Markforged SPAC Presentation Deck

Made public by

sourced by PitchSend

20 of 55

Creator

Markforged logo
Markforged

Category

Technology

Published

February 2021

Slides

Transcriptions

#1Some ship their manufacturing parts around the world. Others simply hit (print 爱 Markforged Additive 2.0 Today EVERGREEN#2Disclaimer Disclaimer. This presentation ("Presentation") contemplates a business combination (the "Business Combination") between one ("one") and Markforged, Inc. ("Markforged" or the "Company"). The information contained herein does not purport to be all-inclusive and neither of one, Markforged, nor any of their respective affiliates nor any of its or their control persons, officers, directors, employees or representatives makes any representation or warranty, express or implied, as to the accuracy, completeness or reliability of the information contained in this Presentation. You should consult your own counsel and tax and financial advisors as to legal and related matters concerning the matters described herein, and, by accepting this Presentation, you confirm that you are not relying upon the information contained herein to make any decision. Forward-Looking Statements. Certain statements in this Presentation may be considered forward-looking statements. Forward-looking statements generally relate to future events or one's or the Company's future financial or operating performance. For example, statements concerning the following include forward-looking statements: development plans for Markforged's products; Markforged's sales projections and financial estimates; the size and growth of the additive manufacturing market; the adoption of Markforged's products in the manufacturing industry and other industries; and the potential effects of the Business Combination on the Company. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by one and its management, and Markforged and its management, as the case may be, are inherently uncertain. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, various factors beyond management's control including (i) the inability of the parties to successfully or timely consummate the proposed business combination, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed business combination or that the approval of the shareholders of one is not obtained; (ii) the ability to maintain the listing of the combined company's securities on the NYSE; (iii) the inability to complete the PIPE; (iv) the risk that the proposed business combination disrupts current plans and operations of Markforged as a result of the announcement and consummation of the transaction described herein; (v) the risk that any of the conditions to closing are not satisfied in the anticipated manner or on the anticipated timeline; (vi) the failure to realize the anticipated benefits of the proposed business combination; (vii) risks relating to the uncertainty of the projected financial information with respect to Markforged and costs related to the proposed business combination; (viii) the outcome of any legal proceedings that may be instituted against the parties following the announcement of the proposed business combination; (ix) the amount of redemption requests made by one's public shareholders; (x) the effects of the COVID-19 pandemic and general economic conditions; (xi) and other assumptions, risks, uncertainties and factors set forth in the sections entitled "Projected Financial Information," "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in one's Amendment No. 1 to Registration Statement on Form S-4 relating to the Business Combination, dated May 14, 2021 (the "Registration Statement"), and other filings with the Securities and Exchange Commission ('SEC"), as well as factors associated with companies, such as the Company, that are engaged in additive manufacturing. Nothing in this Presentation should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this Presentation, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. Neither one nor the Company undertakes any duty to update these