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VECTION TECHNOLOGIES LTD — Interim / Quarterly Report 2020
Oct 29, 2020
66017_rns_2020-10-29_9d1c5d97-5e01-475a-b96c-0e58d1a273a9.pdf
Interim / Quarterly Report
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OPERATIONAL UPDATE Q1 FY21 (ASX:VR1)
October 30, 2020
Copyright © 2020 Vection Technologies
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VECTION OPERATIONAL UPDATE - Q1 2021
DISCLAIMER
This presentation has been prepared by Vection Technologies Limited (ACN 614 814 041) ( Vection Technologies or the Company ) and is for information purposes only. It does not constitute financial product or investment advice or a recommendation to acquire Vection Technologies shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Vection Technologies is not licensed to provide financial product advice in respect of Vection Technologies shares.
Vection, Vection Technologies, FrameS, Mindesk, and their respective logos, are trademarks or registered trademarks of Vection Technologies, or its subsidiaries. All other registered or unregistered trademarks mentioned in this presentation are the property of their respective owners, and no trademark rights to the same are claimed.
Financial Data - All dollar values are in AUD dollars (AUD or $) unless otherwise presented.
Future performance - Forward looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. An investment in Vection Technologies shares is subject to investment and other known and unknown risks, some of which are beyond the control of Vection Technologies. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Vection Technologies employees, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this Presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.
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| 2 Quarter Highlights, Achievements & Objectives 1 Corporate Overview 3 Company Overview Market Opportunity 4 Company Highlights 5 |
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VECTION OPERATIONAL UPDATE - Q1 2021 QUARTER HIGHLIGHTS, ACHIEVEMENTS & OBJECTIVES DELIVERING ON OUR STRATEGY
-
01 REBUILDING TRANSFORMING LEADING STRATEGY MARKET DOMINANCE ● Renewed Board of Directors ● Acquisition of Vection ● Implementation of strategy ● Reference VR/AR company ● Definition of long-term ● Focus on 3D, VR/AR towards internal and external globally for enterprise strategy enterprise software value accretive initiatives for solutions
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02 ● Divestment of non-core ● Name and ASX code change long term recurring revenue assets ● Transformational strategy growth across key industries towards a recurring revenue aligned with market trends business model
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● Acquisition of Mindesk Inc
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03 ● Strong client interest and revenue growth
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04 $3.1M
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$1.4M
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05 $0.5M REVENUE 2017-2018 2019-2020 2021-2023 2024-2026
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VECTION OPERATIONAL UPDATE - Q1 2021 QUARTER HIGHLIGHTS, ACHIEVEMENTS & OBJECTIVES VECTION QUARTERLY HIGHLIGHTS, FOCUS ON LONG-TERM GLOBAL GROWTH
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01 $ 10.0M
02 $ 7.5M
$ 5.0M
03
$ 2.5M
04
$ -
05 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21
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~
-
equal to $0.5M, representing a strong operational consolidation in the challenging COVID-19 global environment
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● Increased focus on recurring revenue generation
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● Commercial initiatives expected to deliver strong revenue growth in 2HFY21
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● Company operations progressing to plan 1
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● Strong cash balance of ~$8M provides for a robust foundation for growth
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1 Cash balance (Q2 FY21 includes October 2020 $6M placement)
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● Incremental FY QoQ Growth
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03
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VECTION OPERATIONAL UPDATE - Q1 2021
QUARTER HIGHLIGHTS, ACHIEVEMENTS & OBJECTIVES BUILDING MARKET DOMINANCE THROUGH STRONG FOUNDATIONS
01
02
~$8M +130% +157% 5 Cash at Bank[1] FY20/FY19 Revenue Increase FY20/FY18 CAGR Increase Global Offices ~$3.1M $183k 50% 50+ FY20 Revenue FY20 Underlying EBITDA June 2022 ARR Objective Vection Professionals +121% $13.7M 50+ FY20/FY19 Underlying EBITDA Growth Total Assets[3] Global Partners ~$6.1M $125.5M 15% Net Assets Market Cap[2] Institutional Shareholders
