Slide 1: Stratasys Q1 2016
STRATASYS Q1 2016 May 9", 2016
Slide 2: Conference and webcast information
Pstretasye Conference and webcast Speekers Live Dialin . Information details David Reis Primary Dial-in: CEO 855-319-2216 Intemational Dial Erez Simha COO & CFO 503-343-6033 Participant Shane Glenn Passcode: VP, Investor 90420507 Relations Live webcast and replay:
Slide 3: Forward Looking Statement
Forward Looking Statement ‘The statements in this presentation regarding Stratasys' belief that its comprehensive new strategy will help grow its markets, and the statements regarding its projected future financial performance, including under the heading “Financial Guidance,” are forward-looking st
Slide 4: David Reis - CEO Opening Remarks
David Reis -CEO Opening Remarks > First quarter results reflect significant progress in improving financial performance - despite challenging market environment > Desktop adoption accelerating creating both opportunities and challenges — company well positioned > Successful launch of Stratasys J750
Slide 5: Financial Update and Guidance
Erez Simha — CFO and COO Shane Glenn — VP of Investor Relations Financial Update and Guidance
Slide 6: Financial Results - Non-GAAP
Financial Results - Non-GAAP Stratasys, Ltd. 796] 6125 Total Revenue sizz| sere Revenue Employee e056] 0068 ‘Grose Profit 33.4 a noe Revenue Growth J 3% YOY Se msrgin sai | 55.1% ‘Operating Gxpenses 942 285 bon 7 crown BW t%vov ores s4sm| 827% i: re Revenue Growth | ‘Dperatng Prot 08) 40 tears oa |
Slide 7: Financial Results - Non-GAAP
Financial Results - Non-GAAP Stratasys, Ltd. ‘System Revenue J 14% YOY Consumable Revenue i 6% YOY Customer Support Revenue i 11% YOY Total Revenue - Quarter se sive 464 3493 1.2015 Q1-2016 Total Revenue —Quarterty Trend sia sims sata ssi8 ants ass ants ane reat @ ne aco ae soni can (inmost ated ath
Slide 8: Financial Results — System Unit Sales
Financial Results — System Unit Sales Stratasys, Ltd. + Company sold 5,125 3D printing and additive manufacturing systems during Q1 + On a pro-forma combined basis has sold cumulative 151,149 systems worldwide as of March 31, 2016 + Units sales increased 11% QIQ driven by higher MakerBot unit sales
Slide 9: Financial Results - Non-GAAP
Financial Results —- Non-GAAP Stratasys, Ltd. Gross Margin — Quarterly Trend eae ee == er fr at ale = ed focal er eis ats ONS (6 inmilions unless noted atharwise) 4 eases HF seme sous cour ‘Stratasys
Slide 10: Financial Results — Operating Profit Non-GAAP
Financial Results — Operating Profit Non-GAAP Stratasys, LTD. Operating Exp. J 6% YOY, 4% Q0Q R&D Exp. J 7% YOY SG&A Exp. J 6% YOY EE Operating Profit Analysis — Quarterly Trend cael en ont] — wal afew 215 ane (Sin mons unless note ethene) © k1obemn stn) Skene ales) @ Sse 2 araras 720 mame soumons c
Slide 11: Financial Results - Revenue Geographic Mix Non-GAAP
Financial Results - Revenue Geographic Mix Non-GAAP Stratasys, Ltd. + Results reflect continuation of challenging market environment observed throughout 2015 Geographic Sales Q1-2015 Geographic Sales Q1-2016 \ ‘ en aa a bela ew be Om 1 srearaS THE 20 pn soLATON coum ‘Stratasys
Slide 12: Financial Results — Balance Sheet Summary
inancial Results — Balance Sheet Summary Stratasys, Ltd. + Cash, Cash Equivalents & Bank Deposits of $280.2 million + Cash from operations improved to $31.6 million, driven by cost cutting initiatives and improved working capital management ‘Selected balance sheet tems inmillons) Cash, Cash Equivale
Slide 13: Financial Summary
Financial Summary > First quarter results in line with expectations for the year — no change in market environment from the end of 2015 > Positive trend in gross margins — driven by manufacturing efficiencies and product mix > Operational improvements led to favorable trends in expenses, profitabili
Slide 14: Revenue & Earnings Guidance — Full Year 2016
Revenue & Earnings Guidance — Full Year 2016 Non-GAAP Reconeillation of GAAP to Non-GAAP Guidance Revenue (M) $700-$730M rman =e (f) Stock seed Compensation xp s25.0827 (2) Intangible Assets Amortization Exp $50 Non-GAAP Diluted EPS (@) Merger Related Expences, a (4) Reorganization and other related
Slide 15: Strategic Overview
STRATEGIC OVERVIEW
Slide 16: Prototyping Market Update
Prototyping Market Update Desktop Unit penetration has increased for prototyping applications Y 60% to 70% of designers and engineers who have adopted 3D printing technology are using desktop units for some prototyping applications* Desktop adoption will continue to grow V Over 50% of customers who
Slide 17: Prototyping Market Update
Prototyping Market Update Stratasys is well positioned to continue leading in prototyping: ¥ Leadership position in both the professional and desktop segments — industry's largest installed base of systems worldwide v Market leading brands and ecosystems, including the largest online 3D printing com
Slide 18: Leading in Prototyping — Stratasys J750 Launch
Leading in Prototyping — Stratasys J750 Launch The Stratasys J750 is a milestone in 3D printing: Y Full color + Multi-Material (unique to J750) V True-To-Life Prototypes Y One-Stop 30 Printed Realism and Versatility Y Cost/Resource Efficiencies Y Accelerated Product Delivery
Slide 19: Vertical Business Units
Vertical Business Units Vertical Business Units Outperformed Non-Vertical Areas ¥ Driven by Aerospace (+14% YOY) and Medical (+22% YOY) Aerospace is key vertical with high manufacturing requirements ¥_ Near-term applications for aircraft interiors ¥ Longer-term opportunities for secondary structures
Slide 20: David Reis — CEO Summary & Outlook
David Reis — CEO Summary & Outlook > First quarter results reflect continuation of challenging market environment, but improved financial performance > Observing shifts in prototyping market as desktop units increasingly used for concept modeling and rapid prototyping applications > Maintaining lead
Slide 21: We Are Stratasys
WE ARE STRATASYS THE 3D PRINTING SOLUTIONS —
Slide 22: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. SU6e5r S Susser | srasse s SHBESE [costot sales magn st) B48 Eo 0058) 25107 Zaz RTE ETS] Fao cn 757 70,608 (13.28) Netincome (as) Nstincome (oss) per ordinary shore atibuabeo Stalasys gn, Lc (ea) eae ean EAE ETE) epi por share
Slide 23: Reconciliation of Non-GAAP Adjustments
Reconciliation of Non-GAAP Adjustments Stratasys Ltd. cured ning ares ANON OCIS TTT SS a isa SS ee a oa rzaton a ir eae coe a0 re ord accion cated nee ca a So Se ai a Ts abe ass roam nc ck boda caenaaton SS TREE eactamnatrtD EET apenas OO CRA uenen cn KTS (S in thousands) 2 ararasy 720 mame soumons