Link to Searchable Text of Slide Shown Above

by 3D Systems
January 11th, 2006









































































 

Searchable text section of graphics shown above

 



 

[GRAPHIC]

 

3D Systems Corporation

 

Investor Day
New York, NY

 

January 11, 2006

 

 

NASDAQ:TDSC

 

[LOGO]

www.3dsystems.com

Transform Your Products

 



 

Experience the difference…

 

Forward-Looking Statements

 

Certain statements made in this release 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, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements in the future or conditional tense or that include the terms “believes,” “belief,” “expects,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking.  Forward-looking statements may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business.  Forward-looking statements are based upon management’s current expectations concerning future events and trends and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors stated under the heading “Forward-Looking Statements” and “Cautionary Statements and Risk Factors” in management’s discussion and analysis of results of operations and financial condition, which appear in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.

 

© Copyright 2006 by 3D Systems Corporation.  All rights reserved. 3D Systems, 3D logo, SLA, SLS, VisiJet, Sinterstation, Accura and DuraForm are registered trademarks and SLS, InVision, HiQ, Bluestone, LaserForm and VisiJet are trademarks of 3D Systems. All other product names or services mentioned are trademarks or registered trademarks of their respective companies.

 

[LOGO]

3D Systems Corporation – Investor Day New York, 2006

 

Transform Your Products

 

2



 

3D Systems Overview

 

                  $125 MM sales ‘04

 

                  HQ Valencia, CA

 

                  355 employees

 

                  382 patents

 

                  Global coverage

 

                  Local presence

 

Model

[GRAPHIC]

 

Prototype

[GRAPHIC]

 

Manufacturing

[GRAPHIC]

 

Services

[GRAPHIC]

 

2005 revenue… 3Q ‘05: $32.3 MM…9 Months ‘05: $95.5 MM

 

3a



 

                  $125 MM sales ‘04

 

                  HQ Valencia, CA

 

                  355 employees

 

                  382 patents

 

                  Global coverage

 

                  Local presence

 

[GRAPHIC]

 

Leader:

 

Comprehensive 3-D Printing, Prototyping and Manufacturing Solutions

 

2005 revenue… 3Q ‘05: $32.3 MM…9 Months ‘05: $95.5 MM

 

3b



 

                  $125 MM sales ‘04

 

                  HQ Valencia, CA

 

                  355 employees

 

                  382 patents

 

                  Global coverage

 

                  Local presence

 

[GRAPHIC]

 

Innovator:

 

Broad range of systems and materials

 

2005 revenue… 3Q ‘05: $32.3 MM…9 Months ‘05: $95.5 MM

 

3c



 

                  $125 MM sales ‘04

 

                  HQ Valencia, CA

 

                  355 employees

 

                  382 patents

 

                  Global coverage

 

                  Local presence

 

[GRAPHIC]

 

Partner:

 

Focus on and understand our customers’ needs and wants

 

2005 revenue… 3Q ‘05: $32.3 MM…9 Months ‘05: $95.5 MM

 

3d



 

                  $125 MM sales ‘04

 

HQ Rock Hill, SC

 

                  355 employees

 

                  382 patents

 

                  Global coverage

 

                  Local presence

 

[GRAPHIC]

 

Builder:

 

Complete portfolio of affordable office to factory solutions

 

2005 revenue… 3Q ‘05: $32.3 MM…9 Months ‘05: $95.5 MM

 

3e



 

Cutting Edge Technology That Transforms The Way Companies Design, Develop and Manufacture New Products

 

4a



 

From Digital

[GRAPHIC]

To Physical

Art...

 

Part

 

 

 

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

 

 

 

Computer design (CAD)

 

Plastic or metal part

 

[GRAPHIC]

 

 

4b



 

Comprehensive Portfolio

 

3-D Printing

Stereolithography

Laser Sintering

 

 

 

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

VisiJet® plastics:

Accura® plastics
& composites:

DuraForm® plastics
& metals:

 

 

 

 

 

 

[GRAPHIC]

 

[GRAPHIC]

 

[GRAPHIC]

 

VisiJet® SR material

 

Accura® 25 plastic

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LaserFormÔ A6

[GRAPHIC]

 

[GRAPHIC]

 

Accura® 50 plastic

 

DuraForm®

 

VisiJet® HR

 

 

[GRAPHIC]

PA/GF

[GRAPHIC]

material

[GRAPHIC]

