3D Systems Corporation · NYSE:DDD
3D Systems — Investor Presentation (June 2017)
29 slides from 3D Systems's investor presentation, June 2017
Slide 1: Corporate Presentation - June 2017
Vyomesh Joshi, President & CEO Corporate Presentation - June 2017 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this release 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, uncertainti
Slide 3: Focused Execution
Focused Execution • Customer centric, market based strategy to make 3D production real • Targeted verticals and focused innovation • Quality as company-wide priority • Committed to continuous innovation • Leverage partnerships to enhance our end-to-end solutions • Implement an operating structure to
Slide 4: Leadership Team
Leadership Team Vyomesh Joshi (VJ) Doug Vaughan Reinhard Winkler Chuck Hull Andy Johnson President and SVP, Marketing and EVP, EVP, Chief Legal Officer SVP, Supply Chain Chief Executive Officer Demand Generation Chief Technology Officer and Secretary Kevin McAlea John McMullen Chris Morgan Jim Ruder
Slide 5: Operating Framework
Operating Framework • Clear progress in quality, reliability, supply chain and overall cost structure • Reduced costs of sales as a result of supply chain and manufacturing improvements • Enhanced channel, including better communication and training for partners • More robust product introduction pr
Slide 6: Industry-Leading Capabilities with Global Scale
Industry-Leading Capabilities with Global Scale • Go seamlessly from physical to digital to physical with 3D Systems’ unmatched portfolio of digitization, design and production solutions • Industry-leading industrial 3D printing technologies • Widest range of technology and materials • Comprehensive
Slide 7: Plastics Portfolio
Plastics Portfolio $1M ProX® ProX® 950 sPro™ 800 $300k 140/230 sPro 60 6000 / ProX® 7000 SLS 500 $200k MJP 5600x $100k CJP MJP 3600 860Pro CJP (Dental, Wax) 660Pro $50k CJP CJP MJP 2500 CJP 460Pro 360 Family 260C Software Key Stratasys, BinderJet, FDM Stratasys, Keyence EOS, HP Stratasys, UnionTech
Slide 8: Revolutionary Plastics Production with Figure 4
Revolutionary Plastics Production with Figure 4 Customize and Scale Across Industrial and Healthcare Applications Hand Pour 1 Liter Small Pump 5 gallon 55 gallon Material Industrial Pump Materials Containers Material Delivery Print Engines Standard Plate Standard Tray Linear Robot Large Format Non-p
Slide 9: Disruptive Total Cost of Operations
Disruptive Total Cost of Operations Industrial Application Example – Figure 4 vs. Traditional SLA Figure 4 Production Configuration with 16 Print Engines Improvement Printers Required 225 x Fewer Annual Throughput Per Printer (prints) 225 x Higher Facility Floor Space (sq ft) 26 x Lower Printer Upke
Slide 10: Precision Metal Printing Solutions
Precision Metal Printing Solutions ProX DMP 320 + Range of Materials + 3DXpert • Full Metals Solution • Integrated Post-Processing • CAD-based Environment • Integrated Material Databases • Precise Print Strategies • Certified and Qualified Production Facilities • Repeatability and Reliability • Addr
Slide 11: Making 3D Production Real
Making 3D Production Real Rapid Indirect Custom Complex 3D Production Prototyping Manufacturing Manufacturing Manufacturing Productivity, durability, repeatability and total cost of operations gains made in 3D Production can benefit other waves 3D Systems 11
Slide 12: What 3D Production Delivers
What 3D Production Delivers DIGITALLY MANUFACTURED PART ECONOMICS • Weight reduction • Reduction of tooling • Assembly consolidation • Decentralized/more agile manufacturing • Custom geometries • Supply chain consolidation and lower inventory • Improved fluid dynamics • Mass customization • Optimize
Slide 13: Healthcare
Healthcare TODAY’S CHALLENGES • Time to develop expertise • Operating room costs • Patient-specific anatomies • Complex and unique diagnoses HOW 3D SYSTEMS ADDRESSES THOSE CHALLENGES • Enable doctors to drive down costs and reduce operating time • Device development and manufacturing in validated pr
Slide 14: Precision Healthcare Focus
Precision Healthcare Focus Surgical Simulation Surgical Planning Device Design & Bioprinting Manufacturing • Over 500,000 medical devices printed • Over 75,000 surgical cases planned • Over 10,000 surgeons trained • Over 2,800 simulators installed • ISO certified facilities and processes • 90 surgic
