3d Systems Corporation · NYSE:DDD
3d Systems — Investor Day (June 2013)
73 slides from 3d Systems's investor day presentation, June 2013
Slide 1: Manufacturing the Future – Investor Day June 2013
MANUFACTURING THE FUTURE℠ INVESTOR DAY JUNE 2013 WWW.3DSYSTEMS.COM NYSE:DDD
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance or produc
Slide 3: Agenda
AGENDA 3DS Overview | Avi Reichental, CEO Accelerating 3D Printers Adoption | Michele Marchesan VP&GM, 3D Printing Reinventing the Engineer's desktop| Ping Fu, CSO Impact of 3DS Solutions on Patients Lives | Andy Christenson, CEO Medical Modeling Democratizing Access| Cathy Lewis, CMO Growth and Exp
Slide 4: Overview
OVERVIEW AVI REICHENTAL, CEO WWW.3DSYSTEMS.COM NYSE:DDD
Slide 5: Key Differentiators
KEY DIFFERENTIATORS Unmatched portfolio + leading brands + expanding channels Technology + financial strength and flexibility Open-ended growth opportunities Innovative business model with end-to-end solutions Focused, balanced growth initiatives Experienced management team 5 5
Slide 6: Disruptive | Transformative | Impactful
DISRUPTIVE|TRANSFORMATIVE|IMPACTFUL THE WAY WE DESIGN | WHAT WE CREATE | HOW WE MANUFACTURE N 6
Slide 7: Convergence Informs Growth
CONVERGENCE INFORMS GROWTH $ in billions 3D Printer Forecast Product Lifecycle Management (PLM) Forecast $12.0 $60 $10.0 $50 CAGR: 11% $8.0 CAGR: ~23% $40 $6.0 $30 $4.0 $20 $2.0 $10 $0.0 $0 2013 2015 2017 2019 2020 2012 2013 2014 2015 2016 Source: Wohler’s Report Source: CIMdata • Our solutions repl
Slide 8: Favorable Dynamics
FAVORABLE DYNAMICS FACTORS ACCELERATING ADOPTION SOURCE:ENGINEERING.COM R&D spend Time-to-market Complexity Democratization Sustainability 8
Slide 9: We Live in Exponential Times
WE LIVE IN EXPONENTIAL TIMES REDEFINES MOORES’S LAW: COST | SPEED | CONVERGENCE SOURCE: Did you know 3.0 9
Slide 10: Effective Growth Pillars
EFFECTIVE GROWTH PILLARS ACCELERATE 3D PRINTER ADOPTION Organic REINVENT THE EXPAND Ecosystem R&D ENGINEER’S QUICKPARTS DESKTOP SERVICE Integrated Acquired platforms R&D BUILD GROW CONSUMER HEALTHCARE PRESENCE SOLUTIONS 10 10
Slide 11: Democratization Broadens Access
DEMOCRATIZATION BROADENS ACCESS LIVINGROOM | CLASSROOM | GARAGE | DESKTOP | LAB | FACTORY DESIGN | MODELING PROTOTYPING | MANUFACTURING Price: $1,300 - $20,000 $20,000 - $250,000 $250,000 - $950,000 11
Slide 12: Materials Accelerate Adoption
MATERIALS ACCELERATE ADOPTION 100 MATERIALS: PLASTIC | NYLON | METAL | RUBBER | WAX | COMPOSITE High-Definition | Snap-Fit High- Impact | Light-Weight Durable | High-Temperature Biocompatible Conformal Structures Casting 12
Slide 13: Services Multiplex Accessibility
SERVICES MULTIPLEX ACCESSIBILITY CAPACITY | VARIETY | UTILITY | ACTIVITY Instant online quoting Latest additive and Quick-turn manufacturing with proprietary, traditional capabilities in services integrated sales and nine locations worldwide manufacturing platform 13 13
Slide 14: Design Tools Drive Productivity
DESIGN TOOLS DRIVE PRODUCTIVITY VOXEL CAD | HAPTICS | MODEL-SCAN-PRINT WORKFLOW | VERIFICATION 14
Slide 15: Collective Wisdom Shapes Culture
