3D Investment Partners calls on Fuji Soft to adopt turnaround plan

KUALA LUMPUR, Dec 5 (Bernama) -- 3D Investment Partners Pte Ltd has called on the newly-elected members of Japanese business solutions provider, Fuji Soft Inc’s (Fuji Soft) board of directors to adopt a turnaround plan.

3D Investment Partners is the investment manager of 3D Opportunity Master Fund, Fuji Soft’s largest shareholder.

In an open letter, the investment management company said the proposed plan outlined concrete measures to drive meaningful improvements to Fuji Soft’s performance and operations so that it could reach its full potential and maximise corporate value.

It urged the new independent outside directors to take the initiative in examining its plan and ensure Fuji Soft’s business plan incorporates targets for capital efficiency, operating margin, and cash flow per share growth that are at least as ambitious as those in the plan.

3D Investment Partners said its plan was based on a detailed analysis of the situation and not solely on superficial quantitative analysis.

“For example, Fuji Soft’s management has recently stated in interviews that Fuji Soft’s low profit margin is due to its unique business model. However, even Systena, a company with a very similar business model, has higher margins.

“Based on our detailed analysis, one of the main drivers of the low margin is entirely within Fuji Soft’s control, namely, an organisational structure that is not in line with the business unit cost,” it said.

Founded in 2015, 3D Investment Partners is an independent Singapore-based, Japan-focused value investing fund manager.

-- BERNAMA