VECTION TECHNOLOGIES LTD — Capital/Financing Update 2020

Jul 8, 2020

==> picture [130 x 44] intentionally omitted <==

9 July 2020 | Australia

ASX RELEASE

==> picture [493 x 554] intentionally omitted <==

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

MINDESK COMMERCIALISATION STRATEGY UPDATE
Real-time software company Vection Technologies Ltd ( ASX:VR1 ) ( Vection Technologies or the
Company ) is pleased to provide an update on the commercialisation strategy for its Mindesk
real-time software.
Highlights:
● Mindesk marketing strategy implementation underway with focus on online SaaS
distribution
3D
● Renewed market positioning for Mindesk and FrameS flagship software suites
● Mindesk records over 2,300 unique accounts in more than 100 countries at June 2020
● First Mindesk paid marketing campaign on Food4rhino.com and strategic campaigns
across media outlets underway
VIRTUAL
● Official launch of Enterprise premium license offering, featuring white-gloves support REALITY
and feature co-development
● Strong focus on monetisation of existing Mindesk user base during the next six months
● Long term strategic view to position Mindesk as the universal middleware among the
most popular CAD platforms, graphic engines and VR/AR devices AUGMENTED
REALITY
● Full alignment of Mindesk product development, pricing and marketing initiatives with the
Company's growth strategy and its transformation into a predominantly recurring
revenue business model
Vection Technologies: Overarching Strategy Overview INDUSTRIAL IoT
Vection Technologies seeks to build an interconnected, 360° real-time software product suite for
industry 4.0, covering all aspects of companies’ workflows.
CAD
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
Aligned with this overarching strategy and following the acquisition of Mindesk on 29 April 2020
(ASX: 28 April 2020), the Company has now integrated the partner distribution network of the two
companies, redesigned the development priorities and has commenced implementing a marketing
SaaS
----- End of picture text -----

Aligned with this overarching strategy and following the acquisition of Mindesk on 29 April 2020 (ASX: 28 April 2020), the Company has now integrated the partner distribution network of the two companies, redesigned the development priorities and has commenced implementing a marketing strategy to focus on the online Software as a Service ( SaaS ) distribution of its Mindesk real-time software.

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

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

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

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

==> picture [23 x 35] intentionally omitted <==

1

Address: Suite 1, 437 Roberts Road Subiaco WA 6008, Australia Phone: +618 6380 2555

==> picture [130 x 44] intentionally omitted <==

Mindesk: Strategy Overview

Aligned with its overarching strategy, in a coordinated effort to strengthen its overall market proposition, Vection Technologies has implemented a strategy aimed at repositioning its flagship real-time software Mindesk and FrameS.

Under the new software market positioning, Mindesk will be the Company’s real-time software focussed on enterprise technical product design, engineering and development, while FrameS will be positioned as the Company’s solution to connect manufacturers’ design data to the manufacturing floor and to their clients.

Mindesk: Product and Marketing Strategy

Exiting the beta phase, in 2020 the Company launched the commercial version of the new Mindesk unified real-time software suite, called Mindesk 2020.

The cumulative number of unique accounts at the end of June 2020 has reached 2,310 in more than 100 countries, 2,310 representing a diversified and global user unique accounts base with a predominance in developed markets in Europe and North America.

strategy has relied solely on face-to-face and word-of-mouth interaction, with accounts growing steadily at ~7% per month during the past year.

Following this, the Company has commenced small scale investment in paid marketing activities to identify the right market proposition to ensure optimum market adoption:

==> picture [25 x 25] intentionally omitted <==

3D VIRTUAL REALITY AUGMENTED REALITY INDUSTRIAL IoT CAD

• Initially, Mindesk has been promoted on the unique Food4Rhino portal (food4rhino.com), where the Rhino Computer Aided Software ( CAD ) software plugins can be discovered and downloaded

• professional media outlets including Linkedin, YouTube (with relevant video) and specialised industry press.

This marketing strategy will seek to maximise software exposure leading to greater opportunities for monetisation of new and existing user base.

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

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

==> picture [23 x 35] intentionally omitted <==

2

Address: Suite 1, 437 Roberts Road Subiaco WA 6008, Australia Phone: +618 6380 2555

Europe North America Address: Via Isonzo 61 Address: 785 Market Street, #600 40033 Casalecchio di Reno (BO), San Francisco CA 94103 Italy USA

==> picture [397 x 214] intentionally omitted <==

Figure 1 : Screenshot of paid marketing on food4rhino.com

Mindesk: Pricing

The Mindesk real-time software is currently commercialised under three pricing models being, Freelance, Professionals and Enterprise:

• Mindesk Freelance : allows the user to visualise 3D models in real-time in Virtual Reality ( VR ) or within the Unreal Engine (www.unrealengine.com)

• Mindesk Professional : integrates the features set out above while adding the full Virtual Reality experience, including the editing function.

