Shapeways Holdings, Inc. · OTC:SHPWQ
Shapeways — SPAC Merger (April 2021)
52 slides from Shapeways's SPAC merger presentation, Apr 30, 2021
Slide 1: Shapeways Investor Presentation April 2021
Shapeways Investor Presentation April 2021
Slide 2: Disclaimer
DISCLAIMER 2 This Presentation (the "Presentation") is for informational purposes only to assist interested parties in making an evaluatio n w ith respect to a proposed business combination between Galileo Acquisition Corp. (“Galileo”) and Shapeways Inc. (the "Company" or “Shapeways”) and is being f
Slide 3: Disclaimer, Cont.
DISCLAIMER, CONT. 3 Forward Looking Statements - Certain statements included in this Presentation are not historical facts but are forward - looking s tatements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward - looking stat
Slide 4: Transaction Summary
4 TRANSACTION SUMMARY SHAPEWAYS Greg Kress CEO Jennifer Walsh CFO GALILEO Luca Giacometti Co - founder, Chairman & CEO Alberto Recchi Co - founder, CFO Alberto Pontonio Co - founder, Director HIGHLIGHTS TRANSACTION STRUCTURE ● Galileo Acquisition Corp. has proposed to enter into a business combinati
Slide 5: Galileo Acquisition Corp
5 Serial SPAC team having successfully completed four business combinations, plus Shapeways in process. Seasoned dealmakers with diverse nationalities, M&A, principal investing and public company operating experience in both the North American and Western European markets. Uniquely qualified to supp
Slide 6: Shapeways Is a Leader in Digital Manufacturing
6 1. Unique and compelling opportunity in large, fast growing digital manufacturing market 2. High quality, flexible on demand manufacturing with proprietary purpose built software 3. Agnostic to hardware and materials allows quick adaptability to market shifts 4. Broad use across customer types and
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Slide 8: Shapeways' Digital Manufacturing Platform Offers Customers Access to High Quality Manufacturing
8 SHAPEWAYS’ DIGITAL MANUFACTURING PLATFORM OFFERS CUSTOMERS ACCESS TO HIGH QUALITY MANUFACTURING FROM START TO FINISH SHAPEWAYS Digital Manufacturing Leader Offering high quality, flexible on demand manufacturing With expansive capabilities Enabled by purpose built, proprietary software
Slide 9: Shapeways Is a Leader in Digital Manufacturing: At a Glance
9 SHAPEWAYS IS A LEADER IN DIGITAL MANUFACTURING Combining high quality, flexible on demand manufacturing with purpose built proprietary software enables any customers to rapidly transform digital designs to physical products. AT A GLANCE 21M+ Parts Manufactured 1 88% Repeat Revenue 3 1M+ Global Cus
Slide 10: Experienced Management Team + Committed, Long Term Investors
EXPERIENCED MANAGEMENT TEAM + COMMITTED, LONG TERM INVESTORS 10 SENIOR MANAGEMENT TEAM KEY INVESTORS Greg Kress Chief Executive Officer Jennifer Walsh Chief Financial Officer Miko Levy Chief Revenue Officer Josh Wolfe Co - Founder, Managing Partner Albert Wenger Managing Partner Robert Jan Galema Ma
Slide 11: Industry 4.0: The Industrial Revolution Continues
11 INDUSTRY 4.0 THE INDUSTRIAL REVOLUTION CONTINUES Industry 1.0 Mechanization Industry 2.0 Electrification Industry 3.0 Automation Industry 4.0 Digitization Industry 5.0 Personalization TIMELINE INDUSTRY 4.0 Digitizing end - to - end manufacturing (1) CapGemini - based on companies at advanced stag
Slide 12: Disrupting the Massive Global Manufacturing Market
DISRUPTING THE MASSIVE GLOBAL MANUFACTURING MARKET 12 2020E $39B 2030E $120B DIGITAL MANUFACTURING MARKET SIZE 1 Includes low volume manufacturing in both traditional & additive technologies (1) Wohlers 2020, Grandview Research, Transparency Market Research, ORC, Bero Inc Market is slow, manual, and
Slide 13: Additive Manufacturing Innovation Accelerates Shift to Finished Part Production
13 ADDITIVE MANUFACTURING 1 INNOVATION ACCELERATES SHIFT TO FINISHED PART PRODUCTION INCREASED HARDWARE INNOVATION Legacy patent expiration enabling new hardware innovation, embracing open material model and delivering improved speed, accuracy, and quality. INCREASED MATERIALS DEVELOPMENT Open sourc
