3D Printing & Fenway Sports GroupA Partnership with LFC & LBJ

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Print Press

Light Bulb

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3D Printing

THE NEXT REVOLUTION.The 5th Industrial Revolution

Technology is constantly evolving and pushing the boundaries

on what we as a society create, but also the manner in which

it is created. Throughout history we have witnessed certain

technological breakthroughs, that have changed the dynamic of

entire industries.

3D Printing will be the next game changer, disrupting almost

every industry. It is only a matter of time before it starts

to revolutionize whole production processes and redefine

distribution. The possibilities and capabilities of 3D Printing are

truly mind blowing. And it will happen much quicker than all

advances before it.

T3D, with its background in Medical Imaging and Medical 3D

printing is at the cutting edge of these developments. Today, we

offer the Fenway Group the opportunity to come with us on this

journey of transformational technology.

3D Printing has the potential to revolutionize the way we make almost everything. The next industrial revolution in manufacturing will happen.

- US President, Barack Obama (State of the Union Address,

November 2013)

telephone

50 years

25 years

12 years

7 years

internet

television

cellphones/pc

“Timeframes for Mass Adoption of Technological Advances

“The question is not

whether every home will have a 3D printer but which room it will

be in.

1.1   1.3  1.7  

2.2  

3.07  

4.0  

6.0  

7.9  

10.8  

0  

2  

4  

6  

8  

10  

12  

2009   2010   2011   2012   2013   2015  Forecast  

2017  Forecast  

2019  Forecast  

2020  Forecast  

Billion

s  (USD

)  

Consumer Products 20%

Automotive 20%

Medical 15%

Aerospace 12%

Other 33%

3D Printing Industry Split (By value US$; October 2014)

Wohlers Associates

3D Printing Industry Size (By value US$; October 2014)

T3D CAPABILITIESOur Medical Origins

Understanding the real capabilities and expertise

of T3D requires an understanding of our origins in

medial imaging and medical 3D printing - a genesis

through our lineage of Capitol Health Limited and 3D

Medical Limited.

Capitol Health Limited (ASX:CAJ) is an Australian

public company providing medial diagnostic imaging

services. Established some 14 years ago and co-

founded by 333D Pty Ltd (T3D) Chairman, John

Conidi, Capital Health Ltd has grown to become one

of the leading diagnostic imaging service providers

in Australia with over 70 clinics and revenues

approaching $100m per annum. Capitol Health Limited

has a market cap of approximately AU$450 million.

It was through research undertaken by Capitol Health

into the application of 3D printing technology to

the diagnostic imaging sector that the significant

potential in applying the technology to the medical

and healthcare sector was identified. Along with the

potential application of 3D printing to fulfill the macro

medical and healthcare trend towards personalized

medical solutions, it became clear that 3D printing

offered the opportunity for healthcare providers and

enterprises to gain systemic efficiencies, improved

work flow and improved patient outcomes.

3D Medical Limited (ASX:3DM) was born with the

clear ambition of providing specialist 3D printing

services to the medical and healthcare sector.

What was thought impossible mere years ago is

now a reality - from the printing of 3D body parts for

observation or pre-operation practice, to the printing of

operational, bespoke patient limbs or implants.

The medical industry represents the cutting edge of

what is possible with 3D printing, and it is our proud

birthplace.

The creation of T3D

Leveraging off the research undertaken, consequent deeper

understanding of 3D printing and ancillary technology, 333D

Pty Ltd (T3D), a multi-faceted integrated 3D technology

company was founded.

T3D Limited is Australia’s leading integrated multi-platform 3D

printing company.

Our upstream and downstream lines of business include the

following:

• Designing and manufacturing a range of 3D printers,

including the worlds largest fused filament fabrication

(FFF) printer;

• Development of a 3D printing service bureau;

• Creation of an online marketplace of digital files which

are 3D print ready either by the purchaser at home or by

3DG as a print & post service;

• Research and development around scanning

technology and the use of graphite and graphene in 3D

printing; and

• An education initiative and platform throughout

secondary schools in Australia promoting the

technology and its capabilities (in partnership with the

Victorian Government).

T3D is a highly ambitious, integrated and multi-platform 3D printing

company. Our lines of business are both upstream and downstream around 3D printing technology, making T3D

truly uniquePrinter Bureau

3D Scanning & imaging

Education

Online Platform

Graphene

“Consumer &

industry printing

bureau with the

ability to print in all

materials

Ability to scan &

digitize all forms

& structures. End

product are STL

files ready to print

Working alongside

Schools nationally.

