Desktop Metal — SPAC Merger (August 2020)
39 slides from Desktop Metal's SPAC merger presentation, Aug 26, 2020
Slide 1: Desktop Metal Investor Presentation
Desktop Metal Investor Presentation BDAY Desktop Metal = TRINE August 2020
Slide 2: Disclaimer
Disclaimer This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Desktop Metal, Inc. ("Desktop Metal") and Trine Acquisition Corp.
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d Participants in Solicitation Trine and Desktop Metal and their respective directors and officers may be deemed to be participants in the solicitation of proxies from Trine’s stockholders in connection with the Proposed Business Combination. Information about Trine’s directors and
Slide 4: Transaction summary
Transaction summary Desktop Metal team Transaction highlights Ric Fulop Co-founder, Chairman & CEO Elizabeth Linardos CFO Arjun Aggarwal VP Product & Business Development Trine Acquisition Corp team Leo Hindery, Jr. Chairman & CEO Tom Wasserman Director Pierre Henry CFO & EVP of Development 1 2. Per
Slide 5: Trine overview
Trine overview Who we are and what we offer =TRINE Winning partnership A Strategic Partnership with global investment firm HPS Investment Partners ($63B of AUM)( Access to a Proprietary Network of potential customers and financing sources through HPS Investment Partners Track Record of Building Busi
Slide 6: Our opportunity is to build the first Additive 2.0 company
Our opportunity is to build the first oo laer Edict Additive 2.0 company Superior Management Barriers to Entry Top Line Growth Inorganic upside
Slide 7: Desktop Metal is the only pure-play Additive 2.0 public opportunity
Desktop Metal is the only pure-play Additive 2.0 public opportunity e1 02 83 04 @5 06 1 2 », Desktop Metal = 3. 4. Large & expanding addressable market World-class management team Industry-leading, defensible technology platform Global distribution & broad customer adoption Compelling unit economics
Slide 8: Additive manufacturing industry to grow 11x over next decade
[01] Additive manufacturing industry to grow 11x over next decade Propelled by shift from prototyping to mass production of end use parts Evolution of the AM market Additive manufacturing market size Additive 1.0 Key players now off-patent, leaving them with minimal differentiation and commoditized
Slide 9: The market is split into three primary segments
[01] The market is split into three primary segments: printers, parts and materials Breakdown of 2019 global additive manufacturing market( Breakdown of global additive manufacturing vendors(@) > Other 1% Other $0.1B 12% Materials ————~ 16% Parts , “34% Materials Parts 16% $4.98 Wag Printers & OEM s
Slide 10: Additive enables the future...
[01] Additive enables the future... Additive Manufacturing facilitates more than a new approach to industrial production — it is a key enabler of the fourth industrial revolution that underpins revolutionary technologies driving global economic growth. Ep Electric & Autonomous Vehicles x Space Explo
Slide 11: ...and is transformational to the manufacturing industry
[61] ..and is transformational to the manufacturing industry Conventional manufacturing hurdles Additive manufacturing benefits at-scale Product innovation Complex & generative designs Mass customization Geometry: machines & tooling encouraging simpler designs with reduced performance Lack of custom
Slide 12: Our management team has industry expertise & proven success
[02] Our management team has industry expertise & proven success Steve Billow President SS ef @ Elizabeth Linardos CFO w= LUMENS ‘SYSTEMS Mike Rubino EVP Corp. Dev. reper: ates ‘SYSTEMS Meg Broderick VP & General Counsel Carbon Black. (23 ‘SYSTEMS Ilya Mirman CMO Onshape Bp SOLIDWORKS »,, Desktop Me
Slide 13: Board of directors with a history of creating category disruptors
[02] Board of directors with a history of creating category disruptors a ° © 0 Dh Desktop Metal Ric Fulop Chairman & CEO, EDAR. Desktop Metal Desktop Metal Wen Hsieh General Partner, Kleiner Perkins {PF KLEINER PERKINS. Andy Wheeler General Partner, Google Ventures Google ©0209 Leo Hindery, Jr. Chai
Slide 14: Desktop Metal's pioneering product portfolio
