This is the Swedish Match Q2 2021 telephone conference. With me today are Lars Dahlgren, our President and CEO, and Anders Larsson, our CFO. In the investors section of our swedishmatch.com website, you will find our Q2 investor presentation. We encourage you to have that presentation at hand as you listen to our prepared commentary for this call. Several of the slides in the investor presentation repeat key messages from the interim report that we published this morning. We will focus our commentary on select slides only, and while doing so, we will refer to the applicable page number of the presentation. After our prepared commentary, we will be taking questions. During today's call, there may be certain comments that constitute forward-looking statements and are subject to risks and uncertainties. Management believes that these statements are based on reasonable assumptions, but can give no assurance that expectations will be achieved. Risk factors are outlined in today's interim report, as well as the annual report, which are available on our website. Swedish Match assumes no obligation to update information concerning its expectations. A recording of this call will be made available on the Swedish Match website. I will now hand over the word to Lars. Thank you, Emmett, and good afternoon, everybody. With today's interim report, Swedish Match reported its eighth consecutive quarter of double-digit year-on-year operating profit growth in local currencies. For the quarter, both sales and operating profit in local currencies grew for all of our product segments. In absolute terms, the smoke-free product segment was the largest growth contributor, driven by an excellent performance from ZYN nicotine pouches in the U.S. and a solid performance in Scandinavia. Adjusted for acquisition effects and income of temporary character in the light segment, the steepest local currency sales and operating profit growth in percentage terms was delivered by cigars, where Q2 of the prior year represented a relatively soft quarter. For smoke-free, both sales and operating profit grew by 18% in local currencies, resulting in an overall operating margin that was virtually unchanged. With significantly higher market investments relating to nicotine pouches in the U.S. and Scandinavia, as well as in other markets, this demonstrates the operating leverage and growth potential in our largest product segment. Strong volume growth for ZYN nicotine pouches across the U.S. market continued to be the key growth driver for the smoke-free segment, but also the more traditional smoke-free products in the U.S. portfolio contributed with good year-on-year earnings development. In Scandinavia, the local currency sales growth was driven by nicotine pouches, and for earnings, relatively strong profit development for snus more than compensated for the increased market investments relating to nicotine pouches. In Q2 of the prior year, the COVID-19 situation resulted in unusually low shipments of Natural Leaf cigars and some additional costs. In this year's Q2, very strong demand for Natural Leaf varieties, improved pricing, and continuing progress in raising productivity at our Dominican facility all contributed to the strong increase in sales and profitability for cigars. For lights, underlying performance was solid, and the reported numbers further benefited from the inclusion of a recent smaller acquisition, as well as income from continued land sales and the recovery of indirect taxes in Brazil. Strategically, Swedish Match aims to actively invest and have a leadership presence in those categories and segments where we see the best growth potential. With a keen focus on consumer needs and societal trends, our targeted efforts have resulted in a portfolio of businesses with highly attractive prospects. The second quarter is not only a good illustration of our abilities to compete effectively, but also of the attractive prospects for several of the categories in which we operate. The U.S. nicotine pouch market close to doubled in size compared to one year ago, and relative to the first quarter, the sequential growth remains strong. In Scandinavia, over the past few years, the smoke-free category has become more and more unisex, with accelerated category growth as a result. In the U.S. market, despite the easing of COVID-19 related restrictions, the category growth for cigars in Q2 held up well with more and more consumers transitioning to the Natural Leaf segment, which represents the majority of Swedish Match's portfolio mix. With the generally improved COVID-19 situation during the quarter, we were able to accelerate our marketing and consumer engagement activities in several markets and thereby better match investments to the growth prospects of our businesses. For ZYN in the U.S., we attended more events and expanded our loyalty building programs to both consumers and retailers. Encouraged by the consumer traction in initial geographies during the quarter, we rolled out ZYN Menthol and ZYN Chill product nationally. In Sweden, we introduced a new modern range of nicotine pouches under the VOLT brand family, along with an ambitious activity plan. Swedish Match will continue to invest in brand building awareness and loyalty with consumers and retailers, and not the least for ZYN in