COLLECTIVE WISDOM SHAPES CULTURE Exponential organizations thrive on complexity Inventiveness must become a way of life for every function Out of box thinking requires the removal of the box… take away the familiar tools Business model innovation is as important as technology innovation Aligning tea
Slide 16: Presence Extends Reach
PRESENCE EXTENDS REACH GLOBAL | LOCAL | NETWORKED Americas Europe • Rock Hill, SC • Benelux • Atlanta, GA • England • Andover, MA • France • Denver, CO • Germany • Herndon, VA • Italy • Langhorne, PA • Switzerland • Lawrenceburg, TN • Morrisville, NC Asia-Pacific • New York, NY • Australia • Richard
Slide 17: Leadership Reflects Entrepreneurship
LEADERSHIP REFLECTS ENTERPRENUERIALSHIP Michele Marchesan Ping Fu GM 3D CSO Printing Kevin McAlea Avi Reichental GM Advanced CEO Manufacturing Damon Gregoire CFO Chuck Hull Rajeev CTO Kulkarni GM Cubify Ziad Abou GM Calvin Hur Quickparts GM Geomagic Services Solutions Cathy Lewis CMO Diana Kalisz CD
Slide 18: Manufacturing Drives Growth
customers include Alcoa, Benteler, Hitachi, Oakley, Panasonic, Rolls Royce, Samsung and Sony. MANUFACTURING DRIVES GROWTH Selected Rapidform Customers by Geography Amer icas Europe Asia CY2010 Revenue by Top Customers Geographic Distribution of Customers (a) Customer Revenue (US$) % Total 18 18
Slide 19: Accelerating 3D Printers Adoption
ACCELERATING 3D PRINTERS ADOPTION MICHELE MARCHESAN, VP & GM 3D PRINTERS WWW.3DSYSTEMS.COM NYSE:DDD
Slide 20: Numbers Come From Numbers
NUMBERS COME FROM NUMBERS 500 ONLINE RESELLERS DIRECT XX XX DIRECT APPLICATION SALES ENGINEEERS MANAGERS INSTORE ONLINE RETAILERS RETAILERS XX CHANNEL MANAGERS 20 20
Slide 21: Print Engines Fuel Use Case Growth
Print Engines Fuel Use Case Growth MODEL | PROTOTYPE | COMMUNICATE | TOOL | CAST | MANUFACTURE SLA SLS SLM FTI CJP PJP MJP 21 21
Slide 22: Numbers Come From High Res Parts
NUMBERS COME FROM HIGH RES PARTS Picture of large UHD plastic part 22
Slide 23: Numbers Come From Functional Materials
NUMBERS COME FROM FUNCTIONAL MATERIALS 23 23
Slide 24: Numbers Come From Throughput & Accuracy
NUMBERS COME FROM THROUGHPUT & ACCURACY High throughput with superior accuracy & resolution .6mm 24
Slide 25: Numbers Come From Size and Speed
NUMBERS COME FROM SIZE AND SPEED 1500 x 750 x 550 mm While preserving fine-feature details 25
Slide 26: Numbers Come From Production Grade
NUMBERS COME FROM PRODUCTION GRADE 26
Slide 27: Numbers Come From Broad Range of Use Cases
NUMBERS COME FROM BROAD RANGE OF USE CASES 27
Slide 28: Numbers Come From Advanced Manufacturing
NUMBERS COME FROM ADVANCED MANUFACTURING 28 28
Slide 29: Numbers Come From Multicolor
NUMBERS COME FROM MULTICOLOR 29 29
Slide 30: Reinventing the Engineer's Desktop
REINVENTING THE ENGINEER’S DESKTOP PING FU, VP & CSO WWW.3DSYSTEMS.COM NYSE:DDD
Slide 31: Intuitive Tools Deliver Productivity
INTUITIVE TOOLS DELIVER PRODUCTIVITY VOXEL CAD | HAPTICS | MODEL-SCAN-PRINT WORKFLOW 31
Slide 32: Design Software – Geomagic Freeform Plus
