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VECTION TECHNOLOGIES LTD Investor Presentation 2021

Feb 28, 2021

66017_rns_2021-02-28_2f62b65a-bbc2-4eaa-b513-62803d53b345.pdf

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INVESTOR PRESENTATION HALF YEAR 2021 (ASX:VR1) February 28, 2021

Copyright © 2020 Vection Technologies

INVESTOR PRESENTATION HALF YEAR 2021 DISCLAIMER

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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, 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.

Copyright © 2020 Vection Technologies

2

2
Half Year Highlights, Achievements & Objectives
1
Building Blocks Highlights
3
Leading Strategy Overview
Corporate Overview
4
Financial Summary
5
Company Overview & Market Trends
6

Copyright © 2020 Vection Technologies

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INVESTOR PRESENTATION HALF YEAR 2021
HALF YEAR HIGHLIGHTS, ACHIEVEMENTS AND OBJECTIVES
HALF YEAR FINANCIAL HIGHLIGHTS
GROWING MOMENTUM FOR 2021
01 $ 6.0M ● Vection experienced a challenging first half of the
fiscal year, due to perduring COVID-19 conditions
in the E.U. and North America , and the
implementation of the Company’s long-term
02 strategy , aligned with internal projections
● An additional ~$1.3M in contracts value have
$ 4.0M
already been secured, generating strong early
-47% [1] growth signs for the second half of the 2021 fiscal
03 year compared to ~$0.74M in revenue for the first
At Feb 21
half
+85% [1]
● Secured contracts include licence sales,
$ 2.0M enterprise software integrated projects and
04 +85% [1] long-term commitments
Second half of fiscal year already generating strong early
+36% [1] signs of growth, with contracts value exceeding first half
revenue.
05
$ -M
FY18 FY19 FY20 FY21 1 Incremental growth 2H / 1H. FY21 is based on secured contracts in 2H vs Revenue for
1H.
Secured Contracts Value
First Half Revenue Second Half Revenue
4 at Feb. 21 Copyright © 2020 Vection Technologies
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INVESTOR PRESENTATION HALF YEAR 2021

HALF YEAR HIGHLIGHTS, ACHIEVEMENTS AND OBJECTIVES ENTERING THE LEADING STRATEGY PHASE BUILD | ACQUIRE | PARTNER

  • 2021 marks the official commencement of the Leading Strategy phase with Verticalisation as its first step

  • 01 REBUILDING TRANSFORMING LEADING STRATEGY 2021 marks the official commencement of the Leading Strategy phase with Verticalisation as its first step

  • ● Renewed Board of Directors ● Acquisition of Vection ● Implementation of strategy ● Definition of long-term ● Focus on 3D, VR/AR towards internal and external ● Verticalisation is deemed to be the key driver for

  • 02 strategy enterprise software value accretive initiatives for industry segment growth ● Divestment of non-core assets ●● Name and ASX code changeTransformational strategy long term recurring revenue growth across key industries ● The Verticalisation approach seeks to significantly towards a recurring revenue aligned with market trends expand Vection’s footprint in companies’ business model application landscapes by segmenting industrial

  • ● Acquisition of Mindesk Inc

  • 03 ● Strong client interest and markets revenue growth ● Vection wants to develop highly verticalised extensions to its core technology stack aimed at anchoring its solutions in clients’ core processes

  • 04 ● The Company will follow a Build / Acquire / Partner strategy where, in each vertical industry, it will

  • $3.1M analyse the benefits of internally building functionality, working with a partner or acquiring

  • $1.4M

  • 05 companies $0.5M

  • REVENUE 2017-2018 2019-2020 2021-2023

    • The Verticalisation approach seeks to
  • The Company will follow a Build / Acquire / Partner strategy where, in each vertical industry, it will analyse the benefits of internally building functionality, working with a partner or acquiring companies

