Vision and strategy
Vision
A WORLD WITHOUT CIGARETTES
We create shareholder value by offering consumers enjoyable nicotine-containing products of superior quality in a responsible way. By providing products that are recognized as safer alternatives to cigarettes, we can contribute significantly to improved public health.
Strategy
OPERATIONAL STRATEGY
Snus and moist snuff businesses
To achieve our vision we leverage our unique snus and moist snuff platforms of consumer insights, innovation and product quality.
- In Scandinavia, we will continue to develop the snus category. We will defend and strengthen leading market positions and brands by focusing on product development and consumer satisfaction.
- In the US, we focus on faster growing and rapidly developing market segments, such as nicotine pouches, moist snuff pouches, and snus.
- Outside our home markets, we will continue our efforts to establish innovative smokefree products in selected markets.
Other businesses
To support our vision and to maximize long term value, we leverage our strong market positions and brands by capitalizing on synergies and operational efficiencies.In our cigars business, we will selectively invest in growth segments with an objective to maximize long term profitability and cash generation.
- In our cigars business, we will selectively invest in growth segments with an objective to maximize long term profitability and cash generation.
- In our chewing tobacco businesses, we will protect profitability in the US by mitigating the impact of volume declines through cost focus and price leadership. For chew bags and tobacco bits, we will continue to grow and establish new international markets based on our strong capabilities and brands.
- In our lights businesses, we will continue to focus on operational excellence while selectively investing in profitable growth markets and product segments.
FINANCIAL STRATEGY
- Optimize the balance sheet with a view to maintain a financial leverage consistent with a credit rating similar to S&P’s BBB or Moody’s Baa2 long term ratings.
- Return excess funds to shareholders through dividends and share repurchases.
- Annually distribute ordinary dividends of 40 to 60 percent of the net profit, subject to adjustments for larger one-time items.
