Slide 1: New Horizons In Additive Manufacturing Technology
World Conference New Horizons In Additive Manufacturing Technology September 25, 2007
Slide 2: 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 may involve known and unknown risks,
Slide 3: Welcome To World Conference 2007
Welcome To World Conference 2007 Thank you for your Passion Thank you for your Patience Thank you for your Pioneering Thank you for your Participation Thank you for your Perseverance Thank you for your Progress Thank you for your Partnership Thank You For Your Business
Slide 4: World Conference - Vision To Reality
World-Conference-Vision To Reality Host annual 3D Systems world conference Strengthen partnerships with users and providers Build stronger applications awareness Promote knowledge transfer and networking Provide hands-on training and learning Create a path for customer self reliance Access to state-
Slide 5: World Conference - Vision To Reality
World-Conference-Vision To Reality 400 global attendees Representing 17 countries 48 renowned speakers 25 partners and exhibitors 52 learning sessions to choose from 33 hands on sessions 6 new product launches Broadest industry and academia representation
Slide 6: Global Advisory Board
Global Advisory Board David Flynn - Express Pattern Dr. Volker Griessbach - VGK Soeren Griessbach - VGK David Leigh - Harvest Technologies Dr. Dennis Merrell - York Tech College Lance Shanklin - Integra Services Igata-san - INCS Inc. Gideon (Gidi) Levy - FHS St. Gallen Scott Turner - Scicon Technolo
Slide 7: Business Overview
Model Manufacturing Prototype Services Leader Builder Innovator Partner Business Overview Consolidated Annual Revenue ~ $135 Million 4 technologies 400 patents 12 systems 20 materials 360 employees 190 field personnel 53 countries 4000+ installs (Cumm) 5+M parts / ann $17M new infrastructure $12+M R
Slide 8: Proven Customer Value
Proven Customer Value Profitability Market Share Reduce Design cost Manufacturing cost Cost of goods Reduce Time to design Time to production Time to market
Slide 9: 20 Years of Excellence
20,Years of Excellence Proven record of business development
Slide 10: Proven Innovation Record
10 Proven Innovation Record
Slide 11: Proven Innovation Record
11 Proven Innovation Record
Slide 12: Solving Customer Needs Globally & Locally
Solving Customer Needs Globally & Locally North America USA - Rock Hill, SC - Austin, TX - Valencia, CA Europe France Germany Italy Switzerland United Kingdom Asia Hong Kong / China Japan ?Leader Innovator Partner Builder 12
Slide 13: Game Changing Transformation
Game Changing Transformation 2003 Core Products Price ~ $200K-650K Rapid Manufacturing 3D Modeling 2007 Current Products Price ~ $10K-850K Rapid Manufacturing
Slide 14: Game Changing Transformation
Game Changing Transformation 2003 Core Products Price ~ $200K-650K Rapid Manufacturing Growth Investments Alliances Infrastructure
Slide 15: Customer Centric Organization
Dedicated Customer Operations Sales Growth Marketing Field Service Customer Care Product Line Strategy Bottom Line Results Shared Corporate Operations Finance and Accounting Employee Development Legal and Compliance Research & Development Information Technology Supply Chain Technology - Based Busine
Slide 16: Nascent Industry... Ages-Stages-Enablers
Nascent Industry... Ages-Stages-Enablers 1986 2002 2007 2010 3D CAD Priced at ~+$100K 3D CAD Priced at ~+$5-10K 3D CAD Priced at ~+$1-5K 3D Scanners 3D Systems Invents SLA(r) Technology 3-D Printing Adoption Price Declines To <$50K Printer Price <$20K Disruptive Technology Printer Price <$20K Disrup
Slide 17: Equipment Revenue Expectations
0 100 200 300 400 500 600 700 800 900 1000 Revenues ($ Million) 0 5 10 15 20 25 Growth Rate (%) Growth Rate (%) Revenues ($ Million) Equipment Revenue Expectations Source: 2007 Frost & Sullivan 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 18: Significant Addressable Opportunities
