3d Systems Corporation · NYSE:DDD
3d Systems — Investor Day (May 2015)
83 slides from 3d Systems's investor day presentation, May 19, 2015
Slide 1: Analyst Event, May 19, 2015 - Wilsonville, Oregon
BoDSYSTEMS ANALYST EVENT MAY 19, 2015 - WILSONVILLE, OREGON MANUFACTURING THE FUTURE WWW.3DSYSTEMS.COM|NYSE:DDD
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward-looking statements include 1g plans, obj goals, strategies, i , future events, performance or underlying assumptions, and other forward-looking statements by ter
Slide 3: Agenda
AGENDA (state of the Business: Avi Reichental, Chief Executive Officer,3DS [The Wilsonville Advantage: Jeff Blank, Chief Development Officer (3p Healthcare and Metals: Kevin McAlea, Chief Operating Officer, Healthcare [sates and Operational Excellence: Mark Wright, Chief Operating Officer, 3DS (manu
Slide 4: State of the Business
STATE OF THE BUSINESS AVI REICHENTAL CHIEF EXECUTIVE OFFICER|3DS MANUFACTURINGTHE FUTURE
Slide 5: Leadership Through Technology
LEADERSHIP THROUGH TECHNOLOGY nO A lense.
Slide 6: Relevance Through Science
RELEVANCE THROUGH SCIENCE ~120 MATERIALS: PLASTICS | NYLONS | METALS | WAXES | COMPOSITES | CERAMICS Durable | High-Temperature
Slide 7: Connectivity via Digital Thread
CONNECTIVITY VIA DIGITAL THREAD
Slide 8: Open Ended Opportunities
OPEN ENDED OPPORTUNITIES
Slide 9: Global Reach | Local Presence
GLOBAL REACH|LOCAL PRESENCE 3M 3¢ invisalign poy gagp =. B. Cliei DELPHI @ gc ww SS Fujitsu FUJI XEROX S = ConFoRMIS ARSUS oticon samme w eg SIEMENS — hearing instruments sa isuzu P ‘qT os 4A 7@1e 4 5 -& & KOHLER ; aa = pa 4 EG] * e es a won thon emanenan : ut \ . co} — stryker se @ sunk — YY oawity
Slide 10: Experienced Leadership
EXPERIENCED LEADERSHIP UA oes Calvin Hur owleftBlank ‘Amy Decker an Erez ‘Mame Resor ett opig ect Or, Coe goign oe, Hugh Evans [en Fu chuck Hull ‘Andy Johnson Diana Kalisz capa etme este caer et os Oe cet ate tego fer = lave. 4 ) a Kevin McAlea ‘Avi Reichental David si Mark Wright 2 Chet tea en et n
Slide 11: The 3DS Difference
THE 3DS DIFFERENCE DOMAIN CHANNEL TECHNOLOGY QUALITY }—>] — }—>] EXPERTISE ACCESS PLATFORM EXPERIENCE | wousrri J] Heatracare J) ENGINEERING J EDUCATION J consumeR | SOFTWARE -—>} HARDWARE f—->| CONSUMABLES -—> SERVICES a
Slide 12: Annual Revenue Progression
ANNUAL REVENUE PROGRESSION in miions Revenue $700 $600 $500 $400 $653.7 $300 $200 $100 $0 2009 2010 2011 2012 2013 2014
Slide 13: Healthcare & Metals Performance
HEALTHCARE & METALS PERFORMANCE fog 2012 Healthcare Revenue ofa (iy & & 2013 2014 $50 $0 Metals Revenue é oe Ne & 2013" 2014
Slide 14: Returns on R&D Investment
RETURNS ON R&D INVESTMENT Sa miion: $300 272. Our effective R&D investments $280 $231 contributed to a 44% increase in new products revenue over the past two 65 years and delivered27 new productsin 2014 alone x ax ale $132 Includedin our 2014 R&D investments Be 6X was the strategic addition of the X
Slide 15: Current State
CURRENT STATE First: while it is clear that 2015 is off to a challenging start amidst an industry-level pause, we aren’t alarmed. We believe that it is not unusual in emerging-tech to encounter periodic episodes of equilibrium followed by continued upward growth and we are readying ourselves for tha
Slide 16: Current Focus
CURRENT FOCUS 4 ‘ Growth: we have aligned our programs and resources around industrial, healthcare, engineering and education market opportunities—with consumer as the upside to our model \ y 7 Scalability: we pursue a ‘relatable diversification’ strategy within our defined 3D Digital Fabrication sa
Slide 17: The Wilsonville Advantage
THE WILSONVILLE ADVANTADGE JEFF BLANK CHIEF DEVELOPMENT OFFICER MANUFACTURING THE FUTURE
Slide 18: Wilsonville at a Glance
WILSONVILLE AT A GLANCE
Slide 19: Ages and Stages