the U.S., our marketing calendar for the upcoming quarter is ambitious. By that, we will now turn to some more detailed commentary and continuing with the ZYN and starting on page eight. Slide eight of the presentation. This chart illustrates the impressive trajectory of ZYN shipment volumes on a 12-month rolling basis. During the second quarter, we delivered an all-time high volume of 42.5 million cans, which brought the 12-month rolling shipment volume to close to 143 million cans, of which close to 80 million cans were sourced from the first six months of this year. Our staff in the Owensboro, Kentucky facility has done an outstanding job in coping with the elevated demand, while at the same time delivering on the capacity expansion projects in line with or better than original plans. At this point, we do not anticipate that our manufacturing capacity will be a constraint in our ability to meet further growth in demand. Moving to slide nine, this graph illustrates the volume development for all the brands included in the nicotine pouch category in the U.S., as measured by MSA data, which captures deliveries from distributors to retailers. The MSA data is helpful in understanding market trends, especially when viewed over longer periods. The 13-week periods, largely representative of calendar quarters, are somewhat volatile as they are susceptible to waves of distribution expansion and promotional offerings that cause retailers to stock up. In annualized terms, with the 13-week MSA data as a basis, we estimate the Q2 category size to exceed 250 million cans. While the data indicates a close to 20% category growth in Q2, it is important to view this against the background of heavy distribution builds and aggressive price promotional activity by competition. In that respect, it's very encouraging to note that the steady volume trajectory for ZYN has continued despite relatively modest store distribution expansion for ZYN. On a sequential basis, the MSA data shows a slight market share decline for ZYN in Q2. However, this decline is not necessarily fully representative of market share based on consumer purchases, and particularly in terms of market share measures based on dollar share. Moving to slide 10, which provides some further details on the trajectory for ZYN based on the same MSA data. The graph to the left illustrates the store distribution for ZYN based on isolated 13- and 26-week periods. The graph to the right shows the velocity for ZYN measured as cans per store per week on a 13-week trended basis. The strong volume performance for ZYN during the quarter was partly enhanced by the national rollout of Chill and Menthol varieties. Also, when adjusting for this, ZYN continued to grow its velocities on a sequential basis. With the store count for ZYN being up only marginally from Q1, we are pleased to note that the sequential velocity growth for ZYN was the strongest across all brands captured in the MSA database. Turning to slide 11, the nicotine pouch category continues to demonstrate its premier position among next generation products, and not the least with its appeal among cigarette smokers that seek better alternatives. Based on MSA data, our estimate is that annualized year-to-date volumes for nicotine pouches measured by cans correspond to close to 7% of 2020 cigarette volume measured by packs in the Western region. Despite being present in the rest of the U.S. for only two years, the corresponding number on a national basis now exceeds 2%. Consumer research confirms that nicotine pouch consumers gradually increase their weekly consumption as they transition from other tobacco products, and that current weekly consumption levels remain well below those of cigarettes. Our estimate is that the number of nicotine pouch consumers correspond to about 10% of the number of cigarette consumers in the Western region, and that on a national level, that number has already reached 5%. With the superior functional and emotive benefits, there exists significant potential for further increased penetration, as well as average consumption for nicotine pouches. With that, I'll hand over to Anders. Thank you, Lars. Turning to smoke-free in Scandinavia on slide 12. With continued COVID-19 related restrictions and timing effects on shipments, it remains a challenge to determine the underlying growth of the Scandinavian smoke-free market. However, as Lars pointed out, we are encouraged by the strong market dynamics, and our estimate is that the Scandinavian smoke-free market reached double-digit consumption growth in volume terms for the six-month period ending June 30. While the growth has been driven by nicotine pouches, it is positive to note the resilient trajectory for more traditional products. One contributing factor to the good development, we believe, is the lowered Norwegian excise taxes at the beginning of the year, which have resulted in a notable decrease in retail prices. Slide 13 provides more details of the Scandinavian category, trend the development on the 12-month rolling basis. As the picture depicts, nicotine pouches have provided incremental growth to the category with the broadening of the consumer base as the range and types of products cater to more diverse preferences and needs. Of particular note, more females have now found a