8-K
ECOLAB INC. (ECL)
8-K
2022-06-07
For: 2022-06-07
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April 02, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 7, 2022
ECOLAB INC.
(Exact name of registrant as specified in its charter)
| | | | | |
|---|---|---|---|---|
| Delaware | | 1-9328 | | 41-0231510 |
| (State or other jurisdiction<br>of incorporation) | | (Commission<br>File No.) | | (IRS Employer<br>Identification No.) |
| <br><br><br><br><br><br><br><br> | | |
|---|---|---|
| 1 Ecolab Place , Saint Paul , Minnesota | | 55102 |
| (Address of principal executive offices) | | (Zip Code) |
| | | |
|---|---|---|
| Registrant’s telephone number, including area code 1- 800 - 232-6522 |
(Not applicable)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| <br><br><br><br> | | | | |
|---|---|---|---|---|
| Title of each class | | Trading symbol(s) | | Name of each exchange on which registered |
| Common Stock, $1.00 par value | | ECL | | New York Stock Exchange |
| 2.625% Euro Notes due 2025 | | ECL 25 | | New York Stock Exchange |
| 1.000% Euro Notes due 2024 | | ECL 24 | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
As previously announced, Christophe Beck, Chairman, President and Chief Executive Officer of Ecolab Inc. (“Ecolab”), will address financial analysts at the Annual William Blair Growth Stock Conference at 11:00 am Eastern Time on Tuesday, June 7, 2022. A copy of the presentation materials, including materials updating Ecolab’s adjusted diluted earnings per share outlook for the quarter ending June 30, 2022, are furnished and attached as Exhibit (99.1). Ecolab also will publish the presentation materials on its website located at www.ecolab.com/investor.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | Method of Filing | ||
|---|---|---|---|---|
| (99.1) | | Ecolab Inc. Presentation Materials dated June 7, 2022 for William Blair Growth Stock Conference. | | Filed herewith electronically. |
| | | | | |
| (104) | Cover Page Interactive Data File. | Embedded within the Inline XBRL document. |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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|---|---|---|
| | ECOLAB INC. | |
| | | |
| | | |
| Date: June 7, 2022 | By: | /s/ David F. Duvick |
| | | David F. Duvick |
| | | Assistant Secretary |
3
Exhibit 99.1
| Christophe Beck<br>Chairman & Chief Executive Officer<br>1 | |
|---|---|
| CAUTIONARY STATEMENT<br>Forward<br>-<br>Looking Information<br>This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Ac<br>t<br>of 1995. These forward<br>-<br>looking statements<br>include, but are not limited to, statements regarding COVID<br>-<br>19 pandemic trends, global economic recovery, supply chain disruptio<br>ns<br>and<br>delivered product<br>cost inflation<br>, and our financial and business<br>performance and prospects, including sales, earnings, surcharge and structural pricing actions, innovation and new business.<br>The<br>se statements are based on the current expectations of management.<br>There are a number of risks and uncertainties that could cause actual results to differ materially from the forward<br>-<br>looking stat<br>ements. In particular, with respect to the pandemic, numerous factors will<br>determine the extent of the impact on our business, including the severity of the disease, the duration of the outbreak, the<br>acc<br>eptance, distribution and efficacy of vaccines, the likelihood of a resurgence of<br>the outbreak, including as a result of emerging variants, actions that may be taken by governmental authorities intended to m<br>ini<br>mize the spread of the pandemic, including vaccination mandates, or to<br>stimulate the economy, and other unintended consequences.