AGES AND STAGES Tektronix Xerox 3D Systems ¢ Became part of 3DS after a 15-year partnership * Created “Silicon Forest” * State of the art print- heads, printers and solid ink materials In 2013, began discussions that led to 3D Systems acquiring this experienced team with its development assets, labs
Slide 20: The Wilsonville Difference
THE WILSONVILLE DIFFERENCE [ sewn engineering facility with 120 experienced 3D printing professionals | Supports company-wide product development and commercialization programs for 3D printers and materials compliance, protective packaging and environmental testing were Steere E& of excellence for r
Slide 21: Product Introduction & Delivery Process
PRODUCT INTRODUCTION & DELIVERY PROCESS ¢ Astructured method to bring high quality products to market on a set schedule * Cross-functional project team ensures all operations are ready to support the product at launch (Marketing, Engineering, Service, Manufacturing) Product Ship Release (Launch) Req
Slide 22: Engineer in Reliability
ENGINEER IN RELIABILITY Metrology and Quality Control * Product Safety : * Environmental Chambers * Regulatory and Compliance * Hot * Acoustics * Wet * Cold ¢ Dry * Shock + Altitude * Dynamics / Packaging Lab * Highly Accelerated Life Test (HALT) [ World Class Capabilities! }
Slide 23: Reliability and Validation Testing
RELIABILITY AND VALIDATION TESTING
Slide 24: Quality Manufacturing Process
QUALITY MANUFACTURING PROCESS Satisfying the Customer Manufacturing Defects Continuous Improvement * Collect defects from Qc1 — process checks Qc2 * Drive improvement in => the line Qc3 * Provide metrics and data for improvements OCA and to measure progress iat S a iri} oh w 2 -
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Slide 26: The 3D Printing Factory
THE 3D PRINTING FACTORY 16 precision print heads jet 4 billion drops every minute "A . Speed: Capable of depositing material up to 50X faster than today’s jetting products \ » A Groundbreaking vivid, high-res color \ » A Engineered composite materials \ ( Racetrack architecture anchors the 3D printi
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Slide 28: Next-Gen Color Jet Printing
NEXT-GEN COLOR JET PRINTING * World’s leading full color 3D printers * The best color by a factor of 133,000X * Over 6 million unique colors * 25% - 75% lower model costs * 3X-5X faster printing
Slide 29: Product Delivery: CubeJet
PRODUCT DELIVERY:CUBEJET
Slide 30: Imagining the Next Generation Professional Printer
Imagining the Next Generation Professional Printer: * Faster, simpler and more affordable * Truly office-friendly * Precision-meets- functionality is * Engineered by engineers for engineers * Agateway into more useful and meaningful design and prototyping materials, experiences and outcomes
Slide 31: Turning our imagineering into a concept called DASH
So we decided to turn our imagineering into a powerful concept...and called it DASH i™
Slide 32: Presenting DASH
PRESENTING DASH
Slide 33: New Elastomeric Jetting Materials
NEW ELASTOMERIC JETTING MATERIALS [Game changing Elastomeric Materials } re ¢ VisiJet® CE-BK Black ¢ VisiJet © CE-NT Natural | Amazing 700% elongation Complete elastic recovery Expanded range of 14 materials
Slide 34: New Composites for End-Use Parts
NEW COMPOSITES FOR END-USE PARTS GLASS-FILLED NYLON | ALUMINUM-FILLED NYLON
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Slide 36: Plastic-Jet-Printing Advancements: Nylon
PLASTIC-JET-PRINTING ADVANCEMENTS Empowers professional desktop users to print the strongest and most durable parts on the affordable and versatile CubePro NYLON
Slide 37: Plastic-Jet-Printing Advancements: Flex
PLASTIC-JET-PRINTING ADVANCEMENTS FLEX Incredible flexibility and durability on the desktop. Provides a whole new range of possibilities.
