Slide 1: Second Quarter 2022 Financial Results
August 9, 2022 Second Quarter 2022 Financial Results ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President and Chief Executive Officer Wayne Pensky Interim Chief Financial Officer Andrew Johnson Executive VP and Chief Legal Officer Russell Johnson To participate via phone, VP, Treasury and Investor Relations please dial: 1-201-689-8345 2 ©2021 3D Syst
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 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 5: Current Business Environment
Current Business Environment • Strong trend of adopting production-scale Additive Manufacturing applications • Industrial • Healthcare • Emerging industries • Complex macro environment creating near-term business headwinds • Macroeconomic factors • Geopolitical tensions • Foreign exchange volatility
Slide 6: Second Quarter 2022 and Recent Highlights
Second Quarter 2022 and Recent Highlights • YoY revenue growth after excluding divestitures: • Total company: 3.2% and 7.8% in constant currency • Industrial: 3.8% and 11.2% in constant currency • Healthcare: 2.9% and 4.7% in constant currency • 10.4% growth for first half of year after excluding di
Slide 7: Regenerative Medicine Highlights
Regenerative Medicine Highlights LIFE ITSELF Conference, June 2022 3D-printed lung is most Dr. Martine Rothblatt of United Therapeutics & Chuck Hull of 3D Systems complex object ever printed unveil a 3D printed human lung scaffold 4,000 km 44 trillion 200 million pulmonary voxels alveoli capillaries
Slide 8: Acquisition Announced August 8, 2022
Acquisition of Agreement Announced August 8, 2022 • Germany-based developer of revolutionary AM platform designed for high-speed mass production of polymer parts • Print heads remain stationary above the rotating platform, providing a continuous print process • Planned integration of dp polar platfo
Slide 9: In Summary
In Summary • Near-term headwinds impacting 2022 outlook • Confidence in our long-term outlook • Investing strategically for long-term growth 9 ©2022 3D Systems, Inc. | All Rights Reserved. ©2021
Slide 10: Wayne Pensky, Interim CFO
Wayne Pensky Interim CFO 10 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 11: Q2 Summary
Q2 Summary • Q2 revenues decreased 13.8% year over year • Q2 revenues excluding divestitures and in constant currency increased 7.8% • Revenues also impacted by exit from Russia and supply chain disruptions • GAAP loss per share of ($0.26), includes ($0.09) from est. non-recurring legal costs & othe
Slide 12: Revenue by Segment
Revenue by Segment (Excluding Divestitures) $ in millions Healthcare Revenue Q2 YoY Industrial Revenue Q2 YoY +2.9% +3.8% $71.7 $69.7 $68.3 $65.8 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Slowdown in growth driven by softer Sixth consecutive quarter of year- demand in elective procedures. over-year growth. 4.
Slide 13: Gross Profit Margin
Gross Profit Margin 50% 45% 44% 42% 41% Q2 2022 vs Q2 2021 40% 40% • Increase in component costs and freight 38% • Impact of divestitures 35% • Small impact from mix 30% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 13 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 14: Non-GAAP Operating Expenses Excluding Divestitures
Non-GAAP Operating Expenses Excluding Divestitures Non-GAAP excluding divestitures $57.8 $60.9 $60 $54.3 $48.9 $49.4 Q2 2022 vs Q2 2021 $ in millions $40 • About half of increase is from acquisitions • Increased R&D to enhance product portfolio $20 • Investing in infrastructure $0 Q2 2021 Q3 2021 Q4
Slide 15: Adjusted EBITDA Margin
Adjusted EBITDA Margin Defined as non-GAAP Operating Income excluding divestitures plus Depreciation divided by Revenue 15.0% 11.9% 9.6% 10.0% 8.4% Q2 2022 vs Q2 2021 5.0% • Impact from acquired businesses, most are in 1.4% development stage or early commercialization 0.0% • Increased input costs -1
Slide 16: Strong Balance Sheet
Strong Balance Sheet • Ended the quarter with $638.2 million dollars of cash and short-term investments on hand • We have sufficient cash to support organic growth, including in regenerative medicine • Invested $83.3 million in acquisitions and investments in first half of 2022 • Anticipate taking a
Slide 17: Updated 2022 Outlook
Updated 2022 Outlook Revenue between Softening demand environment and delaying of $530 million and $570 million customer orders FX impact is estimated $20 million reduction Non-GAAP Gross Margins between Higher input costs and supply chain disruptions 39% and 41% Non-GAAP Operating Expenses Investme
Slide 18: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 18 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 19: Q&A Session
Q&A Session 1-201-689-8345 19 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 20: Thank You
Thank You Find out more at: www.3dsystems.com 20 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 21: Appendix
Appendix ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 22: 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 23: Non-GAAP Reconciliation – Quarter Ended June 30, 2021
Non-GAAP Reconciliation – Quarter Ended June 30, 2021 (Unaudited) 23
Slide 24: Non-GAAP Reconciliation – Quarter Ended Sept. 30, 2021
Non-GAAP Reconciliation – Quarter Ended Sept. 30, 2021 (Unaudited)
Slide 25: Non-GAAP Reconciliation – Quarter Ended Dec. 31, 2021
Non-GAAP Reconciliation – Quarter Ended Dec. 31, 2021 (Unaudited)
Slide 26: Non-GAAP Reconciliation – Quarter Ended March 31, 2022
Non-GAAP Reconciliation – Quarter Ended March 31, 2022 (Unaudited)
Slide 27: Non-GAAP Reconciliation – Quarter Ended June 30, 2022
Non-GAAP Reconciliation – Quarter Ended June 30, 2022 (Unaudited) 27
Slide 28: Non-GAAP Operating Income to Adjusted EBITDA Reconciliation
Non-GAAP Operating Income to Adjusted EBITDA Reconciliation 28
Slide 29: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue(1) (in Millions, Unaudited) (1) Amounts in table may not foot due to rounding (2) To assist in the analysis of the Company’s revenue trends, the company estimated the impact of foreign exchange on year over year revenue growth by recasting revenue, exclu
Slide 30: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue(1) (in Millions, Unaudited) (1) Amounts in table may not foot due to rounding (2) To assist in the analysis of the Company’s revenue trends, the company estimated the impact of foreign exchange on year over year revenue growth by recasting revenue, exclu