Shapeways Holdings, Inc. · OTC:SHPWQ
Shapeways — SPAC Merger (September 2021)
57 slides from Shapeways's SPAC merger presentation, September 2021
Slide 1: Shapeways Investor Presentation
Shapeways Investor Presentation September 2021
Slide 2: Disclaimer
DISCLAIMER This Presentation (the "Presentation") is for informational purposes only to assist interested parties in making an evaluation with respect to a proposed business combination between Galileo Acquisition Corp. (“Galileo”) and Shapeways Inc. (the "Company" or “Shapeways”) and is being furni
Slide 3: Disclaimer, cont.
DISCLAIMER, CONT. Forward Looking Statements - Certain statements included in this Presentation are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements
Slide 4: Transaction Summary
TRANSACTION SUMMARY SHAPEWAYS HIGHLIGHTS TRANSACTION ● Galileo Acquisition Corp. has proposed to enter into a business combination with Shapeways STRUCTURE ● Target transaction close expected Q3 2021 ● Proceeds from the transaction expected to fund growth of Shapeways’ end-to-end software platform a
Slide 5: Galileo Acquisition Corp
GALILEO ACQUISITION CORP Serial SPAC team having successfully completed four business combinations, plus Shapeways in process. Seasoned dealmakers with diverse nationalities, M&A, principal investing and public company operating experience in both the North American and Western European markets. Uni
Slide 6: Shapeways is a Leader in Digital Manufacturing
SHAPEWAYS IS A LEADER IN DIGITAL MANUFACTURING 1. Unique and compelling opportunity in large, fast growing digital manufacturing market 2. High quality, flexible on demand manufacturing with proprietary purpose built software 3. Agnostic to hardware and materials allows quick adaptability to market s
Slide 7: Shapeways
SHAPEWNS
Slide 8: Shapeways' Digital Manufacturing Platform
SHAPEWAYS’ DIGITAL MANUFACTURING PLATFORM OFFERS CUSTOMERS ACCESS TO HIGH QUALITY MANUFACTURING FROM START TO FINISH SHAPEWAYS Digital Manufacturing Leader Offering high quality, flexible on demand manufacturing With expansive capabilities Enabled by purpose built, proprietary software 8
Slide 9: Shapeways is a Leader in Digital Manufacturing: At a Glance
SHAPEWAYS IS A LEADER IN DIGITAL MANUFACTURING Combining high quality, flexible on demand manufacturing with purpose built proprietary software enables any customers to rapidly transform digital designs to physical products. AT A GLANCE 21M+ 11 90+ 2 160+ Parts Additive Materials Manufacturing Countr
Slide 10: Experienced Management Team + Committed, Long Term Investors
EXPERIENCED MANAGEMENT TEAM + COMMITTED, LONG TERM INVESTORS SENIOR MANAGEMENT TEAM Greg Kress Jennifer Walsh Miko Levy Chief Executive Officer Chief Financial Officer Chief Revenue Officer KEY INVESTORS Josh Wolfe Albert Wenger Robert Jan Galema Chris Dixon Ben Holmes Phillip Jung Co-Founder, Managing Pa
Slide 11: Industry 4.0
INDUSTRY 4.0 THE INDUSTRIAL REVOLUTION CONTINUES With the end-to-end digitization of manufacturing. But it is just getting started, with less than 6% 1 of existing manufacturers starting the digital transformation. INDUSTRY 4.0 Digitizing end-to-end manufacturing Industry 1.0 Industry 2.0 Industry 3
Slide 12: Disrupting the Massive Global Manufacturing Market
DISRUPTING THE MASSIVE GLOBAL MANUFACTURING MARKET Market is slow, manual, and rigid. Focused on mass production and unable to meet changing customer needs. Digitizing the end to end manufacturing process enables increased speed, lower costs, and higher flexibility. Accelerated by Additive Manufactur
