EX-99.2 3 d777239dex992.htm EX-99.2

Exhibit 99.2 February 28, 2024 Fourth Quarter and Full Year 2023 Financial Results

Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Jeffrey Creech Executive Vice President & Chief Financial Officer Andrew Johnson Executive Vice President, Chief Corporate Development Officer & Chief Legal Officer Mick McCloskey Vice President, Treasury & Investor Relations To participate via phone, please dial: 1-201-689-8345 2

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 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 or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements” and “Risk Factors” 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. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward- looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or revise any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise, except as required by law Further, we encourage you to review “Risk Factors” in Part 1 of our Annual Report on Form 10-K and Part II of our Quarterly Reports on Form 10-Q filed with the SEC as well as other information about us in our filings with the SEC. These are available at www.SEC.gov. 3

Dr. Jeffrey Graves President & Chief Executive Officer 4

t e k r a M g n i t n Why Invest? $80B+ Why choose additive manufacturing (AM)? 1 2029 ✓ Design Flexibility ✓ Mass Customization ✓ Low Volume Parts ✓ Supply Chain Flexibility ~$15B 1 2021 Why 3D Systems? ✓ Unmatched combination of portfolio and scale ~21% ➢ Broadest range of technologies (metals, polymers, CAGR Over 2 Next 5-7 Years materials & software) ➢ One of the largest in the industry ✓ Strong balance sheet allows flexibility to react to short-term headwinds while continuing to invest in future growth 5 1 Based on Fortune Business Insights. 2 Average based on Fortune Business Insights, Grand View Research, Markets and Markets, Modor Research, and Wohlers Report. i r P D 3 l a b o l G

2023 in Review • Challenging 2023 for AM industry ▪ Significant FY’23 headwind in our dental orthodontics business, ~39% decline vs. FY’22 ▪ Challenging macroeconomic and uncertain geopolitical environment created headwinds for remaining businesses, particularly printer sales • Strong gross margin improvement ▪ Favorable mix and impact of optimization initiatives, such as in-sourcing manufacturing • Taking definitive measures to establish profitability ▪ Targeting to deliver break even or better Adj. EBITDA in flat revenue environment 6

Right-Sizing Cost, Preserving Mission-Critical Growth Strong balance sheet supports ability to better Reducing costs to navigate current Implemented restructuring establish sustainable environment – healthy initiative in response to profitability but not cash reserves and current revenue compromising on mission- expectation for working environment critical growth vectors for capital improvement, driven long-term horizon by inventory reductions in FY’24 We are responding to the current macro environment in order to thrive, not just survive 7

End-to-End Solutions to Address Orthopedic Device Market Applications throughout the human body CMF (Cranio-Maxillofacial) Spine Surgical Planning + Guides + Highest adoption of DMP 350 Implants technology for Titanium spine cages (~$2B) (~$10B) Targeted for Future Growth Hip & Knee Foot & Ankle DMP 350 Dual/Triple aggressively Surgical Planning + Guides + targeting Titanium, Cobalt Chrome Implants printing for large joints (~$4B) (~$20B) 8

Bright Future Ahead for Option 2 (2 slides) – I prefer the two slide Personalized Healthcare option. This image is very grainy. Where Personalized Healthcare delivered was this pulled from? double-digit full year revenue growth in 2023 Investing heavily to increase coverage into global markets as critical growth initiative Bullish on long-term growth opportunity; expect medical device business to triple revenue by 2030 9

Jetted Dentures Two unique materials Industry First Solution Enable production of superior monolithic dentures, combining beautiful aesthetics with outstanding performance, yielding a market-leading denture solution “The capabilities presented by the new jetted denture solution are unmatched in the industry. The combination of 3D Distinctive break-resistance Systems’ high-speed printing technology and its unique materials Ensures long product life, meeting a critical patient requirement deliver dentures with superior durability and aesthetics.” – Stephenie Goddard, CEO, Glidewell Expands addressable market New denture product family dramatically expands company’s addressable dental market, with denture demand estimated to exceed $2 billion by 2028 10

Industrial Metal Printing Innovation Semiconductor Capital Equipment, Shipbuilding, Aerospace & Defense • AM generating greater momentum in semiconductors, shipbuilding, aerospace and defense • Lower technical barriers to entry with proven solutions for many materials and applications • Parts consolidation enables accelerated time to market • Freedom of design facilitates improved performance • Continue to make important strides in helping to mitigate supply chain disruption 11

Building Momentum on a Historic Technology Roadmap ➢ Delivered 9 new products during 4Q’23 ➢ 5 new materials ➢ 3 printer upgrades ➢ 1 key accessory ➢ Recently shipped our first MJP300W and production ramp is ongoing ➢ Completed validation testing on SLS300, ramping production and shipments by 1H’24 ➢ On track for DMP 350 Triple ➢ Ongoing prototype validation testing for PSLA 270 12

Regenerative Medicine Initiative Human Organs Regenerative Tissue Program Drug Development Vascularized Breast Tissue Scaffold for Implantation & Cellularization Bioprinted “Organ-on-a-chip” Most Complex Object can accurately replicate organ-specific drug response in pre- Ever 3D Printed clinical drug trials 3D printed human lung scaffold ✓ 2 Lobes ✓ 5,000 kilometers of vasculature ✓ 213 Million Alveoli ✓ 44 Trillion Voxels h-VIOS chip 2 with perfused vasculature Investing to reflect the increasing maturation of our exciting new technology as we move from early-stage conceptual development toward commercial application…

