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, 2021
[Japanese GAAP]
November 10, 2021
Company name: PACIFIC METALS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 5541
URL: https://www.pacific-metals.co.jp/en/
Representative: Aoyama Masayuki, President and Representative Director
Contact: Matsuyama Terunobu, Managing Executive Officer and Director
Phone: +81-3-3201-6681
Scheduled date of filing quarterly securities report: November 10, 2021
Scheduled date of commencing dividend payments: December 6, 2021
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, 2021 (April 1, 2021 - September
30, 2021)(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, 2021
24,098
81.7
952
–
3,995
208.8
3,405
170.2
September 30, 2020
13,262 (39.9)
(53)
–
1,293
15.3
1,260
24.0
(Note) Comprehensive income: Six months ended September 30, 2021: ¥3,894 million [80.0%]
Six months ended September 30, 2020: ¥2,164 million [18.1%]

Six months ended
September 30, 2021
September 30, 2020

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

174.61
64.62––(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

77,56070,517
As of September 30, 2021
75,484As of March 31, 2021
67,014(Reference) Equity: As of September 30, 2021: ¥70,227 million
As of March 31, 2021: ¥66,737 million

Equity ratio
%

90.5
88.4

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen

Yen

Yen

Year-end

Fiscal year ended–
0.00–
March 31, 2021
Fiscal year ending–
20.00
March 31, 2022
Fiscal year ending
March 31, 2022–
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Total
Yen

Yen

20.00

20.00

35.00

55.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 March 31, 2022)(% 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
51,840 60.9
213–
4,321 29.2
(Note) Revision to the financial results forecast announced most recently: None

Million yen%

3,712 219.3

Yen

190.33

* 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: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
For more details, please see “Changes in accounting policies” in (3) Notes to Quarterly Consolidated Financial
Statements” under “2. Quarterly Consolidated Financial Statements and Key Notes” on page 10.
(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, 2021:
19,577,071 shares
March 31, 2021:
19,577,071 shares2) Total number of treasury shares at the end of the period:
September 30, 2021:
74,115 shares
March 31, 2021:
73,791 shares
3) Average number of shares during the period:
Six months ended September 30, 2021:
Six months ended September 30, 2020:

19,503,140 shares
19,504,287 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(Notes on 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,
the Company 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” onpage 4.

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 ................................4
2. Quarterly Consolidated Financial Statements and Key Notes ...................................................................6(1) Quarterly Consolidated Balance Sheets ................................................................................................6(2) Quarterly Consolidated Statements of Income and Comprehensive Income ........................................8(3) Notes to Quarterly Consolidated Financial Statements .......................................................................10(Notes on going concern assumption) ............................................................................................10(Notes on significant changes in the amount of shareholders’ equity) ...........................................10(Changes in accounting policies)....................................................................................................10

