Ecolab Inc. is a global leader in water, hygiene, and infection prevention solutions and services, operating in more than 170 countries. The company provides a wide range of products and services, including water treatment, cleaning, and sanitizing solutions, primarily through its three main segments: Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences, along with an additional segment for Pest Elimination and other services **[0001558370-24-001581_ecl-20231231x10k.htm:116]** **[0001558370-24-001581_ecl-20231231x10k.htm:3]** **[0001558370-24-001581_ecl-20231231x10k.htm:73]**. Ecolab's business model is heavily reliant on recurring sales, with over 90% of sales coming from consumable products, ensuring a stable and predictable revenue stream **[ECL_3391538_0]**.

1. **Global Industrial** - Offers water treatment and process applications, including sub-segments such as Water, Food & Beverage, and Paper, contributing significantly to the company's operations.
   - **Water** - Provides solutions for water treatment and management.
   - **Food & Beverage** - Delivers cleaning and sanitizing solutions for food and beverage processing.
   - **Paper** - Supplies process applications for the paper industry.
2. **Global Institutional & Specialty** - Focuses on cleaning and sanitizing products for industries such as foodservice and hospitality, supporting operational efficiency and safety.
3. **Global Healthcare & Life Sciences** - Provides specialized cleaning and sanitizing products tailored for healthcare and pharmaceutical industries, ensuring compliance and safety.
4. **Other (including Pest Elimination)** - Includes Pest Elimination services and other offerings, addressing pest control and additional service needs.

4298380876b65730ec949a9588bfc407761878975439f2973e0bd6d7cd869da7

3e6d9360fda8e78ec6da45f4626ed169b89afda605f8968bbed1f97fd41f6fab

| Segment [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Global Industrial     | 1,866.2  **[0001558370-23-001231_ecl-20230214xex99d1.htm:2]**  | 1,699.3  **[0001558370-23-008089_ecl-20230331x10q.htm:36]**  | 1,795.6  **[0001558370-23-012641_ecl-20230801xex99d1.htm:2]**  | 1,826.9  **[0001558370-23-017421_ecl-20230930x10q.htm:43]**  | 1,985.1  **[0001558370-24-003421_ecl-20240315xex99d2.htm:0]**  | 1,841.7  **[0001558370-24-006535_ecl-20240331x10q.htm:35]**  | 1,936.5  **[0001558370-24-010647_ecl-20240630x10q.htm:25]**  | 1,993.0  **[0001558370-24-014051_ecl-20240930x10q.htm:29]**  |
| Global Institutional & Specialty | N/A | 1,126.6  **[0001558370-23-008089_ecl-20230331x10q.htm:36]**  | 1,262.2  **[0001558370-23-013204_ecl-20230630x10q.htm:33]**  | 1,308.7  **[0001558370-23-017421_ecl-20230930x10q.htm:43]**  | 1,295.6  **[0001558370-24-003421_ecl-20240315xex99d2.htm:0]**  | 1,270.3  **[0001558370-24-006535_ecl-20240331x10q.htm:35]**  | 1,363.9  **[0001558370-24-010647_ecl-20240630x10q.htm:25]**  | 1,403.6  **[0001558370-24-014051_ecl-20240930x10q.htm:29]**  |
| Global Healthcare & Life Sciences | N/A | 378.6  **[0001558370-23-008089_ecl-20230331x10q.htm:36]**  | 387.5  **[0001558370-23-013204_ecl-20230630x10q.htm:33]**  | 400.7  **[0001558370-23-017421_ecl-20230930x10q.htm:43]**  | 417.8  **[0001558370-24-003421_ecl-20240315xex99d2.htm:0]**  | 382.9  **[0001558370-24-006535_ecl-20240331x10q.htm:35]**  | 389.7  **[0001558370-24-010647_ecl-20240630x10q.htm:25]**  | 334.1  **[0001558370-24-014051_ecl-20240930x10q.htm:29]**  |
| Global Pest Elimination | N/A | N/A | N/A | N/A | 272.8  **[0001558370-24-003421_ecl-20240315xex99d2.htm:0]**  | 266.8  **[0001558370-24-006535_ecl-20240331x10q.htm:35]**  | 295.7  **[0001558370-24-010647_ecl-20240630x10q.htm:25]**  | 308.7  **[0001558370-24-014051_ecl-20240930x10q.htm:29]**  |
| Other/Corporate | N/A | 23.6  **[0001558370-23-008089_ecl-20230331x10q.htm:36]**  | N/A | 15.0  **[0001558370-23-017421_ecl-20230930x10q.htm:43]**  | 10.7  **[0001558370-24-003421_ecl-20240315xex99d2.htm:0]**  | 0  **[0001558370-24-006535_ecl-20240331x10q.htm:35]**  | 0  **[0001558370-24-010647_ecl-20240630x10q.htm:25]**  | 0  **[0001558370-24-014051_ecl-20240930x10q.htm:29]**  |

f08074fc08c4221df804a593a088ac83c9d5b97952127532af566ac079030157

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

93da149530d7a988344c6ea361f938f9bd5c23d77cf1b41a04f15a0670354047

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

7e0095bcdd081cd2db038a457a62e8bb0eb4a5bd06d53a10abab460512cf2e60

ac4740e108891dabff459851253fa6971f7bf9816450d6f7752dd257c7fce7ce

1. With raw material tailwinds expected to taper and raw costs stabilizing by Q4, how do you plan to sustain gross margin expansion and manage SG&A operating leverage without the benefit of favorable raw material costs?
2. Despite mentioning a rich M&A pipeline and a strong balance sheet, you've not engaged in significant acquisitions lately; can you clarify your acquisition strategy and how you intend to leverage M&A to drive growth, particularly in your focus areas of water, digital, and life sciences?
3. The Industrial segment has shown gradual improvement, but with underlying challenges such as impacts from mining and slower growth in areas like Food & Beverage and Paper, what specific steps are you taking to accelerate growth and achieve your ambitious margin targets in this segment?
4. Considering the high-tech business within your Water segment is growing around 30% and is highly profitable, how sustainable is this level of growth, and what potential risks could impact its future performance?
5. With the One Ecolab initiative aiming to capitalize on a $55 billion cross-sell opportunity, what are the key challenges you anticipate in executing this strategy, and how confident are you in realizing the projected revenue and margin improvements without incurring significant additional investments?