viable alternative to the combustible cigarettes, and as cigarette consumption historically has been higher for females, we view this as a very positive development from both a harm reduction and a commercial perspective. On page 14, we look at snus isolated. According to Nielsen, our share within the snus category in Scandinavia has been relatively stable, and we remain the clear number one player, more than twice the size of the next largest competitor. While the declining percentage of snus relative to the entire smoke-free category is apparent, as illustrated to the right on the slide, this needs to be considered in the light of the very strong overall category growth. Moving on to page 15 and nicotine pouches in Scandinavia. The category for nicotine pouches remains highly competitive, and over the past year, the level of activity from competition has been extremely high in terms of both new brands and variants and promotional offerings. This high level of activity has helped to support category growth, and according to Nielsen, nicotine pouches now represent close to 21% of the Scandinavian smoke-free market. While, our volumes of nicotine pouches have been very strong, they have yet to match the growth of the overall category. The introduction of the Volt series is one initiative that we believe has prospects to make the Swedish Match assortment even more relevant for consumers. Apart from consumer activations at physical venues, the digital engagement has been extensive. Turning to moist snuff in the U.S. on page 16. Our moist snuff positioning in the value segment is serving us well as we note the growing share within the total moist snuff market. As for a number of products within the U.S., volume development was unusually strong in the third quarter of 2020, implying tough comparisons for the coming quarter, which was also the case for our chewing tobacco business. With sustained momentum for our Longhorn brand, our moist snuff volumes have grown year-on-year despite the discontinuance of certain products within our range. We also note that recently a large competitor repositioned a brand to seemingly match Longhorn's EDLP price positioning. Turning to cigars on page 18, which illustrates several interesting aspects of the cigar category based on data from the MSA set, measuring shipments from distributors to retail. As the bars in the middle show, the total category continued to exhibit good growth in the second quarter when considering that across several parts of the U.S., COVID-19 related restrictions have been eased. The Natural Leaf segment stands out as the key driver of the category growth, which is in line with long-term trends. With close to 60% of our portfolio in the Natural Leaf segment, Swedish Match is very well positioned to capture growth opportunities as consumer and segment dynamics play out. We manufacture our Natural Leaf varieties in our facility in the Dominican Republic, and over the past 15 months, keeping up with market demand has been a challenge. Production of Natural Leaf cigars at our Dominican factory reached an all-time record in the second quarter. With the strong growth trends within the cigar category, we need to balance our resources, and fully meeting demand remains a challenge. Year-on-year, our cigar market share increased as we have been able to compensate for production constraints on the Natural Leaf side with increased HTL production. In the second quarter, with the improved production situation, shipment volumes grow for Natural Leaf cigars, and we also noted a sequential improvement in our market share within the Natural Leaf segment. Within HTL, we noted a sequential share decline in the quarter, but it should be noted that this was partly attributable to very limited shipments of our low- price offering Jackpot, which was one of the contributing factors to the improved price mix in our cigar segment. On slide 20, we have summarized relevant metrics from our interim report relating to finance cost, our financial position, and earnings per share. Net finance costs during quarter were substantially flat versus prior year on somewhat higher interest rates and lower returns on surplus cash, which was partly offset by lower average debt. The weighted average interest rate of our loan portfolio at June 30 was 2.07%, virtually unchanged compared to the end of 2020. Our net debt to EBITDA for the 12-month period ending June 30 was 1.9%. During the first six months, new bond loans of SEK 1.6 billion were issued. Repayments of maturing bond loans amounted to SEK 750 million, and early repayment of short-term bond loans amounted to SEK 716 million. During the remainder of 2021, SEK 803 million of bond debt falls due for payment. As of June 30, 2021, Swedish Match had SEK 15,337 million of interest-bearing debt, excluding retirement benefit obligations, but including the recognition of lease liabilities of SEK 283 million. The capital duration was 3.9 years, with 98% of the portfolio subject to fixed interest rates. The EPS bridge illustrates the components of our 26% year-to-date growth in adjusted EPS. Apart from the after-tax effect of our increased operating profit, the reduced number of shares had a meaningfully positive impact. The adjustment highlighted in the EPS bridge refers to the after-tax