VECTION TECHNOLOGIES LTD — Interim / Quarterly Report 2024

Jan 30, 2024

31 January 2024, Australia

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ASX RELEASE

FY24 Q2 ACTIVITY REPORT AND APPENDIX 4C

Vection Technologies Ltd (ASX:VR1, OTC:VCTNY), ("Vection" or the "Company"), the INTEGRATEDXR[] company, is pleased to update the market on its activities and associated cash flows and cash position for the quarter ended 31 December 2023, and up to the date of this announcement.

HALF-YEAR FY24 HIGHLIGHTS (UNAUDITED):

• First-half unaudited revenue was $11.9m, up 37% vs. $8.3m in 1HFY23.

• First-half cash receipts were $14.9m, up 65% vs. $9.0m in 1H FY23.

• At 31 December 2023, forward contracted revenue was $4.8m, up 182% vs $1.7m at 31 December 2022.

FINANCIAL HIGHLIGHTS:

• Q2 FY24 cash receipts were ~$6.7m, up ~46% vs ~$4.6m in Q2 FY23.

• Q2 FY24 operating cash-outflows were reduced by 66% compared to the previous quarter.

• Total debt was $9.4m, down $1.0m compared to the previous quarter.

• Cash of ~$5.5m at 31 December 2023.

OPERATIONAL HIGHLIGHTS:

• Focus on client relationships and market growth, especially in Europe and the Middle East.

• Ongoing technological advancements spanning VR, cloud, data security, and artificial intelligence (“AI”) integration for improved user experience.

• Active cost reduction measures with anticipated results in Q3 and Q4 remain in progress.

CORPORATE HIGHLIGHTS:

• Ongoing efforts to enhance corporate governance within the company.

Gianmarco Biagi, managing director of Vection Technologies, commented:

“Over the quarter, Vection has made significant progress in expanding its operational scope, successfully reaching customers in new regions. This expansion demonstrates our ability to adapt and offer extensive technological solutions across diverse markets and customers.

We have seen encouraging revenue growth, with a 37% increase over the first half of FY23. Our contracted revenue has grown to $4.8m, up 182% from $1.7m on 31 December 2022, which provided an excellent start to an FY23 revenue result of $26.3m.

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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We have also prioritized optimizing our financial performance by reducing cash outflows. This activity has streamlined our operations, without impacting our sales growth.

Our commitment to technological innovation, including advancements in XR, cloud, data security, and AI integration for an enhanced user experience, remains crucial to our growth. These areas will continue to be our focus.

As we look ahead to the rest of the year, we remain optimistic about maintaining our first-half positive momentum. ”

COMPANY FINANCIAL OVERVIEW:

HALF-YEAR FY24 HIGHLIGHTS (UNAUDITED):

Revenue for the first half of FY24 is expected to be $11.9m, up 37% vs. $8.3m in 1HFY23. First-half cash receipts were ~$15m, up 65% vs ~$9m in 1H FY23.

At 31 December 2023, forward contracted revenue was $4.8m, up 183% vs $1.7m at 31 December 2022.

FY24 Total Contract Value (“TCV”) has grown to ~$16.7m, up 67% vs $10m in Q2 FY23.

Chart 1 shows cumulative TCV by quarter for FY22, FY23, and FY24 to date:[1]

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$40
$30 ~$28 m
Q2FY24: +67% PcP ~$19m
$20
Q1FY24: +30% PcP
$10
$-
Q1 FY22, FY23 & FY24 Q2 FY22, FY23 & FY24 Q3 FY22 & FY23 Q4 FY22 & FY23
FY22 FY23 FY24
Millions
----- End of picture text -----

1 Notes:

 Q1 FY22, FY23 & FY24: Cumulative TCV as announced on, 31 October 2022 and 31 October 2021.

 Q2 FY22 & FY23: Cumulative TCV as announced on 31 January 2023, 31 January 2022 and 31 January 2024.  Q3 FY22 & FY23: Cumulative TCV as announced on 23 March 2023 and 12 April 2023.

• Q4 FY22 & FY23: Cumulative TCV as announced on 28 July 2023 and 30 June 2022.

