• Opening plus closing operating capital divided by 2.

  • Opening plus closing equity attributable to the equity holders of the Parent divided by two.


  • A cigar comprises three parts: filler, binder and wrapper. The binder encloses the filler and holds the cigar together. Vickel is the name used for the combination of binder and filler. The binder is not visible and is not chosen for its appearance but for its strength and burning properties where excellent binding creates a slow and even burn.


  • Chief Executive Officer.

  • Chief Financial Officer.

  • Chief Operating Officer.


  • Definition/calculation:
    100 x Dividend (proposed after year-end) ÷ Earnings per share from continuing operations, basic

    Dividend payout ratio is used to measure the percentage of net profits distributed as a dividend to the shareholders.

  • Definition/calculation:
    100 x Dividend (proposed after year-end) ÷Year-end share price

    Dividend yield is used as a measure of the cash return to shareholders.


  • Profit for the year attributable to equity holders of the Parent divided by average number of shares outstanding (excluding treasury shares).

  • Definition/calculation:
    Earnings excluding net finance cost, tax, amortization and impairments of intangible assets

    EBITA is, based on the assumption that depreciations are a fair measure for capital expenditures, used as a proxy for the free cash flow available for payment of financial obligations.

  • Definition/calculation:
    EBITA ÷ (Interest expense – interest income)

    EBITA interest coverage ratio is used to measure the ability to fund interest expenses.

  • Definition/calculation:
    Earnings excluding net finance cost, tax, depreciation, amortization and impairments of tangible and intangible assets

    EBITDA is used as an alternative measure of operating performance that is not impacted by historical investments and the related accounting treatment of such investments. This measure sometimes serves as a better comparison of operating performance between companies than operating profit (EBIT).

  • Definition/calculation:
    100 × EBITDA ÷ Sales

    EBITDA margin is used as an alternative measure of operating profitability.

  • Eliminating Child Labour in Tobacco Growing. ECLT is a foundation that works together with tobacco-buying companies and professional representatives with the aim of eliminating child labor on tobacco fields. Swedish Match is represented on the Board and the Company’s major tobacco suppliers are also members.

  • Equity attributable to equity holders of the Parent divided by number of shares outstanding at year-end (excluding treasury shares).

  • Total equity as a percentage of total assets.

  • European Smokeless Tobacco Council. Established in 1989 and represents the interests of smokeless tobacco manufacturers and distributors as well as tobacco trade associations. Monitors all smokeless tobacco related issues, including the latest scientific developments at a European and global level. 


  • Food and Drug Administration.

  • Fermentation is a bio-chemical process that breaks down and matures the tobacco, which gives tobacco its specific character. The tobacco darkens somewhat and a great deal of the nicotine in the tobacco disappears.

    Fermentation is performed by allowing the tobacco to rest in large bales for several weeks. When the temperature reaches the desired level, the bales are restacked so that each tobacco leaf ends up in a new place. The outer ones are placed inside and the upper ones are placed lowest, etc. This is repeated several times during the process. Factors that affect fermentation are heat, humidity and pressure. 

  • A cigar comprises three parts: filler, binder and wrapper. The filler consists of one or several different types of tobacco, which are carefully chosen based on taste, aroma, burning properties and quality. The filler can consist of either a few whole tobacco leaves - long filler, or a base of tobacco chopped into pieces - short filler.

  • Lid developed by Swedish Match for Red Man moist snuff which keeps the snuff fresh.

  • FoilFresh® is a packaging solution for mass market cigars, developed by Swedish Match, that the Company has been using in the US since early 2008. The FoilFresh® packaging keeps the cigars fresh for a longer period of time.

  • Forest Stewardship Council. An independent, non-governmental, not for profit organization established to promote the responsible management of the world's forests.


  • Quality standard for Swedish snus developed by Swedish Match. Adopted as an industry standard. 

  • Global Reporting Initiative. GRI is a network based organization that produces a broad sustainability reporting framework widely used around the world. The core goals of GRI include the mainstreaming of disclosure on environmental, social and economic performance. 


