3D Systems Corporation · NYSE:DDD
3D Systems — Investor Presentation (June 2021)
38 slides from 3D Systems's investor presentation, June 2021
Slide 1: Investor Presentation
Investor Presentation June 2021 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor 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 include statements concerning plans, objectives, goals
Slide 3: Key Messages
Key Messages New management team executing A leader in a large growth market Full Solution capabilities with focus a transformation journey on application driven growth 3
Slide 4: New Leader. New Future.
New Leader. New Future. Dr. Jeffrey Graves is President and CEO of 3D Systems and joined the company on May 26, 2020. Prior to joining 3D Systems, from 2012 to May 2020, he served as CEO, President and Director of MTS Systems Corporation, a global supplier of test, simulation, and measurement system
Slide 5: Purpose Statement
Purpose Statement We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products. 5
Slide 6: Transformation is Yielding Results
Transformation is Yielding Results Strategic Reorganize Restructure Divest/Invest Purpose Focus on operational execution Intentional action on our 4-stage plan 6
Slide 7: Why Additive Manufacturing (AM)? Tangible Benefits to AM Design
Why Additive Manufacturing (AM)? Tangible Benefits to AM Design Capability for Mass Improved Lead Part / Assembly Customization Times Consolidation Supply Chain Precision Weight Optimization and Parts Reduction Flexibility 7
Slide 8: Market Opportunity: 3D Printing Market Forecast
Market Opportunity: 3D Printing Market Forecast AM Growth Estimate $40 $37.2 SCALE OF AM GROWTH $30.9 Over the next 3 years, market is $30 expected to grow on average at 17% $24.9 CAGR, reaching $37B in 2026 USD (in Billions) $20.2 $20 $17.4 INDUSTRY GROWTH DRIVERS $15.0 High focus to introduce new
Slide 9: 3D Systems Is A Full Solution Provider
3D Systems Is A Full Solution Provider Services and Software Hardware and Materials Application experts & Customer Full range of 3D printers to address Innovation Centers AM needs in metals, plastics and wax Printing process and management Professional and production systems software tools 100+ Mate
Slide 10: AM Solutions Tailored to Applications That Demand High Reliability
AM Solutions Tailored to Dental Semiconductor Applications That Demand Simulations Automotive High Reliability Solutions Experts Medical Aerospace & Backed by an organizational Device Application Engineers Defense commitment to engineering Customer Success excellence Surgical Jewelry Planning Biopri
Slide 11: Develop, Validate, and Commercialize
Develop, Advanced manufacturing facilities at our Customer Innovation Centers in South Carolina, Colorado, Validate, and California, Belgium, and Germany. Commercialize • Support for design validation, testing/certification, Faster and low volume/batch manufacturing • 150+ machines • 24/7/365 produc
Slide 12: We Shape the Future of Additive Manufacturing
We Shape the Future of Additive Manufacturing With more AM solutions than anyone in the industry Pioneer digital First scalable regenerative dentistry production platform medicine 1K+ Develop leading Breakthrough world’s largest, software polymer fastest metal 3D printer 12 ©2021 3D Systems, Inc. |
Slide 13: Veterans Health Administration (VHA)
Healthcare Case Study Veterans Health VA Objectives • COVID-19 related manufacturing Administration (VHA) • Establish quality management system • Develop patient-matched medical device products • Regulatory compliance 3D Systems Solution 3D Systems will assist the VA with • Hardware / materials esta
Slide 14: Orthopedic
Healthcare Case Study Orthopedic Customer Challenge Machining-plus-coating traditional design and manufacturing Utilized holistic solutions approach processes lead to poor surface quality, high component to develop and commercialize the variability, long process cycle times, high inventory and waste
Slide 15: Investment Casting
Industrial Case Study Investment Casting Customer Challenge Traditional investment casting production methodology Utilized holistic solutions with limits geometric design options and involves long, materials, hardware and software complex manufacturing cycle times. elements tuned by application expe
Slide 16: Entering the "Invest" Stage of Transformation
Entering the “Invest” Stage of Transformation Strategic Reorganize Restructure Divest/Invest Purpose 16
Slide 17: Colorado Expansion
Colorado Expansion • Established operation for groundbreaking precision healthcare applications and medical technology • New investments in application expertise, hardware and software technology will enable us to accelerate time-to-market, expand our offerings, and better support the needs of our g
Slide 18: "Roadrunner" High Speed Fusion
“Roadrunner” High Speed Fusion Industry Challenges Address demanding aerospace and advanced Specific Applications automotive applications with size, speed and – Direct Printing: aerospace interiors precision that exceeds current market offerings. and ducting, drone components, automotive under dash
Slide 19: Regenerative Medicine
Regenerative Medicine Industry Challenges Through bioprinting, we have an Demonstrate the capability to print complex thin- opportunity to address patient needs walled structured using biocompatible materials for for organs and soft tissue development applications such as tissue-on-a-chip, using Add
Slide 20: Acquisition: Allevi
Acquisition: Allevi • Developer of bioprinting solutions: bioprinters, biomaterials / bioinks, and specialized laboratory software • Established presence in over 380 medical and pharmaceutical laboratories in over 40 countries • Positions us to leverage the technology we have developed for in vivo a
Slide 21: Acquisition: Additive Works
Acquisition: Additive Works • Software company focused on optimization and automation of AM print set-up and workflow generation • Highly automated simulation software interfaces seamlessly with leading CAD systems as well as our 3DXpert and other print platforms • Increases productivity by reducing
Slide 22: Financial Highlights
Financial Highlights ©2021 3D Systems, Inc. 22 | All Rights Reserved.
