Slide 1: Second Quarter & Six Months 2015 Conference Call and Webcast
y = =— - SDSYSTEMs SECOND QUARTER & SIX MONTHS 2015 CONFERENCE CALL AND WEBCAST MANUFACTURINGTHE FUTURE WWW.3DSYSTEMS.COM | NYSE:DDD
Slide 2: Presenters
Stacey Witten Avi Reichental Dave Styka Andy Johnson PRESENTERS * Vice President, Investor Relations * President & Chief Executive Officer * Executive Vice President & Chief Financial Officer * Executive Vice President & Chief Legal Officer Se ee
Slide 3: Welcome Webcast Viewers
WELCOME WEBCAST VIEWERS To listen to the conference via phone * 1-877-407-8291 in the United States and to ask questions during our Q&A ion, please dial: session Resse oe * 1-201-689-8345 from outside the United States
Slide 4: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, cevelopme
Slide 5: Operating Results
OPERATING RESULTS Avi Reichental President & CEO MANUFACTURINGTHE oo
Slide 6: Second Quarter 2015 Overview
SECOND QUARTER 2015 OVERVIEW a Revenue increased 13% to $170.5 million, representing a 22% increase on a constant currency basis XY r Continued industry-level challenges contributed to a 5% decline in organic revenue, representing 2% organic growth on a constant currency basis rc Gross profit margin
Slide 7: Second Quarter Revenue Highlights
SECOND QUARTER REVENUE HIGHLIGHTS Sinai: ms ana sino : sis ; s160 sis siet2 sino 00 sna 100 _ sno 1550 ss00 $3 100 i aaa Bor S80 Sea siss0 ry sco samo sao sino seo sso a emt cet ans cao aziz Nasa aS Design & Manufacturing Consumer Revenue increased 12%, or $17 million, compared to the second quarter
Slide 8: Strength in Key Areas
STRENGTH IN KEY AREAS Six Months Direct Metal Metals revenue increased 14% on a 37% increase in printer units. Remaining application and performance issues impeded growth, and we are working diligently to remediate these issues. Healthcare Healthcare revenue increased 32% to $64.8 million on expande
Slide 9: Financial Review
FINANCIAL REVIEW Dave Styka Executive Vice President & CFO MANUFACTURINGTHE ee
Slide 10: GAAP Operating Results
GAAP OPERATING RESULTS ‘Sinmillions, except earnings per share Second Quarter Six Months 2015 2014 2015 2014 Revenue $170.5 $151.5 $331.2 $299.3 \Gross Profit $81.6 $72.4 $160.6 $147.9 Gross Profit Margin 47.9% 47.8% 48.5% 49.4% Operating Expenses $105.5 $68.0 $ 202.0 $ 134.0 % of Revenue 61.9% 44.9
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Second Quarter Six Months (S in millions, except per share amounts) 2015 2014 2015, 2014 GAAP net income ($13.7) $24 ($ 26.9) $7.0 Cost of sales adjustments: ‘Amortization of intangibles $01 $01 $02 $01 Operating expense adjustments: ‘Amortization of intangibles $174 $81 $31.
Slide 12: Revenue by Geography
REVENUE BY GEOGRAPHY Sia milons Second Quarter smAmerices MEMO Aso Pac Six Months $200 5 $250 Z S70 s1s0 $100 : g a so Americas EMEA mAda-Pac In the second quarter: + Americas revenue increased 15% to $90.4 million + EMEA revenue grew 25% to $52.3 million + APAC revenue decreased 9% to $27.8 million
Slide 13: Revenue by Category
REVENUE BY CATEGORY Sinmiions Second Quarter = es S60 201 aos seProdacts Meters Sevies Six Months 5200 S180 ace 5100 $0 an 0 2008 2015 Products mMateils « Sevices Inthe second quarter: + Products revenue increased 10% to $68.2 million + Materials revenue decreased 4% to $36.4 million * Service reven
Slide 14: Gross Profit Margin
GROSS PROFIT MARGIN Sinmitions Second Quarter 2015 2014 Yr-¥r % Change Gross Gross Profit Gross Profit] Gross | Profit Category Gross Profit | Margin | Gross Profit | Margin | Profit | Margin Products $18.9 27.8% $22.1 35.7% | (14.4%)| (22.2%) Materials $28.2 77.3% $26.6 70.0% | 5.8% | 10.5% Service
Slide 15: Operating Expenses
OPERATING EXPENSES Sin miens Second Quarter GAAP Operating Expenses Non-GAAP Operating Expenses YOY Change YOY Change Favorable/ Favorable/ Category 2015 2014 (Unfavorable) Q2 2015 Q22014 (Unfavorable) R&D §257 $177 (45.3%) $25.7 $177 (45.3%) K of Revenue 15% 2K 15K 2K SG&A $79.7 $50.3 (58.5%) $50.7
Slide 16: Working Capital
WORKING CAPITAL $inmilons % Change Favorable/ June 2015 December 2014 | (Unfavorable) Cash $171.2 $ 284.9 (39.9%) Accounts Receivable $149.5 S 168.4 11.2% Inventory $ 130.7 $ 96.6 (35.3%) Accounts Payable $ 63.7 $64.4 1.1% Working Capital S$ 346.0 $ 432.2 (19.9%) + Used $6.4 million of cash in opera
Slide 17: Operating Measures
OPERATING MEASURES ‘@ ~ Focusing on driving productivity and efficiency measures to achieve operating leverage Continuing to consolidate facilities, shed less profitable activities, accelerate synergy and cost reduction measures and drive process improvements a ee Investing to enhance the quality of
Slide 18: Business Update & Outlook
BUSINESS UPDATE & OUTLOOK Avi Reichental [ President & CEO MANUFACTURINGTHE oe
Slide 19: Recent Highlights
RECENT HIGHLIGHTS New Products and Partnerships Expanded presence and coverage in China through the acquisition of Easyway Broadened partner network with the addition of Konica Minolta Australia, HK 3D in the United Kingdom and MLC CAD Systems in the United States Entered into agreements with the U.
Slide 20: Quality in Everything We Do
QUALITY IN EVERYTHING WE DO Product Design ¢ Enhancing new product delivery processes by fully leveraging Wilsonville expertise in design, reliability engineering, quality and compliance testing for all products Manufacturing ¢ Installing additional process-checks and performance metrics designed to
Slide 21: Outlook
OUTLOOK ( > We believe that VO c We believe that @ We believe that = delivering quality in .O focusing our = innovation, quality, © everything that we te ‘resources and {3 operational > do, from product ‘p capabilities in ke > excellence and oc p we Capi Y design and © areas—including partner friend
Slide 22: Q&A Session
Q&A SESSION r 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.: 1-877-407-8291 ‘Teaskquestions: * International: 1-201-689-8
Slide 23: Thank You
SBDSYSTEmMsS | THANK YOU MANUFACTURINGTHE FUTURE wD OO ———