Vection Technologies Ltd. · ASX:VR1
Vection Technologies — Merger or Acquisition (March 2020)
25 slides from Vection Technologies's merger presentation, Mar 12, 2020
Slide 1: Vection Technologies Ltd - Introducing the acquisition of Mindesk
Vection Technologies Ltd (ASX:VR1) Real-Time Technologies for digital transformation Introducing the acquisition of Mindesk: Real-Time platform for 3D CAD March 2020
Slide 2: Introduction: About Vection and Acquisition Rationale
ABOUT VECTION WHO WE ARE ACQUISITION RATIONALE INTRODUCTION Vection is a multinational software company that focuses on real-time The acquisition of Mindesk represents a strong acceleration in the evolution of technologies for industrial companies’ digital transformation. Vection’s CAD strategy to m
Slide 3: Vection at a Glance: Delivering on Our Strategy
VECTION AT A GLANCE DELIVERING ON OUR STRATEGY ASX LISTING OPERATIONAL TRANSFORMATION The Company lists on the Australian The Company renews its Board of The Company divests its interests The Company acquires 3D, Virtual Securities Exchange (ASX) to Directors to implement a in the real estate, settl
Slide 4: Overview
VECTION TECHNOLOGIES LTD Ed “mm CO INDUSTRIES MULTINATIONAL “COMPANY MACHINERY AUTOMOTIVE Lal -— [-— VECTION e FASHION & FURNITURE Lad ASX TECHNOLOGIES = THE AUSTRALIAN TECHNOLOGIES EDUCATION (=) SECURITIES EXCHANGE HEALTHCARE O TECHNOLOGIES LW 30 | VIRTUALREALITY | AUGMENTEDREALITY {INDUSTRIAL IoT
Slide 5: Overview + Mindesk: Introducing Mindesk
OVERVIEW + MINDESK INTRODUCING MINDESK Powerful design tool for strong differentiation and growth across commercial CAD software 5
Slide 6: Building a 360° Software Product Suite for Industry 4.0
BUILDING A 360° SOFTWARE PRODUCT SUITE FOR INDUSTRY 4.0 With the addition of Mindesk, Vection is now accelerating on its By combining Mindesk’s engineering and design solutions to Vection’s commercial growth strategy to bring to market a 360° suite of software current product suite, Vection can esta
Slide 7: Building Our Software Product Suite
BUILDING OUR SOFTWARE PRODUCT SUITE The addition of Mindesk to Vection’s existing software product suite is highly strategic in the acceleration of Vection SaaS CAD strategy, SOFTWARE SUITE unlocking tremendous value for engineers, architects and designers in the initial phases of product developmen
Slide 8: FrameS + Mindesk
FRAMES + MINDESK FRAMES + MINDESK: REAL-TIME PLATFORMS FOR DIGITAL TRANSFORMATION ● VR product configuration and design review ● CAD Engineering and design in VR from scratch ● Engaging Sales tool ● Cloud collaboration with desktop CAD users ● Best-in-class Training tool ● Real-time rendering 8
Slide 9: Introducing Mindesk
INTRODUCING MINDESK Pearly Chen - Vice President of Business Development at HTC “We are grateful to have had the opportunity to back Mindesk since their early days and share the team’s excitement about the possibilities this acquisition could unleash for Vection Technologies and their customers glob
Slide 10: About Mindesk
OVERVIEW ABOUT MINDESK Mindesk is a Real-Time 3D design platform that integrates with existing commercial CAD software to extend their operations to Virtual Reality and Augmented Reality. Mindesk introduces the possibility to design a CAD project from scratch in Virtual Reality. Mindesk platform int
Slide 11: About Mindesk: Technical Features
TECHNICAL FEATURES ABOUT MINDESK Mindesk is the only VR platform on the market that provides the bi-directional, real-time live link across multiple commercial CAD and design software: McNeel Rhinoceros 6 Dassault Solidworks 2018 and 2019 Epic Games Unreal Editor Rhinoceros is the leading 3D surface
Slide 12: Performance to Date
