Corporate Overview For additional information contact: Michael J. Monahan Senior Vice President External Relations Telephone: 651-250-2809 [email protected]Andy Hedberg Director Investor Relations Telephone: 651-250-2185 [email protected]Ecolab Inc. 1 Ecolab Place St. Paul, MN 55102 www.ecolab.com
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Corporate Overview€¦ · Corporate Overview For additional information contact: Michael J. Monahan Senior Vice President External Relations Telephone: 651-250-2809 [email protected]
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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
future financial and business performance and prospects, including sales, operating income and return on invested capital growth,
margins, impact of oil prices, macro trends and long-term potential of our business, new business, innovation, targeted credit rating
metrics, dividends, and share repurchase and acquisition activity. These statements are based on the current expectations of
management of the Company. There are a number of risks and uncertainties that could cause actual results to differ materially from
the forward-looking statements. These risks and uncertainties are set forth in our most recent Form 10-K, Form 10-Q and other public
filings with the Securities and Exchange Commission (the “SEC”) and include the vitality of the markets we serve, including the
markets served by our Global Energy segment; the impact of worldwide economic factors such as the worldwide economy, credit
markets, interest rates and foreign currency risk; exposure to economic, political and legal risks related to our international operations;
the costs and effects of complying with laws and regulations relating to our operations; the occurrence of litigation or claims; and other
uncertainties or risks reported from time to time in our reports to the SEC. In light of these risks, uncertainties and factors, the forward-
looking events discussed in this communication may not occur. We caution that undue reliance should not be placed on forward-
looking statements, which speak only as of the date made. Ecolab does not undertake, and expressly disclaims, any duty to update
any forward-looking statement except as required by law.
Non-GAAP Financial Information: This communication includes Company information that does not conform to generally accepted
accounting principles (GAAP). Management believes that a presentation of this information is meaningful to investors because it
provides insight with respect to ongoing operating results of the Company and allows investors to better evaluate the financial results
of the Company. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these
measures may not be consistent with similar measures provided by other companies. Reconciliations of non-GAAP measures to
GAAP results are available in our most recent Form 10-K, Form 10-Q and other of our SEC filings.
Industry and Market Information: Industry and market information, including market data, contained in this communication are
based on management’s current estimates of potential opportunities of Ecolab. These estimates have been made in good faith based
on management’s knowledge and, in some cases, upon industry surveys and other publicly available information. You are cautioned
not to give undue weight to such estimates, and we have not verified the accuracy or completeness of these estimates and
information through independent sources.
Presentation Format: Unless otherwise noted, the data shown is for consolidated Ecolab and does not reflect the planned spin off of
the ChampionX business.
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ECOLAB: UNIQUELY POSITIONED
TO DELIVER WHAT MATTERS MOST
SAFE
FOOD
CLEAN
WATER
HEALTHY
ENVIRONMENTS
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COVID-19 UPDATE®
Our View
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Ecolab is healthy and positioned to help
Ecolab is doing its part
COVID represents an unprecedented event:
▪2020: manage through the crisis and protect key drivers
▪2021: return to fundamental performance
Our Goals in 2020
Continue to be a company people can count on…do our part:
▪Communities
▪Customers
▪Our team
▪ Investors
Emerge even stronger:
▪As a team
▪As a business and company
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COVID-19: Meeting Demand
Increased supply
▪ Partnered with public health authorities to develop guidelines on virucidal products and programs to fight COVID-19
▪ Accelerated new disinfectant and sanitizer product development
▪ Fast-tracking registration globally of new disinfection solutions across industries and geographies
▪ Maximizing sanitizer production:
- 5X production – and driving for more, adding copackers
- Temporarily converting related production lines to make sanitizers
- Shipping drum-size sanitizers to very large and critical users (healthcare)
- Leveraging alternate alcohol sources (distillers, brewers) to expand sanitizer production
▪ Ramped up Bioquell decontamination unit production
Accelerated digital transformation
▪ Drive incremental value: digital programs, digital field platforms
▪ Leveraging 3DT, Refined Knowledge, assurance center and other digital systems to enhance remote monitoring and assure reliable operation of critical assets
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COVID-19: Supporting our Customers
Strong support for emergency healthcare facilities
▪ Supporting rapid implementation of safe/sanitized temporary hospital facilities and medical worker housing, along with training to maintain sanitized environments in high risk areas
▪ Providing hospitals with digital devices to identify and track hospital room personnel traffic and their hygiene compliance
Rapid response to emerging needs
▪ Laundry viricidal programs set up in 3 days
▪ Expediting cleaners/sanitizers to critical locations
COVID-19 stress reduction for Foodservice and Hospitality
▪ Utilizing field and strong financial position to help
▪ Temporarily reducing fixed payments while extending agreements
Planning for recovery
▪ Developing re-open packages for foodservice and hospitality
▪ Field teams planning new business generation, increased solutions per account
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Support our Essential Customers in the Safest Way Possible
Protect our People
▪ Social Distancing / Facility Hygiene
▪ Admin: Work from home (90%+ working from home)
▪ Production: shift, line separation
▪ Field: no group settings, modified customer service protocol
▪ Pay Protect Plan
Protect our Customers
▪ Protection maintained
▪ Field and tech support provided globally
Protect our Company
▪ P&L / Cash: capital, hiring, and spending controls
▪ Positive Free Cash Flow even in all modeled scenarios
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Ecolab Customer Markets
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= 33%
= 23%
= 13%
= 31%
Excludes Upstream Energy
Ecolab Customer Market % of Ecolab Sales
Food and Beverage 20%
Healthcare 8%
Food Retail 3%
Long Term Care 2%
Paper, Power, Electronics 11%
Quick Service Restaurants 6%
Life Sciences 2%
All Other 4%
Refineries 5%
Chemicals 4%
Education 4%
Full Service Restaurants 14%
Lodging 8%
Mining, Primary Metals, Transportation 5%
Textile Care 2%
Cruise, Gaming, and Recreation 2%
Demand
Plus
Demand
Same
Demand
Down
Demand
Depressed
COVID Summary
Ecolab well positioned to help
▪ Financially
▪ Strategically
Our team is focused on customers
This will pass … a new normal will emerge
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Cleaner, Safer, Healthier Positioning Even More Right
Hygiene, Antimicrobial & ESG Know-How Will Matter Even More
1111
ROBUST LONG-TERM OPPORTUNITY
®
Robust Long-Term Opportunity
Ecolab’s long-term opportunities remain strong
While COVID 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
technology and people advantages
▪ Our strong financial position benefits us versus weaker competitors
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Leader in Highly Fragmented, Large and
Growing Market
ECOLAB SALES
2019:
$13 BILLIONExcludes ChampionX
Ecolab Competitors
Market data reflects current estimates of
potential opportunities and excludes ChampionX
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0
20
40
60
80
100
120
140
1995 2000 2005 2010 2015 2020
MARKET OPPORTUNITY GROWTH SINCE 1995
$130B
$57B$39B
$32B$18B
Ecolab
$106B
10%
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Estimates by category
Major Opportunities in Existing Markets14
$ MILLIONS Ecolab Remaining Opportunity
$0 $5,000 $10,000 $15,000 $20,000 $25,000
Building Services
Other
Mining
Refining
Food Retail
Ed./Government
Life Sciences
Lodging
Light Industry
Paper
Heavy Industry
Food & Beverage
Health Care
Food Service
Market data reflects current estimates of
potential opportunities and excludes ChampionX
DIVERSIFIED GLOBAL CUSTOMER BASENearly 3 Million Customer Locations