Arcam: Year-End Report 2014

Regulatory News:

Arcam AB: (STO:ARCM)

Strong growth and strategic acquisitions

· Net sales increased by 70% to 339.0 (199.4) MSEK

· Operating income increased to SEK 19.6 (14.5) MSEK (including non-recurring costs of approximately 9.3 (5) MSEK)

· Net income increased to 57.1 (15.4) MSEK (including tax effects of approximately 15.8 MSEK)

· Earnings per share increased to 3.10 (0.96) SEK

· 35 (25) EBM systems were delivered during the period

· Order intake increased to 42 (27) systems

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

· Acquisition of the contract manufacturer DiSanto Technology Inc.

For the fourth quarter:

· Sales increased by 105% to 137.1 (66.9) MSEK

· Operating income increased to 13.2 (6.9) MSEK

· Net income increased to 15.0 (7.6) MSEK

· Order intake increased to 21 (10) systems

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

Significant events after the end of the period:

· Order for 5 new EBM systems in January 2015

Strong growth and strategic acquisitions

2014 was another eventful year for Arcam and during the past twelve months Arcam has developed significantly. While sales of our EBM systems continue to increase, we have also 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 revenue.

After a strong fourth quarter, we closed the year with a turnover of almost 339 MSEK and an operating income of 19.6 MSEK. Sales increased by more than 70% and operating income increased by 35%. The operating profit includes non-recurring costs associated with the acquisition of AP&C and DiSanto of about 9.3 MSEK. Acquisition of AP&C

In February 2014 we acquired the metal 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 2014 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.

During the year we have expanded our operations at DiSanto with a newly built facility for the production of EBM based implants.

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

During the year we received 42 new system orders, an increase by over 50% compared to the previous year. We see a continued strong demand, particularly from the aerospace industry and order intake for our new large system, the Arcam Q20, is strong. We enter 2015 with an order book of 19 systems.

The Asian market continues to grow and over one third of the order intake in 2014 comes from Asia.

The work to industrialize our technology with the major players within the aerospace and implant industries continue and we can see good business opportunities forward. Of the 35 systems that were delivered during the period the majority went to customers within the medical implant or the aerospace industry.

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 year we have strengthened our service office in China and the support and sales organization in Sweden. We also have strengthened our Key Account organization and appointed a Chief Operating Officer (COO) for the EBM business. We will maintain an ambitious recruitment pace in order to further develop our technology and offering and thus exploiting the present business situation.

A stable order book, stable finances and a positive business situation lay a solid foundation for a continued strong growth in 2015.

Mölndal, February 5, 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 February 5, 2015 at 14.00 (CET).

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

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