Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Merger or Acquisition (May 2023)
21 slides from Stratasys's merger presentation, May 25, 2023
Slide 1: The powerhouse in industrial additive manufacturing
The powerhouse in industrial additive manufacturing May 24, 2023
Slide 2: Disclaimer: Cautionary Statement Regarding Forward-Looking Statements
2 Disclaimer Cautionary Statement Regarding Forward - Looking Statements This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of sec
Slide 3: Today's presenters
3 RIC FULOP Chairman and CEO Desktop Metal Today’s presenters DR. YOAV ZEIF CEO Stratasys Chairman Combined Company CEO and Director Combined Company
Slide 4: Unparalleled distribution, powerful synergies, robust financials
Unparalleled distribution • One of the largest global go - to - market networks in 3D printing • Creates significant cross - sell potential for recognizable brands • First in class customer support capabilities Powerful synergies • ~$50M in additional run - rate cost synergies (1) • ~$50M in expecte
Slide 5: Driving manufacturing transformation together
5 Driving manufacturing transformation together The first industrial AM company covering the full manufacturing lifecycle from design to mass production in both polymers and metal A leader in polymer 3D printing A leader in mass production of metal, ceramics and restorative dental 3D printing
Slide 6: Transaction highlights
6 Transaction highlights Consideration Stock - for - stock merger Transaction Terms Each share of Desktop Metal Class A common stock will be exchanged for 0.123 Stratasys ordinary shares Pro - forma Ownership Approximately 59% Stratasys shareholders / 41% Desktop Metal shareholders on a fully dilute
Slide 7: Immense opportunity as AM shifts to mass production
7 Immense opportunity as AM shifts to mass production x The 3D printing industry has grown 10x in the last decade to $18B from prototyping and tooling use cases x The shift towards mass production will grow the market to $100B+, still representing very small portion of global manufacturing spend x C
Slide 8: Immense opportunity as AM shifts to mass production (cont'd)
8 Immense opportunity as AM shifts to mass production (cont’d) Part quantity MANUFACTURING LIFE CYCLE Source: Company estimates, ARK Big Ideas 2022; VoxelMatters Additive Manufacturing report, 2022 Unique opportunity to drive growth by capturing additional share in a large, rapidly growing market De
Slide 9: Polymer and end-use-parts manufacturing market growth and pro forma revenue mix
9 14% POLYMER DESIGN, RESEARCH AND PRE - PRODUCTION CAGR MARKET CAGR (2022 – 2027) 29% END - USE - PARTS MANUFACTURING CAGR Source: Company estimates; VoxelMatters Additive Manufacturing report, 2022 Pro forma $650M $235M (Excluding MakerBot) End - use - parts manufacturing and mass production repre
Slide 10: Premier company in industrial AM with leading position across technologies
10 Premier company in industrial AM with leading position across technologies + FDM + PolyJet + Industrial DLP, PBF & SL + Metal binder jetting + Digital casting + Restorative dental (1) DDD, VLD and MKFG projections based on research analyst consensus estimates as of 5/21/23. SLM projection based o
Slide 11: Fully complementary AM platform offerings with minimal overlap
11 Fully complementary AM platform offerings with minimal overlap Broad, unified portfolio across a number of materials and technologies MATERIAL TECHNOLOGY USE CASES Metal Binder Jetting Mass production Metal Extrusion Manufacturing Digital Sheet Forming Mass production Sand Binder Jetting Mass pro
Slide 12: $35B growth opportunity in dental mass production
12 $35B GROWTH OPPORTUNITY IN DENTAL MASS PRODUCTION Leading brands and superior technology to drive outsize growth in dental restorative market 1,000+ — Printers installed globally 2 600,000 + — Dentures printed since Flexcera launch in Jun - 21 2,3 70+ — Dental & biofabrication materials 2 • Insur
Slide 13: $100B growth opportunity in metal, carbides and ceramics
$100B GROWTH OPPORTUNITY IN METAL, CARBIDES AND CERAMICS Bringing true mass production to metal additive manufacturing • The industry’s leading global position in binder jet with the highest throughput systems, over 15 print platforms covering 1L to 1,800L print volumes and more than +45 materials q
Slide 14: SSYS and DM are already transforming polymer mass production
14 SSYS and DM are already transforming polymer mass - production Select applications in mass - production SPARE PARTS (ANYTHING ANYWHERE) INDUSTRIAL ACCURATE PARTS (E.G., CONNECTORS) INDUSTRIAL REPLACEMENT OF INJECTION MOLDING FOAM SOLUTION FOR LARGE PARTS IN AEROSPACE & AUTOMOTIVE
Slide 15: Superior go-to-market
15 Superior go - to - market COMBINED GLOBAL DISTRIBUTION AND SUPPORT NETWORK Combined Global Coverage 65+ COUNTRIES 300+ CHANNEL PARTNERS 45+ BEST IN CLASS KEY ACCOUNT 140+ SALES & MARKETING PERSONNEL 400+ CUSTOMER SUPPORT AND APPLICATION ENGINEERS PERSONNEL SPECIALTY CHANNELS for Dental
Slide 16: Innovation powerhouse: R&D and IP portfolio
16 • One of the largest R&D teams in the industry • Significant investment towards innovation for both companies • Creates a moat that will keep the Company ahead of competitors Innovation powerhouse • Complementary IP portfolio across printers, software, processes and materials (polymer and metal)
Slide 17: Selected customers across end markets
17 Consumer products Includes final goods for households or personal use, as well as parts that aid in the manufacturing of final goods Selected customers across end markets Aerospace Includes aviation, space flight, and defense technologies Automotive Includes automotive OEMs, tier 1 to tier n’s, a
Slide 18: Significant run-rate synergy potential across the business
18 Significant run - rate synergy potential across the business ANNUAL RUN - RATE REVENUE SYNERGIES (1) ANNUAL RUN - RATE COST SYNERGIES (1) COGS Leverage scale to optimize manufacturing costs Corporate Costs and Other G&A Elimination of duplicative public company costs Other Opex Synergies Technolo
Slide 19: Attractive financial model and well-capitalized balance sheet
19 Segments Revenue (2023E mid - point guidance) Mid - term annual revenue growth 2025E target Mass production 51% 20% – 25% Prototyping 49% 5% – 10% Total revenue ~$885M 13% – 18% $1.1B Gross margin 45%+ Adj. EBITDA margin 10% – 12% Attractive financial model Well - Capitalized Balance Sheet Togeth
Slide 20: SSYS + DM will deliver benefits for all stakeholders
20 SSYS + DM will deliver benefits for all stakeholders • Significant opportunity to capture the value of AM for mass production • Expected to achieve $50 million in additional annual run - rate cost synergies by 2025 • Expected to achieve $50 million in annual run - rate revenue synergies by 2025 •
Slide 21: Stratasys and Desktop Metal
$ Stratasys {)))\\ Desktop Metal May 25, 2023