Slides
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Investor Presentation
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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 macroeconomic conditions and our financial and business performance and prospects, including sales, earnings, special (gains) and charges, raw material costs, margins, pricing, currency translation, productivity, investments and new business. These statements are based on the current expectations of management. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. In particular, the ultimate results of any restructuring initiative depend on a number of factors, including the development of final plans, the impact of local regulatory requirements regarding employee terminations, the time necessary to develop and implement the restructuring initiatives and the level of success achieved through such actions in improving competitiveness, efficiency and effectiveness. Additional risks and uncertainties are set forth under Item 1A of our most recent Form 10-K, and our other public filings with the Securities and Exchange Commission (“SEC”), and include the impact of economic factors such as the worldwide economy, interest rates, foreign currency risk, reduced sales and earnings in our international operations resulting from the weakening of local currencies versus the U.S. dollar, demand uncertainty, supply chain challenges and inflation; the vitality of the markets we serve; exposure to global economic, political and legal risks related to our international operations, including international trade policies, geopolitical instability and the escalation of armed conflicts; our increasing reliance on artificial intelligence technologies in our products, services and operations; information technology infrastructure failures or breaches in data security; difficulty in procuring raw materials or fluctuations in raw material costs; our ability to successfully execute organizational change and management transitions; the occurrence of severe public health outbreaks not limited to COVID-19; our ability to acquire complementary businesses and to effectively integrate such businesses; our ability to execute key business initiatives; our ability to successfully compete with respect to value, innovation and customer support; the costs and effect of complying with laws and regulations; the occurrence of litigation or claims, including class action lawsuits; 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. Industry and Market Information Industry and market information, including market share data, contained in this presentation 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. Although we provide the information and estimates based on assumptions we believe to reasonable, there can be no assurance that actual results will not materially differ from the information and estimates provided. 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 from independent sources. Trademarks and Logos Ecolab and its other trademarks and logos contained in this presentation are the property of Ecolab USA Inc. or its affiliates. Trademarks and logos of other companies appearing in this presentation are the property of their respective owners. All rights reserved. 2 Cautionary statement
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3 3 2 Driving steady 3-4% organic sales growth 1 Delivering consistent 12-15% EPS growth 3 Building high-margin growth engines 4 Expanding OI margin beyond 20% The Ecolab Success Story
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4 CLIMATE CHANGE 47% more energy by 2050 What We Do Matters 4 FOOD SECURITYPUBLIC HEALTH WATER STRESS 56% more food by 2050 30% more people by 2050 56% freshwater deficit by 2030
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5 Protecting People Protecting Natural Resources Delivering High Performance Our Purpose: Protecting What’s Vital 55 The World’s Water and Infection Prevention Company For a Cleaner, Safer, Healthier World
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6 Note: 2017-2020 Adjusted EPS cannot be compared to prior periods as it excludes the estimated impact of Discontinued Operations. 2026 reflects mid-point of adjusted EPS guidance range 6 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Adjusted Diluted EPS Our Promise: Delivering Long-Term Double-Digit EPS Growth
