Market Moving News. January 22, CONTACTS Investment Banking Peter Lombard. Joel Schneider. Greg Klancher

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1 Market Moving News The Dow and the S&P 500 recorded their eighth positive week out of the past nine, posting gains of around 1% as investors weighed fourth-quarter earnings reports and prospects of a partial government shutdown. As a whole, the major market indices finished up for the week, with the Dow, S&P 500, NASDAQ, and Russell 2K finishing +1., +0.9%, +1., and +0.4%, respectively. The CBOE Volatility Index closed at 11.27, up +10.9% for the week. The Dow topped 26,000 points on Wednesday, just eight trading days after it eclipsed 25,000 on January 4. The surge marked the index s fastest 1,000- point rise ever. In addition, the S&P 500 blew past 2,800 on Wednesday, a threshold that index achieved just 10 days after it breached 2,700. The yield of the 10-year U.S. Treasury bond climbed above 2.61% on Thursday, the highest level in more than three years. It s a sign of growing expectations that the Fed will continue to lift interest rates. China s economic growth rate has accelerated for the first time in seven years. The government said GDP growth in 2017 was 6.9%, up from 6.7% the previous year. Although the 2017 figure is higher than many economists had expected, it marks a slowdown from the double-digit growth that China routinely posted a few years ago. The Dow jumped nearly 323 points, or 1.3%, on Wednesday as the index topped 26,000 points. The S&P 500 advanced 0.9% as all 11 sectors in the index rose. The NASDAQ on Wednesday closed at an inflation-adjusted record high, surpassing its peak closing level set in March 2000 at the height of the dot-com boom. Adjusting an index level for inflation offers a sense of how the purchasing power of money invested in the index changes over time. The U.S. dollar fell on Thursday to the lowest level since May 2015, as measured by its value versus major foreign currencies. Analysts attributed the decline in recent days to concerns about a possible partial U.S. government shutdown as congressional leaders and President Trump tried to negotiate a short-term government funding measure. The U.S. government s initial estimate of fourth-quarter GDP is expected to be one of the most closely watched economic reports this week. Most economists expect Friday s report will show an annual growth rate of around 3., slightly below the third quarter s 3.2% rate. CONTACTS Investment Banking Peter Lombard MANAGING DIRECTOR Tel: peter.a.lombard@pjc.com Greg Klancher PRINCIPAL Tel: gregory.v.klancher@pjc.com Joel Schneider MANAGING DIRECTOR Tel: joel.w.schneider@pjc.com Source: John Hancock Weekly Market Recap 3D PRINTING AND ROBOTICS UPDATE 1 Investment Banking Monthly Newsletter February

2 Index Price Performance DJIA $26,071.7 $25,803.2 $ % 5.5% 99.8% NASDAQ 7, , % 6.3% 100. S&P 500 2, , % 24.1% 5.1% 100. Russell , , % 18.7% Average 0.8% 26.9% 5.2% 100. LTM Index Price Performance 4 S&P 500 NASD Russell Dow (1) (2) (3) (4) CBOE Volatility Index (VIX) 50 VIX Source: CapitalIQ 3D PRINTING AND ROBOTICS UPDATE 2

3 3D Printing Industry News On Wednesday, 3D Systems and Stryker announced an exclusive distribution partnership for VSP (Virtual Surgical Planning) and anatomical models for the craniomaxillofacial specialty. This partnership will drive the availability of personalized surgical planning and techniques to healthcare professionals saving both surgeons and patients hours in the operating room. On Thursday, Stratasys announced that French aircraft design and manufacturing group, Latécoère, is deploying Stratasys FDM additive manufacturing throughout its design and production process, accelerating the development process and improving business performance. Last week, Seurat Technologies, a Silicon Valley-based startup, announced it has raised $13.5 million in a Series A funding round to accelerate its muchhyped metal additive manufacturing technology. The funding round was led by VC firm True Ventures and brought on high profile investors including GM Ventures, Porsche SE, Maniv Mobility, and next47, a venture capital firm working for Siemens Power and Gas. 3D Printing Stock Price Performance 3D Systems Corporation $10.66 $11.19 ($0.53) (4.7%) (37.3%) 23.4% 45. 3,658,984 3,323, x Stratasys Ltd (0.42) (1.8%) 14.8% 14.3% 73.9% 677, , x SLM Solutions Group AG (3.55) (6.1%) 46.5% (5.1%) 89.4% 24,136 45, x Materialise NV (0.39) (2.8%) 66.7% 5.4% 81.2% 52,680 74, x The ExOne Company (1.8%) 19.3% 69.4% 109, , x voxeljet AG (0.08) (1.5%) 44.6% % 67,756 71, x Average (2.7%) 22.3% 11.5% 73.2% 0.8x 3D Printing Trading Valuation ($ in millions, except per share data) Stock Price % of 52 YTD Stock Equity Enterprise Revenue EBITDA EPS Company Name Fri (1/19) Week High Return Value Value 2017E 2018E 2017E 2018E 2017E 2018E 3D Systems Corporation $ % $1,198 $1, x 1.5x 11.6x 9.4x 20.5x 17.2x Stratasys Ltd % 14.3% 1, x 1.3x 9.2x 8.1x NM 45.2x SLM Solutions Group AG % (5.1%) x 5.2x NM NM NM NM Materialise NV % 5.4% x 3.6x 46.0x 31.2x NM NM The ExOne Company % 19.3% x NA NM 17.9x NM NM voxeljet AG % x 2.5x NA 22.4x NM NM Median 3.6x 3.6x 16.1x 17.9x 31.8x 36.0x Average 4.0x 3.4x 23.8x 18.7x 31.8x 36.0x 3D Printing LTM Stock Price Performance 15 SSYS DDD VJET XONE SLM MTLS 10 5 (5) (10) Source: CapitalIQ and respective company investor relations pages 3D PRINTING AND ROBOTICS UPDATE 3

