The Ratio Is in the Other Document

The securities report tells you how to compute LTV: adjusted net interest-bearing debt over the equity value of holdings, kept below 25% in normal markets and 35% as a ceiling even in an emergency, with cash covering at least two years of bond redemptions. It then reports that the ratio “improved from the previous year-end.” The figure itself is not in the document. Across the 322 pages filed on 22 June 2026, the term occurs five times — twice in the definition, once in the restatement of the 25% and 35% policy, once in the sentence reporting the improvement, and once in a statement of intent for the coming year — and no percentage is attached to any of them; NAV occurs six times — four of them carrying the same parenthetical definition, the others naming it as a goal and as a compensation metric — with no amount attached to any. The number is published in English. The investor presentation puts LTV at 17.0% as of 31 March 2026, charts it quarterly back to FY2021, and walks consolidated net interest-bearing debt of ¥18.82tn (US$114.9bn) down to the adjusted ¥8.21tn (US$50.1bn) numerator, which the ratio then puts over ¥48.26tn (US$294.6bn) of equity value of holdings. The statutory filing has the definition. The voluntary deck has the arithmetic. One numeric leverage threshold does appear, in the covenants note rather than the policy section and in both languages: the covenants on the company's interest-bearing debt require the net senior interest-bearing debt of SoftBank Group Corp. and certain of its subsidiaries to stay below 70% of the value of the listed shares they hold.

This is the wrong issuer for the usual complaint about Japanese disclosure. In the ownership table as of 31 March 2026, foreign corporations hold 29.97% of voting units and foreign individuals a further 0.03% — 17,131,819 units of 57,094,687. The categories are the ones the filing itself sets, and holdings sit under the name on the register, so shares held through domestic trust banks fall in the financial-institutions row: Japan Master Trust at 16.48% and Custody Bank of Japan at 6.58% in the major-shareholder table, holdings the filing notes are entirely trust business. The English shelf, as of mid-2026: a 93-page earnings report, a 112-page integrated report, a 149-page statements-and-notes booklet, a 55-slide finance deck.

The mandate is narrow. Since 1 April 2025, Prime-listed companies must disclose earnings information and timely disclosure in English. Earnings information means four documents: the earnings report, the quarterly earnings report, and the supplementary explanatory materials for each. English versions need not be full translations — the exchange states that a part or a summary of the Japanese disclosure suffices, that disclosing only the summary information of the earnings report is not a rule violation, and that there is no uniform standard for how much of a summary is enough. PR material and reference documents such as the AGM convocation notice and the corporate governance report are optional. The securities report is not named among the twenty-five FAQ items on Prime Market English disclosure, nor anywhere in the twenty-two-page question-and-answer booklet behind them. It sits outside the enumeration.

Where the boundary becomes legible is the company's own governance report, which lists twelve categories of IR material posted to its website and states which are provided in Japanese and English: items (a) through (e) and (g) through (k), of which (a) through (e), (g), (h) and (k) are published in both languages simultaneously. Two categories sit outside that enumeration — item (f), the securities report and semi-annual report, and item (l), the shareholder newsletter. That enumeration is the only company-level list of the kind, and item (f) is not on it.

Much of what the mandate does not reach is in English anyway. The risk section: five categories, 31 sub-items, as of 22 June 2026 — the same five headings and the same 31 sub-items in both languages, in the same order. The Japanese runs twelve printed pages, pages 22 to 33 of the securities report; the English runs seven, pages 101 to 107 of the integrated report. Executive pay: the same three names in both, against a table headed “¥100 million or more” — one at exactly that figure, US$0.61m, one at ¥501m (US$3.06m) and one at ¥6,139m (US$37.5m), the last including ¥5,268m (US$32.2m) of Arm share-based payment, on page 55 of the integrated report. The major-subsidiaries table names the same 33 entities in both, 31 subsidiaries, one associate and one joint venture; add the unnamed remainder the Japanese states separately — 1,046, 146 and 25 — and all three lines close on the 1,077, 147 and 26 the integrated report gives as the group's counts.

The entity-wide geographic table is in English, in the booklet rather than the earnings report. A full-text search of the 93-page English earnings report returns nothing for geographic, by region, by country or major customer, and its segment note ends with the segment tables. The 149-page statements-and-notes booklet carries the table at printed page 31: net sales to external customers split Japan and Other, non-current assets split Japan, the U.K., the U.S. and Other, in yen and in dollars, on figures identical to printed page 150 of the securities report. That booklet is the third item on the company's English financials index, alongside the earnings report and the integrated report; the integrated report directs readers to it for the consolidated statements and notes.

