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CREATING MOMENTS OF ENJOYMENT Investor Presentation Q3 2025 Results 12 November 2025
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CORPORATE SUMMARY* 2 NO. 1 HANDMADE CIGARS IN USA NO. 1 MACHINE-ROLLED CIGARS IN EUROPE GLOBAL CONSUMER BASE STRONG M&A TRACK-RECORD Market cap Share price Shares Outstanding DKK 6.8 billion DKK 87 78.7 million Major Shareholders Investor Shareholding Chr. Augustinus Fabrikker Aktieselskab >25% C.W. Obel >10% A GLOBAL LEADER IN CIGARS Analyst Coverage * Data as of 10 November 2025 COMMERCIAL DIVISIONS PRODUCT CATEGORIES EUROPE BRANDED NORTH AMERICA BRANDED & REST OF THE WORLD NORTH AMERICA ONLINE & RETAIL HANDMADE CIGARS MACHINE-ROLLED CIGARS & SMOKING TOBACCO NEXT GENERATION PRODUCTS
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AGENDA All statements except for statements of historical fact in this presentation are forward -looking. Forward-looking statements give Scandinavian Tobacco Group’s (“STG”) current expectations and projections relating to its financial condition, results of o perations, plans, objectives, future performance as well as business. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained therein. The presentation has not been independently verified and will not be updated. NIELS FREDERIKSEN Chief Executive Officer MARIANNE RØRSLEV BOCK Chief Financial Officer 3 TORBEN SAND Director of Investor Relations Highlights and Strategy Update Niels Frederiksen, Chief Executive Officer Product Categories Niels Frederiksen, Chief Executive Officer Commercial Divisions Marianne Rørslev Bock, Chief Financial Officer Group Financials Marianne Rørslev Bock, Chief Financial Officer Financial Expectations 2025 Niels Frederiksen, Chief Executive Officer Q&A Session All
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HIGHLIGHTS AND STRATEGY UPDATE NIELS FREDERIKSEN, CEO
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Q3 2025 HIGHLIGHTS • Reported net sales impacted by exchange rate developments • Organic net sales growth was 0.3% supported by handmade cigars and nicotine pouches • EBITDA margin continued to recover from previous quarters • Free cash flow before acquisitions on track to reach DKK 800-1,000 million for the full year 5 Q3 24 Q3 25 4.1 3.4 -16% Q3 24 Q3 25 23.4% 22.0% -1.4pp 275 173 Q3 24 Q3 25 -102m EBITDA margin FCF before acquisitions (DKKm) Adjusted earnings per share (DKK) Q3 25 -3% 0% Reported Organic Net Sales Growth
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ROLLING TOWARDS 2025 COMING TO AN END 6 INVESTING IN THE FUTURE Mac Baren integration on track 2 new super stores in Q4 2025 ERP implementation moves forwardVISION MUST-WIN BATTLES a performance culture future profit growth in Machine Rolled Cigars new megers and aquisitions everything we do sustainability agenda in cigars PURPOSE CRAFT THE RITUALS THATMAKEUS MORE SUSTAINABILITY PILLARS SUSTAINABLE COMMUNITY PIONEERS NET-ZERO ALONG THE JOURNEY OF THE LEAF our handmade cigar business AMBITION LARGER COMPANY GROWING EBITDA MARGIN OUTSTANDING CASH GENERATION BE THE UNDISPUTED & SUSTAINABLEGLOBAL LEADER IN CIGARS GROWTH ENABLERS Increased to 11% of Group net sales Double digit growth by XQS, Retail Stores and International Sales of Handmade Cigars
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PRODUCT CATEGORIES NIELS FREDERIKSEN, CEO
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Q3/9M 2025 RESULTS NET SALES DISTRIBUTION Q3 2025 8 COMMERCIAL DIVISIONS PRODUCT CATEGORIES* EUROPE BRANDED NORTH AMERICA BRANDED & REST OF THE WORLD NORTH AMERICA ONLINE & RETAIL HANDMADE CIGARS MACHINE-ROLLED CIGARS & SMOKING TOBACCO NEXT GENERATION PRODUCTS 37% 35% 48% 5% 34% 31% * Other (accessories, bar sales a.o.) accounts for 10%
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Q3/9M 2025 RESULTS HANDMADE CIGARS Q3 2025: 37% OF GROUP NET SALES 9 Organic Net Sales Growth Drivers • All four business streams delivered growth in the quarter • Wholesalers and distributors: Recovery versus H1 with low single-digit growth • Online Channel: Low single-digit growth • Retail Stores: Growth driven by new store openings and same-store-sales • International markets: Double-digit growth Market Update • US market uncertainties persist, though decline rate have stabilised • Consumer behavior a key for volume developments Q3 25 9M 25 FY 24 0% 6% -3% 0% 2% 1% Net Sales Growth Reported Organic