1

1. Qualitative Information on Quarterly Financial Results(1) Explanation on Operating Results
During the six months ended September 30, 2021 (the “period under review”), the Japanese economy
continued to face an uncertain situation with the pace of economic recovery still slow. Despite a recovery ineconomic activities as contrasted with a certain period in the past, the impact of COVID-19 continued,
resulting in the declaration of the state of emergency or other relevant measures being issued in many areas. As
such, personal consumption and employment environment remained weak due to various behavioral
restrictions and other factors.
As for overseas economies, although there are signs of recovery in the employment and income
environment in some countries partly due to stimulus measures aimed at economic normalization and theprogress in vaccination, the economic recovery varies from country to country depending on the severity of the
impact of the COVID-19 pandemic. Furthermore, amid the continuing sense of uncertainty associated with theeconomic policy management of the new U.S. administration, the development of trade policies between the
U.S. and China, the impact of financial and capital market fluctuations, and geopolitical risks in the Middle
East, the overall economic outlook remained highly uncertain.
Under these circumstances, 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, remained firm with a strong
capacity utilization of production facilities. This is because demand picked up in line with trends towards thenormalization of economic activities, although a sense of uncertainty remained over the impacts of COVID-19
trend, the electric power regulation issue in China, and other factors.
As a result, the demand for ferronickel continued to recover to a certain extent.
As for the procurement of nickel ore, the primary raw material for ferronickel products, mining
companies’ operations and shipments were generally stable, which allowed us to procure the volume sufficient
to meet our production and sales. In addition, nickel ore prices have remained high against the backdrop of the
impact of the Indonesia’s unprocessed ore export ban and a robust demand for stainless steel, which resulted inhigher production costs.
Nickel prices on the London Metal Exchange (LME) saw an upward trend against the backdrop of a senseof expectation for recovery in production activities and accelerated vaccination efforts as the trend of
resumption in economic activities restricted by the COVID-19 pandemic expanded in some areas. On the other
hand, they showed a temporary adjustment phase due to the continuation of fluctuations in financial and capital
markets, uncertainty of economic trends in various countries, and unstable prices for crude oil and othercommodities. In addition, during the latter half of the period under review, the prices were affected primarily
by the debt problem of the real estate conglomerate and the electric power regulation issue both in China.
Overall, the prices remained relatively high throughout the period under review.
Notably, the Company’s ferronickel sales volume increased by 33.9% year on year due to an increase inboth domestic and overseas sales against the backdrop of the aforementioned environment in the stainless steel
industry, despite a partial shift in raw material procurement by overseas stainless steel producers to nickel pig
iron and other materials that are more price competitive.
In addition, the ferronickel production volume increased, generally following the same trend as the sales
volume.
Amid continued responses to the increasingly uncertain business environment, the selling price offerronickel products increased as the LME nickel price applicable to the Company increased by 36.9% year on
year and the average exchange rate of Japanese yen applicable to the Company was 2.9% weaker year on year.
In this business environment characterized by continued uncertainty, the Group has strived to prevent
infections by formulating the Behavioral Guidelines for Preventing the Spread of Infections, making efforts to
reduce the COVID-19 impact on business activities while maintaining timely and appropriate communications
with its customers and procurement partners across the world. Although the COVID-19 pandemic is expected
to continue during the current fiscal year ending March 31, 2022, the Company continues to implement thesemeasures in response to the business environment. To further strengthen its earnings base, the Company is2striving to reduce total cost through energy conservation and low-cost production, strengthen facilities to build
an optimal production system, work toward long-term and stable procurement of ore, and 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 mine development as well as reinforcement ofoperational efficiency improvement measures to pursue cost minimization.
As a result, consolidated net sales for the period under review increased by 81.7% year on year to ¥24,098
million. On the profit front, operating profit was ¥952 million (compared with operating loss of ¥53 million forthe same period of the previous fiscal year), and ordinary profit reflecting the recording of ¥2,642 million inshare of profit of entities accounted for using equity method under non-operating income increased by 208.8%
year on year to ¥3,995 million. Profit attributable to owners of parent increased by 170.2% year on year to¥3,405 million.
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 increased by 82.8% year on year to ¥23,736 million and operating
profit increased by 739.3% year on year to ¥996 million.
(ii) Gas businessIn the gas business, the Company maintained a certain profit level through stable operations.
As a result, net sales in this segment increased by 9.2% year on year to ¥303 million with operating profitof ¥16 million (compared with operating loss of ¥82 million for the same period of the previous fiscal year).
(iii) Other
For the segment of other businesses, the real estate business recorded profit in the first quarter from atransaction related to sale of land during the previous fiscal year. However, due partly to sluggish orders in thewaste recycling business, this segment recorded loss for the period under review.
As a result, net sales in this segment increased by 109.4% year on year to ¥113 million with operating lossof ¥65 million (compared with operating loss of ¥94 million for the 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, 2021 are as follows.
Total assets increased by ¥2,075 million from the end of the previous fiscal year to ¥77,560 million.
Current assets decreased by ¥19 million from the end of the previous fiscal year mainly due to a decreasein advance payments to suppliers included in “Other” in addition to a decrease in merchandise and finishedgoods, partially offset by an increase in notes and accounts receivable - trade.
Non-current assets increased by ¥2,095 million from the end of the previous fiscal year mainly due to anincrease in investment securities resulting from a rise in the market price of some stocks held and purchase ofstocks, partially offset by a decrease in property, plant and equipment resulting from the recording of
impairment loss.
Total liabilities decreased by ¥1,427 million from the end of the previous fiscal year to ¥7,043 million.
Current liabilities decreased by ¥1,385 million from the end of the previous fiscal year mainly due to adecrease in accounts payable - other included in “Other” in addition to a decrease in notes and accounts
payable - trade caused by the effect of the settlement timing.
Non-current liabilities decreased by ¥42 million from the end of the previous fiscal year mainly due to adecrease in retirement benefit liability, partially offset by an increase in deferred tax liabilities resulting from arise in the market price of some stocks held.
Total net assets increased by ¥3,503 million from the end of the previous fiscal year to ¥70,517 million.
This increase was attributable to an increase in shareholders’ equity of ¥3,014 million resulting from therecording of profit, partially offset by the payment of dividends; an increase in accumulated othercomprehensive income of ¥475 million resulting from increases in valuation difference on available-for-salesecurities and foreign currency translation adjustment; and an increase in non-controlling interests of ¥13
million.
(3) Forward-looking Statements Including Consolidated Financial Results Forecast
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 an indicatorfor determining the selling price of the Company’s ferronickel products, is expected to remain firm reflecting
expectations for economic measures aimed at economic recovery in each country.
On the procurement front, production costs are expected to be affected by higher prices of nickel ore,fuels, and other raw materials, while the volume of nickel ore will be secured to meet production needs.
Although the COVID-19 impact is expected to continue during the current 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 will continue to strongly push forwardwith 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), Revisions to Financial Results Forecast, andRevisions to Dividend Forecast” dated October 29, 2021.