<br>Additional risks and uncertainties are set forth under Item 1A of our most recent Form 10<br>-<br>K, and our other public filings with t<br>he Securities and Exchange Commission (“SEC”), and include the effects and<br>duration of the COVID<br>-<br>19 pandemic, including the impact of vaccination mandates;<br>difficulty in procuring raw materials or fluctuations in raw material costs;<br>the vitality of the markets we serve; the impact of<br>economic factors such as the worldwide economy<br>, capital flows, interest rates, foreign currency risk, and reduced sales and earnings in our international operations result<br>ing<br>from the weakening of local<br>currencies versus the U.S. dollar<br>; information technology infrastructure failures or breaches in data security; our ability to attract, retain and develop hig<br>h c<br>aliber management talent to lead our business and<br>successfully execute organizational change and changing labor market dynamics in the wake of the COVID<br>-<br>19 pandemic<br>; exposure to global economic, political and legal risks<br>related to our international<br>operations, including the impact of sanctions<br>or<br>other actions taken by the U.S. or other countries, and retaliatory measures taken by Russia<br>in<br>response, in connection with the conflict in Ukraine<br>; and other<br>uncertainties or risks reported from time to time in our reports to the SEC. In light of these risks, uncertainties and facto<br>rs,<br>the forward<br>-<br>looking events discussed in this communication may not occur. We<br>caution that undue reliance should not be placed on forward<br>-<br>looking statements, which speak only as of the date made. Ecolab doe<br>s not undertake, and expressly disclaims, any duty to update any<br>forward<br>-<br>looking statement, except as required by law.<br>Non<br>-<br>GAAP Financial Information<br>This presentation includes Company information that does not conform to generally accepted accounting principles (GAAP). Mana<br>gem<br>ent believes that a presentation of<br>this information is meaningful to investors because it provides insight with respect to ongoing operating results of the Comp<br>any<br>and allows investors to better evaluate the financial results of the Company.<br>These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be<br>co<br>nsistent with similar measures provided by other companies.<br>Reconciliations of certain historical non<br>-<br>GAAP financial measures to GAAP financial measures are included in the “Non<br>-<br>GAAP Finan<br>cial Measures” section of this presentation. We do not provide<br>reconciliations for non<br>-<br>GAAP estimates on a forward<br>-<br>looking basis (including those contained in this presentation) when we are u<br>nable to provide a meaningful or accurate calculation or estimation of<br>reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of<br>fo<br>recasting the timing and amount of various items that have not yet occurred, are<br>out of our control and/or cannot be reasonably predicted, and that would impact reported earnings per share, and the most dir<br>ect<br>ly comparable forward<br>-<br>looking GAAP financial measures to adjusted<br>earnings per share. For the same reasons, we are unable to address the probable significance of the unavailable information.<br>Industry<br>and<br>Market<br>Information<br>Industry<br>and<br>market<br>information,<br>including<br>market<br>share<br>data,<br>contained<br>in<br>this<br>communication<br>are<br>based<br>on<br>management’s<br>current<br>estimates<br>of<br>potential<br>opportunities<br>of<br>Ecolab<br>..