4 Robotics/Drones Industry News Last week, AeroVironment introduced TurboDX, the company's next-generation EV charging station for commercial, workplace, utility and residential customers around the world. TurboDX is a durable, reliable, fast and safe solution that delivers unparalleled flexibility to accommodate a wide range of users' needs. Last week, ECA Group announced that they were awarded a 30M contract alongside CEFA & SCOPEX to supply Unmanned Ground Vehicles (UGVs) to the French Ministry of Armed Forces. The three partnering companies will supply the first ever-made road, rail & air deployable shelter of EOD & C-IED equipment so as to provide transportation platform & in-service maintenance workshop for the 3 French Armed Forces (Army, Navy & Air Forces) as a unique, interoperable solution to be qualified by the DGA (French Defense Procurement Agency). Robotics/Drones Stock Price Performance irobot Corporation $88.79 $87.19 $ % 49.5% 15.8% 80.9% 746,826 1,092, x Brooks Automation, Inc % 70.9% 20.8% 82.9% 668,922 1,008, x AeroVironment, Inc (0.47) (0.9%) 109.4% (4.6%) 90.9% 177, , x FARO Technologies, Inc % 46.2% 15.7% 99.4% 69, , x Groupe Gorgé SA % (10.3%) 16.9% 72.5% 13,706 21, x Parrot S.A (1.15) (10.3%) 15.4% (5.2%) 63.2% 77,370 51, x Perceptron, Inc % 57.9% 8.7% 97.6% 24,182 43, x Average 1.5% 48.4% 9.7% 83.9% 0.7x Robotics/Drones Trading Valuation ($ in millions, except per share data) Stock Price % of 52 YTD Stock Equity Enterprise Revenue EBITDA EPS Company Name Fri (1/19) Week High Return Value Value 2017E 2018E 2017E 2018E 2017E 2018E irobot Corporation $ % 15.8% $2,542 $2, x 2.5x 23.7x 16.2x NM 34.2x Brooks Automation, Inc % 20.8% 2,098 2, x 2.8x 25.3x 14.9x 26.2x 22.4x AeroVironment, Inc % (4.6%) 1,323 1, x 3.3x 27.8x 39.1x NM 54.7x FARO Technologies Inc % 15.7% x 2.1x 22.8x 16.2x NM 39.6x Groupe Gorge SA % 16.9% x 1.0x 11.2x 10.0x 23.9x 22.4x Parrot S.A % (5.2%) x 0.4x 3.4x 8.1x 7.4x NM Perceptron, Inc % 8.7% x 1.2x 19.0x 18.7x 48.0x NA Median 2.2x 2.1x 22.8x 16.2x 25.1x 34.2x Average 2.1x 1.9x 19.0x 17.6x 26.4x 34.7x Robotics/Drones LTM Stock Price Performance 15 FARO IRBT BRKS PRCP GRG PARRO AVAV 10 5 (5) (10) Source: CapitalIQ and respective company investor relations pages 3D PRINTING AND ROBOTICS UPDATE 4

5 Disclosure Piper Jaffray Companies (NYSE: PJC) is a leading investment bank and asset management firm. Securities brokerage and investment banking services are offered in the U.S. through Piper Jaffray & Co., member SIPC and FINRA; in Europe through Piper Jaffray Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Jaffray Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Asset management products and services are offered through five separate investment advisory affiliates U.S. Securities and Exchange Commission (SEC) registered Advisory Research, Inc., Piper Jaffray Investment Management LLC, PJC Capital Partners LLC and Piper Jaffray & Co., and Guernsey-based Parallel General Partners Limited, authorized and regulated by the Guernsey Financial Services Commission. Information contained in this publication is based on data obtained from sources we deem to be reliable, however, it is not guaranteed as to accuracy and does not purport to be complete. Nothing contained in this publication is intended to be a recommendation of a specific security or company nor is any of the information contained herein intended to constitute an analysis of any company or security reasonably sufficient to form the basis for any investment decision. Since Member SIPC and NYSE 2018 Piper Jaffray & Co. piperjaffray.com 3D PRINTING AND ROBOTICS UPDATE 5