Slide 1: Doug Baker, Chairman and Chief Executive Officer
Doug Baker CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Slide 2: Cautionary Statement
2 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 busines
Slide 3: Ecolab Update
3 ECOLAB UPDATE Q2 2020 and COVID-19 Long-term Growth Opportunity
Slide 4: Q2 2020 Update
EC@LAB | Q2 2020 UPDATE
Slide 5: Strong, Consistent Growth
5 STRONG, CONSISTENT GROWTH EPS (adjusted) $7.00 +12% EPS CAGR (1.8x S&P 500) Consistent, double $6.00 digit EPS growth EPS CAGR ECL Cont. $5.00 Ops 12% 12% 11% 11% $4.00 $3.00 $2.00 $1.00 15 yrs 10 yrs 1 yr 1 yr * $0.00 Adjusted Earnings 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 6: Q2 2020 Sales and EPS Growth
6 Q2 2020 SALES AND EPS GROWTH Restated for Continuing Operations 2018 2019 Q1'20 Q2'20 13% 12% 12% 5% 4% 3% -14% -49% Acq Adj Sales EPS Fixed currency rates
Slide 7: COVID-19 Response
7 COVID-19 RESPONSE Take care of customers, team and company Manage with end in mind Capture unique opportunities Keep investing in big bets Goal is to maximize post-COVID position
Slide 8: Roadmap to Recovery
Stores re-open All protected Curve flattens REIGNITE New programs — New business Hygiene 2.0 installs $ 2 a el £ i & 3 8 ¢ RESPOND Understand the situation Protect people, customers, company
Slide 9: Q2 2020 Sales and EPS Growth
9 Q2 2020 SALES AND EPS GROWTH Restated for Continuing Operations 2018 2019 Q1'20 Q2'20 13% 12% 12% 5% 4% 3% -14% -49% Acq Adj Sales EPS Fixed currency rates
Slide 10: COVID-19 Business Impact – Q2
COVID-19 BUSINESS IMPACT – Q2 + +/- Life Sciences +53% Food & Beverage +3% Institutional -50% Healthcare +12% Water -5% Pest -11% Specialty +9% Paper 0% Downstream -9% 10 Acquisition adjusted fixed currency sales growth
Slide 11: Q2 2020: Near-Term Impact Focused on Institutional Division
11 Q2 2020: NEAR-TERM IMPACT FOCUSED ON INSTITUTIONAL DIVISION 31% 1% -13% -39% -50% -168% Institutional Division All Other Divisions Total Acq Adj Sales Operating Income Fixed currency rates
Slide 12: Q2 2020 Overview
12 Q2 2020 OVERVIEW Expect Q2 to be the low point, with sequential improvement in 2H Q2 unique impacts: Simultaneous global shutdown Distributor inventory rebalance One-time industry assistance we provided Challenge is focused on Institutional division
Slide 13: Institutional U.S. Division Sales Growth
13 INSTITUTIONAL U.S. DIVISION SALES GROWTH Sales Growth Rates Acquisition Adjusted 12% 9% 8% 7% 7% 6% 6% 5% 5% 5% 5% 4% 4% 4% 4% 3% 2% 2% 1% -3% -31% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD Recession
Slide 14: Restaurant/Lodging Segments Recovering
14 RESTAURANT/LODGING SEGMENTS RECOVERING Restaurants, hotels, entertainment facilities, etc. traffic has risen from April’s deep decline but remain well below year-ago levels as they reflect the slow and uneven global pace of the reopenings. U.S. full service restaurants now ~85% open but opera
Slide 15: Long Term Restaurant Traffic Favorable
15 LONG TERM RESTAURANT TRAFFIC FAVORABLE Food Away From Home vs. Food At Home Sales Trends $1,000,000 80% $900,000 70% $800,000 60% $700,000 50% $600,000 $500,000 40% $400,000 30% $300,000 20% $200,000 10% $100,000 $0 0% 20-Mar 20-May 20-Jan 20-Jun 20-Jul 20-Feb 1992 1993 1994 1995 1996 1997 1998 1
