3D Systems Corporation · NYSE:DDD

3D Systems — Investor Presentation (February 2019)

55 slides from 3D Systems's investor presentation, February 2019

  1. Slide 1: Company Presentation

    Company Presentation February 2019 1 ©2018 3D Systems, Inc. All rights reserved.

  2. Slide 2: 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

  3. Slide 3: A Spark of Inspiration

    A Spark of Inspiration Inspiration 1983 3 ©2018 by 3D Systems, Inc. All rights reserved.

  4. Slide 4: We are making 3D production real

    With our technology, expertise and know-how, we are… MAKING 3D 4 ©2018 by 3D Systems, Inc. All rights reserved. PRODUCTION REAL

  5. Slide 5: Leadership Team

    Leadership Team Menno Ellis Erica Hausheer Chuck Hull Andy Johnson SVP, General Manager Chief Information Officer EVP, Chief Technology Officer EVP, Chief Legal Officer Plastics & Secretary Herbert Koeck Radhika Krishnan Kevin McAlea SVP, General Manager, SVP, General Manager EVP, General Manager, J

  6. Slide 6: 3D Systems—Global Footprint

    3D Systems—Global Footprint ~2,600 Employees Worldwide Headquarters Rock Hill, SC Founded USA 68 1986 Country Reach • Hardware, materials, software, on demand 13 Major services - solutions for Facilities digital manufacturing workflows • Over 1,000 patents 6 ©2018 3D Systems, Inc. All rights reserve

  7. Slide 7: Making 3D Production Real

    Making 3D Production Real Ecosystem Enables Workflow DIGITIZE DESIGN & SIMULATE MANUFACTURE INSPECT MANAGE Key Imperatives for Transformation Productivity Durability Repeatability TCO 7 ©2018 by 3D Systems, Inc. All rights reserved.

  8. Slide 8: 3D Systems Transformation Journey

    3D Systems Transformation Journey 2016 2017–2018 2019 Listen, Learn Create Foundation Scale and Build for Growth and Lead Key Success Factors … Customer-Driven Innovation Eggshell Molding Conformal Cooling Operational Excellence Investment Casting Partnerships Dental Indications (Crowns, Dentures) J

  9. Slide 9: Customer Engagement Model

    Customer Engagement Model Product Lifecycle Design Prototype Pilot Runs Production Runs Hardware Pre-Sales Uptime Based Customer Propose Materials and Software Application On Predictive Use Cases Solution Technology Engineering Support 9 ©2018 3D Systems, Inc. All rights reserved.

  10. Slide 10: Vertical Approach and Domain Expertise

    Vertical Approach and Domain Expertise Core Assets form Operational Platform Healthcare Dental Aerospace Automotive Durable goods 10 ©2018 by 3D Systems, Inc. All rights reserved.

  11. Slide 11: Healthcare

    Healthcare Unmatched Expertise and Capabilities Surgical Simulation Surgical Planning Design & Manufacturing Bioprinting 11 ©2018 by 3D Systems, Inc. All rights reserved.

  12. Slide 12: Dental

    Dental Redefining Digital Dentistry Fully Integrated Solution Broadest Digital Dentistry Portfolio in the Industry Printers Workflow Materials Training FabPro™ 1000 ProX® DMP ProJet® MJP Service 200 Dental 2500 Plus ProX® 800 NextDent™ 5100 30 materials for 12 indications Clinical Validation and Reg

  13. Slide 13: Aerospace

    Aerospace Cert./Qualification Fuel Economy Airworthy Parts Supply Chain 13 ©2018 3D Systems, Inc. | All rights reserved.

  14. Slide 14: Automotive

    Automotive Weight Efficiency Improved Product Design Supply Chain Formula 1 Vents CAD to Car in 8 weeks Rapid Availability of Parts 14 ©2018 by 3D Systems, Inc. All rights reserved.

  15. Slide 15: Durable and Consumer Goods

    Durable and Consumer Goods Innovation in Product Design and Production Prototyping Design/Production Reduce Assembly Times Mass-Customization Reduce Inventory and Increase Supply Chain Velocity 15 ©2018 by 3D Systems, Inc. All rights reserved.

