Arcam: Interim Report January – March 2015

MÖLNDAL, Sweden--()--Regulatory News:

Arcam AB (STO:ARCM):

Continued strong growth

· Net sales increased by 72% to 111.4 (64.9) MSEK

· Operating income amounted to 2.1 (2.3) MSEK

· Net income amounted to 3.8 (3.6) MSEK

· Earnings per share amounted to 0.21 (0.20) SEK

· 9 (7) EBM systems were delivered during the period

· Order intake increased to 10 (6) EBM systems

Telephone conference with CEO Magnus René and CFO Johan Brandt

April 21, 2015 at 2.00 p.m. (CET)

The conference will be conducted in English.

Phone numbers

SE: +46 8 566 426 61

UK: +44 203 428 14 10

US/Canada: +1 855 753 22 36

Link to presentation:

Arcam Q1 report (https://event.onlineseminarsolutions.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=973636&sessionid=1&key=DFC0122ECF84ED91223857A1AB2DB061&sourcepage=register)

Continued strong growth

Arcam continues to develop rapidly and during the first quarter the growth was over 70%, of which 30% was organic growth. Sales for the first quarter grow to 111.4 MSEK and trailing twelve months sales amounts to 385.4 MSEK. Operating profit for the period amounts to 2.1 MSEK and trailing twelve months the operating profit was 19.5 MSEK. The weak operating profit in relation to the strong growth is due to increased production capacity that is not yet fully utilized. The order intake during the period was 10 EBM systems and the order book by the end of the period was 20 EBM systems.

While sales of our EBM systems continues to grow, also our acquisitions the metal powder manufacturer AP&C in Canada, and contract manufacturer DiSanto in the US grow. We now have an offering to our clients with our EBM systems as a hub and metal powders and contract manufacturing being important supplementary products broadening our offering to the market and providing recurring sales.

Business status

We received 10 new orders in the period and we see a continued strong demand, particularly from the aerospace industry. The order from GKN, which was presented in March, is an important key reference and a break through. Together with GKN we will take the next steps towards fully industrializing our EBM technology in the aerospace industry.

Sales of metal powders at AP&C continues to grow. At the end of 2014 a third powder reactor was installed and the increased capacity is a prerequisite for continued growth. During the quarter, we also invested in production equipment at AP&C in order to streamline production to meet the demand for higher volumes.

The demand for contract manufacturing was weaker around the turn of the year but production is now increasing again. During the quarter, we have received several significant new customers to the EBM part of contract manufacturing.

The growing interest and increasing knowledge of Additive Manufacturing and 3D printing gives us new customers in new industry segments. This may long term lead to a broadening of our product applications. Of the 9 systems that we shipped during the quarter the main part went to customers in the implant or the aerospace industry.

A strengthened organization

During the quarter, we strengthened our sales and support organization in the US through the recruitment of a President for the EBM business in the US. Thus, we consolidate the administration and logistics for the North American part of the EBM business to a new base in Boston. In the UK we have inaugurated a new office in Warwick and we have strengthened our team with new employees in sales and support. With the new local offices, we move management, customer relations and logistics closer to our customers. We can then better meet customer needs for local service.

During the quarter, we started a major expansion of our production facilities located in Mölndal. The expansion, which means that we will double our production area, will be completed in the second quarter.

The strong growth, expansion into new markets and the development of our acquisitions will require further development of the organization, both within the core business and in the subsidiaries. To continue to develop our technology and take advantages of the business situation, we have a very ambitious recruitment and growth plan.

With 20 machines in order, a stable aftermarket and a positive business situation we are prepared for a continued strong growth in 2015.

Mölndal, April 21, 2015

Magnus René, President & CEO

The 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 21, 2015 at 08.30 (CET).

Arcam Group provides cost-efficient Additive Manufacturing solutions for production of metal components. Arcam’s Electron Beam Melting (EBM®) technology offers design freedom combined with excellent material properties and high productivity. Arcam is, through its solution orientation and comprehensive product offering, an innovative partner for advanced manufacturing, primarily for the aerospace and medical industries. Arcam offers EBM systems through Arcam AB in Sweden, powder metals through AP&C in Canada and implant contract manufacturing through DiSanto in the U.S.The company is listed on Nasdaq Stockholm and the Head Office is located in Mölndal, Sweden.

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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: 46 31 710 32 00
alt. cell: 46 702 79 89 99
e-mail: magnus.rene@arcam.com

Contacts

Arcam AB
Magnus René, CEO
Tel: 46 31 710 32 00
alt. cell: 46 702 79 89 99
e-mail: magnus.rene@arcam.com