Post on 18-Jul-2018
Asia | The Americas | Europe
© Copyright 2013 ExOneNASDAQ: XONEwww.exone.com
Investor PresentationOctober 2013
John IrvinChief Financial Officer
© Copyright 2013 ExOneAsia | The Americas | Europe
Safe Harbor Statement
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These slides and the accompanying oral presentation contains 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; 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; 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, energy and other industrial products; the impact of disruption of our manufacturing facilities or PSOs; liabilities under laws and regulations protecting the environment; the impact of governmental laws and regulations; operating hazards, war, terrorism and cancellation or unavailability of insurance coverage; the effect of litigation and contingencies; and the adequacy of our protection of our intellectual property, and other factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012 and our other filings 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 our underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. Except as required by law, we disclaim any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in these slides and the accompanying oral presentation.The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. This document has not been approved by any competent regulatory or supervisory authority.The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of ExOne.This document will not be left behind after this presentation and by accepting this document and attending the presentation you agree to be bound by the foregoing limitations.
© Copyright 2013 ExOneAsia | The Americas | Europe
Global Additive Manufacturer
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“A Category of One” ExOne is distinctively positioned as the industrial provider of 3D printing
NASDAQ: XONE IPO Date: February 12, 2013
Recent Price $44.81 Shares outstanding 14.4 million
Market Cap $644.7 million Institutional Ownership 29.0%*
Low/High Range $18.00/$78.80 Insider Holdings 27.5%
Average Trading Volume (Trailing three months)
848.8k 3-Yr. Revenue CAGR (2009-2012)
46%
Market Data as of 9/26/13 (Source: Bloomberg)*Institutional ownership as of 6/30/13, prior to secondary offering
Founded in 2005
© Copyright 2013 ExOneAsia | The Americas | Europe
Our Strategies for Growth
Expand network of production service centers (“PSCs”)
Qualify new industrial materials printable in our systems
Increase the efficiency of our machines to expand the addressable market
Focus upon customer training and education to promote awareness
Achieve revenue balance and geographic diversification
Advance pre-print design and post-print processing capabilities to accelerate the growth of our 3D printing technology
Pursue growth opportunities through acquisitions, alliances and/or strategic investments
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© Copyright 2013 ExOneAsia | The Americas | Europe
Investment Highlights
• Disruptive technology pure play in industrial 3D printing (additive manufacturing)
• Industrial 3D printing leader – binder jetting process– Proprietary, proven technology– Fast machines – Large build chambers– Certified industrial materials
• Global presence– Installed base of nearly 100 3D printing machines– Production Service Centers / facilities/sales offices worldwide
• The Americas• Europe• Asia
• Management track record for success• Significant insider ownership - 27.5% post offering
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• 3D Printed Products, Materials and Other (PSC) (41% of 1H13 Revenue)
– Production Service Centers– Consumable materials sales– Replacement parts and other
services
Disruptive Industrial 3D Printing
• 3D Printing and Laser Machine Sales (59% of 1H13 Revenue)
– Sand printing for molds and cores– Metal printing for prototyping and
