Note that the number of the shares or stock options, the exercise price, and the fair value of shares on the grant date presented below have been retrospectively adjusted in respect of the share split that occurred on November 15, 2025. Refer to Note 28, Issued Capital and Reserves, for further details.

The Group has granted stock options as share-based payment awards to non-employees for the software development service provided to the Group. The option holder has the right to acquire the Company’s common shares upon exercise. The option holder may exercise the options at any time subsequent to vesting and no later than the expiration date. On April 4, 2025, all of the 1st stock options held by SVF II Piranha (DE) LLC were exercised. Refer to Note 28, Issued Capital and Reserves and Note 38, Related Party Transactions.

The Group has a trust-type stock option plan for directors, corporate officers, and employees (“the trust-type plan”) to attract and retain exceptionally qualified and talented human resources to achieve the Group’s business goals. Under the trust-type plan, SoftBank Corp. and LY Corporation, which are the owners of the parent company, contributed their funds to the trust and the trust acquired a total of 11,636 thousand shares of the 2nd to 46th series of the stock options (“the trust-type stock options”) from the Company on August 29, 2022. In addition, on a predetermined date, according to the instructions of the Company, the trust-type stock options will be granted to the directors, corporate officers, and other employees of the Company or its subsidiaries.

The number of trust-type stock options issued to the trust is shown in the table below.


	(In thousands of shares)
	Exercisable period (Five periods)
Market condition (Nine conditions)	From April 1, 2024 to March 31, 2033		From April 1, 2025 to March 31, 2033		From April 1, 2026 to March 31, 2033		From April 1, 2027 to March 31, 2033		From April 1, 2028 to March 31, 2033
None		843		843		843		843		838
3 trillion yen		416		387		387		386		386
4 trillion yen		359		328		324		308		308
5 trillion yen		248		248		192		108		108
6 trillion yen		174		174		161		161		125
7 trillion yen		73		73		73		73		73
8 trillion yen		84		84		84		80		80
9 trillion yen		107		107		104		104		104
10 trillion yen		167		167		167		167		167
Total		2,471		2,411		2,335		2,230		2,189

For the year ended March 31, 2023, a total of 4,589 thousand shares of trust-type stock options were granted to directors, corporate officers and other employees. In addition, the trust was consolidated to the Group’s Consolidated Statements of Financial Position and Consolidated Statements of Profit or Loss. As of April 30, 2025, remaining 7,047 thousand shares of trust-type stock options which the trust held were forfeited and extinguished, and the trust had been terminated.

The Group has tax qualified-type and one-yen-exercisable at retirement-type of stock option plans for directors, corporate officers, and other employees for the purpose of attracting and retaining exceptionally qualified and talented human resources to achieve the Group’s business goals.

The Group grants phantom stock awards to certain employees, which are accounted for as cash-settled share-based payment arrangements. A phantom stock award is an award of a theoretical number of units (phantom units) operating in substance as a phantom option, whose value is based on the appreciation of the Company's common stock over a specified exercise price. The value of each phantom unit is based on the excess of the Company’s common stock price over the exercise price and, therefore, appreciates and depreciates on the basis of fluctuations in the value of the Company's common stock.


	(In thousands of shares)
	Exercisable period (Five periods)
Market condition (Nine conditions)	From April 1, 2024 to March 31, 2033		From April 1, 2025 to March 31, 2033		From April 1, 2026 to March 31, 2033		From April 1, 2027 to March 31, 2033		From April 1, 2028 to March 31, 2033
None		444		444		442		376		342
3 trillion yen		187		165		152		144		136
4 trillion yen		123		115		107		98		89
5 trillion yen		82		74		63		51		38
6 trillion yen		52		50		47		44		31
7 trillion yen		28		28		27		26		26
8 trillion yen		27		27		26		25		25
9 trillion yen		36		35		35		35		33
10 trillion yen		52		52		51		50		49
Total		1,031		990		950		849		769

(ii)

47th and 48th tax qualified-type and 49th one-yen-exercisable at retirement-type of stock options