Slide 14: The Shift to Digital Manufacturing Enables Significant Value Creation
14 THE SHIFT TO DIGITAL MANUFACTURING ENABLES SIGNIFICANT VALUE CREATION (1) McKinsey - Industry 4.0, How to navigate digitization of the manufacturing sector 20 - 50% Faster Speed to Market 45 - 55% Improved Labor Efficiency 30 - 50% Increased Asset Utilization 10 - 20% Reduced Cost of Quality 20 -
Slide 15: Business Overview
BUSINESS OVERVIEW 15
Slide 16: Shapeways Platform Transforms Digital Designs to Physical Products
16 SHAPEWAYS PLATFORM TRANSFORMS DIGITAL DESIGNS TO PHYSICAL PRODUCTS Digital File File Upload Digital Inventory Integration Product Configuration Technology Material + finish Delivery Speed File Analysis, Manufacturability Auto Correction File Optimization Supply Chain Readiness SC flexibility Smar
Slide 17: Offering High Quality, Flexible On Demand Manufacturing
17 OFFERING HIGH QUALITY, FLEXIBLE ON DEMAND MANUFACTURING SHAPEWAYS MANUFACTURING Proven high quality, low volume production. 138 Global Employees 1 21M Parts Manufactured 1 99% On Time Delivery 3 <1% Complaint Rate 2 1M Global Customers 1 160 Countries Delivered 1 2 Manufacturing Sites 1 (1) Compa
Slide 18: Expansive Manufacturing Capabilities Agnostic to Hardware + Materials
18 WITH EXPANSIVE MANUFACTURING CAPABILITIES AGNOSTIC TO HARDWARE + MATERIALS ALLOWS QUICK ADAPTABILITY TO MARKET SHIFTS Shapeways currently offers 11 hardware technologies and over 90 materials and finishes, with ability to scale new innovation easily.
Slide 19: Enabled by Purpose Built, Proprietary Digital Manufacturing Software
19 ENABLED BY PURPOSE BUILT, PROPRIETARY DIGITAL MANUFACTURING SOFTWARE DIGITIZING END TO END MANUFACTURING Giving customers the ability to realize the potential of Digital Manufacturing. Providing high quality, low volume, complex one part production.
Slide 20: Digitizes the End to End Manufacturing Process
20 THAT DIGITIZES THE END TO END MANUFACTURING PROCESS ORDERING File upload, configuration, instant pricing, digital inventory ANALYSIS FIle analysis, printability tools, file optimization workflows PLANNING Supply chain management & smart demand allocation PRE PRODUCTION Manufacturing prep, tray pl
Slide 21: And Does It At Scale: Software Built with Integrations in Mind
AND DOES IT AT SCALE + 100’s More SOFTWARE BUILT WITH INTEGRATIONS IN MIND. Enabling deep integrations with our customers, connecting systems, apps, people, & infrastructure to become a mission critical component of their business. 21
Slide 22: Making Manufacturing Accessible, Offering Frictionless Customer Experience
22 FAST Receive physical products in days, from upload to delivery LOW COST No upfront investment to get started & no minimum order quantity FLEXIBLE Switch between technology & materials based on customer needs HIGH QUALITY Proven high quality production to meet finished end product standards SCALA
Slide 23: Broad Use Across Customer Types + Industries
23 Individual Engineer Focused on project based needs to support product design through production. Small Business Focused on manufacturing with ongoing flexibility, supply chain agility, & ability to scale. Large Enterprise Focused on production, supply chain development, and software to manage int
Slide 24: 3) BIOLOGIC MODELS SN@Z kespry ) O BeeHero
3) BIOLOGIC MODELS SN@Z kespry ) O BeeHero open bionics”
Slide 25: Growing Customer Economics
25 GROWING CUSTOMER ECONOMICS Ability to drive consistent improvement in GM per customer 1 , forecasting 30%+ CAGR from 2020 through 2025 PRE 2020, REPEAT CUSTOMER REVENUE 88% NEW CUSTOMER REVENUE 12% 45% Growth 34% Growth 30%+ CAGR 2020 CORE REVENUE LOYAL CUSTOMER BASE WITH GROWING CUSTOMER ECONOMI
Slide 26: Growth Opportunities
GROWTH OPPORTUNITIES 26
Slide 27: Scalable Platform, Positioned for Expansion
