Slide 1: First Quarter 2015 Conference Call and Webcast
Bild BDSYST EMS FIRST QUARTER 2015 CONFERENCE CALL AnD WEBCAST MANUFACTU RING THEFUTU RE WIWIW.3DSYSTEMS.COM| NYSE:DDD
Slide 2: Presenters
PRESENTERS | Stacey Witten Avi Reichental * Vice President, Investor Relations * President & Chief Executive Officer Ted Hull or Andy Johnson a SS a
Slide 3: Welcome Webcast Viewers
WELCOME WEBCAST VIEWERS pa session, please dial: _ © 1-877-407-8291 i * 1-201-689-8345 from outside the United States
Slide 4: Forward Looking Statements
hope,” “expects, ," and other similar ‘continu " “projects,” “potential,” FORWARD LOOKING STATEMENTS ” “predicts, ‘estimates, " “contemplates,” “believes,” ” “anticipates, “plans, this nat factors, doth ki level 3s taintie f activity ‘ bare te ii H a result, we cannot guarantee future results, outco
Slide 5: Operating Results
OPERATING RESULTS Avi Reichental President & CEO MANUFACTURINGTHE FUTURE
Slide 6: Q1 2015 Overview
Q1 2015 OVERVIEW
Slide 7: Revenue Highlights
REVENUE HIGHLIGHTS Sin milions Consumer m $1448 Design & Manufacturing 91384 Consumer he bulk of greater « demand for the company "5, shouldered hases of 3 ‘chi printers and materials and Sense scanners
Slide 8: Strength in Certain Verticals
STRENGTH IN CERTAIN VERTICALS Direct Metal Metals revenue Healthcare Expanded products and increase in printer Oe Certain perfo: acquired businesses drove a re ui industry level pause million, despite delayed rom products and services. Acquired decline. and materials. which contributed a partial qua
Slide 9: Revenue by Geography
REVENUE BY GEOGRAPHY Seiton Q1 Revenue Growth $100 $80 demand for expanding products and services. $60 Macroeconomic factors, including adverse currency rates, restricted Eee revenue growth for the jarter. so (20%) APAC shouldered the effects of decline of the Yen $20 reese toats Us Dol fe ae ae eon
Slide 10: Financial Review
FINANCIAL REVIEW Ted Hu Executive Vice Belden & CFO MANUFACTURINGTHE FUTURE
Slide 11: First Quarter GAAP Operating Results
FIRST QUARTER GAAP OPERATING RESULTS % Change Favorable/ (Unfavorable) 8% % (3.8%) (46.3%) (284.1%) (370.3%) (340.0%)
Slide 12: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION [sinriton, ceo pe stare araunt 2015 2014 GAAP net incom ($13.2) $49 Cost of sales adjustments: $0.1 $04 Operating expense adjustments: ‘Amortization of intangibles $144 $94 $3.2 $1.0 -cash stock-based compensation expense $ 103 $73 Other expense adjustments: $04 Tax effect ($
Slide 13: Revenue by Category
REVENUE BY CATEGORY FIRST QUARTER Sin milons $70 Curtailed spending by OEMs during 3% 31% the eat constralned revenue $00 wth from product sales $80 (8%) sw Decreseed!orptes sles ane curbed f sulted ina reduction in e rabavals revere $20 Increased services revenue was driven $10 by healthcare and so
Slide 14: Gross Profit Margin
GROSS PROFIT MARGIN $in ations First Quarter 2014 Wr-¥r% Gross Profit Gross Profit Gross Profit, Category Gross Profit Margin Gross Profit | _Margin _| Gross Profit |_Margin ducts $218 3475 $24.2 39.8% (9.9%) (12.8%) [Materials $27.6 74.3% $ 30.2 74.7% (8.7%) (0.5%) service 29.6 48.7% 211 45.3% 40.5
Slide 15: Operating Expenses
OPERATING EXPENSES Sin ations First Quarter YOY Change YOY Change Favorable/ Favorable/ Categor Q12015 (Unfavorable)| 12015 | _Q12014 _|(Unfavorable} $22.2 3%) $22.2 $4 9% 13.8% 13.6% $74.3 (52.5%) $46.3 (47.7%) 46.2% 28.8% $96.5 (46.3%) $68.5 (41.1%) 60.0% 2.6%
Slide 16: Working Capital
WORKING CAPITAL Sinmitions Uses of Cash March 2015 December 2014 cash $ 199.9 $ 284.9 S153 $168.4 Inventory $114.6 $96.6 evemne [Accounts Payable $58.7 $64.4 forking Capital $ 348.2 $ 432.2 * Backlog decreased 19% to $38 million
Slide 17: Withdrawing 2015 Guidance
WITHDRAWING 2015 GUIDANCE i k i inti we believe it is p | ithd i j ‘ eonid vithdraw pany’s p' y and plan to ‘ p ne : p ee have stabilized | a, : 1 heni execution a 5 NS 5
Slide 18: Business Update & Outlook
BUSINESS UPDATE & OUTLOOK Avi Reichental President & CEO MANUFACTURINGTHE FUTURE
Slide 19: Business Highlights
BUSINESS HIGHLIGHTS Cimatron Strengthens our 3D digital fabrication Easyway China Provides a strong platform to scale our services portfolio and multiplexes channel access. expand our cloud anufacturing ervices. High-Speed Printer Installed continuous with leading users to qualify manfactrn applicat
Slide 20: Strengthening Sales Coverage & Productivity
STRENGTHENING SALES COVERAGE & PRODUCTIVITY Implementing a series of initiatives better i channel parners intimacy and efficiency f the Productivity and ¢i rrr 5 ility in Rock Hill, SC era ilding it to enhance responsiveness and coverage
Slide 21: Integration, Productivity & Efficiency
INTEGRATION, PRODUCTIVITY & EFFICIENCY Infrastructure with Operational ample capacity to synergies across all Integrated global support future our products and ain growth i } Robust quality processes and world-class service Vertical alignment of business practices i—> Sustainable and scalable compan
Slide 22: Outlook
OUTLOOK
Slide 23: Q&A Session
Q&A SESSION = U.S.: 1-877-407-829: . + international 1- mo 689-8345 To ask questions:
Slide 24: Thank You
Als CASS SS BDSYST EMS THANK YOU | é S - ad CENOPACTURRGTERITURE WIWIW.3DSYSTEMS.COM| NYSE:DDD