Slide 16: Post-COVID Environment
16 POST-COVID ENVIRONMENT Institutional division recovery continues: Foodservice: 2021 2H Lodging: 2022+ Heightened hygiene awareness continues Value sensitivity a primary focus by customers Fundamental themes continue Solving customer water and energy challenges Food safety Health
Slide 17: Our Focus
17 OUR FOCUS Accelerate antimicrobial rollout timetable Accelerate digital investments Enable economic transparency highlighting our advantage Drive continued SG&A efficiency Continue to drive Industrial, Healthcare & Life Sciences businesses Drive Institutional hygiene advantage and pen
Slide 18: Ecolab Science Certified Program
18 ECOLAB SCIENCE CERTIFIED PROGRAM BEST-IN-CLASS USED IN THE VERIFIED WITH ECOLAB PRODUCTS + PROGRAMS RIGHT WAY SCIENCE CERTIFIED AUDIT A comprehensive suite Fast onboarding for Correct product and of science-based solutions employees equipment usage including: Training completion Trainin
Slide 19: Robust Long-Term Opportunity
19 ® ROBUST LONG-TERM OPPORTUNITY
Slide 20: Ecolab: Uniquely Positioned to Deliver What Matters Most
20 ECOLAB: UNIQUELY POSITIONED TO DELIVER WHAT MATTERS MOST SAFE FOOD CLEAN WATER HEALTHY ENVIRONMENTS
Slide 21: Leader in Highly Fragmented, Large and Growing Market
21 LEADER IN HIGHLY FRAGMENTED, LARGE AND GROWING MARKET MARKET OPPORTUNITY GROWTH SINCE 1995 $135B 9% 140 120 $106B 100 80 $57B 60 $39B Ecolab 40 $32B $18B 20 0 1995 2000 2005 2010 2015 2020 $16,000 ECOLAB SALES $14,000 Ecolab Competitors 2019: $12,000 $10,000 $13 BILLION $8,000 $6,000 $4,000 $2,00
Slide 22: Major Opportunities in Existing Markets
22 MAJOR OPPORTUNITIES IN EXISTING MARKETS Estimates by category Food Service Food & Beverage Health Care Heavy Industry Paper Light Industry Lodging Pharma Ed./Government Refining Food Retail Mining Other Building Services $0 $5,000 $10,000 $15,000 $20,000 $25,000 $ MILLIONS Ecolab Sales Remaining
Slide 23: Build Share with Largest Players
23 BUILD SHARE WITH LARGEST PLAYERS Leading Scale and Global Footprint Enables Us To Grow With Customers Around The World Focus where the growth is Circle the Globe Market share Leveraging innovation New technologies and services $73B $49B Circle the Customer UNSOLD CIRCLE THE CUSTOMERS CUST
Slide 24: Safe, Sustainable Operations
24 SAFE, SUSTAINABLE OPERATIONS Innovation to help customers meet environmental and social challenges, reflected in our own operations. ✓ ✓ ✓ ✓ RESOURCE ENVIRONMENTAL EMPLOYEE GOVERNANCE OF ENVIRONMENTAL AND EFFICIENCY SAFETY SAFETY SOCIAL PERFORMANCE Zero release goal Board Safety, Health and E
Slide 25: Last Year, Ecolab Helped
25 LAST YEAR, ECOLAB HELPED: Save Conserve 28 TRILLION Prevent Produce 206 more than BILLION BTUs of energy 1 MILLION 45% gallons of water foodborne of the illnesses global processed Clean Reduce milk supply 40 BILLION hands 3.3 BILLION pounds greenhouse gas emissions Generate Clean Make 20% 1 BILLI
Slide 26: Diversified Global Customer Base
26 DIVERSIFIED GLOBAL CUSTOMER BASE Nearly 3 Million Customer Locations Largest customer <2% of sales Top 10 customers <10% of sales
