Slide 1: Investor Presentation
Investor Presentation Copyright 3D Systems Corporation All Rights Reserved Nasdaq:TDSC - www.3dsystems.com
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 may involve known and unknown risks, u
Slide 3: Key Themes For Today's Discussion
Key Themes For Today’s Discussion
Slide 4: The Additive Manufacturing Pioneer and Leader
From Digital To Part Computer Aided Design (CAD) or Scan Plastic or Metal Part The Additive Manufacturing Pioneer and Leader
Slide 5: Leadership Through Technology
Leadership Through Technology
Slide 6: /\ aa oP GALA TOYOTA @)
/\ aa oP GALA TOYOTA @) % Pratt & Whitney, . = 2 Bo QQ SaEING @ Imaging Technology ‘AIRBUS = Application Knowhow And Process | wipex invisalign’ SIEMENS My Moreno’ CATERPILLAR cy, Create) Confidence Delivers
Slide 7: Global Coverage Local Presence
North America - Valencia, CA - Lawrenceburg, TN - Goodland, IN - Seattle, WA - Syracuse, NY Europe Asia Global Coverage Local Presence
Slide 8: Experienced Management Team
Experienced Management Team q Bob Grace Vice President & General Counsel q Damon Gregoire Vice President & CFO q Chuck Hull Executive Vice President & CTO q Rajeev Kulkarni Vice President Engineering q Cathy Lewis Vice President Global Marketing q Michele Marchesan Vice President 3-D Printing Soluti
Slide 9: Technology: Growth and Value Creation
Technology Growth and Value Creation
Slide 10: Improving Results
Improving Results Copyright 3D Systems Corporation All Rights Reserved Nasdaq:TDSC - www.3dsystems.com
Slide 11: First Quarter 2010 Operating Results
EPS included the negative impact of a 1 cent per share planned V-Flash ® ramp up and a 4 cents per share from litigation costs. First Quarter 2010 Operating Results ($ Millions except per share amounts) NM: Not Meaningful EPS included the negative impact of a 1 cent per share planned V-Flash ® ramp
Slide 12: Systems and Services Revenue
q Systems revenue in Q1 2010 consisted of: q 25% large-frame systems (9% in Q1 2009) q 21% mid-frame systems (37% in Q1 2009) q 54% 3-D printers (54% in Q1 2009) q Services revenue includes: q Maintenance and warranty contract revenue q Sales of system upgrades q Installation of and training on mach
Slide 13: Healthcare Solutions First Quarter Revenue
Recurring materials and services revenue amounted to 68% of total Healthcare Solutions sales. q Healthcare Solutions represented 12% of total revenue. q Recurring revenue from materials and services amounted to 68% of total Healthcare Solutions revenue. q Healthcare Solutions revenue consists of sal
Slide 14: Net Income and Cash Position
q Net income of $2.0 million included $1.8 million of non-cash expenses. q Cash position improved from the previous quarter to $26.6 million, even after funding our acquisition of Moeller Design. q Inventory increased due in part to the timing of sales and revenue recognition at quarter-end. ($ Mill
Slide 15: First Quarter Revenue Composition by Category and Region
Recurring revenue represents nearly three-quarters of total revenue. 28% 43% 29% 20% 44% 36% 45% 41% 14% 45% 42% 13% First Quarter Revenue Composition by Category and Region Systems & Other Materials Services North America Europe Asia Pacific $31.6 $31.6 $24.0 $24.0 ($ Millions)
Slide 16: Systems Gross Profit Margin
Systems gross profit margin benefited from: q The continued favorable impact of operational and cost improvements and q Better overhead absorption over a larger revenue base.
Slide 17: Gross Profit Margin Composition
Gross Profit Margin Composition
Slide 18: First Quarter Working Capital Update
First Quarter Working Capital Update Days Inventory On Hand Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Slide 19: First Quarter Working Capital Update
First Quarter Working Capital Update Balance at 12/31/09 $ 18,378 Q1 2010 Increase 1,900 Balance at 3/31/10 $ 20,278 Balance at 12/31/09 § 24,913 Q1 2010 Increase 1,723 Balance at 3/31/10 $ 26,636 Create) Confidence
Slide 20: Operating Costs and Leverage
SG&A Costs § SG&A costs are stable § Internal systems and processes permit increase revenue without additional administrative costs § Expect SG&A increases to primarily mirror sales and marketing activities R&D Costs § Focused spending yielded higher productivity and better ROI § Introduced 18 new p
Slide 21: Bottom Line
Revenue and margin expansion, coupled with operating costs containment and optimization resulted in improved bottom line and stronger positively Balance Sheet Bottom Line
Slide 22: Strategy And Growth
Strategy And Growth Copyright 3D Systems Corporation All Rights Reserved Nasdaq:TDSC - www.3dsystems.com
Slide 23: 3D Aerospace Marketplace Opportunities
3D Aerospace Marketplace Opportunities $400 Million $600 Million $ 1 Billion $500 Million $500 Million Source: 3D Systems
Slide 24: Strategic Initiatives
Strategic Initiatives
Slide 25: Customer Driven Execution
The Source For All Your Design-To- Manufacturing Needs ● Launched 3Dproparts™ October 1, 2009, added 4 acquisitions. ● Target 3Dproparts™ for min 10% of total revenue by December 2010 through organic growth and strategic acquisitions. Complete 3-D Printing Solutions For Professionals ● Developed Per
