Financials

Consolidated income statement

SEKm	2020	2019	2018	2017	2016	2015	2014
Net sales	121,752	128,975	118,500	109,265	101,238	98,519	87,997
Cost of goods sold	-82,132	-90,876	-85,058	-76,899	-72,438	-71,898	-64,081
Items affecting comparability - cost of goods sold	-181	-243	-1,437	-509	-532	-267	-441
Gross profit	39,439	37,856	32,005	31,857	28,268	26,354	23,475
Sales, general and administration	-22,088	-22,319	-20,570	-19,130	-16,965	-16,216	-14,527
Items affecting comparability - sales, general and administration	122	-470	62	-346	-2,113	-25¹⁾	-568
Share of profits of associates and joint ventures	94	60	63	169	157	198	106
Operating profit before amortization of acquisition-related intangible assets (EBITA)	17,567	15,127	11,560	12,550	9,347	10,311	8,486
Amortization on acquisition-related intangible assets	-809	-778	-732	-560	-159	-133	-126
Items affecting comparability - acquisition-related intangible assets	-	-	-69	-85	-180	-494	0
Operating profit	16,758	14,349	10,759	11,905	9,008	9,684	8,360
Financial income	108	106	91	158	202	312²⁾	416
Financial expenses	-1,066	-1,415	-1,248	-1,340	-1,037	-1,140	-1,156
Profit before tax	15,800	13,040	9,602	10,723	8,173	8,856	7,620
Income taxes	-4,053	-2,828	-1,050	-1,938	-3,931	-2,278	-1,939
Profit for the period	11,747	10,212	8,552	8,785	4,242	6,578	5,681

Earnings attributable to:
Owners of the Parent company	10,228	9,216	7,886	8,116	3,800	6,129	5,212
Non-controlling interests	1,519	996	666	669	442	449	469

Earnings per share - owners of the Parent company
Earnings per share before and after dilution effects, SEK	14.56	13.12	11.23	11.56	5.41⁴⁾	8.73⁴⁾	7.42⁴⁾
Dividend per share, SEK	6.75	6.25	5.75	5.75
Average number of shares before and after dilution, million	702.3	702.3	702.3	702.3	702.3⁴⁾	702.3⁴⁾	702.3⁴⁾

By operating segment (SEKm)
Net Sales
Personal Care	46,095	48,340	45,342	40,586	33,651	34,344	31,066
Consumer Tissue	50,221	49,904	45,125	42,014	41,560	41,657	37,051
Professional Hygiene	25,418	30,731	28,017	26,700	26,001	22,527	19,943
Other	18	0	16	-35	26	-9	-63
Total	121,752	128,975	118,500	109,265	101,238	98,519	87,997

Adjusted EBITA
Personal Care	7,161	6,746	6,354	5,937	4,283	3,997	3,528
Consumer Tissue	8,045	5,321	3,331	4,084	4,450	3,846	3,858
Professional Hygiene	3,317	4,463	3,841	4,004	3,836	3,497	2,918
Other	-897	-690	-591	-620	-577	-737	-809
Total Adjusted EBITA³⁾	17,626	15,840	12,935	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
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, 2018 (702.3 million).

Last updated: 3/2/2021 8:00 AM

Consolidated balance sheet

SEKm	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
ASSETS
Non-current assets
Goodwill	32,324	34,581	33,553	31,697	19,253	15,412	15,660
Other intangible assets	18,574	21,182	21,475	21,424	7,665	7,351	7,895
Property, plant and equipment	53,631	56,900	51,673	48,482	47,494	42,402	43,599
Participations in joint ventures and associated companies	847	865	777	1,062	1,096	1,041	1,047
Shares and participations	7	8	29	32	32	33	40
Surplus in funded pension plans	2,817	2,841	1,117	1,148	335	35	3
Non-current receivables, Group companies	-	-	-	-	-	39	11
Non-current financial receivables, Group companies	-	-	-	-	3	3	3
Non-current financial assets	738	694	634	552	714	728	2,843
Deferred tax assets	1,823	2,539	2,158	2,232	1,457	1,056	1,151
Other non-current assets	768	704	705	469	241	149	116
Total non-current assets	111,529	120,314	112,121	107,098	78,290	68,249	72,368

