Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q4 2015 Earnings Presentation
27 slides from Stratasys's earnings presentation, Mar 3, 2016
Slide 1: Stratasys Q4 2015
STRATASYS Q4 2015 March 3", 2016 stratasys
Slide 2: Q4 2015 Conference and Webcast Details
esratass Q4 2015 Conference and webcast ees Live Dialin details Information (Bel tS Primary Dial-in: GEO 800-688-0836 Intemational Diat-in Erez Simha 814-407. eeneGeD 617-614-4072 Participant ‘Shane Glenn Passcode: VP, Investor 49835079 Relations Live webcast and replay:
Slide 3: Forward Looking Statement
Forward Looking Statement ‘The statements in this presentation regarding Stratasys' belief that ils compretiensive new strategy and the statements ragarding iis projected Tuluro financial performanca, including under the heading forward-looking statements reflecting management's current expectations
Slide 4: David Reis - CEO Opening Remarks
David Reis - CEO Opening Remarks > Fourth quarter results reflect continuation of difficult macro- economic environment and shift in customer buying pattems > Recognized favorable trend in operating expenses driven by early success of restructuring efforts > Observed positive cash generation, result
Slide 5: Financial Update and Guidance
Erez Simha —- CFO and COO Shane Glenn — VP of Investor Relations Financial Update and Guidance
Slide 6: Financial Results - Non-GAAP
Financial Results - Non-GAAP Stratasys, Ltd. evens crown J 20% vor coo revenue crown J ssxvor Non char cross Patt Grown sim vor Non-GAAP Net income Mf 103% vor Unit Sales nz] 4620] 587% Tot Revove sara] seal 202% Revenue! Enolovee oors| oos| 120% Grows Prot wie) saa SCaain soon | care | 314% ‘pean p
Slide 7: Financial Results: Impact of Restructuring
ancial Results Impact of Restructuring Y Global workforce reduction of approximately 10% during the fourth quarter ¥ Initiated operating expense and manufacturing optimization programs ¥ Impact of activities recognized in Q4 results, with additional benefits expected throughout 2016 Y Pleased with p
Slide 8: Financial Results - Non-GAAP
Financial Results - Non-GAAP Stratasys, Ltd. sre 05 S100 System Revenue J 37% YOY aa-2014 04-2015 Consumable Revenue J 1% YOY ere ene Total Revenue — Quarterly Trend Customer Support Revenue [if 11% YOY cote S67 sizes snus L L Li “] ais ans ass aes, 2 enna mesieunwetcuroecaume, {Sia milons unless ne
Slide 9: Results — System Unit Sales
| Results — System Unit Sales Stratasys, Ltd. + Q4 units sales were 4,629 3D printing and additive manufacturing systems + Unit sales impacted by lower MakerBot unit sales and overall market factors, + System ASP improved sequentially and Y/Y, driven by product mix + Total units sold on a pro-forma
Slide 10: Financial Results - Non-GAAP
Financial Results - Non-GAAP Stratasys, Ltd. + Gross margin decline driven by one-time items — including $7.7M. negative impact related primarily to inventory adjustments, Sarin nerd (S inmllons ules noted otherwise) ‘Stratasys
Slide 11: Financial Results — Operating Profit Non-GAAP
Financial Results — Operating Profit Non-GAAP Stratasys, LTD. Favorable Sequential Trend in Operating Exp. Operating Exp. J 3% R&D Exp. dix aia SGBAExp. lp 0% GIA Operating Profit Analysis — Quarterly Trend Shots sae | wan] 138% ee ee ae ‘Gin mions nes oad crise © eircom stan © Sante natn @ crane 1
Slide 12: Financial Results — Revenue Geographic Mix
Financial Results — Revenue Geographic Mix Stratasys, Ltd. + Results reflect continuation of challenging market environment observed throughout 2015 Geographic Sales Q4-2014 Geographic Sales 4.2015 stave ese manna suman cour ‘Stratasys
Slide 13: Results — Balance Sheet Summary
Stratasys, Ltd. | Results — Balance Sheet Summary + Cash from operations improved in Q4, driven by better expense control and improved working capital management + Inventory decline a result of lower production levels to match demand, and improvement in inventory management Selected balance sheet te
