ECOLAB UPDATE...Strengthened Nalco Water Light Industry Focus on Downstream Mining to Phosphates,...

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ECOLAB UPDATE DOUG BAKER CHAIRMAN AND CEO September 5, 2019

Transcript of ECOLAB UPDATE...Strengthened Nalco Water Light Industry Focus on Downstream Mining to Phosphates,...

ECOLAB UPDATE

DOUG BAKERCHAIRMAN AND CEOSeptember 5, 2019

WELCOME

We continue to get better

The world continues to get more complicated

Our strategy is as relevant as ever

We adjust via our plan

Our opportunities are large

Themes

It’s been a busy 2 years

We Invested

15 acquisitions

Deployed SAP in North AmericaEcolab is now 80% on SAP

$380M in digital investment

Built a Life Sciences business

We Grew Share

$2.2B

$2.6B

New Business Innovation

We Delivered

Quarterly Adjusted EPS Growth

8%

10%

14%13%

11%12%

13%12%

Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

We Also Sharpened Our Focus

Sold Equipment Care (Dec ‘17)

Announced $325M efficiency initiative

Announced Spin of Upstream (Feb ‘19)

Spin of Upstream Energy

Ecolab$14.7B

Ecolab$12.2B

Ecolab$14.7B

Ecolab$12.2B

ChampionX$2.4B

Post Spin based on pro forma 2018

Temporarily Smaller, Permanently Stronger

More Focused

Less Cyclical

Higher Returns

HigherMargins Still Huge

Growth Upside

Excludes Upstream Energy. Market data reflects current estimates of potential opportunities.

Ecolab Opportunity $130B

10%

$72BUNSOLD

CUSTOMERS

$46BCIRCLE THE CUSTOMER

$106B$39B

$32B$18B

$57B19952000

20052010

2015

2020

We Remain Opportunity Rich

Sold

$0 $5,000 $10,000 $15,000 $20,000

Building Services

Other

Mining

Refining

Food Retail

Ed./Government

Life Sciences

Lodging

Light Industry

Paper

Heavy Industry

Food & Beverage

Health Care

Food Service

Major Opportunities in Existing Markets

$ MILLIONS Ecolab Remaining Opportunity

Excludes Upstream Energy. Market data reflects current estimates of potential opportunities.

$0 $5,000 $10,000 $15,000 $20,000

Building Services

Other

Mining

Refining

Food Retail

Ed./Government

Life Sciences

Lodging

Light Industry

Paper

Heavy Industry

Food & Beverage

Health Care

Food Service

$ MILLIONS Ecolab Remaining Opportunity

Life Sciences

$6B

(still secret)$300M

(still secret)$500M

Major Opportunities in Existing Markets

Excludes Upstream Energy. Market data reflects current estimates of potential opportunities.

Macro Trends Remain Relevant

AGING POPULATION

GROWING MIDDLE CLASS

POPULATION GROWTH

TECHNOLOGY

25% MORE PEOPLE by 2050, with most growth in emerging markets

in Europe, Japan,and China Higher RISK, More HEALTHCARE

More DISPOSABLE INCOME, More ENERGY,DIET SHIFTS to protein and away from home dining

Increased RISKS, and CAPABILITIES & OPPORTUNITIES

$ $$$

$$

Global Needs Continue to Drive Demand

50% MORE ENERGY 35% MORE FOOD

Perfectly Positioned

GLOBAL LEADER

19 trillionBTUs of energy

188 billion gallons of water

CLEAN WATER

SAFE FOOD

ABUNDANT ENERGY

HEALTHY ENVIRONMENTS

54 millionpounds of waste

2.4 billionpounds of CO2e

Annually saving customers:

Ranked #2 U.S. 500 List

Water A List

5th Consecutive Year

Recognized for ESG Leadership

2018 North America Index

Ranked #32Ranked #26

2018 Gold Medal for Sustainable Development13th Consecutive Year

MSCI ESGAAA(scale AAA to CCC)

While macro trends are consistent, micro trends aren’tChanging political and trade policies

Climate change pressure

Consumer awareness and activism

The “What we do” remains relevant

We are adjusting the “How we do it”

Execution Strategy Adjustments

Historical

Make where we sell

Best in class technology

Great talent

Global execution

Future

Make where we sell

Best in class technology

Great talent

Global / Local execution Key market enablement Decisions and accountability

closer to customerDigital!

