3d Systems Corporation · NYSE:DDD
3d Systems — Investor Presentation (January 2004)
45 slides from 3d Systems's investor presentation, Jan 7, 2004
Slide 1: 3D Systems: Customer Driven Solid Imaging Solutions
SYSTEMS oe Customer Driven Solid Imaging Solutions NASDAQ: TDSC www.3dsystems.com
Slide 2: Forward-looking statements
Certain statements made by the company in this presentation are forward looking statements. These statements include comments as to the company’s beliefs and expectations as to future events and trends affecting the company’s business. These forward-looking statements are based upon management's cur
Slide 3: A Global Leader
A Global Leader Solid Imaging Solutions for: Customer Driven Solid Imaging Solutions $116 MM sales in 02 HQ in Valencia, CA 407 employees 359 patents worldwide Pioneered emergence of industry in 1987 3 technology platforms Global presence Largest direct field sales & service force NASDAQ: TDSC ys
Slide 4: E
NASDAQ: TDSC Customer Driven Solid Imaging Solutions E
Slide 5: Multi-Jet Modeling, Stereolithography, Selective Laser Sintering
Multi-Jet Modeling Stereolithography Selective Laser Sintering SLA® systems SLS © systems ay Vanguard SLS system Viper SLA system Vanguard HS SLS system SLA 5000 system SLA 7000 system Thermfoet® printer EE printer =i Ww Customer Driven Solid Imaging Solutions 6 NASDAQ: TDSC gysteus
Slide 6: soon + HatzproguctesL.a roo etm
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Slide 7: Benefits of solid imaging
e “or + Fast prototyping, earlier product design verification & creation of functional parts + Rapid production-quality prototypes or end-use parts + Instant direct manufacturing of end-use parts + Reverse engineering, part re-creation + Quick tooling to manufacture end-use parts + Diverse parts wit
Slide 8: Customers by industry
Governm entiMilitary 6% Medical Motor Vehicles 10% | 26% Academic Institutions 9% Consumer Products \_ Aerospace 24% 9% Business Machines T% Source: Wohlers Associates, Inc. Customer Driven Solid Imaging Solutions
Slide 9: We Cover 80% of the World
i 4 long Kong Japan We Cover 80% of the World Customer Driven Solid Imaging Solutions Ss NASDAQ: TDSC sys
Slide 10: Customer logos
RENAULT B- HasBRO Customer Driven Solid Imaging Solutions
Slide 11: Global sales
Global sales Mi
Slide 12: Sales and EBITDA 1999-2003
$ Millions 120 Z a, 10077 9 mos YTD. 8077] - 6077 | L Sales a = EBITDA 2077] ald -20 1999 2000 2001 2002 2003 Customer Driven Solid Imaging Solutions 2 NASDAQ: TDSC Sy Sycys
Slide 13: EBITDA reconciliation
(Restated) (Restated) YTD ‘03 Net Income $(5,301) $ 7,870 $ (2,357) $(14,866) $ (14,414) Interest 212 335 1,601 2,993 2,438 Tax Expense/ (Benefit) (2,240) 4,309 (992) 8,909 1,109 Depreciation & Amortization 6,608 6,245 7,704 9,902 6,782 EBITDA $(1,261) $18,759 $ 5,956 6,938 $ (4,085) Customer Driven
Slide 14: Unit sales growth and forecasts
Unit Sales Growth & Forecasts No. of Models Being Produced 2.500 2000 4,500 4,000 - 500 ‘Millions of Models SSHP KS GH oH 198 1999-2000 20012002 Source: Wohlers Associates, Inc. Customer Driven Solid Imaging Solutions a NASDAQ: TDSC Sy Sycys
Slide 15: Opportunity
opportuni + Leading market position.... and technology + Deep, diverse customer relations; broad installed base + Global reach; geographical presence But.... Customer Driven Solid Imaging Solutions he NASDAQ: TDSC sys
Slide 16: Recent significant changes within the Company
Recent significant changes within the Company’s management, its Strategic direction, guiding principles and operating focus.... Customer Driven Solid Imaging Solutions ci NASDAQ: TDSC gy,
Slide 17: New management team
ant i, President & CEO — Sept. 03 (SEE) , VP & CFO — Dec. 03 (TNB) y., VP General Counsel - Nov. 03 (SEE) , EVP & CTO - Oct. 03 (TDSC) Alea, VP Global Marketing - Oct. 03 (TDSC & GE) , VP Global Services — Oct. 03 (TDSC & ATSI) , VP Operations — Oct. 03 (SEE & McKinsey) , VP Global Sales — Jan. 04 (
