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VECTION TECHNOLOGIES LTD — AGM Information 2023
Nov 27, 2023
66017_rns_2023-11-27_10a0bf02-2f0b-4c96-8690-cd6dac562052.pdf
AGM Information
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28 November 2023, Australia
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ASX RELEASE
2023 ANNUAL GENERAL MEETING – CHAIRMAN AND CEO ADDRESSES
In accordance with ASX Listing Rule 3.13, attached are the Chairman and CEO Addresses together with the presentation slides, which will be delivered at the Vection Technologies Limited Annual General Meeting commencing at 5.30 pm today (2.30pm AWST).
AUTHORISATION:
This ASX release is authorised by the Board of Directors of Vection Technologies Limited.
ENDS
INVESTOR RELATIONS CONTACT DETAILS:
Gianmarco Biagi - Managing Director (Europe Based) Email: [email protected] Phone: +39 051 014 2248
Gianmarco Orgnoni – Director, CSO & CMO (Australia Based) Email: [email protected] Phone: +61 8 6380 7446
ABOUT VECTION TECHNOLOGIES:
Vection Technologies is a growing enterprise-focused company that helps businesses bridge the physical and digital worlds. We help organisations leverage their 3D data via powerful extended reality (XR) interfaces that foster collaboration and learning, grow sales and more.
Vection Technologies is listed on the Australian Securities Exchange (ASX) with ticker code VR1, and trades on the U.S. over-the-counter (OTC) markets under the symbol VCTNY.
For more information, please visit: www.vection-technologies.com
ASX:VR1; OTC:VCTNY | ACN: 614 814 041
WEBSITE
www.vection-technologies.com
GLOBAL OFFICES
PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD
REGISTERED OFFICE
Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia
V
INTEGRATED XR
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FORWARD-LOOKING STATEMENTS:
Certain statements made in this release are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Vection Technologies' current expectations, estimates and projections about the industry in which Vection Technologies operates, and beliefs and assumptions. Forwardlooking statements can generally be identified by the use of forward-looking words such as 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'will', 'could', 'may', 'target', 'plan' and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance or outlook on future earnings, distributions or financial position or performance are also forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the control of Vection Technologies, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Vection Technologies only as of the date of this release. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Vection Technologies has no obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this release except as required by law or by any appropriate regulatory authority.
VECTION TECHNOLOGIES LTD
ASX:VR1; OTC:VCTNY | ACN: 614 814 041
WEBSITE
www.vection-technologies.com
GLOBAL OFFICES
PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD
REGISTERED OFFICE
Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia
V
INTEGRATED XR
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Vection Technologies Limited’s Annual General Meeting - 28 November 2023
CHAIRMAN’S ADDRESS
Vection Technologies has a vision to help businesses transition from 2D to 3D, by creating experiences that seamlessly integrate the digital and physical worlds. Our primary objective is to deliver time and cost savings, mitigate risks, and empower our clients with actionable data.
We operate in a challenging technology and cyber environment, and our first focus is to understand and then respond to our clients’ needs to bring their visions to reality.
FY23 was an exciting year for the Company, with total organic revenue growth of 39% to $26.3m.
There has been a significant decrease in the value of non "Big 7" tech companies worldwide, and Vection Technologies is no exception. The Board is aware of this impact.
As a company, we have a responsibility to deliver exceptional performance for our clients, shareholders, employees, and community. To achieve our vision, we need to have a well-planned and executable strategy. The decrease in asset values has created an opportunity where potential merger partners are now priced reasonably, giving us a wider choice than ever before. However, we will be selective in our approach. Our primary focus is on organic growth, and we aim to demonstrate our ability to grow the business and acquired companies. While we acknowledge the challenges, we are open to exploring all possibilities available to us.
Against the backdrop of dynamic market conditions and prudent decision-making, the Board and Management implemented a cost optimisation program to enhance profitability whilst preserving robust growth prospects.
Our company is currently focusing on maximizing Return on Investment (“ROI”) by strategically making operational and technological decisions. We aim to address the changing needs of our customers who demand intelligent, integrated solutions that fully utilise virtual environments. We are well-equipped to deliver on this vision with people, expertise and technology.
Our operational framework is structured into nine groups, each dedicated to serving a specific industry vertical with specialised expertise. These groups cover a diverse range of sectors, including Fashion, Retail, Service Agencies and Food; Public Sector, Education & Banking; Real Estate & Furniture; Healthcare; Pharma & Energy; Defence, Space, Military & Law Enforcement; Transportation, Automotive & Naval; Industrial, Machinery & Industrial Food; and Sports, Betting, Media & Telco. This specialized focus ensures that our technological offerings are tailored to each industry's unique needs.
Our comprehensive suite of products, from devices to integrated software solutions, has gained significant traction among our customers, and reinforces our strategy. We are confident that our industry-specific approach will drive incremental growth and solidify our market position.
VECTION TECHNOLOGIES LTD
ASX:VR1; OTC:VCTNY | ACN: 614 814 041
WEBSITE
www.vection-technologies.com
GLOBAL OFFICES
PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD
REGISTERED OFFICE
Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia
V
INTEGRATED XR
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Regarding governance, the Company has considered stakeholders' feedback and is implementing changes to improve its governance. As the newly appointed Chair of the Board, I am increasing the non-executive presence. Throughout this year, we will work to strengthen governance further in line with our growth, gradually moving towards an ideal structure and implementing best-practice processes.
I am excited about the growth prospects available to the Company in FY24 and beyond.
I want to thank the directors and management for their hard work and effort in FY23.
I will now invite our CEO, Gianmarco Biagi, to provide a business update and address the meeting.