<br>These<br>estimates<br>have<br>been<br>made<br>in<br>good<br>faith<br>based<br>on<br>management’s<br>knowledge<br>and,<br>in<br>some<br>cases,<br>upon<br>industry<br>surveys<br>and<br>other<br>publicly<br>available<br>information<br>..<br>You<br>are<br>cautioned<br>not<br>to<br>give<br>undue<br>weight<br>to<br>such<br>estimates,<br>and<br>we<br>have<br>not<br>verified<br>the<br>accuracy<br>or<br>completeness<br>of<br>these<br>estimates<br>and<br>information<br>from<br>independent<br>sources<br>..<br>Trademarks<br>and<br>Logos<br>Ecolab<br>and<br>its<br>other<br>trademarks<br>and<br>logos<br>contained<br>in<br>this<br>communication<br>are<br>the<br>property<br>of<br>Ecolab<br>USA<br>Inc<br>..<br>or<br>its<br>affiliates<br>..<br>Trademarks<br>and<br>logos<br>of<br>other<br>companies<br>appearing<br>in<br>this<br>communication<br>are<br>the<br>property<br>of<br>their<br>respective<br>owners<br>..<br>All<br>rights<br>reserved<br>..<br>2 | |
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| 3<br>UNIQUELY POSITIONED TO DELIVER WHAT MATTERS<br>SAFE<br>FOOD<br>NET<br>ZERO<br>WATER<br>HEALTHY<br>ENVIRONMENTS<br>CLEAN<br>CLIMATE | |
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| 4<br>CLIMATE<br>3.6 million<br>metric tons of GHGs<br>AVOID<br>CLEAN<br>60 billion<br>hands<br>HEALTH<br>FOOD<br>1.4 billion<br>people<br>FEED<br>215 billion<br>gallons of water<br>SAVE<br>WATER<br>AS THE GLOBAL LEADER, IN 2021 WE HELPED:<br>GROWING FAST BY GROWING OUR IMPACT | |
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| $0.00<br>$1.00<br>$2.00<br>$3.00<br>$4.00<br>$5.00<br>$6.00<br>2000<br>2001<br>2002<br>2003<br>2004<br>2005<br>2006<br>2007<br>2008<br>2009<br>2010<br>2011<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>5<br>2021+<br>Pre<br>-<br>COVID<br>15<br>-<br>year Double<br>-<br>Digit EPS CAGR<br>2004<br>-<br>2019<br>15 years<br>:<br>+11%<br>10 years<br>:<br>+10%<br>5 years<br>:<br>+12%<br>STRONG LONG<br>-<br>TERM HISTORY OF GROWTH<br>EPS (Adjusted, Continuing Operations)<br>9/11<br>Financial<br>Crisis<br>Euro Crisis<br>Represents Adjusted EPS, excluding the estimated impact of the Upstream business when it was not accounted for as discontinue<br>d o<br>perations, so 2012<br>-<br>2016 may not be comparable to the period 2017<br>-<br>2019, when the Upstream business was accounted for as discontinued operations | |
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| WILL OVERCOME COVID AND INFLATION TOO<br>6<br>$0.00<br>$1.00<br>$2.00<br>$3.00<br>$4.00<br>$5.00<br>$6.00<br>2000<br>2001<br>2002<br>2003<br>2004<br>2005<br>2006<br>2007<br>2008<br>2009<br>2010<br>2011<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>EPS (Adjusted, Continuing Operations)<br>Represents Adjusted EPS, excluding the estimated impact of the Upstream business when it was not accounted for as discontinue<br>d o<br>perations, so 2012<br>-<br>2016 may not be comparable to the period 2017<br>-<br>2019, when the Upstream business was accounted for as discontinued operations<br>COVID<br>-<br>19<br>Inflation<br>Doing what’s right,<br>the right way<br>COVID:<br>•<br>Focused on Institutional<br>•<br>Maintained global team<br>Inflation:<br>•<br>Priced to offset over time<br>•<br>Ensured seamless supply | |
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| 7<br>STRONG RECOVERY UNDERWAY<br>6%<br>4%<br>-<br>7%<br>5%<br>6<br>-<br>8%<br>12%<br>12%<br>-<br>21%<br>17%<br>15%<br>Organic Sales<br>Adj. EPS<br>2018<br>2019<br>2020<br>2021<br>Long<br>-<br>term<br>Ambition<br>18<br>%<br>3%<br>-<br>27%<br>-<br>9% | |
