3d Systems Corporation · NYSE:DDD
3d Systems — Investor Day (June 2014)
79 slides from 3d Systems's investor day presentation, Jun 10, 2014
Slide 1: Investor and Analyst Day
INVESTOR AND ANALYST DAY June 10, 2014 WWW.3DSYSTEMS.COM|NYSE:DDD
Slide 2: Welcome
WELCOME Stacey Witten Director, Investor Relations
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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, perfor
Slide 4: Agenda
AGENDA 3DS — Hea 3DS — Breaking the Speed Limit 3DS / Google’s Ara 3DS — Engineering 2.0 3DS — Lifestyle 1.0 3DS / Deloitte Partnership 3DS — Metal Printing 3DS — Quickparts 2.0 Q&A ° Stacey Witten Avi Reichental ¢ Damon Gregoire ¢ Dr. Oren Tepper / Andy Christensen Patrick Dunne / Cathy Lewis Jeff
Slide 5: 3DS – Printing 2.0
3DS – PRINTING 2.0 Avi Reichental President and CEO
Slide 6: Trends Driving Adoption and Growth
TRENDS DRIVING ADOPTION AND GROWTH SURGERY & FREE COMPLEXITY MEDICAL DEVICES DRIVES BECOME FUNCTIONALITY PERSONALIZED DESIGN & 3D LIFESTYLE MANUFACTURING BECOME ARE RE-IMAGINED UBIQUITOUS
Slide 7: Sizing Up the Opportunity
SIZING UP THE OPPORTUNITY 25,000 20,000 32% CAGR Millions of Dollars 15,000 10,000 5,000 0 2013 2016 2018 2020 Enterprise Consumer Source: Gartner, Forecast: 3D Printers, Worldwide, 2013 Source: Wohlers Associates, Inc.
Slide 8: Our First Mover Advantage
OUR FIRST MOVER ADVANTAGE i o | m| |B eo i fds £ ¢ B 3: ay = 5 3 id sg of Hf “i ge 2 35 3 OF Sa > © @§ = — _ Direct prototypes plastic [nn Yo Yo. Direct v v v v v Indirect prototypes 5 Aa Aa A Cloud Printing v v v v iv Perceptual devices Medical parts Indirect parts
Slide 9: Medical-Materials-Metals
MEDICAL-MATERIALS-METALS
Slide 10: Open Ended Growth Opportunity
OPEN ENDED GROWTH OPPORTUNITY
Slide 11: Differentiated Business Model
DIFFERENTIATED BUSINESS MODEL OTHERS OURS Extract maximum value from customer Deliver ongoing customer success Sell a technology or a product Sell the complete solution Sacrifice everything for temporary growth Cash matters, unprofitable growth doesn’t Protection through patents Protection t
Slide 12: Diverse-Experienced-Entrepreneurial
DIVERSE-EXPERIENCED-ENTREPRENUERIAL Ziad Abou Andy Christensen Hugh Evans Damon Gregoire Ping Fu Chuck Hull VP & General Manager VP, Personalized Surgery & VP, Corporate Development & SVP, Global Operations & Chief Chief Entrepreneur Officer EVP & Chief Technology Officer Quickparts Medical Devices
Slide 13: Digital Thread from End to End
DIGITAL THREAD FROM END TO END Capture Create Print Provide
Slide 14: Outlook
OUTLOOK Damon Gregoire SVP, Chief Financial Officer
Slide 15: Revised Full-Year 2014 Guidance
REVISED FULL-YEAR 2014 GUIDANCE • We expect annual revenue for 2014 to be in the range of $695 million to $735 million with greater growth during the second half of the year • We expect our GAAP earnings per share to be in the range of $0.44 to $0.56 and our non- GAAP earnings per share to be in the
Slide 16: Favorable Dynamics
FAVORABLE DYNAMICS POSITIONED AT THE HEART OF ~$35 BILLION DESIGN-TO-MANUFACTURING VALUE-CHAIN(1) FACTORS ACCELERATING ADOPTION FAVORABLE DYNAMICS 3D PRINTING GROWTH(2) Greater R&D spend, democratization $21.0 Billion • Open Ended Economic Shorter product life cycles, frequent Possibilities changes
Slide 17: Expecting Accelerated Revenue Growth
EXPECTING ACCELERATED REVENUE GROWTH $ in millions EXPECTATIONS $1B $1,000 55% • Revenue doubles in two years from 2013, driven primarily by printers, materials and $695M – software powered perceptual devices $800 $735M • Gross profit margins reach levels of 55% to 45% 60% as we get firmly into the
Slide 18: Gross Profit Margin Expansion Drivers
GROSS PROFIT MARGIN EXPANSION DRIVERS Q1 2014 Revenue • Increasing GPM contribution from higher software and materials Service 32% Printers revenue & Other 41% • Expanding GPM from higher Materials healthcare revenue and 27% Q1 2014 Gross Profit expanding services GPM • Recovering 3D printers GPM Se
Slide 19: 3DS – Healthcare
3DS – HEALTHCARE Oren M. Tepper, MD, Montefiore Medical Center Assistant Professor of Plastic Surgery, Director of Craniofacial Surgery Andy Christensen, Vice President, Personalized Surgery and Medical Devices
Slide 20: Virtual Surgical Planning for Craniofacial Surgery
Virtual Surgical Planning for Craniofacial Surgery Oren M. Tepper, MD Montefiore Medical Center Assistant Professor of Plastic Surgery Director of Craniofacial Surgery
Slide 21: Plastic Surgery
PLASTIC SURGERY • Build, Restore, Renovate • Creative, Innovative surgical specialty
Slide 22: Surgical Innovation
SURGICAL INNOVATION • Training / Skills • Advanced techniques • Cutting edge technology • PLANNING ?
