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VECTION TECHNOLOGIES LTD Investor Presentation 2020

Aug 30, 2020

66017_rns_2020-08-30_0a72b9fb-d689-4e2c-a82c-435dee73ae92.pdf

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VECTION FULL YEAR INVESTOR PRESENTATION 2020 (ASX:VR1) August 31, 2020

Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

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, Trainer Creator 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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Copyright © 2020 Vection Technologies

2

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1 FY20 Highlights & Achievements

Real-time technologies for industrial companies’ digital transformation.

2 FY20 Financial Performance & Metrics
3 Business Overview
4 Corporate Overview
5 Company Overview & Market Opportunity
6 Company Highlights

Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

FY20 HIGHLIGHTS & ACHIEVEMENTS VECTION FULL YEAR FINANCIAL HIGHLIGHTS CONTINUED STRONG GROWTH AMID A GLOBAL PANDEMIC

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01 $4.0M ● Continued triple digit revenue growth of +131% compared to
FY19, despite COVID-19 lockdowns commenced in Q3 FY20.
+131%
YoY
● FY20 total revenue was a record $3.1M .
02 $3.0M
● FY20/FY18 CAGR of +157%.
03 ● FY20 Underlying EBITDA increased by 120%, compared to
$2.0M FY19, to $173,078.
+187%
YoY
● Strong balance sheet, ending the year with a cash balance of
04 ~$1.6M.
$1.0M
● Net Assets at 30 June 2020 increased by 52% to ~$6.1M.~$6.1M.
05
● Strong 101% increase of Net Cash Inflow from Operating
$ -
Activities, now positive.
Full Full Full
FY18 FY19 FY20
06 ● The Company is now focused on recurring revenue
Total Revenue generation for stronger ARR metrics .
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  • Strong balance sheet, ending the year with a cash balance of ~$1.6M.

  • Net Assets at 30 June 2020 increased by 52% to ~$6.1M.~$6.1M.

  • ● Strong 101% increase of Net Cash Inflow from Operating Activities, now positive.

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Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

FY20 HIGHLIGHTS & ACHIEVEMENTS BUILDING MARKET DOMINANCE THROUGH STRONG FOUNDATIONS

01

03

+131% +120% FY20/FY19 Revenue Increase Underlying EBITDA Increase $3.1M $173K FY20 Revenue Underlying EBITDA

+157% FY20/FY18 CAGR Increase

2,300+ Unique Mindesk Accounts

5 Global Offices

50+ Vection Professionals

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04

05

$13.7M 46+ Total Assets Global Partners

+101% Net Cash Inflow from Operating Activities Increase $6.1M $48.6M[[1]] Net Assets Market Cap[[1]]

$48.6M[[1]] 15.8% Market Cap[[1]] Institutional Shareholders

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06

1 At 28 August 2020

Copyright © 2020 Vection Technologies

5

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

FY20 HIGHLIGHTS & ACHIEVEMENTS

FY20 SIGNIFICANT ACHIEVEMENTS OVERVIEW

01

02

03

04

05

Triple digit revenue growth despite European lockdowns in 2H FY20.

Acquisition of Mindesk Inc to accelerate real-time 3D Computer Aided Design (CAD) offerings.Expansion in the United States and exponential growth of partner distribution network, from 2 in June 2019, to 46 in June 2020.

Strategic partnerships with Siemens, Bi-Rex Excellence Center and MUNER (Motorvehicle University of Emilia-Romagna).

Released Trainer Creator AR software, Mindesk Suite 2020.1, and FrameS new modules, whilst moving initial customers to Vection’s 360° SaaS real-time software suite for Industry 4.0.

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06

Entry into the Healthcare sector with eHealth leader, Compugroup Medical SE (ETR:COP).