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7 Our Capabilities: Unmatched Reach, Worldwide Impact 7 CLIMATE 22% WORLD’S POWER WATER MILLIONS OF CUSTOMER LOCATIONS FOOD 36% WORLD’S PROCESSED FOODS PROTECTED HEALTH 1.7 BILLION PEOPLE PROTECTED 48,000 ASSOCIATES 40 INDUSTRIES 170+ COUNTRIES 3,000 SCIENTISTS + DIGITAL EXPERTS
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8 $16B 2025 SALES $60B EXISTING CUSTOMERS $89B UNSOLD CUSTOMERS Our Growth Opportunity: Significant, Expanding, and Fragmented 1995 2000 2005 2010 2015 2020 2023 2025 $165B $57B $39B$32B $18B $106B $135B $152B 8 Ecolab Sales 2025 $0 $4 $8 $12 $16 Ecolab Competitors $16 BILLION Note: Market data reflects current estimates of potential opportunities and figures reflect rounding
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9 Highly Resilient Model: Balanced End Markets & Geographies 90%+ Consumable Revenue 9 49% 38% 5% 8% SEGMENT S 56% 9% 4% 24% 7% REGIONS Water Institutional & Specialty Life Sciences Pest Elimination North America Asia Pacific Greater China EMEA Latin America
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10 Our Commitment: Driving Long-term, Consistent High Performance 10 Organic Sales 2021 2022 2023 2024 2025 $15B $14B $13B $16B $16B 2021 2022 2023 2024 2025 14% 12% 14% 17% 18% 2021 2022 2023 2024 2025 $5.21 $4.49$4.69 $6.65 $7.53 Adjusted OI Margin Adjusted EPS Long-Term Financial Targets ORGANIC SALES GROWTH +5-7% OI MARGIN +100-150 BPS PER YEAR >20% +12-15% ADJUSTED EPS GROWTH +6% CAGR +390 bps +13% CAGR Historical figures as originally reported
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11 DRIVING STEADY 3 - 4% ORGANIC SALES GROWTH
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12 Double-Digit EPS Growth in Favorable and Challenging Environments 1-2%GROWTH ENGINES 2-3% CORE GROWTH 2% 5-7%% 1% 2% Challenged Markets 3-4% -1% 1% Current Sales Trajectory Future Sales Trajectory VALUE PRICE12-15% EPS Growth + Growth Investments 12 12-15% EPS Growth ++ Growth Investments
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13 $2B Challenged Markets Driving Share & Margins 13 Strong and Resilient Portfolio ▪ Institutional & Specialty ▪ Water (ex. GHT, Paper, Basic) ▪ Pest Elimination ▪ Life Sciences ▪ Global High-Tech ▪ Ecolab Digital $11B Core Businesses Low-Mid Single Digit Growth $3B Growth Engines Double-Digit Growth $16B 2025 SALES ▪ Paper ▪ Basic Industries
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14 Our Model: Delivering Best-in-Class Performance 14 BREAKTHROUGH TECHNOLOGY ON-SITE EXPERTISE GLOBAL KNOW-HOW DIGITAL ARTIFICIAL INTELLIGENCE BEST PERFORMANCE LOWEST TOTAL COST (Reduced Water, Energy, Waste Impact)
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15 15 Our Metric: Total Value Delivered (TVD) FINANCIAL IMPACT BUSINESS OUTCOMES OPERATIONAL PERFORMANCE ENVIRONMENTAL IMPACT SAFETY PRODUCTIVITY WATER QUALITY WASTECOMPLIANCE TOTAL VALUE DELIVERED BRAND ENERGYCAPACITY
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16 16 Deliver globally Our Best-in-Class Promise: Make Every Location Your Best Location Best-in-Class Environmental Impact Business Outcomes Operational Performance OUR APPROACH TO BEST-IN-CLASS Identify Best Performing Location Assess Potential Across the Globe Deliver Globally
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17 $0.3 $1 $0.3 $3 $1 $11 2021 2025 Cumulative from 2021 ($B) 17 Total Value Delivered Value Price Delivered Product Cost Capturing Our Share of TVD Through Value Pricing
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18 18 Core Growth 2%Best-in-Class Supported by Breakthrough Innovation AI Data Centers Less Water, More Powerful Chips Increase Productivity, Real-Time Service KitchenIQ : RushReady Pest Free, Real-Time Service Pest Intelligence Safer Drugs, Lower Cost Total Biopharma Solutions Cutting Edge Cooling, More Computing Ultra Pure Water for Micro-E
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19 Driving Core Growth Across Top Global Customers 19 $60B Growth Opportunity to Capture Growth with Top 35 Customers Leading the Way (6 %) +8 % 2023 2024 2025 Opportunity +$3.5BSales Growth
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20 BUILDING HIGH - MARGIN GROWTH ENGINES
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21 Building High-Margin Growth Engines 21Sales reflect 2025 actual Pest Elimination Life Sciences Global High-Tech Ecolab Digital Sales $1.2B $700M $390M $370M Market Size $15B $15B $5B $13B Growth Target +6-8% +10-12% >20% >20% OI Margin Target 22% 30% >20% >>20%
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22 PEST ELIMINATION TIME SPENT CHECKING EMPTY TRAPS Pest Intelligence: 99% Pest-Free Environments 2222 TIME SPENT TO SELL AND GROW TODAY FUTURE 95% 5% 95% 5%