Slide 38: Plastic-Jet-Printing Advancements: Water Soluble Supports
PLASTIC-JET-PRINTING ADVANCEMENTS Dissolves when placed in water, allowing new levels of complexity and movement that are only seen on our powder and resin printers today WATER SOLUBLE SUPPORTS
Slide 39: Software Products
BoDSYSTEMS SOFTWARE PRODUCTS MANUFACTURING THE FUTURE WWW.3DSYSTEMS.COM|NYSE:DDD
Slide 40: A Digital Thread from Design-to-Manufacturing
~ - A DIGITAL THREAD FROM DESIGN-TO=-MANUFACTURING
Slide 41: Product Design
PRODUCT DESIGN BD ceomasic Sculpt Freeform B ceomasi Touch Unique, touch-enabled sculpting tools deliver total freedom for design to manufacturing
Slide 42: Mold Design
MOLD DESIGN @ cimatronE Dedicated solutions for mold design with a wide range of dedicated design applications and tools for molds of any complexity and size, in record time and with superb quality
Slide 43: Scan-Based Design
SCAN-BASED DESIGN B ceomasic Design’ X a Geomagic . Wrap’ The industry’s most precise and comprehensive scan- to-CAD and 3D modeling software solutions
Slide 44: Scan-Based 3D Inspection
SCAN-BASED 3D INSPECTION @ ceomasic : Control @ ceomasic , Capture Powerful scan-based inspection allows parts and 3D prints to be instantly inspected for conformance to tolerances
Slide 45: Personalized Healthcare
PERSONALIZED HEALTHCARE KEVIN MCALEA CHIEF OPERATING OFFICER | HEALTHCARE MANUFACTURINGTHE FUTURE
Slide 46: Healthcare Roadmap
HEALTHCARE ROADMAP rc Our proprietary 3D healthcare products and services address a truly open-ended opportunity and position us to deliver long-term beneficial outcomes for providers and patients alike \ ~ We have been at the forefront of surgical planning and personalized medical solutions for alm
Slide 47: Blended Reality
BLENDED REALITY (simulation > A printing + FDA-cleared patient specific 1 dost , Advanced models and training kits A \ > Simulator/3D printer packages ( 7 ni a ~— 7 Only company with VR simulators + 3D | , @ ya < nr ge" Patient specific simulation + 3D models : L y, f \ §:
Slide 48: End-to-End 3D Personalized Medicine
END-TO-END 3D PERSONALIZED MEDICINE We are integrating and leveraging these powerful A assets and quickly Throughout 2014, we extending our 3D acquired three strategic healthcare solutions from healthcare businesses: the training room to the Proprietary 3D healthcare Medical Modeling, operadng#room:
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Slide 50: Personalized Medicine
PERSONALIZED MEDICINE Zt it ) 1% be . = a - —
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Slide 52: Direct Metal Printing
DIRECT METAL PRINTING MANUFACTURING THE FUTURE
Slide 53: ProX Metal 3D Printers
PROX METAL 3D PRINTERS High density, metal printed parts from a large choice of materials with the highest detail and precision
Slide 54: Production Ready Metal 3D Printers
PRODUCTION READY METAL 3D PRINTERS (- ‘ Precision, repeatability and reliability . J Unique powder layering system \ Advanced scanning ‘< J Automated powder management \ y,
Slide 55: Fab-Grade Direct Metal Printing
FAB-GRADE DIRECT METAL PRINTING QUALITY | MATERIAL VERSATILITY | MANUFACTURING READY | GLOBAL SUPPORT Design for Performance Challenging Materials Mass Customization Challenging Parts
Slide 56: Materials Versatility
MATERIALS VERSATILITY 20+ Metal Alloys Titanium, Stainless Steel, Aluminum, Ni-based Alloys, Tool steel, Cobalt Chrome, Precious Metals, etc. Alsi12 Pure Cu Al203
Slide 57: Closed-Loop Metal 3D Printing
- CLOSED-LOOP METAL 3D PRINTING Ni eA APPLICATION EXPERTISE FEEDBACK TECHNOLOGY "| DRIVEN BY FOCUSED RESEARCH TECHNOLOGY ACROSS MARKET APPLICATIONS A SUPERIOR 3D PRINTING CAPABILITIES
Slide 58: Outstanding Output Quality
OUTSTANDING OUTPUT QUALITY Satellite Engine Temperature-conditioned Combustion Chamber Flow Part Flow Parts Production Batch Hip implant Ce
Slide 59: Wide Application Reach
WIDE APPLICATION REACH Aviation Aerospace (Petro)chemical Pressure & gas Precision mechanics Semiconductor Food Electronics Ne _________..# on = Pharma [ Tooling 180 9001 and ISO 1348S certified
