Challenge
Business Plan
2009. March
by Semantics. Co., Ltd.
Confidential : This proposal and all contents herein are the sole property of Semantics. Co., Ltd.
Any reproduction or distribution of this document without the written consent of Semantics. Co., Ltd. is prohibited.

Table of Contents
1. Company Overview
2. Product , Service
3. Market & Marketing Strategy
4. Operations
5. Key People & Management
6. Finance
7. Risk Assessment
8. Viability
Appendix. Press Release Data
2

1. Company Overview
1. Vision
2. Key Information
3. Summary
3

1. Company Overview
• Vision
Our vision is
to make wonderful world
that shares and enjoys
fruitful information & knowledge on the web
without a obstacle of language & country
By using the next generation search platform
* Semantic Web ?
 It derives from W3C director Sir Tim Berners-Lee's vision of the Web as a universal medium for data,
information, and knowledge exchange. World IT industry has been trying to develop the core technology of
the next generation search engine that understands meaning of words.
 SemanticWeb is the next generation intelligent Web: a computer can understands words and sentences and
carry out logical reasoning. The intelligent Web analyses analogies and interrelations of words to search a
result that a user wishes to locate. It is the Stem Cell technology of IT industry.
4

1. Company Overview
• Key Information
Company SEMANTICS, Inc. / SEMANTICS, Lab.
CEO Arthur Cho
Head of Research CI Chung
Establishment April 2006
Business Internet search service, podcating servicing
Main Business www.qrobo.com / www.podics.com
Employee 47
Company URL www.semantics.co.kr
TEL 02) 6000-6002
FAX 0505-690-6000
5

1. Company Overview
• Summary
Intelligent Internet Company; Semantics
Established SEMANTICS, Inc. in 2006 after it has invested 10 years to develop semantic based search engine
In 2008 the company has launched ‘Qrobo’; It is the world first commercialization of a semantic based
search engine
Built the world largest ‘Ontology’, Holding unique technology of building up ‘Ontology’ automatically
99.9% Automated/Computerized Search Engine:
 Qrobo’s search robot can analyses meaning of web information and automatically sort them under
prefixed categories
 Ranks web information by exposure order by the prefixed categories. It is called ‘Semantic Rank’ and
it helps to carry out accurate/relevant search
Intelligent Robotic Semantic Search Engine : Qrobo (www.qrobo.com)
Multimedia Listing Service Podcast – Podics (www.podics.com)
6

2. Product , Service
1. Technology
2. Compare Competitors
7

2. Product, Service
• Technology
I. Numerical Vector Language
 Technology that numerates meaning of words. Despite of a language
type whether it is English of French, the technology understands the
structure of the language, the meaning, numerically.
(This is the world unique commercialized technology)
 The core technology can be applied to any language. A language
adaptation period is circa 1 month and then the technology can build
any adapted language search engine.
(2 months after the language adaptation period an Alpha site can be
launched. Within 1 year after the language adaptation period an official
site can be launched.)
8

2. Product, Service
• Technology
II. Application of the Numerical Vector Language has no limit
All Languages -‘One Standard Process’
English Japanese Chinese French German
Vector Vector Vector Vector Vector
Qrobo Vector Language No, Linguists
No, Dictionary
Autom ated Transposition
No, Morpheme Analyzer
English Japanese Chinese French German
Assem bly Language
M achine Language
10001010110011010001100010101100110100010001010110011010001000101011001101000
9

2. Product, Service
• Technology
III. Intelligent Search Agent equipped with Semantic Web technology
 The world largest ‘Ontology’
 Real time ontology update : automatically abstracting ontology form
the web builds up its own ‘Ontology’ (the world unique technology)
 At present 35 billion ontology has been built up (this is the world
largest)
 More accurate/relevant search result through ‘Semantic Rank’ system
 Searched information through the ‘Ontology(Knowledge Foundation)’
is analyzed by number of algorithms, such as semantic relation, birth
of the information and etc., then expose the most relevant
information on top rank. This allows Qrobo to provide more
accurate/relevant search result.
10

2. Product, Service
• Technology
III. Intelligent Search Agent equipped with Semantic Web technology
W3C Standard Technology
Study Input
Data
Humans
Qrobo Original Technology
Crawling Automated Make
Web
Robots
11

2. Product, Service
• Technology
III. Intelligent Search Agent equipped with Semantic Web technology
W3C Standard Technology Qrobo Original Technology
Another Site Qrobo.com
10,000 ~ 100,000 Ontologies 35,000,000,000 Ontologies
about for many years about 3 months,
(2~5 years), many humans no humans only robot
12

