1. 3D Printing - A Double Edged Sword - How Can Businesses Manage Their Risk While Seizing The Opportunity? March 2015 www.pwc.com/cybersecurity

2. PwC Agenda 2 1. Why am I here ? 2. Why do you care ? 3. What can we do about it ?

3. PwC 3D Printing business adoption is happening - now Source: PwC and Zpryme survey and analysis, “2014 Disruptive Manufacturing Innovations Survey” 3 66.7% 66.7% of manufacturers are adopting 3DP in some way (Experimenting to determine how they might apply it, or using it to prototype products or producing final products.) 24.7% 24.7% of manufacturers plan to adopt 3DP in the future in some way 5.2% within the next year 10.3% within 3 years 9.2% some time beyond 3 years 8.6% 8.6% of manufacturers do not plan to adopt 3DP ever

4. PwC Business benefits of 3D Printing are significant 4 30% of respondents in a PwC survey believe that supply chains face restructuring due to 3DP According to PwC analysis, assuming half of MRO (maintenance, repair and operation) materials are 3DP printed, the global airline industry could realize about $1.8 billion in additional pre-tax profits annually. Source: PwC and Zpryme survey and analysis, “2014 Disruptive Manufacturing Innovations Survey”

5. PwC It’s almost here so we have a little more time 5... and barriers to 3DP adoption need to be crossed before full-scale adoption occurs 47.2% Uncertain quality of the final product (strength, durability, etc.) 31.5% Printers are too expensive 45.3% Lack of current expertise in our company to fully exploit the technology and difficulty in recruiting talent 22.2% Inability to print with multiple materials 21.3% Too few “links” (i.e., feedstock materials) currently available Source: PwC and Zpryme survey and analysis, “2014 Disruptive Manufacturing Innovations Survey”

6. PwC 3D Printing has its benefits and challenges 6 Q. If and when 3D printing is widely adopted, what will be the most disruptive effect on US manufacturing? Reduced need for transportation and logistics 051015 2025 30 35 40 45 50 Increased competition to find talent for 3D printing Weakened economic viability of traditional high-volume production Changed relationship with customers/end users Threat to intellectual property Restructured supply chains Source: PwC and Zpryme survey and analysis, “2014 Disruptive Manufacturing Innovations Survey”

7. PwC Protecting your business assets 7 Identification of Assets 61% of survey respondents say they have a program to identify sensitive assets 61% Business Classification of Data 69% of survey respondents have a program to classify the business value of data 69% Source: PwC, CSO magazine, CIO magazine, The Global State of Information Security® Survey 2015

8. PwC Agenda 8 1. Why am I here ? 2. Why do you care ? 3. What can we do about it ?

9. PwC Competitive Advantage 9

10. What’s a trade secret? All forms and types of financial, business, scientific, technical, economic, or engineering information Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, the public 10 Source: Create.org and PwC, Economic Impact of Trade Secret Theft, February 2015

11. PwC 3D Printing business drivers resulting in cyber risks 11 The Opportunity 3D printing presents game-changing opportunities for manufacturing companies. Reduce costs, speed up manufacturing processes, reduce distribution and logistics costs, and discover novel new products or enhancements The Risk 3D printing technology increases the risk of intellectual property loss. As diffuse trade secrets are consolidated into digital files, there is increased risk of loss of competitive advantage Shifting Intellectual Property Information Models CURRENTFUTURE IP

12. PwC Agenda 12 1. Why am I here ? 2. Why do you care ? 3. What can we do about it ?

13. PwC Understand the trade-offs 13 1.Talk to your key stakeholders about the Cybersecurity challenges they might face as a result of 3D printing adoptions 2.Ask your key stakeholders: Do they know what their most important information assets are? Do they understand risks when concentrating their trade secrets into digital files ? Do they understand how heightened security controls can be implemented to protect the most important assets – prior to adopting 3D technology ? Speed to Market FeaturesQuality Trilemma Pick any two Seize the opportunity

14. PwC Measure the impact 14 Potentially tens or hundreds of thousands of assets Filter Assets Reporting and Prioritization Critical Assets Impact Modeling Confidentiality Integrity Availability Asset Pool (systems, servers, applications, data, etc.) An economic impact analysis can be executed across three phases: 1.) Critical Asset Identification 2.) Impact Modeling 3.) Reporting & Prioritization

15. PwC Understanding your key security controls 15 Lifecycle Management Valuable 3D Digital Files Security Awareness Training Focused Monitoring Multi-factor Authentication Encryption Network Segmentation

16. PwC Secure by design 16 Product Change Product Inception QA/Testing Detailed Requirements Product Finishing and Release Product Build & Prototyping Product Development

17. PwC Proactive security can enable the business What critical and sensitive information are exposed to threats? Which threats represent the greatest risk to the organization? How should information be protected against these threats? 2 High-Value Information asset identification Where is high-value information being stored? Is it classified appropriately? What data retention policies apply to it? What controls are in place to protect it? 3 Threat Vulnerability analysis 4 Secure by design product development How can you harvest and combine diverse business, technical, analytical, regulatory, and investigative knowledge and know- how to deliver both profitable and secure products? 1 Business-aligned approach What are the corporation’s most critical and sensitive information? Who is using it? What business processes does it support? How does it impact the bottom line? 17 Business solutions designed to solve today’s Cybersecurity challenges

18. PwC Key Contacts © 2015 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Quentin “Q” Orr Partner | Philadelphia Q@pwc.com 267-330-2699