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rsrapport</gsd:InformationOnTypeOfSubmittedReport><gsd:IdentificationNumberCvrOfReportingEntity contextRef="duration_CY_only">31080185</gsd:IdentificationNumberCvrOfReportingEntity><gsd:NameOfReportingEntity contextRef="duration_CY_only">SCANDINAVIAN TOBACCO GROUP A/S</gsd:NameOfReportingEntity><gsd:AddressOfReportingEntityStreetName contextRef="duration_CY_only">Sydmarken</gsd:AddressOfReportingEntityStreetName><gsd:AddressOfReportingEntityStreetBuildingIdentifier contextRef="duration_CY_only">42</gsd:AddressOfReportingEntityStreetBuildingIdentifier><gsd:AddressOfReportingEntityPostCodeIdentifier contextRef="duration_CY_only">2860</gsd:AddressOfReportingEntityPostCodeIdentifier><gsd:AddressOfReportingEntityDistrictName contextRef="duration_CY_only">Soeborg</gsd:AddressOfReportingEntityDistrictName><gsd:AddressOfReportingEntityCountry contextRef="duration_CY_only">Denmark</gsd:AddressOfReportingEntityCountry><gsd:TelephoneNumberOfReportingEntity contextRef="duration_CY_only">+45 3955 6200</gsd:TelephoneNumberOfReportingEntity><gsd:HomepageOfReportingEntity contextRef="duration_CY_only">www.st-group.com</gsd:HomepageOfReportingEntity><gsd:EmailOfReportingEntity contextRef="duration_CY_only">info@st-group.com</gsd:EmailOfReportingEntity><gsd:ReportingPeriodStartDate contextRef="duration_CY_only">2017-01-01</gsd:ReportingPeriodStartDate><gsd:ReportingPeriodEndDate contextRef="duration_CY_only">2017-12-31</gsd:ReportingPeriodEndDate><gsd:PrecedingReportingPeriodStartDate contextRef="duration_CY_only">2016-01-01</gsd:PrecedingReportingPeriodStartDate><gsd:PredingReportingPeriodEndDate contextRef="duration_CY_only">2016-12-31</gsd:PredingReportingPeriodEndDate><gsd:DateOfGeneralMeeting contextRef="duration_CY_only">2018-04-26</gsd:DateOfGeneralMeeting><gsd:NameAndSurnameOfChairmanOfGeneralMeeting contextRef="duration_CY_only">Christian Lundgren</gsd:NameAndSurnameOfChairmanOfGeneralMeeting><cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_1">Niels Frederiksen</cmn:NameAndSurnameOfMemberOfExecutiveBoard><cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_2">Sisse Fjelsted Rasmussen</cmn:NameAndSurnameOfMemberOfExecutiveBoard><cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_3">Christian Hother Sørensen</cmn:NameAndSurnameOfMemberOfExecutiveBoard><cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_4">Vincent Crepy</cmn:NameAndSurnameOfMemberOfExecutiveBoard><cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_5">Craig Reynolds</cmn:NameAndSurnameOfMemberOfExecutiveBoard><cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_6">Hanne Berg</cmn:NameAndSurnameOfMemberOfExecutiveBoard><cmn:TitleOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_1">CEO</cmn:TitleOfMemberOfExecutiveBoard><cmn:TitleOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_2">GROUP CFO</cmn:TitleOfMemberOfExecutiveBoard><cmn:TitleOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_3">EXECUTIVE VICE PRESIDENT, SALES & MARKETING</cmn:TitleOfMemberOfExecutiveBoard><cmn:TitleOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_4">EXECUTIVE VICE PRESIDENT, SUPPLY CHAIN</cmn:TitleOfMemberOfExecutiveBoard><cmn:TitleOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_5">EXECUTIVE VICE PRESIDENT, HANDMADE CIGARS AND NORTH AMERICA</cmn:TitleOfMemberOfExecutiveBoard><cmn:TitleOfMemberOfExecutiveBoard contextRef="duration_CY_IdentificationOfMemberOfExecutiveBoardAxis_cmn_memberOfBoardIdentifier_only_6">CHRO & SENIOR VICE PRESIDENT</cmn:TitleOfMemberOfExecutiveBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_1">Nigel Northridge</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_2">Henrik Brandt</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_3">Søren Bjerre-Nielsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_4">Dianne Neal Blixt</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_5">Luc Missorten</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_6">Henning Kruse Petersen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_7">Kurt Asmussen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_8">Lindy Larsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_9">Hanne Malling</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_10">Mogens Olsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard><cmn:TitleOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_1">Chairman</cmn:TitleOfMemberOfSupervisoryBoard><cmn:TitleOfMemberOfSupervisoryBoard