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Revenues 2006 Mix Significant Addressable Opportunities Source: 2007 Frost & Sullivan 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3D Modelers High-end Rapid Prototyping Equipment
Slide 19: Truly A Global Opportunity
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Revenues Europe Asia Pacific Rest-of-World Truly A Global Opportunity Source: 2007 Frost & Sullivan 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 20: Future State Trends
Future State Trends Desk-Top Modelers will become the Blackberry's of 3D communications Mass customization will redefine manufacturing New channels will accelerate adoption Technology breakthroughs will separate winners from losers
Slide 21: Future State Trend #1: Desktop Modelers
User friendliness and performance will increase utility Cost of ownership decline will accelerate adoption Google Sketchup will create non engineering marketplace explosion Toys and collectables will be purchased as downloads Desk-Top Modeler adoption will accelerate total parts consumption Price po
Slide 22: Game Change: V-Flash Desktop Modeler
Game Change: V-Flash(tm) Desktop Modeler Productivity Affordability Quality Compatibility Utility Simplicity 2-3X Faster > Today's 3-D Printers Priced @ $9,900 SLA(r)-like Part Quality Office & Home Desktop Plug & Play Easy Operation Consumable Parts
Slide 23: 3-D Modeling Opportunity
Millions 28.5 Million Global Engineers 5 Million MCAD Users 3-D Modeling Opportunity Global Engineering Population 2,600,000 1,600,000 5,500 ~100,000 2005 2010 3D Printers Source: 3D Systems, CADigest, engineeringtalk.com, Deskeng.com
Slide 24: Desk-Top Modelers Will Become The Blackberry of 3D Communications
0 50 100 150 200 250 300 350 400 450 Revenues ($ Million) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Units Desk-Top Modelers Will Become The Blackberry of 3D Communications 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Units Revenues ($ Million) Source: 2007 Frost & Sullivan
Slide 25: Future State Trend #2: Mass Customization
Future State Trend: #2 Mass Customization Applications Will Redefine Manufacturing Material properties will drive manufacturing applications Adoption chasm will be crossed with speed, performance and cost Central to early adopter business model; Align, Boeing Critical to recent entrants success; Hea
Slide 26: Rapid Manufacturing Opportunity
($ Millions) 300 250 200 150 100 50 0 $30M $300M 2005 2010 ($ Billions) 4.4 4.3 4.2 4.1 4.0 3.9 3.8 $4.0B $4.4B 2005 2010 Rapid Manufacturing Opportunity Rapid Manufacturing Processes Traditional Processes Traditional Manufacturing Processes > $15 Billion CNC ~$4 Billion Global CAPEX Production Mach
Slide 27: Mass Customization Applications Will Redefine Manufacturing
Future State Trend: #2 0 100 200 300 400 500 600 Revenues ($ Million) 0 2 4 6 8 10 12 14 16 18 Growth Rate (%) Mass Customization Applications Will Redefine Manufacturing Growth Rate (%) Revenues ($ Million) Source: 2007 Frost & Sullivan 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 28: Rapid Manufacturing - F-18E Fighter Jet
POWER DISTRIBUTION PANELS ELECTRICAL SHROUDS STOWAGE CASE CABIN AIRFLOW DUCTS AVIONICS DUCTING PDP COVERS DEFOG DUCTING AVIONICS DUCTING AVIONICS DUCTING Rapid Manufacturing - F-18E Fighter Jet ?Leader Innovator Partner Builder 28
Slide 29: High Growth Space - Digital Dentistry
High Growth Space - Digital Dentistry Market Making Forces Chair time savings Variability reduction Selling efficiency improvement "Incalculable value; huge!" - - Joe Carrick, D.D.S, Past President, American Association of Cosmetic Dentists 2006 Annual Report Looking ahead, our recent acquisition of
Slide 30: Achieving Injection Molding Performance
Cross-section SLS Part Cross-section FDM Part Achieving Injection Molding Performance 0.25 mm 0.25 mm
