Management Discussion & Analysis Report: This Report is made pursuant to the provisions of Clause 49 of the Listing Agreement l. Industry structure and developments: Your company operates in an environment where disruptive technological innovation is the order of the day. Continuous innovation and technology adoption has enabled the Company to transform its business rapidly and stay ahead of the competition. Technological Innovation has been a catalyst in attaining business breakthroughs worldwide by the Company. Opportunities and Threats: The world over, business transformation is being led by the web and web based technologies. From cloud storage to big data and SaaS (Software as a Service) applications, what used to be confined to corporate silos are rapidly moving to an open, secured,collaborative, just-in-time web environment. By staying ahead of this race in exploiting the business advantages of emerging technology, izmo has been able to successfully market its products and solutions internationally. To keep advancing,your company needs to continuously acquire new technology, and the systems to run it efficiently. Disruptive technology acts as a threat to every company operating in the web domain, including izmo. At the same time, this fast-evolving high-technology environment also opens up new vistas for your company, enabling it to introduce innovative products and services like iDataMagic, the new izmoWeb web solution, voiceover enhanced video, and CGI enhanced imagery. 2. Segment wise or Product-wise performance: NORTH AMERICA USA: izmo is currently serving OEMs, topglobal portals, other companies in the automotive space and auto dealers, with Multimedia solutions, Automotive Websites, SEO and Social Marketing, CRM, and data analytics services.Your company continues to be the #1 automotive imagery and visual marketing solutions provider in the U.S. as well as globally. Mexico: Being the first mover in Mexico has paid rich dividends for izmo. Our company continues to be the #1 automotive website provider in Mexico. On analysis of the general trend and the Economic Conditions of the Market izmo feels that it is the ideal time to launch izmoWeb as a generic one-stop web marketing solution for businesses across North America, izmo is also in the process of launching the new version of izmoCRM, and introducing a new appointment management system as well. EUROPE European Union: The wild fluctuations in EU car sales proved to be a powerful catalyst driving dealers in large numbers to adopt cost-effective online marketing solutions that not only reduce costs but deliver measurable results. As a result your company was able to make important breakthroughs in several European countries, including France, Belgium, Spain, Portugal, and Italy. During the same period, the European division of izmoStudio made great strides in the automotive visual media segment, and continues to be the #1 automotive imagery and visual marketing solutions provider in the EU market. France:Your Company is the #1 automotive website provider in France, with a client list including virtually the who's who in automotive retail space -PGA, HESS, the Lamerault Group, Metin Group, and Kayser Group. Your company is providing retail websites for Peugeot, Citroen, Renault, Audi, Alfa Romeo, Abarth, Chrysler, Chevrolet, Dacia, Dodge, Fiat, Fiat Professional, Hyundai, Jeep, Jaguar, Land rover, Kia, Lancia, Lexus, Mini, Mercedes Benz, Nissan, Opel, Porsche, Saab, Seat, Skoda, Subaru, Suzuki, Toyota, Volkswagen, and Volvo dealers as well as automotive portals for HESS. Spain: Your company made inroads in the Spanish automotive market with over eighteen websites for the Vilamobil group, Augusta Car Group, and Grupo Nicolas. Portugal: izmo had made an important breakthrough in the service segment in Portugal, with hundreds of dealers signing up for an innovative service solution for Ancra. Presently izmo has 16 websites serving dealers in Portugal. Italy: izmo has made significant inroads into the Italian market, with the addition 12 auto dealer websites for Linea Blu, Biella Auto, Central Car Spa. Conditions are ideal for izmo to launch izmoWeb as a generic one-stop web marketing solution for businesses in EU, as well as the new version of izmoCRM, and a new appointment management system. ASIA India: Indian Dealers are increasing turning towards web based marketing to generate more sales. As a result, Carazoo continues to be the#l car dealer website provider in India, with 184 online showrooms currently live, izmo is now offering izmoWeb as a generic one-stop web marketing solution for businesses in India, and will be formally launching these services shortly. A new version of izmoCRM, and an appointment management system would also be introduced shortly. Outlook: izmo is uniquely positioned as the innovation leader globally, in the highly competitive automotive retail space, providing end-to-end solutions ranging from a cloud based responsive website platform, online marketing & social media, email marketing, CRM, lead management, and data analytics, apart from market-leading interactive selling tools and automotive photography, izmo is currently positioning itself to package and launch some of these services globally for any business, particularly in the SMB segment. This is a defining moment for your company, since rapid strides in the global web space can propel izmo into the big league. 3.Risks and concern: izmo operates in markets worldwide. Changing market equations have a bearing on the operations of the Company. The Gains of the Company are significantly inter linked with the adoption of web business systems all over the Globe. Rapidly developing markets and the competition in these markets are major concerns for your Company. 4. Internal control systems and their adequacy: The Company is one of the main users Cutting-edge Technology and is avidly using web services to reach prospective customers worldwide. We have implemented control mechanisms in real-time and are confident that the established internal Control mechanism is commensurate with the size and the operation of the Company. 5. Discussion on financial performance with respect to operational performance: The performance for the year has shown a marked improvement over the brvious year. This is primarily on account of improvement in the US market consequent to new business opportunities which arose, leading to an increase in export revenue by 16% as compared to the brvious year. Enterprise connectivity product sales have shown a slight increase as compared to the brvious year. The Other income has shown a sharp fall primarily on account of INR remaining quite stable against the US Dollar. 6.Material developments on the Human Resources/ Industrial Relations front, including number of people employed: The company has increased its employee headcount substantially in FY 14-15 as compared to the brvious year, with 203 employees in payroll as of March, 2015. This is to enable fast-track development of products which are scheduled to be launched in the U.S., EU and Asian markets shortly. By order of the Board For IZMO Limited Sd/-Sanjay Soni Managing Director DIN:00609097 Address: Flat No. 9,Prestige Casablanca Apartments,12/1, Airport Road,Bangalore-560017 Sd/-Shashi Soni Chairperson andWholetime Director DIN: 00609217 Address: Flat No. 9,Prestige Casablanca Apartments,12/1, Airport Road, Bangalore-560017 Place: BangaloreDate: 3rd September, 2015 |