GLOBAL INSTITUTIONAL SECTOR · Currently deploying with large global customers Solid pipeline of...

GLOBAL INSTITUTIONAL

SECTORTim Mulhere

EVP & PRESIDENT, GLOBAL INSTITUTIONAL

SEPTEMBER 2019

POWERING CUSTOMER PERFORMANCE

Delivering Best in Class Food Safety

WHO WE SERVE$3.4B MARKET LEADER

4 Principal Market Segments

WHAT WE OFFER$3.4B MARKET LEADER

Core Anchor Programs

SERVING FLAGSHIPS OF OUR INDUSTRY

GLOBAL INSTITUTIONAL SECTOR$3.4B MARKET LEADER PROVIDING CLEANING & HYGIENE SOLUTIONS

Sales by Region

70%North America

18%Europe,

Middle East, Africa

8%Asia

Pacific

4%Latin America

Food Service

50%Lodging25%

LTC10%

Facilities15%

Sales by Segment

HUGE MARKET OPPORTUNITY

$27 Billion

2018 SALES

$3.4B

UNSOLD CUSTOMERS

SOLUTIONPENETRATIONWITH EXISTING

CUSTOMERS

$10B$14B

12%

INSTITUTIONAL SALES 2018:

$3.4 BILLIONMarket data reflects current estimates of potential opportunities

ROW

China

Europe

North America

Current Sales Markets excl. Sales$B Opportunity

OPPORTUNITY BY REGIONSIGNIFICANT $27B+

$10B$5B $15B

5%

1%

10%

4%

Market data reflects current estimates of potential opportunities

CHASE HUGE MARKET

Have a built-in advantage everywhereGlobal accounts position Best-in-class technology

Performing well in North AmericaMust get the rest of the markets moving

Need to sharpen focus … win where it mattersGlobal accounts everywhere National & local accounts in Mega Markets: NA, EU & China

STRATEGIC GROWTH FOCUS

What HowExtend our advantage to drive share gains

• Leverage innovation: Best results, lowest total cost• Drive corporate account execution / firepower• Best results, lowest total cost for all customers• Leverage Digital: Food Safety Intelligence

Unlock non-North America growth

• Accelerate Europe and China via segment drivenprograms and digital

• Drive local accountability and talent• Invest in local marketing / digital expertise in China

and Europe

Enable Field productivity • Mobile Sales & Service Platform• Automatic sales visit preparation• Dynamic routing

KEY METRICS ARE STRONG

Pricing – 1ST Half

+2%

New Business – 1st Half

+14%

BUILDING THE FUTURE:INNOVATION

EHT PREP-N-PRINT™FLEX

SIMPLE CLEAN

NEXT GENERATIONDISPENSING

SMARTPOWER™ADVANCED HEALTH DEPARTMENT INTELLIGENCE

ECOLAB INTELLIGENCE PLATFORM

FOOD SAFETY PROGRAMS

SMALLFORMAT

DISHMACHINE INNOVATION

SCRUB FREE BATHROOM CLEANER AND DISINFECTANT

AQUA BALANCE™WIRELESS

AQUANOMIC ™2.0 / BIOCARE

OPERATIONAL PERFORMANCE SOLUTIONS

Best Results at Lowest Total Cost

Advanced HDI

Ecolab Service Observations

External Data

EcoSureAudits

Connected Dishmachines

Connected Dispensers

Remote Temperature Monitoring

RISK IDENTIFICATION

UNIT SPECIFIC PRIORITIZATION

TARGETED ACTION ON CUSTOMER’S BEHALF

BUILDING THE FUTURE: OPERATIONAL INTELLIGENCE

TURNING DATA INTO INSIGHTS AND ACTION

DELIVERING THE PROMISE

Huge market opportunity - $27B Leverage global leadership in

corporate accounts and technology Unmatched capabilities Food Safety Water Digital

Proven model Best results, lowest total cost

Organic Growth

+6-8%


BOBBY MENDEZ

September 2019

Executive Vice President & President, Global Specialty & Services Sector

Specialty & Pest Elimination

Specialty Pest Elimination

Specialty Sales Pest Elimination Sales

1 photo or graphic/no textPlace your photo or graphic on top of the gray box

Specialty

Quickservice

Food Retail

Number 1 or 2 in markets served Global innovation leader Premium, customized cleaning and

sanitation programs that reduce labor costs while increasing sanitation levels, cleaning performance, employee and guest safety, and equipment life.