PERFORMANCE TO DATE USER ADOPTION - THE OPPORTUNITY With a market average conversion rate for SaaS platforms at ~4%1, Mindesk’s 1% conversion rate and downloads growth represent a significant unique opportunity for Vection to capitalise on an increased market exposure driving platform adoption growth
Slide 13: Acquisition Rationale
VECTION TECHNOLOGIES LTD (ASX:VRI) ACQUISITION RATIONALE 4 MINDESK-~ VECTION TECHNOLOGIES GROWTH OF CAD REAL-TIME SOFTWARE MARKET ‘THE INTERSECTION BETWEEN CAD AND VR/AR SOFTWARE AND REAL-TIME RENDERING WAS VALUED AT ASI.2 BILLION IN 2019. 7 d | 2019-2022 THE ADOPTION OF THESE TECHNOLOGIES IS SET TO
Slide 14: Synergies
VECTION TECHNOLOGIES LTD (ASX:VRI) SYNERGIES LN MINDESK-~ VECTION TECHNOLOGIES SALES FOCUS COMBINED GROUP'S MARKET PRESENCE: w NLINE VALUE ADDED RESELLERS AND DISTRIBUTORS ECOMMERCE ACROSS 3 CONTINENTS PRESENCE VECTION WILL FOCUS ON NEAR-TERM SALES INITIATIVES. TO ACCELERATE SUBSCRIPTION UPTAKE ACRO
Slide 15: Synergies
TIER 1 CLIENTS FINANCIAL PARTNERS SYNERGIES TECH PARTNERS 15
Slide 16: Technology Partners
HTC is a Mindesk investor and continuously provides marketing support and industry connections to their enterprise network. TECHNOLOGY PARTNERS For further information: vivex.vive.com/eu/ Mindesk is one of the eight Logitech VR INK application available on launch day. VR INK is a first-generation VR
Slide 17: CAD Software Market
CAD SOFTWARE MARKET CAD SOFTWARE MARKET The intersection between CAD and VR/AR software and real-time rendering was valued at A$1.2 billion in 2019, with an initial mixed reality adoption rate of 8%. The adoption of these immersive technologies by professional users is set to more than double over t
Slide 18: Strategy Outlook
STRATEGY OUTLOOK OUR BUILDING BLOCKS FOR MARKET DOMINANCE GROWTH ● Strong focus on leveraging the existing distribution, online and PARTNERSHIPS direct sales network ● Geographical and market ● Acceleration of development, expansion via an enlarged TECHNOLOGY OEM and distribution distribution footpr
Slide 19: Board & Management
BOARD MANAGEMENT Gianmarco Biagi Andrea Bortolotti Managing Director, Vection Technologies CTO, Vection Technologies BOARD & MANAGEMENT Experienced executive and board member of several Italian and multinational 15+ years of experience in the development of Virtual Reality, Augmented Reality manufac
Slide 20: Pro-Forma Structure
Current Capital Structure Post-Acquisition Capital Structure Share Price1: 2.3¢ Share Price1: 2.3¢ PRO-FORMA STRUCTURE Shares on Issue2: 657.2M Shares on Issue2: 822.7M Market Capitalisation: $15.1M Market Capitalisation: $18.9M Cash3: $0.3M Pro-Forma Cash3,5: $1.5M Debt4: - Debt4: - Enterprise Valu
Slide 21: Transaction Overview
● 165,505,199 Vection fully paid ordinary shares (Shares) (Consideration Shares). Consideration: ● Up to 108,000,000 Shares (Deferred Consideration) subject to multiple audited revenue milestones. For further information please see below. ● The issue of the Consideration Shares and the Deferred Cons
Slide 22: Indicative Timetable
INDICATIVE TIMETABLE INDICATIVE TIMETABLE 2 MARCH 2020 20 MARCH 2020 20 APRIL 2020 21 APRIL 2020 24 APRIL 2020 Despatch of Notice of Meeting for approval of Meeting of Vection Satisfaction (or waiver) of ASX Announcement of the shareholders to approve Completion of Acquisition issue of Shares as con
Slide 23: Wrapping Up: Delivering Incremental Growth
DELIVERING INCREMENTAL GROWTH ● Ability to Execute: Vection 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
Slide 24: Visit Our Websites
VISIT OUR WEBSITES WEBSITES Vection.com.au Mindeskvr.com 24
Slide 25: Thank You
THANK YOU Vection Technologies Ltd (ASX:VR1) Vection.com.au Mindeskvr.com INVESTOR ENQUIRIES MEDIA ENQUIRIES OFFICES Gianmarco Biagi - Managing Director AUpress@vection.com.au Vection Asia Pacific: Suite 1, 437 Roberts Road (Europe Based) EUpress@vection.com.au Subiaco WA 6008, Australia E: gianmarco
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