Slide 1: Third Quarter & Nine Months 2015 Conference Call and Webcast
aN Y es C — > BDSYST EMSs THIRD QUARTER & NINE MONTHS 2015 CONFERENCE CALL AND WEBCAST MANUFACTURINGTHE FUTURE WWW.3DSYSTEMS.COM| NYSE:DDD-
Slide 2: Participants
PARTICIPANTS Wally Loewenbaum * Chairman of the Board of Directors Chuck Hull * Executive Vice President; Chief Technology Officer Andy Johnson * Interim President & CEO; Chief Legal Officer Dave Styka * Executive Vice President; Chief Financial Officer Mark Wright * Executive Vice President; Chief
Slide 3: Welcome Webcast Viewers
WELCOME WEBCAST VIEWERS To listen to the conference via phone and to ask questions during our Q&A session, please dial: * 1-877-407-8291 in the United States * 1-201-689-8345 from outside the United States
Slide 4: Forward Looking Statements
FORWARD LOOKING STATEMENTS ‘This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, develop
Slide 5: Andy Johnson
COMPANY UPDATE Andy Johnson Interim President & CEO and Chief Legal Officer MANUFACTURING? HE FUTURE
Slide 6: Executive Management Committee
EXECUTIVE MANAGEMENT COMMITTEE g 6 Andy Johnson We established an Executive Management Committee to provide ongoing leadership and to support companywide operations and strategic initiatives.
Slide 7: Third Quarter 2015 Overview
THIRD QUARTER 2015 OVERVIEW r Revenue decreased 9% to $151.6 million, or 3% on a constant currency basis 3 r Gross profit margin decreased 90 basis points to 46.9% XV r Sequentially, operating expenses remained flat at $105.7 million and cash operating expenses decreased 8% \ GAAP loss of $0.29 per
Slide 8: Operations Update
OPERATIONS UPDATE Mark Wright Executive Vice President and Chief Operating Officer MANUFACTURING? HE FUTURE
Slide 9: 3D Printers
3D PRINTERS We believe that residual reputational damage as a result of our earlier printer performance issues impeded our sales efforts in the quarter, but we are intensely focused and fully committed to achieving category leading printer performance and quality. r During the third quarter, we cont
Slide 10: Partners
PARTNERS y We continued to build out our Partner Xcel program and expanded and refined lead generation, forecasting, training and service tools to improve productivity and profitability for us and our partners. a P We expanded our partnerships with Phillips Corporation, U.S. Army Research Lab and Pe
Slide 11: Productivity
PRODUCTIVITY Charlie Grace joined as Chief Revenue Officer, Professional Products, leading all of our professional and production 3D printer related revenue generation activities worldwide. ~ Proven industry sales leader, Michele Marchesan, is spearheading our efforts to build an effective partner c
Slide 12: Financial Review
FINANCIAL REVIEW Dave Styka Executive Vice President and Chief Financial Officer MANUFACTURING? HE FUTURE
Slide 13: GAAP Operating Results
GAAP OPERATING RESULTS ‘Sin millions, except earnings per share Third Quarter Nine Months 2015 2014 2015 2014 Revenue $151.6 $166.9 $482.8 $466.2 Gross Profit $71.0 $79.8 $231.6 $227.7 Gross Profit Margin 46.9% 47.8% 48.0%. 48.8% (Operating Expenses $105.7 $71.6 $307.7 $205.6 % of Revenue 69.7% 42.9
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Third Quarter Nine Months (Sin mittions, except per share amounts) 2015 2014 2015 2014 GAAP net income (loss) attributable to 3D Systems (§ 32.2) $31 (S 59.1) $101 Cost of sales adjustments: Amortization of intangibles $01 $01 $02 $02 Operating expense adjustments: Amortizati
Slide 15: Revenue Highlights
REVENUE HIGHLIGHTS Siniions Quarter Nine Months $170.5 9151.6 BL) sr aa sasae suis cams ums aus azo, as 2013 2oue 2ois eign Manutactig sConsimer fbedgn& Manwacting mConsemer Third Quarter Nine Months Design & Manufacturing revenue down 9% YOY Design & Manufacturing revenue up 2% YOY g & Consumer rev
Slide 16: Revenue by Category & Geography
REVENUE BY CATEGORY & GEOGRAPHY Sinmiions Category Geography 180 $160 seo $160 suo suo $120 sv 100 $100 so $00 se $0 so s so $2 $0 so ae 2a 2014 201s srotits Nts a Sites eAmerione MFUEA a AsnPac + Products revenue decreased 27% to $52.9 million * Americas revenue decreased 11% to $80.7 million * Mat
Slide 17: Gross Profit Margin
GROSS PROFIT MARGIN Sinmllons Third Quarter 2015 2014 Yr-Yr % Change Gross Gross Profit Gross Profit] Gross | Profit Category Gross Profit | Margin | Gross Profit | Margin | Profit | Margin Products $12.8 24.2% $25.8 35.3% | (50.2%)| (31.4%) Materials $26.5 75.9% $28.5 73.1% _| (7.3%) | 3.8% Service
Slide 18: Operating Expenses
OPERATING EXPENSES Third Quarter GAAP Operating Expenses Non-GAAP Operating Expenses. YOY Change YOY Change Favorable/ Favorable/ Category 2015 2014 {Unfavorable) | _Q3 2015 Q3 2014 | (Unfavorable) R&D $225 $179 (25.3%) $225 $17.9 (25.3%) % of Revenue 15% 1% 1586 1% SG&A $83.2 $53.7 (55.1%) $46.7 $3
Slide 19: Working Capital
Sinmilons WORKING CAPITAL % Change Favorable/ September 2015| December 2014 | (Unfavorable) Cash S15725 S$ 284.9 (44.7%) Accounts Receivable $ 134.5 $ 168.4 20.1% Inventory $ 138.2 $ 96.6 (43.0%) Accounts Payable $48.5 S 64.4 24.7% Working Capital $ 339.3 $ 432.2 (21.5%) Tables may notfoot dv to rou
Slide 20: Reorganization and Cost Reduction
REORGANIZATION AND COST REDUCTION r While we are continuing investments in new products, quality and partner centric initiatives, we are taking decisive steps to reduce our cost structure and better prioritize our resources. rr These measures include additional consolidation of facilities, headcount
Slide 21: Q&A Session
a Q&A SESSION Out of respect for other conference call pa then return to the queue to ask addi pants, please ask one question and nal questions Please direct all questions through the teleconference portion of this call To ask questions: © U.S.: 1-877-407-8291 * International: 1-201-689-8345
Slide 22: Thank You
Z 1} 1 ay W CA — BDSYST EMSs THANK YOU MANUFACTURINGTHE FUTURE WWW.3DSYSTEMS.COM| NYSE:DDD-