The numbers are these. Revenue for the year ended 31 March 2026 was ¥6,780,450m (US$41,395m) from Japan and ¥1,018,200m (US$6,216m) from everywhere else, 86.9% domestic. Non-current assets run the other way: Japan ¥7,356,457m (US$44,911m), the U.K. ¥4,414,867m (US$26,953m), the U.S. ¥3,980,282m (US$24,300m) against ¥976,255m (US$5,960m) a year earlier, a 4.08x increase. No regional profit figure appears in either language. IFRS entity-wide disclosure covers revenue and non-current assets by geography and does not extend to profit, so regional margins and the tax mix sit outside what this table is built to carry.

One arithmetic operation on two disclosed lines produces a figure the company does not publish. Pre-tax income was ¥6,134,905m (US$37,454m), up 259.9%; gains on investments were ¥7,286,496m (US$44,484m); the difference is negative ¥1,151,591m (US$7,030m). It is not a subtotal, not an operating result, and not comparable to one. The gain line as the company defines it is wider than marks — the note states it includes interest and dividends from investments, derivative results relating to investments, and gains on the sale of equity-method holdings — and the third-party interests line moves with the gains it is deducted against. The chain runs: gross profit ¥4,016,139m (US$24,519m) less SG&A ¥4,020,928m (US$24,548m) is negative ¥4,789m (US$29m); less finance cost ¥771,790m (US$4,712m); less foreign exchange loss ¥271,009m (US$1,655m); plus derivative gain ¥204,333m (US$1,247m); less the change in third-party interests in SVF of ¥534,613m (US$3,264m); plus other gain ¥226,277m (US$1,381m). Those lines close on negative ¥1,151,591m, and the ¥7,286,496m of investment gains carries the total up to pre-tax income. The consolidated statement has no line on which the residual sits.

Inside the investment line, one position. The company states that SVF2's gain came mainly from an increase in the fair value of its holding in OpenAI, at ¥6,465,523m (US$39,472m) — a result the filer reports on its own investment, not a figure about that company. The valuation methods are set out in the fair-value note, described below. The ¥6,465,523m sits in the segment note, where SVF2's segment-basis investment gain is ¥6,853,744m (US$41,842m), while the consolidated figure for SVF2 is ¥6,511,392m (US$39,752m); the note states that the two are defined differently, the difference being whether gains on the funds' holdings in group subsidiaries are eliminated. Set against consolidated totals, the figure is 88.7% of investment gains (6,465,523 ÷ 7,286,496) and 105.4% of pre-tax income (6,465,523 ÷ 6,134,905) — both ratios put a segment-note numerator over consolidated denominators, which mixes the two bases the note distinguishes. The holding-company investment segment ran the other way, producing ¥218,111m (US$1,332m) of gains against ¥3,413,821m (US$20,841m) a year earlier, down 93.6%; the filing names the individual positions behind the movement in both directions, and those are the filer's reported results on its own holdings.

The segment table makes the shape explicit. The two segments with no revenue at all — holding-company investment and the Vision Funds — deliver the profit: negative ¥472,082m (US$2,882m) and positive ¥6,444,601m (US$39,344m) respectively. The SoftBank segment supplies ¥7,033,969m (US$42,942m) of the ¥7,798,650m (US$47,611m) of consolidated revenue on a sales-to-external-customers basis, or 90.2%, and ¥965,002m (US$5,891m) of segment income. AI Computing, formed in the third quarter by combining Arm, Ampere and Graphcore, ran at negative ¥137,266m (US$838m); the segment note reports the three together; the earnings report's discussion of the segment points readers to Arm's own website for Arm's U.S. GAAP results. Segment income is defined in the note as income before income tax, because that is the bottom line the group publishes: it does not present a consolidated operating income line, and IFRS does not require one, which is why the usual cross-company comparison is unavailable rather than merely inadvisable.

Cash went the other way from earnings. Net income of ¥5,631,976m (US$34,383m) came with operating cash flow of negative ¥428,832m (US$2,618m). The statement runs: subtotal ¥1,019,263m (US$6,223m); plus interest and dividends received ¥175,437m (US$1,071m); less interest paid ¥839,234m (US$5,124m); less income taxes paid ¥821,620m (US$5,016m); plus income taxes refunded ¥37,322m (US$228m); and those five close on the net figure. Investing used ¥4,507,172m (US$27,516m) net: outflows of ¥5,106,118m (US$31,173m) for SVF investment purchases, ¥1,733,830m (US$10,585m) for property, plant and equipment and intangibles, ¥1,525,390m (US$9,313m) for other investment purchases, ¥973,101m (US$5,941m) net for control over subsidiaries, ¥243,145m (US$1,484m) into time deposits and ¥59,355m (US$362m) other, against inflows of ¥3,807,274m (US$23,243m) of sale and redemption proceeds, ¥1,125,888m (US$6,874m) of SVF disposals and ¥200,605m (US$1,225m) of time-deposit withdrawals. Financing supplied ¥6,377,307m (US$38,933m) net, within which borrowings and bond issuance of ¥11,948,212m (US$72,944m) and repayments of ¥5,426,889m (US$33,131m) are the two largest lines; the ¥144,016m (US$879m) between those two and the net figure is moved chiefly by net short-term interest-bearing debt of positive ¥1,043,095m (US$6,368m), distributions and repayments from SVF to third-party investors of negative ¥696,053m (US$4,249m) and dividends to non-controlling interests of negative ¥354,224m (US$2,163m), with lease repayments of ¥192,823m (US$1,177m), contributions from non-controlling interests of ¥144,659m (US$883m), share repurchases of ¥93,241m (US$569m), dividends of ¥62,909m (US$384m), distributions to owners of other equity instruments of ¥18,390m (US$112m) and other of positive ¥85,870m (US$524m) completing it. The gross presentation, the company notes, is inflated by borrowings contractually under one year: ¥5,154,080m (US$31,466m) in, ¥3,136,677m (US$19,149m) out.