 

DuraForm® FLEX

 

VisiJet™ LD plastic

 

BluestoneÔ

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[GRAPHIC]

 

 

 

AmethystÔ

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DuraForm® AF

 

 

 

 

DuraForm® EX

 

 

5a



 

3-D Printing

Stereolithography

Laser Sintering

 

 

 

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

 

 

 

VisiJet® plastics:

Accura® plastics
& composites:

DuraForm® plastics
& metals:

 

 

 

 

 

 

[GRAPHIC]

 

[GRAPHIC]

 

[GRAPHIC]

 

VisiJet® SR material

 

Accura® 25 plastic

[GRAPHIC]

LaserFormÔ A6

[GRAPHIC]

 

[GRAPHIC]

 

Accura® 50 plastic

 

DuraForm®

 

VisiJet® HR

 

 

[GRAPHIC]

PA/GF

[GRAPHIC]

material

[GRAPHIC]

 

DuraForm® FLEX

 

VisiJet™ LD plastic

 

BluestoneÔ

[GRAPHIC]

 

[GRAPHIC]

 

 

 

AmethystÔ

[GRAPHIC]

DuraForm® AF

 

 

 

 

DuraForm® EX

 

 

5b



 

Industrial

 

[LOGO]

 

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6



 

Consumer

 

[LOGO]

 

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7



 

Automotive

 

[LOGO]

 

[GRAPHIC]

 

8



 

Aerospace

 

[LOGO]

 

[GRAPHIC]

 

9



 

Motorsports

 

[LOGO]

 

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10



 

Health Care

 

[LOGO]

 

[GRAPHIC]

 

11



 

2004 Global Revenue — $125 Million

 

By Region

 

[CHART]

 

By Category

 

[CHART]

 

12



 

Value Proposition

 

[CHART]

 

13



 

Customer Value

 

                  Reduce

                  Design cost

                  Manufacturing cost

                  Cost of Goods

 

[CHART]

 

Profitability

 

                  Reduce

                  Time to design

                  Time to production

                  Time to market

 

[CHART]

 

Market Share

 

14



 

Refined Business Model

 

                  Enhance total customer experience

 

                  Invest in core… exit rest

 

                  Lead through technology

 

                  Develop key markets

 

                  Grow recurring revenue… blade

 

                  Price for customer value

 

                  Execute a little better every day

 

15



 

Market Leadership Through Technology

 

                  Leap-frog direct competitors’ technology

                  Deliver monetized customer benefits

                  Augment internal developments with external alliances

                  Complement IP portfolio through strategic cross-licenses

                  Proprietary advanced materials and composites

                  Patented material packaging and delivery cartridges

 

[GRAPHIC]

 

16a



 

                  Leap-frog direct competitors’ technology

                  Deliver monetized customer benefits

                  Augment internal developments with external alliances

                  Complement IP portfolio through strategic cross-licenses E.O.S… Sony… DSM… Objet…

                  Proprietary advanced materials and composites

                  Patented material packaging and delivery cartridges

 

[GRAPHIC]

 

16b



 

3-D Printing Solutions

 

[GRAPHIC]

 

Key Attributes

 

                  User-friendly systems

                  Office and desktop utility

                  Enhanced material toughness

                  Superior finished surfaces

                  Plug-n-play installation

                  Fast and productive

                  Three affordable models:

                  LD @ $22,900

                  SR @ $39,900

                  HR @ $64,500

 

17



 

[GRAPHIC]

 

                  Proof of concept

                  Functional testing

                  Product cost reduction

                  Purchasing and quotation

 

[GRAPHIC]

 

                  Product mockups

                  Precision casting

                  Marketing tools

                  Architecture

                  Education

 

18



 

3-D Printing Growth Drivers
(Based on units)

 

Global Engineering

Population

 

[CHART]

 

Source:  3D Systems, CADigest, engineeringtalk.com, Deskeng.com

 

19



 

InVision™ LD 3-D Printer

 

$22,900

 

                  Compact, desktop 3-D printer

 

                  Affordable and office-friendly

 

                  2-D, plotter-like functionality

 

                  Builds complex parts

 

                  EZPeel™ supports

 

                  Worldwide marketing rights

 

[GRAPHIC]

 

20a



 

Introducing a 30% Faster Printer

 

                  On display here today

 

                  Available late Q1

 

                  Same functionality

 

