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Slide 2: Presenters
Presenters Stacey Witten * Director Investor Relations R Avi Reichental * President & Chief Executive Officer . ¢ Senior Vice President & Chief Financial Officer q Andrew Johnson ¢ Vice President & General Counsel R
Slide 3: Welcome Webcast Viewers
Welcome Webcast Viewers © 1-866-318-8616 in the To listen to the conference United States via phone and to ask * 1-617-399-5135 from questions during our Q&A . 7 outside the United States session, please dial: ¢ Participant Code: 19084856
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
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Slide 6: Revenue grew 31% to a record $102.1 million
>) Revenue grew 31%, to a record $102.1 million on a 61% increase in printers & other products revenue and 22.1% overall organic growth Gross profit increased 38% on higher revenue and GPM expanded 250 basis points to 52.4% We introduced significant new products including several personal and profes
Slide 7: First Quarter revenue by segment
Sin millions First Quarter Printers & © |2022, 5247 Other Products ey <7 Print (2002s 57 Mes EY 52:7 2012 { $285 Services Ln 2° 2012 $12.0 Healthcare Pos 31.0% total revenue growth 22.1% organic revenue growth
Slide 8: New Products Revenue
$in millions New Products Revenue $50 $40 $30 $20 $38.3 23.9 $10 $15.6 i $0 2011 ™2012 m2013 First rter 2013 Launched 4 new products during the first New products revenue up 60% over Q1 quarter 2012
Slide 9: Damon Gregoire, Senior Vice President and CFO
Vice President and CFO Damon Gregoire, Senior
Slide 10: GAAP and Non-GAAP results summary
Sin millions, except earnings per share ——— 2013 Non-GAAP % Change Favorable/ Non-GAAP Non-GAAP | (Unfavorable) Revenue $77.9 $77.9 $ 102.1 $ 102.1 31.0% Gross Profit $38.9 $39.0 $53.5 $53.5 37.6% % of Revenue 49.9% 49.9% 52.4% 52.4% Operating Expenses $ 28.9 $21.9 $36.0 $27.8 (26.6%) % of Revenue 3
Slide 11: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Sin millions except per share amounts) Q1 2012 Qi 2013 GAAP Adjustment Non-GAAP | GAAP Adjustment Non-GAAP Revenue Cost of sales Gross Profit Operating expenses Income from Operations Interest & other expense, net Provision for income taxes Net income Diluted earnings per sh
Slide 12: Revenue by Category & Geography
Revenue by Category & Geography Sin millions fp caczoy | eosrahy 120 120 $102.1 $102.1 100 100 $77.9 $77.9 aa Services a Asia-Pacific oe, 60 4 60 27% Materials Europe 40 + Bx 40 20 Printers & : 20 North Y Other ‘America é Products Fy 2012 2013 2012 2013 Q1 2013 recurring revenue accounted for 61% of
Slide 13: Gross profit by category
$in millions First Quarter 2012 2013 Gross Profit Gross Profit Category Gross Profit Margin Gross Profit Margin Printers & other products . 38.7% $17.8 44.9% 86.2% Print materials E 68.05 $20.9 72.7% 24.5% Services 43.8% $14.8 43.9% 18.1% Total x 49.9% $53.5 52.4% 37.6% Q1 2013 Revenue by Category Q
Slide 14: Operating expenses
irst Quarter % Change % Change Favorable/ Favorable/ Category (Unfavorable) (Unfavorable) SG&A $24.0 $29.5 (23.0%) $17.0 $21.3 (25.1%) R&D $49 $65 (31.8%) $49 $65 (31.9%) Total Operating $28.9 $36.0 (24.5%) $21.9 $27.8 (26.6%) Expenses % of Revenue 37.1% 35.2% 28.2% 27.2% Columns may nat oot due rou
Slide 15: Working Capital
Working Capital % Change Fenn | arama | a | bee aoe Cash $155.9 $110.5 (29.1%) Inventory $ 418 $ 44.0 (5.3%) Accounts Receivable $79.9 $ 89.6 12.1% Accounts Payable $32.1 $29.8 7.2% Working Capital $212.3 $174.2 (18.0%) * Cash on hand at end of March 2013 compared to the end of 2012 decreased $45.3
Slide 16: Outlook and Progress
l 2 lw L UN . Outlook and Progress Avi Reichental, President and CEO
Slide 17: New product launches
In support of our rapidly growing 3D printer business, we launched eight new ProJet® 3510 professional 3D printers We also launched our new full-color ProJet® x60 series of professional 3D printers and new VisiJet® PXL materials built on the proven ZPrinter® platform and our exclusive ColorJet Print
Slide 18: Entered second quarter 2013 with positive sales momentum
We entered the second quarter of 2013 with positive sales momentum, driven by increased demand primarily from advanced manufacturing activities and continued robust R&D and manufacturing spending We are pleased with our consumer solutions progress and expect consumer products revenue to reach meanin
Slide 19: 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.: 1-866-318-8616 To ask questions: ¢ International: 1-617-399-5135 © C
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