3d Systems Corporation · NYSE:DDD
3d Systems — Investor Presentation (December 2011)
34 slides from 3d Systems's investor presentation, Dec 8, 2011
Slide 1: Investor Presentation December 2011
> — i — Investor Presentation December 2011
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 statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, perfo
Slide 3: Business Highlights
Business Highlights Leadership through technology & business innovation Compelling razor & blades model, comprehensive solutions portfolio } High-growth potential, attractive addressable marketplace Diversified revenue source, expanding margins Multiple sales channels, rapid reseller network expansi
Slide 4: Global 3D Content-To-Print Leader
Global 3D Content-To-Print Leader << ~700 employees ~900 patents ;
Slide 5: Attractive Addressable Marketplace With High Growth
Attractive Addressable Marketplace With High Growth Industry Revenue USD in millions Ssoommition $6,000 $5,050 $5,000 4,000 $4,000 ke $500 Million, eee SLBillion 3, 900 $3,000 $2,100 $2,000 47-509 $500 Mili $1,000 | $0 Source: 30 Stems 2012 2014 2016 2018 2020 Source: Wohlers Associates Our solution
Slide 6: Growth Indicators
Growth Indicators electronics, health & automotive ‘Absolute US Dollar Change in 2008-2010 RED Spend by Industry a ge —~——-— gs 1000 Total ~ $1,150Bn Our study captures ~48% of total Global R&D Global R&D sp Source: Booz and Company and 3D Systems
Slide 7: Expanding Technology Platform
Expanding Technology Platform V Patents Issued & 6 Print oes Engines Plugins BI y, Software /j 90 Print Materials y ecommerce - Expertise y/
Slide 8: Extending Global Reach & Local Presence
Extending Global Reach & Local Presence Europe / United States | tae Rock Hl SC net o -Germany =ttaly jeeriand Valencia, CA Singapore Vernon Hills IL 7 3 New Territorie: 98 New Resellers 14 New Services Facilities y ¥ ina, India & Australia
Slide 9: Compelling Value Proposition
Compelling Value Proposition Enables freedom Compresses lead- of creation times : — > Reduces tooling Cuts inventory cost << § capital investment 2 SSL Se rw, rersonalizatiog iF Mini Te N pS eI ~ x AY —< Simplifies supply- 8 — chain
Slide 10: Impressive Customer Base
Impressive Customer Base I = es =» aoc 3M tea wom; Beast = | a= | = ay DELPHI GP @ meneen H le, > ' sie 1 ufirsu FUN XEROX | AIRBUS [ojufeoyy {aac oo, ' WIDEX [/ : 7 : si ‘ & Isuzu : GEE «61s t H 4 : t ray one H a : H sia SONY : i $suzuKt @Toyora
Slide 11: Diversified Revenue Sources
Diversified Revenue Sources Content Downloads Printer 3D Printers Services Design Productivity Tools Custom Parts Services Print Materials |) 1e composition Printers Services 41% Materials 31%
Slide 12: Comprehensive Printer Portfolio
Comprehensive Printer Portfolio Personal 3D Printers Professional 3D Printers Price: $1,300 - $14,500 Price: $49,000 - $225,000 Price: $250,000 - $950,000
Slide 13: Extensive Materials Breadth
Extensive Materials Breadth High-Definition Snapfit High- Impact Light-Weight Durable High-Temperature CD > EE > I © » oo Casting eo
Slide 14: Full Range Content-To-Print Tools And Services
Full Range Content-To-Print Tools And Services Content Creation eet eet Price: $199 - $1,999 Price: $9 - $999 Software Products
Slide 15: Our Advantage
sto vantage We offer a comprehensive tool box... we sell our customers the right tool for the right job Our competitors sell different size hammers... to them every application looks like a nail
Slide 16: Focused Growth Initiatives
Focused Growth Initiatives Expand on- demand custom parts global services Accelerate 3D printer penetration Build consumer content products and services Grow healthcare solutions revenue
Slide 17: Revenue From Growth Initiatives
Revenue From Growth Initiatives $in millions Nine Months Ended September 30** Printers 2020 | $34.0 a ad 61s Print 2010 { $418 Materials 3505 2010 $32.5 Services = “207. $ 65.6 2010 { $145 Healthcare ad $109 48% total revenue growth 20% organic revenue growth
Slide 18: Balanced Revenue Composition — September 30
Balanced Revenue Composition — September 30* Category Geography ——>E—>——>EEE———E———E=~* 160 140 2120 Ss 2100 e & 80 $108.3 30% 39% Services Materials Printers s 2011 recurring revenue aci $160.6 41% 31% 28% 2011 Asia Pacific Europe North America ‘or 72% of total revenue $160.6 13% 35% 52% 2011
Slide 19: Performance Drives Productivity And Profitability
Performance Drives Productivity And Profitability Last 3 years -first nine calendar months- comparison 2010 Vs. 2009 % change 2011 Vs. 2010 % change 42% 48% 62% 273% 46% 55% 510% 109% 388% 43% 467% 91% -Percents are rounded to nearest whole numbers -EPSin prior year restated to reflect stock split c