d62300380e9e189ece68d947b03fcfc8ff4e2376a940fe2bde264b9358b068d8

United States

- Global Industrial

- Global Institutional & Specialty

- Global Healthcare & Life Sciences

- Global Pest Elimination

- Corporate

Europe

Asia Pacific

Latin America

Greater China

India, Middle East and Africa

Canada

Total Revenue

a2f121c2548de25633e6adf6ae3696ab1d38051ec6de8920959faa989f4f8099

Global Industrial

Global Institutional & Specialty

Global Healthcare & Life Sciences

Global Pest Elimination

Other

Corporate

Upstream Energy

Product and Equipment Sales

Service and Lease Sales

55cbc68fed96dcc45948c7b80bc456b202cd712298cee812dec21af011b35003

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year 2024 Adjusted EPS**: Expected to be in the range of **$6.50 to $6.70**, representing a **25% to 29% increase** versus the previous year. This includes an unfavorable impact from the sale of their global surgical solutions business, estimated to be **$0.08 per share**, and a foreign exchange headwind anticipated to be about **$0.09 drag** to the full year EPS  **[ECL_3395026_2]** .
  2. **Organic Sales Growth**: Expected to continue at a similar rate as in the first half of the year, with **2% to 3% value pricing** and **1% to 2% volume growth**  **[ECL_3395026_2]** .
  3. **Operating Income Margin Expansion**: Expected to continue in the second half of 2024, although the rate of exceptional expansion will moderate as benefits from lower delivered product costs ease  **[ECL_3395026_2]** .
  4. **Long-term Earnings Growth Trajectory**: Aims to maintain a long-term **12% to 15% earnings growth** trajectory  **[ECL_3395026_1]** .
  5. **Institutional & Specialty Segment**: Expected to reach a **22% targeted operating income margin** for 2024, with margins remaining north of 20%  **[ECL_3395026_3]** .
  6. **Raw Material Costs**: Expected to stabilize by Q4 2024, with a return to normal inflationary levels next year  **[ECL_3395026_4]** .
  7. **Interest Expense**: Expected to be in the range of **$60 million to $70 million** in the second half of the year  **[ECL_3395026_14]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Operating Income Margin Target**: Focused on achieving a **20% operating income margin** over the next few years  **[ECL_3381532_2]** .
  2. **Earnings Per Share (EPS) Growth**: Increasing outlook for full-year 2024 adjusted EPS to the range of **$6.40 to $6.70**, representing an increase of **23% to 29%** compared to the previous year  **[ECL_3381532_2]** .
  3. **Organic Sales Growth**: Expected to remain stable, driving **2% to 3% price** and **1% to 2% volume growth**  **[ECL_3381532_2]** .
  4. **Long-term Earnings Growth Trajectory**: Remains on a long-term **12% to 15% earnings growth trajectory**  **[ECL_3381532_1]** .
  5. **Delivered Product Costs (DPC)**: Expected to ease through the year, with cost favorability diminishing from high single digits in Q1 to lower single digits by Q3  **[ECL_3381532_5]** .
  6. **Quarterly Adjusted Diluted EPS Growth**: Anticipated to progressively normalize towards the upper end of Ecolab's long-term **12% to 15% target** in the second half of 2024  **[ECL_3381532_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024 and Q1 2024
- **Guidance**:
  1. **Gross Margin and Operating Income Margin**: Aims to fully recapture its historical **44% gross margin** to reach a **20% operating income (OI) margin** target over the next few years  **[ECL_3373070_2]** .
  2. **Earnings Growth**: For 2024, expects adjusted EPS to grow in the **17% to 25% range**, assuming soft but stable macroeconomic demand and lower delivered product costs in the first half of the year as global inflation eases  **[ECL_3373070_2]** .
  3. **First Quarter 2024**: Adjusted EPS expected to increase **44% to 56%** compared to the previous year, with the benefit from lower delivered product costs peaking in this quarter  **[ECL_3373070_2]** .
  4. **Quarterly EPS Growth Beyond Q1 2024**: Expected to progressively normalize towards the upper end of Ecolab's long-term **12% to 15%** target as the favorability from lower delivered product costs eases  **[ECL_3373070_2]** .
  5. **Volume and Pricing**: Anticipates **2% plus pricing** and positive volume growth, similar to what was experienced in the fourth quarter of 2023  **[ECL_3373070_4]** .
  6. **Delivered Product Costs**: Expected to ease in the first half of 2024 and remain stable in the second half of the year  **[ECL_3373070_7]** .
  7. **Operating Income Margin Expansion**: Expects to continue robust operating income margin expansion, with a target of reaching a **20% OI margin** in the next few years  **[ECL_3373070_14]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: The documents do not contain information about Ecolab's guidance from the Q3 2024 earnings call. The available information is from the Q2 2024 earnings call. Therefore, no guidance details are available for Q3 2024.