Slide 60: Optimized Performance
OPTIMIZED PERFORMANCE
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Slide 63: Expanding Opportunities in Metals
EXPANDING OPPORTUNITIES IN METALS We are working on future products that we plan to bring to market strategically over time We successfully combined our Phenix and Layerwise engineering teams
Slide 64: Sales and Operational Excellence
SALES AND OPERATIONAL EXCELLENCE MARK WRIGHT CHIEF OPERATING OFFICER|3DS MANUFACTURING THE FUTURE
Slide 65: Strengthening Coverage & Productivity
STRENGTHENING COVERAGE & PRODUCTIVITY Implementing a series of initiatives to strengthen our channel partners, improve overall productivity and coverage and enhance our service quality and responsiveness Introducing a tiered performance-based structure to better incentivize and reward valuable chann
Slide 66: Partner Centric Program Elements
PARTNER CENTRIC PROGRAM ELEMENTS { Predictable > Transparency [ Easy to work with > Operational Excellence @ Highly Responsive > World Class Service Center Customer Focused > Premier Partner Line ( Invests for Excellence and Growth > 3DS INVESTING - Shared goals, shared success > PARTNER INVESTING S
Slide 67: Channel Partner Attributes
CHANNEL PARTNER ATTRIBUTES Best Service Center Best Quality Best Training Best Domain Expertise Best Channel Program =~ Best Materials Best Printers Best Partner Company
Slide 68: PartnerXcel
PARTNERXCEL : Partner Tiered Scorecard with Performance SAUER Online Visibility EEBEt Marketing and Sales and Training Co-Funding Marketing Tools Certification
Slide 69: Benefits Match Performance
BENEFITS MATCH PERFORMANCE Benefits Bronze Silver Gold Platinum Margins Marketing Funds Marketing Coop Marketing Programs Leads Service Resources Training Part Kits/Benchmarks
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Slide 71: Growing Consumer Partnerships
GROWING CONSUMER PARTNERSHIPS We recently announced that our consumer products will be sold at 100 Best Buy stores and website We added Carolina Wholesale, Konica Minolta US and Thermo Fisher Scientific as channel partners Signed distribution partnerships across the EMEA region and in emerging marke
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Slide 73: Operational Improvements
OPERATIONAL IMPROVEMENTS Operational synergies across all our products and regions Integrated global supply chain with ample manufacturing capacity Sales coverage for growth with differentiated partner value J Robust quality processes and world- class service network Organizational resources and bus
Slide 74: Refining Capabilities, Expanding Reach
REFINING CAPABILITIES, EXPANDING REACH a Li: —c_ uw“ a. B. We are continuing to : are expanding our We are installing 10 consolidate fa global footprint by additional direct metal shed less profitable adding operations in printers within our activities and focus on Brazil and China and global cloud
Slide 75: Investing in the Future
INVESTING IN THE FUTURE CHUCK HULL FOUNDER AND CHIEF TECHNOLOGY OFFICER MANUFACTURINGTHE FUTURE
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Slide 77: The Next Phase: MicroSLA
MicroSLA is widely used by dental technicians, jewelry designers, manufacturers and digital craftsmen Continuous SLA prints is 4X faster than current MircroSLA capabilities in an affordable desktop printer, setting a whole new standard for price THE NEXT PHASE
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Slide 79: Precision Parts Fast
PRECISION PARTS FAST
Slide 80: Fundamental Differentiation
FUNDAMENTAL DIFFERENTIATION aa Technology Competency Coverage Brand Shared elements of Combined impact of Local footprint that Globally recognized broad technology science, technology allows for the effective brand equity that is platform to produce and process expertise, development, shared and lev
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Slide 82: Conclusion
Slide 83: Thank You for Attending Our Wilsonville Analyst Day