VECTION TECHNOLOGIES LTD — Capital/Financing Update 2019

Nov 10, 2019

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ASX RELEASE

Vection strategically positioned for Industry 4.0[1] at the forefront of the 4th industrial revolution

11 November 2019 | Perth, Australia

ServTech Global Holdings Ltd (ASX:SVT) (to be renamed Vection Technologies Ltd ASX: VR1) ( ServTech or the Company ), a multinational software company that creates 3D, Virtual Reality ( VR ) and Augmented Reality ( AR ) solutions, is pleased to provide an update on its activities since its acquisition of Vection in April 2019.

Highlights:

• Vection develops transformational strategy to address Industry 4.0 challenges

• Company will be renamed Vection Technologies Ltd (ASX:VR1) at its AGM

• Vection’s proprietary VR technology FrameS to launch at the end of November

• Roll-out of Vection’s AR software underway for Volvo Car Italy, aligned with recurring revenue strategy

• 8 distribution agreements finalised leading up to FrameS launch to maximise short-term return following the launch

Gianmarco Biagi, Managing Director of ServTech, commented:

“The Company’s strategic direction follows on from the results achieved by management during the first 6 months post the acquisition of Vection. The strong adoption of 3D, VR & AR technologies in the global market-place and in the context of the Industry 4.0 initiatives underpins our strategy moving forward.

Vection has a VR platform which has been customised successfully for some of the world’s most recognised manufacturers. The stepchange for our Company is taking this proven platform and providing it widely to all manufacturers as a SaaS platform. This platform: “FrameS” is set for commercial launch at the end of November 2019.

We are looking forward to keeping the market updated on the roll-out of our strategy.”

1 Industry 4.0 is the trend towards automation and data exchange in manufacturing technologies and processes which include cyberphysical systems (CPS), the internet of things (IoT), industrial internet of things (IIOT), cloud computing, cognitive computing and artificial intelligence.

Transformational Strategy

In March 2019, ServTech’s board of directors identified Vection as a strategic acquisition to position the Company in a fast-growing industry in its early life cycle, to deliver compounded value-enhancing growth to its shareholders.

With the Vection management team, the Company’s mission, strategy and product portfolio have been redefined, transforming ServTech into a 3D, VR and AR software company driving industrial innovation to products, processes and people.

This renewed strategic direction is recognised with a new company name and ASX ticker code that best exemplify the strategic direction of the Company moving forward.

Vection Technologies Ltd

Since the acquisition of Vection in April 2019, the Company has restructured its operations to best service its global tier 1 clients and international distribution partners via 2 distinct divisions:

• Vection Consulting drives industrial innovation partnering with clients in the provision of bespoke software solutions in 3D, VR and AR technologies.

• Vection Solutions develops off-the-shelf 3D, VR and AR software products with numerous practical applications offering easy adoption, meaningful Return on Investment (ROI) and tangible results.

The two divisions work synergistically, driving cross-referrals, existing software and new product adoption.

Vection leverages its focus across the manufacturing sector on digital transformation, known as Industry 4.0, by delivering its market-proven software solutions to empower companies to stand out with their products and services while enhancing their operations.

Specifically, Vection addresses 4 key steps in a product lifecycle being: Ideation, Design, Manufacturing and Sales, via its proprietary VR platform FrameS, set to launch at the end of November 2019.

Vection’s proprietary “In-Store 3D/AR Configurator” addresses the pain points of in-store customer experience, enabling customers to visualise products in ultra-high definition on a tablet or in the real space via augmented reality (Sales).

Milestones to Date

Since April 2019, the Company has focussed on three key growth drivers:

• Distribution & Partner Network:

• Vection has executed distribution and partner agreements with 8 Europe based valueadded-resellers and distributors in anticipation of the FrameS launch at the end of November 2019. The early execution of these agreements enabled the Company to work with its partners in the effective training of the partner agents to maximise marketpenetration in the lead-up to the launch of FrameS.

• Vection has executed an ongoing revenue generating framework agreement with Volvo Car Italy, establishing an important initial relationship with one of the key automotive manufacturing companies globally.

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• During the month of October 2019, Vection commenced the roll-out of its Volvo AR software to an initial subset of 63 Volvo Car Italy dealerships, aligned with its recurring revenue strategy in the automotive industry.

• Market penetration & Revenue generation

• The Company is currently in negotiations with over 70 clients for short-term revenue generative agreements for both its Consulting and Solutions divisions.

• In addition to this, during the first quarter of the 2020 financial year, and the first full quarter following the acquisition of Vection, the Company generated over $922k in cash receipts from ordinary operations.

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Figure: Quarterly Operational Cash receipts

• Product Development

• Since April 2019, the Company has continuously progressed the development of its FrameS platform, adding functionalities and features based on the initial feedback of its partners.

• In addition to this, the Company also finalised the first integration of FrameS into leading Computer Aided Design ( CAD ) software Rhinoceros.

Company Strategy

Moving towards the end of calendar year 2019 and into 2020, the Company’s strategic focus is:

• FrameS Launch

The commercial launch of FrameS planned for November 2019 is a key milestone for the Company, which has now established a significant geographical footprint to maximise its sales efforts in the short-term.

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● International Expansion

Vection plans to expand its value-added reseller network in Northern Europe, Canada/US and Asia Pacific within the next 12 months, leveraging its unrivalled industrial network and client access to maximise return for all stakeholders.

● Industrial Partnerships

The Company is progressing discussions with both Enterprise software technology and industrial leaders to bring to market its 3D, AR and VR software solutions.

• CAD software integration

Vection has identified the CAD software market as a significant opportunity for the Company and will progress its endeavours in developing 3D, VR & AR software solutions for this market.

● Additional Industry Verticals

Vection is currently in discussions with multiple clients to develop 3D, VR & AR software solution in additional industry verticals including the Medical and Eyewear sectors.

For more information: For media enquiries: Gianmarco Orgnoni Director & COO Henry Kinstlinger +61 8 6380 2555 +61 2 9251 7177 gorgnoni@torgcapital.com ServTech@mmrcorporate.com

About ServTech (ASX:SVT):

ServTech is a multinational software company that makes 3D, Virtual Reality (VR) & Augmented Reality (AR) software services for the engineering, manufacturing, architecture, construction & education industries. ServTech operates on an Enterprise business model based on bespoke fees and on a Software as a Service (SaaS) business model based on recurring subscription revenue. www.vection.com.au

About FrameS:

FrameS is a virtual reality visualisation software, assisting industries from architecture, engineering and manufacturing to fashion and retail, in creating VR visualisations prior to execution, saving both time and cost for producers, manufacturers and customers. VR visualisation improves the manufacturing process by keeping up with design changes and evolving ideas. Engineers and production teams work together to customise and realise concepts at any scale, and iterate faster on designs. Today, customers are accustomed to seeing final designs at early stages. VR visualisation provides the ability to showcase designs, layout, lighting, texture, and even geography, prior to development.

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