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INVESTOR PRESENTATION HALF YEAR & SECOND QUARTER RESULTS 27 AUGUST 2026
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FORWARD LOOKING STATEMENTS 2 All statements except for statements of historical fact in this presentation are forward-looking. Forward-looking statements refer to Scandinavian Tobacco Group’s (“STG”) current expectations and projections relating to its financial condition, results of operations, 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. MARKETING PRINCIPLES Our Marketing Principles ensure that we develop, market and promote our products in accordance with the law and our core values. In the US, where the legal minimum age for purchasing tobacco is 21, the Group sells directly to consumer on our websites and in our retail stores. Our U.S. retail websites ensure legal age verification of all consumers, utilising a state-of-the-art third-party age verification solution to ensure compliance. We ensure compliance with the minimum age in our stores in the U.S. by requesting age verification. Our Marketing Principles are ingrained in the way we work and are front of mind in our consumer-focused teams. They are reviewed annually and revised as needed. We conduct training in the Marketing Principles to the relevant functions in the Group. IMPORTANT DISCLOSURES
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AGENDA 3 Half Year 2026 - Highlights Niels Frederiksen, CEO & Marianne Rørslev Bock, CFO Strategy Update & Our Product Categories Niels Frederiksen, CEO Group Financials and Commercial Divisions Marianne Rørslev Bock, CFO Financial Expectations 2026 Niels Frederiksen, CEO Q&A Session 01 02 03 04 05
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4 HALF YEAR 2026 HIGHLIGHTS
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HIGHLIGHTS 5 Business Highlights: • Tobacco categories show signs of stabilisation • Executing the nicotine pouch strategy • Divesting two fine-cut brands Solid foundations being laid for future success Financial expectations for 2026 maintained 5 Initial execution of Focus2030 strategy progressing well Net sales and profit margins stabilising
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H1 & Q2 2026 RESULTS FURTHER PROGRESS WITH INITIAL FOCUS2030 EXECUTION 6 Net sales Growth, constant currencies H1: -0.3% H1 2026 H1 2025 DKK 4,193m DKK 4,335m EBIT margin Before special items H1: 13.8% (13.7%) H1 2026 H1 2025 DKK 581m DKK 594m FCF before acquisitions Before acquisitions H1: DKK 422m H1 2026 H1 2025 DKK 422m DKK 275m Adjusted EPS DKK H1: 4.4 H1 2026 H1 2025 4.4 4.7 Half year 2026 • Reported net sales include a -3% impact from exchange rate changes. Organic net sales were broadly unchanged • EBITDA before special items was DKK 835 million (H1 2025: DKK 816 million) positively impacted by duty refunds • EBIT margin before special items at 13.8% (H1 2025: 13.7%) negatively impacted by change in amortization of trademarks • Free cash flow as expected positively impacted by recovery of receivables • Leverage ratio at 3.0 times unchanged versus last year Q2 2026 Q2 2025 DKK 2,334m DKK 2,361m Q2: -0.1% Q2 2026 Q2 2025 DKK 388m DKK 389m Q2: 16.6% (16.5%) Q2 2026 Q2 2025 DKK 264m DKK 119m Q2: DKK 264m Q2 2026 Q2 2025 3.3 3.3 Q2: 3.3
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DIVESTMENT OF FINE-CUT BRANDS 7 Contract manufacturing agreement for up to 3 years with 6-month termination notification period BREAK and Moro accounts for almost 4% of net sales and slightly more of gross profit and about 6% of EBITDA Transaction value DKK 1.3 billion. Post tax proceeds estimated at DKK 1.0 billion Further details on financial impacts when transaction completed 7 Agreement signed to divest BREAK and Moro to Japan Tobacco (JT) supporting our strategic agenda and strengthening financial flexibility Closing expected before year-end. Transfer of inventories to JT expected to release an additional cash-flow contribution
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STRATEGY UPDATE AND OUR PRODUCT CATEGORIES 8
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OUR STRATEGIC PRIORITIES GROW HANDMADE CIGARS 9 ACCELERATE NICOTINE POUCHES • Roll-out of Power Brand strategy • MRC & ST gross margin increasing • H1 2026: 51.6% (50.5%) • Market share in key markets* • 12 months rolling 26.5% (27.6%) • H1 2026 26.7% (27.2%) • Stabilisation in most markets • Rare quality issue impacting France negatively in Q2 STABILISE MACHINE-ROLLED CIGARS • Roll-out of Power Brand strategy • Category organic net sales o Increased 6% in H1 2026 in declining market o Share of own brands increasing • Online margins recovered in Q2 • Prioritising XQS • Adding mint to product portfolio • Market share in Sweden >13% • Market expansion (Austria) *7 Key European markets: France, Spain, United Kingdom, Netherlands, Belgium, Germany and Italy
