IZMO Ltd Management Discussions

Business Overview

izmo limited has successfully evolved from a three-division software company into a diversified technology conglomerate with four operational divisions spanning Digital Media, Automotive Technology, Al analytics, and Advanced Semiconductor Packaging. The companys vision to Build success through innovation, commitment to quality, and serve customers as true partners reflects its strategic approach to sustainable growth across multiple high-value technology sectors.

Divisional Performance and Strategic Developments

1. izmostock - Interactive Media & Stock Photography Division

Market Leadership Position

izmostock has established itself as the global leader in automotive stock photography, maintaining the worlds largest portfolio

with over 2 million high-resolution images.

The divisions intellectual property strategy, anchored by comprehensive copyright protection through U. S. Library of Congress filings, has created a robust and defensible business model.

Market Dynamics and Growth Driver

The automotive stock image segment operates within a thriving global stock image market valued at approximately $6.1 billion in 2024, with projections indicating growth to over $10.3 billion by 2032. The automotive niche is uniquely positioned for exponential growth, driven by the automotive industrys digital transformation. The global automotive e-commerce market is expected to surge from $100.14 billion in 2024 to over $343.13 billion by 2032, creating insatiable demand for professional automotive imagery to populate virtual showrooms, power online configurators, and fuel sophisticated digital advertising campaigns.

Revenue Resilience and Al Impact

Unlike many content creation businesses facing disruption from Al-generated imagery, izmostocks focus on product-correct automotive images for retail applications provides natural protection against Al competition. The specialized nature of automotive retail imagery requirements, combined with the companys established quality standards, maintains significant barriers to entry. This authenticity imperative creates a powerful compliance moat, as the unique, non-fungible nature of used vehicles, combined with legal regulations and platform mandates, makes authentic, product-correct photography irreplaceable.

Operational Excellence

The divisions Indian CGI production team delivers world-class content at competitive cost structures, achieving gross margins exceeding 50%. This operational efficiency, combined with strong pricing power, positions izmostock as a significant contributor to overall profitability. The companys comprehensive coverage includes images of all major makes and models

in every available OEM color, with accurate right-hand drive versions for relevant markets.

Strategic Copyright Enforcement

The companys proactive approach to copyright protection has created an additional revenue stream through successful collection of past-use license fees from global infringers, demonstrating the tangible value of its IP portfolio. The extensive client list includes 70% of the top global leasing companies, four of the five top global car rental companies, and thousands of dealer websites.

2. izmoauto - Digital Retail & Marketing Solutions

Geographic Expansion and Market Penetration

The division has successfully expanded its digital solutions to automotive dealerships, with particular strength in the European market where it has emerged as the largest provider of digital web and marketing platforms.

The division now supports over 3,000 retail automotive clients across 30 countries through its comprehensive digital solutions.

Strategic Acquisition & Integration

The acquisition of UK-based Geronimo Web Ltd. has proven highly successful, with the acquired operations doubling revenue within one year of integration. This acquisition led to the formation of izmocars UK, which has rapidly emerged as a leading provider of digital marketing and retail technology solutions for OEMs and automotive dealerships. The integration of Geronimos expertise, talent, and market relationships with izmocars global resources positions izmocars UK as a critical growth engine for the group.

Market Leadership in France

izmocars is one of the largest providers of auto dealer websites in France, servicing OEMs as well as the largest dealer groups in the country. The izmoauto web platform is built on the latest front-end technology, delivering unmatched optimization and lightning-fast speeds. The management hierarchy built into izmoauto

websites allows auto retail brands to control their marketing and promotional offers at the brand, zone, regional, and storefront levels, providing a distinctive competitive advantage.

Enterprise Client Validation

The divisions credibility is evidenced by multiyear contracts with leading OEMs, including a significant digital transformation contract for an entire dealer network in Germany. Such enterprise-level commitments provide revenue visibility and validate the companys solution quality.

Market Opportunity

The continued shift toward online automotive retail presents sustained growth opportunities. With 95% of car shoppers now relying on online resources for research & U.S. dealerships spending over $9.2 billion in advertising annually, the division is well-positioned to capitalize on this secular trend.

3. FrogData - Al-Driven Decision Analytics Platform

Product Innovation and Market Response

The launch of Al-driven products for Fixed Operations has generated strong market acceptance, with the division signing as many new customers in the current year as in the entire previous year following product release. The division addresses the massive fixed operations market, where nearly 49% of an auto dealerships revenue and profit comes from service and parts handling.

Value Proposition Validation - FixedOps Mojo

The FixedOps Mojo Service Operations Management Platform has demonstrated quantifiable value creation, with customers reporting potential gross margin increases exceeding $200,000 annually. Dealerships like Caruso Ford Lincoln in Long Beach, CA are reporting over half a million dollars in added gross profit and a $48/hour increase in labor rates. The platform unifies every aspect of fixed operations into one cost-effective solution, streamlining processes and boosting profitability

through operations management, KPI dashboards, and data-driven decision making.

Market Expansion Strategy - FixedOps Velocity

The introduction of FixedOps Velocity - Hyperlocal Service Marketing addresses the substantial aftermarket service opportunity. Currently, dealerships capture only 30% of the lucrative after-warranty service market while independents claim 70%. FixedOps Velocity is designed to reverse this trend through precision-targeted, hyper-local marketing that connects dealerships directly with service customers in proximity to their locations.