The Digital Future

1. We have an advantaged position

2. This is a historic opportunity

3. We are on it

3 million customers, 170+ countries Majority collecting data Unique data sets provide unique opportunities

Data streams, knowledge unique to us What we collect unique How we interpret, based on our know-how

Challenge / opportunity Connect all 3 million to the cloud Efficiently turn data into predictive models

Killer App Predictive AI Field activation to create future

Digital Opportunity

Digital Benefits

1. Better value

2. Easier to do business with

3. More efficient

Remain Committed to our Targets

OPERATING INCOME

ROIC

15%EPS Growth

20%

20%

How the Day Will Work

13%

You Will Hear From:

COO

Global Business Presidents

Chief Technical Officer

Chief Financial Officer

Meet Ecolab Team:

Trade Show

Lunch

R&D Tours

Agenda: (approximate times)

8:00 AM Welcome – Doug BakerCOO Overview – Christophe BeckGlobal Water – Darrell BrownGlobal Food & Beverage – Nick AlfanoGlobal Life Sciences – Beth Simermeyer

9:45 AM Break

9:55 AM Global Institutional – Tim MulhereGlobal Specialty Services – Bobby Mendez Global Healthcare – Jill WyantR&D / Digital – Larry Berger

11:10 AM Tradeshow

12:10 PM Lunch

1:25 PM Finance – Dan SchmechelClosing Comments – Doug BakerQ&A

2:30PM R&D Tours / Depart

5:05 PM Final bus to airport

What You Will See and Hear Today

A step function change in our value

We have huge opportunity in front of us

We are focused

Most importantly…we have a great team

ECOLAB INVESTOR DAYCONTINUED EVOLUTION FOR CONTINUED HIGH PERFORMANCE

CHRISTOPHE BECK

September 5, 2019

PRESIDENT AND CHIEF OPERATING OFFICER

Early on growth journey

Uniquely positioned to win

Will continue to:

Deliver high performance

Focus on exceptional execution

Evolve to stay ahead

Uniquely positioned to win

GLOBAL LEADER

19 trillionBTUs of energy

188 billion gallons of water

CLEAN WATER

SAFE FOOD

ABUNDANT ENERGY

HEALTHY ENVIRONMENTS

54 millionpounds of waste

2.4 billionpounds of CO2e

Annually saving customers:

Driving customer performance

MORE Products

BETTER Products

LOWER Total Operating COST

REDUCED Environmental IMPACTAT

Help our customers produce:

Demonstrated, assured value

Strong value delivery driving premium pricing

> 25%

Huge opportunity

$12BSALES

$70BUNSOLD

CUSTOMERS

$45BCIRCLE THECUSTOMER

Addressing a $130B market (post spin)

$12BSALES

$70BUNSOLD

CUSTOMERS

$45BCIRCLE THECUSTOMER

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12BSALES

$70BUNSOLD

CUSTOMERS

2018 SALES

$12B

Market data reflects current estimates of potential opportunities

$118B of opportunity!

Continued drive for high performance

New Business

White Spaces

Innovation

Pricing

Digital

Operations Excellence

GROWTH

MARGINS

PRODUCTIVITY

Continued strong earnings

Quarterly Adjusted EPS Growth

8%

10%

14%13%

11%12%

13%12%

Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

Increased resilience

Strengthened Nalco Water Light Industry

Focus on Downstream

Mining to Phosphates, Paper to Boxes

PORTFOLIO

FOOTPRINT

DIGITAL

Expanded Geographies

New Segments

Lock & Key solutions

Globally connected sites

CONTINUOUS IMPROVEMENT

Catalyst / SAP

Efficiency Initiative

Continued focus on execution

New Business

+$1.3B

Innovation

Pricing

+2-3%

Productivity

2016 2017 2018 2019

$K / headcount

Pipeline

2016 2017 2018 2019

Continued focus on culture of accountability

High performance consistently delivered

Spend control

Stretch targets

Short-+

long-termCommitment

Circle The Customer, Circle The Globe

$12BSALES

$70BUNSOLD

CUSTOMERS

$45BCIRCLE THE CUSTOMER

Addressing a $130B market opportunity (post spin)

