Slide 1: Third Quarter 2023 Financial Results
November 8, 2023 Third Quarter 2023 Financial Results
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Andrew Johnson Executive Vice President, Interim Chief Financial Officer Mick McCloskey Vice President, Treasury & Investor Relations 2
Slide 3: To participate via phone, please dial
To participate via phone, please dial: 1-201-689-8345 3 ©2023 3D Systems, Inc. | All Rights Reserved.
Slide 4: Forward Looking Statements
Forward Looking Statements Certain statements made in this release 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 involve known and unknown risks, uncertainti
Slide 5: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 5
Slide 6: Third Quarter Performance & Industry Outlook
Third Quarter Performance & Industry Outlook Healthcare Broadest range of additive technologies in 3D Scale the industry, including metal and polymer, materials and software Impacted by lower consumer discretionary Demand Environment spending and production CapEx Operational execution and technology
Slide 7: Industrial Solutions Group
Industrial Solutions Group • Delivered year-over-year growth in a challenging demand environment • Driven by Commercial Aviation & Defense, Transportation & Motorsport, and Academic & Research verticals, partially offset by broader weakness in other markets 7
Slide 8: Healthcare Solutions Group
Healthcare Solutions Group • Revenue decline in Q3’23 primarily driven by expected weakness in dental orthodontics business • Softer non-dental printer sales offset by milestone progress in Regenerative Medicine and Personalized Healthcare Solutions growth • Additive Manufacturing continues to chang
Slide 9: Restructuring Initiative
Restructuring Initiative Actions expected to deliver between $45-$55 million in annualized savings by the end of 2024 Focused on operations optimization, headcount reduction, cost downs with 3rd party contracts and geographic rationalizations Reduce operating costs, improve customer quality/de
Slide 10: An Incredible Technology Roadmap Ahead
An Incredible Technology Roadmap Ahead A record number of new product releases between now and the end of 2024… Accura AMX High Temp 300C C-103 Chuck Hull Awarded National Medal of Technology and Innovation SLS 300 DMP Flex 350 Triple 10
Slide 11: Andrew Johnson
Andrew Johnson EVP, Interim Chief Financial Officer 11
Slide 12: Q3 Revenue Summary
Q3 Revenue Summary ($ in millions) ISG HSG Consolidated $68 $71 $64 $132 $52 $124 Q3’22 Q3’23 Q3’22 Q3’23 Q3’22 Q3’23 • ISG revenues grew ~5% YoY, • HSG declined ~18% YoY due to • YoY revenue declined ~6% primarily primarily driven by strength in decline in dental orthodontics driven by expected hea
Slide 13: Gross Profit Margin
Gross Profit Margin (Non-GAAP) 44.8% Commentary 42.7% • Continued execution of efficiencies & 39.9% cost optimization, favorable mix, 38.9% despite headwind from lower volumes • ~$4.5 million of revenue recognized at 100% gross margin for milestone progress in Regenerative Medicine Q3 2022 Q2 2023 Q
Slide 14: Earnings (non-GAAP)
Earnings (non-GAAP) • Adjusted EBITDA increased to $4.7 million dollars in Q3 2023, improvement of $5 million from the prior year and $11.6 million from prior quarter, driven by cost optimization, progress in Regenerative Medicine and lower incentive compensation expense • Expect adjusted EBITDA to
Slide 15: Balance Sheet
Balance Sheet • Ended the quarter with $446 million dollars of cash and short-term investments on hand • Decrease due to $72 million of cash used in operations, $21 million used for capital expenditures, and $29 million used for acquisitions and investments • Targeting a 20% inventory reduction in 2
Slide 16: Restructuring Initiative
Restructuring Initiative • Additional restructuring initiative expected to deliver $45-$55 million in annualized savings by end of 2024 • Rationalization of current geographic footprint to continue integrating human, technological and production resources • Headcount reduction of up to 10% spread ac
Slide 17: Q&A Session
Q&A Session 1-201-689-8345 17
Slide 18: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 18
Slide 19: Thank You
Thank You Find out more at: www.3dsystems.com 19
Slide 20: Appendix
Appendix ©2023 3D Systems, Inc. | All Rights Reserved.
Slide 21: Presentation of Information
Presentation of Information 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP revenue excluding divestitures and on a constant currency basis (sometimes referred to as excluding divestitures and FX eff
Slide 22: Balance Sheets
Balance Sheets 3D Systems Corpor Unaudited Consolidated Balance Sheets September 30, 2023 and December 31, 20 September December (am thowsands, excep par value) 30,2003 ASSETS ‘Current assets (Cash an cash equivalenss Ss 4ussse Ss sans ‘Shor-tens invesmens — 180.6083 Accounts receivable, net of eser
Slide 23: Statement of Operations
3D System: Corporation Unaudited Cor Statement of MMe ee Operations ent an er ogi ce Revenue: Products S$ 8045 $ 96.337 Services 916 Total revenue 123,791 132,253 47427 58,042 21,014 Total cost of sales 68.441 Gross profit 55.350 Operating expences: Selling, general and administrative 33,355 65579 R
Slide 24: Statement of Cash Flows
Statement of Cash Flows 3D System: Corporation Unaudited Consolidated Statements of Cazh Flos Nine Months Ended September 30, 2023, 2022 Nine Months Ended ber 30, September 30, vf 2? Sept (on honsands) Cash ows from operating activi: ‘Net (oss) income before redeemable no-contoling intrest Sos) $973
Slide 25: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue (in thousands except percentages, unaudited) 25
Slide 26: Gross Profit and Gross Profit Margin Reconciliation
Gross Profit and Gross Profit Margin Reconciliation (in thousands except percentages, unaudited) 26
Slide 27: Adjusted EBITDA Reconciliation
Adjust EBITDA reconciliation (in thousands except percentages, unaudited) 27
Slide 28: Earnings per Share Reconciliation
Earnings per Share Reconciliation (in dollars, unaudited) 28