Slide 23: Surgical Planning
SURGICAL PLANNING Soft Bone tissue
Slide 24: Plastic Surgery
Plastic Surgery {IN THIS IsSUH Rise of 3-D printing stretches the limits of plastic surgery's potential skeletal planning of osteotomy in our face transplant patient,” he says. “It’s been a long time — but we're now discovering more exciting applications and seeing more wide- spread use, so we're lo
Slide 25: Evolution of 3D
EVOLUTION OF 3D 3D CT Scan Planning Session OR Reference 3D Model Surgical Simulation Virtual Guides/Models Surgical Guides / Jigs
Slide 26: Facial Fractures
FACIAL FRACTURES Use of Virtual 3-Dimensional Surgery in Post-Traumatic Craniomaxillofacial Reconstruction Oren M. Tepper, MD,* Sarab Sorice, BA,t Gabriel N. Hershman, DDS, Pierre Saadeh, MD.f Jamie P. Levine, MDJ\ and David Hirsch, DDS, MDE
Slide 27: Phase 1 - Virtual Planning
PHASE 1-VIRTUAL PLANNING Fracture reduction and establish occlusion
Slide 28: Phase 2 - Modeling
PHASE 2-MODELING Bandeau jig Orbito-zygomatic jig Bone graft template Splint
Slide 29: Phase 3 - Surgical
PHASE 3-SURGICAL
Slide 30: Phase 4 - Analysis
PHASE 4-ANALYSIS
Slide 31: Craniofacial Distraction
CRANIOFACIAL DISTRACTION
Slide 32: Mandibular Distraction
MANDIBULAR DISTRACTION
Slide 33: Virtual Surgery
VIRTUAL SURGERY Solves the existing issues with mandibular distraction surgery (1) Device size (2) Underdeveloped bone (3) Critical structures (4) Bone width
Slide 34: Postop – 10 months
Preop Postop – 10 months
Slide 35: \
\
Slide 36: Future Growth Potential
FUTURE GROWTH POTENTIAL Better, Faster Expanding Market Soft Bone tissue
Slide 37: Real Time Communication
REAL TIME COMMUNICATION
Slide 38: Slide 38
Slide 39: Slide 39
Slide 40: Personalized Surgery: Anatomical Modeling
PERSONALIZED SURGERY ANATOMICAL MODELING
Slide 41: Personalized Surgery: Guidance and Custom Designs
PERSONALIZED SURGERY GUIDANCE AND CUSTOM DESIGNS
Slide 42: Digital Thread - Virtual Surgical Planning
DIGITAL THREAD - Virtual Surgical Planning (VSP*) Ima, Haptic De. Ie Pro. P' esig, oe Yr tual surgical?
Slide 43: The Value Proposition
THE VALUE PROPOSITION PERSONALIZED SURGERY 3DS Digital Thread Plays a Role Stakeholders The Patient - “I want the best surgery possible, personalized to me” The Surgeon - “I need to provide the best care possible to my patients while optimizing how much I can do in a day” The Hospital - “To rema
Slide 44: The FDA's Viewpoint
THE FDA’S VIEWPOINT “3D printing is transforming our concept of personalized medicine and medical intervention opportunities” - FDA Commissioner Margaret Hamburg quoted during an October 29, 2013 AdvaMed-Dx and American Association for Cancer Research meeting on personalized medicine in Washington,
Slide 45: Volume Production Driving Value: Direct Metal Printing
VOLUME PRODUCTION DRIVING VALUE DIRECT METAL PRINTING
Slide 46: Patient-Specific Implants
PATIENT-SPECIFIC IMPLANTS
Slide 47: Off-the-Shelf 3D Printed Implants
OFF-THE-SHELF 3D PRINTED IMPLANTS
Slide 48: Bespoke Bracing - Scoliosis
BESPOKE BRACING - SCOLIOSIS
Slide 49: 3DS – Breaking the Speed Limit
3DS – BREAKING THE SPEED LIMIT Cathy Lewis, CMO Patrick Dunne, Director, Industrial Developments
Slide 50: Aerospace and Defense
AEROSPACE AND DEFENSE
Slide 51: Complexity Is Free
COMPLEXITY IS FREE — Traditional Manufacturing — Additive Manufacturing - 2014 -- Additive Manufacturing - 2020 Per Unit Cost Falling costs of 3D printing Complexity Present Economies of Savings Future Economies of Savings
Slide 52: 3DS / Google's Ara
3DS / GOOGLE’S ARA Jeff Blank, Vice President Engineering, New Business Development
Slide 53: Stylizing and Personalizing