$12BSALES

$70BUNSOLD

CUSTOMERS

$45BCIRCLE THE CUSTOMER

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12BSALES

$70BUNSOLD

CUSTOMERS

UNSOLD CUSTOMERS

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12B

Market data reflects current estimates of potential opportunities

Leverage proven model

CHEMISTRY & DISPENSING

CHEMISTRY & DISPENSING

ON-SITE SERVICEON-SITE SERVICE

TRAININGTRAININGDATA-DRIVEN INSIGHTS

DATA-DRIVEN INSIGHTS $12B

SALES

$70BUNSOLD

CUSTOMERS

$45BCIRCLE THE CUSTOMER

BEST RESULTS AT LOWEST TOTAL COSTS

4x Opportunity Within Own Customers

$12BSALES

$70BUNSOLD

CUSTOMERS

$45BCIRCLE THE CUSTOMER

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12BSALES

$70BUNSOLD

CUSTOMERS

UNSOLD CUSTOMERS

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12B

Market data reflects current estimates of potential opportunities

Expand the opportunity

$12BSALES

$70BUNSOLD

CUSTOMERS

$45BCIRCLE THE CUSTOMER

$12BSALES

$70BUNSOLD

CUSTOMERS

$45BCIRCLE THE CUSTOMER

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12BSALES

$70BUNSOLD

CUSTOMERS

UNSOLD CUSTOMERS

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12B

Market data reflects current estimates of potential opportunities

Liquids

Solids

Digital and AI

Clean & Sanitize

Food Safety + Water

Infection Prevention

Institutional

Industrial

Healthcare, Life Sciences

North America

International

Mega Markets

Continued evolution

GLOBALIZATION

SEGMENTATION

$12B

$70B $45B

OFFERING

CAPABILITIES

UNSOLD CUSTOMERS

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12B

UNSOLD CUSTOMERS

$72BCIRCLE THE CUSTOMER

$46B

2018 SALES

$12B

Market data reflects current estimates of potential opportunities

Offering: Food safety + Water

Unique Integrated OfferingFOOD SAFETY + WATER

Better FoodSafer Food

Lower Total CostReduced Impact+

Nalco Synergies Integrated Offering Digitally Enabled 1 2 3

Expanding to Other Businesses4

Institutional + WATER | Downstream + WATER | Life Sciences + WATER

(cross-selling)

$500M+ $1B+ > $1B+(1 offering, 1 organization

for global customers)(end-to-end water and food safety solutions)

Digital: Building on decades of tech experience

1988

2000+

2010

2019

2020+

TRASAR

Connected chemistry

Pool & Spa

Solids / Apex

System Assurance

Center

Remote monitoring

ECOLAB3D (Industrial)

Cloud platform

Predictive analytics

ECOLAB3D (Ecolab-wide)

Digital: Rich offering getting even stronger

18

WATER DOWNSTREAM FOOD & BEVERAGE

HEALTHCARE INSTITUTIONAL SPECIALTY

Hand Hygiene Compliance Monitoring

3D TRASAR

MarketGuard365Ecolab

Intelligence Platform

3D TRASARFor Clean-in-PlaceCrudeFlex

Digital: Strategic value drivers

Enhance Customer Value

and Revenue

Increase Field

Productivity

Drive Operational

Performance

- Digital offerings- Total site performance- Enterprise optimization

- Predictive analytics- Remote monitoring- Ecolab on your phone

- eCommerce- Live order management- Safe deliveries

Digital: Global connected sites for Circle the Customer

% Sitesconnected

200K 20% 13%Industrial

Number of customer sites

% Salesdigitally enabled

2.7M 1% 1%Institutional

Major Potential

Better for customers (enterprise-wide optimization)

Better for Ecolab (stronger margins and retention)

