VECTION TECHNOLOGIES LTD — Interim / Quarterly Report 2021

Nov 2, 2021

3 November 2021 | Australia

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ASX RELEASE

VECTION Q1 FY22 OPERATIONAL UPDATE

Real-time software company Vection Technologies Ltd ( ASX:VR1 ) ( Vection Technologies , Vection or the Company ) is hosting a conference call today, 3 November 2021, at 12pm AEDT to discuss the appended slides and to provide an update of the Company’s business strategy and financial performance.

Participants must register in advance for the investor call using the following link to receive dial-in details: https://us06web.zoom.us/webinar/register/WN_2ooLYMqdRSqqltYOnzNozA

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webinar.

3D webinar. Please share your questions in advance to the Company at AUpress@vection.com.au VIRTUAL ENDS REALITY Investor Relations Contact Details: Gianmarco Biagi - Managing Director (Europe Based) AUGMENTED REALITY Email: gianmarco.biagi@vection.com.au Phone: +39 051 0142248 Gianmarco Orgnoni - Director and COO (Australia Based) INDUSTRIAL Email: gianmarco.orgnoni@vection.com.au IoT Phone: +61 8 6380 7446 About Vection Technologies: CAD

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.

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

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

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

1

OPERATIONAL UPDATE

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LEADING THE XR ENTERPRISE REVOLUTION
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ASX:VR1 November 3, 2021

loT CAD/CAE HW XR 3D VR AR AI ICT

loT CAD/CAE CLOUD XR 3D VR AR AI ICT

VECTION SEEKS TO IMPACT BUSINESS INNOVATION THROUGH THE COMBINATION OF EMERGING TECHNOLOGIES ACROSS THREE LEVELS OF VALUE CREATION:

CLOUD HW XR 3D VR AR

• Core XR platforms

• Integrated with emerging technologies

• Verticalised by industry/market.

 Core Vection Platforms  Integrated Technologies  Key Markets and Customers

2

Q1 FY22 Operational Update

ADVANCING STRATEGIC OUTCOMES

QUARTER ACTIVITIES OVERVIEW

Addition of Dr Siegmar Haasis (former CIO Daimler Mercedes Benz) and Vittorio Terzi (strategic advisor) to Vection’s advisory board, to enable global strategic growth acceleration.

Advanced integration of FY21 acquisitions to generate stronger cost savings, efficiencies and greater growth outcomes.

Continued R&D with a focus on recurring revenue opportunities with launch of Mindesk for Autodesk Revit (~11m AEC users market opportunity)[1] and second half FY22 launch of Webex integrated FrameS solution, a 3D collaborative app.

Growth in FY22 Total Contract Value (TCV) across verticals/industries, with strong opportunities in currently underserved market segments in coming quarters.

Identification of multiple opportunities for value accretive acquisitions within the European, American and AsiaPacific regions.

1 investors.autodesk.com/static-files/56785185-73ca-4b3f-9bb0-80136817c6a

3

Q1 FY22 Operational Update

STRONG START TO FY22

172% QUARTER ON QUARTER GROWTH, CONTINUING MOMENTUM FROM SECOND HALF FY21. STRONG FY22 TOTAL CONTRACT VALUE BASE OF ~$5M, FURTHER UNDERPINS NEXT QUARTERS RESULTS.

ROLLING FOUR QUARTERS GROWTH METRICS

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Revenue First Half FY21 Revenue Second Half FY21 FY22 Total Contract Value (TCV) to date
$5.0M
$4.0M
$3.0M
$2.0M
$1.0M
$-
Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
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4

Q1 FY22 Operational Update

FY22 TCV BY VERTICAL/INDUSTRY

STRONG MOMENTUM WITH $5M FY22 TOTAL CONTRACT VALUE (TCV), UNDERPINNING COMPANY’S STRATEGIC OUTCOMES.

STRONG OPPORTUNITIES FOR GROWTH IN CURRENTLY UNDERSERVED SEGMENTS, EXPECTED TO INCREASE DURING THE NEXT QUARTERS.

