Swedish Match : Q1 2021

SWEDISH MATCH RESULTS PRESENTATION

Q1 2021

DISCLAIMER AND GENERAL COMMENTS

The information contained in this presentation has not been independently verified and is subject to change without notice and neither Swedish Match, nor an affiliate thereof or any other party is under any obligation to update or keep current the information contained herein. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of Swedish Match or any other party (or any of their respective members, directors, officers, employees or any other person) as to the accuracy, completeness or fairness of the information or opinions contained in this presentation, and any reliance you place on such information or opinions will be at your sole risk. Neither Swedish Match nor any other party (or any of their respective members, directors, officers, employees or any other person) accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising directly or indirectly in connection therewith. By attending a meeting where this presentation is presented, or by reading the presentation, you acknowledge that you will be solely responsible for your own assessment of the potential investment, the market and market position of Swedish Match and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of Swedish Match and its business.

This presentation contains forward-looking information based on the current expectations of the Swedish Match Group's management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably compared to that stated in the forward-looking information, due to such factors as changed market conditions for

Swedish Match's products and more general factors such as business cycles, markets and competition, unforeseen commercial or operational implications attributable

to COVID-19, changes in legal requirements or other political measures, and fluctuations in exchange rates. Swedish Match undertakes no obligation to update such forward-looking statements.

This presentation contains market data and industry forecasts, including information related to the sizes of the markets in which Swedish Match and its subsidiaries participates. The information has been extracted from a number of sources. Unless a specific source is referenced, all market share information/data is based on Swedish Match estimates. Although Swedish Match regards these sources as reliable, the information contained in them has not been independently verified and therefore no assurance can be given that this information is accurate and complete. In addition to the above, certain data in the presentation is also derived from estimates made by Swedish Match. Unless otherwise stated, all comparisons are versus the prior year corresponding period. For US Smokefree and Cigars, comments on financial developments are made in USD. For all other product segments, comments on financial developments are made in SEK unless otherwise specified. References to Scandinavia include Sweden, Norway, Denmark and may include data related to consumption by travelers to those countries. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.

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Q1 - HEADLINE BULLETS

1. Double-digitsales and operating profit growth across all product segments in local currencies.​

1. For the Smokefree product segment, continued momentum for ZYN drove strong US performance and in Scandinavia good underlying development was further enhanced by timing effects on shipments and COVID-19 related channel mix effects.​

1. For Cigars, record volumes, sales and operating profit on the back of strong category growth and improved price mix.​

1. No major operational COVID-19 related disruptions and COVID-19 related effects in aggregate are estimated to have elevated the reported financial performance.

1. In local currencies, sales increased by 23 percent for the first quarter. Reported sales increased by 11 percent to 4,455 MSEK (4,029).

1. In local currencies, operating profit from product segments1) increased by 40 percent for the first quarter. Reported operating profit from product segments increased by 26 percent to 2,092 MSEK (1,659).

1. Operating profit, which includes a settlement income of 300 MSEK related to a previously ongoing arbitration concerning nicotine pouches, amounted to 2,354 MSEK (1,601) for the first quarter.

1. Profit after tax amounted to 1,780 MSEK (1,168) for the first quarter.

1. Earnings per share increased by 57 percent to 11.25 SEK (7.18) for the first quarter. Adjusted earnings per share2) increased by 36 percent to 9.74 SEK (7.18) for the first quarter.

1. Excluding Other operations and larger one-time items.
2. Excludes larger one-time items net of tax.

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SALES AND EBIT SPLIT BY PRODUCT SEGMENT

Sales and EBIT split in percent, Q1 2021 versus Q1 2020

	Sales split		EBIT split
	Q1 2021	Q1 2020	Q1 2021	Q1 2020
			3,2	4,0
	7,0	7,8	26,8	26,4
28,5	28,6
	64,5		63,6
			70,0	69,6

Smokefree	Cigars	Lights		Smokefree	Cigars	Lights

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SALES SPLIT BY GEOGRAPHY AND PRODUCT SEGMENT

Sales split in percent, Q1 2021 versus Q1 2020

Sales split	Smokefree	Cigars
6,5 (8,0)	1,4 (1,9)

	28,9		44,2
	(26,5)		(41,2)	54,4
		64,6		(56,9)
		(65,5)			100,0
					(100,0)
The US	Scandinavia	Other markets	The US	Scandinavia	Other markets

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