Scandinavian Tobacco Group A/s · OMXCOP:STG
Scandinavian Tobacco Group A/s — Investor Day (November 2025)
59 slides from Scandinavian Tobacco Group A/s's investor day presentation, Nov 20, 2025
Slide 1: Capital Markets Day 20 November 2025
CAPITAL MARKETS DAY 20 NOVEMBER 2025
Slide 2: Capital Markets Day Agenda
CAPITAL MARKETS DAY AGENDA 1400 - Welcome 1515 - Strategic Priorities Torben Sand, Director of Investor Relations & Communications Régis Broersma, Chief Commercial Officer 1405 - Launch of Focus2030 • Accelerate Nicotine Pouch business Niels Frederiksen, Chief Executive Officer 1525 - Delivering Val
Slide 3: Important Disclosures
IMPORTANT DISCLOSURES FORWARD LOOKING STATEMENTS 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, result
Slide 4: Focus2030: The Next Strategic Chapter
FOCUS2030: THE NEXT STRATEGIC CHAPTER Capital Markets Day 2025 4
Slide 5: Our Purpose and Vision Remain the Same
OUR PURPOSE AND VISION REMAIN THE SAME PURPOSE CRAFT THE RITUALS THAT MAKE US MORE VISION BE THE UNDISPUTED & SUSTAINABLE GLOBAL LEADER IN CIGARS Capital Markets Day 2025 5
Slide 6: Focus2030: Sharpening Our Focus & Raising Execution
FOCUS2030 SHARPENING OUR FOCUS & RAISING EXECUTION Build a more consumer-centric organisation and larger power brands Simplify our portfolio & business Invest in opportunities where we have the right to win Invest in people, data, digitalisation & business analytics Capital Markets Day 2025 6
Slide 7: What STG Will Look Like in 2030
WHAT STG WILL LOOK LIKE IN 2030 Sustainable and stable Machine-Rolled Cigar and Smoking Tobacco business primarily focused on Europe Growing an increasingly attractive Handmade Cigar business anchored in the U.S. – but with a stronger global footprint Larger Nicotine Pouch business with upside oppor
Slide 8: Rolling Towards 2025: Significant Achievements
ROLLING TOWARDS 2025 WE MADE SIGNIFICANT ACHIEVEMENTS… Strengthened our platform Turned Growth Enablers into Delivered substantial through acquisitions outcomes Shareholder Returns MOSI, Room101, La Perla NPs & retail expansion added to Returned more than DKK 5 Habana, Alec Bradley, XQS & portfolio
Slide 9: … With Challenges Along the Way
… WITH CHALLENGES ALONG THE WAY Financial outcomes fell short of Machine-Rolled cigars underperformed Supply chain challenges ambitions against expectations Affected market share and product Lower than expected as a result of Declining market shares and volumes as availability after the pandemic and
Slide 10: Where We Are Today
WHERE WE ARE TODAY Significant Market leader Unmatched Market leading Global pipe leader growth in in Handmade HMC distribution positions in and selected Nicotine Pouch Cigars in the network in the MRC in strongholds in business – 4% U.S. U.S. Europe smoking tobacco of total NS Dynamic market enviro
Slide 11: Focus2030: Our Three Strategic Priorities
STABILISE MACHINE-ROLLED CIGARS GROW HANDMADE CIGARS FOCUS2030: OUR THREE ACCELERATE NICOTINE POUCH STRATEGIC PRIORITIES BUSINESS
Slide 12: Strategic Priority: Stabilise Machine-Rolled Cigars
STRATEGIC PRIORITY STABILISE MACHINE-ROLLED CIGARS VALUE CHAIN OTHER CATEGORIES COSTS SIMPLIFY Optimise and simplify value Maximise earnings in other Drive optimisation and Continue to simplify brand chain to stabilise earnings markets, categories (fine cut profitability improvements portfolio, form
Slide 13: Strategic Priority: Grow Handmade Cigars
