Exhibit 99.1

Brooklyn, New York September 8th, 2014

 


Welcome Shane Glenn VP Investor Relations

 


3 Stratasys Forward looking statement 3 Certain information included or incorporated in this presentation may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are often characterized by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue,” “believe,” “should,” “intend,” “project” or other similar words, but are not the only way these statements are identified. These forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, statements that contain projections of results of operations or of financial condition (including, with respect to the MakerBot, Solid Concepts and Harvest Technologies acquisitions) and all statements (other than statements of historical facts) that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: changes in global macroeconomic conditions, which may impact the level of demand for Stratasys’ products; potential changes and shifts in customer demand away from products with the functionality of Stratasys’ products; the effects of competition, which may cause Stratasys to decrease its selling prices for its products; unfavorable fluctuations in component costs resulting from changes in component prices and/or exchange rates, which could increase the cost of producing Stratasys’ products, Stratasys’ ability to efficiently and successfully integrate the operations of Stratasys, Inc. and Objet Ltd. after their merger as well as the ability to successfully put in place and execute an effective postacquisition integration plan for MakerBot, Solid Concepts, Harvest Technologies and Stratasys’ other acquisitions; general market, political and economic conditions in the countries in which the Stratasys operates; projected capital expenditures and liquidity; changes in Stratasys’ strategy; government regulations and approvals; changes in customers’ budgeting priorities; litigation and regulatory proceedings; and those factors referred to under “Risk Factors”, “Information on the Company”, “Operating and Financial Review and Prospects”, and generally in the Company’s annual report for 2013 filed on Form 20-F and in other reports that the Company files with the SEC, including the “Risk Factors” described in our Report of Foreign Private Issuer on Form 6-K furnished to the SEC on August 7, 2014. Readers are urged to carefully review and consider the various disclosures made in the Company’s SEC reports, which are designed to advise interested parties of the risks and factors that may affect its business, financial condition, results of operations and prospects. Any forward-looking statements in this presentation are made as of the date hereof, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 


4 8:30a.m. – 11:30a.m. Management Presentations David Reis (CEO) Gilad Yron (SVP, Products) Break Rich Garrity (VP, Vertical Solutions) Zehavit Reisin (VP, Materials Business Unit) 11:30a.m. – 12:30p.m. Lunch & Product Demos 12:30p.m. – 3:30p.m. Management Presentations Bre Pettis (MakerBot) Dan Yalon (EVP, Business Development/Marketing) Break Shane Glenn (VP, Investor Relations) Q&A Agenda

 


5 Introduction David Reis CEO

 


6

 


7 Who We Are How We Work Where We’re Going 01 02 03

 


8 Who We Are How We Work Where We’re Going 01 02 03

 


9 We shape lives by revolutionizing the way things are made.

 


10 2020 Expected Market Size $21+ Billion Source: Wohler’s 2014 $12.5 billion $21.0 billion $3.1 billion 2013 Actual 2018 Estimate 2020 Estimate Estimated Global Market for Additive Manufacturing Products & Services

 


11 Major Milestones & Accomplishments 2012 2013 2014

 


12 System Sales & Support Parts Services Corporate Headquarters Global Offices 26 Manufacturing Locations 4 Employees +2,500 Resellers +260

 


13 Historical Growth Industry Leader $750-770 $2.25-$2.35 Revenue (M) Non-GAAP Diluted EPS Fiscal 2014 Financial Guidance 2011 2012 2013 2014 $277M $359M $485M $750M-770M Non-GAAP Pro Forma Non-GAAP Pro Forma Non-GAAP Non-GAAP Financial Guidance $.94 $1.49 $1.84 $2.25-$2.35

 


14 3D Printing Leader Source: Installed base according to Wohlers Report 2014 and Stratasys Ltd. estimates Stratasys Other 29,093 2011 43,255 75,818 2012 2013 2014 99,529 Q1 Q2 45.3% 54.7% 64.7% 35.3% Industrial Units Sold - 2013 Desktop Units Sold- 2013 Pursuit of Market Leadership in everything we do 1 Non-GAAP and Pro Forma for MakerBot Pro Forma Cumulative Systems Sold

 


15 Growing Opportunities in Diverse Set of Industries Industrial Aerospace Automotive Military Architecture Consumer Medical Dental Jewelry Education Consumer Products Entertainment

 


16 Product Suites Unmatched ability to meet customer’s diverse additive manufacturing needs Fortus Eden Technology Offering Systems Parts Services Mojo MakerBot Dimension uPrint Solidscape Fused Deposition Modeling (FDM) Wax Deposition Modeling (WDM) PolyJet Fused Deposition Modeling (FDM) PolyJet Wax Deposition Modeling (WDM) Stereolithography (SLA) Selective Laser Sintering (SLS) Direct Metal Laser Sintering (DMLS) Binder Jetting Product Connex

 


17 Material Offerings High Temperature Castable High Impact Rubber like Metals Rigid Color High Definition Transparent Bio-compatible Systems & Parts Services Parts Services Over 1,200 total material options

 


18 Who We Are How We Work Where We’re Going 01 02 03

 


19 Solution driven market approach

 


20 DISRUPTING enterprise processes through 3D printing solutions EMPOWERING individuals with accessible 3D printing 20

 


21 DISRUPTING enterprise processes through 3D printing solutions

 


22 Accelerate time-to-market for new products Enable superior product characteristics and capabilities Allow for mass customization and new business models Deliver End-Use-Part and augmented manufacturing solutions DISRUPTING enterprise processes through 3D printing solutions

 


23 Solutions & Applications Augmented Manufacturing: Approximately 80% of FDM system owners in the U.S. are using the technology for a jigs, fixtures and end use parts application. Organizations can realize 40 to 90% reductions in lead-times and 70 to 90% cost savings

 


24 EMPOWERING individuals with accessible 3D printing

 


25 EMPOWERING individuals with accessible 3D printing Individuals acting independently - acting alone anywhere Touching as many people as possible with the technology of 3D printing Removes traditional barriers associated with 3D printing

 


26 Solutions & Applications Disrupting traditional design processes: Rising accessibility of desktop 3D printing is driving increased adoption with designers, engineers, entrepreneurs, and educators. Education is one of the main growth drivers for our industry. We are building an ecosystem with the future in mind.