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

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WEBSITE
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www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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Vection focuses on expanding its operations in various regions by offering industry-specific solutions like cloud, VR, ICT, and AI. Furthermore, by targeting specific segments within various industrial sectors and technologies, the Company can improve the range of its technology offerings and enhance its commercial prospects.

Chart 2 shows the current FY24 Q2 TCV by market segment (in %):

Healthcare & Pharma Energy 9 8 Real Estate & Furniture Fashion, Retail, Service Agencies and Food Defence, Space, Military & Law Enforcement Public Sector, Education & Banking $16.7m Transportation, Automotive & Naval 31 Industrial, Machinery & Industrial Food 43 Sports, Betting, Media & Telco Partners & Distributors Grants & Tenders Other

The Company has adjusted the classification of sales from partners and distributors to provide a more accurate representation of our sales data by industry type. Now, these sales are categorized according to their respective underlying sectors, offering a clearer view of the Company’s performance compared to the previous period's TCV.

Following this reclassification, the Sports, Betting, Media & Telco sector has grown to approximately 43%. Defence, Space, Military & Law Enforcement is the next largest sector at 31%, followed by Real Estate & Furniture at 8%. The fashion, Retail, Service Agencies, and Food sector constitute 3% of the TCV, with Partners & Distributors also contributing 3%.

QUARTERLY CASHFLOW SUMMARY:

At 31 December 2023, the Company held cash and cash equivalents of ~$5.5m (30 September 2023: $8.8m).

Cash receipts for Q2 FY24 were ~$6.7m, compared to ~$4.6m in Q2 FY23, resulting in net cash outflows from operating activities of ~$1.2m, down by 66% compared to the previous quarter.

During the quarter, the Company began recording its R&D development cash outflows in the investment section of Appendix 4C. Consequently, it has reinstated the year-to-date cashflows to reflect this change. Previously, it conservatively expensed all R&D costs in the operating cash flows.

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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Cash outflows from investing activities for the quarter were ~$253k, compared to ~$400k in Q1 FY24. This is mainly related to the Company’s technology development activities.

Cash outflows from business activities expenditure totaled ~$8.2m for the quarter, consisting of administration (~$0.7m) and R&D, staff costs, and operating cost of sales (~$7.7m), with the balance to advertising and marketing and leased assets (~$0.3m).

Debt of ~$9.4m reduced by ~$1.0m from the previous period.

OPERATIONAL OVERVIEW:

During the quarter, Vection focused strategically on various market segments and achieved significant progress in its operational groups. The company gained traction in the Real Estate & Furniture industry in Saudi Arabia and made inroads in European fashion and American food.

Vection is well-positioned for continued success across diverse industries.

The strategy of operational groups focused on selected market segments is progressing as below:

 Real Estate & Furniture:

The Company’s technology portfolio in real estate is gaining particular interest in the Saudi Arabian market. Positive results are expected in the latter half of the year due to the Company's growing market presence and export capabilities, as demonstrated by its presentations and negotiations with major national real estate players. Although the current market conditions in Australia are challenging, the Company is engaging in numerous negotiations, particularly in the Smart building sector, which indicates strategic market expansion.

 Fashion, Retail, Service Agencies and Food:

The Company is currently witnessing a positive impact due to the collaboration of its product portfolios and development resources with industry platforms. This is leading to a gradual increase in revenue and development pipeline. The company is actively engaged in the European fashion market and is in ongoing negotiations with major players in the furniture industry. Additionally, it is expanding its influence in the American market by engaging in discussions with leading food and beverage companies. In this segment, Vection continues working on its technology development with customers, including Ferrero.



Healthcare:

Vection has successfully launched its pivotal healthcare project, showcasing its dedication to providing scalable training and complex business solutions. Ongoing conversations with several leading hospitals and pharmaceutical companies highlight the Company's growing healthcare presence.

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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 Defence, Space, Military & Law Enforcement:

After a period of adjustment due to political changes, the Company has entered a dynamic phase of enhancing its defense-focused operations. This includes significant advancements in the cyber security market, driven by global geopolitical shifts. The Company's Lunar City project is progressing into operational phases, with international negotiations reflecting its global strategy.

