Ecolab Inc. · NYSE:ECL
Ecolab — Investor Presentation (2025)
35 slides from Ecolab's investor presentation, 2025
Slide 1: Investor Presentation
Investor Presentation EC@LAB
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 macroeconomic conditions and
Slide 3: The Ecolab Success Story
The Ecolab Success Story 1 Delivering consistent 12-15% EPS growth 2 Driving steady 3-4% organic sales growth 3 Building high-margin growth engines 4 Expanding OI margin beyond 20% 33
Slide 4: What We Do Matters
What We Do Matters PUBLIC HEALTH FOOD SECURITY CLIMATE CHANGE WATER STRESS 30% 56% 47% 56% more people more food more energy freshwater by 2050 by 2050 by 2050 deficit by 2030 44
Slide 5: Our Purpose: Protecting What's Vital
Our Purpose: Protecting What’s Vital Protecting Protecting Delivering People Natural Resources High Performance The World’s Water and Infection Prevention Company For a Cleaner, Safer, Healthier World 55 5
Slide 6: Our Promise: Delivering Long-Term Double-Digit EPS Growth
Our Promise: Delivering Long-Term Double-Digit EPS Growth Adjusted Diluted EPS $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 Note: 2017-2020 Adjusted EPS cannot be compared to prior periods as it excludes the estimat
Slide 7: Our Capabilities: Unmatched Reach, Worldwide Impact
Our Capabilities: Unmatched Reach, Worldwide Impact 48,000 40 170+ 3,000 ASSOCIATES INDUSTRIES COUNTRIES SCIENTISTS + DIGITAL EXPERTS WATER FOOD MILLIONS 36% OF CUSTOMER WORLD’S PROCESSED LOCATIONS FOODS PROTECTED CLIMATE HEALTH 22% 1.7 BILLION WORLD’S POWER PEOPLE PROTECTED 77
Slide 8: Our Growth Opportunity: Significant & Expanding
Our Growth Opportunity: Significant & Expanding $165B $165B $152B $135B $106B $57B $39B $32B $18B 1995 2000 2005 2010 2015 2020 2023 2025 + + + + + Pest Elimination Water Life Sciences Purolite Global High-Tech 88
Slide 9: Highly Resilient Model: Balanced End Markets & Geographies
Highly Resilient Model: Balanced End Markets & Geographies 7% 5% 7% North America Water 24% Asia Pacific Institutional & SEGMENTS 50% Specialty REGIONS Greater China 56% Life Sciences EMEA 38% Pest Elimination 4% Latin America 9% 90%+ Consumable Revenue 99
Slide 10: Our Commitment: Driving Long-term, Consistent High Performance
Our Commitment: Driving Long-term, Consistent High Performance Organic Sales Adjusted OI Margin Adjusted EPS $16B+ $7.53 $16B 18% $15B $6.65 17% $14B $5.21 14% 14% $4.69 $13B $4.49 12% +6% +400 +13% CAGR bps CAGR 2021 2022 2023 2024 2025F 2021 2022 2023 2024 2025F 2021 2022 2023 2024 2025F Long-Term
Slide 11: Driving Steady 3-4% Organic Sales Growth
DRIVING STEADY 3-4% ORGANIC SALES GROWTH 11
Slide 12: Double-Digit EPS Growth in Favorable and Challenging Environments
Double-Digit EPS Growth in Favorable and Challenging Environments 5-7%% GROWTH 1-2% 3-4% ENGINES 12-15% 1% EPS Growth 12-15% VALUE 2-3% EPS Growth 2% PRICE ++ + Growth Investments CORE GROWTH 2% Growth Investments 1% Challenged -1% Markets Current Sales Future Sales Trajectory Trajectory 12 12
Slide 13: Strong and Resilient Portfolio