Segmentation: New growth engines

WATER LIGHT LIFE SCIENCES NEW FOCUSDATA CENTERS

Secret

Globalization: Focus and expansion

Mega Markets International Markets

North America

International Markets

Western Europe

Greater China

14% market share

9% market share

11% market share

2% market share

$54B

$30B

$19B

$27B

Market data reflects current estimates of potential opportunities

Continued focus on priorities

1

2

3

New business

Margins

Productivity

Delivered globally

Continued success story

Huge and expanding opportunity

Proven model, continually refined

High performance consistently delivered

And

An unbeatable team

NALCO WATERDARRELL BROWNEVP & PRESIDENTSeptember 5, 2019

Capturing A Major Growth Opportunity

Water scarcity an increasing challenge for industry

Focus on customer core needs – improved results withwater and energy savings

Strong and sustainable business momentum

Emphasis on customer value creation and pricing capture

Unique global capabilities and footprint

Digital solutions strengthen value offerings

Delivering Value

FOR OUR CUSTOMERS:

Reducing industrial water consumption

FOR OUR WORLD:

Minimize Water Use

Target 300B gal water savings for our customers by 2030

Maximize ResultsOptimize Total Costs

Plant Process

BACKED BY A GLOBAL NETWORK OF OVER 6,000 EXPERTS SUPPORTING OVER 40,000 CUSTOMERS

BOILER

COOLING

PRE-TREATMENT

POST-TREATMENTPROCESSWATER IN WATER OUT

The Nalco Water Model

Segmentation – By Industry Expertise

5 GLOBAL DIVISIONS

4 CORE PLATFORMS

11 GLOBAL INDUSTRIES

170 Countries

Pretreatment | Cooling Water & Boilers | Process | Post-treatment

F&B | Manufacturing | Institutional | Transportation | Power | MetalsChemicals | Mining | Paper | Refining | Petrochemicals

LIGHT Industries

HEAVY Industries Mining Paper Downstream

Business Portfolio

North America

50%

Europe15%

AP, GC20%

LA10%

MEA5%

SALES BY REGION

$47B 9%

MARKET SIZE

$47 Billion Global Market Opportunity

Market data reflects current estimates of potential opportunities

Business Portfolio

Light 25%Paper 20%

Heavy20%

Mining5%

Other5%

Downstream25%

SALES BY SEGMENT

Our Strategic Ambition

Global Leader in Water Treatment Technology

and Management

Digital Solutions Strengthening Value

Offerings

Target 300B gal Water Savings for our

Customers by 2030

Minimize WaterMaximize Results

Optimize Total Costs

6% to 8% Organic Growth Ambition

PERFORMANCE Accelerating

$M+6-8%

Ambition

Accelerating Sales Performance

2019F

GROWTH FUNDAMENTALS in Place

Circle the Customer. HARD FOR COMPETITION TO REPLICATE.

The Winning Solution: Best Results, Lowest Total Cost

World-classsales and service

Long-standing customer

relationships

Industry leading innovation,

technology and digital solutions

Global knowledge transfer and training

Circle the Customer

Digital As A Growth Lever

DRIVE REVENUE

• ECOLAB 3D• System Optimization• Remote Monitoring

INCREASE PRODUCTIVITY

• Fewer Visits• Impactful Visits• Higher Value Visits

Increased Customer Value:30 Years of Digital Deployment │ Global Footprint

Collecting >90 Billion Data Points Per Year

• Asset Benchmarking• Industry Benchmarking• TCO Management

MAXIMIZE CUSTOMER

PERFORMANCE

Water Innovation StrategyOUTCOME DRIVEN, DIGITALLY ENABLED, PERFORMANCE GUARANTEED