Current assets
Inventories	16,383	15,764	15,234	13,739	10,944	11,229	10,343
Trade receivables	17,825	19,864	18,687	17,607	15,843	14,808	14,912
Current tax assets	760	745	2,126	769	740	868	647
Current receivables, Group companies	-	-	-	-	57	166	117
Current financial receivables, Group companies	-	-	-	-	1,433	12,207	12,764
Other current receivables	2,173	2,113	2,599	2,549	2,333	2,100	2,188
Current financial assets	993	525	422	1,105	244	776	1,260
Non-current assets held for sale	-	42	69	42	156	120	60
Cash and cash equivalents	4,982	2,928	3,008	4,107	4,244	4,828	3,806
Total current assets	43,116	41,981	42,145	39,918	35,994	47,102	46,097
Total assets	154,645	162,295	154,266	147,016	114,284	115,351	118,465

EQUITY AND LIABILITIES
Equity
Owners of the Parent company
Share capital	2,350	2,350	2,350	2,350	-	-	-
Reserves	581	6,284	5,003	3,154	4,061	1,501	4,015
Retained earnings	51,421	45,491	39,788	36,785	29,143	41,485	35,660
	54,352	54,125	47,141	42,289	33,204	42,986	39,675
Non-controlling interests	8,990	8,676	7,758	7,281	6,376	5,289	5,250
Total equity	63,342	62,801	54,899	49,570	39,580	48,275	44,925

Non-current liabilities
Non-current financial liabilities	38,202	43,079	43,500	47,637	31,299	21,463	24,199
Non-current liabilities, Group companies	-	-	-	-	48	-	4
Provisions for pensions	5,328	5,866	5,258	4,541	5,273	2,919	4,958
Deferred tax liabilities	6,150	6,545	7,272	7,090	3,872	3,756	3,231
Other non-current provisions	445	541	1,694	1,481	1,407	886	579
Other non-current liabilities	105	183	71	79	72	146	97
Total non-current liabilities	50,230	56,214	57,795	60,828	41,971	29,170	33,068

Current liabilities
Current financial liabilities	8,688	8,983	10,827	7,201	5,089	12,402	14,791
Current liabilities, Group companies	-	-	-	-	259	341	273
Current financial liabilities, Group companies	-	-	-	-	485	852	1,797
Trade payables	14,791	15,802	15,911	14,748	12,972	11,869	11,800
Current tax liabilities	2,301	2,432	570	553	915	808	729
Current provisions	748	1,065	1,472	1,547	1,409	889	917
Other current liabilities	14,545	14,998	12,792	12,569	11,604	10,745	10,165
Total current liabilities	41,073	43,280	41,572	36,618	32,733	37,906	40,472
Total liabilities	91,303	99,494	99,367	97,446	74,704	67,076	73,540
Total equity and liabilities	154,645	162,295	154,266	147,016	114,284	115,351	118,465

Contingent liabilities and pledged assets, see Note G3 in the Annual and Sustainability Report 2020

Capital employed	106,030	113,741	109,303	102,037	74,753	67,333	69,991
Net debt	42,688	50,940	54,404	52,467	35,173	19,058	25,066

Last updated: 3/2/2021 8:00 AM

Consolidated operating cash flow statement

SEKm	2020	2019	2018	2017	2016	2015	2014
Net sales	121,752	128,975	118,500	109,265	101,238	98,519	87,997
Operating expenses	-97,555	-106,416	-100,165	-90,867	-84,498	-83,483	-74,466
Operating surplus	24,197	22,559	18,335	18,398	16,740	15,036	13,531
Adjustment for non-cash items	456	373	235	67	19	15	-10
Operating cash surplus	24,653	22,932	18,570	18,465	16,759	15,051	13,521
Change in
Inventories	-2,207	-194	-1,017	-1,703	1,059	-1,407	-120
Operating receivables	53	-1,949	-344	1,522	-298	-1,029	-158
Operating liabilities	1,344	2,502	390	-559	835	1,919	131
Change in working capital	-810	359	-971	-740	1,596	-517	-147
Investments in non-current assets, net¹⁾	-6,439	-5,707	-6,781	-6,012	-6,255	-5,472	-4,493
Restructuring costs, etc.	-977	-1,494	-918	-1,091	-1,102	-801	-799
Operating cash flow before investments in operating assets through leases¹⁾	16,427	16,090	9,900	10,622	10,998	8,261	8,082
Investments in operating assets through leases	-409	-451	0	0	0	0	0
Operating cash flow¹⁾	16,018	15,639	9,900	10,622	10,998	8,261	8,082