Slide 20: New Products Fuel Growth
New Products Fuel Growth Commeriize 3 new produce 201 yard ‘New Products Nine M sRevenue Printers 22% Print Materials 43% 9 months, 2009 9 months, 2010 9 months, 2011, 2011 First Nine Months Revenue Elements Comparison to 2010 Integrated materials amounted to 52% of total materials revenue New produ
Slide 21: Acquisition Track Record
Acquisition Track Record - Aug 2009-A We acquired 19 companies from August 2009 to Au 10 related to on-demand parts | 5 building blocks for consumer services growth initiative growth initiative 4 tuck-ins related to our printers businesses We financed these acquisitions primarily from our free cash
Slide 22: Disciplined Acquisition Integration Process
Disciplined Acquisition Integration Process Integration plan completed prior to closing Acquisition accounting completed in the current period Synergies run-rate realized first full year Purchase-to-pay and order-to-cash integrated within 5 days Facilities consolidated as required within 6 months Al
Slide 23: September-November 2011 Acquisitions Highlights
September-November 2011 Acquisitions Highlights Compelling razor and “ blades businesses with Differentiated Extends our geographic accretive margins technology with reach and local speed and full color presence capabilities Doubles reseller Immediately accretive channel and access to cash generatio
Slide 24: Strategically Compelling Financially Attractive
Strategically Compelling Financially Attractive ‘*Compliments our printers & materials portfolio with significant technology assets ‘Status: On track to be fully integrated by year-end Acquired businesses generated $75 million for trailing 12 months ended June 2011 We paid 2.5X consolidated trailing
Slide 25: Huntsman Expands Our Materials Portfolio & Margins
Huntsman Expands Our Materials Portfolio & Margins Complements our Brings significant Extends our product portfolio technology assets healthcare solutions 25 complementary = 373 patents issued & materials e applied
Slide 26: Z Corp Provides Instant Scale and Stakeholders Value
Z Corp Provides Instant Scale and Stakeholders Value Ded Combination de! Highly Complementary Broadens Vertical complementary reseller channels reach Into MCAD, printers and scanners doubles coverage and ARCH & Consumer offer full color accelerates growth differentiation and speed advantage
Slide 27: Complements Price Points & Performance
Complements Price Points & Performance Personal 3D Printers Professional 3D Printers Production 3D Printers Gos] ow eo 8 e-a Price: $49,000 - $199,000 Current Price: $250,000 - $950,000 Price: $1,300 - $15,000 Price: $20,000 - $225,000 Price: $250,000 - $850,000
Slide 28: Expands Content-To-Print Tools and Services
Expands Content-To-Print Tools and Services Content Creation Content Downloads On Demand Parts Bez] EES) >= |I Price: $199 - $1,999 Price: $9 - $999 Price: $25-$2,500 Content Capture oP aS,
Slide 29: Vidar Catalyzes Healthcare Growth Initiative
Vidar Catalyzes Healthcare Growth Initiative Leadership in medical film scanning solutions for Mammography, PACS, Teleradiology, Oncology, Dosimetry, and Dental 100 reseller strong Substantial installed based network instantly presets multiple cross multiplex our healthcare selling upseliing and lon
Slide 30: Favorable Pro Forma Revenue Mix
Favorable Pro Forma Revenue Mix sed On Huntsman, Kemo, Formero, Z Corp, & Vi hs: 0 Combined Revenue Snapshot x Printers sences s meee ES ae. | Y % Prints < me @ 30% om g & Materials masta verse Personal & Pemonal oan otra Producten 6% i & Pectonl& Professions! Recurring revenue consistent Desirable
Slide 31: Recent Acquisitions Scale Our Target Operating Model
Recent Acquisitions Scale Our Target Operating Model GAAP {Smilionsy Drivers Model Ranges Revenue Gross Profit Operating Expenses Operating Income Net Income After Tax* Capital Expenditures Recurring Revenue Depreciation & Amortization Intangibles Amortization Non-GAAP Adjustment Non-cash Compensati
Slide 32: May-December 2011 Target Model Bridge
May-December 2011 Target Model Bridge (§ milions) May low goal-post* December high goal-post Revenue $200 $500 56% 60% Gross Profit Operating Expenses 25% 21% 31% 41% Operating Income Net Income After Tax* Compared to May non-GAAP model: Earning power Timeline remained Revenue range doubled increase
Slide 33: Bottom Line
Bottom Line Leadership through technology & business innovation Compelling razor & blades model High-growth potential Diversified revenue source with expanding margins Significant value creation potential for all stakeholders 33
Slide 34: Thank You
> — i — Thank You