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23 Life Sciences: High-Quality Drugs At Lower Cost New Resins Biologics Cleaning Pharma Intelligence Pharma Water One Ecolab $83B $55B $11B 5% EXISTING CUSTOMERS SOLD $3B UNSOLD CUSTOMERS $15B 23
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24 High Tech: AI Has a Significant Role in Ecolab’s Growth Strategy 24 50GW New Computing Demand by 2029 +70 New Fabs $3B Addressable Market 1,000 New Data Centers $2B Addressable Market $5B+ Ecolab Market Opportunity
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25 Digital Intelligence Ultra-Pure Water Unlocking a Massive Growth Opportunity 25 Strengthening Our Global High-Tech Growth Engine Acquired Ovivo Electronics, a Leader in Ultra-Pure Water $5B Growing Double-Digits Global High-Tech Market Reclaim & Effluent✓ ✓ ✓ Utility Water ✓ ✓ Consumable Chemistry ✓ Expert Service
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26 Best-in-Class Cooling Optimization for Data Centers $10M Total Value Delivered per 100MW 10%+ Cooling Power – Power Back to Compute 26 UTILITY WATER MANAGEMENT LIQUID COOLING MANAGEMENT INTEGRATED CDU INTEGRATED CDU WATER SAFETY PROGRAM PRE-TREATMENT SOLUTIONS
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27 27 $10B $3B$0.4B EXISTING CUSTOMERS $370M 2025 SALES $13B Opportunity 500K+ Connected Systems UNSOLD CUSTOMERS Foodservice Intelligence Data Center Intelligence Pest Intelligence Pharma Intelligence One Ecolab Ecolab Digital: Monetizing Long-Term Customer Value
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28 28 ▪ Cooling for data centers ▪ Water circularity for fabs BEST-IN-CLASS GROWTH ENGINE Knowledge and Capabilities Millions of Locations 40 Industries $60B Growth Opportunity Global High-Tech Cooling for Data Centers Water Circularity for Fabs NEW REVENUE PERFORMANCE Ecolab Digital 500K Connected Systems Today $1B in Digital Sales Tomorrow One Ecolab Productivity Through Agentic AI $325M Savings Ecolab AI: 30 Years and Just Getting Started
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29 EXPANDING OI MARGIN BEYOND 20%
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30 30 ▪ Food & Beverage ▪ Pest Elimination ~20% OI Margin ▪ Life Sciences ▪ Light and Heavy ▪ Paper >20% OI Margin ▪ Institutional ▪ Specialty <20% OI Margin18% Ecolab OI Margin 60% of Portfolio Near or Above 20% Operating Income Margin Fixed Currency OI margin. 2025 actual.
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31 Expanding OI Margin Beyond 20% 31 14% 18% 20% 2021 2022 2023 2024 2025 DPC Value Pricing Growth Engines One Ecolab 2027 Target 2027-2030 +100-150 bps Annually Adjusted OI margin 12% 14% 17%
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32 STRONG FINANCIAL POSITION
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33 Strong Long-Term Financial Targets 33 +5-7% Sales Growth 90-100% FCF Conversion of Net Income +12-15% EPS Growth ~2x Leverage Net Debt / Adjusted EBITDA >20% OI Margin FCF Priorities ✓ Grow Dividend in Line with EPS Growth ✓ Acquisitions ✓ Share Repurchase
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34 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Adjusted Diluted EPS Eagle Environmental Services Strengthening EPS Growth Through Strategic M&A 34 Kleencare Hygiene Daydots International Note: 2017-2020 Adjusted EPS cannot be compared to prior periods as it excludes the estimated impact of Discontinued Operations. 2026 reflects mid-point of adjusted EPS guidance range
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35 Strong Capital Returns 35 $10B+ Cumulative Cash Returned 2016-2025F $0.4 $0.9 $1.4 $1.9 $2.5 $3.1 $3.7 $4.3 $4.9 $5.7 $0.7 $1.3 $1.9 $2.3 $2.4 $2.5 $3.0 $3.0 $4.0 $4.8 $0 $2 $4 $6 $8 $10 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Dividends Paid Shares Repurchased Total Returns 2016-2025 $4.8B SHARES REPURCHASED $5.7B DIVIDENDS TO SHAREHOLDERS Increased Cash Dividend for 34 CONSECUTIVE YEARS
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36 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 The Ecolab Success Story 36 2 Driving steady 3-4% organic sales growth 1 Delivering consistent 12-15% EPS growth 3 Building high-margin growth engines 4 Expanding OI margin beyond 20% Adjusted Diluted EPS Note: 2017-2020 Adjusted EPS cannot be compared to prior periods as it excludes the estimated impact of Discontinued Operations. 2026 reflects mid-point of adjusted EPS guidance range