Vection Technologies Ltd. · ASX:VR1
Vection Technologies — FY2020 Earnings Presentation
39 slides from Vection Technologies's earnings presentation, Aug 31, 2020
Slide 1: Vection Full Year Investor Presentation 2020
VECTION FULL YEAR INVESTOR PRESENTATION 2020 (ASX:VR1) August 31, 2020 Copyright © 2020 Vection Technologies
Slide 2: Disclaimer
VECTION FULL YEAR INVESTOR PRESENTATION FY20 DISCLAIMER This presentation has been prepared by Vection Technologies Limited (ACN 614 814 041) Future performance - Forward looking statements, opinions and estimates provided in (Vection Technologies or the Company) and is for information purposes only
Slide 3: Agenda: FY20 Highlights & Achievements
1 FY20 Highlights & Achievements Real-time technologies 2 FY20 Financial Performance & Metrics for industrial companies’ digital transformation. 3 Business Overview 4 Corporate Overview 5 Company Overview & Market Opportunity 6 Company Highlights Copyright © 2020 Vection Technologies
Slide 4: FY20 Financial Highlights: Continued Strong Growth Amid a Global Pandemic
VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 HIGHLIGHTS & ACHIEVEMENTS VECTION FULL YEAR FINANCIAL HIGHLIGHTS CONTINUED STRONG GROWTH AMID A GLOBAL PANDEMIC 01 $4.0M ● Continued triple digit revenue growth of +131% compared to FY19, despite COVID-19 lockdowns commenced in Q3 FY20. +131% YoY ● F
Slide 5: Building Market Dominance Through Strong Foundations
VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 HIGHLIGHTS & ACHIEVEMENTS BUILDING MARKET DOMINANCE THROUGH STRONG FOUNDATIONS 01 +131% +120% +157% 5 FY20/FY19 Revenue Increase Underlying EBITDA Increase FY20/FY18 CAGR Increase Global Offices 02 $3.1M $173K 2,300+ 50+ 03 FY20 Revenue Underlying EB
Slide 6: FY20 Significant Achievements Overview
VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 HIGHLIGHTS & ACHIEVEMENTS FY20 SIGNIFICANT ACHIEVEMENTS OVERVIEW 01 ✓ Triple digit revenue growth despite European lockdowns in 2H FY20. ✓ Acquisition of Mindesk Inc to accelerate real-time 3D Computer Aided Design (CAD) offerings. 02 ✓ Expansion in
Slide 7: Our Building Blocks for Market Dominance
VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 HIGHLIGHTS & ACHIEVEMENTS OUR BUILDING BLOCKS FOR MARKET DOMINANCE 01 GROWTH 02 ● Strong focus on leveraging the existing distribution, online and direct sales 03 PARTNERSHIPS network ● Geographical and market expansion via an enlarged 04 TECHNOLOGY
Slide 8: Next Months Overview
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. ✓ Accelerating the North Amer
Slide 9: FY20 Financial Performance & Metrics
1 FY20 Highlights & Achievements Real-time technologies 2 FY20 Financial Performance & Metrics for industrial companies’ digital transformation. 3 Business Overview 4 Corporate Overview 5 Company Overview & Market Opportunity 6 Company Highlights Copyright © 2020 Vection Technologies
Slide 10: FY20 Results Key Metrics
VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 FINANCIAL PERFORMANCE & METRICS FY20 RESULTS KEY METRICS FY20 Change FY19 FY18 01 $ +/- $ $ Revenue 3,147,111 131% 1,362,124 475,324 02 Expenses (excluding add-backs) (2,974,033) (2,238,840) (3,326,044) Underlying EBITDA1 173,078 120% (876,715) (2,85
Slide 11: Balance Sheet
VECTION FULL YEAR INVESTOR PRESENTATION FY20 FY20 FINANCIAL PERFORMANCE & METRICS BALANCE SHEET 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 01 $2.0M Total Current Assets 3,714,381 2,254,559 1,568,630 Property, p
Slide 12: Cashflows
