3D Systems Corporation · NYSE:DDD

3D Systems — Investor Presentation (June 2011)

40 slides from 3D Systems's investor presentation, June 2011

  1. Slide 1: Investor Presentation

    Investor Presentation June 2011 www.3dsystems.com NYSE: DDD 2011年6月1日

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward- looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, perfo

  3. Slide 3: Company Highlights

    Company Highlights Leadership through technology & acquisitions Compelling razor Continued and blades operating business leverage Well positioned Underpenetrated for growth marketplaces 3

  4. Slide 4: Leading Provider of 3D Content-to-Print Solutions

    Leading Provider of 3D Content-to-Print Solutions From Art To Part Freedom of creation to print functional Cost effective alternative to traditional plastic and metal parts design and manufacturing methods 4

  5. Slide 5: First Mover Advantage… Diverse Customer Base

    First Mover Advantage… Diverse Customer Base 5

  6. Slide 6: Global Reach with Local Presence

    Global Reach with Local Presence Europe United States - England - France - Rock Hill, SC - Atlanta, GA - Germany - Holland Asia-Pacific - Goodland, IN - China - Italy - Lawrenceburg, TN - Hong Kong - Switzerland - Seattle, WA - India - Syracuse, NY - Japan - Valencia, CA - Singapore - Vernon Hills,

  7. Slide 7: Balanced Revenue Composition

    Balanced Revenue Composition By Geography By Category A-Pac 14% Services Printers Europe 29% 34% 41% North Print America Materials 45% 37% Total 2010 revenue grew 27% came from organic 42% to $159.9 million growth 7

  8. Slide 8: Business Model Innovation

    Business Model Innovation 2010 Gross Profit $74.0 M $ in millions Printer Consumables Services Printers 23% 28% Print Printer Services Materials 49% Printers Custom Parts Services Flexible Technology Platform 8

  9. Slide 9: Technology Leadership

    Technology Leadership CAD Plugins Extensive Ecommerce Process Platform Expertise Six Print Materials Formulating Families Six Print ~400 patents Engines issued, ~150 pending 9

  10. Slide 10: New Products Fuel Revenue Growth

    New Products Fuel Revenue Growth Revenue in millions $15.00 Q1, 2009 $10.00 Q1, 2010 Q1, 2011 $5.00 $0.00 •Increased year-over-year revenue contribution from new products •Reflects products that are in their first three years of commercial status •Expect a rate of three new printers and four new pri

  11. Slide 11: Expanding Range of End-Use Applications

    Expanding Range of End-Use Applications 11

  12. Slide 12: Clear Competitive Advantage

    Clear Competitive Advantage We offer a comprehensive tool box… we sell our customers the right tool for the right job Our competitors sell different size hammers… to them every application looks like a nail 12

  13. Slide 13: Proven Acquisition Track Record - Augments Growth

    Proven Acquisition Track Record - Augments Growth Target and close Integrate and harvest Maximize cash flow suitable candidates synergies from operations 2009 Desktop Factory Acu-Cast Technologies AdvaTech Manufacturing 2010 Moeller Design & Development Design Prototyping Technologies CEP Protometal

  14. Slide 14: Marketplace Convergence Drives Opportunities

    Marketplace Convergence Drives Opportunities l $400 Million d ica $600 Million M e 3D 3D Pa rts Additive Manufacturing Wide-Format 3D Printing Printing Marketplace Opportunities 3D D $500 Million ~ $3 Billion $1 Billion ental s ter Traditional Prin Machine Tool Manufacturing 3D 3D Aerospace $500 Mil

  15. Slide 15: Focused Growth Initiatives

    Focused Growth Initiatives Grow 3D Build 3D custom Accelerate 3D healthcare parts global printer revenue services, expand penetration leveraging our through through channel customer base acquisitions and expansion and and core organic growth new products competencies 15

  16. Slide 16: Results From Growth Initiatives: Custom Parts Services

    Results From Growth Initiatives: Custom Parts Services Consolidate channel Shape brand Build scale and experience presence Access to end 3Dproparts™ Deliver latest users Quickparts® capabilities Improved gross profit margin sequentially: Generated $10.3 million • 26% Q4, 2010 custom parts services •

