Slide 1: Ecolab Fourth Quarter 2023 Supplemental
1 ECOLAB Fourth Quarter 2023 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 macroeconomic conditions, de
Slide 3: Very strong 4Q performance and 2024 outlook
Very strong 4Q performance and 2024 outlook 3 Continued robust sales growth Strong double-digit OI growth with significant OI margin expansion Reported EPS $1.41; Adjusted EPS $1.55, +22% Confident 2024 will be another strong year for Ecolab ▪ Reported sales +7%, organic sales +6% ▪ Volume trends im
Slide 4: 4Q overview
4Q overview ▪ Strong growth with reported sales +7% and organic sales +6% o Pricing +5%, reflected further value-based pricing on top of last year’s strong pricing o Volumes improved to +1% as new business overcame soft macroeconomic demand ▪ Strong organic growth led by the Institutional & Specialt
Slide 5: Expect strong 1Q and 2024 performance
Expect strong 1Q and 2024 performance 1Q 2024 ▪ Ecolab expects first quarter 2024 adjusted diluted earnings per share in the $1.27 to $1.37 range, rising 44% to 56% compared with adjusted diluted earnings per share of $0.88 a year ago. ▪ Ecolab expects full year 2024 adjusted diluted earnings per sh
Slide 6: 4Q 2023 sales growth detail
4Q 2023 sales growth detail Amounts in the tables above may reflect rounding. Organic excludes sales to ChampionX post-separation. 6 Fixed Rate Organic % Change % Change Global Industrial Consolidated Water 6% 5% Volume 1% Food & Beverage 4% 4% Pricing 5% Paper -5% -5% Subtotal 6% Total Global Indus
Slide 7: Global Industrial Segment: Water
▪ Good sales growth driven by robust pricing and new business wins, which overcame comparisons to last year’s very strong 13% growth. o Light Water: good sales growth led by continued very strong performance across data centers and microelectronics, and good growth in institutional. o Heavy Water: g
Slide 8: Global Industrial Segment: Paper
8 Sales -5% Paper Global Industrial Segment All sales figures are organic unless otherwise noted Q1: Expect modestly lower sales as pricing and new business wins are more than offset by soft customer production rates. ▪ As expected, moderately lower sales reflected new business wins that were more t
Slide 9: Global Institutional and Specialty Segment
9 Global Institutional and Specialty Segment Sales +12% Institutional Sales +11% Specialty All sales figures are organic unless otherwise noted Q1: Expect robust sales driven by both pricing and new business wins. ▪ Strong sales growth, driven by robust pricing and new business wins. We continue to
Slide 10: Global Healthcare & Life Sciences Segment
10 Global Healthcare & Life Sciences Segment Sales +4% Healthcare Sales -8% Life Sciences All sales figures are organic unless otherwise noted Q1: Expect stable sales reflecting comparisons to strong pricing last year. ▪ Healthcare delivered solid sales growth, reflecting good pricing and improved n
Slide 11: Other Segments: Pest Elimination
11 Other Segments Sales +11% Pest Elimination All sales figures are organic unless otherwise noted ▪ Strong sales growth led by double-digit gains in food & beverage, restaurants, and food retail. o Growth benefited from robust new business wins and continued pricing, driven by our high service leve
Slide 12: Segment operating income performance
Segment operating income performance ▪ Organic operating income increased 18% as continued pricing and lower delivered product costs overcame investments in the business and softer volume. ▪ Organic operating income margin expanded 220 bps versus last year. ▪ Organic operating income increased 41% a
Slide 13: Consolidated margin performance
Consolidated margin performance ▪ Gross margin expanded significantly, reflecting strong pricing and moderately lower delivered product costs. ▪ Sales leverage and cost savings were offset by investments in the business including incentive compensation. ▪ Operating margin expanded as robust pricing
Slide 14: 4Q 2023 balance sheet / cash flow
4Q 2023 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 $3,938.4 $3,671.2 $15,320.2 $14,187.8 Effect of foreign currency translation 17.0 60.0 (44.8) (94.4) Non-GAAP fixed currency sales 3,955.4 3,731.2 15,275.4 14,093.4 Effect of acquisitions and di
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures 16 (millions, except percent and per share) Operating income Reported GAAP operating income $590.0 $399.2 $1,992.3 $1,562.5 Special (gains) and charges at public currency rates 34.5 103.2 133.9 210.4 Non-GAAP adjusted operating income 624.5 502.4 2,126.2 1,772.9 Effect of
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 $1.41 $0.93 $4.79 $3.81 Special (gains) and charges, after tax 0.11 0.35 0.38 0.72 Discrete tax net expense (benefit) 0.03 (0.01) 0.04 (0.04) Non-GAAP adjusted diluted
Slide 18: Non-GAAP financial measures: EBITDA
Non-GAAP financial measures 18 EBITDA (trailing tw elve months ended) Net income including non-controlling interest $1,393.0 $1,108.9 Provision for income taxes 362.5 234.5 Interest expense, net 296.7 243.6 Depreciation 616.7 618.5 Amortization 306.9 320.2 EBITDA $2,975.8 $2,525.7 Special (gains) an
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 $1,871.3 ($4.5) $1,866.8 $1,808.2 $ - $1,808.2 Global Institutional & Specialty 1,290.1 (16.0) 1,274.1 1
Slide 20: Non-GAAP financial information
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 inc
Slide 21: Non-GAAP financial information (cont.)
Non-GAAP financial information (cont.) 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 me