Interim Report January - September 2001

January – September 2001

- Sales increased 21 percent to 10,105 MSEK (8,337)

- Operating income increased 16 percent to 1,608 MSEK (1,386) 1)

- Profit before tax was 1,411 MSEK (1,277) 1)

- EPS increased to 2.57 (1.97), an increase of 30 percent 1)

- EBITDA increased to 2,095 MSEK (1,785)

- Total shares outstanding as of September 30, 2001 amounted to 357.0 million compared with 358,5 million as of June, 2001

1) before items affecting comparability of 80 MSEK

Swedish Match sales increased by 21 percent, of which acquisitions accounted for 6 percentage points, in the first nine months of 2001 versus the same period last year. Higher currency rates, primarily a higher dollar rate, has effected sales positively by 6 percentage points. Organic sales growth amounted to 9 percent. All product areas exhibited sales gains. Cigars, pipe tobacco, lighters, and snuff show the largest increases.

Primarily cigars, matches, pipe tobacco, and lighters account for the better result. Snuff margins have been impacted by costs of product development and launches of new products, primarily in the US and India. A one-time charge of 80 MSEK for restructuring of cigar operations is included in Items affecting comparability. Operating income before items affecting comparability grew by 16 percent to 1,608 MSEK.

Net financial expenses increased to -197 MSEK (-109) mainly due to the redemption program, repurchase of shares, and acquisitions.

Earnings per share before items affecting comparability, during the first nine months, increased to 2.57 SEK (1.97). Earnings per share during the third quarter increased to 0.88 (0.73).

At the General Meeting of Shareholders on April 24, 2001 a prolonging of the mandate to repurchase up to 10 percent of the total amount of outstanding shares was resolved. It was also resolved that the share capital be reduced by 36 MSEK through the cancellation of 15,000,000 shares. The reduction of the share capital of the company was registered in October.