reflecting the recording of shareof profit of entities accounted for using equity method and foreign exchange gains.
For the fiscal year ending March 31, 2023, surges in prices of nickel ore, fuels, and other raw materials
are expected to continue and the Company forecasts decreases in each profit, despite recording of share ofprofit of entities accounted for using equity method.
Although the impact of the COVID-19 pandemic and the impact associated with the situation in
Ukraine are expected to continue during the fiscal year ending March 31, 2023, response measures toaddress 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 will continue to strongly pushforward 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.”2

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

Secondquarter-end

Thirdquarter-end

Yen

Yen

Yen

Yen

Yen

–

0.00

–

50.00

50.00

Revised forecast–0.00

–

35.00

35.00

Actual results for the current fiscal
year–

Actual results for the previous fiscal
year ended March 31, 2022

–

20.00

–

155.00175.00Previous forecast(Announced on May 10, 2022)

Year-end

Total

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 35 yen for the full year, consisting of a year-end dividend of 35 yen per share, inaccordance with the above dividend policy.
(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(May 10,2022)

9,850

10,65020,5009,237

11,573

20,810

10.27

9.23

9.73

111.06111.04111.05

Revisedforecast

8,516

11,98420,500

9,008

11,573

20,581

11.92

11.00

11.38

122.46119.03120.46(Reference)
Actual results
for the previous
fiscal year
ended March
31, 2022

12,957

14,10327,06011,874

14,37526,249

8.12

9.33

8.75

109.16113.97111.673