(asx:vr1) januar y 29, 2021

(ASX:VR1)

January 29, 2021

This presentation has been prepared by Vection Technologies Limited (ACN 614 814 041) (Vection Technologies or the Company) and is for information purposes only. It does not constitute financial product or investment advice or a recommendation to acquire Vection Technologies shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Vection Technologies is not licensed to provide financial product advice in respect of Vection Technologies shares.

Vection, Vection Technologies, FrameS, Mindesk, and their respective logos, are trademarks or registered trademarks of Vection Technologies, or its subsidiaries. All other registered or unregistered trademarks mentioned in this presentation are the property of their respective owners, and no trademark rights to the same are claimed.

- All dollar values are in AUD dollars (AUD or $) unless otherwise presented.

VECTION OPERATIONAL UPDATE - Q2 2021

- Forward looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. An investment in Vection Technologies shares is subject to investment and other known and unknown risks, some of which are beyond the control of Vection Technologies. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Vection Technologies employees, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this Presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.

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2017-2018 2021-2023 2024-20262019-2020

● Renewed Board of Directors● Definition of long-term

strategy● Divestment of non-core

assets

$0.5M$1.4M

$3.1M

● Acquisition of Vection● Focus on 3D, VR/AR

enterprise software● Name and ASX code change● Transformational strategy

towards a recurring revenue business model

● Acquisition of Mindesk Inc● Strong client interest and

revenue growth

● Implementation of strategy towards internal and external value accretive initiatives for long term recurring revenue growth across key industries aligned with market trends

● Reference VR/AR company globally for enterprise solutions

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REVENUE

DELIVERING ON OUR STRATEGY

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● Quarterly cash inflows equal to ~$1M, of which:

○ ~$0.4M in client receipts○ ~$0.3M in receipt of the first

instalment of the E.U. grant (ASX: 27 May 2020)

○ ~$0.3M from advances on invoices via the Company’s commercial bank facilities

● Successful conclusion of Company’s 6-months objectives has delivered strong growth signs for the second half of the financial year

● Strong cash balance of ~$7.1M supports an aggressive 2021 growth strategy, including well-executed M&A activities

VECTION QUARTERLY HIGHLIGHTS, WELL POSITIONED FOR AGGRESSIVE 2021 GROWTH

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● Cash balance● Incremental FY QoQ Growth


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BUILDING MARKET DOMINANCE THROUGH STRONG FOUNDATIONS

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$120.7M

~$7.1M

~$3.1M

$13.7M

$183k

+121%

~$6.1M

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50+

50+

50%

15%

1 31 December 20202 At 28 January 20213 At 30 June 2020

+130% +157%


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PARTNERSHIPS

GROWTH

TECHNOLOGY

OUR BUILDING BLOCKS FOR MARKET DOMINANCE

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Q1 FY21 Q2 FY21

HEALTHCARE 1st Public Hospital Trial Lodgement of Provisional Patent National Healthcare Guidelines

COLLABORATION (5G) Mindesk Multi-User Release Olivetti Tim Group MoU Cisco Italy MoU for XR collaboration

EDUCATION, AUTOMOTIVE & DEFENCE Trenitalia MoU Mindesk adopted by Global Top10

military shipbuilder

PARTNERSHIPS & PROGRAMS Access to DELL SnP Global Program Facebook ISV Program Autodesk/Microsoft Program

DISTRIBUTION NETWORK Secured Solidworks Top 10 Global Partner 50 Global Sales Partners

TECHNOLOGY DEVELOPMENT Mindesk 2020.3 Release Mindesk 2020.4 Release Launch of DELL Powered VR Solutions (VRONE)

SUCCESSFUL CONCLUSION OF 6-MONTHS OBJECTIVES | STRONG 2021 FOUNDATION


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Vection Technologies, the real-time software company, seeks to innovate key company processes, from design & engineering, manufacturing and training, to marketing & sales and maintenance, through real-time software that improves the real world leveraging the virtual world.