We aim to train &

provide hardware

across Australia

Repository of 3D

files (STL) which

can be downloaded

or streamed

securely (home or

delivery service)

Strong focus

on research &

development.

Formed a JV with

Kibaran Resources“T3D has an ambitiousplan to place a 3D printer in every primary school in Australia and we intend to develop an educational program around the technology to skill today’s children for the jobs of tomorrow.

How Does 3D Printing Work?

3D Printing is the process of making a physical

object from a three dimensional digital file

(known as an STL). This usually takes the form

of laying down many successive thin layers

of material. This new technology provides us

with the opportunity to do for manufacturing

what computers and the internet have already

done for the creation, processing and storage of

information.

The 3D printing process, has three main steps,

but depending on the course of action may

involve some additional items. Please see these

illustrated opposite.

1

1

3

2

3

Make the file> Construct a Computer Aided Design (CAD)> Or, use a 3D Scanner

'slice' the file> Put STL file through to slicer to achieve layers> Use

print at home> Own and operate your own machine

Download or buy the file> From an platform online> File in STL format

Print> At a 3D printing company> Pick up or deliver

A

A

B

B

WHAT IS 3D printing? 3D PRINTING TIMELINE.

PRESENT DAY

• 3D Printing broken into hobbyists and amateur artists/ designers

• 3D Printing bureaus springing up across major cities

• Community based and file sharing digital platforms growing in momentum

• Awareness of the technology more prevalent across society with media publications such as the Economist regularly reporting on 3D Printing

2015

US $4bn - Estimated 3D market (Deloitte)

Officeworks selling a range of 3D Printers across their national network of stores

3D PRINTING TIMELINE.

12 MONTHS 24 MONTHS 36 MONTHS 48 MONTHS 60 MONTHS

• Prosumer type printers more affordable & home printers

• Increased functionality

• Printer prices continue to fall

• Online marketplaces expand

• Increasing strategies around localising high value, high complexity, low volume production

• Greater shift towards design driven manufacturing

• Brands & companies using 3D printing to offer limited edition collectibles

• Previously noted trajectory continues

• Physical devices become embedded devices

• A convergence between different technologies including augmented reality (AR) virtual reality (VR) and 3D (both screen and printing)

• STL file purchase./ streaming widely adopted

• 3D printers of varying qualities will be found in almost all schools and homes across the

developed world.

• Greater retail/consumer penetration and take up

• Probably some disappointment at the limitations retail printers have

• Growing and expanding online marketplace

• The application and incorporation of 3D printing into conventional manufacturing as a way to offer added personalisation

• Consolidation of online marketplaces

• Prices continue to fall & addressable market expands

• Printer feedstock materials expands allowing 3D printing to be even more broadly applied

• Printer technology continues to improve

• Hewlett-Packard’s multi jet fusion technology openly available to the market.

• Technology 10x faster than existing printers

• Expected to be affordable

US $6bn - Estimated 3D market (Deloitte)

US $7.9bn - Estimated 3D market (Deloitte)

US $10.8bn - Estimated 3D market (Deloitte)

Victorian Government, Australia - has promised 3D printers for all state schools by 2017

2016 2017 2018 2019 2020

WHAT IT MEANS FOR FSG?Firstly: Creating the Long Tail of Merchandise

The Pareto principle (also known as the 80–20 rule or the law of the vital few)

states that, for many events, roughly 80% of the effects come from 20% of the

causes. Pareto developed the principle by observing that 20% of the pea pods in his

garden contained 80% of the peas. The 80–20 rule is roughly followed by a power

law distribution for a particular set of parameters, and many natural phenomena

have been shown empirically to exhibit such a distribution. It has since become a

common rule of thumb in business, with many critical areas often displaying a similar

distribution, namely:

- 80% of a company’s profits coming from 20% of its customers

- 80% of a company’s sales come from 20% of its products

This is essentially the basis for hit driven economics - in an age where there just

wasn’t enough room to carry everything for everyone: not enough shelf space for

all the CD’s, DVD’s and video games produced, not enough radio waves to play all

the music created, and nowhere near enough time in any day to squeeze available

content through television slots - we need to choose those in highest demand.