Copyright © 2020 Vection Technologies

6

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 HIGHLIGHTS & ACHIEVEMENTS OUR BUILDING BLOCKS FOR MARKET DOMINANCE

01

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PARTNERSHIPS

03

TECHNOLOGY

  • Acceleration of development, OEM and distribution agreements with existing technology and industrial partners

04

  • Continued strong focus on proprietary real-time technologies

05

  • Acceleration of new strategic partnerships with key technology and industrial partners across Tier-1 regions

  • Commitment on building a 360° SaaS product suite for Industry 4.0

06

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GROWTH

  • Strong focus on leveraging the existing distribution, online and direct sales network

  • Geographical and market expansion via an enlarged distribution footprint

  • Global marketing and sales initiatives to establish Vection Technologies as the B2B real-time software leader

  • Achieve market dominance across Vection Technologies’ 360° SaaS product suite for Industry 4.0

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Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 HIGHLIGHTS & ACHIEVEMENTS NEXT 6 MONTHS OVERVIEW

01 Strong focus on advancing the Company’s solutions across the healthcare, education and automotive sectors and entry into new
verticals including the defence industry.
Strong focus on advancing the Company’s solutions across the healthcare, education and automotive sectors and entry into new
verticals including the defence industry.
Strong focus on advancing the Company’s solutions across the healthcare, education and automotive sectors and entry into new
verticals including the defence industry.
Strong focus on advancing the Company’s solutions across the healthcare, education and automotive sectors and entry into new
verticals including the defence industry.
Strong focus on advancing the Company’s solutions across the healthcare, education and automotive sectors and entry into new
verticals including the defence industry.
Accelerating the North American and Australian market development and continued growth in the European market segment.
02
Executing commercial partnerships with existing and new Tier-1 global technology companies.
Focus on development of the existing technology suite, with renewed emphasis on cloud and LAN collaboration.
03
Integration of Mindesk suite with leading CAD and BIM software.
04 Launching new products and third-parties software integrations towards the stated objective of building a 360° product suite.
Further expanding and consolidating the global sales infrastructure and footprint to further advance the global client outreach.
05 Strong acceleration of recurring revenue sales initiatives aligned with the Company’s goal to achieve 50% Annualised Recurring
Revenue (ARR) by June 2022.
Finalisation of smart capital initiatives and pursue of continued growth from a position of fnancial strength.
06

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Copyright © 2020 Vection Technologies

8

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1 FY20 Highlights & Achievements

Real-time technologies for industrial companies’ digital transformation.

2 FY20 Financial Performance & Metrics
3 Business Overview
4 Corporate Overview
5 Company Overview & Market Opportunity
6 Company Highlights

Copyright © 2020 Vection Technologies

FY20 Change FY19 FY18
$ $
$
1,362,124
475,324
Revenue
Expenses (excluding add-backs) (2,974,033) (2,238,840)
(3,326,044)
Underlying EBITDA1
173,078
120%
(876,715)
(2,850,720)
Interest and fnancing related costs
(94,385)
Depreciation and amortisation
(507,851)
One-off transaction Costs
(513,294)
Non-cash accounting charges
(219,522)
Income tax
(1,663)
(38,217)
(196,566)
(146,249)
(118,734)
(321,548)
(255,105)
(3,119,883)
-
-
-
Proft (Loss) after income Tax
(1,163,637)
74%
(4,502,612)
(3,421,124)

1 Underlying EBITDA is an unaudited, non-AIFRS financial measure which is not prescribed by Australian Accounting Standards (‘AAS’). Please refer to the Preliminary Appendix 4E dated 31 August 2020 for additional information.

