Christopher O'Dea Bronze Age 2.0

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  • 1. THE BRONZE AGE2.0Rationalizing the 3D UniversePolicy, Context and Strategyin an Emerging Industrial SectorChristopher R. ODeaInside 3D Printing, April 23, 2013Photo: Molten Bronze in DMSE FoundryMassachusetts Institute of Technology, School of Engineering, Department of Materials Science and Engineering

2. Industrial Opportunity DrivingRationalization Companies: Ex One Arcam ProtoLabs Information providers/analysts Lux Capital MIT Technology ReviewODea & Associates 2 3. The Digital BlacksmithODea & Associates 3 4. 3D and Industrial ManufacturingA key cause of deathDaniel Holland, MorningstarIn Investors Business Daily online, February 7, 2013ODea & Associates 4 5. Fundamental Questions Why Metal? Industrial or Consumer? Complement or Substitute? Material or Machine? Customer Service or Customer Capture? Innovation or Disruption? Can National Policy Influence Global Trends?ODea & Associates 5 6. How Investors Look at Opportunity It has to be a business End-user clearly defined Value proposition defined and sustainable Revenue and profit models clear Excitement is expected hype is a red flag Core requirements: Addressable markets: Industrials Professionals Consumers Company offerings: Printers Services MaterialsODea & Associates 6 7. Downstream from TechnologyODea & Associates 7 8. Business Model InnovationODea & Associates 8 9. XONE Spotlights Metal Shines the spotlight on industrial metals Increases transparency and focus in AM sector Manufacturing/OEM base: Ford, Boeing, BMW, Cat EXMAL Leading edge materials lab Certify one new material every six months/ 9-24 mo. pipeline 12 industrial materials in process Delivery system: M-Flex machine; unveiled at IMTS 2012 Chicago Industrial-grade metal/ceramics; 10X speed increase Increasing PSC from 4Q goal; 45% of revenueODea & Associates 9 10. Arcams Leg Up Titanium HipsBusiness Access medical contractmanufacturing expertise: Feb. 2013 alliance Option to acquire DiSanto 2012 MDF, Oak Ridge Application development Aerospace exclusives Fraunhofer Dresden Tapping US markets: OMTEC Chicago, June 2013Science Fully-dense metal Electron beams vs. Laser Orthopedic implants 30,000+ implanted EU 2007, USA 2010 Serves Ortho and Spinalimplant clients Validated powder supply chains Powder handling/safetyODea & Associates 10 11. Why is thisman notsmiling?Manufacturer: 3D printersFounded: 1997CEO: Magnus RenHeadquarters: MlndalNumber of employees: 53Turnover: 139 million(2012)Profit: 15 million (2012)Largest single shareholder:Industrial DevelopmentFund, owns 25 percent(Data & Photo: mnniskor och uthllighetODea & Associates 11 12. Engineering Tool-Neutral ValueBDTG.DE Bertrandt Digital engineering unit Strong Auto and Aero Breaks out 3D printing Near 30% ROE 30% institutional owned Increasing institutional base: Net new holders Net increased positionsPRLB Proto Labs Machined and IM parts $80 billion global market Can 3D players challenge? Big Market: 3 mil. CAD 30% Revenue, 50% ROIC,60% GM Speed thru Software Tool Neutral Brand power: Integrated, reliable service Speed, pricing, convenienceODea & Associates 12 13. Consumers: Odds are against You Will consumers care that products are made by 3D printing? Most will not People care about good value People care that the product performs as advertised Will consumers really print a refrigerator handle?Even if you have a 3D printer at home, it will not offer the right material, color, surface finish,texture, strength properties, and build volume to meet your needs. More likely outcome: service bureaus, online outlets Other issues: Lack of user-friendly design software Increasing competition Potential commoditizationTerry Wohlers, Seeking Alpha, February 26, 2013/MorningstarODea & Associates 13 14. Policy Drivers - EU Additive Manufacturing Alliance integrates the research ofGermanys 11 scientific and engineering institutes Engineering, materials, technology and quality Industrial applications and projects Focus Industries: Automotive, aerospace, bio-medicine and microsystems. National and international research projects The Alliance in Action:ODea & Associates 14 15. Policy Drivers - US NAMII can the U.S. catch up? POTUS highlighted AM in State of the Union NAMII Progress First Project Call in November; Defense Manufacturing Conference $4.5 million awarded to initial 7 projects across AM spectrum;winners responsible for $5 million matching funds. Still a pilot for Manufacturing Institute Network; short-term focuson market impact within several months. NCDMM Driving NAMII, blueprinting the Institutes with defense focus?ODea & Associates 15 16. AAM A New Industrial Sector Auto Aero Medical Combined $8.4 billion by 2025 (Lux Capital projection) tracksWohlers forecast of $6.5 billion by 2019. Dental revolution rolling along Surgical applications increasing Organ research underway Lighter, stronger materials cabins, airframes, seatingODea & Associates 16 17. 3D Market SegmentationODea & Associates 17 18. Whats Ahead? Creative Disruption Production in 12 plants in8 countries Sales in 83 countries Net sales MSEK 7,081(2011) >110 employeesdedicated to R&D 700 patents Output devices Technology platform Knowledge network DirectSpare links to EU Leverage powder lead Expand offering/serviceODea & Associates 18 19. Creative Disruption Swedens industrial elite shake up AM Hgans - fcubic deal reverses the razor blades play Powder makers challenge to 3D machines raises stakes Lindengruppen bid creates strategic threat in metals Private capital funds long-term approach and R&DODea & Associates 19 20. Scandinavian DesignsODea & Associates 20 21. THANK YOU