Copyright © 2020 Vection Technologies

5

INVESTOR PRESENTATION HALF YEAR 2021
HALF YEAR HIGHLIGHTS, ACHIEVEMENTS AND OBJECTIVES
SUCCESSFUL CONCLUSION OF SIX-MONTHS OBJECTIVES
STRONG 2021 FOUNDATION
01 Q1 FY21 Q2 FY21
02 HEALTHCARE 1st Public Hospital Trial Lodgement of Provisional Patent National Healthcare Guidelines
COLLABORATION
(5G)
Mindesk Multi-User Release Olivetti Tim Group MoU Cisco Italy MoU for XR collaboration
03 EDUCATION, AUTOMOTIVE &
DEFENCE
Trenitalia MoU Mindesk adopted by Global Top10
military shipbuilder
04 PARTNERSHIPS & PROGRAMS Access to DELL SnP Global
Program via JMC Group
Facebook ISV Program Autodesk/Microsoft Program
DISTRIBUTION NETWORK Secured Solidworks Top 10 Global
Partner
50+ Global Sales Partners
05 TECHNOLOGY DEVELOPMENT Mindesk 2020.3 Release Mindesk 2020.4 Release Launch of DELL Powered VR
Solutions (VRONE)

6

Copyright © 2020 Vection Technologies

2
Half Year Highlights, Achievements & Objectives
1
Building Blocks Highlights
3
Leading Strategy Overview
Corporate Overview
4
Financial Summary
5
Company Overview & Market Trends
6

Copyright © 2020 Vection Technologies

02

03

04

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INVESTOR PRESENTATION HALF YEAR 2021

LEADING STRATEGY OVERVIEW INTRODUCTION TO THE LEADING STRATEGY

01

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05
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VERTICALISE

Vection’s strategy is to build industry-specific solutions based on its existing technology stack, considering that different industry processes have some aspects in common, but also have specific requirements.

BUILD, ACQUIRE, PARTNER

The Company will follow a Build / Acquire / Partner strategy where, in each vertical industry, it will analyse the benefits of internally building functionality, working with a partner or acquiring companies, leveraging a mix of people with technology and industry experience.

KEY DRIVER FOR GROWTH

The Verticalisation approach is expected to significantly expand Vection’s footprint in companies’ application landscapes, segmenting industrial markets while capturing new business opportunities, protecting market positions and averting competitive threats.

Copyright © 2020 Vection Technologies

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05

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INVESTOR PRESENTATION HALF YEAR 2021

LEADING STRATEGY OVERVIEW VERTICALISATION AS A KEY GROWTH DRIVER

01

02

03

04

Vection wants to develop highly verticalised extensions to its core technology stack aimed at anchoring its solutions in clients’ core processes.

In each applicable jurisdiction (Australasia, Europe and North America), the Company is assessing key market drivers and demands for verticalised Vection solutions to enable strong future growth , following the Build / Acquire / Partner strategy .

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Fashion & Retail AEC & Real Estate Healthcare & Pharma

Vection’s Core Technology

Communications & Media

Copyright © 2020 Vection Technologies

9

02

03

04

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INVESTOR PRESENTATION HALF YEAR 2021

