Interim report January – March 2015

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/EventLobbySer
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let?target=registration.jsp&eventid=973636&sessionid=1&key=DFC0122ECF84ED9122385
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A1AB2DB061&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).
For further information please contact:
Magnus René, CEO Arcam AB
Tel: 46 31 710 32 00, alt. cell: 46 702 79 89 99, or e-mail:
magnus.rene@arcam.com
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