complex functional metal parts
PSCsSales Offices
6 PSCs 15 PSCs by 2015
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© Copyright 2013 ExOneAsia | The Americas | Europe 7Asia | The Americas | Europe © Copyright 2013 ExOne
Introduction Ø 2011 Ø 2012 Ø 2013
ASP Ø $1,400,000 Ø $800,000 - $900,000 Ø $400,000
Print Box Ø 180 x 100 x 70 cm Ø 78 x 40 x 40 cm Ø 40 x 25 x 25 cm
Speed Ø ~24 hours per job box Ø ~14.5 hours per job box Ø ~14 – 21 hours per job box
Materials Ø Silica sand, cerabeads,ceramics
Ø Silica sand, cerabeads,ceramics, stainless steel, bronze, iron, bonded tungsten, glass
Ø Ceramics, stainless steel, bronze, iron, bonded tungsten, glass
Max Platform Print Platform Flex Platform
3D Printing Machines(59% of 1H 2013 Revenue)
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© Copyright 2013 ExOneAsia | The Americas | Europe
• Provide sand molds and cores to the global metal casting industry– Global metal casting industry
produced over 98.5 million metric tons of castings in 2011*
• Able to turn around a casting from order to shipment quicker (JIT) than traditional methods– Through 3D printing of sand
molds, process reduced to days, not weeks
• May combine several sand printed molds to make much larger parts
Sand Molds for the Casting Industry
* Source: American Foundry Society
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Metal Printed Parts/Material Development
Ø Bonded Tungsten
Ø Iron
9Asia | The Americas | Europe © Copyright 2013 ExOne
Ø Steel
Ø Bronze
Ø Silica Sand
Ø Glass
At IPO
New materials expand the addressable market
Ø Titanium
Ø Aluminum
Ø Tungsten Carbide
Ø Magnesium
Ø AerospaceØ Automotive
Ø AerospaceØ AutomotiveØ Heavy Equipment
Ø Oil & Gas
Ø AerospaceØ Automotive
Recent Pending Applications
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© Copyright 2013 ExOneAsia | The Americas | Europe
3D Printed Products, Materials and Other (PSC) (41% of 1H 2013 Revenue)
10Asia | The Americas | Europe © Copyright 2013 ExOne
Recurring Revenues• PSC’s – gateway to 3D printing for new industrial customers
– “Try before you buy”– PSCs generate all machine customers
• Collaborative engineering process with customer base
• Consumables: high margins, recurring, customer collaboration
Existing PSCsPotential PSCsSales Offices
6 PSCs 15 PSCs by 2015
PSC’s-Superior ROI
Ø $2-$4 MM start-up costØ ~2 years to breakeven (40% of
capacity)Ø Robust incremental margin
above breakevenØ 15 PSCs by end of 2015
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© Copyright 2013 ExOneAsia | The Americas | Europe
PSCs Drive Machine Sales, Consumables/Services
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Canadian Aerospace Manufacturer European Pump Manufacturer
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
2010 2011 2012 YTD 2013
Thou
sand
s
PSC Consumables Services & Other
0.010.020.030.040.050.060.070.080.090.0
2010 2011 2012 YTD 2013
Thou
sand
s
PSC Consumables Service & Other
$1.5 MM Machine Sale $1.1 MM Machine Sale
($ thousands) ($ thousands)
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© Copyright 2013 ExOneAsia | The Americas | Europe
ExOne’s Addressable Market
• Global industrial sand mold industry estimated* at $4 billion to $10 billion in 2012– 3D printed sand molds can be
used for almost any application where an industrial mold is needed
– Faster turnaround (JIT) and increased freedom of design create significant opportunities
• Global machine tool consumption estimated** at $88.6 billion in 2012– Prototyping and increased
design freedom present opportunities
– Expanded material offering and technological improvements could increase the addressable portion of this market
Metal Printed PartsSand Molds
** Source: Oxford Economics* Source: American Foundry Society
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© Copyright 2013 ExOneAsia | The Americas | Europe
ExOne Binder Jetting TechnologyExpanding Addressable Industrial Markets