So, in accordance with the Pareto Principle, for companies in the retail business,

focusing on the hits made sense. It was the lion’s share of the market after all. After

the top 5-10% of products in any given category, demand drops dramatically and

ultimately seems to get pretty close to zero.

This is the way in which licenced product markets have been viewed for the last

century. Every retailer (or licensee) has their own economic threshold - they all cut

off what they can’t carry somewhere. Things that are likely to sell in the required

numbers get carried; things that aren’t, don’t. We are obsessed with guessing what

will sell, and what will not.

And the industry of licensing has been much the same. The US$185 billion in licensed

retail sales in 2013 was dominated at the top end, by the leading brands, franchises and

sports. In fact, just the Top 10 brands in 2013 in terms of global licensing retail sales,

including Walt Disney (US$40.9 Billion), Mattel (US$8 Billion), Warner Bros (US$6 Billion)

and Major League Baseball (US$5.5 Billion), accounted for 48.1% of total global retail sales.

Traditional licensing exists largely in a world

of scarcity - a world where limited shelf space

dictates choosing just the hits. Even now with

the advent on online retail shops to a global

marketplace, and warehouses reducing storage

costs, pre-production decisions are still required

to determine what will sell and what wont.

It does not reflect a free market such as in

music, where the product itself is digital, only

manifesting itself at the purchaser end.

Top  5  Brands  48%  

Brands  6  to  10  16%  

Brands  11  to  20  19%  

The  Tail  17%  

Breakdown Global Retail Licensing Sales

(By Licensor Brands; 2013)

Power Law Distribution(or Pareto Distribution)

Occ

urr

ence

s o

r V

alu

es

Categories or Classes

The HitsTypically 80% of the value measured will come from only 20% of the categories or classes

The TailConversely, in traditional markets the bottom 80% of Categories or classes contribute only 20% value

Extend that to just the top 20 brands - which then includes the

likes of Dreamworks (US$3.3 Billion) and the NFL (US$3.25

Billion) - and these account for 83.1% retail sales.

Top  5  Brands  48%  

Brands  6  to  10  16%  

Brands  11  to  20  19%  

The  Tail  17%  

This is where 3D Printing changes the world of retail forever. In a more advanced

age of digital, with online retail and consumer driven distribution and creation, we

will exist in a world of abundance - where there are zero distribution costs and no

cost limitation - where everything changes. In a world of abundance, suddenly

right of the curve becomes very important.

In online retail - not constrained by the same space and geographic restraints -

more niche products can be offered and find a consumer, as the world is your

marketplace. So while Barnes & Noble, a Fortune 500 Company and the largest

bricks and mortar retail bookseller in the US, typically stocks around 100,000 titles,

Amazon has a total inventory of more than 10 million titles - and more than 30%

of its total sales is generated by titles not offered in the largest retail stores.

In the licensing space, the physical production of products still requires decisions

to be made about what will sell, and what won’t.

And this is where the true opportunity of 3D printing lies – the ability for

companies to produce a wide range of objects on demand – or allow

customization by the consumer themselves - with no inventory costs – to be

produced by the consumer as needed. Just as we have seen with books, music

and film, we will now see with objects in general.

“We sold more books today that

didn’t sell at all yesterday than we

sold today of all the books that did

sell yesterday.”

- an unnamed Amazon employee.

0.00

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00

Barnes  &  Noble     Amazon  

Total Book Titles Stocked(Comparison; 2012)

Secondly: Building the LFC & LBJ platform of the future

On April 28, 2003, Apple threw open the virtual doors to its iTunes store, and music - the music

industry hasn’t been the same since. Suddenly, an industry terrified of online piracy had a

legitimate place to earn money from the sale of digital music. Listeners no longer had to drive to

their neighborhood record store to buy that new album by Norah Jones or 50 Cent. A song cost

only 99 cents, a bargain next to an $18 CD. And iTunes powered iPods, with their signature white

earbuds, became a must-have mobile accessory.

Not everyone was thrilled. Record labels grumbled at being strong-armed over song prices by

Apple CEO Steve Jobs. Some musicians complained that they didn’t earn enough royalties from

digital-music sales.

But by 2010, iTunes was the largest music retailer on the planet. Today, it has 435 million

registered users in 119 countries and recently served up its 25 billionth song. iTunes also now

sells much more than music: Customers can download movies, TV shows, games, books,

podcasts and more.

Here’s the way it used to work: You’d hear a song on the radio. You’d have to figure out what it

was (a challenge in the days before Shazam). You’d drive to a mall. You’d search for the record.

