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establishes that there is no longer any scientific support for a continued ban on snus within the EU. The expert committee confirms that: (page references to the SCENIHR report within parenthesis)
  • Using snus is significantly less harmful than smoking (page 113–114)
  • A smoker who switches to snus will significantly reduce his/her risk of contracting tobacco-related illnesses (page 115–117)
  • Access to snus has had a positive effect on Swedish public health (page 116–117)
  • Swedish data opposes the notion that snus is a gateway to smoking (page 108, 116, 121).
“This means that the scientific issue concerning risk reduction within the tobacco area has been finally investigated. Swedish snus has a documented lower relative risk than the significantly more harmful cigarettes, which are currently sold openly within the EU. In addition, Swedish snus is best in its class with regard to risk reduction among known smokefree products,” says Lars Erik Rutqvist.
“The Commission should now assume its responsibility for risk management and risk reduction in tobacco and thus utilize the report’s findings on the relative risk benefits of snus. The Commission has a historic opportunity to question and change the existing sales ban within the EU and replace it with solid, scientifically based product regulation, which will allow Europe’s cigarette smokers to have access to Swedish snus. The product regulation should not only include content and limit potential risk components, but also marketing, consumer communication and the manner in which the product shall be introduced in new markets. Only then will it be possible to seriously steer tobacco consumption away from cigarette smoking to a significantly less hazardous alternative,” says Lars Erik Rutqvist.
EU and the snus debate – background
In 1992, an EU directive came into effect banning the sale of snus, particularly portion-packed snus. The reason was that the products were considered to attract young people and could function as a gateway to smoking, and that the health effects were not well documented. Since 1992, scientific facts have been presented to support the view that Swedish snus is a dramatically less harmful alternative than cigarettes. Swedish data has demonstrated categorically that snus is not a gateway to smoking among young people, but a means for enabling adult smokers to quit smoking.* The SCENIHR report has now confirmed that Swedish snus has scientifically substantiated risk-reducing effects and means that there is no longer any scientific support to continue the ban on snus within the EU.
“The Swedish experience”
Sweden has been successful in its aim of curtailing cigarette smoking and the proportion of daily smokers is currently less than 15 percent, which is the lowest proportion in Europe. The astonishing fact is that total tobacco consumption among Swedes is about the same as in comparable countries. What makes Swedish snus consumption unique is that there are about as many snus users as there are smokers. The positive effect of this circumstance is a very low frequency of tobacco-related diseases among Swedish men. Statistics also indicate the lowest risk of lung cancer in developing countries.
GothiaTek®
The GothiaTek® quality standard serves as a guarantee that the consumer can always be sure that Swedish Match snus products have been quality tested and maintain the highest quality standards at all levels, from tobacco plant to consumer. GothiaTek® ensures that requirements have been satisfied in terms of the highest permissible levels of potentially harmful substances that are found naturally in tobacco plants, the manufacturing process and raw materials, and high-quality product information to consumers. The aim is to continuously strive to minimize potential health risks in our Swedish snus, and to contribute to an increase in knowledge of the characteristics and use of our snus products.
* Source: L M Ramström and J Foulds, Role of snus in initiation and cessation of tobacco smoking in Sweden, Tob. Control 2006; 15; 210-214 doi: 10.1136/tc.2005.014969 Socialstyrelsen 2006, Folkhälsa, Lägesrapporter 2005
Read more about the SCENIHR report:
h t t P : / / e c . e u r o Pa . e u / h e a lt h / P h _ r i s k / c o m m i t t e e s / 0 4 _ s c e n i h r / d o c s / s c e n i h r _ o _ 0 1 3 . P d f
Many share the view of the health gains of snus
The internationally recognized tobacco scientists, Jonathan Foulds and Lynn Kozlowski, wrote an editorial in The Lancet magazine in May 2007 stating that it is “perverted” public health politics to make tobacco accessible in its most harmful form, namely cigarettes, and simultaneously refrain from informing consumers that tobacco is available in a significantly less harmful form.
The US newspaper, The Wall Street Journal, drew attention to an expert panel at the National Cancer Institute that had concluded that the health risk associated with smokefree tobacco was 90 percent lower and Sweden was highlighted as an example of how snus has contributed health gains in the form of reduced frequency of cancer of the lungs and the oral cavity.
Contents Financial Reports
Report of the Board of Directors 42
Consolidated Financial Statements
Income Statement 48
Balance Sheet 49
Statement of Recognized Income and Expense 50
Cash Flow Statement 51
Notes for the Group 52
Note 1 Accounting principles 52
Note 2 Revenue 57
Note 3 Segment information 57
Note 4 Business combinations 59
Note 5 Other operating income and other operating expenses 59
Note 6 Personnel 60
Note 7 Audit fees 64
Note 8 Operating expenses classified by nature 64
Note 9 Net finance cost 64
Note 10 Income tax expense 64
Note 11 Intangible assets 66
Note 12 Property, plant and equipment 67
Note 13 Biological assets 67
Note 14 Investments in associates and joint ventures 67
Note 15 Non-current receivables and other receivables 68
Note 16 Inventories 69
Note 17 Allowance for bad debts and aging analysis of trade receivables 69
Note 18 Cash and cash equivalents, and other current investments 69
Note 19 Assets held for sale 69
Note 20 Equity 70
Note 21 Earnings per share 71
Note 22 Loans and borrowings 71
Note 23 Employee benefits 71
Note 24 Provisions 73
Note 25 Other liabilities 74
Note 26 Accrued expenses and deferred income 74
Note 27 Financial instruments 74
Note 28 Operating lease agreements 77
Note 29 Pledged assets 77
Note 30 Contingent liabilities and assets 77
Note 31 Group companies 78
Note 32 Supplementary information to cash flow statement 78
Note 33 Critical estimates and judgements 79
Note 34 Information about the Parent Company 79
Parent Company Financial Statements
Income Statement 80
Balance Sheet 81
Changes in Equity 82
Cash Flow Statement 83
Notes for the Parent Company 84
Note 1 Revenue 84
Note 2 Fees and compensation for incurred costs to auditors 84
Note 3 Sick leave within the Parent Company 84
Note 4 Other income 84
Note 5 Financial items 84
Note 6 Appropriations 84
Note 7 Taxes 85
Note 8 Intangible assets 85
Note 9 Property, plant and equipment 85
Note 10 Receivables from Group companies 86
Note 11 Other receivables 86
Note 12 Prepaid expenses and accrued income 86
Note 13 Equity 86
Note 14 Untaxed reserves 86
Note 15 Liabilities to credit institutions/bond loans 86
Note 16 Liabilities to Group companies 86
Note 17 Accrued expenses and prepaid income 86
Note 18 Pledged assets and contingent liabilities 86
Note 19 Related parties 87
Note 20 Group companies 87
Note 21 Supplementary information to cash flow statement 88
Note 22 Carrying value and fair value of interest-bearing financial instruments 88
Note 23 Employee benefits 89
Proposed distribution of earnings 90
Auditors’ report 91

