Who we are, what we do

Last update: August 2006

Swedish Match 2005

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May 18, 2006

Net sales 13,311 MSEK Operating income 2,825 MSEK Number of employees 14,333 Manufacturing in 12 countries Sales in more than 120 countries

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Swedish Match 2005 North America Division Richmond, Virginia, USA North Europe Division Stockholm, Sweden

International Division Valkenswaard, Netherlands

May 18, 2006

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Swedish Match history 1915-1996

Svenska Tobaksmonopolet 1915

Becomes Svenska Tobaks AB

Transferred to Statsföretag AB

1961

1971

Procordia acquires Swedish Match 1992 Listed on the Changes name Stockholm to Procordia Exchange and on 1984 NASDAQ (delisted from NASDAQ in 2004)

1996

1994 Acquired by Volvo

1980 1917 Svenska Tändsticks AB

May 18, 2006

Becomes Swedish Match

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1988 Acquired by STORA

Swedish Match history 1996-today

Svenska Tobaks AB 1915 - 1992

Listed on the Stockholm Exchange and on NASDAQ 1996

Acquires: Distribution company in Australia

Acquires: 64% of General Cigar (Premium Cigars)

Acquires: UST:s cigar business Distribution company in Poland

Distribution company in South Africa

1998

2000

2002

Divests: Arenco

2006

2004

2001

2003

2005

Acquires:

Match business in Bulgaria, India and Turkey

BAT/Rothmans South African Pipe Tobacco operations

Acquires: Distribution company in Slovenia

Acquires: remaining holding in General Cigar

1999

Divests: Cigarette operations

Dry snuff operations in Continental Europe

Acquires: Distribution General Cigar’s company in Italy operations of machine made cigars in the US, El Credito, and Leonard Dingler

May 18, 2006

Acquires: Hajenius / Oud kampen from Burger Group

Acquires:

1997

Svenska Tändsticks AB 1917 - 1992

Delisted from NASDAQ

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Divests: Match businesses in a number of markets

Shareholders The share is listed on Stockholmsbörsen (SWMA)

Main shareholders:

December 31, 2005

Outside Sweden 80,5% 19,5% Sweden

* Excluding treasury shares Source: SIS Ägarservice AB

May 18, 2006

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Wellington ....................10.1% SHB/SPP-fonder .......... 2.5% Robur Fonder ............... 1.6% Pensioenfonds PGGM.. 1.1% Första AP-fonden ....… 1.1% Tredje AP-fonden .…... 1.0% GMO Int’l Funds ........ 0.9% SEB fonder ..…...….... 0.8% Threadneedle ............ 0.7% Govt of Singapore ....... 0.7% Total* 20.5%

Strategic direction

Swedish Match intends to be a Unique Tobacco Company, using its world leading brands and niche products to work in growing markets in harmony with current social and consumer trends

May 18, 2006

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Sales per product area 2005

Other operations

23%

22% Lighters

5%

8%

10% Matches

Chewing tobacco

25%

7%

Pipe tobacco and accessories

May 18, 2006

Snuff

Cigars

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Sales growth led by snus & snuff, cigars Five year comparison of sales 3 500

2001 2002 2003 2004 2005

3 000 2 500 2 000 1 500 1 000 500 0 Snuff Chewing Cigars

May 18, 2006

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Pipe/ Matches Lighters Access.

Operating Income growth led by snus & snuff, cigars Five year comparison, operating income 1 500

2001 2002 2003 2004 2005

1 000

500

0 Snuff Chewing Cigars

May 18, 2006

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Pipe/ Matches Lighters Access.

Organization President & CEO Group Finance 3 Corporate Affairs 3 Group Human Resources 3

North Europe

May 18, 2006

North America

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International

Snuff Swedish Match is the only company with significant international snuff operations. The company has a leading position… …in the Nordic snuff market and in South Africa. In North America, the company has strong position in the fast-growing value price segment

Major brands: ƒ General ƒ Ettan ƒ Catch ƒ Grovsnus ƒ Göteborgs Rapé

May 18, 2006

ƒ Timber Wolf ƒ Longhorn ƒ Taxi

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Chewing tobacco Swedish Match is the largest player in the market for American chewing tobacco Major brands: ƒ Red Man ƒ Southern Pride ƒ Granger Select ƒ J.D’s Blend

May 18, 2006

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Cigars Swedish Match is one of the largest producers of cigars and cigarillos in the world, and is the second largest in sales value. Major brands: Premium ƒ Macanudo ƒ Partagas ƒ Punch ƒ Hoyo de Monterrey ƒ Cohiba ƒ La Gloria Cubana ƒ Don Tomas ƒ Helix

May 18, 2006

Machine-made ƒ White Owl ƒ Garcia y Vega ƒ Bellman ƒ Hofnar ƒ La Paz ƒ Willem II ƒ Justus van Maurik ƒ Wings

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Pipe tobacco and accessories Swedish Match is one of the world’s largest manufacturers of pipe tobacco Major brands: ƒ Borkum Riff ƒ Half and Half ƒ Paladin ƒ Best Blend ƒ Boxer ƒ Black & White ƒ Greve Gilbert Hamiltons blandning ƒ 1904 ƒ Velvet

May 18, 2006

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Matches Swedish Match is the market leader in a number of markets for matches. The brands are mostly local.

Major brands: ƒ Solstickan ƒ Swan ƒ Three Stars ƒ England´s Glory ƒ Redheads ƒ Fiat Lux

May 18, 2006

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Lighters Swedish Match is one of the players in the international market for lighters Major brands: ƒ Cricket ƒ Poppell

May 18, 2006

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Our core values

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Communication g

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Teamwork

Trust g g

Innovation

Recognition g

May 18, 2006

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Growth