Slide 13: Additive Manufacturing Innovation Accelerates Shift to Finished Part Production
ADDITIVE MANUFACTURING1 INNOVATION ACCELERATES SHIFT TO FINISHED PART PRODUCTION ADDITIVE MANUFACTURING MARKET SEGMENTATION3,4 INCREASED HARDWARE INNOVATION Legacy patent expiration enabling new hardware OTHER SERVICES innovation, embracing open material model and delivering 22% improved speed, accu
Slide 14: The Shift to Digital Manufacturing Enables Significant Value Creation
THE SHIFT TO DIGITAL MANUFACTURING ENABLES SIGNIFICANT VALUE CREATION DIGITAL MANUFACTURING VALUE CREATION1 This shift solves the market challenges and provides significant benefits to the end 20-50% 45-55% 30-50% customer and the manufacturer. Faster Improved Increased Speed to Market Labor Efficiency
Slide 15: Business Overview
BUSINESS OVERVIEW 15
Slide 16: Shapeways Platform Transforms Digital Designs to Physical Products
SHAPEWAYS PLATFORM TRANSFORMS DIGITAL DESIGNS TO PHYSICAL PRODUCTS Digital Product File Analysis, Supply Chain Pre Complex Post Global File Configuration Manufacturability Readiness Production Manufacturing Production Delivery File Upload Technology Auto Correction SC flexibility Custom Routing One-pa
Slide 17: Offering High Quality, Flexible On Demand Manufacturing
OFFERING HIGH QUALITY, FLEXIBLE ON DEMAND MANUFACTURING SHAPEWAYS MANUFACTURING Proven high quality, low volume production. 138 21M 1M 160 2 <1% 99% Global Parts Global Countries Manufacturing Complaint On Time Employees1 Manufactured1 Customers1 Delivered1 Sites1 Rate2 Delivery3 (1) Company metric
Slide 18: With Expansive Manufacturing Capabilities
WITH EXPANSIVE MANUFACTURING CAPABILITIES AGNOSTIC TO HARDWARE + MATERIALS ALLOWS QUICK ADAPTABILITY TO MARKET SHIFTS Shapeways currently offers 11 hardware technologies and over 90 materials and finishes, with ability to scale new innovation easily. 18
Slide 19: Enabled by Purpose Built, Proprietary Digital Manufacturing Software
ENABLED BY PURPOSE BUILT, PROPRIETARY DIGITAL MANUFACTURING SOFTWARE DIGITIZING END TO END MANUFACTURING Giving customers the ability to realize the potential of Digital Manufacturing. Providing high quality, low volume, complex one part production. 19
Slide 20: Software That Digitizes the End to End Manufacturing Process
SOFTWARE THAT DIGITIZES THE END TO END MANUFACTURING PROCESS MAKING COMPLEX MANUFACTURING SIMPLE Through end-to-end digitization and automation, removing unnecessary risk and costs. ORDERING ANALYSIS PLANNING PRE PRODUCTION MANUFACTURING File upload, configuration, FIle analysis, printability tools,
Slide 21: And Does It at Scale
AND DOES IT AT SCALE SOFTWARE BUILT WITH INTEGRATIONS IN MIND. Enabling deep integrations with our customers, connecting systems, apps, people, & infrastructure to become a mission critical component of their business. + 100’s More 21
Slide 22: Making Manufacturing Accessible, Offering Frictionless Customer Experience
MAKING MANUFACTURING ACCESSIBLE, OFFERING FRICTIONLESS CUSTOMER EXPERIENCE FAST HIGH QUALITY Receive physical products in days, Proven high quality production to meet from upload to delivery finished end product standards LOW COST SCALABLE No upfront investment to get started & Easily scale up and do
Slide 23: Broad Use Across Customer Types + Industries
BROAD USE ACROSS CUSTOMER TYPES + INDUSTRIES INDIVIDUAL ENGINEERS Individual Engineer TO LARGE ENTERPRISE CUSTOMERS Focused on project based needs to support product design through production. Broad use across customer types and industries. Enabling support from design, prototyping, optimization, Sm