5388a1d4bc2d0a2ad75f071f1ca29e7b232e8c726ea993afbb9430d66347dbb2

| Name                  | Position                                                      | Start Date     | Short Bio                                                                                                                                                                                                 |
|-----------------------|---------------------------------------------------------------|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Christophe Beck       | Chairman & Chief Executive Officer                            | January 2021   | Christophe Beck has been serving as CEO since January 2021 and as Chairman since May 2022. He joined Ecolab in 2007 and has held several senior leadership roles. Before Ecolab, he was a senior executive at Nestlé for 16 years  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** **[0001104659-24-035047_tm2317069d5_def14a.htm:44]** **[ECL_3408470_0]** .     |
| Scott D. Kirkland     | Chief Financial Officer                                       | January 2022   | Scott D. Kirkland has been the CFO since January 2022. Previously, he was the Senior Vice President and Corporate Controller from June 2019 to December 2021, and Senior Vice President – Finance, Global Energy Services in early 2019  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** **[0001558370-23-001969_ecl-20221231x10k.htm:22]** . |
| Darrell R. Brown      | President & Chief Operating Officer                           | October 2022   | Darrell R. Brown has been the President and COO since October 2022. He was previously the Executive Vice President and President of the Global Industrial Group from April 2019 to September 2022  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                          |
| Machiel Duijser       | Executive Vice President & Chief Supply Chain Officer         | February 2020  | Machiel Duijser has been the EVP and Chief Supply Chain Officer since February 2020. Before Ecolab, he was Chief Supply Officer at Reckitt Benckiser Group plc and worked at Amazon.com, Inc. as Vice President Worldwide Engineering  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** **[0001558370-23-001969_ecl-20221231x10k.htm:23]** **[0001558370-24-001581_ecl-20231231x10k.htm:22]** . |
| Lanesha T. Minnix     | Executive Vice President, General Counsel & Secretary         | June 2022      | Lanesha T. Minnix has been the EVP, General Counsel, and Secretary since June 2022  **[0001558370-23-001969_ecl-20221231x10k.htm:22]** .                                                                                                                                                        |
| Nicholas J. Alfano    | Executive Vice President & President, Global Industrial Group | April 2023     | Nicholas J. Alfano has been the EVP and President of the Global Industrial Group since April 2023. He previously served as EVP and General Manager for the Global Light Sector and Global Food & Beverage sector  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                           |
| Dr. Larry L. Berger   | Executive Vice President & Chief Technical Officer            | January 2019   | Dr. Larry L. Berger has been the EVP and Chief Technical Officer since January 2019  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                                                                                                                                      |
| Jennifer J. Bradway   | Senior Vice President & Corporate Controller                  | January 2022   | Jennifer J. Bradway has been the SVP and Corporate Controller since January 2022. She was previously the SVP Finance - Global Institutional and VP Finance - Institutional North America  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                                   |
| Angela M. Busch       | Executive Vice President, Corporate Strategy & Business Development | January 2019 | Angela M. Busch has been the EVP of Corporate Strategy & Business Development since January 2019  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                                                                                                                          |
| Gregory B. Cook       | Executive Vice President & President, Institutional Group     | August 2023    | Gregory B. Cook has been the EVP and President of the Institutional Group since August 2023. He previously served as EVP and General Manager for Global Institutional and Global Pest  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                                      |
| Sam De Boo            | Executive Vice President & President, Global Markets          | February 2021  | Sam De Boo has been the EVP and President of Global Markets since February 2021. He was previously EVP and President of Western Europe and SVP and General Manager for Industrial, Europe  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                                  |
| Nicolas A. Granucci   | Executive Vice President & President, Global Pest             | August 2023    | Nicolas A. Granucci has been the EVP and President of Global Pest since August 2023. He was previously SVP and General Manager for Global Pest and Institutional & Specialty Greater China  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                                 |
| Laurie M. Marsh       | Executive Vice President, Human Resources                     | January 2019   | Laurie M. Marsh has been the EVP of Human Resources since January 2019  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** **[0001558370-23-001969_ecl-20221231x10k.htm:22]** .                                                                                                                                                                 |
| Gail Peterson         | Executive Vice President, Global Marketing & Communications   | April 2022     | Gail Peterson has been the EVP of Global Marketing & Communications since April 2022. She was previously the SVP of Global Marketing & Communications and VP of Marketing for Global Healthcare  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                           |
| Gergely (GG) Sved     | Executive Vice President & President, Global Healthcare & Life Sciences | April 2022 | Gergely (GG) Sved has been the EVP and President of Global Healthcare and Life Sciences since April 2022. He was previously the SVP and General Manager of Global Healthcare  **[0001558370-24-001581_ecl-20231231x10k.htm:21]** .                                                              |

db79a9ddfe24b5c61c5635a6214508508935a71f27047a74bde9b5680d023fa9

| Program Details          | Program 1                | Program 2                |
|--------------------------|--------------------------|--------------------------|
| Approval Date            | February 24, 2015  **[0001558370-24-014051_ecl-20240930x10q.htm:62]** **[0001558370-24-014051_ecl-20240930x10q.htm:22]**  | November 3, 2022  **[0001558370-24-014051_ecl-20240930x10q.htm:62]** **[0001558370-24-014051_ecl-20240930x10q.htm:22]**   |
| End Date/Duration        | No expiration date  **[0001558370-24-014051_ecl-20240930x10q.htm:62]** **[0001558370-24-014051_ecl-20240930x10q.htm:22]** | No expiration date  **[0001558370-24-014051_ecl-20240930x10q.htm:62]** **[0001558370-24-014051_ecl-20240930x10q.htm:22]** |
| Total additional amount  | 20,000,000 shares  **[0001558370-24-014051_ecl-20240930x10q.htm:62]** **[0001558370-24-014051_ecl-20240930x10q.htm:22]**  | 10,000,000 shares  **[0001558370-24-014051_ecl-20240930x10q.htm:62]** **[0001558370-24-014051_ecl-20240930x10q.htm:22]**  |
| Remaining authorization  | 0 shares  **[0001558370-24-014051_ecl-20240930x10q.htm:62]** **[0001558370-24-014051_ecl-20240930x10q.htm:22]**           | 8,781,585 shares  **[0001558370-24-014051_ecl-20240930x10q.htm:62]** **[0001558370-24-014051_ecl-20240930x10q.htm:22]**   |
| Details                  | Offset equity dilution, manage capital structure  **[0001558370-24-014051_ecl-20240930x10q.htm:51]** **[0001558370-24-010647_ecl-20240630x10q.htm:48]**  | Offset equity dilution, manage capital structure  **[0001558370-24-014051_ecl-20240930x10q.htm:51]** **[0001558370-24-010647_ecl-20240630x10q.htm:48]**  |

021924fd2346ecb18d4a40fdf1619dd411c2efbbd9923c77bd1372341d8fc339

**Quarterly guidance for Q4 2024:**
- **SG&A ratio**: flattish versus last year's fourth quarter  **[ECL_3404386_1]**  (no prior guidance)