STRATEGIC PRIORITY GROW HANDMADE CIGARS PRODUCTION SIMPLIFY SALES CHANNELS RETAIL Optimise production lines Continue to simplify portfolio Leverage existing strength for Support own brand for value vs. premium and streamline ways of unified approach – especially activation and improve cigars working
Slide 14: Strategic Priority: Accelerate Nicotine Pouch Business
STRATEGIC PRIORITY ACCELERATE NICOTINE POUCH BUSINESS CAPABILITIES SALES CHANNELS EXPANSION Strengthen internal Leverage existing strength Explore entry into additional capabilities in R&D and within sales channels for markets pending regulatory flavours unified approach developments KEY MARKETS MAR
Slide 15: Focus2030 Strategy Overview
FOCUS2030 STRATEGY OVERVIEW Capital Markets Day 2025 15
Slide 16: Deep Dive into the Strategic Priorities
DEEP DIVE INTO THE STRATEGIC PRIORITIES Capital Markets Day 2025 16
Slide 17: Stabilise Machine-Rolled Cigars
STABILISE MACHINE-ROLLED CIGARS
Slide 18: Strategic Priority: Stabilise Machine-Rolled Cigars
STRATEGIC PRIORITY STABILISE MACHINE-ROLLED CIGARS VALUE CHAIN OTHER CATEGORIES COSTS SIMPLIFY Optimise and simplify value Maximise earnings in other Drive optimisation and Continue to simplify brand chain to stabilise earnings markets, categories (fine cut profitability improvements portfolio, form
Slide 19: Key Markets in Europe Will Continue to Decline
KEY MARKETS IN EUROPE WILL CONTINUE TO DECLINE Key takeaways MRC Key Markets in EU Volume 2024 • Key markets continue to decline at higher rate than rest of the world • 4% CAGR volume decline (2022-2024) • Year to date 2025 shows a better development than historical decline rate 4.0 billion • Higher
Slide 20: MRC Traditional Segment Softening
MRC TRADITIONAL SEGMENT SOFTENING MRC Volume – 7 Key STG Markets in Europe, 2024 7% Key takeaways 17% • Traditional segment of no filter and no flavor products is under pressure and losing its importance in consumer repertoire across MRC in EU 4.0 billion 17% • Filter and flavor products are winning
Slide 21: STG Is No.1 Player in Europe for MRC
STG IS NO.1 PLAYER IN EUROPE FOR MRC MRC1 Market share in key European markets France ~45% Spain ~25% Global #3 Belgium ~80% Italy ~10% Western Europe #1 Netherlands ~40% UK ~45% Asia Pacific #4 Germany ~10% Total 27% Middle East #2 and Africa Source: 1 MRC - global volumes calculated by taking out
Slide 22: Well Positioned Across Everyday Smoking Moments
WELL POSITIONED ACROSS EVERYDAY SMOKING MOMENTS MRC Market Landscape Brands positioning Strong in Everyday Smoke platform in Netherlands, its biggest market. Simple Smoke & Everyday platforms across its 10-20% biggest brand markets (France & UK). Panter can co-exist with Signature and secure 20-40%
Slide 23: Four Power Brands to Protect & Lead
FOUR POWER BRANDS TO PROTECT & LEAD Strong presence in geographies and by segments Group Net Sales Total Volume • Spanning across a minimum of 17 countries (Panter) through to ~100 countries (Signature) • Unique product specifications including flavour, blends, size & filter/no filter • Covering dif
Slide 24: Strategic Roll Out: Signature as Example
STRATEGIC ROLL OUT: SIGNATURE AS EXAMPLE Our biggest and most profitable brand globally • Delivering around 25% of our global short fillers volume • Distinctive stronghold in the most relevant consumer territory ‘Enjoyment’ and Signature stands for: Original smooth indulgence, elevating everyday mom
Slide 25: Ambitions for Our Key Markets in Europe