Copyright © 2020 Vection Technologies

10

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 FINANCIAL PERFORMANCE & METRICS BALANCE SHEET

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01 $2.0M
$1.6M
02 $1.5M
03
$1.0M
$0.8M
04 $0.5M
$0.5M
05
$ -
30 June 30 June 30 June
2018 2019 2020
06 Cash and cash equivalents
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30 June 20
30 June 19
30 June 18
$
$
$
Cash and cash equivalents
1,584,715
796,569
513,754
Receivables
2,129,666
1,457,990
1,054,876
Total Current Assets
3,714,381
2,254,559
1,568,630
Property, plant & equipment
76,859
90,075
161,306
Intangible assets
9,841,178
3,589,171
-
Intangible assets
52,130
-
-
Total Non-Current Assets
9,970,167
3,679,246
161,306
Total Assets
13,684,548
5,933,805
1,729,936
Trade and otherpayables
2,728,770
967,959
834,414
Provisions
865,353
246,085
177,870
Interest bearingliabilities
393,420
-
1,140,078
Total Current Liabilities
3,987,543
1,214,044
2,152,362
Deferred tax liability
604,233
-
-
Provisions
3,006,682
705,321
138,760
Total Non-Current Liabilities
3,610,915
705,321
138,760
Total Liabilities
7,598,458
1,919,365
2,291,122
Net Assets/(Liabilities)
6,086,090
4,014,440
(561,186)
30 June 20
30 June 19
30 June 18
$
$
$
Cash and cash equivalents
1,584,715
796,569
513,754
Receivables
2,129,666
1,457,990
1,054,876
Total Current Assets
3,714,381
2,254,559
1,568,630
Property, plant & equipment
76,859
90,075
161,306
Intangible assets
9,841,178
3,589,171
-
Intangible assets
52,130
-
-
Total Non-Current Assets
9,970,167
3,679,246
161,306
Total Assets
13,684,548
5,933,805
1,729,936
Trade and otherpayables
2,728,770
967,959
834,414
Provisions
865,353
246,085
177,870
Interest bearingliabilities
393,420
-
1,140,078
Total Current Liabilities
3,987,543
1,214,044
2,152,362
Deferred tax liability
604,233
-
-
Provisions
3,006,682
705,321
138,760
Total Non-Current Liabilities
3,610,915
705,321
138,760
Total Liabilities
7,598,458
1,919,365
2,291,122
Net Assets/(Liabilities)
6,086,090
4,014,440
(561,186)
30 June 20
30 June 19
30 June 18
$
$
$
Cash and cash equivalents
1,584,715
796,569
513,754
Receivables
2,129,666
1,457,990
1,054,876
Total Current Assets
3,714,381
2,254,559
1,568,630
Property, plant & equipment
76,859
90,075
161,306
Intangible assets
9,841,178
3,589,171
-
Intangible assets
52,130
-
-
Total Non-Current Assets
9,970,167
3,679,246
161,306
Total Assets
13,684,548
5,933,805
1,729,936
Trade and otherpayables
2,728,770
967,959
834,414
Provisions
865,353
246,085
177,870
Interest bearingliabilities
393,420
-
1,140,078
Total Current Liabilities
3,987,543
1,214,044
2,152,362
Deferred tax liability
604,233
-
-
Provisions
3,006,682
705,321
138,760
Total Non-Current Liabilities
3,610,915
705,321
138,760
Total Liabilities
7,598,458
1,919,365
2,291,122
Net Assets/(Liabilities)
6,086,090
4,014,440
(561,186)
30 June 20
30 June 19
30 June 18
$
$
$
Cash and cash equivalents
1,584,715
796,569
513,754
Receivables
2,129,666
1,457,990
1,054,876
Total Current Assets
3,714,381
2,254,559
1,568,630
Property, plant & equipment
76,859
90,075
161,306
Intangible assets
9,841,178
3,589,171
-
Intangible assets
52,130
-
-
Total Non-Current Assets
9,970,167
3,679,246
161,306
Total Assets
13,684,548
5,933,805
1,729,936
Trade and otherpayables
2,728,770
967,959
834,414
Provisions
865,353
246,085
177,870
Interest bearingliabilities
393,420
-
1,140,078
Total Current Liabilities
3,987,543
1,214,044
2,152,362
Deferred tax liability
604,233
-
-
Provisions
3,006,682
705,321
138,760
Total Non-Current Liabilities
3,610,915
705,321
138,760
Total Liabilities
7,598,458
1,919,365
2,291,122
Net Assets/(Liabilities)
6,086,090
4,014,440
(561,186)
30 June 20 30 June 19 30 June 18
$
$
$
1,584,715
796,569
513,754
2,129,666
1,457,990
1,054,876
Cash and cash equivalents 1,584,715
Receivables 2,129,666
Total Current Assets 3,714,381 2,254,559 1,568,630
90,075
3,589,171
-
161,306
-
-
Property, plant & equipment 76,859
Intangible assets 9,841,178
Intangible assets 52,130
Total Non-Current Assets 9,970,167 3,679,246 161,306
Total Assets 13,684,548 5,933,805 1,729,936
967,959
246,085
-
834,414
177,870
1,140,078
Trade and otherpayables 2,728,770
Provisions 865,353
Interest bearingliabilities 393,420
Total Current Liabilities 3,987,543 1,214,044 2,152,362
-
705,321
-
138,760
Deferred tax liability 604,233
Provisions 3,006,682
Total Non-Current Liabilities 3,610,915 705,321 138,760
Total Liabilities 7,598,458 1,919,365 2,291,122
Net Assets/(Liabilities) 6,086,090 4,014,440 (561,186)