 


27 Who We Are How We Work Where We’re Going 01 02 03

 


28 Strategic Imperatives Lead in Prototyping 01 Expand the Direct Digital Manufacturing (DDM) Business 02 Introduce Vertical Applications 03 Accelerate New Solutions to the Market 04 Improve 3D Printing Accessibility 05 Improve Customer Intimacy 06

 


29 Competitive Advantages Focused Strategy & Business Model Leading Sales Channel & Installed Base Disciplined M&A Strategy & Track Record Leadership in Prototyping & Verticals Targeted Investments to Support Growth Software & Ecosystem to Improve 3D Printing Accessibility 600+ Patents & Patents Pending Strong Brand & Reputation Strategic Partnerships & Alliances

 


30 We are Stratasys We are innovation We are fearless leaders We are customer driven Our quality matters Our people make the difference

 


31 Thank you

 


32 Products & Markets Gilad Yron SVP, Products

 


33 The Power Of A Portfolio Innovation Pillars What We Make Innovation In 2014 Salesforce.com 01 02 03 04 05

 


34 The Power Of A Portfolio Innovation Pillars What We Make Innovation In 2014 Salesforce.com 01 02 03 04 05

 


35 Christie Digital High-end digital projection systems • Difficult to forecast which bezels are needed, cost of tooling very high FDM technology initial investment • Produce high-temperature components • Functional testing for vibration, drop, EMI, thermal PolyJet Technology complimentary • Simulate feel & text for keypads with Connex • Prototype transparent lenses & light diverters Streamlined the “Build. Test. Optimize.” process • In-house capabilities now eliminates outsources & customs delays • Confidence product is “done right the first time” Right the 1st time

 

 


36 The Power Of A Portfolio Innovation Pillars What We Make Innovation In 2014 Salesforce.com 01 02 03 04 05

 


37 Development Pillars ABS Smarter & Better Materials Eden Higher Performance Printers Insight Higher Accessibility & Ease of Use PC–ABS Connex Catalyst EX Ultem9085 Connex3 Print Wizard

 


38 We are Innovation External Cooperation (Joint Development Agreements) R&D Innovation Labs Disruptive technologies, materials, systems, and software

 


39 From Innovation To Product Products Platforms Technology Enablers Innovation Groups / M&As / R&D Mojo 2012 Project Solo 2010

 


40 The Power Of A Portfolio What We Make Innovation In 2014 Salesforce.com 01 02 03 04

 


41 Stratasys for Every Product Stage Concept Prototype Production Not just a 3D printer. It’s an idea engine. Idea Series The power of prototyping. Maximized. Design Series Production. Without the line. Production Series

 


42 Stratasys FDM and PolyJet Materials Families Standard Plastics/ABS Engineering Plastics / Polycarbonate + Nylon High Performance Plastics /Ultem + PPSF Rigid Flexible Digital Materials / Digital ABS FDM Thermoplastics PolyJet Photopolymers

 


43 Solidscape High Precision 3D Printers Product Positioning Applications Verticals Solidscape® MAX2 Precision and Performance Micro Precision Casting Jewelry, IC, Industrial, Medical Solidscape® Pro Jewelry Manufacturing Made Easy Jewelry wax masters Jewelry MFG, EDU Solidscape® Studio Jewelry Perfection Simplified Jewelry designs Jewelry CR, EDU Solidscape® Lab Dental Wax-Ups Perfected Dental Wax-ups Dental High Precision 3D Printers for Manufacturing

 


44 Solidscape Materials Jewelry Industrial Medical • Direct manufacturing – wax to any material • 100% Castability • Hands free support removal • Environmentally safe Build Support Wax Dental

 


45 The Power Of A Portfolio Innovation Pillars What We Make Innovation In 2014 Salesforce.com 01 02 03 04 05

 


46 In 2014 alone New MakerBot Products 8 New Solidscape Products 9 New Polyjet &FDM Products 24

 


47 In 2014 alone New MakerBot Products 8 New Solidscape Products 9 New Polyjet &FDM Products 24 New Products 41 Redefining Industry Standards

 


48 The Power Of A Portfolio Innovation Pillars What We Make Innovation In 2014 Salesforce.com 01 02 03 04 05

 


49 The Power Of A Portfolio Innovation Pillars What We Make Innovation In 2014 Salesforce.com 01 02 03 04 05 The New Connex Family

 


50 Connex 3 Triple Jetting Technology The Triple Jetting Technology Three Base Materials Mixed Tray Common Platform Mixed Parts

 


51 Properties Summary Mixed Tray = = = Mixed Part Base Materials x3 Digital ABS + Tango Digital ABS 2 Resin DM Digital ABS + Shore A 3 Resin DM Color (CMY) + + 1 Connex 2 Connex 1 Connex 2 Connex 3 Connex

 


52 The Power Of A Portfolio Innovation Pillars What We Make Innovation In 2014 Salesforce.com 01 02 03 04 05 The New Connex Family New Materials

 


53 PolyJet Endur Simulated Polypropylene Material Fit and Assembly Snap fits Packaging and containers Great surface finish and thin wall stability Available on Objet30 Pro; EdenV; Connex

 


54 PolyJet New Colors Existing Color Palettes New Rigid Colors with B&W Combinations (available on Connex3) New Flexible Colors

 


55 FDM Nylon12 Toughness, Strength, and Flexibility Pressed metal inserts Snap fits Living hinges Fatigue resistant parts Toughest Nylon 12 in Additive Manufacturing Available on Fortus 360mc; 400mc; 900mc

 


56 FDM ASA Taking ABS to the next level UV Stability – “Outdoor ABS” Enhanced mechanical properties Great product aesthetics Released Sept. 8th

 


57 Superior Bridging & Sparse Fill 63% material savings by weight* *for dumbbell file ABS-M30 Sparse-filled 1.11 Kilograms ASA Sparse-filled 0.68 Kilograms

 


58 Stay Tuned: More is coming 20 YEARS OF EUROMOLD FRANKFURT/MAIN | GERMANY 10+ New Products

 


59 The Power Of A Portfolio Innovation Pillars What We Make Innovation In 2014 Salesforce.com 01 02 03 04 05

 


60 What is SFDC? Stratasys’ Customers Relationship Management Tool Links together the entire Stratasys Ecosystem SFDC Stratasys Consumables Sales Stratasys’s VARS SolidScape Stratasys Parts Business Stratasys Business Organizer MakerBot Stratasys Sales Team

 


61 Who is using it? VARs 300 Marketing / business dev / finance / other 70 Close to 850 total touch and use SFDC Lead qualification companies 20 MakerBot personnel 160 Stratasys sales / channels managers 120 Customer support staff 180

 


62 Customer 360 Stratasys’ Customers Relationship Management Tool Allow 360 view in one click Customer Consumable Install based MakerBot Opportunities Service Calls Parts Opportunities New Stratasys Opportunities

 


63 Complete Customer Life Cycle Campaigns Leads Generation Leads Distribution Opportunities Management Registration Mechanism Leads Qualification Booking Customer Support / Consumables

 


64 Live & “On The Fly” Business Intelligence Source Cross Sales Pipeline of each month by ex-partner Stratasys Objet

 


65 Live & “On The Fly” Business Intelligence Source Parts/Printers Referral - F D F Opportunities & their stage by RedEye sales rep. New Assignment List Disqualified Converted Leads from RedEye & their SSYS reseller In Progress RedEye to SSYS Opportunities Pipeline RedEye to SSYS Leads vs. SSYS Resellers

 


66 Live & “On The Fly” Business Intelligence Source Consumable Trends

 


67 Live & “On The Fly” Business Intelligence Source Application & Usage All Industries Application Split

 