4

<Reference>[Revisions to financial results forecast]
Revisions to consolidated financial results forecast for the fiscal year ending March 31, 2022 (April 1, 2021
through March 31, 2022)

Million yen

Million yen

Million yen

Profitattributable toowners of parent
Million yen

Previously announced forecast (A)(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 (%)

11.3

─

105.2

120.3

32,217

(493)

3,344

1,162

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

Operating profit

Ordinary profit

Basic earnings
per share
Yen

59.61

[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 July 30, 2021)

13,047

12,95326,00011,46913,54125,010

Revised forecast

12,957

14,04327,00011,874

14,28026,154(Reference) Actual results for theprevious fiscal year ended March
31, 2021

9,674

11,11920,793

9,374

9,040

18,414

Applicable LME nickel price ($/lb)
1st half

2nd half

Applicable exchange rate (¥/$)

Full year

1st half

2nd half

Full year

Previously announced forecast(Announced on July 30, 2021)

7.94

7.58

7.76

107.61106.40107.01

Revised forecast

8.12

8.32

8.22

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

5.94

7.07

6.54

106.06104.47105.215

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and 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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

As of September 30, 2021

21,486
7,879
3,000
5,670
333
6,279
3,206
(1)
47,853

21,57010,568
2,799
4,262
371
6,137
2,126
(1)
47,834

7,606
1

7,486
0

19,594435(5)20,023
27,63175,484

21,860384(5)22,23929,726
77,560(Million yen)
As of March 31, 2021
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 on litigation
Provision for loss contract
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
Deferred gains or losses on hedges
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