Slide 26: Growth Drivers
q We entered the second quarter of 2010 with a strong sales funnel. q We expect sales of our expanding lineup of 3-D printers to continue to grow, helped by our V-Flash ® and new ProJet™ printers. q We are pleased with the progress we are making on 3Dproparts™ and expect to continue to grow this act
Slide 27: Revenue Outlook
We expect to benefit competitively from our new products and expanded services portfolio and stronger financial position. q We are optimistic about our ability to continue to make progress even though economic conditions remain uncertain. q We expect continued revenue growth during 2010 given our st
Slide 28: Gross Profit and Operating Expenses Outlook
We believe that we can further enhance our operational effectiveness and optimize our operating costs. q We expect our gross profit margin to remain stable despite: q Potential adverse systems mix in favor of lower margin printers and integration period of acquired businesses and q Continued negativ
Slide 29: Bottom Line
q Our sales funnel remains robust. q Our Parts, Printers and Production Systems are expected to generate increased OEM demand. q Our business model is built around significant, recurring revenue components that generate improved contribution margins. We remain committed to our long-term growth objec
Slide 30: Thank You
Thank You 3D Systems Corporation All Rights Reserved Nasdaq:TDSC - www.3dsystems.com
Slide 31: Supplementary Information
Supplementary Information 3D Systems Corporation All Rights Reserved Nasdaq:TDSC - www.3dsystems.com
Slide 32: Technology: Growth and Value Creation
Technology Growth and Value Creation
Slide 33: 3Dproparts Promise
3Dproparts™ Promise
Slide 34: Source with Confidence
Source with Confidence
Slide 35: 3Dproparts
3Dproparts™ Online Services Wemey Services 3Dproparts™ Aerospace & Defense 3Dproparts™ @} Dental & Medical Create@{{[]> Confidence
Slide 36: Selective Laser Sintering (SLS)
) Selective Laser Sintering (SLS®) Ne Selective Laser Melting (SLM) Jet Printing (MJM) QuickCast™ u- Cast | Create) Confidence
Slide 37: Technology: Growth and Value Creation
Technology Growth and Value Creation
Slide 38: $1 Billion Marketplace Opportunity
The average growth of 3-D printer unit sales from 1996 through 2008 was approximately 40%. The market is well-positioned for further growth because of the wide appeal of 3-D printers priced at less than $15,000. Gartner believes this continuing demand bodes well for the longer-term prospects of the
Slide 39: Comprehensive 3-D Printers Continuum
Comprehensive 3-D Printers Continuum
Slide 40: Printer Marketplace Positioning
Personal Printers • Desktop • Office • Small format • Simple, easy to use Professional Printers • Groupware • Office, model shop • Small and mid format • Material properties Production Printers • Productionware • Manufacturing floor • Small to large format • Extreme productivity Printer Marketplace
Slide 41: Desktop Printer Category
Desktop Printer Category
Slide 42: V-Flash Desktop Printer
Easy to own, and operate $9,900 CAD compatible V-Flash ® Desktop Printer
Slide 43: to-design” detail
to-design” detail Ne al Smooth surfaces & Gh 7 SS —w Excellent material ; properties 4 High resolution, “true- Create Confidence
Slide 44: Small-Format Professional Printer Category
Small-Format Professional Printer Category
Slide 45: Professional and Production Printers
Professional and Production Printers
Slide 46: Large-Format Production Printer Category
Large-Format Production Printer Category
Slide 47: Upgrade Your Print Output
Upgrade Your Print Output Print with Confidence
Slide 48: Create a Better World with Confidence
Create a Better World with Confidence
Slide 49: ~$1 Billion Opportunity
Rapid Manufacturing represented ~$100 million of revenue for all Additive Manufacturing suppliers Dental, medical and Aerospace Opportunities hold greatest potential Difficult to make parts Manufacturing applications Distributed design and manufacturing Source: 3D Systems ~$1 Billion Opportunity
Slide 50: Comprehensive Production Systems Continuum
Comprehensive Production Systems Continuum
Slide 51: Exceptional sidewall quality.
Exceptional sidewall quality. Unprecedented surface smoothness. Remarkable feature resolution. Best-in-class edge definition. Create Confidence
Slide 52: Rapid Manufacturing Partnerships With Industry Leaders
Numerous Rapid Manufacturing Systems In Operation Worldwide Rapid Manufacturing Partnerships With Industry Leaders And Shapers Produce with Confidence
Slide 53: Dental Opportunities
CAD/CAM US Market valued at $800M for 2009 CAD/CAM CAGR of 15% until 2015 Dental Opportunities
Slide 54: Dental Opportunities
Dental Opportunities
Slide 55: Aerospace and Defense Solutions
Aerospace and Defense Solutions
Slide 56: Technology: Growth and Value Creation
Technology Growth and Value Creation
Slide 57: Thank You
Thank You Copyright 3D Systems Corporation All Rights Reserved Nasdaq:TDSC - www.3dsystems.com