The valuation basis underneath the gain is in English too, at pages 97 to 99 of the statements-and-notes booklet. SVF investments at fair value through profit or loss are ¥23,495,706m (US$143,441m), of which ¥20,510,483m (US$125,217m), or 87.3%, is Level 3. Within Level 3, the recent-transactions method — valuation off a recent funding round — accounts for ¥14,185,438m (US$86,602m), 69.2% of the Level 3 total, up from ¥1,937,833m (US$11,830m) a year earlier. The audit report in the securities report designates the valuation of these Level 3 positions a key audit matter. Sensitivity is disclosed as direction only — the revenue, EBITDA and gross profit multiples and the price to earnings and price to sales ratios in positive correlation with fair value, cost of capital in negative correlation — with no amount attached, so how far the year's gain moves on an input change cannot be recomputed from the filing. The English earnings report adds the fund-level detail: of SVF2's before-exit gain of US$44.1bn for the year, US$42.3bn came from 254 private names. None of this is a statement about whether the valuations are right: a key audit matter is the auditor's disclosure of where audit effort concentrated, not a qualification; Level 3 is a hierarchy label, not a judgement on accuracy; and IFRS requires quantitative sensitivity only in specified forms. What the filing does not permit is recomputation, which is a different thing from doubt.

Then there are places where two numbers carry one name. The SVF gain is ¥6,638,611m (US$40,529m) in the income statement and ¥6,991,871m (US$42,685m) in the segment note; of the ¥353,260m (US$2,157m) between them, ¥343,054m (US$2,094m) is eliminated gains on the funds' holdings in the group's own subsidiaries, and ¥10,207m (US$62m) is a residue of the 2023 sale of Arm shares by SVF1 to a wholly owned subsidiary, recognised over the two years after the sale and eliminated in consolidation. The two disclosed components sum to ¥353,261m against the ¥353,260m the two stated figures differ by, a ¥1m rounding gap in the source. “Net income” appears twice in the same English earnings PDF, at ¥5,631,976m (US$34,383m) consolidated under IFRS and ¥1,491,862m (US$9,108m) non-consolidated under Japanese GAAP, 3.8x apart. “Cash position” is defined one way on the bond-redemption slide, including undrawn borrowing capacity — which the slide notes was fully drawn at 31 March 2026 — and another way in the appendix that feeds LTV. And the 2026 bridge loan carries an LTV covenant whose definition, the company writes, differs entirely from the LTV it discloses.

The full non-consolidated statements are published only in the Japanese securities report. The English earnings report carries a six-line reference section: operating revenue ¥2,062,650m (US$12,592m), operating income ¥1,952,956m (US$11,923m), ordinary income ¥1,009,950m (US$6,166m), net income ¥1,491,862m (US$9,108m), total assets ¥31,568,286m (US$192,725m) and net assets ¥6,818,459m (US$41,627m), plus a note attributing the year's movement to a ¥1,654,241m (US$10,099m) increase in dividends from subsidiaries and associates and a ¥475,355m (US$2,902m) foreign exchange loss. What the Japanese statements add is the composition: ¥2,062,117m (US$12,589m) of the operating revenue — 99.97% — is dividends received from affiliates, against ¥533m of everything else. The parent employs 276 people against 73,677 in the group, 0.37%, both figures given in the English integrated report. The distributable amount is named once in the securities report, in the risk section, as one of four things the risks can damage, alongside NAV, LTV and financial position and results; the amount does not appear in the document. The nearest hard number of that kind is the covenant floor of ¥369.8bn (US$2,258m) of non-consolidated net assets, disclosed in both languages, against ¥6,818,459m actual.

