3D Investment Announces Results of Survey of Square Enix Holdings Shareholders and Market Participants, and Discloses Abstention from Voting on the Reappointment of Directors at the 46th Annual General Meeting of Shareholders

Through the survey, it was revealed that many shareholders and market participants believe that Square Enix Holdings has significant potential to enhance its corporate value, and that they expect the Company to engage in constructive dialogue with shareholders and to advance initiatives aimed at improving its corporate value.

Based on the results of the survey, we expect that the executive directors and outside directors of Square Enix Holdings will engage positively in dialogue with shareholders, including ourselves, going forward.

In light of these expectations, with respect to the proposals for the reappointment of directors at the 46th Annual General Meeting of Shareholders of SQEX HD, we have decided to exercise our voting rights by way of “abstention” rather than “against” as would result from a formal application of our voting guidelines.

TOKYO--(BUSINESS WIRE)--3D Investment Partners Pte. Ltd. (“3D” or “we”), which provides discretionary investment management services to funds holding approximately 19% of the outstanding shares of Square Enix Holdings Co., Ltd. (“SQEX HD”) (9684.T), today announced, in relation to SQEX HD, the results of a survey conducted among the SQEX HD’s shareholders and market participants (the “Survey”), and it has abstained from voting on the proposals for the reappointment of directors at the 46th Annual General Meeting of Shareholders (the “Meeting”).

Results of the Survey

The Survey was conducted by an independent shareholder data provider (the “Third-Party Research Firm”) at the request of 3D. The Third-Party Research Firm solicited feedback from more than 80 domestic and international institutional investors and sell-side analysts and conducted interviews with 26 participants. 3D was not involved in any part of the process, from the conduct of the interviews to the preparation of the report. We would like to express our sincere appreciation to all those who shared their candid views despite their busy schedules on this occasion.

The survey’s main results are as follows:

1. In response to the question, “Do you believe that SQUARE ENIX is effectively managing its businesses to maximize the corporate value?”, 69% of participants answered “No.”
2. In response to the question, “When considering SQUARE ENIX as an investment opportunity, do you evaluate its game business as the core business?”, 100% of participants answered “Yes.”
3. In response to the question, “Do you believe that the amusement business is generating sufficient synergy with the game business?”, 73% of participants answered “No.”
4. In response to the question, “Do you believe that the publishing business is generating sufficient synergy with the game business?”, 73% of participants answered “No.”
5. In response to the question, “Do you believe that SQUARE ENIX is the best owner for its non-game businesses, such as the amusement and publishing businesses?”, 50% of participants answered “No.”
6. In response to the question, “Do you believe that the game business is maximizing revenue and profit margin?”, 76% of participants answered “No.”
7. In response to the question, “Do you consider the current medium-term management plan to be appropriate and sufficient for maximizing corporate value?”, 69% of participants answered “No.”
8. In response to the question, “Do you think that a fundamental review of management policies should be conducted, looking ahead to the next medium-term management plan, in order to maximize corporate value?”, 88% of participants answered “Yes.”
9. In response to the question, “Do you believe that, in order for SQUARE ENIX to maximize corporate value, it is necessary to establish a framework for objectively and fundamentally reviewing management policies from the perspectives of capital cost and investment return, beyond the discussions at the current board of directors?”, 58% of participants answered “Yes.”
10. In response to the question, “Do you think that the current external directors are sufficiently engaging with shareholders and market participants, and fulfilling their role as representatives of shareholders?”, 77% of participants answered “No.”
11. In response to the question, “Do you believe that, in order to better serve as representatives of shareholders, the current external directors should actively engage in direct dialogue with investors and provide feedback from these discussions to the board of directors?”, 88% of participants answered “Yes.”

The full content of a presentation compiled by 3D based on the Survey’s results, including comments from participants, is available in the below link:
https://www.3dipartners.com/engagement/square-enix-perception-study-en-202606.pdf

What the findings of the Survey show are clear. Consistent with the issues identified by 3D in the document to identify management issues submitted to SQEX HD on September 29, 2025 (titled “Management Issues of Your Company as Seen from Outside”), many shareholders and market participants also believe that SQEX HD has not maximized revenue and profit margins in its gaming business and that its non-core businesses have not generated sufficient synergies with the gaming business.

At the same time, conversely, this also shows the significant potential of SQEX HD. In other words, many shareholders and market participants believe that SQEX HD has room to highly enhance its corporate value through improvements in revenue and profitability, a review of its business portfolio, and the optimization of capital allocation, etc. and that achieving this will require a fundamental reassessment of its management strategy not limited to the current medium-term business plan.

In addition, while shareholders and market participants believe that the outside directors of SQEX HD have not engaged sufficiently in dialogue with shareholders and market participants, they strongly expect that the outside directors will proactively engage in direct dialogue with shareholders and market participants and provide the feedback to the Board of Directors.

Voting at the Meeting

With respect to the proposals for the reappointment of directors at the Meeting, a formal application of our voting guidelines would have resulted in our voting against such proposals. However, Principle 5 of Japan’s Stewardship Code (the “Principles for Responsible Institutional Investors”) provides that institutional investors “should not merely rely on mechanical criteria but should instead exercise judgment in a manner that contributes to the sustainable growth of investee companies.” Our policy is to determine our final voting decisions based on the specific circumstances of each investee company, with a view to supporting its sustainable growth.

