3d Systems Corporation · NYSE:DDD
3d Systems — Investor Presentation (November 2020)
23 slides from 3d Systems's investor presentation, November 2020
Slide 1: Investor Presentation
Investor Presentation November 2020 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, ob
Slide 3: New Leader. New Future.
New Leader. New Future. Dr. Jeffrey Graves is President and CEO of 3D Systems and joined the company on May 26, 2020. Prior to joining 3D Systems, from 2012 to May 2020, he served as CEO, President and Director of MTS Systems Corporation, a global supplier of test, simulation, and measurement system
Slide 4: 3D Systems' Purpose Statement
3D Systems' Purpose Statement We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products. 4 4
Slide 5: Transformation Framework
Transformation Framework Strategic Divest/ Reorganize Restructure Purpose Invest • We are the leaders in • Focus on Key • Resizing + other cost • Divest non-core assets enabling additive Applications within reduction measures = and Invest for growth manufacturing Healthcare and approx. $100 million
Slide 6: Market Focus
Market Focus Healthcare Solutions Industrial Solutions Dental Aerospace & Defense Medical Devices Transportation & Motorsports Simulations Investment Castings Surgical Planning Jewelry Consumer Durables & Electronics Focus on Key Applications within these Markets 6
Slide 7: Full Solution Provider
Full Solution Provider SERVICES & HARDWARE & GLOBAL PRODUCTION SOFTWARE MATERIALS REACH • Application experts • Full range of 3D • Service Experts • Deep and diverse printers to address AM across 5 continents experience in • Customer Innovation needs in production parts and Centers (CIC) for ◦ Wax •
Slide 8: Why AM? Tangible Benefits to AM Design
Why AM? Tangible Benefits to AM Design 8
Slide 9: How Big is the Market? AM Industry Growth Estimate
How Big is the Market? AM Industry Growth Estimate SCALE OF AM GROWTH • Over the next 5 years, market is expected to grow on average at 24% CAGR, reaching $35B by 2024 INDUSTRY GROWTH DRIVERS • High focus to introduce new designs & business models that take full advantage of the manufacturing freedo
Slide 10: Healthcare Case Study: VA
Healthcare Case Study: VA 3D Systems will assist the VA with establishing additive manufacturing production capabilities for medical devices to improve treatment for U.S. Veteran patients 10
Slide 11: Healthcare Case Study: Orthopedic
Healthcare Case Study: Orthopedic Customer Need An economically viable orthopedic implant with optimized surface characteristics and mechanical properties for superior performance. The Challenge with Traditional Manufacturing 'Machining-plus-coating' manufacturing processes lead to poor surface qual
Slide 12: Industrial Case Study
Industrial Case Study Customer Need State-of-the-art cast metal parts with highly complex geometries to enable improved levels of performance at reduced cost The Challenge with Traditional Manufacturing Traditional investment casting production methodology limits geometric design options and involve
Slide 13: Revenue by Market
Revenue by Market $ in millions 19.7% 21.3% 6.1% (23.8)% 13
Slide 14: Third Quarter Summary
Third Quarter Summary Third Quarter (in millions, except per share amounts) 2020 2019 Revenue $ 135.1 $ 155.3 • Revenue decrease 13% YoY Operating Loss (67.6) (11.9) • Revenue increase 21% vs Q2 2020 Net Loss (72.9) (16.8) • $11.9M of restructuring related charges Loss Per Share $ (0.61) $ (0.15) •
Slide 15: Operating Expenses
Operating Expenses • Non-GAAP operating expenses decreased 15.2% compared to the third quarter of the prior year as cost actions are implemented 15 See appendix for a reconciliation of non-GAAP operating expenses.
Slide 16: Cash and Liquidity at September 30, 2020
Cash and Liquidity at September 30, 2020 • $75 million of cash and cash equivalents • Term Loan of $22 million • $100 million undrawn revolver with $31 million of availability • Continue to focus on reducing inventories • ATM Update ◦ Not planning to issue additional shares under ATM in Q4 ◦ Followi
Slide 17: Summary
Summary Our Transformation Journey: • Reorganization complete • Restructuring continues, on track to achieve $60M run-rate cost savings by end of 2020 • Strengthening balance sheet • Sales improving and expect continued strength of the business moving forward 17
Slide 18: Thank You
Thank You Find out more at: www.3dsystems.com 1 18 8 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 19: Appendix
Appendix ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 20: Non-GAAP Reconciliation - Operating Loss
Non-GAAP Reconciliation - Operating Loss Third Quarter Non-GAAP Operating Loss Quarter Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Operating income (loss) $ (67.6) $ (11.9) $ (119.7) $ (52.4) Adjustments: Amortization, stock-ba
Slide 21: Non-GAAP Reconciliation - EPS
Non-GAAP Reconciliation - EPS Third Quarter Non-GAAP Earnings (Loss) per Share Quarter Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Net loss $ (72.9) $ (16.8) $ (129.8) $ (65.2) Adjustments: Amortization, stock-based compensatio
Slide 22: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM Quarterly 2019 and 2020 Non-GAAP Gross Profit & Margin 2019 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 September 30 December 31 March 31 June 30 September 30 GAAP Gross Profit $ 65.7 $ 73.3 $ 67.3 $ 71.8 $ 57.1 $ 35.2 $ 58.6 GAAP Gross Profit
Slide 23: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense Quarterly 2019 and 2020 Non-GAAP Operating Expenses 2019 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 September 30 December 31 March 31 June 30 September 30 GAAP SG&A Expenses $ 65.1 $ 71.7 $ 58.3 $ 59.3 $ 56.1 $ 52.0 $ 59.1 GAAP R&D Exp