Slide 1: Conference Call and Webcast: Second Quarter and Six Months 2013
> o— 1 — Conference Call and Webcast Second Quarter and Six Months 2013
Slide 2: Presenters
Stacey Witten Director Investor Relations Avi Reichental President & Chief Executive Officer Damon Gregoire Senior Vice President & Chief Financial Officer Andrew Johnson Vice President & General Counsel
Slide 3: Welcome
Welcome We © 1-877-474-9505 in the To listen to the conference United States via phone and to ask + 1-857-244-7558 from questions during our Q&A A outside the United States session, please dial: ° Participant Code: 62870047
Slide 4: 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, performance or products, underlyi
Slide 5: Operating Results
> o— 1 — Operating Results Avi Reichental, President & CEO
Slide 6: Revenue grew 44.5% to a record $120.8 million
Revenue grew 44.5%, to a record $120.8 million on a 107.9% increase in printers & other products revenue and 30.1% overall organic growth Gross profit increased 45.7% on higher revenue and gross profit margin expanded to 51.8% We introduced significant new products including several 3D printers, mat
Slide 7: Second Quarter revenue by category
Second Quarter Printers & 2032, hae by Other Products 52 Print 2012 $26.2 Macias 2 2012 { $313 Services 2012 $12.2 Healthcare Pos 44.5% total revenue growth
Slide 8: New Products Revenue
$inmillions New Products Revenue $100 $80 $60 $40 $90.9 $52.5 $20 $32.9 $o 2011 2012 m2013 New Products 2013 New products revenue up 73% compared to the first six months of 2012 Launched 9 new products in | New products revenue up the fist six months 2013 80% over Q2 2012
Slide 9: Financial Review
> o— 1 — cial Review ire, Senior Vice President and CFO
Slide 10: Second Quarter GAAP Operating Results
Second Quarter GAAP Operating Results 5 inmillons, except exmnires p % Change Drivers 2013 Favorable/ (Unfavorable) Revenue $83.6 $ 120.8 44.5% Gross Profit $43.0 $62.6 | 45.7% % of Revenue 51.4% 51.8% Operating Expenses $ 29.0 $45.8 | (58.1%) % of Revenue 34.6% 37.9% Operating Income $14.0 $16.8 |
Slide 11: First Six Months GAAP Operating Results
First Six Months GAAP Operating Results 5 inmillons, except exmnires p % Change Drivers Favorable/ (Unfavorable) Revenue $161.5 $ 222.9 38.0% Gross Profit $81.8 $116.1 41.8% % of Revenue 50.7% 52.1% Operating Expenses $57.9 $81.7 (41.3%) % of Revenue 35.8% 36.7% Operating Income $24.0 $34.3 43.2% %
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended June 30, | Six Months Ended June 30, 2012 2013 2012 2013 GAAP net income $8.3 $93 $14.5 DoD Cost of sales adjustments: Amortization of intangibles $0.1 $04 $01 $0.1 Operating expenses adjustments: Amortization of intangibles $3.0 $5.0 $63 $8.7 Acquisition and se
Slide 13: Revenue by Category & Geography
Revenue by Category & Geography $inmillions 250 120 100 Services 20 $1615 Services 80 150 aad Materials 26% 60 Materials 100 40 32% 59 50 Printers : 20 Oh Pines J ° ° 2012 2013 2012 2013 35 $120.8 250 $2029 i Asia-Paci 100 $83.6 $161.5 80 27% 66 Europe 27% 60 28% a 28% 40 ‘North North 30 50 — 0 o Q2
Slide 14: Second Quarter gross profit by category
Second Quarter $ inmillio Yr-Yr% Gross Profit Margin Printers & other products $11.2 43.1% i 45.6% 119.8% 5.8% Print materials is 65.6% A 73.6 25.3% 12.2% Services $14.5 46.4% .. 43.8% 12.4% (5.7%) Total $43.0 51.4% . 51.8% 45.7% 0.8% mnsmaynot foot dueto rounding Q2 2013 Revenue by Category Q2 2013