**Annual guidance for FY 2024:**
- **Net Operating Income (NOI) margin**: 16.5%  **[ECL_3404386_1]**  (no prior guidance)  
- **Value Pricing**: 2% to 3%  **[ECL_3404386_1]** **[ECL_3404386_11]** **[ECL_3404386_12]**  (no change from prior guidance of 2% to 3%  **[ECL_3395026_2]** )

**Annual guidance for FY 2025:**
- **Operating Income Margin**: 20%  **[ECL_3404386_1]**  (no prior guidance)  
- **Adjusted Diluted EPS Growth**: 12% to 15%  **[ECL_3404386_2]**  (no change from prior guidance of 12% to 15%  **[ECL_3395026_1]** )  
- **SG&A Productivity & Investments**: improve by 20–30 basis points per year while reinvesting 20–30 basis points  **[ECL_3404386_1]** **[ECL_3404386_17]**  (no prior guidance)

fe8ec384a5ce003999fae573f0c62f88347548372f0cada0621e8723e7c7f436

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP | 1970  **[0001558370-24-001581_ecl-20231231x10k.htm:69]**    | Present  | Current auditor   |

1d49ddc30e07464eb3dbb16e01c9218e753dd8dda6f0fba50f6637f3879c768a

c6924dc8dab8f53d8e3ad44c47df7167cc9530a9753479ab9d788ed0d5819e90

- Total Revenue: $5,742.4 million (+7% YoY)  **[0001558370-24-014051_ecl-20240930x10q.htm:26]** **[0001558370-23-017421_ecl-20230930x10q.htm:27]**   
- Europe Revenue: $1,214.6 million (+9% YoY)  **[0001558370-24-014051_ecl-20240930x10q.htm:26]** **[0001558370-23-017421_ecl-20230930x10q.htm:27]**   
- Asia Pacific Revenue: $692.9 million (+6% YoY)  **[0001558370-24-014051_ecl-20240930x10q.htm:26]** **[0001558370-23-017421_ecl-20230930x10q.htm:27]**   
- Latin America Revenue: $582.0 million (+10% YoY)  **[0001558370-24-014051_ecl-20240930x10q.htm:26]** **[0001558370-23-017421_ecl-20230930x10q.htm:27]**   
- Global Industrial: $1,993.0 million (+9% YoY)  **[0001558370-24-014051_ecl-20240930x10q.htm:29]** **[0001558370-24-014051_ecl-20240930x10q.htm:1]** **[0001558370-23-017421_ecl-20230930x10q.htm:44]**   
- Global Institutional & Specialty: $1,403.6 million (+7% YoY)  **[0001558370-24-014051_ecl-20240930x10q.htm:29]** **[0001558370-24-014051_ecl-20240930x10q.htm:1]** **[0001558370-23-017421_ecl-20230930x10q.htm:44]**   
- **Global Healthcare & Life Sciences: $334.1 million (-17% YoY)**  **[0001558370-24-014051_ecl-20240930x10q.htm:29]** **[0001558370-24-014051_ecl-20240930x10q.htm:1]** **[0001558370-23-017421_ecl-20230930x10q.htm:44]**   
- Service and Lease Sales: $842.5 million (+7% YoY)  **[0001558370-24-014051_ecl-20240930x10q.htm:29]** **[0001558370-24-014051_ecl-20240930x10q.htm:1]** **[0001558370-23-017421_ecl-20230930x10q.htm:26]**   
- **Operating Income (EBIT): $1,044.8 million (+85% YoY)**  **[0001558370-24-014051_ecl-20240930x10q.htm:1]** **[0001558370-24-014051_ecl-20240930x10q.htm:29]** **[0001558370-24-014051_ecl-20240930x10q.htm:3]** **[0001558370-23-017421_ecl-20230930x10q.htm:1]**   
- **Net Income: $736.5 million (+82% YoY)**  **[0001558370-24-014051_ecl-20240930x10q.htm:1]** **[0001558370-24-014051_ecl-20240930x10q.htm:29]** **[0001558370-24-014051_ecl-20240930x10q.htm:3]** **[0001558370-23-017421_ecl-20230930x10q.htm:1]**   
- **Diluted EPS: $2.58 (+83% YoY)**  **[0001558370-24-014051_ecl-20240930x10q.htm:1]** **[0001558370-24-014051_ecl-20240930x10q.htm:29]** **[0001558370-24-014051_ecl-20240930x10q.htm:3]** **[0001558370-23-017421_ecl-20230930x10q.htm:1]**   

7c3137504ad25633d097fea21316510983966f17d6626fd67356a4ff1bd1459a

3810ba93c0958f3f7e8d75b5d0e4c2d0d0406d1a975aa1a4e8777d3d3e59219b

| Year | Amount Due (in millions) | Debt Type                          | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|----------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | $643.0 **[0001558370-24-014051_ecl-20240930x10q.htm:12]**               | Notes payable and current maturities   | N/A                    | 8.4% = (643.0 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:12]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2025     | $634.7 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Ten-year 2015 senior notes            | N/A                    | 8.3% = (634.7 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2026     | $737.0 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Ten-year 2016 senior notes            | N/A                    | 9.7% = (737.0 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2027     | $964.5 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Two senior notes (2017 & 2021)        | N/A                    | 12.7% = (964.5 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                   |
| 2028     | $495.2 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Five-year 2022 senior notes           | N/A                    | 6.5% = (495.2 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2030     | $666.9 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Ten-year 2020 senior notes            | N/A                    | 8.8% = (666.9 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2031     | $566.8 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Ten-year 2020 senior notes            | N/A                    | 7.4% = (566.8 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2032     | $645.6 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Eleven-year 2021 senior notes         | N/A                    | 8.5% = (645.6 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2041     | $384.9 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Thirty-year 2011 senior notes         | N/A                    | 5.1% = (384.9 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2046     | $197.5 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Thirty-year 2016 senior notes         | N/A                    | 2.6% = (197.5 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2047     | $428.0 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Thirty-year 2017 senior notes         | N/A                    | 5.6% = (428.0 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2050     | $491.3 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Thirty-year 2020 senior notes         | N/A                    | 6.4% = (491.3 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |
| 2051     | $839.6 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Thirty-year 2021 senior notes         | N/A                    | 11.0% = (839.6 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                   |
| 2055     | $540.7 **[0001558370-24-014051_ecl-20240930x10q.htm:13]**               | Thirty-four-year 2021 senior notes    | N/A                    | 7.1% = (540.7 / 7,617.5) * 100 **[0001558370-24-014051_ecl-20240930x10q.htm:13]** **[0001558370-24-014051_ecl-20240930x10q.htm:50]**                                    |