                  Same utility

 

                  Same price

 

                  Higher productivity

 

[GRAPHIC]

 

20b



 

New Vertical…Education
16 Colleges Purchased 3-D Printers

 

                  Aiken Technical College

                  Central Carolina Technical College

                  Denmark Technical College

                  Florence-Darlington Technical College

                  Greenville Technical College

                  Horry-Georgetown Technical College

                  Midlands Technical College

                  Northeastern Technical College

                  Orangeburg-Calhoun Technical College

                  Spartanburg Technical College

                  Technical College of the Lowcountry

                  Tri-county Technical College

                  Trident Technical College

                  Williamsburg Technical College

                  York Technical College

                  Winthrop University

 

[GRAPHIC]

 

21



 

3-D Printer Competitive Landscape

 

[CHART]

 

22



 

Rapid Manufacturing Solutions

 

[GRAPHIC]

 

Key Attributes

 

                  Volume production

                  End-use parts

                  Mass customization

                  Complex shapes

                  Total design freedom

                  User-friendly set-up

                  Higher productivity

                  Lean manufacturing

                  Displace traditional methods:

                  C.N.C.

                  Injection molding

                  Roto-molding

 

23



 

[GRAPHIC]

 

                  Hearing aids

                  Aerospace

                  Military

                  Orthodontics

                  Dental study models

                  Dental drill guides

 

[GRAPHIC]

 

                  Formula One/NASCAR

                  Automotive

                  Medical/prosthetics

                  Footwear

                  Tools and fixtures

                  Jewelry manufacturing

 

24



 

Rapid Manufacturing Growth Drivers
(Based on $US)

 

Global CAPEX

Production Machinery

 

[CHART]

 

Source:  3D Systems and ARC Advisory Group

 

25



 

New Vertical…Custom Manufacturing

 

[GRAPHIC]

 

                  Designer Lamps

                  Unmanned Vehicles

                  Disposable Fixtures

      Custom Automation

 

26



 

New Vertical…Micro-Casting

 

[GRAPHIC]

 

      Jewelry manufacturing

      Dental molding

      Micro part casting

 

27



 

Rapid Manufacturing
Competitive Landscape
Tooling + Lead Time + Set-up = Part Cost

 

[CHART]

 

28a



 

[CHART]

 

28b



 

[CHART]

 

[GRAPHIC]

      Concept Cars

      UM Vehicles

      Automation

 

[GRAPHIC]

      Aerospace Ducting

      Conformal Cover

•     Fixtures

 

[GRAPHIC]

      Electronics

      Sports

      Collectables

 

[GRAPHIC]

      Hearing Aids

      Dental Molds

      Custom Jewelry

 

28c



 

Market Leadership Through Technology

 

29 New Products in 23 Months

 

New Products Since 4Q03

As % of Total Revenue by Quarter

 

[CHART]

 

29a



 

29 New Products in 23 Months

 

      28% of 3Q05 total sales

      23% of nine-month ‘05 total sales

      27% of nine-month ‘05 materials sales from new material

      44% of nine-month ‘05 new product sales from 3-D Printing ~$10 million

      ~50% of all systems sold into rapid manufacturing applications

 

[GRAPHIC]

 

29b



 

 

Global Competitive Landscape

 

 

 

Systems

 

Materials

 

Service

 

Presence

 

Company

 

3-D
Printing

 

SL

 

LS

 

3-D
Printing

 

SL

 

LS

 

Direct

 

Indirect

 

Americas

 

Europe

 

Asia
Pacific

 

3D Systems

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

Stratasys

 

X

 

 

 

X

 

 

 

 

X

 

X

 

X

 

Y

 

EOS

 

 

 

X

 

 

 

X

 

X

 

 

Y

 

X

 

Y

 

ZCorp

 

X

 

 

 

X

 

 

 

 

X

 

X

 

Y

 

Y

 

Sony

 

 

X

 

 

 

 

 

X

 

 

Y

 

 

X

 

CMET

 

 

X

 

 

 

 

 

X

 

 

 

 

X

 

DSM

 

 

 

 

 

X

 

X

 

X

 

X

 

X

 

X

 

Y

 

Huntsman

 

 

 

 

 

X

 

 

X

 

X

 

X

 

X

 

Y

 

Solidscape

 

X

 

 

 

X

 

 

 

 

X

 

X

 

Y

 

 

Objet

 

X

 

 