• Mindesk Enterprise : the Company has commenced gearing up to offer a white-glove support service to Enterprise customers. A new, specific type of license, appropriately named “Enterprise license”, is being rolled out to cater to tier-1 companies. This license will be the only one supporting premium Enterprise headsets, such as Varjo devices or Microsoft’s Hololens 2, and also the only one with a network (company-wide) access system.

==> picture [289 x 219] intentionally omitted <==

==> picture [25 x 25] intentionally omitted <==

3D VIRTUAL REALITY

==> picture [25 x 25] intentionally omitted <==

AUGMENTED REALITY

==> picture [25 x 25] intentionally omitted <==

==> picture [41 x 70] intentionally omitted <==

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

INDUSTRIAL
IoT
CAD
----- End of picture text -----

Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041 Figure 2 : Screenshot of pricing model from mindeskvr.com (values in USD)

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

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

==> picture [23 x 35] intentionally omitted <==

3

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

Address: Suite 1, 437 Roberts Road Subiaco WA 6008, Australia Phone: +618 6380 2555

==> picture [130 x 44] intentionally omitted <==

Mindesk: Development Strategy Overview

During the coming week, the Company will release Mindesk 2020.2, where both the Rhino and SolidWorks versions will see the implementation of multiple landmark features designed around users’ feedback, bringing to market a strong value proposition for new and existing users aimed at increasing paying customers’ conversion rates.

Aligned with this overarching strategy, Vection Technologies is focusing on establishing Mindesk as the standard in real-time virtualization of professional design workflows. Consequently, the Company has commenced integrating three additional widely adopted CAD platforms, each with a specific industry focus. The Company’s objective is to position Mindesk as the universal middleware between the most popular CAD platforms, VR/AR headsets and the most popular graphic engines aligned with its stated commitment on building an interconnected, 360° real-time software product suite.

Gabriele Sorrento, Director of Vection Technologies and CEO of the Mindesk subsidiary, commented:

“The synergistic initiatives between Vection Technologies and Mindesk that commenced in April 2020 are producing initial encouraging results.

Today, Vection Technologies is able to embrace enterprises' full value chain with our an interconnected, 360° real-time software product suite. The new Mindesk offering is being conveyed through a wider, worldwide marketing effort. We look forward to further expand our offer through the integration of partner products and to build the leading XR ecosystem for real-time design.

Gianmarco Biagi, Managing Director of Vection Technologies, commented:

“The Company is operationally and commercially well positioned, despite the ongoing market conditions linked to COVID-19.

Vection Technologies is committed to deliver on its stated growth strategy and its transformation into a predominant recurring revenue business model. We believe that the Mindesk real-time software represents a strong opportunity to accelerate our growth strategy.”

==> picture [25 x 25] intentionally omitted <==

3D VIRTUAL REALITY

==> picture [25 x 25] intentionally omitted <==

AUGMENTED REALITY

==> picture [25 x 25] intentionally omitted <==

INDUSTRIAL IoT CAD

Bob McNeel, CEO of Robert McNeel and Associates (the developer of the Rhino CAD software), commented:

"We are glad to have Mindesk as a partner developer in our ecosystem.

Their Virtual Reality interface and Live Link with Unreal further expand Rhino and Grasshopper users' possibilities with real-time technologies. We look forward to supporting future developments."

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

==> picture [23 x 35] intentionally omitted <==

4

Address: Suite 1, 437 Roberts Road Subiaco WA 6008, Australia Phone: +618 6380 2555

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

==> picture [130 x 44] intentionally omitted <==

Investor Relations Contact Details

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

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

ENDS

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

About the Mindesk Software:

Vection Technologies’ Mindesk, is a real-time 3D design platform that integrates with existing commercial CAD software to extend their operations to the third-dimension: virtual reality, augmented reality, real-time rendering, and multi-user collaboration. Mindesk introduces the possibility to design a CAD project from scratch in Virtual Reality: while the majority of VR CAD software commercially available require time consuming project exportation, Mindesk enables users to switch from VR to desktop seamlessly, while editing the project in real-time on either platform. Mindesk provides the bi-directional, real-time live link across multiple commercial CAD and design software, including McNeel Rhinoceros 6, Dassault Solidworks 2018, 2019, 2020 and Epic Games Unreal Editor.

==> picture [25 x 25] intentionally omitted <==

3D VIRTUAL REALITY

==> picture [25 x 25] intentionally omitted <==

AUGMENTED REALITY INDUSTRIAL IoT CAD

About the FrameS Software:

Vection Technologies’ FrameS is a real-time platform that allows its users to visualise and interact with products’ designs and concepts in one immersive space in virtual reality, resulting in tangible results for businesses globally, including cost reduction, faster decision making and increased understanding. FrameS is the end-to-end real-time software developed for the enterprise of the future, addressing the multiple challenges set by Industry 4.0, including remote collaboration and sales.

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

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

==> picture [23 x 35] intentionally omitted <==

5

Address: Suite 1, 437 Roberts Road Subiaco WA 6008, Australia Phone: +618 6380 2555

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