Slide 1: Investor Presentation May 2011
www.3dsystems.com NASDAQ:TDSC May 3 2011 Investor Presentation May 2011
Slide 2: Forward Looking Statements
Company Confidential 2 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
Slide 3: Profile
Company Confidential 3 Profile
Slide 4: Balanced Revenue Composition… 2010 FY
Company Confidential 4 Balanced Revenue Composition… 2010 FY
Slide 5: Leading Provider of 3D Content-to-Print Solutions
Company Confidential 5 Leading Provider of 3D Content-to-Print Solutions
Slide 6: Global Reach with Local Presence
Company Confidential 6 Global Reach with Local Presence United States - Rock Hill, SC - Atlanta, GA - Goodland, IN - Lawrenceburg, TN - Seattle, WA - Syracuse, NY - Valencia, CA - Vernon Hills, IL Europe - England - France - Germany - Italy - Switzerland Asia-Pacific - China - Hong Kong - Japan - Si
Slide 7: Compelling Business Model Printer Consumables
Company Confidential 7 Compelling Business Model Printer Consumables
Slide 8: Leadership Through Technology
Company Confidential 8 Leadership Through Technology Professional 3D Printers: MJM, SLA® Personal 3D Printers: FTI, PJP Production 3D Printers: SLA®, SLS®, SLM Price: $1,300 - $9,900 Price: $49,000 - $199,000 Price: $250,000 - $950,000
Slide 9: High-Performance Integrated Print Materials
Company Confidential 9 High-Performance Integrated Print Materials q High-definition materials for concept models and functional prototypes q Accurate durable materials for rapid prototyping and manufacturing of end-use parts q Engineered plastic materials and composites that are tough and stable fo
Slide 10: Expanding Range of End-Use Applications
Company Confidential 10 Expanding Range of End-Use Applications
Slide 11: First Mover Advantage… Diverse Customer Base
Company Confidential 11 First Mover Advantage… Diverse Customer Base
Slide 12: Clear Competitive Advantage
Company Confidential 12 Clear Competitive Advantage
Slide 13: Marketplace Convergence Drives Opportunities
Company Confidential 13 Marketplace Convergence Drives Opportunities Source: 3D Systems
Slide 14: Focused Growth Initiatives
Focused Growth Initiatives 7 Grow 3D Build 3D custom Accelerate 3D ReStnCare! Build 3D consumer parts global printer evans content products services, expand penetration ieveracing Our and services, through through channel BNE expand through customer base acquisitions and expansion and and core organ
Slide 15: Results From Growth Initiatives: Custom Parts Services
Company Confidential 15 Results From Growth Initiatives: Custom Parts Services Access to end users Build scale and presence Consolidate channel Shape brand experience Quickparts® 3Dproparts™ Exited 2010 with $18.3 M of annual customer parts services revenue Acquired Quickparts® (Feb 2011) with 2010
Slide 16: Results From Growth Initiatives: 3D Printers
Company Confidential 16 Results From Growth Initiatives: 3D Printers Record 2010 printer revenue of $54.7 million and 79% growth over prior year Record Q1 2011 printer revenue of $13.5 million and 54% growth over Q1 2010
Slide 17: Results From Growth Initiatives: Healthcare Solutions
Company Confidential 17 Results From Growth Initiatives: Healthcare Solutions ITE hearing aids Dental restorations Orthodontic aligners Orthopedic implants Prosthetics Trauma procedures
Slide 18: Full Year 2010 Across-The-Board Revenue Growth
Company Confidential 18 Full Year 2010 2010 2010 79% Across-The-Board Revenue Growth 38% 46% 16% 2010 $ in millions $ 30.5 $ 54.7 $ 32.0 $ 46.8 $ 50.3 $ 58.4 $ 15.7 $ 21.6
Slide 19: Shareholder Value Acquisitions Track Record
Company Confidential 19 Shareholder Value Acquisitions Track Record 2011 Quickparts National RP Support ATI Sycode Print3D 2010 Provel Bits From Bytes Express Pattern CEP Protometal Design Prototyping Technologies Moeller Design & Development 2009 AdvaTech Manufacturing Acu-Cast Technologies Desktop