  • Homogenized tobacco leaves for cigars. Certain short fillers, often cigarillos, have binders and/or wrappers made from homogenized tobacco leaves. HTL is tobacco that is finely ground to a powder, mixed with water and rolled into tobacco sheets. This is done in order to maintain an even quality in mass produced products.


  • International Financial Reporting Standards is a single set of accounting standards developed to ensure transparancy and comparability of financial information. All publicly listed companies in the European Union are required to use IFRS.

  • International Organization for Standardization. An international standard-setting body composed of representatives from various national standards organizations. 

  • International Tobacco Growers’ Association. A non-profit organization founded in 1984 with the objective of presenting the cause of tobacco farmers.


  • A business venture undertaken by two or more parties who jointly control the venture and split the risks and rewards in accordance with the legal agreement establishing the venture.


  • Definition/calculation:
    Larger one-time items are separately disclosed non-recurring income and cost

    Disclosures of one-time items are used to provide a better measure of underlying performance and a better comparison between periods.


  • Modified Risk Tobacco Product. A MRTP is a tobacco product that is considered to reduce harm and the risk of tobacco-related disease associated with other tobacco products. 


  • Definition/calculation:
    Interest-bearing liabilities, adjusted for hedges relating to these liabilities + net provisions for pensions and similar obligations – cash and cash equivalents and other investments

    Net debt is used as a measure of net financial obligations.

  • Definition/calculation:
    Net debt÷EBITA

    Net debt/EBITA is used as an indication of the duration (in years) required to fund existing net financial obligations with the Company’s free cash flows.


  • Definition/calculation:
    Current operating assets + intangible assets + tangible assets + other non-current operating assets – current and non-current operating liabilities

    Operating capital is used to measure the capital employed within operations.

  • Definition/calculation:
    100 × Operating profit ÷ Sales

    Operating profit margin is used to measure the operational profitability.

  • Definition/calculation:
    Earnings excluding net finance cost and taxes

    Operating profit is used to measure the operating performance, excluding the impact of financing and corporate income tax.

  • Definition/calculation:
    Earnings from product areas excluding net finance cost and tax

    Operating profit is used to measure the operating performance of the product areas, excluding the impact of financing and corporate income tax.


  • Definition/calculation:
    Share price at year-end ÷ Earnings per share

    P/E ratio is used to measure the market valuation in relation to the net profit generation.


  • The record date is the date by which a shareholder must be registered in the shareholders´ register or in Euroclear Sweden AB share register to be entitled to dividends.

  • Definition/calculation:
    100 × Operating profit ÷ Average operating capital

    Return on operating capital is used to measure how efficiently capital is employed within the operations.


  • Annual turnover of shares as a percentage of total number of shares.

  • Socially Responsible Investment, also known as SRI, is the practice of making investment decisions on the basis of not only financial performance, but also on ethical, social, and environmental criteria. Socially responsible investors pursue certain economic objectives but at the same time favor sustainable companies.

  • Swedish Match proprietary white portion snus technology.

  • Scandinavian Tobacco Group. Swedish Match holds a 49 percent ownership interest. Website:


  • Definition/calculation:
    100 × (Share price at year-end – share price at preceding year-end) + (dividend paid + return on reinvested dividend) ÷ Share price at preceding year-end

    Total return is used to measure the Company’s total value creation for the shareholder, including cash returns and share price appreciation/depreciation.


  • A cigar comprises three parts: filler, binder and wrapper. The wrapper is the outer tobacco leaf, which is seen on the cigar and is chosen for its appearance. It should be attractive, without spots or blemishes and uniform color. Other demands are that it should be thin, smooth and without large veins and be supple and durable. In order to produce perfect wrappers for handmade cigars, the tobacco is often shade-grown. This protects the tobacco from strong sunlight, which in turn produces light, thin and elastic leaves with small veins.


  • Abbreviation for year to date. Usually means the period starting 1 January of the current year and ending today.