49a38101e131d76575838273586b15b3bcef38f025d553b06d5153bab2706af6

a5b27e413b2c2c835953b91c1086a78acfd7db49d67cef8d99598c60d1bfc7ef

- **Ecolab expects strong growth and margin expansion in its Institutional and Specialty segment, with operating income margins expected to exceed **20%** soon, driven by market share gains and innovative solutions addressing customer needs.**  **[ECL_3381532_8]**
- **The company is investing in growth opportunities, including digital and AI technologies, and high-growth markets like data centers and semiconductors, which will drive future growth and help achieve its **20%** operating income margin target over the next few years.**  **[ECL_3381532_11]**
- **Ecolab is well-positioned to capitalize on PFAS remediation opportunities due to its technology and expertise in water purification, working closely with B2B customers to solve these challenges.**  **[ECL_3381532_12]**

f65f95fba3dec6eddb433325e42e8a49afd0d698206f9f6dab358b96fe57497b

1. **Growth Investments and 20% Margin Target**  
   **Q:** Will growth investments delay reaching 20% operating margin target?  
   **A:** Christophe Beck expressed confidence that despite increased growth investments, Ecolab will achieve the **20% operating margin** in the next few years.  **[ECL_3381532_4]**  He emphasized that the company is accelerating investments in three growth drivers—sales force expansion, digital and AI technologies, and capabilities to serve as one Ecolab—while keeping a close eye on underlying productivity.  **[ECL_3381532_4]** 

2. **Components of Growth: Pricing and Volume**  
   **Q:** Are pricing and volume growth on track amid macro conditions?  
   **A:** Beck confirmed that Ecolab is on track with **2% to 3% pricing** in 2024.  **[ECL_3381532_6]**  He is optimistic about volume growth of **1% to 2%**, driven by strong new business and investments in teams and technology.  **[ECL_3381532_6]**  He noted that macro conditions remain unpredictable but currently feels good about the outlook.  **[ECL_3381532_6]** 

3. **Surgical Divestiture Impact**  
   **Q:** What is the impact of selling the Surgical Solutions business?  
   **A:** Beck stated that the sale to Medline is a great transaction and hopes to close quickly.  **[ECL_3381532_7]**  The company will focus on building its infection prevention business with typical Ecolab models involving machines, consumables, and digital technology.  **[ECL_3381532_7]** 

4. **Timing and Areas of Investment**  
   **Q:** Where are the growth investments being focused?  
   **A:** Investments are primarily behind growth drivers such as data centers and semiconductors, digital and AI technologies, and capabilities to serve as one Ecolab.  **[ECL_3381532_11]**  Beck mentioned significant opportunities in high-tech markets and digital capabilities that offer high returns.  **[ECL_3381532_11]** 

5. **Industrial and Institutional Volume Trends**  
   **Q:** How are industrial and institutional volumes trending?  
   **A:** Overall company volume grew **2%**.  **[ECL_3381532_14]**  Institutional volumes were up around **5% to 6%**, driven by market share gains despite foot traffic not fully recovering.  **[ECL_3381532_14]**  Industrial volumes were flat but positive excluding the paper segment, indicating a good position even with soft manufacturing demand.  **[ECL_3381532_14]** 

6. **Life Sciences Business Momentum**  
   **Q:** Is the Life Sciences business gaining momentum?  
   **A:** Beck noted that the Life Sciences division is growing despite the market being down double digits.  **[ECL_3381532_10]**  The company is investing in capabilities and capacities, aiming for this business to become a multi-billion-dollar segment with margins exceeding **20%**.  **[ECL_3381532_10]** 

7. **Health Care Business Changes**  
   **Q:** Are there more structural changes after selling Surgical Solutions?  
   **A:** Beck indicated no significant additional changes.  **[ECL_3381532_7]**  The focus is on building the infection prevention business through internal innovation and potential small acquisitions, creating a great health care business over time.  **[ECL_3381532_7]** 

8. **Pest Elimination Business Strategy**  
   **Q:** What are the strategic plans for the Pest Elimination business?  
   **A:** Beck highlighted the Pest Elimination business's strong performance and plans to invest in digital capabilities.  **[ECL_3381532_9]**  The company will pursue organic growth and small bolt-on acquisitions to expand this high-growth, high-margin business.  **[ECL_3381532_9]** 

9. **DPC Cost Trends**  
   **Q:** How are Delivered Product Costs trending?  
   **A:** Scott Kirkland reported that DPC decreased in the **upper single digits** in Q1 as expected.  **[ECL_3381532_5]**  Costs are expected to continue easing but will remain high compared to pre-pandemic levels, with favorability diminishing from high single digits to lower single digits by Q3.  **[ECL_3381532_5]** 

10. **PFAS Opportunities**  
    **Q:** What is Ecolab's position on PFAS opportunities?  
    **A:** Beck stated that Ecolab is working closely with customers on PFAS purification, focusing on commercial and B2B solutions.  **[ECL_3381532_12]**  The company possesses the technology and expertise but aims to proceed safely and profitably without engaging in political fray.  **[ECL_3381532_12]** 

b324af12fe9eb87ce6a2c8b5eaf482fb03b3f9b20184ffbb8b643916f6d3c7ce

- **Delivered product costs remain significantly elevated, still 40% higher than pre-inflation levels**, and management does not expect significant cost relief in the near future.  **[ECL_3362996_7]**
- **Higher-than-expected restructuring charges in Q3**, with the restructuring program's costs extending into 2024. Additionally, there is **uncertainty regarding the capture of future productivity gains through digital technology**.  **[ECL_3362996_12]**
- The **Healthcare segment is expected to underperform in 2024**, growing below the company's average, and improving its performance will take time and work.  **[ECL_3362996_15]**

