Ecolab Inc. · NYSE:ECL
Ecolab — Q4 2016 Earnings Presentation
12 slides from Ecolab's earnings presentation, Feb 21, 2017
Slide 1: Fourth Quarter 2016 Teleconference Supplemental Data
Exhibit 99.2 Fourth Quarter 2016 Teleconference Supplemental Data
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 our future financial and bus
Slide 3: 4Q 2016 Overview
4Q 2016 Overview ◢ Earnings: §Reported diluted EPS $1.24, +80% versus last year; adjusted diluted EPS $1.25, +2% versus last year §Reported and adjusted diluted EPS include $0.02 (2 percentage points) impact from currency translation and Venezuela deconsolidation ◢ Sales: §Reported sales -2%; fixed
Slide 4: 4Q 2016 Results
4Q 2016 Results Fourth Quarter Ended December 31 Reported Adjusted * Public Currency Public Currency (unaudited) Rates % Rates % (millions, except per share) 2016 2015 Change 2016 2015 Change Net sales $3,352.1 $3,412.0 (2)% $3,352.1 $3,412.0 (2)% Operating income 556.9 322.8 73 % 564.8 566.7 0% Net
Slide 5: 4Q 2016 Sales Growth Detail
4Q 2016 Sales Growth Detail Fixed Rate Acq./Div. Adj. Global Industrial % Change % Change Consolidated % Change Food & Beverage 2% 2% Volume & mix -1% Water 1% 1% Pricing 0% Paper 5% 5% Subtotal -1% Textile Care 4% 4% Acq./Div. 0% Total Global Industrial 2% 2% Fixed currency growth -1% Currency impa
Slide 6: 4Q 2016 Income Statement / Margins
4Q 2016 Income Statement / Margins ($ millions, unaudited) 2016 % sales 2015 % sales % changeComments* Gross Profit $1,607.0 47.9% $1,580.3 46.3% 2 % Excluding special charges, our adjusted gross margin was 48.1% vs. 47.6%, increasing 50 bps, resulting from cost savings and the impact of the decline
Slide 7: 4Q 2016 Balance Sheet / Cash Flow
4Q 2016 Balance Sheet / Cash Flow Summary Balance Sheet December 31 December 31 (millions, unaudited) 2016 2015 (millions, unaudited) 2016 2015 Cash and cash eq. $ 327.4 $ 92.8 Short-term debt $ 541.3 $ 2,205.3 Accounts receivable, net 2,341.2 2,390.2 Accounts payable 983.2 1,049.6 Inventories 1,319
Slide 8: 2017 Outlook
2017 Outlook ◢ Outlook (adjusted EPS) § 2017 $4.70 to $4.90, +8% to 12% § 1Q $0.77 to $0.83, +0% to 8% ◢ Assumptions § Continued sluggish global economic backdrop §Moderating dollar: -2% FX translation impact included in EPS forecast §Stabilizing energy markets with oil trading in a $50 to $60 range
Slide 9: 2017 Outlook: Focus
2017 Outlook Focus ◢ Drive strong execution § Maintain aggressive new business efforts § Continue strong innovation emphasis § Offset raw material inflation through pricing ◢ Fully capitalize on energy market improvement ◢ Continue to drive supply chain efficiency programs to help drive ongoing marg
Slide 10: Appendix
Appendix Please see Ecolab’s news release dated February 21, 2017 for additional information, including additional discussion on use of Non-GAAP financial 10 measures.
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures Fourth Quarter Ended Twelve Months Ended (unaudited) December 31 December 31 (millions, except percent) 2016 2015 2016 2015 Net Sales Reported GAAP net sales $ 3,352.1 $ 3,412.0 $13,152.8 $13,545.1 Effect of foreign currency translation (44.7) (69.9) (197.8) (630.8) Non-G
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures Fourth Quarter Ended Twelve Months Ended (unaudited) December 31 December 31 (millions, except percent and per share) 2016 2015 2016 2015 Net Income Attributable to Ecolab Reported GAAP net income attributable to Ecolab $ 366.3 $ 208.9 $ 1,229.6 $ 1,002.1 Special (gains)