Essity Ab Class A · OMXSTO:ESSITY_A

Essity Ab Class A — Q1 2023 Earnings Presentation

21 slides from Essity Ab Class A's earnings presentation, Apr 27, 2023

  1. Slide 1: Welcome!

    Welcome! 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: Strategic review of ownership of Vinda and Consumer Tissue Private Label Europe

    Strategic review of ownership of Vinda and Consumer Tissue Private Label Europe

  4. Slide 4: Strategic Review

    Strategic Review  Strategic review of ownership in Vinda and Consumer Tissue Private Label Europe initiated  Aim of reducing Consumer Tissue’s share of the Essity Vinda, 16% Company’s total sales Net Sales 2022  Includes exploring different options and may result SEK in divestments, although no s

  5. Slide 5: Vinda

    Vinda Personal Care,  Listed on Hong Kong Stock Exchange 17%  Market capitalization of HKD 26bn (SEK 34bn) at the end of trading on April 25 Vinda  Essity ownership 51.59%, consolidates 100% Net Sales 2022  Net sales 2022 SEK 25.1bn SEK Tissue,  EBITA 2022 SEK 1.1bn. 25.1bn 83% Interim Report Q

  6. Slide 6: Consumer Tissue Private Label Europe

    Consumer Tissue Private Label Europe  Net sales 2022 SEK 9.8bn  7 production facilities in Belgium, France, Germany and Italy  ~1,900 employees  Move of production lines to be completed Interim Report Q1 2023

  7. Slide 7: Interim Report Q1 2023

    Interim Report Q1 2023 With brands such as TENA, TENA for Men, Knix, TOM Organic, Libresse, Bodyform, Saba, Nosotras and Modibodi, Essity is a global market leader in the fast-growing leakproof apparel segment.

  8. Slide 8: Summary

    Summary Strong start of the year with higher sales and profits Adjusted  Sales growth of +17.2% Net Sales Sales Growth1) EBITA2) ─ Price/mix +18.6% ─ Volumes -2.6%, approx half related to Russia SEK +17.2% SEK and Baby Diapers Latin America 42,926m Organic: 4,358m ─ Acquisitions +1.2% +25.1% +16.0%

  9. Slide 9: Adjusted EBITA Margin

    Adjusted EBITA Margin Q1 2023 vs Q1 2022 +200bps +40bps 10.2% +160bps 0bps 8.2% + Higher prices + Better mix - Raw materials, energy and distribution -880bps Adjusted Impact Gross A&P SG&A Adjusted EBITA Margin1) Profit Margin (excl A&P) EBITA Margin1) Q1 2022 Q1 2023 1) Excluding items affecting co

  10. Slide 10: Quarterly Development Sales and Profitability

    Quarterly Development Sales and Profitability 30,00% 15% Net Sales and Sales Growth1) 4800 Adjusted EBITA and EBITA margin2) 28,00% 14% 45000 43,834 42,926 4,358 26,00% 4300 13% 4,084 40,109 SEKm 40000 24,00% SEKm 12% 3800 37,929 22,00% 11% +20.6% 3300 3,158 10.2% 35000 34,301 20,00% 10% 2,990 2,826

  11. Slide 11: Efficiency Improvements

    Efficiency Improvements Energy Savings Footprint Material Optimization Rationalization Integrated and SG&A Sourcing Supply Chain Production Waste Efficiency Reduction Interim Report Q1 2023 April 27, 2023 11

  12. Slide 12: Innovating for Higher Customer and Consumer Value

    Innovating for Higher Customer and Consumer Value Interim Report Q1 2023 April 27, 2023 12

  13. Slide 13: Leading in Sustainability

    Leading in Sustainability Initiatives, progress and awards  Partnership to develop groundbreaking concept for sustainable tissue production  First in the world to use renewable hydrogen for tissue production  Awarded Supplier Engagement Leader by CDP  Included in S&P Global’s Sustainability Year

  14. Slide 14: Text

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  15. Slide 15: Health & Medical

    Health & Medical Net Sales Adjusted Adjusted Q1 2023 vs Q1 2022 Sales Growth1) EBITA2) EBITA Margin2)  Strong organic sales growth with higher prices both in Incontinence Products and Medical Solutions SEK +10.5% SEK 11.3% 6,799m Organic: 769m -310bps  Lower volumes in Incontinence Products relate

  16. Slide 16: Consumer Goods

    Text Consumer Goods

  17. Slide 17: Consumer Goods

    Consumer Goods Net Sales Adjusted Adjusted Q1 2023 vs Q1 2022 Sales Growth1) EBITA2) EBITA Margin2)  Strong organic sales growth with significant price increases SEK +17.6% SEK 9.4% 26,309m Organic: 2,471m +160bps  Volumes negatively impacted by ongoing work +25.4% +50% +15.7% to exit Russia  Gro

  18. Slide 18: Professional Hygiene

    Professional Hygiene Text

  19. Slide 19: Professional Hygiene

    Professional Hygiene Net Sales Adjusted Adjusted Q1 2023 vs Q1 2022 Sales Growth1) EBITA2) EBITA Margin2)  Strong organic sales growth SEK +21.3% SEK 13.3%  Significant price increases 9,810m Organic: 1,301m +580bps +30.9% +21.0% +131%  Volumes negatively impacted by ongoing work to exit Russia 

  20. Slide 20: 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 12.7% Price Manage- ment & Brands channels Q1 2023 Essity – A

  21. Slide 21: Q&A

    Text Q&A

Essity — Q1 2023 Earnings Presentation on 6ix