Vection Company Presentation - June 2025

• Vection Technologies Ltd (ASX: VR1) is a global company with over 100 large clients and 200 employees, specializing in solving real-world business problems using proprietary Spatial Computing (VR, AR, XR, MR) and Artificial Intelligence (AI) technologies, coupled with hardware.
• The company's proprietary software platform, INTEGRATEDXRTM, offers a single point of access for integrating multiple Vection applications, enabling scalable solutions for smarter decision-making, seamless collaboration, and immersive experiences.
• Vection operates in an enormous addressable market, forecasted to reach approximately US$1.8 trillion by 2030 with a compound annual growth rate (CAGR) of about 30%.
• For 1H25, the company reported unaudited pro forma revenues of $17.4 million, representing a 60% increase year-on-year.
• Recurring revenue grew by 204% year-on-year, now accounting for 34% of total revenue.
• Vection achieved positive adjusted EBITDA in 1H25, a significant improvement from a negative EBITDA of -$4.2 million in the previous fiscal year.
• The company maintains a strong sales pipeline of approximately $35 million under negotiation, with a historical win rate exceeding 50%.
• Vection has a successful history of inorganic growth through strategic acquisitions and is currently focused on earnings-additive acquisitions.
• Management is also executing internal cost reduction, efficiency, and debt reduction initiatives.
• The company's market capitalization is $38 million based on fully paid ordinary shares, and $47.5 million fully diluted as of June 1, 2025.
• As of March 31, 2025, Vection had $7.0 million in cash available, including unused facilities and excluding a recent $3.6 million capital raise.
• The company's gross profit margin for FY25 is tracking between 35% and 40%.

Score: 9

Explanation: The document conveys a highly positive sentiment, highlighting strong financial growth (60% revenue increase, 204% recurring revenue growth), achievement of positive EBITDA, a robust sales pipeline, successful strategic acquisitions, and significant industry recognition from Gartner. The focus on future growth, cost reduction, and debt reduction further reinforces a confident outlook.

• Vection Technologies achieved significant revenue growth of 60% year-on-year in 1H25, reaching $17.4 million.
• Recurring revenue saw a substantial increase of 204% year-on-year, now comprising 34% of total revenue.
• The company reported positive adjusted EBITDA in 1H25, a notable turnaround from a negative EBITDA in the prior fiscal year.
• A strong sales pipeline of approximately $35 million under negotiation indicates potential for continued revenue growth.
• Vection has a successful history of earnings-additive acquisitions, enhancing its capabilities and market reach.
• Management is actively implementing internal cost reduction and efficiency initiatives, targeting a $2-$4 million reduction over two years.
• A debt reduction program aims to reduce bank lending by $3-$4 million in two years through free cash generation.
• The company's gross profit margin for FY25 is tracking positively at 35-40%.
• Vection's Algho product was named a 'Cool Vendor 2025' by Gartner, recognizing its innovation and market transformation potential.
• The company holds 29 global patents and maintains multiple ISO certifications (9001, 45001, 14001, 27001), demonstrating strong operational and quality standards.
• The Q3 2025 operating cash flow was positive, indicating healthy cash generation from operations.

• The document does not explicitly list any negative financial or operational outcomes; it maintains a highly positive tone.
• While unsecured debt has a low interest rate and long term, it still represents a financial liability for the company.
• The market capitalization of $38 million (fully paid ordinary shares) is relatively small compared to the projected total addressable market of US$1.8 trillion, indicating a vast but largely untapped opportunity that requires significant scaling.

• The company operates in a rapidly evolving technological landscape, facing risks associated with keeping pace with advancements in AI and Spatial Computing.
• While the sales pipeline is strong, there is always a risk that not all opportunities will convert into revenue, impacting future financial performance.
• The success of acquisitions depends on effective integration and realization of synergies, posing integration risks.
• Reliance on key personnel and their expertise in specialized technologies like AI and Spatial Computing could pose a risk if talent is not retained.
• Market competition in the digital transformation and immersive technology space is intense, which could impact market share and pricing power.
• The forward-looking statements in the document are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations.

