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 Three Months Ended June 30, 2024
[Japanese GAAP]
August 8, 2024
Company name: PACIFIC METALS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 5541
URL: https://www.pacific-metals.co.jp/en/
Representative: Masayuki Aoyama, President and Representative Director
Contact: Terunobu Matsuyama, Director and Managing Executive Officer
Phone: +81-3-3201-6681
Scheduled date to commence dividend payments: –Preparation of supplementary material on financial results: None
Holding of financial results briefing: None
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 – June 30, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended Million yen% Million yen% Million yen% Million yen%
June 30, 2024
3,446 (18.3)
(962)
–
344
–
301
–
June 30, 2023
4,217 (61.2)(3,292)–(1,417)–(1,566)–(Note) Comprehensive income: Three months ended June 30, 2024: ¥801 million [–%]
Three months ended June 30, 2023: ¥(1,508) million [–%]

Three months ended
June 30, 2024
June 30, 2023

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

15.48
(80.35)––(2) Consolidated Financial Position
Total assets

Net assets

Million yen

74,448
As of June 30, 2024
73,790
As of March 31, 2024
(Reference) Equity: As of June 30, 2024: ¥69,603 million
As of March 31, 2024: ¥68,785 million

Equity ratio

Million yen%

69,861
69,06093.5
93.2

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen

Yen

Yen

Yen

Yen

–

0.00

0.00

–

0.00

0.00

Fiscal year ended–
0.00
March 31, 2024
Fiscal year ending–
March 31, 2025
Fiscal year ending
March 31, 2025
0.00
(Forecast)(Note) Revision from the latest released dividends forecast: None

Year-endTotal

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31,
2025)(% 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

First half
7,248 (10.3)(3,687)–(1,261)
Full year
14,229(8.3)(5,979)–(1,555)(Note) Revision from the latest released financial results forecast: None%––

Million yen(1,346)(1,847)

%

–
–

Yen

(69.02)(94.71)

* Notes:(1) Significant changes in the scope of consolidation during the period: None
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: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(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):
June 30, 2024:
19,577,071 shares
March 31, 2024:
19,577,071 shares2) Total number of treasury shares at the end of the period:
June 30, 2024:
75,613 shares
March 31, 2024:
75,605 shares
3) Average number of shares during the period:
Three months ended June 30, 2024:
Three months ended June 30, 2023:

19,501,464 shares
19,502,026 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified
public accountants or an audit firm: None
* Explanation on the proper use of financial results forecast and other notes(Cautionary statement regarding 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, theCompany 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. Overview of Operating Results, etc.” on page 5.

Table of Contents – Attachments
1. Overview of Operating Results, etc. ............................................................................................................ 2(1) Overview of Operating Results for the Period under Review.................................................................... 2(2) Overview of Financial Position for the Period under Review ................................................................... 4(3) Forward-looking Statements Including Consolidated Financial Results Forecast ...................................... 5
2. Quarterly Consolidated Financial Statements and Key Notes ....................................................................... 7(1) Quarterly Consolidated Balance Sheets ................................................................................................... 7(2) Quarterly Consolidated Statements of Income and Comprehensive Income .............................................. 9(3) Notes to Quarterly Consolidated Financial Statements ........................................................................... 11(Notes on segment information, etc.)................................................................................................. 11(Notes on significant changes in the amount of shareholders’ equity) ................................................ 12(Notes on going concern assumption) ............................................................................................... 12(Notes on statements of cash flows) .................................................................................................. 12