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05
1 30 September 2020 including proceeds from October 2020 placement
2 At 29 October 2020
3 At 30 June 2020
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VECTION OPERATIONAL UPDATE - Q1 2021 QUARTER HIGHLIGHTS, ACHIEVEMENTS & OBJECTIVES OUR BUILDING BLOCKS FOR MARKET DOMINANCE
01 02 03
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PARTNERSHIPS
TECHNOLOGY
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Acceleration of development, OEM and distribution agreements with existing technology and industrial partners
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Continued strong focus on
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04 proprietary real-time technologies
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Acceleration of new strategic partnerships with key technology and industrial partners across Tier-1 regions
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Commitment on building a 360° SaaS product suite for Industry 4.0
05
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GROWTH
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Strong focus on leveraging the existing distribution, online and direct sales network
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Geographical and market expansion via an enlarged distribution footprint
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Global marketing and sales initiatives to establish Vection Technologies as the B2B real-time software leader
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Achieve market dominance across Vection Technologies’ 360° SaaS product suite for Industry 4.0
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VECTION OPERATIONAL UPDATE - Q1 2021
QUARTER HIGHLIGHTS, ACHIEVEMENTS & OBJECTIVES
6-MONTHS OBJECTIVES OVERVIEW
Q1 FY21 Q2 FY21
01
HEALTHCARE 1st Public Hospital Trial Lodgement of Provisional Patent
02
COLLABORATION
Mindesk Multi-User Release
(5G)
EDUCATION, AUTOMOTIVE &
03 DEFENCE
Access to DELL SnP Global
PARTNERSHIPS & PROGRAMS Facebook ISV Program Autodesk/Microsoft Program
Program
04
Secured Solidworks Top 10 Global
DISTRIBUTION NETWORK 50 Global Sales Partners
Partner
05
Mindesk 2020.3 Release Launch of DELL Powered VR
TECHNOLOGY DEVELOPMENT Mindesk 2020.4 Release
Solutions (VRONE)
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VECTION OPERATIONAL UPDATE - Q1 2021 COMPANY OVERVIEW VECTION TECHNOLOGIES MARKET STATEMENT
01 Vection Technologies, the real-time software company, 02 seeks to innovate key company processes , from design & engineering, manufacturing and training, to marketing & sales and maintenance, through real-time software that improves the real world leveraging the virtual world . 03 We strive to support organisations and their clients via successful customer experiences . 04
DESIGN & ENGINEERING Real-time technologies enable a faster, more efficient and affordable design process. MAINTENANCE MANUFACTURING Real-time technologies Optimizing plant and asset help save time by providing workflows management: additional information and real-time technologies reduce assisting workers in costs, increase product quality machine operations. and ensure work safety. MARKETING & SALES TRAINING Immersive, realistic and Immersive real-time customizable product technologies enable more presentations improve dynamic and cost-effective communication and training and induction engagement with customers. programs.
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VECTION OPERATIONAL UPDATE - Q1 2021
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COMPANY OVERVIEW OVERARCHING OBJECTIVES
01
Vection Technologies seeks to build an interconnected, 360° real-time software product suite for industry 4.0 , covering all aspects of companies’ workflows.
02
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:
03
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A versatile real-time software suite capable of addressing the users' needs.
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Providing solutions to through focused implementation of the Company’s 360° software suite.
04
- A global approach supported by local representatives.
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VECTION OPERATIONAL UPDATE - Q1 2021 COMPANY OVERVIEW
OUR BUILDING BLOCKS FOR MARKET DOMINANCE
01 North America Headquarters San Francisco, U.S.
02 Europe Headquarters Bologna, Italy Europe R&D
03 Bari, Italy India Operations Ahmedabad, India 04 Corporate Headquarters Perth, Australia 05 Global presence supported by 50+ partners worldwide.