Copyright © 2020 Vection Technologies

11

CASHFLOWS Receipts from customers
Payments to suppliers and employees
Interest received
Interest paid / Finance costs
Tax incentives/ (Taxpaid)
2,348,403 1,450,452
(2,914,459)
440
(39,710)
(15,646)
1,450,452
(2,914,459)
440
(39,710)
(15,646)
(2,266,860)
517
(57,846)
(8,952)
Net cash infow (outfow) from operating activities
15,263
(1,518,923)
Purchase of plant and equipment
Purchase of subsidiary (net cash acquired)
Proceeds from sale of/ (Payments for) intangible assets
Proceeds (Payments) for disposal of discontinued operations
Proceeds from sale of investment
(49,729)
(324,412)
56,154
245,599
-
(79,446)
1,137,866
(693,593)
-
1,251
Net cash infow (outfow) from investing activities 366,078 (72,388)
Proceeds from issues of fully paid shares
Payment of transaction costs
Proceeds from borrowings
Prepayment of borrowings
2,000,000
-
- (128,037)
486,819 -
-
(93,400)
Net cash infow (outfow) from fnancing activities 393,420 1,871,963
Net increase / (decrease) in cash and cash equivalents 774,760 280,652
Cash and cash equivalents at the beginning of the fnancial year
Effect of movement in exchange rates on cash held
513,754
2,163
796,569
13,386
Cash and cash equivalents at the end of the fnancialyear
1,584,715
796,569

VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 FINANCIAL PERFORMANCE & METRICS CASHFLOWS

Copyright © 2020 Vection Technologies

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||||||
|---|---|---|---|---|
|VECTION FULL YEAR INVESTOR PRESENTATION FY20|
|FY20 FINANCIAL PERFORMANCE & METRICS|
|FINANCIAL STRATEGY - SMART CAPITAL INITIATIVES|
|The Company has advanced initiatives to access smart capital to secure a stronger cash position across each of the Company’s international|
|01|subsidiaries to ensure a robust framework for future growth during and following this uncertain time, for value creation for all of its|
|stakeholders:|
|Smart Capital Initiative|Status|Value|Key Terms and Conditions|
|02|
|Research & Development grant:|Completed|~$0.6M1|Vection Technologies is entitled to claim up to ~$300k in fiscal credits to be offset|
|against a multitude of periodical fiscal obligations.|
|03|The non-refundable grant will be disbursed as follows:|
|European Commission Grant:|Completed|~$0.5M2|●●|~80% of the total Grant value by theThe remainder disbursed on a working-progress basis over a period of 24end of October 2020; and|
|months|from 1 November 2020.|
|04|
|Commercial loans with ~44 months weighted average repayment period and ~4.4%|
|Commercial Loans:|Completed|~$0.6M|
|weighted average interest rate per annum.|
|05|
|30% non-repayable and 70% repayable after 10 years at nil interest. The Company has|
|Italian Government Loan:|Pending|up to ~$2.0M|received in-principal acceptance and is now finalising documentation.|
|06|
|Strategic unsecured rolling facility, proposed to be expanded as the Company|
|Invoices Financing Facility:|Ongoing|up to ~$0.4M|progresses it commercial strategy and platform adoption. The facility advances funds|
|to the Company upon the issue of invoices to clients, based on requirements.|
|13|1 ASX: 22 July 2019 and 18 May 2020. 2 ASX: 27 May 2020|Copyright © 2020 Vection Technologies|

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1 FY20 Highlights & Achievements

Real-time technologies for industrial companies’ digital transformation.

