Financial strategy
The Swedish Match operations are characterized by strong cash flows. The financial strategy is based on the basic principles of not utilizing more capital than necessary, and continually optimizing the balance sheet, with due consideration of flexibility and stability requirements.
The overall capital structure and dividend policy are analyzed and reviewed as part of the annual strategic process. The financial policy stipulates that dividends should be in the range of 40 to 60 percent of earnings per share, subject to adjustment for larger one-time items, and that we shall strive to maintain a net debt that does not exceed three times annual EBITA.
Since the listing of the Company, we have consistently transferred capital to our shareholders. By means of share redemptions and buybacks from 1998, we have reduced the number of shares outstanding by more than 50 percent.
Page updated Oct 4, 2010