Business Description

Overview Proto Labs, Inc. was incorporated in Minnesota in 1999. The terms “Proto Labs,” "Protolabs," the “Company,” “we,” “us,” and “our” as used herein refer to the business and operations of Proto Labs, Inc. and its subsidiaries. We are the world’s fastest manufacturing service enabling companies across every industry to streamline production of quality parts throughout the entire product life cycle. From custom prototyping to end-use production, we support product developers, engineers, and supply chain teams along every phase of their manufacturing journey. Founded in 1999, we radically reduced the time needed to produce injection molding prototypes through complex software that automated the manufacturing process. Over the next two decades, we added computer numerical control ("CNC") machining, 3D printing, and sheet metal fabrication, and later acquired 3D Hubs, Inc ("Hubs") and launched the Protolabs Network, our global network of manufacturing partners (“MPs”). Our 25+ years of growth while expanding capabilities provide customers with the best digital manufacturing experience in the industry. Our vision is accelerating innovation by revolutionizing manufacturing. Our mission is to shape the future by bringing customer ideas to life across every stage of the product life cycle. We accomplish this by offering a variety of manufacturing capabilities fulfilled through a combination of owned manufacturing factories ("Factory") and a worldwide network of premium manufacturing partners ("Network"). Our automated quoting and manufacturing systems are highly integrated with our manufacturing and fulfillment systems, which allow us to offer a vast array of manufacturing technologies in a variety of materials across a continuum of lead times and prices. Protolabs uses artificial intelligence (“AI”) in a number of different ways to improve our efficiency and the value we offer to customers, including: intelligent pricing and sourcing algorithms, automated quality inspection in injection molding, toolpath verification in CNC machining, software development, and various other AI end use cases. In the age of AI, we are well-positioned with our long history of leveraging technology to solve legacy manufacturing challenges and are deploying AI to power how we drive innovation to better serve our customers. AI is enabling us to move faster than ever before and continue to scale our business efficiently. Our highly differentiated manufacturing offerings are backed by an intellectual property portfolio of 60 patents, and over 60 additional trade secrets. Our patents are in the areas of methods of manufacturing (both subtractive and additive), software supporting methods of manufacturing, and pricing of parts. Our technology-enabled digital engineering and manufacturing applications enable us to produce commercial-grade prototype and production plastic, metal, and liquid silicone rubber parts in as fast as one day. Since our inception, we have manufactured over 700 million parts, and served over 300,000 customers, including 95% of Fortune 100 companies in key industries. Our customers engage with us throughout the lifecycle of their product, from early-stage prototyping through end-use production to end-of-life replacement and other parts needs that we fulfill through a combination of factories and MPs. Through our Factory operations, we manufacture prototype and low volume production parts for companies worldwide, who are under increasing pressure to bring their finished products to market faster than their