Slide 1: Second Quarter 2024 Supplemental
1 ECOLAB Second Quarter 2024 Supplemental
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 delivered product costs, and
Slide 3: Continued strong performance, increased full-year outlook
Continued strong performance, increased full-year outlook 3 Good sales growth led by strong growth in Institutional & Specialty and Pest Elimination Strong double-digit OI growth with continued robust margin expansion Reported diluted EPS $1.71; Adjusted diluted EPS $1.68, +35% Confident in deliveri
Slide 4: 2Q overview
2Q overview ▪ Good growth with reported sales +3% and organic sales +4% o Pricing +3%, reflected further value pricing on top of last year’s strong pricing o Volume +1%, as new business overcame soft macroeconomic demand ▪ Organic growth led by Institutional & Specialty, performance across all other
Slide 5: Expect strong 3Q and 2024 performance
Expect strong 3Q and 2024 performance 3Q 2024 ▪ Ecolab expects third quarter 2024 adjusted diluted earnings per share in the $1.75 to $1.85 range, rising 14% to 20% compared with adjusted diluted earnings per share of $1.54 a year ago. ▪ This strong growth reflects good pricing, volume growth, and m
Slide 6: 2Q 2024 sales growth detail
2Q 2024 sales growth detail 6 Fixed Rate Organic % Change % Change Global Industrial Consolidated Water 5% 4% Volume 1% Food & Beverage 0% 0% Pricing 3% Paper -1% -1% Subtotal 4% Total Global Industrial 3% 2% Acq./Div. 1% Fixed currency growth 4% Global Institutional & Specialty Currency impact -1%
Slide 7: Global Industrial Segment: Water and Food & Beverage
7 Sales +4% Water Sales 0% Food & Beverage All sales figures are organic unless otherwise noted Global Industrial Segment ▪ Improved Water growth reflected strong growth in downstream and strong gains in light water sales, which together overcame comparisons to last year’s very strong 10% growth. o
Slide 8: Global Industrial Segment: Paper
8 Sales -1% Paper All sales figures are organic unless otherwise noted Global Industrial Segment Q3: Expecting modest sales growth driven by new business wins and stabilizing customer production rates. ▪ As expected, slightly lower sales reflected new business wins that were offset by soft but stabi
Slide 9: Global Institutional & Specialty Segment
9 Sales +7% Institutional Sales +6% Specialty All sales figures are organic unless otherwise noted Global Institutional & Specialty Segment Q3: Expect good sales growth within foodservice, lodging, and long-term care to more than overcome comparisons to last year’s strong 10% growth. ▪ As expected,
Slide 10: Global Healthcare & Life Sciences Segment
10 Sales -3% Healthcare Sales +4% Life Sciences All sales figures are organic unless otherwise noted Global Healthcare & Life Sciences Segment Q3: Expect modestly lower sales reflecting continued low margin business exits. ▪ Modestly lower sales reflected strategic low margin business exits as we co
Slide 11: Global Pest Elimination Segment
11 Sales +9% Pest Elimination All sales figures are organic unless otherwise noted Global Pest Elimination Segment ▪ Strong sales growth led by double-digit gains in food & beverage, restaurants, and food retail. o Our consistent growth continues to be driven by strong new business generation that i
Slide 12: Segment operating income performance
Segment operating income performance ▪ Organic operating income increased 18% as lower delivered product costs and value pricing were partially offset by continued investments in the business. ▪ Organic operating income margin expanded 220 bps versus last year. ▪ Organic operating income increased 5
Slide 13: Consolidated margin performance
Consolidated margin performance ▪ Gross margin expanded significantly, reflecting lower supply chain costs and value pricing. ▪ Sales productivity was offset by growth-oriented investments in the business. ▪ Operating margin expanded as lower supply chain costs, value pricing, and volume growth more
Slide 14: 2Q 2024 balance sheet / cash flow
2Q 2024 balance sheet / cash flow * EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is defined as the sum of net income including non-controlling interest, provision for income taxes, net interest expense, depreciation and amortization, and adjusted EBITDA further adds special (gains) and c
Slide 15: Non-GAAP financial measures
Non-GAAP financial measures 15 (millions, except percent and per share) Net sales Reported GAAP net sales $3,985.8 $3,852.1 $7,737.7 $7,423.7 Effect of foreign currency translation 35.0 3.6 44.8 12.8 Non-GAAP fixed currency sales 4,020.8 3,855.7 7,782.5 7,436.5 Effect of acquisitions and divestiture
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures 16 (millions, except percent and per share) Operating income Reported GAAP operating income $656.9 $484.7 $1,174.8 $836.3 Special (gains) and charges at public currency rates 12.9 29.1 42.7 56.8 Non-GAAP adjusted operating income 669.8 513.8 1,217.5 893.1 Effect of foreig
Slide 17: Non-GAAP financial measures
Non-GAAP financial measures 17 (millions, except percent and per share) Diluted EPS attributable to Ecolab Reported GAAP diluted EPS $1.71 $1.15 $3.14 $1.97 Special (gains) and charges, after tax - 0.08 0.08 0.15 Discrete tax net expense (benefit) (0.03) 0.01 (0.20) - Non-GAAP adjusted diluted EPS $
Slide 18: Non-GAAP financial measures: EBITDA
Non-GAAP financial measures 18 EBITDA (trailing twelve months ended) Net income including non-controlling interest $1,731.8 $1,194.3 Provision for income taxes 361.5 251.3 Interest expense, net 295.1 286.6 Depreciation 622.3 618.6 Amortization 307.4 314.4 EBITDA $3,318.1 $2,665.2 Special (gains) and
Slide 19: Non-GAAP financial measures
Non-GAAP financial measures 19 (millions) Fixed Currency Impact of Acquisitions and Divestitures Organic Fixed Currency Impact of Acquisitions and Divestitures Organic Net Sales Global Industrial $1,956.0 ($21.1) $1,934.9 $1,906.4 ($6.1) $1,900.3 Global Institutional & Specialty 1,372.7 (13.9) 1,358
Slide 20: 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 include: • fixed currency sales •
Slide 21: Non-GAAP Financial Information (Continued)
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 measures for adjusted tax rate, adjusted