contextRef="duration_CY_IdentificationOfMemberOfSupervisoryBoardAxis_cmn_memberOfBoardIdentifier_only_2">Vice-Chairman</cmn:TitleOfMemberOfSupervisoryBoard><cmn:IdentificationNumberCvrOfAuditFirm contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_1">33771231</cmn:IdentificationNumberCvrOfAuditFirm><cmn:IdentificationNumberCvrOfAuditFirm contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_2">33771231</cmn:IdentificationNumberCvrOfAuditFirm><cmn:NameOfAuditFirm contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_1">PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm><cmn:NameOfAuditFirm contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_2">PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm><gsd:IdentificationNumberCvrOfSubmittingEnterprise contextRef="duration_CY_only">31080185</gsd:IdentificationNumberCvrOfSubmittingEnterprise><gsd:NameOfSubmittingEnterprise contextRef="duration_CY_only">SCANDINAVIAN TOBACCO GROUP A/S</gsd:NameOfSubmittingEnterprise><gsd:AddressOfSubmittingEnterpriseStreetAndNumber contextRef="duration_CY_only">Sydmarken 42</gsd:AddressOfSubmittingEnterpriseStreetAndNumber><gsd:AddressOfSubmittingEnterprisePostcodeAndTown contextRef="duration_CY_only">2860 Soeborg</gsd:AddressOfSubmittingEnterprisePostcodeAndTown><arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements contextRef="duration_CY_only">To the Shareholders of Scandinavian Tobacco Group A/S</arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements><arr:OpinionOnAuditedFinancialStatements contextRef="duration_CY_only">In our opinion, the Consolidated Financial Statements give a true and<br/>fair view of the Groupâs financial position at 31 December 2017 and of<br/>the results of the Groupâs operations and cash flows for the financial year<br/>1 January to 31 December 2017 in accordance with International<br/>Financial Reporting Standards as adopted by the EU and further requirements<br/>in the Danish Financial Statements Act.<br/><br/>Moreover, in our opinion, the Parent Company Financial Statements give<br/>a true and fair view of the Parent Companyâs financial position at 31<br/>December 2017 and of the results of the Parent Companyâs operations<br/>for the financial year 1 January to 31 December 2017 in accordance with<br/>the Danish Financial Statements Act.<br/><br/>Our opinion is consistent with our Auditorâs Long-form Report to the<br/>Audit Committee and the Board of Directors.<br/><br/>WHAT WE HAVE AUDITED<br/>The Consolidated Financial Statements of Scandinavian Tobacco Group<br/>A/S for the financial year 1 January to 31 December 2017 comprise the<br/>consolidated income statement and statement of comprehensive<br/>income, the consolidated balance sheet, the consolidated statement of<br/>changes in equity, the consolidated cash flow statement and the notes,<br/>including summary of significant accounting policies.<br/><br/>The Parent Company Financial Statements of Scandinavian Tobacco<br/>Group A/S for the financial year 1 January to 31 December 2017<br/>comprise the income statement, the balance sheet, the statement of<br/>changes in equity and the notes, including summary of significant<br/>accounting policies.<br/><br/>Collectively referred to as the âFinancial Statementsâ.</arr:OpinionOnAuditedFinancialStatements><arr:DescriptionOfQualificationsOfAuditedFinancialStatements contextRef="duration_CY_only">We conducted our audit in accordance with International Standards on<br/>Auditing (ISAs) and the additional requirements applicable in Denmark.<br/>Our responsibilities under those standards and requirements are further<br/>described in the Auditorâs responsibilities for the audit of the Financial<br/>Statements section of our report.<br/><br/>We believe that the audit evidence we have obtained is sufficient and<br/>appropriate to provide a basis for our opinion.<br/><br/>INDEPENDENCE<br/>We are independent of the Group in accordance with the International<br/>Ethics Standards Board for Accountantsâ Code of Ethics for Professional<br/>Accountants (IESBA Code) and the additional requirements applicable in<br/>Denmark. We have also fulfilled our other ethical responsibilities in<br/>accordance with the IESBA Code.