Internal control over financial reporting
Control environment
Internal control at Industrivärden is primarily designed to ensure a correct valuation of outstanding equity positions as well as effective and reliable controls in the reporting of purchases and sales of shares and other securities.
Industrivärden’s control environment is based on a clear division of duties and responsibilities between the Company’s various bodies and functions, a sound company culture and transparent operations. Relevant policies and guidelines are decided on and evaluated on a continuing basis by the Company’s board and management. These frameworks, together with internal, formal process descriptions, are well-established and known by the pertinent employees.
Relevant governance documents adopted by the Board of Directors include the CEO’s instruction, which stipulates the division of responsibility between the Board and the CEO, and the Investment and Finance Policy, which lays out the frameworks for investments in financial instruments, financing and management of financial risks.
Decision-making channels, authority and responsibility at the operational level are defined in more detail by the CEO in investment rules, the Risk Policy and authorization instructions. Other frameworks for internal control include the Code of Conduct, the Insider Policy and the IT Policy.
Risk assessment
Industrivärden continuously identifies, assesses and manages risks for material errors in the financial reporting. This process is fundamental for ensuring financial reporting reliability. The Company’s assessments and measures are reported on a regular basis to the Audit Committee.
Control activities
Industrivärden has established a number of different control activities aimed at ensuring the effectiveness of the measures taken to prevent material errors in the financial reporting. Relevant control and monitoring activities are an integral part of Industrivärden’s business, decision-making and accounting processes.
The Board of Directors continuously evaluates the financial reporting received in connection with board meetings covering the equities portfolio, gearing and other important conditions. The Audit Committee carries on a continuous dialogue with the Company’s auditor on the scope and quality of the Company’s financial reporting.
In view of Industrivärden’s operations, organizational structure and the manner in which financial reporting is otherwise organized, the board did not find a special audit function in the form of internal audit to be necessary in 2025.
Information disclosure
Industrivärden’s external disclosure of information is regulated by an Information Policy adopted by the Company’s board. Internal guidelines are also in place to ensure information security as well as accurate and reliable information disclosure.
Monitoring
Industrivärden’s board and management continuously evaluate the effectiveness and quality of internal control over financial reporting. Management reports on the Company’s operational and financial development to the Board on a regular basis in connection with forthcoming interim reporting, and board and Audit Committee meetings. Between suchoccasions, reporting is conducted as needed. The Company’s auditor reports its observations to the Audit Committee on a continuing basis.
