VECTION TECHNOLOGIES LTD — Investor Presentation 2021

Jul 4, 2021

5 July 2021 | Australia

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ASX RELEASE

JMC ACQUISITION INVESTOR PRESENTATION

Real-time software company Vection Technologies Ltd (ASX:VR1) (Vection Technologies, Vection or the Company) is pleased to provide an investor presentation setting out the key benefits of the JMC acquisition appended to this announcement, as announced on 15 June 2021.

Vection’s management will host a conference call on Wednesday 7 July 2021 at 12.00pm AEST to discuss the acquisition of JMC.

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Participants must register in advance for the investor call using the following link to receive dial-in details: https://zoom.us/webinar/register/WN_hxVwBgxSQHqdqKesT4ntXA After registering, you will receive a confirmation email containing information about joining the webinar.

3D After registering, you will receive a confirmation email containing information about joining the webinar. VIRTUAL Investor Relations Contact Details REALITY Gianmarco Biagi - Managing Director (Europe Based) Email: gianmarco.biagi@vection.com.au Phone: +39 051 0142248 AUGMENTED REALITY Gianmarco Orgnoni - Director and COO (Australia Based) Email: gianmarco.orgnoni@vection.com.au Phone: +61 8 6380 2555 INDUSTRIAL IoT About Vection Technologies: Vection Technologies Ltd (ASX:VR1) is a multinational software company that focuses on real-time technologies for industrial companies’ digital transformation. CAD

Through a combination of our 3D, Virtual Reality, Augmented Reality, Industrial IoT 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

Europe Address: Via Isonzo 61 40033 Casalecchio di Reno (BO), Italy

North America Address: 785 Market Street, #600 San Francisco CA 94103 USA

Media Enquiries AUpress@vection.com.au EUpress@vection.com.au

1

Address: 642 Newcastle Street, Leederville WA 6007

Phone: +618 6380 2555

ACQUISITION OF JMC GROUP - INVESTOR OVERVIEW (ASX:VR1)

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5 July 2021

DISCLAIMER

This presentation has been prepared by Vection Technologies Limited (ACN 614 814 041) ( Vection Technologies or the Company ) and is for information purposes only. It does not constitute financial product or investment advice or a recommendation to acquire Vection Technologies shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Vection Technologies is not licensed to provide financial product advice in respect of Vection Technologies shares.

Vection, Vection Technologies, FrameS, Mindesk, 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.

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

Future performance - Forward looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. An investment in Vection Technologies shares is subject to investment and other known and unknown risks, some of which are beyond the control of Vection Technologies. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Vection Technologies employees, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this Presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.

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2 | ACQUISITION OF JMC GROUP

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VECTION TECHNOLOGIES

To realise the full potential of our 3D, Virtual Reality (VR), Augmented Reality (VR), Internet of Things (IoT) and Computer Aided Design (CAD) platforms, we’re committed to driving digital transformation (DX) across a range of industry sectors.

We focus on integrated XR solutions for companies embarking on their digital transformation journey.

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DIGITIZATION

DIGITALIZATION

DIGITAL TRANSFORMATION

The process of making information available and accessible in a digital format.

The act of making processes more automated through the use of digital.

The process of devising new business applications that integrate all the digitized data and digitalized application.

3 | ACQUISITION OF JMC GROUP

AN AMBITIOUS EMERGING TECHNOLOGY COMPANY

• Global expanding presence in 4 continents with over 100 people , and 200+ client portfolio across the group.

• Driving towards a vision of leading the 4th digital industrial revolution via a strong technology advantage in 3D, VR, AR, XR, Cloud Computing and their convergence with emerging technologies including ICT, IoT, AI and Cyber Security .

• Uniquely positioned to help customers digitally transform > their business with leading proprietary real-time technologies & know-how .

~ $10.6M

Aggregated unaudited FY20 Revenue[1]

~ $0.8M

Aggregated unaudited FY20 EBITDA[2]

• (1) Aggregated unaudited revenue of $10.6M in the 2020 financial year being the audited revenue for Vection in FY20 plus unaudited revenue for Blank Canvas and unaudited revenue for JMC in FY20 (December year end) based on the AUD/€ exchange rate of 0.62448 (being the average RBA exchange rate for the financial year to 30 April 2021) (refer to next slides).

• (2) Aggregated FY20 EBITDA for Vection (ASX 30 September 2020), Blank Canvas (unaudited) and JMC (unaudited).

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4 | ACQUISITION OF JMC GROUP

INTRODUCING JMC GROUP

100% Acquisition of JMC Group.

JMC is a European based technology company and DELL Platinum and OEM partner.

