Essity Ab Class A · OMXSTO:ESSITY_A
Essity Ab Class A — Investor Day (May 2026)
122 slides from Essity Ab Class A's investor day presentation, May 7, 2026
Slide 1: Capital Markets Day
Capital Markets Day
Slide 2: Accelerating progress by sharpening focus and execution
CMD 2026 Accelerating progress by sharpening focus and execution
Slide 3: Agenda
Agenda Essity – Ulrika Kolsrud Q&A Health & Medical – Anand Chandarana Personal Care – Tuomas Yrjölä Break with demo of innovations Consumer Tissue – Volker Zöller Professional Hygiene – Pablo Fuentes Essity Financials – Fredrik Rystedt Q&A and Summary R&D tour and lunch Site visits – Lilla Edet or
Slide 4: Forward-looking statements
Forward-looking statements Certain statements in this presentation includes forward-looking statements, including statements reflecting management’s current views relating to the growth of the market, future market conditions, future events, financial conditions, and expected operational performance
Slide 5: Ulrika Kolsrud
Ulrika Kolsrud President and CEO
Slide 6: Accelerating progress by sharpening focus and execution
CMD 2026 Accelerating progress by sharpening focus and execution Ulrika Kolsrud President and CEO May 7, 2026
Slide 7: Strengthening the conditions for profitable growth
Strengthening the conditions for profitable growth Decentralized Savings program for organization with investment in end-to-end profitable growth accountability Feminine Care Review of portfolio acquisition in composition North America
Slide 8: Strategic review of Consumer Tissue initiated
Strategic review of Net sales split 2025 Consumer Tissue initiated Consumer Professional Tissue, 31% Hygiene, 26% Aiming to create the best possible conditions for the Consumer Tissue and the Group to develop to their full potential and maximize value creation Part of our efforts to optimize Essity'
Slide 9: Consumer Tissue
Consumer Tissue 2025 Key figures Consumer Tissue includes toilet paper, Net sales: SEK 43,537m household towels, napkins, handkerchiefs, facial tissues and moist toilet paper EBITA excl IAC: SEK 5,187m Leading brands such as Lotus, Tempo, Zewa, EBITA margin excl IAC: 11.9% Cushelle, Plenty, Regio oc
Slide 10: Essity – a global, leading hygiene and health company
Essity – a global, leading hygiene and health company Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 11: With strong financial fundamentals
With strong financial fundamentals Key figures 2025 Net sales EBITA excl IAC EBITA excl IAC margin 138 SEKbn 19.6 SEKbn 14.1 % Operating cash flow Net debt/EBITDA excl IAC ROCE excl IAC 15.0 SEKbn 1.0 17.2 %
Slide 12: Enabling increasing shareholder returns
Enabling increasing shareholder returns Earnings per share Total shareholder return 2021 – YTD 2026 18.37 +50% vs 2021 SEK Index 140 Essity +10% Dividend per share 8.75 120 100 SEK +25% vs 2021 80 Peer Group* -19% Share buybacks 9.0 60 2021 2022 2023 2024 2025 2026 SEKbn *The peer group consists of:
Slide 13: Leading positions with strong brands
Leading positions with strong brands Own brands 80% of net sales 2025 #1 or #2 90% of branded sales #1 60% of branded sales
Slide 14: In a market supported by favorable trends
In a market supported by favorable trends Essity’s global Aging population globally hygiene and health market 20251) Increased focus on health and well-being EUR ~67bn Increased prevalence of 2-3% chronic conditions 1) Market size 2025 for core business and where Essity is present. Market growth rat
Slide 15: A more attractive portfolio
A more attractive portfolio Net sales split Professional Professional Hygiene Hygiene 26% Consumer Consumer Tissue 31% Tissue Personal Personal Care 23% Care Health & Medical Health & Medical 20% 2022 Q1 2026
Slide 16: Committed to our financial targets
Finansiella mål för lönsam tillväxt Committed to our financial targets och ökat aktieägarvärde Annual organic EBITA margin sales growth >3% excl. IAC >15% Årlig organisk EBITA marginal försäljningstillväxt >3% exkl. IAC >15%
Slide 17: Differentiated offerings supporting market share gains and pricing
Differentiated offerings supporting market share gains and pricing Superiority % net sales with customer/ consumer preference 73% 64% 59% 56% 40% 2017 2020 2023 2024 2025
Slide 18: Better, safer, faster and softer
Better, safer, faster and softer Dispensers with batteries Ultra-thin pads with the The Sorbact® technology Fluffy toilet paper - lasting up to 6 years, unique SmartPROTECT for improved wound Great value, same setting a new industry technology provides management cushiony softness standard higher le