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Period under Review
During the three months ended June 30, 2024 (the “period under review”), although the continued
appreciation of the U.S. dollar and rising prices raised concerns about their impact on economic activities, theJapanese economy showed a gradual recovery trend amid a standstill, as the employment situation, corporate
earnings, and other factors generally improved.
As for overseas economies, although there were concerns about an economic slowdown due to the effects ofthe stagnant real estate market in China, global monetary tightening, growing tensions in the Middle East andUkraine, and persistently high inflation, the economy showed signs of recovery, supported by solid personal
consumption, a favorable employment and income environment, and other factors.
Under these circumstances, the stainless steel industry, the primary source of demand for the nickel businessthat accounts for the majority of the Group’s sales and profit and loss, is experiencing high inventory levels due toa decline in construction demand accompanying the real estate recession in China, and the surplus stainless steel
products in China are flowing to neighboring countries, creating excessive competition. As a result, intermittent
adjustments were evident in some areas, and the capacity utilization rates of production facilities generally
remained varied and lacked momentum.
Demand for ferronickel continued to slow down because, in addition to the environment described above,overseas producers of stainless steel shifted some of their procurement to nickel pig iron, which has a priceadvantage, and reviewed the stainless steel scrap blending ratio with carbon neutrality in mind.
On the procurement front, prices of nickel ore, the primary raw material for ferronickel products, have beenhigh against the backdrop of robust demand for nickel ore. Moreover, prices for various fuels remained high due tothe steep rise in global resource prices, causing production costs to remain high.
Nickel prices on the London Metal Exchange (LME) were relatively volatile due to complex factors,
including the slowdown of the Chinese economy, fluctuations in foreign exchange rates and financial and capital
markets, increasing tensions in the Middle East and Ukraine, and concerns over nickel ore supply following theriots in New Caledonia.
In this situation, the Company’s ferronickel sales volume decreased by 5.5% year on year, as the Company
continued its policy with the objective of strategically controlling volume so as to secure a certain level ofprofitability, since the price of nickel pig iron, which has a price advantage mentioned above, is also affecting theselling price of the Company’s products.
The ferronickel production volume decreased year on year due to the policy of controlling sales volume.
Regarding the selling price of ferronickel products, the LME nickel price applicable to the Company declined
by 32.4% year on year, while the average exchange rate of the Japanese yen against the U.S. dollar applicable to
the Company was 12.8% weaker year on year. Moreover, in addition to the market prices applicable to theCompany, as mentioned previously, the selling price level of the Company’s ferronickel products also partly
referred to the price of nickel pig iron, resulting in the lowering of the selling price. Therefore, the selling
environment continued to be challenging, with stagnant revenue growth due to lower selling prices compared toprevious levels.
Despite this harsh business environment, the Company is striving to thoroughly focus on the profitability oforders, thereby building a flexible production and sales system. Furthermore, the Company continues its efforts toimprove business performance and stabilize earnings through measures such as the early realization of new
business development, including the new metal smelting project utilizing submarine resources, initiatives toreduce GHG emissions to achieve carbon neutrality, and reinforcement of operational efficiency improvement
measures to pursue cost minimization.
As a result, consolidated net sales for the period under review decreased by 18.3% year on year to ¥3,446
million. On the profit front, the Company posted an operating loss of ¥962 million (compared with an operating
loss of ¥3,292 million for the same period of the previous fiscal year), owing to the significant impact of decreased
sales despite a decrease in cost of sales resulting from the reversal of the write-down of inventories. Ordinary
profit was ¥344 million (compared with an ordinary loss of ¥1,417 million for the same period of the previous
fiscal year), reflecting the recording of ¥852 million in share of profit of entities accounted for using equity
method under non-operating income. Profit attributable to owners of parent was ¥301 million (compared with loss
2

attributable to owners of parent of ¥1,566 million for the same period of the previous fiscal year).
Operating results by business segment are as follows.
(i) Nickel business
The operating results of the nickel business are described in “(1) Overview of Operating Results for the
Period under Review.”
As a result, net sales in this segment decreased by 18.8% year on year to ¥3,283 million with an operating lossof ¥925 million (compared with an operating loss of ¥3,292 million for the same period of the previous fiscal
year).
(ii) Gas businessIn the gas business, increased prices for raw materials and fuels, along with other factors, resulted in a loss
despite stable operations as planned.
As a result, net sales in this segment decreased by 10.8% year on year to ¥174 million with an operating lossof ¥33 million (compared with an operating profit of ¥2 million for the same period of the previous fiscal year).
(iii) Other
The segment of other businesses recorded a loss, despite concluding sales contracts in the real estate business,because the sales proceeds failed to exceed costs such as administrative expenses.
As a result, net sales in this segment were ¥7 million (compared with net sales of nil for the same period of
the previous year) with an operating loss of ¥5 million (compared with an operating loss of ¥5 million for the same
period of the previous fiscal year).

