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Proposed distribution of earnings
According to the Parent Company’s Balance Sheet, the funds available for distribution by the Annual General Meeting amounts to 7,863 MSEK, of which 6,619 is net profit for the year.
The Board of Directors and the President propose that the 7,863 MSEK at the disposal of the Annual General Meeting be distributed so that shareholders receive a dividend of 2.50 SEK per share, amounting to a total of 686 MSEK, based on the number of shares outstanding at year-end, and that the remaining earnings be carried forward.
The income statements and the balance sheets will be presented to the Annual General Meeting on April 23 for adoption. The Board of Directors also proposes April 26, 2007 as the record date for shareholders listed in the Swedish Securities Register Center (VPC).
The results of operations of the Parent Company, Swedish Match AB, and of the Group during 2006, and their respective positions at the close of 2006, are set forth in the income statements and balance sheets and accompanying notes.
The Board of Directors and the President give their assurance that, to the best of their knowledge, the Annual Report was prepared in accordance with generally accepted financial reporting standards for a stock market company, that the information given corresponds with the factual conditions and that nothing of material importance has been omitted that could influence the impression of the company by the Annual Report.
  Stockholm, February 13, 2007  
     
Bernt Magnusson Andrew Cripps Kenneth Ek
Chairman of the Board    
     
Arne Jurbrant Conny Karlsson Eva Larsson
     
Joakim Lindström Karsten Slotte Kersti Strandqvist
     
Meg Tivéus   Sven Hindrikes
    President
Our Auditors’ report was submitted on March 9, 2007
KPMG Bohlins AB
Thomas Thiel
Authorized Public Accountant
Auditors’ report
To the Annual General Meeting of the shareholders of Swedish Match AB (publ) Corporate identity number 556015-0756
We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the Board of Directors and the President of Swedish Match AB (publ) for the year 2006. The annual accounts and the consolidated accounts are included in the printed version of this document on pages 36–78. The Board of Directors and the President are responsible for these accounts and the administration of the company as well as for the application of the Annual Accounts Act when preparing the annual accounts and the application of international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit.
We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain high but not absolute assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the Board of Directors and the President and significant estimates made by the Board of Directors and the President when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any Board member or the President. We also examined whether any Board member or the President has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.
The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act and give a true and fair view of the group’s financial position and results of operations. The Board of Directors’ report is consistent with the other parts of the annual accounts and the consolidated accounts.
We recommend to the annual meeting of shareholders that the income statements and balance sheets of the Parent company and the Group be adopted, that the profit of the Parent company be dealt with in accordance with the proposal in the Board of Directors’ report and that the members of the Board of Directors and the President be discharged from liability for the financial year.
Stockholm, March 9, 2007
KPMG Bohlins AB
Thomas Thiel
Authorized Public Accountant