3d Systems Corporation · NYSE:DDD
3d Systems — Investor Day (January 2006)
73 slides from 3d Systems's investor day presentation, Jan 11, 2006
Slide 1: 3D Systems Corporation Investor Day
| 3D Systems Corporation V VU s > New York,<N January 11, 2006 dy NASDAQ:TDSC sosysrems Www.3dsystems.com
Slide 2: Forward-Looking Statements
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, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be
Slide 3: 3D Systems Overview
3D Systems Overview =$125 MM sales ‘04 *HQ Valencia, CA =355 employees =, Manufacturing "382 patents Experience =Global coverage «Local presence x 2005 revenue... 3Q ‘05: $32.3 MM...9 Months ‘05: $95.5 MM Page 2a
Slide 4: 3D Systems Overview
3D Systems Overview =$125 MM sales '04 *HQ Valencia, CA Leader: = »355 employees Comprehensive 382 patents 3-D Printing, Prototyping and Manufacturing =Global coverage i Solutions «Local presence x 2005 revenue... 3Q ‘05: $32.3 MM...9 Months ‘05: $95.5 MM N Page 3b
Slide 5: 3D Systems Overview
3D Systems Overview =$125 MM sales ‘04 Innovator: *HQ Valencia, CA =355 employees "382 patents =Global coverage Experience «Local presence x 2005 revenue... 3Q ‘05: $32.3 MM...9 Months ‘05: $95.5 MM N Page 3e
Slide 6: 3D Systems Overview
3D Systems Overview =$125 MM sales ‘04 ; Partner: *HQ Valencia, CA =355 employees Focus on.and understand our "382 patents customers’.needs and wants Experience =Global coverage «Local presence x 2005 revenue... 3Q ‘05: $32.3 MM...9 Months ‘05: $95.5 MM Page ad
Slide 7: 3D Systems Overview
=355 employees Complete portfolio "382 patents of affordable office to factory solutions 3D Systems Overview =$125 MM sales ‘04 ; ’ HQ Rock Hill, SC 3 g QV o § =Global coverage «Local presence x 2005 revenue... 3Q ‘05: $32.3 MM...9 Months ‘05: $95.5 MM NY Page 3e
Slide 8: Cutting Edge Technology That Transforms The Way Companies Design
Cutting Edge Technology That Transforms The Way Companies Design, Develop and Manufacture New Products é 3 v § = 5 g iS & §
Slide 9: From Digital To Physical
From Digital ff To Physical Computer design (CAD)
Slide 10: Comprehensive Portfolio
Comprehensive Portfolio Laser Sintering DuraForm® plastics ‘& metals: 3-D Printing Stereolithography ‘Accura® plastics ‘& composites: Accura%25 plastic 4, ‘Bludstone™
Slide 11: Comprehensive Portfolio
Comprehensive Portfolio 3-D Printing Stereolithography Laser Sintering 3D SYSTEMS ai & q Biuestone™ [s] \ ametiyst™ SS
Slide 12: Industrial
Industrial CATERPILLAR = | SIEMENS 9 FLUKE. CAA) MOTOROLA ROBERTODEMEGLIO
Slide 13: Consumer
Consumer LEVER FABERGE ITALIA mT Polaroid § EMERSON
Slide 14: Automotive
Automotive DAIMLERCHRYSLER itt Ey vovor - = HP Van A = wae é .] g Experience Ee)
Slide 15: Aerospace
Aerospace > Y Pratt & Whitney Experienc@—aeae een CEA. A
Slide 16: Motorsports
Motorsports RENAULT |] Team PocciPoun!| = OBERT YATES
Slide 17: Health Care
Health Care (FF) Sendia National Laboratories WIDEX hearing instruments. invisalign’ PHONAK GN resound hearing systems Walter Reed Army Medical Center
Slide 18: 2004 Global Revenue -- $125 Million
2004 Global Revenue -- $125 Million By Region page 12
Slide 19: Value Proposition
Value Proposition Functionality Prototype Pattern <——— o6uey ar11g —— rs 2 ‘® @ a 2 & 2 % 8 oO Development Enaineerina Manufacturing Time to Market Pages aosysitMs 3D Systems Corporation
Slide 20: Customer Value
Customer Value = Reduce » Design cost >» Manufacturing cost = Cost of Goods Profitability = Reduce > Time to design > Time to production = Time to market is 9T ele. the differe:
Slide 21: Refined Business Model
Refined Business Model Enhance total customer experience Invest in core... exit rest Lead through technology Develop key markets Grow recurring revenue... blade Price for customer value Execute a little better every day
Slide 22: Market Leadership Through Technology
Market Leadership Through Technology Leap-frog direct competitors’ technology Deliver monetized customer benefits Augment internal developments with external alliances Complement IP portfolio through strategic cross-licenses Proprietary advanced materials and composites Patented material packaging a