effect of settlement income related to a previously ongoing arbitration. During the first half of the year, we made share repurchases in the amount of SEK 1.46 billion, buying 18.8 million shares at an average price of SEK 72.16 per share. Finally, regarding currencies, if current exchange rates prevail, we will continue to face some currency headwinds over the next quarter. For reference, the Q3 2020 average exchange rate for the US dollar was $8.83. For the NOK, it was NOK 0.97, and for the Brazilian real, it was BRL 1.64. With that, operator, we can open the floor for Q&A. Thank you. Ladies and gentlemen, if you do wish to ask a question, press zero one on your telephone keypad now. That is zero one to register for a question. We have a question from the line of Niklas Ekman from Carnegie. Please go ahead. Thank you. Yes, I have a couple of questions, if I may. Firstly, on the U.S. nicotine pouch market, can you tell us a little bit more about the pricing environment? You mentioned heavy campaigns by your competitors, and I know you mentioned earlier here with Velo selling at $0.99 per can on having quite heavy promotions. How aggressive is DRYFT in this market? I'm also curious if you could just elaborate here, is this purely when they are aggressive on campaigns or when campaigns ease, do they go back to similar prices as ZYN, or are they permanently selling at a lower price compared to ZYN? If you just could elaborate here on the pricing environment, that would be very helpful. Sure. Hi, Niklas, this is Emmett. If we start off with our own products, we have had some promotional activity for visibility and trial generation for our menthol and chill varieties, consistent with the national expansion. We've also have had some targeted accounts that we have had some other price promotions on. Effectively, our consumer price has been largely stable on a nationwide basis. If you move on to the large cigarette companies that are trying to build a presence in the U.S., for the most part, you are still seeing a lot of those promotions with a free can offer if you buy a competitor's product or a cigarette product, $0.99 offerings as well, at different price points, let's say $1.99 or $2.99. Oftentimes when they go off of the promotion, which usually lasts maybe three or four weeks in a large chain, the price does revert to a somewhat higher level, but there are differences in pack size as well, between ZYN and the competitor's product that happens. I would say for the most part, it's been pretty stable in terms of the high level of promotional activity. One clarification, you asked about the DRYFT. DRYFT has been acquired by BAT, it hardly exists anymore as a DRYFT brand, migrated that to Velo. Yeah. Sorry. Thanks for clarifying that. I actually meant Rogue. I meant to ask about Rogue. Because I see that they are also gaining some market share here, I'm just curious if they are doing this with promotions or on kind of on quality and distribution. If we look at the data that we're getting from outside sources on Rogue, we do see a little bit more stable pricing, more in line with what Swedish Match is doing. Those price levels do tend to stay a little bit higher. Okay. Thank you so much for clarifying. Secondly, I'm curious about the European Commission's TPD2 application report that was out here in late May. I know this report, it didn't contain very much details here, but they mentioned nicotine pouches as using a legal loophole to circumvent the EU ban on snus. Are you seeing any serious action from the European Commission to move against nicotine pouches. On the other side, I know that several markets in the Nordics and Eastern Europe have allowed nicotine pouches. If you could just elaborate on the regulatory environment in Europe, that would be very helpful. Generally, I'd say the Commission report didn't contain any surprises. You were aware of and we pointed to the fact that, you know, they show interest in nicotine pouches as a category, which is not surprising given that we see increasing consumer demand across several markets. I mean, it's going to be a political process, but we consider it to be the more likely course of action here is that nicotine pouches will be regulated at some point in TPD and so to say, properly regulated. You may recall that, you know, Commission reports on e-cigarettes shortly prior to the revision of the Tobacco Directive the last time, they were very negative as well. Actually, the Commission didn't want to see them as on the market at all, unless they were classified as pharmaceutical products. That's very clear. Thanks. Finally, I'm just curious about the Scandinavian nicotine pouch market. You mentioned here launching Velo in May with increased marketing efforts, and we see your margins trending a little bit lower here as well for this segment. Still, your market share in nicotine pouches is down nearly 1 percentage point. Any particular reason for a declining market share? I mean, it's a mix of things. This is Nielsen data that doesn't capture, for example, the e-com channel where actually we have a relatively higher position compared to the Nielsen data. Another factor is that we have lost share in the Danish market, which actually is becoming big enough to make a difference on the total share. With a relatively