forward-looking statements. Additional Information. In connection with the proposed Business Combination, one has filed the Registration Statement containing a preliminary proxy statement/prospectus of one, and after the registration statement is declared effective, one will mail a definitive proxy statement/prospectus relating to the proposed Business Combination to its shareholders. This Presentation does not contain all the information that should be considered concerning the proposed Business Combination and is not intended to form the basis of any investment decision or any other decision in respect of the Business Combination. one's shareholders and other interested persons are advised to read the Registration Statement and the amendments thereto and the definitive proxy statement/prospectus and other documents filed in connection with the proposed Business Combination, as these materials will contain important information about Markforged, one and the Business Combination. When available, the definitive proxy statement/prospectus and other relevant materials for the proposed Business Combination will be mailed to shareholders of one as of a record date to be established for voting on the proposed Business Combination. Shareholders will also be able to obtain copies of the Registration Statement, the definitive proxy statement/prospectus and other documents filed with the SEC, without charge, once available, at the SEC's website at www.sec.gov, or by directing a request to: one, 16 Funston Avenue, Suite A, The Presidio of San Francisco, San Francisco, CA 94129. 2#3Disclaimer (Cont'd) Participants in the Solicitation. one, Markforged and their respective directors and executive officers may be deemed participants in the solicitation of proxies from one's shareholders with respect to the proposed Business Combination. A list of the names of one and Markforged's directors and executive officers, a description of their interests in each of one and Markforged and additional information regarding the interests of the participants in the solicitation of proxies from one's shareholders is contained in the Registration Statement which was filed with the SEC and is available free of charge at the SEC's web site at www.sec.gov, or by directing a request to one, 16 Funston Avenue, Suite A, The Presidio of San Francisco, San Francisco, CA 94129. No Offer or Solicitation. This communication is for informational purposes only and does not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or an offer to buy or the solicitation of an offer to buy any securities, and there shall be no sale of securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law. Certain information contained in this Presentation relates to or is based on publications, surveys and the Company's own internal estimates and research. In addition, all of the market data included in this Presentation involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Please see the Registration Statement for further information. Finally, while the Company believes its internal research is reliable, such research has not been verified by any independent source. This meeting and any information communicated at this meeting are strictly confidential and should not be discussed outside your organization. Use of Non-GAAP Financial Metrics. This Presentation includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted EBITDA and Adjusted Free Cash Flow. These non-GAAP measures are an addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP. Reconciliations of non-GAAP measures to their most directly comparable GAAP counterparts are included in the Appendix to this presentation. Markforged believes that these non-GAAP measures of financial results (including on a forward-looking basis) provide useful supplemental information to investors about Markforged. Markforged's management uses forward-looking non-GAAP measures to evaluate Markforged's projected financials and operating performance. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents, including that they exclude significant expenses that are required by GAAP to be recorded in Markforged's financial measures. In addition, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore, Markforged's non-GAAP measures may not be directly comparable to similarly titled measures of other companies. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. The reader shall not rely upon any statement, representation or warranty made by any other person, firm or corporation in making its investment or decision to invest in the Company. Neither of one, the Company, nor any of their respective affiliates nor any of its or their control persons, officers, directors, employees or representatives, shall be liable to the reader for any information set forth herein or any action taken or not taken by any reader, including any investment in shares of one or the Company. 3#4Introduction#5Presenters Today Markforged LO 5 Shai Terem President & CEO stratasys Morgan Stanley Kornit 20 Digital banding matters David Benhaim Co-Founder & CTO QPalantiri KYRUUS Mark Schwartz Chief Finance Officer trax LAUNCHPAD DIGITAL HEALTH fabrinet ONE Kevin Hartz one Co-Founder & CEO eventbrite FOUNDERS FUND xoom a PayPal Se#6one's Track Record of Early Investments in Transformational Businesses 6 2010 2011 Square Palantir / airbnb 2009 2012 Uber trulia 2005 2014 Opendoor/ reddit Note: $ in billions. Figure represents sum of market cap, as of February 23, 2021, for public companies and acquisition valuation for those acquired. PayPal 1999 2017 carta 2021 Markforged $775B+ PayPal trulia QPalantir airbnb (P Uber Square Opendoor reddit carta#7one's Criteria for Partnership 7 Founders, Visionaries, Operators Strong Technology / Defensible Positioning Benefiting from Transformational Trends / Velocity of Digitization Opportunity to Utilize Capital to Drive Growth / Strengthen Moats Enduring Businesses Markforged 3#8Markforged at a Glance 8 Large and Growing TAM $115B by 2030¹ 25% Projected 2021-2030 CAGR Source: Wohlers Report 2021. Large and Growing Installed Base -10K → 70K+ Projected Connected Printers 2020- 2025 Positioned for Robust Growth 10x $700M+ Projected 2025 Revenue Proven Scale with Blue Chip Customers $72M 2020 Revenue Attractive Margin Profile 58% 2020 Gross Margin#9Limitations of Traditional Manufacturing 07 01 Limited Design Flexibility 02 Inability by Manufacturers to Hire Skilled Workers¹ 03 Inability to Effectively Respond to Supply Chain Disruption (1) United States Census Bureau "Connecticut Case Study: Attracting Skilled Manufacturing Workers a Challenge as Aging Baby Boomers Retire" - November 17, 2020. (2) "Manufacturing Wastes 10% of the GWP Every Year. Here's Why" Forbes article - October 18, 2019. 04 20% of Every Dollar in Manufacturing is Wasted (10% of Global GDP)²#10Before Markforged, Customers Had Limited Options Customers essentially could choose between >$1M "industrial machines" or hobbyist printers#11Markforged Transforms the Industry Offers design flexibility and industrial-strength parts with highly accessible solutions#12Markforged's A Differentiated Software 12 Cloud-first architecture provides powerful yet easy-to-use solutions 12mm Wrench @Marstorget Digital Forge and Integrated Platform (1) As of January 2021. Printers 9 metal and composite printers and sintering furnaces, which continue to get smarter¹ Mark Two X7 Metal X Materials Unlocks range of new applications across 14 proprietary materials¹#13The Next Chapter#14Markforged - Accessible, Industrial-Grade Solution, Today 14 Upgrading metal with advanced composites Wide range of proprietary composite and metal materials address broad range of applications High and tangible customer ROI Mission-critical application for blue-chip customers with evidenced land-and-expand Integrated, modern software platform Continuous software updates drive faster innovation and deployment Scale today drives virtuous cycle More customers > More part data > Printers get smarter > Better parts#15The Future is More Than Metal Manufacturing becomes stronger, lighter, faster and less wasteful. 