68 Live & “On The Fly” Business Intelligence Source Competition

 


69 Because Knowledge is Power Lead Process Prospect instant survey • Survey prospects that turned neglected Qualification Company • Outsourced telemarketing company • Set up lead priorities for the partners Lead assignment enhancement • Second lead (if neglected) will go to another partner in the region Neglected Leads Trend (weekly, H2 2013)

 

 


70 Thank you

 

 


71 Vertical Solutions Richard Garrity VP, Vertical Solutions Growth Engine for Today & Tomorrow

 


72 2020 Expected Market Size $21+ Billion Source: Wohler’s 2014 $12.5 billion $21.0 billion $3.1 billion 2013 Actual 2018 Estimate 2020 Estimate Estimated Global Market for Additive Manufacturing Products & Services

 


73 Manufacturing Opportunity Across Key Verticals “We’re seeing manufacturing growing from a small share of the market, 12% today, to 46% of the market in 2025.” Lux Research, 30 March 2014 “3D printing could generate $100 to $200 billion in economic impact per year by 2025 from direct manufacturing of parts 3D printing of tools and molds could generate $30 to $50 billion.” McKinsey, May 2013 “We believe applications in these verticals (Aerospace, Automotive, Healthcare, and Industrial) could eventually support a $40bn+ market (15-20 years), with additional upside should the technology improve further over the long-term.” Goldman Sachs, 14 April 2014

 


74 Disrupting Enterprise Processes Stratasys products and solutions disrupt business processes • Additive Manufacturing eliminates the restrictions that subtractive methods impose • Additive Manufacturing significantly disrupts the economic formulas associated with mass production • Additive Manufacturing also requires significantly fewer processing steps, less assembly, and minimizes waste Additive Design (3-14 days) Print (1 Day) Assemble (0-5 Days) Traditional Additive Design ( 3-14 days) Design ( 3-14 days) Machine (1-10 Days) Print (1 Day) Assemble (0-5 Days) Waiting for Parts Delivery (30-40 Days) Assemble (5 Days)

 


75 Stratasys Here to Lead

 


76 Strategic Imperatives Lead in Prototyping Expand the Direct Digital Manufacturing (DDM) Business Improve Customer Intimacy Introduce New Vertical Applications Accelerate New Solutions to the Market Improve 3D Printing Accessibility

 


77 Launched New Business Unit Vertical Solutions Business Unit (VBU) Stratasys is accelerating its efforts into segments where disruptive solutions can unlock significant value across enterprise manufacturing processes New Vertical Solutions Business Unit (VBU) enables penetration into key segments with dedicated and focused resources developing unique market-specific solutions and/or go-to-market strategies Focused global team combines technical, commercial, and market-specific expertise to drive and support accelerated vertical penetration today while improving the vertical value proposition tomorrow Goal to maintain and grow leadership in each identified strategic vertical segment

 


78 VBU’s Vision We shape global manufacturing by delivering disruptive additive based solutions designed to unlock untapped value.

 


79 Accelerating Vertical Penetration Today Vertical marketing Vertical enablement tools Vertical knowledge transfer High-value vertical customer co-development initiatives Vertical application development Business plan built & approved Incubate & develop application Launch coordination & support Architect & coordinate GTM Enabled channel Customer need identified Customer need validated Market opportunity validated

 


80 TOOLING Things that enable better products to be produced Things that are components of or the end product JIGS & FIXTURES Things that improve production floor productivity DDM Growth Segments END-USE PARTS Augmented Manufacturing & End-Use Parts

 


81 Process Cost Estimate Traditional Molding & Casting $100,000 Direct Digital Manufacturing $35,000 Savings $65,000 (65%) Customer Success 55-70 assembly & inspection fixtures per vacuum • Made by molding and casting • Expensive and long lead times DDM reduces downtime • Fixture components quickly replaced • Streamlined inspection process Jigs / Fixtures Source: Company Estimates Optimizes Factory Floor Efficiency

 


82 3D Printed Molds Improve Product Design • Prototype parts produced using product’s final plastic material • Performance data gathered much earlier in the process • New molds quickly produced following each round of design modification • Streamlined inspection process “The ability to functionally test parts made of the final material makes it possible to efficiently and inexpensively modify the design prior to mass production.” R&D Manager Customer Success Injection Mold Tooling Method Production Time Cost Metal Mold (Production Mold) 56 days $52,725 PolyJet Mold 2 days $1,318 Savings 54 days (96%) $51,407 (98%) Source: Company Estimates Supplier for Top Manufacturers of Appliances & Commercial Vehicles

 


83 Customer Success Challenge Inability to make carbon fiber tubes and ducts that met consistent quality and performance requirements using conventional layup tools and methods Solution FDM soluble core molds allow parts to be fabricated with desired interior and exterior surface finishes without the need for multi-piece molds or sand cores Benefit Creation of high performance automotive parts with excellent surface finish and strength via a streamlined and consistent manufacturing process Source: Company Estimates Supplier for Automotive Aftermarket Performance Parts 3D Printed Soluble Cores Innovate Manufacturability • Rapid tooling of complex geometries that would be extremely difficult or impossible to produce with traditional manufacturing methods • Core components can be consolidated into one piece that eliminates bonding and results in consistent accuracy • Improved production yield by providing a reliable, automated process “Soluble cores allow me to design and make parts that I previously wouldn't have considered because of the difficulty involved in creating them.” Chris Lye Emerging Tooling

 


84 Augmented Manufacturing Injection Molding Assembly Guides Production Line Jigs Inspection Jigs • Approximately 80% of Fortus system owners produce molds, patterns, jigs and fixtures • Customers have the ability to reduce lead times by 40-90% • Cost savings for final part can be up to 70-90% Stratasys Augmented Manufacturing Solutions Provide Clear ROI Source: Company Estimates

 


85 Customer Success Method Time Estimate Cost Estimate Urethane Casting 42 days - Fortus FDM 3 days 0.95X Savings 39 days (93%) (5%) Source: Company Estimates End-Use Parts Production Overnight • Toroid Housing in turn and bank avionics instrument • 500 parts in single batch on Fortus 900mc “The lead time for 500 units has been shortened to three days. In the aircraft world, that’s quick for certified production parts.” Justin Kelly The World’s Largest Manufacturer of Aircraft Instruments

 


86 Customer Success End-Use Parts

 


87 Improving Vertical Value Propositions Tomorrow General solutions General channel General marketing Future State Market experts Tailored solutions Enabled or new channel Tailored marketing High requirement market Market teams understanding needs Build, buy, partner unique solutions Deliver unique content consistently Enabled Channel to deliver solution Current State General knowledge

 


88 Thank you

 


89 Global Material Business Unit Zehavit Reisin VP, Materials Business Unit

 


90 Stratasys Material Offering Managing Materials as a Business 01 02

 


91 Stratasys Material Offering Managing Materials as a Business 01 02

 


