Interim report January – March 2016

Continued growth

  · Net sales increased by 43% to 159.9 (111.4) MSEK
  · Operating income increased to 8.9 (3.8) MSEK
  · Net income increased to 8.3 (4.3) MSEK
  · Earnings per share increased to 0.40 (0.23) SEK
  · 14 (9) EBM systems were delivered during the period
  · Order intake amounted to 6 (10) EBM systems

Continued growth

Arcam continues to grow and during the first quarter the increase in sales was
43%. Sales for the first quarter amounted to 159.9 (111.4) MSEK and trailing
twelve months sales amounts to 624.6 (385.4) MSEK. Operating profit for the
period amounts to 8.9 MSEK and trailing twelve months the operating profit is
55.3 MSEK.
The order intake during the period was 6 (10) EBM systems and the metal powder
manufacturer AP&C doubled its order intake compared to the same period 2015.

We continue to pursue and develop our long-term strategy to industrialize the
EBM technology and simultaneously developing the metal powder manufacturing and
contract manufacturing business. We are making significant investments to
continue to meet our customers’ demands and growing expectations of the EBM
systems' productivity and reliability.

Business status

During the quarter we delivered 14 EBM systems and the majority went to
customers in the implant or the aerospace industry. The demand for EBM systems
is driven by the aerospace industry that is now moving into production, but also
by the increasing interest for Additive Manufacturing from the orthopedic
industry. In the period we received 6 new orders and the order book by the end
of the quarter amounts to 19 systems.

We continue to expand our production capacity at AP&C to serve the fast growing
market for metal powder for additive manufacturing. In the first quarter we took
a decision to invest in three new powder reactors. With this expansion AP&C will
reach a capacity of approximately 500 tons of metal powder per year.

The contract manufacturer DiSanto is growing again after a weak period at the
later part of 2015. During the quarter we have added several new customers to
the EBM part of the contract manufacturing.

A strengthened organization

During the quarter we strengthened our organization throughout the group.
In the beginning of January Alain Dupont assumed the position as president of
the powder manufacturer AP&C. He succeeds Jacques Mallette who has been
President of AP&C since 2011. Jacques continues to be involved as Chairman for
AP&C.
In February Tom Barrett was appointed new president for our contract
manufacturer DiSanto in the USA. Tom, who recently was Chief Commercial Officer
(CCO) of Symmetry Medical, has a broad experience from leading positions within
the implant industry.

With 19 machines in order, a stable aftermarket and a positive business
situation we are positioned for a continued growth in 2016.

Mölndal, Sweden, April 21, 2016

Magnus René, President & CEO
For further information:

Magnus René, CEO and President, Arcam
Cell: +46 702 79 89 99 or +1 781 266 6957
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