Interim report January – March 2014


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=9B56BCCA7BBBB5AD6F3
4 
7F6B395EE002

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).
For further information please contact:
Magnus René, CEO Arcam AB
Tel: 0046 31 710 32 00, alt. cell: 0046 702 79 89 99 or e-mail:
magnus.rene@arcam.com
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

Attachments

04177657.pdf