Interim report January

Strong order intake

  · Net sales increased by 21 % to 111.0 (92.1) MSEK
  · Net profit amounted to 3.9 (7.6) MSEK
(including non-recurring costs associated with the acquisition of AP&C of
6 MSEK)
  · Earnings per share amounted to 0.21 (0.48) MSEK
  · Cash at the end of the period 377.1 (166.7) MSEK
  · Order intake amounted to 16 (13) systems, and (11) systems were delivered in
the period.
  · The order book contained 16 (13) systems by the end of the period
  · The acquisition of the metal powder manufacturer AP&C was completed on
February 11.

For the second quarter:

  · Net sales amounted to 46.1 (54.0) MSEK
  · Net profit amounted to 0.4 (7.5)  MSEK
  · Order intake amounted to 10 (7) systems
  · 4 (7) EBM systems were delivered in the second quarter

In the first 6 months we report a 21% increase in sales. Trailing twelve month
sales amounts to 218.3 MSEK and earnings amount to 11.7 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 16
systems and the order book as of today comprises 17 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.

Business status

We received 10 new orders during the quarter and we see a continued strong
demand, particularly from the aerospace industry. The sales of our new large
system, Arcam Q20, gains momentum and we have received 8 system orders.
In June we launched Inconel 718® as a qualified material for use in Arcam’s EBM
systems.

With the introduction of the Inconel 718 our customers in the aerospace industry
can now further expand the range of components that they produce in their EBM
machines.

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 the11 systems that were delivered
during the first quarter the majority went to customers within the orthopedic
implant or the aerospace industry.

The cooperation with DiSanto is progressing and DiSanto ordered two new Arcam
Q10 systems to meet the demand for finished EBM products.

In the beginning of July we acquired our agent in the UK. We already have a
support operation in the UK and with this new step we take responsibility for
direct sales and support on the important UK market.

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 period we have strengthened our service office in
China, the support organization in Sweden and the sales organization. Through
the acquisition of AP&C and through recruitment the number of employees has
increased from 55 to 113 since June 2013. We will maintain an ambitious
recruitment pace in order to further develop our technology and offering and
thus exploiting the present business situation.

An order book of 17 systems, increasing aftermarket sales and a positive
business situation lays a solid foundation for a continued growth in 2014.

Mölndal, July 18, 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 July 18, 2014 July 18, 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
Interim report January – June 2014

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