Swedish Match: Report on Operations Full Year 2005 - Prepared in Accordance With IFRS.STOCKHOLM Stockholm (stŏk`hôlm'), city (1995 pop. 692,954), capital of Sweden and of Stockholm co., E Sweden, situated where Lake Mälaren flows into the Baltic Sea. , Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. -- Swedish Match Swedish Match is a Swedish company based in Stockholm that makes tobacco products and matches. It was founded as Svenska Tändsticksaktiebolaget by Ivar Kreuger in 1917 in Jönköping ("City of the matches"). The company changed its name in 1980. (STO STO Store (calculator function) STO Société de Transport de l'Outaouais (French) STO Strategic Technology Office (DARPA) STO Security Through Obscurity STO Service to Others :SWMA SWMA Software Maintenance SWMA Solid Waste Management Act SWMA Sine-Weighted Moving Average SWMA Storm Water Management Authority, Inc. (Homewood, AL) SWMA Segmental Wall Motion Abnormality (cardiology) ): --Fourth quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were 3,500 MSEK MSEK Meyer, Suozzi, English & Klein (New York law firm) MSEK Million Swedish Kroner (3,211), and full year sales were 13,311 MSEK (13,007) --Fourth quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was 678 MSEK (508) and full year operating income was 2,825 MSEK (3,593) --Operating income for the full year, excluding major one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items, was 2,618 MSEK (2,312) --Net profit for the fourth quarter was 456 MSEK (297), and for the full year was 1,777 MSEK (2,084) --Fourth quarter EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. was 1.47 SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. (0.86), and full year EPS was 5.61 SEK (6.18) --The Board proposes an increased dividend to 2.10 SEK (1.90) Sales and results for the fourth quarter Swedish Match sales for the fourth quarter increased by 9 percent to 3,500 MSEK (3,211). In local currency terms sales increased by 1 percent. Excluding divested companies, sales increased by 4 percent. All product areas except matches demonstrated sales growth. Adjusted for the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the Indian company Wimco Ltd. on July July: see month. 1, 2005, sales also increased for matches during the fourth quarter. For snuff snuff, preparation of pulverized tobacco used by sniffing it into the nostrils, chewing it, or placing it between the gums and the cheek. The blended tobacco from which it is made is often aged for two or three years, fermented at least twice, ground, and usually , sales grew by 13 percent during the fourth quarter, to 819 MSEK (726) while operating income increased by 37 percent to 392 MSEK (287). Last year's operating income was negatively impacted by one time items of 70 MSEK. Swedish Match volumes increased in both the US and Scandinavian markets. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 47.8 percent (39.5). Sales of cigars grew by 6 percent in the fourth quarter and amounted to 834 MSEK (790), while operating income grew by 64 percent, to 176 MSEK (108). Sales in local currency terms were weaker during the fourth quarter in both Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the US. The increase in operating
income results from both benefits of prior cost savings programs, and
the fact that the fourth quarter last year was impacted with
restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs of 25 MSEK. Operating margin for cigars amounted to
21.1 percent (13.6).Group operating income for the fourth quarter reached 678 MSEK (508). If last year's currency rates had been used the operating income would have amounted to 616 MSEK. Costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc divestitures and restructurings primarily within the match business reduced operating income during the fourth quarter 2005 by 90 MSEK. Last year's fourth quarter included restructuring costs of 125 MSEK. Operating income for the fourth quarter excluding restructuring related charges and divestments in both years grew by 21 percent, to 768 MSEK (633). Operating margin for the fourth quarter amounted to 19.4 percent (15.8). Excluding restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and divestments, fourth quarter operating margin was 21.9 percent (19.7). During the fourth quarter basic EPS, amounted to 1.47 SEK, compared to 0.86 SEK last year. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS amounted to 1.46 SEK (0.86). Sales and results full year 2005 Sales for the full year amounted to 13,311 MSEK (13,007). Excluding divested companies, sales increased by 2 percent in local currency terms. Operating income amounted to 2,825 MSEK (3,593). Last year's operating income for the year included some larger one time items, the income of 1,521 MSEK from the settlement with UST USt Umsatzsteuer (German: Tax) UST Underground Storage Tank UST University of St. Thomas (Minnesota, Texas) UST University of Santo Tomas (Manila, Philippines) and match impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges and provisions of 240 MSEK. Excluding the third quarter 2005 gain from the sale of the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of real estate and larger one time items the year before, operating income during 2005 increased by 13 percent to 2,618 MSEK (2,312). Group operating margin during 2005 was 19.7 percent excluding the gain from the sale of the New York real estate. Excluding larger one time items, operating margin during last year was 17.8 percent. EPS (basic) for the full year was 5.61 SEK (6.18). Diluted EPS amounted to 5.59 SEK (6.15). Excluding larger one time items earnings per share was 5.30 SEK compared to 4.19 SEK last year. The Board proposes an increased dividend to 2.10 SEK (1.90).
Summary of Consolidated Income Statement
----------------------------------------------------------------------
October - Full Full
December year year
MSEK 2005 2004 2005 2004
------ ------ --------- ----------
Sales 3,500 3,211 13,311 13,007
Operating income excl. major one
time items 678 508 2,618 2,312
Operating income 678 508 2,825 3,593
Profit before tax 642 441 2,696 3,429
Net income incl. minority interest 456 297 1,777 2,084
----------------------------------- ------ ------ --------- ----------
In this report amounts are stated in Swedish crowns rounded to the nearest million. The figures in the report are based on data from the consolidation system which are in thousands of Swedish Crowns. By rounding the figures in the report, totals may not always equal the sum of the included rounded numbers.