small position from the start, the ZYN franchise hasn't been able to defend its position properly against consumers in the more regulated environment that we see in the Danish market at the moment now, where, for example, there is a prohibition on price display. Okay. Okay. That's very clear. Thank you so much for taking my questions. Thank you. Our next question comes from the line of Fredrik Ivarsson from ABG. Please go ahead. Thank you. Hi, gentlemen. Couple of questions from my side as well. First on ZYN in the U.S., if you can give some feeling for the magnitude of the gross margin expansion that you mentioned, that would be helpful. Second one on the marketing investments as well, what do you expect in terms of acceleration of those in Q3? Thanks. If you look at the, if you look at the smoke-free segment in the U.S., in local currency, while moist snuff and chewing tobacco also reported improved profits and growth for moist snuff, the delta is driven by nicotine pouches. While the average price is slightly down year-on-year, given what Emmett spoke about some promotional activity related to the national expansion and some other targeted e-efforts. We've also seen a positive development in the cost of goods, given that we have ramped up our output on a year-on-year basis. There is a relatively tight correlation between volume development and gross profit when it comes to the nicotine pouch development. Part of that then has been offset by increased marketing investments. This is completely in line with our plan. We pointed to that after Q1, we're very pleased to see that we've been able to step up our activities largely in line with what we had planned. In that calendar or plan, planning for marketing activities, there is a further ramp up in activity level planned for the third quarter. You should expect higher marketing investments relating to ZYN in the U.S. both relative to the second quarter and the prior year. Okay. Fair enough. Thank you. Our next question comes from the line of Gaurav Jain from Barclays. Please go ahead. Hi, good afternoon. Thanks for taking my questions. I have three questions. One is that, you know, on that slide number 11, I think you mentioned that, you know, the smoker share in Western region is 10%, while the consumption share is 6.8, and nationally it is 5%. How soon do you think that gap closes based on the experience you have had with ZYN so far? I mean, if you look at, you know, as you know, we've been in the Western region since mid of 2016. We started off with relatively limited number of outlets. Then if you look at the expansion markets, apart from very isolated presence in some geography. We were, we went nationally in April of 2019. That's the time difference. When we look at the penetration, when we look at the velocity of cans per store per week, if we look at the entire category and we compare the Western region to the expansion markets and look at the number of months after launch, we can see that in aggregate, the expansion markets are trending up at a notably higher average velocity. ZYN performance in isolation is actually very close to the Western region trajectory. This is of course a consequence of us facing competition in the expansion markets that we didn't face at the beginning in the, in the Western region. This data indicates that if this continues, and we believe there are good reasons why it could continue, that the penetration in terms of number of cigarette smokers that we're estimating to be 10% in the West, that we could see that sooner in the rest of the country compared to what we experienced in the West. Of course, cigarette smokers have other alternatives as well to choose from, so there are no guarantees that this trend will continue. Sure. thank you. My second is, you know, last year in Q4, if I remember correctly, you had 3 lesser shipping days versus Q3, which was impacting your Q4 sequential growth for ZYN. Is there a similar pattern to shipping days this year as well, so that the phasing of ZYN through the rest of the year could be, you know, that Q3 is high and then Q4 is, you know, flat or down? Anders here. I think it's similar. Bear in mind that you have kind of the seasonality around the Christmas and so forth in the fourth quarter as well. Okay. Sure. You know, recently we have seen, you know, one of your larger competitors acquires, you know, a couple of companies in the pharma space, one of which is in the, you know, the oral sort of pouch business, and every company is talking of like a beyond nicotine strategy. How are you thinking of these developments in the rest of your peer group? I mean, Swedish Match has done limited tests with what you can call beyond nicotine, as we spoke about before with CBD pouches in the Swiss market. For now, we have discontinued those tests. Of course, as any company, we don't rule out business development opportunities in the future that build on our core and are adjacent to our core. When and if we would embark on any such initiatives, we will talk about it then. Okay. Well, thanks a lot. Thank you. We have a question from the line of Faham Baig from Credit Suisse. Please go ahead. Good afternoon, guys. Thanks for the question. I will also ask three, if that's okay. The first one really is ZYN in other markets, which in this