92 PolyJet Materials Transparent Rigid Simulated Polypropylene Vero (Opaque) Rigid Vero (Opaque) Rigid - Colors Tango Rubber-like Medical General Purpose RGD720 DurusWhite RGD430 VeroWhitePlus RGD835 VeroYellow RGD836 TangoPlus FLX930 Biocompatible Clear MED610 VeroClear RGD810 Endur RGD450 VeroBlue RGD840 VeroCyan RGD841 TangoGray FLX950 Hearing Aid Family MED630,655 VeroGray RGD850 VeroMagenta RGD851 TangoBlack FLX970 VeroGlaze MED620 VeroBlackPlus RGD875 TangoBlackPlus FLX980 VeroDent MED670 VeroDentPlus MED690 Rigid Flexible Medical Standard Plastics Simulation

 


93 PolyJet Materials and more than 1000 Digital Materials High Temp Digital ABS Green and Ivory RGD525 Ivory - RGD5130/1-DM* Green – RGD5160/1-DM* Engineering Plastics Simulation *The Green digital material, is comprised of a combination of RGD515 and RGD535 materials *The Ivory digital material, is comprised of a combination of RGD515 and RGD531 materials

 


94 Generating Digital Materials Primary Rigid or Flexible Secondary Rigid or Flexible Digital Material Composition of Primary and Secondary

 


95 2007 Rigid and Rubber Like Digital Materials 2011 Digital ABS Compositions 2014 Over molded Digital ABS, Color in rigid and flexible Digital Materials Evolution

 


96 FDM Materials Standard ABSplus ABS-M30 ABS-M30i ABS-ESD7 ABSi Engineering PC PC-ABS PC-ISO FDM Nylon 12 High Performance ULTEM™ 9085 resin PPSF / PPSU Specialty Products Soluble Support Xtend™ 184

 


97 0 20 40 60 80 100 120 140 160 180 200 0 50 100 150 200 250 Precision & Product Realism Performance High Temp High Temp after PC Digital ABS after PC Digital ABS Durus White PC-ABS PC-ISO PC ULTEM 9085 PPSF Vero Family Endur Nylon 12 ABSM30/ i ABSESD7 FDM & PolyJet Material Offering Rigid Material Range: PolyJet and FDM Source: Stratasys Ltd. Heat Deflection Temperature HDT (C°) Impact (Joule per meter) PJ FDM

 


98 Stratasys Material Offering Managing Materials as a Business 01 02

 


99 Material Business Characteristics PolyJet FDM Simulating plastics properties – lots of room for discussion on material choice Not at max utilization per system Knowledge and Commercial plans improve utilization Using Thermoplastics – customers know what they need! Already at high utilization per system Knowledge triggers new applications - > additional hardware purchasing

 


100 Consumption Growth at a Glance Changing the mix of the pie towards advanced, high value/high priced materials Increase consumption in $ RGD720 VeroClear VeroWhitePlus Digital ABS VeroGray High Temp

 


101 Changing the Mix FDM Fortus Mix Q2 2014 31.7% 58.8% Q2 2012 35.7% 59.8% 4.5% Towards High Performance and Engineering Materials in FDM 9.6% Basic Engineering High Performance

 


102 Changing the Mix Example: PolyJet Eden/Connex Mix, Q2 2012 vs Q2 2014: Q2 2014 38% 62% Q2 2012 19% 81% Towards Advanced Materials in PolyJet Basic Advanced

 


103 Consumption Growth Example EMEA Direct, Consumption per System per Q (Kg) Eden / Connex Avg. per System (KG) Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 EMEA Direct

 


104 Who Do We Reach End Users Top Consumers of top industries - consumption enhancement via account management % of Install Base Avg. Consumption 5% 50% Long Tail Customers High Impact Consumption Customers “Long Tail” end users intensive marketing via focused campaigns, newsletters, telemarketing, webinars etc. Channel Account manage top partners Set materials targets Conduct programs to help meet/exceed growth targets 0% 20% 40% 60% 80% 100% 120% Target & Status Early in the quarter

 


105 5 Pillars Knowledge Transfer Commercial Plans Marketing Awareness Regulation Tracking Vendor of Choice

 


106 PolyJet Digital ABS Workshop Connex & Eden customers looking for better PolyJet functional prototyping and new applications. An introduction to Digital ABS material. Outdoor power equipment company Attended Connex Webinar in April Ordered first Digital ABS on April 27th 2013 Attended NAMII Material Seminar May 8th 2013 Ordered more... to result with 3 times consumption growth since the seminar! Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Target Audience Digital ABS DurusWhite Knowledge Transfer

 


107 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 PolyJet VeroClear Workshop PolyJet RGD720 customers looking for better transparency and VeroClear customers looking to achieve advanced results AMUG WORKSHOP Target Audience Knowledge Transfer Method – Hands-On Workshop on April 2013, AMUG Printing tips, photo-bleaching, polishing lacquering and more. Example Consumer Goods Customer VeroClear Consumption 2012-13 (Kg) Result Higher utilization, ~4 times consumption growth of since the workshop! VeroClear

 


108 VIP Program Commercial Plans Top consumers with service contract Target Audience Method – Increasing consumption via: Dedicated account management Higher user proficiency and ‘first-to-know’ Tailored commercial terms to enable committed growth Higher level of customer support Example: Automotive Service Bureau Conversion to advanced materials YoY growth of 186% in Kg!

 


109 VIP in the Direct Market Total consumption of EMEA VIP customers grew 28.6% in KG, H1 14 over H1 13, additional systems at two sites only 1 2 3 4 5 6 7 8 9 10 H1 2013 H1 2014 Customers 20% Growth 25% Growth 112% Growth 77% Growth Commercial Plans

 


110 Not Just For Top Consumers but also for the “Long Tail” Q1 & Q2 Signature Banners Nylon12; ENDUR Monthly Newsletters Connex3; Xtend184 Material Kit ULTEM 9085™ Now Available New PolyJet Kit including Connex3 offering Recorded Webinar Speaking Opportunity for Every Q Marketing Awareness

 


111 Channel Engagement Quarterly Target Monthly Report End of the Q Report 0% 20% 40% 60% 80% 100% 120% Target Status Consumption Achievement First Month 0% 20% 40% 60% 80% 100% 120% 140% Target Status Consumption Achievement End of Quarter Material Reports

 


112 Channel Engagement Do you have a healthy material mix? Are your end users aware of all our material capabilities? Would it be helpful to educate your end users in new materials and applications? Are you satisfied with your growth?