  16. Slide 16: Broadest Additive Manufacturing Solution Portfolio

    Broadest Additive Manufacturing Solution Portfolio 16 ©2018 3D Systems, Inc. | All rights reserved.

  17. Slide 17: Powerful Plastics Portfolio

    Powerful Plastics Portfolio ProJet® MJP 2500 Series High quality, speed and ease-of-use Figure 4™ Industrial 3D Printing New PROJET® CJP 260Plus Most affordable color 3D solution ProX 800 High 3D printing throughput, FabPro™ 1000 highest accuracy and detail ProX SLS 6100 Entry-level industrial Produ

  18. Slide 18: It Starts With Materials

    It Starts With Materials Plastics, Nylons, Metals, Waxes, Composites, Ceramics, Etc. • 500+ years of combined experience • 100+ plastics materials – Wide range of plastics – Wide range of applications and markets • Customer-driven innovation – Partner with 3rd party formulation companies and researc

  19. Slide 19: Figure 4

    ™ Figure 4 Scalable Production Platform st 1 Scalable, production platform st Six sigma repeatability — an industry first! 1 (Cpk > 2) Inline, integrated and fully automated post processing st Up to 20% lower part cost (at a volume of 500 parts) 1 st Up to 15x faster throughput (print speeds up than

  20. Slide 20: Figure 4 Products

    ™ Figure 4 Products Standalone Solutions Factory Solutions INDEPENDENT PRINTERS | AFFORDABLE INTEGRATED MODULES | CONNECTED EASE OF USE | ADAPTABLE FULL AUTOMATION | PROCESS CONTROL First purchase Subsequent additions - up to 24 per control box ™ NextDent 5100 Figure 4 Standalone Figure 4 Modular Fi

  21. Slide 21: Industrial Entry-Level Solution — FabPro 1000

    Industrial Entry-Level Solution — FabPro 1000 ™ New Levels of Affordability, Ease-of-Use and Reliability • Entry level industrial DLP solution • Best-in-class speeds, quality & ease- of-use • Rapid concept iteration, jigs/fixtures • Jewelry, dentistry & urethane cast apps • Ideal for new-to-3D print

  22. Slide 22: ProJet MJP 2500 Series

    ® ProJet MJP 2500 Series Growth Opportunities with a Proven, High Performance, Versatile Platform Functional Prototyping Industrial Casting Jewelry Casting Dental Models 22 ©2018 3D Systems | Proprietary and Confidential | All rights reserved

  23. Slide 23: Production-Ready — ProX SLS 6100

    Production-Ready — ProX SLS 6100 ® Functional Nylon Parts — Taking You From RP to Production • Highly price competitive • 20% lower TCO than rivals • High-quality parts • Superior mechanical properties • Service bureaus, Aero/Auto, Durable Goods and Healthcare 23 ©2018 3D Systems | Proprietary and C

  24. Slide 24: Precision Metal Printing Solutions

    Precision Metal Printing Solutions Flexible Solutions Factory Solutions SCALABLE | HIGH LEVEL OF AUTOMATION INDEPENDENT PRINTERS | R&D AND PART PRODUCTION FULLY INTEGRATED MODULES DMP Flex 100 & DMP 200 DMP Flex 350 DMP Factory 350 & DMP Factory 500 Solutions EDUCATION | INDUSTRIAL | DENTAL HEALTHCA

  25. Slide 25: DMP Factory 500 Solution with Partnership

    DMP Factory 500 Solution with Partnership 1st Seamless big parts up to 500mm diameter OEMs and large part contractors Workflow oriented modularity — for configurable are looking for: factory set-up Uniform Repeatability, Part Quality 1st With 500x500x500 mm largest diameter in the industry Affordabl

  26. Slide 26: Precise, High-Performance Metals

    Precise, High-Performance Metals • Strategic relationships powder suppliers — provide powders made to specification – Robust parameter sets for these powders and test via ASTM, SAE, etc. requirements for the relevant alloys – When customers use our powders and parameter sets, we guarantee output qua

  27. Slide 27: Production Workflow Software Portfolio

    Production Workflow Software Portfolio 3D Digitization Platform Manufacturing Software Platform Productivity • Ease of Use • ROI 27 ©2018 3D Systems, Inc. | All rights reserved.

