Training Presentation

1. Training Presentation 2011

2. Introducing Morsø

3. Sections • Intro • History • Why Morsø? • Features and Benefits • Product Overview

4. History

5. History 1853 – Danish entrepreneur N.A. Christensen opens a foundry on the Island of Mors. In the beginning the foundry produced agricultural tools, pots and pans, cookers and other kinds of cast iron products. 1903 – In gratitude for loyal service N.A Christensen builds an ‘old peoples’ home for retired or widowed foundry workers. 1914 – Morsø starts to focus stove design and throughout the first half of the 20th-Century the factory develops a range of revolutionary products specifically for use in churches, schools and public offices. Morsø also pioneers the convection principle. 1915 – In recognition of ethical business practice and service to King Christian X, Morsø is granted the title “Purveyor to the Royal Danish Court”; the title changed in 1969 to “By Appointment to the Royal Danish Court”. 1930 – The squirrel motif, designed by Sculptor Constantin Sørensen adorns the so-called Squirrel Stove. The emblem was to become a permanent part of the future brand identity. 1950 –Morsø moves focus to solely producing cast-iron stoves.

6. History in Animation

7. Recent History 1973 – The world oil crisis creates a renewed interest in wood burning as an alternative fuel. Morsø embarks on a program of New Product Design that includes innovative features like air-washed ceramic glass windows and higher efficiency and more controllability. Morsø enters the US market for the first time, 1993 – Morsø streamlines the business and modernizes production. More focus is given to R & D, Sales and Marketing 2000 – Morsø re-enters the US market through distribution after a 16-year absence 2007 – Morsø US LLC subsidiary buys warehouse facility in Portland TN

8. In 1993 Morsø Jernstøberi A/S goes through the biggest change in its history. • Foundry was closed and enameling plant sold off • All primary cast iron production was to be outsourced to sub-supplier Valdemir Birn A/S • Morsø factory continued with craftsmen built assembly • Increased focus on innovation, sales and marketing • Company profits soared

9. Statistics Speak! • Today Morsø Jernstøberi A/S is a healthy business. (New record in 2009) • Increasing oil prices create growing demand for alternative heating sources. • The growing wealth in society creates interest for high quality brands. • The continuing work of R & D has created more consumer ‘desirability’.

10. Market Share in Denmark • 30% of all stoves currently SOLD in Denmark are MORSØ...

11. Total Market Share in Denmark • 70% of all stoves INSTALLED in Danish homes are MORSØ...

12. Outside Designers • World-renowned designers such as Kaare Klint, Bernadotte, Knud Holscher and Monica Ritterband have all played a crucial part in the Morsø evolution. • Morsø has achieved worldwide fame for its unique design style and outstanding cast iron quality. • “The BMW of wood burning stoves”.

13. Product History

14. Markets • Sell into 27 Markets • Export sales have continued to grow over the past 5 years. • Export accounts 60% of the total sales. • Morsø has subsidiaries in UK and USA. • USA, Canada & Japan are seen as the most important development markets. • Company wide support!!!!

15. Morsø Jernstøberi A/S

16. Morsø US LLC • After 16 year gap Morsø re-enters the US market in 2001 • Subsidiary Company Morsø US LLC established on Jan 1st 2007 in TN • Warehousing in TN & VT

17. Why Morsø? • Quality never goes out of fashion... • A stable brand with 158 year heritage • Model choices (radiant/convection, modern/classic, freestanding/insert) • Cast iron has soul, durability and fine product design characteristics • Scandinavian Design – Quality – Function • Simply designed - Simply built – Simple to use • Worldwide approvals - EPA, EN, SINTEF, NS • Environmentally Friendly Non-Catalytic Combustion • 10 years Manufacturers Warranty • By Appointment to The Royal Danish Court • Nordic Swan Eco-Label

18. Why Morsø?

19. Nordic Swan Eco Label • Independent approval given to select Scandinavian companies • Awarded to Morsø in 2006 • 30 Models • High efficiency testing - minimum 73% • Low particle emissions testing – maximum 5 grams/kg • Environmentally conscious production practices • Use of recycled materials in product and packaging • Reduced ‘Carbon Footprint’

20. Green Is A Way of Life

22. Local Warming not Global Warming • Wood is renewable energy and we do, in the western world, plant more trees than we cut down. • Wood is CO2-neutral energy - when burnt down, wood releases the same amount of CO2 as absorbed when trees are growing.

23. Features & Benefits

24. In The Foundry

25. Why Cast Iron? • Made to quality code: GG150 (for heat related applications) • Perfect for material for heat dissipation • Even and comfortable heat • Strength, durability and thermal conductivity • Structural stability (stoves, brake discs, cooking plates) • Thin wall castings • Greater freedom for artistic design • Made from 98% recycled material • Fact: Melting Point of iron is 1538 °C (2800 °F)

26. Test: Steel Plate vs Cast Iron • 2 plates of typical stove thickness, one steel plate (3.1 mm) and one cast iron plate, 5.5 mm were placed into a sand box. • A block of cast iron heated to 1000°C (1835°F) was then placed on top of each of the two plates and the temperature measured at the corners of each plate. • After 5 min the cast iron block was removed. • 10 minutes after the block was removed, the corner temperatures were again measured. Result: • The steel plate experienced a deformity of 2.8 mm after it had cooled. • The cast iron plate showed no deformity!! Purple: steel plate / Blue: cast iron / Vertical axis: temp. / Horizontal axis: time in min.