27 SCALABLE PLATFORM, POSITIONED FOR EXPANSION EXPANDED POLYMER OFFERING INDUSTRIAL METALS COMPOSITES CERAMICS ASIA INDUSTRIAL MEDICAL AUTOMOTIVE AEROSPACE EXPANDED AM CNC INJECTION MOLDING SHEET METAL NEW MATERIAL OFFERING Platform Investment: $$ Investment NEW MARKET EXPANSION Platform Investment:
Slide 28: AM Hardware + Material Capability Expansion Unlocks New Industries
28 AM HARDWARE + MATERIAL CAPABILITY EXPANSION UNLOCKS NEW INDUSTRIES Enabling acceleration of adoption in key markets including Industrial, Medical, Automotive, and Aerospace. ADDITIVE MANUFACTURING CAPABILITY EXPANSION 1 Forecasted new material expansion driven by customer applications and new har
Slide 29: Opportunity for Further Market Expansion Beyond US + EU
29 OPPORTUNITY FOR FURTHER MARKET EXPANSION BEYOND US + EU ANNUAL MANUFACTURING OUTPUT 1 JAPAN $1,000B CHINA $2,000B TAIWAN $200B INDIA $300B SOUTH KOREA $400B (1) Brookings Global Manufacturing Scorecard, United Nations Conference on Trade and Development, 2015
Slide 30: Opportunity to Expand Part Envelope Beyond Additive Manufacturing
30 OPPORTUNITY TO EXPAND PART ENVELOPE BEYOND ADDITIVE MANUFACTURING ESTIMATED PART ENVELOPE, MARKET BREAKDOWN 1 Complex, low volume part production (1) Based on public comparable 2020 revenue breakdown SHEET METAL CNC INJECTION MOLDING ADDITIVE MANUFACTURING To include CNC, Injection Molding, & She
Slide 31: Offer Software as a Service, Creating the Manufacturing Operating System
31 6% DIGITIZED 2 10M+ MANUFACTURERS GLOBALLY 1 (1) SCMO - Supply Chain Management Outsource 2019 estimate (2) CapGemini - based on companies at advanced stage of digitization Enabling manufacturer’s digital transformation provides Shapeways with an enormous market opportunity. Creating additional g
Slide 32: Shapeways Software as a Service
32 In 2020 Shapeways deployed “Powered by Shapeways”, gray - labeled software that enables partners to leverage Shapeways end - to - end manufacturing software platform for their business and make the digital shift. STRENGTH OF SHAPEWAYS PLATFORM ENABLES TRANSFORMATION OF GREATER MARKET IMPROVED ACC
Slide 33: Shapeways Accelerates Metal Additive Manufacturing Capabilities
33 SHAPEWAYS ACCELERATES METAL ADDITIVE MANUFACTURING CAPABILITIES Shapeways & Desktop Metal have entered into a MOU to establish a multi - year strategic partnership to accelerate the adoption of industrial metal additive manufacturing STRATEGIC PARTNERSHIP The Shapeways & Desktop Metal Strategic P
Slide 34: Financials and Transaction Overview
FINANCIALS AND TRANSACTION OVERVIEW 34
Slide 35: Accelerating Financial Profile
ACCELERATING FINANCIAL PROFILE 35 SHAPEWAYS FINANCIAL SUMMARY 1 ($ in Millions) KEY HIGHLIGHTS ● Shapeways 2025E revenue is <1% of addressable market ● $62B+ market in 2025E driven by accelerating adoption of digital manufacturing solutions ● Shapeways has a clear path to >12X revenue as its softwar
Slide 36: Diversified Revenue Profile, Positioned for Growth
DIVERSIFIED REVENUE PROFILE, POSITIONED FOR GROWTH 36 SHAPEWAYS REVENUE ($ in Millions) OBSERVATIONS ● Shapeways’ current revenue is comprised of the “core 1 ” customer segment, steadily increasing by year ● By 2025E the core customer segment shifts to be ~25% of total revenue ● A significant portio
Slide 37: Creating Multiple Paths for Growth
37 CREATING MULTIPLE PATHS FOR GROWTH CORE NEW ADDITIVE MANUFACTURING SOFTWARE TRADITIONAL MANUFACTURING CAPABILITIES MARKETS + +++ Broad Narrow Continued installed base performance improvements New additive hardware & material capabilities & market expansion Extended software customer capabilities,
Slide 38: Opportunity to Accelerate Expansion, $150M Revenue Opportunities Identified
OPPORTUNITY TO ACCELERATE EXPANSION, $150M REVENUE OPPORTUNITIES IDENTIFIED 38 1 2 3 100’s of Companies 50+ Opportunities 10+ Large universe of small, niche additive manufacturing companies Over 50 actionable targets that could accelerate growth strategy Over 10 opportunities that could drive over $
Slide 39: Ability to Drive Efficient Scale + Profitability
