Slide 1: Fourth Quarter and Full Year 2023 Financial Results
February 28, 2024 Fourth Quarter and Full Year 2023 Financial Results
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Jeffrey Creech Executive Vice President & Chief Financial Officer Andrew Johnson Executive Vice President, Chief Corporate Development Officer & Chief Legal Officer Mick McCloskey Vice President, Treasury & Investor Rela
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncert
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4
Slide 5: Why Invest?
Why Invest? 3D Printing M al ark ob et Gl Why choose additive manufacturing (AM)? $80B+ 20291 ✓ Design Flexibility ✓ Mass Customization ✓ Low Volume Parts ✓ Supply Chain Flexibility ~$15B 20211 Why 3D Systems? ✓ Unmatched combination of portfolio and scale ~21% ➢ Broadest range of technologies (meta
Slide 6: 2023 in Review
2023 in Review • Challenging 2023 for AM industry ▪ Significant FY’23 headwind in our dental orthodontics business, ~39% decline vs. FY’22 ▪ Challenging macroeconomic and uncertain geopolitical environment created headwinds for remaining businesses, particularly printer sales • Strong gross margin i
Slide 7: Right-Sizing Cost, Preserving Mission-Critical Growth
Right-Sizing Cost, Preserving Mission-Critical Growth Strong balance sheet supports ability to better Reducing costs to navigate current Implemented restructuring establish sustainable environment – healthy initiative in response to profitability but not current revenue cash reserves and compromisin
Slide 8: End-to-End Solutions to Address Orthopedic Device Market
End-to-End Solutions to Address Orthopedic Device Market Applications throughout the human body CMF (Cranio-Maxillofacial) Spine Surgical Planning + Guides + Highest adoption of DMP 350 Implants technology for Titanium spine cages (~$2B) (~$10B) Targeted for Future Growth Hip & Knee Foot & Ankle DMP
Slide 9: Bright Future Ahead for Personalized Healthcare
Bright Future Ahead for Option 2 (2 slides) – I Personalized Healthcare prefer the two slide option. This image is Personalized Healthcare delivered very grainy. Where double-digit full year revenue growth was this pulled from? in 2023 Investing heavily to increase coverage into global markets as cr
Slide 10: Jetted Dentures
Jetted Dentures Two unique materials Industry First Solution Enable production of superior monolithic dentures, combining beautiful aesthetics with outstanding performance, yielding a market-leading denture solution “The capabilities presented by the new jetted denture solution are unmatched in the
Slide 11: Industrial Metal Printing Innovation
Industrial Metal Printing Innovation Semiconductor Capital Equipment, Shipbuilding, Aerospace & Defense • AM generating greater momentum in semiconductors, shipbuilding, aerospace and defense • Lower technical barriers to entry with proven solutions for many materials and applications • Parts consol
Slide 12: Building Momentum on a Historic Technology Roadmap
Building Momentum on a Historic Technology Roadmap ➢ Delivered 9 new products during 4Q’23 ➢ 5 new materials ➢ 3 printer upgrades ➢ 1 key accessory ➢ Recently shipped our first MJP300W and production ramp is ongoing ➢ Completed validation testing on SLS300, ramping production and shipments by 1H’24
Slide 13: Regenerative Medicine Initiative
Regenerative Medicine Initiative Human Organs Regenerative Tissue Program Drug Development Vascularized Breast Tissue Scaffold for Implantation & Cellularization Most Complex Object Bioprinted “Organ-on-a-chip” can accurately replicate organ-specific drug response in pre- Ever 3D Printed clinical dr
Slide 14: Systemic Bio
Systemic Bio Simplifying the challenges in drug discovery 9 in 10 $2.6B 12YEARS in development DRUGS FAIL CLINICAL TRIALS1 PER DRUG APPROVED2 FOR FDA APPROVAL1 • Wholly-owned subsidiary formed in 2022 • h-VIOS , proprietary organ- on-a-chip platform allows pharma companies to test their drug on cell
Slide 15: 2024 Expectations