JMC designs, develops, and delivers high-level integrated business technology solutions for Industry 4.0. Strong solutions suite in Internet of Things ( IoT ), Artificial Intelligence ( AI ) and Information and Communication Technology ( ICT ).

Acquisition to expand Vection’s XR integration capabilities to drive further differentiation and growth.

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5 | ACQUISITION OF JMC GROUP

HIGHLY STRATEGIC ACQUISITION OF JMC GROUP INTEGRATED TECHNOLOGY, INCREASED MARKET PRESENCE AND SCALE

EXPANSION TECHNOLOGY PARTNERS CLIENTS Direct access to partnership Established and expansive Expanded technology and distribution agreements Strong and diverse client commercial footprint across integration capabilities with DELL and Toshiba Tec portfolio for increased Europe and the Middle East. across IoT, AI and ICT. for stronger integrated XR upselling opportunities. solutions. VERTICALS GROWTH STRATEGY Enhanced scale and Company fully funded to Strong vertical knowledge immediate strong growth accelerate its global across diverse industrial with average revenue of acquisition, distribution and sectors including Media & ~ 1 $9M , and ~$1M in average technology integration Communications. 2 EBITDA . strategy.

(1) Average unaudited revenue for the period FY18-FY20 (December year end) and based on the AUD/€ exchange rate of 0.62448 (being the average RBA exchange rate for the financial year to 30 April 2021). (2) Average adjusted EBITDA based on calculations provided by management of JMC and reviewed by management of Vection and unaudited (period FY18-FY20) and based on the AUD/ € exchange rate of 0.62448 (being the average RBA exchange rate for the financial year to 30 April 2021).

6 | ACQUISITION OF JMC GROUP

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STRONG EUROPEAN AND MIDDLE EAST EXPANSION

GLOBAL TECHNOLOGY AND SCALE FOR MARKET DOMINANCE

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Strong European and Middle East
> Strong European and Middle East expansion via JMC acquisition.
expansion with addition of 3 direct
offices.
> Strong distribution network across
the EMEA (Europe, Middle East and
Africa) region, via DELL and Toshiba
Tec.
> 100+ combined team across 3 key
geographies: EMEA, Americas and
Asia Pacific.
> Strengthened European management
and Northern European sales team.
> Company ready to deploy at scale and
to expand in the U.S.
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7 | ACQUISITION OF JMC GROUP

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COMPELLING TECHNOLOGY INTEGRATION FOR XR
360° ACROSS THE VALUE CHAIN
Virtual Reality DataCenter & ICT
Augmented Reality IoT
Extended Reality Artificial Intelligence
3D Modeling & Rendering Media Content Delivery
Kiosk
Company ICT Infrastructure
Design Marketing Sales After Sales Logistics IT
360° companies’ digital transformation via a robust XR foundation.
8 | ACQUISITION OF JMC GROUP
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COMPELLING TECHNOLOGY INTEGRATION FOR XR INCREASING INTEGRATION BENEFITS

●> Better and faster technology integration. ●> Better and faster process integration. Virtual Reality ●> Better user experience. Augmented Reality Extended Reality ●> Better data management & storage. 3D Modeling & Rendering ●> Performances improvement via hardware and DataCenter & ICT software integration. IoT Artificial Intelligence ●> Definition of new products features and Media Content Delivery interconnection opportunities. Kiosk ●> Easier, faster and more effective technology scalability in adjacent sectors.

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9 | ACQUISITION OF JMC GROUP

STRENGTHENED PARTNER NETWORK EXPANDING THE MARKET PROPOSITION

Software

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Hardware

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Service & Industry

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10 | ACQUISITION OF JMC GROUP

DIVERSE APPLICATIONS ACROSS A STRENGTHENED HIGH PROFILE CUSTOMER PORTFOLIO

AEC & Real Estate Fashion, Retail & Machinery Public Sector & Service Agencies Consumer Goods Education Automotive & Naval Defence & Military Media & Healthcare & Pharma Sports & Betting Communication Other Confidential Vection empowers innovation from a strong XR foundation.

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11 | ACQUISITION OF JMC GROUP

VECTION’S MARKET LEADING BRANDS FOR XR INTEGRATED SOLUTIONS

Leading 3D, VR, AR, XR product and solutions portfolio. CAD and BIM XR integration. AEC & Real Estate 3D integration. ICT, AI, IoT integration. Increasing the core ARR model. Vection is building a 360° product and solution suite for Industry 4.0 to innovate across geographies and industries.

Media & Communication integration.

