Slide 1: Stratasys, Inc. and Objet Ltd. Combining to Create a Leader in 3D Printing
Gsrnarasys: NASDAQ: SSYS heen ‘April 2012 Stratasys, Inc. and Objet Ltd. Combining to Create a Leader in 3D Printing G@srratasys Ps @BIJET Building for Future Growth
Slide 2: Safe harbor statement
Gsrnarasys: Ohare me Safe harbor statement NASDAQ : SSYS presentation about Stratasys’ beliefs, intentions and expectations, including statements regarding the expected timing and ultimate closing of the merger of Stratasys and Objet Ltd., as well as the benefits thereof, are forward-looking stateme
Slide 3: Important information for investors and shareholders
Gstratasys Important information for NASDAQ: SSYS Steven investors and shareholders In connection with the combination of Objet and Stratasys pursuant to an Agreement and Plan of ‘Merger (the "Merger”), Objet will ile with the Securities and Exchange Commission (the “SEC") a registration statement o
Slide 4: Building for future industry growth in 3D printing space
Gsreatasys: Building for future industry growth NASDAQ: SSYS. Ohare me ‘in 3D printing space
Slide 5: Key deal highlights
Gsreatasys: Key deal highlights NASDAQ: SSYS. 22h ane Merger Structure Owners! Listing/Ticker Board of Directors Management Headquarters Incorporation Timing Siratasys and Objet to combine in a stock-for-stock merger 155% owned by Stratasys shareholders and 45% owned by Objet shareholders on a fully
Slide 6: Objet fast facts
Gstratasys Objet fast facts NASDAQ: SSYS 22h ane Ta Global 3D printing — 3D printers and resin-based Enenraa sien Sales company, offering consumables awide range of + More than 2,800 customers high-performance —-_ Products range from entry- products level to high-end printers — Leading innovators si
Slide 7: Introduction to Objet offering
Gsreatasys: Introduction to Objet offering NASDAQ: SSYS. heen Objet offers a Objet SD printers deliver high 7 range of printers resolution and print quality ‘Competitive advantages of from the entry level Objet’s printing systems to high end - High resolution v Fast print speed v Destop Family Eden
Slide 8: Three distinct 3D printing platforms, complementary technologies
STRATASYS" Ohare me Three distinct 3D printing platforms, Complementary technologies NASDAQ: SSYS. FDMe Production-Grade ‘Thermoplastics PolyJet™ VV tighty Durable Pan Parts erformance Resins PolyJet» — SolidScape® | Office Friendly High Feature Functional Parts Detail & Finish 4 Scalable SolidScape
Slide 9: Complementary product portfolios
Gsrnarasys: 22h ane Product portfolio to address a broad range of applications Complementary product portfolios NASDAQ: SSYS. Concept Modeling ($15,000 - $30,000) Staats QgET — Functional models — Highly detailed = Office friendly models ~ Speed oe Ome ont Rapid Prototyping ($50,000 — $260,000) QgET
Slide 10: 3D content universe is growing significantly
Gsreatasys: 3D content universe is growing significantly NASDAQ: SSYS. Ohare me Multi-year secular growth opportunity rse ~ 14 million total ign a a ical, CAD seats “sia ral, ~ Smillion 3D t 3D ling Up CAD seats and growing = Only 42,500 ‘systems 3D Content Printing installed’ Direct Digital Manufac
Slide 11: Expanded footprint
Gsreatasys: Expanded footprint A global network of resellers and agents Ohare me Minneapots, MN, USA. Joint headquarters Merrimack *NHLUSA illeroa . MA.USA ‘Ontario, CA, USA. ~ Total resellers and agents: 260 ~ Total channel managers: 42 NASDAQ : SSYS Baden-Baden, Germany Tolyo. Japan * ‘Shanghai, C
Slide 12: Expandable customer base with cross-selling
Gstratasys Expandable customer base with cross-selling —_nasoaa:ssys SURASLE., Papa Cnn. Quer End Masts ‘Aerospace and Defense Bel 2 = Architecture Automotive Consumer Educational Industrial & Commercial >) CATERPULAR' Medical & Dental SeriptPro. Honeywell Toys =MeD ‘is ss repesetaine
Slide 13: Technology leadership
G: stratasys' Technology leadership NASDAQ: SSYS. Ohare me Material chemical Engineering and _ Extensive know-how in multiple formulations manufacturing 3) printing technologies ~ More than 500 patents granted fP and pending ~ Objet's PolyJet™ technology is the only technology with multi-material Ce
Slide 14: Expanded consumable offering