Name	47th stock option	48th stock options	49th stock options
Grant date	April 28, 2025	April 28, 2025	April 28, 2025
Grantee	Employees	Directors and corporate officers	Directors and corporate officers
Number of options granted	See the table below (3)	See the table below (3)	569 thousand shares
Settlement method	Equity-settled	Equity-settled	Equity-settled
Exercisable period	See the table below (3)	See the table below (3)	From June 1, 2025 to May 31, 2045
Conditions of vesting	Service condition (1) IPO condition (2)	Service condition (1) IPO condition (2)	IPO condition (2)

(1)

Service condition

Holders of stock options must be directors, corporate officers, or other permanent employees of the Company or its subsidiaries at the time of exercising the rights. The stock options are forfeited upon resignation from the Group. However, this shall not apply in cases where the Board of Directors approves the condition such as retirement due to expiration of term of office or mandatory retirement age.

(2)

IPO condition

Holders of stock options may exercise their stock options only when the Company’s shares are listed on a financial instruments exchange market.

(3)

Number of stock options granted, exercisable period

The number of 47th and 48th tax qualified-type stock options by exercisable period is as follows.


	(In thousands of shares)
	Exercisable period (Five periods)
	From April 25, 2027 to April 23, 2035		From April 29, 2028 to April 23, 2035		From April 29, 2029 to April 23, 2035		From April 29, 2030 to April 23, 2035		From April 29, 2031 to April 23, 2035		Total
47th stock options		1,625		1,582		1,529		1,472		1,417		7,625
48th stock options		107		107		107		107		107		535

The awards become exercisable upon satisfaction of all conditions, including service conditions, an IPO condition, and market conditions. Upon exercise, the Group settles the awards in cash based on the difference between the exercise price and the share price at the exercise date. The maximum term of the phantom stock awards granted under this plan is 11.9 years, which represents the period from the grant date to the expiration of the exercise period.

As the Group completed its initial public offering on March 12, 2026 and satisfied the IPO condition, the Group commenced the recognition of share-based payment expenses and liabilities in the Consolidated Statements of Profit or Loss for the year ended March 31, 2026 and Consolidated Statements of Financial Position as of March 31, 2026.

Details of the stock options and awards are as follows:

For the year ended March 31, 2024

           
          1st stock options

          2nd to 46th stock options

          Phantom stock awards

           
          Number
of stock
options
(Thousand
shares)

          Weighted
average
exercise
price
(Yen)

          Number
of stock
options
(Thousand
shares)

          Weighted
average
exercise
price
(Yen)

          Number
of stock
options
(Thousand
shares)

          Weighted
average
exercise
price
(Yen)

Outstanding at the beginning
   of the year

31,802

500

4,516

1,300

79

1,300

Forfeited

―

―

(217

)

1,300

―

―

Outstanding at the end of the
   year (1)

31,802

500

4,299

1,300

79

1,300

Exercisable at the end of the
   year

31,802

500

―

―

―

―

(1)

The weighted average remaining contractual lives in relation to 1st stock options, 2nd to 46th stock options, and phantom stock awards outstanding as of March 31, 2024 were 6.5 years, 9.0 years, and 9.0 years, respectively.

For the year ended March 31, 2025

           
          1st stock options

          2nd to 46th stock options

          Phantom stock awards

           
          Number
of stock
options
(Thousand
shares)

          Weighted
average
exercise
price
(Yen)

          Number
of stock
options
(Thousand
shares)

          Weighted
average
exercise
price
(Yen)

          Number
of stock
options
(Thousand
shares)

          Weighted
average
exercise
price
(Yen)

Outstanding at the beginning
   of the year

31,802

500

4,299

1,300

79

1,300

Forfeited

―

―

(288

)

1,300

―

―

Outstanding at the end of the
   year (1)

31,802

500

4,011

1,300

79

1,300

Exercisable at the end of the
   year

31,802

500

―

―

―

―

(1)

The weighted average remaining contractual lives in relation to 1st stock options, 2nd to 46th stock options outstanding, and Phantom stock awards as of March 31, 2025 were 5.5 years, 8.0 years, and 8.0 years, respectively.