2 FY20 Financial Performance & Metrics
3 Business Overview
4 Corporate Overview
5 Company Overview & Market Opportunity
6 Company Highlights

Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 BUSINESS OVERVIEW TECHNOLOGY BUILDING A 360° SUITE FOR INDUSTRY 4.0

DESIGN & ENGINEERING

  • Launch of the Mindesk Suite 2020.1,

  • BUILDING A 360° SUITE FOR INDUSTRY 4.0 introducing the 3D pen markup tool, compatible with the Logitech VR INK hardware.

  • MAINTENANCE ● Launch of the Trainer Creator AR MANUFACTURING software in June 2020. ● Focus on continued development of the FrameS 1.7 version (FrameS 20) which will bring to market the highly anticipated Augmented Reality (AR)

  • MARKETING & SALES feature, further expanding the platform’s ● Launch of the FrameS VR Events market penetration. module. TRAINING

  • ● Continued development of the eHealth ● Strong focus on the development of the

  • application to be integrated in FrameS Training safety modules

  • CompuGroup Medical SE ( CGM ) complete line of pharmacy specific management addressing the agricultural sector for the Italian General Confederation of

  • software. Independent Trade Unions.

01 02 03 04 05

MAINTENANCE

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Selection of Vection’s 360° SaaS software suite early customers:
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06

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Copyright © 2020 Vection Technologies

15

VECTION FULL YEAR INVESTOR PRESENTATION FY20 BUSINESS OVERVIEW PARTNERSHIPS 01 OEM Segment: 02 CAD/CAM/CAE/PLM Software Segment: 03 Software Segment: 04 Network Segment: 05 06 Industrial Segment: VOLVO CARS ITALY

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Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 BUSINESS OVERVIEW

GROWTH

PARTNER DISTRIBUTION NETWORK (FY19 vs FY20)

  • Strengthened global distribution network with a total of 44 global

  • 01 distribution partners and 6 global sales consultants added during FY2020.

  • Strategic initiatives within target sectors including the

  • 02 participation at the exclusive “Future Technology for Car Design” April 2020 event organised by T-Systems for the Volkswagen Group .

  • 03 ● Adoption of FrameS software by global fashion house Giorgio Armani S.p.A. for its worldwide retail store planning division.

  • ● Acceleration of Australian commercial roll-out with first two Australian based distributors and first Australian subscriber

  • 04 specialising in design and manufacturing. ● Identification of key market opportunities within critical sectors, including healthcare, education, tourism and

  • 05 defence, leading to strong potential growth in 2H FY21 and into FY22.

  • Strong focus on SaaS and subscription revenue aided by

  • 06 stronger industry interest by businesses globally.

EUROPE, MIDDLE EAST
AND AFRICA:
EUROPE, MIDDLE EAST
AND AFRICA:
2
+
33
PARTNERS
2
+
33
PARTNERS
2
+
33
PARTNERS
ASIA-PACIFIC: 0
+
6 PARTNERS
AMERICAS: 0
+
5 PARTNERS
TOTAL 30 JUNE 2020: TOTAL 30 JUNE 2020: 46
PARTNERS*
TOTAL 30 JUNE 2020:

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  • Vection Technologies is persistently adding new partners to its global distribution network.

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02

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

BUSINESS OVERVIEW

ORGANISATION & PEOPLE

01

  • Completion of all-scrip acquisition of Mindesk , the developer of the first Software as a Service ( SaaS ) real-time 3D design platform that combines Computer Aided Design ( CAD ) with Virtual Reality ( VR ) and graphic engines.

  • Integration of the two management teams , with the addition of:

2 4 New Offices New Senior Managers (U.S. + E.U.)

  • Mr Gabriele Sorrento as Head of Global Partnerships

  • Mr Vittorio Bava as Head of SaaS

03

04

05

  • Mr Sergio Giorgio as CTO of the Mindesk software suite.

  • Addition of Mr Paolo Mossa as Sales Vice President Europe , a highly experienced executive with over 16 years of experience as Client Business Partner at the Nielsen Company.

  • Implementation of tight control systems across the group .

  • Successful discontinuation of South-East Asian operations and consolidation and relaunch of Indian subcontinent operations .

1 1 New Country New Acquisition

  • Organisational restructuring aligned with the Company’s strong focus on recurring revenue generation .