2. Product, Service
• Technology
IV. 99.9% Automation/Computerization (robot does it all)
 Full automation from a planning to managing
 Once a web site developer let the robot knows definition of a planned
service then the robot abstracts all relevant web information, ranks
them, monitors, and update information automatically
 Reduces huge amount of manual work, such as sorting and editing
operation, therefore it requires the minimum manpower who can cover
the creative work that the robot can not do.
 Automated/computerized management will let you have a huge
budget saving
13

2. Product, Service
• Technology
IV. 99.9% Automation/Computerization (robot does it all)
Original
Semantic Search Technology
Automated Ontology Builder
Super Fast Development Time
Time & Real Cost Saving
for All language Service
Profit Margin Increase
Focus on Service Planning Robot Management System
Innovative Trials for New Services
with Technology Barrier
Highly Efficient System
14

2. Product, Service
• Technology
- Qrobo’s 5 core ‘Serve Robot’
 Automatically builds up Qrobo Ontology Dictionary with abstracting web
ONTOrobo
information. (Ontology Builder)
 Analyses document/information within 0.03 seconds and then sort it out
DOCUrobo
under 1250 categories, such as culture, politics, finance and etc.
 Analyses a keyword in real-time by year, month, date, season. Manages
ISSUErobo lifecycle, popularity and preference of a keyword and then monitors
transition of issues that are relevant to the keyword.
 Locate core words from a document/information and locate words that
TAGrobo they have high relevancy, and then automatically tags them to
document/information.
 By the users various circumstantial information and previous search
PERSONALrobo
preference, the robot recommends the most relevant search results.
15

2. Product, Service
• Technology
None Semantic Technology Semantic Technology
1(Human) : n(Info) 1(Human) : 1(Robot) : n(Info)
INFO
INFO
INFO Knowledge
INFO Knowledge
ROBOT
INFO People
INFO
People
Intelligence
Intelligence
16

2. Product, Service
• Technology
W 3C Qrobo
Sem antic W eb Sem antic Technology
Search Solution Search Solution
Sem antic w eb Solution vs Autom ated Sem antic
W 3C Standard Technology Qrobo Original Technology
M anual
W 3C Standard Technology Autom ated Ontology
vs
Qrobo Original Technology
OW L XM L RDF
17

2. Product, Service
• Technology
Ow n Technology
Server Unit M aking Server For Qrobo
Operating System Linux Based ‘Qrobo Sem anN UX ’
Clustering Qrobo Logical Clustering System
Database System M ysql Based ‘Qrobo Sem anSQL’
Storage System Qrobo Enterprise Storage System
18

2. Product, Service
• Compare Competitors
Transition of Search Engine and Technology Comparison
Hakia
SEMANTIC
Ask
Powerset
Altavista Google
Quintura
Excite
Yahoo
Lycos
19

2. Product, Service
• Compare Competitors
Transition of Search Engine and Technology Comparison
None Nex t Google.com
HAK I A.com P OW ER SET.com QUI NTUR A.com
Supports -
Hakia Supports -
Hakia Wikipedia, Powerset Quintura
Manual Yahoo
Automated Freebase
Semantic Technology Base
20

3. Market & Marketing Strategy
1. Forecast of IT
2. Status & Forecast of Web Environment
3. Status & Forecast of Search Engine
4. Comparison Search Engine
5. Search Ads (Korea)
21

3. Market & Marketing Strategy
• Forecast of IT
IT Road Map Toward 2010, Semantic & Autonomic
1990s 2000s 2010s
Robots and Agents will Autonomically make Decisions by gathering and Accumulating expert knowledge.
IT with  Semantic Web
Intelligence  Autonomic Computing
 Agent-embedded Automobile Navigation Systems
Source: http://www.nri.co.jp/english/opinion/papers/2006/pdf/np2006102.pdf
IT Road Map Toward 2010 / Nomura Research Institute, Ltd.
22

3. Market & Marketing Strategy
• Status & Forecast of Web Environment
- The Intelligence is in the Connections
The Global
Artificial Intelligence Intelligent Agents Brain
Enterprise
Personal Semantic Minds
Web 3.0 Web 4.0
Degree of Information Connectivity
Assistants Webs Smart
Marketplaces
Group
Semantic Web The Metaweb
Minds
Connects Knowledge Connects Intelligence
Ontologies Lifelogs The
Knowledge “Relationship”
Management Decentralised
Knowledge Web
Semantic Communities
Taxonomies Bases Weblogs
Search Engines Enterprise Marketplaces Wikis
Portals Community
Auctions
Content Portals RSS Portals
Weblogs
Web 1.0 Web 2.0
Web Sites
Groupware
PIMs
The Web Social Software
Connects Information Connects People Social
eMail USENET Networks
Databases “Push”
Conferencing
Pub-Sub
File Servers P2P File-sharing IM
Degree of Social Connectivity
23