3(2) Overview of Financial Position for the Period under Review
Assets, liabilities, and net assets of the Group as of June 30, 2024 are as follows.
Total assets increased by ¥658 million from the end of the previous fiscal year to ¥74,448 million.
Current assets decreased by ¥467 million from the end of the previous fiscal year, mainly due to a decrease in
cash and deposits relating to an increase in accounts receivable – trade associated with the impact of payments andan increase in raw materials and supplies, as well as other factors.
Non-current assets increased by ¥1,125 million from the end of the previous fiscal year, mainly due to anincrease in investment securities resulting from an increase in foreign currency translation adjustment related toequity-method affiliates, and other factors. Investment securities held by the Company amounting to ¥24,959
million consisted mainly of ¥20,566 million in the amount reflected in the consolidated balance sheet of shares ofentities accounted for using equity method, ¥2,320 million in shares of subsidiaries and associates, and ¥1,495
million in shares of Nickel Asia Corporation, a holding company of the Company’s equity-method affiliates listedon the Philippine Stock Exchange.
Total liabilities decreased by ¥143 million from the end of the previous fiscal year to ¥4,586 million.
Current liabilities decreased by ¥184 million from the end of the previous fiscal year due to a decrease inaccrued expenses and a decrease in accounts payable – facilities, which is included in other, and other factors,
despite an increase in notes and accounts payable – trade due to the impact of payments and other factors.
Non-current liabilities increased by ¥41 million from the end of the previous fiscal year mainly due to anincrease in deferred tax liabilities associated with equity-method affiliates, and other factors.
Total net assets increased by ¥801 million from the end of the previous fiscal year to ¥69,861 million.
Shareholders’ equity increased by ¥301 million resulting from the recording of profit, and other factors.
Accumulated other comprehensive income increased by ¥516 million resulting from an increase in foreign
currency translation adjustment related to equity-method affiliates. Non-controlling interests decreased by ¥16
million.

4

(3) Forward-looking Statements Including Consolidated Financial Results Forecast
With regard to the consolidated financial results forecast, the outlook remains highly uncertain due to theeffects of the stagnant real estate market in China, global monetary tightening, growing tensions in the Middle
East and Ukraine, and persistently high inflation.
On the volume front of the Company’s ferronickel products, the environment in which the Company operates
has remained largely unchanged. Accordingly, the Company has continued with the policy of volume control froma profitability perspective and expects results to be almost the same as the previously announced forecast.
In terms of profit and loss, on the selling price front of ferronickel products, the Company also partly refers to
the price of nickel pig iron, which has a price advantage, in addition to the market prices applicable to theCompany, so the revenue is restrained to a certain extent. On the procurement front, the prices of nickel ore, theprimary raw material, and those of raw materials, fuel, and electricity remain high and are expected to significantly
impact procurement prices.
In addition, regarding the write-down of inventories, the Company expects to record a reversal of the writedown of inventories under cost of sales (decrease in cost of sales) due to the progression of a reduction in thewrite-down along with a decrease in inventory volume and other factors from the end of the previous fiscal year to
the end of the current fiscal year.
Although the circumstances remain severe, response measures to address the business environment areconsistent with activities to be undertaken under the basic policies set forth in the Group’s Medium-termManagement Plan, and the Company will continue to strongly push forward with 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 Cost of Sales (Reversal of
Write-down of Inventories), Recording of Non-operating Income (Share of Profit of Entities Accounted for Using
Equity Method) and Revisions to Financial Results Forecast,” dated July 31, 2024.

5

<Reference>[Revisions to financial results forecast]
Revisions to consolidated financial results forecast for the six months ending September 30, 2024 (April 1, 2024
through September 30, 2024)
Operating profit

Ordinary profit

Profitattributable toowners of parent

Million yen
6,641
7,248
607
9.1

Million yen(4,418)(3,687)731－

Million yen(2,376)(1,261)
1,115－

Million yen(2,514)(1,346)
1,168
－

Yen
(128.91)(69.02)

8,083(6,194)(2,487)(2,611)(133.90)

Net sales
Previously announced forecast (A)(Announced on May 10, 2024)
Revised forecast (B)Change (B–A)
Change (%)(Reference) Actual results for the six
months ending September 30, 2023

Basic earnings
per share

Revisions to consolidated financial results forecast for the fiscal year ending March 31, 2025 (April 1, 2024 throughMarch 31, 2025)
ProfitNet sales

Operating profit

Ordinary profit

attributable toowners of parent

Basic earnings
per share

Million yen

Million yen

Million yen

Million yen

Yen(Announced on May 10, 2024)

13,994(6,838)(2,903)(3,252)(166.76)

Revised forecast (B)14,229(5,979)(1,555)(1,847)(94.71)

Change (B–A)

235

859

1,348

1,405

Change (%)

1.7

－

－

－

15,521(9,114)(2,119)(1,074)Previously announced forecast (A)(Reference) Actual results for theprevious fiscal year ended March 31,(55.10)2024[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 May 10, 2024)

2,869

3,131

6,000

2,777

2,770

5,547

Revised forecast

3,074

2,926

6,000

2,475

2,770

5,245

(Reference) Actual results for theprevious fiscal year ended March 31,
2024

3,052

2,973

6,025

3,210

2,825

6,035

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

2nd half

Full year

Applicable exchange rate (¥/$)
1st half

2nd half

Full year

Previously announced forecast(Announced on May 10, 2024)