Slide 19: Strong innovation capabilities
Strong innovation capabilities Innovation rate Internal capabilities and external collaboration >50%rolling 3 years Global scale and local relevance of net sales from new products, B2C Insights based, technology enabled Margin accretive Protected +3pp average gross profit 1,000 patent families innov
Slide 20: Digital transformation across the value chain
Digital transformation across the value chain Up to Efficiency improvements across value chain 75% efficiency gain in Superior and seamless customer claims development experience Winning in the fastest growing sales channels Up to Organic sales growth -20% +13% production waste in E-commerce 2025
Slide 21: Leadership in sustainability
Leadership in Science-based sustainability Widely recognized as leader in sustainability climate targets, Scope 1 and 2 Sustainable innovations Decarbonizing operations Alternative energy sources -27% outcome 2025 vs 2016 M-Save and E-Save Target -35% 2030 programs New technologies Advancing hygiene
Slide 22: Highly engaged employees
Highly engaged employees Employee satisfaction driven by: Employee Company culture and sense of satisfaction +4 pp belonging Clear goals and priorities Strong leadership vs benchmark
Slide 23: Strengthening the conditions for profitable growth
Strengthening the conditions for profitable growth Decentralized Savings program for organization with investment in end-to-end profitable growth accountability Feminine Care Review of portfolio acquisition in composition North America
Slide 24: Sharpening focus and execution
Sharpening focus and execution Financial goals for each business area with end-to-end accountability Health & Medical Personal Care Clear actions and targeted initiatives to increase profitable growth Incentives aligned to drive progress Consumer Tissue Professional Hygiene
Slide 25: Actions to accelerate progress and returns
Actions to accelerate progress and returns Lowering our Sharpening Investing Accelerating cost base the innovation to grow portfolio shift further agenda
Slide 26: Accelerating portfolio shift
Accelerating portfolio shift M&A strategy Feminine Care Wound Care Continence Care North America Professional Hygiene Geographic white spaces Know-how Emerging markets Technologies Channel access / expansion
Slide 27: Our growth pillars
Our growth pillars Grow the CORE Expand for MORE Annual organic sales growth >3% Continue to EXPLORE
Slide 28: Our margin contributors
Our margin contributors Portfolio & product MIX Cost & efficiency SAVINGS EBITA margin excl. IAC >15% Operating LEVERAGE
Slide 29: Unlocking the full potential in every business area
Unlocking the full potential in every business area Health & Medical Personal Care Anand Chandarana Tuomas Yrjölä President Health & Medical President Personal Care Consumer Tissue Professional Hygiene Volker Zöller Pablo Fuentes President Consumer Tissue President Professional Hygiene
Slide 30: Anand Chandarana
Anand Chandarana President Health & Medical
Slide 31: Health & Medical
CMD 2026 Health & Medical Anand Chandarana President Health & Medical
Slide 32: Health & Medical
Health & Medical Be the undisputed leader in preventing and managing the health conditions we serve Incontinence Products Wound Care Compression Therapy Orthopedics
Slide 33: Key figures 2025
Key figures 2025 Incontinence Products Medical Solutions 27,468 Orthopedics Net sales SEKm 58 % 21% 1.0% Organic sales growth of net sales of net sales 11% 4,946 of net sales EBITA excl. IAC, SEKm 18.0% 10% EBITA margin excl. IAC of net sales Europe, 66% North America, 17% Asia, 6% Latin America, 5%
Slide 34: Leading market positions across categories
Leading market positions across categories #1 Incontinence Products Health Care #1 Europe, #1 Latin America, #3 North America Market1) EUR ~17bn #5 Wound Care #2 Europe 3-4% #2 Orthopedics #1 Fracture Management and Physiotherapy #1 Compression Therapy 1) Market size 2025 for core business and where
Slide 35: Attractive category characteristics
Attractive category characteristics Non-cyclical and durable demand Market growth fueled by an aging global population Embeddedness in care pathways offers stable and long-term growth Growing care gaps create unmet needs driving innovation that improves outcomes & efficiency High switching costs Hig
Slide 36: Meeting the needs of four stakeholder groups
Meeting the needs of four stakeholder groups Healthcare systems Professional & Patients & Trade & & providers family caregivers consumers channel partners