15 The Boeing 787 Dreamliner airframe is nearly 50% carbon fiber reinforced plastic and other advanced composites¹ DIVIV 13 LIFE DRIVE ARCHITEKTUR BMW 13 LIFE DRIVE ARCHITECTURE. EU Institute of Innovation & Technology: Lightweight composite materials are the key to the next generation of electric vehicles² (1) https://www.boeing.com/commercial/aeromagazine/articles/qtr_4_06/article_04_2html (2) https://eit.europa.eu/news-events/news/lightweight-composite-materials-key-next-generation-electric-vehicles#16The Future of Distributed Manufacturing Manufacturers must overcome the limits of existing global supply chains. 16 FRENCH BORDERS CLOSED Welcome to the PORT OF DOVER Terminal All Cycles d#17The Markforged Solution The Digital Forge The mini factory of the future - delivering production parts at the point-of-need. 17 (1) http://www.stripes.com/news/pacific/cutting-edge-Okinawa-marines-say-new-metal-3d-printer- opens-up-a-whole-1.616511 Note: Use of quote does not imply endorsement. Quote refers to Metal X System (not pictured). "Right now, the sky is the limit honestly with this printer. If you can think of it, we can literally do it." - Marine Staff Sgt. Quincy Reynolds of the III Marine Expeditionary Force's 3rd Maintenance Battalion¹ EMAINES AVE#18Accessible Additive Composites Markforged's Continuous Fiber Reinforcement proprietary process for Advanced Composites. 18 Onyx base material Continuous fiber inlay#19Replacing Traditionally Manufactured Steel and Aluminum Parts Customers are replacing legacy plastic and metal parts with Markforged proprietary Continuous Fiber Reinforced (CFR) composites Tensile Strength (MPa) 1000 800 600 400 200 19 0 CFR is 11x stronger than Onyx and 25x stronger than ABS plastic¹ (1) (2) 32 ABS Plastic 71 Markforged - Onyx 310 Aluminum (Aircraft Grade 6061) Markforged internal test results as of December 2020. Markforged Proprietary Survey of 90 Customers as of October 2019. 800 Markforged - CFR Majority are replacing metal parts² Frequency of Original Material Replacement by Survey Respondent Application Plastic 21% Fiberglass Carbon-Fiber 1% 6% Steel 35% + Aluminum 37% 72%#20Markforged 2.0 - From Accessible End-Use Parts to Robust Production Markforged#21Large & Growing Addressable Market Opportunity Additive Manufacturing Industry Expected to Grow $100B+ by 2030 $120B $100B $50B 21 $OB $2B 24% CAGR Source: Wohlers Report 2021. $12B $18B 25% CAGR $47B $115B 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030#22Blue-Chip Customer-Base Across Key Verticals Industrial Automation Replacing traditional infrastructure. BOSCH Schneider ABB KUKA FANUC YASKAWA MOTOMAS DOROT 22 Aerospace Flying on business jets and military aircraft. AIRBUS LOCKNEED MARTIN Raytheon NORTHROP Technologies GRUMMAN (GE) Military & Defense Supporting troops in combat zones. U.S. AIR FORCE SIT OSTALE RISE KAUNO U.S.ARMY AMERICA'S NAVY 06 Note: Select customers included. Not inclusive of entire customer base. Use of logos does not imply endorsement. Space Orbiting on the International Space Station. NASA BLUE ORIGIN SPACEX Healthcare & Medical Protecting lives with critical medical equipment. Medtronic Gillette Alcon B BAYER E REGENERON Automotive Enabling vehicle production. W T HONDA TESLA 0000 CAD Ford TOYOTA DAIMLER GM -#23The Benefit for Customers is Clear 23 DANA -10x faster for key application 4 continents with Markforged printers 4->23 Printers KEY APPLICATION Tool for Axle Manufacturing wwww UNITED STATES Sources: Management prepared information collected from customer interviews and internal data. Note: Use of logos does not imply endorsement. MARINE CORPS $270k/yr cost savings on key application 3 months first printer payback period 2->29 Printers KEY APPLICATION Tool for Field Repair Frito Lay 45x cost savings on key application 9 months first printer payback period 1->35 Printers KEY APPLICATION Tool for Automated Assembly Line#24Markforged Delivers Clear Value Proposition Today for Customers Customized Parts Gripping Fingers for Manufacturing Robots 24 Time Cost Conventional 10 weeks $400 Markforged 