7

As of September 30, 2021

1,575
1,127
35
258
1,533
4,529

1,070
1,334
171
303
264
3,143

571
1,266
654
33
28
1,377
9
3,941
8,470

500
1,364
654
33
28
1,306
11
3,899
7,043

13,922
3,481
47,950(449)
64,903

13,922
3,481
50,965(450)
67,918

2,659
(37)
644
(1,108)
(325)
1,833
276
67,01475,484

2,858
(42)
645
(857)
(294)
2,309
290
70,517
77,560(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, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rental income from real estate
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Foreign withholding tax
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

8

For the six months ended
September 30, 2021

13,262
11,988
1,274

24,09821,749
2,348

562
765
1,327
(53)

659
737
1,396
952

1
262
–
57

4
215
133
51

1,146

2,642

154
1,623

102
3,149

0
171
37
66
275
1,293

0
–
30
75
106
3,995

1
1

–
–

–
5
5
1,289
209
(147)
62
1,226
(33)
1,260

221
11
232
3,762
308
35
343
3,418
13
3,405

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended September 30(Million yen)
For the six months ended
September 30, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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 to:
Owners of parent
Non-controlling interests

9

For the six months ended
September 30, 2021

1,226

3,418

875
–
30

197
(4)
24

30

258

937
2,164

475
3,894

2,197
(33)

3,880
13

(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.
(Changes in accounting policies)(Application of accounting standard for revenue recognition, etc.)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020; hereinafter referred to as the “Revenue Recognition Accounting Standard”), etc. effectivefrom the beginning of the first quarter of the current fiscal year, and has decided to recognize the amount
expected to be received in exchange for promised goods or services as revenue when the control of such goods
or services has been transferred to the customer. In line with this change, regarding certain domestic sales of thenickel business, although revenue was previously recognized on a shipment basis, the Company has shifted tothe method by which it recognizes revenue when products have been delivered to customers.
The Revenue Recognition Accounting Standard, etc. is applied in accordance with the transitional
treatment stipulated in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard. The
cumulative effect of retrospectively applying the new accounting policy to the periods prior to the beginning of
the first quarter of the current fiscal year was added to or subtracted from the balance of retained earnings at the
beginning of the first quarter of the current fiscal year, and thus the new accounting policy was applied from the
beginning balance. However, by applying the method stipulated in Paragraph 86 of the Revenue Recognition
Accounting Standard, the new accounting policy has not been applied retrospectively to contracts for whichalmost all revenues had been recognized in accordance with the previous treatment before the beginning of thefirst quarter of the current fiscal year. In addition, by adopting the method stipulated in Paragraph 86 (1) of the
Revenue Recognition Accounting Standard, the Company has implemented the following procedures as listedin (i) through (iii) below for the contract modifications made prior to the beginning of the first quarter of thecurrent fiscal year based on the contract terms after reflecting all the contract modifications, and the cumulative
effect of the procedures has been added to or subtracted from the beginning balance of retained earnings of thefirst quarter of the current fiscal year.
(i) Classification of fulfilled and unfulfilled performance obligations(ii) Determination of transaction price(iii) Allocation of the transaction price to fulfilled and unfulfilled performance obligations
As a result, there is no impact on net sales; cost of sales; selling, general and administrative expenses;
operating profit; ordinary profit; and profit before income taxes for the six months ended September 30, 2021.
Also, there is no impact on the beginning balance of retained earnings.
Furthermore, in accordance with the transitional treatment stipulated in Paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on the
breakdown of revenue arising from contracts with customers for the six months ended September 30, 2020 is
not presented.
(Application of accounting standard for fair value measurement, etc.)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30,
July 4, 2019; hereinafter referred to as the “Fair Value Measurement Accounting Standard”), etc. from the
beginning of the first quarter of the current fiscal year, and has decided to prospectively apply the new
accounting policies stipulated in the Fair Value Measurement Accounting Standard, etc. in accordance with thetransitional treatment set forth in Paragraph 19 of the Fair Value Measurement Accounting Standard and
10Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019).
This will have no impact on quarterly consolidated financial statements.

11