Slide 37: Sales and profitability goals
Sales and profitability goals Annual organic EBITA margin sales growth 3-4% excl. IAC >19%
Slide 38: Our growth levers
Expand leadership in Continence Care Accelerate growth in Our growth Advanced Wound Care levers Leverage strong position in Lymphology
Slide 39: Expand leadership in Continence Care
Expand leadership in Continence Care Winning tenders by superior products and evidence Investing in reduce and prevent solutions Won or retained major tenders at a yearly value of: EUR 84m in 2025
Slide 40: Accelerate growth in Advanced Wound Care
Accelerate growth in Advanced Wound Care Increase focus on prevention & Sorbact management solutions Advanced Wound Care technology Reinforce sales efforts Sales CAGR Use selective M&A +17% 2022-2025 Hydrofera US acquisition 2021 Sales CAGR +14% 2022-2025
Slide 41: Leverage strong position in Lymphology
Leverage strong position in Lymphology Reallocate to lymphology segments Grow through strong commercial execution and access Strong growth in US since the Lymphedema Treatment Act Lymphology focuses on chronic Sales CAGR conditions caused Sales +18% by impaired CAGR +5% lymphatic drainage 2020 2021
Slide 42: M&A priorities to build scale and expand leadership
M&A priorities to build scale and expand leadership Continence Care Wound Care Compression Innovative solutions that can Build scale in Advanced Wound Extend global lymphology reduce or prevent incontinence Care and invest in innovative leadership position into adjacent technologies indications
Slide 43: Why we win across stakeholders
Why we win across stakeholders Proven outcome-driven value for health care systems and providers Trusted solutions designed for real- world workflows Superior service, delivered where/when customers need us Easy-to-use products with clear value propositions and broad access
Slide 44: Tuomas Yrjölä
Tuomas Yrjölä President Personal Care
Slide 45: Personal Care
CMD 2026 Personal Care Tuomas Yrjölä President Personal Care
Slide 46: Personal Care
Personal Care Leading global and local brands for well-being in all stages of life Incontinence Products Feminine Care Baby Care
Slide 47: Key figures 2025
Key figures 2025 Feminine Care Incontinence Products 31,558 Net sales SEKm 3.2% 37% Organic sales growth of net sales 4,418 EBITA excl. IAC, SEKm Baby Care 14.0% EBITA margin excl. IAC Europe, 49% 42% 21% Latin America, 36% North America, 9% of net sales of net sales Other, 6% Net sales by region
Slide 48: Leading where we choose to play
Leading where we choose to play Market1) EUR ~17bn #2 Incontinence Products Retail #1 Europe, #1 Latin America, #4 North America 2-3% size 2025 #2 Feminine Care #3 Europe, #1 Latin America, #3 North America #2 Baby Care #1 Nordics, #2 Europe 1) Market size 2025 for core business and where Essity is
Slide 49: Portfolio of leading brands
Portfolio of leading brands Making a meaningful impact on people’s lives every day, at every stage of life
Slide 50: Category characteristics support future growth
Category characteristics support future growth Non-discretionary categories, non-cyclical demand Growth fueled by demographics, penetration, and innovation High usage engagement – product performance and brand trust matter Highly attractive categories for retailers
Slide 51: Sales and profitability goals
Sales and profitability goals Annual organic EBITA margin sales growth 5-6% excl. IAC >16%
Slide 52: We are positioned to accelerate growth
We are positioned to accelerate growth Grow the CORE Expand for MORE Fuel proven growth recipe in TENA and Feminine More places North America Drive trial up to superior product assortment More users TENA Men Libero Club – digital growth engine New formats Leakproof Win in e-commerce
Slide 53: Fueling TENA growth recipe
Fueling TENA growth recipe More trial leads to more growth % Global sales with % of users repeat the brand TENA creative performance superiority as their most often used vs competition (product, brand, price) brand 80% 76% 71% 56% 59% +15 pts 40% TENA Competitor TENA Competition 2017 2020 2023 2024
Slide 54: Driving trial up to superior product assortment in Feminine Care
Driving trial up to superior product assortment in Ultimate launch H2 2025 Feminine Care UK market shares +4pp in premium since launch
Slide 55: Winning in e-commerce
Winning in e-commerce TENA North America share Amazon 4x vs brick & mortar
Slide 56: The Libero Club – our digital growth engine
The Libero Club – our digital growth engine ~80% of Nordic baby families reached