INTEGRATED OFFERING

Chemical Treatment

Monitoring & Control

Performance Models via

Data Analytics

TCO & eROIAsset

Performance Dashboard

System Assurance Center

GROWTH MARKETS

MEGA TRENDS

DIFFERENTIATED TECHNOLOGIES

CUSTOMER VALUE CREATION

2017 2019

Strong Innovation Pipeline

3D CrudeFlexOMNI™ For Condenser

3D TRASAR™ Solid Cooling

LegionGuard™

3D TRASAR™ for Wastewater

FillerTEK™

WaterShedTailings

Management

3D TRASAR™ for Styrene Monomer

HEAVY PAPERLIGHTDOWNSTREAM MINING

ORT Oxalate Control

Technology

Ultis™ Dry² Strength

Technology

PURATE™

DIGITAL FIELD TOOLS CUSTOMER INSIGHTS

Service Model – Leveraged Best Practices

SEGMENTATION TRAINING

Long-term GROWTH TRAJECTORY

Water Demand –Significant And Increasing

Forecasted Water Cost Increases 2014-2030

0%

50%

100%

150%

200%

250%

1 2 3

+133%

+78%

+192%

USAChinaIndia

Water Stress / Quality

Demand – Ahead of Industry Growth

Growing Our Market – Expand Offerings

$20B

$8B

$13BOn-Site

Expertise

Chemical Services

Water Technology

$47B – Total Ecolab Water Market

3D TRASAR™Protected chemistry

Personal service

Filtration treatmentWastewaterPre-treatmentProcess controlRemote monitoring

On-site expertsConsultingPlant AssessmentData analytics

NEW TECHNOLOGIES NEW SERVICES

UNIQUE CHEMISTRY/SERVICES

DIGITAL ENABLEMENT

Market data reflects current estimates of potential opportunities

Downstream – A Great Opportunity

We provide solutions to critical issues in hydrocarbon manufacturing

MARKETS

Refining | Petrochemical | Utilities | Fuel Additives

REFINING FUEL ADDITIVES ETHYLENE R. MONOMERS POLYMERS

$1B IN SALES

Core Strategy: Expand End-to-End Offerings

$500K $2.5M

• Improve quality

• Save water & energy

• Optimize cost

• Digitize paint booth

$65K $520K $50K $500K

CHEMICAL SERVICES• 3D TRASAR™ for

Cooling Water

WATER SAFETYNEW OFFERINGS• Managed operations

• Water technologies

• Adiabatic cooling

• Digital Insights

CIRCLE THE CUSTOMER• Ecolab F&B / Pest

Elimination

• Core applications: boilersand cooling

• Innovative wastewatertechnologies

• Digital offerings

• Managed operations

• Recycle/reuse opportunities

TRANSPORTATION(e.g., automotive, trucks,

aerospace, auto parts, tire)

LIGHT INDUSTRY: FOOD & BEVERAGE

DATA CENTERS

-U.S.A.-Canada-Mexico-China

-Japan-Korea-Germany

FOCUS MARKETS

OWN THE PAINT BOOTH

Uniquely Positioned For High Growth

Sustainable Performance Increasing sales and profitability Impactful innovation Digitally enabled solutions

Fundamentals in Place Segmentation and Corporate Accounts Unique global capabilities and footprint Customer value creation and pricing capture

Expanded product offering Circle the Customer On-site expertise and digital capabilities Protected chemistry and technologies

GLOBAL FOOD & BEVERAGEEVP & GENERAL MANAGER GLOBAL FOOD & BEVERAGESeptember 5, 2019

NICK ALFANO

2

5 Anchor Platforms

BEVERAGE & BREWERY

4 Primary Market Segments

25,000+ Customers

$2B Market Leader in providing Cleaning, Sanitizing, Water and Waste Treatment Solutions to Food & Beverage processors

PROTEINDAIRY & AGRI FARMS

FOOD PROCESSING

Clean-in-Place Bottle WashConveyor

LubricationAntimicrobials Water & WasteManagement

Global Food & Beverage

North America

40%Europe

30%

AP, LA, MEA30%

Ecolab Share17%

$11BMARKET

$11 Billion Global Market Opportunity

MARKET SIZE SALES BY REGION

Market data reflects current estimates of potential opportunities

Winning in a Changing Customer Environment

Double digit growth with largestglobal food companies

Integrating & executinghygiene+water value proposition

Innovation drives operationalefficiency and improves margins

Digital solutions for bettercustomer outcomes and fieldproductivity

Pricing model captures costincreases and value delivery tocustomers

2%3%

3%5%

5%

$1.0B

$1.5B

$2.0B

2014 2015 2016 2017 2018

Ambition6-8%

Customer Consumer Regulatory

Mega Trends Shaping the F&B Landscape

Productivity & Sustainability

• Frequent change-overs• Shorter cycle times• Labor practices• Resource savings• Clean waste water