VECTION FULL YEAR INVESTOR PRESENTATION FY20 30 June 20 30 June 19 FY20 FINANCIAL PERFORMANCE & METRICS $ $ CASHFLOWS Receipts from customers 2,348,403 1,450,452 Payments to suppliers and employees (2,266,860) (2,914,459) Interest received 517 440 Interest paid / Finance costs (57,846) (39,710) 01 T
Slide 13: Financial Strategy - Smart Capital Initiatives
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 robu
Slide 14: Business Overview
1 FY20 Highlights & Achievements Real-time technologies 2 FY20 Financial Performance & Metrics for industrial companies’ digital transformation. 3 Business Overview 4 Corporate Overview 5 Company Overview & Market Opportunity 6 Company Highlights Copyright © 2020 Vection Technologies
Slide 15: Technology: Building a 360° Suite for Industry 4.0
VECTION FULL YEAR INVESTOR PRESENTATION FY20 BUSINESS OVERVIEW DESIGN & ENGINEERING TECHNOLOGY ● 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 01 hardware. MAINTENANCE ● Launch of the Trainer Creator
Slide 16: Partnerships
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 16 Copyright © 2020 Vection Technologies
Slide 17: Partner Distribution Network
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 se
Slide 18: Organisation & People
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 2 4 platform that combines Computer Aided Design (CAD) with New Offices Virtual Reality
Slide 19: Corporate Overview
1 FY20 Highlights & Achievements Real-time technologies 2 FY20 Financial Performance & Metrics for industrial companies’ digital transformation. 3 Business Overview 4 Corporate Overview 5 Company Overview & Market Opportunity 6 Company Highlights Copyright © 2020 Vection Technologies
Slide 20: Corporate Overview
VECTION FULL YEAR INVESTOR PRESENTATION FY20 HTC Vive: Global smart mobile devices and CORPORATE OVERVIEW technology innovator HTC through its VR CORPORATE OVERVIEW focused global accelerator program Vive X. HTC is listed on the Taiwan Stock Exchange 01 ● Entry of global institutional shareholders i
Slide 21: Leadership Team
VECTION FULL YEAR INVESTOR PRESENTATION FY20 Vittorio Bava CORPORATE OVERVIEW Head of SaaS, Vection Technologies LEADERSHIP TEAM 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 manageme
Slide 22: Corporate Snapshot
VECTION FULL YEAR INVESTOR PRESENTATION FY20 CORPORATE OVERVIEW CORPORATE SNAPSHOT 01 CORPORATE SNAPSHOT SHARE PRICE / VOLUME HISTORY ● Share Price1 : 5.8¢ 02 ● Shares on Issue2,3 : 837.7M ● Market Capitalisation : $48.6M ● Cash4: $1.6M VOLUME (M UNITS) 03 PRICE ($) OWNERSHIP BREAKDOWN4 04 Other Boa
Slide 23: Company Overview & Market Opportunity
1 FY20 Highlights & Achievements Real-time technologies 2 FY20 Financial Performance & Metrics for industrial companies’ digital transformation. 3 Business Overview 4 Corporate Overview 5 Company Overview & Market Opportunity 6 Company Highlights Copyright © 2020 Vection Technologies
Slide 24: Vection Technologies' Market Statement
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY VECTION TECHNOLOGIES’ MARKET STATEMENT DESIGN & ENGINEERING Real-time technologies 01 enable a faster, more efficient and affordable design process. Vection Technologies, the real-time software company, 02 seeks to in
Slide 25: Mission & Vision
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY MISSION & VISION 01 MISSION Vection Technologies delivers real-time software to industrial companies enabling the digital transformation of workflows. 02 Through a combination of 3D, Virtual Reality, Augmented Reality
Slide 26: Overarching Objectives