ABILITY TO DRIVE EFFICIENT SCALE + PROFITABILITY 39 Take advantage of the fragmented, diverse digital manufacturing landscape to accelerate industry, material, technology, and software expansion through inorganic growth. Creating an efficient way to scale and drive profitability by solidifying marke
Slide 40: Detailed Transaction Overview
DETAILED TRANSACTION OVERVIEW 40 KEY TRANSACTION TERMS ● $195M cash proceeds to Balance Sheet inclusive of PIPE proceeds and expected transaction expenses (1) ● $75M of PIPE commitments ● Seller earnout shares are issued, but held in escrow and subject to a vesting period and release ILLUSTRATIVE PR
Slide 41: Shapeways Is Well Positioned Against Peers
SHAPEWAYS IS WELL POSITIONED AGAINST PEERS 41 Source: Thomson Reuters, Capital IQ; as of April 27, 2021 Note: Markforged data from SPAC announcement presentation as of February 24, 2021 Note: Velo3D data from SPAC announcement presentation as of March 23, 2021 Note: Desktop Metal data includes impac
Slide 42: Transaction Provides Significant Upside to Investors
TRANSACTION PROVIDES SIGNIFICANT UPSIDE TO INVESTORS 42 Note: (1) Discounted as of March 31, 2021 using mid - year discount convention Source: Shapeways projections based on management estimates; comparable company projections based on company filings and Thom son Reuters as of April 27, 2021 Compar
Slide 43: Shapeways Is a Leader in Digital Manufacturing
43 1. Unique and compelling opportunity in large, fast growing digital manufacturing market 2. High quality, flexible on demand manufacturing with proprietary purpose built software 3. Agnostic to hardware and materials allows quick adaptability to market shifts 4. Broad use across customer types an
Slide 44: Appendix
APPENDIX 44
Slide 45: Shapeways Annual Income Statement
SHAPEWAYS ANNUAL INCOME STATEMENT 45 ($, Millions) 2019A 2020A 2021E 2022E 2023E 2024E 2025E Revenue $33.5 $31.8 $44.0 $86.0 $150.0 $250.0 $400.0 % YoY Growth (5%) 38% 95% 74% 67% 60% Gross Profit $12.2 $13.9 $21.4 $42.0 $75.9 $127.7 $209.6 Gross Margin 36% 44% 46% 49% 50% 51% 52% Adj.EBITDA 1 ($6.1
Slide 46: Reconciliation of Non-GAAP Financials
RECONCILIATION OF NON - GAAP FINANCIALS 46 (1) 2021E - 2025E Adjusted EBITDA do not reflect the additional costs we will incur as a public company such as the additional legal , accounting, compliance and other similar costs. ($, Millions) 2019A 2020A 2021E 2022E 2023E 2024E 2025E Operating Income /
Slide 47: Shapeways Forecasts Rapid Growth
SHAPEWAYS FORECASTS RAPID GROWTH 47 Source: Thomson Reuters, Capital IQ; as of April 27, 2021 Note: “NM” denotes not meaningful Note: Desktop Metal data includes impact of EnvisionTEC acquisition Note: Markforged data from SPAC announcement presentation as of February 24, 2021 Note: Velo3D data from
Slide 48: Benchmarking vs Comparables
BENCHMARKING VS COMPARABLES 48 Source: Thomson Reuters, Capital IQ; as of April 27, 2021 Note: “NM” denotes not meaningful Note: Desktop Metal data includes impact of EnvisionTEC acquisition Note: Markforged data from SPAC announcement presentation as of February 24, 2021 Note: Velo3D data from SPAC
Slide 49: Audited Income Statement Detail (2019-2020)
AUDITED INCOME STATEMENT DETAIL (2019 - 2020) 49 Note: As of December 31, 2020, the Company had federal net operating loss carryforwards of approximately $90,684, of which $7 1,9 21 will expire by 2038 if not utilized.
Slide 50: Audited Balance Sheet Detail (2019-2020)
AUDITED BALANCE SHEET DETAIL (2019 - 2020) 50 Note: As of December 31, 2020, the Company had federal net operating loss carryforwards of approximately $90,684, of which $7 1,9 21 will expire by 2038 if not utilized.
Slide 51: Audited Cash Flow Statement Detail (2019-2020)
AUDITED CASH FLOW STATEMENT DETAIL (2019 - 2020) 51 Note: As of December 31, 2020, the Company had federal net operating loss carryforwards of approximately $90,684, of which $7 1,9 21 will expire by 2038 if not utilized.
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