Slide 14: Financial Summary
Financial Summary > > Fourth quarter results reflect continuation of challenging market environment Encouraged by early results of cost structure adjustments Near-term visibility for demand recovery is low — budgeting assumptions reflect similar conditions in 2016 Focused on operational efficiency a
Slide 15: Revenue & Earnings Guidance — Full Year 2016
Revenue & Earnings Guidance — Full Year 2016 Non-GAAP ‘of GAAP to Non-GAAP Revenue (M) uence aah $700-$730M wrowrainone te. aia 00 i (ingens sncnznintig, Hn Non-GAAP Diluted EPS (3) Merger Related Expenses. at (4) Reosganiation and eer rates ($0.17-$0.43) jgsessareseemees ar aajustrents GAAP Net Los
Slide 16: Strategic Overview
STRATEGIC OVERVIEW
Slide 17: Business Context & Transformation
BUSINESS CONTEXT & TRANSFORMATION Our business grew at accelerated rates through 2014 Growth fueled by merger and acquisitions, and strong initial customer purchases of 8D printers, Today, there is a market-wide slowdown in our industry ‘An opportunity for Stratasys to re-group and evaluate near-ter
Slide 18: Stratasys Business Transformation
STRATASYS BUSINESS TRANSFORMATION + Maintain proaiysng leadership Future. Transition ointegrated souton, veical Strategy vented oterngs «Expansion no manutactring + Acauisitons to seenginen core capabiies my t= [€= 1S ¥ WakerBot 2013- © Sols Concepts & Harvest Tech roe EEE + crestdindstyleser ’ Merg
Slide 19: Vertical Approach to Market Penetration
VERTICAL APPROACH TO MARKET PENETRATION ah MANUFACTURING Stratasys seeks to impact student performance and ‘empower the next generation workforce for STEM and manufacturing a careers, arket across industries PROTOTYPING ri 8 Fa 3 ba Ee 8 $s 5 5 < < ‘steno ese mma oui counae stratasys
Slide 20: Vertical Approach to Market Penetration
VERTICAL APPROACH TO MARKET PENETRATION wh OUR LONG TERM FUTURE 7 ‘We believe that additive manufacturing can disrupt IVANUENeuUai\ey) traditional manufacturing and create immense value EDUCATION through a solution selling approach Stratasys seeks to impact student Y OUR NEAR FUTURE GROWTH ENGINE —
Slide 21: Objet Connex3: All-in-One Simplicity
Objet Connex3: All in-One Simplicity Streamlined product portfolio & enhanced performance Connex3 for alll uses, replaces multiple systems Improve functionality from new Stratasys Creative Colors Software, powered by Adobe 3D Color Print Engine + Expands 46 colors to 1000+ gradient color options + S
Slide 22: MakerBot Update
MakerBot Update Committed to desktop space and MakerBot @ MakerBot + Desktop space impacted by broader market challenges + Several steps taken in 2015 to improve performance: Now management team B i iJ Enhanced engineering collaboration with core business Sales partnerships to leverage Stratasys cha
Slide 23: We Must Strike the Right Balance
WE MUST STRIKE THE RIGHT BALANCE GROWTH PROFITABILITY stratasys the leading 3D Printing Solutions Company How we support this in 2016: ¥ Dive business growth We must: ¥ Advance prototyping leadership Develop new markets and applications in Make the ight investments Ensure smarter operations ¥ Focus
Slide 24: David Reis - CEO Summary & Outlook
David Reis - CEO Summary & Outlook > Maintaining leadership in prototyping, while targeting emerging tooling and end-use-part applications > Enhancing go-to-market infrastructure and moving to solution-based selling of unified offerings >» Remain committed to investments — Core Business, VBUs, Maker
Slide 25: We Are Stratasys
WE ARE STRATASYS THE 3D PRINTING SOLUTIONS COMPANY |
Slide 26: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. = SEE ($n thovsands axcapt share an
Slide 27: Reconciliation of Non-GAAP Adjustments
Reconciliation of Non-GAAP Adjustments Stratasys Ltd. (Sinthousands) mer ‘Stratasys