AMBITIONS FOR OUR 7 KEY MARKETS IN EUROPE Investing in our four Power Brands • Transforming consumer insights to innovation in our products (redesigns, limited editions, enhancements) to create more moments of enjoyment • Adapting to a consumer centric pricing model with more consistency across bran
Slide 26: Strategic Levers to Success
STRATEGIC LEVERS TO SUCCESS Market Share >29% MARKET SHARE ~27% GAINS IN KEY MARKETS Gain market share in 7 key markets MARGIN Portfolio Simplification PROTECTION 45% SKUs account MRC Brands for <5% volume PORTFOLIO ~55% SIMPLIFICATION >95% ~45% <5% # of SKUs Vol in % Reduce ~50% through migration C
Slide 27: Grow Handmade Cigars
GROW HANDMADE CIGARS
Slide 28: Strategic Priority: Grow Handmade Cigars
STRATEGIC PRIORITY GROW HANDMADE CIGARS PRODUCTION SIMPLIFY SALES CHANNELS RETAIL Optimise production lines Continue to simplify portfolio Leverage existing strength for Support own brand for value vs. premium and streamline ways of unified approach – especially activation and improve cigars working
Slide 29: The U.S. Is the Key Driver of Category Growth
THE U.S. IS THE KEY DRIVER OF CATEGORY GROWTH Key insights HMC U.S. & Rest Of World - Market Volume 2024 • Market remains biggest and volume base significantly higher vs. before COVID period U.S. Other • HMC in key EU markets continue to grow with Spain and Germany as biggest contributors ~30% ~650
Slide 30: Opportunity to Increase Market Share Through Power Brands in the U.S.
OPPORTUNITY TO INCREASE MARKET SHARE THROUGH POWER BRANDS IN THE U.S. Total Market Share Group Net Sales STG brands Rest of Market Power Brands Remainder STG brands account for total of 13% Power Brands account for ~45% of our Net Sales in U.S. Power Brands account for 5% of total Capital Markets Da
Slide 31: Strategic Levers to Success
STRATEGIC LEVERS TO SUCCESS • Targeting different price points including premium, mainstream, value for money – capturing wide consumer base • Maximising impact with accelerated investments in Power Brands • Driving brand positioning in both retail and online channels • Tailored manufacturing to be
Slide 32: Brands Well Positioned to Meet All Consumer Needs in U.S. HMC
BRANDS WELL POSITIONED TO MEET ALL CONSUMER NEEDS ACROSS HMC CATEGORY IN U.S. HMC US Market Landscape, 2025 Consumer loyalty CONN • Our portfolio covers the full spectrum of consumer YMENT EC O TIO Indicates Power Brand demand segments NJ E N Cohiba BE • Ambition to strengthen brand equity and reinf
Slide 33: Strategic Roll Out: Macanudo as Example
STRATEGIC ROLL OUT: MACANUDO AS EXAMPLE Rationale for Power Brand • Global scale and recognition • Broad appeal across experience levels • Trusted, approachable entry to premium cigars • Strong foundation for distribution and volume growth Consumer mindset • The approachable classic – trusted by exp
Slide 34: Power Brands Driven by Our Powerful Distribution
POWER BRANDS DRIVEN BY OUR POWERFUL DISTRIBUTION STG-owned distribution channels • Driving premiumisation through exclusivity • Experience-based events and branded takeovers in retail stores • Integrated 360° consumer engagement • Merchandising and promotional prioritisation Third party retail chann
Slide 35: Retail Expansion Continues to Strengthen Our Market Presence
RETAIL EXPANSION CONTINUES TO STRENGTHEN OUR MARKET PRESENCE 15 STORES ACROSS 5 STATES 2007 2012 2018 2020 2022 2023 2024 2025 Bethlehem, PA Hamburg, PA The Colony, TX Fort Worth, TX San Antonio, TX Conroe, TX Bridgeville, PA Newport, KY Lutz, FL Katy, TX Jacksonville, FL Orlando, FL Tampa, FL East