Slide 15: Figure 4 + NextDent Disrupts Dental Industry
Figure 4 + NextDent Disrupts Dental Industry • Over 90% of all current production is milling, which can be disrupted by our powerful combination • Versatile, scalable solution for 12 different indications • Speed, productivity, accuracy, repeatability and durability • Dedicated to reduced total cost
Slide 16: Automotive
Automotive TODAY’S TACTICAL CHALLENGES • Weight + fuel = emissions • Faster time-to-market • Supply chain inefficiencies HOW 3D SYSTEMS ADDRESSES THOSE CHALLENGES • Drive down costs of vehicle manufacturing through light- weighting parts • Innovation in more complex, integrated parts produced on- de
Slide 17: 3D Production for Automotive
3D Production for Automotive Significantly improved Light-weight parts to On-demand production of time-to-market deliver fuel economies current and obsolete parts • Highly functional, very fast • Weight-optimized parts while • Fast reverse engineering prototypes maintaining strength-to-weight and ma
Slide 18: Aerospace
Aerospace TODAY’S TACTICAL CHALLENGES • Weight + fuel • Supply chain and MRO efficiencies • Technology and material certification HOW 3D SYSTEMS ADDRESSES THOSE CHALLENGES • Validating material/parameters and in- machine sensors provide quality control • Driving down costs of flight through lower we
Slide 19: 3D Production in Aerospace
3D Production in Aerospace Rapid production Revolutionizing the Light-weighting of parts to deliver of airworthy parts supply chain significant fuel economies • Rapid shell investment casting with • Fast reverse engineering & • Weight-optimized parts while antimony-free materials manufacture of out-
Slide 20: 3D Systems' Value Proposition
3D Systems’ Value Proposition Productivity | Repeatability | Durability | Throughput | Total Cost of Operations (TCO) 3D PRINTER USE CASE VALUE PROPOSITION Full packed build of small ProX® SLS 500 o Average 20% lower part cost than Multi-Jet Fusion functional parts Full packed build of small o Up to
Slide 21: Q1 2017 Financial Highlights
Q1 2017 Financial Highlights • Continued strength in production printers, materials and healthcare • Expanded GPM to 51.3% on results of executing cost savings initiatives • Balanced investments in go to market and innovation while driving operational excellence • Made focused R&D investments, inclu
Slide 22: Outlook and 2017 Guidance
Outlook and 2017 Guidance • Revenue growth between 2% and 8% – In the range of $643 million to $684 million • GAAP EPS improvement of 106% to 117% – In the range of $0.02 to $0.06 per share • Non-GAAP EPS increase of 10% to 20% – In the range of $0.51 to $0.55 per share • Continued positive cash flo
Slide 23: Drivers to 2017 Guidance
Drivers to 2017 Guidance Q1 2017 Performance Rest of the Year Expectations Revenue (YOY): • Total growth of 3% • Continue/accelerate growth • Printer revenue down 4% • Return to growth • Materials grew 11% • Growth continues with utilization/mix benefits • Software flat • Return to growth • Healthca
Slide 24: We are at an inflection point
We are at an inflection point. 3D printing is shifting from prototyping to production. We believe we are well positioned to make 3D production real and drive profitable growth. 24
Slide 25: Thank you.
ZQ 3D SYSTEMS Thank you.
Slide 26: Supplemental Information
Supplemental Information 26
Slide 27: GAAP to Non-GAAP Reconciliation – Q1 2017
GAAP to Non-GAAP Reconciliation – Q1 2017 Quarter Ended March 31, 2017 Quarter Ended March 31, 2016 Amortization, Amortization, Stock-Based Legal and Stock-Based Legal and Compensatio Acquisition- Portfolio Compensatio Acquisition- Portfolio (in thousands, except per share amounts) GAAP n & Other Re
Slide 28: Q1 2017 Financial Results
Q1 2017 Financial Results Quarter Ended March 31, 2017 Quarter Ended March 31, 2016 Amortization, Amortization, Stock-Based Legal and Stock-Based Legal and Compensatio Acquisition- Portfolio Compensatio Acquisition- Portfolio (in thousands, except per share amounts) GAAP n & Other Related Restructur
Slide 29: GAAP to Non-GAAP Reconciliation – 2017 Guidance
GAAP to Non-GAAP Reconciliation – 2017 Guidance Full Year Ended December 31, 2017 (in millions, except per share amounts) Low High Revenue $ 643 $ 684 GAAP Earnings per Share $ 0.02 $ 0.06 Estimated adjustments to arrive at non-GAAP EPS: Amortization 0.30 0.30 Stock Based Compensation 0.14 0.14 Acqu