Scandinavian Tobacco Group A/S: Implementation of Incentive Programmes and Reporting of Transactions in Accordance with Sect. 28a of Danish Sec. Trad. Act

COMPANY ANNOUNCEMENT
No. 28/2016

                                                                                                                                  Copenhagen, 27 June 2016

Implementation of Incentive Programmes and Reporting of Transactions in Accordance with Section 28a of the Danish Securities Trading Act


Scandinavian Tobacco Group A/S has today implemented i) a long-term incentive programme (the LTIP) for certain members of the Executive Management and certain members of senior management, and ii) a transition share programme (the TSP) for certain members of the Executive Management and certain members of senior management.

The two programmes comprise a total of 166,239 performance share units (PSUs) of which 128,084 PSUs have been granted to members of the Executive Management, and a total of 38,155 PSUs have been granted to certain members of senior management. The number of PSUs granted to each participant in the programme has been based on the average share price of the 10 trading days following the listing of the company on 10 February 2016 on Nasdaq Copenhagen. Further, the participants have received PSUs corresponding to the dividend paid by the company in April 2016.

Upon vesting, each PSU entitles the holder to receive one share in Scandinavian Tobacco Group A/S at no cost. The actual number of shares vesting may range between 0 and 200% of the grant and is determined by the achievement of certain performance indicators in the financial years 2016, 2017 and 2018 for the LTIP and the financial years 2016 and 2017 for the TSP. The maximum total number of vested shares under the programmes is 332,478 shares based on an achieved full performance (200%).

Prior to vesting, holders of PSUs are not entitled to any of the rights which shareholders hold, except from the right to dividends which will be converted into additional PSUs.


Reference is also made to the offering circular published by Scandinavian Tobacco Group A/S on 28 January 2016 and the company's Remuneration Policy as published on the company's website www.st-group.com.

With reference to section 28a of the Danish Securities Trading Act, the following transactions in securities of Scandinavian Tobacco Group A/S have been reported by members of the Executive Management and the Key Employee:

For further information, please contact:

For media enquiries:
Kaspar Bach Habersaat, Director of Group Communications, phone: +45 7220 7152
or kaspar.bach@st-group.com.

For investor enquiries:
Torben Sand, Head of Investor Relations, phone: +45 7220 7126 or torben.sand@st-group.com.