Slide 1: Conference Call and Webcast: Fourth Quarter and Full Year 2012
Conference Call and Webcast Fourth Quarter and Full Year 2012
Slide 2: Presenters
Presenters Stacey Witten * Director Investor Relations q Avi Reichental * President & Chief Executive Officer q Senior Vice President & Chief Financial Officer q Andrew Johnson * Vice President & General Counsel Ie }
Slide 3: Welcome Webcast Viewers
Welcome Webcast Viewers ¢ 1-800-295-3991 in the . United States To listen to the conference via phone and to ask ¢ 1-617-614-3924 from questions during our Q&A outside the United States session, please dial: ¢ Participant Code: 68343877#
Slide 4: Forward-looking statements
This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance or products, underlyi
Slide 5: Operating Results
Operating Results Avi Reichental, President & CEO SDSysSsT =MsS"
Slide 6: Fourth-Quarter and Full-Year 2012 highlights
* Revenue grew 45%, to record $101.6 million on a 93% surge in printers/other products sales and 18.8% organic growth Fourth-Quarter | « quarter-end backlog expanded 23% sequentially to $11.4 2012 million and included $3.2 million of current printers sales * Gross profit increased 60% on higher reve
Slide 7: Full year revenue by category
Sin millions Full Year Printers & 2011 $ 66.7 Other Products [PYypy $126.8 Print |201 fs 706 a Materials $ 103.2 soe ; 2011 ( $93.1 a> oS 7 ans $27.9 Healthcare 4 a 53.5% total revenue growth 22.4% organic revenue growth
Slide 8: New Products Revenue
Sin millions New Products Revenue $140 $120 $100 $80 $60 $131.9 40 $ BEnG $77.8 2010 ™2011 ™2012 2012 Comparison to 2011 Commercialized 16 new New products revenue up Integrated materials products 70% revenue up 76%
Slide 9: Financial Review
Financial Review Vice President and CFO
Slide 10: Fourth Quarter — Non-GAAP
Qu $ in millions, except earnings per share Fourth Quarter — Non-GAAP % Change Favorable/(Unfavorable) Revenue $69.9 Gross Profit $32.9 % of Revenue 47.1% Operating Expenses $16.8 % of Revenue 24.1% Net Income $13.8 % of Revenue 19.8% Depreciation & Amortization S15: % of Revenue 21% Diluted Earning
Slide 11: Full Year — Non-GAAP
$ in millions, except earnings per share Full Year — Non-GAAP % Change Favorable/(Unfavorable) Revenue $230.4 Gross Profit $109.3 % of Revenue 47.4% Operating Expenses $63.0 % of Revenue 27.4% Net Income $41.0 % of Revenue 17.8% Depreciation & Amortization $6.0 % of Revenue 2.6% Diluted Earnings Per
Slide 12: Organic Growth Trend
Organic Growth Trend 18.8% 18.8% 2011 Fourth Quarter We consider acquired revenue as such from the date of acquisition until its 12-month anniversary date 2011 Full Year From its 12-month anniversary going forward, we add the actual total first year revenue to our total base and count only the incre
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended Year Ended December 31, December 31, (in millions, except per share amounts) 2011 2012 GAAP Net Income $8.0 $10.9 $35.4 $389 Adjustments (tax effected): Stock-based compensation $0.8 $13 $26 $4.6 Amortization of intangibles (a) $24 $29 $5.1 $11.5 Acquisition and
Slide 14: Revenue by Category & Geography
Revenue by Category & Geography $ 353.6 20 $101.6 350 100 300 0 $69.9 550 $230.4 Services Services a 60 B36 na 29% 40 Materials Materials 29% 100 20 6 50 _| Rrinters Printers 0 0 8 2011 2012 2011 2012 353.6 $101.6 a0 $ 100 Asia-Pacific 300 80 $69.9 Asia-Pacific 50 $230.4 29% 29% 0 200 Europe Europe
Slide 15: Gross Profit by Category
Fourth Quarter 2012 Ye-¥r% Printers & other products Print materials Services Total $ Millions Full Year Gross Profit Margin 43.1% 2011 2012 $ Millions Printers & other products $25.0 Print materials $45.8 Services $38.3 Total $109.0 Jumns may not foot due to rounding Gross Profit Margin 37.4% 64.8%
Slide 16: Operating Expenses
Fourth Quarter Siamillons Category R&D Total Operating Expenses % of Revenue ‘% Change Favorable/(Unfavorable) (51.0%) (69.9%) (54.9%) Full Year % Change Favorable/(Unfavorable) $20.4 (66.6%) $78 $28.2 27.7% Sinmilions Category SG&A R&D Total Operating Expenses % of Revenue Columns may not fot due t
Slide 17: Working Capital
Working Capital % Change ier} December 2011 December 2012 Favorabley(Unfovorable) Cash Inventory Accounts Receivable Accounts Payable Working Capital * Cash on hand at end of 2012 compared to the end of 2011 decreased $23.2 million after raising $106.9 million from our common stock offering, paying
Slide 18: Revenue and gross margin performance drivers
forman Sin millions $500 55.0% 2012 Vs. Performance 2011 $400 51.2% Drivers % Change . $354 50.0% 47.3% Revenue 54% $300 Printer units 124% 44.1% r © 5.0% | Gross profit 66% $200 $160 Net income 66% 113 Neti $: 40.0% | Net income per ™ $100 employee Diluted earnings 54% per share $0 35.0% 2009 2010
Slide 19: Revenue Trends
Revenue Trends $ in millions Compound Annual Growth Rate $230.4 Printers & i, Other Printers & Products Other Products Printers & Other Products jaterials : Printers & Meter Gilt Other Materials Products Materials Materials Services Services - Services Services 19
Slide 20: 2012 Revenue by Category
$in millions 5 2012 Revenue by Category 120 $100 Printers & Other Products $80 $60 34% oe $40 31% $20 Printers & Other Products $0 30% 2009 2010 2011 2012 Print @ Non-Integrated Integrated
Slide 21: 2013 Guidance
2013 Guidance ¢ We expect revenue for the full Revenue year to be in the range of $440 million to $485 million* ¢ We expect split-adjusted non- Earnings GAAP earnings per share to be in the range of $1.00 to $1.15* *Inclusive of Geomagic, which we expect to close by the end of February
Slide 22: Outlook and Progress
Outlook and Progress Avi Reichental, President and CEO
Slide 23: Product launches and acquisitions supporting growth initiatives
In support of our rapidly growing 3D printer business, we launched the eight new ProJet® 3D 3510 professional printers and two new print materials: VisiJet® Pearlstone, dental material, and VisiJet® X, ABS performance material In support of our consumer initiative, we launched the second generation
Slide 24: 2013 outlook and expectations
We entered 2013 with positive sales momentum driven by strong demand and $11.4 million backlog, including $5.9 million of on-demand parts We expect continued strong growth along with gross profit margin expansion in line with our higher revenue targets We are pleased with our consumer solutions prog
Slide 25: Q&A Session
Q&A Session Out of respect for other conference call participants, please ask one question and then return to the queue to ask additional questions Please direct all questions through the teleconference portion of this call ¢ U.S.: 1-800-295-3991 To ask questions: ¢ International: 1-617-614-3924 © C
Slide 26: Thank You
Thank You