Slide 1: Investor Presentation December 2011
Investor Presentation December 2011
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward- looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, perfo
Slide 3: Business Highlights
Business Highlights Leadership thro Diversified revenue technology & source, expanding business innovation margins Compelling razor Multiple sales & blades model, channels, rapid comprehensive reseller network solutions portfolio expansion Attractive addressable marketplace, h growth potential Signi
Slide 4: Global 3D Content-To-Print Leader
Global 3D Content-To-Print Leader 3D Content-To Print Solutions Printers Transportation Health-Care Consumer Recreation Education Energy
Slide 5: Attractive Addressable Marketplace With High Growth
Attractive Addressable Marketplace With High Growth Industry Revenue USD in millions $6,000 5/000 $5,050 $4,000 ‘ $4,000 9 $3,000 Se0.MieD. as WE $3,000 - $2,100 $2,000 $7,500 $500 Million $1,000 | $0 Source: 30 tems 2012 2014 2016 2018 2020 Our solutions replace, displace or augment . . . . traditi
Slide 6: Improving Growth Indicators
Improving Growth Indicators Total ~ $1,150Bn Our study captures ~48% of total Global R&D Source: Booz and Company and 3D Systems
Slide 7: Patents
V -- Patents Issued & f Process Ecommerce y/ Engines y Expertise y/ a .\ =) 90 Print Materials y Plugins Software
Slide 8: Extending Global Reach & Local Presence
Extending Global Reach & Local Presence Europe / United States Sele . ., Rock il, SC 2 / Asia-Pacific Allanta, GA : } Australia China Hong Kong india Japan Sing 98 New Resellers 14 New Services Facilities
Slide 9: Compelling Value Proposition
Compelling Value Proposition Enables freedom of creation Eliminates production tooling Compresses lead-times Cuts inventory cost Reduces capital investment Enables personalization Minimizes waste Simplifies supply chain
Slide 10: Impressive Customer Base
Impressive Customer Base —— oe) Daewoo Fujitsu HITACHI HyunoAl casio FUJI XEROX HONDA Isuzu Pinson SONY @®TOYOTA
Slide 11: Diversified Revenue Sources
Diversified Revenue Sources Ci Revenue e 20: Content Revenue compo: st nine months 2011 Downloads 3D Printers ‘Printer penices : Printers 28% Services 41% Design i Custom Parts. Productivity coins — Materials 31% Print Materials
Slide 12: Comprehensive Printer Portfolio
Comprehensive Printer Portfolio Personal 3D Printers Professional 3D Printers Production 3D Printers pea f= Price: $1,300 - $14,500 Price: $49,000 - $225,000 Price: $250,000 - $950,000
Slide 13: Extensive Materials Breadth
Extensive Materials Breadth Functional Snapfit High Impact Light Weight Durable High-Definition CLI © EE © EE © EG » A © EC »
Slide 14: Full Range Content-To-Print Tools And Services
Full Range Cont o-Print Tools And Services Content Creation Content Downloads Demand Parts Price: $199 - $1,999 Price: $9 - $999 Price: $25-$2,500 Software Products
Slide 15: Differentiation Through Customer Centric Solutions
Differentiation Throug tomer Centric Solutions We offer a comprehensive tool box... we sell our customers the right tool for the right job Our competitors sell different size hammers... to them every application looks like a nail
Slide 16: Focused Growth Initiatives
Focused Growth Initiatives Expand on- demand custom parts global services Grow healthcare solutions revenue Accelerate 3D printer penetration Build consumer content products and services
Slide 17: Revenue From Growth Initiatives
Revenue From Growth Initiatives Sin millions Nine Months Ended Septemb: Printers 2010 ( $34.0 2s sas Print 2010, | $418 Material $505 2010 $32.5 Services “20r $65.6 2010 4 $14.5 Health ———<— =_— s199 48% total revenue growth 20% organic revenue growth
Slide 18: Balanced Revenue Composition
Balanced Revenue Composition — September 30** Catego! Geography 180 160.6 $160.6 160 u Asia 13% 140 Pacific -_ 41% s $108.3 services $108.3 35% = 100 14% E 30% Europe & 80 - Materials Yo 31% 60 39% r 40 - North [imma 20 ai Printers 28% 46% America ry) 2010 2011 2010 2011 s 2011 recurring revenue acc
Slide 19: Performance Drives Productivity And Profitability
Performance Drives Productivity And Profitability Last 3 years first nine calendar months comparison 2010 % Change Over 2009 | 2011 % Change Over 2010 42% 48% 62% 273% 46% 55% 109% 43% 91% -Percents are rounded to nearest whole numbers -EPS in prior year restated to reflect stock split completed May
Slide 20: New Products Fuel Growth