3. Market & Marketing Strategy
• Status & Forecast of Web Environment
- The Intelligence is in the Connections
Intelligent Web
Connections between Information
Web OS
Web 4.0
2020 - 2030
Intelligent personal agents
Semantic Web Web 3.0
Semantic Technology OWL
SWRL
2010 - 2020
AJAX SPARQL Semantic Databases
OpenID
Semantic Search
Social Web RSS
ATOM Widgets
P2P RDF Mashups
Office 2.0
Javascript
SOAP XML
Flash Web 2.0
The Web Java 2000 - 2010 Weblogs Social Media Sharing
HTML
HTTP SaaS Social Networking
Directory Portals Wikis
VR
Keyword Search Lightweight Collaboration
The PC BBS Gopher Web 1.0 Websites
1990 - 2000
MMO’s MacOS SQL
Groupware
SGML Databases
Windows
File Servers
The Internet
PC Era
FTP IRC Email 1980 - 1990
USENET
PC’s File Systems
Connections between people
24

3. Market & Marketing Strategy
• Status & Forecast of Search Engine
- Intelligent Search Services, Evolutionary trends of Web Search Technology, Semantic Search
Productivity of Search
The Intelligent Web
Web 4.0
2020 - 2030 Reasoning
The Semantic Web
Semantic Search
Web 3.0
2010 - 2020
The Social Web
Natural language search
Web2010 2.0
The World Wide Web 2000 -
Tagging Semantic Search
Web2000
1990 -
1.0
Keyword search 2010-2020
The Desktop
Directories
PC Era
1980 - 1990
Files & Folders
Databases Keyword Search
Directory Search
Database Search 2000-2010
Amount of data
25

3. Market & Marketing Strategy
• Comparison Search Engine
1st Generation 1.5th Generation 2nd Generation 3rd Generation
Name Yahoo AltaVista Google Qrobo
Keyword Keyword
Method Directory Search Keyword Search
+Ranking Search +Semantic Search
Search robot locates
Search robot
and evaluates The next generation
locates web
Directory sorting reliance of web technology to protect
Technology information but
by manually information but user from a flood of
manually sort
semi automatically irrelevant information
them out
list them
Profit Display Banner SemanticWeb Ontology
Proactive
Making Banner Ads Premature Keyword Search Ads.
Keyword Ads
Model Keyword Ads Multi Linguistic Service
26

3. Market & Marketing Strategy
• Search Ads (Korea)
Advertising Sales Request Advertising Sales
Naver
Overture Internet Advertisers
Korea 35,000
Yahoo Korea
Daum
Internet Advertisers
AdWords User
1,000,000
Google Korea
Internet Advertisers
Qrobo(Korea) Overture Korea
35,000
Internet Advertisers
Qrobo(Japan) Overture Japan
50,000
Internet Advertisers
Qrobo(Global) AdWords
1,000,000
Revenue Sharing Pay per click advertising Click search ads
27

3. Market & Marketing Strategy
• Search Ads (Korea)
Analyzing Rankey & I.R Datas
Dec. 2008 Rankey Data 2008 I.R Data
Reasoning Data
Search ad revenues in Average search Unit Ads cost Annual Unit
1Day Average 1Day Average
Annual Total Hit 2008 total times by a per a search cost per a
U/V U/V
(100 million Won) person per day (Won) person (Won)
Naver Portal 12,361,491 Naver Search 9,734,170 63,304,541,500 6,084 18 9 62,501
Daum Portal 9,138,910 Daum Search 4,201,555 14,293,622,285 1,230 9 8 29,275
Empas Portal 2,307,106 Empas Search 968,188 2,447,831,255 223 7 7 17,765
Google Korea
Search
800,623 3,517,678,740 247 12 7 17,765
Empas
2.23billion Won (12.4million pounds) / 2008 / 960K person
Search Ads Turnover
Google Korea
2.47billion Won (13.7million pounds) / 2008 / 800K person
Search Ads Turnover
Profit making model for Qrobo
1 st Year Goal: Levels with Empass and Google Korea
Search Ads
28

