Slide 1: Stratasys Q2 2016
« STRATASYS Q2 2016 August 4, 2016
Slide 2: Q2 2016 Conference and webcast details
eT Stretasye Q2 2016 Conference and webcast details Live Dial-in Speakers Information Wan Levin Primary Dial-in: SES 855-319-2216 Saas mesevera aa CFO & COO STvEnSTES ‘Shane Glenn Participant VP, Investor Passcode: Relations 45898366 Live webcast and replay:
Slide 3: Forward Looking Statement
Forward Looking Statement The statements made in this presentation regarding Stratasys’ strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2016, are forward-looking statements reflecting management's
Slide 4: Use of Non-GAAP financial information
Use of Non-GAAP financial information The following non-GAAP data, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our resu
Slide 5: Ilan Levin - CEO Opening Remarks
Ilan Levin - CEO Opening Remarks > We believe industry is maturing — driven by increased access to desktop systems and the need for enhanced value through advanced applications > Pleased with improved financial performance — driven by cost controls and operational efficiency > Improved margins drive
Slide 6: Financial Update and Guidance
Erez Simha — CFO and COO Shane Glenn — VP of Investor Relations Financial Update and Guidance
Slide 7: Financial Results
Financial Results Stratasys, Ltd. Change YOY J 0.062 Revenue 6% YOY [Gross Prot ws| 75] 4.y| _s97| _ 962 margin 4s5%| 462%| 547%] 55.9% Operating Proftftossy | 35[ 17-1 a7] 102 GAAP Gross Profit Disvor Perey -16.4%| -10.0%}| 88%] 20%] 5.9% Pretax Profit (Loss) 2! 162] co6y ao] ana GAAP Operating Pro
Slide 8: Financial Results - Revenue
Financial Results - Revenue Stratasys, Ltd. System Revenue | 19% YOY Consumable Revenue 1 11% YOY Customer Support Revenue 1 11% YOY (6 in millions unless noted otherwise) Total Revenue - Quarter ‘$1345 ser8 siz38 433 02.2016 $1185 $1243 S186 sane 3 5 3 7 0315 ror ais 216
Slide 9: Financial Results - Gross Margin Trends
Financial Results - Gross Margin Trends Stratasys, Ltd. Revenue Spit 02-2015 @ Product Revenue Spit 2.2016 @ Product @ service {Sin milions unless noted otherwise) 215 a3 45 @ Product Gross Margin ass @ Service Gross Margin ats 0216 @ Tota! Gross Margin ‘Stratasys
Slide 10: Financial Results — Operating Margin Trends
Financial Results — Operating Margin Trends Stratasys, LTD. GAAP = sa5% ra es% ane 10 180% gg 2 gi 315 6 MG “100% Operating Exp. (GAAP) J -17% YOY R&D Exp. (GAAP) J -4% YOY. ‘SG&A Exp. (GAAP) J -25% YOY "Operating proft includes impairment charges of $127.8 and $737.7 in Q4'15 and Q3'5, respectively
Slide 11: Financial Results - Revenue Geographic Mix
Financial Results - Revenue Geographic Mix Stratasys, Ltd. + Results reflect continuation of challenging market environment observed throughout 2015 Geographic Sales Q2-2015 Geographic Sales Q2-2016 2 2 |i otRavaava / TH a0 Primo soLuTONs Counae Stratasys
Slide 12: Financial Results — Balance Sheet Summary
ancial Results — Balance Sheet Summary Stratasys, Ltd. + Cash and Cash Equivalents of $253.9 million + Cash from operations was $6.9 million Selected balance sheet items (Sin millions) Cash, Cash Equivalents & Bank Deposits 2002 52530 ‘Accounts Receivable 10041 1133 Inventories 1248 1287 ‘Net Workin
Slide 13: Erez Simha - CFO & COO Financial Summary
Erez Simha —- CFO & COO Financial Summary > Operational improvements contributed to favorable trends in expenses, profitability and cash flow from operations > Positive trend in gross margins — driven by manufacturing efficiencies and product mix > Focused on achieving additional operational efficie
Slide 14: Revenue & Earnings Guidance — Full Year 2016
Revenue & Earnings Guidance — Full Year 2016 Reconciliation of GAAP to Non-GAAP Guidance Revenue (M) (ta mone ons erchare dts) $700-$730M rT een (f) Stock Based Compensation Exp. estes GAAP Diluted EPS Intangible Assets Amortization Exp. sso noo EEE i ffacespened aie nr Non-GAAP Diluted EPS. adjusim
Slide 15: Strategic Overview
Ilan Levin - CEO STRATEGIC OVERVIEW
Slide 16: Strategy Update
Strategy Update Additive Manufacturing Industry is Maturing > Expanding beyond traditional applications > new growth phase characterized by advanced solutions targeting customer-centric applications The Stratasys Advantage > Broad set of capabilities and diverse range of products and services > Stro
Slide 17: Stratasys J750 — Early Success
Stratasys J750 — Early Success A Milestone in 3D Printing: Full color + Multi-Material (industry-first), True-To-Life Prototypes & Cost/Resource Efficiencies OtterBox - Leading U.S. smartphone case company The Challenge: > Demanding fast and reliable design iterations for true-to-life prototypes > R
Slide 18: Streamlined Design-to-Print Workflow with GrabCAD Print
Streamlined Design-to-Print Workflow with GrabCAD Print Leading 3D CAD Collaboration Platform > GrabCAD Community, a vibrant Community of millions of engineers, designers, and students sharing CAD content, how-to tutorials and participating in publicly sponsored design ‘Challenges’ > GrabCAD Workben
Slide 19: Ilan Levin - CEO Summary & Outlook
Ilan Levin - CEO Summary & Outlook > Improved financial performance — driven by focus on operational improvements and controlling costs > Success of J750 and early interest in GrabCAD Print > Focused on customer's needs and enhancing value within additive manufacturing > Committed to investing for l
Slide 20: We Are Stratasys
WE ARE STRATASYS THE 3D PRINTING SOLUTIONS COMP,
Slide 21: Reconciliation of GAAP to Non-GAAP - Results of Operations
6 Reconci Stratasys Ltd. Adjustments (SO iation of GAAP to Non-GAAP - Results of Operations come (Less T 2 (33.40) [37,172 nome (Loss) stnbuiable te Susaas Ua 123 (e231) [30,503 income (Loss) per luted share atrbutsble io Lid (4) 3055) $070 | Coresponding tax etect and oer ir adhsimens Pa) Weighted