3D Systems (DDD) 28th Annual Needham Growth Conference Virtual summary

Strategic transformation and business focus

• Refocused on core 3D printing technologies, divesting non-core and software assets to streamline operations.

• Doubled down on printer design, materials, and intelligent software for factory environments.

• Evolved the balance sheet to support long-term growth and targeted high-potential applications.

Industry trends and market environment

• Industry experienced volatility post-pandemic, with strong years followed by CapEx pullbacks due to economic uncertainty and tariffs.

• Regionalized production mitigated tariff impacts, but customer uncertainty slowed capital investment.

• Aerospace, defense, and healthcare remain resilient, with healthcare driven by patient needs.

Healthcare segment developments

• Healthcare represents 40-46% of revenues, split between stable, double-digit growth in orthopedics (MedTech) and more volatile but growing dental business.

• Strong, long-term relationship with the leading dental aligner customer; business mirrors their performance.

• Recent U.S. approval for dental repair materials opens new market opportunities; European approval expected by summer.

• FDA-approved 3D printed dentures present a major growth opportunity, with a $400M addressable market and rapid production capabilities.

• Denture business began production in late 2023, gaining traction with large labs and expected to become a top revenue stream within a few years.