3. Market & Marketing Strategy
• Roadmap
2012
Entering into the big 4 global search engine
2011
Qrobo services in 199 countries with
135 different languages
2009
Qrobo launch its service in 50 countries,
UK, US, China, Germany and etc, with 22 languages
November 2008
Launch Qrobo Japan Beta Version
June 2008
Launch Qrobo Korea Beta Version
29

3. Market & Marketing Strategy
• Goal of Business
- 2008.2Q Efficient Frontier 2008.11 -
Google | Yahoo | MS Live
World 3 major
search engine
•Google.com
World Market Share
•Yahoo.com
•Msn.com(Live.com)
8 popular search
engines 4.8 4.0
•Ask.com
•Aol.com 17.6 10.5 4.2 7.0 43.3
•Altavista.com
•Netscape.com
•Alltheweb.com
•Go.com
•Alexa.com
•Dogplie.com
74.6 81.1 91.4 89.2 51.5
US UK Europe Australia Japan
Google | Yahoo | Live | Qrobo
By 2012 Qrobo enters in world 4 major search engine group
30

4. Operations
1. Operational Plan
31

4. Operations
• Operational Plan
Plan
 1st half : Inviting Government grant and overseas investment move IDC facility and increa
se sever up to 20,000 units
2009
 April launch Qrobo Korea, Aug launch Qrobo Japan
 2nd half: Beta service in 22 countries increase server up to 30,000 units
 Meets(levels with) Yahoo Global Service
2010  Increase server up to 50,000 units at the IDC
 Market Qrobo Search Engine to the major portal sites
 Levels with Googles Global Service
2011  Qrobo builds up world largest documents
(Secure over 10% of Korean and Japanese search engine market.)
2012  Entering in world 4 major search engine group (Google, Yahoo, MS Live, Qrobo)
2013  World top 2 search engine (Google, Qrobo)
32

5. Key People / Management
1. Executive profiles
2. Organization
33

5. People / Management
• Executive profiles
CEO / CTO Arthur Cho Experience:
NewTech Information and Communication Lab Senior Researcher
Webbizline Inc. CEO
Street Journal CEO & Publisher
Mysearch Korea Inc. CEO
Semantics Korea Inc. CEO
COO KY Kim Education:
Korea University
Graduate School of International Studies
Experience:
National Intelligence Service IT & Venture
ORG STUDIO Inc. Auditor
Research CI Chung Education:
Institute Kyungpook National University
(Doctorate, Physical Science)
Experience:
NewTech ZigZag Lab Head of R&D Lab
Mondex Telecom Inc. CEO
Mondex Network Inc. CEO
Semantics Korea Head of R&D Lab
34

5. People / Management
• Organization Chart
Oversea Executive Auditor
Administration R&D
Platform Development Division Service Division
Intelligence Platform Business Service
Service Operation Service Planning
Development Platform Development
35

6. Finance
1. Investment Plan
36

6. Finance
• Investment Plan
2009 2010 2011 2012
Levels with Google
Secure 10% of
Korean Korea 22.3 bil won
April Grand Open Korean search
Service turn over with 5.8
engine market
bil won profit
Levels with Secure 10% of
Japanese
Aug Grand Open Goo.ne.jp and Japanese search
Service Google Japan engine market Global Service
Entering World
By Semantics 4 major search
engine group
Levels up with Levels up with
Beta Service in 22
Global Service countries
Yahoo Regional Google Regional
service service
By Semantics
Inviting Investment Inviting Investment
37

7. Risk Assessment
1. Profit Projection by US Keyword Ads Market Share
2. Investment Highlight
38

7. Risk Assessment
• Profit Projection by US Keyword Ads Market Share
2009 2010 2011
12,935,000,000 14,906,000,000 16,590,000,000
US $ 38,805,000 $ 447,180,000 $ 2,488,500,000
0.3% 3% 15%
Market About About About
40 millon dollor 450 million dollor 2.5 billion dollor
Only
Search Keywords Advertisement
39

7. Risk Assessment
• Investment Highlight
Advanced High Performance Search Engine by SemanticWeb Technology
Increase Profit
User can locate accurate/relevant web information faster searching by
Maximize User Satisfaction
Qrobo
Maximize Ads Effect Sponsor can expose theirs Ads to the targeted audience located by Qrobo.
Save Running Cost
▶Operated by automatic robotic search agent, operation efficiency gets
Semantic Search Engine better but running cost reduces
▶Semantic Agent automatically collects data for new linguistic service
Unique Server Management Technology helps to reduce number of
Unique Server Management
computer processors and bands width to assist search engine. Low grade
Technology
(low cost) server meets the requirements.
40

