20130926 xone october investor presentation finaldoc.xueqiu.com/1419e3585946153fe122a207.pdf ·...

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.


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


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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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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• 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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3D Printed Products, Materials and Other (PSC) (41% of 1H 2013 Revenue)


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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PSCs Drive Machine Sales, Consumables/Services


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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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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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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Binder Jetting vs Laser & E Beam


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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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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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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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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• 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


Other IndustriesPower Fluid Handling

AerospaceAutomotive Heavy Equipment

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Progress Since February 2013 IPO


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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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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Financial Metrics


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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2011 2012 2013 Guidance

6 Mo 2012

6 Mo 2013

(5.2)

(0.3)

(4.4)

(2.3)


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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Balance Sheet


($ 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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2013 Growth Drivers


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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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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Long-Term Financial Targets


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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Questions?

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20130926 xone october investor presentation finaldoc.xueqiu.com/1419e3585946153fe122a207.pdf ·...

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