Slide 20: Experienced Management Team
Company Confidential 20 Experienced Management Team Bob Grace GC&S Damon Gregoire CFO Abe Reichental CEO Chuck Hull CTO Kevin McAlea Sales Cathy Lewis Marketing
Slide 21: Financial Overview
www.3dsystems.com NASDAQ:TDSC May 3 2011 Financial Overview
Slide 22: First Quarter Revenue by Category & Geography
Company Confidential 22 Revenue Categories Geography First Quarter Revenue by Category & Geography Asia Pacific 2010 2010 2011 2011
Slide 23: First Quarter 2011 Across-The-Board Revenue Growth
Company Confidential 23 First Quarter 2011 2010 2010 54% Across-The-Board Revenue Growth 52% 103% 15% 2010 $ in millions $ 8.8 $ 13.5 $ 9.2 $ 18.8 $ 13.6 $ 15.6 $ 4.1 $ 6.2
Slide 24: First Quarter 2011 Operating Results
Company Confidential 24 First Quarter Drivers 2011 2010 % Change Favorable/(Unfavorable) Revenue $ 47.9 $ 31.6 51% Gross Profit $ 23.2 $ 14.3 62% % of Revenue 48% 45% Operating Expenses $15.8 $11.7 (35%) % of Revenue 33% 37% Net Income $6.8 $2.0 238% % of Revenue 14% 6% Depreciation & Amortization $
Slide 25: Printer Razor and Blade Profile
Company Confidential 25 Printer Razor and Blade Profile Personal & Professional Printer Revenue Model (1) Commentary (1) Model assumes net annual material revenue of $12,000 per printer from a mix of all printers. Model illustrates cumulative revenue growth of adding 100 new printers/year for five y
Slide 26: Gross Profit and Margin Trend
Company Confidential 26 First Quarter Category 2011 2010 Yr-Yr% $ Millions Gross Profit Margin $ Millions Gross Profit Margin $ Margin Printers $5.5 41% $ 3.1 36% 75% 13% Materials $9.9 63% $ 8.3 61% 20% 5% Services (1) $7.8 42% $ 2.9 32% 167% 31% Total $23.2 48% $ 14.3 45% 62% 7% Gross Profit and M
Slide 27: Expected Margin Expansion Path
Company Confidential 27 Expected Margin Expansion Path Long-Term Target
Slide 28: First Quarter Operating Expenses
Company Confidential 28 First Quarter Category 2011 2010 % Change Favorable (Unfavorable) Selling, general & administrative $13.0 $ 9.2 (42%) Research and development $2.8 $ 2.5 (13%) Total Operating Expenses $15.8 $ 11.7 (35%) % of Revenue 33% 37% 11% • Total operating expenses increased primarily
Slide 29: Operating Leverage Expected To Continue
Company Confidential 29 Operating Leverage Expected To Continue $ in millions
Slide 30: Factors Affecting Earnings Per Share
Company Confidential 30 Factors Affecting Earnings Per Share
Slide 31: Favorable EPS Trend
Company Confidential 31 Favorable EPS Trend Revenue and margin expansion, coupled with operating cost containment and optimization resulted in an improved bottom line and stronger balance sheet EPS Improvement over Prior Year's Quarter Q1 2009 $0.08 Q2 2009 $0.09 Q3 2009 $0.08 Q4 2009 $0.08 Q1 2010
Slide 32: Working Capital
Company Confidential 32 March 31, 2011 December 31, 2010 % Change Favorable (Unfavorable) Cash $70.8 $ 37.3 90% Inventory $ 26.6 $23.8 (12%) Accounts Receivable $ 39.3 $ 35.8 10% Accounts Payable $ 23.4 $ 26.6 12% Working Capital $ 76.5 $ 42.5 80% • Cash increased $33.5 million from the fourth quart
Slide 33: Balance Sheet Management
Company Confidential 33 Balance Sheet Management Strong balance sheet coupled with operating leverage allows us to fund our strategic initiatives No debt Strong cash balance Quality receivables Balanced inventories Managed payables
Slide 34: Long-Term Target Operating Model
Company Confidential 34 Long-Term Target Operating Model ($ millions) * Net income is inclusive of the estimated fully-burdened tax rate in a range of 31-38% depending on the period. - The company’s current NOLs of $65 million reduce the cash taxes to the portion relating to the non-U.S. obligations
Slide 35: Well-Positioned For the Long Term
Company Confidential 35 Well-Positioned For the Long Term
Slide 36: Thank You
www.3dsystems.com NASDAQ:TDSC May 3 2011 Thank You