Slide 1: Third Quarter 2020 Teleconference Supplemental Data
Third Quarter 2020 Teleconference Supplemental Data Please see Ecolab’s news release dated October 27, 2020 for additional information, including discussion on the use of certain non-GAAP financial measures.
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 financial and business p
Slide 3: 3Q 2020 Overview
3Q 2020 Overview Overview ▪ Third quarter results showed significant improvement from the second quarter, while still reflecting the divergent impacts from COVID-19 on the business segments. Sales: ▪ Reported sales from continuing operations -6%. Acquisition adjusted fixed currency sales -8%. ▪
Slide 4: 3Q 2020 Environment
3Q 2020 Environment Restaurants and lodging: Restaurants, hotels, entertainment facilities, etc. traffic continues to improve from April’s lows but remain below year-ago levels as they reflect the gradual and uneven global pace of the reopenings. ▪ U.S. full service restaurants now ~90% open and o
Slide 5: 3Q 2020 Environment
3Q 2020 Environment Industrial segment: Industrial customers are also seeing gradual recovery in operating activity from April lows and partial or full plant closures. Industry data Industrial Production Manufacturing PMI 10% 60 0% 55 50 -10% 45 -20% 40 35 -30% 30 Jan Feb Mar Apr May Jun Jul Aug S
Slide 6: 4Q 2020 Comment
4Q 2020 Comment We expect continued improvement in the fourth quarter, though likely at a slower rate as the second COVID-19 wave impacts reopenings, with our improvement driven by our product and service innovation, investments in new hygiene and digital technologies, and successful sales initiat
Slide 7: 3Q 2020 Results
3Q 2020 Results Third Quarter Ended September 30 Reported Adjusted * (unaudited) Public Currency Rates % Public Currency Rates % (millions, except per share) 2020 2019 Change 2020 2019 Change Net sales $3,018.6 $3,224.0 -6 % $3,018.6 $3,224.0 -6 % Operating income 411.4 549.0 -25 % 455.9 585.3 -22 %
Slide 8: 3Q 2020 Sales Growth Detail
3Q 2020 Sales Growth Detail Fixed Rate Acq./Div. Adj. Global Industrial % Change % Change Consolidated % Change Water -2% -2% Volume & mix -9% Food & Beverage 5% 0% Pricing 1% Downstream -11% -11% Subtotal -8% Paper -4% -4% Acq./Div. 2% Total Global Industrial -2% -3% Fixed currency growth -6% Curre
Slide 9: Income Statement / Margins (cont. ops.)
3Q 2020 Income Statement / Margins (cont. ops.) ($ millions, unaudited)* 2020 % sales 2019 % sales % change Comments** Gross Profit $1,249.0 41.4% $1,443.1 44.8% -13 % The margin decline primarily reflected the impact o f vo lume declines and unfavo rable business mix, which mo re than o ffset the b
Slide 10: Balance Sheet / Cash Flow
3Q 2020 Balance Sheet / Cash Flow Summary Balance Sheet September 30 September 30 (millions, unaudited) 2020 2019 (millions, unaudited) 2020 2019 Cash and cash eq. $1,034.7 $58.3 Short-term debt $247.3 $779.1 Accounts receivable, net 2,320.7 2,318.1 Accounts payable 1,108.4 1,044.9 Inventories 1,287
Slide 11: Appendix
Appendix Please see Ecolab’s news release dated October 27 2020 for additional information, including discussion on the use of certain non-GAAP financial measures. 11 .
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures Third Quarter Ended Nine Months Ended (unaudited) September 30 September 30 (millions, except percent) 2020 2019 2020 2019 Net sales Reported GAAP net sales $3,018.6 $3,224.0 $8,724.9 $9,317.8 Effect of foreign currency translation 28.6 10.7 127.1 8.0 Non-GAAP fixed curre
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures (unaudited) Third Quarter Ended Nine Months Ended (millions, except percent and per share) September 30 September 30 2020 2019 2020 2019 Interest expense, net Reported GAAP interest expense, net $134.8 $46.1 $241.8 $144.6 Special (gains) and charges, after tax 83.1 - 83.8
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures (unaudited) Third Quarter Ended September 30 (millions) 2020 2019 Impact of Impact of Fixed Acquisitions and Acquisition Fixed Acquisitions and Acquisition Currency Divestitures Adjusted Currency Divestitures Adjusted Net Sales Global Industrial $1,491.1 (36.2) $1,454.9 $
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures (unaudited) Nine Months Ended September 30 (millions) 2020 2019 Impact of Impact of Fixed Acquisitions and Acquisition Fixed Acquisitions and Acquisition Currency Divestitures Adjusted Currency Divestitures Adjusted Net Sales Global Industrial $4,410.3 ($45.0) $4,365.3 $4