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Q3/9M 2025 RESULTS MACHINE-ROLLED CIGARS & SMOKING TOBACCO Q3 2025: 48% OF GROUP NET SALES 10 Organic Net Sales Growth Drivers • Machine-Rolled Cigars: -4% • EU-7* total market volume decreased by 0.6% • EU-7 market share decreased to 26.2% • Smoking Tobacco: -5% organic growth Market Update • MRC total market volume trend stable with a decline rate at 1-3% p.a. * EU-7 markets: France, UK, Spain, Germany, Italy, Netherlands, Belgium Net Sales Growth Q3 25 9M 25 FY 24 -6% -4% 4% -2% 3% -2% Reported Organic
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Q3/9M 2025 RESULTS NEXT GENERATION PRODUCTS Q3 2025: 5% OF GROUP NET SALES 11 First “clean” quarter without y-o-y impact from ZYN Organic Net Sales Growth Drivers • Double-digit growth driven by XQS • Streamlining of nicotine pouch business continues Market Update • ZYN impacted growth negatively during Q1 and Q2 2025 • XQS market share in Sweden above 13% in October 2025 Net Sales Growth Q3 25 9M 25 FY 24 26% 23% -9% -28% 118% 26% Reported Organic
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DIVISIONS & GROUP FINANCIALS MARIANNE BOCK, CFO
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Q3/9M 2025 RESULTS EUROPE BRANDED Q3 2025: 35% OF GROUP NET SALES 13 Organic Net Sales Growth -3% • Nicotine pouches with double-digit growth driven by XQS • Negative growth in Handmade Cigars and Machine-Rolled Cigars & Smoking Tobacco EBITDA margin 22.9% vs. 22.3% last year • Margin improved for the first time in more than a year • Continued investments in market positions Q3 24 Q3 25 22.3% 22.9% 0.6pp Net Sales Growth EBITDA margin Q3 25 -2% -3% Reported Organic
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Q3/9M 2025 RESULTS NORTH AMERICA BRANDED & ROW Q3 2025: 34% OF GROUP NET SALES 14 Q3 24 Q3 25 36.1% 33.0% -3.1pp Organic Net Sales Growth 0.3% • Handmade cigars: high single-digit growth driven by wholesalers & distributors in the US and international sales • Machine-Rolled Cigars & Smoking Tobacco delivered single-digit negative growth EBITDA margin 33.0% vs. 36.1% last year • Margin impacted by mix changes driven by lower sales of smoking tobacco products and stronger sales of handmade cigars in the US Net Sales Growth EBITDA margin Q3 25 -4% 0% Reported Organic
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Q3/9M 2025 RESULTS NORTH AMERICA ONLINE & RETAIL Q3 2025: 31% OF GROUP NET SALES 15 Q4 & FULL YEAR 2024 RESULTS Q3 24 Q3 25 14.6% 13.7% -0.9pp Organic Net Sales Growth 4% • “Clean” quarter without ZYN impacting y-o-y- comparisons • Online channel delivered low-single digit growth • Retail stores: Double digit growth continues enhanced by store openings and a slight increase in same-store-sales EBITDA margin 13.7% vs. 14.6% last year • High promotional activity to support market position continues Net Sales Growth EBITDA margin Q3 25 -3% 4% Reported Organic
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Q3/9M 2025 RESULTS 16 DKK million Q3 2025 Q3 2024 9M 2025 9M 2024 FY 2024 Net sales 2,357 2,431 6,692 6,745 9,202 Gross profit (before special items) 1,050 1,126 2,980 3,116 4,279 OPEX -550 -567 -1,683 -1,661 -2,248 Other income 19 8 37 28 49 EBITDA before special items 519 568 1,335 1,483 2,079 Special items -41 -49 -146 -131 -279 EBIT 366 401 856 1,039 1,380 Net financials -78 -26 -218 -132 -186 Net profit 227 297 506 719 940 Adjusted EPS (DKK) 3.4 4.1 8.2 9.9 13.7 Cash flow from operations 223 355 550 530 1,179 Free cash flow before acquisitions 173 275 448 327 931 EBITDA before special items DKKm 1483 9M/24 9M/25 1335 VolumeZYN Price/ mix USD Other Performance 2024-2025, 9M Positive Negative
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Q3 2025 KEY KPI´S 17 Q3 2025 Q3 2024 9M 2025 9M 2024 FY 2024 Organic net sales growth 0.3% -0.1% -4.0% 0.9% 0.4% Gross margin 44.6% 46.3% 44.5% 46.2% 46.5% OPEX ratio 23.4% 23.3% 25.1% 24.6% 24.4% EBITDA margin 22.0% 23.4% 19.9% 22.0% 22.6%
