3D Systems Corporation · NYSE:DDD
3D Systems — Investor Presentation (November 2013)
36 slides from 3D Systems's investor presentation, November 2013
Slide 1: Manufacturing the Future
MANUFACTURING THE FUTURE℠ November 2013 WWW.3DSYSTEMS.COM NYSE:DDD
Slide 2: Key Differentiators
KEY DIFFERENTIATORS Unmatched portfolio + leading brands + expanding channels Technology + financial strength and flexibility Open-ended growth opportunities Innovative business model with end-to-end solutions Focused, balanced growth initiatives Experienced management team 2 2
Slide 3: 30 Years of Continuous Innovation
30 YEARS OF CONTINUOUS INNOVATION THE WAY WE DESIGN | WHAT WE CREATE | HOW WE MANUFACTURE DISRUPTIVE | TRANSFORMATIVE | IMPACTFUL 3
Slide 4: Convergence Informs Growth
CONVERGENCE INFORMS GROWTH $ in billions 3D Printer Forecast Product Lifecycle Management (PLM) Forecast $12.0 $60 $10.0 $50 CAGR: 11% $8.0 CAGR: ~23% $40 $6.0 $30 $4.0 $20 $2.0 $10 $0.0 $0 2013 2015 2017 2019 2020 2012 2013 2014 2015 2016 Source: Wohler’s Report Source: CIMdata • Our solutions repl
Slide 5: Favorable Dynamics in Exponential Times
FAVORABLE DYNAMICS IN EXPONENTIAL TIMES REDEFINES MOORES’S LAW: COST | SPEED | CONVERGENCE FACTORS ACCELERATING ADOPTION FAVORABLE DYNAMICS R&D spend • Open Ended Economic Possibilities Time-to-market • Unmatched Innovative Complexity Stimulation Democratization • Far Reaching Social Impact Sustaina
Slide 6: Effective Growth Pillars
EFFECTIVE GROWTH PILLARS ECOSYSTEM | ORGANIC R&D | ACQUIRED R&D | INTEGRATED PLATFORMS ACCELERATE 3D PRINTER ADOPTION REINVENT EXPAND THE QUICKPARTS ENGINEER’S SERVICE DESKTOP BUILD GROW CONSUMER HEALTHCARE PRESENCE SOLUTIONS 6 6
Slide 7: Presence Extends Reach
PRESENCE EXTENDS REACH GLOBAL | LOCAL | NETWORKED Americas Europe • Rock Hill, SC • Benelux • Atlanta, GA • England • Andover, MA • France • Denver, CO • Germany • Herndon, VA • Italy • Langhorne, PA • Switzerland • Lawrenceburg, TN Asia-Pacific • Morrisville, NC • Australia • New York, NY • China •
Slide 8: Leadership Reflects Entrepreneurship
LEADERSHIP REFLECTS ENTERPRENUERIALSHIP
Slide 9: Democratization Broadens Access
DEMOCRATIZATION BROADENS ACCESS LIVINGROOM | CLASSROOM | GARAGE | DESKTOP | LAB | FACTORY DESIGN | MODELING PROTOTYPING | MANUFACTURING Price: $1,300 - $20,000 $20,000 - $250,000 $250,000 - $950,000 9
Slide 10: Print Engines Fuel Use Case Growth
Print Engines Fuel Use Case Growth MODEL | PROTOTYPE | COMMUNICATE | TOOL | CAST | MANUFACTURE SLA SLS SLM FTI CJP PJP MJP 10 10
Slide 11: Materials Accelerate Adoption
MATERIALS ACCELERATE ADOPTION 100 MATERIALS: PLASTIC | NYLON | METAL | RUBBER | WAX | COMPOSITE | CERAMIC High-Definition | Snap-Fit High- Impact | Light-Weight Durable | High-Temperature Biocompatible Conformal Structures Casting 11
Slide 12: Services Multiplex Accessibility
SERVICES MULTIPLEX ACCESSIBILITY CAPACITY | VARIETY | UTILITY | ACTIVITY Instant online quoting Latest additive and Quick-turn manufacturing with proprietary, traditional capabilities services integrated sales and worldwide manufacturing platform 12 12
Slide 13: Intuitive Tools Deliver Productivity
INTUITIVE TOOLS DELIVER PRODUCTIVITY VOXEL CAD | HAPTICS | MODEL-SCAN-PRINT WORKFLOW | VERIFICATION 13
Slide 14: Manufacturing Drives Growth
MANUFACTURING DRIVES GROWTH 14 14
Slide 15: Aerospace
AEROSPACE COMPLEXITY| WEIGHT | MANEUVERABILITY | FUEL EFFICIENCY |COST Source: GE /Atlantic Conference 15
Slide 16: Automotive
AUTOMOTIVE DESIGN | VALIDATE | TOOL | BRIDGE | CUSTOMIZE | MANUFACTURE SOURCE: Lotus F1 SOURCE: General Motors 16
Slide 17: Patient Specific Medical Devices
PATIENT SPECIFIC MEDICAL DEVICES ITE HEARING AIDS | ORTHOPEDIC BRACES | DENTAL RESTORATIONS | IMPLANTS The Bespoke Solution SOURCE: ORLive.com 17
Slide 18: Re-imagining Education
RE-IMAGINING EDUCATION UNLEASHING CREATIVITY | IMPARTING TOMORROW’S SKILLS TODAY 18
Slide 19: Differentiation
DIFFERENTIATION BROAD SOFTWARE MATERIALS PLATFORM RANGE CLOUD 7 PRINT PRINTING ENGINES CONSUMER QUICKPARTS ECOSYSTEM 19
Slide 20: Open Ended Growth Opportunities
OPEN ENDED GROWTH OPPORTUNITIES Rapid Prototyping Direct Competitors Function 3D Systems CONSUMER MANUFACTURING Fit Form Addressing full continuum of 3D : Ideation through Production 20 20
Slide 21: Bottom Line
BOTTOM LINE Unmatched portfolio with leading brands Technology + financial strength and flexibility Open-ended growth opportunities Innovative business model with end-to-end solutions Focused, balanced growth initiatives Experienced management team 21 21
