Transcription of The Stock Network Interview with Vection Technologies (ASX:VR1), CEO of APAC Luis Nejo
Lel Smits: Vection Technologies brings together AI, hardware and enterprise systems into complete solutions to sell to law enforcement, defense and business customers. The group posted its first full year of positive operating cash flow in FY26 and is now working with Xerox Holdings and Italian telco Retolit. I’m joined today by Vection Technologies CEO of APAC, Luis Nejo, to discuss how far Vection has moved from its virtual reality days and what Xerox and Retolit could open up for the company. Luis, welcome to the Stock Network.
Luis Nejo: Thank you, it’s a pleasure to be here.
Lel Smits: Now Vection is increasingly moving towards enterprise AI and its strength lies in seeing everything a customer needs and bringing it together into solutions really that are delivering real outcomes.
Can you outline for us how the company has transformed and also do you believe the market perception has kept pace?
Luis Nejo: Thank you, it’s a good question. There is a lot of saturation of AI in the market today, I feel, and I think it can be difficult for investors and also consumers to see in real time what this is all about. So, you know, sifting through all the noise can be difficult.
But I think if you were to watch our journey in time lapse, you’ll start to see the strategy starting to take shape. And I think some of the more recent news and the things that we hope to share in the months to come will start to really solidify that. We are definitely enablers in the technology space.
We have come from a place where investors may have been wondering what we were doing in that XR space, and then with the introduction of AI, wondering how these two things come together. And I think we’ve demonstrated or given some examples of what that means. But I think it’s really only now where people are starting to see that the culmination of these very different technologies actually is quite purposeful.
We understand that the trouble that AI has in delivering real outcomes and ROI and these tangible benefits that people are talking about come from a really siloed view that a lot of AI vendors have out there, solving one problem at a time and trying to make it look like it solves everyone’s problems. It doesn’t work like that. And it never has.
This is not unique to AI. This is a technology thing. So we purposely set out to acquire what we think are complementary technologies that will enable us to solve complex problems, which you cannot solve just with one technology on its own, whether it’s AI or not.
It’s just it’s not the way that things have ever been. So we are very much focused on reading the tea leaves and looking at what are the capabilities and technologies, what is the IP or what are the partnerships that we need to have in order to have or produce real material outcomes. So very focused on those more complex problems.
And some of the news that has been released recently, I think, is testimony to the fact that we are starting to really demonstrate that.
Lel Smits: Yes. And in terms of your business models potential, do you believe that the market really has fully recognised Vection’s transformation? And also, what do you think it’s going to take to demonstrate that the business model is delivering greater value over time?
Luis Nejo: I think it will be the combination of two things. One of those is evidence. Actions speak words. We’re in an industry at a time where the saturation of news around AI advancements is very difficult to sift through. It’s very difficult to understand where is the impact amongst that. So that’s why we’re very proud of some of the customer announcements that we make. It’s not necessarily obvious that we’re the level to which we’re making an impact.
But when you look at some of the names that we have partnered with or some of the customers that have assigned trust to us, it’s evident that our methodology is working. Our focus is working. So we have taken AI from being just about intelligence to how we can actually apply AI in the physical world, solving real physical problems that the world is genuinely experiencing.
So I think the evidence will speak for itself. And I think that will have a heavy hand to play in how people perceive our model and our approach.
Lel Smits: Absolutely. And if we can look at some of your recent deals beyond initial committed revenue, what do you think the Xerox and Rationalit agreements could mean for Vections technology distribution and also your customer reach?
Luis Nejo: I think first and foremost, what’s not lost on us is the validation that it provides. These are not small organisations. These are serious organisations with serious enterprise and government customers.
So their willingness to partner with us is not lost on us. And these partnerships don’t happen by accident. So, of course, there is the hope and the promise of long-term and recurring revenues that underpins everything.
But no one seeks partnerships like this without that being the fundamental reason. But we hope to and we see how we can or we have identified how we can deliver joint value together. The Xerox partnership is important to us.
It’s a global partnership. It is going to have presence in all parts of the world where Xerox has reached. They have their own strengths and capabilities and the profile of their customers.
And we have identified where we can add value within that jointly to identify that. Equally with the Red Alert partnership, they are very good at what they do, very focused on what they do, and they recognise the problem that they have and they recognise the problem that their customers have rather and how we can fill that gap as well. So we see a real long-term opportunity for joint value both in both sides of those partnerships do today, but what we can start to look at how we can explore that tomorrow as regulations change around us, as the problem surface changes around us.
These partnerships are quite key in solving those ongoing and evolving problems.
Lel Smits: And finally, Luis, why does the 1.35 million FI27 renewal from a client of more than five years matter for Vection’s revenue profile and also security capabilities?
Luis Nejo: Well, it’s again, it’s validation on two fronts. One, sometimes when you sign, when you establish a partnership or a framework agreement, it’s in itself, it is not a sign of what is to come. It’s when the orders start to come through. It’s when repeat orders start to come through. So it is proof that the partnerships that we’re forming, these agreements that we’re forming, they’re real.
They’re not just for the sake of a, they’re not superficial distribution agreements. They’re much deeper than that. And the fact that there is repeat orders that come through that again, it’s a sign that we are delivering value.
We would not see repeat orders if we were not adding value. And in particular, in these types of organizations in industries where security and trust is paramount to again, see that repeat, the repeat business coming through there is absolute validation of what we have, what we’re doing is working and it’s worth investing in.
Lel Smits: Luis, thank you for the update from Vection Technologies.
Luis Nejo: Appreciate it. Thank you, Lel.
Ends