| NYSE:DDD · PDF filelooking statements include statements concerning plans, objectives,...

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WWW.3DSYSTEMS.COM | NYSE:DDD

Transcript of | NYSE:DDD · PDF filelooking statements include statements concerning plans, objectives,...

Page 1: | NYSE:DDD · PDF filelooking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future ... MEDICINE

WWW.3DSYSTEMS.COM | NYSE:DDD

Page 2: | NYSE:DDD · PDF filelooking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future ... MEDICINE

FORWARD LOOKING STATEMENTSThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments,future events, performance or products, underlying assumptions, and other statements which are other than statements of historical facts.In some cases, you can identify forward-looking statements by terminology such as ''may,'' ''will,'' ''should,'' “hope,'' "expects,'' ''intends,''''plans,'' ''anticipates,'' "contemplates," ''believes,'' ''estimates,'' ''predicts,'' ''projects,'' ''potential,'' ''continue,'' and other similarterminology or the negative of these terms. From time to time, we may publish or otherwise make available forward-looking statements ofthis nature. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualifiedby the cautionary statements described on this message including those set forth below. In addition, we undertake no obligation to updateor revise any forward-looking statements to reflect events, circumstances, or new information after the date of the information or to reflectthe occurrence or likelihood of unanticipated events, and we disclaim any such obligation.

Forward-looking statements are only predictions that relate to future events or our future performance and are subject to known andunknown risks, uncertainties, assumptions, and other factors, many of which are beyond our control, that may cause actual results,outcomes, levels of activity, performance, developments, or achievements to be materially different from any future results, outcomes,levels of activity, performance, developments, or achievements expressed, anticipated, or implied by these forward-looking statements. As aresult, we cannot guarantee future results, outcomes, levels of activity, performance, developments, or achievements, and there can be noassurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or accomplished. These forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well asthe beliefs and assumptions of management. 3D System’s actual results could differ materially from those stated or implied in forward-looking statements. Past performance is not necessarily indicative of future results. We do not intend to update these forward lookingstatements even though our situation may change in the future. Further, we encourage you to review the risks that we face and otherinformation about us in our filings with the SEC, including our Annual Report on Form 10-K. These are available at www.SEC.gov.

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TRENDS AND DRIVERS

Design & Manufacturing are Reimagined

Free Complexity Drives

Functionality

3D Printing Enables

Personalized Products

3D Lifestyle Becomes

Ubiquitous

Our bold investments in healthcare and metals are delivering category growth rates that substantially outperformed industry growth, validating our early and decisive actions

Our stepped up growth investments that started some twelve some months ago are leveling off and our operating leverage is returning

Our ability to acquire strategic assets affordably and attract the leadership talents required to scale our business provides immediate opportunities to deliver greater value and positions us best for sustainable, profitable growth

Our effective integration of acquisitions is already delivering synergies and expanded margins in our Quickparts and healthcare businesses

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HIGH GROWTH – ABUNDANT OPPORTUNITY

0

5,000

10,000

15,000

20,000

25,000

2013 2016 2018 2020

Mill

ion

s o

f D

olla

rs

Source: Wohlers Associates, Inc.

3D Printing and Additive Manufacturing 4-Year Hiring TrendsSize of 3D Printing Industry

The number of job ads requiring workers with 3DP skills increased 1,834% in 4 years!

Source: WANTED Analytics

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COMPREHENSIVE PRINT ENGINES

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DESIGN | MODEL | PROTOTYPE | COMMUNICATE | TOOL | CAST | MANUFACTURE

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Durable | High-Temperature

Precision MetalsFull Color Multi Materials

Elastomeric | Flexible

~120 MATERIALS: PLASTICS | NYLONS | METALS | WAXES | COMPOSITES | CERAMICS

ENGINEERD MATERIALS FOR PERFROMANCE PARTS

High-Definition | Snap-Fit

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FOCUSED STRATEGY

MEDICAL | MATERIALS | METALS | MANUFACTURING | MAINSTREET

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COMPLEXITY| WEIGHT | MANEUVERABILITY | FUEL EFFICIENCY

AEROSPACE

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TRANSPORTATION

DESIGN | VALIDATE | TOOL | BRIDGE | CUSTOMIZE | MANUFACTURE

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PERSONALIZED MEDICINE

Leftmost Image Source: Starkey Hearing Technologies

Source: Conformis

FROM TRAINING ROOM TO OPERATING ROOM

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Affordable Personal Scanning