LEADING STRATEGY OVERVIEW

VERTICAL OBJECTIVES

01

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05
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KEY VERTICAL
HEALTHCARE &
PHARMA
KEY VERTICAL
HEALTHCARE &
PHARMA
KEY VERTICAL
HEALTHCARE &
PHARMA
KEY VERTICAL
HEALTHCARE &
PHARMA
KEY VERTICAL
HEALTHCARE &
PHARMA
KEY VERTICAL
HEALTHCARE &
PHARMA
KEY VERTICAL
HEALTHCARE &
PHARMA
KEY VERTICAL
AEC &
REAL ESTATE
MINDESK
KEY VERTICAL
AEC &
REAL ESTATE
MINDESK
KEY VERTICAL
AEC &
REAL ESTATE
MINDESK
KEY VERTICAL
AEC &
REAL ESTATE
MINDESK
KEY VERTICAL
AEC &
REAL ESTATE
MINDESK
KEY VERTICAL
AEC &
REAL ESTATE
MINDESK
KEY VERTICAL
AEC &
REAL ESTATE
MINDESK
KEY VERTICAL
COMMUNICATIONS
& MEDIA
KEY VERTICAL
FASHION &
RETAIL
FRAMES
TRAINER CREATOR
KEY VERTICAL
COMMUNICATIONS
& MEDIA
KEY VERTICAL
FASHION &
RETAIL
FRAMES
TRAINER CREATOR
KEY VERTICAL
COMMUNICATIONS
& MEDIA
KEY VERTICAL
FASHION &
RETAIL
FRAMES
TRAINER CREATOR
KEY VERTICAL
COMMUNICATIONS
& MEDIA
KEY VERTICAL
FASHION &
RETAIL
FRAMES
TRAINER CREATOR
KEY VERTICAL
COMMUNICATIONS
& MEDIA
KEY VERTICAL
FASHION &
RETAIL
FRAMES
TRAINER CREATOR
KEY VERTICALS
OTHER
KEY VERTICALS
OTHER
●Strong growth ●Strong growth ●Strong growth ●Strong growth ●Identifcation of
segment segment segment segment technologies key for
●Internally build ●External ●Internally build ●Internally build vertically integrated
functionality opportunities to functionality functionality solutions Including:
●Addition of expertise expand ●Addition of expertise ●Addition of expertise cyber security, IoT,
with launch of new
division
competencies for
value added industry
with launch of new
division or via
with launch of new
division
CAD, BIM and more
●Identifcation of
verticalisation external consulting arm for
opportunities value added creation

10

Copyright © 2020 Vection Technologies

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INVESTOR PRESENTATION HALF YEAR 2021

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LEADING STRATEGY OVERVIEW
GEOGRAPHICAL FRAMEWORK TOWARDS THE LEADING STRATEGY
VECTION
01 TECHNOLOGIES
VECTION VECTION VECTION
02 VECTION GLOBAL CENTERS:
AUSTRALASIA EUROPE NORTH AMERICA
Australia Italy U.S.A.
TARGET India Germany Canada
03 & EXISTING COUNTRIES: France
U.K.
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04

The Company’s management is assessing a restructuring of its international divisions to establish the optimal framework to carry-out the Leading Strategy and Verticalisation phase.

market presence via the establishment of three global centres in each relevant jurisdiction (Australasia, Europe and North America) to grow the core technology stack within verticals in each geography and target industry, enabling strong synergies, and cross- and up-selling opportunities.

Copyright © 2020 Vection Technologies

11

2
Half Year Highlights, Achievements & Objectives
1
Building Blocks Highlights
3
Leading Strategy Overview
Corporate Overview
4
Financial Summary
5
Company Overview & Market Trends
6

Copyright © 2020 Vection Technologies

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INVESTOR PRESENTATION HALF YEAR 2021

BUILDING BLOCKS HIGHLIGHTS BUILDING BLOCKS OVERVIEW

01

02

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03

TECHNOLOGY

04

  • Continued strong focus on proprietary real-time technologies

05

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

06

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PARTNERSHIPS

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

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

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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° solution suite for Industry 4.0

Copyright © 2020 Vection Technologies

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INVESTOR PRESENTATION HALF YEAR 2021

BUILDING BLOCKS HIGHLIGHTS TECHNOLOGY , PARTNERSHIPS & GROWTH

01 Building a 360° Suite for Industry 4.0: 02 DESIGN & ENGINEERING 03 MAINTENANCE MANUFACTURING 04 05 MARKETING & SALES TRAINING 06

Selection of Vection’s 360° Solution Suite Customers:

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Copyright © 2020 Vection Technologies

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INVESTOR PRESENTATION HALF YEAR 2021

