Investor Presentation July 2015

Transcription

1 Investor Presentation July 2015 Brian Smith CFO & Treasurer

2 Safe Harbor Statement These slides and the accompanying discussion contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "typically," "anticipates," "believes," "appears," "could," "plan," and other similar words. Such statements include, but are not limited to, statements concerning future revenue and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, which include our ability to qualify more materials in which we can print; the availability of skilled personnel; the impact of increased operating expenses and expenses relating to proposed acquisitions, investments and alliances; our strategy, including the expansion and growth of our operations; the impact of loss of key management; our plans regarding increased international operations in additional international locations; sufficiency of funds for required capital expenditures, working capital, and debt service; the adequacy of sources of liquidity; expectations regarding demand for our industrial products, operating revenues, operating and maintenance expenses, insurance expenses and deductibles, interest expenses, debt levels, and other matters with regard to outlook; demand for aerospace, automotive, heavy equipment, energy/oil/gas and other industrial products; the scope, nature or impact of acquisitions, alliances and strategic investments and our ability to integrate acquisitions and strategic investments; liabilities under laws and regulations protecting the environment; the impact of governmental laws and regulations, including the related challenges of conducting business in international locations such as Russia; operating hazards, war, terrorism and cancellation or unavailability of insurance coverage; the effect of litigation and contingencies; the impact of disruption of our manufacturing facilities or PSCs; and the adequacy of our protection of our intellectual property; material weaknesses in our internal control over financial reporting and other factors disclosed in the Company's Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Because they are forward-looking, these statements should be evaluated in light of important risk factors and uncertainties. Should one or more of these risks or uncertainties materialize, or should any of ExOne's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in these slides and accompanying discussion. 2

3 Global Industrial Additive Manufacturer ExOne is distinctively positioned as the industrial provider of 3D printing through its binder jetting technology NASDAQ: XONE IPO Date: February 12, 2013 Recent Price $10.62 Shares outstanding 14.5 million Market Cap $153.7 million Institutional Ownership 21.8% 52 Wk Low/High $10.62/42.55 Insider Holdings 37.4% Average Trading Volume (Trailing three months) thousand 3-Yr. Revenue CAGR ( ) 42.1% Market Data as of 07/02/15 (Source: Bloomberg) Ownership as of 3/31/2015 Founded in

4 Disruptive Industrial 3D Printing 3D Printing Machine Sales (49% of Q TTM Revenue) Sand printing for molds and cores Metal printing for prototyping and complex functional metal parts 3D Printed Products and Aftermarket ( Non-Machine ) (51% of Q TTM Revenue) Production Service Centers (PSCs) Consumable materials Replacement parts and service PSCs 4

5 Multi 3D Printing Machine Platforms: Broader Industrial Applications 5

6 Binder Jetting vs. Laser & E Beam Binder Jetting Successive deposition of bonding agent to powder to materialize products within a job box Laser & E Beam Uses a laser or electron beam (thermal energy) to materialize products, one at a time 6

7 Non-machine Revenue: 3D Printed Products and Aftermarket Non-machine Revenue: PSCs gateway to 3D printing for new industrial customers Try before you buy Collaborative engineering process with customer base Consumables: recurring, customer collaboration PSCs drive machine sales and aftermarket opportunities 7

8 Catalyzed by Capital Investment Strategy: Creating Powerful Mix of Capabilities Introduce relevant industrial markets to our binder jetting technology Develop printable and qualified materials for use in our machines Enhance machine capability, including speed and automation Pursue inorganic growth opportunities 8

9 2015 Priorities Strategic Hiring Customer-Centric Technology Investments PSC Expansion Focus on Powder Injection Molding and Foundry Markets 9

10 Human Capital Investments Workforce Growth Leveling Off Total Employees* Strategic Hiring: John Baliotti, Director of Marketing & Business Development Eric Bader, European CFO Q Q Q Q Q Q Q Q Q * Total employees excludes temporary employees 10