For the year ended March 31, 2026


	1st stock options					2nd to 46th stock options					47th stock options
	Number of stock options (Thousand shares)			Weighted average exercise price (Yen)		Number of stock options (Thousand shares)			Weighted average exercise price (Yen)		Number of stock options (Thousand shares)			Weighted average exercise price (Yen)
Outstanding at the beginning of the year		31,802			500		4,011			1,300		—		―
Granted	―			―			—		―			7,625			1,300
Exercised (1)		(31,802	)		500		(82	)		1,300		—		―
Forfeited	―			―			(122	)		1,300		(255	)		1,300
Expired	―			―			—		―			—		―
Outstanding at the end of the year (2)	―			―			3,807			1,300		7,370			1,300
Exercisable at the end of the year	―			―			633			1,300		—		―

           
          48th stock options

          49th stock options

          Phantom stock awards

           
          Number
of stock
options
(Thousand
shares)

          Weighted
average
exercise
price
(Yen)

          Number
of stock
options
(Thousand
shares)

          Weighted
average
exercise
price
(Yen)

          Number
of awards
(Thousand)

          Weighted
average
exercise
price
(Yen)

Outstanding at the beginning
   of the year

―

―

―

―

79

1,300

Granted

535

1,300

569

1

155

1,327

          Exercised (1)

          ―

          ―

          ―

          ―

          ―

          ―

Outstanding at the end of the
   year (2)

535

1,300

569

1

234

1,318

Exercisable at the end of the
   year

―

―

―

―

10

1,300

(1)

The weighted average share price at the date of exercise was 1,305 yen.

(2)

The weighted average remaining contractual lives in relation to the stock options and awards outstanding as of March 31, 2026 were as follows:


	2nd to 46th stock options		47th stock options	48th stock options	49th stock options	Phantom stock awards
Weighted average remaining contractual lives (years)		7.0	9.1	9.1	19.2	8.4

There were no stock options granted during the years ended March 31, 2024, and 2025, respectively.

Fair value of stock options granted during the year ended March 31, 2026 was measured as follows:

          Grant and name

          47th stock
options

          48th stock
options

          49th stock
options

          Weighted average fair value

          488 yen

          409 yen

          472 yen

          Valuation method used

          Monte-Carlo
simulation (1)

          Monte-Carlo
simulation (1)

          Monte-Carlo
simulation (1)

          Key inputs and assumptions

          Exercise price

          1,300 yen

          1,300 yen

          1 yen

          Fair value of share on
   grant date

          1,300 yen

          1,300 yen

          1,300 yen

          Exercise period

          10 years

          10 years

          20 years

Expected dividend yield

3.4

3.4

3.4

Expected volatility (2)

38.6

38.6

37.6

Risk-free interest rate

1.3

1.3

2.1

(1)

Monte-Carlo simulation requires various highly subjective assumptions, including expected volatility, expected life of stock options, expected dividend yield, and fair value of common share at the time of option grants.

(2)

The expected volatility was derived from the historical volatility over a period similar to the expected life of the stock options for publicly listed companies that are comparable to the Group.

(ii)

Fair value measurement of cash-settled share-based payments at the end of the year


		March 31, 2026
Weighted average fair value		1,998 yen
Valuation method used		Monte-Carlo simulation (1)
Key inputs and assumptions
Exercise price		1,300 yen or 1,750 yen
Fair value of share at the end of the period		3,393 yen
Exercise period		7.0 years - 9.1 years
Expected dividend yield		See below (2)
Expected volatility (3)		39.9% - 41.6%
Risk-free interest rate		2.1% - 2.3%

(1)

Monte-Carlo simulation requires various highly subjective assumptions, including expected volatility, expected life of the awards, expected dividend yield, and fair value of common share at the end of the year.

(2)

The expected dividend yield was estimated to be zero for the first five years following the IPO and 1.6 % from the sixth year onward.

(3)

The expected volatility was derived from the historical volatility over a period similar to the expected life of the awards for publicly listed companies that are comparable to the Group.