Vection Technologies envisions becoming a leader in combining Artificial Intelligence and Spatial Computing, targeting a total addressable market projected to reach approximately US$1.8 trillion by 2030. The company anticipates continued growth in the second half of the fiscal year, supported by a strong sales pipeline of approximately $35 million. Management is committed to ongoing internal cost reduction and efficiency initiatives, alongside a debt reduction program, while actively seeking earnings-additive acquisitions to further expand its market presence and capabilities.

• Management has been simultaneously executing an internal cost out, efficiency, and debt reduction initiatives.
• The vision is to be a leader in combining Artificial Intelligence and Spatial Computing.
• Management is currently looking only for earnings-additive acquisitions.

Vection Technologies operates within the rapidly expanding digital transformation market, specifically leveraging Spatial Computing (VR, AR, XR, MR) and Artificial Intelligence. This sector is experiencing significant growth, with the total addressable market forecasted to reach approximately US$1.8 trillion by 2030, driven by increasing enterprise adoption of immersive technologies and AI for enhanced decision-making, collaboration, and operational efficiency. Vection's focus on proprietary software platforms and a history of strategic acquisitions positions it to capitalize on this trend, addressing real-world business challenges across diverse industries.

• The document highlights that Vection's Algho product has been named a 'Cool Vendor 2025' by Gartner in Digital Humans for Websites, which is a significant external validation of its innovation and disruptive potential within the industry.
• This recognition distinguishes the company from its competitors and positions it as a leader in its sector and an innovator in the technological landscape.
• However, the document does not provide specific comparative financial metrics or project outcomes against named comparable companies or global benchmarks.

• Shareholders are positively impacted by the strong revenue growth, increasing recurring revenue, and achievement of positive EBITDA, which could lead to increased shareholder value.
• Employees may benefit from the company's growth and strategic expansion, potentially leading to new opportunities and job security.
• Customers are provided with advanced Spatial Computing and AI solutions, enhancing their operations and problem-solving capabilities.
• Suppliers may experience continued or increased business as Vection expands its operations and integrates new technologies.
• Creditors are positively impacted by the company's debt reduction initiatives and improved financial performance, which strengthens Vection's ability to meet its obligations.

• Management will continue executing internal cost reduction and efficiency initiatives, targeting a $2-$4 million reduction over two years.
• The company plans to pursue a debt reduction program, aiming to reduce bank lending by $3-$4 million in two years from free cash generation.
• Vection will focus on converting its strong sales pipeline of approximately $35 million into revenue.
• The company intends to continue seeking earnings-additive acquisitions to further expand its capabilities and market reach.

• 2016: ServTech Global Holdings was founded, focusing on outsourced IT solutions.
• 2018: Revenue was $0.5 million.
• 2019: Acquisition of Officine 8K, marking a strategic shift into AR/VR software.
• November 2019: Rebranding to Vection Technologies (ASX: VR1) to align with the new focus on AR/VR solutions.
• 2020: Acquisition of Mindesk, further enhancing capabilities.
• 2021: Acquisition of JMC Group and Blank Canvas Studios, expanding AI, digital twin, and 3D architectural capabilities.
• 2024: Revenue reached $34 million.
• 2024: Acquisition of MYR, enhancing the digital prototyping platform for the fashion industry.
• 2024: Acquisition of The Digital Box.
• 29 April: Recent $3.55 million capital raise to accelerate AI sales.
• 31 March 2025: Cash available was $7.0 million (including unused facilities; excluding $3.6 million raise).
• Q3 2025: Operating cash flow was positive.
• 1H25: Reported revenues of $17.4 million and positive adjusted EBITDA.
• June 1, 2025: Share price was $0.022 and market capitalization was $38.9 million (fully paid ordinary shares only).
• June 2025: Date of the document.
• 2030: Forecasted total addressable market of approximately US$1.8 trillion.