Slide 36: Scandinavian Tobacco Group
SCANDINAVIAN TOBACCO GROUP Capital Markets Day 2025 36
Slide 37: Accelerate Nicotine Pouch Business
ACCELERATE NICOTINE POUCH BUSINESS
Slide 38: Strategic Priority: Accelerate Nicotine Pouch Business
STRATEGIC PRIORITY ACCELERATE NICOTINE POUCH BUSINESS CAPABILITIES SALES CHANNELS EXPANSION Strengthen internal Leverage existing strength Explore entry into additional capabilities in R&D and within sales channels for markets pending regulatory flavours unified approach developments KEY MARKETS MAR
Slide 39: Growth Expected Across All STG Categories, Biggest in Nicotine Pouches
GROWTH EXPECTED ACROSS ALL STG CATEGORIES WITH BIGGEST GROWTH IN NICOTINE POUCHES RRP market value size, US & European markets USD billion (RSP, y-o-y exchange rates) CAGR % Growth % 77.6 2019-2024 2025-2029 +6.4% Nicotine pouches +77.1 +18.4 41.8 Cigars & cigarillos +0.4 +0.9 Smoking tobacco +3.5 +
Slide 40: Multi-Category Poly-Use Driving Growth
MULTI-CATEGORY POLY-USE DRIVING GROWTH BUILDING COMPLEMENTARY MOMENTS TO MEET CONSUMER PREFERENCES Traditional tobacco offers less Poly-use offers ability for consumer moments in terms of location, to have many moments of enjoyment, time spent and functional use with little to no limitations TRADITI
Slide 41: Strategic Levers to Success
STRATEGIC LEVERS TO SUCCESS • Invest in product development capabilities • Accelerate user conversion through targeted, insight-led innovation • Initiate new market entries within existing NP markets • Focus on existing competitive route-to market • Optimise investments toward relevant consumers thr
Slide 42: XQS No.2 in Most Competitive Market
XQS NO.2 IN MOST COMPETITIVE MARKET – BOOSTED BY DISTRIBUTION EXPANSION AND INNOVATION Latest launches driving incremental growth XQS maintaining the pace of the fastest growing brand Market Share, % Market Share, % STG acquires XQS Launch of Raspberry Blackcurrant, +5.1 Fruzzle and Hallon Lakrits 1
Slide 43: Building a Mainstream Brand Through Portfolio Expansions
BUILDING A MAINSTREAM BRAND THROUGH PORTFOLIO EXPANSIONS FREEDOM BREAK AND EXPERIENCE REWARDERS SEEKERS 40% XQS PROPOSITIONS XQS PROPOSITIONS CORE STRENGTH Driven by indulgence and relaxation. Low-frequency users looking for nicotine All portfolio pillars are Driven by novelty and discovery. Fruity
Slide 44: Conscious Expansion - Differentiation, Growth & Longevity
CONSCIOUS EXPANSION - DIFFERENTIATION, GROWTH & LONGEVITY TAILORED APPEAL MASS APPEAL NOSTALGIA CORE MINT FUNCTIONAL XQS launched before 2023 XQS launched in 2023 / 2024 Beverages / Confectionary / Others Fruity / Berry / Citrus Mint / Menthol Mint / Fruity / Citrus / Energy XQS launched in 2025 Dif
Slide 45: Our Strategic Priorities in Summary
OUR STRATEGIC PRIORITIES IN SUMMARY STABILISE GROW ACCELERATE MACHINE-ROLLED CIGARS HANDMADE CIGARS NICOTINE POUCHES Capital Markets Day 2025 45
Slide 46: Delivering Value
DELIVERING VALUE
Slide 47: Insights Shaping Our Financial Ambitions
INSIGHTS SHAPING OUR FINANCIAL AMBITIONS CREATING SHARPER FOCUS DELIVER PROFIT OPPORTUNITIES ON ROIC AND CASH FLOW WITH FLEXIBLE GROWTH ALLOCATION POLICY Through EBIT expansion and Through market share gains, Reflecting Focus2030 priorities disciplined capital management strategic pricing, cost effi