VECTION TECHNOLOGIES LTD
ASX:VR1; OTC:VCTNY | ACN: 614 814 041
WEBSITE
www.vection-technologies.com
GLOBAL OFFICES
PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD
REGISTERED OFFICE
Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia
V
INTEGRATED XR
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CEO’S ADDRESS
Good morning and thank you for joining us at our 2023 Annual General Meeting.
I am speaking to you from Bologna, Italy, the centre of our European operations. Today we will discuss Vection Technologies' progress and delve into the details of our annual results. Our detailed pack has been lodged with the ASX for those following along.
On slide 7, you can see that Vection Technologies is facilitating the evolution of businesses from 2D to 3D, crafting experiences that integrate the digital and physical worlds. Our goal is to deliver time and cost savings, mitigate risks, and empower our clients with actionable data.
The integration of extended reality (“XR“) and other technologies is revolutionising the realm of business-tobusiness (“B2B“) interactions. As various industries embrace this integration, they unlock unprecedented value and efficiency. XR comprises virtual reality (“VR“), augmented reality (“AR“), and mixed reality (“MR“), which offer immersive experiences that redefine collaboration, training, and product development. When combined with AI's predictive analytics and adaptive learning capabilities, XR environments become interactive and intelligent ecosystems that automate complex tasks, anticipate needs, and enhance decision-making with data-driven insights. This synergy propels businesses into a new era where remote workspaces are as interactive as their physical counterparts.
In the future, the benefits of blending XR with AI go beyond providing high-tech solutions and touch the core of operational excellence. With AI's ability to analyse vast amounts of data, customers can expect personalised and optimised interactions within XR spaces. Imagine a virtual meeting room that adjusts its settings to suit the preferences of each participant or a training simulation that evolves in real time based on the user's performance. By leveraging AI's machine learning and natural language processing, our XR solutions become more than just tools – they become partners that understand the context, adapt to challenges, and provide actionable insights. This could be a game-changer for our clients as it means enhanced productivity, innovation, and a competitive edge in a rapidly evolving digital marketplace. We are looking forward to being a leading participant in this emerging space.
To fully leverage the benefits of our solutions, customers must have access to the hardware and network systems capable of supporting these advanced technologies. Devices such as VR headsets, AR glasses, and MR interfaces are necessary gateways through which the virtual dimensions become accessible. Without these physical touchpoints, the bridge to these new realities remains conceptual rather than experiential. Moreover, these devices must be backed by robust ICT frameworks, including high-speed connectivity, ample data storage, and powerful processing capabilities, to handle XR environments’ data-intensive and latency-sensitive nature. We believe we will see a surge in adoption of these devices, both in enterprise and consumer, from FY24 onwards, led by large tech participants already announcing significant product development in these areas.
In this context, traditional ICT plays a foundational role in democratizing access to these innovative technologies. Not all customers have the readiness or resources to jump directly into sophisticated XR applications. By offering a spectrum of devices and ICT solutions, we meet customers where they are on their digital transformation journey. Whether it's through providing the necessary hardware, ensuring interoperability with existing systems or offering cloud-based services that scale with business needs, our
VECTION TECHNOLOGIES LTD
ASX:VR1; OTC:VCTNY | ACN: 614 814 041
WEBSITE
www.vection-technologies.com
GLOBAL OFFICES
PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD
REGISTERED OFFICE
Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia
V
INTEGRATED XR
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comprehensive approach ensures that no customer is left behind. We aim to build an ecosystem that supports seamless integration, ease of use, and maximal accessibility.
In doing so, we lay down the digital infrastructure that empowers customers to thrive in an environment enriched by XR. Therefore, we ensure that the transition to these advanced technologies is as smooth and beneficial as possible.
Moving on to slide 8, we highlight our revenue milestones from the past year. Vection Technologies engaged with around 200 customers, and our total revenue surged by 39% to $26.3 million. This growth is a testament to the successful integration of sales synergies across our acquisitions, resulting in organic expansion across the Company. Our cost reduction program will persist into FY24.
On slide 9, we unpack the Company's performance and strategic direction. Our FY23 results showcase positive notes of organic growth. The Company leveraged the global growth of the move of 2D to 3D, driven by enterprises across various industries. Vection Technologies is targeting nine high-value industries, likely to demonstrate fast adoption.
The Company has successfully integrated the acquisitions performed in FY21 into its business-as-usual activities.
On slide 10, we review our key financial metrics. The Company reported an EBITDA loss of $9.2 million. Our cash reserves stand at $8.1 million at 30 September 2023.
We have expanded our market presence by entering new territories and engaging with diverse sectors. This has allowed us to diversify our portfolio and strengthen our market position. We have refined our management structure to optimize our organizational performance and responsiveness to market dynamics. Our global marketing initiatives have been amplified, extending our reach and reinforcing Vection Technologies' position as a trailblazer in our field.
Let's move on to slide 11, where we focus on the future. The first four months of FY24 have been promising, with organic revenue increasing by 76% to $6.5 million compared to FY23. Total revenue, including acquisitions, has increased by 88% to $6.9 million.
Our focus for the rest of FY24 will be on achieving organic revenue growth in each of the nine selected industrial verticals. We aim to improve our operating results across the business while prioritising our customers' needs to deliver time and cost savings, mitigate risks, and empower them with actionable data. Additionally, we will implement a cost-reduction program to optimise our operations.
I express my deepest gratitude for your continued trust in us as we navigate these exciting opportunities.
VECTION TECHNOLOGIES LTD
ASX:VR1; OTC:VCTNY | ACN: 614 814 041
WEBSITE
www.vection-technologies.com
GLOBAL OFFICES
PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD
REGISTERED OFFICE
Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia
V
INTEGRATED XR
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