11 Design Center Customer Adoption Support Design Center Design center rendering; North Huntingdon, PA 11

12 Machine Development Direct Printing Innovent TM is ideal size and price point for university and industry research Tool for qualifying powdered materials and processes Complements M-Flex TM Accelerating adoption rate of binder jetting technology Customers are pairing Innovent TM and M-Flex TM Innovent TM direct 3D printing system, introduced January

13 Machine Development Indirect Printing Exerial TM indirect 3D printing system, announced March 2015 Positive feedback on industrial series production Four Exerial beta machines shipped in Q2 13

14 Materials Development Qualified Materials Printable Materials To support Innovent TM adoption, focused on printable materials Partnering with customers to drive development and commercialization of several materials Focusing on certification of new binders 420 Stainless Steel infiltrated with Bronze 316 Stainless Steel infiltrated with Bronze Iron infiltrated with Bronze IN Alloy 625 Bronze Bonded Tungsten Glass Direct Indirect Cobalt-Chrome IN Alloy 718 Iron-Chrome-Aluminum 17-4 Stainless Steel 316 Stainless Steel Tungsten Carbide Silica Sand Ceramic Sand 14

15 3DXL Exhibition at Toronto s Design Exchange Exhibit showcases large-scale 3D printing capabilities Total weight of Arabesque Wall installation: 0.8 tons Printed in 4 days, assembled in 4 hours

16 ExCast Follow-on ExCast project for FARDS program (Future Advanced Rotorcraft Drive System) Focus of ExCast strategy is on military and government applications Sikorsky s First Test Flight of S-97 RAIDER 16

17 Financial Review

18 Driving Revenue Growth Revenue ($MM) (1) E 3D Printed Products & Aftermarket 3D Printing Machines 2015 Guidance (1) Guidance as of June 11, 2015 Growth Drivers Machine Sales (49% of Q TTM) Growing adoption rate of binder jetting technology Introducing series production capability Advancing materials development Non-Machine Sales (51% of Q TTM) Growing industrial 3D printing awareness Increasing utilization of global PSC network Evolving ExCast strategy 18

19 Strong Leverage Opportunity Gross Margin (% of Revenue) 36%-40% (1) 42.4% 39.4% 3.6% (2) 23.8% E Investing in Growth R&D ($MM) SG&A ($MM) E E (1) Guidance as of June 11, 2015; gross margin excludes $0.5 million to $1.0 million of non-recurring facility move/consolidation costs and SG&A excludes $0.5 million to $1.0 million of costs associated with ERP system implementation. (2) Gross profit margin for 2014 impacted by $1.6 million of atypical costs including $1.0 million for implementation of ExCast strategy, $0.2 million for facility moves and $0.4 million for the write-off of a non-core product line. (3) 2012 equity-based compensation expense unrelated to the Company s 2013 Equity Incentive Plan. (4) SG&A expense for 2014 includes $3.5 million of atypical costs including $0.5 million relating to ERP system, $2.2 million for bad debt charges, and $0.4 million for severance costs; Q includes $0.3 million for employee termination costs (1) (3) (4) (1)(4)

20 Capital Expenditures ($ in millions) 2014A 2015E* Facility Expansions $22.4 $3-$4 PSC Machines & Related Equipment $5.3 $1-$2 ERP System $0.9 ~$1 TOTAL $28.6 $5-$7 * CapEx Guidance as of June 11, 2015 Q CapEx = $4.3 20

21 Q Cash Flows ($ in millions) $36.2 $(1.8) $2.2 $(6.5) $30.1 Beginning Cash & Equivalents Capital Expenditures Working Capital Net Loss, Net of Non-Cash Items, and Other Ending Cash & Equivalents 21

22 Solid Balance Sheet for Growth ($ in millions) December 31, 2014 March 31, 2015 Cash & equivalents $36.2 $30.1 Total debt $2.6 $2.4 Total equity $118.5 $105.9 Expecting Year-End 2015 Cash & Equivalents of $25 - $30 Million* * Cash Guidance as of June 11,

