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Analytical perspective from various Business Models

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Presentation Disclaimer
The information in this presentation is an overview and does not contain all necessary information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Firstobject Technologies Limited. The information contained in this presentation has been prepared in good faith by Firstobject Technologies Ltd. However, no representation or warranty, expressed or implied, is made as to the accuracy, correctness, completeness or adequacy of any statement, estimates, opinions or other information contained in this presentation. Certain information in this presentation refers to the intentions of Firstobject Technologies Ltd, but these are not intended to be forecasts, forward looking statements, or statements about future matters for the purposes of the Companies Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors. Accordingly, Firstobject Technologies Ltd, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of events referred to in this presentation will occur as contemplated.

Innovate Transact Implement The Key Executive Team at Firstobject :


Dr. Vivek Hebbar, Chairman & Director : Dr.
Vivek Hebbar is an MBBS and MD in Medicine and holds AIFH and DHA. He also holds an MBA degree. Dr. Hebbar, a marked Visionary, not only has a good reputation but also provides very valuable business contacts. His valuable experience and insights have helped strategizing the companys Knowledge based Processing Services, Product Offerings and New Initiatives in e-education.

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Mr. N. Shiva, Director : Mr. N. Shiva is a man of few words. He is an
Engineer by vocation. He was the founder of the erstwhile ICICI Infotech Limited, which is now known as 3I Infotech Limited. Mr. N. Shiva has developed various leading software models, which have set a trend in the industry. He is known in industry circles as a trendsetter. He has vast business contacts and business development skills apart from being an expert executioner. He leads the overseas business strategy for the company under strategic alliance through Object Xperts Inc, USA.

Mr. P. Ramnath, Director : Mr. Ramnath has Done MBA and has fifteen
years of Experience in Finance and Banking. He has lead many financial closures for the expansion activities of businesses ranging from brick and mortar industry to information technology segment. He is a source of inspiration and provides guidance for the new business strategies of the Company.

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Mr. Sailesh Pithe, Director: Mr. Sailesh is a Science Graduate with a Master
in Marketing Management, he is a lead anchor and producer of various business shows on Door Darshan and Electronic Media with his experience and expertise, he navigates the Investor Relations strategy of the Company. Mr. Sita Rama Sastry, Director : Mr. Sita Rama Sastry with his impeccable educational background holds M.Sc, PGDCA, and a Master in Business Administration. He is a meticulous strategist in business planning and execution, he provides the guidance for business strategy and execution at Firstobject.

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Mr. Sriram Kumar, Associate Director / Chief Technology Officer:
Mr. Sriram Kumar is a topper in M. Tech from the University of Pondicherry. He comes with around 18 years of experience in the field of IT/ ITEs working with software giants like PCS, Infosys and Mahindra Satyam. He has worked extensively in India and the US. He is the backbone of the technology initiatives at Firstobject. Ms. Lakshmi Kameswari, Chief Operating Officer: Ms. Lakshmi Kameswari is a Topper in M.SC. She holds a Post Graduate Diploma in Computers and is currently pursuing Ph.D in Management under the Executive - Research Stream. She previously worked as a Research Associate with Leading Research Organisations in USA. She charts the day to day activities of the company with her varied experience and expertise.

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In Summary
Firstobject Technologies Limited is a small-size IT/ ITEs and Software Company. It has done remarkably well with its array of product suites and service offerings. The Organic growth of FTL has been tremendous. The companys research division already is a well known name among the Institutional whos who. The Research division has a diverse subscription base of both Retail as well as Institutional clientele. Firstobjects foray into E-education space makes a good bet as the company diversified into the area of Web-Enabled Interactive Learning Solutions in order to offer complete educational support solutions to the student fraternity by taking advantage of the companys existing expertise in technology, content building and course delivery.

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Widening Reach :
Firstobject Technologies Ltd is now operating from three different geographical locations as a strategy for implementing a strong Continuity of Business Offerings. The company now operates from Hyderabad City, Kakinada and Visakhapatnam. Hyderabad and Kakinada units are registered under STPI and the Visakhapatnam unit is registered under VSEZ. The company has increased its manpower and is gearing up for a wide and varied reach.

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Latest Developments in the Company
Implementation of e-education modules under ICT in Marathi and English Medium in 16 schools in Maharashtra: The Company is executing an order for implementation of Interactive Classroom Teaching Modules on Turn Key Basis for 16 schools of Walawa Sangli Group of High Schools spread across the State of Maharashtra with a total student base of about 19600. The courses ranging from Junior Kg to 12 Standard is being implemented in both Marathi and English Mediums. Implementation of e-education for Saraswati Educational Society, Andhra Pradesh: The company has procured an order from leading educational group in Andhra Pradesh for implementing e-Education modules from pre-primary to tenth standard both in English and Telugu mediums of Andhra Pradesh State Board syllabus. Saraswati Educational Society Runs Schools in the name of Gayatri Model Schools and it has a good presence across the North Andhra Region..