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 The Company’s overarching object
Slide 27: Global Reach
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
Slide 28: Product Suite
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY PRODUCT SUITE 01 02 03 MINDESK FRAMES TRAINER CREATOR CONFIGURATORS ∞ CUSTOM SOLUTIONS 04 ● REAL-TIME RENDERING ● ONLINE SALES ● EFFECTIVE TRAININGS ● CLIENT INVOLVEMENT ● SOFTWARE DEVELOPMENT ● IMMERSIVE REVIEWS ● PR
Slide 29: Strong Value Chain Solutions
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY STRONG VALUE CHAIN SOLUTIONS 01 ● -60% Time to market ● Automated operational information ● Reduced virtual showcase costs ● -60% after sales costs ● -80% Physical prototypes ● ERP integration ● Revitalized sales ● Mo
Slide 30: Diversity of Application
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY DIVERSITY OF APPLICATION 01 02 ARCHITECTURE, ENGINEERING & MACHINERY AUTOMOTIVE CONSTRUCTION (AEC) 03 04 05 06 NAVAL FASHION & FURNITURE EDUCATION HEALTHCARE 30 Copyright © 2020 Vection Technologies
Slide 31: Navigating a Post-COVID 19 Environment: Key Trends
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY NAVIGATING A POST-COVID 19 ENVIRONMENT: KEY TRENDS 01 DIGITALISATION AND INDUSTRY 4.0 BEHAVIOURAL CHANGE 02 VR/AR is reshaping how manufacturers innovate and respond to customer 4.0
Slide 32: Digitalization & Industry 4.0
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY DIGITALIZATION & INDUSTRY 4.0 01 INTERNET VIRTUAL AND OF THINGS (IoT) AUGMENTED REALITY 02 Digitalization is enabling a reinvention of manufacturing. 03 It’s a core component of Ind
Slide 33: CAD Convergence Opportunity
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY CAD CONVERGENCE OPPORTUNITY Engineers, designers and builders are increasingly looking for solutions that can quickly turn their Computer Aided Design (CAD) data into 01 real-time e
Slide 34: CAD Software Market Overview
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY CAD SOFTWARE MARKET OVERVIEW 01 PRICE TO SALES RATIO, CAD SOFTWARE MARKET* 25x 02 Company Ticker Code 20x Altium Limited ALU:ASX Price to Sales Ratio USD $28.9 B 03 USD $3.3 B Marke
Slide 35: Diverse Applications for AR/VR Software in 2025
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY DIVERSE APPLICATIONS FOR AR/VR SOFTWARE IN 20251 01 Enterprise and public sector: Consumer: USD $16.1 B USD $18.9 B 02 03 USD $35 B 04 Estimated Market Healthcare: USD $5.1 B Engine
Slide 36: Manufacturing Overview
Drafters 0.5M VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY OVERVIEW & MARKET OPPORTUNITY DRIVING FORCES & MARKET OPPORTUNITY Other Electrical engineers engineers MANUFACTURING OVERVIEW 4M 1M 01 9M The opportunity in manufacturing: Global core design & Analyst Professionals 02 Mechanical USD
Slide 37: Company Highlights
1 FY20 Highlights & Achievements Real-time technologies 2 FY20 Financial Performance & Metrics for industrial companies’ digital transformation. 3 Business Overview 4 Corporate Overview 5 Company Overview & Market Opportunity 6 Company Highlights Copyright © 2020 Vection Technologies
Slide 38: Focus on Continued Growth
VECTION FULL YEAR INVESTOR PRESENTATION FY20 COMPANY HIGHLIGHTS FOCUS ON CONTINUED GROWTH 01 ✓ 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 collabor
Slide 39: Corporate Headquarters
Corporate Headquarters Suite 1, 437 Roberts Road Subiaco WA 6008, Australia 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 Investor Relations Contact Details North America Headquarters 785 Market Street, #60