Slide 23: Market Leadership Through Technology
Market Leadership Through Technology Leap-frog direct competitors’ technology Deliver monetized customer benefi Augment internal developments with external alliances Complement IP portfolio through strategic cross-licenses E.O.S... Sony... DSM... Objet... Proprietary advanced materials and composite
Slide 24: 3-D Printing Solutions
3-D Printing Solutions Key Attributes User-friendly systems. Office and desktop utility Enhanced material toughness Superior finished surfaces Plug-n-play installation Fast and productive Three affordable models: > LD @ $22,900 > SR @ $39,900 > HR @ $64,500 page 17
Slide 25: 3-D Printing Solutions
3-D Printing Solutions > Proof of concept > Functional testing » Product cost reduction > Purchasing and quotation > Product mockups > Precision casting > Marketing tools > Architecture » Education Page 18
Slide 26: 3-D Printing Growth Drivers
3-D Printing Growth Drivers (Based on units) Global Engineering Population 2,600,000 - ~~; i y ‘N > ZA f ee \ "5 Million J 9090 Frese y Engineers MCAD Users) Printers 4 SS) 2 V a N y : = y iy > A 5,500 2005 source: 3b systems, CADIgest, engineeringtatk.com, Deskeng.com Page 19 ams Corporation Invest
Slide 27: InVision LD 3-D Printer
InVision™ LD 3-D Printer 22,900 = Compact, desktop 3-D printer = Affordable and office-friendly = 2-D, plotter-like functionality = Builds complex parts = EZPeel™ supports = Worldwide marketing rights
Slide 28: InVision LD 3-D Printer
InVision™ LD 3-D Printer 22,900 Introducing a 30% Faster Printer = On display here today = Available late Q1 = Same functionality = Same utility = Same price = Higher productivity
Slide 29: New Vertical...Education
the differe. Experien SP “ui ) * Denmark Technical College New Vertical...Education 16 Colleges Purchased 3-D Printers + Aiken Technical College + Central Carolina Technical College + Florence-Darlington Technical College * Greenville Technical College + Horry-Georgetown Technical College + Midlands
Slide 30: 3-D Printer Competitive Landscape
3-D Printer Competitive Landscape Placement Office Lab Factory |) 30% Faster : 8 InVision HR 7 nf InVision SR £ . Objet 3 7 A bad Solidscape . o = a = = ¥ Zcor Dimensions Prefactory ‘$100K page 22 orporation -Investor Day, New York 2006
Slide 31: Rapid Manufacturing Solutions
Rapid Manufacturing Solutions Key Attributes Volume production End-use parts Mass customization Complex shapes Total design freedom User-friendly set-up Higher productivity Lean manufacturing Displace traditional methods: > C.N.C. > Injection molding > Roto-molding Experience SN
Slide 32: Rapid Manufacturing Solutions
Rapid Manufacturing Solutions > Hearing aids > Aerospace > Military > Orthodontics > Dental study models > Dental drill guides > Formula One/NASCAR > Automotive > Medical/prosthetics > Footwear » Tools and fixtures > Jewelry manufacturing Page 24 AD Systems Corporation -Investor Day, New York 2006
Slide 33: Rapid Manufacturing Growth Drivers
Rapid Manufacturing Growth Drivers (Based on $US) Global CAPEX Production Machinery $4.4 Billion $4 Billion.” Traditional Processes cNC= _~$4 Billion Experienceigje iio
Slide 34: New Vertical...Custom Manufacturing
New Vertical...Custom Manufacturing > Designer Lamps! >» Unmanned Vehicles > Disposable Fixtures > Custom Automation
Slide 35: New Vertical...Micro-Casting
New Vertical...Micro-Casting > Jewelry manufacturing} >» Dental molding Experience > Micro part casting So 5
Slide 36: Rapid Manufacturing Competitive Landscape
Rapid Manufacturing Competitive Landscape Tooling + Lead Time + Set-up = Part Cost Unit Cost Justification Tool Based - io 4 o| Based - i Material Inventory Traditional Complexity Time the differe. Experience Primary Justification
Slide 37: Rapid Manufacturing Competitive Landscape
Rapid Manufacturing Competitive Landscape Tooling + Lead Time + Set-up = Part Cost Prohibitive ° S cost Ss | & lead time S Expensive e cost & lead time ~ @ 6 & iE a £ ae § 2° Ss a Cost Per Part Remains Unchanged 00 01-500 0 00 01-5000 Unit Volume Page 288 . N S orporation - Investor Day, New Yor!