  28. Slide 28: 3D Sprint

    3D Sprint • 3D print better parts without needing high-priced software – Increase efficiency with optimized management of data – Be more productive and reduce printer down time – Single, easy user interface streamlines time-to-print 28 ©2018 3D Systems | Proprietary and Confidential | All rights res

  29. Slide 29: 3DXpert

    ™ 3DXpert The Only All-In-One Software Solution for Metal Additive Manufacturing 3D CAD Software Any Printer Native CAD Data Send to Printer Design All-In-One DfAM Print • Metal printers + 3DXpert + LaserForm powders ® • The only vendor to offer a real complete workflow for design for AM • Dedicated

  30. Slide 30: Geomagic Design X 2019

    ® Geomagic Design X 2019 The Fastest Path from Scan to CAD • The only reverse engineering solution to combine feature-based CAD with 3D scanning! • Design in days, not weeks • Improved speed, quality and user experience in 2019 30 ©2018 3D Systems | Proprietary and Confidential | All rights reserved

  31. Slide 31: Global Customer Services

    Global Customer Services Guiding Customers along the Additive Manufacturing Journey Help Customers Evolve Additive Manufacturing Primer and Advanced Consultation Specific 3D printing application consulting Optimize Total Cost of Operation Optimize parts design 3D Connect Services Assess and streamli

  32. Slide 32: Application Engineering Consulting

    Application Engineering Consulting Understand Tool Design Implement Scale Benchmarking customer needs Selection Workflow Workflow Workflow 32 ©2018 by 3D Systems, Inc. All rights reserved.

  33. Slide 33: Support Services

    Support Services 33 ©2018 by 3D Systems, Inc. All rights reserved.

  34. Slide 34: Customer Innovation Centers

    Customer Innovation Centers Services Training Benchmarking Application Support Part Manufacturing Expert in-house 4-step standardized Technical Batch manufacturing customer training and trackable application support for customers and process for high and development prospects quality benchmarking IS

  35. Slide 35: Our Mission

    Customer Innovation Centers Our Mission Accelerate the development of advanced applications by providing the expertise, know-how and state-of-the-art technology necessary to develop, validate and commercialize products. 35 ©2018 3D Systems, Inc. | All rights reserved.

  36. Slide 36: On Demand Manufacturing

    On Demand Manufacturing 36 ©2018 by 3D Systems, Inc. All rights reserved.

  37. Slide 37: On Demand Subtractive Manufacturing

    On Demand Subtractive Manufacturing • Emerging market of Hybrid Manufacturing • Uniquely position to offer both solutions • Compliments additive solution. – Post print machining – Printed jigs and fixtures – CAM for hybrid machines • Traditional Manufacturing – Large part of global manufacturing mar

  38. Slide 38: Cloud-Based Services

    Cloud-Based Services Fleet Monitoring Remote Diagnostic Tools • Enables customers to see the status • Creates the ability for service to see of their printer in real time what the problem is prior to going on • Enables email and text alerts with their site build or printer • Automatically creates a

  39. Slide 39: Total Market Opportunity

    Total Market Opportunity 20 • CEOs are under increased pressure Estimated to grow to to drive growth • Accelerated product development cycles $12.1B Upper Market Volume (Billions of USD) • Keep costs down boundary 15 • Reduce turnaround times by 2020 • Re-think how goods are manufactured • Manufactu

  40. Slide 40: Making 3D Production Real

    With our technology, expertise and know-how, we are MAKING 3D PRODUCTION REAL 40 ©2018 by 3D Systems, Inc. All rights reserved.

  41. Slide 41: Recent Financials

    Recent Financials 41 ©2018 3D Systems, Inc. All rights reserved.

  42. Slide 42: 2018 Revenue Drivers

    2018 Revenue Drivers During 2018, we continued to deliver on growth drivers, and total revenue increased 6% in 2018 compared to 2017 Printer revenue increased 25% on a 76% increase in printer unit sales Software revenue growth of 5% Healthcare solutions growth of 19% On demand services growth of 2%

  43. Slide 43: GAAP Operating Results

    GAAP Operating Results Fourth Quarter Full Year Y/Y Change Y/Y Change (in millions, except per share amounts) 2018 2017 Better/(Worse) 2018 2017 Better/(Worse) Revenue $ 180.7 $ 177.3 2% $ 687.7 $ 646.1 6% Gross Profit 82.6 85.5 (3)% 324.4 304.8 6% Gross Profit Margin 45.7% 48.2% (250) bps 47.2% 47.

