Slide 1: Fourth Quarter and Full Year 2020 Financial Results (Unaudited)
Fourth Quarter and Full Year 2020 Financial Results (Unaudited) March 2, 2021 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President and Chief Executive Officer Jagtar Narula To participate via phone, Executive VP and Chief Financial Officer please dial: Andrew Johnson 1-201-689-8345 Executive Vice President and Chief Legal Officer John Nypaver Vice President, Treasurer Melani
Slide 3: Forward Looking Statements
Forward Looking Statements 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, ob
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4
Slide 5: 3D Systems' Purpose Statement
3D Systems' 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 Double-digit consecutive quarter revenue growth in Healthcare and Industrial Company returned to profitability and positive cash flow in Q4 First quarter of YoY growth since 2018 6
Slide 7: Reorganize
Reorganize Focus on key applications within Healthcare and Industrial markets Combined hardware, materials, software and services into an application- oriented and customer-driven integrated unit Customer success team created to focus on aftermarket efforts 7
Slide 8: Restructure
Restructure Achieved $60M run-rate cost savings in 2020 Expect additional cost reduction of $20M in 2021 and another $20M related to divestitures and other future actions 8
Slide 9: Divest
Divest Divest non-core assets and Invest for growth and profitability Closed divestiture of non-core assets including Cimatron and GibbsCAM subtractive manufacturing software businesses 9
Slide 10: Invest
Invest Investing in 2021 to accelerate future growth • Organizational ◦ Solution selling capability ◦ People and Talent • Materials • Programs ◦ Regenerative Medicine ◦ High Speed Fusion ◦ Product Enhancements 10
Slide 11: Regenerative Medicine
Regenerative Medicine • VISION: Through bioprinting, we have an opportunity to positively impact the world in a more meaningful way than we ever have before, by addressing patient needs for organs and soft tissue development using Additive Manufacturing. Human vasculature model created using Print t
Slide 12: Roadrunner 'High Speed Fusion'
Roadrunner 'High Speed Fusion' • VISION: To provide the most advanced Specific Applications platform of any high throughput industrial – Direct Printing: aerospace interiors fused-filament offering in the market today. and ducting, drone components, automotive under dash and under hood, and other ge
Slide 13: Jagtar Narula
Jagtar Narula Chief Financial Officer 13
Slide 14: Q4 and FY 2020 Summary (Unaudited)
Q4 and FY 2020 Summary (Unaudited) Fourth Quarter Year Ended (in millions, except per share amounts) 2020 2019 2020 2019 Revenue $ 172.7 $ 168.2 $ 557.2 $ 636.4 Highlights Operating Income (Loss) 0.7 (4.7) (119.0) (57.1) • Q4 Revenue increase Net Loss (19.8) (4.7) (149.6) (69.6) 2.6% YoY and 26.8% L
Slide 15: Revenue by Market (Unaudited)
Revenue by Market (Unaudited) $ in millions Healthcare Revenue Q4 QoQ Industrial Revenue Q4 QoQ $86.6 $86.0 $75.3 $60.8 42.4% 14.2% Q3 2020 Q4 2020 Q3 2020 Q4 2020 Healthcare Revenue Q4 YoY Industrial Revenue Q4 YoY $86.6 $109.7 $86.0 $58.5 48.0% (21.6)% 15 Q4 2019 Q4 2020 Q4 2019 Q4 2020
Slide 16: Gross Profit Margin (Unaudited)
Gross Profit Margin (Unaudited) • Q4 GAAP gross profit margin was 42.0% • Q4 non-GAAP gross profit margin was 42.9% 50% 46% 47% 43% 44 43%44% 44%44% 42%43% 43%43% 42% 43% 41% 40% 31% 30% 20% 10% 0% Q1 2019 Q2 2019 3Q 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 GAAP GPM Non-GAAP GPM 16 See appendix
Slide 17: Operating Expenses (Unaudited)
