VECTION TECHNOLOGIES LTD — Capital/Financing Update 2019

May 5, 2019

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ASX RELEASE

VECTION SIGNS FRAMEWORK AGREEMENT WITH VOLVO

Highlights:

• Vection signs Virtual Reality Framework Agreement with luxury car manufacturer - Volvo ;

• Volvo to adopt Vection’s proprietary Virtual and Augmented Reality Technology for:

• Marketing ;

• Automotive Value Chain ;

• Training ; &

• Sales .

• Initial project to showcase Volvo’s Occupant Protection and Safety Equipment via the implementation of Vection’s proprietary AR overlay and holographic technology;

• Recent launch of Volvo’s vehicle safety campaign The E.V.A. Initiative (‘Equal Vehicles for All’) ; incorporating Vection’s technology as part of its global launch;

• Vection cements its position as a leading global supplier of Virtual and Augmented Reality technology to the automotive industry.

6 May 2019 | Perth, Australia

ServTech Global Holdings Ltd ( SVT or the Company ) is pleased to announce that its wholly owned subsidiary Vection Italy S.R.L ( Vection ) has executed a Framework Collaboration Agreement (Framework Agreement) with global luxury automotive manufacturer Volvo Car Italia SpA ( Volvo ).

Following the delivery by Vection of an interactive Augmented Reality ( AR ) experience for Volvo’s Italian world-wide presentation of the E.V.A. initiative , Volvo and Vection plan to continue the utilisation of Vection’s proprietary Virtual Reality ( VR ) technologies to market and create new and interactive consumer experiences to appeal to a greater number of potential customers.

VOLVO FRAMEWORK AGREEMENT

Volvo is currently evaluating the implementation of Virtual Reality ( VR ) and Augmented Reality (AR) technology in multiple automotive verticals, to strengthen its position at the forefront of new technology and innovation.

Under the initial 1-year Framework Agreement, Volvo wishes to collaborate with Vection for VR & AR tools targeting:

• a) Marketing:

Following the delivery by Vection of AR marketing solutions, in particular for the world-wide presentation of the E.V.A. initiative, Volvo is considering further Virtual Reality centric marketing tools and activities.

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By layering three-dimensional artificial objects in front of real-life environments, Augmented Reality marketing can provide prospective customers with a more lifelike and realistic impression of a product or service, while engrossing and engaging viewers.

By utilising this technology, Volvo can boost its brand awareness and appeal to a greater number of potential customers. Vection’s first engagement with Volvo under the Framework Agreement is an example of this. Vection will deliver a VR solution that will showcase Volvo’s security systems using an engaging and interactive user experience provided with basic gamification elements.

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Figure 1: Vection holographic AR tool applied for Volvo's software solution

b) Automotive:

Leveraging the implementation of Vection’s proprietary design & virtual prototyping VR technology for other luxury manufacturers (most relevantly Lamborghini and Ferretti Yachts), Volvo and Vection will collaborate on potential applications for Vection’s VR technology for the Volvo value chain.

Vection’s proprietary VR technology enables users to interact with three-dimensional objects within virtual environments, thus allowing manufacturing companies (like automotive) to apply this technology as a more cost-effective solution than fabricating test models or other physical prototypes.

For instance, the automotive design process is one of the most expensive and time-consuming stages in automotive manufacturing. Through the implementation of Vection’s proprietary VR technology, designers can virtually visualise and interact with a vehicle without the need to build a 1:3 ratio physical model each time a change is required.

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Through this technology, project cost and lead time is significantly reduced, and global teamwork is improved. Vehicle modifications can be implemented in real-time, by teams collaborating remotely in locations all over the world.

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Figure 2: Volvo V60 showcased within Vection’s FrameS VR Platform

c) Training:

Manufacturers world-wide are currently researching new and efficient training procedures, and VR has been recognised as one of the new mediums through which companies can effectively reduce costs and facilitate a safe training environment for their personnel.

Automotive manufacturers, for instance, use an observation-based approach to train their personnel. VR training provides a secure environment within which automotive professionals can exercise and safely make mistakes, without physical or monetary harm.