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Q3/9M 2025 RESULTS NET DEBT AND LEVERAGE 18 Q3 2025 • Net debt increased by DKK 0.2 billion versus end 2024 • Leverage ratio increased to 2.9x from 2.6x by end 2024, primarily due to dividend payments in April. Leverage ratio expected to decrease towards the end of 2025 1 2 3 4 5 6 7 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 0 0.0 0.5 2021 2022 2023 2024 9M 2025 3.3 3.6 4.1 5.4 5.6 1.6 1.9 2.6 2.9 1.5 Leverage (NIBD / EBITDA bsi) Net interest-bearing debt (NIBD), DKKb
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FINANCIAL EXPECTATIONS 2025 NIELS FREDERIKSEN, CEO
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Q3/9M 2025 RESULTS FINANCIAL EXPECTATIONS 2025 NARROWED* FULL-YEAR VISIBILITY IMPROVING AS YEAR-END APPROACHES AND TO REFLECT USD-LEVEL 20 * Guidance and assumptions are based on no impact from potential new acquisitions and at current exchange rates. A 10% change in the USD/DKK exchange rate would impact group net sales by approximately 5 percentage points with EBITDA margins being only marginally impacted. ADJUSTED EPS In the range of DKK 10-12 (DKK 10-13) EBITDA MARGIN In the range of 19.5-20.5% (18.0-22.0%) Before special items FREE CASH FLOW In the range of DKK 0.8-1.0 billion (unchanged) Before acquisitions NET SALES In the range of DKK 9.1-9.2 billion (9.1-9.5 billion) 2025
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QUESTIONS AND ANSWERS Annual Report 2024 Our 2024 Annual Report addresses our financial performance, strategic execution and other important aspects of our business operations. Remuneration Report 2024 Our Remuneration Report includes an overview of the total remuneration received by the Board of Directors and Executive Management. FIND OUT MORE We are happy to take any questions from the audience now. Visit our investor site at: www.st-group.com/investor 21
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2025 EVENT CALENDAR & CONTACT Torben Sand Director of IR & Communications Tel: +45 5084 7222 torben.sand@st-group.com Scandinavian Tobacco Group A/S Sandtoften 9 2820 Gentofte, Denmark www.st-group.com SEPTEMBER 22 Eliza Dabbagh IR and Communications Manager Tel: +45 2420 8812 eliza.michael@st-group.com JAN-MAR 6 March 2025 Full year/Q4 2024 results APR-JUN 20 MAY 2025 Q1 interim report 27 AUG 2025 H1/Q2 interim report JUL-SEP SEPTEMBER 9 April 2025 Annual General Meeting 11 NOV 2025 Q3 interim report OCT-DEC 20 NOV 2025 Capital Market Event
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Q3/9M 2025 RESULTS PRODUCT CATEGORY PERFORMANCE 23* Other includes Accessories, Contract Manufacturing, Bar Sales a.o. Q3 2025 9M 2025 Share of Group Net sales (%) Organic Growth (%) Reported Growth (%) Share of Group Net sales (%) Organic Growth (%) Reported Growth (%) Handmade Cigars 37% 6% 0% 36% 0% -3% MRC and Smoking Tobacco 48% -4% -6% 50% -2% 4% Next Generation Products 5% 23% 26% 4% -28% -9% Other* 10% -4% -8% 10% -14% -11% Group 100% 0% -3% 100% -4% -1%
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LONG TERM TREND - EBITDA MARGINS Q3 2019-Q3 2025 24 0 5 10 15 20 25 30 % Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 Q3 25 24.7 27.5 28.7 26.7 26.5 23.4 22.0 0 10 20 30 40 50 % Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 Q3 25 32.7 38.0 43.7 38.3 39.7 36.1 33.0 0 5 10 15 20 25 30 35 % Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 Q3 25 25.4 28.3 29.8 31.1 24.6 22.3 22.9 THE GROUP NABROWEUROPE BRANDED 0 5 10 15 20 25 % Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 Q3 25 17.3 20.2 16.2 14.3 17.7 14.6 13.7 NAOR
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LONG TERM TREND - EBITDA MARGINS (FY 2018-FY 2024) 25 0 5 10 15 20 25 30 % FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 19.9 22.5 22.8 27.1 25.9 24.1 22.6 0 5 10 15 20 % FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 13.3 15.4 19.4 17.9 14.5 15.7 14.8 0 10 20 30 40 % FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 29.0 31.4 32.2 39.5 38.4 36.3 36.0 0 5 10 15 20 25 30 % FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 19.4 23.8 20.6 27.6 27.7 23.8 21.0 THE GROUP NAOR NABROWEUROPE BRANDED
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THANK YOU