3D Systems Corporation · NYSE:DDD
3D Systems — Investor Presentation (May 2022)
30 slides from 3D Systems's investor presentation, May 2022
Slide 1: Investor Presentation
3D SYSTEMS Investor Presentation May 2022 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 2: 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 3: Purpose Statement
Purpose Statement We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products. ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 4: Investment Thesis
Investment Thesis 3D Differentiators Large and growing AM Market 01 Relentless AM application focus in high value markets Serviceable Market 1 02 Broadest range of hardware (metal ~$6 billion+ and polymer), software and materials 03 Scale to support customer needs from inception to fleet production
Slide 5: Company Rebirth for an Even Stronger Future
Company Rebirth for an Even Stronger Future 1986 - 2020 July 2020 2021 and Beyond 4 Non-Core Businesses (Exited) Industrial Solutions Printers Focus Healthcare Solutions Materials High Value Growth Markets with o Bioprinting (Laboratories) Significant Barriers o Regenerative Medicine (Humans) Softwa
Slide 6: Strong Executive Leadership Team
Strong Executive Leadership Team Wayne Pensky Reji Puthenveetil Menno Ellis David Leigh Interim Chief Executive Vice President, Executive Vice President, Chief Technology Officer, Financial Officer Industrial Solutions Healthcare Solutions Additive Manufacturing Jeff Graves President and Chief Execu
Slide 7: Who We Are and Who We Serve
Who We Are and Who We Serve 3D Systems Today Delivering Value to our Customers 1,900+ 20+ Broadest Range of AM 20,000+ Employees Market segments Solutions Technologies Production printers 4,800+ worldwide served o 7 metal and polymer printing active today Tons of proprietary platforms materials cons
Slide 8: Advantages of Additive Drive Industry Growth
Advantages of Additive Drive Industry Growth Why Additive? 3D Printing Market Size ($B)1 $45-50 01 Design Flexibility 03 Mass Customization $15 Low Volume Parts & Faster 2021 2022 2023 2024 2025 2026 02 04 Supply Chain Flexibility Product Cycles 1. Market includes hardware, software, materials and p
Slide 9: Additive Manufacturing is Transforming Existing Industries…
Additive Manufacturing is Transforming Existing Industries… Aerospace & Defense Automotive Healthcare Low Volume Interior Components Faster Product Development Patient Specific Devices & Implants Light-weighting & Complex Tooling Aids Digital Dentistry Geometries for Structural Components Complex Ge
Slide 10: And Creating Entirely New Ones…
And Creating Entirely New Ones… Bioprinting for Laboratory Applications Regenerative Medicine for Human Applications Academic Labs for the Study of Regenerative Solid human organs to address critical illness and Medicine (printers & consumables for research) extend life (lungs, livers, kidneys, othe
Slide 11: Leading and Differentiated in the Market
Leading and Differentiated in the Market Larger Point Competitors Solutions Application expertise and advanced SOME manufacturing proving grounds Robust range of technologies in polymers and metals Scale and footprint to serve global organizations Software to manage additive SOME LIMITED manufacturi
Slide 12: Our Strategic Focus
Our Strategic Focus Purpose Business Strategy Deliver leading additive solutions for industrial and Enhance core Healthcare and Industrial businesses & healthcare applications expand Software and RegMed Grow Gross Profit Faster Than Revenue Execution Strategic Focus New Solution Revenue Recurring Re
Slide 13: Most Comprehensive Product Portfolio in the Industry
Most Comprehensive Product Portfolio in the Industry 9 Printer Platforms 80+ Application Engineers 10 Application Software Solutions Solution 130+ 37 Materials Printer Models 13 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 14: Our Solutions Approach Leverages Our Significant Scale
Our Solutions Approach Leverages Our Significant Scale Explore Innovate Develop Validate Produce Scale Strategic consulting Joint applications QA and process Training, validation, Production and Scale up and to identify customer development and characterization and certification manufacturing techno
Slide 15: Capabilities to Solve Problems in Multiple Large Segments
Capabilities to Solve Problems in Multiple Large Segments Automotive Aerospace Manufacturing Healthcare Bioprinting 15 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 16: Advancing Innovation Through Our Culture
Advancing Innovation Through Our Culture Vison Innovating for a Sustainable World People Climate Waste Advancing innovation Developing solutions to use Implementing actions to reduce through our people resources responsibly and eliminate waste Diversity & Reduce Reduce Inclusion Energy Waste Talen
Slide 17: Strong Progress Towards Long Term Goals in 2021
Strong Progress Towards Long Term Goals in 2021 Divestitures created a focused business positioned for success $544M 32% / 17% 2021 FY Revenue 1 Revenue growth versus 2020 and 2019 1 Revenue outperformed 2020 and pre-pandemic 2019 43.0% 2021 FY Gross Margin 1 Gross margin improvements reflects outst
Slide 18: Balanced and Resilient Revenue Profile
Balanced and Resilient Revenue Profile 2021 Recurring Revenue1 2021 Segment Revenue1 36% Recurring Healthcare 50% 50% Non-Recurring Industrial 64% ~2/3rd of revenue is recurring, primarily driven by materials, services and software businesses 1. Adjusted for divestitures 18 ©2022 3D Systems, Inc. |
Slide 19: Recurring Revenue Business Model Creates Value
Recurring Revenue Business Model Creates Value Multiple opportunities to drive lifetime revenue ~4X Production applications Software Enhanced services Materials 1X Printers Software Services Materials Total Average Single Printer Lifetime Revenue 19 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 20: Scale Fuels Growth
Scale Fuels Growth Distribution of Customer Fleet Size Distribution of 2021 Printer Sales Number of Printers by Size of Customer Fleet1 >8,500 >7,000 New Customer 47% >3,500 53% Existing Customer >1,500 >400 customers customers 1 2-4 5+ Number of printers owned 11% 5-YR CAGR of Fleet Customers 2 1.
