Strategic Review for Morphic Fuel Cells

Strategic Review for Morphic Fuel Cells

As part of its ongoing efforts to focus its on core operations, the Board of
Directors and group management of Morphic Technologies are reviewing the
strategy for Morphic Fuel Cells. This work will lead to a number of changes.
Greater emphasis will be placed on market-driven product planning, and the
subsidiaries will be given clearer responsibilities. To further strengthen
Morphic's expertise in the area, a Scientific and Industrial Advisory Council
has also been established.  In addition to the CEO, the Council will consist of
the following individuals: Professor Lars Sjunneson, E.ON, Professor Peter
Lindblad, Uppsala University, Professor Bengt-Erik Melander, Chalmers, Professor
Martin Rudberg, Linköping University and Director Birger Flygare.

The biggest change compared with today concerns the Group's work on products and
technology platforms. The revised strategy stresses the importance of ensuring
that there is a clear thread running from market needs through product planning
and product development to industrialization and delivery. All product
development will be based on clear goals formulated in a technical roadmap and
result in products that meet identified market needs. 

In concrete terms, this will require a series of changes in the Group's approach
to product development. To improve efficiency, the activities of Helbio (which
operates in fuel conversion) will be focused on its core business, and the
company will become the Group's technology center for catalytic converter and
reformer technology. Helbio's core expertise is also applicable to AccaGen's
products (electrolyzers). The affiliated company Exergy will take over
responsibility for the industrialization and manufacture of Helbio's products. 

Exergy Fuel Cells' operations will be focused on the manufacture of complete
fuel cell stacks and integration of fuel converters. 

The activities of the subsidiary company AccaGen will be reviewed. The company
will become a technology center and production of electrolyzers and other
components for energy storage may be subject for outsourcing.

To cut down the time to market, a common sales organization has been created
that will market all Morphic Fuel Cells products. The organization will serve as
the point of contact with customers in all segments. 

“The new structure clarifies the various roles in the Group while placing a
stronger emphasis on marketing and sales. We will remain at the forefront in the
development of new products, but we will do so in a more efficient way.
Establishing a clearer division between our development and sales activities
will enable us to generate stronger earnings,” Martin Valfridsson, CEO of
Morphic Technologies AB, says. 

Scientific and Industrial Council
To further strengthen Morphic's expertise in the area, a Scientific and
Industrial Advisory Council has been established. The council's tasks will be to
provide advice in connection with product development in the Group and to
present proposals for guidelines governing the Group's long-term activities
going forward. In addition to the CEO, the Council will consist of the following
individuals:

• Professor Lars Sjunnesson, E.ON
Lars Sjunnesson is Head of Research and Development at the energy company E.ON,
Visiting Professor of Energy Sciences at the Faculty of Engineering at Lund
University since 1997 and an Honorary Doctor at the Budapest University of
Technology and Economics since 2009. He is also Chairman of Hydrogen Sweden, the
European Hydrogen Association and the Executive Committee of IEA Advanced Fuel
Cells. On top of this, he is a member of the boards of Elforsk, Svenskt
Gastekniskt Center, PATH (Partnership for Advancing the Transition to Hydrogen)
and WEC Studies Committee, IEA Expert Group on Science for Energy, European
Commission Joint Undertaking FCH Scientific Committee.

• Professor Peter Lindblad, Uppsala University
Peter Lindblad is Professor of Photochemistry and Molecular Science at Uppsala
University. Since the 1990s his research has focused on the production of
hydrogen from cyanobacteria, or blue-green algae. He is Assistant Coordinator
for Solar H2, the biggest project in this field of research worldwide, and
combines his research with assignments for the Swedish Energy Authority and the
International Energy Agency (IEA), always with a focus on hydrogen.

• Professor Bengt-Erik Melander, Chalmers 
Bengt-Erik Melander is Assistant Professor of Engineering Physics at Chalmers
University of Technology, where his research focuses on fuel cells. He has taken
a particular interest in research into ion transport and diffusion in condensed
materials. The research covers a large variety of electrical and thermal
characterization methods, primarily for electrolytes in solid and liquid form,
as well as also insulator materials. Ion transport is a highly complex process
that plays an important role in many natural and biological processes, and that
can also be exploited in wide variety of applications: fuel cells, rechargeable
batteries, gas sensors, supercapacitors, etc.

• Professor Martin Rudberg, Linköping University 
Martin Rudberg is a professor at Linköping University and Associate Professor of
Production Economics. His primary research focus is on production strategy and
production planning, and he is currently leading a project focusing on how
advanced planning systems (APS) can be employed to improve the efficiency of
supply chain management. He is Head of Research at the Center for Process
Manufacturing and Acting Director of the Center for Production Strategy, and
runs his own consulting firm focusing on training and business development in
production logistics.

• Director Birger Flygare
Birger Flygare has worked in the automotive, aerospace/defense, IT and telecom
industries for over 45 years and on five continents. Over the last 35 years he
has held senior positions at Saab-Scania, Allied Chemical, General Electric,
English General Electric/Marconi, FFV Aerotech, Ericsson and Telia, and has also
served as advisor for product and venture capital firms in Sweden, Europe and
the United States. In recent years he has also devoted a lot of time to energy
issues, giving many presentations at international symposia. 

The Scientific and Industrial Council will evaluate the technical roadmap and
product planning based on expected market needs and profitability potential.

Developing the Organization 
To improve flexibility, speed up decision-making and streamline the process for
achieving the Group's operational targets, senior management will be reduced to
comprise only three functions: the CEO, CFO and Corporate Strategy / IR. Other
senior executives will form part of the management team for the parent company,
and all members of management will meet for strategy meetings four times a year.
In the intervening periods the Director of Market Development and Chief
Operating Officer will report to senior management on regular basis.

For further information, please contact:
Martin Valfridsson, +46 (0)70 556 30 09
Johannes Falk, +46 (0)706 76 7393

This is Morphic
Morphic is a Swedish engineering group operating in the areas of fuels cells and
wind power. The Group has about 200 employees and conducts operations in six
countries - Sweden, Norway, Japan, Greece, Italy and Switzerland. Morphic
Technologies' B shares have been listed on the OMX Nordic Exchange since March
4, 2008, and the number of shareholders is about 30.500.