STYLIZING AND PERSONALIZING Generator Freestyle Pop Monochrome Solid Luxe Constrained Entirely user- Energetic pop color Varying shades of All modules same Use of high end generators for user- designed, with no ID combined with same color (gray color premium unique textures & constraints neutral pho
Slide 54: Slide 54
Slide 55: 3DS – Engineering 2.0
3DS – ENGINEERING 2.0 John Alpine, Vice President, Global Software Josh St. John, Director, User Experience
Slide 56: Reimagining the Engineer's Desktop
REIMAGINING THE ENGINEER’S DESKTOP isense
Slide 57: 3DS – Lifestyle 1.0
3DS – LIFESTYLE 1.0 Ash Martin, Director, Consumer Product Management Liz von Hasseln, Creative Director, Food Products
Slide 58: Opening New Segments
OPENING NEW SEGMENTS
Slide 59: Creative Digital Thread
CREATIVE DIGITAL THREAD
Slide 60: Consumer Lifestyle
CONSUMER LIFESTYLE
Slide 61: Expanding Channels
EXPANDING CHANNELS
Slide 62: 3DS / Deloitte Partnership
3DS / DELOITTE PARTNERSHIP Andrew Vaz, Principal, Chief Innovation Officer, Deloitte Marcus Shingles, Principal, Eco-Systems and Exponentials Leader, Deloitte
Slide 63: Deloitte Discovery Center
DELOITTE DISCOVERY i CENTER =
Slide 64: 3DS – Metal Printing
3DS – METAL PRINTING Kevin McAlea, Chief Impact Officer
Slide 65: Why 3DS 3D Direct Metal Printing?
WHY 3DS 3D DIRECT METAL PRINTING? Design for Challenging Mass Customization Challenging Parts Performance Materials QUALITY | MATERIAL VERSATILITY | MANUFACTURING READY | GLOBAL SUPPORT
Slide 66: Materials Versatility
MATERIALS VERSATILITY 15+ MATERIALS | STEEL | ALUMINUM | NI-BASED ALLOYS | PRECIOUS METALS CoCr AlSil2 Pure Cu Al2O3
Slide 67: Manufacturing Applications
MANUFACTURING APPLICATIONS Tire Molds Jewelry Aerospace & Defense Medical & Dental
Slide 68: Outstanding Output Quality
OUTSTANDING OUTPUT QUALITY Feature Resolution ~ 150 microns Surface Finish ~ 5 microns Ra Tolerances ~ 50 to 100 microns Repeatability ~ 30 microns Density ~ 99%
Slide 69: Tires: Sipe, Puzzle & Segmented Molds
TIRES: SIPE, PUZZLE & SEGMENTED MOLDS • Difficult sipe geometries, sipe- dense molds • 4X faster than conventional manufacturing • More durable than conventional mold with inserts • Internal lattice structure maximizes accuracy and minimizes build time
Slide 70: Unique Capabilities
UNIQUE CAPABILITIES Application- Resolution Know-How Specific Accuracy + & Surface & Build Speed Finish Experience Strategies
Slide 71: Fab-Grade Ready Printer
FAB-GRADE READY PRINTER • Robust design & construction • Emphasis on precision, repeatability and reliability • Unique powder layering system • Advanced scan strategies • Integrated “hands off” powder management
Slide 72: The Tire Mold Opportunity
THE TIRE MOLD OPPORTUNITY Time to Tire Performance Mold Life Market
Slide 73: Patient Specific Medical
PATIENT SPECIFIC MEDICAL “With the quick turnaround we deliver using direct metal sintering, we have also built a reputation for high quality and attention to detail that pleases our dental customers. We own about 90% of the dental laser sintering market in our region, and we plan to keep building w
Slide 74: Aerospace and Defense
AEROSPACE AND DEFENSE
Slide 75: Fab-Grade Direct Metal Printing
FAB-GRADE DIRECT METAL PRINTING HIGH DENSITY|METAL PURITY|15 MATERIAL CHOICES|DETAIL AND PRECISION
Slide 76: 3DS – Quickparts 2.0
3DS – QUICKPARTS 2.0 Avi Reichental President and CEO
Slide 77: Visit Us at the Atlantic Design & Manufacturing Show
VISIT US @ THE ATLANTIC DESIGN & MANUFACTURING SHOW JUNE 10 – 12, 2014 | JACOB K. JAVITS CONVENTION CENTER | BOOTH 408 Showcase includes: • ProJet® 4500 full color plastic 3D printer • ProJet® 5500X multi material • Cube® • CubeProTM • ProJet® 1200 micro-SLA • Perceptual Design and Devices: CaptureT
Slide 78: Manufacturing the Future
MANUFACTURINGTHE FUTURE
Slide 79: Thank You
THANK YOU WWW.3DSYSTEMS.COM|NYSE:DDD