Slide 1: Year-end Report 2023
Year-end Report 2023
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our most recent annual and sustainability report for a better understanding of the
Slide 3: January 25, 2024
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Slide 4: Essity – A Global, Leading Hygiene and Health Company
Essity – A Global, Leading Hygiene and Health Company Net sales 2023 147.1 SEKbn 18.9 Adjusted EBITA 2023 SEKbn 36,000 Every day our brands care for the employees hygiene and health of a billion people Year-end Report 2023 across 150 countries 4
Slide 5: Key Achievements 2023
Key Achievements 2023 Highest profit ever and strong platform for growth Substantially improved structural margins for all business areas Good progress on key priorities – innovation, efficiency and sustainability Pre-conditional public offer announced for the shares in Vinda – enabling more attract
Slide 6: Pre-conditional Public Offer Announced for 100% of Shares in Vinda
Pre-conditional Public Offer Announced for 100% of Shares in Vinda Attractive offer yielding an annual return on the investment of approx. 14% at an EV/EBITDA multiple of 18.1x ▪ Isola Castle Ltd has announced that it will make a pre-conditional public offer to acquire 100% of Vinda for a price per
Slide 7: Long-term Portfolio Direction
Long-term Portfolio Direction Net Sales Split 2022 Net Sales Split 2023 Long-term Direction 16% 19% 23% 27% 25% 25% 20% 21% 33% 41% 25% 25% Consumer Goods Health & Medical Professional Hygiene Personal Care Consumer Tissue 7
Slide 8: Value Creating Acquisitions
Value Creating Acquisitions Text
Slide 9: 2023 - Strong Sales Growth, Record High Adjusted EBITA
2023 - Strong Sales Growth, Record High Adjusted EBITA Adjusted Adjusted +0.9% 147,147 EBITA2) EBITA Margin2) +9.5% Acquisitions SEK 12.8% 18,898m +360bps 131,320 -3.7% +57% Volume Price/Mix Adjusted Adjusted Earnings ROCE2) per Share3) Sales Growth1) +6.7% SEK 16.4% Net Sales Reported Growth: +12.1
Slide 10: Strong Development of Sales and Profits
Strong Development of Sales and Profits Net Sales Adjusted EBITA1) SEKbn SEKbn +45% +65% 147.1 18.9 131.3 101.5 12.0 11.5 2021 2022 2023 2021 2022 2023 Sales Adjusted Growth2) +4.0% +19.7% +6.7% EBITA Margin1) +11.3% +9.2% +12.8% 1) Excluding items affecting comparability 2) Including organic sales
Slide 11: Strong Development of Sales and Profits
Strong Development of Sales and Profits Net Sales Adjusted EBITA1) 18.9 147.1 17.6 SEKbn 131.3 SEKbn 129.0 15.8 118.5 121.8 109.3 13.4 12.9 98.5 101.2 101.5 12.0 11.5 12.0 88.0 10.6 9.5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adjusted Sales
Slide 12: Dividend SEK 7.75
Dividend 7.751) 7.25 7.00 Proposed Dividend1) 6.75 6.25 5.75 SEK 7.75 +7% 2018 2019 2020 2021 2022 2023 1) Board of Directors Proposal Year-end Report 2023 January 25, 2024 12
Slide 13: Financial Summary
Financial Summary Q4 2023 vs Q4 2022 Adjusted Net Sales Sales Growth1) EBITA2) SEK -0.7% SEK 36,625m Organic: 4,853m +0% -0.7% +18% Adjusted Adjusted Adjusted Earnings EBITA Margin2) ROCE2) per Share3) 13.3% 17.1% SEK 4.54 +210bps +320bps +21% 1) Including organic sales growth and acquisitions 2) Ex
Slide 14: Positive Mix and Higher Underlying Volumes
Positive Mix and Higher Underlying Volumes 36,629 -1.4% +0.7% 36,625 Volume growth of +1.2% excluding restructuring in Volume Price/Mix Professional Hygiene and deliberate exits of contracts with insufficient profitability in Incontinence Products Health Care and Baby Care Sales Growth1) -0.7% Bette
