The document summarizes the emerging 3D printing industrial sector. It discusses key companies in the space like Ex One, Arcam, and ProtoLabs. It also addresses fundamental questions around the opportunities and challenges around industrial 3D printing of metals. Key points discussed include Arcam's leadership in 3D printed titanium hip implants, various countries' policy support for additive manufacturing research through organizations like America Makes, and predictions that the aerospace, automotive, and medical sectors could represent an $8.4 billion 3D printing market by 2025.

1. THE BRONZE AGE
2.0
Rationalizing the 3D Universe
Policy, Context and Strategy
in an Emerging Industrial Sector
Christopher R. O’Dea
Inside 3D Printing, April 23, 2013
Photo: “Molten Bronze in DMSE Foundry“
Massachusetts Institute of Technology, School of Engineering, Department of Materials Science and Engineering

2. Industrial Opportunity Driving
Rationalization
• Companies:
• Ex One
• Arcam
• ProtoLabs
• Information providers/analysts
• Lux Capital
• MIT Technology Review
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3. The Digital Blacksmith
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4. 3D and Industrial Manufacturing
…”A key cause of death”
Daniel Holland, Morningstar
In Investors Business Daily online, February 7, 2013
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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?
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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
• Materials
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7. Downstream from Technology
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8. Business Model Innovation
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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 revenue
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10. Arcam’s Leg Up – Titanium Hips
Business
• Access medical contract
manufacturing expertise:
• Feb. 2013 alliance
• Option to acquire DiSanto
• 2012 MDF, Oak Ridge
• Application development
• Aerospace exclusives
• Fraunhofer Dresden
• Tapping US markets:
• OMTEC Chicago, June 2013
Science
• Fully-dense metal
• Electron beams vs. Laser
• Orthopedic implants
• 30,000+ implanted
• EU 2007, USA 2010
• Serves Ortho and Spinal
implant clients
• Validated powder supply chains
• Powder handling/safety
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11. Why is this
man not
smiling?
Manufacturer: 3D printers
Founded: 1997
CEO: Magnus René
Headquarters: Mölndal
Number of employees: 53
Turnover: 139 million
(2012)
Profit: 15 million (2012)
Largest single shareholder:
Industrial Development
Fund, owns 25 percent
(Data & Photo: it24.idg.se)
“Duktiga människor och uthållighet”
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12. Engineering Tool-Neutral Value
BDTG.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 positions
PRLB 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, convenience
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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 commoditization
Terry Wohlers, Seeking Alpha, February 26, 2013/Morningstar
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14. Policy Drivers - EU
• Additive Manufacturing Alliance integrates the research of
Germany's 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:
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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 focus
on market impact within several months.
• NCDMM
• Driving NAMII, blueprinting the Institutes with defense focus?
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16. “AAM” – A New Industrial Sector
• Auto
• Aero
• Medical
• Combined $8.4 billion by 2025 (Lux Capital projection) tracks
Wohlers forecast of $6.5 billion by 2019.
• Dental revolution rolling along
• Surgical applications increasing
• Organ research underway
• Lighter, stronger materials – cabins, airframes, seating
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17. 3D Market Segmentation
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18. What’s Ahead? Creative Disruption
• Production in 12 plants in
8 countries
• Sales in 83 countries
• Net sales MSEK 7,081
(2011)
• >110 employees
dedicated to R&D
• 700 patents
• Output devices
• Technology platform
• Knowledge network
• DirectSpare links to EU
• Leverage powder lead
• Expand offering/service
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19. Creative Disruption
• Sweden’s industrial elite shake up AM
• Höganäs - fcubic deal reverses the “razor blades” play
• Powder maker’s challenge to 3D machines raises stakes
• Lindengruppen bid creates strategic threat in metals
• Private capital funds long-term approach and R&D
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20. Scandinavian Designs
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21. THANK YOU