3D Systems Corporation · NYSE:DDD
3D Systems — Merger or Acquisition (July 2023)
19 slides from 3D Systems's merger presentation, Jul 13, 2023
Slide 1: Building a Global Leader in Additive Manufacturing
+ •Cover style Building a Global Leader in Additive Manufacturing JULY 13, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this document that are not statements of integration will be successful or synergies will be realized if such historical or current facts are forward-looking statements within the transaction were to be consummated. Business combination proposals
Slide 3: Additional Information
Additional Information This communication does not constitute an offer to buy or sell or the This document shall not constitute an offer to buy or sell or the solicitation solicitation of an offer to sell or buy any securities. This communication of an offer to sell or buy any securities, nor shall
Slide 4: Proposed Transaction Summary
Proposed Transaction Summary • Consideration of $7.50 in cash and 1.5444 shares of 3D Systems common stock per Stratasys ordinary share • Implies a nominal value per Stratasys share of approximately $24.07¹, a 62% premium to Stratasys undisturbed price as of Consideration May 24, 2023, and a ~15% im
Slide 5: An Unparalleled Transaction for Stratasys Shareholders
An Unparalleled Transaction for Stratasys Shareholders 1 2 3 Creates Player with Delivers Exceptional Secures Higher Value Differentiated Scale Cost Synergies that Through Stronger and Broadest Drive Significant Value Financial Profile Capabilities in Rapidly Creation Growing Industry Higher Value.
Slide 6: Building a Scaled Champion
Building a Scaled Champion ~40K Creates the Most Compelling Additive Manufacturing Pure-Play Stock 2023E Revenue Customers1 600+ Channel Partners1 1M+ Parts Printed Per Day2 6 Source: Public Filings, Management Estimates, Factset; market data as of 12-Jul-2023 1 Based on 3D Systems management estima
Slide 7: Highly Complementary Portfolio
Highly Complementary Portfolio Digital Light Printing (DLP) DP Metals Jetting: Inkjet (Poly) Selective Laser Sintering Selective Absorption (Laser-Based Fusion) Fusion Proven Technologies With Little Overlap1 Jetting: Inkjet (Wax) Extrusion Large Format Fused Filament SSYS Small-Med Format Fused Fab
Slide 8: Comprehensive Offering of Additive Technologies Across Applications
Comprehensive Offering of Additive Technologies Across Applications VSP & Medical Durable Dental Anatomical Automotive Aerospace Bio Printing Desktop Devices Goods Models Inkjet (Poly) Inkjet (Wax) CJP Small-Med Format FDM (Filament) Large Format FFF (Pellets) DLP (Fi
Slide 9: Significant Near-Term Cost Synergies Jointly Identified and Agreed Upon
Significant Near-Term Cost Synergies Jointly Identified and Agreed Upon by 3D and Stratasys Teams Breakdown of Expected Synergies SG&A Savings COGS • Supply chain efficiencies • Eliminate overlapping functions • Effective global services support Synergies $100mm+ SG&A identified during R&D Integrati
Slide 10: Best-in-Class Combined Financial Profile
Best-in-Class Combined Financial Profile ~$1.2bn ~$885mm Combined 2023E Revenue1 Combined 2023E Revenue1 (More than $1bn in Revenue TODAY, NOT by 2026) ~$145mm ~$55mm Combined 2023E EBITDA2 Combined 2023E EBITDA3 Assuming run rate cost synergies Assuming run rate cost synergies ~12% ~6% Combined 202
Slide 11: Attractive and Credible, Combined Financial Profile
Attractive and Credible, Combined Financial Profile, Jointly Agreed with Stratasys Combined Company Near-Term Financial Profile Organic Revenue Growth Double-Digit Gross Profit Margin ~50% R&D Spend ~12% SG&A Spend ~25% EBITDA Margin 15%+ 11 Source: Combined Management Estimates from September 2022
Slide 12: Clearly Superior Proposal
Clearly Superior Proposal 12
Slide 13: Setting the Record Straight
Setting the Record Straight + $ 1.5B $ 3.2B $(0.6) $ 1.3B $2.3 $ 2.0B $0.7 Illustrative 15x $1.0 $ 0.5 Capitalization Multiple on (Cash 41%8 Consideration) $100mm $0.6 Illustrative 15x $ 1.1B Synergies ~44% Capitalization Stratasys Multiple on Ownership $ 1.4 $50mm $1.4 $1.4 in Synergies Combined (S
Slide 14: The Market Continues to Speak
The Market Continues to Speak Stratasys Three-Day Share Price “We do not believe that the Board can Reaction Post-Announcement reject the obvious any longer: a 3D Systems transaction is significantly more compelling than the current alternatives and warrants immediate engagement.” 14.1% - The Donera
Slide 15: An Unparalleled Transaction
An Unparalleled Transaction + Delivers Significant Value Creation Concerning Impact on Stratasys’ Combined with Exceptional Cost ? Financial Profile and Cash Generation Synergies Creates Unmatched Global Player in a Questionable Synergies and Highly Rapidly Scaling Industry ? Speculative Multipl
Slide 16: Appendix
Appendix 16
Slide 17: Side-by-Side: Laser Bed Fusion vs Binder Jet
Side-by-Side: Laser Bed Fusion vs Binder Jet DMP Metals – Powder Bed Fusion Metals Binder Jet Metals A liquid binding agent is deposited onto thin metal powder layers; Process A laser selectively fuses metal powder particles together secondary sintering process is required Materials ++ Offers more m
Slide 18: 3D Systems Welcomes Constructive Engagement
3D Systems Welcomes Constructive Engagement History of Proposals Received by Stratasys Board of Directors Proposal Implied Value Implied Premium to Stratasys Stratasys Board Date Buyer Per Stratasys Share at Market Stock Price Decision Jan-16-2021 $43.48 37% No engagement Feb-9-2021 $ 60.00 13 % Eng
Slide 19: Well-Positioned to Obtain Regulatory Clearances
Well-Positioned to Obtain Regulatory Clearances 3D Systems is confident that all applicable regulatory clearances for the proposed combination will be obtained and has requested Stratasys permit its regulatory advisors to meet with 3D’s advisors to confirm this conclusion 1 2 3 Combined R&D Additive