3D Systems Corporation · NYSE:DDD
3D Systems — Investor Presentation (August 2020)
21 slides from 3D Systems's investor presentation, August 2020
Slide 1: Investor Presentation August 2020
Investor Presentation August 2020 ©2019 3D Systems, Inc. | All Rights Reserved.
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 include statements concerning plans, ob
Slide 3: New Leader. New Future.
New Leader. New Future. Dr. Jeffrey Graves is President and CEO of 3D Systems and joined the company on May 26, 2020. Prior to joining 3D Systems, from 2012 to May 2020, he served as CEO, President and Director of MTS Systems Corporation, a global supplier of test, simulation, and measurement system
Slide 4: 3D Systems' Strategic Purpose
3D Systems’ Strategic Purpose We are the leaders in… enabling additive manufacturing solutions for applications in growing markets that demand high reliability products. 4 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 5: Clear, Strategic Actions for Profitable Growth
Clear, Strategic Actions for Profitable Growth Clear New Focus Our Strategic Resizing Future Organization Efforts Purpose • We are the leaders • To accelerate our • Ensure we are • Resizing + other • We are well in enabling additive strategic purpose, focusing our efforts cost reduction positioned t
Slide 6: Market Focus
Market Focus Healthcare Solutions Industrial Solutions Dental Aerospace & Defense Medical Devices Transportation & Motorsports Simulations Investment Castings Surgical Planning Jewelry Consumer Durables & Electronics Focus on Key Applications within these Markets 6
Slide 7: Full Solution Provider
Full Solution Provider SERVICES & HARDWARE & GLOBAL PRODUCTION SOFTWARE MATERIALS REACH • Application experts • Full range of 3D • Service Experts • Deep and diverse printers to address AM across 5 continents experience in • Customer Innovation needs in production parts and Centers (CIC) for ◦ Wax •
Slide 8: Restructuring
Restructuring Clear New Focus Our Strategic Resizing Future Organization Efforts Purpose Restructuring • Reduce operating costs by $100 million per year by end of next year • Expect to be profitable at current sales level ◦ Then, well positioned to leverage sales growth as it returns • Nearly 20% wo
Slide 9: Why AM? Tangible Benefits to AM Design
Why AM? Tangible Benefits to AM Design 9
Slide 10: How Big is the Market? AM Industry Growth Estimate
How Big is the Market? AM Industry Growth Estimate SCALE OF AM GROWTH • Over the next 5 years, market is expected to grow on average at 24% CAGR, reaching $35B by 2024 INDUSTRY GROWTH DRIVERS • High focus to introduce new designs & business models that take full advantage of the manufacturing freedo
Slide 11: Healthcare Case Study
Healthcare Case Study Customer Need An economically viable orthopedic implant with optimized surface characteristics and mechanical properties for superior performance. The Challenge with Traditional Manufacturing 'Machining-plus-coating' manufacturing processes lead to poor surface quality, high co
Slide 12: Industrial Case Study
Industrial Case Study Customer Need State-of-the-art cast metal parts with highly complex geometries to enable Improved levels of performance at reduced cost The Challenge with Traditional Manufacturing Traditional investment casting production methodology limits geometric design options and involve
Slide 13: Revenue by Market
Revenue by Market $ in millions (11.4)% (38.5)% (9.2)% (25.9)% Reflects impact from COVID-19 across all products and geographies 13
Slide 14: Second Quarter & 1st Half Summary
Second Quarter & 1st Half Summary Second Quarter Six Months Ended (in millions, except per share amounts) 2020 2019 2020 2019 Revenue $ 112.1 $ 157.3 $ 246.8 $ 309.3 Operating Loss (33.9) (19.2) (52.1) (40.5) Net Loss (38.0) (23.9) $ (56.9) $ (48.3) Loss Per Share $ (0.33) $ (0.21) $ (0.49) $ (0.43)
Slide 15: Cash and Liquidity at June 30, 2020
Cash and Liquidity at June 30, 2020 • $64 million of cash and cash equivalents • Term Loan of $22 million • $100 million is undrawn ◦ $24 million of availability based on terms of agreement • Board authorized "At The Market" equity issuance up to $150 million ◦ Provides financial flexibility as we g
Slide 16: Summary
Summary Our Transformation Journey • Refocus – based on establishing our purpose • Reorganize – around two market verticals, Healthcare and Industrial • Restructure – take out $100 million of costs to return to profitability and position to leverage sales growth as it returns 16
Slide 17: Thank You
Thank You Find out more at: www.3dsystems.com 1 17 7 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 18: Appendix
Appendix ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 19: Non-GAAP Reconciliation - Operating Loss
Non-GAAP Reconciliation - Operating Loss Second Quarter Non-GAAP Operating Loss Quarter Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Operating income (loss) $ (33.9) $ (19.2) $ (52.1) $ (40.5) Adjustments: Amortization, stock-based compens
Slide 20: Non-GAAP Reconciliation - EPS
Non-GAAP Reconciliation - EPS Second Quarter Non-GAAP Earnings (Loss) per Share Quarter Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Net loss $ (38.0) $ (23.9) $ (56.9) $ (48.3) Adjustments: Amortization, stock-based compensation & other 1
Slide 21: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense Quarterly 2019 and 2020 Non-GAAP Operating Expenses 2019 2020 Quarter Ended Quarter Ended September December (in millions) March 31 June 30 30 31 March 31 June 30 GAAP SG&A Expenses $ 65.1 $ 71.7 $ 58.3 $ 59.3 $ 56.1 $ 52.0 GAAP R&D Expenses 21.9 20.8 20.9