<br/><br/>To the best of our knowledge and belief, prohibited non-audit services<br/>referred to in Article 5(1) of Regulation (EU) No 537/2014 were not<br/>provided.<br/><br/>APPOINTMENT<br/>Following the admission of shares of Scandinavian Tobacco Group A/S<br/>for the listing on Nasdaq Copenhagen, we were first appointed auditors<br/>of Scandinavian Tobacco Group A/S on 26 April 2017. We have been<br/>reappointed annually by shareholder resolution for a total period of<br/>uninterrupted engagement of 1 years, including the financial year 2017.</arr:DescriptionOfQualificationsOfAuditedFinancialStatements><arr:KeyAuditMattersAudit contextRef="duration_CY_only">Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2017.<br/>These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not<br/>provide a separate opinion on these matters.<br/><br/>IMPAIRMENT OF GOODWILL AND INTANGIBLE<br/>ASSETS ASSESSMENT<br/>The principal risk in relation to goodwill and intangible<br/>assets is impairment due to for example changes<br/>in local regulations, changes to excise duties, and<br/>changes in the strategy of the Group.<br/><br/>Management prepared valuations of the operating<br/>segments Handmade cigars, Machine-made cigars,<br/>Pipe tobacco, Fine-cut tobacco and Other.<br/><br/>Values for strategic trademarks with indefinite live<br/>and other trademarks are separately tested for<br/>impairment.<br/><br/>The most critical assumptions are the estimation of<br/>future cash flows, especially growth in EBITDA,<br/>terminal growth and the discount rates.<br/><br/>We focused on this area as the determination of<br/>whether elements of goodwill and intangible assets<br/>are impaired involves complex and subjective<br/>judgements by the Management about the future<br/>results of the relevant parts of the business.<br/><br/>Refer to Note 3.1<br/><br/>HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER<br/><br/>Our audit procedures included assessing the Groupâs<br/>impairment model.<br/><br/>We obtained impairment tests prepared by<br/>Management and evaluated the reasonableness of<br/>estimates and judgements made by Management in<br/>preparing these.<br/><br/>We challenged Management analysis around the key<br/>drivers of the cash flow forecasts including the ability<br/>to increase market share and achieve price increases<br/>in declining markets. We also evaluated the<br/>appropriateness of the key assumptions including<br/>discount rates, short-term and long-term growth<br/>rates and performed sensitivities across the reporting<br/>segments.<br/><br/>We used our own specialist to evaluate the discount<br/>rates.<br/><br/>We tested the reliability of Managementâs estimates<br/>by comparing budgeted figures to actual figures for<br/>the past years.<br/><br/>UNCERTAIN TAX POSITIONS<br/>The Group operates in a complex multinational tax<br/>environment and related risks in transfer pricing<br/>cases with domestic and foreign tax authorities.<br/>Management is required to exercise considerable<br/>judgement when determining the appropriate<br/>provision amount for uncertain tax positions.<br/><br/>We focused on this area given the number of<br/>judgements involved and the complexities of dealing<br/>with tax rules and regulations in numerous jurisdictions.<br/><br/>Refer to Note 2.5<br/><br/>HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER<br/><br/>We evaluated completeness of records of uncertain<br/>tax positions and Managementâs procedure for<br/>estimating the provision for uncertain tax positions.<br/><br/>We discussed with Management issues relating to<br/>determining the appropriate provision for uncertain<br/>tax positions.<br/><br/>In addition, we used our own tax specialists and<br/>evaluated the adequacy of Managementâs key<br/>assumptions and read relevant correspondence with<br/>tax authorities to assess the valuation of uncertain<br/>tax positions.</arr:KeyAuditMattersAudit><arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements contextRef="duration_CY_only">Management is responsible for Management Report.<br/><br/>Our opinion on the Financial Statements does not cover Management<br/>Report, and we do not express any form of assurance conclusion<br/>thereon.<br/><br/>In connection with our audit of the Financial Statements, our responsibility<br/>is to read Management Report and, in doing so, consider whether<br/>Management Report is materially inconsistent with the Financial<br/>Statements or our knowledge obtained in the audit, or otherwise<br/>appears to be materially misstated.