Slide 1: First Quarter 2024 Supplemental
1 ECOLAB First Quarter 2024 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: Strong start to 2024, increased full-year outlook
Strong start to 2024, increased full-year outlook Good sales growth led by very strong growth in Institutional & Specialty and Pest Elimination ▪ Reported sales +5%, organic sales +5% ▪ Strong customer value driving continued pricing and positive volume growth Strong double-digit OI growth with marg
Slide 4: 1Q overview
1Q overview ▪ Good growth with reported sales +5% and organic sales +5% o Pricing +3%, reflected further value-based pricing on top of last year’s strong pricing o Volume +2%, as new business overcame soft macroeconomic demand ▪ Strong organic growth led by Institutional & Specialty and Pest Elimina
Slide 5: Expect strong 2Q and 2024 performance
Expect strong 2Q and 2024 performance ▪ Ecolab expects full year 2024 adjusted diluted earnings per share in the $6.40 - $6.70 range, rising 23% to 29% compared with adjusted diluted earnings per share of $5.21 in 2023. This forecast assumes soft but stable macroeconomic demand and favorability from
Slide 6: 1Q 2024 sales growth detail
1Q 2024 sales growth detail Fixed Rate Organic % Change % Change % Change Global Industrial Consolidated Water 3% 2% Volume 2% Food & Beverage 3% 3% Pricing 3% Paper -5% -5% Subtotal 5% Total Global Industrial 2% 1% Acq./Div. 1% Fixed currency growth 5% Global Institutional & Specialty Currency impa
Slide 7: Global Industrial Segment: Water
Global Industrial Segment Sales +2% Water ▪ Continued strong growth in Downstream and good gains in light and heavy water sales overcame comparisons to last year’s very strong 14% growth and lower mining sales (which had a 2 percentage point unfavorable impact on Water’s first quarter growth). o Lig
Slide 8: Global Industrial Segment: Paper
Global Industrial Segment Sales -5% Paper ▪ As expected, lower sales reflected new business wins that were more than offset by soft customer production rates. ▪ Modest growth in graphics was offset by lower board & packaging, and tissue & towel sales. ▪ Regionally, sales grew modestly in Latin Ameri
Slide 9: Global Institutional & Specialty Segment
Global Institutional & Specialty Segment Sales +11% Institutional ▪ Double-digit growth, with strong performance across foodservice, lodging, and long-term care. We continue to outperform rather stable end- market trends, benefiting from our innovative products and service expertise that help custom
Slide 10: Global Healthcare & Life Sciences Segment
Global Healthcare & Life Sciences Segment Sales -2% Healthcare ▪ Slightly lower sales reflected comparisons to strong growth last year and strategic low margin business exits. ▪ We continue to take deliberate action to transform our Healthcare business. The announced sale of our global surgical solu
Slide 11: Global Pest Elimination Segment
Global Pest Elimination Segment Sales +9% Pest Elimination ▪ Strong sales growth led by robust gains in food & beverage, restaurants, and food retail. o Growth continues to benefit from our high service levels, innovation, and circle the customer enterprise selling strategy. ▪ Regionally, North Amer
Slide 12: Segment operating income performance
Segment operating income performance ($ millions – fixed currency, unaudited) Global Industrial 1Q 2024 1Q 2023 Change Global Institutional & Specialty 1Q 2024 1Q 2023 Change Operating income $265.0 $219.8 21% Operating income $248.0 $130.1 91% Operating income margin 14.4% 12.2% 220 bps Operating i
Slide 13: Consolidated margin performance
Consolidated margin performance $ millions, unaudited 1Q 2024 1Q 2023 Change Gross Margin Gross profit $1,623.8 $1,366.4 19% ▪ Gross margin expanded significantly, reflecting lower delivered Gross margin 43.3% 38.3% 500 bps product costs and value-based pricing. Adjusted gross profit $1,625.4 $1,369
Slide 14: 1Q 2024 balance sheet / cash flow
1Q 2024 balance sheet / cash flow Summary Balance Sheet March 31 March 31 (millions, unaudited) 2024 2023 (millions, unaudited) 2024 2023 Cash and cash eq. $479.9 $419.4 Short-term debt $11.3 $1,118.1 Accounts receivable, net 2,786.6 2,667.8 Accounts payable 1,607.1 1,469.9 Inventories 1,565.9 1,727
Slide 15: Non-GAAP financial measures
Non-GAAP financial measures First Quarter Ended March 31 (millions, except percent and per share) 2024 2023 Net sales Reported GAAP net sales $3,751.9 $3,571.6 Effect of foreign currency translation 9.8 9.2 Non-GAAP fixed currency sales 3,761.7 3,580.8 Effect of acquisitions and divestitures (44.1)
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures First Quarter Ended March 31 (millions, except percent and per share) 2024 2023 Operating income Reported GAAP operating income $517.9 $351.6 Special (gains) and charges at public currency rates 29.8 27.7 Non-GAAP adjusted operating income 547.7 379.3 Effect of foreign cu
Slide 17: Non-GAAP financial measures
Non-GAAP financial measures First Quarter Ended March 31 (millions, except percent and per share) 2024 2023 Diluted EPS attributable to Ecolab Reported GAAP diluted EPS $1.43 $0.82 Special (gains) and charges, after tax 0.08 0.07 Discrete tax net expense (benefit) (0.17) (0.01) Non-GAAP adjusted dil
Slide 18: Non-GAAP financial measures
Non-GAAP financial measures First Quarter Ended March 31 2024 2023 EBITDA (trailing tw elve months ended) Net income including non-controlling interest $1,571.5 $1,172.3 Provision for income taxes 352.4 241.3 Interest expense, net 294.1 264.8 Depreciation 615.0 622.0 Amortization 309.1 316.3 EBITDA
Slide 19: Non-GAAP financial measures
Non-GAAP financial measures First Quarter Ended March 31 2024 2023 Impact of Acquisitions Impact of Acquisitions (millions) Fixed Currency and Divestitures Organic Fixed Currency and Divestitures Organic Net Sales Global Industrial $1,841.7 ($26.1) $1,815.6 $1,808.2 ($13.3) $1,794.9 Global Instituti
Slide 20: Non-GAAP financial information
Non-GAAP financial information 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 includ
Slide 21: Non-GAAP financial information (cont.)
Non-GAAP financial information (cont.) 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 meas