Slide 27: Strong Customer Value Proposition
27 STRONG CUSTOMER VALUE PROPOSITION Best results, lowest use cost Ecolab’s customer value proposition The best results and consistent improvement in customer satisfaction Labor Lower total operating costs Maint./Other Dramatic sustainability story Water & Asset Protection Energy Specific cust
Slide 28: Digital Capabilities Are Driving Increased Differentiation
28 DIGITAL CAPABILITIES ARE DRIVING INCREASED DIFFERENTIATION MOBILE SALES + SERVICE REMOTE MONITORING Customer Prep/Drive Time Time VIRTUAL SERVICE PREDICTIVE ANALYTICS Customer Customer Time Time
Slide 29: Innovation: Digital Food Safety
29 INNOVATION: DIGITAL FOOD SAFETY CONNCECTED DISPENSING, CHEMISTRY, MONITORING AND PREDICTIVE ANALYTICS Drives food safety excellence & compliance, while improving labor efficiency Mobile customer App digitizes food safety tasks and temperature monitoring, improves food safety compliance, saves t
Slide 30: Innovation: Legionella Protection
30 INNOVATION: LEGIONELLA PROTECTION DIGITALLY ENABLED WATER SAFETY PROGRAM: PROTECTING BRAND & CUSTOMERS Enterprise-wide legionella risk mitigation solution Proactive analytics and digital monitoring – real time monitoring and predictive analytics to treat legionella risk Risk mitigation – crit
Slide 31: Case Study: Helping ADM Save 2.3 Billion Gallons of Water
31 CASE STUDY: HELPING ADM SAVE 2.3 BILLION GALLONS OF WATER Archer Daniels Midland (ADM) worked with Ecolab to develop a sustainable process to drive water management improvements across its global operations. INNOVATION 160 3D TRASAR™ Cooling Water Technology units provided: Real-time monitoring
Slide 32: Strong Financial Position
32 ® STRONG FINANCIAL POSITION
Slide 33: Strong Financial Position
33 Strong Financial Position Resilient Free Cash Flow Cash on Hand and Term Debt Maturities Cash $M Term Debt* 1,500 WAC: 3.0% Pre-Nalco 1,250 WAM: 11.7 years Transaction ~90% Fixed 1,000 $1,369 $1,662 750 500 750 750 700 627 627 600 250 500 500 458 500 400 250 - * * * * 2021 2022 2023 2024 2025 202
Slide 34: Ecolab: A Cash and Return Machine
34 Ecolab: A Cash and Return Machine Increased cash $9B Cumulative Cash Returned 2009-2019 dividend for 28 consecutive ($ Billions) Common Dividends Paid Shares Repurchased $9.1 years $9.0 $8.2 $8.0 $7.2 Total Returns $7.0 2009-2019 $6.1 $5.3 $6.0 $5.0 $5.0 $5B SHARES REPURCHASED $5.0 $4.5 $3.8 $3.9
Slide 35: Summary
EC@LAB summARY
Slide 36: Robust Long-Term Opportunity
36 ROBUST LONG-TERM OPPORTUNITY Ecolab’s long-term opportunities remain strong While COVID-19 will present the world with a very challenging 2020, we expect to emerge stronger: Increased global focus on cleaning and sanitizing Our continuing investment in strategic drivers increases our tech
Slide 37: Ecolab Summary
37 ECOLAB SUMMARY Strong Business Model For Consistent, Superior Growth GLOBAL LEADER WITH SMALL SHARE OF $135+B, GROWING MARKET $122+ Billion Remains to be Sold SERVING FUNDAMENTAL, GLOBAL AND INCREASINGLY COMPLEX LONG-TERM NEEDS Water, Food Safety, Energy, HAI Prevention, Sustainability POWE