 

X

 

 

 

 

X

 

Y

 

Y

 

Y

 

Envision Tech

 

 

X

 

 

 

X

 

 

 

X

 

Y

 

X

 

Y

 

NRP

 

 

 

 

 

 

 

X

 

 

Y

 

 

 

Integra

 

 

 

 

 

 

 

X

 

 

Y

 

 

 

 


SL = Stereolithography

 

X = Comprehensive Capabilities

 

Direct = Employees

 

 

 

 

 

LS = Laser Sintering

 

Y = Partial Capabilities

 

Indirect = Resellers

 

30



 

Operating Highlights
First Nine Months 2005
($ Millions except per share amounts)

 

 

 

2005

 

2004

 

% Change

 

Operating Highlights

 

Actual

 

Actual

 

Yr-Yr

 

 

 

 

 

 

 

 

 

Revenue

 

$

95.5

 

$

87.1

 

10

%

 

 

 

 

 

 

 

 

Gross Profit

 

$

42.2

 

$

38.4

 

10

%

% of Revenue

 

44

%

44

%

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

$

37.4

 

$

37.2

 

1

%

% of Revenue

 

39

%

43

%

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Available to Common Stockholders

 

$

2.4

 

$

(2.0

)

NM

 

% of Revenue

 

2

%

(2

)%

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

$

4.7

 

$

5.2

 

(9

)%

% of Revenue

 

5

%

6

%

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share

 

$

0.15

 

$

(0.16

)

NM

 

 

NM=not meaningful

 

31



 

Revenue Component Changes
First Nine Months 2005
($ Millions)

 

[CHART]

 

32



 

First Nine Months’ 2005 Cash Flow

 

[CHART]

 

33



 

Reconciliation of Cash Flow*
($000’s)

 

 

 

Per

 

 

 

Strategic

 

Working

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Form 10Q

 

Legacy

 

Investment

 

Capital

 

Operating

 

Financing

 

Other

 

Adjusted

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

3,655

 

 

 

 

 

 

 

$

3,655

 

 

 

 

 

$

3,655

 

Research and development

 

 

 

 

 

$

(8,808

)

 

 

8,808

 

 

 

 

 

 

Legal expense related to legacy matters

 

 

 

$

(765

)

 

 

 

 

765

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

1,322

 

$

(1,322

)

 

 

 

Adjustments to reconcile net income (loss) to net cash used in operating activities :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

4,715

 

 

 

278

 

 

 

4,437

 

 

 

 

 

4,715

 

Bad debt provision (benefit)

 

16

 

 

 

 

 

 

 

16

 

 

 

 

 

16

 

Stock-based compensation expense

 

699

 

 

 

 

 

 

 

699

 

 

 

 

 

699

 

(Gain) loss on disposition of property and equipment

 

(54

)

 

 

 

 

 

 

(54

)

 

 

 

 

(54

)

Changes in operating accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(909

)

 

 

 

 

(909

)

 

 

 

 

 

 

(909

)

Inventories, net

 

(5,909

)

 

 

 

 

(5,909

)

 

 

 

 

 

 

(5,909

)

Prepaid expenses and other current assets

 

(4,534

)

 

 

(4,744

)(a)

210

 

 

 

 

 

 

 

(4,534

)

Other assets

 

229

 

 

 

 

 

229

 

 

 

 

 

 

 

229

 

Accounts payable

 

1,044

 

 

 

 

 

1,044

 

 

 

 

 

 

 

1,044

 

Accrued liabilities

 

(2,599

)

 

 

 

 

(2,937

)

 

 

338

(b)

 

 

(2,599

)

Customer deposits

 

1,228

 

 

 

 

 

1,228

 

 

 

 

 

 

 

1,228

 

Deferred revenue

 

(1,131

)

 

 

 

 

(1,131

)

 

 

 

 

 

 

(1,131

)

Other liabilities

 

(460

)

 

 

 

 

 

 

 

 

 

 

(460

)

(460

)

Net cash used in operating activities

 

(4,010

)

(765

)

(13,274

)

(8,175

)

19,648

 

(984

)

(460

)

(4,010

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

(1,873

)

 

 

(1,873

)

 

 

 

 

 

 

 

 

(1,873

)

Proceeds from sale of property and equipment

 

98

 

 

 

 

 

 

 

 

 

 

 

98

 

98

 

Additions to licenses and patents

 