DESIGN SOFTWARE – GEOMAGIC FREEFORM PLUS Touch enabled organic design software • Powerful, Flexible Industrial Design Robust voxel-based modeling Complete design freedom combined with manufacturability • Touch-based haptic interface Digital sculpting makes creating beautiful shapes easy • The ideal
Slide 33: Design Software – Geomagic Design
DESIGN SOFTWARE – GEOMAGIC DESIGN 33
Slide 34: Design Software – Geomagic Verify | Control
DESIGN SOFTWARE – GEOMAGIC VERIFY | CONTROL 34
Slide 35: Next Generation 3D Authoring Platform
Next Generation 3D Authoring Platform 35
Slide 36: Reinventing the Engineers Desktop
REINVENTING THE ENGINEERS DESKTOP 36 36
Slide 37: 3DS Solutions Impact on Patients' Lives
3DS SOLUTIONS IMPACT ON PATIENTS’ LIVES ANDY CHRISTENSON, CEO MEDICAL MODELING WWW.3DSYSTEMS.COM NYSE:DDD
Slide 38: Democratizing Access
DEMOCRATIZING ACCESS CATHY LEWIS, CMO WWW.3DSYSTEMS.COM NYSE:DDD
Slide 39: Platform and Ecosystems
PLATFORM AND ECOSYSTEMS Source: Makie Lab Source:You Tube 39
Slide 40: Re-Inventing Retail
RE-INVENTING RETAIL IMMERSIVE | PERSONALIZED | CUSTOMIZED | CO-CREATED SOURCE: DISNEY 40
Slide 41: Reshaping Digitization
RESHAPING DIGITIZATION SENSING | PHOTOGRAMETRY | SCANNING 41
Slide 42: Recasting Interactions
RECASTING INTERACTIONS KINECT | GESTURE | LEAP SOURCE:FRONT| 3DSYSTEMS|LEAP MOTION 42
Slide 43: Re-Imagining Education
RE-IMAGINING EDUCATION UNLEASHING CREATIVITY | IMPARTING TOMORROW’S SKILLS TODAY 43
Slide 44: Made for Me – 3DMe
MADE FOR ME 3DME | WHO DO YOU WANT TO BE 44
Slide 45: Cubify Snap
a. <x 2 V) > — co — UO
Slide 46: Cubify Draw
CUBIFY DRAW
Slide 47: Growth and Expectations
GROWTH AND EXPECTATIONS DAMON GREGOIRE, SVP & CFO WWW.3DSYSTEMS.COM NYSE:DDD
Slide 48: Effective Growth Pillars
EFFECTIVE GROWTH PILLARS ACCELERATE 3D PRINTER ADOPTION REINVENT THE EXPAND ENGINEER’S QUICKPARTS DESKTOP SERVICE BUILD GROW CONSUMER HEALTHCARE PRESENCE SOLUTIONS 48 48
Slide 49: Differentiation
DIFFERENTIATION SOFTWARE PLASTICS PLATFORM CONSUMER METALS ECOSYSTEM CLOUD WAXES PRINTING FULLCOLOR 49
Slide 50: Performance Improvements
PERFORMANCE IMPROVEMENTS $ in millions $600 55.0% Non-GAAP $460 - $510 2012 Vs. 2011 Performance $500 % Change 51.2% Drivers 50.0% 47.3% Revenue 54% $400 46.3% $354 Printer units 124% 44.1% $300 45.0% Gross profit 66% $230 Net income 66% $200 $160 40.0% Net income per $113 employee 17% $100 Diluted
Slide 51: Financial Highlights
FINANCIAL HIGHLIGHTS 2012 revenue grew 53.5%; Q1 2013 revenue grew 31% Revenue Growth and Margin Increased GPM to 51.2% for full year 2012 and increased GPM to Expansion 52.4% in Q1 2013 Strong organic growth supplemented by successful acquisition strategy Remixing of revenue categories and
Slide 52: Effective R&D Fuels Growth
EFFECTIVE R&D FUELS GROWTH $ in millions Annual New Products Revenue Q1 New Products Revenue $150 $50 $40 $100 $30 $ 131.9 $20 $38.3 $50 $ 77.8 $10 $23.9 $ 58.6 $15.6 $0 $0 2010 2011 2012 2011 2012 2013 Competed 4 acquisitions Commercialized 16 new Increased 2012 annual of technology assets in produ
Slide 53: Revenue Expectations
REVENUE EXPECTATIONS 2012 YE ACTUAL $354 MILLION 2013 YE EXPECTATION $460-510 MILLION 30% - 44% revenue growth CONSUMER SERVICES SERVICES PRINTERS SOFTWARE MATERIALS MATERIALS PRINTERS 53 53
