Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q4 2016 Earnings Presentation
24 slides from Stratasys's earnings presentation, Mar 9, 2017
Slide 1: Stratasys Q4 2016
“ STRATASYS Q4 2016 March 9th, 2017
Slide 2: Q4 2016 Conference and webcast details
{Stratesys Q4 2016 Conference and webcast details Speakers Live Dialin Information Han Levin CEO Lilach Payorski CFO ‘Shane Glenn VP, Investor Relations Primary Dial-in: 855-319-2216 International Dial- in: 503-343-6033 Participant Passcode: 73596435 Live webcast and replay:
Slide 3: Forward Looking Statement
Forward Looking Statement The statements in this presentation regarding Stratasys’ strategy, and the statements regarding its projected future financial performance, including the financial guidance conceming its expected results for 2017, are forward-looking statements reflecting management's curre
Slide 4: Use of Non-GAAP financial information
Use of Non-GAAP finan | information ‘The following non-GAAP data, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our resul
Slide 5: Ilan Levin - CEO Opening Remarks
Ilan Levin - CEO Opening Remarks » Ongoing efforts to improve customer engagement for product development » Aligning cost structure with significant improvement in operating profit and cash generation » Transforming business into customer-centric organization targeting key vertical markets » High pr
Slide 6: Financial Update and Guidance
Lilach Payorski - CFO Shane Glenn — VP of Investor Relations Financial Update and Guidance
Slide 7: Financial Results
Financial Results Stratasys, Ltd. Total Revenue 11% ‘Gross Prof (Lesa) 108 Smarain 12.7% ‘Operating Proft 87.) 204 Revenue | Exes ites ste nas Pretax roft(tess) | (1988) 205 GAAP Gross Profit 96% YOY | «margin 108.0% 208.0% Tax Rate 2% as GAAP Operating Profit 84% YOY ane EaITOA Gena) a7a.0% Netinco
Slide 8: Financial Results - Revenue
Financial Results - Revenue Stratasys, Ltd. Product Revenue 1 2% YOY star sia su19 $128 ou stem Revenue B 4% YOY Consumable Revenue 1 11% YOY Service Revenue ili Flat ais aris 246 346 eats Customer Support Revenue 1 8% YOY (S in millions unless noted otherwise) Stratasys
Slide 9: Financial Results — Gross Margin Trends
Financial Results — Gross Margin Trends Stratasys, Ltd. aan aris 246 “ross margn nce mpament cages of S102MtIn OFS aants ans 216 ass ass © Product Gross Margin © Service Gross Margin @ Total Gross Margin sree / Heo mar LOLTENS coMeNN Stratasys
Slide 10: Financial Results — Operating Margin Trends
Operating Exp. (GAAP) | 53% YOY R&D Exp. (GAAP) J 24% YOY SG&A Exp. (GAAP) J 58% YOY Financial Results — Operating Margin Trends Stratasys, Ltd. Operating Exp. (non-GAAP) J 11% YoY R&D Exp. (non-GAAP) J T% YOY SG&A Exp. (non-GAAP) 12% YOY (Sin milions unless noted otherwise) “acts Sa 123% 165% 408.3
Slide 11: Financial Results — Cash Flow from Operations & Balance Sheet
Financial Results — Cash Flow from Operations & Balance Sheet Stratasys, Ltd. ($ in millions) Cash from (used in) operating activities si7 200 (219) 020 Selected balance sheet items: ($ in mitions) Cash, Cash Equivalents & Bank Deposits [Accounts Receivable soso v0.4 Inventories ws Net Working Capit
Slide 12: Lilach Payorski - CFO Financial Summary
Lilach Payorski - CFO Financial Summary » Recognized improvements in non-GAAP operating and grow margins — driven by improved operational performance and customer engagement > Pleased with strong growth in recurring product and service revenue — system utilization remains stable » Focusing investmen
Slide 13: Revenue & Earnings Guidance — Updated
Revenue & Earnings Guidance — Updated ‘Reconciliation of GAAP to Non-GAAP overs Som a $645 - $680 ae Eo ou ttn ener ieee Te GAAP DIBA prem s aaee amen ams $(1.00)-$(0.73) eect ene Non GAAP Died EPS See ees mou inane sneso $0.19 - $0.37 wan on 42 smumeve eso mma suman coum Stratasys
Slide 14: Strategic Overview
STRATEGIC OVERVIEW
Slide 15: Customers
Customers. ¥ Largest installed base Strong adoption in key target Industries Strong Reseller Network (. #082 AIRBUS > pinsKE marmenres / Stratasys ing Value Through Leadership Technology ¥ FDM and PolyJet, ¥ Leading 3D Printing Technologies ¥ Proven, Stable, Simple, Widely Adopted ¥ Workflow Solutio
Slide 16: Application-Driven Product Development
Application-Driven Product Development Contin o Lead the Deepen & Disrupt Penewate High-End RP Manufacturing Tooling Manufacturing ‘Smart F123 Series — Use-case centric development Certification for Ultem 9085 ‘optimizing workfiow eapabilty, for specific tooling applications _- meeting aerospace pro
Slide 17: Leveraging Strategic Collaborations
Leveraging Strategic Collaborations SIEMENS Integration Siemens’ Digital Factory (Robotic Composite ) and our solutions for production environments Bs passages “ !megration with Dassault Systemes SIMULIA software optimizing end-use-part 1S POSES designs for weight and strength in aerospace and autom
Slide 18: Recognized Leadership in Target Markets
Recognized Leadership in Target Markets acre “ Production of Infinite-Build 3D, low-volume, customized, lightweight flight parts, developed in collaboration with Boeing to meet Aerospace specifications @airRBus VY Certification of ULTEM™ 9085 material for the production of flight parts ¥ Official Su
Slide 19: Advanced Rapid Prototyping — Stratasys F123 Series
Advanced Rapid Prototyping — Stratasys F123 Series ‘Smarter & Reliable Protatyping — from concept to design varication to functional performance Concept modeling using law-cost PLA materials alongside thermoplastic materials. Ge Easy to use, office friendly 9 9 Abilty to do the complex with accuracy
Slide 20: Serving Professional Rapid Prototyping Across Categories
Serving Professional Rapid Prototyping Across Categories =-+@ ¥ Value-based use cases and Y Leading brand for entry level applications desktop printing ¥ Leverage strong history of AM ¥ Comprehensive software technology innovations with solutions and largest online deep customer base ‘community 58 e
Slide 21: Ilan Levin - CEO Summary & Outlook
lan Levin - CEO Summary & Outlook > Making significant progress in transforming into customer-centric organization > Leveraging extensive knowledge and capabilities to enhance customer relationships > Pleased with initial reception to F123 Series and believe Rapid Prototyping segment remains attract
Slide 22: We Are Stratasys, The 3D Printing Solutions Company
WE ARE STRATASYS, THE 3D PRINTING SOLUTIONS COMPANY
Slide 23: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. ToL Sarre | $50,334 c40 Sagi zing income (Loss. TT2) ge13) [115.708 [zat rse7ar7 | — (16.807) “toons (Loss| stbuabie TECMEPRD 219 or sa 70 352700 —[_— aoa noms (Less) per diuied Shave stibvabe Tz 39 S170 3028 2e8s 01 a a rohan
Slide 24: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. $2008 $55,072 729,188) (ier 00)_| 178207 (ia761) (232.343) | 231,647 31030), 248) $23.540, $143,618 §40.733 $173,527 $231,647