Essity

M&A Activity • Dec 10, 2020

Press release

Stockholm, December 10, 2020

Essity announces proposal to increase ownership in Asaleo Care Limited

Essity Aktiebolag (publ) ("Essity") today announced that Essity has made a nonbinding indicative proposal to the Board of the hygiene company Asaleo Care Limited ("Asaleo") for the acquisition of additional shares in Asaleo for a consideration of AUD 1.26 per share. Asaleo is listed on the Australian Securities Exchange (ASX). Essity is the largest shareholder of Asaleo, currently holding 36.2% of the shares. Asaleo's current market capitalization on ASX is AUD 549m, based on the closing market price 1.01 AUD on 9 December 2020.

There can be no certainty that any agreement will be reached, that a formal binding proposal will be submitted, or that a transaction will be undertaken.

The proposal is not subject to financing conditions. Essity will finance its acquisition of shares through own funds.

Beyond what is communicated in this press release, Essity will not make any further comments on the proposal at this time

NB: This information is such that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 03:15 CET on December 10, 2020.

____________________________________________________________________

_______________________________________________________________________

Karl Stoltz, Media Relations Manager, +46 8 788 51 55

Essity contacts:

Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30, johan.ir.karlsson@essity.com Per Lorentz, Vice President Corporate Communications +46 8 788 52 51, per.lorentz@essity.com

About Essity

Essity is a leading global hygiene and health company. We are dedicated to improving well-being through our products and services. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 46,000 employees. Net sales in 2019 amounted to approximately SEK 129bn (EUR 12.2bn). The company's headquarters is located in Stockholm, Sweden, and Essity is listed on Nasdaq Stockholm. Essity breaks barriers to well-being and contributes to a healthy, sustainable and circular society. More information at www.essity.com.