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VECTION OPERATIONAL UPDATE - Q1 2021
COMPANY OVERVIEW
PRODUCT SUITE
01
02
MINDESK
03
● REAL-TIME RENDERING ●
● IMMERSIVE REVIEWS ●
04
● COLLABORATIVE DESIGN ●
● VR 3D MODELLING ●
05
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01
02
MINDESK FRAMES TRAINER CREATOR CONFIGURATORS
03
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EFFECTIVE TRAINING
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CLIENT INVOLVEMENT
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REAL-TIME RENDERING ● ONLINE SALES
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VR/AR MANUALS
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BETTER MARKETING
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IMMERSIVE REVIEWS ● PRODUCT CUSTOMIZATION
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POST-SALE EXPERIENCE
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INCREASED SALES
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COLLABORATIVE DESIGN ● TRAINING
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PRODUCT DEMOS
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ERP CONNECTED
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REMOTE MEETINGS
∞ CUSTOM SOLUTIONS
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SOFTWARE DEVELOPMENT
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VR/AR EXPERIENCES
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VIRTUAL BOOTH
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3D MODELS
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Services
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Increased technical services efficiency and outputs via VR/AR
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● Increased safety via AR
VECTION OPERATIONAL UPDATE - Q1 2021
COMPANY OVERVIEW
VECTION ACROSS THE VALUE CHAIN
Operations
01
Corporate/CXO
- Innovative product experiences via VR/AR
- ● Training via VR/AR increases uptime
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Virtualisation of key company processes enabling
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02 significant cost reductions
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Effective training via VR/AR
03
Manufacturing & Supply Chain
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Increased productivity and quality via AR
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● Increased safety and workers’ satisfaction via AR ● Optimised production quality via AR
04 Sales & Marketing
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Virtual presentation of products via engaging VR /AR
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● Engaging trade-show experiences, reducing logistics costs via VR/AR
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Unique and customisable marketing experiences via
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05 VR/AR
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Design & Engineering
- Faster, more efficient design & engineering process via VR/AR for teams and users
Copyright © 2020 Vection Technologies
ENTERPRISE
USER
TEAM
14
02
03
04
05
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VECTION OPERATIONAL UPDATE - Q1 2021 COMPANY OVERVIEW DIVERSITY OF APPLICATION
01
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ARCHITECTURE, ENGINEERING & CONSTRUCTION
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MACHINERY
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AUTOMOTIVE
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NAVAL
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FASHION & FURNITURE
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EDUCATION
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HEALTHCARE
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VECTION OPERATIONAL UPDATE - Q1 2021
COMPANY OVERVIEW
STRONG VR/AR PROPOSITION
VECTION READY
01
02
50+
03 VRONE
VECTION
VECTION
INTEGRATORS AND
POWERED
360 [0 ] SUITE DISTRIBUTORS
04
05
CAR ITALY
16 VECTION PARTNER NETWORK Copyright © 2020 Vection Technologies
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VECTION OPERATIONAL UPDATE - Q1 2021
CORPORATE OVERVIEW LEADERSHIP TEAM
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Gianmarco Biagi
01
Managing Director, Vection Technologies
Experienced executive and board member of several multinational manufacturing corporations. Mr Biagi has a postgraduate degree in Engineering and a Master’s degree in Business and Strategic Management.
Gianmarco Orgnoni
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Director & COO, Vection Technologies
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02
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VP Vection India
Experienced executive across European and Australian private and publicly listed companies. Mr Orgnoni holds a bachelor’s degree in economics and Business Administration.
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Lorenzo Biagi
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03
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Director & CSO, Vection Technologies
CEO Vection Italy
Experienced company manager in the private sector, with extensive knowledge in virtual reality technology, sales and cost control management.
Gabriele Sorrento
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Director & Head of Global Partnerships, Vection Technologies
CEO Mindesk Suite
Fulbright Alumnus, M.Sc. in Architectural Engineering, 13+ years of experience in 3D CAD, previously worked with renowned architectural brands including Renzo Piano Building Workshop and Heller Manus Architects.
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Bert Mondello LLB
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05
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Chairman, Vection Technologies
Experienced executive with over 20 years’ experience across both the private and public sectors. Mr Mondello has substantial technology, capital markets experience and knowledge of equity markets.
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Vittorio Bava
Head of SaaS, Vection Technologies
Serial founder with experience in startups in food tech and consumer internet, he started his career at Google as a tech analyst. He holds a Msc. in international management from ESADE, Barcelona, and a Bsc. in business administration from Bocconi University, Milan.
Alessandro Nones
Head of R&D & Co-CTO, Vection Technologies
Senior Developer and Manager, creator of multiple software programs published in major computer magazines. He holds the role of team leader in the development of FrameS.
Dino Russo
Operations Manager & Co-CTO, Vection Technologies
Senior Developer and Manager, degree in Computer Science, 15+ years of experience as Software Architect. He is specialist in CAD data exchange, he leads the development operations of custom projects.
Sergio Giorgio
CTO, Mindesk suite
37+ years of experience in the development of automation, gaming, 3D graphics and artificial Intelligence software. Previously worked for Alstom Ferroviaria (10 years) as Senior Architect and Developer.
Andrea Bortolotti
CMO, Vection Technologies
15+ years of experience in the development of Virtual Reality, Augmented Reality and Mixed Reality solutions. Extensive knowledge in technology, game design and history.