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| 8<br>6%<br>4%<br>-<br>7%<br>5%<br>6<br>-<br>8%<br>12%<br>12%<br>-<br>21%<br>17%<br>15%<br>Organic Sales<br>Adj. EPS<br>2018<br>2019<br>2020<br>2021<br>Long<br>-<br>term<br>Ambition<br>Sales<br>20% of sales<br>INSTITUTIONAL<br>DIVISION<br>80% of sales<br>ALL OTHER<br>BUSINESSES<br>18<br>%<br>3%<br>OI<br>OI<br>Sales<br>-<br>27%<br>-<br>94%<br>STRONG RECOVERY UNDERWAY | |
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| 9<br>OVERCOMING UNPRECEDENTED INFLATION<br>Internal:<br>Strong<br>underlying<br>growth drivers<br>▪<br>New business, structural pricing, energy surcharge, innovation, and<br>productivity driven by digital automation<br>External:<br>Substantial<br>d<br>elivered product cost<br>inflation<br>▪<br>2021<br>-<br>2022: Overcoming >$1 billion of inflation | |
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| 10<br>OVERCOMING UNPRECEDENTED INFLATION…<br>2020<br>2021<br>2022F<br>Structural Pricing / Surcharge<br>Delivered Product Cost Inflation<br>$B<br>>$1B of Inflation<br>+10%<br>+25% | |
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| 11<br>…WITH STRONG PRICING ACTIONS<br>2020<br>2021<br>2022F<br>Structural Pricing / Surcharge<br>Delivered Product Cost Inflation<br>$B<br>>$1B of Inflation<br>Temporary<br>Energy<br>Surcharge<br>Accelerated<br>Structural<br>Pricing | |
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| 12<br>SURCHARGE<br>IMPLEMENTATION TAKES TIME TO FULLY<br>OFFSET INCREMENTAL DELIVERED PRODUCT COST<br>April<br>May<br>June<br>Surcharge<br>Incremental DPC Headwind<br>$M | |
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| 13<br>2022 CURRENT OUTLOOK<br>Continued<br>strong<br>double<br>-<br>digit organic sales growth<br>▪<br>Fueled by pricing, market recovery, new business and innovation<br>Gross margin pressure to peak<br>in 2Q<br>▪<br>Structural pricing and surcharge expected to deliver sequential gross margin improvement in 3Q<br>2Q to be seen as a “transition” quarter<br>as the surcharge gets implemented<br>▪<br>3 full months of incremental energy costs<br>▪<br>Only 1+ month of full surcharge benefit as it builds through the quarter<br>2Q adj. diluted EPS<br>expected to get close to<br>90%<br>of last year’s<br>$1.22<br>▪<br>Year<br>-<br>on<br>-<br>year delivered product cost inflation expected to reach 30%+, up from 25% in 1Q<br>▪<br>Strong structural pricing, with additional surcharge benefit building later in the quarter<br>▪<br>Pricing plus surcharge expected to offset inflation as we exit the quarter<br>Adj. EPS growth expected to accelerate through the second half<br>, assuming:<br>▪<br>Demand and economy remain healthy<br>▪<br>The rate of inflation eases | |
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| 14<br>2005<br>2006<br>2007<br>2008<br>2009<br>2010<br>2011<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022F<br>Pricing<br>Delivered Product Cost Inflation<br>$B<br>> 25%<br>2%<br>2%<br>2%<br>2%<br>3%<br>0.5<br>%<br>2%<br>2%<br>1%<br>1%<br>1%<br>1%<br>1%<br>2%<br>3%<br>2%<br>2%<br>~10%<br>RETURNS FOR<br>CUSTOMERS<br>A LONG HISTORY OF SUSTAINED PRICING | |
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| 15<br>2005<br>2006<br>2007<br>2008<br>2009<br>2010<br>2011<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022F<br>Pricing<br>Delivered Product Cost Inflation<br>$B<br>> 25%<br>2%<br>2%<br>2%<br>2%<br>3%<br>0.5<br>%<br>2%<br>2%<br>1%<br>1%<br>1%<br>1%<br>1%<br>2%<br>3%<br>2%<br>2%<br>~10%<br>RETURNS FOR<br>CUSTOMERS<br>DEMONSTRATING EARNINGS POWER | |