Providing brand protection and costsavings with innovation focused onautomation and process simplification

Safe, easy to use products and trainingtailored to the market

On-Site Service and technical support –globally


Strong Customer Relationships


16%

$5B Global Market Global trend toward more casual dining

Chains continue to lead unit growth, needstandardized protocols we help deliver

Increased focus on food safety as menus shift toward fresh products

Hygiene expectations increasing with rising consumer income

Food delivery expected to be incrementalgrowth opportunity

Social media presents brand reputationrisks, prompting need for additionalhygiene solutions and control

Major Market Opportunity

Specialty Sales+6-8%


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Robust Innovation Pipeline

Expanding Concentrates

PlatformSimplifyingProducts

BroadeningServices

Advancing Predictive Analytics

Currently deploying with large global customers

Solid pipeline of customers in pilot, even more showing interest

Developing Compliance Management and Predictive Analytics to unlock value,increase productivity and strengthen customer relationships

Substantially improves accuracy, data management capability and control

Accelerating Digital Innovation

From paper-based: To digital content:

Industry Trends Create Opportunity

Consumer preferences drivingmenu complexity

More focus on fresh ingredients =food safety risks

Increasing pressure for higherwages and input costs

Digital solutions to improvecustomer experience, reduce laborcosts

Rise of food delivery


Industry Trends Play to our Strengths

$40

Expand Cleaning and Sanitizing

Program

Accelerate Automation/Digital

Simplified Food Safety Protection

Specialty – Outlook Remains Strong

Overall trends continue to favorSpecialty Digital, Food Safety and Labor risk create

opportunity New menu items (including meat

alternatives) require our help forstandardized procedures

Share opportunities robust Major global opportunity, QSR chains

investing again to expand globally New needs from industry Expanding FRS opportunity set


Pest Elimination

Global leader in commercial pestelimination services

Critical service for food safety, publichealth, guest experience, operational efficiency and sustainability

On-site consultation and staff educationaltools

Proactive, integrated programs to preventpest issues

Help customers protect their brand

Operating in 34 countries


TRUSTED PARTNER

INNOVATIVE SPIRIT

SUPERIOR SOLUTIONS

CONSISTENT COMMUNICATION

Committed to a Higher Standard

We forge partnerships that empower you to win the fight against pests.

We continually advance the science of pest elimination and share our expert knowledge with you.

We have a holistic approach and unwavering standards for proactive pest prevention and elimination.

We keep you informed of pest issues you need to know about, so you can focus on your business.

Only Ecolab brings you people with proven, science-

based expertise to eliminate your pest issues today, and

the ongoing innovation to solve the changing pest pressures of your evolving business.

Global Pest Elimination – Our Difference


Trusted Partnerships across Industries

Food Retail

Food & Beverage FSR LodgingQSR

Trends Favor Premium Pest Service Increasing regulation & quality

and a desire for transparency Guest experience critical to drive

revenue in restaurants & lodging Social media pressure continues

to be high can risk the brand

Major Share Growth Opportunities Ecolab 7% market share 5,000+ field and sales associates Cover 34 countries and regions

7%

$11B Global Market

Global Pest Elimination

Pest Elimination Sales


Superior Solutions for Pest-Free Outcomes

CUSTOMER CENTRIC

PROGRAMS +

SCIENCE BASED

METHODS

INNOVATIVE METHODS

Actionable InsightsConnected Equip.

Cockroaches Rodents Large Flies Small Flies Stored Product Pests

Occasional Invaders

Ants TermitesMosquitoesBirdsBed Bugs

VisibilitySmart Service


Pest Elimination – Enhancing Value Delivery Enhancing Value Delivery through Digital, Innovation, M&A

World-Class Customer Experience with Advanced Digital Tools

Smart Innovation forPest-Free Outcomes

Multi-channel, Real-time Reporting Emergency Service Resolution

Cutting edge app for field management

24/7 Monitoring of pest activityincluding hard-to-access areas Advanced analytics engine for risk

prediction, root cause identification andcorrective actions

Recent acquisitions expanded pestopportunity to strategic F&B segment

Addresses key food safety risk pointsalong complex supply chain – Import /Export, Storage & Milling, Manufacturing