We strive to support organisations and their clients via successful customer experiences.

Optimizing plant and asset workflows management:

real-time technologies reduce costs, increase product quality

and ensure work safety.

Immersive real-time technologies enable more

dynamic and cost-effective training and induction

programs.

MANUFACTURING

TRAINING

Real-time technologies help save time by providing additional information and

assisting workers in machine operations.

Real-time technologies enable a faster, more

efficient and affordable design process.

Immersive, realistic and customizable product presentations improve

communication and engagement with customers.

MAINTENANCE

MARKETING & SALES

DESIGN & ENGINEERING

VECTION TECHNOLOGIES MARKET STATEMENT


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Vection Technologies seeks to build an interconnected, 360° real-time software product suite for industry 4.0, covering all aspects of companies’ workflows.

The Company’s overarching objective is to create a real-time software suite leader in the target markets, covering three levels of value creation: Enterprise, Team and User, while focusing on:

● A versatile real-time software suite capable of addressing the users' needs.

● Providing solutions to industry-specific needs through focused implementation of the Company’s 360° software suite.

● A global approach supported by local representatives.

OVERARCHING OBJECTIVES


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Corporate HeadquartersPerth, Australia

India OperationsAhmedabad, India

Europe HeadquartersBologna, Italy

Europe R&D Bari, Italy

Global presence supported by 50+ partners worldwide.

North America HeadquartersSan Francisco, U.S.

OUR BUILDING BLOCKS FOR MARKET DOMINANCE

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PRODUCT SUITE

● SOFTWARE DEVELOPMENT

● VR/AR EXPERIENCES

● VIRTUAL BOOTH

● 3D MODELS

● EFFECTIVE TRAINING

● VR/AR MANUALS

● POST-SALE EXPERIENCE

● PRODUCT DEMOS

● CLIENT INVOLVEMENT

● BETTER MARKETING

● INCREASED SALES

● ERP CONNECTED

● ONLINE SALES

● PRODUCT CUSTOMIZATION

● TRAINING

● REMOTE MEETINGS

● REAL-TIME RENDERING

● IMMERSIVE REVIEWS

● COLLABORATIVE DESIGN

● VR 3D MODELLING

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VECTION ACROSS THE VALUE CHAIN

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Services● Increased technical services efficiency and outputs via VR/AR● Increased safety via AR

Operations

● Innovative product experiences via VR/AR

● Training via VR/AR increases uptime

Sales & Marketing

● Virtual presentation of products via engaging VR /AR● Engaging trade-show experiences, reducing logistics

costs via VR/AR● Unique and customisable marketing experiences via

VR/AR

Design & Engineering

● Faster, more efficient design & engineering process via VR/AR for teams and users

Manufacturing & Supply Chain

● Increased productivity and quality via AR● Increased safety and workers’ satisfaction via AR● Optimised production quality via AR

Corporate/CXO

ENTERPRISE TEAM USER

● Virtualisation of key company processes enabling significant cost reductions

● Effective training via VR/AR


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DIVERSITY OF APPLICATION

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Director & CSO, Vection TechnologiesCEO Vection ItalyExperienced company manager in the private sector, with extensive knowledge in virtual reality technology, sales and cost control management.

Managing Director, Vection TechnologiesExperienced executive and board member of several multinational manufacturing corporations. Mr Biagi has a postgraduate degree in Engineering and a Master’s degree in Business and Strategic Management.

Director & Head of Global Partnerships, Vection Technologies CEO Mindesk SuiteFulbright Alumnus, M.Sc. in Architectural Engineering, 13+ years of experience in 3D CAD, previously worked with renowned architectural brands including Renzo Piano Building Workshop and Heller Manus Architects.

Director & COO, Vection TechnologiesVP Vection IndiaExperienced executive across European and Australian private and publicly listed companies. Mr Orgnoni holds a bachelor’s degree in economics and Business Administration.