 


113 High Temp Q1 Q2 Q3 Q4 VeroClear Durus Q1 Q2 Q3 Q4 Vero Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Material Split Reports and Observations PolyJet Observations Recommendation No Tango; No ABS; No MED610; No Digital ABS Have you considered a materials awareness seminar for your organization? FC720 Digital ABS MED610 Tango

 


114 PC Q1 Q2 Q3 Q4 ABS-M30 Q1 Q2 Q3 Q4 PC-ABS ULTEM 9085-Tan Q1 Q2 Q3 Q4 PC-ISO Q1 Q2 Q3 Q4 Material Split Reports and Observations FDM Observations Recommendation What is driving Ultem usage? How can we increase? Have you considered the latest FDM/DDM workshop? ULTEM 9086-Black Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

 


115 Materials Strategic Vision New Materials New Applications Significant Investments in: • R&D | Business People • Development Spending Investment Commitment

 


116 Our people make the difference “We are dedicated to helping you grow your business by enhancing your system utilization and increasing the value you get from your 3D printers”

 


117 Thank you

 


118 The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. @BRE @MAKERBOT MAKERBOT.COM

 


119 MakerBot is an innovation company

 


120 by setting the standard in reliable and affordable desktop 3D printing, scanning and entertainment. Leading the Next Industrial Revolution

 


121

 


122 @BRE • @MAKERBOT • MAKERBOT.COM Bunnies printed on a MakerBot in June 2009

 


123 MAKERBOT IS AN INNOVATION COMPANY Bunnies printed on a MakerBot in June 2014

 


124

 


125 MAKERBOT FILAMENT MAKERBOT DESKTOP APP MAKERBOT MOBILE APP SOFTWARE PEOPLE HARDWARE ACCESS POINTS MAKERBOT 3D PRINT SERVICES SOLUTIONS AND SERVICES MAKERBOT REPLICATOR Z18 3D PRINTER MAKERBOT REPLICATOR DESKTOP 3D PRINTER MAKERBOT INNOVATION CENTER MAKERBOT LEARNING SUPPORT MAKERBOT THINGIVERSE MAKERBOT DIGITAL STORE MAKERBOT RETAIL STORES MAKERBOT 3D PHOTO BOOTH SALES MAKERBOT.COM MAKERBOT PRINTSHOP professional

 


126 MAKERBOT DESKTOP APP MAKERBOT MOBILE APP MAKERBOT PRINTSHOP SUPPORT SOFTWARE PEOPLE HARDWARE MAKERBOT THINGIVERSE ACCESS POINTS MAKERBOT DIGITAL STORE MAKERBOT RETAIL STORES MAKERBOT 3D PHOTO BOOTH MAKERBOT LEARNING SERVICES/ INITIATIVES MAKERBOT ACADEMY SALES MAKERBOT.COM consumer MAKERBOT 3D PRINT SERVICES MAKERBOT FILAMENT MAKERBOT REPLICATOR MINI COMPACT 3D PRINTER MAKERBOT REPLICATOR DESKTOP 3D PRINTER MAKERBOT DIGITIZER DESKTOP 3D SCANNER

 


127 MAKERBOT REPLICATOR Z18 MAKERBOT REPLICATOR MINI MAKERBOT REPLICATOR FIFTH GENERATION MAKERBOT REPLICATOR 3D PRINTERS

 


128 MADE IN BROOKLYN

 


129 MADE IN BROOKLYN

 


130 MADE IN BROOKLYN

 


131 On-board camera for print monitoring and easy sharing MAKERBOT REPLICATOR 3D PRINTING PLATFORM

 


132 MakerBot Replicator Smart Extruder Easy to swap or replace 1 2 Sends notifications to MakerBot Desktop and MakerBot Mobile apps 3 Detects filament absence and automatically pauses your print 3D PRINTING PLATFORM MAKERBOT REPLICATOR

 


133 App and cloud enabled MAKERBOT REPLICATOR 3D PRINTING PLATFORM

 


134 3.5-inch full-color LCD display and intuitive dial create a rich user experience MAKERBOT REPLICATOR NOT AVAILABLE ON THE MAKERBOT REPLICATOR MINI 3D PRINTING PLATFORM

 


135 Easy-to-use, no-compromise compact 3D printer for everyone, from beginners to professionals COMPACT 3D PRINTER MAKERBOT REPLICATOR MINI

 


136 MAKERBOT REPLICATOR MINI Fast and easy One-Touch™ 3D Printing Plug and play 1 Optimized for speed 2 No leveling required 3 CAPABILITIES

 


137 Unmatched speed, reliability, quality, and connectivity for all your 3D printing needs MAKERBOT REPLICATOR DESKTOP 3D PRINTER

 


138 456 cubic inch build volume Approx. 8 x 10 x 6 in MAKERBOT REPLICATOR CAPABILITIES

 


139 Massive build volume and the best price/build volume performance in its category 3D PRINTER MAKERBOT REPLICATOR Z18

 


140 CAPABILITIES 1 2,592 cubic inch build volume 12 x 12 x 18 in Make extra-large industrial prototypes, models, and products Think and build bigger than ever 2 Print multiple things at once so you can get to work on your next design sooner 3 MAKERBOT REPLICATOR Z18

 

 


141 KEY FEATURES Enclosed and heated build chamber MAKERBOT REPLICATOR Z18

 


142 DESKTOP MAKERBOT A complete, free 3D printing solution for discovering, managing, and sharing your 3D prints

 


143 DESKTOP MAKERBOT 1 MakerWare 2 MakerBot Cloud Library 3 3D Print Monitoring 4 Thingiverse

 


144 The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. MOBILE MAKERBOT Gives you the power to monitor and control your Fifth Generation MakerBot Replicator 3D Printer and access all things MakerBot from your mobile device

 


145 PRINTSHOP MAKERBOT A fun, easy, and free way to create and 3D print all kinds of cool things needs screen

 


146 PRINTSHOP MAKERBOT TYPE MAKER Easily make signs, letters, name plates, and more

 


147 PRINTSHOP MAKERBOT BRACELET MAKER Design and print your own custom bracelets

 


148 PRINTSHOP MAKERBOT BRACELET MAKER Design and print your own custom bracelets

 


149 STUDIO MAKERBOT In-house team designing amazing 3D models

 


150

 


151 Sells original, fun, and collectible digital content DIGITAL STORE MAKERBOT

 


152 DIGITAL STORE MAKERBOT Models do not require supports or glue

 


153 DIGITAL STORE MAKERBOT Fun for kids and adults to decorate and paint

 


154 Sesame Street

 


155 MAKERBOT THINGIVERSE ENGAGED COMMUNITY DIGITAL DESIGNS THINGIVERSE MAKERBOT T

 


156 Hundreds of thousands of digital designs

 


157

 


158

 


159 2. Customization

 


160 2. Customization

 


161 When you get a MakerBot you join a worldwide community of the smartest creative explorers

 


162

 


163 Thank you

 


164 Parts & Services Dan Yalon EVP BD, Marketing and Vertical Solutions

 


165 Stratasys Offering Strategy In addition to the best Products & Materials: • Parts services • MakerBot • Strategic Accounts Management • Vertical business focus • Alliances • Ecosystem Complementing 3D Printing parts service Account Planning Sales Bringing a complete 3D printing solution to the account, addressing its 3D printing needs Wide suite of printers and materials

 


166 Best in Class End Use Parts Manufacturing Platform to lead in parts services • Best Leadership • Process Knowhow • Capacity & Infrastructure for growth • AM focused • EUP focused • Current focus on North America Combined Organization