  17. Slide 17: Results From Growth Initiatives: 3D Printers

    Results From Growth Initiatives: 3D Printers Record 2010 printer revenue of $54.7 Record Q1 2011 printer revenue of $13.5 million and 79% growth over prior year million and 54% growth over Q1 2010 17

  18. Slide 18: Most Complete Product Portfolio On The Market

    Most Complete Product Portfolio On The Market Personal 3D Printers Professional 3D Printers Production 3D Printers Price: $1,300 - $9,900 Price: $49,000 - $199,000 Price: $250,000 - $950,000 18

  19. Slide 19: Printer Razor and Blade Profile

    Printer Razor and Blade Profile Commentary Personal & Professional Printer Revenue Model (1)  Our “razor and blades” business model $6.0 centers on sustainable profitable growth from consumables  We expect higher margin integrated print $4.0 materials revenue to drive further margin expansion and

  20. Slide 20: Results From Growth Initiatives: Healthcare Solutions

    Results From Growth Initiatives: Healthcare Solutions ITE hearing aids Dental restorations Orthodontic aligners Orthopedic implants Prosthetics Trauma procedures Healthcare solutions revenue Healthcare revenue 50% of 2010 and 64% of Q1 includes printers, print represented 14% of total 2011 healthcar

  21. Slide 21: Results From Growth Initiatives: Print Materials

    Results From Growth Initiatives: Print Materials Integrated print materials as a percent of total print materials revenue 39% of Q4 2010 50% of Q1 2011 Continued margin expansion 21

  22. Slide 22: Across-The-Board Revenue Growth

    Across-The-Board Revenue Growth $ in millions Full Year 2009 $ 30.5 Printers 2010 $ 54.7 79% 2009 $ 32.0 Services 46% 2010 $ 46.8 A Print 2009 $ 50.3 Materials 2010 $ 58.4 16% 2009 $ 15.7 Health Care 2010 $ 21.6 38% Total 2010 revenue grew 42% 27% came from organic growth 22

  23. Slide 23: The 3D Consumer Opportunity

    The 3D Consumer Opportunity The future of content And the crowd Is in the cloud 23

  24. Slide 24: What can users do with it?

    What can users do with it? Have it printed for you Quickparts® OUTPUT FORMS Print it yourself BfB™ 3D Printer Upload/Download 3D content The3dStudio.com FreedomOfCreation.com

  25. Slide 25: Revenue Sources

    FROM CONTENT USERS: Revenue Sources Upload 3D digital Marketing their skills content for sale Download digital Affiliate program content & apps for use Convert digital content to physical models using Upload apps for sale our online printing services

  26. Slide 26: Best Positioned For Growth

    Best Positioned For Growth Rapid Prototyping Direct Competitors 3D Systems Function Consumer Manufacturing Fit Form Underdeveloped Underpenetrated Marketplaces 26

  27. Slide 27: Supplemental Financial Overview

    Supplemental Financial Overview www.3dsystems.com NYSE: DDD 2011年6月1日

  28. Slide 28: Across-The-Board Revenue Growth

    Across-The-Board Revenue Growth $ in millions First Quarter 2010 $ 8.8 Printers $ 13.5 54% 2011 2010 $ 9.2 Services 103% 2011 $ 18.8 A Print 2010 $ 13.6 Materials 2011 $ 15.6 15% 2010 $ 4.1 Health Care 2011 $ 6.2 52% First quarter 2011 revenue grew 51% 23% came from organic growth 28

  29. Slide 29: First Quarter Revenue by Category and Geography

    First Quarter Revenue by Category and Geography Revenue Categories Geography 50 $ 47.9 $ 47.9 14% 40 39% $ 31.6 $ 31.6 Asia Pacific $ in millions Services 38% 30 14% 29% Europe 20 33% 41% Materials 43% 48% 10 Printers 28% 45% North 28% America 0 2010 2011 2010 2011 Q1 2011 recurring revenue accounte