Systemic Bio Simplifying the challenges in drug discovery 9 in 10 $2.6B 12 YEARS in development 1 2 DRUGS FAIL CLINICAL TRIALS 1 PER DRUG APPROVED FOR FDA APPROVAL • Wholly-owned subsidiary formed in 2022 • h-VIOS , proprietary organ- on-a-chip platform allows pharma companies to test their drug on cellularized chip that mimics response in human organs during trials • Closed contracts with 2 out of 4 of world’s largest pharma companies in FY’23, with 5,000– 10,000compounds 5-10 1 growing pipeline for future 3 3 3 Phase I Preclinical Approved Sciencedirect.com Nature.com FDA.gov 1 2 3

2024 Expectations ✓ Expect relatively flat FY’24 revenues given continued macro softness ✓ In-sourcing and restructuring initiatives provide a strong foundation for margins today…expect continued benefit going forward ✓ Expect breakeven or better Adj. EBTIDA in flat top-line environment 15

Jeffrey Creech Chief Financial Officer 16

Full Year Revenue Summary ($ in millions) ISG HSG Consolidated $261 $277 $275 $538 $213 $488 FY’22 FY’23 FY’22 FY’23 FY’22 FY’23 • HSG declined ~18% YoY driven by • ISG revenues declined ~1% YoY • YoY revenue declined ~9% primarily headwind in dental orthodontics driven by headwinds in dental largely impacted by lower printer business orthodontics business sales in tough macro backdrop • ~39% YoY decline in dental orthodontics • Tailwinds in Transportation, • Personalized Healthcare grew ~12% Aerospace & Defense and YoY Semiconductor offset by headwinds in Jewelry and other industrial markets 17

Q4 Revenue Summary ($ in millions) ISG HSG Consolidated $133 $72 $61 $115 $64 $51 Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 • HSG declined ~16% YoY primarily • ISG revenues declined ~12% YoY, • YoY revenue declined ~14% due to decline in dental orthodontics primarily driven by headwinds in primarily driven by broader macro- business YoY from consumer dental orthodontics business & related weakness across industrial spending headwinds customers in printer sales broader macro-related softness in • Partial offset as Personalized printer sales Healthcare grew ~11% YoY • Partially offset by strong performing • Partially offset by Q4 growth in materials & services markets such as Aerospace & Defense and Semiconductors 18

Gross Profit Margin (Non-GAAP) Full Year Compare Fourth Quarter Compare +100 bps +130 bps Full Year Drivers 41.9% 41.1% 40.9% • Continued execution of cost 39.8% optimization efforts & favorable mix​ Fourth Quarter Drivers • Predominantly favorable mix FY'22 FY'23 Q4'22 Q4'23 19 See Appendix for a reconciliation of Non-GAAP Gross Profit Margin

Earnings (Non-GAAP) ($ in millions, except per share amounts) FY’22 FY’23 Change YoY YoY decline driven by lower revenues in Adj. EBITDA ($5.8) ($24.5) ($18.7) addition to: • Investments in Regenerative Medicine for future Non-GAAP growth Diluted loss ($0.23) ($0.26) ($0.03) • Higher than normal OpEx spend primarily in 4Q’23 per share o External support for YE audit and CFO transition Q4’22 Q4’23 Change YoY o IT cybersecurity transformation o Advisory & legal fees in association with debt Adj. EBITDA ($4.8) ($12.3) ($7.5) repurchase Non-GAAP FY’23 Non-GAAP earnings excludes ~$313 Diluted loss ($0.06) ($0.11) ($0.05) million non-cash expense associated with per share impairment & ~$32 million gain on debt repayment See Appendix for a reconciliation of Adjusted EBITDA. See Appendix for reconciliation of GAAP and Non-GAAP Diluted loss per share. 20

Strong Balance Sheet • Ended the quarter with $331.5 million of cash • Invested cash throughout FY’23 - working capital (e.g. in- sourcing manufacturing), acquisitions and other investments (Wematter, Theradapative) and CapEx for growth programs • Opportunistically repurchased ~$135 million of 2026 Convertible Notes at substantial discount for ~$100 million cash in December to strengthen balance sheet • Current focus is on operational execution to improve working capital and deliver sustainable profitability 21

2024 Outlook Additional Commentary Full Year 2024 Guidance • Expect current macroeconomic and uncertain geopolitical environment to continue impacting $475 – $505 million Revenue top-line • Mid-point of revenue essentially flat YoY, with Non-GAAP seasonally soft start for Q1’24, down QoQ & YoY 42% – 44% Gross Margin • Expect sequential improvement throughout FY’24 after Q1 Non-GAAP $223 - $238 million • Gross margin improvement resulting from in- OpEx sourcing and efficiency initiatives • Break even or better Adj. EBITDA driven by margin Adjusted Break even or better improvement and cost reductions EBITDA 22

Q&A Session 1-201-689-8345 23

Thank You Find out more at: www.3dsystems.com 24

Appendix ©2022 3D Systems, Inc. | All Rights Reserved.

Presentation of Information 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP revenue excluding divestitures and on a constant currency basis (sometimes referred to as excluding divestitures and FX effects), non-GAAP Gross profit, non-GAAP Gross profit margin, non-GAAP Operating expenses, non-GAAP Operating (loss)/income, non-GAAP Interest and other income/(expense), net, non-GAAP Net income (loss), non-GAAP Basic and Diluted Income (Loss) per Share, adjusted EBITDA and adjusted EBITDA Margin. These non-GAAP measures exclude certain special items that management does not view as part of 3D Systems’ underlying results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into underlying business trends and results and provide a more meaningful comparison of period-over-period results. Additionally, management uses the non-GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. 3D Systems’ non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be calculated the same as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules in the Appendix. 3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP gross profit margins and non-GAAP operating expenses to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including legal, acquisition expenses, stock-compensation expense, intangible amortization expense, restructuring expenses, and goodwill impairment, are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially. 26

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