Slide 1: Every day our brands care for the hygiene and health of a billion people
Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 2: Interim Report Quarter 1, 2024
Interim Report Quarter 1, 2024 Magnus Groth President and CEO Fredrik Rystedt CFO and EVP
Slide 3: Interim Report Quarter 1, 2024 – Magnus Groth
Interim Report Quarter 1, 2024 Magnus Groth President and CEO
Slide 4: High profits and strong cash flow
High profits and strong cash flow ▪ Higher profits with increased margins across business areas ▪ Volume growth excluding restructuring and exits ▪ Good pricing discipline ▪ Strong cash flow ▪ Divestment of Vinda completed
Slide 5: Financial Summary
Financial Summary Q1 2024 vs Q1 2023 excl. IAC Organic Sales Growth EBITA +4.6% SEK -4.0% Organic: 4,880m +3.8% +14% EBITA Margin ROCE 14.0% 17.2% +220bps +200bps Interim Report – Quarter 1, 2024 April 25, 2024 5
Slide 6: Divestment of Vinda Completed
Divestment of Vinda Completed ▪ Sales proceeds SEK ~19bn ▪ Capital gain SEK ~9bn ▪ EPS total operations SEK 16.21 ▪ Annual return on investment ~14% Interim Report – Quarter 1, 2024 April 25, 2024 6
Slide 7: Attractive Business Areas with Focus on Profitable Growth
Attractive Business Areas with Focus on Profitable Growth 20% 55% 25% of sales of sales of sales YTD 2024 YTD 2024 YTD 2024 Health & Medical Consumer Goods Professional Hygiene Accelerate growth Grow high margin segments Exceed market growth from leading position Interim Report – Quarter 1, 2024 Apr
Slide 8: Health & Medical – Significant Improvement of EBITA, Margin & Cash Flow
Health & Medical – Significant Improvement of EBITA, Margin & Cash Flow ▪ Organic sales growth +2.6% ─ Incontinence Products Health Care +3.4% ─ Medical Solutions +1.5% ─ Higher prices and better mix +3.8% ─ Volumes -1.2%, +0.2% excluding exits ▪ Significant improvement of EBITA and EBITA margin1) ─
Slide 9: Consumer Goods – Volume Growth for All Categories and Higher EBITA & Margin
Consumer Goods – Volume Growth for All Categories and Higher EBITA & Margin ▪ Organic sales growth -4.8% ─ Incontinence Products Retail +6.8% ─ Feminine Care +0.7% ─ Baby Care -0.7% ─ Consumer Tissue -9.0% ─ Price/Mix -5.4% ─ Volumes higher for all categories +0.6% ▪ Higher EBITA and EBITA margin1)
Slide 10: Professional Hygiene – Strong Mix, Higher EBITA and Margin
Professional Hygiene – Strong Mix, Higher EBITA and Margin ▪ Organic sales growth -6.9% ─ Price/mix +0.8% with better mix but lower prices ─ Volumes -7.7%, +0.9% excluding restructuring ▪ Higher EBITA and EBITA margin1) ─ EBITA +3% ─ EBITA margin 15.3%, +160bps In Latin America, an upgrade of the To
Slide 11: Financials
Financials Fredrik Rystedt CFO and EVP
Slide 12: Underlying Volume Growth and Positive Mix
Underlying Volume Growth and Positive Mix +0.6% -2.2% 36,352 Volume -2.4% underlying Price/Mix 34,850 Restructuring and exits Net Sales Reported Growth: -4.1% Net Sales Q1 2023 incl Divestments -1.9% Q1 2024 (SEKm) Currency +1.8% (SEKm) Interim Report – Quarter 1, 2024 April 25, 2024 12
Slide 13: Higher EBITA Margin excl. IAC
Higher EBITA Margin excl. IAC +480bps -70bps 14.0% 11.8% -190bps + Lower costs for raw materials and energy + Cost savings + Positive mix - Lower prices and volumes - Salary inflation +220 bps Q1 2023 Impact Gross A&P SG&A Q1 2024 Profit Margin (excl. A&P) Interim Report – Quarter 1, 2024 April 25,
Slide 14: Continued High Cash Flow Generation
Continued High Cash Flow Generation Operating Cash flow SEKm 6,054 Cash Flow Analysis, SEKm Q1 2024 5,914 Operating cash flow 4,253 Cash flow from current operations 2,634 4,253 Acquisitions/divestments 23,891 Dividend -5,444 2,849 2,870 2,847 Net cash flow, continuing operations 21,081 2,621 Net ca
Slide 15: Strong Financial Position
Strong Financial Position Net Debt and Net Debt/EBITDA excl. IAC 80 5 SEKbn 69,1 4,5 64,4 62,9 62,1 60,6 4 CHANGE IN NET DEBT, SEKbn 60 3.81 53,7 3,5 December 31, 2023 -53.7 3.33 Net cash flow 20.6 3 2.89 2.87 Remeasurements to equity 0.9 40 2,5 2.29 34,3 Investments in non-operating assets through
Slide 16: Sustainability Targets, Outcomes and Awards
Sustainability Targets, Outcomes and Awards Science-based Science-basedtargets targets Sustainable innovations Health & Safety Share that yielded social and/or Decrease in total recordable incident rate Target 2030 environmental improvements compared with 2019 (compared with 2016): Outcome 2023: Sco
Slide 17: Essity in Better Shape than Ever
Essity in Better Shape than Ever Strong financial position More profitable and attractive portfolio Pricing power More efficient production Lower volatility Text
Slide 18: 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 report for a better understanding of these risks and uncert
Slide 19: Q&A
Q&A Interim Report – Quarter 1, 2024 19
Slide 20: Every day our brands care for the hygiene and health of a billion people
Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 21: Slide 21