 Grants & Tenders:

The Company is actively participating in public tenders in the Middle East, focusing on public transport and infrastructure. Their success in securing various grants showcases their competitive edge and market proficiency.

 Partners & Distributors:

The Company is currently revitalizing its partner activities to develop a stronger and more effective channel program. This strategic shift is intended to improve its offerings and align them more closely with its core business goals. With collaborations in the technology and consulting sectors, the Company expects to achieve significant results, marking a key milestone in its organizational restructuring efforts. Vection continues to work with its partners, including Accenture, NTT, Cisco, and Lutech.

 Industrial, Machinery & Industrial Food:

The Company's launch of specialized platforms, especially in the logistics field, is displaying promising results in firmly establishing its business in the market. Collaborations in the consulting sector and partnerships in revenue development projects indicate the Company's strong growth strategy and dedication to innovation.

 Transportation, Automotive & Naval:

Vection’s advancements in transportation technology, including significant integrations and partnerships, are poised to revolutionize their impact on field operations. Ongoing business developments with major players in the transportation sector underscore strategic managerial enhancements.



Sports, Betting, Media & Telco:

The Company is heading towards a crucial season for sports and global events. Its investment in innovative technologies for sports media is expected to bring new business opportunities. Partnerships in AI and avatar technology are leading the way for several groundbreaking developments in this sector.

 Public Sector, Education & Banking and Energy:

The Company is making significant progress in creating synergies in the public sector and education, particularly regarding educational platforms and energy solutions. Ongoing negotiations in the United States surrounding intellectual property rights demonstrate the company's increasing influence and strategic approach in these critical sectors.

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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TECHNOLOGY:

During the quarter, the Company has continued to engage in development activities to establish itself as a leading player in technology and AI development. The company has set itself apart by undertaking innovative initiatives, such as virtual reality, web-based retail planning solutions, and advanced 3D/VR applications for scientific data analysis.

The Company's dedication to state-of-the-art innovation is evident in its versatile application of technologies such as Docker, Python, and AI across various domains.

The Company is committed to continuously improving the core INTEGRATEDXR[] suite platforms across cloud, data security, and 3D to meet the market's needs and offer dependable support to its valued customers.

COST REDUCTION:

The Company has continued its cost reduction activities, with anticipated results in Q3 and Q4.

CORPORATE / M&A OVERVIEW:

The Company continues to advance the activities necessary to close the acquisition of MYR (ASX: 8 August 2023), a 3D technology company transforming the fashion and apparel industry. Additionally, the Company continues actively reviewing companies in the XR and AI space to drive its organic growth further and enhance service to its clients globally.

On 10 November 2023, the Company appointed a new Chair, Mr Damian Banks, to the Board. Mr Banks is an experienced business leader with a proven track record in developing and expanding successful healthcare, employment, and banking businesses. He brings a wealth of governance knowledge and business acumen to the Vection Board. Mr Banks chaired the Company's 2023 Annual General Meeting, where shareholders approved all resolutions.

On 2 November 2023, the Company appointed Mr Ricccardo Leoni as its interim Chief Financial Officer (“CFO”). Mr. Leoni is a seasoned financial professional with experience in listed and unlisted entities. He is expected to play a significant role in establishing the necessary financial reporting structures to enable the Company to achieve its growth plans. As the Company's primary market is in Europe, having a CFO based in Europe is critical to managing the Company's operations effectively in the future.

OUTLOOK:

The Company is well-positioned to take advantage of current market trends while focusing on economic conditions that may impact the broader market.

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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To ensure consistent growth, the company is committed to reducing expenses and building a solid foundation that enables strategic acquisitions, particularly in emerging technology sectors like AI.

LISTING RULE 4.7C3:

The aggregate payments to related parties and their associates included in the current quarter cash flows from operating activities totaled ~$329k. These payments consisted of Directors’ fees and salaries paid to directors. All payments were on normal commercial terms.

AUTHORISATION:

This ASX release is authorized by the Board of Directors of Vection Technologies Limited.

