Debt Restructuring and Repayment-Term Review for the Madagascar Nickel Business

「In addition, the project company recognized a gain arising from debt restructuring. Consequently, a gain of ¥14,409 million related to the investment in the project company was recorded in the Resources and Chemicals segment in our consolidated results.」

「During the first quarter, the project company for the Madagascar nickel business described above agreed with the project finance lenders to review the loan repayment terms. Following this review, the project company recognized a gain on the revaluation of financial liabilities during the first quarter, as the financial liabilities were measured at fair value. Because the resulting increase in the carrying amount of the investment in the project company will not contribute to future cash inflows, the equity-accounted portion of the gain was recognized as a reduction in the investment in the project company from the perspective of recoverability. As a result, the revaluation of these financial liabilities had no impact on our consolidated results. In addition, the project company recognized a gain arising from debt restructuring. Consequently, a gain of ¥14,409 million related to the investment in the project company was recorded under “share of profit or loss of investments accounted for using the equity method” in our condensed interim consolidated statement of comprehensive income.」