(504

)

 

 

(504

)

 

 

 

 

 

 

 

 

(504

)

Software development costs

 

(635

)

 

 

(635

)

 

 

 

 

 

 

 

 

(635

)

Net cash used in investing activities

 

(2,914

)

 

(3,012

)

 

 

 

98

 

(2,914

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock option, stock purchase plan and restricted stock proceeds

 

8,020

 

 

 

 

 

 

 

 

 

8,020

 

 

 

8,020

 

Repayment of long-term debt

 

(180

)

 

 

 

 

 

 

 

 

(180

)

 

 

(180

)

Payments under obligation to former 3D Systems S.A. stockholders

 

(585

)

 

 

(585

)

 

 

 

 

 

 

 

 

(585

)

Payment of preferred stock dividends

 

(785

)

 

 

 

 

 

 

 

 

(785

)

 

 

(785

)

Stock registration costs

 

(211

)

(211

)

 

 

 

 

 

 

 

 

 

 

(211

)

Payment of accrued liquidated damages

 

(36

)

(36

)

 

 

 

 

 

 

 

 

 

 

(36

)

Net cash provided by financing activities

 

6,223

 

(247

)

(585

)

 

 

7,055

 

 

6,223

 

Effect of exchange rate changes on cash

 

416

 

 

 

 

 

 

 

 

 

 

 

416

 

416

 

Net increase (decrease) in cash and cash equivalents

 

(285

)

(1,012

)

(16,871

)

(8,175

)

19,648

 

6,071

 

54

 

(285

)

Cash and cash equivalents at the beginning of the period

 

26,276

 

 

 

 

 

 

 

 

 

 

 

 

 

26,276

 

Cash and cash equivalents at the end of the period

 

$

25,991

 

 

 

 

 

 

 

 

 

 

 

 

 

$

25,991

 

 


(a)  Progress payments to assemblers

(b)  Change in accrued liabilities associated with Interest Expense

 

*This reconciliation is provided to satisfy the requirements of Regulation G promulgated by the SEC regarding the use of non-GAAP financial measures.

 

34



 

Historical Financial Highlights
Growth, Profitability, Liquidity, Working Capital and Equity Improvements
($ Millions)

 

 

 

Full Year

 

9 Mos. YTD

 

 

 

2003

 

2004

 

2005

 

Revenue Growth

 

-5.1

%

14.0

%

9.7

%

Gross Margin as % Revenue

 

39.2

%

44.7

%

44.2

%

Operating Exp. as % Revenue

 

52.8

%

40.3

%

39.1

%

Net Income Avail. To Common

 

$

(26.9

)

$

1.0

 

$

2.4

 

Cash

 

$

24.0

 

$

26.3

 

$

26.0

 

Accounts Receivable

 

$

22.8

 

$

22.2

 

$

21.6

 

Inventory

 

$

9.7

 

$

9.5

 

$

13.4

 

Stockholders’ Equity

 

$

36.7

 

$

53.1

 

$

63.2

 

 

Since 4Q03, our revenue has increased in each quarter year-over-year.  We reported operating income for each quarter since 2Q04 and for the year ended December 31, 2004.  We reported net income for each consecutive quarter since the 3Q04 and for the year-ended December 2004.

 

35



 

Commitments for Debt Service, Preferred Stock & Operating Leases
Estimated at 12/31/05

 

[CHART]

 

Note:       Senior debt consists of $3.7 million of industrial development bonds issued to finance the Company’s Grand Junction, Colorado facility, which is in the process of being closed.  The Company expects to pay off these bonds when the facility is sold.

 

36



 

Major Holders – March 2005

 

Owner or Portfolio Manager

 

Shares of
Common Stock
Beneficially
Owned

 

Percentage (3)

 

The Clark Estates, Inc.(1)

 

2,061,301

 

11.9

%

St. Denis J. Villere & Company(1)

 

2,043,214

 

11.8

%

T. Rowe Price Associates, Inc.(1)

 

1,790,348

 

10.4

%

Daruma Asset Management, Inc.(1)

 

1,351,900

 

7.8

%

Goldsmith & Harris Inc. and Principals(1)

 

848,973

 

4.9

%

AW Marxe & DM Greenhouse(1) (Special Situations Funds)

 

827,475

 

4.8

%

Selz Capital, LLC

 

665,000

 

3.9

%

GME Capital(2)

 

312,044

 

1.8

%

Vanguard Group, Inc.(2)

 

167,564

 

1.0

%

Outside Directors

 

1,737,705

 

10.1

%

Executive Officers

 

1,110,903

 

7.3

%

 


(1)                                  Based on 13D/13G filings through March 31, 2005.