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| Huge and expanding<br>$152B market opportunity<br>▪<br>Investing further in new, high<br>-<br>growth businesses<br>Sustained by strong<br>macro business drivers<br>▪<br>Infection prevention, water and sustainability<br>Powerful<br>customer value proposition<br>▪<br>eROI<br>–<br>best results at the lowest total costs<br>▪<br>Delivered personally at 3 million locations worldwide<br>Strengthening<br>competitive advantages<br>▪<br>Global expertise, breakthrough innovation, sales team effectiveness, digital & cloud<br>WELL<br>-<br>POSITIONED TO DELIVER DOUBLE<br>-<br>DIGIT EPS GROWTH<br>AS INFLATION NORMALIZES<br>POSITIONED FOR STRONG, LONG<br>-<br>TERM GROWTH<br>16 | |
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| CONSISTENT, RELIABLE, DOUBLE<br>-<br>DIGIT EPS GROWTH<br>17<br>$0.00<br>$1.00<br>$2.00<br>$3.00<br>$4.00<br>$5.00<br>$6.00<br>2000<br>2001<br>2002<br>2003<br>2004<br>2005<br>2006<br>2007<br>2008<br>2009<br>2010<br>2011<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022+<br>EPS (Adjusted, Continuing Operations)<br>Represents Adjusted EPS, excluding the estimated impact of the Upstream business when it was not accounted for as discontinue<br>d o<br>perations, so 2012<br>-<br>2016 may not be comparable to the period 2017<br>-<br>2019, when the Upstream business was accounted for as discontinued operations<br>SALES GROWTH<br>6<br>-<br>8%<br>15%<br>EPS GROWTH<br>LONG<br>-<br>TERM<br>OBJECTIVES | |
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| 18<br>18<br>HUGE MARKET OPPORTUNITY<br>ATTRACTIVE MACRO TRENDS<br>® | |
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| 19<br>LEADER IN HIGHLY FRAGMENTED, LARGE AND<br>GROWING MARKET<br>0<br>20<br>40<br>60<br>80<br>100<br>120<br>140<br>160<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>MARKET OPPORTUNITY GROWTH SINCE 1995<br>$152B<br>$57B<br>$39B<br>$32B<br>$18B<br>Ecolab<br>$106B<br>8%<br>$135B<br>ECOLAB SALES<br>2021:<br>$13 BILLION<br>Ecolab<br>Competitors<br>Market data reflects current estimates of<br>potential opportunities<br>$0<br>$2,000<br>$4,000<br>$6,000<br>$8,000<br>$10,000<br>$12,000<br>$14,000<br>$152B | |
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| 20<br>WITH MAJOR OPPORTUNITIES IN EVERY END<br>-<br>MARKET<br>$ MILLIONS<br>Market data reflects current estimates of<br>potential opportunities<br>$0<br>$5,000<br>$10,000<br>$15,000<br>$20,000<br>$25,000<br>$30,000<br>Building Services<br>Other<br>Food Retail<br>Ed./Government<br>High Tech/Manufacturing<br>Lodging<br>Paper<br>Pharma<br>Health Care<br>Heavy Industries<br>Food Service<br>Food & Beverage | |
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| SERVING MAJOR GLOBAL COMPANIES<br>21<br>Largest customer <2% of sales | Top 10 customers <10% of sales |
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| CAPTURING GROWTH TRENDS: PEOPLE HEALTH<br>22<br>PANDEMICS<br>HOSPITAL ACQUIRED<br>INFECTIONS<br>FOOD SAFETY<br>ANIMAL HEALTH<br>PREVENTING INFECTIONS BY HELPING PROVIDE SAFE OUTCOMES IN A SAFE<br>ENVIRONMENT | |
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| CAPTURING GROWTH TRENDS: PLANET HEALTH<br>23<br>WATER SCARCITY:<br>56% SUPPLY / DEMAND GAP<br>CLIMATE CHANGE:<br>5<br>-<br>6ºC BY 2100<br>WATER QUALITY:<br>1/5 UNDRINKABLE<br>WATER + CO<br>2<br>EMISSIONS:<br>25% DRIVEN BY WATER<br>NET<br>ZERO<br>0<br>UNIQUELY POSITIONED TO DELIVER NET ZERO | |
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| CAPTURING GROWTH TRENDS: BUSINESS HEALTH<br>24<br>Carbon negative and<br>water positive by 2030<br>Zero emissions by 2040<br>100% renewable energy by 2035<br>25% reduction in emissions by 2025<br>Net positive water impact by 2050<br>100% of packaging recyclable<br>or reusable by 2025<br>34% reduction in<br>carbon emissions by 2025<br>30% reduction in carbon intensity,<br>15% reduction in water intensity by 2025<br>Carbon neutral by 2050<br>Freshwater only for human consumption<br>Cut carbon, water and waste<br>footprints in half by 2030<br>Net zero emissions by 2039<br>25% recycled plastic by 2025<br>HELPING CUSTOMERS DELIVER ON THEIR SUSTAINABILITY PROMISES | |
