Andrew Whitman

Andrew Whitman asked two questions: first, how the water business's top-line performance is affecting its segment's margin, and second, whether the recently mentioned large new pest customer was an entirely new client or a conversion to new technology.

Answer

Christophe Beck, Ecolab's Chairman and CEO, explained that excluding Basic Industries and Paper, the water business would show 4% top-line growth and 15% operating income growth, indicating strong underlying performance. Regarding the pest customer, Beck clarified that it is a new customer, a very large U.S. retailer, attracted by the new Pest Intelligence technology. He emphasized that focusing on major clients helps demonstrate the technology's effectiveness and encourages others to adopt it.

Andrew Whitman asked about the impact of top-line performance on the water segment's margin, requesting a bifurcation of the data. He also inquired whether the recently mentioned large new pest customer was entirely new or a conversion to Ecolab's new technology.

Answer

Christophe Beck, Chairman and CEO of Ecolab, explained that excluding Basic Industries and Paper, the water business would show 4% top-line growth and 15% operating income growth, highlighting the focus on improving the performance of the underperforming segments. Regarding the pest customer, Beck clarified that it is a new customer, a major U.S. retailer, attracted by Ecolab's new Pest Intelligence technology, which is transforming their service model and attracting leading companies.