Chairman, Vection TechnologiesExperienced executive with over 20 years’ experience across both the private and public sectors. Mr Mondello has substantial technology, capital markets experience and knowledge of equity markets.

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LEADERSHIP TEAM

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Head of SaaS, Vection TechnologiesSerial founder with experience in startups in food tech and consumer internet, he started his career at Google as a tech analyst. He holds a Msc. in international management from ESADE, Barcelona, and a Bsc. in business administration from Bocconi University, Milan.

Head of R&D & Co-CTO, Vection TechnologiesSenior Developer and Manager, creator of multiple software programs published in major computer magazines. He holds the role of team leader in the development of FrameS.

Operations Manager & Co-CTO, Vection TechnologiesSenior Developer and Manager, degree in Computer Science, 15+ years of experience as Software Architect. He is specialist in CAD data exchange, he leads the development operations of custom projects.

CEO, Vection India10+ years of experience in software development and team management, with over 100 applications developed. He holds a Master of Science and Information Technology from the DAIICT in India.

CMO, Vection Technologies15+ years of experience in the development of Virtual Reality, Augmented Reality and Mixed Reality solutions. Extensive knowledge in technology, game design and history.


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SHARE PRICE / VOLUME HISTORY CORPORATE SNAPSHOT

3 165.5M escrowed Shares are included.4 At 31 December 2020

● Share Price1 : 12.5¢● Shares on Issue2,3 : 965.7M● Market Capitalisation : $120.7M● Cash4: $7.1M● Secured grants/financing: $1.6M

VOLUM

E (UN

ITS)

PRIC

E ($

)

OWNERSHIP BREAKDOWN4

Board & Management41%

Institutional Investors15%

Other Top 20

11%

Other Shareholders

33%

1 Share Price at 28 January 2021.2 Excludes any Deferred Consideration and/or Performance Rights/Shares.

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CORPORATE SNAPSHOT

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DRIVING FORCES & MARKET OPPORTUNITYNAVIGATING A POST-COVID 19 ENVIRONMENT: KEY TRENDS

Working from home while in quarantine has created a new normal.

BEHAVIOURAL CHANGE

Super-fast mobile networks will further boost the potential of XR (Extended Reality).

5G EMERGENCE

Pupils can engage with learning in fun new ways, and AR brings new flexibility to on-the-job training.

EDUCATION & TRAINING

VR/AR is reshaping how manufacturers innovate and respond to customer

demands.

DIGITALISATION AND INDUSTRY 4.0

VR/AR software is revolutionising the entirety of design and creation

workflows across industries.

CAD CONVERGENCE

Using VR/AR technology to create value.

HEALTHCARE

5G

4.0

CAD

HC

BE

E&T

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DRIVING FORCES & MARKET OPPORTUNITYDIGITALIZATION & INDUSTRY 4.0

Digitalization is enabling a reinvention of manufacturing.

It’s a core component of Industry 4.0: the merger of automation, the Internet of Things (IoT), virtual and augmented reality, business processes, big data and cloud computing. It’s reshaping how manufacturers innovate and respond to customer demands.

McKinsey estimates that 70% of manufacturing companies still have to grab the full potential of digitalization of key processes.1

VIRTUAL AND AUGMENTED REALITY

INTERNET OF THINGS (IoT)

1 https://www.mckinsey.com/industries/advanced-electronics/our-insights/capturing-value-at-scale-in-discrete-manufacturing-with-industry-4-0

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https://www.mckinsey.com/industries/advanced-electronics/our-insights/capturing-value-at-scale-in-discrete-manufacturing-with-industry-4-0

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DRIVING FORCES & MARKET OPPORTUNITYVR/AR ADOPTION IS ENTERING ITS WIDE ADOPTION PHASE

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Gartner Hype Cycle for Emerging Technology. Focus on Virtual Reality and Augmented Reality stages

