VECTION TECHNOLOGIES LTD — Interim / Quarterly Report 2024

Feb 28, 2024

==> picture [491 x 173] intentionally omitted <==

1H FY24 Results 29 February 2024

a Agend 1H FY24 Results aFY23

1. Vection Overview 2. Results Overview 3. Financials 4. Strategy & Outlook

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

4

==> picture [459 x 166] intentionally omitted <==

Overview Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

==> picture [13 x 16] intentionally omitted <==

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

5
----- End of picture text -----

• What we do Our solutions and services facilitate the evolution of businesses from 2D to 3D , crafting experiences that integrate the digital and physical worlds.

• Our goal is to deliver time and cost savings , mitigate risks , and empower our clients with actionable data .

==> picture [868 x 315] intentionally omitted <==

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

7
----- End of picture text -----

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

==> picture [459 x 166] intentionally omitted <==

1H FY24 Results Overview Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

==> picture [13 x 16] intentionally omitted <==

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

5
----- End of picture text -----

Business Highlights

• The Company has demonstrated its ability to grow its revenue base by expanding and securing customer contracts. This has led to a 38% 1H FY24 revenue increase PcP.

• The Company expects to deliver a significant revenue uplift in 2H FY24. By comparison, in FY23, Vection recorded a 217% revenue increase of 2H/1H.

• 1H FY24 EBITDA was unchanged compared to 1H FY23. In 2H FY24, the Company expects to improve its underlying results as it focuses on generating positive earnings and cashflows.

• Substantial new contracts have been executed in February 2024, valued at $5.9m in TCV.

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

==> picture [633 x 810] intentionally omitted <==

Business Highlights

• Focus on market expansion and client relationship efforts across 9 industrial sectors.

• Vection anticipates positive outcomes from the interest generated in the Saudi Arabian market, leading to further contracts in the area.

• Vection's pivotal projects in the Healthcare sector demonstrate its ability to provide scalable and complex solutions.

• Vection enhanced its defence-focused operations with strategic initiatives such as the Lunar City project.

• Integrating Virtual Reality, Cloud, Data Security, and Artificial Intelligence technologies has improved user experiences and opened new avenues for business growth.

• A focused approach towards market expansion, client relationships, and technological innovation will be critical for Vection's continued growth in the second half.

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

9

Business Highlights (TCV)

TCV by Quarter (FY22, FY23, FY24)

==> picture [884 x 364] intentionally omitted <==

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

• Total Contract Value (“ TCV ”) for the first half grew to $16.7m, up 67% PcP

==> picture [14 x 16] intentionally omitted <==

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

9
----- End of picture text -----

Business Highlights (TCV)

TCV by Market Segment (31/12/2023) in %:

==> picture [840 x 380] intentionally omitted <==

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

• The Sports, Betting, Media & Telco sector grew to approximately 43% of the TCV.

• Defence, Space, Military & Law Enforcement, the next largest sector, was 31%.

• Followed by Real Estate & Furniture at 8%.

• The fashion, Retail, Service Agencies, and Food sector constitute 3% of the TCV.

• Partners & Distributors also contributing 3%.

9

==> picture [459 x 166] intentionally omitted <==

Financials Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

==> picture [13 x 16] intentionally omitted <==

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

5
----- End of picture text -----

1H FY24 Financial Highlights

==> picture [837 x 389] intentionally omitted <==

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

EBITDA
$(7.5)m
vs $(7.7)m
in 1H FY23
Revenue
$10.9m
Up 38%
pop
Underlying
EBITDA
$(4.2)m
vs $(2.8)m
in 1H FY23
----- End of picture text -----

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

Closing Cash $ 5.2m vs $11.4m at 30 June 2023 Debt $9.7m vs $10.3m at 30 June 2023 10

1H FY24 Financial Highlights

	1H FY24 $'000	1HFY23 $'000	Variance %
Revenue	10,929	7,912	38%
Other Revenue Total Revenue	555 11,484	393 8,305	41% 38%
Expenses Net Loss before tax	(20,534) (9,050)	(16,390) (8,085)	25% 12%
Depreciation & Amortisation Net finance expenses	1,137 434	545 (143)	109% -403%
EBITDA	(7,479)	(7,683)	-3%
FX & Share based payment expenses	394	1,323	-70%
Impairment of assets Underlying EBITDA	2,859 (4,226)	3,526 (2,834)	-19% 49%

• Revenue up 38% compared to 1H FY23.

• EBITDA aligned with 1HFY23. • Impairment loss of $2.8m recognised during the half. • Underlying EBITDA excludes the impact of FX, share based payments and goodwill impairment.

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

10

1H FY24 Financial Highlights

	31-Dec-23	30-Jun-23	Variance
	$'000	$'000	%
Cash	5,192	11,359	-54%
Trade & other receivables Inventories	11,503 1,103	13,648 676	-16% 63%
Current Assets	17,798	25,683	-31%
PPE Right-of-use assets	1,179 227	550 322	114% -30%
Intangible Assets Financial Assets	20,813 64	15,463 84	35% -24%
Non-current assets Total assets	22,283 40,081	16,419 42,102	36% -5%
Trade & other payables Other current liabilities	11,205	10,969	2%
Current Liabilities Non-current liabilities	19,801 9,326	19,382 3,529	2% 164%
Total liabilities	29,127	22,911	27%
Net assets	10,954	19,191	-43%

• Closing cash balance of $5.2m at 31 Dec 23 and net assets of $10.9m. • Intangible Assets of $20.8m, include Goodwill of $8.3m, Intellectual Property of $0.9m, Patents and Licences of $2.1m, and software of $9.4m.

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

10

1H FY24 Financial Highlights

	1H FY24 1HFY23 $'000 $'000 Net cash from (used) in operating activities (3,738) (970) Net cash used in investing activities (1,861) (9,160) Net cash flow used in financingactivities (655) (228) Net cash movement (6,254) (10,358) Cash at the beginning of the half- year 11,359 14,869 Effects of exchange rate 87 646 Cash at the end of theperiod 5,192 5,157

• Closing cash balance of $5.2m at 31 Dec 23.

• Net cash from operating activites of $5.2m.

• Debt of $0.7m repaid during the period.

• Net cash used in investing activities includes capitalised development costs and capex.

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

10

==> picture [459 x 166] intentionally omitted <==

Strategy & Outlook

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

==> picture [13 x 16] intentionally omitted <==

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

5
----- End of picture text -----

2H FY24 Outlook

• 2H FY24 Revenue growth expected to grow substantially. By comparison, in FY23, Vection recorded a 217% revenue increase of 2H/1H.

• Focus on profitability and cash generation during the remainder of FY24, supported by contract pipeline and customer acquisitions.

==> picture [207 x 75] intentionally omitted <==

Growing TCV:

• Substantial new contracts have been executed in February 2024, valued at $5.9m in TCV.

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

10

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 Technologies, its subsidiaries 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 $) and are unaudited (unless otherwise presented). ASX Release authorised by the Board of Directors of Vection Technologies Ltd.

==> picture [207 x 75] intentionally omitted <==

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.

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results

18

==> picture [491 x 178] intentionally omitted <==

Vection Technologies Ltd (ASX:VR1) | 1H FY24 Results