Consumer Apps and Software

3D Home Printers and Cloud fulfillment servicesPerceptual Tools

DIGITAL PLATFORM

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DESKTOP ENGINEERING

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EDUCATION & DIGITAL LITERACY

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3D LIFESTYLE

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GLOBAL REACH | LOCAL PRESENCE

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GARTNER CURVE

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MARKETPLACE POSITIONING

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$609.8

$129.3

$43.8

$478.6

$71.7

$34.8

Design & Manufacturing

Healthcare

Consumer

2014 2013

REVENUE HIGHLIGHTS

27%

80%

Design and manufacturing salesgrew on strengthening demand

Expanded portfolio drove higher demand for our healthcare solutions

Consumer contribution increased on new products availability

$ in millions

26%

FULL YEAR

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0

500

1000

1500

2000

2500

3000

3500

4000

2013 2014

Design & Manufacturing Units

70% Growth

PRINTERS REVENUE AND UNITS PERFORMANCE

2014

Plastics Metal

2013

Plastics Metal

20% Revenue Growth

Design & Manufacturing Printers Revenue

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$14

$39

$0

$10

$20

$30

$40

$50

2013* 2014

DIRECT METALS

We ended 2014 at the higher end of our expected revenue range

Revenue grew 175% compared to 2013* revenue

Revenue increased 178% compared to the fourth quarter of 2013

Revenue increased 73% sequentially

Significant opportunities in manufacturing of aerospace parts, functional automotive assemblies, and ready to use medical devices

*2013 represents proforma results inclusive of Phenix Systems revenue prior to its acquisition by 3DS in July 2013

Annual Metals Revenue

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Open-ended opportunitiesDigital thread from training

room to operating room

2014 annual growth of 80%, Q4 ‘14 grew 14% sequentially

Strong organic growth of 34% for Q4 and 46% for the year

$13.1$14.1

$18.9

$16.9

$21.8 $21.7

$27.5

$37.4

$42.8

HEALTHCARE

$ in millions

During 2014, we expanded our digital thread from training room to operating room

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EFFECTIVE RETURNS ON R&D INVESTMENT

$23

$44

$75

$132

$231

$272

$-

$50

$100

$150

$200

$250

$300

2012 2013 2014

R&D Expense New Product Revenue

4X

$ in millions

6X

5X

Our effective R&D investments contributed to a 44% increase in new

products revenue over the past two years and delivered 27 new products in

2014 alone

Included in our 2014 R&D investments was the strategic addition of the Xerox

Wilsonville team that is working on several breakthrough new products

that are designed to fuel incremental revenue growth, beginning in the

second half of 2015

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We made significant IT infrastructure, capacity and continuity investments

INFRASTRUCTURE EXPANSION

We continue to increase production

capacity to meet growing demand for our comprehensive

portfolio of 3D products and

services

We increased production capacity for several design, manufacturing and consumer printers at our new 200,000 sq. ft. manufacturing facility in Rock Hill, SC

We brought online and began to ramp production at a second Direct Metal Printers manufacturing facility at our Corvallis, OR contract manufacturer

We completed the ramp up of a new consumer materials manufacturing facility in Barberton, OH

We broke ground on a 70,000 sq. ft. healthcare facility in Littleton, CO

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WE ARE BUILDING AN AGILE ENTERPRISE

Unified business practices and

shared capabilities

Increased customer intimacy and

responsiveness

Integrated global supply chain

Improved working capital

management

Enhanced business planning and

decision-making speed

Sustainable and scalable company with greater value

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BOTTOM LINE

We have completed a 15-month period of stepped up investments and have put our strategic foundation in place

For us, 2015 is all about execution: leveraging, fine-tuning and scaling our recent investments into sustainable, profitable growth

We plan to advance our reach and penetration in key verticals like healthcare, aerospace, automotive and consumer and expand our overall market share

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