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The Board of Directors and the management team of Scandinavian Tobacco Group have established new financial expectations for Scandinavian Tobacco Group with the goal to further drive stable net sales growth, increased profitability and continue strong cash flow generation.

CEO Niels Frederiksen says: “I am very pleased that we have established new financial expectations for the Group and have the right management team and platform in place to achieve them. Working towards a clear direction is important for our future financial performance as well as for our talented and skilled employees”.

For the full year 2015, Scandinavian Tobacco Group expects net sales growth in the high single digits and an adjusted EBITDA margin broadly in line with 2014 (20.3%). Capital expenditure is expected to be around 250 MDKK.

In the medium term, the Group anticipates organic growth rates, excluding currency effects, to be in the range of 1-3% for net sales and 3-5% for adjusted EBITDA annually reflecting ongoing cost savings and efficiency initiatives which are in the process of being implemented.

For the full year 2016, the Group expects organic net sales growth and adjusted EBITDA growth excluding currency effects to be in line with the medium-term expectations.

Scandinavian Tobacco Group’s Management has identified several cost-saving efficiency initiatives and inventory reduction opportunities as part of the strategic review. Consequently, Management is expecting cost reductions of approximately 140 MDKK compared to full year 2014 when fully implemented in 2018. The Group also anticipates working capital improvements amounting to approximately 500 MDKK in the same period versus full year 2014 working capital levels.

Scandinavian Tobacco Group continues to make further investments related to new tobacco regulation resulting in expected capital expenditure in 2016 being in line with or slightly above the 2015 level. This level is anticipated to be higher than the expected medium-term maintenance capex level of approximately 150 MDKK annually.

As of 30 September 2015, the Group had net interest bearing debt of 3,323 MDKK equal to 2.3 times adjusted EBITDA for the past twelve months.

This new established financial expectation for Scandinavian Tobacco Group is part of the strategic review process as referred to by Swedish Match on 9 February 2015. This information has been disclosed by Swedish Match AB to Nasdaq Stockholm in accordance with the Swedish Securities Markets Act.

For further information please contact
Director of Group Communications Kaspar Bach Habersaat, kaspar.bach@st-group.com or phone +45 7220 7152.


- a world leading manufacturer of cigars and traditional pipe tobacco

- approx. 8,200 employees in the Dominican Republic, Honduras, Nicaragua, Indonesia, Europe, New Zealand, Australia, Canada and the US

The Group’s brand portfolio contains more than 200 international, regional and local tobacco brands, including the cigar brands Café Crème, La Paz, Henri Wintermans, Macanudo, CAO, Partagas (US) and Cohiba (US). Pipe tobacco brands include Captain Black, Erinmore, Borkum Riff and W.Ø. Larsen, while leading fine-cut tobacco brands include Bugler, Break, Escort, Bali Shag and Tiedemanns.

The Group is ultimately owned by two Danish foundations (51%) – the Augustinus Foundation and Det Obelske Familiefond – and by Swedish Match (49%). Both Danish foundations have been active in the tobacco industry for more than 250 years. Swedish Match is a publicly owned company listed on the Stockholm Stock Exchange.

Read more: www.st-group.com.

Scandinavian Tobacco Group A/S
Sydmarken 42
DK-2860 Søborg

CVR 31 08 01 85


This announcement contains forward-looking statements regarding Scandinavian Tobacco Group’s future development and financial performance and other statements, which are not historical facts. Such statements are made on the basis of assumptions and expectations which, to the best of the Group’s knowledge, are reasonable and well-founded at this time, but which may prove to be erroneous. The Group’s operations are characterised by the fact that its actual results may deviate significantly from that described herein as anticipated, believed, estimated or expected.

This press release serves marketing purposes only and constitutes neither an offer to sell nor a solicitation to buy any securities.

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