Consumption Preferences

• Healthy, organic, plant-based• Unique flavors, novel ingredients• Convenient on-the-go eating

Food Safety• Quality assurance• Low-residue, contaminant-free• “Natural” components• Ingredient/ label transparency

Digitization• Consumer influence• Automation for productivity• Real-time insights

Implications

Transform Food SafetyMaximize sales & profits safelyLower residue offeringsDigitally enable risk mgmt & actions

Access Growth in Emerging SegmentsSmall brands & unique snacks, beveragesPlant-based Dairy & ProteinContract manufacturers

Deliver End-to-End Hygiene-WaterSolutionsLarge Customer Enterprise model

Accelerate DigitalIncrease Food Safety & ProductivityStep up Field Productivity & ValueEasy, simple, intuitive experience

As Consumer Preferences Evolve…

+ CONVENIENCE +

1960s 1990s Today

7

…F&B Companies are Evolving with Them

Pork Ready-to-Eat

Juices

Natural & OrganicNon-meat Protein

Turkey

1986

2017

1994

201320152006

Healthier

Ethnic

1998

2018

2018

Carbonated Soft Drinks

2017

2015

Sports

2001

20081965

2006 2007 2018

2018

Probiotic

2016

2019

Protein Bev

2001

Water

ECL Sales: 2X2009 - 2019

Savory

ECL Sales: 3X2009 - 2019

Bevs

Snacks

From Hygiene to Holistic Solutions

Cooling Systems

Water Pretreatment

Boiler Water

Wastewater Operations

Pasteurizer

Brewhouse CIP Conveyor Lubes

Bottlewashing

Filler CIP

Cellar CIP

Food SafetyWater

Recycled CIP Rinse Water

Large Customer Enterprise Team DeliveringF&

B G

loba

l Sol

utio

ns Global Acct Mgr

Marketing

Finance

R&D

ONETeam

OUTSTANDING Results

ENTERPRISEHygiene + Water Treatment

Value Prop+ =

Optimal Quality &

Food Safety

MinimizedWater Usage

ImprovedOperationalEfficiency

Global Service & Expertise

Digital Insights

Innovation

Customer outcomes

Enabled by

Innovation + Digital for Exceptional Outcomes

Analog single point data Manual analysis Reactive

THEN NOW

DAIRY

PROTEIN Poor concentration control Pathogen risk Reactive

3D TRASAR™ CIPSYNERGEX™

Continuous monitoring Millions of data points Real-time analysis + troubleshooting Improved quality Longer shelf life

Out of spec concentration identified by

3D TRASARTM CIP

INSPEXX™ 250ANTIMICROBIAL

INSIGHTS

Continuous monitoring Reduced pathogen risk No labeling / organic

11

Antimicrobial Insights + Inspexx™ 250 helped a poultry customer achieve better product quality with less commodity caustic and water

Less WaterBetter Quality

10% Price Premium

CASE STUDY: North American Poultry Processor

40% less caustic

Less Commodity(Better pH Control)

Improved Quality and Efficiency

$18M value created annually

Cat 1 from Cat 3

PRODUCT QUALITY

7M gallons20% Less Water

11.7K gallons

12

Improved Productivity & QualityCASE STUDY: North American Cheese and Whey Producer

SynergexTM helped a customer eliminatethe need for nightly acid washing – saving time, water and opening up new markets

More Production

842 hoursReduced total CIP time by 40%

Better Quality

Opened up export marketsPRODUCT

QUALITY

0 nitrates

Less Water

1.2M gallons

Reduced post rinse time by 25%

$15M value created annually

13

Expanding Growth Opportunities

Protein Biofuels Small Food

Real-time Insights

Online Ordering & Tracking

Low Residue/ Organic Offerings

Hygiene–WaterOffering

Productivity Offerings

Dynamic Optimization

NEWSEGMENTS

Globalize and Accelerate

INNOVATIONDevelop Next

Gen Cleaning & Sanitizing

DIGITALMove from Reactive to

Proactive, Drive Productivity

Global Food & Beverage Summary

Market LeaderStrong Franchise with Solid Record of Growth & Profitability

Major Growth OpportunitiesContinued Globalization and Segment Focus

Favorable Market LandscapeConsumer Demands for Nutritious & Safe Food

Delivering Superior Value through Enterprise SellingMaximizing Customer Operations

