IMPROVED MARKET SHARES IN ALL REGIONS

• Net sales for the full year increased by 9 per cent to DKK 5,978 million (5,472). In local currencies and adjusted for the acquisition of Lane and the divestments of certain brands in Australia, net sales rose by 4 per cent.
• EBITDA increased by 11 per cent to DKK 1,301 million (1,174). Adjusted EBITDA in local currencies showed an almost flat development compared to 2011.
• Net profit amounted to DKK 618 million (578), showing a growth of 7 per cent.
• Market shares grew in all regions, and net sales grew in five of six regions led by the North America, Central Europe and Oceania.
• Net sales and market shares grew across our categories cigars, pipe tobacco and fine cut.

Anders Colding Friis, CEO of Scandinavian Tobacco Group A/S, says:

“We have performed well. In 2012, we invested in the future, building the platform for further growth with a focus on innovation and product development combined with commercial and supply chain excellence.”

“I’m pleased that we succeeded in growing our market shares across categories and in five of six regions. This confirms our global leadership in cigars and pipe tobacco and fortifies our position in fine-cut tobacco.”

“Worth emphasizing is our development in the US which is the world’s largest cigar market accounting for almost two out of three handmade cigars. In a flat market, we managed to outpace the category by 2 per cent net sales growth in General Cigar and double-digit growth in the internet and catalogue business of Cigars International. Also STG Lane Ltd.’s business for machine-made cigars and pipe tobacco gained tailwind with positive results in sales and product development. Overall, it supports our strategy to build a long-term sustainable position in the US and other selected markets.”

Outlook

The Group will use the coming years to consolidate following the merger in late 2010 while at the same time preparing for future growth through an expanded organisation and initiatives within sales, marketing and product development. Based on the planned activities, Management expects continued growth in net sales in local currencies during 2013, which supports the ambition to deliver improved earnings.

Further information, please contact:

CEO Anders Colding Friis or Director of Group Communications, Kaspar Bach:

kaspar.bach@st-group.com or phone +45 7220 7152.