  • Entry in the U.S. market, with first sales office in San Francisco.

06

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1 FY20 Highlights & Achievements

Real-time technologies for industrial companies’ digital transformation.

2 FY20 Financial Performance & Metrics
3 Business Overview
4 Corporate Overview
5 Company Overview & Market Opportunity
6 Company Highlights

Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 CORPORATE OVERVIEW

CORPORATE OVERVIEW

  • Entry of global institutional shareholders including HTC , the Italian Government (via its innovation fund CDP Ventures), Primomiglio SGR and A11 Ventures SGR.

01

  • Institutional shareholders hold 15.8% of the issued capital of Vection Technologies.[1]

02

  • Completion of only-scrip acquisition of Mindesk .

03

  • Addition of Mindesk’s CEO, Mr Gabriele Sorrento, to the Board of Directors of Vection Technologies . Mr Sorrento is a fulbright Alumnus, with an M.Sc. in Architectural Engineering, 13+ years of experience in 3D CAD, and has previously worked with renowned architectural brands including Renzo Piano Building Workshop and Heller Manus Architects .

04

05

06

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HTC Vive : Global smart mobile devices and technology innovator HTC through its VR focused global accelerator program Vive X. HTC is listed on the Taiwan Stock Exchange with ticker code TWSE: 2498 (htc.com and vivex.vive.com).

CDP Ventures SGR: Italian government’s national innovation fund , created to accelerate the growth of the Italian venture capital ecosystem and to take it to the level of the major European countries. (cdp.it)

Primomiglio SGR : A prominent venture capital firm focused on seed and early stage startups. (primomigliosgr.it)

A11 Venture : Leading entrepreneur backed venture capital fund. (a11venture.it)

1 At 30 June 2020.

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

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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02

Director & COO, Vection Technologies

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.

03

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Lorenzo Biagi

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.

04

Gabriele Sorrento

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Director & Head of Global Partnerships, Vection Technologies

CEO Mindesk Suite

05

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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06
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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 FULL YEAR INVESTOR PRESENTATION FY20
CORPORATE OVERVIEW
CORPORATE SNAPSHOT
01 CORPORATE SNAPSHOT
● Share Price [1] : 5.8¢
02 ● Shares on Issue [2,3] : 837.7M
● Market Capitalisation : $48.6M
● Cash [4] : $1.6M
03
OWNERSHIP BREAKDOWN [4]
04 Other Board &
Shareholders Management
25.3% 39.5%
05
Other Institutional
Top 20 Investors
06 19.4% 15.8%
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SHARE PRICE / VOLUME HISTORY

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Data sourced from Nabtrade
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20
PRICE ($)
VOLUME (M UNITS)
Sep-19 Oct-19 Nov-19 Dec-19
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1 Share Price at 28 August 2020.

3 165.5M escrowed Shares are included. 4 At 30 June 2020.

2 Excludes any Deferred Consideration and/or Performance Rights/Shares.

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1 FY20 Highlights & Achievements

Real-time technologies for industrial companies’ digital transformation.

2 FY20 Financial Performance & Metrics
3 Business Overview
4 Corporate Overview
5 Company Overview & Market Opportunity
6 Company Highlights

Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY 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 03 that improves the real world leveraging the virtual world . 04 We strive to support organisations and their clients via successful customer experiences . 05

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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06
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06

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

COMPANY OVERVIEW & MARKET OPPORTUNITY MISSION & VISION

MISSION

01

Vection Technologies delivers real-time software to industrial companies enabling the digital transformation of workflows .

02

03

Through a combination of 3D, Virtual Reality, Augmented Reality and the convergence with Industrial IoT and CAD technologies , Vection Technologies helps companies and organisations to innovate, collaborate and create value .

04

VISION

05

To improve the efficiency of workflows within companies globally, radically empowering workers with real-time technology , abating distances and enhancing the quality of work-life balances towards a sustainable society.

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY 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

03

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:

04

05

  • A versatile real-time software suite capable of addressing the users' needs.

  • Providing solutions to through focused implementation of the Company’s 360° software suite.

  • A global approach supported by local representatives.