Slide 15: Higher Adjusted EBITA Margin
Higher Adjusted EBITA Margin +210bps Adjusted EBITA margin +410bps -40bps -160bps growth driven by 13.3% better mix and cost 11.2% savings of SEK 377m as + Better mix well as lower costs for raw + Cost savings + Lower costs for raw materials material and distribution and distribution - Higher energy
Slide 16: Health & Medical
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Slide 17: Health & Medical
Health & Medical Good Sales Growth and Strong Margin Development +7.1% 7,001 Incontinence Products SEK Health Care +3.4% 1,125m Adjusted Higher prices and better mix 6,589 -2.8% EBITA2) Lower volumes related to exits of +57% contracts with inadequate profitability Volume Price/Mix Medical Solutions
Slide 18: Consumer Goods
Consumer Goods Text
Slide 19: Consumer Goods
Consumer Goods Strong Growth in Inco and Feminine, Baby Turnaround 20,454 -0.8% -2.0% Incontinence Products Retail +9.8% Volume SEK & Feminine Care +16.5% 19,870 2,585m Adjusted Higher volumes, higher prices and Price/Mix EBITA2) better mix +13% Baby Care +2.0% Higher prices and better mix Adjusted
Slide 20: Professional Hygiene
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Slide 21: Professional Hygiene
Professional Hygiene Strong Underlying Volume Growth in High Margin Segments 9,617 -1.7% +1.8% 9,752 SEK 1,531m Adjusted EBITA2) +9% Lower volumes due to restructuring in Volumes Price/Mix USA and Europe partly compensated by strong underlying growth Adjusted 15.7% EBITA Higher adjusted EBITA and ad
Slide 22: Progress on Key Priorities
Progress on Key Priorities 2023 Growth in Fastest Innovation & Growing Leading in Price Management Cost Efficiency Brands Categories and Sustainability Channels Science Based Targets +8.9% in Price +0.6% in Mix SEK 433m Inco Retail +14% Scope 1 and 2 vs 2016 Strong price effect while still Growth in
Slide 23: Innovations
Innovations Q4 2023 MEDICAL SOLUTIONS FEMININE CARE CONSUMER TISSUE JOBST® Elvarex® Saba Invisible Intimawear by Libresse / Zewa® Wisch & Weg Plenty® Sanitary Towels Sleepwear Year-end Report 2023 January 25, 2024 23
Slide 24: Innovations
Innovations Q4 2023 PROFESSIONAL HYGIENE Tork 2 in 1 Scouring and Cleaning Tork Counter Mount Tork Constant Air Tork Xpress® Multifold Tork® carbon neutral Foodservice Towel (NA) Soap System Freshener System with 68% carbon dispensers footprint reduction Tork 2 in 1 Scouring and Cleaning Cloth (EU)
Slide 25: Superiority
Superiority Share of Net Sales with Superiority 62% 56% 40% 2017 2020 2023 Year-end Report 2023
Slide 26: Leading Where We Choose to Play
Leading Where We Choose to Play Higher #1 or #2 #1 Market Shares ~90% ~60% >60% of branded sales Text of branded sales Last 3 years Source: The information has been compiled by Essity for presentation purposes based on data taken from external market sources including but not limited to retail audit
Slide 27: Summary 2023
Summary 2023 ▪ Record profits and strong platform for growth ▪ Pre-conditional offer for Vinda improving capital efficiency and reducing earnings volatility ▪ Health & Medical - decisive pricing leading to significantly improved margins ▪ Consumer Goods: ─ Continued positive momentum in Feminine Car
Slide 28: Priorities 2024
Priorities 2024 Strong platform for growth ▪ Volume growth in high yielding segments Professional ▪ Innovation, brands and market shares gains Hygiene ▪ Price management ▪ Operational efficiency and digitalization ▪ Continued progress on ESG Year-end Report 2023
Slide 29: Q&A
Q&A Text
Slide 30: Slide 30