Sales by product area
----------------------------------------------------------------------
October - Change Full year Change
December
MSEK 2005 2004 % 2005 2004 %
------ ------ ------ ------- ------- ------
Snuff 819 726 13 3,131 3,081 2
Chewing Tobacco 280 237 18 1,079 1,058 2
Cigars 834 790 6 3,283 3,171 4
Pipe Tobacco & Accessories 245 242 1 920 901 2
Matches 355 366 (3) 1,316 1,378 (4)
Lighters 166 142 17 620 582 7
Other operations 800 708 13 2,962 2,836 4
------ ------ ------ ------- ------- ------
Total 3,500 3,211 9 13,311 13,007 2
-------------------------- ------ ------ ------ ------- ------- ------
Operating income by product area
----------------------------------------------------------------------
October - Change Full year Change
December
MSEK 2005 2004 % 2005 2004 %
----- ----- ------ ------ ------ ------
Snuff 392 287 37 1,504 1,376 9
Chewing Tobacco 100 67 48 347 304 14
Cigars 176 108 64 613 567 8
Pipe Tobacco & Accessories 60 72 (17) 237 254 (7)
Matches (31) 15 13 (12)
Lighters 1 (10) 44 13 240
Other operations (20) (30) (140) (190)
----- ----- ------ ------ ------ ------
Subtotal 678 508 33 2,618 2,312 13
Larger one time items
Income from real estate sale - - 206
Income from settlement with
UST - - - 1,521
Match impairment charges - - - (150)
Provision for acquisition of
shares in Wimco Ltd - - - (90)
----- ----- ------ ------ ------ ------
Subtotal - - 206 1,281
------------------------------ ----- ----- ------ ------ ------ ------
Total 678 508 33 2,825 3,593 (21)
------------------------------ ----- ----- ------ ------ ------ ------
Operating margin by product area
----------------------------------------------------------------------
October - December Full year
Percent 2005 2004 2005 2004
--------- -------- ------- ------
Snuff 47.8 39.5 48.0 44.7
Chewing Tobacco 35.6 28.4 32.1 28.7
Cigars 21.1 13.6 18.7 17.9
Pipe Tobacco & Accessories 24.4 29.8 25.8 28.2
Matches (8.9) 4.2 1.0 (0.9)
Lighters 0.4 (7.3) 7.1 2.2
--------- -------- ------- ------
Group* 19.4 15.8 19.7 17.8
------------------------------------ --------- -------- ------- ------
* Excluding major one time items Smokeless Tobacco smokeless tobacco, n chewing tobacco (leaves) or tobacco powder (snuff) that allows the nicotine to be absorbed through the mucous membrane of the oral cavity or digestive tract. It is related to a high risk of oral cancer. Swedish Match has an international presence in smokeless tobacco, and sells products on most major smokeless smoke·less adj. 1. Emitting or containing little or no smoke: smokeless factory stacks. 2. markets. Swedish Match is a market leader in snuff in Sweden and Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. . On the largest snuff market in the world, the US, as well as in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , Swedish Match has a significant position. In the US, Swedish Match is the largest manufacturer on the market for chewing tobacco chewing tobacco, n See smokeless tobacco. chewing tobacco Smokeless tobacco, see there . Smokeless tobacco products are increasingly recognized as having significantly lower health consequences than cigarettes. This knowledge, together with increased restrictions for cigarette cigarette Paper-wrapped roll of finely cut tobacco for smoking. Cigarette tobacco is usually milder than cigar tobacco. The Aztecs and other New World peoples smoked tobacco in hollow reeds, in canes, or wrapped in leaves, but it was in pipes and as cigars (cut tobacco smoking creates good conditions for organic growth, especially for snuff. Snuff Sweden is the world's largest snuff market when it comes to per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. consumption. In Sweden, a substantially larger proportion of the male population uses snuff compared to cigarettes. The number of women using snuff is steadily increasing. The Norwegian Norwegian associated in some way with Norway. Norwegian buhund, Norwegian sheepdog a medium-sized (26-40 lb), spitz-type dog with a short, dense coat in wheaten, black, red or sable, sometimes with black markings on the face, ears market, which is substantially smaller than the Swedish market, is at present showing strong growth. The US is the world's largest snuff market measured in number of cans and is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. five times larger than the Swedish market. In Sweden and Norway, Swedish Match has the leading position. In the US, the Company is well positioned as number three on the market. Some of the best known brands include General, Ettan, and Grov GROV Grove in Sweden, Timberwolf in the US and Taxi in South Africa. During the fourth quarter, sales increased by 13 percent versus the previous year, to 819 MSEK (726), and operating income grew by 37 percent, to 392 MSEK (287). Volumes increased in Scandinavia Scandinavia (skăn'dĭnā`vēə), region of N Europe. It consists of the kingdoms of Sweden, Norway, and Denmark; Finland and Iceland are usually considered part of Scandinavia. (1.0 percent) as well as in the US (18.0 percent), measured in number of cans. Operating margin reached 47.8 percent (39.5). Last year's operating income was negatively impacted due to one time items of 70 MSEK. Sales for the full year amounted to 3,131 MSEK (3,081), an increase of 2 percent. In Scandinavia sales volumes increased by 1 percent. In Sweden the decrease was 1 percent, while volumes in Norway as well as tax free sales increased. Loose snuff declined on the Swedish market, while sales of pouched pouched adj. Having a pouch, as a gopher, pelican, or marsupial. Adj. 1. pouched - having a pouch snuff increased. The proportion of pouched snuff is currently 58 percent of the Swedish market, compared to 55 percent in December December: see month. 2004. Competition on the Swedish market has increased. In the US, year to date sales volumes were up by 5 percent versus previous year measured in number of cans. Sales of the Longhorn The code name for the Windows Vista operating system. After the client version was renamed "Vista" in 2005, Longhorn referred to the server version until it was officially named Windows Server 2008 in May of 2007. See Windows Vista. value priced brand were considerably higher than the year before, while sales for Timberwolf were lower. At the end of 2004 the Timberwolf brand was repositioned with a lower price. Swedish Match's average market share during 2005 in the US market amounted to 9.4 percent (8.9) according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Nielsen Noun 1. Nielsen - Danish composer (1865-1931) Carl August Nielsen, Carl Nielsen estimates. Operating income for the year amounted to 1,504 MSEK (1,376), up 9 percent. On the Nordic market operating income increased mainly due to higher volumes, improved average prices and lower costs as a result of the accomplished reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. . In the US, sales declined due to the repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of the Timberwolf brand with a lower list price as well as larger part of sales attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Longhorn brand. Operating margin in the US increased somewhat. Operating margin for snuff for the year was 48.0 percent (44.7). Chewing Tobacco Chewing tobacco is sold primarily in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market, with concentration in the southern US. Well known brands include Red Man and Southern Pride. Swedish Match is the leading producer of chewing tobacco in the US, and the market share is 44 percent, according to Nielsen estimates. The chewing tobacco segment declines each year due to relatively few new consumers. Some consumers choose to use snuff instead. During the fourth quarter, sales increased by 18 percent, to 280 MSEK (237), and operating income grew by 48 percent, to 100 MSEK (67). Improved average price and a stronger US dollar compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for lower volumes. Operating margin reached 35.6 percent (28.4). Sales for the full year grew by 2 percent to 1,079 MSEK (1,058), while operating income increased by 14 percent to 347 MSEK (304). Higher average price compensated for volume loss and lower costs as well as a stronger US dollar contributed to the improved operating income. Operating margin amounted to 32.1 percent (28.7). Cigars and Pipe Tobacco Swedish Match is one of the world's largest operators within cigars and pipe tobacco. Organic growth opportunities are mainly within cigars, while the consumption of pipe tobacco is declining. Cigars Swedish Match is the second largest producer of cigars and cigarillos in sales value. Swedish Match offers a full range of different cigars and brands. Well known brands include Macanudo Macanudo is an Argentine daily comic strip by the cartoonist Liniers. It is published in the newspaper La Nación. It appears on the last page of the paper. Just like Liniers' previous strip, Bonjour, Macanudo is very experimental and deals with meta humor. , La Gloria Glo·ri·a n. 1. a. A Latin doxology beginning with the words Gloria Patri. b. A Latin doxology that is the second item of the Ordinary of the Roman Catholic Mass and begins with the words Cubana, White Owl See Snowy owl , Garcia Gar·ci·a , Jerome John Known as "Jerry." 