Essity (ESSITY) UBS Global Consumer and Retail Conference summary

Key business drivers and market positioning

• Leading hygiene and health brands, including TENA and Tork, serve 1 billion people in 150 countries, holding #1 or #2 positions in most markets.

• High unmet need in incontinence care due to low product usage rates among affected populations, supporting growth potential.

• Four business areas: Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene, with focus on high-margin segments.

• Strategic reduction in exposure to less profitable Consumer Tissue, while expanding in high-yielding categories and geographies.

• Mega trends such as aging population, increased hygiene awareness, and rising disposable income drive category growth.

Strategic initiatives and acquisitions

• Strategy centers on innovation, efficiency, and prioritizing high-yield segments and attractive geographies.

• Acquired Edgewell's feminine care business in North America, including Carefree, Stayfree, O.b., and Playtex brands, for USD 340m, doubling Personal Care sales in the U.S.

• Integration of Edgewell acquisition aims to strengthen the Personal Care business in North America.

• Reorganization to decentralize decision-making and sharpen focus on profitable segments, with SG&A cost-saving program to be achieved by end of 2026.

• SG&A savings and organizational reshaping to unlock resources for profitable growth.

Financial performance and targets

• 2025 net sales reached SEK 138bn, with EBITA (excl. IAC) at SEK 19.6bn and 36,000 employees globally.

• 2025 EBITA margin (excl. IAC) at 14.7%, EPS up 14% to SEK 4.69m, and strong cash flow.

• Annual organic sales growth target above 3% and EBITA margin target above 15%.

• EPS grew 58% since 2017, reaching SEK 19.4 per share in 2025 (CAGR 6%).

• Proposed 2025 dividend of SEK 8.75 per share, up 6% year-over-year and 52% since 2018.