Financials

Consolidated income statement

SEKm	Note	2017	2016	2015	2014
Net sales	B1	109,265	101,238	98,519	87,997
Cost of goods sold	B2	-76,899	-72,438	-71,898	-64,081
Items affecting comparability	B2	-509	-532	-267	-441
Gross profit		31,857	28,268	26,354	23,475
Sales and administration expenses etc.	B2	-19,130	-16,965	-16,216	-14,527
Items affecting comparability	B2	-346	-2,113	-25¹⁾	-568
Share of profits of associates and joint ventures		169	157	198	106
EBITA		12,550	9,347	10,311	8,486
Amortizations on acquisition related intangible assets		-560	-159	-133	-126
Items affecting comparability		-85	-180	-494	0
Operating profit		11,905	9,008	9,684	8,360
Financial income	E7	158	202	312²⁾	416
Financial expenses	E7	-1,340	-1,037	-1,140	-1,156
Profit before tax		10,723	8,173	8,856	7,620
Tax	B4	-1,938	-3,931	-2,278	-1,939
Profit for the period		8,785	4,242	6,578	5,681

Earnings attributable to:
Owners of the Parent		8,116	3,800	6,129	5,212
Non-controlling interests		669	442	449	469

Earnings per share
Earnings per share, SEK - owners of Parent
before dilution effects		11.56	5.41	8.73	7.42
after dilution effects		11.56	5.41	8.73	7.42
Dividend per share, SEK		5.75

Profit for the year attributable to owners of the Parent		8,116	3,800	6,129	5,212
Average number of shares before dilution, million		702.3	702.3	702.3	702.3
Average number of shares after dilution		702.3	702.3	702.3	702.3

By business area (SEKm)
Net Sales
Personal Care		40,586	33,651	34,344	31,066
Consumer Tissue		42,014	41,560	41,657	37,051
Professional Hygiene		26,700	26,001	22,527	19,943
Other		-35	26	-9	-63
Total		109,265	101,238	98,519	87,997

Adjusted EBITA
Personal Care		5,937	4,283	3,997	3,528
Consumer Tissue		4,084	4,450	3,846	3,858
Professional Hygiene		4,004	3,836	3,497	2,918
Other		-620	-577	-737	-809
Total Adjusted EBITA³⁾		13,405	11,992	10,603	9,495

1) Includes the sale of securities, SEK 970m.
2) Excludes the sale of securities, SEK 970m.
3) Excluding items affecting comparability

Last updated: 5/15/2018 10:00 AM

Consolidated balance sheet

SEKm	Note	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
ASSETS
Non-current assets
Goodwill	D1	31,697	19,253	15,412	15,660
Other intangible assets	D1	21,424	7,665	7,351	7,895
Buildings, land, machinery and equipment	D2	48,482	47,494	42,402	43,599
Participations in joint ventures and associates	F3	1,062	1,096	1,041	1,047
Shares and participations	F5	32	32	33	40
Surplus in funded pension plans	C5	1,148	335	35	3
Non-current receivables, Group companies	G4	-	-	39	11
Non-current financial receivables, Group companies	G4	-	3	3	3
Non-current financial assets	E2	552	714	728	2,843
Deferred tax assets	B4	2,232	1,457	1,056	1,151
Other non-current assets		469	241	149	116
Total non-current assets		107,098	78,290	68,249	72,368

Current assets
Inventories	D3	13,739	10,944	11,229	10,343
Trade receivables	E3	17,607	15,843	14,808	14,912
Current tax assets	B4	769	740	868	647
Current receivables, Group companies	G4	-	57	166	117
Current financial receivables, Group companies	G4	-	1,433	12,207	12,764
Other current receivables	D5	2,549	2,333	2,100	2,188
Current financial assets	E2	1,105	244	776	1,260
Non-current assets held for sale	G1	42	156	120	60
Cash and cash equivalents	E2	4,107	4,244	4,828	3,806
Total current assets		39,918	35,994	47,102	46,097
Total assets		147,016	114,284	115,351	118,465

EQUITY AND LIABILITIES
Equity	E8
Owners of the Parent
Share capital		2,350	-	-	-
Reserves		3,154	4,061	1,501	4,015
Retained earnings		36,785	29,143	41,485	35,660
		42,289	33,204	42,986	39,675
Non-controlling interests		7,281	6,376	5,289	5,250
Total equity		49,570	39,580	48,275	44,925

Non-current liabilities
Non-current financial liabilities	E4	47,637	31,299	21,463	24,199
Non-current liabilities, Group companies	G4	-	48	-	4
Provisions for pensions	C5	4,541	5,273	2,919	4,958
Deferred tax liabilities	B4	7,090	3,872	3,756	3,231
Other non-current provisions	D6	1,481	1,407	886	579
Other non-current liabilities	D5	79	72	146	97
Total non-current liabilities		60,828	41,971	29,170	33,068