 

(2)                                  Based on 13F filings through March 31, 2005.

 

(3)                                  Based on 14,640,420 shares of Common Stock and 2,616,516 shares of Series B Convertible Preferred Stock outstanding at March 31, 2005.  Common Stock numbers include, with respect to the stockholder in question, (a) Common Stock issuable upon exercise of options exercisable within 60 days after March 31, 2005, (b) Common Stock issuable upon conversion of outstanding 6% convertible subordinated debentures, (c) Common Stock issuable upon conversion of outstanding shares of Series B Convertible Preferred Stock, and (d) Common Stock subject to pending restricted stock awards made to the executive officers.  All outstanding 6% convertible subordinated debentures and all outstanding shares of Series B Convertible Preferred Stock are currently convertible into Common Stock.  Each share of Series B Convertible Preferred Stock is convertible into one share of Common Stock.

 

37



 

Extensive Portfolio Transformation

 

2003 Core Products

 

 

 

2005 Current Products

 

 

 

 

 

3-D Printing

 

 

 

[GRAPHIC]

 

 

 

 

 

Price ~ $200K-650K

 

 

 

Price ~ $23K-850K

 

 

 

 

 

Rapid Manufacturing

 

 

 

[GRAPHIC]

[GRAPHIC]

 

 

 

 

 

38a



 

2003 Core Products

 

 

 

2005 Current Products

 

 

 

 

 

3-D Printing

 

 

 

[GRAPHIC]

[GRAPHIC]

 

 

 

 

 

 

 

 

 

Proprietary Cartridges

 

 

 

Price ~ $23K-850K

 

 

 

 

 

Rapid Manufacturing

 

 

 

[GRAPHIC]

[GRAPHIC]

 

 

 

 

 

38b



 

Technology Driven Business Development… and Results

 

Kevin McAlea
Vice-President Global Marketing

 

39



 

New Products Deliver Significant Customer Benefits…

 

Larger Parts

 

[GRAPHIC]

 

40



 

More Accurate Parts

 

[GRAPHIC]

 

41



 

Increased Throughput

 

[GRAPHIC]

 

42



 

More Materials

 

[GRAPHIC]

 

Better Materials Utilization

 

[GRAPHIC]

 

43



 

                  Reduced part cost

                  Improved part functionality

                  More applications

                  New business opportunities

 

44



 

Automotive Styling and Design

 

                  More than 12 major styling studios in Japan*

                  Full-scale mock ups

                  Concept vehicles

                  Design models

                  Customer » Shonan Design (Japan)

 

[GRAPHIC]

 


*Source:  Car Styling Magazine

 

45



 

Automotive Manufacturing

 

                  Motorsports » specialty vehicles

                  High-end, exclusive cars

                  Taxis and police cars

                  Ducts » interior parts » enclosures

                  Part quantities » 100 – 10,000

 

[GRAPHIC]

 

46



 

Aerospace Manufacturing

 

                  Military aircraft » commercial aircraft » unmanned air vehicles (UAVs)

                  Ducts » brackets » engine fan blades

                  More than 1,500 target parts in military aircraft*

                  More than 5,000 target parts in commercial aircraft*

                  More than 40 UAV manufacturers worldwide**

                  Customers » Boeing » Airbus » Rolls Royce

 

[GRAPHIC]

 


*Source:  Boeing Seattle MRD&D

**Source: Aviation Now

 

47



 

Medical Manufacturing

 

                  Hearing aids » dental restorations and implant drill guides

                  42 million crowns and bridges produced per year in the U.S. in 2003*

                  More than 10,000 dental laboratories in the U.S.*

                  Reduce labor » improve consistency

                  Enabling technologies » in-office scanners

 

[GRAPHIC]

 


*Source:  Freedonia (2003)

 

48



 

Customized Machinery

 

                  More than 400 packaging machinery companies in the U.S.*

                  Pharmaceutical packaging

                  Customized feed wheels and tubes

                  Difficult-to-manufacture parts

 

[GRAPHIC]

 


*Source:  D&B (SIC 3565)

 

49



 

Specialized Tooling

 

                  Athletic footwear

                  More than 50,000 tools per year required by Adidas*

                  Stereolithography patterns

                  Molded pulp packaging

                  More than 70MM lbs molded pulp packaging in the U.S.**

                  Environmentally friendly

                  Laser sintered vacuum tools

 

[GRAPHIC]

 


*Source:  Adidas

**Freedonia (2008)

 

50



 

Machine and Molding Shops

 

                  More than 7,000 machine and molding shops in the U.S.*

                  35% of production runs less than 1,000 parts/assemblies**

                  Pro systems » competitive advantage » broader solutions

                  Customer » Butler Tool (U.S.)

