#Sweden #share buyback #Stockholm #Essity

Essity Introduces New Share Buyback Program

In a significant move aimed at reinforcing shareholder confidence, Essity's Board of Directors has announced the initiation of a new share buyback program valued at SEK 3 billion. This program, authorized during the Annual General Meeting held on March 26, 2026, is set to kick off on May 11, 2026, with an extended duration until the next Annual General Meeting in 2027.

Objectives and Financing

The primary goal of this program is to utilize cash flow generated from regular operations, post-distribution of ordinary dividends, ensuring that the repurchase effectively contributes to the company’s capital allocation strategy. Essity has expressed an intention to make share buybacks a recurring practice, thereby fostering a sustainable method of value enhancement for shareholders.

Compliance and Operational Framework

The execution of the share repurchase will take place on Nasdaq Stockholm, aligning with the stock exchange's issuer regulations. Furthermore, the process will be in compliance with the EU Market Abuse Regulation (MAR) and the European Commission's Delegated Regulation 2016/1052, known as the Safe Harbour Regulation. This adherence underscores Essity’s commitment to operate within the legal boundaries while effectively managing its financial strategy.

Key Conditions of the Program

As part of the terms and conditions established for the buyback program, it is specified that shares should not be acquired at prices exceeding either the highest recent independent transaction price or the highest current independent bid price. Additionally, all purchases will be conducted in cash.

The authorization allows for a repurchase of shares that do not exceed 10% of Essity’s total outstanding shares at any given moment, with a clear expectation that the shares repurchased will eventually be cancelled, thus positively impacting the company’s equity structure.

Current Share Structure

Essity currently has a total of 681,945,171 shares, which includes 57,200,658 Class A shares and 624,744,513 Class B shares. Of these, Essity holds 1,240,123 Class B shares in treasury, which will play a role in the buyback program. Regular updates regarding the progress of the share buybacks will be reported weekly on Essity’s official website, ensuring transparency with investors and stakeholders.

Final Thoughts

This buyback initiative represents Essity’s dedication to enhancing shareholder value and demonstrates its proactive approach in utilizing financial resources for optimal corporate governance. With the strategic implementation of this program, Essity aims to strengthen its market position and reassure investors of its commitment to long-term growth and profitability.

For further inquiries or detailed information, stakeholders can reach out to Sandra Åberg, Vice President of Investor Relations at +46 70 564 96 89, or Per Lorentz, Vice President of Corporate Affairs at +46 73 313 30 55.

This initiative by Essity marks a pivotal moment in its journey towards financial robustness and sustained shareholder engagement.