1942-1995. American musician who gained fame as the cofounder and lead guitarist of the folk-rock group the Grateful Dead (1965-1995). y Vega Vega (vā`gə), brightest star in the constellation Lyra; Bayer designation Alpha Lyrae; 1992 position R.A. 18h36.7m, Dec. +38°47'. A white main-sequence star of spectral class A0 V, its apparent magnitude is 0. , La Paz La Paz, city, Bolivia La Paz (lä päs), city (1992 pop. 713,378), W Bolivia, administrative capital (since 1898) and largest city of Bolivia. The legal capital is Sucre. , Justus Justus, in the Bible. 1 Surname of Joseph Barsabas. 2 or Titus Justus, Corinthian host of St. Paul. 3 Jesus Justus: see Jesus (2.) van Maurik Maurik () is a town in the Dutch province of Gelderland. It is a part of the municipality of Buren, and lies about 8 km north of Tiel. Maurik was a separate municipality until 1999, when it was merged with Buren. , and Wings. The US is the largest cigar market in the world and Swedish Match has a leading position in the premium segment, and is well established in the segment for machine made cigars. After the US, the most important cigar markets are in Europe, where Swedish Match is well represented in most countries, with an especially good market position in The Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. and Scandinavia. In Europe, machine made cigars dominate. During the fourth quarter, sales increased by 6 percent, to 834 MSEK (790), and operating income increased by 64 percent, to 176 MSEK (108). Operating margin reached 21.1 percent (13.6). Unit volumes declined in both Europe and the US, and the improved operating income is mainly attributable to the effects of prior cost savings activities in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. business. Sales for the full year amounted to 3,283 MSEK (3,171), an increase of 4 percent. In local currency terms sales were up 2 percent. Operating income for the full year grew by 8 percent to 613 MSEK (567). Operating margin amounted to 18.7 percent (17.9). Excluding charges of 75 MSEK related to the integration of General Cigar in 2005, and 36 MSEK regarding restructuring programs in Europe in 2004, operating income grew by 14 percent and operating margin grew to 21.0 percent (19.0). The increase in operating income is primarily due to lower costs as a result of previous restructuring measures. Pipe Tobacco and Accessories Swedish Match is one of the largest pipe tobacco companies in the world and its products are marketed worldwide. The Borkum Riff  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . brand is sold in over 60 countries. The Company has its most significant presence in South Africa, where local production takes place. Best Blend “Blending” redirects here. For alpha blending, see Alpha compositing. In linguistics, a blend is a word formed from parts of two other words. These parts are sometimes, but not always, morphemes. and Boxer boxer, breed of medium-sized, muscular working dog perfected in Germany in the 19th cent. but whose origins may be traced back in Europe to the 16th cent. It stands from 21 to 25 in. (53.3–63.5 cm) high at the shoulder and weighs from 60 to 75 lb (27. are major brands in South Africa. Pipe tobacco consumption declines on most established markets, as the segment attracts relatively few new consumers. However, the demand is increasing in certain smaller export markets. During the fourth quarter, sales grew by 1 percent, to 245 MSEK (242), and operating income declined by 17 percent, to 60 MSEK (72). Operating margin was 24.4 percent (29.8). Sales for the full year amounted to 920 MSEK (901). Improved price levels and a somewhat stronger South African Rand “ZAR” redirects here. For the former republic, see South African Republic. The rand is the currency of South Africa. It takes its name from the Witwatersrand (White-waters-ridge compensated for lower volumes. Operating income was 237 MSEK (254). Operating margin amounted to 25.8 percent (28.2). Lights Swedish Match markets matches and lighters LIGHTERS, commerce. Small vessels employed in loading and unloading larger vessels. 2. The owners of lighters are liable, like other common carriers for hire; it is a term of the contract on the part of the carrier or lighterman, implied by law, that his vessel globally. Matches Swedish Match is a market leader in many markets for matches. The brands are mostly local, and have leading positions in their home countries. Major brands include Swan swan, common name for a large aquatic bird of both hemispheres, related to ducks and geese. It has a long, gracefully curved neck and an extremely long, convoluted trachea which makes possible its far-carrying calls. , Solstickan Solstickan is a Swedish charity foundation founded in 1936 for aiding needy children. Its ruling board is appointed by the Swedish government. The money for the foundation is gathered through the sales of the Solstickan matchbox, which over the years have become the most well , Three Stars, and Redheads. During the year, an extensive restructuring program has been completed within the match business. The match factory in Valencia, Spain For the Valencia wine region, see . Valencia (Spanish: Valencia [ba'lenθja];[1] Valencian: València [va'ɫɛnsia]) is the capital of the Spanish autonomous community of Valencia and its province. has been closed and the property has been divested. Also, the decision has been made to close the match manufacturing facility in Turkey. The European match business in now concentrated in the match factory in Tidaholm Tidaholm is an industrial town in Västergötland, Sweden, and the seat of Tidaholm Municipality, Västra Götaland County. Early Tidaholm was primarily an agricultural estate. An ironworks factory was established in 1799 at the site of the Holmagarden forge. , Sweden. Further, a number of units and holdings have been divested. The holding in the Indian match company Wimco Ltd. has been divested in two steps and was concluded during the fourth quarter. Wimco Ltd. is not consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: in the Swedish Match group as per July 1. The holding in the partly owned Indonesian company Jamafac was divested during the fourth quarter. A letter of intent has been signed to sell the European advertising match business. In early 2006 the Arenco Group with manufacturing units for matches and packaging machines in Kalmar Kalmar (käl`mär), city (1990 pop. 30,820), capital of Kalmar co. (1995 pop. 144,060), SE Sweden, on the Kalmarsund (an arm of the Baltic Sea) opposite Öland Island. and Halmstad Halmstad (hälm`städ'), city (1990 est. pop. 48,880), capital of Halland co., SW Sweden, a seaport on the Kattegat at the mouth of the Nissan River. It is an industrial center and summer resort. in Sweden and in Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. , China was sold. The above mentioned measures have affected the year's operating income for matches negatively by 106 MSEK, of which 75 MSEK has impacted the fourth quarter. Last year costs for restructuring of the match business amounted to 125 MSEK, of which 20 MSEK was during the fourth quarter. During the fourth quarter, sales declined by 3 percent, to 355 MSEK (366). Excluding divested businesses, sales increased by 14 percent, but was flat in local currency terms. Operating income was a negative 31 MSEK (15), and excluding restructuring costs, 44 MSEK (35). Currency effects and high shipments at the end of the year have positively impacted operating income. Sales for the full year amounted to 1,316 MSEK (1,378), and increased by 5 percent, excluding divested businesses. Operating income during 2005 was 13 MSEK (negative 12), and excluding restructuring costs operating income amounted to 119 MSEK (113). Operating margin amounted to 1.0 percent (negative 0.9). Lighters Swedish Match produces and distributes disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. lighters and the main brand is Cricket. Swedish Match's largest market is Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). . Several markets are faced with an intensely competitive situation from, among others, Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. producers. During the fourth quarter, sales grew by 17 percent, to 166 MSEK (142), due to higher volumes. Operating income grew to 1 MSEK (negative 10). Restructuring costs of 10 MSEK have impacted fourth quarter's operating income this year as well as previous year. Operating margin was 0.4 percent (-7.3). Sales for the full year were 620 MSEK (582), an increase of 7 percent. Volumes increased but the average price for lighters decreased. Operating income increased to 44 MSEK (13), positively impacted by increased volumes, cost savings and improved productivity. Operating margin improved to 7.1 percent (2.2). Other Operations Other operations include the distribution of tobacco products on the Swedish market, an Irish distribution business, sales of advertising products, as well as corporate overheads. The Irish distribution unit was divested in December and a letter of intent has been signed to sell the business for advertising products. During the fourth quarter, sales amounted to 800 MSEK (708), and operating income, net, amounted to a negative 20 MSEK (negative 30). Sales in the distribution business on the Swedish market were positively impacted due to hoarding effects at the end of the quarter. Corporate overheads have increased due to work in fulfilling requirements under the Sarbanes Oxley Oxley refers to several things: People