Market Size and Growth Potential

The U.S. automotive service market generated over $156.46 billion in 2024 from more than 270 million repair orders, representing significant growth from $142.62 billion in the previous year. This expanding market provides substantial opportunities for FrogDatas specialized solutions.

Customer Satisfaction and Testimonials

Strong customer testimonials and satisfaction metrics provide organic marketing leverage

and support premium pricing strategies, with proven tools consistently delivering 54%+ increases in gross profits.

4. izmomicro - Advanced Semiconductor & Photonics Packaging

Operational Stabilization

The division has achieved operational stability with a healthy order book, indicating successful execution of the companys diversification strategy into advanced manufacturing, izmomicro provides world- class silicon photonics packaging, assembly, and manufacturing solutions, addressing critical challenges of optical alignment, thermal management, and heterogeneous integration.

Market Leadership in India

izmomicro has established itself as the leading provider of advanced semiconductor packaging in India, benefiting from the governments 310,000 crore semiconductor industry

Silicon Photonics Strategic Positioning

The companys entry into silicon photonics represents a significant strategic advancement, targeting one of the fastest-growing segments in the semiconductor industry. As Indias first silicon photonics packaging company, izmomicro enjoys first-mover advantage in this high-value market. The global silicon photonics market is experiencing explosive growth, projected to reach $9.65 billion by 2030 with a compound annual growth rate exceeding 29.5%.

Technology Partnership with NT Madras

The exclusive industry partnership with NT Madras for silicon photonics development, funded by MEITY, provides access to cutting- edge research and development capabilities. The Fiber-Array Unit (FAU) Attachment Tool for Photonic Chip Packaging developed by izmomicro with NT Madras was launched by S.Krishnan, Secretary, Ministry of Electronics and Information Technology, Government of India.

Market Applications and Growth Drivers

Silicon photonics technology addresses growing demands across multiple sectors including hyperscale data centers and cloud computing, next-generation telecommunications (5G, 6G), Al and optical computing, quantum computing and secure communications, and biomedical imaging and optical sensing. The technology significantly boosts bandwidth, reduces latency, and improves energy efficiency by using light instead of electrical signals to transmit data.

Technical Capabilities

izmomicro brings specialized expertise in high-precision photonic chip packaging, integrating active auto-alignment, advanced optical imaging, and detector systems with custom substrate and package design. These solutions include fiber-in and fiber-out architectures, high-speed RF integration, and precision positioning technologies, ensuring superior performance for next-generation communication, Al, and quantum computing applications.

FINANCIAL OUTLOOK AND GROWTH PROJECTIONS

Management projects aggressive growth in revenue within three years across all divisions. This ambitious target reflects:

* Continued expansion in established markets

(automotive digital solutions and stock photography)

* Rapid scaling of AI analytics platforms

leveraging demonstrated customer value

* Semiconductor division growth driven by favorable industry dynamics and government support

* Silicon photonics market emergence with izmomicros pioneering position in a market projected to reach $9.65 billion by 2030

STRATEGIC ADVANTAGES AND COMPETITIVE POSITIONING

Diversification Benefits

The companys multi-sector presence provides natural hedging against industry-specific downturns while enabling cross-pollination of technological capabilities across growing markets.

Global Operational Excellence

With offices spanning San Francisco,

Chicago, Paris, Brussels, Cologne, London, and Bangalore, izmo maintains a truly global operational footprint while leveraging Indias cost advantages for development and manufacturing.

Technology Integration Capabilities

The companys core competency in managing diverse technologies, from AI analytics to precision semiconductor packaging, demonstrates sophisticated technological integration capabilities that differentiate it from single-focus competitors.

Market-Specific Positioning

Each division holds strong market positions-

izmostock as the global leader in automotive stock photography, izmocars as one of the largest providers in France and growing presence across Europe, FrogData with proven ROI-generating solutions for the $156+ billion U.S. automotive service market, and izmomicro as Indias first silicon photonics packaging company.

CONCLUSION

izmo limited has successfully executed a sophisticated diversification strategy, creating a unique portfolio of technology businesses with significant growth potential across multiple high-value sectors. The companys ability to achieve market leadership positions across diverse sectors - from automotive stock photography to silicon photonics packaging - combined with strong customer validation and healthy financial metrics, positions it well for sustained growth.

The strategic entry into silicon photonics, supported by government initiatives and academic partnerships, represents a particularly compelling long-term opportunity in a market projected to reach $9.65 billion by 2030.

The automotive divisions benefit from the digital transformation driving the automotive e-commerce market from $100+ billion to $343+ billion by 2032, while the proven ROI-

generating capabilities of FrogDatas solutions address the expanding $156+ billion automotive service market.

Looking ahead, the company is positioned for accelerated growth through strategic investments and market expansion. With izmomicros cutting-edge silicon photonics capabilities backed by government funding and IIT Madras partnership, izmo is uniquely positioned to capitalize on Indias semiconductor revolution while simultaneously

expanding its automotive technology footprint across global markets.

The companys proven track record of successful international expansion, combined with its first-mover advantage in high-growth technology sectors, creates a compelling foundation for achieving the ambitious growth targets within three years while maintaining market leadership across all operational divisions.