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PRODUCT CATEGORIES: KEY FINANCIAL DATA 10 HANDMADE CIGARSMACHINE-ROLLED CIGARS & SMOKING TOBACCO NEXT GENERATION PRODUCTS Q2 2026 Q2 2025 H1 2026 H1 2025 Net sales (DKK million) 115 106 179 186 Organic growth 8% - -5% Gross margin before special items 42.0% 43.7% 39.6% 34.9% OTHER* Q2 2026 Q2 2025 H1 2026 H1 2025 Net sales (DKK million) 205 207 383 417 Organic growth 0% - -5% - Gross margin before special items 18.0% 19.8% 15.9% 23.7% Q2 2026 Q2 2025 H1 2026 H1 2025 Net sales (DKK million) 876 853 1,536 1,526 Organic growth 5% - 6% - Gross margin before special items 45.0% 42.8% 43.3% 42.7% Q2 2026 Q2 2025 H1 2026 H1 2025 Net sales (DKK million) 1,138 1,195 2,094 2,206 Organic growth -4% - -4% - Gross margin before special items 50.6% 51.1% 51.6% 50.5% *Other includes contract manufacturing, sales of accessories and bar sales delivered
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GROUP FINANCIALS AND COMMERCIAL DIVISIONS 11
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• Exchange rate impacts net sales by -3% in H1 2026 and by -1% in Q2 2026 • Impacts from refund of tariffs in Q2 offset by write-down on obsolete products in Q2 • H1 2026 EBITDA before special items positively impacted by DKK 79 million in other income (duty draw back refunds) • H1 2026 EBIT before special items impacted by DKK 38 million increase in trademark amortization • ROIC at 7.7% reflecting development in EBIT • Leverage at 3.0 times H1 & Q2 2026 12 DKK million Q2 2026 Q2 2025 Change H1 2026 H1 2025 Change Headline Financials Net sales reported 2,334 2,361 -1% 4,193 4,335 -3% Gross profit before special items 1,055 1,063 -1% 1,879 1,930 -3% EBITDA before special items 515 499 3% 835 816 2% EBIT before special items 388 389 0% 581 594 -2% Net profit 217 227 -4% 260 279 -7% Free cash flow before acquisitions 264 119 122% 422 275 +53% P&L details Other income 49 7 79 18 Special items -60 -35 -135 -105 Net financials -53 -67 -119 -140 Key metrics Organic net sales growth -0.1% -4.1% -0.3% -6.3% Gross margin before special items 45.2% 45.0% 0.2%p 44.8% 44.5% 0.3%p EBITDA margin before special items 22.1% 21.1% 1.0%p 19.9% 18.8% 1.1%p EBIT margin before special items 16.6% 16.5% 0.1%p 13.8% 13.7% 0.1%p Effective tax rate 23.0% 23.0% 23.0% 23.0% Earnings per share, adjusted (DKK) 3.3 3.3 0% 4.4 4.7 -6% Return on invested capital (ROIC) 7.7% 8.3% 7.7% 8.3% Leverage ratio 3.0x 2.9x 3.0 2.9
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COMMERCIAL DIVISIONS – KEY FINANCIAL DATA 13 EUB NABROW NAOR Q2 2026 Change H1 2026 Change Q2 2026 Change H1 2026 Change Q2 2026 Change H1 2026 Change Net sales (DKK million) 794 -7% 1,424 -7% 793 2% 1,448 0% 746 2% 1,321 -2% Organic growth -7% -8% 3% 4% 4% 4% Gross margin before special items 45.6% -4.8%p 48.1% 1.7%p 47.7% 1.5%p 46.6% -1.1%p 42.1% 4.6%p 39.2% 0.2%p EBITDA margin before special items 14.1% -10.2%p 16.1% -1.6%p 38.0% 7.8%p 34.8% 4.1%p 18.9% 5.8%p 14.1% 1.5%p Europe Branded • H1 2026: Organic net sales decreasing in all product categories. A rare raw tobacco quality issue in Q2 impacted volumes of machine-rolled cigars in France while NGP continues to be impacted by streamlining of the nicotine pouch brand portfolio. The power brand, XQS, delivered 12% growth. • H1 2026: Gross margin and EBITDA impacted by write-down of obsolete products in Q2 by almost 3%-points. North America Branded & Rest of World • H1 2026: Organic net sales growth of 4% driven by handmade cigars • H1 2026: The positive margin development was driven by a positive price/mix impact in handmade cigars and duty refunds North America Online & Retail • H1 2026: Organic net sales growth reflecting mid-single digit growth for handmade cigars supported by opening of retail stores and commercial execution of the strategy • H1 2026: Margin development reflects commercial execution and refund of tariffs paid last year
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FINANCIAL EXPECTATIONS 2026 14
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FY26 FINANCIAL EXPECTATIONS MAINTAINED 15 REPORTED NET SALES GROWTH* EBIT MARGIN* FREE CASH FLOW* ADJUSTED EPS Range of -2% to 2% * at constant currencies Range of 13.0%-14.5% *before special items DKK 950-1,200 million * before acquisitions and divestments DKK 9-11
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Q&A SESSION 16 Visit our website for more information: st-group.com
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THANK YOU
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2026 FINANCIAL CALENDAR 18 ANNUAL REPORT 2025 Our 2025 Annual Report addresses our financial performance, strategic execution and other important aspects of our business operations. REMUNERATION REPORT 2025 Our 2025 Remuneration Report includes an overview of the total remuneration received by the Board of Directors and Executive Management. 4 March 2026 Annual Report 2025 15 April 2026 Annual General Meeting 20 May 2026 Q1 Interim Report 26 August 2026 Q2 Interim Report 11 November 2026 Q3 Interim Report
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PRODUCT CATEGORIES, LTM TRENDS 19 50% 51% 52% 53% 54% 55% 56% 3750 4000 4250 4500 4750 Machine-rolled Cigars & Smoking Tobacco 39% 41% 43% 45% 47% 49% 2800 3000 3200 3400 Handmade Cigars 25% 30% 35% 40% 45% 0 100 200 300 400 500 Next Generation Products