For the full year, operating income for other operations was a negative 140 MSEK (negative 190). Last year's expense included charges of 44 MSEK related to both the closure of a distribution center in Sweden and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments and other expenses with regard to the former CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Financing and net financial expense At the close of the period the Group's net debt amounted to 674 MSEK, as compared to 527 MSEK on December 31, 2004, an increase of 147 MSEK. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was 2,718 MSEK compared with 3,626 MSEK a year ago, which included the settlement with UST. Cash flow from the business has, among other things, been used to acquire the minority shares in General Cigar of 1,100 MSEK, share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. of net 1,411 MSEK as well as paid dividend of 612 MSEK. During the period 16,229,514 shares were repurchased, amounting to 1,434 MSEK, and sales of treasury shares related to options programs amounted to 23 MSEK. During the period new bond loans of 1,685 MSEK have been issued. Amortization for the period amounted to 942 MSEK. Liquid funds, including short term investments, amounted to 3,657 MSEK at the end of the period, compared with 3,002 MSEK at the beginning of the year. Net interest expense for the full year amounted to a negative 106 MSEK (negative 163). Other financial items, net, amounted to an expense of 23 MSEK (negative 2). Taxes Total tax for the full year amounted to 919 MSEK (1,345), corresponding to an average tax rate of 34.1 percent (39.2). The tax rate for 2005 was impacted by the estimated gain from the sale of the real estate in New York at 55 percent. The high tax rate during 2004 was due to high tax burden regarding the settlement income from UST as well as certain non deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). restructuring costs. Earnings per share Earnings per share for the full year amounted to 5.61 SEK (6.18). The gain from the sale of the real estate has affected EPS positively by 29 ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. . Last year's earnings per share, was positively affected by larger one time items by 1.96 SEK. The Board proposes increased dividend to 2.10 SEK (1.90). The dividend then amounts to 642 MSEK based on the number of shares justified to dividend at the end of the year. Unrestricted equity in the parent company amounts to 5,402 MSEK. Capital expenditure, depreciation and amortization The Group's direct investments in tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → amounted to 328 MSEK (486). The investments include increased capacity for pouched snuff and rationalizations in the cigar operations. Sale of fixed assets amounted to 628 MSEK (42) of which the sale of General Cigars' New York real estate was 490 MSEK. Total depreciation and amortization amounted to 458 MSEK (479), of which depreciation on tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. amounted to 337 MSEK (332) and amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. amounted to 121 MSEK (147). Tobacco tax During the past 12 months, total tobacco tax and value-added tax value-added tax (VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level. on tobacco tax paid by Swedish Match in Sweden amounted to 9,930 MSEK (9,852). Average number of Group employees The average number of employees in the Group during the year was 14,333 compared with 15,039 for the full year 2004. The number of employees decreased as a result of the divestment divestment to strip one's investment from an entity. of Wimco Ltd. and rationalizations within several product areas. Share structure During the year 16.2 million shares were repurchased at an average price of 88.37 SEK. As at December 31, 2005 Swedish Match held 18.7 million shares in its treasury, corresponding to 5.8 percent of the total amount of shares. Total shares bought back by Swedish Match since the buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may programs started have been repurchased at an average price of 55.50 SEK. The number of shares outstanding, net after repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. and after the sale of treasury shares, as per December 31, 2005 amounted to 305.9 million. In addition, the Company has call options issued and outstanding on its treasury shares corresponding to 4.9 million shares exercisable in gradual The Gradual (Latin: graduale, sometimes called the Grail) is a chant in the extraordinary form of the Roman Catholic Mass, sung after the reading or singing of the Epistle and before the Alleluia, or, during penitential seasons, before the Tract. stages from 2006-2010. During January January: see month. 2006 another 5 million shares have been repurchased and consequently the Company holds 23.7 million shares in its treasury. The Annual General Meeting on April 27, 2005 renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. the mandate A judicial command, order, or precept, written or oral, from a court; a direction that a court has the authority to give and an individual is bound to obey. A mandate might be issued upon the decision of an appeal, which directs that a particular action be taken, or upon a to repurchase shares up to 10 percent of the shares of the Company. In addition, a decision was made to cancel (character) Cancel - (CAN, Control-X) ASCII character 24. 12.0 million shares held in treasury. Furthermore, the Annual General Meeting decided to reduce the share capital by reducing the shares' nominal value Nominal Value The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates. Notes: When referring to fixed-income securities, the nominal value is also the face value. from 2.40 SEK to 1.20 SEK and reduce the statutory reserve of the parent company by 114 MSEK. These reductions became effective on October October: see month. 5 and consequently 532 MSEK were transferred from restricted equity to unrestricted equity. After the transfer to unrestricted equity, the total amount of registered shares in the Company is 324,596,181. The Board will propose to the Annual General Meeting in April 2006 a renewed mandate to repurchase shares up to 10 percent of the shares of the Company. In addition a proposal will be made to cancel up to 25 million shares held in treasury with a contemporaneous con·tem·po·ra·ne·ous adj. Originating, existing, or happening during the same period of time: the contemporaneous reigns of two monarchs. See Synonyms at contemporary. bonus issue of an amount equivalent the amount of cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. shares times 1.20 SEK. With the latter transaction the Company's share capital will not decrease through the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of shares. Also, a proposal to reduce the parent company's statutory reserve, which amounts to 80 MSEK, through unrestricted equity will be made. Other events and events after the period During the second quarter, Swedish Match has acquired all outstanding shares of General Cigar and now owns 100 percent of the company. The second quarter was impacted by integration costs of 75 MSEK. Cost saving effects due to the integration is expected to impact results from 2006. During September September: see month. the sale of General Cigar's real estate in New York was concluded. In February February: see month. 2005, The Second Circuit Court of Appeals in New York ruled in favour Favor or favour (see spelling differences) may be