[03] Desktop Metal’s pioneering product portfolio Addresses key pain points in productivity & ease of use across product lifecycle Fiber™ Studio System™ Shop System™ Production System™ [Composite] [Metal] [Metal] [Metal] Print continuous fiber-reinforced parts Office-friendly production of prototype
Slide 15: Hardware designed for massive throughput & ease of use
[03] Hardware designed for massive throughput & ease of use Fastest metal 3D printing technology()2) Advanced sintering technology‘) Desktop Metal™ Single Pass Jetting™ (SPJ™) is up to 100x faster than laser powder bed fusion and significantly faster than conventional binder jetting Organizations ca
Slide 16: Desktop Metal technology vs. conventional manufacturing
[03] Desktop Metal technology vs. conventional manufacturing Illustrative breakeven analysis vs. tool-based manufacturing Inkjet technology Moore’s law) Printhead drops per second) 1E+10 Casting Additive 1.0 technologies are typically throughput-limited, breaking even with conventional Inkjet perfor
Slide 17: High-performance and flexible material platforms
[03] High-performance and flexible material platforms Office-friendly & extensible metal 3D printing platforms Breakthrough aerospace-grade composite solutions Fiber™ introduces micro AFP™ technology adapted from multi- million dollar AFP machines to bring breakthrough aerospace- Thousands of possib
Slide 18: Software-enabled additive manufacturing
[03] Software-enabled additive manufacturing Fabricate software From your computer or phone... ..to Desktop Metal products Onboard touchscreen controls with consistent user experience Cloud-enabled, browser-based build preparation & workflow tools automate the end-to-end additive manufacturing proce
Slide 19: Desktop Metal delivers green manufacturing solutions at-scale
[03] Desktop Metal delivers green manufacturing solutions at-scale TRADITIONAL MANUFACTURING Casting TRADITIONAL MANUFACTURING Machining ADDITIVE MANUFACTURING Binder jetting & Single Pass Jetting™ Near zero waste Mol ti ith h part Vast ity of metal turn a 5 Woee (0 a CESS eA CET NT ° ast major orme
Slide 20: Leading global distribution network
[04] Leading global distribution network Coverage across 60+ countries around the world Additional commentary Distribution partners with years of experience in digital modeling, additive manufacturing, and metal manufacturing Built to support sales of both (i) low touch, high volume and (ii) high to
Slide 21: Broad horizontal adoption across industries
[04] Broad horizontal adoption across indus Transportation Design, development, and manufacture of air, land and sea transportation components Advanced research Exploration and adoption of additive through advanced research and training in conjunction with industry partners. i, Desktop Metal Consume
Slide 22: Automotive is a key vertical for volume additive manufacturing
[04] Automotive is a key vertical for volume additive manufacturing Desktop Metal position anchored by strategic investments from Ford and BMW Selected automotive OEM customers @® TOYOTA EJ = WY) <y RENAULT Dh Desktop Metal Automotive is a major market for powder metallurgy (PM) parts today PM parts
Slide 23: Blue chip customer base
[04] Blue chip customer base K Ferd) G@atinental. ® zB 4) RENAULT (qissa Volkswagen JOHN ZINK Goongvean (9D mactean-Focs <> EG oun zy Fess OAK MITRE 2%, Ykidcr @tovora @BOSCH MICHELIN > ceorsiaraciic NASH f>medtronic INTAMOEGRER ‘StanleyBlack&Decker Miwon” Go gle J OB yee oy likes. UHR MOEN APG ‘iin
Slide 24: High-margin product platforms with recurring revenue streams
[@5] High-margin product platforms with recurring revenue streams Shop System™ illustrative 10-year lifetime unit economics Revenue & Gross Profit ($000s) Cumulative Gross Margin (%) $350 60% Year 1: $290K upfront sale + $33K consumables() $280 54% $210 10-Year Lifetime Total 48% $1.1M Revenue $140
Slide 25: High-margin product platforms with recurring revenue streams
[05] High-margin product platforms with recurring revenue streams Production System™ illustrative 10-year lifetime unit economics Revenue & Gross Profit ($M) Cumulative Gross Margin (%) $2.5 60% Year 1: $2.2M upfront sale + $250K consumables) $2.0 52% . 9X $1.5 10-Year Lifetime Total 44% $6.5M Reven
Slide 26: Positioned for rapid growth over the next decade
