3d Systems Corporation · NYSE:DDD
3d Systems — Investor Presentation (January 2007)
63 slides from 3d Systems's investor presentation, Jan 18, 2007
Slide 1: Transitioning from Restructuring to Sustained Profitable Growth
r gitioning from Restructuring eel Abe N. Reichental President & Chief Executive Officer January, 2007 Ey) Transform Your Products, SvSTEMS
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 may involve known and unknown risks, un
Slide 3: Embracing Our Customers
Embracing Our Customers Creating Value Enhancement Customer Value Proposition: Innovative, Economical and Practical Product Development and Manufacturing Solutions That Transform the Way Our Customers Design, Develop and Manufacture New Products... Supported By Comprehensive and Diversified Technolo
Slide 4: Solving Customer Needs in Multiple Marketplaces: Industrial
Solving Customer Needs in Multiple Marketplaces: Industrial CATERPILLAR FLUKE, CAA) MOTOROLA ROBERTODEMEGLIO Experience ©
Slide 5: Solving Customer Needs in Multiple Marketplaces: Consumer
Solving Customer Needs in Multiple Marketplaces: Consumer LEVER i ITALIA Experience Polaroid § EMERSON
Slide 6: Solving Customer Needs in Multiple Marketplaces: Automotive
Solving Customer Needs in Multiple Marketplaces: Automotive DAIMLERCHRYSLER % uTAutomotive
Slide 7: Solving Customer Needs in Multiple Marketplaces: Aerospace
Solving Customer Needs in Multiple Marketplaces: Aerospace Z Pratt & Whitney WE 5 Untod Tecnrcioges Compary € emerna a AIRBUS
Slide 8: Solving Customer Needs in Multiple Marketplaces: Motorsports
Solving Customer Needs in Mu! le Marketplaces: Motorsports S \POGGIPOLINIT eae ROBERT YATES
Slide 9: Solving Customer Needs in Multiple Marketplaces: Service Providers
Solving Customer Needs in Multiple Marketplaces: Service Providers Dynacept Corpora SOLID CONGU FINEL IE a ~ @) Harvest ] Qi Technologies INCS INC. Butler Tool & Design, Inc svSTEMS
Slide 10: Solving Customer Needs in Multiple Marketplaces: Healthcare
Solving Customer Needs in Multiple Marketplaces: Healthcare (FH) sendia National Laboratories WIDEX hearing instruments, PHONAK hearing systems Walter Reed Army Medical Center “tear Experience
Slide 11: u & o a g i v S se
u & o a g i v S se 2
Slide 12: Customer Value Enhancement
Customer Value Enhancement Enhancing Competitiveness Through Superior Products 3-D Printing ithos Laser Sintering ‘Accura® plastics & composites: Accyra® 25, Bludstone™ svSTEMS
Slide 13: Bottom Line: Sustainable Profitability
Bottom Line: inable Profitability Is The Most Import licator of The Health of Our Busi: 2 g i fe Intend to Achieve Sustained Profi
Slide 14: Expect Business Fundamentals to Normalize
g : g 5 Expect Business Fundamentals to Normalize Achieving Sustained Profitability Profitability Average Selling Prices expected to be maintained Cost Of Goods Sold impacted by friction costs, expected to normalize Special Operating Expenses reflect relocation, ERP, restatement, SOX Gross Profit ex
Slide 15: Expected Cost Reductions and Productivity Leverage
Expected Cost Reductions and Productivity Leverage Achieving v g 2 A i Sustained Profitability Facilities consolidation: $2.5mm annual savings Employee Productivity Revenue Per Employee" Preferred stock conversion: E $1.6mm annual savings * 6% convert partial conversion: $0.4mm annual savings Lean m
Slide 16: Improving Revenue Mix and Profitability