7.83

8.00

7.92

139.28139.15139.21

Revised forecast

8.08

8.00

8.04

151.61

149.17150.42(Reference) Actual results for theprevious fiscal year ended March 31,
2024

10.78

8.42

9.62

140.18148.85144.466

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
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
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

As of June 30, 2024

21,758
5,001
2,199
7,303
257
3,521
1,773
(1)
41,814

19,236
6,354
2,199
7,515
317
4,106
1,619
(1)
41,347

7,388
285

7,315
9

23,687476
142(5)24,301
31,97573,79024,959489
332(5)25,776
33,10074,448(Million yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Accrued expenses
Income taxes payable
Provision for bonuses
Provision of restoration cost
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 contract
Provision of restoration cost
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
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

8

As of June 30, 2024

234
892
47
117
5
376
1,674

412
790
23
40
223
1,489

59
1,135
547
2
1,273
14
23
3,055
4,729

61
1,175
547
2
1,273
14
22
3,096
4,586

13,922
3,481
49,658(452)
66,60913,922
3,481
49,960(452)
66,910

1,183
400
179
412
2,176
274
69,06073,790

1,137
400
744
409
2,693
257
69,861
74,448–

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30
For the Three months ended
June 30, 2023
Net sales
Cost of sales
Gross loss
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Rental income from real estate
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of inventories
Commitment fees
Foreign withholding tax
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

9(Million yen)
For the Three months ended
June 30, 2024

4,217
7,023
(2,806)

3,446
3,861
(415)

89
396
485
(3,292)

87
459
547
(962)

7
165
25

8
73
27

1,245

852

479
19
1,941

356
12
1,331

0
30
7
23
5
67
(1,417)

0
1
7
9
6
25
344

–
–

25
25

0
0
(1,417)4
144
149(1,567)(0)(1,566)

0
0
369
1
83
84
285
(16)
301

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30
For the Three months ended
June 30, 2023
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
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 toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

10(Million yen)
For the Three months ended
June 30, 2024

(1,567)

285

(231)
(10)

(103)
(3)

300

623

58
(1,508)516
801(1,507)

818

(0)

(16)

(3) Notes to Quarterly Consolidated Financial Statements(Notes on segment information, etc.)
I For the Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information on net sales and profit or loss by reportable segment(Million yen)Amountrecorded in
Quarterly
Consolidated
Adjustment Statements of(Note 2)
Income(Note 3)

Reportable segment
Other(Note 1)

Total

Nickelbusiness

Gas businessNet sales to outside
customers

4,042

174

4,217

－

4,217

－

4,217

Intersegment sales ortransfer

－

21

21

－

21

(21)

－

4,042

196

4,238

－

4,238

(21)

4,217

Total

Net sales

Total

Segment profit
22(3,292)(3,289)(5)(3,294)(3,292)(loss)
Notes: 1. “Other” corresponds to the real estate business not included in the reportable segments.
2. Adjustment to segment profit (loss) of ¥2 million includes intersegment elimination of ¥2 million andother adjustments of ¥0 million.
3. Segment profit (loss) is adjusted with operating loss in the quarterly consolidated statements ofincome.
2. Information on impairment losses of non-current assets or goodwill by reportable segment
Not applicable.
II For the Three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Information on net sales and profit or loss by reportable segment
Reportable segment
Other(Note 1)

Total

(Million yen)Amountrecorded in
Quarterly
Consolidated
Adjustment Statements(Note 2)of Income(Note 3)

Nickelbusiness

Gas businessNet sales to outside
customers

3,283

155

3,438

7

3,446

－

3,446

Intersegment sales ortransfer

－

19

19

－

19

(19)

－

3,283

174

3,457

7

3,465

(19)

3,446

(925)

(33)

(959)

(5)

(964)

2

(962)

Total

Net sales

Total
Segment loss
Notes: 1.
2.
3.

“Other” corresponds to the real estate business not included in the reportable segments.
Adjustment to segment loss of ¥2 million includes intersegment elimination of ¥2 million and otheradjustments of ¥0 million.
Segment loss is adjusted with operating loss in the quarterly consolidated statements of income.

2. Information on impairment losses of non-current assets or goodwill by reportable segment
Not applicable.
11

(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Notes on going concern assumption)
Not applicable.
(Notes on statements of cash flows)
The Company has not prepared quarterly consolidated statements of cash flows for the period under review.
The depreciation and amortization (including amortization of intangible assets) for the period under review is asfollows:(Million yen)
For the three months ended
June 30, 2023
Depreciation and amortization

85

12

For the three months ended
June 30, 2024
86