Current liabilities
Current financial liabilities	E4	7,201	5,089	12,402	14,791
Current liabilities, Group companies	G4	-	259	341	273
Current financial liabilities, Group companies	G4	-	485	852	1,797
Trade payables		14,748	12,972	11,869	11,800
Current tax liabilities	B4	553	915	808	729
Current provisions	D7	1,547	1,409	889	917
Other current liabilities	D6	12,569	11,604	10,745	10,165
Total current liabilities		36,618	32,733	37,906	40,472
Total liabilities		97,446	74,704	67,076	73,540
Total equity and liabilities		147,016	114,284	115,351	118,465

Contingent liabilities and pledged assets, see Note G3 in the Annual and Sustainability Report 2017

Capital employed		102,037	74,753	67,333	69,991
Net debt		52,467	35,173	19,058	25,066

Last updated: 5/15/2018 10:00 AM

Consolidated operating cash flow statement

SEKm	Note	2017	2016	2015	2014
Net sales		109,265	101,238	98,519	87,997
Operating expenses		-90,867	-84,498	-83,483	-74,466
Operating surplus		18,398	16,740	15,036	13,531
Adjustment for non-cash items		67	19	15	-10
Operating cash surplus		18,465	16,759	15,051	13,521
Change in
Inventories		-1,703	1,059	-1,407	-120
Operating receivables		1,522	-298	-1,029	-158
Operating liabilities		-559	835	1,919	131
Change in working capital		-740	1,596	-517	-147
Current capital expenditures, net		-3,911	-4,222	-3,293	-2,861
Restructuring costs, etc.		-1,091	-1,102	-801	-799
Operating cash flow		12,723	13,031	10,440	9,714

Financial items	E7	-1,182	-835	-828	-740
Income taxes paid	B4	-2,971	-3,782	-2,194	-2,099
Other		175	149	132	25
Cash flow from current operations		8,745	8,563	7,550	6,900

Strategic capital expenditures, restructuring costs and divestments
Acquisitions	F6	-26,045	-6,540	-92	-492
Strategic capital expenditures in non-current assets		-2,101	-2,033	-2,179	-1,632
Total strategic capital expenditures		-28,146	-8,573	-2,271	-2,124

Divestments	F6	29	369	49	205
Cash flow from strategic restructuring costs, capital expenditures and divestments		-28,117	-8,204	-2,222	-1,919
Cash flow before dividend		-19,372	359	5,328	4,981

Private placement to non-controlling interests		28	435	-	-
Dividend to non-controlling interest		-285	-190	-216	-228
Transactions with share owners		838	-14,571	-2,225	-4,215
Net cash flow		-18,791	-13,967	2,887	538


Net debt, 1 January		-35,173	-19,058	-25,066	-21,470
Net cash flow		-18,791	-13,967	2,887	538
Remeasurements to equity		1,061	-1,570	1,281	-2,455
Translation differences		436	-578	1,840	-1,679
Net debt, 31 December		-52,467	-35,173	-19,058	-25,066

Last updated: 5/15/2018 10:00 AM

Key figures

	2017		2016		2015		2014
	SEK	EUR²⁾	SEK	EUR²⁾	SEK	EUR²⁾	SEK	EUR²⁾
Net sales, SEKm/EURm	109,265	11,343	101,238	10,706	98,519	10,537	87,997	9,682
EBITA, SEKm/EURm	12,550	1,303	9,347	988	10 311³⁾	1,103	8,486	934
Adjusted EBITA, SEKm/EURm¹⁾	13,405	1,392	11,992	1,268	10,603	1,134	9,495	1,045
EBITA margin, %	11.5		9.2		9.8		9.6
Adjusted EBITA margin, %¹⁾	12.3		11.8		10.8		10.8
Profit before tax, SEKm/EURm	10,723	1,113	8,173	864	8,856	947	7,620	838
Adjusted profit before tax, SEKm/EURm¹⁾	11,663	1,211	10,998	1,163	9,642	1,026	8,629	949
Profit for the year, SEKm/EURm	8,785	912	4,242	449	6,578	704	5,681	625
Adjusted profit for the year, SEKm/EURm¹⁾	9,472	983	6,643	703	6,897	738	6,467	712
Earnings per share, SEK	11.56		5,41⁴⁾		8,73⁴⁾		7,42⁴⁾
Adjusted earnings per share, SEK¹⁾	13.09		8,99⁴⁾		9,2⁴⁾		8,5⁴⁾
Equity per share, SEK	70.58		56,13⁴⁾		68⁴⁾		64⁴⁾
Cash flow from current operations per share, SEK	12.45		12,19⁴⁾		10,75⁴⁾		9,82⁴⁾
Strategic investments, incl. acquisitions, SEKm/EURm	-28,146	-2,922	-8,573	-907	-2,271	-243	-2,124	-234
Divestments, SEKm/EURm	29	3	369	39	49	5	205	23
Equity, SEKm/EURm	49,570	5,039	39,580	4,186	48,275	5,163	44,925	4,943
Return on capital employed, %	13.9		12.8		13.8		12.5
Adjusted return on capital employed, %¹⁾	14.9		16.4		15.1		14.2
Return on equity, %	19.8		9.3		13.9		13.3
Adjusted return on equity, %¹⁾	21.3		14.5		15.0		19.0
Debt/equity ratio, including pension liabilities	1.06		0.89		0.39		0.56
Debt/equity ratio, excluding pension liabilities	0.99		0.76		0.34		0.45