482e94221c069edda581f2ff9970e620ef873696db4db4d35499a1a64bce932d

- **The expected $140 million in annualized savings from the One Ecolab initiative are relatively small in the grand scheme and may not significantly impact the company's margin targets.**  **[ECL_3395026_16]** **[ECL_3395026_11]**
- **Raw material cost benefits are expected to diminish, with delivered product costs stabilizing and raw material inflation returning to normal levels, potentially pressuring margins.**  **[ECL_3395026_4]**
- **Increased SG&A expenses due to growth-oriented investments may limit operating leverage and margin expansion in the near term.**  **[ECL_3395026_4]**

43c62fbf6f0ed962da93969c6664572908ef9a415de7f885e982a73de0c328e2

1. **Margin Outlook**  
   **Q:** How will you reach your target of 20% operating income margin?  
   **A:** They are focused on achieving the **20% operating income margin** over the next few years, improving from the current **14%**, which is about **6 points** away.  **[ECL_3373070_14]**  By recovering 2019 gross margins through value-based pricing and volume/mix improvements, they expect to add another **200 basis points** in 2024.  **[ECL_3373070_14]**  They are confident they will reach the **20% margin** target within a few years, not taking five years to get there.  **[ECL_3373070_14]** 

2. **Pricing Strategy for 2024**  
   **Q:** What is your pricing outlook for 2024?  
   **A:** They expect pricing to be **north of 2%**, referred to as "**2-plus**," in 2024.  **[ECL_3373070_5]**  In Q4, they achieved a **5%** increase, all from new pricing realized in 2023 with no carryover.  **[ECL_3373070_5]**  Pricing discussions occur mostly in Q4 and Q1 and evolve progressively through the year without big bumps.  **[ECL_3373070_8]** 

3. **Institutional Volume Growth**  
   **Q:** Have volumes in the Institutional business accelerated?  
   **A:** Yes, volumes in the Institutional business are **clearly up**, showing great momentum despite the market being down.  **[ECL_3373070_8]**  They are driving volume growth, gaining share, securing pricing, and improving margins.  **[ECL_3373070_8]** 

4. **Delivered Product Costs Impact**  
   **Q:** What are your expectations for delivered product costs (DPC) in 2024?  
   **A:** DPC peaked mid-2023 and have been easing since then.  **[ECL_3373070_7]**  They expect DPC to continue easing in Q1 and Q2, then stabilize in the second half of 2024.  **[ECL_3373070_7]**  Their focus remains on driving **12% to 15% earnings per share growth**, with DPC benefits coming on top.  **[ECL_3373070_7]** 

5. **M&A Prospects**  
   **Q:** What are you seeing on the M&A front?  
   **A:** They have an extremely strong balance sheet and are well-positioned to pursue strategic opportunities at the right price.  **[ECL_3373070_11]**  With a rich pipeline, they are focusing on three key priorities: **water**, **life sciences**, and **digital/AI technology**, primarily in North America and Europe.  **[ECL_3373070_11]** 

6. **China Sales Growth**  
   **Q:** Can you discuss your performance in China?  
   **A:** They are in a favorable position in China, especially in the **Institutional** segment.  **[ECL_3373070_13]**  Growth has been good, and they have **very good margins** in China.  **[ECL_3373070_13]**  They serve customers seeking solutions in food safety, infection prevention, and water.  **[ECL_3373070_13]** 

7. **Cross-Selling Initiatives**  
   **Q:** How are your cross-selling initiatives progressing?  
   **A:** Cross-selling is proving effective, contributing to volume improvements.  **[ECL_3373070_16]**  Approximately **two-thirds** of sales come from cross-selling to existing customers, with the remaining one-third from new customers.  **[ECL_3373070_16]** **[ECL_3373070_17]**  They have record-level new business pipelines and are focusing on their top 35 customers to capture opportunities.  **[ECL_3373070_16]** 

8. **Cost Savings Program**  
   **Q:** How is your cost savings program progressing?  
   **A:** They are on track, having delivered **75%** of expected savings cumulatively through 2023.  **[ECL_3373070_19]**  They expect to realize the majority of the remaining savings in 2024.  **[ECL_3373070_19]**  The program has had a significant impact on Europe, Institutional, and Healthcare businesses.  **[ECL_3373070_19]** 

9. **Procurement Strategy Changes**  
   **Q:** Have you changed your procurement strategy recently?  
   **A:** Yes, they have a new Chief Procurement Officer who joined a year ago, bringing new capabilities and approaches.  **[ECL_3373070_20]**  They are reaching world-class levels and aim to capture benefits from easing DPC inflation.  **[ECL_3373070_20]**  DPC costs are still **35% up** versus pre-inflation, representing a huge opportunity.  **[ECL_3373070_20]** 

10. **Healthcare Business Update**  
    **Q:** Can you provide an update on the Healthcare business?  
    **A:** The Healthcare business is growing overall, with margins increasing significantly from a low level.  **[ECL_3373070_12]**  They have separated the surgical and infection prevention businesses and are leveraging the Institutional team's success.  **[ECL_3373070_12]**  They are committed to achieving **double-digit margins** in this business.  **[ECL_3373070_12]** 

1eecd1b18f8f14a0084b13de9b8ecc7f6e96839dc6e8a5bf252893c7e0ba2dd1

- **Ecolab's data center business is growing at over 30% and accelerating**, driven by exponential cloud usage requiring more computing power in areas with limited water resources. Ecolab's expertise in increasing capacity, reducing water consumption, and ensuring near 100% uptime positions it strongly in this market.  **[ECL_3362996_18]**
- **Ecolab is gaining market share across key segments**, with **Institutional up 12% in a flat market** and **Pest Elimination growing double digits** while competitors are growing single digits or declining. This indicates strong performance against peers and ability to grow despite challenging markets.  **[ECL_3362996_13]**
- **Ecolab's Institutional segment achieved a 19% operating income margin in Q3 2023** and the company is confident in reaching pre-pandemic margins of **20-21%** in the next few years, driven by new business innovation, pricing, organizational advantages, and leveraging digital technology. This signals strong future profitability in one of the company's core businesses.

