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Corporate governance

The corporate governance of Arjo is based on Swedish legislation, Arjo’s Articles of Association, the Swedish Code of Corporate Governance (the “Code”) and Nasdaq
Stockholm’s Rule Book for Issuers as well as other relevant regulations and recommendations.

The Code is based on the “comply or explain” principle, meaning that companies are not obliged to at all times apply every rule in the Code, but are allowed the freedom to choose alternative solutions which they find more suitable with regard to the Company’s particular circumstances, provided they report every deviation, describe the alternative solution and explain the reasons for the deviation. Deviations from the Code will be reported in the Company’s annual corporate governance reports.