Gsreatasys: Expanded consumable offering 22h ane Gsrnatasys: {rennet ee Durable = ABS = Production-grade = Realistic parts = Translucent B ia, Rigid = Basic translucent = Polypropylenesike = High-temperature = ABS-ike = Transparent NASDAQ: SSYS Functional jh Performance ~ Ants = High erengh = Flame
Slide 15: Management team
Gsr ratasys' Management team 22h ane Chairman (Co-Founder of Stratasys (CEO, President, and Chairman of Stratasys since is inception in 1088 Inventor ofthe Siratasys FOM® Technology (Co-Founder and Vice President of Sales COFIDEA, Ine. from 1982 0 1082, now called ‘Si Technologies, Inc, a manufactur
Slide 16: Objet financial overview
Gstratasys Objet financial overview NASDAQ: SSYS 22h ane 3,378 $121m 61% $15m Cumulative Total revenue Gross margin Net income units sold ext) eo) ear) Revenue ($m) Gross Margin (%) [Operating Margin %) | Net income ($m) sere . Paice ED cs 4 ‘ar us — 3 zoe 2010 2011 | zo08 zoi0 zai | zooo 2010» 2011
Slide 17: Stratasys financial overview
Gstratasys Stratasys financial overview NASDAQ: SSYS 22h ane 16,283 $156m 54% $22m Cumulative Total revenue Gross margin Net income units sold 011) (011) ar) Revenue ($m) Gross Margin (%) | Operating Margin (%) | Net Income Fe. amo 2011 om 2011 Sowee: Supplements oot 02072 Came os rae ae Peencidien
Slide 18: Expected synergies & target operating model
Gsreatasys: Expected synergies & NASDAQ: SSYS. _ target operating model Near-term ‘opportunity Future revenue syne! Operating and tax synergies Long-term target ‘operating model ‘Accretive to cash eamings per share on a non-GAAP basis, within the frst 12 months after closing Cross-selling the comple
Slide 19: Financials for FYE 12/31/11
STRATASYS" Ohare me Financials for FYE 12/31/11 NASDAQ : SSYS Revenue 155.9 121.4 YoY % growth 32.3% 37.8% Gross Profit, 24 74a % margin 52.9% 61.2% EBITDA, 304 20.4 % margin 25.2% 16.6% EBIT 29.0 15 % margin 18.6% 14.5% Tax rate 2% 98% Net income 206 147 % margin 13.2% 12.1% ‘Non-GAAP net income 25
Slide 20: Roadmap to completion
Gstratasys Roadmap to completion NASDAQ: SSYS Spectre pee — Announcement: April 16%, 2012 — Stratasys shareholder approval Q3 2012 — Satisfaction of regulatory requirements Q3 2012 — Transaction expected to be completed Q3 2012 20
Slide 21: Combination to create significant shareholder value
Gsreatasys: Combination to create significant NASDAQ: SSYS. Sheceedenne pene shareholder value jer lio of inting is and logy ay G@ stratasys: ing ling 22 Pee dren ye ration nities QBIET gic a
Slide 22: Appendix 1: Reconciliation of Stratasys GAAP to non-GAAP results
G: stratasys' Appendix 1: Reconciliation of Stratasys GAAP nasosa: sys Sheceedenne pene to non-GAAP results ‘Twelve Months Ended December 31 (Sinmlions) zoe 2010 —20T1 ‘Reconciliation from GAAP Revenue to Non-GAAP Revenue TT GAAP revenue sooo S178 St88.0 Fir value of warrant related to OEM agreement
Slide 23: Appendix 1: Reconciliation of Stratasys GAAP to non-GAAP results
G: stratasys' Appendix 1: Reconciliation of Stratasys GAAP nasosa: sys ““" to non-GAAP results ‘Twelve Months Ended December 31 (Sinmlions) 72008 ‘Reconciliation from GAAP Operating Income to Non-GAAP Operating Income GAAP operating income 358 Fie value of warrant related to OEM agreement ®) - ‘Stoc
Slide 24: Appendix 1: Reconciliation of Stratasys GAAP to non-GAAP results
G: stratasys' Appendix 1: Reconciliation of Stratasys GAAP nasosa: sys Sheceedenne pene to non-GAAP results ‘Twelve Months Ended December 31 (Sinmlions) zoos 2010 2011 ‘Reconcilistion from GAAP Net Income to Non-GAAP Net Income TT GAAP netincome saa S04 $208 Fie value of warrant related to OEM agree
Slide 25: Appendix 1: Reconciliation of Stratasys GAAP to non-GAAP results
Gsreatasys: Appendix 1: Reconcili ion of Stratasys GAAP msoaa: ssys rene" to non-GAAP results (Sinmlions) FYE 2011 ‘Reconcilistion from GAAP Net GAAP netincome s208 Income tax expense 107 Interest income, net 2) Foreign currency tansacton losses, net oo COtherincome, net ea eer 3200 Reconcilistion r
Slide 26: Appendix 2: Reconciliation of Objet GAAP to non-GAAP results
G@stratasys Appendix 2: Reconciliation of Objet GAAP NASDAQ: SSYS SURATASYS to non-GAAP results (sie mtons Fo Reconslation from GAAP Net GAAP ret come sur Income at expense 18 France operce 2 ‘Reconlistion om IT ERTDA Deprecaton 28 pmertzaton EBITDA $204 2