Improved Enterprise offering with F&Band Water

Geographic expansion with globalgrowth potential

PEST ELIMINATION TOTAL FOOD PROTECT PROGRAM

Pest Elimination – Expanding Market ReachValue Delivery Capabilities across Food Supply Chain

18

Digital tools for Associates and

Customers

Develop aWorld-Class

Customer Experience

Customer centric, programs delivered through innovative

methods

Deliver the Best Customer

Outcomes

Be the place forTalent to do

their Best Work

Sales and Field enablement through automated tools &

reporting

Strategic Imperatives – Strong Fundamentals

Global Specialty & Pest Elimination Summary

Leader in food safety,protecting customer brands

Major market opportunities

Innovative product portfolio

Strong business franchiseserving critical ongoingneeds

Longstanding relationshipswith major customers

16%

7%

Specialty$5B Global Market

Pest Elimination$11B Global Market

Specialty Sales+6-8%

Pest Elimination Sales


GLOBAL HEALTHCAREINVESTOR DAY

JILL WYANT

5 September 2019

EVP & PRESIDENT, GLOBAL REGIONS AND GLOBAL HEALTHCARE

EXECUTIVE SUMMARY

$20B global market that faces challenges Ecolab can uniquely help solve

Favorable macro trends — aging populations, growing global middleclass, antibiotic resistance

Our plan is working, albeit not as fast as we would like! Growth strategies have real traction Portfolio continues to grow in our favor

This continues to be a great business for the company


$20 BILLION GLOBAL OPPORTUNITY

North America

45%

Europe45%

ROW10%

$13BMARKET

$6BWhite Space

MARKET SIZE SALES BY REGION

Ecolab

3Market data reflects current estimates of potential opportunities

BIG OPPORTUNITY, DIVERSE MARKET DRIVERS

Price competitive environment Consolidated GPO & Distributor

environment Health System cost and budget

pressures

Need for increased operational efficiency Shift to value-based care: heightened focus

on hospital associated infections (HAIs) Evolution to leveraging digital/data Surgical procedures increasing

Rapidly evolving & stringent regulatoryenvironment

High occupancy drives need foroperational efficiency

Evolution to leveraging digital/data

UNITED STATES

Surgical procedures increasing More fragmented channel players Rapidly evolving & stringent

regulatory environment Government austerity measures

impact healthcare spend

EUROPE

Programs

Cleaner, Safer, More Efficient Hospitals

GLOBAL HEALTHCARE OVERVIEW

5

Operating Rooms

Infection Reduction, Faster Turnover, Improved Compliance & Reduced Costs

Hands Surfaces

Patient Room Program

Hand Hygiene Program

Central Sterile Program

Operating Room Program

Instrument Hygiene

ECOLAB STRATEGY

Continue to build scale and efficiency Europe Anios connection Select M&A

Drive unique growth program strategies Hand care, surgical changeover, patient room protection, powered by digital Leverage Anios Soluscope endoscopy solutions in key markets Customer OEM technologies

Expand internationally via targeted strategies Utilize Anios via partners Build full capabilities in China

Continue to improve lower growth portion of portfolio Better execution Move to growth via program development (ex: Hand Care)

OUR PLAN IS WORKING

Europe +4-5%

2

3

4

International +15-25%

OEM +7-9%

Program Selling +15-20%

60%

+5-7%of Global Healthcare

Business

PORTFOLIO CONTINUES TO GROW IN OUR FAVOR

0

10

20

30

40

50

60

70

80

90

GROWTH PROGRAMS60%

80%

+4%

+6-8%

CASE STUDY: HAND HYGIENE COMPLIANCE MONITORING PROGRAM

Hand hygiene compliance rate

HAI reduction ‐29%+36pts

Timeframe Total beds

$4 millionEstimated savings from HAI prevention

24 months1609

and 1,189 Patient Days

Leverages technology to leave no room for error – creates a zone around patient bed and sends real-time reminders to performhand hygiene when it matters most – before/after patient contact

Hospitals

5

DRIVING DIGITALLY-ENABLED PROGRAM SELLING GLOBALLY

1M+Hand Hygiene eventsmonitored every day

400K+High Touch Objects tested in OR per year

100,000+Patient Room turnovers monitored per year

5,000+Cleaning verifications per hospital per year

$25K Avg Savings/Hospital

Monitoring Savings Labor Savings Audit Preparation


Reduced room turn time Reduced Infections Labor Savings


Reduced room turn time Reduced Infections Labor Savings


Reduced infections Labor savings

2015 2016 2017 2018 2019

GLOBAL OEM PARTNERSHIPS

GLOBAL OEM GROWTH

OEMs drive procedural innovation and enable migration of care with large health systems

