VECTION TECHNOLOGIES LTD — Capital/Financing Update 2021

Nov 16, 2021

17 November 2021 | Australia

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ASX RELEASE

ENTERPRISE SALES & TCV UPDATE

Real-time software company Vection Technologies Ltd ( ASX:VR1 ) ( Vection Technologies , Vection or the Company ) is pleased to update the market on its enterprise sales activity and FY22 Total Contract Value (TCV) as of 17 November 2021.

Highlights:

• Further uplift in TCV run-rate for FY22, currently standing at ~$9M, supported by further suite adoption in the Media & Communications sector

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• FY22 TCV up by 80% compared to Q1 FY22 TCV level

3D VIRTUAL REALITY

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

• ~$1M Options exercise brings cash at bank to ~$7.8M to further accelerate global growth and M&A strategy (based on Q1 Cash at bank)

TCV Growth:

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Since the last reported FY22 TCV (Total Contract Value), Vection has continued its growth momentum within diverse market segments/verticals, delivering a 80% increase in TCV value compared to the ~ September quarter. FY22 TCV stands at $9M with a strong pipeline of opportunities further underpinning the Company’s FY22 outlook across multiple verticals/industry segments.

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AUGMENTED
within diverse market segments/verticals, delivering a 80% increase in TCV value compared to the REALITY
~
September quarter. FY22 TCV stands at $9M with a strong pipeline of opportunities further
underpinning the Company’s FY22 outlook across multiple verticals/industry segments.
The addition to the TCV metric was predominantly attributable to adoption of solutions suite in the INDUSTRIAL
Media & Communications sector. IoT
$10.0 M
FY21 cumulative audited revenue $9.0 M
CAD
FY22 cumulative TCV $7.9 M
$7.5 M FY21 cumulative customer receipts
FY22 cumulative customer receipts
$5.0 M
$5.0 M
$3.5 M
$2.8M
$2.1 M
$2.5 M
$1.1 M
$0.7 M
$0.4 M
$-
Q1 Q2 Q3 Q4 Q1 9 November 17 November
FY21 FY21 FY21 FY21 FY22 2021 2021
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Figure 1 : FY21 and FY22 Cumulative customer receipts, revenue and TCV
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Vection Technologies Ltd (ASX:VR1) ACN: 614 814 041

Europe North America Address: Via Isonzo 61 Address: 785 Market Street, #600 40033 Casalecchio di Reno (BO), San Francisco CA 94103 Italy 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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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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6.3%
9.8%
44.7%
15.0%
19.5%
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Figure 2: Fiscal Year 2022 TCV by Vertical/Sector (to date).

A strong pipeline of opportunities further underpins the Company’s FY22 outlook across its integrated XR, AI and IoT technology suite across diverse industrial sectors/verticals as companies globally accelerate their interest in the “metaverse” trends.

The Company looks forward to updating the market on further TCV developments as they materialise.

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3D
VIRTUAL
REALITY
AUGMENTED
REALITY
INDUSTRIAL
IoT
CAD
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Figure 3: Customer Portfolio (selection)

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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The Company notes that 8,493,548 unlisted options have been exercised for a consideration of $951,277.40, bringing total cash at bank to ~$7.8M (based on first quarter cash at bank value). This increase in funds is considered strategic for the Company to significantly accelerate its global growth and M&A strategy.

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 3D Phone: +61 8 6380 7446 About Vection Technologies: VIRTUAL Vection Technologies Ltd (ASX:VR1) is a multinational software company that focuses on real-time REALITY 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. AUGMENTED REALITY For more information please visit the Company’s websites: vection.com.au mindeskvr.com blankcanvas.studio INDUSTRIAL jmcgroup.it IoT ASX release authorised by the Board of Directors of Vection Technologies Ltd. CAD

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