Slide 1: Fourth Quarter 2021 Teleconference Supplemental Data
Fourth Quarter 2021 Teleconference Supplemental Data Please see Ecolab’s news release dated February 15, 2022 for additional information, including discussion on the use of certain non-GAAP financial measures.
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Information This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding COVID-19 pandemic trends, gl
Slide 3: 4Q 2021 Overview
4Q 2021 Overview Overview Continued strong sales growth, driven by new business wins, new products and accelerated pricing in an uneven market recovery, were partially offset by increased COVID-related effects on broad business activity and a near doubling of delivered product cost inflation and
Slide 4: 4Q 2021 Environment
4Q 2021 Environment Restaurants and lodging: The recovery in U.S. and Europe restaurant and hotel traffic stalled versus the third quarter reflecting the increase in COVID variant infections. U.S. full-service in-unit traffic averaged 70% of 2019 levels in 4Q, down slightly from 3Q levels. U.S
Slide 5: 2022 Outlook
2022 Outlook We move into 2022 with strong business momentum. With very healthy sales growth, robust new business wins, new innovation and increased pricing, we expect to progressively compensate for higher delivered product costs and to drive strong earnings growth. While we expect a decent globa
Slide 6: 4Q 2021 Results
4Q 2021 Results Fourth Quarter Ended December 31 Reported Adjusted * (unaudited) Public Currency Rates % Public Currency Rates % (millions, except per share) 2021 2020 Change 2021 2020 Change Net sales $3,364.6 $3,065.3 10 % $3,352.6 $3,065.3 9% Operating income 387.7 416.1 -7 % 475.1 478.0 -1 % NI
Slide 7: 4Q 2021 Sales Growth Detail
4Q 2021 Sales Growth Detail Fixed Rate Acq./Div. Adj. Global Industrial % Change % Change Consolidated % Change Water 9% 8% Volume & mix 6% Food & Beverage 4% 4% Pricing 3% Downstream 9% 9% Subtotal 9% Paper 15% 15% Acq./Div. 1% Total Global Industrial 8% 7% Fixed currency growth 10% Currency impact
Slide 8: 4Q 2021 Income Statement / Margins (cont. ops.)
4Q 2021 Income Statement / Margins (cont. ops.) ($ millions, unaudited)* 2021 % sales 2020 % sales % change Comments** Gross Profit $1,321.5 39.3% $1,285.0 41.9% 3 % Adjusted gross margins of 39.8% in 2021 and 42.0% in 2020 primarily reflected accelerated pricing that was more than offset by signifi
Slide 9: 4Q 2021 Balance Sheet / Cash Flow
4Q 2021 Balance Sheet / Cash Flow Summary Balance Sheet December 31 December 31 (millions, unaudited) 2021 2020 (millions, unaudited) 2021 2020 Cash and cash eq. $359.9 $1,260.2 Short-term debt $411.0 $17.3 Accounts receivable, net 2,478.4 2,273.8 Accounts payable 1,384.2 1,160.6 Inventories 1,491.8
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures Fourth Quarter Ended Twelve Months Ended (unaudited) December 31 December 31 (millions, except percent) 2021 2020 2021 2020 Net sales Reported GAAP net sales $3,364.6 $3,065.3 $12,733.1 $11,790.2 Impact of Purolite on net sales 12.0 - 12.0 - Non-GAAP adjusted net sales 3,
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures (unaudited) Fourth Quarter Ended Twelve Months Ended (millions, except percent and per share) December 31 December 31 2021 2020 2021 2020 Interest expense, net Reported GAAP interest expense, net $44.6 $48.4 $218.3 $290.2 Special (gains) and charges 0.8 - 33.1 83.8 Impact
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures (unaudited) Fourth Quarter Ended December 31 (millions) 2021 2020 Impact of Impact of Fixed Acquisitions and Acquisition Fixed Acquisitions and Acquisition Currency Divestitures Adjusted Currency Divestitures Adjusted Net Sales Global Industrial $1,695.2 ($6.5) $1,688.7 $
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures (unaudited) Twelve Months Ended December 31 (millions) 2021 2020 Impact of Impact of Fixed Acquisitions and Acquisition Fixed Acquisitions and Acquisition Currency Divestitures Adjusted Currency Divestitures Adjusted Net Sales Global Industrial $6,304.9 ($65.9) $6,239.0 $