Slide 18: New Priorities, Principles & Strategic Initiatives
New Priorities, Principles & Strategic Initiatives... Customer Driven Solid Imaging Solutions a NASDAQ: TDSC
Slide 19: Customer-focused priorities
+ Improve customer’s bottom line + Prioritize around customer needs + Deeper customer relationships + Increase sales and margins + Reduce inventory + Faster collections + Do more with less . .. and faster Customer Driven Solid Imaging Solutions aa NASDAQ: TDSC sys
Slide 20: Operating principles
+ Total employee involvement and training + Faster, simpler business processes + Lean six sigma quality and results + Execution, accountability and ownership + Quick, targeted development cycles + Tactical regional & global expansion + Specialty solutions, channels & brands + Expanded range of custo
Slide 21: Focus on key industries & applications
Focus on key industries & applications Penetrate, expand 3-D printing segment Broaden range of customer services Speed new product development Optimize operations and supply chain Create strong performance & ethical culture Customer Driven Solid Imaging Solutions al NASDAQ: TDSC.
Slide 22: New Operating Focus
New Operating Focus Customer Driven Solid Imaging Solutions aa NASDAQ: TDSC syste
Slide 23: Annual operating expense reduction
+ Annual operating expense reduction: $68 Million — $49 Million - ‘02 Actual Estimated 4Q03 Run Rate ‘Customer Driven Solid Imaging Solutions 23 NASDAQ: TDSC gysteus
Slide 24: YTD Sept 2003 results
2003 YTD Sept Sales 100% Gross Margin 38% Operating Expense 52% Operating Income (15%) Net Income Available to Common (20%) EBITDA (5%) Y Customer Driven Solid Imaging Solutions 24 NASDAQ: TDSC
Slide 25: Recent Financial Improvements
Recent Financial Improvements... Customer Driven Solid Imaging Solutions sil NASDAQ: TDSC
Slide 26: Successful financings
« Successful financings — $15.8 million 8% convertible preferred stock — May ‘03 - $22.7 million 6% convert. subord. debentures — Dec ‘03 « Impacts — Repaid bank loans, removing restrictive covenants — Improved liquidity & working capital — Reduced near-term financial commitments + Working capital i
Slide 27: Pro Forma Capitalization, Sept. 26, 2003
Pro Forma Capitalization -- Sept. 26, 2003* ($ Millions) $10 callable after Dec 04 at 7% premium; 4 convertible to 833,333 shares ($12/Share) Senior Debt $23 callable at par after Dec. ’08; convertible |, | 33 Convertible Subord. Debt to 2,229,862 shares ($10.18/Share) $16 redeemable at Co’s option
Slide 28: Pro Forma 9/26/03 debt maturities
Pro Forma 9/26/03* $ Millions iG Redeemable at 416 30's option A 40+“ ((Gallable at sD'= after May ‘06 @ SANG ce ge option at 7% | $6.00/share; a —]|_ option after Nov 06 premium afterDec [— Sonvertiblet1 at par, convertible 30 x if to 2,634,016 to 2,229,862 shares 04; convertibleto |— shares | ee 2
Slide 29: Interest & dividend obligations
+ Manageable interest & dividend obligations: IDRB & sub. debt interest $2.1 MM Preferred stock dividend 1.3 MM + Deferred tax assets of $25.3 MM at 9/26/03 — Created by NOL carry-forwards — $2-4 million available to offset future income tax liability — Begin expiring in 2011 — Fully reserved Custom
Slide 30: Finance staff and controls
« Supplemented financial staff with new: - CFO — Director Internal Audit — Manager External Reporting Augmenting policies, procedures and controls 100% audit of sales documentation Functioning disclosure committee Conducting Section 404 evaluation of internal controls Customer Driven Solid Imaging S
Slide 31: New Product Introductions (Sept-Dec 2003)
New Product Introductions... (Sept-Dec 2003) RN Customer Driven Solid Imaging Solutions a4 NASDAQ: TDSC.