• Traditional Manufacturing Increasing complexity leads
to increased costs
Cos
t
Complexity
SubtractiveManufacturing
Early ExOne Cost
Addressable Market
(Shaded)
Cos
t
Complexity
Addressable Market
(Shaded)
SubtractiveManufacturing
Early ExOne Cost
CurrentExOne Cost
• ExOne 3D Printing: No change in cost as
complexity increases
Ø Machine cost per cubic inch down 95% over last decade
Ø Reduced unit costs dramatically expand ExOne’s addressable market
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© Copyright 2013 ExOneAsia | The Americas | Europe
Binder Jetting vs Laser & E Beam
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Characteristics End Markets
BinderJetting
Ø Successive deposition of bonding agent to powder to materialize products
Ø Automotive
Ø Aerospace
Ø Heavy Equipment
Ø Oil/Fluid/Gas
Laser & E Beam
Ø Uses a laser (thermal energy) to materialize products
Ø Aerospace
Ø Medical
Ø Dental
Ø Art/Jewelry
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© Copyright 2013 ExOneAsia | The Americas | Europe
M-FlexTM Broadens Opportunities
• Unique advanced metal 3D printing machine with tremendous throughput capabilities
• Only machine using jet binding process to print metal production parts Larger print box (40x25x25cm)
enables increased applications
More productive than other 3D printing processes, within 24 hours
• Prints 60 – 70% density in 30 second layers
• Enables industrial customers to increasedesign complexity and production optimization
• Launched in 2013
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© Copyright 2013 ExOneAsia | The Americas | Europe
16Asia | The Americas | Europe © Copyright 2013 ExOne
Design
CAD
Production / Printing of Near Net Parts
Forge
ExOne 3D Printed Sand
Cast
Machine
Net Part Completion
Finish Machine
Traditional Cast
ExOne Direct Print
ExOne Advantages:Ø Design FreedomØ Design OptimizationØ Shorter Delivery Time (JIT)Ø Lower Cost of Production
Evolving Industrial Production Process
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17Asia | The Americas | Europe © Copyright 2013 ExOne
ProductionTechnology
Ø Traditional casting Ø 3D printed core / mold
Ø 3D printed part
Weight Ø 5.78 lbs Ø 5.04 lbs casted in aluminum
Ø 4.57 lbs if printed in aluminum
Comment Ø Solid internal structure
Ø Poured in foundry
Ø Permits addition of lattice structure
Ø Advanced multi-layer lattice structure
Case Study 1: Control Arm
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18Asia | The Americas | Europe © Copyright 2013 ExOne
• Produced lighter, more accurate magnesium castings
• Utilized advanced software to produce first article casting on 1st attempt
• Start to finish: 2 to 3 weeks vs 6 to 8 months with traditional methods
• National design award
Case Study 2: Sikorsky Aerospace
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Customers
19Asia | The Americas | Europe © Copyright 2013 ExOne
Other IndustriesPower Fluid Handling
AerospaceAutomotive Heavy Equipment
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© Copyright 2013 ExOneAsia | The Americas | Europe
Progress Since February 2013 IPO
20Asia | The Americas | Europe © Copyright 2013 ExOne
Area Goal StatusMaterial development Ø New material every six months Ø On plan
- 7/23/13 – Iron- 8/8/13 – Bonded Tungsten
Machine sales Ø Sell existing platformsØ Launch M-FlexTM in 2H 2013
Ø On plan- M-FlexTM 1st sale 9/13 – 3 POs
New PSCs Ø Two new PSCs in 2013 Ø On plan- Auburn, Washington – 7/31- Nevada – 3Q 2013- Opened sales centers in Brazil / China
Upgrade of facilities Ø Build new Germany HQØ Expanding Japan PSC
Ø On plan- Commenced construction of German HQ- Design complete for Japanese HQ
Build out sales force Ø Expand direct sales force from 9-17 in 2013
Ø On plan- Doubled direct sales force - Direct salespeople in Brazil and China at
new sales offices
IP Ø Expand and protect Ø On plan- Full-time internal patent counsel- 15 commercially relevant patents in
