Slide 1: ECOLAB First Quarter 2023 Supplemental
1 ECOLAB First Quarter 2023 Supplemental
Slide 2: Cautionary Statement Forward-Looking Information
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 macroeconomic conditions, de
Slide 3: 1Q: Continued Strong Operating Performance
1Q: Continued Strong Operating Performance Continued strong sales growth Double-digit OI growth with expanding OI margin Expect quarterly adjusted earnings per share growth to accelerate towards our low double-digit historical performance Reported EPS $0.82, +37%. Adjusted EPS $0.88, +7% ▪ Reported
Slide 4: 1Q Overview
1Q Overview ▪ Sales growth remained strong with reported sales +9% and organic sales +13% o Total pricing +13% o As expected, volume & mix stable at -1%, and slightly positive excluding Europe ▪ Double-digit organic growth in Institutional & Specialty, Industrial, and Other segments, with improved H
Slide 5: 2023 and 2Q Outlook
2023 and 2Q Outlook 2023 2Q ▪ We continue to expect to deliver performance that improves despite a challenging macro environment characterized by high delivered product costs and easing demand. In addition, higher interest expense and currency translation are estimated to have a combined $0.30 per s
Slide 6: 1Q 2023 Sales Growth Detail
1Q 2023 Sales Growth Detail Amounts in the tables above may reflect rounding. Organic excludes sales to ChampionX post-separation. Effective January 1, 2023, the Company’s former Downstream operating segment is now part of the Water operating segment. This change did not have any impact on the Globa
Slide 7: Global Industrial Segment: Water
Global Industrial Segment All sales figures are organic unless otherwise noted 7 Sales +14% Water ▪ Continued strong sales growth driven by robust pricing and new business wins o Light Water: double-digit sales growth driven by very strong performance across data centers, microelectronics, and food
Slide 8: Global Industrial Segment: Paper
Global Industrial Segment Paper All sales figures are organic unless otherwise noted 8 Sales +6% Q2: Expect stable to modest sales growth as pricing and new business wins more than offset continued easing customer production rates ▪ Solid sales growth as strong pricing and new business wins more tha
Slide 9: Global Institutional & Specialty Segment
Global Institutional & Specialty Segment Institutional Specialty All sales figures are organic unless otherwise noted 9 Sales +14% Sales +12% ▪ Strong sales growth driven by robust pricing and new business gains, which together continue to benefit from our innovative products and services that help
Slide 10: Global Healthcare & Life Sciences Segment
Global Healthcare & Life Sciences Segment Healthcare Life Sciences All sales figures are organic unless otherwise noted 10 Sales +7% Sales +10% Q2: Expect modest sales growth reflecting continued strong pricing ▪ Sales growth improved reflecting accelerating pricing and continued growth in surgical
Slide 11: Other Segments: Pest Elimination
Other Segments Pest Elimination All sales figures are organic unless otherwise noted 11 Sales +13% ▪ Strong sales growth led by double-digit gains in food retail, restaurants, hospitality, and food & beverage o Growth benefited from strong pricing and continued robust new business wins, driven by ou
Slide 12: Consolidated Margin Performance
Consolidated Margin Performance ▪ Gross margin expanded as strong pricing overcame continued increases in delivered product costs and unfavorable mix ▪ Improvement driven by sales leverage and cost savings which more than offset investments in the business ▪ Operating margin expanded as strong prici
Slide 13: Segment Operating Income Performance
Segment Operating Income Performance ▪ Organic operating income increased 20% as strong pricing overcame higher delivered product costs, investments in the business, and softer volume ▪ Organic operating income margin expanded 80 bps versus last year ▪ Organic operating income increased 16% as stron
Slide 14: 1Q 2023 Balance Sheet / Cash Flow
1Q 2023 Balance Sheet / Cash Flow * EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is defined as the sum of earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the sum of EBITDA and special (gains) and charges impacting EBITDA. The inputs to EBITDA
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures 15
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 18
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures 19
Slide 20: Non-GAAP Financial Information
Non-GAAP Financial Information 20 Non-GAAP Financial Information: This communication and certain of the accompanying tables include financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures inc
Slide 21: Non-GAAP Financial Information (Cont.)
Non-GAAP Financial Information (Cont.) 21 Non-GAAP Financial Information (Continued): Our non-GAAP financial measures for adjusted cost of sales, adjusted gross margin, adjusted gross profit and adjusted operating income exclude the impact of special (gains) and charges and our non-GAAP financial me