Slide 23: Q1 Summary
Q1 Summary QUARTER ENDED MARCH 31, 2021 2020 HIGHLIGHTS (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) Q1 Revenue increased 7.7% YoY; 16.6% REVENUE $ 146.1 $ 135.6 excluding divested OPERATING LOSS $ (2.0) $ (18.2) business NET INCOME (LOSS) $ 45.2 $ (18.9) INCOME (LOSS) PER SHARE - DILUTED $ 0.36 $ (0.17)
Slide 24: Revenue by Market
Revenue by Market $ in millions Healthcare Revenue Q1 YoY Industrial Revenue Q1 YoY (excluding divested business) $72.5 +0.7% $73.6 $73.1 +38.7% $52.3 Q1 2020 Q1 2021 Q1 2020 Q1 2021 24 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 25: Gross Profit Margin
Gross Profit Margin • Year-over-Year improvement driven by higher sales volume, mix including software sales and the impact of our cost reduction activities • Grew margins despite divesting Cimatron software business 50% 50% GAAP GPM Non-GAAP GPM 45% 44% 45% 44% 43% 43% 43% 43% 42% 42% 41% 40% 40% 3
Slide 26: Operating Expenses
Operating Expenses GAAP operating expenses decreased 12.1% compared to first quarter 2020 due to savings achieved from cost restructuring activities and the impact of divested businesses offset by higher stock compensation expense Non-GAAP operating expenses decreased 18.7% compared to the prior yea
Slide 27: Adjusted EBITDA Margin
Adjusted EBITDA Margin Defined as non-GAAP Operating Income plus Depreciation 15.0% 13.6% 13.3% 10.0% 5.3% 5.0% 1.6% 0.0% -3.2% -5.0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 See appendix for a reconciliation of Non-GAAP Operating Income and Adjusted EBITDA. 27 ©2021 3D Systems, Inc. | All Rights Res
Slide 28: Strong Balance Sheet and Cash Generation
Strong Balance Sheet and Cash Generation • Generated $28.5 million of cash from operations • Repaid $21.4 million of debt; debt free • $133.0 million of cash, cash equivalents, and restricted cash • $100.0 million undrawn revolver with approximately $92.0 million of availability 28 ©2021 3D Systems,
Slide 29: Trending Up: Growing Profitably and Generating Cash
Trending Up Growing Profitably and Generating Cash YoY Revenue Growth Rates Cash From Operations 20% $35 10% $25 USD in Millions 0% $15 Q1:20 Q2:20 Q3:20 Q4:20 Q1:21 -10% $5 -20% -$5 Q1:20 Q2:20 Q3:20 Q4:20 Q1:21 -30% -$15 -40% -$25 29 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 30: Summary
Summary Focus on operational execution • Return to year-over-year growth • Strong balance sheet and cash generation Intentional action on our 4-stage plan • Exploring additional divestitures of non- core assets • Investing for sustained growth and profitability 30 ©2021 3D Systems, Inc. | All Rights
Slide 31: Thank You
Thank You Find out more at: www.3dsystems.com 3 31 1 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 32: Appendix
Appendix ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 33: Presentation of Information
Presentation of Information 3D Systems reports is financial results in accordance with GAAP. To facilitate a better understanding of the impact that strategic acquisitions, non-recurring charges and certain non-cash expenses had on its financial results, management reviews certain non-GAAP measures,
Slide 34: Non-GAAP Reconciliation - Operating Income (Loss) (Unaudited)
Non-GAAP Reconciliation - Operating Income (Loss) (Unaudited) First Quarter Non-GAAP Operating Income (Loss) Quarter Ended March 31, (in millions) 2021 2020 GAAP Operating loss $ (2.0) $ (18.2) Adjustments: Amortization, stock-based compensation & other (1) 13.4 10.7 Legal, acquisition and divestitu
Slide 35: Non-GAAP Reconciliation - Net Income (Loss) (Unaudited)
Non-GAAP Reconciliation - Net Income (Loss) (Unaudited) First Quarter Non-GAAP Net Income (Loss) Quarter Ended March 31, (in millions) 2021 2020 GAAP Net income (loss) $ 45.2 $ (18.9) Adjustments: Amortization, stock-based compensation & other 13.4 10.7 Legal, acquisition and divestiture related (1)
Slide 36: Non-GAAP Reconciliation - EPS (Unaudited)
Non-GAAP Reconciliation - EPS (Unaudited) First Quarter Non-GAAP Net Income (Loss) per Share Quarter Ended March 31, 2021 2020 GAAP Net income (loss) per share - basic $ 0.37 $ (0.17) GAAP Net income (loss) per share - diluted $ 0.36 $ (0.17) Adjustments: Amortization, stock-based compensation & oth
Slide 37: Non-GAAP Reconciliation - GP and GPM (Unaudited)
Non-GAAP Reconciliation - GP and GPM (Unaudited) Quarterly 2020 and 2021 Non-GAAP Gross Profit & Margin 2021 2020 Quarter Ended Quarter Ended (in millions) March 31 March 31 GAAP Gross Profit $ 64.2 $ 57.1 GAAP Gross Profit Margin 44.0 % 42.1 % Adjustments: Amortization, stock-based compensation & o
Slide 38: Non-GAAP Reconciliation - Operating Expense (Unaudited)
Non-GAAP Reconciliation - Operating Expense (Unaudited) Quarterly 2020 and 2021 Non-GAAP Operating Expenses 2021 2020 Quarter Ended Quarter Ended (in millions) Mar 31 Mar 31 GAAP SG&A Expenses $ 49.6 $ 56.1 GAAP R&D Expenses 16.6 19.2 GAAP Operating Expenses 66.2 75.4 Adjustments to R&D Expenses: Co