#Sweden #share buyback #Stockholm #Class B shares #Essity

Essity Launches SEK 3 Billion Share Buyback Initiative

Essity, the global hygiene and health company, has officially announced a substantial new share buyback program totaling SEK 3 billion. This decision was made by the company’s Board of Directors and utilizes the mandate approved during the Annual General Meeting held on March 27, 2025. The buyback program is set to commence on April 24, 2025, and is projected to continue until the latest Annual General Meeting in 2026.

The decision to initiate this program is a strategic move by Essity to optimize its capital allocation while reinforcing its commitment to delivering value to shareholders. The program will be fueled by cash flow generated from ongoing operations post the distribution of the regular dividend. This approach aims to make share buybacks a consistent component of Essity’s capital allocation strategy moving forward.

The task of managing the buyback will be entrusted to BofA Securities Europe SA, which will operate with independent authority to dictate the timeline for share repurchase, thus minimizing any influence from Essity itself. Transactions will occur on Nasdaq Stockholm, adhering to both the stock exchange’s regulations and the European Union’s Market Abuse Regulation (MAR), alongside the delegation regulation set by the European Commission (2016/1052), commonly referred to as the Safe Harbour Regulation.

Key Guidelines of the Buyback Program

1. Pricing Strategy: The company will buy shares, adhering to the range of prices that is actively available on Nasdaq Stockholm at any given moment. The pricing band is established between the highest purchase price and the lowest sale price circulated by Nasdaq Stockholm.

2. Cash Transactions: All shares purchased during the buyback will be financed through cash.

3. Percentage Cap on Buybacks: According to the authority obtained from the AGM, the program will not surpass 10% of the total outstanding shares at any time. Once bought back, these shares are expected to be canceled.

Essity currently has a total of 693,054,489 shares available in the market, consisting of 58,973,654 Class A shares and 634,080,835 Class B shares. It's worth noting that Essity holds around 782,500 Class B shares in treasury at present.

Additionally, updates regarding this buyback initiative and the number of shares repurchased will be continuously published on Essity’s official website.

This information is essential for stakeholders and aligns with the regulatory obligations stipulated under the EU Market Abuse Regulation. According to their latest communication, this announcement was made public on April 23, 2025, at 16:30 CET.

For any inquiries regarding this buyback program, stakeholders can reach out to key figures within Essity’s corporate structure, including Karl Stoltz (Public Relations Director) and Per Lorentz (Vice President Corporate Communications).

In conclusion, Essity’s bold move to initiate a SEK 3 billion share buyback program reflects the company’s strong financial health and commitment to enhancing shareholder value, illustrating a proactive approach in managing its capital more effectively. The procedures set in place for buyback execution highlight compliance with regulations while maintaining transparency with stakeholders, marking a significant step in Essity's journey in the market.