Improving Revenue Mix and Profitability Achieving Sustained Profitability Revenue Baske > Materials: Highest margin in the mix: growing 20+% > Service: Lowest margin in the mix: flattening > Systems: New systems growing at attractive margins >» Rapid Manufacturing: Drive materials volume consumption
Slide 17: Industry Growth Trend
Industry Growth Trend Achieving Sustained Profitability industry Materials Revenue Grow 30's Materials Revenue Growth $250 ce aa... ce [ie inition $200 « ~ $150 Bed 0 r 22% CAGR 3 v $300 » ¥ a 50 7 ‘ 9 $0 ° a 2001 2002” 2009” 2008 2005 20N6e 200 meet esa a Source: Wohlers Associates, Inc Source: 3D
Slide 18: Operating Culture
Operating Culture Achieving Sustained Profitability ue with minin and high fi Operating System Sustainable Current future Performance performance Management System The process, organization an¢ Performance-ori and orga
Slide 19: Increasing Stockholder Value
Increasing Stockholder Value Achieving Sustained Profitability ‘Actual 2003-2004 ~=—-200 Year __Year Targ Revenue 100% | 100% | 100% 100% Gross profit 39% 45% | 45% 50-55% Operating expense 53% 40% | 39% Operating income (149%) income available to ¢ stockholders (2406) 1% 6% Depreciation and amortiz
Slide 20: Balanced Score-Card Management System
Balanced Score-Card Management System Achieving Sustained Profitability + Operating Income $/%% Wa STRATEGIC PILLARS SS. + Free Cash + Direct Margin $/%% + customer satisfaction * Customer Complaints. n + on-time & Complete af Dotivenes 23 ‘080 25 pean seleety BH : + Yields a + Cost/kg « jglgnnraien
Slide 21: Bottom Line: How Do We Intend to Compete
Bottom Line: ition Could Undermine Our Technolo Marketplace Gains... 2 g i ow Do We Intend to Compete and Pi
Slide 22: Customer Value Underscores Competitive Advantage
me differenc Experience = Price Customer Value Underscores Competitive Advantage Exceptional Value Drives Growth and Profitability Competition: Confined by single technology plays > 3D Systems Growth Customer Perceived Value
Slide 23: Comprehensive Competitive Cards
Comprehen: Three Proprietary Technology Platforms Extensive Direct/Indirect Capabilities Disruptive Technologies . . . Desktop > All competitors world-wide Materials Extensive Chemical Formulating re Competitive Cards Dedicated chemical manufacturing facility Proprietary cartridge technology + SYMYX
Slide 24: Compete On All Dimensions
Experience Comprehensive Competitive Cards Compete On all Dimensions Technology and innovation . . . Leapfrog the competition Cost . . . Continuous improvement is a race without a finish line Customer service . . . Built on high quality and user friendliness Marketing and brand management . . . Best
Slide 25: 3D Systems SLA Part Detail/Accuracy
3D Systems SLA® Part Detail/ Accuracy 8 8 a § Customer Value Underscores Our Competitive Advantage NY SEE source: FinoLine Prototyping Competitive Web Page SYSTEMS
Slide 26: Objet Geometries Poly-Jet Part Detail/Accuracy
Objet Geometries Poly-Jet Part Detail/ Accuracy Experience © Accuracy Underscores Our Compe’ svSTEMS ‘Source: FineLine Prototyping Competitive Web Page
Slide 27: Stratasys FDM Part Detail/Accuracy
Stratasys FDM Part Detail/ Accuracy svSTEMS
Slide 28: Bottom Line: How Do We Intend to Grow?
Bottom Line: ible Profitable Growth Is The Bigg Assured Value Creator... Experience (iia How Do We Intend to Grow?