Kavit Goswami
CEO, Vection India
10+ years of experience in software development and team management, with over 100 applications developed. He holds a Master of Science and Information Technology from the DAIICT in India.
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VECTION OPERATIONAL UPDATE - Q1 2021
CORPORATE OVERVIEW
CORPORATE SNAPSHOT
01 CORPORATE SNAPSHOT
● Share Price [1] : 13¢
● Shares on Issue [2,3] : 965.7M
● Market Capitalisation : $125.5M
02
● Cash [4] : $8M
● Secured grants/financing: $1.6M
OWNERSHIP BREAKDOWN [4]
03
Other Board &
Shareholders Management
33% 41%
04
Other Institutional
05 Top 20 Investors
11% 15%
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SHARE PRICE / VOLUME HISTORY
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Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sept-20 Oct-20
PRICE ($)
VOLUME (UNITS)
Oct-19 Nov-19 Dec-19
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1 Share Price at 29 October 2020. 2 Excludes any Deferred Consideration and/or Performance Rights/Shares.
3 165.5M escrowed Shares are included. 4 At 30 September 2020, including $6M from placement (ASX:2 October 2020)
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VECTION OPERATIONAL UPDATE - Q1 2021 MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY NAVIGATING A POST-COVID 19 ENVIRONMENT: KEY TRENDS
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01
DIGITALISATION AND INDUSTRY 4.0 BEHAVIOURAL CHANGE
02 VR/AR is reshaping how manufacturersinnovate and respond to customer 4.0 BE Working from home while in quarantine has created a new normal.
demands.
03 CAD CONVERGENCE 5G EMERGENCE
VR/AR software is revolutionising the entirety of design and creation CAD 5G Super-fast mobile networks will further boost the potential of XR (Extended
workflows across industries. Reality).
04
HEALTHCARE EDUCATION & TRAINING
05 Using VR/AR technology to create value. HC E&T Pupils can engage with learning in fun new ways, and AR brings new flexibility
to on-the-job training.
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VECTION OPERATIONAL UPDATE - Q1 2021
MARKET OPPORTUNITY
DIGITALIZATION & INDUSTRY 4.0
01
Digitalization
02 manufacturing.
It’s a core component of
03
cloud computing.
04 McKinsey estimates that
companies
digitalization of key processes.1
05
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MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY DIGITALIZATION & INDUSTRY 4.0
Digitalization is enabling a reinvention of manufacturing.
It’s a core component of Industry 4.0 : the merger of automation, the Internet of Things (IoT), virtual and augmented reality, business processes, big data and cloud computing. It’s reshaping how manufacturers innovate and respond to customer demands.
McKinsey estimates that 70% of manufacturing companies still have to grab the full potential of digitalization of key processes.1
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INTERNET VIRTUAL AND
OF THINGS (IoT) AUGMENTED REALITY
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1 ~~h~~ ttps://www.mckinsey.com/industries/advanced-electronics/our-insights/capturing-value-at-scale-in-discrete-manufacturing-with-industry-4-0
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VECTION OPERATIONAL UPDATE - Q1 2021 MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY CAD CONVERGENCE OPPORTUNITY
-
01
-
Engineers, designers and builders are increasingly looking for solutions that can quickly turn their Computer Aided Design (CAD) data into real-time experiences, reducing costs, expensive mistakes and create unique experiences .
The convergence of augmented reality (AR), virtual reality (VR), and mixed reality (MR) with CAD software is revolutionising the entirety of design and creation workflows across industries.
02
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MR & RENDERING
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CAD SOFTWARE
03
04
05
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REAL-TIME LINK
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VECTION OPERATIONAL UPDATE - Q1 2021 MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY CAD/VR CONVERGENCE MARKET OVERVIEW
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PRICE TO SALES RATIO,
01 CAD CONVERGENCE SOFTWARE MARKET
25x
Company Ticker Code
02 Unity Software Inc U:NYSE
20x USD $26.3 B
USD $3.7 B
Altium Limited ALU:ASX Market Cap.
Market Cap.
Ansys, Inc ANSS:NASDAQ 15x USD $26.4 B
03 USD $52.1 B Market Cap.
Autodesk, Inc ADSK:NASDAQ
Market Cap.
Dassault Systèmes SE DSY:EPA 10x
USD $44.7 B
PTC, Inc PTC:NASDAQ
04 USD $9.6 B Market Cap.
5x Market Cap.
