Slide 1: Ecolab COVID-19 Update
ECOLAB COVID-19 UPDATE March 25, 2020 1
Slide 2: Cautionary Statement
Cautionary Statement Cautionary Statements Regarding Forward-Looking Information This communication contains certain statements relating to future events and our intentions, beliefs, expectations and predictions for the future which are forward-looking statements as that term is defined in the Priva
Slide 3: 2020 Outlook
2020 Outlook Commented on 2020 EPS in our March 18, 2020 release and 8-K in advance of our recent bond offering, confirming: ▪ Our prior 1Q 2020 guidance ▪ Our inability to currently forecast the impact of COVID-19 on our 2020 results 3
Slide 4: COVID-19
COVID-19 Will likely be biggest impact event since WWII ▪ Human Health ▪ Economic Impact Asymmetrical ▪ Record demand in some sectors ▪ Record demand destruction in others NOT the “end of days” for: ▪ Mankind or ▪ Ecolab 4
Slide 5: Our View
Our View Ecolab is healthy and positioned to help Ecolab needs to do its part…and will! 5
Slide 6: Ecolab: Positioned to Deliver What Matters Most
Ecolab: Positioned to Deliver What Matters Most SAFE FOOD CLEAN WATER HEALTHY ENVIRONMENTS 6
Slide 7: Our Goals
Our Goals Continue to be a company people can count on…do our part ▪ Communities ▪ Customers ▪ Our team ▪ Investors Emerge even stronger ▪ As a team ▪ As a business and company 7
Slide 8: Our Approach
Our Approach Support our Essential Customers in the Safest Way Possible Protect our People ▪ Social Distancing / Facility Hygiene ▪ Admin: Work from home (+90% working from home) ▪ Production: shift, line separation (129 of 130 plants running) ▪ Field: no group setting, new “fix” protocol ▪ Pay
Slide 9: Ecolab Customer Markets
Ecolab Customer Markets Excludes Upstream Energy Ecolab Customer Market % of Ecolab Sales Food and Beverage 20% Demand Healthcare 8% Plus Food Retail 3% = 33% Long Term Care 2% Paper, Power, Electronics 11% Demand Same Quick Service Restaurants Life Sciences 6% 2% = 23% All Other 4% Refineries 5% De
Slide 10: China Progression
China Progression Actual Forecast December January February March April May Sales 13% 8% -17% -9% -6% -1% January and February adjusted for timing of Chinese New Year Significantly depressed customer activity in January/February ▪ Both Institutional and Industrial customers were operating at signi
Slide 11: Sanitizer Demand in Impacted Areas
Sanitizer Demand in Impacted Areas Hand Sanitizer 15x Hand Care 5x Hard Surface Sanitizers 3x 11
Slide 12: Commercial Actions
Commercial Actions Work to fully meet increased demand ▪ Production max plans in place for sanitizers ▪ Bioquell ramp up ▪ Prioritize meeting existing customer needs first “Help” plan for strategic targets ▪ Utilize field and balance sheet to help ▪ Strategic targets only Accelerate digital tr
Slide 13: Strong Financial Position
Strong Financial Position Resilient Free Cash Flow Cash on Hand Debt and($M) Maturity Term Debt Maturities $M 2020-2021 Maturities Maturity Rate Principal 1,500 Term Debt 5-Year Note (2015) 12-Jan-20 2.25% 300 WAC: 3.41% 1,250 WAC: 3.41% 10-Year Note (2011) WAM: 9.1 years v 8-Dec-21 4.35% 1,020 Cash
Slide 14: Summary
Summary Ecolab incredibly well positioned to help ▪ Financially ▪ Strategically Our team is focused on customers This will pass … a new normal will emerge Cleaner, Safer, Healthier Positioning Even More Right Hygiene, Antimicrobial & ESG Know-How Will Matter Even More 14
Slide 15: Let's Be Proud
WE ARE LIVING HISTORY LET’S BE PROUD OF THE WAY WE DO IT 15