3d Systems Corporation · NYSE:DDD
3d Systems — Investor Presentation (June 2017)
29 slides from 3d Systems's investor presentation, Jun 5, 2017
Slide 1: Corporate Presentation - June 2017
1 Vyomesh Joshi, President & CEO Corporate Presentation - June 2017
Slide 2: Forward-Looking Statements
2 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, unc
Slide 3: Focused Execution
3 Focused Execution • Customer centric, market based strategy to make 3D production real • Targeted verticals and focused innovation • Quality as company - wide priority • Committed to continuous innovation • Leverage partnerships to enhance our end - to - end solutions • Implement an operating stru
Slide 4: Leadership Team
4 Chuck Hull EVP, Chief Technology Officer Andy Johnson EVP, Chief Legal Officer and Secretary Doug Vaughan SVP , Marketing and Demand Generation Herbert Koeck SVP, General Manager – EMEA Vyomesh Joshi (VJ ) President and Chief Executive Officer Reinhard Winkler SVP, Supply Chain Kevin McAlea EVP ,
Slide 5: Operating Framework
5 Operating Framework • Clear progress in quality, reliability, supply chain and overall cost structure • Reduced costs of sales as a result of supply chain and manufacturing improvements • Enhanced channel, including better communication and training for partners • More robust product introduction
Slide 6: Industry-Leading Capabilities with Global Scale
6 • Go seamlessly from p hysical to digital to physical with 3D Systems’ unmatched portfolio of digitization, design and production solutions Industry - Leading Capabilities with Global Scale • Industry - leading industrial 3D printing technologies • Widest range of technology and materials • Compre
Slide 7: Plastics Portfolio
7 Plastics Portfolio $1M $300k $200k $100k $50k Software Key Competition Stratasys, BinderJet , FDM Stratasys, Keyence EOS, HP Stratasys, UnionTech Value Proposition 5 – 10 X faster full color printing. 3D Systems most affordable platform with lowest TCO and full color Up t o 2 X faster printing wit
Slide 8: Revolutionary Plastics Production with Figure 4
8 Revolutionary Plastics Production with Figure 4 3D Systems Print Engines Imaging Material Containers Print Trays Print Plates Automation Material Delivery Materials 1 Liter 55 gallon 5 gallon Small Pump Hand Pour Industrial Pump Large Format Standard Tray Non - perforated Standard Plate Linear Rob
Slide 9: Disruptive Total Cost of Operations
9 Disruptive Total Cost of Operations • Fewer printers required, better throughput, lower direct labor costs and higher materials utilization contribute to lower total cost of operations • Cost per Figure 4 produced parts approximately 30% of traditional SLA Industrial Application Example – Figure 4
Slide 10: Precision Metal Printing Solutions
10 Precision Metal Printing Solutions ProX DMP 320 + Range of Materials + 3DXpert • Full Metals Solution • CAD - based Environment • Precise Print Strategies • Repeatability and Reliability • Integrated Post - Processing • Integrated Material Databases • Certified and Qualified Production Facilities
Slide 11: Making 3D Production Real
11 Rapid Prototyping Indirect Manufacturing Custom Manufacturing Complex Manufacturing Productivity, durability, repeatability and total cost of operations gains made in 3D Production can benefit other waves Making 3D Production Real 3D Systems 3D Production
Slide 12: What 3D Production Delivers
12 What 3D Production Delivers • Weight reduction • Assembly consolidation • Custom geometries • Improved fluid dynamics • Optimized designs • Multi - material and multi - color parts • Personalized devices • Repeatability DIGITALLY MANUFACTURED PART • Reduction of tooling • Decentralized/more agile
Slide 13: Healthcare
13 Healthcare TODAY’S CHALLENGES • Enable doctors to drive down costs and reduce operating time • Device development and manufacturing in validated production environment • Enhanced surgeon confidence through planning and simulation • Accelerate product introductions to market • Time to develop expe
Slide 14: Precision Healthcare Focus
14 Precision Healthcare Focus Surgical Simulation Surgical Planning Device Design & Manufacturing Bioprinting • Over 500,000 medical devices printed • Over 10,000 surgeons trained • ISO certified facilities and processes • FDA approved services and products • Over 75,000 surgical cases planned • Ove
