Getting to Know 3-D Printing:

An Overview for Investors

3-D Printing Basics

• It’s a process that “prints” an object layer by layer in a range of different materials.

• Creates less waste than traditional “subtractive” manufacturing.

Also known as additive manufacturing.

3-D Printing BasicsIndustrial-grade 3-D printers can print objects as long as 4 meters.

3-D Printing BasicsConsumer 3-D printers are geared toward smaller jobs.

3-D Printing Strengths

• It can print really complicated objects in one piece.

• Frees up valuable resources and could improve operational efficiency.

• More creative freedom in design process.

No assembly required!

3-D Printing Weaknesses

• Prints can take hours or even days for bigger jobs.

• Objects often lack smoothness thanks to “staircase” effect of layer-by-layer-printing process.

• Still not appropriate for most large manufacturing runs.

It’s slow as molasses.

Major 3-D Printing TechnologiesFused Deposition Modeling• Extrusion-based layer-by-layer-

printing process

Selective Laser Sintering(pictured)• Granular material selectively fused

together with a laser

Material Jetting• Powder bed of material with inkjet-

style print head to bind layers together

Stereolithography• UV light sensitive resin “cured” layer

by layer

Common 3-D Printing Materials• Plastics

• Metal powders

• Ceramic powder

• Glass powder

• Sand

• Sugar

Major 3-D Printing Applications

• Medical implants• Dental implants• Orthopedics• Aerospace• Automotive• Biological• Confectionary

3-D Printing Market Opportunity

390% Growth in 9 Years• Wohlers Associates estimates the 3-D printing industry will

grow from $2.2 billion in 2012 to $10.8 billion by 2021. • At projected growth rate, the industry is expected to

double in size roughly every 3.75 years.

• Represents a 19.3% per year compounded annual growth rate.

5 Ways to Invest3D Systems (NYSE: DDD)

• Largest by revenue and most diversified 3-D printing company around.• Offers 3-D printing in plastic, metal, ceramic, and even sugar.

Stratasys (NASDAQ: SSYS)• 2nd largest player, focuses solely in plastics segment.

ExOne (NASDAQ: XONE)• Specializes in metal and sand printing for industrial customers that need large objects printed.

voxeljet (NYSE: VJET)

• German company that offers largest print beds in industry primarily for metal casting applications.

Arcam (NASDAQOTH: AMAVF) • Swedish company that specializes in metal printing for aerospace and medical implants. Trades

over-the-counter in U.S.

These Stocks Are Expensive!Company Trailing Price/Sales

Ratio Trailing P/E Ratio Forward P/E Ratio

3D Systems 21.5 208 76

Stratasys 16.2 N/A 57

ExOne 22.8 N/A 155

voxeljet 52.7 N/A 440

Arcam 19.6 172 181

•Investors are pricing in high growth expectations for 3-D printing.

•Sky-high valuations = a higher degree of investment risk.

Setting ExpectationsWith such high valuations, it’s important to set the right expectations going forward:

• 3-D printing stocks have rallied tremendously over the last year. Arcam, ExOne, and 3D Systems have more than doubled in value in the last year.

• As a result, investing in 3-D printing requires a long-term time horizon. Thinking in 5-10 year terms will likely serve you well.

• 3-D printing investors are almost guaranteed to experience high volatility in the future. A high tolerance for risk is crucial.

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