THE BOARD’S AUDIT COMMITTEE

The audit committee is to focus on three key areas: nancial reporting, risk management, and internal and external audit [and legal compliance and risk management]. This committee is to be chaired by an independent director and composed of non-executive directors. Its exact authority, composition, working procedures, and other relevant matters are regulated in its charter.

RISK MANAGEMENT
The company places great importance on risk management and it is the board of directors that is tasked with ensuring that appropriate risk management systems are established. Among other things, the board (i) approves risk management procedures and ensures compliance with such procedures; (ii) analyzes, evaluates, and improves the eectiveness of the internal risk management procedures on a regular basis; (iii) develops adequate incentives for the executive bodies, departments, and team members to apply internal control systems; (iv) establishes a risk management committee of the board when necessary; and (v) ensures that Credence complies with legislation and charter provisions.

THE INTERNAL AUDITOR
Credence has an internal auditor that is responsible for the daily internal control of the company’s nances and operations. The internal auditor is staed by a highly respected and reputable person[s], and reports to the audit committee functionally and to the Executive Chairman administratively. The internal auditor’s authority, composition, working procedures and other relevant matters are regulated in its charter.

THE EXTERNAL AUDITOR
An external auditor audits Credence nancial statements. The external auditor is a publicly recognized independent auditing rm, where independent means independence from Credence, its management, and its major shareholders. The remuneration of the auditor is disclosed to shareholders. The external auditor is selected by the general assembly following an open tender and upon the recommendation of the board.

Transparency, and timely and accurate information disclosure, is a key corporate governance principle for Credence.

DISCLOSURE POLICIES AND PRACTICES
Credence discloses and provides easy access to all material information, including the nancial situation, performance, ownership, and the governance structure of the company to shareholders free of charge. The board prepares and approves a policy on information disclosure and makes it publicly available on Credence’s web site. Credence publishes a comprehensive annual report that includes a corporate governance section. Credence discloses its corporate governance practices, corporate events calendar and other material information on its website site in a timely manner.

Credence takes measures to protect condential information as dened in its policy on information disclosure. Any information obtained by Credence team members and the members of the governing bodies may not be used for their personal benefit.