06

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

COMPANY OVERVIEW & MARKET OPPORTUNITY GLOBAL REACH

01 North America Headquarters San Francisco, U.S. 02 Europe Headquarters Bologna, Italy 03 Europe R&D Bari, Italy 04 India Operations Ahmedabad, India

05 Corporate Headquarters Perth, Australia 06

Global presence supported by 46+ partners worldwide.

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

COMPANY OVERVIEW & MARKET OPPORTUNITY PRODUCT SUITE

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01
02

03
MINDESK FRAMES TRAINER CREATOR CONFIGURATORS CUSTOM SOLUTIONS
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04

  • REAL-TIME RENDERING ● ONLINE SALES ● EFFECTIVE TRAININGS ● CLIENT INVOLVEMENT ● SOFTWARE DEVELOPMENT

  • ● IMMERSIVE REVIEWS ● PRODUCT CUSTOMIZATION ● VR/AR MANUALS ● BETTER MARKETING ● VR/AR EXPERIENCES

  • 05 ● COLLABORATIVE DESIGN ● TRAINING ● POST-SALE EXPERIENCE ● INCREASED SALES ● VIRTUAL BOOTH ● VR 3D MODELLING ● REMOTE MEETINGS ● PRODUCT DEMOS ● ERP CONNECTED ● 3D MODELS

06

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY STRONG VALUE CHAIN SOLUTIONS

01 ●-60% Time to market
●-80% Physical prototypes
●-60% Time to market
●-80% Physical prototypes
●-60% Time to market
●-80% Physical prototypes
●-60% Time to market
●-80% Physical prototypes
●-60% Time to market
●-80% Physical prototypes
●Automated operational information
●ERP integration
●Automated operational information
●ERP integration
●Automated operational information
●ERP integration
●Automated operational information
●ERP integration
●Reduced virtual showcase costs
●Revitalized sales
●Reduced virtual showcase costs
●Revitalized sales
●Reduced virtual showcase costs
●Revitalized sales
●Reduced virtual showcase costs
●Revitalized sales
●Reduced virtual showcase costs
●Revitalized sales
●Reduced virtual showcase costs
●Revitalized sales
●-60% after sales costs
●Monitor real-time performance
●-60% after sales costs
●Monitor real-time performance
●-60% after sales costs
●Monitor real-time performance
●-60% after sales costs
●Monitor real-time performance
●Reduced design errors ●-40% Training costs ●New clients attraction and costs
●Reduced logistics costs ●Reduced operative errors ●Reduced logistics costs ●Reduced dealer training costs
02
03 DESIGN OPERATIONS MARKETING AFTER SALES
& SALES
04

R&D - Research and Development
●Planning/ERP
Virtual Showcase

Employee training

Real-Time CAD Renderings
●Quality Assurance
AR / VR / Cloud

●AR Remote maintenance
05
Virtual Reality CAD
Viz & editing ●VR layout plant design Product Confguration
●AR/VR Manuals

Virtual Prototyping
●AR Stock management ●Dealer confgurator ●Real-time cost and sales

Ergonomic validation
●AR Safety and Logistics ●Dealer training tool monitoring

Cloud CAD collaboration
●AR/VR HR Management ●Innovative sale points
06

Copyright © 2020 Vection Technologies

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02

03

04

05

06

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VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY DIVERSITY OF APPLICATION

01

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ARCHITECTURE, ENGINEERING & CONSTRUCTION (AEC)

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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 FULL YEAR INVESTOR PRESENTATION FY20

COMPANY OVERVIEW & 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 manufacturers Working from home while in quarantine
innovate and respond to customer 4.0 BE has created a new normal.
demands.
03
CAD CONVERGENCE 5G EMERGENCE
VR/AR software is revolutionising the Super-fast mobile networks will further
04 entirety of design and creation CAD 5G boost the potential of XR (Extended
workflows across industries. Reality).
05
HEALTHCARE EDUCATION & TRAINING
06 Using VR/AR technology to create value. HC E&T Pupils can engage with learning in funnew ways, and AR brings new flexibility
to on-the-job training.
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VECTION FULL YEAR INVESTOR PRESENTATION FY20
COMPANY OVERVIEW & MARKET OPPORTUNITY
DIGITALIZATION & INDUSTRY 4.0
01
02 Digitalization
manufacturing.
03 It’s a core component of
04 cloud computing.
McKinsey estimates that
05 companies
digitalization of key processes.1
06
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COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY DIGITALIZATION & INDUSTRY 4.0

02 Digitalization is enabling a reinvention of manufacturing.

03 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 04 cloud computing. It’s reshaping how manufacturers innovate and respond to customer demands.