Grow with Minimally Invasive Procedures & Diagnostics

Grow existing partnerships

DEVELOP NEW RELATIONSHIPS IN

TARGETED PROCEDURAL SPECIALTIES

Leverage competitive advantages in

innovative design, manufacturing and

quality

HOW WE WIN

Innovation often requires proprietary, single use draping technology to ensure

sterile field and easy set up

DRIVING ANIOS + ECOLAB ADVANTAGES TO ACCELERATE GROWTH

Continuing to invest in Multiple Growth Bets- Adding sales firepower to accelerate core

infection prevention sales growth- Expanding surgical drapes and endoscopy- Investing in world class talent, innovation and

manufacturing capabilities

Driving consistent Double-Digit Growth ininternational markets

- Anios fueling technology and distribution- Offerings and relationships a strong match for

market needs- Ecolab infrastructure provides solid platform for

growth

12

2

SUMMARY

Large and Growing Market Opportunity$20B Market with Favorable Macro Trends

Investments in High Growth, Global Opportunities are Yielding GrowthProgram Selling + Digital, OEM Partnerships, Cross-selling, Geographic Expansion

Building Our Global FranchiseLeveraging Anios to Accelerate Europe Growth and Expand Internationally

Strengthening Commercial Performance Building the Portfolio to Drive to Upper Single Digit Organic Growth


GLOBAL RESEARCH, DEVELOPMENT & ENGINEERING & DIGITAL TECHNOLOGY

LARRY BERGEREVP RD&E & CHIEF TECHNICAL OFFICERSeptember 5, 2019

Ecolab Innovation: Providing Best Customer OutcomesDigital Technology Strengthens Our Competitive Advantage

Best results at lowest total cost

Innovation Fuels Growth

2019: Launching our largest pipeline ever

Goal: pipeline growth 2x organic top line

Technology leaders in our verticals Innovate solutions from common platforms

Solutions combining sciences & digital Chemistry Antimicrobial Food Safety Water Technology Concentrates Dispensing Packaging Engineering Clean-in-place Engineering

3DTrasar Data Science System Assurance Center Tagged Chemistry Predictive analytics Embedded IOT Mobile Apps

*

Innovation pipeline = Forecasted revenue in year 5

$1.3 B*Innovation Pipeline

$1.3BInnovation Pipeline

1,400 RD&E Scientists and Technologists

8,400 Patents

200Digital Technologists

Innovation Tightly Aligned with Market TrendsTarget Rich Environment

Consumer demanding & redefining Food Safety On-site prep; contaminant-free cleaning; sourcing transparency

Hospitality managing labor shortages & wage inflation $15/hour labor; worker churn; more training & automation

Demand for pathogen-free hospitals, hotels, care facilities Reduce brand and financial risk with opex benefits

Doing a lot more with a lot less fresh water at lowest TCO Synchronously improve quality, productivity, profitability & sustainability

War on plastics Driving paper substitution, plastics reduction & more concentrates

Helping our customers run their operations betterand increase their profitability

Best in class chemistry, dispensing & packaging solutions

Real-time optimization, monitoring, field expertise, advancedanalytics and actions

Ecolab Innovation Drives Best Results And at Customers’ Lowest Total Cost Of Operations (TCO)

Innovating to Solve our Customers’ Most Critical Problems

Labor

Asset/ Materials ReplacementWater &

Energy

Maint./Other

Reducing Labor Water & Energy Maintenance Waste

Increasing Asset Life Uptime Yield Quality

Ecolab Innovation Approach: Bringing it All Together

New Innovation

Ecolab Innovation Advantage: Food Safety Best Hygiene Solutions, Lowest Total Cost, Greater Compliance & Safer Foods

Customer Challenges• 100% food safety compliance• Lots of data; few insights• Effective food safety trainingEcolab Solution• Customized task management app & solutions• Dynamic dashboards & monitoring• Early visibility to high risk• Integrated, comprehensive food safety risk assessment• Close-the-loop for best outcomes

Hygiene & Food Safety compliance

Labor Savings* $3M/year

*estimates for 1,000 unit chain; $15/hour labor rates

Predicting Health Dept Inspection Audit

Violations

**Based on 100,000+ observations from Ecolab field service & 1M+ daily data points

from 25% to 70% accuracy**

from < 50% to +90%

Water Safety IntelligenceEcolab 3D Analytics Evaluates Conditions That May Support Legionella Growth*

HISTORICAL STATE

Probability of finding legionella growth in cooling towers using

traditional methods

10%-25%.