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| 25<br>GROWTH STRATEGY:<br>CIRCLE THE CUSTOMER, CIRCLE THE GLOBE<br>2021 SALES<br><br>C<br>orporate accounts<br><br>New offerings<br><br>New end<br>-<br>markets<br>Market data reflects current estimates of<br>potential opportunities<br>2021 SALES<br>UNSOLD<br>CUSTOMERS<br>$83B<br>$56B<br>$13B<br>$152B<br>GROW<br>MARKET SHARE<br>DRIVE<br>PENETRATION<br><br>End to end solutions<br><br>Proof o<br>f outcome<br><br>eROI >25%<br>EXISTING<br>CUSTOMERS | |
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| 26<br>26<br>HOW WE GROW<br>® | |
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| 27<br>COMMON GROWTH PLATFORM, DEDICATED EXPERTISE<br>Business Model and Operating Principles<br>Innovation and Digital Platforms<br>90%+ consumable revenue<br>FOODSERVICE/<br>HOSPITALITY<br>FOOD & BEVERAGE<br>PROCESSING<br>HEALTHCARE/<br>LIFE SCIENCES<br>INDUSTRIAL/<br>COMMERCIAL<br>WATER SERVICES<br>Hygiene, Infection Prevention and Water Treatment | |
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| LEVERAGING ENTERPRISE TECHNOLOGIES<br>Chemistry<br>ECOLAB<br>3D<br>TM<br>: Digital<br>Technology<br>Innovating best<br>-<br>in<br>-<br>class solutions from our advantaged technologies<br>Leveraging deep enterprise capabilities<br>Antimicrobials, Water, Hygiene, Solids<br>Dispensing, Clean<br>-<br>in<br>-<br>place, Sensors<br>Real<br>-<br>time data, predictive, connected<br>28 | |
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| HOW WE DRIVE VALUE<br>–<br>ENSURING THE BEST OUTCOMES<br>29<br>BEST RESULTS AT<br>LOWEST TOTAL COST<br>(Reduced water, energy, waste impact)<br>BREAKTHROUGH<br>TECHNOLOGY<br>ON<br>-<br>SITE<br>EXPERTISE<br>GLOBAL<br>KNOW<br>-<br>HOW<br>PREDICTIVE<br>INSIGHTS | |
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| SMALL COST<br>–<br>MAJOR CUSTOMER BENEFITS<br>30<br>Labor<br>Asset<br>Protection<br>Water &<br>Energy<br>Other<br>Specific customer application cost<br>Ecolab’s customer value proposition<br><br>The best results at every location<br><br>Lower total operating costs<br><br>Minimal environmental impact<br><br>Dramatic sustainability story<br><br>Exceptional customer experience | |
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| 31<br>ANNUAL SAVINGS<br>INSIGHT<br>▪<br>Measurement of global water strategy<br>▪<br>Consistency & standardization<br>▪<br>Continuous improvement & TCO reduction<br>INNOVATION<br>Our comprehensive solutions include:<br>▪<br>Holistic water strategy<br>▪<br>Real<br>-<br>time digital insights delivered<br>enterprise<br>-<br>wide<br>▪<br>Optimized cooling treatment programs<br>for water reuse<br>DELIVERING MEASURABLE IMPACT<br>AND OUTCOMES<br>CASE STUDY: DATA CENTER PROVIDER<br>SOLUTIONS<br>▪<br>Water Flow Intelligence<br>▪<br>3D TRASAR<br>™<br>Technology<br>▪<br>Powered by<br>ECOLAB3D<br>™<br>30 Million<br>Gallons<br>17 Million<br>kWh<br>12,000<br>Metric tons<br>$8 Million<br>>60<br>% | |
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| 32<br>32<br>SUSTAINABILITY<br>LEADER<br>® | |
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| 33<br>15<br>th<br>Consecutive<br>Year<br>2021 Climate and Water<br>A Lists & Supplier<br>Leadership List<br>2022 World and<br>North America Indices<br>6<br>th<br>Consecutive<br>Year<br>#3<br>Driving exponential operational and<br>sustainability results with our customers<br>THROUGH OUR CUSTOMERS<br>Embodying corporate responsibility and<br>sustainability in our own operations<br>IN OUR OWN OPERATIONS<br>THE WORLD’S TRUSTED SUSTAINABILITY COMPANY | |