<br/><br/>Moreover, we considered whether Management Report includes the<br/>disclosures required by the Danish Financial Statements Act.<br/><br/>Based on the work we have performed, in our view, Management Report<br/>is in accordance with the Consolidated Financial Statements and the<br/>Parent Company Financial Statements and has been prepared in<br/>accordance with the requirements of the Danish Financial Statements<br/>Act. We did not identify any material misstatement in Management<br/>Report.</arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements><arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements contextRef="duration_CY_only">Management is responsible for the preparation of consolidated financial<br/>statements that give a true and fair view in accordance with International<br/>Financial Reporting Standards as adopted by the EU and further<br/>requirements in the Danish Financial Statements Act and for the<br/>preparation of parent company financial statements that give a true and<br/>fair view in accordance with the Danish Financial Statements Act, and for<br/>such internal control as Management determines is necessary to enable<br/>the preparation of financial statements that are free from material<br/>misstatement, whether due to fraud or error.<br/><br/>In preparing the Financial Statements, Management is responsible for<br/>assessing the Groupâs and the Parent Companyâs ability to continue as a<br/>going concern, disclosing, as applicable, matters related to going<br/>concern and using the going concern basis of accounting unless<br/>Management either intends to liquidate the Group or the Parent<br/>Company or to cease operations, or has no realistic alternative but to do<br/>so.</arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements><arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed contextRef="duration_CY_only">Our objectives are to obtain reasonable assurance about whether the<br/>Financial Statements as a whole are free from material misstatement,<br/>whether due to fraud or error, and to issue an auditorâs report that<br/>includes our opinion. Reasonable assurance is a high level of assurance,<br/>but is not a guarantee that an audit conducted in accordance with ISAs<br/>and the additional requirements applicable in Denmark will always detect<br/>a material misstatement when it exists. Misstatements can arise from fraud<br/>or error and are considered material if, individually or in the aggregate,<br/>they could reasonably be expected to influence the economic decisions of<br/>users taken on the basis of these Financial Statements.<br/><br/>As part of an audit in accordance with ISAs and the additional requirements<br/>applicable in Denmark, we exercise professional judgement and<br/>maintain professional scepticism throughout the audit. We also:<br/><br/>⢠Identify and assess the risks of material misstatement of the Financial<br/>Statements, whether due to fraud or error, design and perform audit<br/>procedures responsive to those risks, and obtain audit evidence that is<br/>sufficient and appropriate to provide a basis for our opinion. The risk of<br/>not detecting a material misstatement resulting from fraud is higher than<br/>for one resulting from error, as fraud may involve collusion, forgery,<br/>intentional omissions, misrepresentations, or the override of internal<br/>control.<br/>⢠Obtain an understanding of internal control relevant to the audit in order<br/>to design audit procedures that are appropriate in the circumstances, but<br/>not for the purpose of expressing an opinion on the effectiveness of the<br/>Groupâs and the Parent Companyâs internal control.<br/>⢠Evaluate the appropriateness of accounting policies used and the<br/>reasonableness of accounting estimates and related disclosures made by<br/>Management.<br/>⢠Conclude on the appropriateness of Managementâs use of the going<br/>concern basis of accounting and based on the audit evidence obtained,<br/>whether a material uncertainty exists related to events or conditions that<br/>may cast significant doubt on the Groupâs and the Parent Companyâs<br/>ability to continue as a going concern. If we conclude that a material<br/>uncertainty exists, we are required to draw attention in our auditorâs<br/>report to the related disclosures in the Financial Statements or, if such<br/>disclosures are inadequate, to modify our opinion. Our conclusions are<br/>based on the audit evidence obtained up to the date of our auditorâs<br/>report. However, future events or conditions may cause the Group or the<br/>Parent Company to cease to continue as a going concern.