VECTION TECHNOLOGIES LTD — Capital/Financing Update 2020

Oct 18, 2020

19 October 2020 | Australia

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ASX RELEASE

VECTION SECURES TOP 10 GLOBAL SOLIDWORKS PARTNER TOWARDS STRONG ARR GROWTH

Real-time software company Vection Technologies Ltd ( ASX:VR1 ) ( Vection Technologies , Vection or the Company ) is pleased to announce it has partnered with a global top 10 largest CAD/PLM partner of Dassault Systèmes Solidworks, Teamsystem group’s Nuovamacut Automazione Spa ( TS Nuovamacut ) towards strong acceleration of its Mindesk software ARR distribution.

Highlights:

• Distribution partnership with TS Nuovamacut, the largest partner of Dassault Systèmes Solidworks in Italy, and top 10 globally for CAD/PLM

• Vection secures access to TS Nuovamacut’s 8,600 company clients and 26,000 users - the largest designer community in Italy

• ● TS Nuovamacut has over $68m in annual revenue[1] and 160 employees across 9 offices

• Vection’s distribution network increases to 50 partners globally

• 6-months objective: announcement aligned with strong acceleration of sales initiatives towards the 50% ARR June 2022 goal

Overview:

Vection secures a distribution partnership with TS Nuovamacut, a global top 10 largest Computer Aided Design ( CAD ) / Product Lifecycle Management ( PLM ) partner of Dassault Systèmes Solidworks, the largest in Italy.

TS Nuovamacut is a Teamsystem company, with over $68m in annual revenue and 160 employees across 9 offices, distributing Dassault Systèmes Solidworks’ licence software to 8,600 company clients and 26,000 users - representing the biggest designer community in the Italian territory.

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3D VIRTUAL REALITY AUGMENTED REALITY INDUSTRIAL IoT CAD

TS Nuovamacut boasts a multisegmented client portfolio across diverse market sectors including Industrial Machinery, Transport and Mobility, Architecture, Engineering and Construction (AEC), Naval, Energy and Mining, Healthcare and Sciences, Aerospace and Defence, Consumer Products and Education. Key clients include Daikin, Rexroth (Bosch Group), Sacmi and Inpeco.

This agreement represents a strong opportunity for the Company to accelerate market penetration of its Mindesk software across a cemented Dassault Systèmes Solidworks user base, aligned with the Company’s goal to achieve strong ARR growth.

reviews and interactions with assemblies: engineers and designers can develop their projects and collaborate immersed in Virtual Reality through Mindesk for Solidworks.

1 Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041 AUD/€ exchange rate at 16 October 2020 of 0.6043 (Source: Reserve Bank of Australia)

Europe North America Media Enquiries Address: Via Isonzo 61 Address: 785 Market Street, #600 AUpress@vection.com.au 40033 Casalecchio di Reno (BO), San Francisco CA 94103 EUpress@vection.com.au Italy USA

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1

Address: 642 Newcastle Street, Leederville WA 6007 Phone: +618 6380 2555

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Solidworks is a CAD software developed and commercialised by Dassault Systèmes SE (NYSE Euronext:DSY), and represents one of the most widespread parametric mechanical CAD software used by more than 6 million users worldwide, primarily for light mechanics, gadgets, appliances, automation and metalworks in general. The Solidworks CAD software is a mechanical design automation application that lets designers quickly sketch out ideas, experiment with features and dimensions, and produce models and detailed drawings.

For more information please visit: https://www.solidworks.com/partner-product/mindesk

subject to the success of the combined activities of Vection Technologies and TS Nuovamacut, this partner agreement is anticipated to be material for the Company. This view is based on the significant size and importance of TS Nuovamacut across Dassault Systèmes Solidworks users and clients. A brief overview of the Company’s current distribution partner footprint is appended to this announcement.

Sauro Lamberti, CEO of TS Nuovamacut, commented:

“We decided to partner with Vection Technologies because they combine both broad portfolio offering that support customer use cases and the ability to deliver the specific solution needed.”

Gianmarco Biagi, Managing Director of Vection Technologies, commented:

“We are very pleased to have partnered with one of the largest Dassault Systèmes Solidworks partners globally. This relationship is a key step forward in our global distribution strategy, aligned with the June 2022 50% ARR goal.

roadmap to strong revenue generation during the second half of the current financial year.”

Investor Relations Contact Details

Gianmarco Biagi - Managing Director (Europe Based) Email: gianmarco.biagi@vection.com.au Phone: +39 051 0142248

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3D VIRTUAL REALITY

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AUGMENTED REALITY INDUSTRIAL IoT CAD

Gianmarco Orgnoni - Director and COO (Australia Based) Email: gianmarco.orgnoni@vection.com.au Phone: +61 8 6380 2555

ENDS

Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

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

Media Enquiries AUpress@vection.com.au EUpress@vection.com.au

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Address: 642 Newcastle Street, Leederville WA 6007 Phone: +618 6380 2555

North America Address: 785 Market Street, #600 San Francisco CA 94103 USA

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About Vection Technologies:

Vection Technologies Ltd (ASX:VR1) is a multinational software company that focuses on real-time technologies for industrial companies’ digital transformation.

Through a combination of our 3D, Virtual Reality, Augmented Reality, Industrial IoT and CAD solutions, Vection Technologies helps companies and organisations to innovate, collaborate and create value.

For more information please visit the Company’s websites:

vection.com.au

mindeskvr.com

ASX release authorised by the Board of Directors of Vection Technologies Ltd.

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3D VIRTUAL REALITY AUGMENTED REALITY INDUSTRIAL IoT CAD

Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

Media Enquiries AUpress@vection.com.au EUpress@vection.com.au

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3

North America Address: 785 Market Street, #600 San Francisco CA 94103 USA

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

Address: 642 Newcastle Street, Leederville WA 6007 Phone: +618 6380 2555

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GROWTH

Vection Technologies is continuously delivering on its global strategy underpinned by three building blocks:

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----- Start of picture text -----

● Technology
● Partnerships
● Growth:
○ Strong focus on leveraging the existing distribution, online and direct sales
network
○ Geographical and market expansion via an enlarged distribution footprint
○ Global marketing and sales initiatives to establish Vection as the B2B real-time
software leader
○ Achieve market dominance across Vection’s 360° SaaS product suite for Industry
4.0
Following the distribution partnership with TS Nuovamacut, the Company strengthens its 3D
distribution outreach, gaining direct access to the largest designer community in Italy, a global top
10 largest CAD/PLM for Dassault Systèmes Solidworks.
Below a summary of the Company’s distribution partner network to date: VIRTUAL
REALITY
EUROPE, MIDDLE
36 + 1 [PARTNERS]
EAST AND AFRICA:
AUGMENTED
REALITY
ASIA PACIFIC: 8 [PARTNERS]
INDUSTRIAL
IoT
NORTH AMERICA: 5 [PARTNERS]
CAD
TOTAL: 50 PARTNERS
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Following the distribution partnership with TS Nuovamacut, the Company strengthens its distribution outreach, gaining direct access to the largest designer community in Italy, a global top 10 largest CAD/PLM for Dassault Systèmes Solidworks.

Below a summary of the Company’s distribution partner network to date:

Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

Media Enquiries AUpress@vection.com.au EUpress@vection.com.au

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Address: 642 Newcastle Street, Leederville WA 6007 Phone: +618 6380 2555

North America Address: 785 Market Street, #600 San Francisco CA 94103 USA

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