BUILDING BLOCKS HIGHLIGHTS

TECHNOLOGY, PARTNERSHIPS & GROWTH

01
02
03
04
06
05
CAD/CAM/CAE/PLM
Software Segment:
VOLVO CARS ITALY
**JMC Group
DELL Update- during the frst half of the fscal year,
Vection and JMC Group have:

Advanced the internal communication material aimed at
securing strong use cases and marketing from DELL for the
~~
VRONE appliance for the digital twin~~

Signifcantly progressed their joint efforts in the
Oil & Gas,
Utilities and Gambling sectorswhile expanding their joint
footprint globally via a potential transaction with the leading
Japaneseglobal IT innovator**
OEM Segment:
Software Segment: **JMC Group DELL Update- during the frst half of the fscal year,
Vection and JMC Group have:

Advanced the internal communication material aimed at
securing strong use cases and marketing from DELL for the
~~
VRONE appliance for the digital twin~~

Signifcantly progressed their joint efforts in the
Oil & Gas,
Utilities and Gambling sectorswhile expanding their joint
footprint globally via a potential transaction with the leading
Japaneseglobal IT innovator**
Network Segment:
Industrial Segment:

Copyright © 2020 Vection Technologies

15

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INVESTOR PRESENTATION HALF YEAR 2021

BUILDING BLOCKS HIGHLIGHTS

TECHNOLOGY, PARTNERSHIPS & GROWTH

PARTNER DISTRIBUTION NETWORK

During the frst half of the fscal year, Vection focussed on:

Strong joint commercial initiatives with its key partners aimed at
securing long-term commitments for digitalisation/virtualisation
projects, with longer lead time andhigher value

Broader marketing activities to achieve astronger brand impactin
each target market and geography

Identifcation of key market verticalsaligned with the stated
Verticalisation phase of its Leading Strategy

Development of leads towards the stated expectedgrowth for the
second half of the fscal year, including Olivetti TIM Group, Trenitalia,
DELL via JMC Group, Mutti, HP, Cisco, CGM, Public healthcare and
more
01
02
03
04
06
05
EUROPE, MIDDLE EAST
AND AFRICA:
39+
PARTNERS
ASIA-PACIFIC: 6+
PARTNERS
AMERICAS: 5+ PARTNERS
TOTAL 30 JUNE 2020: 50+
PARTNERS*
  • Vection Technologies is persistently adding new partners to its global distribution network.

Copyright © 2020 Vection Technologies

16

01

02

03

05

06

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INVESTOR PRESENTATION HALF YEAR 2021

BUILDING BLOCKS HIGHLIGHTS

ORGANISATION & PEOPLE

advanced its recruitment efforts , considered pivotal for the implementation of the Leading Strategy phase .

pool of internationally-based senior talent to support the internal development of industry-specific functionality for its core technology stack .

Following a staged induction process, these professionals will join the Company in the February-April 2021 period , with a number of these relocating to Vection’s R&D centres from their respective countries of residence, respectful of the jurisdictional COVID-19 measures in place.

04

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5

Global Offices

50+

Vection Professionals

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Copyright © 2020 Vection Technologies

17

2
Half Year Highlights, Achievements & Objectives
1
Building Blocks Highlights
3
Leading Strategy Overview
Corporate Overview
4
Financial Summary
5
Company Overview & Market Trends
6

Copyright © 2020 Vection Technologies

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INVESTOR PRESENTATION HALF YEAR 2021

CORPORATE OVERVIEW LEADERSHIP

01

02

03

04

05

06

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Gianmarco Biagi

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

Executive 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.

Lorenzo Biagi

Executive 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.

Gabriele Sorrento

Non-Executive Director & Head of Global Partnerships, Vection

Technologies - CEO Mindesk Suite

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.

Bert Mondello LLB

Non-Executive 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.

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.

