Arcam: Interim Report January – September 2014

Regulatory News:

A new Arcam (STO:ARCM) takes shape

· Net sales increased by 52% to 201.8 (132.5) MSEK

· Operating income amounted to SEK 6.5 (7.6) MSEK (including non-recurring costs of approximately 9 (3) MSEK)

· Net income increased to 42.1 (7.8) MSEK (including tax effects of approximately 23 MSEK)

· Earnings per share increased to 2.29 (0.49) SEK

· Order intake increased to 21 (17) systems

· 20 (15) EBM systems were delivered during the period

· Acquisition of the metal powder manufacturer AP&C in Canada

· Acquisition of the contract manufacturer DiSanto Technology Inc.

For the third quarter:

· Sales increased by 125% to 90.8 (40.4) MSEK

· Operating income amounted to 10.3 (0.6) MSEK (including non-recurring costs of approximately 3 (0) MSEK)

· Net income increased to 38.2 (0.2) MSEK (including tax effects of approximately 23 MSEK)

· Order intake amounted to 5 (4) systems

· 9 (5) EBM systems were delivered in the third quarter

· Acquisition of the contract manufacturer DiSanto Technology Inc.

Significant events after the end of September:

· Order for 3 EBM systems

During the past twelve months Arcam has changed significantly. While sales of our EBM systems continue to increase, we have expanded our business with the metal powder manufacturer AP&C in Canada and the contract manufacturer DiSanto in the US. 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.

Trailing twelve months sales amounts to 268.7 MSEK and operating profit amounts to 13.4 MSEK. The operating profit includes non-recurring costs associated with the acquisition of AP&C and DiSanto of about 10.4 MSEK.

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.

Acquisition of DiSanto Technology

In September Arcam acquired DiSanto, a strategic partner since February 2013. The acquisition combines Arcam’s cutting-edge Additive Manufacturing technology with DiSanto’s full-service contract manufacturing services for orthopedic implants. Through DiSanto we offer manufacturing of advanced EBM-based implants and other components.

The combination of Arcam’s EBM technology and DiSanto´s know-how in orthopedic implant manufacturing will accelerate the market adoption of Additive Manufacturing in the implant industry.

DiSanto is a fully equipped and certified production facility for the production of finished orthopedic implants with approximately 100 employees. The acquisition was finalized on September 2, 2014 and DiSanto is consolidated from this date.

Through these acquisitions we now have a broad offering for our customers; metal powders through AP&C, acquired earlier this year, EBM systems and services through Arcam AB and contract manufacturing through DiSanto. The acquisition is thus in line with our growth strategy, and complements our technology and product portfolio.

Business status

We received 21 new orders in the period and we see a continued strong demand, particularly from the aerospace industry. Order intake for our new large system, Arcam Q20, is strong.

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. Of the 20 systems that were delivered during the period the majority went to customers within the medical implant or the aerospace industry.

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 acquisitions

In addition to the acquisition of AP&C and DiSanto 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 and the support organization in Sweden. Through the acquisition of AP&C and DiSanto and through recruitment the number of employees has increased from 64 to 233 since September 2013. We will maintain an ambitious recruitment pace in order to further develop our technology and offering and thus exploiting the present business situation.

A strong order book and a positive business situation lay a solid foundation for a strong closing of 2014 and continued growth in 2015.

Mölndal, October 17, 2014

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 October 17, 2014 at 08.30 (CET).

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

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