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Figure 3: Vection VR training platform on safety procedures as applied for Bonatti

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d) Sales:

Vection’s proprietary Virtual Reality technology is the perfect solution to visualise customers’ future cars, from colour to the smallest component. Even though car dealers often present a 2D configurator, clients’ engagement is dissipated by the utilisation of outdated technology.

Providing the client with the possibility to visualise their new car, fully customised to its requirements, under different light conditions and in different environments, provides for a more engrossing sales experience.

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Figure 4 & 5: Further screenshots of a product showcase within Vection’s FrameS VR Platform

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The adoption of Vection’s proprietary VR technology will also allow car dealers to show the future to their customers and eliminate expensive inventory problems.

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Occupant Protection and Safety Assist

Vection’s first engagement under the Framework Agreement will see Vection develop an AR marketing solution to showcase Volvo’s Occupant Protection and Safety Equipment. This includes crucial automotive systems such as car safety cells and airbags systems.

The AR marketing solution will be based on Vection’s proprietary technology and will be installed at the prestigious Volvo Studio in Milan, Italy. Vection’s work on the solution has commenced and is expected to be completed within the current month. This standalone solution represents ~EUR20k (AUD$30k) in revenue to Vection.

Operating from this studio will maximise exposure for both Volvo’s first-class safety features and for Vection AR based marketing solutions.

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Figure 6: Volvo XC90 Safety Cell design

E.V.A. Initiative (Equal Vehicles for All)

In 2019, Vection collaborated with Volvo for the world-wide presentation of the E.V.A. Initiative . This historical campaign marked Volvo’s release of 40 years of real-world automotive collision data in the interest of building safer cars, particularly in respect to women’s safety1.

Vection developed a highly advanced AR marketing solution to display captivating augmented reality-based holograms. This solution proved to be very successful in engaging with a global audience and promoting Volvo’s philosophy of boosting safety through sharing knowledge that helps save lives. Refer to https://www.youtube.com/watch?v=M47fd7MMMds for the AR Marketing solution prepared for Volvo.

Through the E.V.A. Initiative, Volvo shared its own IP with the rest of the world, providing access to 40 years of real-world data research on automotive collisions.

1 https://www.volvocars.com/intl/why-volvo/human-innovation/future-of-driving/safety/cars-safe-for-all

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This global initiative aims at improving women’s safety in automotive collisions, as many automakers still produce cars based exclusively on data from male crash test dummies. For this reason, women run a higher risk than men of injury in automotive collisions.

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Figure 7 & 8: Screenshots of AR application of Volvo’s E.V.A. Initiative

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Chiara Angeli, Sales & Marketing Director of Volvo Car Italia, commented:

“Vection was able to produce a compelling experience for Volvo Car Italia for the E.V.A. Initiative. We look forward to seeing what can be done to incorporate the technology into other Volvo Car Italia business verticals.”

Gianmarco Biagi, Managing Director of ServTech, commented:

“The Framework Agreement with Volvo is the first agreement executed by Vection among a number of ongoing negotiations, and forms part of the Company’s broader global partnership strategy aimed at positioning Vection as the leading VR software provider for Tier1 companies. Furthermore, this close collaboration with Volvo cements Vection’s positioning in the automotive industry, supporting Volvo in its growth & development strategy. Our first engagement under the Framework Agreement commences immediately.”

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Bert Mondello, Chairman of ServTech, commented:

“The Framework Agreement with Volvo validates ServTech’s strategic acquisition of Vection and its entry in the growing VR&AR software market segments. The adoption by Volvo of Vection’s VR technology is critical in the Company’s positioning in the automotive industry and provides the Company with significant global exposure.”

For more information:

For media enquiries:

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Bert Mondello MMR Corporate Services Non-Executive Chairman Henry Kinstlinger +61 8 6380 2555 +61 2 9251 7177 bmondello@regencycorporate.com.au media@mmrcorporate.com

About ServTech (ASX:SVT): www.servtechglobal.com.au

ServTech is full-service software development company delivering solutions for renowned national and international businesses. ServTech’s development team has a global footprint and boasts a skill set including, advanced Augmented Reality (AR) and Virtual Reality (VR) capabilities, back end and front-end PHP, database, native mobile iOS and Android as well as UI/UX developing, designing and testing.

About Volvo Car Group

Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 642,253 cars in 2018 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.

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