Written instrument directed to an individual, government official, legislative body, or court in order to seek redress of grievances or to request a favour. to the US Supreme Court seeking review. The Supreme Court has requested a statement from the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of government, but has not yet taken stand regarding leave to appeal. This case has been ongoing since 1997. As previously announced, Swedish Match on July 1 sold its 74 percent holding of the Indian match company, Wimco to a subsidiary of Indian Tobacco Indian tobacco, name for several plants, among them lobelia. Company (ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → ). Wimco is therefore not included in Swedish Match's consolidated numbers as per July 1. On September 29, 2005 Swedish Match acquired 16.8 percent of the total amount of outstanding shares in Wimco in an open offer as per an earlier ruling from the Securities and Exchange Board of India Securities and Exchange Board of India (SEBI) is a board (autonomous body) created by the Government of India in 1988 and given statutory form in 1992 with the SEBI Act 1992. Its head office is in Mumbai, and other offices in Chennai, Kolkatta and Delhi. (SEBI SEBI Securities and Exchange Board of India SEBI Stock Exchange Bureau of India ). Swedish Match sold these shares in connection with ITC's offer to buy all outstanding shares of Wimco, during the fourth quarter. In January, 2006, the Company sold its Arenco subsidiary, with manufacturing units in Kalmar and Halmstad, Sweden and Shanghai, China. Arenco manufactures machines for match manufacturing and packaging. In addition to the sale of Arenco, Swedish Match has divested its distribution company in Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. . Also the company signed a letter of intent to sell its European advertising lights and other advertising products business, which include a production facility in Hungary Hungary, Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe. . Furthermore, the holding in the partly owned match company Jamafac in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. has been sold. Distribution of surplus funds Surplus funds Cash flow available after payment of taxes in a project. Dividend Swedish Match's dividend policy is that the dividend should largely follow the trend of the Group's net income. When establishing a dividend, the size of planned repurchases of shares is also taken into account. It is estimated that the dividend amount will be between 30-50 percent of net income for the year. Repurchase A repurchase of shares is, in principle, a reverse new share issue and makes it possible to work continuously to optimize optimize - optimisation the capital structure of the balance sheet. In view of Swedish Match's stable and positive cash flow, the position of the Board of Directors with regard to repurchase of shares is positive. The size and scope of share buybacks depend, in exactly the same way as the size of the dividend, on Swedish Match's financial position, net income, anticipated future profitability, cash flow, investments and expansion plans. Other factors that affect repurchases are the price of the shares, the Group's interest and tax expenses, and the earnings available for distribution. Financial restrictions When considering the size of the surplus funds to be transferred to shareholders, it has been decided that the following restrictions should apply: --The Company shall over time strive for a capital structure with an interest cover based on EBITA EBITA Earnings Before Interest Taxes Amortization (profit before financial items, interest and amortization on intangible assets/net interest) that exceeds nine times. --The Company shall over time strive for a net debt divided by EBITA below two. Accounting principles This interim report is prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Accounting Standard IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 34 Interim Financial Reporting from the International Accounting Standards Board  An editor has expressed concern that this article or section is .Please help improve the article by adding information and sources on neglected viewpoints, or by summarizing and . New accounting principles 2005 Obligations for retirement pension and family pension for salaried personnel and workers covered by a collective agreement in Sweden is secured through insurance in a superannuation fund Noun 1. superannuation fund - a fund reserved to pay workers' pensions when they retire from service pension fund fund, monetary fund - a reserve of money set aside for some purpose (PSF (Print Services Facility) Software from IBM that performs the printer rasterization for IBM's AFP and other page description languages. PSF products are available for IBM mainframes, AS/400 and RS/6000 series and output the IPDS format for IBM printers. ). This fund also covers other employers outside the Swedish Match group. When the Company has not had access to the requisite information to report this plan as a defined-benefit plan Defined-Benefit Plan An employer-sponsored retirement plan for which retirement benefits are based on a formula indicating the exact benefit that one can expect upon retiring. Investment risk and portfolio management are entirely under the control of the company. it has been reported as a defined-contribution plan Defined-Contribution Plan A retirement plan wherein a certain amount or percentage of money is set aside each year for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties. . During the year an analysis has been made which has made it possible to do a reasonable estimate of Swedish Match's assets and liabilities in the plan. For the full year 2005 report this plan is reported as a defined-benefit plan. The change is reported as a change of accounting principles as of January 1, 2004 and previously reported periods, 2004 and 2005, have been restated. The change implies (logic) implies - (=> or a thin right arrow) A binary Boolean function and logical connective. A => B is true unless A is true and B is false. The truth table is A B | A => B ----+------- F F | T F T | T T F | F T T | T It is surprising at first that A => that the opening shareholder's equity as per January 1, 2004 increased by 40 MSEK and that the pensions costs during 2004 and 2005 are reported with a lower amount of 32 MSEK and 38 MSEK respectively. As of January 1, 2005 Swedish Match changed its accounting principles for the preparation of financial statements to comply with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ). Previously the financial statements were prepared in accordance with Swedish Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("Swedish GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). The financial statements for periods beginning on or after January 1, 2005 are therefore prepared in accordance with IFRS. IFRS has also been retrospectively ret·ro·spec·tive adj. 1. Looking back on, contemplating, or directed to the past. 2. Looking or directed backward. 3. Applying to or influencing the past; retroactive. 4. applied to year 2004 comparable data but with the exception of the reporting of financial instruments (IAS 32 and IAS 39) and share-based payments (IFRS 2). The financial instruments and share-based payments have not been restated as Swedish Match does not fall under the retrospective LAW, RETROSPECTIVE. A retrospective law is one that is to take effect, in point of time, before it was passed. 2. Whenever a law of this kind impairs the obligation of contracts, it is void. 3 Dall. 391. reporting requirements for these standards. The financial statements are from January 1, 2005, set up as specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. in IAS 1. The main implication implication In logic, a relation that holds between two propositions when they are linked as antecedent and consequent of a true conditional proposition. Logicians distinguish two main types of implication, material and strict. of applying IAS 1, is that net income, on the face of the income statement, and equity, on the face of balance sheet, are presented including the minority's interest. For Swedish Match, the transition to IFRS has changed the reporting of biological assets (IAS 41), goodwill (IFRS 3 and IAS 38), financial instruments (IAS 32 and IAS 39) and share-based payments (IFRS 2). The accounting principles for employee benefits (IAS 19) were already adopted on January 1, 2004 under Swedish GAAP and therefore Swedish Match's financial statements already complied with IAS 19 in 2004. Goodwill and biological assets Information on changes in accounting principles for biological assets (IAS 41) and goodwill (IFRS 3 and IAS 38), due to the transition to IFRS, is included in the report of operations for 2004 and the annual report for 2004. Financial instruments The rules for reporting of financial instruments, IAS 39, imply that financial assets Financial assets Claims on real assets. and liabilities, including all derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. , shall be measured at fair value or amortized cost depending on classification of the asset and liability. The gain or loss from a change in the value of a financial asset or liability shall be recognized, depending on classification, in profit or loss or directly in equity until realized. According to IAS 39, companies can apply hedge accounting Why is hedge accounting necessary? Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). . Under hedge accounting, a company shall link a balance sheet item to a designated hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. instrument. To qualify for hedge accounting under IAS 39, the hedging relationship has to satisfy strict requirements. The major portion of the Group's borrowing was originally assumed at a fixed interest rate but subsequently converted to a floating rate by means of interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. . Swedish Match has decided to apply hedge accounting on interest rate swaps that can be linked to the original borrowing. All other financial instruments within Swedish Match will be subject to fair value accounting and the gain or loss from change in value will be recognized in the profit and loss. At transition to IFRS, the difference between the fair values or amortized costs of the financial assets and liabilities and the values reported according to Swedish GAAP was recognized directly in equity. Any initial recognition of derivatives not previously recognized was also reported directly in equity. At January 1, 2005, an increase in equity of 31 MSEK was thereby reported. The reporting in accordance with IAS 39 has resulted in a negative effect on net income by 10 MSEK during full year 2005. Share-based payments The rules for reporting of share-based payments (such as Swedish Match's option program), IFRS2, imply that an assessed fair value of the options shall be expensed during a vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: period or at a vesting date. During full year 2005, net income has been negatively affected by 10 MSEK due to reporting in accordance with IFRS 2. Outlook for 2006 Our focus on product development and productivity improvements during the last two years has established a solid ground for a profitable growth where focus will be on organic growth for snus and cigars. Our Company consists of loyal and competent Possessing the necessary reasoning abilities or legal qualifications; qualified; capable; sufficient. A court is competent if it has been given jurisdiction, by statute or constitution, to hear particular types of lawsuits. employees throughout the world. This makes me look at the future with confidence that we can continue to improve shareholder value in the coming years with continued investments in our four building stones in the strategy: organic growth, complementary acquisitions, productivity improvements and a continued optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. of the balance sheet. Additional information The Annual General Meeting will be held in Stockholm on April 20, 2006. The Annual Report is expected to be released and distributed in mid March. The first quarter 2006 report will be released April 28. Stockholm, February 15, 2006 Sven SVEN Surveillance Video Entertainment Network (application that tracks pedestrians and generates music-video like visuals) Hindrikes President and Chief Executive Officer
Key data
----------------------------------------------------------------------
Full Full year
year
2005 2004
------------- ------------
Operating margin, %(a) 19.7 17.8
Operating capital, MSEK 7,765 7,314
Return on operating capital, %(a) 34.7 29.4
Return on shareholders' equity, % 36.6 48.2
Net debt, MSEK(b) 674 527
Net debt/equity ratio, % 13.3 10.4
Equity/assets ratio, % 30.2 34.0
Investments in tangible assets, MSEK 328 486
EBITDA, MSEK(c) 3,206 2,916
EBITA, MSEK(d) 2,807 2,496
EBITA interest cover 26.6 15.4
Net debt/EBITA 0.2 0.2
Share data(e)
Earnings per share, SEK
Basic 5.61 6.18
Diluted 5.59 6.15
Excluding major one time items, diluted 5.30 4.19
Excluding amortization and major one time
items, diluted 5.61 4.54
Shareholders' equity per share, SEK 16.60 14.24
Number of shares outstanding at end of
period 305,901,281 321,516,893
Average number of shares outstanding 315,128,554 325,708,645
Average number of shares outstanding,
diluted 316,226,392 327,013,542
------------------------------------------- ------------- ------------
(a) Excluding major one time items (b) Pension liabilities Pension liabilities Future liabilities resulting from pension commitments made by a corporation. Accounting for pension liabilities varies widely by country. are not included in net debt (c) Operating income excluding major one time items adjusted for depreciation, amortization and writedowns (d) Operating income excluding major one time items adjusted for amortization and writedowns of intangible assets (e) Net income attributable to Swedish Match equity holders
Consolidated Income Statement in summary
----------------------------------------------------------------------
Oct - Dec Change Full year Full year Change
MSEK 2005 2004 % 2005 2004 %
------- ------- ------ ---------- ---------- ------
Sales, including
tobacco tax 5,876 5,343 22,120 21,705
Less tobacco tax (2,376) (2,132) (8,809) (8,698)
------- ------- ------ ---------- ---------- ------
Sales 3,500 3,211 9 13,311 13,007 2
Cost of goods sold (1,959) (1,844) (7,278) (7,246)(a)
------- ------- ------ ---------- ---------- ------
Gross profit 1,540 1,367 13 6,033 5,761 5
Sales and
administrative
expenses (869) (861) (3,226)(c) (3,690)(b)
Shares in earnings
of associated co. 5 2 18 1
------- ------- ------ ---------- ---------- ------
678 508 33 2,825 2,072 36
Settlement income 0 0 0 1,521
------- ------- ------ ---------- ---------- ------
Operating income 678 508 33 2,825 3,593 (21)
Net interest
expense (22) (50) (106) (163)
Other financial
items, net (14) (17) (23) (2)
------- ------- ------ ---------- ---------- ------
Net financial
items (36) (67) (128) (164)
------- ------- ------ ---------- ---------- ------
Profit before
taxes 642 441 46 2,696 3,429 (21)
Taxes (186) (145) (919) (1,345)
Net income for the
period 456 297 54 1,777 2,084 (15)
------------------ ------- ------- ------ ---------- ---------- ------
Attributable to:
Swedish Match
equity holders 456 273 1,769 2,011
Minority interests 0 23 9 72
------- ------- ------ ---------- ---------- ------
Net income for the
period 456 297 54 1,777 2,084 (15)
------------------ ------- ------- ------ ---------- ---------- ------
Earnings per share, basic, SEK 1.47 0.86 5.61 6.18
Earnings per share, diluted, SEK 1.46 0.86 5.59 6.15
---------------------------------- ------ ---------- ---------- ------
(a) Including impairment charge in match operations of 150 MSEK (b) Including provisions for acquisition of shares in Wimco Ltd. of 90 MSEK (c) Including income from sale of real estate of 206 MSEK
Consolidated Balance Sheet in summary
----------------------------------------------------------------------
MSEK
Dec 31, Dec 31,
2005 2004
------- -------
Intangible fixed assets 4,265 3,452
Tangible fixed assets 2,488 2,712
Financial fixed assets 1,150 848
Current operating assets 5,245 4,884
Short-term investments 1,929 1,815
Cash and bank 1,729 1,187
------- -------
Total assets 16,806 14,898
------------------------------------------------------ ------- -------
Swedish Match equity holders 5,079 4,579
Minority interests 3 481
------- -------
Total equity 5,083 5,060
Long-term provisions 3,072 2,512
Long-term loans 2,867 2,559
Other long-term liabilities 17 21
Short-term provisions 293 647
Short-term loans 1,464 970
Other current liabilities 4,010 3,129
------- -------
Total shareholders' equity, provisions and liabilities 16,806 14,898
------------------------------------------------------ ------- -------
Consolidated Cash Flow Statement in summary
----------------------------------------------------------------------
Full Full
year year
MSEK 2005 2004
------------------------------------------------------ ------- -------
Income after financial items 2,696 3,429
Non-cash items and taxes paid (283) (140)
Cash flow from operations before changes in
Working Capital 2,413 3,289
Cash flow from changes of Working Capital 305 337
------- -------
Cash flow from operations 2,718 3,626
Investments
Investments in property, plant and equipment (328) (486)
Sales of property, plant and equipment 628 42
Investments in intangibles - (34)
Investments in consolidated companies - (53)
Payment of minority shares in General Cigar (1,100) -
Investments in other companies (92) (10)
Divestment of business operations 184 117
Changes in financial receivables etc. (44) (47)
Changes in short-term investments(a) (113) (646)
------- -------
Cash flow from investments (865) (1,118)
Financing
Changes in loans 743 (1,819)
Dividend (612) (558)
Dividend paid to minority in subsidiaries - (121)
Repurchase of own shares (1,434) (658)
Sale of treasury shares 23 82
Other (162) 295
------- -------
Cash flow from financing (1,441) (2,779)
Cash flow for the period 412 (270)
Cash and bank at the beginning of the period 1,187 1,497
Translation difference attributable to cash and bank 130 (40)
------- -------
Cash and bank at the end of the period 1,729 1,187
------------------------------------------------------ ------- -------
1) Refers to investments in short term securities as part of the cash management activities. The sum of cash and bank and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments amounted to 3,657 MSEK at the end of the period compared to 3,002 MSEK at the end of 2004.