  30. Slide 30: Gross Profit and Margin Trend

    Gross Profit and Margin Trend First Quarter 2011 2010 Yr-Yr% Gross Profit Gross Profit Category $ Millions Margin $ Millions Margin $ Margin Printers $5.5 41% $ 3.1 36% 75% 13% Materials $9.9 63% $ 8.3 61% 20% 5% Services $7.8 42% $ 2.9 32% 167% 31% Total $23.2 48% $ 14.3 45% 62% 7% Gross Profit Mar

  31. Slide 31: Margin Expansion Path Towards Long Term Target Model

    Margin Expansion Path Towards Long Term Target Model 56% GPM at $200 million and 62% at $300 million revenue run-rate -Better overhead absorption from Margin Expansion higher revenue -Favorable print material mix towards -Higher personal printers Margin Compression integrated printers materials unit

  32. Slide 32: First Quarter Operating Expenses

    First Quarter Operating Expenses ($ in millions) First Quarter % Change Favorable 2011 2010 Category (Unfavorable) Selling, general & administrative $13.0 $ 9.2 (42%) Research and development $2.8 $ 2.5 (13%) Total Operating Expenses $15.8 $ 11.7 (35%) % of Revenue 33% 45. 37% 11% Expect operating e

  33. Slide 33: Operating Leverage Expected To Continue

    Operating Leverage Expected To Continue $ in millions 60 SG&A expenses 50 SG&A costs expected to grow at slower Revenue Trend Line rate to revenue growth as acquisitions are 40 fully integrated Internal systems and processes permit increased revenue without additional 30 administrative costs SG&A in

  34. Slide 34: Factors Affecting Earnings Per Share

    Factors Affecting Earnings Per Share First quarter 2011 diluted earnings per share $ 0.28 Legal costs reduced EPS by 7 cents per share for the quarter Net income of $6.8 million for the 2011 quarter included $2.8 million of non-cash expenses related to depreciation, amortization and stock-based comp

  35. Slide 35: Favorable EPS Trend

    Favorable EPS Trend EPS Improvement Over Prior Year's Quarter Q1 2009 $0.08 Q2 2009 $0.09 Q3 2009 $0.08 Q4 2009 $0.08 Q1 2010 $0.18 Q2 2010 $0.18 Q3 2010 $0.19 Q4 2010 $0.24 Q1 2011 $0.19 Revenue and margin expansion, coupled with operating cost containment and optimization resulted in an improved b

  36. Slide 36: Working Capital

    Working Capital ($ in millions) % Change March 31, 2011 December 31, 2010 Favorable (Unfavorable) Cash $70.8 $ 37.3 90% Inventory $ 26.6 $23.8 (12%) Accounts Receivable $ 39.3 $ 35.8 10% Accounts Payable $ 23.4 $ 26.6 12% Working Capital $ 76.5 45. $ 42.5 80% • Cash increased $33.5 million from the

  37. Slide 37: Balance Sheet Management

    Balance Sheet Management No debt Strong cash Managed payables balance Strong balance sheet coupled with operating leverage allows us to fund our strategic initiatives Balanced Quality receivables inventories 37

  38. Slide 38: Long-Term Target Operating Model

    Long-Term Target Operating Model ($ millions) Q1 2011 Drivers Model Ranges Actual Results Revenue $200 $300 $ 47.9 Gross Profit 56% 62% 48% SG&A 23% 20% 27% R&D 7% 5% 6% Operating Income 26% 37% 15% Net Income After Tax* 18% 22% 14% Depreciation & Amortization 4% 3% 5% Capital Expenditures 2% 1% 1%

  39. Slide 39: Bottom Line

    Bottom Line Comprehensive solutions portfolio with recognized brands Technology strength and flexibility Attractive marketplace growth opportunities Innovative business model Focused growth initiatives Proven acquisition strategy Experienced management team 39

  40. Slide 40: Thank You

    Thank You www.3dsystems.com NYSE: DDD 2011年6月1日

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