2 days $10 Complex Composite Parts Holding Tool for Machining, Assembly, and Welding Time Cost Sources: Management prepared information collected from customer interviews and internal data. Conventional 4 weeks $2400 Markforged 2 days $130 Metal End-Use Parts Replacement Carburetor Casing Time Cost Conventional 5 months $10k+ Markforged 3 days $282#25Proven Broad Portfolio of Printers for Manufacturing Onyx 1 Desktop 3D printer for strong parts built with chopped carbon fiber Shipping since 2016 25 Mark Two Powerful professional Continuous Fiber Reinforcement 3D printers for aluminum strength parts Shipping since 2016 X7 Standout industrial Continuous Fiber Reinforcement 3D printer for manufacturing Shipping since 2016 Metal X Accessible end to end metal 3D printing solution for functional metal parts Shipping since 2018 Shpe SINTER-2 Sinter-2 Automating the most complex step in metal printing with the touch of a butt Shipping since 2019#26Wide Range of Proprietary Materials Unlocks Broad Set of Applications Composites Carbon Fibers Metals 17-4PH Stainless Steel 26 Kevlar Continuous Fiber Inconel 625 Fiberglass H13 Tool Steel Onyx D2 Tool Steel Onyx FR (for Aerospace) Onyx ESD (for Electronics) Chopped Fiber A2 Tool Steel Copper#27Differentiated Software Platform... Delivering Key Benefits 27 1 2 3 4 Cloud First Architecture OTA Updates Global Fleet Management Expertise Embedded (Process Knowledge & Sintering) Increased printer speed by 2x Reduced sintering run time by 42% Reduced gas cost by 65% Increased print volume by 15% Increased feature usage by 250% All improvements achieved through software updates Source: Markforged analysis of connected fleet data.#28Our Scale Advantage; Fueling The Markforged Flywheel 28 Consistent Improvement Federated fleet learning combined with real-time part corrections create a reliable and repeatable production process Better Parts More Customers Hran Markforged Markforged Printers Get Smarter Grow Expertise at the Speed of Global Production New printers are added to network to scale manufacturing capacity More Part Data Part Scanning + Industrial loT Part Prep and Fleet Management Devices are constantly streaming back data on parts and performance Drives Al-powered part quality improvements across entire fleet#29Strong Distribution Channels with Global Coverage 100+ certified channel partners -1,000+ GTM talent within channel partner network 29 Markforged distribution channel presence as of January 2021.#30VAR Network We have strategically constructed our reselling network to drive our business. Global 30 Global footprint provides scale and wide coverage WURTH IPhillips Mark3D Print Stronger Additive Focused on providing best-in-class additive solutions FASOTEC 3DZ EXXBUILD Note: Select VARS included. Not inclusive of entire distribution network. Software- based Leveraging large install base to deliver complete solutions HAWK RIDGE SYSTEMS designpoint PLM GROUP Experience 3D Federal Focused on Government, Military & Defense GovSmart. carahsoft.#31Experienced & Visionary Management Team to Drive Us Forward Leadership Founders Leadership Greg Mark Co-Founder & Chairman GENASUN 31 Mi Dorit Liberman Chief Human Resources Officer ENERPAC TOOL GROUP 3M K Go-to-Market Ved Narayan VP Sales, APAC Kornit Digital banding matters NEWFORMA 35 DASSAULT SYSTEMES On David Benhaim Co-Founder & Chief Technology Officer QPalantir KYRUUS קווין Matt Gannon VP, Operations Newell Rubbermaid Brands That Matter Brian Houle VP Sales, EMEA DASSAULT SYSTEMES BS SOLIDWORKS Shai Terem President & Chief Executive Officer Kornit Digital bonding matters stratasys Morgan Stanley Stephen Karp General Counsel aspentech IBM PHASE FORWARD. Bryan Painter VP Sales, Americas ca technologies New Relic. Engineering Mark Schwartz Chief Finance Officer trax LAUNCHPAD DIGITAL HEALTH fabrinet Dan Eiref Senior Director Product Management fitbit A AMD BROADCOM Patrick Shea VP Demand Generation cybereason HubSpot Ken Clayton SVP, Global Sales goengineer DASSAULT SYSTEMES 35: Joe Roy- Mayhew Senior Director Materials Vorbeck