2024 Expectations ✓ Expect relatively flat FY’24 revenues given continued macro softness ✓ In-sourcing and restructuring initiatives provide a strong foundation for margins today…expect continued benefit going forward ✓ Expect breakeven or better Adj. EBTIDA in flat top-line environment 15
Slide 16: Jeffrey Creech
Jeffrey Creech Chief Financial Officer 16
Slide 17: Full Year Revenue Summary
Full Year Revenue Summary ($ in millions) ISG HSG Consolidated $277 $275 $261 $213 $538 $488 FY’22 FY’23 FY’22 FY’23 FY’22 FY’23 • ISG revenues declined ~1% YoY • HSG declined ~18% YoY driven by • YoY revenue declined ~9% primarily largely impacted by lower printer headwind in dental orthodontics dr
Slide 18: Q4 Revenue Summary
Q4 Revenue Summary ($ in millions) ISG HSG Consolidated $72 $133 $61 $115 $64 $51 Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 • ISG revenues declined ~12% YoY, • HSG declined ~16% YoY primarily • YoY revenue declined ~14% primarily driven by broader macro- due to decline in dental orthodontics primarily dri
Slide 19: Gross Profit Margin (Non-GAAP)
Gross Profit Margin (Non-GAAP) Full Year Compare Fourth Quarter Compare +130 bps +100 bps Full Year Drivers 41.9% 41.1% 40.9% • Continued execution of cost 39.8% optimization efforts & favorable mix Fourth Quarter Drivers • Predominantly favorable mix FY'22 FY'23 Q4'22 Q4'23 19 See Appendix for a r
Slide 20: Earnings (Non-GAAP)
Earnings (Non-GAAP) ($ in millions, except per share amounts) FY’22 FY’23 Change YoY Adj. EBITDA ($5.8) ($24.5) ($18.7) YoY decline driven by lower revenues in addition to: Non-GAAP • Investments in Regenerative Medicine for future Diluted loss ($0.23) ($0.26) ($0.03) growth • Higher than normal OpE
Slide 21: Strong Balance Sheet
Strong Balance Sheet • Ended the quarter with $331.5 million of cash • Invested cash throughout FY’23 - working capital (e.g. in- sourcing manufacturing), acquisitions and other investments (Wematter, Theradapative) and CapEx for growth programs • Opportunistically repurchased ~$135 million of 2026
Slide 22: 2024 Outlook
2024 Outlook Full Year 2024 Guidance Additional Commentary • Expect current macroeconomic and uncertain geopolitical environment to continue impacting Revenue $475 – $505 million top-line • Mid-point of revenue essentially flat YoY, with Non-GAAP seasonally soft start for Q1’24, down QoQ & YoY 42% –
Slide 23: Q&A Session
Q&A Session 1-201-689-8345 23
Slide 24: Thank You
Thank You Find out more at: www.3dsystems.com 24
Slide 25: Appendix
Appendix ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 26: Presentation of Information
Presentation of Information 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP revenue excluding divestitures and on a constant currency basis (sometimes referred to as excluding divestitures and FX eff
Slide 27: Reconciliations of GAAP to Non-GAAP Measures: Constant Currency Revenue
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three Months Ended December 31, 2023 and 2022. Constant Currency Revenue “ Three Months Ended December 31, Constant Currency ® (in thousands) 2023 2022 $Change % Change FXEffect® —% Change ® Healthcare Solutions S
Slide 28: Reconciliations of GAAP to Non-GAAP Measures: Gross Profit
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three Months Ended December 31, 2023 and 2022. Gross Profit and Gross Profit Margin ® Three Months Ended December 31, (in thousands) 2023 2022 Gross Profit Sega Gross Profit Segin GAAP S 46348 404% = 54,630 41.2%
Slide 29: Reconciliations of GAAP to Non-GAAP Measures: Net Loss to Adjusted EBITDA
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three and Twelve Months Ended December 31, 2023 and 2022 Net Loss to Adjusted EBITDA Three Months Ended December 31, Year Ended December 31, (in thousands) 3 3 2 E | G,778) 2522) (16.896) (6,541) | 5 3 8 8 Stock-b
Slide 30: Reconciliations of GAAP to Non-GAAP Measures: Diluted Loss per Share
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three and Twelve Months Ended December 31, 2023 and 2022 Non-GAAP Diluted Loss per Share %) Three Months Ended December 31, Year Ended December 31, (in dollars) 2023 2022 2023 2022 Diluted loss per share $ Q30) $