Full Year Report January – December 2016

• Sales increased by 6 percent to 3,957 MSEK (3,719) for the fourth quarter and by 7 percent to 15,551 MSEK (14,486) for the full year. In local currencies, sales increased by 3 percent for the fourth quarter and by 7 percent for the full year.
• Operating profit from product areas1) increased by 5 percent to 954 MSEK (908) for the fourth quarter and by 8 percent to 3,990 MSEK (3,690) for the full year. In local currencies, operating profit from product areas1) was flat for the fourth quarter and increased by 8 percent for the full year.
• Operating profit2) amounted to 954 MSEK (908) for the fourth quarter and to 6,420 MSEK (4,008) for the full year. The operating profit2) for the full year includes larger one-time items of 2,109 MSEK relating to capital gains from the partial divestments of STG and an unrealized gain from revaluing Swedish Match’s remaining holding in STG to market value as well as 145 MSEK related to the sale of a distribution center (prior year included a restructuring provision of 42 MSEK).
• Earnings per share (basic) amounted to 3.61 SEK (3.34) for the fourth quarter and to 27.38 SEK (14.48) for the full year. Earnings per share for the fourth quarter and the full year, excluding STG and adjusted for larger one-time items, amounted 3.61 SEK (3.34) and to 14.39 SEK (12.79), respectively.
• During 2016, Swedish Match distributed the proceeds from the two divestments of shares in STG as two special dividends of 12.00 SEK and 9.50 SEK per share, in total 4,016 MSEK. 
• Following the close of the period Swedish Match reduced its ownership in STG from 18.1 percent to 9.1 percent.
• The Board of Directors proposes a dividend of 16.00 SEK per share consisting of an increased ordinary dividend of 8.50 SEK (8.00) and a special dividend of 7.50 SEK, following Swedish Match’s divestment of shares in STG in January 2017.

1) Operating profit for Swedish Match product areas, which excludes larger one-time items and share of net profit in STG.
2) Operating profit for the Group includes larger one-time items and share of net profit in STG. The full year 2016 only includes Swedish Match’s share of STG’s net profit until the date of partial divestment in September, thereafter, the shareholding in STG has been reclassified as a financial asset. The full year 2015 includes only the first nine months of net profit in STG due to transition to a one quarter lag in Swedish Match’s reporting for STG. Thereby, the fourth quarter in 2016 and 2015 do not include any share of net profit in STG. See Note 3.

For the full report: http://www.swedishmatch.com/investors/

Swedish Match telephone conference
A telephone conference will be held today, Friday, February 17 at 2:00 p.m. (CET), (1:00 p.m. UK time). At this time we will review and comment on the results. Participants will include Lars Dahlgren, Marlene Forsell, and Emmett Harrison.

Listen to the telephone conference live at: http://www.swedishmatch.com/investors/

Replay will be available for 30 days at the link above as well as on telephone number:
UK replay number: +44 20 7031 4064, access code: 961388
US replay number: +1 888 365 0240, access code: 961388
Swedish replay number: +46 8 505 203 33, access code: 961388

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Contacts:

Lars Dahlgren, President and Chief Executive Officer
Office +46 8 658 0441

Marlene Forsell, Senior Vice President and Chief Financial Officer
Office +46 8 658 0489

Emmett Harrison, Senior Vice President Investor Relations and Corporate Sustainability
Office +46 8 658 0173

Richard Flaherty, President US Division, US Investor Relations contact
Office +1 804 787 5130
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This information is information that Swedish Match AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.15 a.m. CET on February 17, 2017.

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Swedish Match develops, manufactures, and sells quality products with market-leading brands in the product areas Snus and moist snuff, Other tobacco products (cigars and chewing tobacco), and Lights (matches, lighters, and complementary products). Production is located in six countries, with sales concentrated in Scandinavia and the US. The Swedish Match share is listed on Nasdaq Stockholm (SWMA).

Swedish Match’s vision is a world without cigarettes. Some of its well-known brands include: General, Longhorn, White Owl, Red Man, Fiat Lux, and Cricket.

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Swedish Match AB (publ), SE-118 85 Stockholm, Sweden
Visiting address: Sveavägen 44, 8th Floor. Telephone: +46 8 658 0200
Corporate Identity Number: 556015-0756
www.swedishmatch.com

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