Copyright © 2020 Vection Technologies

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INVESTOR PRESENTATION HALF YEAR 2021
CORPORATE OVERVIEW
CORPORATE SNAPSHOT
01 CORPORATE SNAPSHOT
● Share Price [1] : 11.0¢
● Shares on Issue [2,3] : 965.7M
02
● Market Capitalisation : $106.2M
● Cash [4] : $7.1M
● Secured grants/financing: $1.6M
03
OWNERSHIP BREAKDOWN [4]
04 Other Board &
Shareholders Management
33% 41%
05
Other Institutional
06 Top 20 Investors
11% 15%
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SHARE PRICE / VOLUME HISTORY

3 165.5M escrowed Shares are included. 4 At 31 December 2020

1 Share Price at 26 February 2021 2 Excludes any Deferred Consideration and/or Performance Rights/Shares.

Copyright © 2020 Vection Technologies

20

21 Copyright © 2020 Vection Technologies
2
Half Year Highlights, Achievements & Objectives
1
Building Blocks Highlights
3
Leading Strategy Overview
Corporate Overview
4
Financial Summary
5
Company Overview & Market Trends
6
Copyright © 2020 Vection Technologies
2
Half Year Highlights, Achievements & Objectives
1
Building Blocks Highlights
3
Leading Strategy Overview
Corporate Overview
4
Financial Summary
5
Company Overview & Market Trends
6

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INVESTOR PRESENTATION HALF YEAR 2021

FINANCIAL SUMMARY

BALANCE SHEET AT 30 DECEMBER 2020

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01 $ 8M
$7.1M
02 $ 6M
03 $ 4M
04 $ 2M $1.6M
$0.8M
$0.3M
05 $ -
30 June 31 Dec 30 June 31 Dec
2019 2019 2020 2020
06
Cash and cash equivalents
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At 31 Dec 2020 At 30 June 2020
$ $
Current Assets
Cash and cash equivalents 7,129,469 1,584,715
Trade and other receivables 1,870,719 2,149,552
Inventory 18,760 -
Total Current Assets 9,018,948 3,734,267
Non-Current Assets
Property, plant & equipment 66,574 76,859
Intangible assets 11,971,250 12,364,455
Financial assets 57,832 52,130
Total Non-Current Assets 12,095,656 12,493,444
Total Assets 21,114,604 16,227,711
Current Liabilities
Trade and other payables 2,048,040 2,272,404
Other provisions 2,803,485 3,321,031
Borrowings 481,654 427,606
Current tax liabilities 4,598 19,878
Lease liabilities 127,886 94,322
Total Current Liabilities 5,465,663 6,135,241
Non-Current Liabilities
Other provisions 1,404,198 2,518,969
Deferred tax liabilities 597,960 604,233
Lease liabilities 424,712 487,713
Borrowings
Total Non-Current Liabilities
388,911
2,815,781
422,190
4,033,105
Total Liabilities 8,281,444 10,168,346
Net Assets 12,833,160 6,059,365

22

06

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  • An additional ~$1.3M (vs First Half revenue of $0.7M) in contracts value have already been secured, generating strong early growth signs for the second half of the 2021 fiscal year .

ATION HALF YEAR 2021
SUMMARY
ALF RESULTS METRICS
ATION HALF YEAR 2021
SUMMARY
ALF RESULTS METRICS
ATION HALF YEAR 2021
SUMMARY
ALF RESULTS METRICS
ATION HALF YEAR 2021
SUMMARY
ALF RESULTS METRICS

Anadditional ~$1.3M (vs First Half revenue of $0.7M)in contracts value have
already been secured, generatingstrong early growth signs for the second half
of the 2021 fscal year.

Higher operating result is due to the creation of astronger infrastructure to
support the Company’s expected 2021 growth and Verticalisation strategy.

Anadditional ~$1.3M (vs First Half revenue of $0.7M)in contracts value have
already been secured, generatingstrong early growth signs for the second half
of the 2021 fscal year.

