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, 2016 2015 ASSETS Current assets Cash and cash equivalents $ 280,328 $ 257,592 Accounts receivable, net 120,411 123,215 Inventories 117,521 123,658 Net investment in sales-type leases 11,717 11,704 Prepaid expenses 7,571 8,469 Other current assets 15,491 22,435 Total current assets 553,039 547,073 Non-current assets Net investment in sales-type leases - long-term 12,126 17,785 Property, plant and equipment, net 208,415 201,934 Goodwill 385,629 383,853 Other intangible assets, net 177,458 252,468 Other non-current assets 29,382 11,243 Total non-current assets 813,010 867,283 Total assets $ 1,366,049 $ 1,414,356 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 40,933 $ 39,021 Current portion of long-term debt 3,714 - Accrued expenses and other current liabilities 28,282 31,314 Accrued compensation and related benefits 34,186 34,052 Income taxes payable 3,925 11,395 Obligations in connection with acquisitions 3,619 4,636 Deferred revenues 49,952 52,309 Total current liabilities 164,611 172,727 Non-current liabilities Long-term debt 22,286 - Deferred tax liabilities 5,952 16,040 Deferred revenues - long-term 12,922 7,627 Obligations in connection with acquisitions - long-term - 4,354 Other non-current liabilities 22,251 22,428 Total non-current liabilities 63,411 50,449 Total liabilities $ 228,022 $ 223,176 Commitments and contingencies (see note 10) Redeemable non-controlling interests 2,029 2,379 Equity Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 52,639 thousands shares and 52,082 thousands shares issued and outstanding at December 31, 2016 and 2015, respectively 142 141 Additional paid-in capital 2,633,129 2,605,957 Accumulated other comprehensive loss (13,479) (10,774) Accumulated deficit (1,483,925) (1,406,706) Equity attributable to Stratasys Ltd. 1,135,867 1,188,618 Non-controlling interests 131 183 Total equity 1,135,998 1,188,801 Total liabilities and equity $ 1,366,049 $ 1,414,356 The accompanying notes are an integral part of these consolidated financial statements. F-3