ENDS

INVESTOR RELATIONS CONTACT DETAILS:

Gianmarco Biagi - Managing Director (Europe Based) Email: gianmarco.biagi@vection-technologies.com Phone: +39 051 014 2248

Gianmarco Orgnoni – Director, CSO & CMO (Australia Based) Email: gianmarco.orgnoni@vection-technologies.com Phone: +61 8 6380 7446

ABOUT VECTION TECHNOLOGIES:

Vection Technologies is a growing enterprise-focused company that helps businesses bridge the physical and digital worlds. We help organisations leverage their 3D data via powerful extended reality (XR) interfaces that foster collaboration and learning, grow sales and more.

Vection Technologies is listed on the Australian Securities Exchange (ASX) with ticker code VR1, and trades on the U.S. over-the-counter (OTC) markets under the symbol VCTNY.

For more information, please visit: www.vection-technologies.com

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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FORWARD-LOOKING STATEMENTS:

Certain statements made in this release are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Vection Technologies' current expectations, estimates and projections about the industry in which Vection Technologies operates, and beliefs and assumptions. Forwardlooking statements can generally be identified by the use of forward-looking words such as 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'will', 'could', 'may', 'target', 'plan' and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, guidance, or outlook on future earnings, distributions, financial position, or performance are also forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the control of Vection Technologies, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forwardlooking statements. The Company cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Vection Technologies only as of the date of this release. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Vection Technologies has no obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this release except as required by law or by any appropriate regulatory authority.

GLOSSARY:

FY24 TCV is a metric that combines all contracts, including subscription and maintenance packages, that the Company expects to convert into revenue (or a percentage thereof) during the fiscal year, subject to audit review. The Company notes that quarterly cash receipts may vary depending on the solution and/or service provided to the end customer, and any individual material contract award will be separately announced to the market as applicable. Furthermore, the Company notes that most of its current revenue-generating activities still depend on upfront and implementation fees (in addition to a recurring revenue component). Therefore, cash receipts and TCV metrics can significantly vary each period, while organically growing on a full fiscal year basis. The final revenue figure for FY24 is subject to audit review.

INTEGRATEDXR[] is the Company’s solutions and service suite, from Virtual Reality (VR), Augmented Reality (AR) and Mixed Reality (MR) technologies to Metaverse, ICT Infrastructure and devices, Kiosks, 3D Modeling and Rendering services and Artificial Intelligence (AI). Vection Technologies seeks to help businesses bridge the physical and digital worlds, through a unique INTEGRATEDXR[] experience.

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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Chart 3 shows the INTEGRATEDXR[] solutions suite technology framework:

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VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

PERTH | SYDNEY | SAN FRANCISCO | MILAN | BOLOGNA | ROME | BARI | ABU DHABI | AHMEDABAD

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

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Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

VECTION TECHNOLOGIES LIMITED

ABN

ABN 93 614 814 041	Quarter ended (“current quarter”)
93 614 814 041	31 DECEMBER 2023

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (VAT Refund) 1.9 Net cash from / (used in) operating activities	6,721 (123) (5,084) (82) (220) (1,936) (708) - 26 (167) (127) - 502	14,910 (157) (14,019) (308) (365) (3,521) (1,353) - 17 (302) (140) - 485
	(1,198)	(4,753)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets	(3) - - - (251) -	(17) - (8) - (629) -

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Cash and cash equivalents acquired from acquisition 2.6 Net cash from / (used in) investing activities		- - - - - - - - -	- - - - - - - - -
		(254)	(655)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities		- - - - 4,198 (5,254) - - -	- - - - 7,471 (7,955) - - (23)
		(1,056)	(507)
4. 4.1 4.2 4.3	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period* Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above)	8,033 (1,198) (254)	11,359 (4,753) (655)

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 2

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
4.4 4.5 4.6	Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	(1,056) 6	(507) 87
		5,531	5,531
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details if material) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)		5,531 - - -	8,033 - - -
		5,531	8,033
6. Payments to related parties of the entity and their associates			Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 329 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.			329
			-