Higher operating result is due to the creation of astronger infrastructure to
support the Company’s expected 2021 growth and Verticalisation strategy.

Anadditional ~$1.3M (vs First Half revenue of $0.7M)in contracts value have
already been secured, generatingstrong early growth signs for the second half
of the 2021 fscal year.

Higher operating result is due to the creation of astronger infrastructure to
support the Company’s expected 2021 growth and Verticalisation strategy.

Anadditional ~$1.3M (vs First Half revenue of $0.7M)in contracts value have
already been secured, generatingstrong early growth signs for the second half
of the 2021 fscal year.

Higher operating result is due to the creation of astronger infrastructure to
support the Company’s expected 2021 growth and Verticalisation strategy.
ON HALF YEAR 2021
UMMARY
of the 2021 fscal year.

Higher operating result is due to the creation of a
support the Company’s expected 2021 growth and V
LF RESULTS METRICS
1H FY21 1H FY20 1H FY19 1H FY18
$ $
+/-
$
2,053,258
478,597
201,160
Revenue 737,240
Expenses (excluding add-backs) 1,804,915 2,058,662
749,107
3,977,290
Underlying EBITDA1
(1,067,675)
(5,404)
(270,510)
(3,776,130)
Interest and fnancing related
costs
49,588
Depreciation and amortisation
309,283
One-off transaction Costs
-
Non-cash accounting charges
41,297
Income tax / Exchange diff.
1,745
39,467
15,479
46,226
219,248
51,869
67,332
19,748
-
-
3,152
36,900
-
(6,305)
-
-
Proft (Loss) after income Tax
(1,469,588)
(280,714)
(374,758)
(3,889,688)

INVESTOR PRESENTATION HALF YEAR 2021 FINANCIAL SUMMARY FIRST HALF RESULTS METRICS

  • Higher operating result is due to the creation of a stronger infrastructure to support the Company’s expected 2021 growth and Verticalisation strategy.

01

02

03

04

05

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 26 August 2020 for additional information.

Copyright © 2020 Vection Technologies

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2
Half Year Highlights, Achievements & Objectives
1
Building Blocks Highlights
3
Leading Strategy Overview
Corporate Overview
4
Financial Summary
5
Company Overview & Market Trends
6

Copyright © 2020 Vection Technologies

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INVESTOR PRESENTATION HALF YEAR 2021 COMPANY OVERVIEW & MARKET TRENDS VECTION’S 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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INVESTOR PRESENTATION HALF YEAR 2021

COMPANY OVERVIEW & MARKET TRENDS 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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INVESTOR PRESENTATION HALF YEAR 2021

COMPANY OVERVIEW & MARKET TRENDS GLOBAL PRESENCE

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 50+ partners worldwide.

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INVESTOR PRESENTATION HALF YEAR 2021

COMPANY OVERVIEW & MARKET TRENDS SOLUTIONS SUITE

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01
02

03
MINDESK FRAMES TRAINER CREATOR CONFIGURATORS CUSTOM SOLUTIONS
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04
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  • ONLINE SALES ● EFFECTIVE TRAINING

     - CLIENT INVOLVEMENT ● SOFTWARE DEVELOPMENT
    
     - ● BETTER MARKETING ● VR/AR EXPERIENCES ● INCREASED SALES ● VIRTUAL BOOTH ● ERP CONNECTED ● 3D MODELS
    
  • REAL-TIME RENDERING

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

  • 05 ● COLLABORATIVE DESIGN ● TRAINING ● POST-SALE EXPERIENCE ● INCREASED SALES

    • PRODUCT DEMOS
  • VR 3D MODELLING

  • REMOTE MEETINGS

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01

02

03

04

05

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INVESTOR PRESENTATION HALF YEAR 2021

COMPANY OVERVIEW & MARKET TRENDS DIVERSITY OF APPLICATION

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NAVAL

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ARCHITECTURE, ENGINEERING & CONSTRUCTION

