Slide 1: Third Quarter and Nine Months 2016 Conference Call & Webcast
ZN 3D SYSTEMS Third Quarter and Nine Months 2016 Conference Call & Webcast
Slide 2: Welcome and Participants
Welcome and Participants + Vyomesh Joshi — President & Chief Executive Officer + John McMullen To participate via phone, - Executive Vice President & Chief Financial Officer please dial: + Andy Johnson US: 1-800-407-8291 — Executive Vice President & Chief Legal Officer Outside the US: 1-201-689-8345
Slide 3: Forward Looking Statements
Forward Looking Statements ‘We prese von contahs certah stakme ts atae rotstitimers off EDrkalorct reat OE are mard-oekhg staemen’ WEN te mearhgortle Pruse Seotites Lgatoy efom Actor 1985. Fomard-ockig statment hold: statemens coxcem hg plans, ctlecthes, gvak,stategks, expectatous, teatbas, profecti
Slide 4: Vyomesh Joshi (VJ), President & Chief Executive Officer
AN 3D SYSTEMS Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 5: Differentiation
Differentiation Ecosystem Enables Workflow @ee oo 80 DIGITIZE DESIGN SIMULATE MANUFACTURE INSPECT So Si ee ee ec
Slide 6: Key Verticals
Key Verticals
Slide 7: Prioritizing Portfolio and Resources
Prioritizing Portfolio and Resources « Exiting: — CubePro — CubeJet — Prox 400 — Project Atlas (continuous high speed jetting) « Redirecting resources to advance and accelerate next- generation capabilities
Slide 8: John McMullen, Executive Vice President & Chief Financial Officer
AN 3D SYSTEMS John McMullen Executive Vice President & Chief Financial Officer
Slide 9: Operating Results
Operating Results Third Quarter YN Favorable YA Favorable [/San enititons exceptper shore) — (Unfavorable) Revenue $1564 $151.6 $467.0 $882.8 |G ross Profit: S70 (3%) $269 S216 lOperating Expenses % of Revenue [ene | a0 sxsa_[_9e07_[ 1m | S7.7% [Operating Loss % of Revenue Net Loss ———— pee |} ee |_
Slide 10: Operating Results
Operating Results Seamuivens exceptacr sare) Third Quarter YF Favorable 2015 (Unfavorable) ¥/¥ Favorable (Unfavorable) Revenue |Gross Profit Gross Profit Margin $151.6 (3%) JOperating Expenses 9% of Revenue JOperating Income 96 of Revenue Net iname % of Revenue Earnings Per Share ‘We Ake no GAAP meu
Slide 11: Reconciliation of GAAP to Non-GAAP — Q3
Reconciliation of GAAP to Non-GAAP — Q3 iacetect the qunrerenied arch 24.20 6and ener periods was nkubted quartet, tied onthe Company's crea te mtr for eachqunrer.ThueMect Pr the fqusrerendes Sptermber30, 2015 ra: cnkubtes tres on the Componys guste US.t01 WE, which wa: Geto €: ot MevalinGon sioner
Slide 12: Reconciliation of GAAP to Non-GAAP - Months
Reconciliation of GAAP to Non-GAAP - 9 Months sams -35 3 — 5 ao 5 ame 5 - az fos = won __ biz oy a0 oo = “7 me 26 o 486% 509% 80% m0 ean, coy oo tae az oy Reina ripen 673 = = wo __as me = Toad opoumig estes m0 EH = oo sm co ae 4a past we oa ° ry Be (0 7 et a ae ts 5 = = is, 13 0 if Mee es ovee anaes
Slide 13: Revenue Drivers
Revenue Drivers Compared to Q3 2015: Sin mio: om + Healthcare solutions ma 509 srs pi staid $151.6 $152.5 pes, eee 5 Materials ee Software ff - 1m ” Ho Printers cm " . . . . 7 On demand parts a a: nr a a ™~
Slide 14: Gross Profit & Margin
Gross Profit & Margin + Charges related to portfolio prioritization negatively impacted Q4 2015 and Q3 2016 gross profit and margin + Excluding these non-recurring charges, Q3 2016 non-GAAP GPM was 51.0% 60.0 $700.0 2a suo An.cre 300% $1000 200% su noe 0.0% &, ‘Sie ities Q12028 Q2201S 432015 Qr2OIs
Slide 15: Operating Expenses
Operating Expenses 105.4 105.7 100.0 ry 98.3 91.0 bes a as son Hi iba ; 2 aa : 33 $3 €3 38 8 2 2 2 2 012015 022015 32015 982015 RED mSGRA
Slide 16: Cash and Balance Sheet
Cash and Balance Sheet + Generated $7.2 million of cash from sisa9 operations in Q3 2016 and $38.2 million in the first nine months of 2016 + Cash of $179.4 million at September 30, 2016, an increase of $23.7 million year to date + Inventory decreased sequentially to $113.7 with plans for additional
Slide 17: Operating Framework
Operating Framework OPERATIONAL EXCELLENCE CAPITAL
Slide 18: Vyomesh Joshi (VJ), President & Chief Executive Officer
AN 3D SYSTEMS Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 19: Making 3D Production Real
Making 3D Production Real Use-case by use-case, we are focused on helping customers overcome traditional barriers to 3D production: Productivity Durability R ability Total Cost of Operations (TCO)
Slide 20: Q&A Session
AN 3D SYSTEMS Q&A Session In the USA: 1-877-407-8291 Outside the USA: 1-201-689-8345
Slide 21: Thank You
4& 3D SYSTEMS Thank You