<br/>⢠Evaluate the overall presentation, structure and content of the Financial<br/>Statements, including the disclosures, and whether the Financial<br/>Statements represent the underlying transactions and events in a<br/>manner that achieves fair presentation.<br/>⢠Obtain sufficient appropriate audit evidence regarding the financial<br/>information of the entities or business activities within the Group to<br/>express an opinion on the Consolidated Financial Statements. We are<br/>responsible for the direction, supervision and performance of the group<br/>audit. We remain solely responsible for our audit opinion.<br/><br/>We communicate with those charged with governance regarding, among<br/>other matters, the planned scope and timing of the audit and significant<br/>audit findings, including any significant deficiencies in internal control that<br/>we identify during our audit.<br/><br/>We also provide those charged with governance with a statement that we<br/>have complied with relevant ethical requirements regarding independence,<br/>and to communicate with them all relationships and other matters<br/>that may reasonably be thought to bear on our independence, and where<br/>applicable, related safeguards.<br/><br/>From the matters communicated with those charged with governance, we<br/>determine those matters that were of most significance in the audit of the<br/>Financial Statements of the current period and are therefore the key audit<br/>matters. We describe these matters in our auditorâs report unless law or<br/>regulation precludes public disclosure about the matter or when, in<br/>extremely rare circumstances, we determine that a matter should not be<br/>communicated in our report because the adverse consequences of doing<br/>so would reasonably be expected to outweigh the public interest benefits<br/>of such communication.</arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed><arr:SignatureOfAuditorsPlace contextRef="duration_CY_only">Copenhagen</arr:SignatureOfAuditorsPlace><arr:SignatureOfAuditorsDate contextRef="duration_CY_only">2018-03-08</arr:SignatureOfAuditorsDate><cmn:NameAndSurnameOfAuditor contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_1">Torben Jensen</cmn:NameAndSurnameOfAuditor><cmn:NameAndSurnameOfAuditor contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_2">Søren Ãrjan Jensen</cmn:NameAndSurnameOfAuditor><cmn:DescriptionOfAuditor contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_1">STATE AUTHORISED PUBLIC ACCOUNTANT</cmn:DescriptionOfAuditor><cmn:DescriptionOfAuditor contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_2">STATE AUTHORISED PUBLIC ACCOUNTANT</cmn:DescriptionOfAuditor><arr:IdentificationNumberOfAuditor contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_1">mne18651</arr:IdentificationNumberOfAuditor><arr:IdentificationNumberOfAuditor contextRef="duration_CY_IdentificationOfAuditorDimension_cmn_auditorIdentificer_only_2">mne33226</arr:IdentificationNumberOfAuditor><mrv:StatementOfCorporateSocialResponsibility contextRef="duration_CY_only">We want Scandinavian Tobacco Groupâs business to be conducted to the<br/>highest standards. We are committed to honest and ethical behaviour,<br/>and we want commercial partners, employees, civil society, regulators<br/>and others with whom we engage, to consider us to be trustworthy and<br/>transparent.<br/><br/>Our Code of Conduct describes the behaviour we expect from every one of<br/>our employees in order to ensure compliance and high ethical standards<br/>across our business. The Code of Conduct also comprises our fundamental<br/>beliefs and overall policies in the area of social responsibility, including<br/>our commitment to respect human rights and labour rights, to limit our<br/>impact on the environment and our will to provide safe and healthy working<br/>conditions for our employees.<br/><br/>Based on the Code of Conduct, we have developed internal<br/>policies, guidelines and projects to turn the Code into actions<br/>and to continuously improve in terms of sustainability. Our<br/>Code of Conduct is available on st-group.com/codeofconduct.