Audit Committee

The Audit Committee complies with established rules of procedure which are adopted annually by the Board of Directors. The chairman of the Audit Committee is responsible for ensuring that the entire board as is kept regularly informed as to the work of the committee and, where necessary, shall submit matters to the Board for a decision. The main duties of the Audit Committee are to support the Board in the work of ensuring the quality of the financial reporting. The committee regularly meets the Company’s auditors, evaluates the audit work and approves the additional services that the Company may procure from the external auditors. There is an established risk management process in the Company which is based and structured on processes and flows in production. In this process, the Audit Committee reviews and takes into account the risks that have arisen (both commercial risks and risks of errors in the financial reporting). Based on the result of the internal and external risk assessment, the committee regularly discusses the focus and scope of the audit with the Company’s internal and external auditors.

Each year, the Audit Committee adopts an internal audit plan which, among other things, is based on the risks that have arisen in the above risk management process. The audit plan is discussed with the external auditors in order to enhance the efficiency and quality of the regular audit work. The committee also discusses significant accounting issues which affect the Group and assists the Nomination Committee in producing proposals as regards auditors and their fees.

In 2007, the Audit Committee continued to work on developing and improving the presentation of the external financial reporting. Among other things, an operational cash flow model was developed and approved. The Audit Committee has, together with the external auditors, reviewed and discussed the risk analysis and audit plan prepared by the auditors as a basis for the statutory audit.

The Audit Committee’s members have been Anders G Carlberg (Chairman), Sverker Martin-Löf and Marianne Nivert. Two of the Committee’s members are independent in relation to the Company’s major shareholders.

In 2007, the Audit Committee held six meetings at which minutes were taken, at which all members were present.