Essity FY Conference Summary Company Overview - **Company**: Essity - **CEO**: Ulrika Kolsrud - **Annual Net Sales**: SEK 146 billion - **Employees**: 36,000 across 150 countries - **Manufacturing Sites**: 70 Key Business Segments 1. **Consumer Goods**: Personal and home hygiene solutions, with a focus on higher-yielding segments like feminine hygiene and incontinence care, reducing dependency on lower-margin consumer tissue products [4][6] 2. **Health and Medical**: Highest profit margins, includes incontinence care under the TENA brand, and other categories like wound care and orthopedics [6][8] 3. **Professional Hygiene**: Represents 26% of sales, with the Tork brand providing hygiene solutions for commercial applications [7][8] Market Dynamics - **Incontinence Care**: Significant growth potential as 1 in 4 men over 40 experience urine leakage, with only 5% to 7% using purpose-made products [4] - **Feminine Hygiene**: Positive market share growth in regions like the UK, Australia, and Mexico [25] - **Baby Care**: Facing challenges due to declining birth rates [10] - **Economic Climate**: Limited impact on demand for essential hygiene products despite economic pressures; growth opportunities in developing and emerging (D&E) regions [10][11] Financial Targets - **Organic Growth Target**: Above 3% with a profit margin of 15% [11][53] - **Market Growth Rates**: Global average of 2% to 3%, with higher rates in health and medical segments [11] Strategic Focus - **Innovation**: Key to differentiation, market share gains, and sustainability [12][13] - **Customer Centricity**: Elevating focus on customer needs and experiences [12][22] - **Efficiency Gains**: Continuous improvement across the value chain [13] Recent Innovations - **TENA Men Product**: Facelift and new claims to capture growth potential [5] - **Coreless Toilet Paper Technology**: Reduces waste and enhances user experience [15] - **Tork Sensor-Based Dispenser**: Increased battery life from one year to six years [14] Challenges and Responses - **Volume Growth**: Flattish volume growth and increasing costs noted; focus on accelerating volume growth and reducing costs [18] - **Price Sensitivity**: Incontinence care remains less impacted by price sensitivity due to brand trust [32][33] - **Public Funding Pressure**: Addressing challenges in public funding for healthcare while promoting holistic solutions [30][40] Competitive Landscape - **Joint Venture Impact**: The JV between Suzano and Kimberly-Clark viewed as a rational competitor, with no major negative impact expected [28] - **Market Share Stability**: Gaining or stabilizing market share in most categories, with challenges noted in baby care [25] Future Outlook - **Geographical Expansion**: Focus on increasing presence in the U.S. and D&E markets [23] - **M&A Strategy**: Ambition to grow both organically and inorganically, particularly in wound care [42][44] - **Sustainability Recognition**: Acknowledged for efforts in sustainability, enhancing brand reputation [16][17] Conclusion - **Vision**: Commitment to becoming the undisputed global leader in hygiene and health, with a focus on profitable growth and stability [53][55]