Slide 57: North America
North America Scaled growth growth engineplatform in North America Accelerate TENA momentum Leverage Feminine Care acquisition US #2 Our second largest market
Slide 58: Driving Penetration: TENA Men
Driving Penetration: TENA Men Strong growth momentum Sales CAGR Significant penetration upside +14% 2021-2025
Slide 59: One integrated leakproof platform – unleashing profitable growth
One integrated leakproof platform – unleashing profitable growth Fastest growing segment in Feminine Care Global leader Digital-first go-to-market with omnichannel presence
Slide 60: M&A priorities to accelerate profitable growth
M&A priorities to accelerate profitable growth Feminine Care Continence Care Adjacencies Geographic expansion Innovative solutions that can Adjacent categories to leverage reduce or prevent incontinence our existing capabilities and distribution
Slide 61: A high margin business with great growth potential
A high margin business with great growth potential Tork is present in 110+ markets globally Leading and trusted brands Proprietary systems with 30 million Relevant portfolio dispensers for every being refilledlife stage regularly Proven innovation Superior and brand innovation with 2,000+ patents bu
Slide 62: Volker Zöller
Volker Zöller President Consumer Tissue
Slide 63: Consumer Tissue
CMD 2026 Consumer Tissue Volker Zöller President Consumer Tissue
Slide 64: Consumer Tissue
Consumer Tissue High-quality, affordable, and sustainable tissue products for everyday hygiene in homes and households Toilet Paper Household Towels & Napkins Handkerchiefs & Facial Tissues Moist Toilet Paper
Slide 65: Key figures 2025
Key figures 2025 Handkerchiefs, 43,537 22% Facial Tissues Net sales SEKm of net sales -0.2% Organic sales growth 11% 5,187 of net sales EBITA excl. IAC, SEKm 11.9% 2% EBITA margin excl. IAC of net sales Europe, 79% 65% Latin America, 19% of net sales Household Other, 2% Toilet Paper Towels, Napkins
Slide 66: Favorable category characteristics
Favorable category characteristics Resilient demand – daily essentials in millions of people’s lives Destination category for retailers – important traffic builder High entry barriers – capital intensity, technical know-how, and scale Pockets of high growth/ high profitability segments and regions
Slide 67: Leading positions where we play
Leading positions where we play 1) Market EUR ~18bn #1 Europe 1-2% #2 Latin America #2 New Zealand 1) Market size 2025 for core business and where Essity is present. Market growth rates expressed as compound annual growth rate 2025 – 2031 Source: The information has been compiled by Essity for prese
Slide 68: Our successful triple track strategy
Our successful triple track strategy Essity Brands Retailer Brands Private Label 50% 30% 20% of net sales of net sales of net sales Development and promotion of Joint value creation with retailers to grow Production of private label tissue our own brands the category and their retailer brands produc
Slide 69: Sales and profitability goals
Sales and profitability goals Annual organic EBITA margin sales growth 1-2% excl. IAC >12%
Slide 70: Our way towards profitable growth
Our way towards profitable growth Increase supply Grow branded sales chain efficiency Expand with winning Reduce margin retailer brands volatility
Slide 71: Grow branded sales
Grow branded sales Meeting different consumer needs with an appealing assortment Innovate for premium tier Increase exposure to good tier Premium tier Good tier
Slide 72: Powering brands with effective marketing
Powering brands with effective marketing Tesco retail media activation TV and influencer-led social/digital campaignin UK (Plenty household towels) TV ~18% ~25% Market share in Market share in UK – highest Tesco – back to since 2024 #1 position
Slide 73: Expand with winning retailer brands
Expand with winning retailer brands Leverage strong, long-term partnerships with top retailers Develop the category in line with joint business plans Capitalize sustainability credentials
Slide 74: Increase supply chain efficiency
Increase supply chain efficiency Brand / Safety first! Retailer Brand Consumer End-to-end as enabler Tissue Operational excellence 22 sites1 Footprint optimization Private Pulp mix optimization Label Division 7 sites 13 Professional Hygiene sites producing Consumer Tissue products
Slide 75: Increase agility to reduce margin volatility
Increase agility to reduce margin volatility Market / Customer Contract length Index contract Customer portfolio shifts Supply / Sourcing Pulp procurement