Deloitte. Michael Papish VP Marketing SONOS mediaUnBound#32Executing on the Company's Growth Strategy Accelerated Product Innovation Operational Expertise M&A 32 1 Powered by Software (Blacksmith + Eiger) 2 Continue to Expand Customer Use Cases 3 Deeper and More Efficient Go-to-Market Coverage 4 Building the Brand 5 Accelerating Growth Strategy Markforged is in an estimated 10,000 facilities today and plans to be in 100,000 in 5 years Number of Facilities with Markforged Printers 10,000 facilities 1 Million facilities 100,000 facilities Time#33Markforged Additive 2.0 Today 1 2 3 4 5 6 33 Large & Growing Market Opportunity Visionary + Experienced Leadership Team Software Is the Engine for the Markforged Platform Invented New Industrial Grade Process Proven in the Most Demanding Applications Highly Attractive, Scalable Financial Model (1) Wohlers Report 2021. (2) As of January 2021. Additive manufacturing market to grow $100B+ in 10 years¹ Acceleration of existing supply chain consolidation and reshoring trends Reinvented the industry with continuous fiber process Building a smart, fleet-learning, Al-powered additive platform Deep experience in software, printing technology, hardware, operations Additive process that monitors part production and connects in real-time Software enables accessibility and faster adoption of technology Continuous learning creates sustainable competitive advantage Exceptionally strong composite materials replacing traditionally manufactured metal end-use parts High and tangible customer ROI supports land and expand Robust IP in metal and carbon fiber with over 170 issued and pending patents Large and growing global installed base of connected printers (-10k) ² Blue-chip customers, including leading aerospace, automotive and major US Armed Forces branches Scalable growth fueled by strong global distribution partner network covering -70 countries² Compelling gross margins and strong, expanding unit economics driven by recurring revenue#34Financial Overview#35Financial Summary Q1 '21 (USD in millions) Hardware Consumables Services Total Revenue Gross Profit Margin - % EBIT(1) Margin - % Adj EBITDA(1) Margin - % 35 (1) Q1 2020A $12.6 4.2 1.0 $17.7 $9.4 53.2% ($5.1) (28.7%) ($4.1) (23.4%) Q1 2021A $14.4 4.6 1.3 $20.3 $12.4 60.9% ($6.1) (30.1%) ($4.5) (22.1%) $ $1.9 0.5 0.3 $2.6 $3.0 ($1.0) ($0.4) YOY Change % 15.1% 11.2 27.2 14.8% 31.5% N.M. N.M. Excludes $0.2M and $3.7M of non-recurring costs across Q1 2020A and Q1 2021A, respectively, related to litigation and audit, legal and other costs associated with the transaction. Adj. EBITDA is adjusted for stock- based compensation. Please reference slide 48 "Reconciliation of Non-GAAP Financials" for information regarding the non-GAAP measures.#36Financial Summary Q1 '21 (Cont'd) Total Revenue (USD in millions) EBIT (1) (USD in millions) 36 (1) $17.7 Q1 2020A Q1 2020A ($5.1) +15% $20.3 Q1 2021A Q1 2021A ($6.1) Gross Profit (USD in millions) Adj. EBITDA (1) (USD in millions) $9.4 Q1 2020A Q1 2020A ($4.1) +31% $12.4 Q1 2021A Q1 2021A ($4.5) Excludes $0.2M and $3.7M of non-recurring costs across Q1 2020A and Q1 2021A, respectively, related to litigation and audit, legal and other costs associated with the transaction. Adj. EBITDA is adjusted for stock- based compensation. Please reference slide 48 "Reconciliation of Non-GAAP Financials" for information regarding the non-GAAP measures.#37Revenue Summary Q1 '21 Hardware (USD in millions) Services (USD in millions) 37 $12.6 Q1 2020 $1.0 Q1 2020 +15% +27% $14.4 Q1 2021 $1.3 Q1 2021 Consumables (USD in millions) Total Revenue (USD in millions) $4.2 Q1 2020 $17.7 Q1 2020 +11% +15% $4.6 Q1 2021 $20.3 Q1 2021#38Large & Growing Installed Base of Active Online Printers Connected Printers 38 1,020 2016A 2,538 2017A Source: Management projections. 74% CAGR 4,821 2018A 8,130 2019A 9,286 2020A 11,520 2021E 60% CAGR 15,573 2022E 23,962 2023E 41,460 2024E 76,334 2025E#39Proven Track Record of Growth, Large Opportunity Ahead Historical Performance Total Revenue (USD in millions) $5 2015A Revenue Growth - % NM 39 $88* Forecasted Performance Total Revenue (USD in millions) 2021E Revenue Growth - % 22% $11 Source: Management projections. *COVID-19 impacted. 