Distributions tracked the parent, not the group. Dividends declared totalled ¥62,686m (US$383m) — the payout-ratio numerator, giving 1.3% on consolidated net income attributable to owners of ¥5,002,271m (US$30,539m) — with the ¥5.50 year-end portion subject to the 24 June 2026 annual meeting; the consolidated cash flow statement shows ¥62,909m (US$384m) actually paid during the year, and buybacks of ¥93,241m (US$569m). The 2024 authorisation expired in August 2025 having used ¥330.3bn (US$2,016m) of a ¥500bn (US$3,053m) frame, about 66%; the 42,033,200 shares acquired were cancelled in October 2025. A four-for-one split took effect on 1 January 2026, and the earnings report's per-share column shows an interim ¥22.00 (US$0.13) before the split and a year-end ¥5.50 (US$0.034) after it, with a dash in the annual box. The footnote on the same page explains both: the fourth-quarter figure “is presented as the amount after the split,” the annual figure is not presented because it cannot simply be aggregated, and without the split the annual dividend would be ¥44.00 (US$0.27). The split-adjusted annual of ¥11.00 (US$0.067) is stated in the securities report, which notes the interim is ¥5.50 on that basis, and in the integrated report's eleven-year summary.

Which brings the inversion back around. NAV — the metric the integrated report calls the most important indicator for assessing the value of SBG — was ¥40.1tn (US$245bn) at 31 March 2026: equity value of holdings ¥48.26tn (US$294.6bn) less adjusted net debt ¥8.21tn (US$50.1bn). The deck breaks the equity value out by name: Arm ¥19.15tn (US$116.9bn) and SVF2 ¥17.19tn (US$104.9bn), 75.3% of the total between them, Arm alone 39.7% (19.15 ÷ 48.26). The securities report addresses the same concentration in words, stating in the risk section that Arm shares account for a high proportion of the company's equity value of holdings, and attaches no percentage to it. Neither the equity value nor NAV is audited; the integrated report states that the NAV figures are company estimates.

The metric also moves between the dates on which it is published. NAV is ¥40.1tn (US$245bn) at 31 March 2026 and ¥47.7tn (US$291bn) on a pro forma basis at 12 May, which the deck labels reference values and states are not a basis for investment decisions. One concept, two dates, both outside the audited statements. In the English integrated report the term non-GAAP is used only of Arm's own operating measures.

The facilities section stayed in Japanese. Capital expenditure of ¥1,387,310m (US$8,470m) is broken out over five segments: SoftBank ¥741,180m (US$4,525m), Other ¥482,088m (US$2,943m), AI Computing ¥159,497m (US$974m), the Vision Funds ¥3,941m (US$24m) and holding-company investment ¥604m (US$4m); the five close on the total. Three facilities are then listed at book value, which is a stock figure and not the year's spending: SoftBank Corp's domestic base stations and network equipment at ¥2,825,522m (US$17,250m); Energy Global's US solar plants at ¥1,140,571m (US$6,963m); the parent's own head office at ¥11,805m (US$72m), of which ¥6,959m is right-of-use assets. Planned additions are stated as ¥886.0bn (US$5,409m) for the SoftBank segment — base stations, network equipment, AI computing platform and AI data centres — and US$16,366m for Energy Global's data centres and solar plants, with no exchange assumption given, so the two cannot be added. AI Computing appears in the spending table and not in the facilities table. The English integrated report's contents list no facilities section, and none of this facilities disclosure appears in the four English documents.

The perimeter is the rule's. The exchange requires English for what an exchange can require: the four earnings documents on its list, plus timely disclosure, summaries permitted, no uniform standard defined. The securities report answers to a different statute — filed under the Financial Instruments and Exchange Act, to the Kanto Local Finance Bureau, through EDINET, while the English mandate lives in the listing rules — and it sits outside the company's own enumeration of documents provided in both languages, alongside the shareholder newsletter. The perimeter drawn by the rule and the perimeter of what an overseas reader would use are not the same perimeter, and neither perimeter was the company's to draw. Outside the mandate, the company translated a good deal it was not required to: the risk factors, the named-executive pay figures, the major subsidiaries, the entity-wide geographic table, the Level 3 valuation note with its technique table and input ranges, the covenants, and the two metrics the statutory filing defines but does not quantify. What sits outside the mandate and stayed in Japanese, on the documents read here, is the facilities detail — what the buildings are carried at, and what is planned next — and the full non-consolidated statements behind the six summary lines the earnings report carries.

On conversion: yen amounts are converted at ¥163.8 = US$1, the rate on 24 July 2026, applied uniformly to every period cited here, including prior-year figures — so year-over-year dollar changes reflect yen changes only. Significant figures follow the original yen disclosure. Ratios, percentages, multiples and counts are not converted. Amounts the company itself reported in dollars, such as the SVF2 gain detail and the planned data-centre and solar spend, are left as disclosed. Where the company published its own dollar equivalents of yen figures, it used its 31 March 2026 closing rate of ¥159.88, so its US$302bn for equity value of holdings and our US$294.6bn describe the same ¥48.26tn.