Slide 76: Our strengths
Our strengths Global scale, broad portfolio, negotiation power Leading brands and a differentiated triple-track model Strong customer relationships and commercial excellence Superior innovation and sustainability leadership
Slide 77: Pablo Fuentes
Pablo Fuentes President Professional Hygiene
Slide 78: Professional Hygiene
CMD 2026 Professional Hygiene Pablo Fuentes President Professional Hygiene
Slide 79: Professional Hygiene
Professional Hygiene Innovative, efficient and sustainable hygiene management solutions for public and commercial spaces Tissue, Services & Solutions Wiping & Cleaning Soap & Sanitizers
Slide 80: Key figures 2025
Key figures 2025 35,904 Net sales SEKm 0.3% 12% Organic sales growth Wiping & cleaning of net sales 6,364 EBITA excl. IAC, SEKm 17.7% EBITA margin excl. IAC Europe, 45% 84% 4% North America, 41% Latin America, 9% of net sales of net sales Other, 5% Tissue, services & solutions Soap & sanitizers Net
Slide 81: Global leadership and strong regional presence
Global leadership and strong regional presence #2 North America Market1) #1 Europe EUR ~14bn 2-3% #1 Global #3 Latin America 1) Market size 2025 for core business and where Essity is present. Market growth rates expressed as compound annual growth rate 2025 – 2031 Source: The information has been co
Slide 82: Category characteristics support future growth
Category characteristics support future growth A stable, non-discretionary category Recurring demand and installed dispensers create strong customer loyalty A mature but evolving market driven by rising hygiene standards in public spaces Low penetration in emerging markets offers significant growth
Slide 83: Tork is everywhere!
Tork is everywhere! The Shard Wembley Stadium The Eiffel Tower Port Aventura World Amusement Park The UN headquarters London, UK London, UK Paris, France Tarragona, Spain New York, USA New! Camp Nou Allianz Arena The Royal Palace Yankee Stadium Barcelona, Spain München, Germany Stockholm, Sweden New
Slide 84: Relevant in all customer segments
Relevant in all customer segments Healthcare Commercial 11% 25% of net sales 2025 of net sales 2025 Industrial HoReCa Public interest 10% 38% 16% of net sales 2025 of net sales 2025 of net sales 2025
Slide 85: Superior Professional Hygiene go to market sets Essity apart
Superior Professional Hygiene go to market sets Essity apart E-commerce & online marketing Direct sales & offline marketing Distributors Customers Service Providers
Slide 86: Sales and profitability goals
Sales and profitability goals ≈ Annual organic EBITA margin sales growth 2-3% excl. IAC >18%
Slide 87: Clear path towards profitable growth
Clear path towards profitable growth Grow 2X Sustain the market in the strategic base products 60% 40% of net sales 2025 of net sales 2025
Slide 88: Innovating for clear product superiority
Innovating for clear product superiority Tork Soap and Sanitizer Tork PeakServe Grow 2X the market in strategic Tork SmartOne products Tork Xpressnap
Slide 89: Sustain the base
Sustain the base Return to volume growth Expand customer pool Improved cost position, value engineering Volume fighters
Slide 90: Stronger focus on broader washroom bundle
Stronger focus on broader Stronger focus washroom bundle on broader washroom bundle Full system product bundle increases customer “stickiness” Tork Services add value – including Tork Vision Cleaning, Tork Paper Circle,Tork Dispenser Circle
Slide 91: Intensified focus outside the washroom
Intensified focus outside the washroom Leveraging our foodservice bundleinning Winning the shop floor in Industry
Slide 92: E-commerce delivering rapid growth in small and medium-sized businesses
E-commerce delivering rapid growth in small and medium-sized businesses, a new customer pool Net sales through Amazon 2025: +40% North America +32% CAGR +37% Europe 2019 2020 2021 2022 2023 2024 2025 North America Europe
Slide 93: Expand for more - emerging markets via strategic products
Expand for more - emerging markets via strategic products High market growth and low category penetration Ambition 2X net sales in 5 years
Slide 94: M&A priorities to expand global leadership
M&A priorities to expand global leadership Washroom Surface Cleaning Adjacencies Strengthen washroom Leverage existing distributor offering with soap, Accelerate growth in wiping base and explore adjacent sanitizer and air care and cleaning via non-wovens categories such as cleaning chemicals and ti
Slide 95: An exciting business!