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12 | ACQUISITION OF JMC GROUP

IMMEDIATE VALUE ACCRETION - FINANCIALLY COMPELLING

~5.9x Price to FY20 Unaudited Aggregated Revenue Ratio[(1)]

~$0.8M FY20 Unaudited Aggregated EBITDA[(3)]

~$10.6M FY20 Unaudited Aggregated Revenue[(2)]

~$32M Unaudited FY20 Pro-Forma Aggregated Total Assets[(4)]

• (1) Based on 1,033,671,808 shares on issue, being 969,618,516 shares on issues to date plus 64,053,292 shares to be issued under the terms and conditions of the JMC acquisition (refer to the Appendix) and Share Price of 6¢ at 2 July 2021, and aggregated unaudited revenue of $10.6M in the 2020 financial year being the audited revenue for Vection in FY20 plus unaudited revenue for Blank Canvas and unaudited revenue for JMC in FY20 (December year end) based on the AUD/€ exchange rate of 0.62448 (being the average RBA exchange rate for the financial year to 30 April 2021) (refer to next slides).

• (2) Aggregated unaudited revenue of $10.6M in the 2020 financial year being the audited revenue for Vection in FY20 plus unaudited revenue for Blank Canvas and unaudited revenue for JMC in FY20 (December year end) based on the AUD/€ exchange rate of 0.62448 (being the average RBA exchange rate for the financial year to 30 April 2021) (refer to next slides).

• (3) Aggregated FY20 EBITDA for Vection (ASX 30 September 2020), Blank Canvas (unaudited) and JMC (unaudited).

• (4) FY20 Pro-forma aggregated total assets for Vection (ASX 30 September 2020), Blank Canvas (unaudited) and JMC (unaudited).

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13 | ACQUISITION OF JMC GROUP

IMPROVES SCALE, REACH AND MARKET POSITIONING IN A POST-COVID ENVIRONMENT A HISTORY OF WELL EXECUTED M&A TECH TRANSACTIONS[1]

Strong history of growth in pre-covid $10.6M years. > Successful history of well-executed M&A transactions . > Strong revenue growth opportunity in FY22 with: - > JMC trending upwards towards $4.6M its historical average following a covid-19 induced revenue reduction in FY20. $3.1M - > Blank Canvas growing in the local and external markets via $1.3M Vection’s global network. - > Vection Health successfully $0.4M launched in FY21. - > Vection increasing its core XR offering in 3 key geographies FY18 FY19 FY20 FY20 FY20 (EMEA, APAC, AMER). Audited Audited Audited Unaudited Unaudited + Mindesk Inc + Blank Canvas + JMC Group

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14 | ACQUISITION OF JMC GROUP

IMPROVES SCALE, REACH AND MARKET POSITIONING IN A POST-COVID ENVIRONMENT FY20 BREAKDOWN

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Acquisition of Blank Canvas Acquisition of JMC Group
Proforma
Proforma
Audited Unaudited FY20 % Unaudited FY20 %
FY20 [(1)] FY20 [(2)] (After Blank FY20 [(3)]
(After JMC)
Canvas)
Revenue $3.1 M $1.5 M $4.6M 48% $6.0 M $10.6 M 130%
EBITDA
$0.2M $0.2M $0.4M 100% $0.4 M $0.8 M 100%
(ex-synergies)
Shares on issue 965.8 M 3.8 M 969.6 M 0.4% 64.1 M 1,033.7 M 6.6%
Market Cap [(4)] $57.9 M $0.2 M $58.2 M $3.8 M $62.0 M
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Strong revenue growth leading to increased core XR upselling opportunities:

Increased revenue. > Increased profitability. > Minimum dilution.

significant opportunity for FY22 growth for the combined group.

• (1) Annual report lodged with ASX on 30 September 2020.

• (2)

• (3) Unaudited financials for JMC based on the AUD/€ exchange rate of 0.62448 (being the average RBA exchange rate for the financial year to 30 April 2021), based on December financial year end. (4) Share price at 2 July 2021 (6.0 ¢).

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15 | ACQUISITION OF JMC GROUP

ADVANCING THE 2021 GROWTH ROADMAP

A successful history of well executed M&A transactions towards building a strong product suite and delivery service for Industry 4.0 and DX.

	2019			2020				2021			2021				2021				2021
						Healthcare &
Vection				Mindesk			Pharma			Blank Canvas				JMC Group				Target 2
3D, VR and AR			Real-time engine		for 3D	Vertical division with				3D rendering and				AI, IOT, ICT Infrastructure				XR and strong market
technologies.				CAD in XR.		strong market				strong market				and strong European				presence in the North
Europe based.			North America.			knowledge and team				knowledge and team				commercial market				American market
						for the Healthcare &				in the AEC and Real				presence.				segment.
						Pharma industries.				Estate industries.

A targeted approach to seek value accretive M&A opportunities in key geographies, with minimal dilutionary effect.