 


167 RedEye Digital Factory Company Highlights Service Offering • Additive Manufacturing: Over 160 3D Printers • Finishing Services: Wide variety of finishing services including bonding, sanding, primer ready, painting, vapor smoothing • Parts service business units of Stratasys • Started in 2005 to accelerate the adoption of 3DP technologies • 75 employees • Direct sales team in NA, & International Partner Network of RedEye digital factories (8) • Experts in FDM and PolyJet

 


168 Service Offering* 48% 3% 4% 6% 7% 7% 9% 16% 98% 2% Harvest Technologies * Based on 2013 Figures Harvest Technologies Highlights Service Offering* Traditional Manufacturing Additive Manufacturing Aerospace Energy - Oil & Gas / Petrochemical Medical Engineering, Design % CAD Industrial Rapid Prototyping - Service Bureau Consumer Other Founded: 1995 HQ: Belton, TX Employees: ~80 Customers: ~1,000 Applications: Diverse verticals with expertise in aerospace Facilities: One high-tech 40,000 sq. ft facility

 


169 51% 33% 14% 23% 19% 12% 10% 8% 5% 4% 4% 15% Solid Concepts * Based on 2013 Figures Additive Manufacturing Supporting Technologies (CNC, Urethanes) Tooling & I.M. Medical Devices & Equipment Aerospace Business Products Foundries Industrial Equipment Transportation Sporting Equipment Consume Products Other Service Offering* Service Offering* Solid Concepts Highlights Founded: 1991 HQ: Valencia, CA Employees: ~450 Customers: 5,000+ Sales: Largest direct sales force in the industry Applications: Vertical specialization in medical and aerospace Facilities: 6 facilities in the US 165,068 sq.ft Revenue: ~$65 million in 2013

 


170 Competitive Landscape The Service Bureaus Industry is highly fragmented and localized Source: Stratasys Analysis; Castle Island 41% 9% 8% 5% 4% 4% 2% 2% 2% 2% 2% 2% 18% USA Germany UK France Canada Italy Australia China India Sweden Netherlands Spain Other 49% 26% 14% 8% 2% 1% 1 2 3 4 5 Six or More Over 1,000 Service Providers Worldwide SBs Breakdown: Number of Technologies

 


171 Market Trends With recent acquisitions Stratasys is positioned to lead this market Very different core drivers & customer requirements for Production vs. RP: • Production is mainly about Total Cost of Ownership and Quality • Different ‘internal buyer’ at the customers’ organization Significant investments and learning curve are required for Production • Certifications – E.g. ISO 9001, AS 9100 (Aerospace), ISO 13485 (Medical), ITAR • Quality Control – Material properties, Dimensional accuracy, Repeatability While RP is mostly a localized business, Production also means a global landscape • Serving multi-national manufacturers

 


172 Service Bureaus Acquisitions’ Rationale Cross Selling Synergies Parts Sell Printers <-> Printers Sell Parts Establish a Fulfillment Platform for Expanding EUP Strategy Operate as a Growing, Profitable Business Unit Within Stratasys

 


173 Parts Services A big opportunity in an integral part of the 3D Printing market Source: Wohlers 2014 $210 $260 $320 $400 $439 $409 $508 $643 $798 $967 $381 $442 $502 $597 $654 $680 $864 $1,080 $1,190 $1,360 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $591 $702 $822 $997 $1,093 $1,090 $1,372 $1,723 $1,988 $2,327 Service Providers Revenue Estimates ($M) Secondary Market Primary Market

 


174 Service Bureaus Acquisitions’ Rationale Cross Selling Synergies Parts Sell Printers <-> Printers Sell Parts Establish a Fulfillment Platform for Expanding EUP Strategy Operate as a Growing, Profitable Business Unit Within Stratasys

 


175 Cross Selling Synergies 0 1 2 3 2007 2008 2009 2010 2011 2012 2013 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 0 Parts sell Printers Printers sell Parts RedEye Customer • Manufacturer of machinery for the production of disposable products • 2011 - First Purchase Order - $175 • Customer nurturing increased sales • Capacity lead to printer acquisition • Parts business continued after the printer sale Parts order revenue # of Stratasys 3D printers

 


176 Cross Selling Synergies FDM systems owners account for 33% of RedEye revenue since 2007 while they make up just 9% of RedEye’s customer base Owners of 3D printers are large consumers of parts Thousands of our SB Customers still largely untapped by systems sales Parts sell Printers Printers sell Parts * Based on company analysis, 2013

 


177 Cross Selling Synergies Why parts offering is valuable for printer owners: • During peak time when machines are at full utilization • Variety of materials and printers they wouldn’t have access to • For different finishing needs • Production projects require extensive technological & engineering support • To get help and succeed even if they’re new in manufacturing • For process control, repeatability and quality certifications Why printers offering is valuable for parts customers: • Cost effectiveness at certain threshold • Flexibility of in-house printing • Quick prototyping iterations • To get experience with the technology • For education needs Parts sell Printers Printers sell Parts

 


178 Service Bureaus Acquisitions’ Rationale Cross Selling Synergies Parts Sell Printers <-> Printers Sell Parts Establish a Fulfillment Platform for Expanding EUP Strategy Operate as a Growing, Profitable Business Unit Within Stratasys

 


179 Fulfillment Platform Spare Part: Retro-fitted safety-belt-holder for the A310 • 30 year old design • The supplier is no longer in business; the tools (molds) have been scrapped • Rebuilding them would have cost thousands of dollars • The need is for ~100 parts per year Reference : https://www.youtube.com/watch?v=Cy3V3KR1LWc for Expanding EUP Strategy

 


180 Fulfillment Platform • 3D printed parts are used as covers that protect electric wires on the A350 • Several hundreds of these parts fit on the Airbus 350 • 70% less time and 80% reduced cost Reference : https://www.youtube.com/watch?v=Cy3V3KR1LWc for Expanding EUP Strategy

 


181 Fulfillment Platform Orbis - Flying Eye Hospital & teaching facility right on board • Printed ULTEM Air Duct • With complex shape • Meeting FAA requirements for airflow for Expanding EUP Strategy

 


182 Challenge Air Duct – Orbis Flying Hospital Structural Integrity Engineering | California FDM (Fused Deposition Modeling)

 


183 Process Air Duct – Orbis Flying Hospital Structural Integrity Engineering | California FDM (Fused Deposition Modeling)

 


184 Fulfillment Platform Bell Defog Duct Nozzle • Part consolidation and assembly reduction • Avoid $120,000 of tooling costs • 13% weight savings • Lead time compression of 75% for Expanding EUP Strategy Source : RAPID 2014 presentation, Harvest Technologies

 


185 Creating A Global Leading Parts Business Single consolidated business with central management Strategic Integration Combined organization Led by Industry top experts Focus on AM of End Use Parts Hundreds of years of combined experience Serving You Better, Together

 


186 Strategic Values SB Stand-alone value Multiple layers of long term strategic values for Stratasys

 


