Slide 1: Second Quarter and Six Months 2016 Conference Call & Webcast
4) s0systems — Second Quarter and Six Months 2016 Conference Call & Webcast August 3, 2016 MANUFACTURINGTHE FUTURE” WWW.3DSYSTEMS.COM | NYSE: DDD
Slide 2: Welcome and Participants
Welcome and Participants Vyomesh Joshi * President & Chief Executive Officer John McMullen * Executive Vice President; Chief Financial Officer Andy Johnson *s Executive Vice President; Chief Legal Officer Stacey Witten * Vice President, Investor Relations To participate via phone, please dial: * 1-8
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements 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, o
Slide 4: Vyomesh Joshi
Vyomesh Joshi President & Chief Executive Officer MANUFACTURING7THE FUTURE”
Slide 5: Strategy Update
Strategy Update Key Verticals Aerospace Consumer & Defe Auto Healthcare Digital Manufacturing 3D Systems’ Customer Workflow Value Proposition Go-to-Market 30 Printe 3c
Slide 6: Organizational Structure
Organizational Structure la \ Design and implement an organizational structure that aligns to our strategy X / C > Establish simplicity and accountability within the organization with a focus on operational excellence S J a \ Develop appropriate cost structure, creating capacity to invest in innovat
Slide 7: John McMullen
John McMullen Executive Vice President & Chief Financial Officer MANUFACTURING7THE FUTURE”
Slide 8: Operating Results - GAAP
Operating Results - GAAP Second Quarter Six Months YW increase YN increase Sans bn anor ba sia 2016 2015 (Decrease) 2016 2015 (Decrease) Revenue $158.1 $1708 (7%) $3107 $3312 (6%) Gross Profit $an4 $816 0%) $1579 $160.6 (2%) Gross Profit Margin 50.9% 47.9% 300 bps 50.8% 48.5% 230 ps lOperating Expen
Slide 9: Reconciliation of Non-GAAP to GAAP
Reconciliation of Non-GAAP to GAAP Second Quarter Six Months YW increase Y/Y increase $in mins except comings per shore 2016 2015, (Decrease) 2016 2015 (Decrease) GAAP net income (loss) ($ 4.6) ($ 13.7) 66% ($ 22.4) {$ 26.9) 17% Cost of sales adjustments: Amortization of intangibles Sot Sot 2 $02 $0
Slide 10: Revenue Drivers
Revenue Drivers Sinmiions $200 $1834 : ido $1708 Compared to Q2 2015: $160.7 ata gisze $1582 a io S " Healthcare solutions increased 11% $140 $120 = Materials grew 12% ™ Software increased 8% 80 $60 = On demand manufacturing services sia decreased 20% $20 $ ™ Printers were 30% lower ° ° 2 2 © ¢ ” s
Slide 11: Gross Profit & Margin
Gross Profit & Margin = $81.6 $80.4 Eoe: Compared to Q2 2015: 79.0 ; - soe Sis = Benefited from ad ~ growth in software, $60 ie materials and $50 healthcare $40 30% solutions as well as $30 from shifting away $20 cial from consumer $10 tos products so F = Pressured by higher (s10) o% i A qi 2015, 22
Slide 12: Operating Expenses
Operating Expenses $120) sini = GAAP operating expenses $105.4 $105.7 _ 70% decreased $21.3M from Q2 60% 2015 3% a = Non-GAAP operating expenses 40% decreased $10.6M from Q2 30% 2015 ail = We are balancing cost savings aad with necessary investments in o% quality, infrastructure, and ee lfier keyare
Slide 13: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow cash Operating Working Capital Components 2 sus ow 7 wa 50 sas ae | | | | I | | | “ aus aaaas aS ume Shao snvestry MAR WAP * Enhancing processes for better working capital management * Driving cash flow growth
Slide 14: Approach
Approach ‘i ~ Partner with VJ and the leadership team to drive profitable growth and long term shareholder value X y, i > Optimize cost structure — both cost of sales and operating expense — building capacity to invest into the business \ ( a) Enable effective capital management and improve the bala
Slide 15: Vyomesh Joshi
Vyomesh Joshi President & Chief Executive Officer MANUFACTURING7THE FUTURE”
Slide 16: Outlook
Outlook r Our 3D printing ecosystem enables our customers to enhance their workflows and achieve better results, faster. <a r As 3D printing expands into light production, we believe customers are looking for productive, reliable end-to-end manufacturing solutions. r With the right team, the right s
Slide 17: Q&A Session
Q&A Session In the USA: 1-877-407-8291 Outside the USA: 1-201-689-8345 MANUFACTURING7THE FUTURE”
Slide 18: Launch Event: Strategy and Solutions to Accelerate Digital Manufacturing
Launch Event: Strategy and Solutions to Accelerate Digital Manufacturing Monday, September 12, 2016 Live webcast available at www.3dsystems.com/investor Thank You MANUFACTURING7THE FUTURE”