Slide 1: Q3 2016 Financial Results Conference Call
“ 4 STRATASYS Q3 2016 FINANCIAL RESULTS CONFERENCE CALL November 15'", 2016 SSTRATASYS / THE 20 PRINTING SOLUTIONS COMPANY
Slide 2: Q3 2016 Conference and webcast details
Fu Stratasys Q3 2016 Conference and webcast details Live Dial-in pad Information Wats Souiia Primary Dial-in: SES 855-319-2216 =o Intern tench Dial- Gao Bele) 503-343-6033 Shane Glenn Participant VP, Investor Passcode: Relations 96601880 Live webcast and replay:
Slide 3: Forward Looking Statement
Forward Looking Statement The statements in this presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including under the heading “Financial Guidance,” are forward-looking statements reflecting management's current expectations and beli
Slide 4: Use of Non-GAAP financial information
4 Use of Non-GAAP financial information The following non-GAAP data, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our ‘company in gauging our r
Slide 5: Ilan Levin - CEO Opening Remarks
Ilan Levin - CEO Opening Remarks > Overall market environment in third quarter remained challenging » Pleased with operational improvements during period Observing growing opportunity for value-added manufacturing applications in key verticals Vv >» Recent announcements showcase commitment to workin
Slide 6: Financial Update and Guidance
Erez Simha — CFO and COO Shane Glenn — VP of Investor Relations Financial Update and Guidance
Slide 7: Financial Results
Financial Results Stratasys Ltd. Revenue GAAP Gross Profit i 192% YOY) GAAP Operating Profit Non-GAAP Gross Profit J 0% YOY Non-GAAP Operating Profit | 133% YOY (8 in millions unless noted otherwise) 7 STRATASYS / THE30 PRINTING SOLUTIONS COMPANY GAAP Non-GAAP Change 03-46 Yoy| 03-15] 0346 Unit Sate
Slide 8: Financial Results - Revenue
Financial Results —- Revenue Stratasys Ltd. ee Total Revenue - Quarter $118.5 Silica $49.4 sara System Revenue | 20% YOY 03.2015 03.2016 © Product @ Service Consumable Revenue 1 12% YOY Total Revenue — Quarterly Trend Customer Support Revenue [i] 7% YOY $124.3 1186 $123.8 (8 in millions unless noted
Slide 9: Financial Results - Gross Margin Trends
Financial Results — Gross Margin Trends Stratasys Ltd. Revenue Split Q3-2015 @ Product @ service Revenue Spiit Q3-2016 @ Product @ service (in millions unless noted otherwise) 9 STRATASYS / THE 3D PRINTING SOLUTIONS COMPANY 0315 415 @ Product Gross Margin 614%) 40.4 Q116 @ service Gross Margin 216 0
Slide 10: Financial Results - Operating Margin Trends
Financial Results — Operating Margin Trends Stratasys LTD. Operating Exp. (GAAP) J 89% YOY. R&D Exp. (GAAP) J 36% YOY SG&A Exp. (GAAP) J 43% YOY Operating Exp. (non-GAAP) | 14% YOY R&D Exp. (non-GAAP) | 12% YOY SG&A Exp. (non-GAAP) | 15% YOY (Sin millions unless noted otherwise) 555.8% *Operating pr
Slide 11: Financial Results - Revenue Geographic Mix
1" Financial Results - Revenue Geographic Mix Stratasys Ltd. + Results reflect continuation of challenging market environment observed throughout 2015 Geographic Sales 03-2015 Geographic Sales Q3-2016 2 2 © North America (@ North America @ GEA @ EMEA @ APAC enn @ Other © one STPAASYS / THEO PRATING
Slide 12: Financial Results - Balance Sheet Summary
2 Financial Results — Balance Sheet Summary Stratasys Ltd. * Cash and Cash Equivalents of $239.3 million * Cash utilized in operations was $2.5 million Selected balance sheet items (Sin millions) Cash, Cash Equivalents & Bank Deposits Accounts Receivable Net Working Capital [STRATASYS / THE2D PRINTI
Slide 13: Erez Simha - CFO & COO Financial Summary
Erez Simha —- CFO & COO Financial Summary >» No change in market environment compared to recent periods — visibility remains low >» Pleased with strength of recurring product and service revenue — system utilization remains stable > Operational improvements contributed to significant expense reducti
Slide 14: Revenue & Earnings Guidance - Updated
Revenue & Earnings Guidance — Updated Revenue (M) $662-$673M GAAP Diluted EPS $(1.44)-$(1.35) $0.13-$0.21 14 STRATASYS / THE3D PRINTING SOLUTIONS COMPANY Reconciliation of GAAP to Non-GAAP. Guidance {Sinmitions, except per shar data) Revenue GAAP Net Loss (1) Stock-Based Compensation Exp. (2) Intang
Slide 15: Strategic Overview
STRATEGIC OVERVIEW
Slide 16: Building Application Focused Solutions With Partners
Building Application Focused Solutions With Partners v Two advanced technology demonstrators v Application-aligned configurations of FDM platform =a v Breaking barriers of part efficiency: aerospace and automotive v Expanding FDM: Bigger, stronger, higher quality parts v Teaming with industry leader
Slide 17: Airbus Standardizes on Stratasys for Production of Flight Parts
Airbus Standardizes on Stratasys for Production of Flight Parts v Airbus has standardized the use of Stratasys solutions for A350 XWB () v Selected parts to be produced only on select Stratasys equipment v Significant step towards meaningful adoption of AM technology for end-use parts applications i
Slide 18: New MakerBot Solutions for Professionals & Educators
New MakerBot Solutions for Professionals & Educators MakerBot Replicator+ 30% Faster 25% Larger Build Volume Smart Extruder + MakerBot Replicator Mini+ 10% Faster 28% Larger Build Volume ‘Smart Extruder + MakerBot Print Native CAD support Cloud connected Optimized slicing MsherBot Mobile Easy to use
Slide 19: Ilan Levin - CEO Summary & Outlook
Ilan Levin - CEO Summary & Outlook > Focused on leveraging core assets and developing advanced ecosystem of applications and manufacturing solutions > Pleased with initial reception to technology demonstrators and new product launches > Committed to expanding collaborations with key global manufactu
Slide 20: We Are Stratasys
WE ARE STRATASYS THE 3D PRINTING SOLUTIONS COMPANY
Slide 21: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. eros promt (eoss) (7) 573,681 11,248 19.357 22851 let income (Loss) atiibutable to Statasys UG (12.3) 20.827) 20,936 | 109 | jet income (Loss) per diluted share atinbutable to $(79,896) 165,099. (931,334) 921,351 9,963) (901,2