question will also include Denmark, following on from the earlier question. What is the strategy in Denmark? Because it is seen as a relatively small market today, but one that has significant expansion. I believe on the last conference call you compared it to Norway, and what the category there was six to seven years ago. I'm a bit surprised that your share, which as you said, was already 1%-2%, went to, let's say, 5% in Q1, and now you're ceding share again. What's the plan in Denmark? Or do the regulations restrict you from being a real competitor in that market going forward? Just quickly on following on from that, I know it's a sort of second quarter, third quarter running where investments in other markets within the smoke-free division have continued at a pretty steadily high pace. What fruits are you seeing from that investment? If you could, or afterwards, are you likely to see from that investment? If you could discuss some of those markets there as well would be helpful. I mean, when it comes to Denmark, it's fair to say that the positioning that we have had with ZYN that where we, if you recall, we made an adjustment to the price level to offer more attractive price for value equation to the consumer. That was successful in building up ZYN from a very low base to decent traction. There was some competitive reactions that slowed down the trajectory. With the regulatory developments that are very new, it's been challenging to sustain that advantage to the consumers. That particular strategy in this regulatory environment where effectively displaying prices to consumers at retail that were attractive, I mean, that simply doesn't work. That doesn't mean that we are giving up the Danish market. the contrary, as you point out, we see it as a very big opportunity in terms of a future market. We will, you know, able to review the situation and try to develop our strategies accordingly under the new circumstances. When it comes to other markets in general, we're pleased to see that not the least the easing of COVID restrictions has implied that we've been able to continue to invest. Just as an example, there's something going on on a fair in the U.K. today that I just saw a internal posting on that looks very good. Those type of activities, of course, are relatively costly in relation to, you know, the current volume performance. We believe that the modern oral category has demonstrated its proof of concept, not the least in the U.S. market. The trends that we see in terms of the category growth, for example, in the U.K. market that doesn't even have a tradition of oral tobacco are also very encouraging. In terms of the benefits that we expect is to with our focus and our core competencies and our superior products to be able to carve out a meaningful position in these other markets. It is a, it is a long-term investment. We do this for the benefits of the long term. Thanks. This is a slightly broad question. Hopefully you can help us, but I just want to understand the nicotine dynamics in the U.S. as the market is opening up, as people are going back to work, getting out and about, et cetera, post-lockdowns, how are you seeing the nicotine pouch category develop? Is it a positive? Is it a negative? Are other categories maybe like e-vapor benefiting? Any insight you could give on current trends would be helpful. I mean, generally when COVID hit, so to say, for some categories, it was easier to identify and depict a COVID effect. The clearest example in the U.S. market, I would say, is chewing tobacco that after many, many years of a steady decline, showed full resilience in terms of the category growth. When it comes to nicotine pouches, the growth wasn't as been even before COVID, of such a magnitude that to the extent there were any effects, they were very hard to isolate. Actually, if we look at the trends that we had, they more or less continued in terms of the category growth. It's possible that in a year's time or so when this thing is fully behind us, so to say, hopefully, that we will be able to run some numbers and come up with some intelligent analysis and provide an answer to your question. At this point, I'm afraid, you know, we haven't been able to conclude any effects of that nature. Okay. One more final question on cigars. The market slowed quite strongly Q1 on Q2. I think it's over, up over 20% in Q1 and only 4% in Q2. I guess there is an element of now lapping difficult comparatives, but is there anything you're likely to call out to why the market might now be slowing a bit? Is it just simply the typical comps? Is there an element of price elasticity? Anything you could call out there? The main thing there is that, if you remember, Q2 for cigars, there, we did see an uptick, which last year, which we at least partly attributed to COVID. You're kind of having a year-on-year comps, and now you have the opposite with the releasing restrictions there. Generally, a word of caution on kind of quarterly comparisons in MSA data in general, and also that is certainly true for cigars. Also in a situation where different manufacturers, not only Swedish Match, have been facing different types of supply issues and production constraints, it's difficult to draw any exact conclusions. We were pleased to see that the very strong demand for cigars