Slide 29: Trends
Trends ionary id Revoluti ‘ionary an it Industry Evolut ignifican' Si 4ymoiB anuane. aAliq sjeliayeu pue suaysAs Buiunyoejnuew pidey ABojouysa) aandnisig MOz$> dSW equ OS$> 0} eull;ep ds uondope Buqulig G-¢ 2002 ABojouys9} @W1S s]UaAU! SWAaySAS GE 1986 Source: Wiliam Blair and 30 Systems Comoration
Slide 30: Building Growth Infrastructure Investment $17MM
sila = site Buildi jing Growth Infrastructure 006 Investment $17MM ti jated HQ and R&D fai ased ERP system Exclusive materials’ development agreement. Symyx ‘Systems’ assembly operations outsourced to integrated suppliers Proprietary materials’ production consolidated in Marly, Switzerland Supply ch
Slide 31: Extending and Growing The Core
Extending and Growing The Core 5 q > Build where we're > Build key customer > Imagine, dream and & strong..SLA® and SLS® partnerships invent 3 > Get scale and build > Customization as tool > Gee ines to u relative share in Rapid i the future, disruptive a Manufacturing and De ore ane rekavention; te
Slide 32: Extending and Growing The Core
Extending and Growing The Core Leveraging Our Innovation Engine ing Our Customers’ Success and Compet > Leveraging innovation to provide performance-differentiated products > Enhancing customer efficiency in product development and manufacturing ‘ing Our Customers’ Bottom Line . > Enabling better se
Slide 33: Creating Enabling Nurturing Growth Environment
Creating Enabling Nurturing Growth Environment Sustained lucts Profitable XN Growth > Stimulating and Al > Lean Methods celebrating | < creativity > sixsigma > > Supply Chain ® Fostering quaily o Improvements bee aad > Focusing RAD Product Operational BAOES us o spending on core QOURMCECH) Excellenc
Slide 34: Creating Enabling Nurturing Growth Environment
Creating Enabling Nurturing Growth Environment eo 5 a = 8 ri + Customer Training + Team 3D Learning + Reseller Training + 2-year RP&M Degree
Slide 35: Differentiated Brands & Proprietary Portfolio Enables Growth
Differentiated Brands & Proprietary Portfolio Enables Growth 2003 Core Products 2007 Current Products svSTEMS
Slide 36: Alliances and Partners
inces and Partners i M Somos ’ Corporation H lidimension Ltd 3 - ¥ Alliances/Partners . 8 g ensland University Aus Global Collaboration 3D Systems
Slide 37: Leveraging Our Presence, Position and Portfolio
me differenc Experience Extending and Growing The Core Leveraging Our Presence, Position and Portfolio Beta Projects at ‘Customers Customer/Prospect Web Contacts’ Sales and Marketing Professionals Annual Customer Application Development Field Visits Engineers Technical Service Customer Hot-Line Engi
Slide 38: Growth Program: 3-D Printing
Growth Program: 3-D Printing > Proof of concept > Functional testing > Product cost reduction > Purchasing and quotation > Product mockups > Precision casting > Marketing tools » Architecture > Education
Slide 39: 3-D Printing Growth Drivers
3-D Printing Growth Drivers ‘(Based on units) Global Engineering m.. Population 2,600,000 c f é 3 yo uv y ‘ " { / Plotters & uv 28.5 Million. jf args Forman 8 Engineers er 2 “100,000 A g
Slide 40: Rapid Manufacturing Growth Drivers
Rapid Manufacturing Growth Drivers > Hearing aids > Aerospace > Military » Orthodontics > Dental study models > Dental drill guides > Automotive > Medical/prosthetics > Footwear » Tools and fixtures 3 > Jewelry manufacturing Ee | a > Formula One/NASCAR x Wi
Slide 41: Manufacturing Growth Drivers
Manufacturing Growth Drivers Global CAPEX Production Machinery q $4.4 Billion -hUC<“‘~;<2 il y y sition” Traditional Manufacturing Processes <2 > $15 Billion \ ~$4 Billion 4] Traditional e Processes sie differen Experience d WB source: 30 systems and ARC Advisory Group
Slide 42: Extending the Base With Common Sense
Extending the Base With Common Sense eo 5 a = 8 ri Defend and extend the core Build scale and sealabiity Build relative share Leverage presence Develop disruptive technologies Build long-term competency Adhere to core knowledge and experience Invest in ‘adjacencies Complementary tucking > Adjaceney
Slide 43: M&A Strategy
Fits tightly defined strategic needs in the core or complementary adjacencies Bolt-on acquisitions in market areas we understand Familiar channels of distribution Acquisition targeted to bring technology, market access or scale Target top brands as well as appropriately chosen secondary brands M&A S
Slide 44: Customer Value Enhancement
Customer Value Enhancement Leveraging Brands and Improving Presence eo 5 a = 8 ri
Slide 45: Balanced Model Approach
Balanced Model Approach Increase Stockholder Value = Investing in our core growth programs 2 > Rapid Manufacturing 2 > 3-D Printing g « Intelligently pursuing growth elsewhere in the pyramid M > Digital dentistry — >» Aerospace manufacturing = M&A strategy to enhance core growth and fill gaps > Comp
Slide 46: Summary
Core business, feed winners and starve the losers Scale where market opportunities are large: Printing and Manufacturing Increase relative share in smaller verticals: Jewelry and Dentistry Tactical globalization Drive technology to fuel market leadership Tradeoffs of printers’ profitability and grow
Slide 47: Investment Thesis
Investment Thesis * Leading industry position and technology * Energized, experienced management team * Clear priorities... demonstrated execution + Powerful brands, deep customer relations, diverse base + Global presence, reach jerentiated product portfolio + Broad patented and proprietary technolo
Slide 48: Slide 48
Slide 49: Announcing the V-Flash Desktop Modeler
| Ala Alash And...we are not done yet... Announcing the = One-of-a-kind lA = Revolutionary Jglash = Disruptive DESKTOP MODELER New Technology meee Coming to Market This Summer...
