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.