Slide 24: 3) BIOLOGIC MODELS SN Oz kespry D) O BeeHero
3) BIOLOGIC MODELS SN Oz kespry D) O BeeHero open bionics
Slide 25: Loyal Customer Base with Growing Customer Economics
LOYAL CUSTOMER BASE WITH GROWING CUSTOMER ECONOMICS HIGH REPEAT REVENUE GROWING CUSTOMER ECONOMICS Historic customer base drives high repeat revenue, Ability to drive consistent improvement in GM$ per customer1, driving 88% of 2020 revenue forecasting 30%+ CAGR from 2020 through 2025 NEW CUSTOMER 30
Slide 26: Shapeways Platform Enables Customers Growth
SHAPEWAYS PLATFORM ENABLES CUSTOMERS GROWTH CUSTOMER GROWTH EXAMPLES1 Annual Revenue ($ in Thousands) MEDICAL AEROSPACE 112% CAGR 127% CAGR CONSUMER PRODUCTS JEWELRY 82% CAGR 588% CAGR (1) Customer examples above are not necessarily representative of results from any other customer 26
Slide 27: Supporting Customers Across Industries with Leading Customer Experience
SUPPORTING CUSTOMERS ACROSS INDUSTRIES WITH LEADING CUSTOMER EXPERIENCE DELIVERING INDUSTRY DIVERSE CUSTOMER BASE LEADING CUSTOMER EXPERIENCE ACROSS INDUSTRIES REVENUE BREAKDOWN2 BY INDUSTRY Other NET PROMOTER SCORE BY INDUSTRY1 Top 250 Accounts Revenue Breakdown 60 Enterprise, B2B Focused Aerospace
Slide 28: Target Customer Growth with Improving User Economics
TARGET CUSTOMER GROWTH WITH IMPROVING USER ECONOMICS TARGET CUSTOMER GROWTH IMPROVING TARGET CUSTOMER ALIGNED WITH MARKET USER ECONOMICS TOP 250 CUSTOMER REVENUE GROWTH1 REVENUE & GROSS MARGIN $s PER TOP 250 CUSTOMER1 Top 250 Accounts Revenue ($ in Thousands) Average revenue and gross margin per Top
Slide 29: Highly Differentiated Manufacturing Services Enabled by Shapeways Software
HIGHLY DIFFERENTIATED MANUFACTURING SERVICES ENABLED BY SHAPEWAYS SOFTWARE Gross Accessibility Capabilities Price Quality Speed Profit Small, Mid Size Manufacturers Public Comparables Digital Brokers 29
Slide 30: Growth Opportunities
GROWTH OPPORTUNITIES 30
Slide 31: Scalable Platform, Positioned for Expansion
SCALABLE PLATFORM, POSITIONED FOR EXPANSION SOFTWARE AS A SERVICE Shapeways’ platform is positioned to scale across materials, Platform Investment: $ Investment markets, technologies, and software as a service. SOFTWARE SHEET METAL NEW MANUFACTURING TECHNOLOGY INJECTION MOLDING Platform Investment:
Slide 32: Opportunity to Expand Additive Manufacturing Capabilities
OPPORTUNITY TO EXPAND ADDITIVE MANUFACTURING CAPABILITIES FUTURE MATERIAL INNOVATION Capability Expansion AM HARDWARE + MATERIAL CAPABILITY EXPANSION UNLOCKS NEW INDUSTRIES COMPOSITES, CERAMICS Capability Expansion Enabling acceleration of adoption in key markets including Industrial, Medical, Autom
Slide 33: Opportunity for Further Market Expansion Beyond US + EU
OPPORTUNITY FOR FURTHER MARKET EXPANSION BEYOND US + EU ANNUAL MANUFACTURING OUTPUT1 TAIWAN INDIA SOUTH KOREA JAPAN CHINA $200B $300B $400B $1,000B $2,000B (1) Brookings Global Manufacturing Scorecard, United Nations Conference on Trade and Development, 2015 33
Slide 34: Opportunity to Expand Part Envelope Beyond Additive Manufacturing
OPPORTUNITY TO EXPAND PART ENVELOPE BEYOND ADDITIVE MANUFACTURING To include CNC, Injection Molding, & Sheet Metal through supply chain partners to expand customer share of wallet ADDITIVE INJECTION SHEET CNC MANUFACTURING MOLDING METAL ESTIMATED PART ENVELOPE, MARKET BREAKDOWN1 Complex, low volume
Slide 35: Offer Software as a Service, Creating the Manufacturing Operating System