development
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© Copyright 2013 ExOneAsia | The Americas | Europe
21Asia | The Americas | Europe © Copyright 2013 ExOne
CAD Software
Material Procurement
Optimization Tools
Machine Development
Related Services & Consumables
PSC Production
Post-Printing
Sintering Technology
Finishing Processes
Improve Foundry / Casting Process
Acquisitions / JVs / Organic
Pre-Printing 3D Printing
Use of Proceeds
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© Copyright 2013 ExOneAsia | The Americas | Europe
Financial Metrics
22Asia | The Americas | Europe © Copyright 2013 ExOne
Machines Sales Revenue ($MM)1
2011 2012 6 Mo 2012
6 Mo 2013
1
9
1
61
3
11
2
1
1
S-Max S-Print M-Lab S 15 Laser
2011 2012 2013 Guidance
6 Mo 2012
6 Mo 2013
5.415.7
1.510.1
9.9
13.0
5.9
7.1
48 - 52
3D Printing Machines
3D Printed Parts, Materials and Other Services
2013 Guidance
4
13
1
9
15.3
28.7
7.4
17.2
(1) Guidance provided on August 13, 2013
60+%
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© Copyright 2013 ExOneAsia | The Americas | Europe
2011 2012 2013 Guidance
6 Mo 2012
6 Mo 2013
(5.2)
(0.3)
(4.4)
(2.3)
23Asia | The Americas | Europe © Copyright 2013 ExOne
Gross Margin %1 OpEx ($MM)1
2011 2012 2013 Guidance
6 Mo 2012
6 Mo 2013
23.8%
42.4% 42 - 46%
31.6%
40.9%
2011 2012 2013 Guidance
6 Mo 2012
6 Mo 2013
8.812.5
18 - 21
6.89.6
Operating Income (Loss) ($MM)1,2
(1) Guidance provided on August 13, 2013(2) Before non-cash compensation expense of $7.7 million and $0.3 million for 2012 and first six months of 2013, respectively; derived from guidance
Financial Metrics
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© Copyright 2013 ExOneAsia | The Americas | Europe
Balance Sheet
24Asia | The Americas | Europe © Copyright 2013 ExOne
($ MM) Pre Follow On Adj. Pro Forma
Cash $64.6 $71.7 $136.3
Long-term Debt and Capital Lease Obligations
$3.5 $0.0 $3.5
Stockholders' Equity $84.2 $71.7 $155.9
Total Capitalization $152.2 $143.4 $295.6
Balance sheet as of 6/30/2013. Adjustments reflect $62.00 offering price
$64.8
$64.8
$87.7 $64.8 $152.5
$149.0
$129.4
$84.2
$3.5 $0.0 $3.5
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© Copyright 2013 ExOneAsia | The Americas | Europe
2013 Growth Drivers
25Asia | The Americas | Europe © Copyright 2013 ExOne
Revenue ($MM)1 Growth Drivers
6 Mo 2013 2013 Guidance
10.1
7.1
48-52
3D printing machines3D printed parts, materials and other services
17.2
• Machine Sales (59% of 1H 2013)– Identified customers for machines
currently in production– Pipeline is strong– Expanding production capacity
• PSCs / Consumables / Services (41% of 1H 2013)– Expanding global PSC network– Capacity and productivity
improvements at existing PSCs– Growing consumables and services
(1) Guidance provided on August 13, 2013
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© Copyright 2013 ExOneAsia | The Americas | Europe
2013 Expectations*
Revenue Gross Margin OpEx
$48 million to$52 million
42% - 46% $18 million to $21 million
Low End Higher End Upper End
* Guidance as of August 13, 2013
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© Copyright 2013 ExOneAsia | The Americas | Europe
Long-Term Financial Targets
27Asia | The Americas | Europe © Copyright 2013 ExOne
40 – 50%+ 45 – 50% 25 – 30%EBITDA Margin %EBITDA Margin %Gross Margin %Gross Margin %Organic Revenue Growth %Organic Revenue Growth %
• Growth on track New PSCs New materials Improved machine capabilities Installed base drives recurring revenue
• Increase 3D market penetration by improving pre- and post-printing processes through acquisitions / JVs
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© Copyright 2013 ExOneAsia | The Americas | Europe
Questions?
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Asia | The Americas | Europe
© Copyright 2013 ExOneNASDAQ: XONEwww.exone.com
John IrvinChief Financial Officer
Investor PresentationOctober 2013