STRATASYS LTD. ANNUAL

Statement of Financial Position

Table of Contents STRATASYS LTD. CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets (in thousands, except share data) December 31, 2015 2014 ASSETS Current assets Cash and cash equivalents $ 257,592 $ 442,141 Short-term bank deposits 571 595 Accounts receivable, net 123,215 150,806 Inventories 123,658 123,385 Net investment in sales-type leases 11,704 8,170 Prepaid expenses 8,469 7,931 Deferred income taxes - 25,697 Other current assets 21,864 37,903 Total current assets 547,073 796,628 Non-current assets Goodwill 383,853 1,323,502 Other intangible assets, net 252,468 597,903 Property, plant and equipment, net 201,934 157,036 Net investment in sales-type leases - long-term 17,785 14,822 Deferred income taxes and other non-current assets 11,243 9,216 Total non-current assets 867,283 2,102,479 Total assets $ 1,414,356 $ 2,899,107 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 39,021 $ 37,359 Short-term debt - 50,000 Accrued expenses and other current liabilities 31,314 34,514 Accrued compensation and related benefits 34,052 42,332 Income taxes payable 11,395 13,246 Obligations in connection with acquisitions 4,636 28,092 Deferred revenues 52,309 45,023 Total current liabilities 172,727 250,566 Non-current liabilities Obligations in connection with acquisitions - long-term 4,354 26,461 Deferred tax liabilities 16,040 55,835 Deferred revenues - long-term 7,627 5,946 Other non-current liabilities 22,428 25,091 Total non-current liabilities 50,449 113,333 Total liabilities $ 223,176 $ 363,899 Commitments and contingencies (see note 10) Redeemable non-controlling interests 2,379 3,969 Equity Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 52,082 thousands shares and 50,923 thousands shares issued and outstanding at December 31, 2015 and 2014, respectively 141 139 Additional paid-in capital 2,605,957 2,568,149 Accumulated other comprehensive loss (10,774) (3,647) Accumulated deficit (1,406,706) (33,871) Equity attributable to Stratasys Ltd. 1,188,618 2,530,770 Non-controlling interests 183 469 Total equity 1,188,801 2,531,239 Total liabilities and equity $ 1,414,356 $ 2,899,107 The accompanying notes are an integral part of these consolidated financial statements. F-3