Slide 21: Long-Term Financial Targets
Long-Term Financial Targets Growth Drivers Expanding market opportunities drive printer sales 2027 Targets Growth of software to manage end-to-end: design, print and production management Revenue $1 Billion Materials / services consumption Gross Margin 50% Margin Improvements Driven By R&D 10% Print
Slide 22: Why 3D Systems?
Why 3D Systems? Expanding Relentless AM Focused Demonstrated Targeting margins application business + double-digit $1B revenue through focus in high strong balance revenue in 5 years scale, mix, value markets sheet to growth refreshed support growth product portfolio 22 ©2022 3D Systems, Inc. | All
Slide 23: Thank You
Thank You Find out more at www.3dsystems.com ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 24: Appendix
Appendix 24 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 25: 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, non-GAAP Gross profit, non-GAAP Gross profit margin, non-GAAP SG&A, adjusted EBITDA and adjusted EBITDA Margin. No
Slide 26: Unaudited Reconciliation of Prior Years Revenue Excluding Divestitures, 2019-2021 (non-GAAP)
Unaudited Reconciliation of Prior Years Revenue Excluding Divestitures, 2019-2021 (non-GAAP) (in millions) 2019 2020 2021 Revenue Healthcare $ 244.5 $ 246.4 $ 306.2 Industrial 391.9 310.8 309.4 Total Revenue 636.3 557.2 615.6 Revenue From Divestitures: Healthcare 53.2 50.5 31.8 Industrial 118.1 94.1
Slide 27: Unaudited Reconciliations of GAAP to Non-GAAP measures
Unaudited Reconciliations of GAAP to Non-GAAP measures For the year ended December 31, 2020 (in millions, except per share data) 2020 2020 Amortization, Legal, acquisition Impairment of stock-based Cost optimization Product end of Goodwill GAAP and divestiture - cost-method Non-GAAP compensation & p
Slide 28: Unaudited Reconciliations of GAAP to Non-GAAP measures
Unaudited Reconciliations of GAAP to Non-GAAP measures For the year ended December 31, 2021 (in millions, except per share data) 2021 2021 Amortization, Legal, acquisition stock-based Cost optimization Product end of GAAP and divestiture - Non-GAAP compensation & plan life adjustment related(2) othe
Slide 29: Non-GAAP Operating Income to Adjusted EBITDA Reconciliation
Non-GAAP Operating Income to Adjusted EBITDA Reconciliation For the years ending December 31, 2021 and 2020 2021 2020 Revenue $ 615.60 $ 557.20 Non-GAAP Operating Income 49.8 0.3 Depreciation 24.3 28.4 Adjusted EBITDA $ 74.1 $ 28.7 Adjusted EBITDA Margin 12.0% 5.2% 29 ©2022 3D Systems, Inc. | All Ri
Slide 30: Reconciliation of GAAP Operating Income to Adjusted EBITDA excluding Divestitures
Reconciliation of GAAP Operating Income to Adjusted EBITDA excluding Divestitures For the years ending December 31, 2021 and 2020 2020 2021 GAAP Operating Income (Loss) $ (119.0) $ (33.1) plus: Adjustments from GAAP to Non-GAAP 119.4 82.8 less: Operating Income from Divestitures (34.6) (16.2) Non-GA