Change in Shareholders' equity
----------------------------------------------------------------------
MSEK Full year 2005 Full year 2004
-------- --------- ------- -------- --------- -------
Swedish Minority Total Swedish Minority Total
Match interest equity Match interest equity
equity equity
holders holders
-------- --------- ------- -------- --------- -------
Opening balance
as per Dec 31 4,579 481 5,060 3,758 604 4,362
New accounting
principle, PSF 40 40
New accounting
principle,
financial
instrument,
(IAS 39) 31 17 48
Repurchase of
own shares (1,434) (1,434) (658) (658)
Sale of treasury
shares 23 23 82 82
Dividend paid (612) (612) (558) (558)
Dividend paid to
minority in
subsidiaries (121) (121)
Acquisition of
minority shares
in Best
Blend (16) (16)
Acquisition of
minority shares
in General
Cigar (532) (532)
Divestment of
shares in Wimco (6) (6)
Fair value
reserve IAS 39
etc. 17 17
Translation
difference for
the period 707 34 741 (96) (58) (154)
Net income for
the period 1,769 9 1,777 2,011 72 2,084
-------- --------- ------- -------- --------- -------
Closing balance
at end of
period 5,079 3 5,083 4,579 481 5,060
---------------- -------- --------- ------- -------- --------- -------
Quarterly data
----------------------------------------------------------------------
MSEK Q1/04 Q2/04 Q3/04 Q4/04
------- ------- --------------
Sales, including tobacco tax 4,973 5,628 5,761 5,343
Less tobacco tax (1,971) (2,252) (2,342)(2,132)
------- ------- --------------
Sales 3,002 3,376 3,419 3,211
Cost of goods sold (1,585) (1,864) (1,804)(1,843)
------- ------- --------------
Gross profit 1,417 1,512 1,615 1,367
Sales and administrative expenses (901) (925) (913) (861)
Shares in earnings of associated co. (1) 0 (1) 2
------- ------- --------------
515 587 702 508
Income from real estate sale - - - -
Income from settlement with UST 1,417 104 - -
Match impairment charges - - (150) -
Provision for acquisition of shares in
Wimco Ltd - - (90) -
------- ------- --------------
Operating income 1,932 691 462 508
Net interest expense (42) (39) (32) (50)
Other financial items, net (4) 12 8 (17)
------- ------- --------------
Net financial items (47) (27) (24) (67)
------- ------- --------------
Profit before tax 1,886 664 438 441
Income taxes (740) (247) (213) (145)
------- ------- --------------
Net income for the period 1,146 417 225 297
--------------------------------------- ------- ------- --------------
Attributable to:
Swedish Match equity holders 1,136 397 206 273
Minority interests 10 20 19 23
------- ------- --------------
Net income for the period 1,146 417 225 297
--------------------------------------- ------- ------- --------------
Quarterly data
----------------------------------------------------------------------
MSEK Q1/05 Q2/05 Q3/05 Q4/05
------- ------- ------- -------
Sales, including tobacco tax 4,886 5,604 5,754 5,876
Less tobacco tax (1,918) (2,220) (2,294) (2,376)
------- ------- ------- -------
Sales 2,967 3,384 3,461 3,500
Cost of goods sold (1,629) (1,842) (1,848) (1,959)
------- ------- ------- -------
Gross profit 1,338 1,542 1,612 1,540
Sales and administrative expenses (802) (901) (860) (869)
Shares in earnings of associated co. 2 6 4 5
------- ------- ------- -------
538 647 756 678
Income from real estate sale - - 206 -
Income from settlement with UST - - - -
Match impairment charges - - - -
Provision for acquisition of shares in
Wimco Ltd - - - -
------- ------- ------- -------
Operating income 538 647 962 678
Net interest expense (18) (33) (33) (22)
Other financial items, net (2) 0 (7) (14)
------- ------- ------- -------
Net financial items (20) (33) (40) (36)
------- ------- ------- -------
Profit before tax 518 614 922 642
Income taxes (172) (209) (353) (186)
------- ------- ------- -------
Net income for the period 347 405 569 456
-------------------------------------- ------- ------- ------- -------
Attributable to:
Swedish Match equity holders 340 404 569 456
Minority interests 7 2 0 0
------- ------- ------- -------
Net income for the period 347 405 569 456
-------------------------------------- ------- ------- ------- -------
Sales by product area
----------------------------------------------------------------------
MSEK
Q1/04 Q2/04 Q3/04 Q4/04
------ ------ ------------
Snuff 751 814 791 726
Chewing Tobacco 254 282 285 237
Cigars 687 846 848 790
Pipe Tobacco & Accessories 211 214 234 242
Matches 324 340 348 366
Lighters 146 146 147 142
Other operations 628 734 766 708
------ ------ ------------
Total 3,002 3,376 3,419 3,211
------------------------------------------- ------ ------ ------------
Sales by product area
----------------------------------------------------------------------
MSEK
Q1/05 Q2/05 Q3/05 Q4/05
------ ------ ------ ------
Snuff 703 800 809 819
Chewing Tobacco 242 267 290 280
Cigars 734 841 874 834
Pipe Tobacco & Accessories 216 218 241 245
Matches 294 369 298 355
Lighters 143 155 156 166
Other operations 635 734 792 800
------ ------ ------ ------
Total 2,967 3,384 3,461 3,500
------------------------------------------ ------ ------ ------ ------
Operating income by product area
----------------------------------------------------------------------
MSEK
Q1/04 Q2/04 Q3/04 Q4/04
------ ----- ----- -----
Snuff 354 365 371 287
Chewing Tobacco 73 82 82 67
Cigars 129 156 174 108
Pipe Tobacco & Accessories 60 53 69 72
Matches (19) (37) 28 15
Lighters 8 9 6 (10)
Other operations (90) (40) (30) (30)
------ ----- ----- -----
Subtotal 515 587 702 508
Major one time items
Income from real estate sale - - - -
Income from settlement with UST 1,417 104 - -
Match impairment charges - - (150) -
Provision for acquisition of shares in Wimco
Ltd. - - (90) -
------ ----- ----- -----
Subtotal 1,417 104 (240) -
--------------------------------------------- ------ ----- ----- -----
Total 1,932 691 462 508
--------------------------------------------- ------ ----- ----- -----
Operating income by product area
----------------------------------------------------------------------
MSEK
Q1/05 Q2/05 Q3/05 Q4/05
----- ----- ----- -----
Snuff 324 388 401 392
Chewing Tobacco 69 83 94 100
Cigars 136 112 188 176
Pipe Tobacco & Accessories 60 56 62 60
Matches (17) 30 31 (31)
Lighters 12 15 16 1
Other operations (47) (37) (37) (20)
----- ----- ----- -----
Subtotal 538 647 756 678
Major one time items
Income from real estate sale - - 206 -
Income from settlement with UST - - - -