2016A 121% $122 2022E 40% '15A - '20A CAGR: 71% $30 2017A 173% - '21E '25E CAGR: 68% $226 2023E 84% $62 2018A 108% $398 2024E 76% $73 2019A 18% $72* 2020A (1%) $706 2025E 77%#40Strong Path to Profitable Growth Gross Profit/ Gross Margin % (USD in millions) 40 Gross Profit Gross Margin % 48% $30 2018A 50% $36 2019A Source: Management projections. 58% $42 2020A 58% $51 2021E 59% $72 2022E 59% $133 2023E 60% $239 2024E $434 62% 2025E Gross profit consisting of Hardware, Consumables, Success Plan, Software, shipping, warranty, and other indirect COGS 2018A-2020A margin improvement due to operational efficiencies, Go To Market Optimization and a growing base of recurring revenue 4% margin expansion between 2020A-2025E driven by increased scale and operating leverage#41Strong Path to Profitable Growth (Cont'd) Adj. EBITDA¹2 / Adj. EBITDA¹2 Margin % (USD in millions) 41 Adj. EBITDA Adj. EBITDA Margin % (19%) ($12) 2018A (37%) ($27) 2019A (16%) ($11.3) 2020A (42%) ($37) 2021E (31%) ($38) 2022E (6%) ($14) 2023E $42 11% 2024E $172 24% 2025E Streamlined cost structure during 2020A Planned investment in future product development 2021E- 2023E, benefiting from operational leverage in later years Highly capital efficient business, generating -$72mm of sales on a total of -nearly $95mm capital invested to date Source: Management projections. (1) Excludes $0.6M, $2.1M, and $7.6M of non-recurring costs across 2019A, 2020A, and 2021E, respectively, related to litigation and audit, legal and other costs associated with the transaction. Additionally, no ongoing public company costs are assumed. (2) Adj. EBITDA is adjusted for stock-based compensation. Please reference slide 48 "Reconciliation of Non-GAAP Financials" for information regarding the non-GAAP measures.#42Markforged Illustrative Unit Economics Analysis Illustrative Gross Profit per Printer (USD in 000's) Immediate Payback Upon Initial Transaction 42 ($9.9) CAC (1) (2) Includes -$20k upfront hardware sale $14.9 Initial Transaction Gross Profit - % Today 64% $10.5 Years 2-8 Key Metrics LTV: -$25.4k² LTV/CAC: -2.6x $25.4 LTV Gross Profit - % 68% Source: Management projections. 2023E and after. Cumulative gross profit over average customer life of 8 years (excluding customer acquisition costs). Illustrative Gross Profit per Printer (USD in 000's) Immediate Payback Upon Initial Transaction ($5.1) CAC $16.4 Initial Transaction Gross Profit - % Tomorrow¹ 68% $21.0 Years 2-8 Key Metrics LTV:-$37.4k² LTV / CAC: -7.3x $37.4 LTV Gross Profit - % 76%#43Transaction Overview & Valuation#44Detailed Transaction Overview Values in Millions Except per Share and Percentage Data 44 Sources & Uses Existing Shareholders Rollover Equity¹ SPAC Cash in Trust² PIPE Financing Current Net Cash Total Sources Existing Shareholders Equity¹ Cash to Balance Sheet Transaction Expenses Cash to Sellers Total Uses Sources Note: (1) (2) (3) (4) (5) Us es $1,611 $215 $210 $54 $2,089 $1,611 $399 $35 $45 $2,089 Pro Forma Valuation & Ownership 12345 Pro Forma Valuation Share Price Shares Outstanding Pro Forma Equity Value (-) Pro Forma Net Cash Pro Forma Enterprise Value Pro Forma Ownership PIPE Investors 10% SPAC Sponsor 1% SPAC IPO Investors 10% Transaction close anticipated in Summer 2021 Excludes impact of the exercise of Sponsor or IPO warrants which both have a strike price of $11.50. Percentages may not sum to 100% given rounding. Excludes shares reserved for issuance under management equity incentive plan. Assumes $10.00 share price and no redemptions from public shareholders. Includes 161.1M existing Markforged equity holders shares, 21.5M SPAC IPO shares, 2.7M SPAC sponsor shares, and 21.0M PIPE Investor shares. Excludes 2.7mm SPAC sponsor shares vesting in 1.3mm share increments at $12.50 and $15.00. Excludes additional seller earn-out of 8.0M shares that vest at $12.50 and 6.7M shares that vest at $15.00. Existing Shareholders 789 $10.00 206 $2,062 ($399) $1,664#45Markforged#46Appendix#47Financial Summary (USD in millions) Total Revenue Growth - % Gross Profit Margin - % EBIT(1¹) Margin - % Adj. EBITDA (1) Margin - % 47 2018A $61.7 108.3% $29.7 48.1% ($12.8) (20.7%) ($11.6) (18.8%) 2019A $72.6 17.7% $36.3 49.9% ($29.2) (40.3%) ($27.0) (37.1%) 2020A $71.9 (1.0%) $41.9 58.3% ($15.7) (21.8%) ($11.3) (15.7%) Year Ended December 31, 2021E 2022E $87.6 21.9% $50.7 57.9% ($42.0) (48.0%) ($36.6) (41.7%) $122.5 39.9% $71.7 58.6% ($45.1) (36.9%) ($37.9) (30.9%) 2023E $225.7 84.3% $133.3 59.1% ($23.8) (10.5%) ($14.2) (6.3%) 2024E $397.6 76.2% $238.7 60.0% $29.7 7.5% $42.2 10.6% 2025E $705.8 77.5% $434.1 61.5% $156.0 Source: Management projections. (1) Excludes $0.6M, $2.1M, and $7.6M of non-recurring costs across 2019A, 2020A, and 2021E, respectively, related to litigation and audit, legal and other costs associated with the transaction. Additionally, no ongoing public company costs are assumed. Adj. EBITDA is adjusted for stock-based compensation. Please reference slide 48 "Reconciliation of Non-GAAP Financials" for information regarding the non-GAAP measures. 22.1% $171.9 24.4%#48Reconciliation of Non-GAAP Financials Adj. EBITDA¹ (USD in millions) Operating income (loss) Depreciation & amortization Stock-based compensation Adjusted EBITDA¹ Q1 Adj. EBITDA² (USD in millions) Operating income (loss) Depreciation & amortization Stock-based compensation Adj. EBITDA (2) 48 2018A ($12.8) 0.7 0.6 ($11.6) Q1 2020A ($5.1) 0.5 0.5 ($4.1) 2019A ($29.2) 1.4 0.9 ($27.0) Q1 2021A ($6.1) 0.4 1.2 ($4.5) 2020A ($15.7) 2.6 1.8 ($11.3) Year Ended December 31, 2021E ($42.0) 1.7 3.7 ($36.6) 2022E ($45.1) 2.6 4.7 ($37.9) 2023E ($23.8) 3.3 6.3 ($14.2) 2024E $29.7 4.2 8.4 $42.2 Source: Management projections. (1) Operating income (loss) excludes $0.6M, $2.1M, and $7.6M of non-recurring costs across 2019A, 2020A, and 2021E, respectively, related to litigation and audit, legal and other costs associated with the transaction. Additionally, no ongoing public company costs are assumed. (2) Operating income (loss) excludes $0.2M and $3.7M of non-recurring costs across Q1 2020A and Q1 2021A, respectively, related to litigation and audit, legal and other costs associated with the transaction. 2025E $156.0 4.8 11.1 $171.9#49Markforged Invented Continuous Fiber Reinforcement Continuous Fiber Reinforcement Markforged proprietary additive manufacturing process Continuous Fiber Reinforcement (CFR) - Adds continuous strands of fiber material to a part, to achieve metal-strength properties at a fraction of the weight Process allows for flexibility of fiber type and location of fiber layers to achieve maximum control over part behavior The power of CFR comes from the continuity of the strands. Our patented CFR strands can absorb and distribute loads across their entire length 49 Continuous Fiber Routed Through Part Matrix Materials#50Metal X Makes Complex Parts Simple Commercially Viable Metal Printing Sub $100k Broad range of metals for simple and accessible production Accessible method to print Inconel 625 nickel-based superalloy and Pure Copper Unlocking highest-value applications to date including weld shanks and high-temp tooling 50 Automotive Welding Shank Traditional Part Markforged Part#51Markforged

Download to PowerPoint

Download presentation as an editable powerpoint.

Related

1st Quarter 2021 Earnings Presentation image

1st Quarter 2021 Earnings Presentation

Technology

Rackspace Technology Q4 2022 Earnings Presentation image

Rackspace Technology Q4 2022 Earnings Presentation

Technology

CBAK Energy Technology Investor Presentation image

CBAK Energy Technology Investor Presentation

Technology

Jianpu Technology Inc 23Q1 Presentation image

Jianpu Technology Inc 23Q1 Presentation

Technology

High Performance Computing Capabilities image

High Performance Computing Capabilities

Technology

SOLOMON Deep Learning Case Studies image

SOLOMON Deep Learning Case Studies

Technology

1Q20 Earnings image

1Q20 Earnings

Technology

Nutanix Corporate Overview image

Nutanix Corporate Overview

Technology