187 Cross Sell Synergies Strategic Values SB Stand-alone value Multiple layers of long term strategic values for Stratasys

 


188 Solution Selling EUP Applications Fulfilment Platform SAM Cross Sell Synergies Strategic Values SB Stand-alone value Multiple layers of long term strategic values for Stratasys

 


189 Manufacturing Vision Process Knowhow Solution Selling EUP Applications Fulfilment Platform SAM Cross Sell Synergies Strategic Values SB Stand-alone value Multiple layers of long term strategic values for Stratasys

 


190 Thank you

 


191 Financials & Guidance Shane Glenn VP Investor Relations

 


192 Business Model 15.7% 3.8% 16.1% 59.8% Gross Margin Operating Margin Tax Rate Net Margin Financial Model Q2 2014 Financial Model FY 2013 16.8% 15.5% 20.1% 59.4% Gross Margin Operating Margin Tax Rate Net Margin Stratasys Ltd. Non-GAAP

 


193 Quarter Highlights Financial Results Stratasys Ltd. Non-GAAP Q2-13 Q2-14 Change YOY Unit Sales 1,261 14,909 1,082.3% Total Revenue $106.7 $178.5 +67.3% Revenue/ Employee 0.087 0.084 -3.1% Gross Profit % margin 63.1 59.2% 106.7 59.8% +69.1% Operating Expenses % of sales 41.4 38.8% 78.0 43.7% +88.2% Operating Profit % margin 21.7 20.3% 28.8 16.1% +32.5% Pre-tax Profit % margin 21.8 20.5% 29.1 16.3% +33.2% Tax Rate 14.8% 3.8% -74.4% EBITDA 24.8 34.6 +39.5% Net Income % margin 18.6 17.4% 28.0 15.7% +50.8% EPS (Diluted) $0.45 $0.55 +21.2% Diluted Shares 41.1 51.2 +24.4% ($ in millions unless noted otherwise) Revenue Growth 67% YOY Organic Revenue Growth 35% YOY Non-GAAP Gross Margin 59.8% Non-GAAP Net Income Growth 51% YOY • MakerBot contributed $33.6M in revenue • Raised 2014 financial guidance and long-term revenue growth projection

 


194 Quarter Highlights Financial Results Revenue Stratasys Ltd. Non-GAAP $108.3 $135.6 $129.5 $154.1 $17.7 $20.2 $21.7 $24.4 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Total Revenue - Quarter Total Revenue – Quarterly Trend Product Service Product Service System Revenue 108% YOY Consumable Revenue 35% YOY Customer Support Revenue 59% ($ in millions unless noted otherwise) $90.40 $154.10 $16.30 $24.40 Q2-2013 Q2-2014

 


195 85.8% 85.7% 84.8% 84.7% 84.3% 84.7% 86.0% 87.0% 85.6% 86.3% Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Product Revenue Share Service Revenue Share Revenue Share Long-Term Trend Financial Results Revenue Stratasys Ltd. Non-GAAP 14.2% 14.3% 15.2% 15.3% 15.7% 15.3% 14.0% 13.0% 14.4% 13.7% Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14

 


196 Quarter Highlights Financial Results • MakerBot impact, including launch of Replicator Mini & Z18 • Continued growth of the Objet500 Connex3 Color Multi-Material 3D Printer • Production, Idea and Design Series strength 1 Includes systems sold by Stratasys, Inc. in all periods; and units for MakerBot starting only on August 15, 2013 Stratasys Ltd. System Unit Sales1 5,925 10,963 8,802 14,909 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Total Units Sold - Quarter Total Units Sold – Quarterly Trend 1,261 14,909 Q2-2013 Q2-2014

 


197 Quarter Highlights Financial Results • Strong sales of higher-margin products and services • Improved overhead coverage on services business Gross Profit Stratasys Ltd. Non-GAAP Q2-13 Q2-14 % Change YOY Product Revenue % of sales $90.4 84.7% $154.1 86.3% +70.4% Service Revenue % of sales 16.3 15.3% 24.4 13.7% +49.8% Product Gross Profit % margin 56.9 62.9% 95.4 61.9% +67.9% Service Gross Profit % margin 6.3 38.5% 11.3 46.3% +80.0% Total Gross Profit % margin 63.1 59.2% 106.7 59.8% +69.1% Gross Margin – Quarterly Trend 62.3% 62.9% 63.5% 61.9% 37.6% 41.9% 45.8% 46.3% 58.8% 60.2% 60.9% 59.8% Q3 '13 Q4 '13 Q1 '14 Q2 '14 ($ in millions unless noted otherwise) Product Gross Margin Service Gross Margin Total Gross Margin

 


198 Gross Profit Long-Term Trend Financial Results Gross Profit Stratasys Ltd. Non-GAAP 31.9% 35.0% 37.6% 32.5% 32.1% 38.5% 37.6% 41.9% 45.8% 46.3% Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 60.8% 61.3% 63.9% 62.4% 63.9% 62.9% 62.3% 62.9% 63.5% 61.9% Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Product Gross Margin Service Gross Margin 56.7% 57.5% 59.9% 57.8% 59.0% 59.2% 58.8% 60.2% 60.9% 59.8% Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Total Gross Margin

 


199 Quarter Highlights Financial Results • Significant investments in MakerBot product development • Investing for future growth Operating Profit Stratasys Ltd. Non-GAAP Operating Profit Analysis – Quarterly Trend Q2-13 Q2-14 % Change YOY R&D Expense % of sales 9.5 8.9% 17.6 9.9% +85.9% SG&A Expense % of sales 31.9 29.9% 60.3 33.8% +89.0% Total Operating Exp. % of sales 41.4 38.8% 78.0 43.7% +88.2% Total Operating Profit % margin 21.7 20.3% 28.8 16.1% +32.5% 9.5% 9.9% 10.1% 9.9% 30.1% 30.1% 35.8% 33.8% 19.2% 20.2% 15.1% 16.1% Q3 '13 Q4 '13 Q1 '14 Q2 '14 R&D Expenses (% of sales) SGA Expenses (% of sales) Operating Margin ($ in millions unless noted otherwise)

 


200 R&D Investments • Significant R&D Investments - Existing technologies - Systems & materials - Innovation $28.9 $33.3 $46.8 $15.3 $17.6 10.4% 9.3% 9.6% 10.1% 9.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 FY11 FY12 FY13 Q1-2014 Q2-2014 R&D Expenses R&D % of revenue Stratasys Ltd. Non-GAAP ($ in millions unless noted otherwise) * Periods prior to 2013 are pro forma including Objet, Ltd.

