Proposed distribution of earnings
According to the Parent Company’s balance sheet, the funds available for distribution by the Annual General Meeting amounts to 21,792 MSEK, of which 17,039 MSEK is net profit for the year.
The Board of Directors and the President propose that the 21,792 MSEK, which is at the disposal of the Annual General Meeting, be distributed so that shareholders receive a dividend of 3.50 SEK per share, amounting to a total of 896 MSEK, based on the number of shares at end of year, 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 22, 2008 for adoption. The Board of Directors also proposes April 25, 2008 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 the 2007 fiscal year, and their respective positions at the close of 2007, are set forth in the income statements and balance sheets and accompanying notes.
The consolidated accounts and Annual Report were prepared in accordance with international accounting standards referred to in Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards and generally accepted financial reporting standards and gives an accurate view of the position and earnings of the Group and the Parent Company.
The Board of Directors’ report for the Group and the Parent Company gives a true and fair view of the operations, position and earnings of the Group and the Parent Company and describes significant risks and uncertainties facing the Parent Company and companies included in the Group.
Stockholm, February 19, 2008
| Our Auditors’ report was submitted on March 10, 2008 |
| KPMG Bohlins AB |
Thomas Thiel
Authorized Public Accountant
Auditor’s report
To the annual 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 2007. The annual accounts and the consolidated accounts are included in the printed version of this document on pages 41–90. 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, 10 March 2008 |
| KPMG Bohlins AB |
| Thomas Thiel |
| Authorized Public Accountant |
Consolidated Income Statement