Innovation Trigger

Peak of Expectations Disillusionment Enlightenment

Smartphone2008

VR 2016

AR 2016

SMARTPHONE 2004

VR2012

AR2012

AUTONOMOUS VEHICLES

2016

AUTONOMOUS VEHICLES

2012

Source: Statista, Ecorys

● VR/AR at the same stage of Smartphones in 2008

● Approaching knowledge maturity in VR/AR adoption and uses

● Technology ready to become a «standard» in B2B and B2C market in the following 10 years

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DRIVING FORCES & MARKET OPPORTUNITYVR/AR EXPECTED TO LEAD FUTURE GDP GROWTH WORLDWIDE

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USD 476.4 B

USD 1,500 B

2019 2025 2030

USD 1,500 B

USD 1,000 B

USD 500 B

USD -

USD 33 B71%

USD 451 B27%

USD 1,092 B73%

USD 13.4 B29%

AR will continue to provide the bigger boost compared to VR

Source: Statista, Ecorys, PwCs

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Maintenance

DRIVING FORCES & MARKET OPPORTUNITYFUTURE GROWTH DRIVEN BY INDUSTRIAL SEGMENTS

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Future growth driven by Investments made by industrial players Investment in VR/AR by use case (2023)

VR Video / feature viewing

Retail Showcasing

Training

Market spending in VR/AR technologies by industry (USD/B)

14%

14%

9%

63%

Source: Statista, Ecorys

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100

75

50

25

-

2020 2021 2022 2023

USD 20 B

USD 47 B

USD 84 B

USD 120 B

CAGR: 82%

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● Ability to Execute: Vection Technologies has continuously delivered on its growth strategy towards the creation of a 360° product suite for Industry 4.0.

● Market Trends: the increased adoption of collaborative real-time technologies including 3D, VR and AR will continue to drive growth opportunities for Vection Technologies, globally.

● Technological Partners: partners such as Dassault Systémes SolidWorks Corporation, McNeel, Siemens, Epic Games, HP, Logitech and Varjo provide for significant visibility and commercial opportunities for Vection Technologies.

● Financial Partners: shareholders such as the Italian Government, HTC Vive X, Primoglio SGR and A11 Venture represent an institutional blue chip shareholder base of global appeal.

● Technology Advantage: Vection Technologies’ proprietary 3D, Virtual Reality, Augmented Reality, Industrial IoT and CAD real-time solutions help companies and organisations to innovate, collaborate and create value.

● Value Growth: Vection Technologies remains committed to the achievement of continued incremental growth across its software product suite to ensure compounded value creation for all stakeholders.

● Partnerships and M&A: Vection Technologies will continue to pursue partnership and well executed M&A opportunities to support its long-term vision of creating a 360° real-time software product suite for Industry 4.0 towards market dominance.

FOCUS ON CONTINUED GROWTH

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vection.com.au mindeskvr.com

785 Market Street, #600San Francisco CA 94103, USA

642 Newcastle Street,Leederville WA 6007

Via Isonzo 61,40033 Casalecchio di Reno (BO), Italy

903, Samedh Complex,Panchvati Cross Road,C.G Road, Ahmedabad – 380009 Gujarat, India

Via Volga c/o Fiera del levante,70132 Bari (BA), Italy

Investor Relations Contact Details

Gianmarco Biagi - Managing Director (Europe Based)Email: [email protected] Phone: +39 051 0142248

Gianmarco Orgnoni - Director and COO (Australia Based)Email: [email protected] Phone: +61 8 6380 2555

http://www.vection.com.au

http://mindeskvr.com

https://www.facebook.com/VectionTechnologies/

https://www.linkedin.com/company/vectiontechnologies

https://twitter.com/VectionTech

https://www.youtube.com/channel/UCW5yj-h4n_IsY7dJ1G7y_GA

mailto:[email protected]

mailto:[email protected]

(asx:vr1) januar y 29, 2021

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