27. The Facts of Cast Iron Thermal Tension Thermal Tension is how well the material can withstand varying temperature variations. The less tension or stress, the better the durability. Steel plate has 2.6 times higher Thermal Tension than cast iron. Chrome Iron Morsø internal parts (baffles, grates) have chromium 0,75 % added. Increased carbon particles within the structure allows the metal to stretch more with the heat thus increasing the lifespan of the part. Thermal Conductivity Demonstrates how well heat is distributed across the metal surface; the higher the conductivity the more even the heat distribution. The thermal conductivity of cast iron is 3 times higher than that of steel plate. A stove with an even heat distribution is more comfortable and pleasant to sit in front of.

28. Construction • Morsø uses approx 3000 tons of recycled scrap metal per year. • All cast iron parts undergo very tough quality controls both at the foundry and again prior to assembly at Morsø. • All stoves are constructed by hand, joining together cast plates with screws and bolts. • Every joint has a rope-gasket, for a flexible airtight seal (unlike furnace cement that cracks in time). • Replacement parts come ready fitted with the rope-gasket.

29. Vermiculite Liners The combustion chamber (firebox) is lined with Vermiculite a natural mineral that expands with the application of heat; it is perfect for high efficiency combustion applications. • Max. service temperature: Up to 1150°C (2102°F) • Hot-face applications or back-up insulation of all refractory construction. • Excellent insulating value (1” vermiculite = 3” refractory brick) • Excellent thermal shock resistance. • Can be used in furnaces with reducing atmospheres due to their high resistance to carbon monoxide and hydrocarbons. • A variety of uses in high-temperature kilns and furnaces, combustion plants, boilers as well as in hearth and heating appliances.

30. Transparent Ceramic Glass Transparent Ceramic Glass • Heat resistance up to 700°C (1300°F) • Low expansion (+/- 0.3 10-6 K-1 at 700°C), can support any thermal shock such as the spilling of cold water. • Amber tint and very good transmission of visible light and infra red radiation are perfect to create a nice, warm and safe atmosphere in front of your stove.

31. Heat Resistant Paint Heat Resistant Paint • The outer surface is painted using German paint Senotherm. • High temperature paint resistant to 900°F; it is electro-statically applied for an even surface coverage.

32. Quality Assurance Compression Testing • Every 1 in 20 stoves are taken for test. • Pressurised to check air-tightness tolerance. • Long lasting controllability for the homeowner.

33. Packaging and Dispatch All stoves are packed in high strength 100% recycled packaging and then banded to pallet. Wooden Corner Posts for extra strength Most units are stackable to 3 high Morsø carefully selects transport companies. To reduce single stove shipments, Morsø offers a quantity based freight program

34. Convection Principle Pioneered by Morsø in early 1900s, convection stoves convert direct radiant ‘heat’ into a comfortable, cozy ‘warmth’. • Whole space heat distribution. • Installs closer to combustible surfaces • Children safe – outer temperature is lower

35. Non Catalytic Combustion System • Pioneered by Morsø in 1990. • Incorporates Primary, Secondary and Tertiary air supplies. • Secondary combustion (the burning of volatile gases) takes place inside the firebox thus reducing emissions as well as clearances around the stove. • Fewer working parts for simple use and low maintenance.

37. Fuel • A good stove needs good fuel. • No more than 18% moisture content. • Wood has to be cut, split and stored under cover for at least one year. • Hardwoods are preferable: birch, beech or oak. • With care, wood briquettes can be used. • Some models can use Anthracite coal

38. Lighting a Fire Preparations • 2 kindling bags (or 5-10 rolled up newspaper pages) • 2-4lbs of dry kindling • 4lbs of split logs (Never use driftwood or impregnated wood or plywood) All air intakes should be fully opened and the glass cleaned prior to lighting. For the best combustion leave 1” deep bed of ash on the bottom grate. Always us the “Top-down Method”

39. Top-Down Method As shown in the picture above you need the following: 2 fire lighters (or 5-10 scrunched-up sheets of newspaper), 1 kg of dry kindling, Approx. 1-1.5 kg of chopped firewood. 2-3 cm of ashes is a suitable base for the wood. Open the air supply up fully. Place approximately 1 kilogram of dry kindling wood on top of the logs. Place a couple of kindling bags just below the top layer of kindling wood. After 5-10 min. heat will make draught through the chimney and the door is closed. After another 10-20 min. a layer of embers has formed in the fire box. Use a poker to spread the embers and add more wood. Put larger logs on the kindling with approx. 1 cm between the logs. Finally, adjust the air supply control to the required position to give optimal combustion. Maintaining a good fire box temperature will ensure secondary combustion of the smoke and gases giving a clean and efficient burn. The stove should be refueled before only glowing will remain.

40. Let’s look at the Products!