Slide 32: September 2003 product
Customer Driven Solid Imaging Solutions ae NASDAQ: TDSC. September 2003 — Designed to meet specific needs of jewelry manufacturers — Pattern and master model production provide the best surface finish and create finely detailed structures — Direct investment cast in precious metals, such as gold, pr
Slide 33: October 2003 product
October 2003 — Advanced user-friendly system — Enhanced material toughness — Superior finished surfaces — Easy removal and clean-up — Plug & play installation — Point & print ease of use — Best in class part resolution — Affordable, economical @ $39,900 RN = NASDAQ: TDSC s Customer Driven Solid Imag
Slide 34: LaserForm A6 steel
Slide 35: December 2003 product
December 2003 — Best in class engineered composite product — Provides exceptional stiffness and strength — Deliver parts for high- performance applications, including wind tunnel models, electronic enclosures, and durable assemblies for aerospace components Customer Driven Solid Imaging Solutions ad
Slide 36: Industry & Business Outlook
Industry & Business Outlook... EN Customer Driven Solid Imaging Solutions Bal NASDAQ: TDSC.
Slide 37: Rapid prototyping to rapid manufacturing
id prototyping Rapid manufacturing Rapid prototyping Rapid manufacturing Number of parts produced Number of parts produced Concept modeling! 3D printing Present ort to Mid-Term. ong-Term
Slide 38: Modeling, prototyping, manufacturing
Modeling Prototyping Rapid prototyping Rapid manufacturing Selective Laser Sintering Concept modeling! 30 printing 2 Fe fe Present Source: Wohlers Associates, Inc Customer Driven Solid Imaging Solutions NASDAQ: TDSC
Slide 39: Company strengths
+ Powerful brands + Deep customer relations, diverse base + Global presence, reach « Differentiated product portfolio + Broad patented & proprietary patiaeks platforms +« Complete customer solutions: materials, sy 3, ex, 1 + Value-based selling: Deli I m ¢ Market leadership in solutions and end-uses
Slide 40: Pipeline Growth Initiatives
Pipeline Growth Initiatives... RN Customer Driven Solid Imaging Solutions hd NASDAQ: TDSC.
Slide 41: Materials and services initiatives
+ Metals and alloys Engineered composites Engineered plastics Ceramics Flexible & semi-rigid urethanes Expanded customer services portfolio 3 Customer Driven Solid Imaging Solutions - NASDAQ: TDSC.
Slide 42: Broader range of materials & systems
Pipeline: : @ <a Broader Range of Materials & Systems Enables Greater Acceptance Customer Driven Solid Imaging Solutions a NASDAQ: TDSC 3
Slide 43: Link to searchable
Link to searchable text of slide shown above
Slide 44: Growth drivers
New products & systems New customer services Geographic expansion Adjacent opportunities Increasing global trade Expanding digitized media Demand for customization Affordable CAD solutions Time-to-market pressures Customer Driven Solid Imaging Solutions & ‘N RRSoASOSS 33 SY:
Slide 45: www.3dsystems.com
Searchable text section of graphics shown above [ LOG O] [GRAPHIC] Customer Driven Solid Imaging Solutions Investor Presentation January 2004 NASDAQ: TDSC www.3dsystems.com [ GRA PHIC] Forward-Looking Information Statement Certain statements made by the company in this presentation are forward looki