Risk Factors

Morphic is an international group and is therefore exposed to various risks in its day-to-day operations. Operational risks are managed primarily at subsidiary company level. The Group functions – HR, Communica­tion, IT, Purchasing, Finance and Business Development – manage and coordinate risks in their respective areas. The management and coordination of financial and insurable risks is primarily handled by the Finance function.

The purpose of the following description of the risk situ­ation is partly to provide a picture of the risk environment in which Morphic Technologies operates and partly to show how the Company works to minimize the negative effects of the risks. The risks are not listed in order of importance and the description does not purport to be complete.

Developing new products in entirely or partly new mar­kets is always associated with risks, both internal and external. The internal challenges include organization-building, the ability to choose the right production and marketing strategy and the ability to manage growth. The most significant external risks include the risk of a general delay in the market introduction of fuel cells and a risk of subcontractors not having sufficient capacity and being unable to deliver. There are also risks related to the liquid­ity of trading in the Company’s shares. On top of this, there are also risks associated with the funding of the business.