Swedish Match — Capital/Financing Update 2016

Sep 9, 2016

SUPPLEMENTARY OFFERING CIRCULAR DATED 9 SEPTEMBER 2016

SWEDISH MATCH AB (PUBL)

(incorporated with limited liability in Sweden)

€1,500,000,000 Global Medium Term Note Programme

This Supplementary Offering Circular (the Supplement) to the Offering Circular dated 30 August 2016 (the Offering Circular), which comprises a base prospectus, constitutes a supplementary prospectus for the purposes of Section 87G of the Financial Services and Markets Act 2000 (the FSMA) and is prepared in connection with the Global Medium Term Note Programme (the Programme) established by Swedish Match AB (publ) (the Issuer). Terms defined in the Offering Circular have the same meaning when used in this Supplement.

This Supplement is supplemental to, and should be read in conjunction with, the Offering Circular and any other supplements to the Offering Circular issued by the Issuer.

The Issuer accepts responsibility for the information contained in this Supplement. To the best of the knowledge of the Issuer (which has taken all reasonable care to ensure that such is the case) the information contained in this Supplement is in accordance with the facts and does not omit anything likely to affect the import of such information.

1. Purpose of the Supplement

The purpose of this Supplement is to update the History and Development section of the Offering Circular in relation to the sale of shares in Scandinavian Tobacco Group A/S.

2. Update of History and Development

The History and Development section on page 65 of the Offering Circular shall be deemed supplemented with the addition of the following paragraph:

"Swedish Match Cigars Holding AB (the Seller), a wholly-owned subsidiary to Swedish Match AB (publ), has sold in total 13,000,000 shares in Scandinavian Tobacco Group A/S, a company listed on Nasdaq Copenhagen, (STG) through an accelerated bookbuilding process to institutional investors at a price of DKK 106 per share (the Placing).

Following the Placing, the Seller owns 18,069,906 shares, corresponding to 18.1 per cent of the total number of shares and votes in STG. The Seller has agreed to a 90-day lock-up undertaking on the remaining shares held in STG."

In addition, the word "currently" should be deemed to be removed from the fifth line of the fourth paragraph of the History and Development section, as well as the removal of the final sentence of the fourth paragraph of the History and Development section.

3. General

To the extent that there is any inconsistency between (a) any statement in this Supplement and (b) any other statement in, or incorporated by reference into, the Offering Circular, the statements in (a) above will prevail.

Save as disclosed in this Supplement there has been no other significant new factor, material mistake or inaccuracy relating to information included in the Offering Circular since the publication of the Offering Circular.