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FASHION & FURNITURE

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MACHINERY

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EDUCATION

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AUTOMOTIVE

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HEALTHCARE

06

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INVESTOR PRESENTATION HALF YEAR 2021

COMPANY OVERVIEW & MARKET TRENDS DRIVING FORCES & MARKET OPPORTUNITY NAVIGATING A POST-COVID19 ENVIRONMENT

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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 fun new ways, and AR brings new flexibility
to on-the-job training.
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INVESTOR PRESENTATION HALF YEAR 2021

COMPANY OVERVIEW & MARKET TRENDS DRIVING FORCES & MARKET OPPORTUNITY DIGITALISATION & INDUSTRY 4.0

01

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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INVESTOR PRESENTATION HALF YEAR 2021

COMPANY OVERVIEW & MARKET TRENDS DRIVING FORCES & MARKET OPPORTUNITY VR/AR IS ENTERING ITS WIDE ADOPTION PHASE

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AUTONOMOUS
01 VEHICLES
2016 AR
2012
02 VR
2012
03
Smartphone
AUTONOMOUS 2008
VEHICLES
04 2012 SMARTPHONE
2004
05
VR 2016
AR 2016
06
Innovation Peak of
Disillusionment Enlightenment
Trigger Expectations
Source: Statista, Ecorys
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Gartner Hype Cycle for Emerging Technology. Focus on Virtual Reality and Augmented Reality stages

  • VR/AR at the same stage of Smartphones in 2008

  • Approaching knowledge maturity in VR/AR adoption and uses

  • Technology ready to become a «standard» in B2B and B2C market in the following 10 years

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INVESTOR PRESENTATION HALF YEAR 2021
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COMPANY OVERVIEW & MARKET TRENDS
DRIVING FORCES & MARKET OPPORTUNITY
VR/AR EXPECTED TO LEAD FUTURE GDP GROWTH WORLDWIDE
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01
USD 1,500 B
USD 1,500 B
02
USD 33 B USD 13.4 B
71% 29%
03 USD 1,000 B
04 USD 1,092 B USD 451 B
73% 27%
USD 500 B USD 476.4 B
05 AR will continue to provide the bigger
boost compared to VR
06
USD -
2019 2025 2030
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33 Source: Statista, Ecorys, PwCs

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INVESTOR PRESENTATION HALF YEAR 2021

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COMPANY OVERVIEW & MARKET TRENDS
DRIVING FORCES & MARKET OPPORTUNITY
VR/AR FUTURE GROWTH DRIVEN BY INDUSTRIAL SEGMENTS
01 Future growth driven by Investments made by industrial players Investment in VR/AR by use case (2023)
Market spending in VR/AR technologies by industry (USD/B)
02 125 USD 120 B VR Video / feature
63%
viewing
03 100
USD 84 B Retail Showcasing 9%
75
04
50 USD 47 B Maintenance 14%
05
25 USD 20 B Training 14%
06 -
2020 2021 2022 2023
CAGR: 82%
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Source: Statista, Ecorys

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INVESTOR PRESENTATION HALF YEAR 2021

COMPANY OVERVIEW & MARKET TRENDS

FOCUS ON CONTINUED GROWTH

  • 01Ability to Execute: Vection Technologies has continuously delivered on its growth strategy towards the creation of a 360° product suite for Industry 4.0.

02

  • 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.

03

  • Technological Partners: opportunities for Vection Technologies.

04

  • 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.

  • Technology Advantage : Vection Technologies’ proprietary 3D, Virtual Reality, Augmented Reality, Industrial IoT and CAD real-time solutions for Industry 4.0 help companies and organisations to innovate, collaborate and create value.

05

  • 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.

06

  • 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.

Copyright © 2020 Vection Technologies

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Corporate Headquarters 642 Newcastle Street, Leederville WA 6007

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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

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

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