Slide 15: Figure 4 + NextDent Disrupts Dental Industry
15 Figure 4 + NextDent Disrupts Dental Industry 3D Systems • Over 90% of all current production is milling, which can be disrupted by our powerful combination • Versatile, scalable solution for 12 different indications • Speed , productivity, accuracy, repeatability and durability • Dedicated to red
Slide 16: Automotive
16 Automotive TODAY’S TACTICAL CHALLENGES • Drive down costs of vehicle manufacturing through light - weighting parts • Innovation in more complex, integrated parts produced on - demand • Very rapid iteration of designs • Weight + fuel = emissions • Faster time - to - market • Supply chain inefficie
Slide 17: 3D Production for Automotive
17 3D Production for Automotive • Highly functional, very fast prototypes • Rapid shell investment casting processes • Tool - free parts production for bridge manufacturing • Short - run production parts in metal Significantly improved time - to - market On - demand production of current and obsolet
Slide 18: Aerospace
18 Aerospace TODAY’S TACTICAL CHALLENGES • Validating material/parameters and in - machine sensors provide q uality c ontrol • Driving down costs of flight through lower weight parts • Help revolutionize and accelerate supply chain • Provides traceability, reliability and repeatability • Weight + fu
Slide 19: 3D Production in Aerospace
19 3D Production in Aerospace Rapid production of airworthy parts Light - weighting of parts to deliver significant fuel economies Revolutionizing the supply chain • Rapid shell investment casting with antimony - free materials • Rapid digital quality inspection of parts during and after production
Slide 20: 3D Printer Use Case Value Proposition
20 3D PRINTER U SE CASE VALUE PROPOSITION ProX ® SLS 500 Full packed build of small functional parts o Average 20% lower part cost than Multi - Jet Fusion ProJet ® SLA 6000 Full packed build of small prototypes o Up to 66% lower part cost & 91% higher throughput than FORTUS 450mc o 11% lower part co
Slide 21: Q1 2017 Financial Highlights
21 Q1 2017 Financial Highlights • Continued strength in production printers, materials and healthcare • Expanded GPM to 51.3% on results of executing cost savings initiatives • Balanced investments in go to market and innovation while driving operational excellence • Made focused R&D investments, in
Slide 22: Outlook and 2017 Guidance
22 Outlook and 2017 Guidance • Revenue growth between 2% and 8% – In the range of $643 million to $684 million • GAAP EPS improvement of 106% to 117% – In the range of $0.02 to $0.06 per share • Non - GAAP EPS increase of 10% to 20% – In the range of $0.51 to $0.55 per share • Continued positive cas
Slide 23: Drivers to 2017 Guidance
23 Drivers to 2017 Guidance Q1 2017 Performance Rest of the Year Expectations Revenue (YOY): • Total growth of 3% • Printer revenue down 4% • Materials grew 11% • Software flat • Healthcare grew 29% • On Demand Manufacturing down 6% • Continue/accelerate growth • Return to growth • Growth continues
Slide 24: We are at an inflection point
24 We are at an inflection point. 3D printing is shifting from prototyping to production. We believe we are well positioned to make 3D production real and drive profitable growth.
Slide 25: Thank you
ZQ 3D SYSTEMS Thank you.
Slide 26: Supplemental Information
26 Supplemental Information
Slide 27: GAAP to Non-GAAP Reconciliation – Q1 2017
27 GAAP to Non - GAAP Reconciliation – Q1 2017 (a) Tax effect for the quarter ended March 31, 2016 and earlier periods was calculated quarterly, based on the Company’s overall ta x rate for each quarter. Tax effect for the quarters ended after March 31, 2016 was calculated based on the Company’s qua
Slide 28: Q1 2017 Financial Results
28 Q1 2017 Financial Results 3D Systems (in thousands, except per share amounts) GAAP Amortization, Stock-Based Compensatio n & Other Legal and Acquisition- Related Portfolio Restructuring Non-GAAP GAAP Amortization, Stock-Based Compensatio n & Other Legal and Acquisition- Related Portfolio Restruct
Slide 29: GAAP to Non-GAAP Reconciliation – 2017 Guidance
29 GAAP to Non - GAAP Reconciliation – 2017 Guidance 3D Systems (in millions, except per share amounts) Low High Revenue $ 643 $ 684 GAAP Earnings per Share $ 0.02 $ 0.06 Estimated adjustments to arrive at non-GAAP EPS: Amortization 0.30 0.30 Stock Based Compensation 0.14 0.14 Acquisition, severance