Page 40


establishes that there is no longer any scientific support for a continued ban on snus within the EU. The expert committee confirms that: (page references to the SCENIHR report within parenthesis)
  • Using snus is significantly less harmful than smoking (page 113–114)
  • A smoker who switches to snus will significantly reduce his/her risk of contracting tobacco-related illnesses (page 115–117)
  • Access to snus has had a positive effect on Swedish public health (page 116–117)
  • Swedish data opposes the notion that snus is a gateway to smoking (page 108, 116, 121).
“This means that the scientific issue concerning risk reduction within the tobacco area has been finally investigated. Swedish snus has a documented lower relative risk than the significantly more harmful cigarettes, which are currently sold openly within the EU. In addition, Swedish snus is best in its class with regard to risk reduction among known smokefree products,” says Lars Erik Rutqvist.
“The Commission should now assume its responsibility for risk management and risk reduction in tobacco and thus utilize the report’s findings on the relative risk benefits of snus. The Commission has a historic opportunity to question and change the existing sales ban within the EU and replace it with solid, scientifically based product regulation, which will allow Europe’s cigarette smokers to have access to Swedish snus. The product regulation should not only include content and limit potential risk components, but also marketing, consumer communication and the manner in which the product shall be introduced in new markets. Only then will it be possible to seriously steer tobacco consumption away from cigarette smoking to a significantly less hazardous alternative,” says Lars Erik Rutqvist.
 
EU and the snus debate – background
In 1992, an EU directive came into effect banning the sale of snus, particularly portion-packed snus. The reason was that the products were considered to attract young people and could function as a gateway to smoking, and that the health effects were not well documented. Since 1992, scientific facts have been presented to support the view that Swedish snus is a dramatically less harmful alternative than cigarettes. Swedish data has demonstrated categorically that snus is not a gateway to smoking among young people, but a means for enabling adult smokers to quit smoking.* The SCENIHR report has now confirmed that Swedish snus has scientifically substantiated risk-reducing effects and means that there is no longer any scientific support to continue the ban on snus within the EU.
 
“The Swedish experience”
Sweden has been successful in its aim of curtailing cigarette smoking and the proportion of daily smokers is currently less than 15 percent, which is the lowest proportion in Europe. The astonishing fact is that total tobacco consumption among Swedes is about the same as in comparable countries. What makes Swedish snus consumption unique is that there are about as many snus users as there are smokers. The positive effect of this circumstance is a very low frequency of tobacco-related diseases among Swedish men. Statistics also indicate the lowest risk of lung cancer in developing countries.
 
