VECTION TECHNOLOGIES LTD — Capital/Financing Update 2021

Dec 1, 2021

2 December 2021 | Australia

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ASX RELEASE

VECTION TCV GROWTH OUTPERFORMS FIRST HALF OBJECTIVE

Real-time software company Vection Technologies Ltd ( ASX:VR1 ) ( Vection Technologies , Vection or the Company ) is pleased to announce continued strong growth with FY22 TCV outperforming its first half milestone objective to $11M.

Highlights:

• Vection outperforms first half milestone objective with FY22 TCV growing to $11 million: up by 120% compared to the first quarter level

• Vection to accelerate aggressive enterprise XR & metaverse focussed global acquisition strategy supported by leading technology focussed institutional investors validating the Company’s market positioning

• Technology suite delivers high growth potential via broad industrial adoption

• Strong continued growth opportunities across strategic verticals in the coming months, underpinned by the “Metaverse” trend

Enterprise Sales & TCV Update:

Since the last reported FY22 Total Contract Value ( TCV ), Vection has outperformed its first half FY22 TCV objective of $10 million delivering $11 million, one month ahead of schedule, representing an increase of 120% compared to the FY22 first quarter TCV metric (ASX:29 October 2021).

growth strategy to position the Company as a global emerging leader in the enterprise metaverse space” commented Gianmarco Biagi, Managing Director of Vection Technologies.

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3D VIRTUAL REALITY AUGMENTED REALITY INDUSTRIAL IoT CAD

“Following the latest growth funding round (ASX: 30 November 2021), Vection is strategically positioned as a company boasting a high-growth technology suite, a strong M&A focussed war-chest and leading technology focussed institutional investors that validate the Company’s market positioning as it accelerates its aggressive global acquisition strategy targeting the XR & metaverse enterprise technology sector. This latest funding round enables management to focus on its organic and inorganic growth, leveraging a stronger balance sheet with ~$20 million cash on hand1 further reinforced by a base of convertible securities and a robust market valuation supported by key institutional shareholders.”

1 Based on $12 million Placement plus $6.8 million on hand as at 30 September 2021 and ~$1 million options exercise (ASX:16 November 2021)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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North America Address: 785 Market Street, #600 San Francisco CA 94103 USA

Address: Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 Phone: +61 8 6380 7446

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$15.0 M
FY21 cumulative audited revenue
FY22 cumulative TCV
FY21 cumulative customer receipts $11.0 M
$10.0 M FY22 cumulative customer receipts
$9.0 M
$7.9 M
$5.0 M
$5.0 M
$3.5 M $2.8M
$2.1 M
$1.1 M
$0.7 M
$0.4 M
$-
Q1 Q2 Q3 Q4 Q1 9 November 17 November 2 December
FY21 FY21 FY21 FY21 FY22 2021 2021 2021
Figure 1 : FY21 and FY22 Cumulative customer receipts, revenue and TCV
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This latest addition to the TCV metric was predominantly attributable to adoption of the solutions suite in a variety of sectors/verticals.

Individual sales composing the FY22 TCV are expected to complete with varying dates by the end of March 2022, in addition to subscription and maintenance packages to be invoiced during the current fiscal year with varying dates and payment terms.

As with previous Enterprise Sales & TCV updates, the Company notes that quarterly cash receipts may vary depending on the solution and/or service provided to the end customer, and any individually material contract award will be separately announced to the market as applicable.

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1%
10%
34%
11%
17%
20%
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3D VIRTUAL REALITY

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AUGMENTED REALITY INDUSTRIAL IoT CAD

Figure 2: Fiscal Year 2022 TCV by Vertical/Sector (to date).

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

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Address: Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 Phone: +61 8 6380 7446

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ENDS

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 7446

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 3D, Virtual Reality, Augmented Reality, Industrial IoT, AI, ICT 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 blankcanvas.studio

jmcgroup.it

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

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

Address: Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 Phone: +61 8 6380 7446