Scandinavian Tobacco Group A/S: Interim Report 1 January-30 September 2017

Financial performance on track to meet full year guidance
- cash distribution of DKK 350 million to shareholders


Highlights FOR THE THIRD QUARTER OF 2017

Reported net sales of DKK 1,721 million (DKK 1,740 million) - organic growth positive at 1.9% Reported EBITDA of DKK 388 million (DKK 328 million) - organic growth negative at 0.8% Net profit of DKK 224 million (DKK 152 million) Free cash flow of DKK 342 million (DKK 627 million)

Highlights FOR THE NINE MONTHS TO 30 SEPTEMBER 2017

Reported net sales of DKK 4,773 million (DKK 4,938 million) - organic growth negative at 2.6% Reported EBITDA of DKK 904 million (DKK 960 million) - organic growth negative at 7.5% Net profit of DKK 465 million (DKK 498 million) Free cash flow of DKK 640 million (DKK 792 million)

distribution to shareholders
The board of directors has decided to distribute DKK 350 million to shareholders (DKK 3.5 per share) as an extraordinary dividend in November with the purpose of adjusting the capital structure.

Financial Guidance 2017

FY 2017 guidance unchanged: STG expects slightly negative organic net sales growth and negative organic growth in adjusted EBITDA of 4-8%.

STATEMENT BY CEO NIELS FREDERIKSEN:
I am pleased to see the steady progress in the quarter where we continued to focus on getting Cigars International back on track and on executing our strategy for the branded handmade and machine-made cigars businesses. Our branded handmade business had yet another good quarter and our machine-made cigars delivered a solid performance with full focus on improving the distribution and visibility of the reduced portfolio combined with new launches in several markets.

As part of the strategy for growing our handmade business, I am happy to announce the planned opening in 2018 of two retail stores in Texas, US. These retail stores will complement our online business and provide consumers with both a great shopping and smoking experience.

We continue to deliver a strong cash flow. In order to adjust our capital structure we are now distributing another DKK 350 million on top of the ordinary dividend distributed end of April, bringing the total cash distribution in 2017 to DKK 900 million.

Q3 2017 Interim Report UK


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Source: Scandinavian Tobacco Group A/S via Globenewswire

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