Scandinavian Tobacco Group A/S

Full-year report, 1 January - 31 December 2023 - Seite 2

Capital Allocation

At the Annual General Meeting on 4 April 2024, the Board of Directors will propose an increase in the ordinary dividend of 2% to DKK 8.40 per share complementing the up to DKK 850 million share buy-back programme, which was launched in November 2023.

Financial Guidance 2024

The Group reported net sales are expected in the range of DKK 8.8-9.1 billion (2023: DKK 8.7 billion). All three commercial divisions are expected to deliver growth in net sales compared to 2023 with the highest growth in Europe Branded driven by increasing sales of NGPs and pricing in the core categories. The Growth Enablers are expected to increase to a level of 10% of Group net sales in 2024.

The EBITDA margin before special items is expected in the range of 22-24% (2023: 24.1%). The margin is being diluted by increased investments in our Growth Enablers. Cost inflation and mix changes are partly offset by price increases and continued cost optimisations which will benefit coming years.

The largest uncertainties for net sales and the EBITDA margin remain changes in consumer behaviour and in market and/or product mix as well as unexpected cost inflation.

Free cash flow before acquisitions is expected in the range of DKK 0.8-1.0 billion and will be impacted by up to DKK 300 million in special investments.

• Net sales in the range of DKK 8.8-9.1 billion
• EBITDA margin before special items in the range of 22%-24%
• Free cash flow before acquisitions in the range DKK 0.8-1.0 billion
• Adjusted EPS in the range of DKK 12.5-14.5

The Annual Report for 2023 is available for download at: investor.st-group.com.

For further information, please contact:
Torben Sand, Head of IR & Communication, phone [phone] or [e-mail]
Eliza Dabbagh, IR and Communication, phone [phone] or [e-mail]

A conference call will be held on 6 March 2024 at 10.00 CEST. Dial-in information and an accompanying presentation will be available at investor.st-group.com/investor around 09:00 CEST.

Attachments

• STG Annual Report 2023
• Interim report Q4 2023