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AWARDS AND ACCOLADES Best ITES Company by STPI Kakinada: The Company has been awarded The Best ITES Company" from Kakinada region for the year 201011 by STPI (Software Technology Parks of India). Indian Leadership Award for Industrial Development : The Company and Dr. Vivek Hebbar, Chairman of the Company have been awarded the Indian Leadership Award for Industrial Development under Small Enterprises Category for the contributions in e-education as a debutant on a national basis. Bharat Vikas Ratan Award : The Company and Dr. Vivek Hebbar, Chairman of the Company have been awarded for making available e-learning / education modules at affordable prices to one and all as a Debutant in the field of Education.

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Rajiv Gandhi Excellence Award 2010 : The Rajiv Gandhi Excellence Award 2010 has been conferred for the Outstanding Professional Leadership skills exhibited by Mrs. Lakshmi Kameswari (C.O.O), in making an SME Company, Firstobject Technologies Limited, a Sustainable Turnaround Company.

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Firstobjects Business Analysis Through Various Business Models

Innovate Transact Implement Business Analysis through Porters Model


Where do we stand? Please see in the next page.

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1. Threat from New Entrants: Firstobject does not have any threat from new entrants as the company seeks a cost leadership strategy to achieve the position of lowest cost producer in the industry. Threat from substitutes: Firstobject does not have any threat of substitute products as the company has a differentiation strategy which makes the products unique in nature and best quality which are deliverable to the customer, including customer service. Threat from Suppliers: Firstobject has tie ups with good suppliers who has credibility in the market and as the company has wide reach across the country the company enjoys the bargaining powers from suppliers situated at various locations of the country.

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4. Threats from the power of Buyers: Firstobject does not have any threat from the power of buyers because of its low cost advantage. The company offers its products at very economical rate that a consumer can afford. Apart from retail customers the company is also tapping various State Governments with whom the company intends to implement its ICT education model under PPP. Rivalry and competition among competitors: Though Firstobject does not enjoy the benefits of early entrants, the company has captured good market share when compared to its competitors. The company does not face much competition from it peer groups as the company has entire range of products in its fold in e-education, both in english and vernacular., whereas the peers group is in limited segments in e-education.

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GE 9 Cell Matrix Analysis of Firstobject

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BCG MATRIX MODEL ANALYSIS

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CORPORATE REJUVENATION
This year the company has undergone landmark restructuring exercise, which is an important step to maximize the shareholders wealth, crucial for the ongoing endeavors to create a vibrant revenue growth model that is both focused on IT/ITES and E-education. The company underwent through a corporate restructuring comprising capital reduction, consolidation of shares and amalgamated Pre School products company, which is a backward integration for providing the entire product line from play school to higher secondary education modules. Corporate restructuring has strengthened the fundamentals of the company and also opened a window to a variety of value enhancing investment opportunities, which can augur well with the ambitious growth plans of the company.

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Corporate Restructuring Rationale:Value unlocking and wealth maximization of Shareholders. Clean Balance Sheet and Professional Management of operations. It offers tremendous scope for enhancing the corporate brand image. The merger / amalgamation will increase scale of operations in the combined entity owing to Improved synergies and administrative economies. Paves the way for creating a larger entity for unlimited scaling possibilities.

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Shareholding Pattern Post Restructuring

Post Scheme of Arrangement the shareholding of: Promoters / PAC stands at 61%. Individual holding (Public) shall be 37% and Corporate Bodies (Public) holdings shall be around 2%.

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COMPANYs ONLINE TUTORIAL OFFERINGS First-e-School: First ESchool is a web enabled e-classroom. www.firsteschool.com is a paid portal and offers curriculum for State Boards, CBSE and ICSE. The Company is in the process of franchising the "first-eschool brand across the country. The Course content is of top quality and helps simplify the students learn with ease. First Law School : The Companys portal www.firstlawseries.com is probably ones of its kind portal meant for the E-Legal education. It helps impart L.L.B (graduate law course materials) under 5 year stream and also under 3 year stream to cater to the requirements of graduate law students. The Company has empanelled many eminent legal educationists for the said purpose. The company also provides coaching material for LLB entrance examination.

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First Management School: The Companys Management portal www.firstmanagementseries.com caters exclusively to the Business Management Studies. The study material covers all management subjects. The Model test papers are prepared in such a way that it will help students clear the entrance examination with flying colours. First Engineering School: The companys Engineering School Portal www.firstengineeringschool.com, provides the detailed course materials for major engineering entrance examinations such as AIEEE, IIT JEE, EAM CET, MH CET, etc, which is the stepping stone to the career of an engineer.