Slide 50: V-Flash Desktop Modeler
lash DESKTOP MODELER . TRANSFORM YOUR PRODU Announcing
Slide 51: V-Flash Disruptive Technology Platform
Aflash Disruptive Technology Platform Coming to a marketplace near you this summer Film Transfer Imaging Technology Disruptive Fourth Technology Platform Revolutionary Exciting V-Flash™ Modeler fhat is FT] Simple, Fast, Compact Affordable Desktop FT!
Slide 52: V-Flash Disruptive Technology Platform
Sefer soot Disruptive Technology Platform Coming to a marketplace near you this summer GQUNFSS Build models in hours @iicempse Fits on your desktop @iaiorabiey Priced at $9,900 With our fast, compact V-Flash™ Modelers you can build ready-to-use, 3-D models in hours on your desktop. Priced at $9,900,
Slide 53: V-Flash Disruptive Technology Platform
eer sennt Disruptive Technology Platform Coming to a marketplace near you this summer 2-3X Faster > Today's 3-D Printers Priced @ $9,900 SLA®-like Part Quality Office and Home Desktop Plug & Play Easy Operation Consumable Parts ream It. Design
Slide 54: Film Transfer Imaging (FTI) Technology
Film Transfer Imaging (FTI) Technology Coming to a marketplace near you this summer flash” = Proprietary materials dispensing = Precision materials metering = State-of-the-art Flash imaging = Disposable build pad with integrated supports = Dry SLA®-like part
Slide 55: V-Flash Fast, Affordable, Compact Simple Safe Desktop Office
Aflash Fast, Affordable, Compact Simple Safe Desktop Office Coming to a marketplace near you this summer = Standard office power requirements = Standard computer connections = Quiet, simple operation = Remote operation, diagnostics = Ready-to-use SLA®-like parts = Safe handling, use and waste dispos
Slide 56: V-Flash Proprietary Engineered Cartridge
Aflash Proprietary Engineered Cartridge Optimized Performance = Easy, quick clean replacement = Embedded material transfer = Integrated metering/dispensing = Minimal waste clean disposal = Consumable disposable FTI = Reduced hardware cost
Slide 57: V-Flash Desktop Modeler
flash V-Flash™ Desktop Modeler User-Friendly Operation... Affordable Total Cost of Ownership = User maintenance - Plug and play spare parts - User installable assemblies - Disposable FTI cartridge = Disposable build pad — On-board and web diagnostics = Affordable replacement parts = Flash unit = Ima
Slide 58: V-Flash Customer/Company Economical Model
V-Flash™ Customer/Company Economical Model Coming to a marketplace near you this summer Affordable price Fast and productive Quality parts Office compatible Easy-to-use Economical to operate Accelerated adoption >Material consumption Deeper penetration Broader acceptance Shorter sale cycle > Usage f
Slide 59: Competitive Positioning
Competitive Positioning jacemen' Performance
Slide 60: Commercialization Road Map
Commerci: ‘ion Road Map InVision® SR InVision® HR InVision® LD —_InVision® DP h Verticals Retail InVision® SR InVision®HR InVision® LD InVision® DP h”
Slide 61: Building V-Flash Community
Building V-Flash™ Community id brand recognition jit ‘best’ resellers ablish V-Flash™ comm www. modelin3d.com
Slide 62: Significant Industry Trends
Significant Industry Trends SLA Large-Frame 3-D Printing Desktop
Slide 63: Thank You
Searchable text section of graphics shown above Transitioning from Restructuring to Sustained Profitable Growth Abe N. Reichental President & Chief Executive Officer January, 2007 [LOGO] Transform Your Products Forward-Looking Statements Certain statements made in this presentation that are not stat