123dd199e7dae8bde4a47e39eefd38abbf97591805b154a04e6e24cf2cee3c7e

- Ecolab's operating income margin remains significantly below its pre-pandemic levels and target, finishing 2023 at **14%**, which is **6 percentage points** short of the **20% OI margin** goal, indicating challenges in reaching desired profitability levels.  **[ECL_3373070_14]**
- The company's European operations are a drag on overall volume growth; while fourth-quarter volume growth was **up 1%**, it would have been **up 3%** excluding Europe, highlighting underperformance in that region which may continue to hinder growth.  **[ECL_3373070_3]**
- The substantial benefit from lower Delivered Product Costs (**DPC**) is expected to peak in the first half of 2024, with DPC still **up 35%** versus pre-inflation levels, suggesting that earnings tailwinds may diminish and potentially impact margins in the latter half of the year.  **[ECL_3373070_7]** **[ECL_3373070_10]** **[ECL_3373070_20]**

3a5d398c19461bb8f5018042da5a373a5980135dc4c9ee5caed7fb5062fed57a

- **Industrial volumes were flat in Q1 2024**, with growth only when excluding the weak paper industry demand, indicating potential challenges in the industrial segment.  **[ECL_3381532_15]**
- **The benefit from lower delivered product costs (DPC) is expected to diminish from high single digits in Q1 to lower single digits by Q3 2024**, and commodity costs remain high versus pre-pandemic levels, which may pressure margins in upcoming quarters.  **[ECL_3381532_5]**
- **Increased SG&A investments may delay the achievement of the 20% operating income margin target**, as the company focuses on growth investments rather than immediate margin expansion.  **[ECL_3381532_8]**

b6766741b0531440a1ebfa63e33e207fbc07e525cc7dd578a6513ccbeac02ea3

- **Accelerated volume growth in the Institutional business**, with volumes increasing despite soft macroeconomic demand, driven by strong new business wins and share gains.  **[ECL_3373070_8]** **[ECL_3373070_17]**
- **Confidence in achieving the 20% operating income margin target** over the next few years, supported by value-based pricing, volume growth, and productivity improvements.  **[ECL_3373070_14]**
- **Strong growth in China and Asia**, particularly in the Institutional segment, indicating robust performance in key growth markets.  **[ECL_3373070_13]**

1d7621e273caf24b3a5308108c3137748ab42876327b7dbbcad684536fa4ae9f

1. **Margin Outlook**  
   **Q:** When will you achieve the 20% EBIT margin target?  
   **A:** We expect to reach the **20%** EBIT margin within the next few years—less than five—and we're feeling more confident with progress in gross margins near **44%** and SG&A improvements. This will mathematically lead us to the 20% fairly soon.  **[ECL_3395026_16]** 

2. **EPS Guidance**  
   **Q:** Why doesn't normal EPS seasonality apply this year?  
   **A:** Due to the **$0.08** headwind from the surgical divestiture and additional FX impacts, as well as easing DPC tailwinds, our EPS growth won't follow typical patterns. However, we're still driving strong earnings growth at the high end of our **12%–15%** long-term range.  **[ECL_3395026_7]** 

3. **One Ecolab Initiative**  
   **Q:** How does One Ecolab impact growth and margins?  
   **A:** One Ecolab is a growth-focused initiative aiming to fuel **5%–7%** top-line growth by leveraging a **$55 billion** cross-sell opportunity, especially with our top 35 customers worth **$3 billion**. It will enhance productivity and support reaching the **20%** OI margin target. Investments are planned and included in our numbers.  **[ECL_3395026_5]** **[ECL_3395026_11]** 

4. **Raw Material Costs**  
   **Q:** What are raw material tailwinds in the second half?  
   **A:** We saw high single-digit favorability in Q2 but expect it to taper to low to mid-single digits in Q3, with raws stabilizing by Q4 and returning to normal inflationary levels next year.  **[ECL_3395026_4]** 

5. **Volume Growth**  
   **Q:** How should we think about volume growth going forward?  
   **A:** Volume growth slowed to **1%** due to tough comps in Institutional, which had **13%** growth last year. We anticipate overall growth in the **1%–2%** range in the second half, moving naturally from **4%–5%** this year toward **5%–7%**.  **[ECL_3395026_10]** **[ECL_3395026_14]** 

6. **Industrial Segment Outlook**  
   **Q:** What's the outlook for the Industrial segment and margins?  
   **A:** Industrial is improving with margins at **16%**, up **200 basis points** from 2019. We aim to reach **18%** margins en route to the **20%** company target, driven by Water at **4%** growth (stronger when adjusted for mining impacts) and strong performance in Global High-Tech.  **[ECL_3395026_9]** **[ECL_3395026_10]** 

7. **Institutional Growth Drivers**  
   **Q:** What's driving outperformance in Institutional and Specialty?  
   **A:** We're gaining market share by providing automation solutions that address labor shortages, enabling customers to serve more with less labor. This unique offering drives growth at higher margins and is something competitors can't match.  **[ECL_3395026_3]** **[ECL_3395026_8]** 

8. **Pest Elimination Outlook**  
   **Q:** When will Pest Elimination show meaningful sales leverage?  
   **A:** Pest Elimination is steadily growing at high single to low double digits. By investing in connected devices and cross-selling, we aim to surpass **20%** margins, driving top-line and earnings growth with the highest return on invested capital in the company.  **[ECL_3395026_17]** 

9. **M&A Outlook**  
   **Q:** How are you evaluating the acquisition pipeline?  
   **A:** Our M&A pipeline is rich and focused on Water, Digital, and Life Sciences. With a strong balance sheet and after integrating Purolite and reducing leverage, we're well-positioned to pursue opportunities that align with our key priorities.  **[ECL_3395026_12]** 

10. **Divestitures**  
    **Q:** Are further divestitures planned after selling Healthcare Surgical?  
    **A:** No further divestitures are planned. We regularly review our portfolio, but no other businesses currently stand out as candidates. We value the broad-based performance across our businesses and markets.  **[ECL_3395026_13]** 

