Arcam: Interim Report January – March 2014

MÖLNDAL, Sweden--()--Regulatory News:

Arcam AB (STO:ARCM)

Increased sales and improved earnings

· Net sales increased by 70% to 64.9 (38.1) MSEK

· Net profit after financial items increased to 3.6 (0.1) MSEK (including non-recurring costs associated with the acquisition of AP&C of 6 MSEK)

· Earnings per share amounted to 0.20 (0.01) MSEK

· Cash at the end of the period 368.1 (38.3) MSEK

· Order intake amounted to 6 (6) systems, and 7(4) systems were delivered in the period.

· The order book contained 11 (12) systems by the end of the period

· The acquisition of the metal powder manufacturer AP&C was completed on February 11.

Significant events after the end of March:

· Two EBM system orders beginning of April

Telephone conference with CEO Magnus René and CFO Johan Brandt

April 17, 2014 at 2.00 p.m. (CET)

SE: +46 8 505 982 61

UK: +44 2 031 940 554

US: +1 855 716 158 9

Link to presentation:

http://event.onlineseminarsolutions.com/r.htm?e=782857&s=1&k=9B56BCCA7BBBB5AD6F347F6B395EE002

Increased sales and improved earnings

For the first quarter we report a 70% increase in sales compared to the first quarter in 2013 and a significantly improved result. Trailing twelve month sales amounts to 226.2 MSEK and earnings amount to 18.9 MSEK. The result includes non-recurring costs in the first quarter 2014 associated with the acquisition of AP&C of 6 MSEK. The order intake during the period amounts to 6 systems and the order book as of today comprises 13 systems.

Acquisition of AP&C

In February we acquired the powder producer AP&C from Raymor Industries in Canada. AP&C is a leading manufacturer of high quality metal powder and supplier of titanium powder to Arcam since 2006. Titanium powder is an important part of our offering and with this acquisition we have secured access to the best technology for the production of high quality metal powder for our customers. The acquisition is fully in line with our growth strategy and complements our EBM technology and product portfolio. The acquisition was completed on February 11, and is consolidated from this date. AP&C´s share of group sales in the first quarter amounts to 3.5 MSEK after group eliminations.

Business status

We received 6 new orders during the quarter and we see a continued strong demand, particularly in Asia. The sales of our new large system, Arcam Q20, gains momentum and we have received 4 system orders. Arcam Q20 is planned for delivery to the first customers during the second quarter. The work to industrialize our technology with the major players within the aerospace and implant industries continue and we can now see good opportunities for volume orders during the year. At the same time, we see that the growing interest and knowledge in Additive Manufacturing and 3D printing creates interest within new segments. This may long term give opportunities for broadening of our product applications. Of the 7 systems that were delivered during the first quarter the majority went to customers within the implant or the aerospace industry.

The cooperation with DiSanto is progressing with agreements with customers for which DiSanto is manufacturing products.

Growth – organic and through acquisition

In addition to the acquisition of AP&C we are in rapid organic growth. We thus continue to recruit qualified employees in order to meet the expectations from our customers. During the quarter we have strengthened our service office in China and the support organization in Sweden. Through the acquisition of AP&C and through recruitment the number of employees has increased from 55 to 109 since March 2013.

An order book of 13 systems, increasing aftermarket sales and a positive business situation lays a solid foundation for a continued strong growth in 2014.

Mölndal, April 17, 2014

Magnus René, CEO

The above information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published on April 17, 2014 at 08.30 (CET).

Arcam provides a cost-efficient Additive Manufacturing solution for production of metal components. The technology offers freedom in design combined with excellent material properties and high productivity. Arcam’s market is global with customers mainly in the orthopedic and aerospace industries. The company was founded in 1997 and is listed on NASDAQ OMX Stockholm, Sweden. Head office and production facilities are located in Mölndal, Sweden. Support offices are located in the US, UK, Italy and China.

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Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden • 46-31-710 32 00 • www.arcam.com

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Contacts

Arcam AB
Magnus René
CEO
Tel: 0046 31 710 32 00
alt. cell: 0046 702 79 89 99
e-mail: magnus.rene@arcam.com

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Contacts

Arcam AB
Magnus René
CEO
Tel: 0046 31 710 32 00
alt. cell: 0046 702 79 89 99
e-mail: magnus.rene@arcam.com