Customer Challenges• Legionella airborne spread: incidence up 5x since 2000• $2.6M per outbreak & $8M impact on brand & operations• Stiffer regulatory requirementsEcolab Solution• Industry-leading portfolio for legionella risk mitigation• On-site generators for biocides• Comprehensive analytics with real-time visibility & control• Delivers water management compliance program

With 1B+ data points from Ecolab 3DTrasar + Legionella

data historian

Can assess conditions that may support legionella growth

ECOLAB ANALYTICS

*Ecolab does not make any prediction, guarantee or warranty that the risk of the presence of Legionella or waterborne pathogens orthe risk of legionellosis or disease has been reduced or eliminated by reason of the Program.

>75%

MICROBIAL CONTROL

Ecolab water management program• 3D TRASARTM

• Biocide Portfolio• Systems Assurance Center• Predictive analytics

Ecolab 3D Analytics in Action

© 2017 Ecolab USA Inc. All rights reserved.

OMNI Analytics for Power PlantsInsight Into Condenser Analytics Yields More Capacity & Higher Savings

Customer Challenges• Natural gas = 50% of US power; 75% of new US installs (2018)• Operational staff reductions = increased Ecolab support needs• Pricing pressureEcolab Solution• Ability to quickly find, fix, prevent condenser operational upsets• Using deep service expertise to drive water use reduction• OMNI monitors parameters tunable for optimization• Results in lowest opex & maximum power production

EFFICIENCY PRODUCTION

Efficiency of thermal transfer

25%Improvement

Added generating capacity*

2.6 MWH$600K

ENERGY

Energy savings*

1-2%>$700K/ Plant

*Based on 825 MW capacity combined cycle plant

Combined Cycle Natural Gas Turbine Power Plant

Water Innovation Advantage: DownstreamOptimizing Process Conditions To Maximize Profit

CHEMISTRY, EXPERTISE + DIGITAL

> 30 years knowledge & insights> 1,000,000 global data points> 1,000 crudes analysis properties

Customer Challenges• 90% crude unit corrosion can happen in as little as 10% of the time• Optimize distillation cuts to maximize jet fuel & profitability• Operate at lower temps, minimize condenser salting & corrosionSolutions• Real-time sensing, detection & dispensing• Tailored chemistry: amine filmers and acid mitigation chemistries• Service & advanced monitoring solutions

INCREASEPROFITABILITY

OPTIMIZECONDITIONS

Increased margin $ crude bbl processed

$15M/yearIncrease jet fuel (kerosene) yield

Overhead Temperature

Mitigated condenser salting via advanced monitoring & chemistry

Determining tailored automation,monitoring and chemistry solutions

Customer Challenges• Lighter weight boxes at equivalent or improved strength• Lower quality recycled fiber leads to high box weights,

decreased productivity• Liquid strength additives require 3bulk shipments per day

Solution• Patent pending chemistry with unique dry powder additive• Improved fiber bonding and enzymes for increased strength• 90% reduction in chemical shipments

Ultis™ Dry² Strength TechnologyStrength, Productivity and Sustainability for Paper

*Case study from NA recycled linerboard mill producing 750 ton/day

PERFORMANCE ENERGY

Increased production24,000 tons/yrIncreased strength

10%

Reduced refiner energy

2.2M kwh/yearSolids drop shipments by

90%

PROFITABILITY

Increased profitability*$4.9M/year

Ecolab Innovation PipelineDigital Solutions Accelerating Growth

*

$1.3 B*Innovation Pipeline

$1.3BInnovation Pipeline

1,400 RD&E Scientists and Technologists

8,400 Patents

200Digital Technologists

Summary Innovating To Solve Our Customers Biggest Challenges

Launching our biggest pipeline ever

Focused on delivering best results atlowest total cost

Solving problems that matter most tocustomers

Digital technology embedded in oursolutions

Supporting customers with a global teamof technical experts

Innovation well positioned going forward

GLOBAL INSTITUTIONAL SECTOR · Currently deploying with large global customers Solid pipeline of...

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