Work of the board of directors

The duties of the Board of Directors are primarily set forth in the Companies Act and the Code, the latter of which will be applicable to the Company after the listing of the Shares on Nasdaq Stockholm.

In addition to this, the work of the Board is guided by formal rules of procedure that the Board adopts every year. The work plan governs the division of work and responsibility among the Board, its Chairman and the CEO and specifies financial reporting procedures for the CEO. The Board also adopts policies for the Board committees.

The Board of Directors’ tasks include adopting strategies, business plans and targets, interim reports, year-end financial statements and setting policies and guidelines. The Board of Directors is also required to follow economic developments and ensure the quality of financial reporting and internal controls and evaluate operations on the basis of the objectives and guidelines set by the Board of Directors. Finally, the Board of Directors decides on major investments and changes in the organisation and activities of the Company.

The Chairman of the Board of Directors shall, in close collaboration with the CEO, monitor the Company’s performance and chair Board meetings. The Chairman is also responsible for ensuring that the Board of Directors evaluates its work each year and always receives the information necessary to perform its work effectively.