Operating Expenses (Unaudited) • GAAP operating expenses decreased 9.2% compared to fourth quarter of 2019 due to savings achieved from cost restructuring activities as well as reduced hiring and lower travel expenses, offset by restructuring costs • Non-GAAP operating expenses decreased 15.8% compa
Slide 18: Adjusted EBITDA
Adjusted EBITDA • Defined as non-GAAP Operating Income plus Depreciation • Q4 improvement as a result of business growth and restructuring efforts 15.0% 13.3% 10.0% 7.7% 6.4% 5.3% 4.9% 5.2% 5.0% 4.5% 1.7% 0.7% —% (3.2)% (5.0)% Q1 Q2 Q3 Q4 FY 2019 2020 18 See appendix for a reconciliation of Non-GAAP
Slide 19: Cash and Liquidity at December 31, 2020
Cash and Liquidity at December 31, 2020 • $84.7 million cash, cash equivalents, restricted cash and cash in assets-held- for-sale • Term Loan of $21.4 million • $100 million undrawn revolver with approximately $62 million of availability • Paid off term loan following sale of Cimatron/GibbsCAM, now
Slide 20: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 20
Slide 21: Summary
Summary Our Transformation Journey Continues: • Reorganization and Restructuring complete • Exploring additional divestitures of non-core assets • Selectively investing for growth in regenerative medicine, materials development and product line improvement • Expect growth in core business of additiv
Slide 22: Q&A Session
Q&A Session 1-201-689-8345 22
Slide 23: Thank You
Thank You Find out more at: www.3dsystems.com 2 323 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 24: Appendix
Appendix ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 25: 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 26: Non-GAAP Reconciliation - Operating Income (Loss) (Unaudited)
Non-GAAP Reconciliation - Operating Income (Loss) (Unaudited) Fourth Quarter and Full Year Non-GAAP Operating Loss Quarter Ended December 31, Year Ended December 31, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Operating income (loss) $ 0.7 $ (4.7) $ (119.0) $ (57.1) Adjustments:
Slide 27: Non-GAAP Reconciliation - Net Income (Loss) (Unaudited)
Non-GAAP Reconciliation - Net Income (Loss) (Unaudited) Fourth Quarter and Full Year Non-GAAP Earnings (Loss) Quarter Ended December 31, Year Ended December 31, (in millions) 2020 2019 2020 2019 GAAP Net loss $ (19.8) $ (4.7) $ (149.6) $ (69.9) Adjustments: Amortization, stock-based compensation & o
Slide 28: Non-GAAP Reconciliation - EPS (Unaudited)
Non-GAAP Reconciliation - EPS (Unaudited) Fourth Quarter and Full Year Non-GAAP Net Income (Loss) per Share Quarter Ended December 31, Year Ended December 31, 2020 2019 2020 2019 GAAP Net loss per share per share available to 3D Systems common stock holders - basic and diluted $ (0.16) $ (0.04) $ (1
Slide 29: Non-GAAP Reconciliation - GP and GPM (Unaudited)
Non-GAAP Reconciliation - GP and GPM (Unaudited) Quarterly 2019 and 2020 Non-GAAP Gross Profit & Margin 2019 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 September 30 December 31 March 31 June 30 September 30 December 31 GAAP Gross Profit $ 65.7 $ 73.3 $ 67.3 $ 74.3 $ 57.1 $ 35.2
Slide 30: Non-GAAP Reconciliation - Operating Expense (Unaudited)
Non-GAAP Reconciliation - Operating Expense (Unaudited) Quarterly 2019 and 2020 Non-GAAP Operating Expenses 2019 2019 2020 2020 Quarter Ended Full Quarter Ended Full (in millions) Mar 31 Jun 30 Sep 30 Dec 31 Year Mar 31 Jun 30 Sep 30 Dec 31 Year GAAP SG&A Expenses $ 65.1 $ 71.7 $ 58.3 $ 59.3 $ 254.4
Slide 31: Regenerative Medicine Recast
Regenerative Medicine Recast Year Ended December 31, 2019 2018 As reported Change Revised As reported Change Revised Revenue: Products $ 384,577 $ 4,760 $ 389,337 $ 429,215 $ 3,885 $ 433,100 Services 244,517 2,500 247,017 258,445 — 258,445 Total revenue 629,094 7,260 636,354 687,660 3,885 691,545 Co