Strong and Resilient Portfolio $3B Growth Engines $11B Double-Digit Growth Core Businesses $16B ▪ ▪ Pest Elimination Life Sciences Low-Mid Single Digit Growth 2024 SALES ▪ Global High-Tech ▪ Institutional & Specialty ▪ Ecolab Digital ▪ Water (ex. GHT, Paper, Basic) $2B Challenged Markets Driving Sha
Slide 14: Gaining Share in Most Markets
Gaining Share in Most Markets Ecolab Market1 Institutional & Specialty Segment Institutional (incl. Healthcare) +3% 0% Specialty +7% 0% Global Water Segment Light & Heavy Water +2% 0% Food & Beverage +4% 0% Paper -4% -6% Life Sciences +6% +6% Pest Elimination +6% +5% Ecolab sales reflect 3Q 2025 org
Slide 15: Our Model: Delivering Best-in-Class Performance
Our Model: Delivering Best-in-Class Performance BREAKTHROUGH ON-SITE TECHNOLOGY EXPERTISE BEST PERFORMANCE LOWEST TOTAL COST (Reduced Water, Energy, Waste Impact) GLOBAL DIGITAL ARTIFICIAL KNOW-HOW INTELLIGENCE 15 15
Slide 16: Our Metric: Total Value Delivered (TVD)
Our Metric: Total Value Delivered (TVD) BUSINESS OPERATIONAL ENVIRONMENTAL FINANCIAL OUTCOMES PERFORMANCE IMPACT IMPACT SAFETY PRODUCTIVITY WATER TOTAL VALUE DELIVERED BRAND CAPACITY ENERGY QUALITY COMPLIANCE WASTE 16 16
Slide 17: Our Best-in-Class Promise: Make Every Location Your Best Location
Our Best-in-Class Promise: Make Every Location Your Best Location Business Outcomes OUR APPROACH TO Best-in-Class BEST-IN-CLASS Operational Performance Environmental Impact Identify Best Performing Location Assess Potential Across the Globe Deliver Globally Deliver globally 17 17
Slide 18: Capturing Our Share of TVD Through Value Pricing
Capturing Our Share of TVD Through Value Pricing Cumulative from 2021 ($B) $9.1 $3.4 Total Value Delivered $1.2 Value $1.1 Price $0.3 $0.3 Delivered Product Cost 2021 2025 Outlook 18 18
Slide 19: Best-in-Class Supported by Breakthrough Innovation
2% Best-in-Class Core Growth Supported by Breakthrough Innovation AI Data Ultra Pure Water KitchenIQ : Pest Total Biopharma Centers for Micro-E RushReady Intelligence Solutions Cutting Edge Cooling, Less Water, Increase Productivity, Pest Free, Safer Drugs, More Computing More Powerful Chips Real-Ti
Slide 20: Driving Core Growth Across Top Global Customers
Driving Core Growth Across Top Global Customers Growth with Top 35 Customers $60B Growth Opportunity to Capture Leading the Way Sales Growth +$3.5B +8 % (6 +8% %) +5% 2023 2024 2025F Opportunity 20 20
Slide 21: Building High-Margin Growth Engines
BUILDING HIGH-MARGIN GROWTH ENGINES 21
Slide 22: Building High-Margin Growth Engines
Building High-Margin Growth Engines Pest Life Global Ecolab Elimination Sciences High-Tech Digital Sales $1.2B $700M $380M $380M Market Size $15B $15B $5B $13B Growth Target +6-8% +10-12% >20% >20% OI Margin Target 22% 30% >20% >>20% Sales reflect 2025 forecast 22 22
Slide 23: Pest Intelligence: 99% Pest-Free Environments
Pest Intelligence: 99% Pest-Free Environments TODAY FUTURE TIME SPENT TIME SPENT CHECKING 95% PEST 5% TO SELL 95% 5% EMPTY TRAPS ELIMINATION AND GROW 23 23
Slide 24: Life Sciences: High-Quality Drugs At Lower Cost