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 3

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities 11,265 9,362 Credit standby arrangements - - Other (please specify) - - Total financing facilities 11,265 9,362 Unused financing facilities available at quarter end 1,903 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	11,265	9,362
	-	-
	-	-
	11,265	9,362

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Terms of the borrowings:

• A fixed rate bank loan provided by Banco BPM to Vection Italy. The loan has a 6 years term with an expiry date of 6 June 2026. The loan has a fixed Interest rate of 1.25%

• A variable rate bank loan provided by Intesa San Paolo to Vection Italy. The loan has a 6 years term with an expiry date of 9 June 2026. The loan has a variable Interest rate of circa 1.75% plus EURIBOR 1m 360.

• An invoice financing facility provided by BPER to Vection Italy. This is a short term liability at an interest rate of 3.9% plus 1%

• An invoice financing facilities provided by Intesa San Paolo to Vection Italy. This is a short term liability at an interest rate of 8,2% (TAN)

• A contract financing facilities provided by Intesa San Paolo to Vection Italy. This is a short term liability at an interest rate of 8.2% (TAN)

• An invoice financing facility provided by Intesa San Paolo to Vection Italy This is short term liability at an interest rate of 3.125%

• An invoice financing facility provided by Intesa San Paolo to Vection Health. This is a short term liability at an interest rate of 5.57%

• A Banco BPM bank loans by JMC Group. The loans have a 6 years terms with expiry date of 13 August 2026. The loans have a variable Interest rate of 1.25% + EURIBOR 3m 360.

• A Banca Monte Dei Paschi Di Siena (MPS) bank loan by JMC Group. The loan has a 71 months terms with an expiry date of 31 October 2026. The loan has a variable Interest rate of 0.45% + EURIBOR 6m 360.

• A fixed rate facility provided by Dell Financial Services to JMC Group. The facility has 3 years term with an expiry date of 1 January 2024. The average overall effective rate is 8.95%.

• A fixed rate facility provided by Dell Financial Services to JMC Group. The facility has 3 years term with an expiry date of 15 March 2026. The average overall effective rate is 10.81%.

• FOUR fixed rate leasing facilities provided by Dell Financial Services to JMC Group. The facilities have 3 years term and interest rate of 1.99%, 1.99%, 4.39% and 13.08%.

• An Invoice and contract financing facility provided by MPS to JMC GROUP. This Is a short term liability at an interest rate of 3.60%.

• An Invoice financing facility provided by BPM to JMC GROUP. This Is a short term liability at an interest rate of 5.60%

• An Invoice financing facility provided by BPER to JMC GROUP. This Is a short term liability at an interest rate of 4.70%

• An invoice and contract financing facility provided by Intesa San Paolo to JMC GROUP. This is a short term liability at an interest rate of 4.112%.

• A variable rate bank loan provided by Banco BPM bank loans to Xinntex. The loans have a 6 years terms with expiry date of 11 March 2027. The loans have a variable Interest rate of 1.4% + EURIBOR 3m 360.

• An Invoice financing facility provided by BPM to XINNTEX. This Is a short term liability at an interest rate of 5.60%.

• An invoice financing facilities provided by Intesa San Paolo to Invrsion. This is a short term liability at an interest rate of 6.7030% (TAN)

• A short-term overdraft facility provided by Intesa San Paolo to Invrsion. This is a short term liability at an interest rate 4.691% (TAN)

• An invoice financing facilities provided by Banca BPER to Invrsion. This is a short term liability at an interest rate of 4.42% (TAN)

• A short-term overdraft facility provided by Banca BPER to Invrsion. This is a short term liability at an interest rate 3.91% (TAN)

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.9) (1,198) Cash and cash equivalents at quarter end (item 4.6) 5,531 Unused finance facilities available at quarter end (item 7.5) 1,903 Total available funding (item 8.2 + item 8.3) 7,434 Estimated quarters of funding available (item 8.4 divided by item 8.1) 6.21 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(1,198) 5,531 1,903
		7,434
	Answer: N/A
	8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: N/A
	8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: N/A
	Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 31 January 2024

Authorised by: By the Board

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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