Slide 1: Ecolab Third Quarter 2024 Supplemental
1 ECOLAB Third 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 and
Slide 3: Continued strong performance, increased full-year outlook
Continued strong performance, increased full-year outlook Solid organic sales growth with improved volume growth and continued strong value pricing ▪ Reported sales +1%, including a 2% unfavorable impact from the sale of global surgical solutions and a 1% headwind from unfavorable foreign currency e
Slide 4: 3Q overview
3Q overview ▪ Solid growth with reported sales +1% and organic sales +4% o Volume +2%, improved growth driven by good new business and breakthrough innovation o Pricing +2%, supported by ongoing customer value delivery ▪ Organic growth led by Institutional & Specialty and Pest Elimination Sales o In
Slide 5: Expect strong finish to 2024
Expect strong finish to 2024 ▪ Ecolab expects full year 2024 adjusted diluted earnings per share to improve further to the $6.60 to $6.70 range, rising 27% to 29% compared with adjusted diluted earnings per share of $5.21 in 2023. As previously disclosed, this range includes an unfavorable $0.08 per
Slide 6: 3Q 2024 sales growth detail
3Q 2024 sales growth detail Fixed Rate Organic % Change % Change % Change Global Industrial Consolidated Water 4% 3% Volume 2% Food & Beverage 1% 1% Pricing 2% Paper 2% 2% Organic 4% Total Global Industrial 3% 2% Acq./Div. -2% Fixed currency growth 2% Global Institutional & Specialty Currency impact
Slide 7: Global Industrial Segment: Water
Global Industrial Segment Sales +3% Water ▪ Continued growth in water reflected good gains in downstream and in light water sales, and improved growth in heavy water sales. o Light water: Good growth continues to be driven by attractive gains in high-tech where Ecolab provides innovative water and c
Slide 8: Global Industrial Segment: Paper
Global Industrial Segment Sales +2% Paper ▪ Improved sales growth reflected good new business wins and stable end-market trends. ▪ Growth was led by improved gains in tissue & towel and board & packaging. ▪ Regionally, Latin America & IMEA sales grew by double digits; Europe showed good growth while
Slide 9: Global Institutional & Specialty Segment
Global Institutional & Specialty Segment Sales +6% Institutional ▪ As expected, Institutional delivered continued robust sales growth, led by strong performance in restaurants. These strong gains continue to outperform end-market trends, building on last year’s double-digit growth. Our growth contin
Slide 10: Global Healthcare & Life Sciences Segment
Global Healthcare & Life Sciences Segment Sales 0% Healthcare ▪ Lower reported sales reflected the sale of Ecolab’s global surgical solutions business, which closed on August 1st. Organic sales were stable as strategic low margin business exits were offset by improved pricing. ▪ We continue to take
Slide 11: Global Pest Elimination Segment
Global Pest Elimination Segment Sales +8% Pest Elimination ▪ Continued strong sales growth led by double-digit gains in food & beverage and robust growth in restaurants and food retail. o Our consistent growth continues to be driven by strong new business generation that is leveraging our circle the
Slide 12: Segment operating income performance
Segment operating income performance ($ millions – fixed currency, unaudited) Global Industrial 3Q 2024 3Q 2023 Change Global Institutional & Specialty 3Q 2024 3Q 2023 Change Operating income $349.1 $299.1 17% Operating income $325.6 $254.9 28% Operating income margin 17.5% 15.4% 210 bps Operating i
Slide 13: Consolidated margin performance
Consolidated margin performance $ millions, unaudited 3Q 2024 3Q 2023 Change Gross Margin Gross profit $1,737.0 $1,627.6 7% ▪ Gross margin expanded significantly, reflecting strong value Gross margin 43.4% 41.1% 230 bps pricing and modestly lower delivered product costs. Adjusted gross profit $1,737
Slide 14: 3Q 2024 balance sheet / cash flow
3Q 2024 balance sheet / cash flow Summary Balance Sheet September 30 September 30 (millions, unaudited) 2024 2023 (millions, unaudited) 2024 2023 Cash and cash eq. $1,261.1 $1,001.3 Short-term debt $643.0 $1,129.1 Accounts receivable, net 2,883.0 2,823.5 Accounts payable 1,812.3 1,498.8 Inventories
Slide 15: Non-GAAP financial measures
Non-GAAP financial measures Third Quarter Ended Nine Months Ended September 30 September 30 (millions, except percent and per share) 2024 2023 2024 2023 Net sales Reported GAAP net sales $3,998.5 $3,958.1 $11,736.2 $11,381.8 Effect of foreign currency translation 40.9 (1.1) 85.7 11.7 Non-GAAP fixed
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures Third Quarter Ended Nine Months Ended September 30 September 30 (millions, except percent and per share) 2024 2023 2024 2023 Operating income Reported GAAP operating income $1,044.8 $566.0 $2,219.6 $1,402.3 Special (gains) and charges at public currency rates (331.7) 42.6
Slide 17: Non-GAAP financial measures
Non-GAAP financial measures Third Quarter Ended Nine Months Ended September 30 September 30 (millions, except percent and per share) 2024 2023 2024 2023 Diluted EPS attributable to Ecolab Reported GAAP diluted EPS $2.58 $1.41 $5.72 $3.38 Special (gains) and charges, after tax (0.81) 0.12 (0.72) 0.27
Slide 18: Non-GAAP financial measures
Non-GAAP financial measures Third Quarter Ended September 30 2024 2023 EBITDA (trailing tw elve months ended) Net income including non-controlling interest $2,063.2 $1,251.7 Provision for income taxes 511.2 287.9 Interest expense, net 291.2 295.8 Depreciation 627.1 618.4 Amortization 303.3 311.2 EBI
Slide 19: Non-GAAP financial measures
Non-GAAP financial measures Third Quarter Ended September 30 2024 2023 Impact of Acquisitions Impact of Acquisitions (millions) Fixed Currency and Divestitures Organic Fixed Currency and Divestitures Organic Net Sales Global Industrial $1,993.0 ($17.1) $1,975.9 $1,940.8 ($4.3) $1,936.5 Global Instit
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 measu