Nano Dimension Mergers and Acquisitions Presentation Deck slide image

Nano Dimension Mergers and Acquisitions Presentation Deck

Nano Dimension's Fully-funded, All-cash Offer for Stratasys Shares Delivers Certain, Immediate Cash, Premium Value Versus Alternatives Stratasys and Desktop Metal Claim "Growth Opportunities for the Combined Company: The Desktop Metal transaction is expected to establish a uniquely scaled additive manufacturing company that would be one of the largest companies in the industry, targeting $1.1B in 2025 revenue. "Opportunities for Meaningful Synergies: Significant revenue and cost synergies are expected as a result of the Desktop Metal transaction, including $50M of revenue synergies by 2025." "Increased Financial Strength: The combination is expected to create a well-capitalized business with a very attractive financial model [...].” 3D Systems Claim "Participation in highly certain value creation through realization of approximately $100 million in estimated cost synergies." "Regulatory approvals obtainable in a timely manner. 39 Reality * While revenues will increase modestly, the combined company gross margins, cash flows and net income will decrease substantially Stratasys sacrifices profitability and capital preservation for a costly addition to the top-line and maintaining independence Approximately half of the estimated $50 million annual run-rate cost synergies are derived from corporate cost elimination which requires years to implement; the remaining cost synergies from COGS and other Opex optimization and any revenue synergies typically require even longer ramp-up periods Shareholders will have to wait for synergies to be realized and value to be created - if at all Cash generating Stratasys is paying a premium price for the merger with cash burning Desktop Metal with $(193) million 2022A Free Cash Flow (1); current cash position allows for less than two years runway Reality Lack of quantifiable support for 3D Systems' claims and uncertainty for Stratasys shareholders when and if synergies would be realized "We see minimal opportunity for scaling benefit [...]. We also see potential challenges from anti-trust […..].” – Credit Suisse, June 1st, 2023(²) - Potential regulatory uncertainty as this proposed combination represents the combination of the largest and second largest players in the 3D printing space Source: Desktop Metal SEC filings Note: (1) Free Cash Flow equals Cash Flow from Operations less Capital Expenditures; (2) Shannon Cross, Credit Suisse, June 1st, 2023 NANODIMENSION 11
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