Slide 15: Six Months gross profit by category
2012 Yr-¥r% Gross Profit Gross Profit Margin Gross Profit Margin Printers & other products $20.8 41.0% $42.5 % 104.4% 10.5% Print materials $34.0 66.8% $42.4 . 24.9% 9.5% Services $27.0 45.2% $31.1 43.8% 15.0% (3.0%) Total $81.8 50.7% $116.1 52.1% 41.8% 2.8% ‘Six Months 2013 Revenue by Category Six
Slide 16: Second Quarter operating expenses
Second Quarter Se % Change % Change Favorable/ Favorable/ (Unfavorable) (Unfavorable) SG&A $24.0 $ 36.2 (50.5%) $19.1 $25.5 (33.7%) R&D $4.9 $9.6 (95.0%) $4.9 $9.6 (95.0%) Total Operating Expenses $29.0 $45.8 (58.1%) $240 $35.1 (46.3%) % of Revenue 34.6% 37.9% 28.7% 29.1%
Slide 17: Six Months operating expenses
Six Months _ -o= a % Change % Change Favorable/ Favorable/ (Unfavorable) (Unfavorable) SG&A $48.0 $65.6 (36.8%) $36.1 $46.8 (29.6%) R&D $93 $16.1 (63.4%) $9.9 $ 16.1 (63.4%) Total Operating Expenses $57.9 $81.7 (41.3%) $46.0 $62.9 (36.9%) % of Revenue 35.8% 36.7% 28.5% 28.2%
Slide 18: Working Capital
Working Capital % Change Se ee Cash $155.9 $349.3 124.1% Inventory $ 418 $ 49.8 (19.0%) Accounts Receivable $79.9 $111.5 39.6% Accounts Payable $32.1 $35.1 (9.4%) $212.3 $ 432.0 103.5% Working Capital * Cash on hand at end of June 2013 compared to the end of 2012 increased $193.4 million after $272.
Slide 19: 2013 revenue and EPS guidance
We expect revenue to be in the range of $485 million to $510 million We expect our non-GAAP earnings per share to be in the range of $1.05 to $1.20 Our non-GAAP adjusted earnings guidance is fully tax-effected and inclusive of all acquisitions completed to date
Slide 20: Outlook and Progress
YSTEMS" nd CEO Outlook and Progress Avi Reichental, President a
Slide 21: New products and channel momentum
New ProJet® x60 series full color professional 3D printers added to our sales momentum Heavier demand for our award winning Cube consumer printers contributed to our backlog Two new materials with injection molded-like properties expanded manufacturing use cases Phenix Systems enhances our direct me
Slide 22: Robust manufacturing grade printers
Robust manufacturing grade printers Wide range of standard metal alloys and ceramics with over 15 materials including reactive metals & ceramics Outstanding output quality Excellent surface finish & resolution Exceptional accuracy & repeatability critical for manufacturing Superior mechanical proper
Slide 23: Exclusive alliance with Deloitte Consulting
© We inked an exclusive, multi-year alliance with Deloitte Consulting to accelerate user adoption and integration of 3D printing design and manufacturing solutions for sustainable competitive advantage) ~ ¢ Deloitte and 3D Systems plan to jointly launch and operate a series of solution centers in ke
Slide 24: Positive sales momentum entering third quarter
We entered the third quarter of 2013 with positive sales momentum, driven by increased demand primarily from advanced manufacturing and consumer activities and continued robust R&D and manufacturing spending We expect consumer solutions revenue to reach meaningful levels in the second half of 2013 a
Slide 25: Q&A Session
Q&A Session Out of respect for other conference call participants, please ask one question and then return to the queue to ask additional questions Please direct all questions through the teleconference portion of this call © U.S.: 1-877-474-9505 To ask questions: ¢ International: 1-857-244-7558 © C
Slide 26: Thank You
> o— 1 — Thank You