 AEC & Real Estate

 Defence, Military & Law Enforcement  Public Sector & Education

 Sports & Betting

 Media & Communication

 Healthcare & Pharma

• Other

• Automotive & Naval

• Service Agencies

• Fashion, Retail & Consumer Goods

 Machinery

FY22 TCV BY VERTICAL

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4%
9%
32%
11%
18% 19%
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5

Q1 FY22 Operational Update

LEADING VERTICAL/ INDUSTRY FOCUS

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AEC & Real Estate
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Fashion, Retail & Consumer Goods
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Healthcare & Pharma
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Machinery
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Defence & Military
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Public Sector & Education
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Media & Communication
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Service Agencies
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Sports & Betting
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Automotive & Naval
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6

Q1 FY22 Operational Update

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|||
|---|---|
|MILAN|
|BOLOGNA|
|ROME|EMEA|
|BARI|
|SAN FRANCISCO|
|ABU DHABI|AHMEDABAD|
|AMERICAS|
|STRONG GLOBAL|
|PRESENCE UNDERPINS|
|FY22 GROWTH|
|ASIA PACIFIC|
|SYDNEY|
|OBJECTIVES, WITH|
|FURTHER EXPANSION|PERTH|
|OPPORTUNITIES IN THE|
|ROADMAP.|
|100+|
|PEOPLE|
|GLOBALLY|
|7|Q1 FY22 Operational Update|

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GROWING GLOBAL PARTNERSHIPS FOR FY22 GROWTH

SOFTWARE

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HARDWARE

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SERVICE & INDUSTRY

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8

Q1 FY22 Operational Update

GOALS AND OUTLOOK:

Revenue Acceleration

International Expansion Further Strategic Acquisitions

Management’s goal is to double yearly revenue underpinned by core XR platforms upselling and increasing TCV and ACV metrics (supported by ~$5M FY22 TCV). A significant international opportunity underpins Vection’s strategy in FY22 supported by strong direct market presence. Targeting a combination of scale, sales team, integrated technologies and geographical expansions.

Scalable XR Technology

Solid XR technology platforms and business applications able to be replicated across diversified industries and geographies.

Market Trends

Increasing accessibility of smartphones, applications and wearables and pandemic considerations are just some of the trends underpinning a fast-growing global XR market projected to reach $463.7 billion by 2026.[1]

(1) www.mordorintelligence.com/industry-reports/extended-reality-xr-market

9

Q1 FY22 Operational Update

CORPORATE OVERVIEW

10

Q1 FY22 Operational Update

LEADERSHIP TEAM

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SHARE PRICE / VOLUME HISTORY

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SHARE PRICE [1] : 13.5¢
SHARES ON ISSUE [2] : 1,034
MARKET CAPITALISATION: $140M
CASH AT BANK [3] : $6.8M
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 Board & Management 44%
 Institutional Shareholders 13%
 Other Top 20 11%
 Other Shareholders 32%
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Volume Close
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(1) At 2 November 2021

(2) Excludes performance rights, performance shares and options (3) At 30 September 2021

Q&A AND INVESTOR CONFERENCE CALL DETAILS

Vection’s management will host a conference call on 3 November 2021 at 12pm AEDT to discuss the investor presentation and to provide an update of the Company’s business strategy and financial performance. Participants must register in advance for the investor call using the following link to receive dial-in details: https://us06web.zoom.us/webinar/register/WN_2ooLYMqdRSqqltYOnzNozA After registering, you will receive a confirmation email containing information about joining the webinar.

Please share your questions in advance to the Company at AUpress@vection.com.au

13

Q1 FY22 Operational Update

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

vection.com.au mindeskvr.com blankcanvas.studio jmcgroup.it

APAC Perth Sydney Ahmedabad EMEA Milan Rome Bologna Bari Abu Dhabi AMER San Francisco

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ASX:VR1 November 3, 2021