An exciting business! Global Tork is present in 110+ markets globally #1 Proprietary systems with ~30 million dispensers being refilled regularly Superior innovation with strong patents Sustainability leadership A high margin business with great growth potential
Slide 96: Fredrik Rystedt
Fredrik Rystedt EVP and CFO
Slide 97: Accelerating progress towards our targets
CMD 2026 Accelerating progress towards our targets Fredrik Rystedt CFO and EVP
Slide 98: A high-margin, high-return business with strong development of EPS
A high-margin, high-return business with strong development of EPS EBITA margin and ROCE excl IAC Earnings per share, SEK +280bps +50% +480bps 1) 18.37 17.6% 17.2% 17.09 16.4& 13.60 14.0% 14.1% 12.27 12.4% 12.8% 11.3% 10.9% 7.93 9.2% 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 EBITA margin exc
Slide 99: Driven by structurally higher gross margins
Driven by structurally higher gross margins Gross margin excl IAC Actions taken: +440bps Pricing discipline 32.7% 33.3% Premiumization & innovation 28.9% 30.3% 25.8% COGS savings Addressed underperformers Portfolio optimization 2021 2022 2023 2024 2025 Excl. Vinda
Slide 100: Lower margin volatility vs history and peers
Lower margin volatility vs history and peers Volatility1) for quarterly EBITA margin excl IAC Volatility1) for quarterly EBITA margin excl IAC (2024-2025) 1.9 0.6 0.6 2018-2023 2024-2025 Essity Peer 1 Peer 2 Peer 3 Peer 4 1) Standard deviation
Slide 101: Solid cash flow and strengthened balance sheet
Solid cash flow and strengthened balance sheet Operating cash flow, SEKbn Net debt, SEKbn +54% -28.9 17.7 70,06 62.9 4 17.2 15.0 60,06 55.4 53.7 3,5 50,06 3 3.1 2,5 9.7 40,06 2.8 7.7 30.8 2 30,06 26.5 2.0 1,5 20,06 1 10,06 1.2 1.0 0,5 0,06 0 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Excl. Vi
Slide 102: Allowing for increasing dividends and recurring share buybacks
Allowing for increasing dividends and recurring share buybacks Dividend per share, SEK Share buyback program, SEKbn +25% 8.25 8.75 3.0 3.0 3.0 7.25 7.75 7.00 2021 2022 2023 2024 2025 2024 2025 2026
Slide 103: Margin accretive organic sales growth
Margin accretive organic sales growth Organic sales growth, CAGR 2021-2025 Strong sales growth development RB Strategic especially in highest returning categories Inco and segments Fem Mostly price-led growth – we always Med 7.7% 6.0% 6.7% PLD compensate higher input costs with higher 5.1% 5.0% sell
Slide 104: Accelerating progress – Sharpening focus on growth
Accelerating progress – Sharpening focus on growth Clear financial goals per Business Area Group Annual organic Professional >3% sales growth Hygiene Consumer Tissue 2-3% Personal Care 1-2% Key drivers 5-6% Health & Strong focus on profitable volume growth Medical Premiumization & innovation Winning
Slide 105: Accelerating progress – Profitable growth is key
Accelerating progress – Profitable growth is key Clear financial goals per Business Area Group EBITA excl. IAC Professional >15% margin Hygiene Consumer Tissue >18% Personal Care >12% Key drivers >16% Health & Pricing discipline Medical Product and portfolio mix improvements COGS and SG&A savings >1
Slide 106: Cost savings fueling profitable growth
Cost savings fueling profitable growth COGS savings program SG&A savings program Increased A&P 0.5-1 SEKbn 1.0 SEKbn >0.3% Annual ambition of sales 2026 – Procurement, Cost discipline, automation, material reorganization, rationalization, reprioritization SG&A Savings invested energy savings and IT
Slide 107: Lowering our cost base