New Products Fuel Growth 20 Commercialized 13 new products 2011 year-to-date Nine Months 2011 Gross Profit by Category $ in millions New Products Nine Months Revenue
Slide 21: Acquisitions financed primarily from free cash flow
We acquired 19 companies from August 2009 to August 2011 10 related to our on-demand 5 building blocks for our 4 tuck-ins related to our parts services growth initiative | consumer growth initiative printers businesses We financed these acquisitions primarily from our free cash flow Generated ~$56 m
Slide 22: Disciplined Acquisition Integration Process
Disciplined Acquisition Integration Process Integration plan completed prior to closing Acquisition accounting completed in the current period Synergies run-rate realized first full year Purchase-to-pay and order-to-cash integrated within 5 days Facilities consolidated as required within 6 months Al
Slide 23: Innovative Model Delivers Favorable EPS Trend
Innovative Model Delivers Favorable EPS Trend EPS Improvement Over Prior Year's Quarter Qi 2009 | $0.03 | Q2 2009 | $0.05 | Q3 2009 | $0.04 Q4 2009 | $0.04 a1 2010 | $0.09 Q2 2010 | $0.09 | Q3 2010 | $0.10 | Q4 2010 | $0.10 | Q12011 | $0.10 Q2 2011 | $0.08 Q3 2011 | $0.03 - Excludes the benefit of t
Slide 24: September-November 2011 Acquisitions Highlights
ptember-November 2011 Acquisitions Highlig Compelling razor and ; blades businesses with Differentiated Extends our geographic accretive margins technology with reach and local speed and full color presence capabilities Doubles reseller Immediately accretive channel and access to cash generation Str
Slide 25: Strategically Compelling Financially Attractive
Strategically Compelling Financially Attractive ‘Compliments our printers & materials portfolio with significant technology assets ‘Status: On track to be fully integrated by year-end Acquired businesses generated $75 million for trailing 12 months ended June 2011 *Solidifies our on-demand parts ser
Slide 26: Huntsman Expands Our Materials Portfolio & Margins
Huntsman Expands Our Materials Portfolio & Margins Complements our Brings significant | Extends our product portfolio technology assets healthcare solutions 25 complementary => 373 patents issued & materials . applied
Slide 27: Z Corp Provides Instant Scale and Stakeholders Value
Z Corp Provides Instant Scale and Stakeholders Value Highly Complementary Broadens Vertical complementary reseller channels reach Into MCAD, printers and scanners doubles coverage and ARCH & Consumer offer full color accelerates growth differentiation and speed advantage
Slide 28: Current Complements Price Points & Performance
Current Complements Price Points & Performance Personal 3D Printers Price: $1,300 - $14,500 Professional 3D Printers Production 3D Printers Price: $49,000 - $199,000 Price: $250,000 - $950,000 oduction 3D Pr Price: $1,300 - $15,000, Price: $20,000 - $225,000 Price: $250,000 - $880,000
Slide 29: Expands Content-To-Print Tools and Services
Expands Content-To-Print Tools and Services Content Creation Content Downloads On Demand Parts PS Pra “— fesisE i" ic [. ae . xe Price: $199 - $1,999 Price: $9 - $999 Price: $25-$2,500 Content Capture
Slide 30: Vidar Catalyzes Healthcare Growth Initiative
Vidar Catalyzes Healthcare Growth Initiative Leadership in medical film scanning solutions for Mammography, PACS, Teleradiology, Oncology, Dosimetry, and Dental 100 reseller strong Substantial installed based network instantly presets multiple cross multiplex our healthcare selling upselling and lon
Slide 31: Favorable Pro Forma Revenue Mix
Favorable Pro Forma Revenue Mix 31 3D Systems Huntsman, Kemo, Formero, Z Corp, & Vidar with ~$75 million 2010 revenue Pro Forma Based On 2010 Combined Revenue Snapshot + +
Slide 32: Recent Acquisitions Scale Our Target Operating Model
Recent Acquisitions Scale Our Target Operating Model GAAP Non-GAAP (Smiions) Drivers Model Ranges Model Ranges Revenue $500 $400 $500 Gross Profit % 60% 56% 60% Operating Expenses 28% 23% 21% Operating Income 32% 35% 41% Net Income After Tax* % % 20% 24% Capital Expenditures % 2% 2% Recurring Revenu
Slide 33: Bottom Line
Bottom Line Leadership thro Diversified revenue technology & source, expanding business innovation margins Compelling razor Multiple sales & blades model, channels, rapid comprehensive reseller network solutions portfolio expansion Attractive addressable marketplace, h growth potential Significant v
Slide 34: Thank You
Thank You