 

[GRAPHIC]

 


*Source:  D&B (SIC 3543 and 3089)

**Source: Assembly Magazine (2004)

 

51



 

HQ Relocation/Consolidation

 

Key Objectives:

 

                  Centralize HQ and operations

                  3D Systems University

                  Rapid Manufacturing Center

                  Advanced Research and Development Center

                  Do more with less…half the current space

                  Improve work force affordability and availability

                  Obtain attractive incentives

 

Estimated Investment:

 

                  In the range of $8.3 to $10.0 million

                  Expect $3.5 to $6.5 million proceeds from GJ facility disposition

 

Anticipated Savings:

 

                  Expect first full year (2007) savings of $2.5 million

                  Lower personnel-related and occupancy costs

                  Job development credits

 

52



 

Site Selection Criteria
- - Grounded in Our Priorities -

 

      Quality — People and Opportunities

                  Rated in the top 10 metros for business expansion by major global companies

 

      Employment Conditions — Performance Culture

                  Center for accelerated learning and training

 

      Transportation — Customers’ Success

                  Accessibility to major markets

                  Proximity to key customers

 

      Operating Costs — Cash Flow and ROA

                  Competitive domestically and internationally

 

53



 

Global Presence

 

[GRAPHIC]

 

54a



 

Rock Hill, South Carolina

Future Global Headquarters

3D Systems Corporation

 

[GRAPHIC]

 

54b



 

3D Systems University
- -In Partnership With-
York Tech – Institute for Manufacturing Productivity

 

                  Customer training

                  Reseller training

                  Team 3D training

                  2-year RP&M degree

                  Co-ops and internships

                  3D Systems’ showcase

 

[GRAPHIC]

 

55



 

Target Operating Model
(Target based on annual revenue in the range of $150 million)

 

 

 

Actual

 

 

 

 

 

2003

 

2004

 

2005

 

Long-Term

 

 

 

Year

 

Year

 

9 Mos. YTD

 

Target

 

Revenue

 

100

%

100

%

100

%

100

%

Gross profit

 

39

%

45

%

44

%

50-55

%

Operating expense

 

53

%

40

%

39

%

30-35

%

Operating income

 

(14

)%

4

%

5

%

15-25

%

Net income available to common stockholders

 

(24

)%

1

%

2

%

10-15

%

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

8

%

6

%

5

%

3-5

%

Capex

 

1

%

1

%

2

%

1-2

%

New product revenue

 

1

%

13

%

23

%

55-65

%

Recurring revenue (materials and service)

 

63

%

63

%

64

%

75-85

%

 

56



 

Fixed Leveraging the Model
Infrastructure, Technology, Outsourcing and New Products Drive Margin Expansion

 

[CHART]

 

57



 

Key Initiatives

 

                  Completing planned HQ consolidation

                  Strengthening sales and marketing Europe and Japan

                  Commercializing additional 3-D printers

                  Growing 3-D printer reseller channel globally

                  Enhancing service effectiveness and profitability

                  Developing new Rapid Manufacturing applications

                  Introducing new, engineered materials and composites

                  Implementing Oracle-based ERP system

                  Pruning portfolio and retiring older legacy systems

                  Improving operations and customer experience

 

58



 

Business Fundamentals

 

                  Leading technology and industry position

                  Experienced management team and organization

                  Clear customer priorities … demonstrated execution

                  Stronger financial base and flexibility

                  Comprehensive solutions’ portfolio

                  Significant and steady new product introductions

                  Healthy pipeline of additional opportunities

                  Improving operating results, efficiencies and cash flow

                  Significant growth programs

                  3-D printing

                  Rapid manufacturing

                  Measurable value, customers and stockholders

 

59



 

[GRAPHIC]

 

Transform Your Products

 

Thank You!