Average number of employees	46,385		42,149		39,951		40,165
Number of employees on December 31	47,700		42,520		40,147

1) Excluding items affecting comparability
2) An exchange rate of 9.63 (9.46, 9.35, 9.09) was used for income statement items. An exchange rate of 9.84 (9.56, 9.13, 9.53) was used for equity.
3) Includes the sale of securities, SEK 970m, EUR 103.7m.
⁴⁾ Indicative earnings per share on the assumption that the number of issued shares in Essity as of December 31, 2016, 2015 and 2014 corresponded to the number of issued shares in Essity on December 31, 2017 (702.3 million)

Last updated: 5/15/2018 10:00 AM

Multi-year summary

SEKm	2017	2016	2015	2014
INCOME STATEMENT
Net sales	109,265	101,238	98,519	87,997
Adjusted EBITA	12,550	11,992	10,603	9,495
Personal Care	5,937	4,283	3,997	3,528
Consumer Tissue	4,084	4,450	3,846	3,858
Professional Hygiene	4,004	3,836	3,497	2,918
Other operations	-1,475	-577	-737	-809
Amortization of acquisition-related intangible assets, etc	-645	-339	-627	-126
Operating profit¹⁾	11,905	9,008	9 684³⁾	8,360
Financial income	158	202	312³⁾	416
Financial expenses	-1,340	-1,037	-1,140	-1,156
Profit before tax	10,723	8,173	8,856	7,620
Tax	-1,938	-3,931	-2,278	-1,939
Profit for the year	8,785	4,242	6,578	5,681

BALANCE SHEET
Non-current assets (excl. financial receivables)	105,398	77,238	67,483	69,519
Receivables and inventories	34,664	29,917	29,171	28,207
Non-current assets held for sale	42	156	120	60
Financial receivables	1,700	1,052	766	2,849
Non-current financial items	1,105	1,677	12,983	14,024
Cash and cash equivalents	4,107	4,244	4,828	3,806
Total assets	147,016	114,284	115,351	118,465

Equity	42,289	33,204	42,986	39,675
Non-controlling interests	7,281	6,376	5,289	5,250
Provisions	11,631	9,145	6,675	8,189
Interest-bearing debt	54,838	38,352	35,749	41,463
Operating and other non-interest-bearing liabilities	30,977	27,207	24,652	23,888
Total liabilities and equity	147,016	114,284	115,351	118,465

Capital employed²⁾	90,167	73,145	70,115	66,866
Net debt, incl pension provisions	52,467	35,173	19,058	25,066

CASH FLOW STATEMENT
Operating cash flow	12,723	13,031	10,440	9,714
Cash flow from current operations	8,745	8,563	7,550	6,900
Cash flow before dividend	-19,372	359	5,328	4,981
Current capital expenditures	-3,911	-4,222	-3,293	-2,861
Strategic capital expenditures	-2,101	-2,033	-2,179	-1,632
Acquisitions	-26,045	-6,540	-92	-492
Divestments	29	369	49	205
Net cash flow	-18,791	-13,967	2,887	538

1) Items affecting comparability is included with	-940	-2,825	-786	-1,009
5) Calculation of average capital employed is based on five measurements
³⁾ The sale of securities, SEK 970m, are included in operating profit

Last updated: 5/15/2018 10:00 AM

Key Ratios

Key ratios	2017	2016	2015	2014
Equity/assets ratio, %	29	29	37	33
Debt/equity, incl. Pension liabilities	1.06	0.89	0.39	0.56
Return on capital employed, %	13.9	12.8	13.8	12.5
Return on capital employed, excluding items affecting comparability, %	14.9	16.4	15.1	14.2
Return on equity, %	19.8	9.3	13.9	13.3
EBITA margin, %	11.5	9.2	9.8	9.6
EBITA margin, excluding items affecting comparabiltiy, %	12.3	11.8	10.8	10.8
Earnings per share, SEK	11.56	5.41	8.73	7.20

Last updated: 5/15/2018 10:00 AM

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