Financial items	-958	-1,309	-1,157	-1,182	-835	-828	-740
Income taxes paid	-3,917	-1,130	-2,466	-2,971	-3,782	-2,194	-2,099
Other	32	8	86	175	149	132	25
Cash flow from current operations	11,175	13,208	6,363	6,644	6,530	5,371	5,268
Acquisitions of Group companies and other operations	-747	-143	-694	-26,045	-6,540	-92	-492
Divestments of Group companies and other operations	367	220	68	29	369	49	205
Cash flow from acquisitions and divestments¹⁾	-380	77	-626	-26,016	-6,171	-43	-287
Cash flow before transactions with shareholders	10,795	13,285	5,737	-19,372	359	5,328	4,981

Private placement to non-controlling interests	64	4	5	28	435	0	0
Dividend to non-controlling interest	-423	-336	-397	-285	-190	-216	-228
Dividend	-4,390	-4,038	-4,038	0	0	0	0
Transactions with share owners	0	0	0	838	-14,571	-2,225	-4,215
Net cash flow	6,046	8,915	1,307	-18,791	-13,967	2,887	538


Net debt, 1 January	-50,940	-54,404	-52,467	-35,173	-19,058	-25,066	-21,470
Changed opening balance for net debt due to IFRS 16 Leases	0	-3,786	0	0	0	0	0
Net cash flow	6,046	8,915	1,307	-18,791	-13,967	2,887	538
Remeasurements to equity	-199	488	-1,041	1,061	-1,570	1,281	-2,455
Investments in non-operating assets through leases	-399	-434	0	0	0	0	0
Translation differences	2,804	-1,719	-2,203	436	-578	1,840	-1,679
Net debt, 31 December	-42,688	-50,940	-54,404	-52,467	-35,173	-19,058	-25,066

¹⁾ Comments on the consolidated operating cash flow statement
As of 2019, strategic capital expenditures are recognized together with current capital expenditures and are included in Investments in non-current assets, net. Previously, strategic capital expenditures were recognized below Cash flow from current operations together with acquisitions and divestments. The effect of the restatement of comparative periods entailed a decrease in Operating cash flow and Cash flow from operations. Net cash flow in unchanged for periods in the preceding year.

Last updated: 3/2/2021 8:00 AM

Multi-year summary

SEKm	2020	2019	2018	2017	2016	2015	2014
INCOME STATEMENT
Net sales	121,752	128,975	118,500	109,265	101,238	98,519	87,997
Adjusted EBITA	17,626	15,840	12,935	13,405	11,992	10,603	9,495
Personal Care	7,161	6,746	6,354	5,937	4,283	3,997	3,528
Consumer Tissue	8,045	5,321	3,331	4,084	4,450	3,846	3,858
Professional Hygiene	3,317	4,463	3,841	4,004	3,836	3,497	2,918
Other operations	-897	-690	-591	-620	-577	-737	-809
Items affecting comparability	-59	-713	-1,375	-855	-2,645	-292	-1,009
EBITA¹⁾	17,567	15,127	11,560	12,550	9,347	10,311	8,486
Amortizations on acquisition related intangible assets	-809	-778	-732	-560	-159	-133	-126
Items affecting comparability	0	0	-69	-85	-180	-494	0
Operating profit	16,758	14,349	10,759	11,905	9,008	9,684	8,360
Financial income²⁾	108	106	91	158	202	312	416
Financial expenses	-1,066	-1,415	-1,248	-1,340	-1,037	-1,140	-1,156
Profit before tax	15,800	13,040	9,602	10,723	8,173	8,856	7,620
Income taxes	-4,053	-2,828	-1,050	-1,938	-3,931	-2,278	-1,939
Profit for the period	11,747	10,212	8,552	8,785	4,242	6,578	5,681