OFFER SOFTWARE AS A SERVICE, CREATING THE MANUFACTURING OPERATING SYSTEM FOR THE INDUSTRY Enabling manufacturer’s digital transformation provides Shapeways with an enormous market opportunity. Creating additional growth channels through ongoing software 10M+ MANUFACTURERS revenue and additional manu
Slide 36: Strength of Shapeways Platform Enables Transformation of Greater Market
STRENGTH OF SHAPEWAYS PLATFORM ENABLES TRANSFORMATION OF GREATER MARKET In 2020 Shapeways deployed “Powered by Shapeways”, gray-labeled software that enables partners to leverage Shapeways end-to-end manufacturing software platform for their business and make the digital shift. SHAPEWAYS SOFTWARE AS
Slide 37: Shapeways Accelerates Metal Additive Manufacturing Capabilities
SHAPEWAYS ACCELERATES METAL ADDITIVE MANUFACTURING CAPABILITIES Shapeways & Desktop Metal have entered into a MOU to establish a multi-year strategic partnership to accelerate the adoption of industrial metal additive manufacturing STRATEGIC PARTNERSHIP The Shapeways & Desktop Metal Strategic Partne
Slide 38: Financials and Transaction Overview
FINANCIALS AND TRANSACTION OVERVIEW 38
Slide 39: Accelerating Financial Profile
ACCELERATING FINANCIAL PROFILE SHAPEWAYS FINANCIAL SUMMARY1 ($ in Millions) KEY HIGHLIGHTS 36% 44% 46% 49% 50% 51% 52% ● Shapeways 2025E revenue is <1% of addressable market 66% CAGR $400M ● $62B+ market in 2025E driven by accelerating adoption of digital manufacturing solutions $250M ● Shapeways ha
Slide 40: Diversified Revenue Profile, Positioned for Growth
DIVERSIFIED REVENUE PROFILE, POSITIONED FOR GROWTH SHAPEWAYS REVENUE ($ in Millions) OBSERVATIONS ● Shapeways’ current revenue is comprised of the “core1” customer segment, steadily increasing by year ● By 2025E the core customer segment shifts to be ~25% of total revenue ● A significant portion of 2
Slide 41: Creating Multiple Paths for Growth
CREATING MULTIPLE PATHS FOR GROWTH +++ TRADITIONAL MANUFACTURING Extended manufacturing capabilities, SOFTWARE extend customer wallet share CAPABILITIES NEW ADDITIVE MANUFACTURING Extended software customer capabilities, software growth, & market expansion New additive hardware & material capabiliti
Slide 42: Opportunity to Accelerate Expansion, $150M Revenue Opportunities Identified
OPPORTUNITY TO ACCELERATE EXPANSION, $150M REVENUE OPPORTUNITIES IDENTIFIED KEY HIGHLIGHTS Large universe of small, niche 100’s 1 additive manufacturing of Companies ● $150M in near term revenue opportunities identified companies ● Inorganic growth is not included in plan Over 50 actionable targets ●
Slide 43: Ability to Drive Efficient Scale + Profitability
ABILITY TO DRIVE EFFICIENT SCALE + PROFITABILITY ACCELERATE STRATEGY THROUGH CONSOLIDATION INORGANIC GROWTH Market Diversified Leadership Products Take advantage of the fragmented, diverse digital manufacturing landscape to accelerate industry, material, technology, and software expansion through ino
Slide 44: Shapeways Is Well Positioned Against Peers
SHAPEWAYS IS WELL POSITIONED AGAINST PEERS Additive 2.0 Digital Manufacturing 62% 246% 116% 29% 15% 11% 17% 172% 48% CY’20A-CY’22E CY’20A-CY’22E CY’20A-CY’22E CY’20A-CY’22E CY’20A-CY’22E CY’20A-CY’22E CY’20A-CY’22E CY’20A-CY’22E CY’20A-CY’22E Revenue CAGR Revenue CAGR Revenue CAGR Revenue CAGR Reven
Slide 45: Shapeways Has an Efficient Business Model with Significant Operating Leverage
