Stephen Nigro: 3D Printing

Securities AnalystMeeting 2016

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Securities Analyst Meeting 2016

3D Printing

Stephen NigroPresident3D Printing



Change how the worlddesigns and manufactures


Large and growing market

3D printing market rapidly growing

(30% CAGR1)

Delivering against the plan

Successfully launched new

commercial products andgo-to-market

Driving radical innovation

Multi JetFusion isfundamentally

disruptive

Lead the next industrial revolution

Long term opportunity is $12T2

mainstream production

1) HP internal data and projections based on currently available data and estimates. 2) Wohlers Estimates.

Lead the next industrial revolution withinnovative technology in 3D printing

200019001800

Today1784: First mechanical loom

1780s to 1860s 1870s to 1960s 1970s to 2010s 2010s - Future


Industrial revolutionMechanical productionWater and steam power

1 Mass productionElectric power,labor division and assembly line

2 Production automationElectronics and IT

3 Digital manufacturing and smart production 3D printing, digitizationand capital efficiency

4

3D Printing market expectedto continue strong growth

Plastics expected to be the bigger segment in 3D printed materials

18.1

20212019

10.5

2017

5.9

2015

3.4

2013

2.2

30%

Disrupt the $12Tmanufacturing sector


1) HP internal data. 2017, 2019 and 2021 data are projections based on currently available data and estimates. TAM includes HW, Materials, Software, Service Bureaus, Maintenance services, & Consulting services;2) HP internal data. 2021 data is projections based on currently available data and estimates; 3) Wohlers Estimates; 4) Targeted plastics Market based on internal estimates and projections and includes Service Bureau value added and the potential could be lower without Service Bureau participation.

Metals & Others $7.7Band is 43%

Plastics $10.4Band is 57%

$8.0B

$7.7B

43%

77%

23%Notaddressable

Addressable4

Manufacturing sector offersgreat potential for 3D printing

Manufacturing

$12T+

3D Printing

$2.4B


Key capabilities 30 years of leadership in

printing technologies

Fusing systemPart fusing system expertise400+ 3D printing patents1

Inkjet assets5000+ Inkjet patents1

Page wide assets

Material expertiseFluids and color

Services and supportMission critical + global reachAnalog to digital transformation

1) Number of patents include granted and pending patents; 2) Up to 10x faster than FDM & SLS printer solutions from $100K to $300K on markets as of April 2016 and part quantity and part size assumptions; 3) Based on internal testing and public data of comparable FDM & SLS printer solutions from $100K to $300K and assumes cost criteria for build chambers/day, packing density etc.

Multi JetFusion sustainable differentiators

Parts per day

Lowercost-per-part

340MVoxels / second

Differentiatedsolution atmultiple pricepoints

Productivity

Scalability

Compellingeconomics

Voxel level3D printing

Print bars from

6”- 110”

10xMore parts2

Voxels at 21 micron resolution

Up to

50%lower cost3

Uniquely positioned to drive production

Products for high performanceprototyping and short run production

HP JetFusion 3D printer

HP JetFusion 3D processing station with fast cooling

Breakthrough speedOne pass printing; up to 10X faster

High quality partsPart strength and surface finish

Lower cost-per-part50% lower

Open materials platformBranded and certified materials

2016


Partnerships to drive 3D printing ecosystem

Materials

Verticals

Standards Design

Software

Executing on winning strategy

Looking into the future

Establishthe business

Expandthe portfolio andthe go-to-market

3D printing becoming

mainstreamproduction

New voxel levelapplications open

new design possibilities

FY’17

FY’18

FY’20+


Strategy: Orchestrate multiple levers to unlock market


As the cost-per-part decreases,demand for 3D printing systems increases1

Conceptual and representative

Numberof parts

100s 1000s 1,000,000 10,000,000 10,000,000’s

23-5

~100

~500

~1000s

Co

st-p

er-

pa

rt

Nu

mb

er

of

3D

pri

nti

ng

ma

chin

es

1) HP internal analysis based on assumptions of addressability for new use cases once certain economic hurdles are reached; other factors in addition to cost per part might be necessary as well for increasing number of 3D printing machine sales.

3D production opportunity

Productcapabilities

Material price

Materialselection

Design foradditive

New supplychain

Standardsand regulation

Breakthrough economics drivinganalog to digital

Number of parts

Source: HP Internal estimates 1) Compared to select plastic material used in conventional injection molded parts; 2) Future breakeven point assumes improvements such as 4x productivity in addition to the lower plastic material and agent price.

1,000,000

Cost / part ($)

Today<55,000 parts3DP material more expensive by 5x1

Future

<1,000,000 parts3DP material closer to analog cost by 1.5x2

productivity 4x

100

Analogproduction

Digitalproduction


Custom plastic parts of the

HP Jet Fusion 3D solution

manufactured using 3D Jet Fusion technology1

The printerprints itself

Lower total cost per part

Improved part performance and functionality


1) Estimation of future additional addressable parts with a system 4x higher productivity, bigger bed size, color agents, expanded range of materials, improved accuracy and surface finish

Worldwide 3D printingmarket potential

2021 Current TAM1

2021 Potential TAM2

• Raw material selection andprice reduction

• Product capability improvement (e.g., build size, throughput, consistency, repeatability)

• Design for additive(e.g., software capability to tapinto 3D printing potential)

Key levers to unlockmarket potential

$18B

Potential to expand the 3D printing market

~2X+ TAM expansion


1) HP internal data. 2021 data is projections based on currently available data and estimates. TAM includes HW, Materials, Software, Service Bureaus, Maintenance services, & Consulting services;2) Estimate of Future TAM expansion is a directional indicator of market potential based on breakthroughs across all the levers.

• Color• Texture• Mechanical properties• Electrical properties• Optical properties • And more

Functional color parts:printed wear indicators

Future advantage Volumetric pixel (voxel)

Microns

Microns

Microns

Voxel control to drive radical changes in 3D printed use cases

Control properties of anHP 3D printed part at a voxel level

Printed conductors

Printed strain gauge for load sensing

New rack

Worn rack


Summary: Poised with breakthrough technology,driving the next industrial revolution

1) HP internal data and projections based on currently available data and estimates for year 2021.

Creating a platform for the world to innovate with HP

Open materialsEcosystem partnerships

Lead the next industrial revolution with innovative technology in 3D printing

Compelling productsand solutions based on disruptive technology

Rapidly growingmarket

$18BTAM1

growing at +30%



Thank you

Stephen Nigro: 3D Printing

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