Slide 38: Rapid Manufacturing Competitive Landscape
Rapid Manufacturing Competitive Landscape Tooling + Lead Time + Set-up = Part Cost 1,000 Concept Cars > UM Vehides > Automation > Aerospace Ducting| > Conformal Cover > Fixtures Electronics > Sports > Collectables Unit Cost > Hearing Aids > Dental Molds > Custom Jewelry 100
Slide 39: New Products in Months
Market Leadership Through Technology 29 New Products in 23 Months New Products Since 4903 ‘As % of Total Revenue by Quarter
Slide 40: New Products in Months
Market Leadership Through Technology 29 New Products in 23 Months > 28% of 3Q05 total sales > 23% of nine-month ‘05 total sales > 27% of nine-month ‘05 materials sales from new material > 44% of nine-month ‘O05 new product sales from 3-D Printing ~$10 million > ~50% of all systems sold into rapid ma
Slide 41: Global Competitive Landscape
Global Competitive Landscape 3D ee ee ee -@ e@ e@ e@ e@ e@ ‘SL= Stereolithography GP = Comprehensive Capabilities Direct = Employees LS=LaserSintering @ = Partial Capabilities Indirect = Resellers tems Corporation -Investor Day, New York 2006
Slide 42: Operating Highlights
Operating Highlights First Nine Months 2005 ($ Millions except per share amounts) % Change Operating Highlights Yr-Yr Revenue $95.5 | $971 Gross Profit soz | son 0 of Revenue 449% 449 Operating Expenses 897.4 | 997.2 9% of Revenue 39% 43%. & Net Income (Loss) Available to Common Stockholders $2.4 |
Slide 43: Revenue Component Changes
Revenue Component Changes First Nine Months 2005 ($ Millions) $100.0 $95.0 $90.0 $87.1 6.1 $85.0 peo) $80.0 $75.0 is 9T ele. the differe: lew FX Effects 2005 SN d
Slide 44: First Nine Months 2005 Cash Flow
First Nine Months’ 2005 Cash Flow 30 $26.0 25 Enterprise Before!" PRED Py - = Interest = ti. Exp. Depr. and Stock Com 15 ($ Millions) Experience Dividends ‘Stk Options Inventory Accruals Opening "Legacy Ending Balance Costs, Strategic Working Financing Operating Investments Capital, jp “Ub wosystems
Slide 45: Reconciliation of Cash Flow
ation of Cash Flow* ($000’s)
Slide 46: Historical Financial Highlights
E A i . N S Historical Financial Highlights Growth, Profitability, Liquidity, Working Capital and Equity Improvements ($ Millions) 2003 2004 Revenue Growth -5.1% | 14.0% | 9.7% Gross Margin as % Revenue 39.2% | 44.7% _| 44.2%) Operating Exp. as % Revenue 52.8% | 40.3% | 39.1%) Net Income Avail. To C
Slide 47: Commitments for Debt Service, Preferred Stock & Operating Leases
Estimated at 12/31/05 $ Millions 40 Commitments for Debt Service, Preferred Stock & Operating Leases 2008 2009 2010 2011 @ Senior ™ Op Lease m SubDebt m Pfd Stck Note: Senior debe consists of $3.7 milion of industrial development bands isund to finance the Company's Grand Junction, Colorada e facili
Slide 48: Major Holders — March 2005
Major Holders — March 2005 Shares of Common Stock Beneficially (Owner or Portfolio Manager Owned Percentage © the Clark Estates, Inc.) 2,061,301 11.9% St. Denis 3. Villere & Company") 2,043,214 11.8% IT. Rowe Price Associates, Inc.) 1,790,348 10.4% Daruma Asset Menagement, Inc.) 41,351,900 7.8% Gold
Slide 49: Extensive Portfolio Transformation
Extensive Portfolio Transformation 2003 Core Products 2005 Current Products 3-D Printing Price ~ $200K-650K a. Rapid Manufacturing
Slide 50: Extensive Portfolio Transformation
Extensive Portfolio Transformation 2003 Core Products 2005 Current Products 3-D Printing A NX Proprietary Cartridges a ka Rapid Manufacturing
Slide 51: Technology Driven Business
Technology Driven Business Development... and Results Kevin McAlea Vice-President Global Marketing
Slide 52: New Products Deliver Significant Customer Benefits
New Products Deliver Significant Customer Benefits...