  44. Slide 44: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Fourth Quarter Full Year Y/Y Change Y/Y Change (in millions, except per share amounts) 2018 2017 Better/(Worse) 2018 2017 Better/(Worse) Non-GAAP R&D Expense $ 23.5 $ 23.0 (2)% $ 94.8 $ 94.6 —% Non-GAAP SG&A Expense 52.2 54.6 4% 213.1 202.0 (5)% Non-GAAP Operating Expense

  45. Slide 45: Gross Profit and Margin

    Gross Profit and Margin • For the full year 2018, GAAP GPM was 47.2% and non-GAAP GPM was 47.4% • Supply chain efficiencies and cost improvements were offset by the impact of sales mix, costs to launch and ramp new products, and lower on demand manufacturing gross profit margins – GAAP and non-GAAP

  46. Slide 46: Operating Expenses

    Operating Expenses • Although we expect some fluctuations quarter to quarter, we are beginning to see the results of actions we are taking to reduce cost structure • Shifting from R&D to marketing and sales support of the new products rolled out in 2018, and expect R&D in 2019 to be focused on mater

  47. Slide 47: Balance Sheet and Cash

    Balance Sheet and Cash • Generated $7.7 million of cash from operations during Q4 2018, and generated $4.8 million of cash from operations during the full year 2018 • Ended 2018 with $110.0 million of cash on hand, including $25 million of proceeds from our revolving credit facility • Our existing $

  48. Slide 48: Summary and Outlook

    Summary and Outlook • Made significant progress in our turnaround and transformation work, and have a strong operational foundation in place with improved processes across the company, and with the new products launched in 2018, an unmatched portfolio • We expect 2019 revenue growth to continue to b

  49. Slide 49: Financial Appendix & Non-GAAP Reconciliations

    Financial Appendix & Non-GAAP Reconciliations 49 ©2019 3D Systems, Inc. | All rights reserved.

  50. Slide 50: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Fourth Quarter and Full Year Non-GAAP Earnings (Loss) per Share Quarter Ended December 31, Full Year (in millions, except per share amounts) 2018 2017 2018 2017 GAAP Net loss attributable to 3D Systems Corporation $ (4.1) $ (10.1) $ (45.5) $ (66.2) Adjustments: Amortization,

  51. Slide 51: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 2018 Non-GAAP Gross Profit & Margin 2018 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP Gross Profit $ 77.9 $ 86.2 $ 77.8 $ 82.6 $ 324.4 GAAP Gross Profit Margin 46.9% 48.8% 47.3% 45.7% 47.2% Adjustments: Amortization, stock-

  52. Slide 52: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 2018 Non-GAAP Operating Expenses 2018 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 25.9 $ 22.7 $ 23.2 $ 23.5 $ 95.3 GAAP SG&A Expenses 69.5 71.2 65.6 66.1 272.3 GAAP Operating Expenses $ 95.3 $ 93.9 $ 88.8 $

  53. Slide 53: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 2017 Non-GAAP Gross Profit & Margin 2017 Quarter Ended Year to Date (in millions) March 31 June 30 September 30 December 31 December 31 GAAP Gross Profit $ 80.2 $ 80.7 $ 58.5 $ 85.5 $ 304.8 GAAP Gross Profit Margin 51.3% 50.6% 38.3% 48.2% 47.2% Adjustments: Amortization, stoc

  54. Slide 54: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 2017 Non-GAAP Operating Expenses 2017 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 22.9 $ 24.4 $ 24.4 $ 23.0 $ 94.6 GAAP SG&A Expenses $ 66.4 $ 63.1 $ 66.5 $ 68.2 $ 264.2 GAAP Operating Expenses $ 89.3 $ 87.5

  55. Slide 55: ©2019 3D Systems, Inc. All rights reserved.

    55 ©2019 3D Systems, Inc. | All rights reserved.

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