Slide 1: Ecolab Second Quarter 2023 Supplemental
1 ECOLAB Second Quarter 2023 Supplemental
Slide 2: Cautionary Statement Forward-Looking Information
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: 2Q: Continued Strong Performance
2Q: Continued Strong Performance Continued strong sales growth Double-digit OI growth with expanding OI margin Expect mid-teens growth in adjusted EPS in the second half of 2023 Reported EPS $1.15, +6%. Adjusted EPS $1.24, +13% ▪ Reported sales +8%, organic sales +9% ▪ Volume trends stable, up 1% ex
Slide 4: 2Q Overview
2Q Overview ▪ Sales growth remained strong with reported sales +8% and organic sales +9% o Total pricing +10%, reflected further new pricing and comparisons to last year’s strong pricing acceleration o As expected, volume stable at -1%; shifting positive excluding Europe ▪ Strong organic growth in I
Slide 5: 2023 and 3Q Outlook
2023 and 3Q Outlook 2023 3Q ▪ Ecolab expects to deliver performance that continues to strengthen despite a challenging macro environment where end market demand continues to ease. ▪ The Company expects robust sales and earnings growth driven by continued pricing and new business gains, improved prod
Slide 6: 2Q 2023 Sales Growth Detail
2Q 2023 Sales Growth Detail Amounts in the tables above may reflect rounding. Organic excludes sales to ChampionX post-separation. 6
Slide 7: Global Industrial Segment: Water
▪ Continued strong sales growth driven by robust pricing and new business wins. o Light Water: robust sales growth driven by continued strong performance across data centers, microelectronics, and institutional. o Heavy Water: strong sales growth led by gains in primary metals and chemicals. o Downs
Slide 8: Global Industrial Segment Paper
Global Industrial Segment Paper All sales figures are organic unless otherwise noted 8 Sales +1% Q3: Expect modestly lower sales as pricing and new business wins are more than offset by easing customer production rates and comparisons to last year’s very strong growth. ▪ Modest sales growth as stron
Slide 9: Global Institutional & Specialty Segment
Global Institutional & Specialty Segment Institutional Specialty All sales figures are organic unless otherwise noted 9 Sales +12% Sales +15% Q3: Expect strong sales driven by further pricing and new business wins. ▪ Strong sales growth driven by robust pricing and new business gains, which together
Slide 10: Global Healthcare & Life Sciences Segment
Global Healthcare & Life Sciences Segment Healthcare Life Sciences All sales figures are organic unless otherwise noted 10 Sales +2% Sales -1% Q3: Expect modest sales growth reflecting continued good pricing. ▪ Sales grew modestly as good growth in North America more than offset softness in Europe.
Slide 11: Other Segments Pest Elimination
Other Segments Pest Elimination All sales figures are organic unless otherwise noted 11 Sales +11% ▪ Strong sales growth led by double-digit gains in restaurants, food & beverage, food retail, and hospitality. ▪ Growth benefited from strong pricing and continued robust new business wins, driven by o
Slide 12: Segment Operating Income Performance
Segment Operating Income Performance ▪ Organic operating income increased 18% as strong pricing overcame softer volume, higher delivered product costs, and investments in the business including incentive compensation. ▪ Organic operating income margin expanded 110 bps versus last year. ▪ Organic ope
Slide 13: Consolidated Margin Performance
Consolidated Margin Performance ▪ Gross margin expanded as strong pricing overcame continued increases in delivered product costs and unfavorable mix. ▪ Sales leverage and cost savings were offset by investments in the business including incentive compensation. ▪ Operating margin expanded as strong
Slide 14: 2Q 2023 Balance Sheet / Cash Flow
2Q 2023 Balance Sheet / Cash Flow * EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is defined as the sum of earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the sum of EBITDA and special (gains) and charges impacting EBITDA. The inputs to EBITDA
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures 15
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 18
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures 19
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