Slide 1: Q2-2013 Financial Results Conference Call
August 8 2013 Q2-2013 Financial Results Conference Call YY
Slide 2: Q2-2013 Conference and webcast details
Q2-2013 Conference and webcast details Stratasys Replay Dial-in Information
Slide 3: Forward looking statement
Stratasys Forward looking statement oT Stratasys ‘Statements in ths presentation about Stratasys’ belt, intentions and expectations, including statements regarding the ‘management of Stratasys, Ino. and Objet Lid. ae combined company, the benafts ofthe proposed combination ofthe ‘Companies, and he f
Slide 4: Opening Remarks
4 ‘August 8° 2013 S “’ Stratasys ” Ta" fonase _ Opening Remarks David Reis, CEO
Slide 5: Conference Call
113 Conference Call Stratasys
Slide 6: Discussion of Second Quarter Financials
6 August 8° 2013 Discussion of Second Quarter Financials Erez Simha, CFO & COO (IL) <’ Stratasys SE
Slide 7: Financial Results: Non-GAAP Quarter Highlights
Financial Results. Stratasys Ltd. Non-GAAP (Sin millions unless noted otherwise) peng ‘Operating Pro frag El Quarter Highlights: — Revenue growth of 20% YOY — Non-GAAP GM expansion to 59.2% from 57.5% — Non-GAAP net income growth of 32% YOY — Non-GAAP EPS of $0.45 versus $0.35
Slide 8: Quarter Highlights: Revenue
Quarter Highlights +19% ghia! — System revenue +16% YOY Financial ~ Consumable revenue +23% YOY Results — Customer Service revenue +28% YOY Revenue 20% — RedEye revenue +34% YOY =e =e — Drivers: Production Series, Idea Series Stratasys Ltd. 7" 7 &DDM Product Revenue mSenvce Revenue Non-GAAP Total Re
Slide 9: System Unit Sales
eee — Production Series Financial — Idea Series Results ‘System Unit ; Sales 22012 22.2013 Bre Stratasys Ltd. Total Units — Quarterly Trend 32.245 20,004 zeae = | an 22 a2 os anna 243 mmsystom Unit Sales _ ~l-Cumuative System Unit Sales —Linear (Cumulative System Urit Sales) Estratagys sa uae welt S
Slide 10: Gross Profit and Gross Margin
Financial Results Gross Profit Stratasys Ltd. Non-GAAP Quarter Highlights: — High-margin system and consumable sales — Better overhead coverage Prot Grose Prot mag From magn Gross Margin - Quarterly Trend sar or5% sa0% o78% 0% 2% an a2 312 as'12 a3 mm Proctuct Gross Margin ‘Service Gross Margin <@sT
Slide 11: Operating Expenses and Operating Profit
Quarter Highlights — Strong system, Financial consumables and service Results sales — Investing for future growth Stratasys Ltd. Non-GAAP 2.0% om om on m » on ee | m= Eq oon) Es smnruDcnpreeshotstes) mmSGA pares (cles) money Magn 33 po tema
Slide 12: Q2 2013 System Revenue Growth Drivers
2 az2013 (vor) Financial Units —_Dolars Results ‘System Revenue 10% 18% Growth Drivers ase, Stratasys Ltd. ee - HK Non-GAAP
Slide 13: Revenue Geographic Mix
Financial Results Geographic Sales @22012 Geographic Sales G2 2013 Ober Ober Revenue 26 Geographic Mix Stratasys Ltd. North Non-GAAP Perot poor to20 re potoma
Slide 14: Balance Sheet Summary
“ senate, Highlights — $149.7 Min cash & Financial investments Results. Balance Sheet summary Stratasys Ltd. (Sin millions unless noted otherwise)
Slide 15: Financial Results and Projections
5 Financial Results & Projections Stratasys Ltd. Non-GAAP (Sin millions unless noted otherwise) $455- $480 rots pert 2013 prota Fit Fvi2 mmReverve (ilons) mers FY13 (guidance)
Slide 16: Guidance Overview
16 At 8m 2013 . . vost Guidance Overview Shane Glenn VP Investor Relations
Slide 17: Fiscal 2013 Financial Guidance
Financial Guidance Revenue and Earnings Guidance Stratasys Ltd. Non-GAAP Stratasys Fiscal 2013 Financial Guidance Revenue (M) $455 - 480 Non-GAAP EPS. $1.75 - $1.90 S175-$1.00
Slide 18: Long-Term Target Operating Model
Financial Guidance Long-Term Target Operating Model Stratasys Ltd. Non-GAAP Stratasys Revenue growth +20% Effective tax rate" 15% — 20% Operating margin 20% — 25% of sales Net income margin’ 16% - 21% of sales
Slide 19: August 2013 Strategic Overview
on . . Auvaust 98 2015 Strategic Overview David Reis, CEO *’ Stratasys
Slide 20: Merger Update
2 Stratasys Merger Update oT Stratasys — Completed cross- training for product sales & support — Completed training and implementation of Salesforce.com — Began the ramp of benchmarking capabilities to support our sales efforts.
Slide 21: Complementary Applications
a Stratasys Complementary Applications <’Stratasys: Q@BJET
Slide 22: Total Number of Opportunities in Salesforce.com
2 Stratasys Total Number of OP rent (O13) in SalesForce.com Channel 7 : — = portunities | See — ; 86 | Ly “8 cow tae ae Wor an “opportunity prospect that has the intention ang budget te buy 230 printer within ane yea.
Slide 23: Concept to Production Manufacturing Opportunity
Concept Production Professional Market Opportunit PP y Manufacturing > Applications ) Value in _Speiserene manufacturing ~ — Usable parts — Reduce manufacturing cost — Improve manufacturing flexibility — Enable mass customization
Slide 24: Merging Two Global 3D Printing Industry Leaders
Merging Two Global 3D Printing Industry Leaders Stratasys and MakerBot Stratasys fa vue ae | Merger =! Stratasys o®-" Driving Faster Adoption of Desktop 3D Printing for Multiple Applications and Industries
Slide 25: Transaction provides resources to meet strategic vision
Transaction provides Stratasys and MakerBot with the resources to meet their strategic vision Units Sales Per Year — Total Ind Stratasys oo00 ustry MakerBot 70000 Merger {60000 > 35,000 to 40,000 units sold in 2012 50000. * Unit sales expected to double in 2013 40000 - 30000 ‘20000 10000 - 0 Opportu
Slide 26: MakerBot Merger Rationale
Stratasys MakerBot Merger Rationale 2! Stratasys
Slide 27: Stratasys
a Stratasys
Slide 28: Q&A
2 Stratasys QA 2! Stratasys We are passionate believers in the value and power of 3D printing, and in the change it can bring to the world. And we're here to lead it.
Slide 29: Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results
Reconciliation of Pro Forma GAAP to Pro Forma Non- GAAP Results of Operations Stratasys Ltd. Combined (Sin thousands except per share data) ro0e pont Operating expences ‘esearch ard aevenpent net ‘Seang. generaana somite Operating mcome (ose) (er ncame (expense) Imcome (se) betore income tax otincom
Slide 30: Reconciliation of Non-GAAP Adjustments
20 Reconeiliation of Non-GAAP Adjustments Stratasys Ltd. Combined Stratasys —2