McKinsey estimates that 70% of manufacturing 05 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 FULL YEAR INVESTOR PRESENTATION FY20

COMPANY OVERVIEW & 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 .

  • 02 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.

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MR & RENDERING
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03 CAD SOFTWARE
04
05
06
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REAL-TIME LINK
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VECTION FULL YEAR INVESTOR PRESENTATION FY20
COMPANY OVERVIEW & MARKET OPPORTUNITY
01
02 Company
Altium Limited ALU:ASX
03
Ansys, Inc
04 Autodesk, Inc
Dassault Systèmes SE DSY:EPA
05
PTC, Inc PTC:NASDAQ
06
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COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY CAD SOFTWARE MARKET OVERVIEW

PRICE TO SALES RATIO, CAD SOFTWARE MARKET*

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01
25x
02 Company Ticker Code
20x
Altium Limited ALU:ASX
USD $28.9 B
03 USD $3.3 B
Market Cap.
Ansys, Inc ANSS:NASDAQ 15x Market Cap.
USD $54.2 B
Market Cap.
04 Autodesk, Inc ADSK:NASDAQ
10x
USD $49.2 B
Dassault Systèmes SE DSY:EPA Market Cap.
USD $10.6 B
05 5x
Market Cap.
PTC, Inc PTC:NASDAQ
0x
06
Financial information sourced from ycharts.com at 28 August 2020.
Dollar values are in USD currency.
Price to Sales Ratio
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VECTION FULL YEAR INVESTOR PRESENTATION FY20
COMPANY OVERVIEW & MARKET OPPORTUNITY
01
02
03
04
Healthcare:
Engineering:
05
Real Estate:
Retail:
06 Military:
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COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY DIVERSE APPLICATIONS FOR AR/VR SOFTWARE IN 2025[1]

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01
Enterprise and public sector: Consumer:
02 USD $16.1 B USD $18.9 B
03
USD $35 B
04 Estimated Market
Healthcare: USD $5.1 B
Engineering: USD $4.7 B
05
Real Estate: USD $2.6 B
Retail: USD $1.6 B Videogames: USD $11.6 B
06 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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Drafters
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0.5M

VECTION FULL YEAR INVESTOR PRESENTATION FY20

COMPANY OVERVIEW & MARKET OPPORTUNITY

DRIVING FORCES & MARKET OPPORTUNITY MANUFACTURING OVERVIEW

01

The opportunity in manufacturing:

02

USD $18 B

Design TAM by 2023

03

USD $13 B

04

Make TAM by 2023

Source: Cambashi FY20 Application TAM. The TAM numbers presented are estimates & 05 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).

06

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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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1 FY20 Highlights & Achievements

Real-time technologies for industrial companies’ digital transformation.

2 FY20 Financial Performance & Metrics 3 Business Overview 4 Corporate Overview 5 Company Overview & Market Opportunity 6 Company Highlights

Copyright © 2020 Vection Technologies

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VECTION FULL YEAR INVESTOR PRESENTATION FY20

COMPANY HIGHLIGHTS

FOCUS ON CONTINUED GROWTH

01

02

03

  • Ability to Execute: Vection Technologies has continuously delivered on its growth strategy towards the creation of a 360° product suite for Industry 4.0.

  • 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.

  • 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.

  • 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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04

05

06

  • Technology Advantage : Vection Technologies’ proprietary 3D, Virtual Reality, Augmented Reality, Industrial IoT and CAD real-time solutions help companies and organisations to innovate, collaborate and create value.

  • 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.

  • 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.

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Copyright © 2020 Vection Technologies

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Corporate Headquarters Suite 1, 437 Roberts Road Subiaco WA 6008, Australia

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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

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

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

ASX Release authorised by the Board of Directors of Vection Technologies Ltd.