You’d buy the record -- if it was in stock. You’d put it in your CD player or on your turntable.

Finally, you’d get to listen.

Now: Hear song, download song. Instant gratification.

We believe 3D Printing will have an identical impact upon the licenced merchandise industry.

Desire Licenced Item, choose licenced product online, personalise, print. Simple.

(...and LFC & LBJ)

THE NEXT STEPS

1

1

3

2

3

Make the file (& Underlying strategy)> T3D will work with FSG to develop a robust 3 - 5 year 3D printing strategy for LFC & LBJ , taking into account current licencing partnerships, and seeking to maximise revenues. > T3D will work with your team to identify the existing merchandise portfolio to be digitized, in addition to any additional items we can create, and the extent to which such items should be customizable to the end purchaser. > Using the latest in 3D imaging technology, and our team of designers, T3D will create a portfolio of 3D STL files for LFC & LBJ to create your digital merchandise catalog.

'slice' the file> T3D will work with FSG to ensure end users have the ability, utilising our online tools and process, that they are capable of manipulating the LFC & LBJ STL files consistent with agreed uses and in a way that adds ultimate value to value proposition.

print at home> Additionally, T3D will ensure at every stage best practice file security is employed to ensure that risk of cannibalization of value is minimized through multiple printing at home, or end user distribution of STL files.

Download or buy the file> T3D will build a secure online marketplace which will ultimately house the FSG, LFC & LBJ Digital catalogue.> T3D will work closely with FSG to develop a robust pricing strategy that contemplates both simple file download for print at home, to printing by our distri-bution network and shipping to end user.

Print> Recognizing that in the short term penetration of 3D Printers into homes is low, T3D will establish a robust 3D printing distribution network, that feeds into the online site, allowing end users to have printed items shipped to them, or capable of delivery from a 3D Printing Bureau.

A

A

B

B

Prepare FSG, LFC & LBJ for the next Revolution

In order to simplify, we outline here (consistent with our diagram earlier

in term of How 3D Printing works?) how we can work alongside and

partner FSG to place you ahead of the curve in terms of 3D printing, and

prepare you for the next industrial Revolution.

OUR Proposed relationship

A Next Generation Licencing Relationship

Ultimately, T3D seeks, through FSG, to be a licensee of both LIverpool Football Club

and Le Bron James. The Official 3D Printing Licensee of LFC and LBJ.

However, this is a new generation of licensee.

Unlike your traditional, existing bricks and mortar licensees who are defined by the

product or category of product they wish to manufacture and distribute, we would

be a licensee categorized through the mode of distribution. Through the creation

and distribution of 3D STL digital files.

However we recognise there is currently little to no market for the sale and

distribution of LFC & LBJ 3D STL files, and accordingly we seek to work with FSG to

create this market. We seek to create this market jointly, consistently with the steps

outlined earlier, through:

• development of a long term FSG, LFC & LBJ 3D Strategy;

• creation of a digitized LFC & LBJ merchandise portfolio;

• creation of a short to medium term pricing strategy;

• creation of a secure LFC & LBJ white labeled online marketplace

(accommodating features allowing end user to manipulate and customize STL

files consistent with the FSG strategy); and

• creation of a holistic distribution network (to cater for short term low

penetration of 3D printers in homes).

In recognition for the opportunity to explore this opportunity with the FSG, and

become the Official 3D Printing Licensee Partner of the LFC and LBJ, the above

wholly represents an investment by T3D in the future of the FSG, LFC and LBJ 3D

merchandising opportunity.

Our ultimate remuneration will come through the ability to receive a commission

or similar on sales of merchandise through the 3D platform, both from downloads

of STL files, or in the short term sales of 3D printable merchandise through the 3D

distribution network, printed on behalf of end users.

This remuneration structure would not be unlike what is currently in place with

traditional licensees, and we would sincerely appreciate the opportunity to speak

further with you regarding how this may operate.

We view this a long term partnership in which we are prepared to significantly invest

in the creation of a new platform in the short to medium term, to provide the FSG

and your partners with a long term commercial asset, and place you at the forefront

of a technology that will ultimately transform the retail and licenced merchandise

industry.

Frank PertileManaging Director

frank.pertile@3dg.com.auP. +61 403 439 466www.333d.com.au

333D Pty Ltd435 Williamstown Rd, Port Melbourne VIC , Australia