 


201 Quarter Highlights Financial Results • Strong growth in all regions • Majority of MakerBot revenue generated in North America Revenue Geographic Mix Stratasys Ltd. Non-GAAP Geographic Sales Q2-2013 Geographic Sales Q2-2014 52% 27% 19% 2% 53% 24% 21% 2% North America EMEA APAC Other North America EMEA APAC Other

 


202 Quarter Highlights Financial Results • $577.9M in cash and cash equivalents & bank deposits • $4.8M net operating cash flow for Q2 2014 • Increased inventory for supply flexibility and new product introductions Balance Sheet Summary Stratasys Ltd. Selected balance sheet items ($ in millions) Q1-14 Q2-14 Cash , Cash Equivalents & Inv. $607.5 $577.9 Accounts Receivable 106.0 113.6 Inventories 99.8 114.3 Net Working Capital 712.8 717.2 ($ in millions unless noted otherwise)

 


203 Financial Guidance Stratasys Ltd. Revenue & Earnings Guidance Non-GAAP $750-770 $2.25-$2.35 Revenue (M) Non-GAAP Diluted EPS Fiscal 2014 Financial Guidance

 


204 Financial Guidance Stratasys Ltd. Long-Term Target Operating Model Non-GAAP +25% Revenue growth 18%–23% Operating margin 10%–15% Effective tax rate 16%–21% Net income margin of sales of sales

 


205 Quarter Highlights Financial Results • Ongoing impressive organic and inorganic sales growth • Broad-based demand across our product lines • Investments in strategic initiatives and infrastructure to accelerate our growth ($ in millions unless noted otherwise) * Periods prior to 2013 are pro forma including Objet, Ltd. Projections Stratasys Ltd. Non-GAAP Revenue (Millions) EPS $277 $359 $487 $750- $770 $0.94 $1.49 $1.84 $2.25 – $2.35 $0.75 $0.95 $1.15 $1.35 $1.55 $1.75 $1.95 $2.15 $2.35 $- $100 $200 $300 $400 $500 $600 $700 $800 FY11 FY12 FY13 FY14 (guidance)

 


206 Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of Operations ($ in thousands except per share data) Stratasys Ltd. Combined Selected balance sheet items ($ in millions) Q2-13 Q2-13 Q2-14 Q2-14 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Net sales Products $90,213 $199 $90,412 $154,090 $ - $154,090 Services 16,272 - 16,272 24,375 - 24,375 Cost of sales Products 45,731 (12,171) 33,560 73,394 (14,739) 58,655 Services 10,349 (343) 10,006 13,437 (340) 13,097 Gross profit 50,405 12,713 63,118 91,634 15,079 106,713 Operating expenses Research and development, net 10,337 (846) 9,491 18,957 (1,318) 7,639 Selling, general and administrative 42,665 (10,748) 31,917 77,929 (17,617) 60,312 Change in fair value of earn-out obligations - - - 628 (628) - Operating income (loss) (2,597) 24,307 21,710 (5,880) 34,642 28,762 Other income 138 - 138 337 - 337 Income (loss) before income taxes (2,459) 24,307 21,848 (5,543) 34,642 29,099 Income taxes (benefit) 326 2,916 3,242 (5,370) 6,475 1,105 Net income (loss) (2,785) 21,391 18,606 (173) 28,167 27,994 Net income attributable to non-controlling interest 15 25 40 - - - Net income (loss) attributable to Stratasys Ltd. $(2,800) $21,366 $18,566 $ (173) $28,167 $27,994 EPS (Diluted) $(0.07) $0.45 $(0.00) $0.55 Diluted Shares 38,781 41,146 49,373 51,196

 


207 Reconciliation of Non-GAAP Adjustments ($ in thousands except per share data) Stratasys Ltd. Combined Selected balance sheet items ($ in millions) Q2-13 Q2-14 GAAP GAAP Net sales, products Deferred revenue purchase price $199 $- Cost of sales, products Acquired intangible assets amortization (11,780) (14,029) Non-cash stock-based compensation expense (314) (710) Merger related expense (77) - Cost of sales, services Non-cash stock-based compensation expense (318) (324) Merger related expense (25) (16) Research and development, net Non-cash stock-based compensation expense (846) (885) Performance bonus expense - (347) Merger related expense - (86) Selling, general and administrative Acquired intangible assets amortization (2,425) (5,507) Non-cash stock-based compensation expense (3,881) (5,159) Merger and acquisition related expense (4,442) (4,352) Performance bonus expense - (2,599) Change in fair value of earn-out obligation Change in Earn-out obligation - (628) Income taxes Tax expense related to non-GAAP adjustments 2,916 6,475 Net income attributable to non-controlling interest Depreciation and amortization expense attributable to non-controlling interest 25 - Net income $21,366 $28,167

 


208 Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of Operations ($ in thousands except per share data) Stratasys Ltd. Combined ($ in thousands except per share data) FY-11 FY-11 FY-12 FY-12 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Revenues 276,990 - 276,990 359,054 - 359,054 Cost of sales Products 137,556 (41,826) 95,730 158,828 (42,964) 115,864 Services 26,395 (1,504) 24,891 36,303 (1,475) 34,828 Gross profit 113,039 43,330 156,369 163,923 44,439 208,362 Operating expenses Research and development, net 31,934 (3,005) 28,929 36,923 (3,597) 33,326 Selling, general and administrative 104,928 (28,287) 76,641 141,232 (40,354) 100,878 Operating income (loss) (23,823) 74,622 50,799 (14,232) 88,390 74,158 Other income (expense) 1,118 (1,831) (713) 2,124 - 2,124 Income (loss) before income taxes (22,705) 72,791 50,086 (12,108) 88,390 76,282 Income taxes 8,148 4,768 12,916 9,407 7,225 16,632 Net income (loss) (30,853) 68,023 37,170 (21,515) 81,165 59,650 Net income attributable to non-controlling interest - - - 62 - 62 Net income (loss) attributable to Stratasys Ltd. (30,853) 68,023 37,170 (21,577) 81,165 59,588 EPS (Diluted) (0.84) - 0.94 (0.58) - 1.49 Diluted Shares 36,577 - 39,656 36,987 - 39,970

 


209 Reconciliation of Non-GAAP Adjustments ($ in thousands except per share data) Stratasys Ltd. Combined FY-11 FY-12 GAAP GAAP Cost of sales, products Objet intangible assets amortization expense (39,294) (39,294) Solidscape intangible assets amortization expense (1,163) (1,744) Non-cash stock-based compensation expense (808) (1,190) Merger related expense - (265) Expense related to the revaluation of Solidscape, Inc. and Fasotech Co. LTD inventory at acquisition (561) (471) (41,826) (42,964) Cost of sales, services Non-cash stock-based compensation expense (1,504) (1,475) Research and development, net Non-cash stock-based compensation expense (3,005) (3,597) Selling, general and administrative Objet intangible assets amortization expense (8,967) (8,967) Solidscape intangible assets amortization expense (356) (533) Non-cash stock-based compensation expense (18,349) (21,592) Solidscape acquisition expense (615) - Merger related expense - (9,262) (28,287) (40,354) Other income Sale of an equity investment (626) - Sale of an auction rate security (1,205) - (1,831) - Income taxes Tax expense related to non-GAAP adjustments 4,768 7,225 Net income 68,023 81,165

 


Thank You