Slide 54: GPM Expectations
GPM Expectations Continued corporate gross profit margin expansion GPM Drivers •Materials •Software •Volume •Continuous Operational Improvements GPM Pressure •Quickparts •Consumer •Printer units surge •Mix 54
Slide 55: Open Ended Growth Opportunities
OPEN ENDED GROWTH OPPORTUNITIES Rapid Prototyping 3D Systems Function Competitors CONSUMER MANUFACTURING Direct Fit Form Addressing full continuum of 3D – ideation through production 55 55
Slide 56: Manufacturing the Future
MANUFACTURING THE FUTURE AVI REICHENTAL, CEO WWW.3DSYSTEMS.COM NYSE:DDD
Slide 57: Aerospace
AEROSPACE COMPLEXITY| WEIGHT | MANEUVERABILITY | FUEL EFFICIENCY |COST 57
Slide 58: Automotive
AUTOMOTIVE DESIGN | VALIDATE | TOOL | BRIDGE | CUSTOMIZE | MANUFACTURE SOURCE: Lotus F1 SOURCE: General Motors 58
Slide 59: Patient Specific Medical Devices
PATIENT SPECIFIC MEDICAL DEVICES ITE HEARING AIDS | DENTAL RESTORATIONS | IMPLANTS SOURCE: CNN SOURCE: ORLive.com 59
Slide 60: Economy Scales
ECONOMY SCALES INVISALIGN PRODUCES OVER 17 MILLION UNIQUE ALIGNERS ANNUALLY SOURCE: ALIGN 2012 Annual Report 60
Slide 61: Direct Metal Systems
DIRECT METAL SYSTEMS MEDICAL METALS AEROSPCE | AUTOMOTIVE | DEFENSE | METALS | CERAMICS 61 61
Slide 62: Metals | Alloys
METALS | ALLOYS 62 62
Slide 63: Next Gen Personal Printers
NEXT GEN PERSONAL PRINTERS Greater More Better Multi materials affordability functionality printability and colors 63 63
Slide 64: Next Gen Professional & Production Grade
NEXT GEN PROFESSIONAL & PRODUCTION GRADE 64 64
Slide 65: Next Gen Materials
NEXT GEN MATERIALS High performance plastics Full color plastics Biocompatible plastics Multi-material composites High temperature conductive Fine particle metals and ceramics 65 65
Slide 66: The Bespoke Solution
o ee Custom fit orthopedic devices Dramatic improvements in fit, comfort & appearance Improvements in clinical quality and function
Slide 67: Bespoke Wrist Braces
BESPOKE WRIST BRACES 67 67
Slide 68: The Bespoke Difference
THE BESPOKE DIFFERENCE Custom Fit Ventilated Braces are 3D Printing slim and enables form fitting complex ventilation patterns Stylish Bespoke Materials Braces are compatible easily with swimming mistaken for and bathing, fashion and dish- accessories washer safe
Slide 69: Affordable and Scalable
AFFORDABLE AND SCALABLE 69 69
Slide 70: Next Gen Bespoke Pediatric Braces
NEXT GEN BESPOKE PEDIATRIC BRACES 70 70
Slide 71: Effective Growth Pillars
EFFECTIVE GROWTH PILLARS ACCELERATE 3D PRINTER ADOPTION iPro | sPro Quickparts REINVENT THE EXPAND ENGINEER’S QUICKPARTS DESKTOP SERVICE Cube | Bespoke ProJet Cubify Geomagic BUILD GROW CONSUMER HEALTHCARE PRESENCE SOLUTIONS 71 71
Slide 72: Bottom Line
BOTTOM LINE Unmatched portfolio with leading brands Technology + financial strength and flexibility Open-ended growth opportunities Innovative business model with end-to-end solutions Focused, balanced growth initiatives Experienced management team 72 72
Slide 73: Thank You
Thank You WWW.3DSYSTEMS.COM NYSE:DDD