Slide 1: Interim Report Quarter 3, 2024
Interim Report Quarter 3, 2024 Magnus Groth, President and CEO Fredrik Rystedt, CFO and EVP October 24, 2024
Slide 2: Magnus Groth, President and CEO
Magnus Groth President and CEO Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 3: Q3 – Profitable growth and Essity in better shape than ever
Q3 – Profitable growth and Essity in better shape higher market shares than ever • Higher volumes and market share gains • Good pricing discipline, sequentially higher prices • Strong EBITA and higher margin • Record high cash flow • Net-Zero emissions target validated by SBTi 3
Slide 4: Financial summary
Financial summary Q3 2024 vs Q3 2023 Organic Sales Growth EBITA excl IAC +1.9% +4.6% SEK Organic: +3.4% +3.8% 5,097m excl restructuring EBITA Margin excl IAC ROCE excl IAC 14.1% 17.7% +20bps +50bps
Slide 5: Our business areas
Our business areas Accelerating profitable growth 20% 54% 26% of sales of sales of sales 9M 2024 9M 2024 9M 2024 Health & Medical Consumer Goods Professional Hygiene Grow to scale Accelerate high-margin Expand global leadership categories Interim Report - Quarter 3, 2024 5
Slide 6: Health & Medical
Health & Medical Continued strong development Organic sales growth +2.8% • Higher volumes +2.1% • Higher prices and positive mix +0.7% • Incontinence Products Health Care +3.0% • Medical Solutions +2.6% Profitability • EBITA excl IAC SEK 1,386m • EBITA margin excl IAC 19.4%, +280bps The improved fle
Slide 7: Consumer Goods
Consumer Goods Higher volumes in all categories Organic sales growth +3.0% • Higher volumes in all categories +5.3% • Price/Mix -2.3% • Incontinence Products Retail +6.3% • Feminine Care +4.9% • Baby Care +0.1% • Consumer Tissue +2.0% Profitability • EBITA excl IAC SEK 2,285m • EBITA margin excl IAC
Slide 8: Consumer Goods – Leading positions with increasing market shares
Consumer Goods – Leading positions with increasing market shares #1 or #2 Position Increasing Shares Increasing or Stable 90% 53% 71% % of Branded Sales Market share development for last 3 months vs Moving Annual Total (12 months rolling)
Slide 9: Professional Hygiene
Professional Hygiene Strong growth in premium assortment Organic sales growth -0.8%, +4.7% excl. restructuring • Volumes -4.6% • Higher prices and positive mix +3.8% Profitability • EBITA excl IAC SEK 1,812m • EBITA margin excl IAC 18.6%, +10bps Tork exelCLEAN is a cleaning cloth for lighter cleanin
Slide 10: Net-Zero emission target validated by SBTi
Net-Zero emission target validated by SBTi Target 2030 Target 2050 Greenhouse gas emissions, Science-based targets -35% Net-Zero Scope 1, 2, 3
Slide 11: Fredrik Rystedt, CFO and EVP
Fredrik Rystedt CFO and EVP Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 12: Strong organic sales growth
Strong organic sales growth +3.4% excluding restructuring +1.5% +2.0% -0.1% Volume Price/Mix Excl Restructuring
Slide 13: Higher EBITA margin excl. IAC
Higher EBITA margin excl. IAC +110bps -50bps -40bps 13.9% 14.1% • Good price discipline • Lower COGS • Higher volumes • Positive mix +20bps Q3 2023 Impact Gross A&P SG&A Q3 2024 Profit Margin (excl. A&P) Interim Report - Quarter 3, 2024 13
Slide 14: Record high cash flow generation
Record high cash flow generation Operating Cash flow 6,453 6,054 5,914 4,253 3,239 SEKm 2,849 2,870 2,847 2,621 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Interim Report - Quarter 3, 2024 14
Slide 15: Strengthened balance sheet
Strengthened balance sheet 70 5 62.9 4.5 60 54.4 55.4 53.7 52.5 50.9 4 50 3.5 42.7 3 40 3.0 3.1 2.5 2.8 29.1 30 50.4 50.9 2.8 2 2.342.7 34.3 20 2.0 1.5 1.8 1 10 1.1 0.5 0 0 2017 2018 2019 2020 2021 2022 2023 9M 2024 Net Debt, SEKbn Net Debt / EBITDA excl IAC Interim Report - Quarter 3, 2024 15
Slide 16: Capital Markets Day 2024: Accelerating Profitable Growth
Capital Markets Day 2024 Accelerating Profitable Growth December 3 Valls, Spain Interim Report - Quarter 3, 2024 16
Slide 17: Q&A
Q&A
Slide 18: Summary
Summary Organic Sales Growth Q3 2024 vs Q3 2023 • Essity in better shape than ever • Continued priority to accelerate profitable growth Incontinence Products Consumer Tissue +2.0% • Strong development in the quarter with Health Care +3.0% – Higher volumes and market share gains Professional – Strong
Slide 19: 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
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