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| WATER<br>DIVERSITY, EQUITY, AND<br>INCLUSION<br>SAFETY<br>40<br>%<br>reduction in overall water impact<br>50%<br>reduction in CO<br>2<br>e<br>35% and 25%<br>management level gender and ethnic/racial<br>diversity, respectively<br>GOAL ZERO<br>62<br>%<br>Progress<br>toward goal<br>56%<br>Progress<br>toward goal<br>74%<br>Progress<br>toward goal<br>44%<br>39%<br>Reduction<br>Reduction<br>in Total<br>Recordable<br>Injury Rate<br>(TRIR)<br>since<br>2013, globally<br>in Lost Time<br>Injury Rate<br>(LTIR) since<br>2016 in North<br>America<br>As of 2021, we delivered:<br>CLIMATE<br>2030 goals:<br>2021 Target<br>DELIVERED SAFE AND SUSTAINABLE OPERATIONS<br>34 | |
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| 300 BILLION<br>gallons of water saved<br>6 MILLION<br>metric tonnes of CO<br>2<br>e avoided<br>2 BILLION<br>people provided high<br>-<br>quality and safe food<br>90 BILLION<br>hands cleaned<br>As of 2021, we delivered:<br>35<br>WATER<br>FOOD<br>HEALTH<br>CLIMATE<br>2030 goals:<br>DELIVERED MAJOR GLOBAL CUSTOMER IMPACT<br>60%<br>Progress<br>toward goal<br>70%<br>Progress<br>toward goal<br>67%<br>Progress<br>toward goal<br>72%<br>Progress<br>toward goal<br>2021 Target | |
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| 36<br>36<br>STRONG FINANCIAL<br>POSITION<br>® | |
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| CONSISTENT FINANCIAL OBJECTIVES<br>37<br>SALES GROWTH<br>~2x net debt / adjusted EBITDA<br>LEVERAGE<br>1.<br>Grow dividend in line with EPS growth<br>2.<br>Acquisitions<br>3.<br>Share repurchase<br>FREE CASH FLOW CONVERSION<br>FREE CASH FLOW PRIORITIES<br>+15%<br>POSITIONED TO DRIVE SUSTAINABLE, PROFITABLE GROWTH<br>90%<br>-<br>100% of cash<br>from operations<br>EPS GROWTH<br>+6<br>-<br>8% | |
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| $0.3<br>$0.5<br>$0.9<br>$1.3<br>$1.7<br>$2.1<br>$2.6<br>$3.2<br>$3.7<br>$4.3<br>$0.2<br>$0.5<br>$1.0<br>$1.7<br>$2.5<br>$3.1<br>$3.6<br>$4.0<br>$4.1<br>$4.2<br>$0.0<br>$1.0<br>$2.0<br>$3.0<br>$4.0<br>$5.0<br>$6.0<br>$7.0<br>$8.0<br>$9.0<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Common Dividends Paid<br>Shares Repurchased<br>CASH RETURNED TO SHAREHOLDERS<br>38<br>~$9B Cumulative Cash Returned 2012<br>-<br>2021<br>Total Returns<br>2012<br>-<br>2021<br>$4.2B<br>SHARES REPURCHASED<br>$4.3B<br>DIVIDENDS TO<br>SHAREHOLDERS<br>($ Billions)<br>Increased cash<br>dividend for<br>30<br>consecutive<br>years | |
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| ECOLAB SUMMARY<br>39<br>STRONG BUSINESS MODEL FOR CONSISTENT, SUPERIOR GROWTH<br><br>GLOBAL LEADER WITH SMALL SHARE OF $152<br>+<br>B, GROWING MARKET<br>$139+ Billion Remains to be Sold<br><br>SERVING FUNDAMENTAL, GLOBAL AND INCREASINGLY COMPLEX LONG<br>-<br>TERM NEEDS<br>Water, Food Safety, Infection Prevention, Sustainab<br>ility<br><br>POWERFUL, PROVEN STRATEGY TO DRIVE TOP<br>-<br>LINE GROWTH<br>Circle the Customer<br>–<br>Circle the Globe, High Consumable Revenue Mix<br><br>MULTIPLE OPPORTUNITIES FOR NEW GROWTH<br>Geographic and Market Expansion, Emerging Businesses, Bolt<br>-<br>on M&A<br><br>SIGNIFICANT MARGIN IMPROVEMENT WORK UNDERWAY<br>Pricing, Leverage, Digital<br>,<br>Process Efficiency<br><br>SUBSTANTIAL COMPETITIVE ADVANTAGE<br>Scale, Global Reach, Product Technology, Corporate Accounts, Sales/Service Force, Field Technology, Brand<br>Name, Data and Actionable Insights<br><br>STRONG AND CONSISTENT FINANCIALS, FREE CASH FLOW, RETURNS | |
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| SUPPLEMENTAL NON<br>-<br>GAAP RECONCILIATIONS<br>40 | |
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