G4. Transactions with related parties

Essity was part of the listed company SCA until June 15, 2017 when Essity was distributed to shareholders and listed on Nasdaq Stockholm. Up until the split in 2017, Essity had the following transactions with SCA units, both the former Forest Products business areas and the Parent Company Svenska Cellulosa Aktiebolaget SCA. These transactions are outlined in table TG4:1 below.

Purchases from Forest Products related primarily to pulp used in Essity’s manufacturing process. Pricing between units has adhered to the transfer pricing policy that applied at the SCA Group. The financial income was attributable to the internal bank’s lending to Forest Products.

Transactions in the form of lending and reallocation of net debt have been classified as transactions with shareholders in equity, refer to Note E8 Equity.

The remaining financial dealings between Essity and SCA were settled in conjunction with the split of the Group into two listed companies on June 15, 2017.

Essity owns 36.2% of Asaleo Care Ltd, listed on the stock market in Australia (ASX). Sales to Asaleo mainly concern products in Professional Hygiene and Incontinence Products. Transactions and dealings are outlined in table TG4:2 below.

Essity owns 49% of Bunzl & Biach. Purchases from Bunzl & Biach relate mainly to raw materials in the form of recovered paper. Transactions and dealings are outlined in table TG4:3 below.

TG4:1 Transactions with SCA

SEKm

2019

2018

2017

Purchases

214

Financial income

70

Financial expenses

–9

TG4:1 Transactions and dealings with associated companies, Asaleo Care

SEKm

2019

2018

2017

Sales

424

448

386

Purchases

8

31

Other income

36

41

41

Trade receivables

52

110

87

Trade payables

3

TG4:1 Transactions and dealings with joint ventures, Bunzl & Biach

SEKm

2019

2018

2017

Purchases

319

316

296

Trade payables

23

57

29