Slide 53: New Products Deliver Significant Customer Benefits
New Products Deliver Significant Customer Benefits... Experience—ajaeiaa
Slide 54: New Products Deliver Significant Customer Benefits: Increased Throughput
New Products Deliver Significant Customer Benefits... Increased Throughput ==
Slide 55: New Products Deliver Significant Customer Benefits: More Materials
New Products Deliver Significant Customer Benefits... More Materials Better Materials Utilization
Slide 56: New Products Deliver Significant Customer Benefits
= Reduced part cost = Improved part functionality = More applications « New business opportunities New Products Deliver Significant Customer Benefits... i g
Slide 57: Automotive Styling and Design
Automotive Styling and Design = More than 12 major styling studios in Japan* = Full-scale mock ups = Concept vehicles = Design models = Customer » Shonan Design (Japan) Experience 2) Source: Cat Mag: N N
Slide 58: Automotive Manufacturing
Automotive Manufacturing = Motorsports » specialty vehicles = High-end, exclusive cars = Taxis and police cars = Ducts » interior parts » enclosures = Part quantities » 100 - 10,000 3 v ES S q g g Sp ps “i
Slide 59: Aerospace Manufacturing
Aerospace Manufacturing = Military aircraft » commercial aircraft » unmanned air vehicles (UAVs) * Ducts » brackets » engine fan blades = More than 1,500 target parts in military aircraft* = More than 5,000 target parts in commercial aircraft* * More than 40 UAV manufacturers worldwide** = the diffe
Slide 60: Hearing aids and dental restorations
= Hearing aids » dental restorations and implant drill guides * 42 million crowns and bridges produced per year in the U.S. in 2003* = More than 10,000 dental laboratories in the U.S.* = Reduce labor » improve consistency = Enabling technologies » in- office scanners
Slide 61: Pharmaceutical packaging
« Pharmaceutical packaging = Customized feed wheels and tubes Customized Machinery = More than 400 packaging P machinery companies in the f U.S.* = 3 vo ES = Difficult-to-manufacture parts Aes *Source: Dae (SIC 3565)
Slide 62: Specialized Tooling
Specialized Tooling * Athletic footwear = More than 50,000 tools per year required by Adidas* = Stereolithography patterns * Molded pulp packaging * More than 70MM Ibs molded pulp packaging in the U.S.** Environmentally friendly = Laser sintered vacuum tools Experience “source: Adidas eee \ \
Slide 63: Machine and Molding Shops
Machine and Molding Shops = More than 7,000 machine and molding , shops in the U.S.* = 35% of production runs less than 1,000 parts/assemblies** = Pro systems » competitive advantage » broader solutions = Customer » Butler Tool (U.S.) Experience ‘Source: Dae (SIC 3543 and 3089) **Source: Assembly Ma
Slide 64: HQ Relocation/Consolidation
= Centralize HQ and operations = 3D Systems University = Rapid Manufacturing Center = Do more with less...half the current space « Improve work force affordability and availability = Obtain attractive incentives HQ Relocation/Consolidation Key Objectives: 5 « Advanced Research and Development Center
Slide 65: Site Selection Criteria
> Rated in the top 10 metros for business expansion by major global companies = Employment Conditions -- Performance Culture > Center for accelerated learning and training = Transportation -- Customers’ Success » Accessibility to major markets » Proximity to key customers = Operating Costs -- Cash F
Slide 66: Global Presence
Global Presence ‘3 ea ii-a — “t. cs jermany Colorado ‘Swgigeriand Hon: y ° 5 ° 1 japan / fi: Page 5 osysitMs 3D Systems Corporation -Investor Day, New York 2006
Slide 67: Rock Hill, South Carolina
Rock Hill, South Carolina Future Global Headquarters 3D Systems Corporation Page Sab
Slide 68: 3D Systems University
3D Systems University -In Partnership With- York Tech - Institute for Manufacturing Productivity = Customer training = Reseller training = Team 3D training = 2-year RP&M degree = Co-ops and internships 3D Systems’ showcase
Slide 69: Target Operating Model
Experience Target Operating Model (Target based on annual revenue in the range of $150 million) 3D Systems corporation -Investor Day, New York Actual 2004 2005 Long-Term Year 9 Mos. YTD Target Revenue 100% 100% Gross prof 30% | 45% | 44% Operating expense 53% | 40% | 39% Operating income == Net inco
Slide 70: Leveraging the Model
Fixed Leveraging the Model Infrastructure, Technology, Outsourcing and New Products Drive Margin Expansion SMe Gutsourcing® “New Products | Execution A °2 od Experience
Slide 71: Key Initiatives
Experiences Key Initiatives Completing planned HQ consolidation Strengthening sales and marketing Europe and Japan Commercializing additional 3-D printers Growing 3-D printer reseller channel globally Enhancing service effectiveness and profitability Developing new Rapid Manufacturing applications I
Slide 72: Business Fundamentals
= Clear customer priorities ... demonstrated execution = Stronger financial base and flexibility = Comprehensive solutions’ portfolio = Significant and steady new product introductions = Healthy pipeline of additional opportunities = Improving operating results, efficiencies and cash flow Business F
Slide 73: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ GRAPHIC] 3D Systems Corporation Investor Day New York, NY January 11, 2006 NASDAQ:TDSC [LOGO] www.3dsystems.com Transform Your Products Ex perience the difference… Forward-Looking Statements Certain statements made in this release that are not statem