is holding up despite the easing of restrictions. In particular, we are pleased to see that there is very strong growth in Natural Leaf cigars where Swedish Match overskews its portfolio. Thanks, Lars. Thank you. Our next question comes from the line of Mirco Badocco from Bank of America. Please go ahead. Yeah. Thanks. I guess, you know, two questions on my side. The first one of following up on cigars. You flagged you had a record quarter in terms of capacity for Natural Leaf and production, you know, in Dominican Republic, but you still, you know, weren't able to meet the demand. Is this the, you know, the cap on capacity you have or can we expect you could increase capacity if needed? The second one is more general on raw materials and input costs. We are hearing other, you know, consumer staples companies talking about input cost inflation, also flagging pressure from freight and logistic costs. I wonder if you can add, you know, any color on this. Is it a problem for you or not really? Yeah, Anders here. I mean, we are doing what we can. As you've seen in the numbers, we are, we had a very good quarter production-wise, and we are doing everything we can to increase that level. We hope to increase it even further. With the strong growth for Natural Leaf, it's hard to say when we can meet, fully meet demand, so to say. In terms of raw material costs, we notice that as well, but it varies a bit across the businesses. I would say it's more pronounced for our lights business, for example, than compared to cigars. Also, with the higher freight cost. We see it, and notice the increase, but not of a big magnitude. We're also taking pricing in our lights business to compensate for some of these cost increases. naturally it's not always a perfect match in, on timing in terms of when the costs hits your cost of goods and timing when you can compensate with price. Yeah. Understood. Nothing, you know, big to flag there, I guess. You know, anything else on other input costs? Now I'm thinking about plastic, for example. Anything you want to flag on raw materials as well? Yeah. I mean, the plastics use, I think, Lars noted the most notable changes are on nylon pricing for lighters. Lighters. If you kind of derive profitability for our snus business in Scandinavia and our other oral tobacco products, plastics as a component is relatively small. Even a notable increase in the plastics prices wouldn't have a huge impact. It's also good to remember that most of the products we sell for nicotine pouch or nearly all nicotine pouches and for snus products, moist snuff, chewing tobacco, cigars, they're generally produced in the same geography that they're sold in large part. When we talk about freight and those type of charges, you're really talking about within a regional area, not across regional areas. In the U.S., it's probably a bit more pronounced in terms of the increases because the tax structure is different in the U.S. than it is in Europe and in Scandinavia affecting the pricing. Understood. Thank you. Our next question comes from the line of Jared Dinges from JP Morgan. Please go ahead. Hey, guys. I just want to come back to U.S. ZYN and, you know, you talked about the rollout of the Chill and Menthol flavors this past quarter. Can you quantify how big the benefit was from, let's say an inventory build there? Just trying to get an idea of your sell out versus your sell in. Sort of related to that, you guys touched on it a bit, what are your expectations for revenue per can going forward? You know, you talked about it being down a bit year-on-year. Should we expect that to continue, kind of stabilize at this level or maybe even dip a bit further? Thanks. Yeah. As regards the first question there on the rollout, it's not an exact science to calculate the magnitude, but my sense is about 2 million cans in pipeline volumes from the rollout. Then in terms of pricing, I think it's fair to assume that we will increase the elements of promotional spending, but not at the magnitude that we see from our competitors with the very heavy discounting. We talked about increases in our loyalty programs, including in our merchandising and trade loyalty programs. In there is an off-invoice element, which affects the manufacturer's take. Got it. That's very clear. Thank you. Just on the new varieties, as we pointed out in the prepared script, even if you exclude these varieties completely, the velocities for the ZYN family continue to grow also on a sequential basis and actually more so, and the volumes grow more than the store count. Of course, that's not a fair calculation given that they existed to some extent. Stripping them out completely is very conservative because you can assume that there was some growth also. Also, some of the products that were sold in this quarter have been consumed, of course. Got it. Actually, just a quick one about, you know, you guys talked about the users basically being ahead of kind of your velocities compared to cigarettes. You know, when you've been having this velocity growth, do you think it's more from new users entering the same stores? Or is it more from, you know, your current users increasing their usage per week? It's a combination. I'd say the main factor is new users. Our market research confirms also that consumers consume