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16 | ACQUISITION OF JMC GROUP

TECHNOLOGY SECTOR MARKET COMPARABLES AN UNDERVALUED TECHNOLOGY COMPANY

PRICE TO SALES RATIO*

Company								Ticker Code								40x
Vection	Technologies Ltd VR1: ASX
Technology One Ltd PTC, Inc Dassault Systèmes SE Autodesk, Inc								TNE : ASX PTC: NASDAQ DSY: EPA ADSK: NASDAQ							Price to Sales Ratio	10x 20x 30x
Ansys, Inc								ANSS: NASDAQ
Altium Limited								ALU: ASX								0x
Unity Software Inc								U: NYSE										Vection Technologies Technology One Ltd						PTC Inc		Dasault Systems SE Ansys Inc Autodesk Inc				Unity Software Inc Altium Ltd
																*	Financial information sourced on 2 July 2021.

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17 | ACQUISITION OF JMC GROUP

CORPORATE OVERVIEW

CORPORATE SNAPSHOT

SHARE PRICE / VOLUME HISTORY

CORPORATE SNAPSHOT
	VR1	+ JMC3
Share Price1:	6.0 ¢	6.0 ¢
Shares on Issue2:	969.6 M	1,034 M
Market Capitalisation:	$58.2 M	$62.0 M
Revenue FY204:	$4.6 M	$10.6 M

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0.20
0.15
0.10 50M
0.05 25M
- -
1 Share Price at 2 July 2021.
2 Excludes any Deferred Consideration and/or Performance Rights/Shares.
Jul-20 Aug-20 Sept-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21
PRICE ($)
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OWNERSHIP BREAKDOWN[5]

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Other Board &
Shareholders Management
34% 40%
Other Institutional
Top 20 Investors
12% 14%
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2 Excludes any Deferred Consideration and/or Performance Rights/Shares.

3 Includes shares to be issued under the acquisition agreement with JMC and consequential metrics.

4 Aggregated unaudited revenue of $10.6M in the 2020 financial year being the audited revenue for Vection in FY20 plus unaudited revenue for Blank Canvas and unaudited revenue for JMC in FY20 (December year end) based on the AUD/€ exchange rate of 0.62448 (being the average RBA exchange rate for the financial year to 30 April 2021) (refer to next slides). 5 At 30 June 2021.

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18 | ACQUISITION OF JMC GROUP

Q&A AND INVESTOR CONFERENCE CALL DETAILS

Vection’s management will host a conference call on Wednesday 7 July 2021 at 12.00pm AEST to discuss the acquisition of JMC. Participants must register in advance for the investor call using the following link to receive dial-in details: https://zoom.us/webinar/register/WN_hxVwBgxSQHqdqKesT4nt XA 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

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19 | ACQUISITION OF JMC GROUP

APPENDIX - TRANSACTION SUMMARY

	Conditions Precedent:	Completion of the acquisition is subject to and conditional upon satisfaction of a number of conditions on or before 30 September 2021 (or such other date as agreed between the parties in writing) including, but not limited to: 1. Completion of due diligence at Vection’s sole satisfaction; 2. The parties obtaining all relevant approvals from regulators and third parties; 3. The parties entering a full form sale and purchase agreement to more fully document the terms of the acquisition; and 4. Mr Jacopo Merli entering into an employment agreement with JMC and the Company on terms acceptable to the parties. It Is agreed that subject to compliance with the ASX Listing Rules, that Mr Jacopo Merli's remuneration will include 3 performance rights (to be issued under the Company's Employee Incentive Scheme) with each performance right to vest in €100,000 worth of shares (with a foor price of A$0.10) on the achievement of relevant milestones over the frst 3 years of the employment agreement. The relevant milestones will be agreed as part of the employment agreement.
	Consideration for the Acquisition:	At completion of the acquisition, Vection will issue to the shareholder of JMC, Mr Jacopo Merli, €4,000,000 worth of fully paid ordinary shares determined at an issue price of the higher of A$0.10 and the volume weighted average price of the shares for the 5 trading days prior to settlement. The Company confrms that the exchange rate to be used will be the average RBA AUD:EUR exchange rate for the 2021 fnancial year. Based on exchange rate of 0.62448 (being the average RBA exchange rate for the fnancial year to 30 April 2021), the maximum number of shares to be issued will be 64,053,292. The Company will issue these shares under its Listing Rule 7.1 capacity and accordingly, no shareholder approval will be required for the transaction. The consideration shares issued will be subject to voluntary escrow for 18 months from settlement. The Company expects for the transaction to settle in July 2021.

20 | ACQUISITION OF JMC GROUP

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 2555

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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