Slide 48: Financial Performance 9M 2025
FINANCIAL PERFORMANCE 9M 2025 Before acquisitions FINANCIAL EXPECTATIONS 2025 DKKm 6.745 22.0% NET SALES FREE CASH FLOW Before acquisitions 19.9% 6.692 DKK 9.1-9.2 billion DKK 0.8-1.0 billion -4% organic growth Net sales EBITDA margin DKKm DKK 448 9.9 EBITDA MARGIN ADJUSTED EPS 327 8.2 Before specia
Slide 49: Rolling Towards 2025 Financial Performance
ROLLING TOWARDS 2025 FINANCIAL PERFORMANCE Net Sales DKK billion EBITDA Margin Free Cash Flow before acquisitions DKK 9.15* 22.8% * 1.4B 20.0% * 0.9B 8.0 2020 2021 2022 2023 2024 2025E 2020 2021 2022 2023 2024 2025E 2020 2021 2022 2023 2024 2025E Earnings Per Share ROIC Capital Distribution DKK 1.5B
Slide 50: New Financial Ambitions Provide Foundation for Shareholder Returns
NEW FINANCIAL AMBITIONS PROVIDE FOUNDATION FOR ATTRACTIVE SHAREHOLDER RETURNS ROIC EBIT low single digit FCF before special items CAGR DKK million >11% >1,200 800-1,000 8.3% 2025 YTD 2030 2025 Estimate 2030 2025 Estimate 2030 Capital Markets Day 2025 50
Slide 51: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION ROIC Key levers impacting ROIC % Performance 2024-2025 Key levers (indicative) Ambition ? • Incremental EBIT b.s.i. growth >11% + • Special items 2025 ~DKK 200m + 9.4% • Balance sheet 8.3% + + • Potential divestments and acquisitions must support ROIC ambition 2024 202
Slide 52: Earnings Improvement
EARNINGS IMPROVEMENT EBIT before special items DKKm Key levers impacting EBIT Performance 2024-2025 Key levers (indicative) Ambition • Volumes/price mix improvements • Cost inflation in the level of 3% p.a. Low single 1659 + - digit CAGR • Simplification + - • Both growth investments and depreciatio
Slide 53: Generating Stronger Free Cash Flow
GENERATING STRONGER FREE CASH FLOW Free Cash Flow before acquisitions Key levers impacting free cash flow DKKm Performance 2024-2025 Key levers (indicative) Ambition • EBITDA increase + - >1200 • Investments ~DKK 1.5 billion 2026-2030 931 800- - • Special cash items in 2025 of ~DKK 200m 1000 + • Oth
Slide 54: Shareholder Return Remains Core
SHAREHOLDER RETURN REMAINS CORE Adjusting policy to allow financial flexibility Maintaining our investment grade credit rating Payout ratio-based dividend policy LEVERAGE RATIO AT/BELOW 2.5X • Reflecting ambition of investing in Focus2030 • Stronger alignment with performance to ensure balanced paym
Slide 55: Retail Stores
RETAIL STORES Selection examples: Stores opened >3 years Total investment of ~ USD 37 Million $40,000 40% Net Sales USD EBITDA margin ROIC 35% $30,000 30% • The Colony, TX in 2018 25% • Fort Worth, TX in 2021 $20,000 20% • Tampa, FL in 2021 15% • Lutz, FL in 2021 $10,000 10% • San Antonio, TX in 202
Slide 56: Nicotine Pouch Ambitions
NICOTINE POUCH AMBITIONS Financial Highlights Today • DKK 250-300 million invested as of 2025 • Net sales exceeding DKK 400 million in 2025 • Market Shares: Sweden >13%, UK ~1% • Gross Margin ~25-30% and EBITDA breakeven Financial Ambitions 2030 • Market shares increasing • Expanding to new markets
Slide 57: Creating Value Towards 2030
CREATING VALUE TOWARDS 2030 FOCUS DISCIPLINED POWER INVESTMENTS BRANDS SIMPLIFY STRONGER PROTECTING FINANCIAL FINANCIAL FOUNDATION MARGINS FLEXIBILITY AMBITIONS Capital Markets Day 2025 57
Slide 58: Scandinavian Tobacco Group
SCANDINAVIAN TOBACCO GROUP Capital Markets Day 2025 58
Slide 59: Thank You
THANK YOU
Scandinavian Tobacco Group — Investor Day (November 2025) on 6ix