more on average. We're well below the number of average cigarettes packs per week and well below other benchmarks like moist snuff, number of cans for moist snuff user or snus consumption in Scandinavia. That's why we see kind of growth from two dimensions here in terms of both attracting more and more users and also increasing consumption amongst the existing users. Got it. Thank you. Our next question comes from the line of Sanath Sudarsan from Morgan Stanley. Please go ahead. Hello. Good afternoon, everyone. Two questions from my side. First one, Lars, could you possibly articulate your strategy in Scandinavia better, please? I mean, it seems to be an ongoing share loss due to underperformance in the nicotine pouches business, which where you haven't really been able to gather momentum, and then also from time to time in specific snus, snuff subcategories. The market, as you said, is being growing very robust. You know, what do you think about the run rate we should expect for Swedish Match going forward from these markets? Secondly, coming back to the U.S., I take nothing away from, you know, ZYN and the product you built or the medium. You know, the medium to long term, is there a risk that your current product advantage is taken away, say, in the next 12, 18 months post PMTA, especially by on! which is a very similar product to you? I'm interested to hear you on how long you can stay away or to an extent ignore the strong price promotion by peers. Would you be willing to sacrifice much more of your current high margins in ZYN to retain your strong share in the category? Thank you. I mean, if I start with the second question, Swedish Match, we have a very attractive assortment in the market today, for which we have applied for PMTA applications for all the current SKUs, and that score very well in market research, relative competitive offerings and which where we clearly hold up very well on the same store basis, even though we have not at all the same type of pricing strategy, generally speaking as competition. In addition to that, Swedish Match has development projects, and you should expect Swedish Match to secure further PMTA approvals beyond the current versions. To the extent that competition want to improve their product portfolio, they need to go through the same processes. We're very confident in our ability to work with the type of data that the FDA requires and also with our track record in terms of relationship with FDA, not the least on being the first with both MRTP and the PMTA in the smoke-free space. When it comes to Scandinavia, the quickest summary of the strategy is to protect the profitability and grow the profitability in tobacco and snus and invest for a stronger position in nicotine pouches. While I agree that we haven't reached our objectives when it comes to market share of nicotine pouches, if you study the market in details, you'll see that it's extremely competitive and there are a lot of offerings, and there is actually only one competitor of ours who has been growing share. From that perspective, you can choose to see the glass half full, but we're far from satisfied with the current performance. But it boils down to being able to supply the consumers with the most attractive portfolio of products, and that goes for brands, and that goes for product type and characteristics and highest quality. Some of these issues, they do take some time. We do suffer a bit from having not had the first mover advantage in the Scandinavian market, and there is a history to that where we had to focus very much on the U.S. situation, which we believe was the right choice for the shareholders. It is a very important topic to the group to improve our position in Scandinavia, and I understand from your perspective that it sounds repetitive, but there is also a reality out there that some of the things we're doing are things that are not turned overnight. If you take the Volt launch as one example of the type of things that we're doing, you know, that's not the type of initiative where you see an immediate effect in the marketplace and on the market share. Actually, we believe that the performance is a little bit better there than Nielsen does indicate, given that it's done very well, not the least in digital channels. Lars, can I just extend that logic one more to the U.S.? You know, do you see the trend repeating with the first mover advantage with ZYN? I mean, I'm not sure how much of the product similarities are there with your peers in Scandinavia and how that dynamic has helped or not helped. Any read across in the U.S.? I mean, there is a benefit clearly with first mover advantage in general, and that you see, as you know, in many consumer goods categories and markets. With that said, in the long run, it's about the complete offering in terms of product quality and your brands. That's where in the U.S. we feel very good on both those parameters. Our current products score very, very well. In Scandinavia, we feel very confident about our capabilities on those parameters, we're not there yet. Thank you very much. There are no further questions registered at this time. I hand back to the speakers. We thank everybody for joining today's call and remind you that the release of our Q3 interim report will be on October 27th. Thank you.