Slide 22: Thank You
Thank You WWW.3DSYSTEMS.COM NYSE:DDD
Slide 23: Supplemental Financial Information
Supplemental Financial Information WWW.3DSYSTEMS.COM NYSE:DDD
Slide 24: Third Quarter 2013 Highlights
Third Quarter 2013 Highlights Revenue grew 49.9%, to a record $135.7 million on a 75.6% increase in printers & other products revenue and 29.7% overall organic growth Gross profit increased 52.4% on higher revenue and gross profit margin expansion to 52.6% even as printers continued to make up a hig
Slide 25: Record Quarterly Revenue
Record Quarterly Revenue $ in millions Third Quarter Printers & 2012 $ 34.1 Other 2013 76% $ 59.8 2012 $ 25.5 Materials 30% 2013 $ 33.2 2012 $ 31.0 Services 38% 2013 $ 42.7 2012 $ 12.1 Healthcare 2013 $ 16.9 39% 2012 $ 3.3 Consumer 2013 $ 13.5 305% 49.9% overall revenue growth 29.7% organic revenue
Slide 26: Consumer Products Preview
Consumer Products Preview Compared to the first half of 2013, third quarter consumer revenue nearly doubled and for the first nine months of 2013 amounted to $25.8 million, driven primarily by sales of printers In-store retail operations expanding to about 400 retail stores before the holiday season
Slide 27: New Products Fuel Our Growth
New Products Fuel Our Growth $ in millions Nine Months New Products Revenue $150 $100 $156 $50 $89 $51 $0 2011 2012 2013 New Products Revenue Performance 2013 New products revenue rose Launched 12 new products New products revenue rose 75% compared to the first in the first 9 months 2013 79% over Q3
Slide 28: Third Quarter GAAP Operating Results
Third Quarter GAAP Operating Results $ in millions, except earnings per share % Change Drivers 2012 2013 Favorable/ (Unvaforable) Revenue $ 90.5 $ 135.7 49.9% Gross Profit $ 46.9 $ 71.4 52.4% Gross Profit Margin 51.8% 52.6% Operating Expenses $ 28.4 $ 42.9 (50.7%) % of Revenue 31.4% 31.6% Operating
Slide 29: First Nine Months GAAP Operating Results
First Nine Months GAAP Operating Results $ in millions, except earnings per share % Change Drivers 2012 2013 Favorable/ (Unvaforable) Revenue $ 252.1 $ 358.6 42.3% Gross Profit $ 128.7 $ 187.5 45.7% Gross Profit Margin 51.1% 52.3% Operating Expenses $ 86.3 $ 124.6 (44.4%) % of Revenue 34.2% 34.8% Op
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended Nine Months Ended September 30, September 30, ($ in millions, except per share amounts) ($ in millions, except per share amounts) 2012 2013 2012 2013 GAAP net income $ 13.5 $ 17.7 $ 28.0 $ 32.9 Cost of sales adjustments: Amortization of intangibles $ 0.1 $ 0.1 $
Slide 31: Revenue by Category & Geography
Revenue by Category & Geography $ in millions Third Quarter Nine Months $160 $400 $ 135.7 $ 358.6 $140 $350 $120 $300 32% Services 32% $ 252.1 Services $100 $ 90.5 $250 $80 24% $200 36% 25% 34% Materials Materials $60 $150 $40 28% $100 30% $20 Printers 44% $50 Printers 43% 38% 34% $0 and Other $0 an
Slide 32: Operating Expenses
Operating Expenses $ in millions Third Quarter GAAP Non-GAAP % Change % Change Category 2012 2013 Favorable/ 2012 2013 Favorable/ (Unfavorable) (Unfavorable) SG&A $ 22.9 $ 32.1 (40.0%) $ 18.4 $ 22.1 (20.1%) R&D $ 5.5 $ 10.8 (95.1%) $ 5.5 $ 10.8 (95.1%) Total Operating Expenses $ 28.4 $ 42.9 (50.7%)
Slide 33: Working Capital
Working Capital $ in millions December September % Change ($ in millions) 2012 2013 Favorable/(Unfavorable) Cash $ 155.9 $ 345.4 121.6% Inventory $ 41.8 $ 66.1 (58.1%) Accounts Receivable $ 79.9 $ 114.0 42.7% Accounts Payable $ 32.1 $ 46.5 (45.0%) Working Capital $ 212.3 $ 436.8 105.8% • Cash on han
Slide 34: Updating FY 2013 Guidance
Updating FY 2013 Guidance We are increasing our revenue guidance range: ($ in millions) >Was in the range of $485 million to $510 million >Expected to be in the range of $500 million to $530 million We are decreasing our non-GAAP earnings per share range: >Was in the range of $1.05 to $1.20 >Expecte
Slide 35: Strategic Growth Initiatives Update
Strategic Growth Initiatives Update • Unprecedented demand for our professional and consumer printers continues to drive our growth • New materials, expanded manufacturing use cases and new SW products set the stage for further margin expansion • Phenix Systems enhances our direct metals printing ca
Slide 36: Outlook
Outlook We entered the fourth quarter of 2013 with positive sales momentum, driven by increased demand from advanced manufacturing and consumer activities We expect accelerated portfolio diversification, expanded channels and focused growth initiatives to deliver continued success We expect to launc