Slide 1: Fourth Quarter 2022 Financial Results
March 1, 2023 Fourth Quarter 2022 Financial Results
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Michael Turner Executive Vice President & Chief Financial Officer Andrew Johnson Executive Vice President & Chief Legal Officer Russell Johnson To participate via phone, Vice President, Treasury & Investor Relations plea
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncert
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4
Slide 5: 2022 Highlights
2022 Highlights • Challenging 2022 business environment • Macroeconomic and geopolitical headwinds • Softer dental market demand due to inflationary pressure on elective procedures • Pivoted in second half of year to finish near revised guidance • Efficiency gains from manufacturing in-sourcing • 20
Slide 6: New Hardware Platforms Driving Growth
New Hardware Platforms Driving Growth SLA 750 & SLA 750 Dual MJP 2500W Plus • April 2022 – 3D Systems launches new SLA 750 • Feb 2023 – 3D Systems launches MJP 2500W Plus • Feb 2023 – BWT Alpine F1 acquires four SLA 750s Next-generation printer for higher throughput, higher resolution jewelry wax ca
Slide 7: Accelerating Innovation thru Acquired Technology
Accelerating Innovation thru Acquired Technology University Hospital Salzburg 1st clinical implantation of PEEK cranial Salzburg, Austria - February 2023 device printed on a Kumovis printer 7
Slide 8: Investing in Regenerative Medicine
Investing in Regenerative Medicine 3D Systems Bioprinting 35+ Years of developing advanced 3D printing Organ development Acquired in 2021 to expand Leadership applications partnership since 2017 bioprinting capabilities Human Organs Regenerative Tissue Program Drug Development Vascularized Breast Ti
Slide 9: 2023 Priorities
2023 Priorities ✓ Harvest benefits of technology platform investments ✓ Invest in regenerative medicine for future growth ✓ Continue to optimize manufacturing footprint ✓ Organization-wide focus on cost synergies & operational excellence ✓ Break Even to Positive Adjusted EBITDA and FCF 9
Slide 10: Michael Turner
Michael Turner Chief Financial Officer 10
Slide 11: Q4 & FY 2022 Revenue Summary
Q4 & FY 2022 Revenue Summary Full Year 2022 • FY 2022 revenue - $538.0 million ➢ Divestiture Impact • 12.6% decrease vs. FY 2021 ➢ Significant FX headwinds • 3.3% increase vs. FY 2021 excluding divestitures and in constant currency ➢ Russia exit reduced FY 2022 results ➢ Dental market softness signi
Slide 12: Revenue by Segment
Revenue by Segment ($ millions except percentages) Full Year 1 Fourth Quarter $74.5 -18.5% $274.4 $60.7 -4.9% Healthcare $261.0 Solutions FY 2021 FY 2022 Q4 2021 Q4 2022 $277.0 $76.4 -5.7% +2.8% Industrial $72.0 $269.6 Solutions FY 2021 FY 2022 Q4 2021 Q4 2022 1 Adjusted for Healthcare down 2.9% Con
Slide 13: Gross Profit Margin
Gross Profit Margin (non-GAAP) 50% FY 2022 vs. FY 2021 FY 2022 – 39.8% • FY 2022 GM% of 39.8% vs. FY 2021 42.5% 45% 44% • Impacted by divestitures, inflation, freight, and mix 40% 41% 40% 40% Q4 2022 vs. Q4 2021 38% • Q4 2022 GM% of 40.9% vs. Q4 2021 44.1% 35% • Impacted by divestitures, inflation,
Slide 14: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses (Non-GAAP excluding Divestitures - $ millions) FY 2022 – $241.1 million $80 FY 2022 vs. FY 2021 $64.1 $57.8 $60.9 $58.3 • Non-GAAP opex of $241.1 million $60 $54.3 • 22.1% increase vs. FY 2021 • Acquisition opex $40 • Increased R&D to enhance product portfolio and build r
Slide 15: Adjusted EBITDA & Adjusted EBITDA Margin %
Adjusted EBITDA & Adjusted EBITDA Margin % (Excluding Divestitures - $ millions) $50 20% $40 11.9% 15% FY 2022 Adjusted EBITDA - ($5.8) million $30 10% $17.9 Q4 2022 Adjusted EBITDA – ($4.8) million $20 1.4% 5% -0.2% -1.9% • Impact from acquired businesses, $10 -3.8% 0% $1.9 most of which are in dev
Slide 16: Strong Balance Sheet
Strong Balance Sheet • Ended the quarter with $568.7 million dollars of cash and short-term investments • We have sufficient cash to support organic growth, including in regenerative medicine • Invested $104.3 million in acquisitions and investments in FY 2022 • Current focus is on operational execu
Slide 17: Financial Guidance
Financial Guidance Full Year 2023 Guidance Comments • 4% revenue growth (midpoint) Revenue $545 – $575 million • Mid-teens revenue growth ex-dental • Reflects ➢ YoY decline in dental revenue Non-GAAP ➢ YoY increase in investment 40% – 42% Gross Margin spending for regenerative medicine • Adjusted EB
Slide 18: Q&A Session
Q&A Session 1-201-689-8345 18
Slide 19: Thank You
Thank You Find out more at: www.3dsystems.com 19
Slide 20: Appendix
Appendix ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 21: Presentation of Information
Presentation of Information 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP revenue excluding divestitures and on a constant currency basis (sometimes referred to as excluding divestitures and FX eff
Slide 22: Non-GAAP Reconciliation – Quarter Ended Dec. 31, 2021
Non-GAAP Reconciliation – Quarter Ended Dec. 31, 2021 (Unaudited) 22
Slide 23: Non-GAAP Reconciliation – Quarter Ended March 31, 2022
Non-GAAP Reconciliation – Quarter Ended March 31, 2022 (Unaudited) 23
Slide 24: Non-GAAP Reconciliation – Quarter Ended June 30, 2022
Non-GAAP Reconciliation – Quarter Ended June 30, 2022 (Unaudited) 24
Slide 25: Non-GAAP Reconciliation – Quarter Ended Sept. 30, 2022
Non-GAAP Reconciliation – Quarter Ended Sept. 30, 2022 (Unaudited) 25
Slide 26: Non-GAAP Reconciliation – Quarter Ended Dec. 31, 2022
Non-GAAP Reconciliation – Quarter Ended Dec. 31, 2022 (Unaudited) (1) 26
Slide 27: Non-GAAP Operating Income to Adjusted EBITDA Reconciliation
Non-GAAP Operating Income to Adjusted EBITDA Reconciliation (in Millions, Unaudited) (in millions) Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Revenue - 2021 excludes revenue from divestiture $ 150.9 $ 133.0 $ 140.0 $ 132.3 $ 132.7 Non-GAAP Operating (loss) income 12.3 (3.9) (7.6) (5.5) (9.9) Depreciati
Slide 28: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue(1) (in Millions, Unaudited) 28
Slide 29: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue(1) (in Millions, Unaudited) 29