[05] Positioned for rapid growth over the next decade Summary financials ($M) Key growth drivers & commentary . % of $942 [100% organic Reflects only 2.0% o' $48B+ 2025E growth case] addressable market() $268 $26 $15 - $25 $44 $25 ($2) (see) (S54) S28) 2019A 2020E 2021E 2022E 2023E 2024E 2025E HM Re
Slide 27: Operating leverage yields growth in EBITDA & FCF
[05] Operating leverage yields growth in EBITDA & FCF Driven by Desktop Metal’s core focus on technology & product development Operating expenses() (% of revenue) Adjusted EBITDA & FCF((2)(3) ($M) 350% $300 Our business is asset light with i Adj. EBITDA manufacturing completed through FCF 300% contr
Slide 28: Significant upside to unit economics through consolidation
[06] Significant upside to unit economics through consolidation Vertical integration of additional profit pools such as metal powder 10-YR Production System™ lifetime value [Binder only] 10-YR Production System ™ lifetime value [Binder + metal powder] 2x - 6x(1) Le Lifetime value $6.5M Ye $3.8M Reve
Slide 29: Desktop Metal has a compelling M&A pipeline
[06] Desktop Metal has a compelling M&A pipeline with a team ready to execute Other’) 20% 100’s $12B 2019 Additive Parts of companies manufacturing market() “37% 60+ Materials Opportunities 14% identified 60+ ~$2B revenue opportunities opportunity identified) Printers 29% 10+ In contact & opportunit
Slide 30: Potential to consolidate the industry and build a long-term virtuous cycle
[06] Potential to consolidate the industry and build a long-term virtuous cycle > ia © @ Printers Materials Economies of scale with global sistontplenileeé ona Differentiation and channel and distribution in hardware-as a-service Cpu n Depreciated systems at 60+ countries subscription termination Ve
Slide 31: Desktop Metal is the only pure-play Additive 2.0 public opportunity
Desktop Metal is the only pure-play Additive 2.0 public opportunity e1 02 83 04 @5 06 1 2 », Desktop Metal = 3. 4. Large & expanding addressable market World-class management team Industry-leading, defensible technology platform Global distribution & broad customer adoption Compelling unit economics
Slide 32: Transaction & valuation overview
Transaction & valuation overview MDDAy Desktop Metal
Slide 33: Detailed transaction overview
Detailed transaction overview Key transaction terms Illustrative pro forma valuation ($M) + $526M cash proceeds inclusive of PIPE proceeds and Desktop Metal share price $10.00 transaction expenses() Pro forma shares outstanding 246.1 Pro forma equity value $2,461 + $275M of PIPE commitments before t
Slide 34: Select peers operational benchmarking
Select peers operational benchmarking Advanced manufacturing Tech-enabled industrials Legacy AM CY19A- AM average: 3% TE average: 9% LAM average: (9%) cY’21E 16% 16% 15% Overall average): 8% Revenue 12% ™ CAGR 5% 3% i! 1% | || i SEE — 7%) (10%) 94% cy2iE ‘AM average: 52% TE average: 69% LAM average:
Slide 35: Select peers valuation benchmarking
Select peers valuation benchmarking Advanced manufacturing Tech-enabled industrials Legacy AM e EV/CY'21E ! AM average CY’21E: 7.7x 14.8x TE average CY'21E: 9.4x LAM average CY’21E: 1.1x Revenue: 12.9% oe Overall average CY'21E(®): 9.0x H 7.9% : 7.4K 68x 6.9x ‘ Bs 5.2K L] ] = ld AM average CY'21E: 4
Slide 36: Transaction priced at a discount to peer multiples
Transaction priced at a discount to peer multiples Implied EV based on comparable Commentary companies current trading valuations Transaction valuation + Based on the organic growth plan + Pro forma for transaction, Company will have ~$625M on the balance sheet) + Significant opportunity to deploy f
Slide 37: Appendix
Slide 38: Summary financials
Summary financials ($M)V2) 2019A 2020E(3) 2021E 2022E 2023E 2024E 2025E Revenue 26.4 15-25 77.5 165.8 328.7 584.3 941.5 % Growth (7.7%) 217.3% 114.0% 98.3% 77.8% 61.1% Cost of goods sold 50.8 39.8 57.6 95.7 171.4 277.7 433.2 Gross profit (24.4) (15.4) 19.8 70.1 157.3 306.6 508.3 % Gross margin N.M.
Slide 39: Reconciliation of non-GAAP financials
Reconciliation of non-GAAP financials Adjusted EBITDA“) ($M) 2019A 2020E) 2021E 2022E 2023E 2024E 2025E Operating income (loss) (109.0) (76.3) (36.9) (14.1) 23.5 103.0 225.8 Depreciation & amortization 8.1 78 8.0 75 7.5 7.5 7.5 Stock-based compensation 5.2 4.5 44 5.1 12.6 23.0 34.9 Adjusted EBITDA (