Essity Ab Class A · OMXSTO:ESSITY_A

Essity Ab Class A — Q2 2023 Earnings Presentation

19 slides from Essity Ab Class A's earnings presentation, Jul 20, 2023

1. Slide 1: Half-year Report 2023

   Half-year Report 2023 Magnus Groth President and CEO Fredrik Rystedt CFO and Executive Vice President Johan Karlsson Vice President Investor Relations

2. 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

3. Slide 3: Key Achievements Q2 2023

   Key Achievements Q2 2023  High sales growth and significant earnings improvement  Exited Russia  Strategic Review progressing according to plan  Sustainable innovations for increased well-being  Progress towards ROCE target Half-year Report 2023

4. Slide 4: Summary Q2 2023 vs Q2 2022

   Summary Q2 2023 vs Q2 2022 Adjusted  Sales growth of +8.7% Net Sales Sales Growth1) EBITA2) ─ Price/mix +11.0% ─ Volumes -3.6% SEK +8.7% SEK ─ Acquisitions +1.3% 43,930m Organic: 4,701m +16% +7.4% +49%  Adjusted EBITA +49%  Adjusted EBITA margin increased to 10.7% Adjusted Adjusted Adjusted Earni

5. Slide 5: Adjusted EBITA Margin Q2 2023 vs Q2 2022

   Adjusted EBITA Margin Q2 2023 vs Q2 2022 +240bps +220bps -30bps +50bps 10.7% 8.3% + Higher prices + Better mix + Cost savings - Raw materials and energy -490bps - Lower volumes - Salary inflation Adjusted Impact Gross A&P SG&A Adjusted EBITA Margin1) Profit Margin (excl A&P) EBITA Margin1) Q2 2022 Q

6. Slide 6: Quarterly Development Sales and Profitability

   Quarterly Development Sales and Profitability Net Sales and Sales Growth1) Adjusted EBITA and EBITA margin2) 15% 4800 4,701 14% 45000 43,834 43,930 SEKm 42,926 SEKm 4,358 4300 13% 4,084 40,109 12% 40000 3800 37,929 11% 10.7% 3300 3,158 10.2% 10% 35000 2,990 9.3% 9% 2800 8.3% 8% 30000 +20.6% +17.3% +

7. Slide 7: Exit of Russia

   Exit of Russia  Essity exited Russia on July 17, 2023  Work began in April 2022 to exit the Russian market  Russia accounted for about 2% of Group net sales in 2022  Purchase price of approximately SEK 1.2bn on a cash and debt-free basis  Earnings impact of approx. SEK -0.5bn ─ Including accumu

8. Slide 8: Efficiency Improvements

   Efficiency Improvements Energy Savings Footprint Material Optimization Rationalization Integrated and SG&A Sourcing Supply Chain Production Waste Efficiency Reduction Half-year Report 2023 July 20,2023 8

9. Slide 9: Innovations Q2 2023

   Innovations Q2 2023 Exempel Innovations Q2 2023 Text The Tork Period Care dispenser – Combining the strength of two market leading brands 9

10. Slide 10: Innovations Q2 2023: V-eco Reusable period pads

    Innovations Q2 2023 Text V-eco Reusable™ period pads

11. Slide 11: Health & Medical brands

    Actimove AquaCast 4 LINERS Cutimed’ Hydrofera Delta-Cast*

12. Slide 12: Health & Medical Q2 2023 vs Q2 2022

    Health & Medical Net Sales Adjusted Adjusted Q2 2023 vs Q2 2022 Sales Growth1) EBITA2) EBITA Margin2)  Strong organic sales growth with higher SEK +8.0% SEK prices 13.4% 7,051m Organic: 943m  Lower volumes in Incontinence Products +240bps +15% +8.0% +40% related to exits of contracts with inadequa

13. Slide 13: Consumer Goods

    Consumer Text Goods

14. Slide 14: Consumer Goods Q2 2023 vs Q2 2022

    Consumer Goods Net Sales Adjusted Adjusted Q2 2023 vs Q2 2022 Sales Growth1) EBITA2) EBITA Margin2)  Strong organic sales growth with higher SEK +8.0% SEK prices 9.5% 26,344m Organic: 2,493m  Lower volumes related to prioritization of +140bps +15% +5.8% +34% profitability ─ Baby Care impacted by e

15. Slide 15: Professional Hygiene

    Professional Hygiene Text

16. Slide 16: Professional Hygiene Q2 2023 vs Q2 2022

    Professional Hygiene Net Sales Adjusted Adjusted Q2 2023 vs Q2 2022 Sales Growth1) EBITA2) EBITA Margin2)  Strong organic sales growth with higher SEK +11.2% SEK prices 15.1% 10,539m Organic: 1,594m +470bps  Lower volumes related to prioritization of +20% +11.2% +74% profitability ─ Restructuring

17. Slide 17: Road to ROCE Target

    Road to ROCE Target Adjusted return on capital employed >17% by 2025 >17% Winning with 2025 Efficiency People and Sustainable & Service Culture Leading Prioritized Solutions & Excellence in fastest Growth Net Zero Innovation growing Areas 13.2% Price Manage- ment & Brands channels Q2 2023 Essity – A

18. Slide 18: Q&A

    Q&A Text

19. Slide 19: Essity

    és> eSsity

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