Slide 1: Third Quarter 2022 Supplemental
Third Quarter 2022 Supplemental 1
Slide 2: Forward-Looking Information
Forward - Looking Information This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Ac t o f 1995. These forward - looking statements include, but are not limited to, statements regarding global economic conditions, inflation, curr
Slide 3: Performance Continues to Improve
Performance Continues to Improve Double - digit organic sales growth, +13% Enhanced cost productivity, driving organic operating income growth, +3% Shifting from pricing to offense to capture large operating margin upside Mitigating Europe risk to support sequential improvement in Q4 and beyond Acce
Slide 4: Q3 Overview
3 Q Overview ▪ Sales growth remained very strong with reported sales +10% and acquisition adjusted fixed currency sales +13%* o Total pricing +12%, up from +9% in Q2 o As expected, volume & mix +1% ▪ Double - digit growth in Institutional & Specialty, Industrial, and Other segments o Industrial +16%
Slide 5: Outlook
4 Q Outlook 4Q Long Term ▪ We have been preparing for what is now widely considered to be a more challenging macroeconomic environment, especially in Europe, with high delivered product costs and unfavorable currency translation impacts that are expected to persist well into 2023. As the war and ene
Slide 6: Q3 2022 Sales Growth Detail
3 Q 2022 Sales Growth Detail Amounts in the tables above may reflect rounding. Acq ../Div. Adj. excludes sales to ChampionX post - separation. 6 Fixed Rate Acq. Adj. % Change % Change Global Industrial Consolidated Water 15% 14% Volume & mix 1% Food & Beverage 14% 14% Pricing 12% Downstream 22% 22%
Slide 7: Global Industrial Segment – Water and Food & Beverage
Global Industrial Segment – Water and Food & Beverage Q4 : Expect further strong sa l es growth driven by increased total pricing and new business wins Q4 : An ticipate continued strong sales growth led by robust pricing Food & Beverage ▪ Strong sales growth driven by accelerating total pricing, par
Slide 8: Global Industrial Segment – Downstream and Paper
Global Industrial Segment – Downstream and Paper Q4 : Expect continued double - digit growth reflecting accelerating pricing and new business wins, though the rate of growth is expecte d to moderate given comparisons to strong additive sales in the prior year Q4 : Expect continued robust sales growt
Slide 9: Global Institutional & Specialty Segment
Global Institutional & Specialty Segment Q4 : Expect strong sales driven by further pricing and new business wins more than offset customer labor availability, which continue s to impact our customers’ operating capacity Institutional Specialty All sales figures are acquisition adjusted fixed curren
Slide 10: Global Healthcare & Life Sciences Segment
Global Healthcare & Life Sciences Segment Healthcare Life Sciences All sales figures are acquisition adjusted fixed currency unless otherwise noted Q4 : Expect a modest sequential improvement in sales trends reflecting accelerating pricing ▪ Sales declined as accelerating pricing was offset by conti
Slide 11: Other Segment – Pest Elimination
Other Segment Pest Elimination All sales figures are acquisition adjusted fixed currency unless otherwise noted ▪ Led by accelerating pricing and continued robust new business wins driven by our high service levels and innovation o Growth was strong across food retail, food and beverage, hospitality
Slide 12: Consolidated Margin Performance
Consolidated Margin Performance ▪ Reflecting accelerating total pricing that was more than offset by a 30% increase in delivered product costs inflation and unfavorable mix ▪ Year - over - year declines in adjusted gross margin narrowed sequentially ▪ Improvement driven by sales leverage and cost sa
Slide 13: Segment Margin Performance
Segment Margin Performance ▪ Acquisition adjusted fixed currency operating income increased 7% as accelerating total pricing overcame significantly higher delivered product costs and unfavorable mix ▪ Acquisition adjusted fixed currency operating income increased 4% as accelerating total pricing ove
Slide 14: 3Q 2022 Balance Sheet / Cash Flow
3Q 2022 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 EBIT
Slide 15: Non-GAAP Measures
Non - GAAP Financial Measures 15 (unaudited) (millions, except percent) Net sales Reported GAAP net sales $3,669.3 $3,320.8 $10,516.6 $9,368.5 Effect of foreign currency translation 96.0 (64.1) 120.3 (210.9) Non-GAAP fixed currency sales 3,765.3 3,256.7 10,636.9 9,157.6 Effect of acquisitions and di
Slide 16: Non-GAAP Measures
Non - GAAP Financial Measures 16 (unaudited) (millions, except percent) Other (income) expense Reported GAAP other (income) expense $5.7 ($13.0) ($32.6) ($27.5) Special (gains) and charges 24.8 7.0 24.8 26.6 Non-GAAP adjusted other (income) expense ($19.1) ($20.0) ($57.4) ($54.1) Interest expense, n
Slide 17: Non-GAAP Measures
Non - GAAP Financial Measures 17 (unaudited) (millions, except percent and per share) Net Income attributable to Ecolab Reported GAAP net income attributable to Ecolab $347.1 $324.5 $827.3 $828.9 Special (gains) and charges, after tax 39.6 80.8 105.8 139.1 Discrete tax net expense (benefit) (14.2) (
Slide 18: Non-GAAP Measures
Non - GAAP Financial Measures 18 (unaudited) (millions) Fixed Currency Impact of Acquisitions and Divestitures Acquisition Adjusted Fixed Currency Impact of Acquisitions and Divestitures Acquisition Adjusted Net Sales Global Industrial $1,816.7 ($7.9) $1,808.8 $1,565.0 - $1,565.0 Global Institutiona
Slide 19: Non-GAAP Information
Non - GAAP Financial Information: This communication and certain of the accompanying tables include financial measures that have not been calculated in accorda nce with accounting principles generally accepted in the U.S. (“GAAP”). These non - GAAP financial measures include: • fixed currency sales
Slide 20: Non-GAAP Information (Continued)
Non - GAAP Financial Information (Continued): Our reportable segments do not include the impact of intangible asset amortization from the Nalco and Purolite mergers or the impact of special (gains) and charges as these are not allocated to the Company’s reportable segments. Acquisition adjusted grow