Leveraging Innovation and Digital to WinSolving Food Safety, Productivity and Sustainability Challenges

LIFE SCIENCESBETH SIMERMEYEREXECUTIVE VICE PRESIDENT & GENERAL MANAGER GLOBAL LIFE SCIENCES

Global Life Sciences Summary

Large and Growing Opportunity $5B+ market with needs Ecolab uniquely positioned

to solve

Favorable Macro Trends Aging/growing population, increasing regulations, rapid

development of new medicines, cost pressure

Ideal Setting for Ecolab Business Model Highly consolidated customers and

highly fragmented competitors

Outcome-Based Programs Gaining Traction Focused on ensuring safety, compliance and

operational efficiency

Building our Global Franchise Growth-enabling investments in Corporate Accounts,

field sales, marketing and technical support

Market data reflects current estimates of potential opportunities

4% Current Share with Opportunity to Grow

Ecolab Share 4%

$5B+ Market Size10,000facilities globally

5% market growth

Fragmentedcompetitive landscape

Quality and safety are paramount

Market data reflects current estimates of potential opportunities

Continued Strong Growth to Gain Traction as Global Leader

$50

$100

$150

2015 2016 2017 2018 AmbitionDivision Created

$ M

illio

ns

+12%

Solutions for the Whole PlantCombining Food & Beverage, Healthcare and Water Expertise

Non-Sterile Manufacturing Area Cleanroom (Sterile)

Four Unique Programs That DeliverSafety, Compliance and Operational Efficiency

Safer, Compliant and More Efficient Plants

Cleanrooms Clean In Place / Clean Out of Place

Vaporized Hydrogen Peroxide (Bioquell)

PharmaceuticalClean In Place / Clean Out

of Place

Personal Care

Industry Faces Challenges We Are Uniquely Positioned To Address

Change averse due to significant time and resources required to revalidate

Customers want better efficiency and capacity utilization in their operations but challenged to get there

Portfolio changes 30+% year over year due to innovation, creating new cleaning and manufacturing challenges

Regulatory environment changing with stricter guidelines for cleaning and disinfection

Greater need for cleaning and disinfection due to increase in natural ingredients

Pharmaceutical Personal Care

Meeting Manufacturers Diverse Needs

Total Plant Solutions

CLEANING & DISINFECTION VALIDATION SUPPORT

CLEANING & DISINFECTION PROGRAMS

TECHNICAL LAB SUPPORT

REGULATORY & SCIENTIFIC INSIGHTS

CUSTOMER TRAINING

SITE SURVEY

Strong Partnership With Leading Global Pharmaceutical and Personal Care Manufacturers

Delivering Significant Value to Biosciences: Customer Example

Increase in production worth more than $1 million per year from improved operational efficiency

Customer looked to Ecolab to improve their centrifuge cleaning and sanitizing program

Reduced Clean-in-Place (CIP) time by >1,000 hours per year, resulting in over $2 million in total cost savings from reduced cleaning time and increased productivity

1.7 million gallons of water saved per year

Improving Operational Efficiency for Personal Care: Customer Example

315,000 kWh of energy saved per year

9 full weeks of cleaning and sanitizing time saved per year

472,500 pounds [200 metric tons] of CO2 emissions avoided per year

1.8 million gallons of water saved per year

Customer enlisted Ecolab’s help to improve the efficiency and sustainability of its cleaning and sanitizing process.

Global Life Sciences Summary

Industry Faces Significant Challenges We AreUniquely Positioned To Solve

Chasing A Large Opportunity $5B+ global opportunity Expanding leadership positions in North America and Europe

more broadly

Highly Consolidated Customer Set and a HighlyFragmented Competitive Set

Total Plant Solutions Approach Gaining Traction Safety, compliance and operational efficiency

Performance Accelerating Ambition of double-digit organic growth Acquisitions to add scale, coverage, technology, product lines

Market data reflects current estimates of potential opportunities