<br/><br/>For the statutory statement on corporate social responsibility in compliance<br/>with section 99a of the Danish Financial Statements Act, see the<br/>Corporate Social Responsibility Report for 2017, which is available on<br/>st-group.com/csrreport2017.</mrv:StatementOfCorporateSocialResponsibility><mrv:LinkToStatementOfCorporateSocialResponsibility contextRef="duration_CY_only">st-group.com/csrreport2017</mrv:LinkToStatementOfCorporateSocialResponsibility><mrv:CorporateGovernanceReport contextRef="duration_CY_only">The Groupâs corporate governance is based on the Danish Companies Act,<br/>the Danish Financial Statement Act, the International Financial Reporting<br/>Standards (IFRS), the Danish Securities Trading Act, Nasdaq Copenhagen<br/>A/Sâ Rules for Issuers of Shares and the Companyâs articles of association.<br/><br/>The ultimate authority over the Company is held by the shareholders<br/>who exercise their rights at general meetings. The annual report and<br/>amendments to the articles of association are approved by the general<br/>meeting which also elects members of the Board of Directors and the<br/>independent auditor. The general meeting exercises its powers pursuant<br/>to the provisions of Scandinavian Tobacco Groupâs articles of association<br/>which are available on st-group.com. In 2017, the Annual General Meeting<br/>was held on 26 April.<br/><br/>As a publicly listed company, Scandinavian Tobacco Group is required by<br/>law to report on its compliance with the Danish Recommendations on<br/>Corporate Governance, which can be found at corporategovernance.dk.<br/>The Company is required to report whether it complies with the Recommendations,<br/>and if it does not comply, an explanation must be provided<br/>(âcomply-or-explain principleâ).<br/><br/>REMUNERATION<br/>Scandinavian Tobacco Groupâs remuneration policy lays down the<br/>principles governing remuneration of the Board of Directors and Executive<br/>Management and provides general guidelines for incentive pay to the<br/>members of the Executive Management in accordance with the Danish<br/>Companies Act and the Corporate Governance Recommendations.<br/><br/>The overall objective of the remuneration policy is to attract, motivate<br/>and retain qualified members of the Board of Directors and Executive<br/>Management. The policy aims at aligning the interests of shareholders,<br/>Board of Directors and Executive Management and rewards both short<br/>term and long-term contributions and results. The remuneration policy<br/>can be found on st-group.com.<br/><br/>A detailed description of the main elements of the remuneration of the<br/>Board of Directors and the Executive Management and the remuneration<br/>paid in the financial year 2017 are included in note 2.2 of the consolidated<br/>financial statements.</mrv:CorporateGovernanceReport><mrv:StatementOfTargetFiguresAndPoliciesForTheUnderrepresentedGender contextRef="duration_CY_only">The Board of Directors believes that members of the Board should be<br/>elected based on their professional experience and qualifications, but also<br/>that diversity improves the quality of discussions and decision-making not<br/>only in the Board of Directors but in the Group as a whole. Diversity brings<br/>strength to our Group. The Board of Directors has adopted the Groupâs<br/>Diversity and Inclusion Policy, which is available at st-group.com.<br/><br/>A description of the companyâs activities to ensure relevant diversity at<br/>management levels, including the goals and accounting for its objectives<br/>and progress made in achieving the objectives can be found on<br/>st-group.com/diversityandinclusionreport.</mrv:StatementOfTargetFiguresAndPoliciesForTheUnderrepresentedGender><mrv:LinkToStatementOfTargetFiguresAndPoliciesForTheUnderrepresentedGender contextRef="duration_CY_only">st-group.com/diversityandinclusionreport</mrv:LinkToStatementOfTargetFiguresAndPoliciesForTheUnderrepresentedGender><ifrs-dk:NetSales contextRef="duration_CY_only" decimals="-5" unitRef="DKK">6463500000</ifrs-dk:NetSales><ifrs-dk:NetSales contextRef="duration_LY_only" decimals="-5" unitRef="DKK">6745600000</ifrs-dk:NetSales><ifrs-full:OtherIncome contextRef="duration_CY_only" decimals="-5" 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