8. Viability
1. Advanced and Unique Technology promises rapid growth
41

8. Viability
• Advanced and Unique Technology promises rapid growth
Advanced High Performance Search Engine by SemanticWeb Technology
 99.9% automatic/computerization provides low running cost business model
 Intelligent Robotic operation requires at the very least manpower
 Secure bigger growth engine with locating floating manpower from operation
to R&D
 The advanced technology allows operating with low grade (low cost) server.
Floating budget can be invested for further growth.
 Due to automatic development system and advanced numerical computer language,
it is possible to build up Global Service in a short period
 With less than 10 manpower it takes 2 month to launch Alpha service, 6month to
launch Beta service and less than a year to launch official service.
(ex: Qrobo Japan only took 2 month to launch the current Alpha service with only 5 staff)
42

Appendix. Company Press Release
2007~2008 December
43

Appendix. Press Release Data
2007.3.8 The Electronic Times, Page 1 Top News
'Semantic Web Search engine, the First Commercial'
2007.03.08
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
44

Appendix. Press Release Data
2007.10.17 The Electronic Times
Qrobo.com, 1st Patent Registration
2007.11.30 The Electronic Times
Qrobo.com, 2nd Patent Registration
2007.03.08
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
45

Appendix. Press Release Data
2008.1.22 The Electronic Times
Qrobo.com, Released next week
2007.03.08
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
46

Appendix. Press Release Data
2008.3.5 Global news network AVING | USA
The world's first semantic search engine ‘Qrobo’ at CeBIT 2008
2007.03.08
2007.10.17
Semantics unveiled the world's first semantic search engine 'Qrobo' at CeBIT 2008
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
47

Appendix. Press Release Data
2008.6.17 The Electronic Times,
The world's first semantic search engine ‘Qrobo’ at World IT Show
2007.03.08
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
48

Appendix. Press Release Data
2008.7.10 JoongAng Ilbo
Prevent distortion of public opinion Search Engine, Qrobo
2007.03.08
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
49

Appendix. Press Release Data
2008.7.11 CHOSUN Ilbo
Meaning the search engine ‘Qrobo’, Over Google
2007.03.08
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
50

Appendix. Press Release Data
2008.8.12 The Electronic Times
1 Qrobo Plan in Japan Open for 2 months
2008.11.5 The Electronic Times
2 Japanese trial Qrobo
2007.03.08 1 2
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
51

Appendix. Press Release Data
2008.9.9 Money Today
Qrobo, IPone visual search releases
2007.03.08
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
52

Appendix. Press Release Data
2009.12.12 KOREA Ministry, MKE Announcement No. 2008-198
Qrobo, Selected ‘World Class Product’
2007.03.08
2007.10.17
World Class Product
2008.01.22
2008.03.05 Qrobo
2008.06.17
Next-generation first-class product
2008.07.10 Ontology automatically build an artificial intelligent robot, and to
2008.07.11 give meaning to all the live Web Search Engine
2008.08.12
2008.09.09
2008y, Score Semantics SAMSUNG DOOSAN
Comparison Qrobo CDMA Station Medicine
2008.12.12
Price 50 80 120
2008.12.19
2008.12.26
Quality 200 180 100
2008.12.29 Technology 200 180 100
Source: KOREA Ministry, MKE Announcement No. 2008-198
53

Appendix. Press Release Data
2009.12.19 Computer Times / KIPO / MKE / Korea Ministry
‘Qrobo’ Korea 100 patents for Excellence
2007.03.08
2007.10.17
2008.01.22
2008.03.05
2008.06.17
2008.07.10
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
54

Appendix. Press Release Data
2008.12.26 DongA Ilbo
The New Search Engine Google Surpasses
2007.03.08
2007.10.17
2008.01.22
2008.03.05
TIMAX vs MS
2008.06.17 QROBO vs GOOGLE
2008.07.10 (TIMAX: Korea No.1 SW Company)
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
55

Appendix. Press Release Data
2008.12.29 Electronic Times
Qrobo, Asia's Largest Green IDC building
2007.03.08
Government Techno Valley
2007.10.17 Support for free
2008.01.22
Electric Facilities
2008.03.05 1,500kw ~ 5,000kw
Internet Backbone
2008.06.17 5GB ~ 20GB
2008.07.10 Server Facility
50,000 EA
2008.07.11
2008.08.12
2008.09.09
2008.12.12
2008.12.19
2008.12.26
2008.12.29
56

㈜시맨틱스
www.sematics.co.kr
www.qrobo.com
podics.qrobo.com
57