Lowering our cost base Reducing fixed product cost and improve quality of COGS savings Fixed product cost / Sales COGS savings, SEKbn 1.5 Global sourcing 0.5-1.0 0.7 Productivity 0.4 0.5 improvement Cost discipline -1.0 2021 2022 2023 2024 2025 Ambition 2021 2022 2023 2024 2025 Ambition Excl. Vinda
Slide 108: Lowering our cost base
Lowering our cost base SG&A savings SG&A (excl. A&P) / Sales SG&A savings Key drivers 13.6% 14.0% 12.3% 12.7% SEK 1bn Leaner, simplified organization 12.2% Reprioritization of IT spend Cost discipline Savings invested in A&P and other growth initiatives 2021 2022 2023 2024 2025 Run-rate end 2026 Exc
Slide 109: A&P Spending
A&P Spending Total and per category A&P / Sales A&P per category 2025 17% 18% 5.1% 5.2% 5.2% ~5.3-5.7% 4.4% 4.7% 10% 4% 2% 3% 2% 2021 2022 2023 2024 2025 2026 - Medical Inco Feminine Inco Baby Consumer Professional HC Retail Tissue Hygiene Excl. Vinda
Slide 110: Path to EBITA margin target
Path to EBITA margin target ILLUSTRATIVE >15% 14.1% SG&A Growth Operating COGS investments Leverage Portfolio and savings savings incl higher A&P product mix EBITA excl. IAC Future margin FY 2025
Slide 111: Sharpened focus on working capital & cash conversion
Sharpened focus on working capital & cash conversion Aiming for cash conversion >90% Working capital/Sales Cash conversion1) 108% 98% >90% Ambition 98% 8-9% 7-8% 85% 75% 6-7% Pre Hi t i2021 l l 2021-2025 2021 2025 Future F t 2021 2021 2022 2022 2023 2023 2024 2024 2025 2025 1) Operating cash flow /
Slide 112: Capital allocation toolbox
Capital allocation toolbox CAPEX – Invest in profitable organic growth maintenance & strategic Capital policy: Maintain solid investment Dividends Portfolio grade rating stable and increasing optimization Deleverage Share buybacks Net Debt/EBITDA of max 3x Allow for amortization recurring within 0-2
Slide 113: Capital allocation toolbox
Capital allocation toolbox High returns from organic investments Operating ROCE excl. IAC 2025 Examples of investments 2021-2025: 73% New Feminine care lines Additional PeakServe converting lines 48% Coreless tissue line 34% 37% Incontinence care lines 21% Wound care solutions Innovation and sustain
Slide 114: CAPEX spending
CAPEX spending CAPEX/Sales Avg. Capex / Op. Assets % (2021-2025) >6% >5.0% 4.9-5.1% 4.0-5.0% -2019 2020-2023 2024-2025 Future Medical Inco Feminine Inco Baby Consumer Professional HC Retail Tissue Hygiene Excl. Vinda
Slide 115: Steering to accelerate progress – our incentive system
Steering to accelerate progress – our incentive system Short-term Incentive Program Targets: Weight: Essity Business Area Essity Organic sales growth x% x% Cost savings x% EBITA margin excl IAC x% x% Other measures x% Operating cash flow x% x% Long-term Incentive Program Total Shareholder Return com
Slide 116: Ulrika Kolsrud
Ulrika Kolsrud President and CEO
Slide 117: Summary
CITT’ DI TORINO
Slide 118: Our key competitive advantages
Our key competitive advantages Proven Global scale, Local/regional innovation and local relevance supply chains brand building Winning culture & Broad channel Strong engaged team capabilities financial position
Slide 119: A clear strategy for profitable growth
A clear strategy for profitable growth Operational High- Focus on Value- Differentiated Best customer efficiency performing high-return creating innovation experience organization segments acquisitions and flexibility
Slide 120: Actions to accelerate progress and returns
Actions to accelerate progress and returns Lowering our Sharpening Investing Accelerating cost base the innovation to grow portfolio shift further agenda
Slide 121: With the vision to be the undisputed global leader in hygiene and health
Visionsbild ”With the vision to be the undisputed global leader in hygiene and health”
Slide 122: essity
essity