Internal monitoring report

Under the Companies Act and the Swedish Code of Corporate Governance, the Board is responsible for internal monitoring of the company. The report is prepared in accordance with the code and is thereby limited to monitoring financial reporting.

Monitoring Structure

The Board’s rules of procedure and instructions for the CEO specify a clear division of roles and responsibility to promote effective internal monitoring and risk management. The ongoing effort to maintain effective internal monitoring is delegated to the CEO, who in turn delegates function specific responsibilities to managers at the various levels of the group. The group’s internal monitoring procedures are based on the company’s quality and management system (PIMS), which contains process descriptions, along with instructions for procedures, attestations, authorizations, etc. Financial reporting and management, which proceed from well-defined guidelines and policies, are fully supported by suitable IT systems.

Risk Assessment and Monitoring

Risk assessment includes identification, analysis and evaluation. Risks are identified at both the group and subsidiary level. Activities to prepare internal monitoring and thereby prevent and detect risks are conducted on a continual basis. The activities include manual checks, regular reporting and verifications built into the IT and business system. An annual survey evaluates all subsidiaries within the various areas included. The evaluation leads to follow-up and activities for each subsidiary in order to ensure steady improvement of financial monitoring. Monthly performance monitoring per legal unit through the internal reporting system is another vital activity on which internal board work comments and reports. Performance monitoring includes comparison with previously established targets and key ratios. PartnerTech has no separate internal auditing function. The company has not identified any special circumstances in or outside of the company that would call for such a function.

Information and Communication

Significant guidelines, manuals and the like that affect financial reporting are continually reviewed and communicated to group employees concerned on an ongoing basis. Employees have a number of channels through which they can communicate important information to group management and the Board. An annual financial conference is held to ensure the sharing of skills and experience among the various functions. The Board regularly meets with representatives of central functions, while the CEO and CFO keep the Board up to date about the group’s financial position, performance and any areas of risk. PartnerTech follows the guidelines for external information that apply to companies listed in Sweden, as well as the Swedish Code of Corporate Governance.