1

ANNUAL GENERAL MEETING 2016

2

President and CEO Lars Dahlgren

2

3 3

4

SUMMARY OF 2015

• Increase in sales and operating profit − Sales increased by 9 percent. In local currencies, sales increased

by 2 percent. − Operating profit from product areas increased by 7 percent.

In local currencies, operating profit from product areas declined by 2 percent.

− Basic EPS amounted to 14.48 SEK.

• An eventful year

− Significant growth of the snus markets in Sweden and Norway. − Stabilized market share in Sweden. − Volume record for cigars in the US. − Consolidation of distribution centers in Sweden. − Dissolution of the joint venture SMPM International. − Preparations for the IPO of STG. − Regulatory developments.

4

5

MARKET SHARE DEVELOPMENT IN SWEDEN

55%

60%

65%

70%

75%

80%

85%

Market share (%), value

Source: Nielsen

5

6

XRANGE

0%

1%

2%

3%

4%

5%

6%

7%

Market share for XRANGE, 4 weeks rolling (volume)

is an innovative snus series at a competitive price. XRANGE was launched in Sweden in April 2015. .

XRANGE

Source: Nielsen

6

7

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015

Mill

ion

cans

STRONG CATEGORY GROWTH IN SCANDINAVIA DURING 2015

The number of snus users exceeded one million in Sweden for the first time

In Norway, the strong market growth continued

0

10

20

30

40

50

60

70

2010 2011 2012 2013 2014 2015

Mill

ion

cans

Sources: Nielsen and Swedish Match estimates and Ipsos.

7

8

THE WORK TOWARDS OUR VISION CONTRIBUTES TO PUBLIC HEALTH

6%

8%

10%

12%

14%

16%

18%

20%

2010 2011 2012 2013 2014 2015

Sweden Norway

Share of daily smokers in the adult population (%)

Source: Ipsos

8

9

MORE AND MORE REGULATIONS

9

10

REGULATION NEEDS TO ACKNOWLEDGE RELATIVE RISKS

10

11

SWEDISH MATCH’S SNUS STORES

Åre Opened in March 2016

Stockholm Opened in December 2013

Göteborg Opened in June 2015

Strömstad Opened in March 2014

11

12

SNUS EXPANSION CONTINUES IN THE US

Source: Industry estimates

0%

2%

4%

6%

8%

10%

12%

14%

16%

Q12015

Q22015

Q32015

Q42015

Q12016

Category growth by quarter

0%

2%

4%

6%

8%

10%

12%

14%

16%

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Market share for General, 12 weeks rolling

Source: Nielsen

12

13

TEST LAUNCH OF ZYNNT IN THE US

Sales in test stores, cans/store/week • Test of ZYNNT in the US, a nicotine pouch product without tobacco.

13

14

LAUNCH OF CHEW BAGS IN SWITZERLAND

Imports of smokeless products, volume

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Swiss Federal Customs Administration

14

15

MORE RESOURCES BEHIND PRODUCT DEVELOPMENT AND R&D

Product quality and continuous improvement Innovative new products and product concepts

15

16

FDA APPLICATIONS FOR GENERAL SNUS IN THE US

Application for a Modified Risk Tobacco Product (MRTP) classification for General snus

Application to commercialize new snus products with the General brand through the FDA premarket tobacco application (PMTA) pathway

FDA’s decision is expected during 2016

Application approved

Applications to the US Food and Drug Administration (FDA)

16

17

PRODUCT APPLICATIONS FOR GENERAL APPROVED BY FDA

• Swedish Match is the first and only tobacco company in the US to have such an approval from the FDA

“Assuming persons who would have used other US smokeless tobacco products use these product instead,

an individual using these products with reduced nitrosamine levels could decrease the excess cancer risk

by 90 percent compared to use of moist snuff, 67 percent compared to use of chewing tobacco, 38 percent

compared to use of US-style snus, and 92 percent compared to use of dry snuff.”

FDA, November 10, 2015

17