Slide 31: Achieving Injection Molding Performance
SLS DuraForm EX Molded PP + 20% Talc Molded ABS Molded Polypropylene Tensile Strength (MPa) Tensile Modulus (MPa) Flex Strength (MPa) Flex Modulus (MPa) Elongation at Break (%) 20 40 30 50 1500 2000 2500 20 30 40 50 1500 2000 2500 20 40 60 Achieving Injection Molding Performance DuraForm EX=Injectio
Slide 32: Laser Sintering vs. Injection Molding Break-Even Point
2.0 2.5 3.0 3.5 4.0 4.5 5.0 1000 2000 3000 4000 5000 6000 7000 8000 £ Per Part 150 170 190 210 230 250 270 290 310 330 350 50 100 150 200 250 £ Per Part Number of Parts Number of Parts Small Part Large Part Laser Sintering Injection Molding Laser Sintering Injection Molding Laser Sintering VS. Injec
Slide 33: Future State Trend #3: Alternative Market Channels Will Emerge
Alternative Market Channels Will Emerge Service providers will become Rapid Manufacturing Suppliers Fractional ownership will create affordable multi-technology ownership Google Sketchup, cosmic blobs and others will seed demand for local print shops like Kinko's E-commerce will flatten the function
Slide 34: It's All About Parts Demand
Millions Its All About Parts Demand Source: Wohlers Report & 3D Systems 2000 2006 Other Parts Other Parts 3D Systems Parts 3D Systems Parts
Slide 35: Players Choice Will Shape System Sales
Players Choice Will Shape System Sales Source: Wohlers Report & 3D Systems
Slide 36: Future State Trend #4: Technology Breakthroughs
Future State Trend: #4 Technology Breakthroughs Will Separate Winners From Losers Film Transfer Imaging Technology FTI will enable creation of lower cost desktop units FTI technology will serve as a catalyst for Next- Gen Sterolithography Hybrids MJM and Thermal Masking will enable Next- Gen High-Sp
Slide 37: Multiple Players... Clear Choices
Multiple Players... Clear Choices Approximately 50 Number of Players In Direct Space Direct sales force, regional distributors, international representatives and channel partners. More than 60 percent of sales are direct sales. Sales & Marketing Structure Tier 1: Stratasys, 3D Systems, EOS, Z Corp T
Slide 38: Degree of Competition
Degree of Competition High Intensity Suppliers Differentiation Through Technology Or Price Customers Choices Result in Bargaining Power New Entrants Face Significant IP Hurdles Substitutes Present Medium Threat Competitive Drivers Source: 3D Systems & 2007 Frost & Sullivan
Slide 39: Four Proprietary Technology Platforms
Technology Presence Leadership Materials Systems Customer Four Proprietary Technology Platforms All Competitors Worldwide Combined Shaping The Future With Disruptive Technologies Extensive Chemical Formulating Capabilities Industry Standard Parts Quality & Accuracy Leadership In RM & RP Portfolio Pr
Slide 40: Which Output Do You Want?
Which Output Do You Want? Stereolithography from 3D Systems V-Flash from 3D Systems FDM from Stratasys PolyJet from Objet COMPETITORS
Slide 41: Long Term Target Model at $150 Million Revenue
Long Term Target Model For a Business in Our Space at $150 Million Revenue
Slide 42: Powerful Technology Building Blocks
Powerful Technology Building Blocks Stereolithography Laser-Sintering Multi-Jet Printing Film-Transfer Imaging Film-Transfer Imaging Film-Transfer Imaging
Slide 43: Always Looking Ahead
Always Looking Ahead Meeting customers' needs Leader in innovation Creating new markets Expanding in new categories Positioned to grow globally Significant game changing programs 3-D Modeling Rapid Manufacturing Measurable value, customers and stockholders Innovation, Efficiency, Innovation
Slide 44: Thank You!
Thank You! Thank You! Thank You! Thank you for your Passion Thank you for your Patience Thank you for your Pioneering Thank you for your Participation Thank you for your Perseverance Thank you for your Progress Thank you for your Partnership