Life Sciences: High-Quality Drugs At Lower Cost $11B EXISTING CUSTOMERS New Biologics $83B $55B Resins Cleaning One Ecolab $15B Pharma Pharma Intelligence Water 5% SOLD $3B UNSOLD CUSTOMERS 24 24
Slide 25: High Tech: More Compute, Less Power, Less Water
High Tech: More Compute, Less Power, Less Water Microchip Manufacturing Data Center Cooling Water Circularity. Water-Less Cooling. Less Water. More Chips. Less Power. More Compute. 25 25
Slide 26: Ecolab Digital: Monetizing Long-Term Customer Value
Ecolab Digital: Monetizing Long-Term Customer Value $10B UNSOLD CUSTOMERS $13B Opportunity Data Center Foodservice Pest Pharma One Intelligence Intelligence Intelligence Intelligence Ecolab $0.4B $3B 500K+ Connected Systems $380M EXISTING CUSTOMERS 2025F SALES 26 26
Slide 27: Ecolab AI: 30 Years and Just Getting Started
Ecolab AI: 30 Years and Just Getting Started BEST-IN-CLASS GROWTH ENGINE Knowledge and Capabilities Global High-Tech Millions of Locations ▪ Cooling Coolingfor fordata Datacenters Centers 40 Industries ▪ Water Watercircularity Circularityfor forfabs Fabs $60B Growth Opportunity NEW REVENUE PERFORMAN
Slide 28: Expanding OI Margin Beyond 20%
EXPANDING OI MARGIN BEYOND 20% 28
Slide 29: 60% of Portfolio Near or Above 20% Operating Income Margin
60% of Portfolio Near or Above 20% Operating Income Margin >20% 18% <20% OI Margin OI Margin Ecolab ▪ Institutional OI Margin ▪ Life Sciences ▪ Specialty ▪ Light and Heavy ▪ Paper ~20% ▪ Food & Beverage ▪ Pest Elimination OI Margin Fixed Currency OI margin. Forecast for 2025 29 29
Slide 30: Expanding OI Margin Beyond 20%
Expanding OI Margin Beyond 20% +100-150 bps Annually 20% 18% 17% 14% 14% 12% 2021 2022 2023 2024 2025F DPC Value Growth One 2027 2027-2030 Pricing Engines Ecolab Target Adjusted OI margin 30 30
Slide 31: Strong Financial Position
STRONG FINANCIAL POSITION 31
Slide 32: Strong Long-Term Financial Targets
Strong Long-Term Financial Targets Sales Growth OI Margin EPS Growth +5-7% >20% +12-15% FCF Priorities Leverage FCF Conversion ✓ Grow Dividend in Line 90-100% with EPS Growth ✓ Acquisitions ~2x Net Debt / of Net Income ✓ Share Repurchase Adjusted EBITDA 32 32
Slide 33: Strengthening EPS Growth Through Strategic M&A
Strengthening EPS Growth Through Strategic M&A Adjusted Diluted EPS $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 Eagle Environmental $2.00 Daydots Services Kleencare International Hygiene $1.00 $0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202
Slide 34: Strong Capital Returns
Strong Capital Returns $10B+ Cumulative Cash Returned 2016-2025F Increased Cash Dividend for $10 33 CONSECUTIVE YEARS $8 $4.4 $4.0 $6 $3.0 Total Returns $3.0 2016-2025F $2.5 $4.4B $4 $2.4 $2.3 $5.7 $1.9 $4.9 SHARES REPURCHASED $2 $4.3 $3.7 $1.3 $3.1 $2.5 $1.9 $0 $0.7 $0.4 $0.9 $1.4 $5.7B 2016 2017 2
Slide 35: The Ecolab Success Story
The Ecolab Success Story Adjusted Diluted EPS $9.00 $8.00 1 Delivering consistent 12-15% EPS growth $7.00 $6.00 2 Driving steady 3-4% organic sales growth $5.00 $4.00 3 Building high-margin growth engines $3.00 $2.00 4 Expanding OI margin beyond 20% $1.00 $0.00 2000 2002 2004 2006 2008 2010 2012 201