0x
05
Price to Sales Ratio
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- Financial information sourced from ycharts.com at 29 September 2020. Dollar values are in USD currency.
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VECTION OPERATIONAL UPDATE - Q1 2021
MARKET OPPORTUNITY
DRIVING FORCES & MARKET OPPORTUNITY
DIVERSE APPLICATIONS FOR AR/VR SOFTWARE IN 2025 [1]
01
Enterprise and public sector: Consumer:
USD $16.1 B USD $18.9 B
02
03
USD $35 B
Estimated Market
Healthcare: USD $5.1 B
04 Engineering: USD $4.7 B
Real Estate: USD $2.6 B
Retail: USD $1.6 B Videogames: USD $11.6 B
05 Military: USD $1.4 B Live Events: USD $4.1 B
Education: USD $0.7 B Video entertainment: USD $3.2 B
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1 Source: https://www.goldmansachs.com/insights/pages/technology-driving-innovation-folder/virtual-and-augmented-reality/report.pdf
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VECTION OPERATIONAL UPDATE - Q1 2021
MARKET OPPORTUNITY
DRIVING FORCES & MARKET OPPORTUNITY MANUFACTURING OVERVIEW
01
The opportunity in manufacturing:
USD $18 B
02
Design TAM by 2023
03
USD $13 B
Make TAM by 2023
04
Source: Cambashi FY20 Application TAM. The TAM numbers presented are estimates & are likely understated given the impact of piracy rates, availability of free software, in-house development & other variables.
1 Professionals Data, Cambashi – est. for CY2022 (Worldwide excluding China).
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Drafters
0.5M
Other Electrical
engineers engineers
4M 1M
9M
Global core design &
Analyst
Professionals
Mechanical
engineers
3.5M
Manufacturing Manufacturing
managers supervisors
6M 3M
19M
Global [1] production
engineer & analyst
professionals
Industrial, production & Tool makers, setters
plant operators & operators
1M 9M
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05
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| 2 Quarter Highlights, Achievements & Objectives 1 Corporate Overview 3 Company Overview Market Opportunity 4 Company Highlights 5 |
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Copyright © 2020 Vection Technologies
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VECTION OPERATIONAL UPDATE - Q1 2021
COMPANY HIGHLIGHTS
FOCUS ON CONTINUED GROWTH
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01 ● Ability to Execute: Vection Technologies has continuously delivered on its growth strategy towards the creation of a 360° product suite for Industry 4.0.
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Market Trends: the increased adoption of collaborative real-time technologies including 3D, VR and AR will continue to drive growth opportunities for Vection Technologies, globally.
02 03
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Technological Partners: partners such as Dassault Systémes SolidWorks Corporation, McNeel, Siemens, Epic Games, HP, Logitech and Varjo provide for significant visibility and commercial opportunities for Vection Technologies.
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● Financial Partners: shareholders such as the Italian Government, HTC Vive X, Primoglio SGR and A11 Venture represent an institutional blue chip shareholder base of global appeal.
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Technology Advantage : Vection Technologies’ proprietary 3D, Virtual Reality, Augmented Reality, Industrial IoT and CAD
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04 real-time solutions help companies and organisations to innovate, collaborate and create value.
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- Value Growth : Vection Technologies remains committed to the achievement of continued incremental growth across its software product suite to ensure compounded value creation for all stakeholders.
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- Partnerships and M&A : Vection Technologies will continue to pursue partnership and well executed M&A opportunities to support its long-term vision of creating a 360° real-time software product suite for Industry 4.0 towards market dominance.
Copyright © 2020 Vection Technologies
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Corporate Headquarters 642 Newcastle Street, Leederville WA 6007
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Europe Headquarters Via Isonzo 61, 40033 Casalecchio di Reno (BO), Italy
Europe R&D
Via Volga c/o Fiera del levante, 70132 Bari (BA), Italy
North America Headquarters
Investor Relations Contact Details
Gianmarco Biagi - Managing Director (Europe Based) Email: [email protected] Phone: +39 051 0142248
Gianmarco Orgnoni - Director and COO (Australia Based) Email: [email protected] Phone: +61 8 6380 2555
785 Market Street, #600 San Francisco CA 94103, USA
India Operations
903, Samedh Complex, Panchvati Cross Road,
C.G Road, Ahmedabad – 380009 Gujarat, India
vection.com.au mindeskvr.com
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Copyright © 2020 Vection Technologies