BALANCE SHEET
Non-current assets (excl. financial receivables)	107,974	116,779	110,370	105,398	77,238	67,483	69,519
Receivables and inventories	37,141	38,486	38,646	34,664	29,917	29,171	28,207
Non-current assets held for sale	0	42	69	42	156	120	60
Financial receivables	3,555	3,535	1,751	1,700	1,052	766	2,849
Current financial assets	993	525	422	1,105	1,677	12,983	14,024
Cash and cash equivalents	4,982	2,928	3,008	4,107	4,244	4,828	3,806
Total assets	154,645	162,295	154,266	147,016	114,284	115,351	118,465

Equity	54,352	54,125	47,141	42,289	33,204	42,986	39,675
Non-controlling interests	8,990	8,676	7,758	7,281	6,376	5,289	5,250
Provisions⁴⁾	12,671	14,017	15,696	14,659	11,961	8,450	9,685
Interest-bearing debt	46,890	52,062	54,327	54,838	36,873	34,717	40,787
Operating and other non-interest bearing liabilities⁴⁾	31,742	33,415	29,344	27,949	25,870	23,909	23,068
Total liabilities and equity	154,645	162,295	154,266	147,016	114,284	115,351	118,465

Average capital employed³⁾	112,473	114,663	107,575	90,167	73,145	70,115	66,866
Net debt, incl pension provisions	42,688	50,940	54,404	52,467	35,173	19,058	25,066

CASH FLOW STATEMENT
Operating cash flow⁴⁾	16,018	15,639	9,900	10,622	10,998	8,261	8,082
Cash flow from current operations⁴⁾	11,175	13,208	6,363	6,644	6,530	5,371	5,268
Cash flow before transactions with shareholders	10,795	13,285	5,737	-19,372	359	5,328	4,981
Investments in non-current assets, net	-6,439	-5,707	-6,781	-6,012	-6,255	-5,472	-4,493
Acquisitions of Group companies and other operations	-747	-143	-694	-26,045	-6,540	-92	-492
Divestments of Group companies and other operations	367	220	68	29	369	49	205
Net cash flow	6,046	8,915	1,307	-18,791	-13,967	2,887	538

1) 2015 includes sale of securities, SEK 970m
²⁾ 2015 does not include sale of securities, SEK 970m
³⁾ Calculation of average capital employed is based on five measurements
⁴⁾ Comparison figures for 2014 to 2018 have changed

Last updated: 3/2/2021 8:00 AM

Key figures

	2020	2019	2018	2017	2016	2015	2014
	SEK	SEK	SEK	SEK	SEK	SEK	SEK
Equity/assets ratio, %	35	33	31	29	29	37	33
Interest coverage ratio	17.5	11.0	9.3	10.1	10.8	11.7	11.3
Debt payment capacity, incl. Pension liabilities, %	46	38	25	26	29	65	40
Debt/equity ratio, including pension liabilities	0.67	0.81	0.99	1.06	0.89	0.39	0.56
Debt/equity ratio, excluding pension liabilities	0.63	0.76	0.92	0.99	0.76	0.34	0.45
Return on capital employed, %	15.6	13.2	10.8	13.9	12.8	13.8	12.5
Adjusted return on capital employed, %	15.7	13.8	12.0	14.9	16.4	15.1	14.2
Return on equity, %	18.2	17.4	16.1	19.8	9.3	13.9	13.3
EBITA margin, %	14.4	11.7	9.8	11.5	9.2	9.8	9.6
Adjusted EBITA margin, %	14.5	12.3	10.9	12.3	11.8	10.8	10.8
Operating margin, %	13.8	11.1	9.1	10.9	8.9	9.8	9.5
Adjusted operating margin, %	13.8	11.7	10.3	11.8	11.7	10.6	10.6
Net margin, %	9.7	7.9	7.2	8.0	4.2	6.7	6.5
Capital turnover rate	1.08	1.12	1.1	1.21	1.38	1.41	1.32
Cash flow from current operations per share, SEK	15.91	18.81	9.06	9.46	9.3	7.65	7.5
Earnings per share, SEK	14.56	13.12	11.23	11.56	5.41	8.73	7.42
Dividend per share, SEK	27546	6.25	5.75	5.75

Last updated: 3/2/2021 8:00 AM

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Financials

Consolidated income statement

Consolidated balance sheet

Consolidated operating cash flow statement

Multi-year summary

Key figures