GothiaTek®
The GothiaTek® quality standard serves as a guarantee that the consumer can always be sure that Swedish Match snus products have been quality tested and maintain the highest quality standards at all levels, from tobacco plant to consumer. GothiaTek® ensures that requirements have been satisfied in terms of the highest permissible levels of potentially harmful substances that are found naturally in tobacco plants, the manufacturing process and raw materials, and high-quality product information to consumers. The aim is to continuously strive to minimize potential health risks in our Swedish snus, and to contribute to an increase in knowledge of the characteristics and use of our snus products.
 
* Source: L M Ramström and J Foulds, Role of snus in initiation and cessation of tobacco smoking in Sweden, Tob. Control 2006; 15; 210-214 doi: 10.1136/tc.2005.014969 Socialstyrelsen 2006, Folkhälsa, Lägesrapporter 2005
 
Read more about the SCENIHR report:
h t t P : / / e c . e u r o Pa . e u / h e a lt h / P h _ r i s k / c o m m i t t e e s / 0 4 _ s c e n i h r / d o c s / s c e n i h r _ o _ 0 1 3 . P d f
 
Many share the view of the health gains of snus
 
The internationally recognized tobacco scientists, Jonathan Foulds and Lynn Kozlowski, wrote an editorial in The Lancet magazine in May 2007 stating that it is “perverted” public health politics to make tobacco accessible in its most harmful form, namely cigarettes, and simultaneously refrain from informing consumers that tobacco is available in a significantly less harmful form.
The US newspaper, The Wall Street Journal, drew attention to an expert panel at the National Cancer Institute that had concluded that the health risk associated with smokefree tobacco was 90 percent lower and Sweden was highlighted as an example of how snus has contributed health gains in the form of reduced frequency of cancer of the lungs and the oral cavity.

Page 41

 
Contents Financial Reports
 
Report of the Board of Directors 42
 
Consolidated Financial Statements
 
Income Statement 48
Balance Sheet 49
Statement of Recognized Income and Expense 50
Cash Flow Statement 51
Notes for the Group 52
Note 1 Accounting principles 52
Note 2 Revenue 57
Note 3 Segment information 57
Note 4 Business combinations 59
Note 5 Other operating income and other operating expenses 59
Note 6 Personnel 60
Note 7 Audit fees 64
Note 8 Operating expenses classified by nature 64
Note 9 Net finance cost 64
Note 10 Income tax expense 64
Note 11 Intangible assets 66
Note 12 Property, plant and equipment 67
Note 13 Biological assets 67
Note 14 Investments in associates and joint ventures 67
Note 15 Non-current receivables and other receivables 68
Note 16 Inventories 69
Note 17 Allowance for bad debts and aging analysis of trade receivables 69
Note 18 Cash and cash equivalents, and other current investments 69
Note 19 Assets held for sale 69
Note 20 Equity 70
Note 21 Earnings per share 71
Note 22 Loans and borrowings 71
Note 23 Employee benefits 71
Note 24 Provisions 73
Note 25 Other liabilities 74
Note 26 Accrued expenses and deferred income 74
Note 27 Financial instruments 74
Note 28 Operating lease agreements 77
Note 29 Pledged assets 77
Note 30 Contingent liabilities and assets 77
Note 31 Group companies 78
Note 32 Supplementary information to cash flow statement 78
Note 33 Critical estimates and judgements 79
Note 34 Information about the Parent Company 79
 
Parent Company Financial Statements
 
Income Statement 80
Balance Sheet 81
Changes in Equity 82
Cash Flow Statement 83
Notes for the Parent Company 84
Note 1 Revenue 84
Note 2 Fees and compensation for incurred costs to auditors 84
Note 3 Sick leave within the Parent Company 84
Note 4 Other income 84
Note 5 Financial items 84
Note 6 Appropriations 84
Note 7 Taxes 85
Note 8 Intangible assets 85
Note 9 Property, plant and equipment 85
Note 10 Receivables from Group companies 86
Note 11 Other receivables 86
Note 12 Prepaid expenses and accrued income 86
Note 13 Equity 86
Note 14 Untaxed reserves 86
Note 15 Liabilities to credit institutions/bond loans 86
Note 16 Liabilities to Group companies 86
Note 17 Accrued expenses and prepaid income 86
Note 18 Pledged assets and contingent liabilities 86
Note 19 Related parties 87
Note 20 Group companies 87
Note 21 Supplementary information to cash flow statement 88
Note 22 Carrying value and fair value of interest-bearing financial instruments 88
Note 23 Employee benefits 89
Proposed distribution of earnings 90
Auditors’ report 91