To date, while we have repeatedly requested meetings with the outside directors of SQEX HD, the only engagement that has taken place was an online meeting with one outside director, Abdullah, held in October 2025 in conjunction with a meeting with President Kiryu. Our requests at that time to meet with other outside directors, as well as subsequent requests for meetings with outside directors, have not been accepted.

On the other hand, the results of the Survey show that shareholders clearly expect outside directors—who are positioned to state on behalf of shareholders—to proactively engage in dialogue with shareholders and to provide feedback to the Board of Directors. We have already shared the Survey results with the Board of Directors of SQEX HD, including President Kiryu, and understand that they understood these contents, having given them due consideration.

In light of the above, 3D expects that both executive and outside directors will engage proactively with shareholders, including ourselves, going forward. Accordingly, with respect to the proposals for the reappointment of directors at the Meeting, we exercised our voting rights by abstaining, rather than voting against such proposals in accordance with our voting guidelines.

3D will continue to engage in constructive dialogue with SQEX HD, while taking into account the views of other shareholders and market participants, with the aim of achieving shareholders’ shared objective of maximizing corporate value.

About 3D Investment Partners Pte. Ltd.

Our Company is an independent asset management firm based in Singapore, established in 2015, that conducts Japan-focused value investing. Our investment philosophy emphasizes medium to long-term value creation through compounding capital growth, and we place importance on partnerships with management teams who share the common goal of achieving long-term returns.

Disclaimer

This press release, including annexes, is provided for informational purposes only and does not constitute an offer to purchase or sell any securities or investment products, nor does it constitute professional or investment advice. This press release should not be relied on by any person for any purpose and is not, and should not be construed as investment, financial, legal, tax, or other advice.

3D Investment Partners Pte. Ltd. and its affiliates and related persons (“3DIP”) believe that the current market price of SQEX HD does not reflect its intrinsic value. 3DIP acquired beneficial and/or economic interests based on its own belief that SQEX HD securities have been undervalued and provide an attractive investment opportunity and may in the future beneficially own, and/or have economic interests in, SQEX HD securities. 3DIP intends to review its investment in SQEX HD on a continuing basis and, depending upon various factors including, without limitation, SQEX HD’s financial position and strategic direction, the outcome of discussions with SQEX HD, overall market conditions, other investment opportunities available to 3DIP, and the availability of SQEX HD securities at prices that would make the purchase or sale of SQEX HD securities desirable, 3DIP may, from time to time (in the open market or in private transactions), buy, sell, cover, hedge, or otherwise change the form or substance of any investments (including any investment in SQEX HD securities) to any degree in any manner permitted by any applicable law and expressly disclaims any obligation to notify others of any such changes.

3DIP provides no representation or warranty, either expressed or implied, in relation to the accuracy, completeness, or reliability of the information contained herein (including content or quotes from news coverage or other third-party public sources (“Third-Party Materials”)), nor is it intended to be a complete statement or summary of the securities, markets, or developments referred to herein. 3DIP expressly disclaims any responsibility or liability for any loss whatsoever arising from any use of, or reliance on this press release or its contents as a whole or in part by any person, or otherwise whatsoever arising in connection with this press release. 3DIP hereby expressly disclaims any obligation to update or provide information regarding the contents of this press release or to correct any inaccuracies in the information contained in this press release.

3DIP hereby expressly states that, by reason of the expression of its own evaluations, estimates, and opinions or otherwise engaging in dialogue with shareholders through this press release, it has no intention or agreement to be treated as a joint holder (kyodo hoyu sha) under the Financial Instruments and Exchange Act of Japan, a closely related party (missetsu kankei sha) under the Foreign Exchange and Foreign Trade Act with other shareholders, or has no intention to permit 3DIP or any third party to exercise by proxy the voting rights held by other shareholders, or to accept any authority to represent shareholders in relation to the exercise of their voting rights, and has no intention to solicit, encourage, induce, or require any person to cause other shareholders to represent such voting rights.

3DIP does not have the intention to make a proposal, directly or through other shareholders of SQEX HD, to transfer or abolish the businesses or assets of SQEX HD and/or SQEX HD group companies at the general shareholders’ meeting of SQEX HD. 3DIP does not have the intention or purpose to engage in any conduct which constricts the continuing and stable implementation of the businesses of SQEX HD and/or SQEX HD group companies.

This press release may include Third-Party Materials. Permission to quote from Third-Party Materials in this press release may neither have been sought nor obtained. The content of the Third-Party Materials has not been independently verified by 3DIP and does not necessarily represent the views of 3DIP. The authors and/or publishers of the Third-Party Materials are independent of, and may have different views of 3DIP. Quoting Third-Party Materials in this press release does not imply that 3DIP endorses or concurs with any part of the content of the Third-Party Materials, or that any author or publisher of the Third-Party Materials endorses or concurs with the views expressed by 3DIP on the relevant subject matters. The Third-Party Materials may not be representative of all relevant news coverage or views expressed by other third parties on the stated issues.

This press release has been prepared based on constructive dialogue with SQEX HD and publicly available information (3DIP has not conducted any separate verification) and does not claim to be complete, timely, or comprehensive. 3DIP has not received any inside information as defined by Japan’s Financial Instruments and Exchange Act (“Inside Information”) or any material information under the Fair Disclosure Rule (“Material Information”), and this press release does not contain any Inside Information or Material Information.

In respect of information that has been prepared by 3DIP (and not otherwise attributed to any other party) and which appears in the English language version of this press release, in the event of any inconsistency between the English language version and the Japanese language version of this press release, the meaning of the Japanese language version shall prevail unless expressly indicated.