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Firstcall Research: The Companys portal www.firstcallresearch.com is its KPO initiatives. Firstobjects research capabilities have carved out a leadership position by catering to the worlds whos who. This portal provides Institutional quality Research Reports, covering industry, economy and company specific analysis of more than 1000 listed companies in India to more than 950 FIIs, FIs and Hedge Funds world across. First E-Pandit: The Companys portal www.firstepandit.com is its E-Commerce initiative. First-e-Pandit shall mainly caters to the needs of Non Resident Indians (NRIs) and also Indians staying away from their home regions. Under First-e-Pandit, all the Festivals / Ceremonies in an Indian calendar year are made available online along with the procedures to perform the same and live performances in all Indian languages with customization in respective languages, culture and tradition. The testing of content for seamless offerings for various occasions is still on and we expect that it may be revenue accretive only after FY 2012.

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Forward Looking

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Quality education through standardized and innovative teaching methods
In a sector which is largely unorganised in India, we have adopted standardized and innovative methods for quality education. Our curriculum provides a breakdown of the day-to-day activities on a minute-by-minute basis to be implemented by the teachers. The courses are taught through a combination of unique content, animations and practical examples. To ensure quality education, we have empanelled professionals through various field of education.

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Scalable Business Model
We are confident that our business model is scalable as we have expanded our presence to various locations within a very short span of time. The uniformity adopted by us in development and dissemination making our products unique and helps in making our business scalable. As a part of our educational services to K-12 schools, we have introduced novel teaching aids supported by technology to improve the quality of education. We have introduced interactive whiteboards which induces adoption of technology at a very early age in the students and the same technology is used across the K-12 schools. Also our techniques include making students an active participant in the learning of a subject by seeking their active participation. The audio video curriculum aids enhance students retention capabilities and ease understanding of concepts.

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STRATEGY Our goal is to maintain a leadership position in providing educational services to K-12 schools and beyond in India. Enter new geographical markets and further deepen our presence in existing markets We are ready to enter into contracts with several K-12 school Managements for providing educational services to K-12 schools.

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Strategic Acquisitions and Partnerships
As a strategy, we are operating through franchisees model. In order to expand our business and presence in the market in pre-schools, we evaluated opportunities and ready to run the pre-schools under our brand name.

Providing quality education


We believe that our standardized method of teaching sets us apart from our competition. We believe that quality of our education content will continue to be an important factor driving the success of our products. We will enhance six sigma model to improve the quality of the content for our entire range of products.

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Increasing penetration level in pre-school industry
The pre-school industry currently has 1015% of the urban population in the 24 years age bracket enrolled in pre-schools in the country. However, with greater thrust on education and increasing awareness about the necessity of quality pre-school education, the penetration level is set to rise, thus resulting in growth of the pre-school and Schooling Industry in general.

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Growth Drivers in the Education Sector Government initiatives to improve literacy rate
In order to improve the literacy rate in India, plans like SSA, MDM have been introduced by the Central Government. The increased focus on education has resulted in the K-12 enrolments in public institutions to grow steadily.

Massive allocation of Funds for Education sector in Union Budget 2011-12:


The UPA Government has given more emphasis on Education Sector and has allocated funds to the tune of Rs. 52,000 crores in the Union Budget 2011-12.

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Government Looking out for PPP Model:
The State Governments are looking forward to enhance spread of education to the nook and corner of each State. To achieve this goals State Government is implementing Public Private Participation model. There are very few player in Industry who has entire package of products under one roof and Firstobject is one of the player amongst them having quality products with unbeatable rates compared to its peers.

Heavy spending on Education:


In India spending on higher education currently stands at 46,200 crore. The growth for this segment is projected at 12.8% and is expected to touch nearly 1,50,000 crore in the coming decade. Right from kindergarten to post graduation, there is an influx of players who are looking to create a niche through various marketing and branding initiatives. Firstobject is one player amongst other having entire range of educational products.

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Changes in the Indian economy
Structural changes in the Indian economy such as urbanization and rising disposable income coupled with increasing emphasis on education by parents is expected to accelerate the household expenditure on education. The transition of households from lower Income to higher income bracket will provide an impetus to spend on education by private households.

Increased private sector investment


The presence of private players in the K-12 sector has been increasing due to the need for quality education and better infrastructure, which are found lacking in several government-owned institutions. The share of private institutions in the K 12 segment will gradually rise to 26% in 2014-15 from 19% and 23% in 2004-05 and 2009-10, respectively.

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Revenue Boosters:
In our view, Revenue Boosters are high order inflows or substantial increase in business volumes in the wake of company getting government orders and heavy subscriptions to its education portals.

Key Risks :
We believe, key policy changes in the policy decision with regard to the outsourcing of works from the USA or European countries, sudden changes in Educational syllabi, etc.. can affect effect the revenue of the company, but company had well diversified in its business verticals that even during recession period company has shown steady growth.

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Firstobject India Technologies Ltd


1st Floor, Swayamkrishi, Smiline Building, No: 8-3-952/10/2 & 2/1, Srinagar Colony, Hyderabad-500 073 Tel: 040 - 20000235/20000233 Website: www.firstobjectindia.com Email: info@firstobjectindia.com

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