Full Year Report January – December 2020

Strong finish to the year with top-line growth across all product segments

• Record sales and operating profit for the year driven by strong traction for ZYN nicotine pouches in the US. Double-digit operating profit growth in local currencies for the Smokefree and Cigar product segments in both the full year and the fourth quarter.
• COVID-19 related effects are estimated to have elevated sales and operating profit for the full year as well as in the fourth quarter.
• In local currencies, sales increased by 15 percent for the fourth quarter and by 17 percent for the full year. Reported sales increased by 5 percent to 4,136 MSEK (3,933) for the fourth quarter and by 13 percent to 16,698 MSEK (14,739) for the full year despite significant strengthening of the Swedish krona during the year versus the US dollar, the Norwegian krona and the Brazilian real.
• In local currencies, operating profit from product segments¹⁾ increased by 23 percent for the fourth quarter and by 28 percent for the full year. Reported operating profit from product segments increased by 12 percent to 1,695 MSEK (1,520) for the fourth quarter and by 23 percent to 7,160 MSEK (5,812) for the full year.
• Operating profit amounted to 1,650 MSEK (1,098) for the fourth quarter and to 6,991 MSEK (5,307) for the full year. The fourth quarter of 2019 included a non-cash impairment charge of 367 MSEK related to the European chewing tobacco business.
• Profit after tax amounted to 1,244 MSEK (756) for the fourth quarter and to 4,888 MSEK (3,896) for the full year. The full year 2020 includes a charge of 286 MSEK following an adverse ruling in a tax case.
• Adjusted earnings per share increased by 15 percent to 7.82 SEK (6.81) for the fourth quarter and by 27 percent to 32.16 SEK (25.41) for the full year. Earnings per share amounted to 7.82 SEK (4.62) for the fourth quarter and to 30.38 SEK (23.22) for the full year.
• The Board proposes an increased dividend of 15.00 SEK per share. The Board also proposes a 10:1 split of the Swedish Match share.
• The outlook for 2021 can be found on page 14.

1) Excludes Other operations and larger one-time items.

For the full report: www.swedishmatch.com/Investors/Financial-reports/Interim-reports/

Swedish Match telephone conference
A telephone conference will be held today, Wednesday, February 10 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, Anders Larsson, and Emmett Harrison.

Listen to the telephone conference: www.swedishmatch.com/Investors/Presentations/Webcasts-and-audiocasts/

Telephone conference presentation: www.swedishmatch.com/Investors/Presentations/

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Contacts:

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

Anders Larsson, Chief Financial Officer and Senior Vice President Group Finance
Office +46 10 139 3006

Emmett Harrison, Senior Vice President Investor Relations
Office +46 70 938 0173

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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 10, 2021.
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Swedish Match develops, manufactures, and sells quality products with market-leading brands in the product segments Smokefree, Cigars, and Lights. Production is located in seven 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, ZYN, Game, Red Man, Fiat Lux, and Cricket.

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Swedish Match AB (publ), SE-118 85 Stockholm, Sweden
Visiting address: Sveavägen 44, 8^th Floor. Telephone: +46 10 13 93 000
Corporate Identity Number: 556015-0756
swedishmatch.com

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