SHAPEWAYS HAS AN EFFICIENT BUSINESS MODEL WITH SIGNIFICANT OPERATING LEVERAGE $0.6B $3.3B Significant Market Size Pro Forma Equity Value Current Market Capitalization 4.9x 10.4x Value Creation Opportunity EV / CY’22E Revenue EV / CY’22E Revenue 49% 28% Superior Margin Profile CY’22E Gross Margin CY’22
Slide 46: Detailed Transaction Overview
DETAILED TRANSACTION OVERVIEW KEY TRANSACTION TERMS ILLUSTRATIVE PRO FORMA VALUATION ($M) ● $195M cash proceeds to Balance Sheet inclusive of PIPE proceeds and expected transaction expenses(1) ● $75M of PIPE commitments ● Seller earnout shares are issued, but held in escrow and subject to a vesting
Slide 47: Shapeways Is a Leader in Digital Manufacturing
SHAPEWAYS IS A LEADER IN DIGITAL MANUFACTURING 1. Unique and compelling opportunity in large, fast growing digital manufacturing market 2. High quality, flexible on demand manufacturing with proprietary purpose built software 3. Agnostic to hardware and materials allows quick adaptability to market s
Slide 48: Appendix
APPENDIX 48
Slide 49: Shapeways Annual Income Statement
SHAPEWAYS ANNUAL INCOME STATEMENT ($, Millions) 2019A 2020A 2021E2 2022E2 2023E 2024E 2025E Revenue $33.5 $31.8 $38.0 $80.0 $150.0 $250.0 $400.0 % YoY Growth (5%) 20% 110% 88% 67% 60% Gross Profit $12.2 $13.9 $17.5 $39.1 $75.9 $127.7 $209.6 Gross Margin 36% 44% 46% 49% 50% 51% 52% Adj.EBITDA1 ($6.1)
Slide 50: Reconciliation of Non-GAAP Financials
RECONCILIATION OF NON-GAAP FINANCIALS ($, Millions) 2019A 2020A 2021E2 2022E2 2023E 2024E 2025E Operating Income / (Loss) ($7.0) ($3.2) ($6.5) ($3.1) $15.3 $49.1 $74.1 Interest & Taxes $0.6 $0.6 $0.3 $0 $0 $0 $32.2 Depreciation & Amortization $0.3 $0.1 $0.2 $0.7 $1.0 $1.0 $1.0 Other Non Cash ($0.1)
Slide 51: Shapeways Forecasts Rapid Growth
SHAPEWAYS FORECASTS RAPID GROWTH Shapeways is forecasting more rapid growth than its comparables are forecasting Shapeways expects to achieve a similar gross margin profile as its closest comparables Shapeways expects to achieve positive EBITDA by 2023 with margins superior to comparables on a 2025E
Slide 52: Benchmarking vs Comparables
BENCHMARKING VS COMPARABLES Shapeways provides upside to investors compared to its comparables on a 2022E revenue basis Shapeways provides upside to investors compared to its comparables on a 2022E gross profit basis Shapeways expects to achieve positive EBITDA by 2023 with margins superior to compar
Slide 53: Transaction Provides Significant Upside to Investors
TRANSACTION PROVIDES SIGNIFICANT UPSIDE TO INVESTORS Implied EV based on comparable companies current trading valuations ($M) Transaction value ($M) ▪ Based on Shapeways 100% organic growth strategy Discounted value of Post-money ▪ Opportunity for rapid scaling through vertical, Comparable companies
Slide 54: Audited Income Statement Detail (2019 - 2020)
AUDITED INCOME STATEMENT DETAIL (2019 - 2020) Note: As of December 31, 2020, the Company had federal net operating loss carryforwards of approximately $90,684, of which $71,921 will expire by 2038 if not utilized. 54
Slide 55: Audited Balance Sheet Detail (2019 - 2020)
AUDITED BALANCE SHEET DETAIL (2019 - 2020) Note: As of December 31, 2020, the Company had federal net operating loss carryforwards of approximately $90,684, of which $71,921 will expire by 2038 if not utilized. 55
Slide 56: Audited Cash Flow Statement Detail (2019 - 2020)
AUDITED CASH FLOW STATEMENT DETAIL (2019 - 2020) Note: As of December 31, 2020, the Company had federal net operating loss carryforwards of approximately $90,684, of which $71,921 will expire by 2038 if not utilized. 56
Slide 57: Shapeways
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