23 2015 Guidance (1) Revenue Gross Margin (2) SG&A (3) R&D $58M to $66M or 32% to 50% Growth 36% - 40% $21M to $23M or 32% to 40% of Sales $6.5M to $7.5M or 10% to 13% of Sales (1) Guidance as of June 11, 2015 (2) Excludes anticipated non-recurring costs estimated at $0.5 million to $1.0 million associated with completion of facility integrations (3) Excludes approximately $0.5 million to $1.0 million of costs associated with ongoing implementation of enterprise r resource planning system 23

24 2015 Guidance Key Considerations (1) Opportunities Adoption rate of our technology Moving from prototyping to production Exerial machine Multiple global OEM installations Stabilization of global currencies U.S. economic demand (1) Guidance as of June 11,

25 2015 Guidance Key Considerations (1) Risks Russian sanctions Energy capex expectations Foreign government subsidy programs China capex expectations (1) Guidance as of June 11,

26 Commitment to Goals We have significant resources committed to achieving our guidance, including our sales goals and improving execution. We can feel the growing enthusiasm from our customers and potential customers. And we re positioned to respond to that growing demand as the adoption rate of our binder jetting technology accelerates. 26

27 Questions? 27

28 Supplemental Information

29 Capacity Expansion ExOne Germany ExOne North Huntingdon ExOne Japan ExOne Italy ~340,000 Square Feet Globally, Up 70%+ in

30 Innovative Customers Automotive Aerospace Heavy Equipment Power Fluid Handling Other Industries 30

31 ExCast: Addressing the Full Value Chain ExCast Mission: Supply complex finished casting parts for prototyping and short run production on a rapid delivery platform to a global industrial customer base. ExCast vertically integrates processes under ExOne leadership & control 31

32 Customer Success: BMW Vision D Printing of Cores Published in GIESSEREI 03/2014 By Jean-Marc Ségaud, Head of Pre-development, BMW Light Alloy Foundry, Landshut, Germany As 3D printing technology becomes more competitive, it will be possible to transfer all of its technical advantages to high-volume series production. Minimal waste of material/energy Low production costs Design freedom increases efficiency Manufacturing on-demand eliminates expensive storage Removal of sand casting molds from the installation space of a 3D printer at BMW in Landshut, Germany The first core shooting machines and the associated core boxes will be replaced by 3D printers over the next 10 years, and high-speed printers will be used in series production. 32

33 Customer Success: Bosch Rexroth For Core Production the Bosch Rexroth Foundry Relies on 3D Printing MaschinenMarkt 04/2014 In hydraulics, increasingly complex customer demands require new approaches to the functionality of cast components. To meet the requirements in this field... The Bosch Rexroth foundry is relying on 3D printing for core production. Two printers: S-Max Furan & S-Max Phenol Small-scale runs and spare parts produced with optimal efficiency and costeffectiveness Bosch Rexroth is able to respond quickly and flexibly to customer demands Free from technological limitations of traditional process 3D printing makes it possible to produce molds and cores for prototypes and small-scale runs without tooling. (Photo: Bosch Rexroth) 33

34 Customer Success: Sikorsky Aerospace Stock image of Sikorsky aircraft Produced lighter, more accurate magnesium castings Utilized advanced software to produce first article casting on first attempt National design award 34

35 Case Study 1: Control Arm Production Technology Traditional casting 3D printed core / mold 3D printed part Weight 5.78 lbs 5.04 lbs casted in aluminum 4.57 lbs if printed in aluminum Comment Solid internal structure Poured in foundry Permits addition of lattice structure Advanced multilayer lattice structure 35

36 Case Study 2: Value Added Solution Mud Pump Impeller Issue ExOne Solution Need precision impeller part of down-hole drilling equipment Printed impeller in S4 stainless steel/bronze matrix to specification Traditional cost: $400 to $500 per unit Produced in China long lead times Wear resistance unsatisfactory Cost: $150 per unit Produced in the US and shipped within 15 to 20 days Superior wear resistance Traditional after hours of use 36 3D printing after 600 hours of use

37 For More Information, Contact: Brian Smith Chief Financial Officer & Treasurer (724) Karen L. Howard Investor Relations (716) NASDAQ: XONE