Match impairment charges - - - -
Provision for acquisition of shares in Wimco
Ltd. - - - -
----- ----- ----- -----
Subtotal - - 206 -
---------------------------------------------- ----- ----- ----- -----
Total 538 647 962 678
---------------------------------------------- ----- ----- ----- -----
Operating margin by product area
----------------------------------------------------------------------
Percent
Q1/04 Q2/04 Q3/04 Q4/04
----- ------ ----- -----
Snuff 47.1 44.8 46.9 39.5
Chewing Tobacco 28.7 29.0 28.8 28.4
Cigars 18.8 18.5 20.6 13.6
Pipe Tobacco & Accessories 28.4 24.6 29.7 29.8
Matches (5.7) (11.0) 8.1 4.2
Lighters 5.7 5.9 4.4 (7.3)
----- ------ ----- -----
Group* 17.2 17.4 20.5 15.8
--------------------------------------------- ----- ------ ----- -----
Operating margin by product area
----------------------------------------------------------------------
Percent
Q1/05 Q2/05 Q3/05 Q4/05
----- ----- ----- -----
Snuff 46.0 48.5 49.5 47.8
Chewing Tobacco 28.6 31.2 32.5 35.6
Cigars 18.6 13.3 21.5 21.1
Pipe Tobacco & Accessories 27.6 25.6 25.7 24.4
Matches (5.6) 8.2 10.5 (8.9)
Lighters 8.6 9.8 10.4 0.4
----- ----- ----- -----
Group* 18.1 19.1 21.9 19.4
---------------------------------------------- ----- ----- ----- -----
* Excluding major one time items Comparison of financial statements according to Swedish GAAP and IFRS In the tables below, the financial statements for the fourth quarter 2004 according to Swedish GAAP is accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. with the restated financial statements according to IFRS as well as the reconciliation between the two. A reconciliation of the full year 2004 financial statements according to Swedish GAAP and IFRS are presented in the fourth quarter interim report and annual report for year 2004.
Consolidated adjusted closing balance per Dec 31, 2004 in summary
----------------------------------------------------------------------
MSEK
Biological
Reported Goodwill assets IFRS
Dec 31, IAS 38 IAS 41 Dec 31,
2004
2004
-------- -------- ---------- -------
Intangible fixed assets 3,285 167 3,452
Tangible fixed assets 2,690 22 2,712
Financial fixed assets 848 848
Current operating assets 4,884 4,884
Short-term investment 1,815 1,815
Cash and bank 1,187 1,187
-------- -------- ---------- -------
Total assets 14,709 167 22 14,898
--------------------------------- -------- -------- ---------- -------
Swedish Match equity holders 4,421 143 15 4,579
Minority interests 473 7 1 481
-------- -------- ---------- -------
Total equity 4,894 150 16 5,060
Provisions 3,136 16 6 3,159
Long-term loans 2,559 2,559
Other long-term liabilities 21 21
Short-term loans 970 970
Other current liabilities 3,129 3,129
-------- -------- ---------- -------
Total shareholders' equity,
provisions and liabilities 14,709 167 22 14,898
--------------------------------- -------- -------- ---------- -------
Consolidated Income Statement January - December, 2004 in summary
----------------------------------------------------------------------
MSEK
Reported Goodwill Biological IFRS Reported
assets
Oct-Dec IAS 38 IAS 41 Oct-Dec Jan-Dec
2004 2004 2004
-------- -------- ---------- ------- --------
Sales, including tobacco
tax 5,343 5,343 21,705
Less tobacco tax (2,132) (2,132) (8,698)
-------- -------- ---------- ------- --------
Sales 3,211 3,211 13,007
Cost of goods sold (1,841) (3) (1,843) (7,262)
-------- -------- ---------- ------- --------
Gross profit 1,369 (3) 1,367 5,745
Sales and administrative
expenses (825) (825) (3,542)
Amortization, intangible
assets (79) 43 (37) (323)
Shares in earnings of
associated companies 2 2 1
-------- -------- ---------- ------- --------
468 43 (3) 508 1,882
Settlement income 0 0 1,521
-------- -------- ---------- ------- --------
Operating income 468 43 (3) 508 3,403
Net interest expense (50) (50) (163)
Other financial items,
net (17) (17) (2)
-------- -------- ---------- ------- --------
Net financial items (67) (67) (164)
-------- -------- ---------- ------- --------
Profit before taxes 401 43 (3) 441 3,238
Taxes (141) (4) 1 (145) (1,323)
-------- -------- ---------- ------- --------
Net income for the
period 260 39 (2) 297 1,915
------------------------ -------- -------- ---------- ------- --------
Attributable to:
Swedish Match equity
holders 239 37 (2) 273 1,852
Minority interests 21 2 0 23 64
-------- -------- ---------- ------- --------
Net income for the
period 260 39 (2) 297 1,915
------------------------ -------- -------- ---------- ------- --------
------------------------ -------- -------- ---------- ------- --------
Earnings per share,
basic, SEK 0.75 0.86 5.68
Earnings per share,
diluted, SEK 0.75 0.86 5.66
------------------------ -------- -------- ---------- ------- --------
Consolidated Income Statement January - December, 2004 in summary
----------------------------------------------------------------------
MSEK
Goodwill Biological IFRS
assets
IAS 38 IAS 41 Jan-Dec
2004
-------- ---------- -------
Sales, including tobacco tax 21,705
Less tobacco tax (8,698)
-------- ---------- -------
Sales 13,007
Cost of goods sold 15 (7,247)
-------- ---------- -------
Gross profit 15 5,760
Sales and administrative expenses (3,542)
Amortization, intangible assets 175 (147)
Shares in earnings of associated companies 1
-------- ---------- -------
175 15 2,072
Settlement income 1,521
-------- ---------- -------
Operating income 175 15 3,593
Net interest expense (163)
Other financial items, net (2)
-------- ---------- -------
Net financial items (164)
-------- ---------- -------
Profit before taxes 175 15 3,429
Taxes (18) (4) (1,345)
-------- ---------- -------
Net income for the period 157 11 2,084
------------------------------------------ -------- ---------- -------
Attributable to:
Swedish Match equity holders 149 10 2,011
Minority interests 8 1 72
-------- ---------- -------
Net income for the period 157 11 2,084
------------------------------------------ -------- ---------- -------
------------------------------------------ -------- ---------- -------
Earnings per share, basic, SEK 6.18
Earnings per share, diluted, SEK 6.15
------------------------------------------ -------- ---------- -------
____________ Swedish Match AB (publ), SE-118 85 Stockholm Visiting address: Rosenlundsgatan 36, Telephone: 08 658 02 00 Corporate Identity Number: 556015-0756 www.swedishmatch.com ____________ |
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