11. **Interest Expense Details**  
    **Q:** Why did interest expense rise despite stable debt levels?  
    **A:** Interest expense increased due to reduced cash balances, from over **$900 million** at year-end 2023 to about **$380 million** by end of Q2, which we used to pay down debt earlier in the year. We expect second-half interest expense to be in the **$60–$70 million** range.  **[ECL_3395026_14]** 

12. **Water Business Opportunities**  
    **Q:** What are the long-term opportunities in the Water business?  
    **A:** We're focusing on 150 companies that consume one-third of global freshwater, aligning with our top 35 customers. This approach drives our Water business acceleration. Additionally, PFAS regulations present a future business opportunity, especially with Food & Beverage customers, though meaningful impact will take time.  **[ECL_3395026_15]** 

13. **High-Tech Water Growth**  
    **Q:** Can you elaborate on growth in the high-tech Water segment?  
    **A:** Our high-tech Water business, a few hundred million dollars in size, grew roughly **30%** last year. Serving semiconductor manufacturers and data center operators, this highly profitable segment continues to improve due to customers prioritizing uptime and reduced water and energy usage over cost.  **[ECL_3395026_19]** 

14. **One Ecolab vs. Past Initiatives**  
    **Q:** How is One Ecolab different from previous programs?  
    **A:** Unlike prior initiatives focused on individual businesses or back-office efficiencies, One Ecolab connects all businesses to present a unified value to customers. It leverages company-wide expertise to enhance customer performance and drives growth across all segments.  **[ECL_3395026_18]** 

15. **No Further Divestitures**  
    **Q:** Are more business exits expected after Healthcare Surgical?  
    **A:** Currently, there are no plans for additional divestitures. We continually assess our portfolio but see no obvious candidates that don't align with our strategy or performance expectations.  **[ECL_3395026_13]** 

dd23c95837b18dd99fc71dee5658ecc1adbefc9837c39e896a7bc99561d61ee3

- Ecolab's **Institutional & Specialty segment is performing exceptionally well**, delivering **7% growth** despite a market where food traffic is down 4%, with **operating margins north of 20%** and targeting **22% OI margin for 2024**, expected to keep improving.  **[ECL_3395026_3]**
- The **One Ecolab initiative is a growth-focused strategy** aiming to help fuel **5%-7% long-term organic sales growth** and expand operating margins towards **20% and beyond**, by leveraging Ecolab's complete offering to deliver best-in-class performance for customers.  **[ECL_3395026_5]** ,  **[ECL_3395026_18]** ,  **[ECL_3395026_11]**
- Management is **confident in achieving the 20% operating income margin target within a few years**, possibly sooner, driven by continued top-line acceleration, gross margin improvements, and productivity enhancements, with **no direct correlation to One Ecolab savings** as it is primarily a growth initiative.  **[ECL_3395026_16]**

4a8addcfc3da75f98a601f6e22554d5f7a55c2ddaf3e5b97cee3e6b9c2d6a924

1. **Margin Expansion Amid Inflation Normalization**  
   **Q:** How will margins evolve as inflation normalizes and DPC deflation tailwinds fade?  
   **A:** Christophe Beck expressed confidence in delivering **12% to 15% EPS growth** in 2025 and beyond, even as delivered product costs (DPC) return to normal inflationary levels. He emphasized focusing on volume growth, maintaining value pricing, and improving SG&A productivity by **20 to 30 basis points annually** while continuing to invest, leading to achieving the **20% operating income margin** over the next **three years**.  **[ECL_3404386_4]** 

2. **Volume Growth Outlook**  
   **Q:** How are volumes trending into the fourth quarter and what's driving growth?  
   **A:** Christophe Beck is pleased with the **2% volume growth** delivered in Q3, up from **1% in the previous quarter**. He noted that growth is broad-based, particularly in Institutional and Specialty, which are gaining share in declining markets. Despite Europe being flat, Ecolab achieved **4% organic growth**, with strong performance outside Europe demonstrating robust growth momentum.  **[ECL_3404386_3]** 

3. **Achieving 5%-7% Revenue Growth Target**  
   **Q:** How will Ecolab reach its 5%-7% revenue growth target amid declining raw material costs?  
   **A:** Christophe Beck aims to reach the targeted growth by balancing volume and value pricing. He sees **2%-3% value pricing** as the "sweet spot" and emphasizes opportunities from a **$55 billion** penetration potential, new growth engines, breakthrough innovations, and digital offerings to accelerate towards the **5%-7%** range.  **[ECL_3404386_11]** 

4. **Value Pricing Expectations**  
   **Q:** What is the outlook for value pricing next year—closer to 2% or 3%?  
   **A:** Christophe Beck expects value pricing to remain between **2% and 3%**, noting this range as effective and sustainable. He highlighted that in Q3, value pricing was **2%**, the lowest quarter due to seasonal factors, and expressed confidence in maintaining this strategy by delivering total value to customers.  **[ECL_3404386_12]** 

5. **Growth in Electronics and Data Centers**  
   **Q:** How is growth in electronics and data centers expected over the next 12-24 months?  
   **A:** Christophe Beck sees significant growth opportunities in both existing and new data centers and microelectronics facilities. He noted that AI's expansion will increase electricity usage from **4% to 10%-15%** of U.S. power by **2030** and water needs equivalent to the drinking water for India over **five years**. Ecolab is investing in technologies to help customers reduce water and power usage, improve uptime, and lower costs, positioning this as a major growth driver.  **[ECL_3404386_7]** 

6. **Progress on One Ecolab Initiative**  
   **Q:** How is the One Ecolab initiative progressing, and what's the customer feedback?  
   **A:** The One Ecolab program focuses on accelerating towards **5%-7% sales growth** by leveraging teams and focusing on the top **35 customers**. Early feedback has been positive, with customers appreciating the comprehensive approach that identifies potential savings and performance improvements across all units, leading to operational savings and growth for Ecolab.  **[ECL_3404386_9]** 

7. **Pest Elimination Business Performance**  
   **Q:** What is driving growth and margin outlook for the pest elimination business?  
   **A:** Christophe Beck described pest elimination as a **high-margin**, high-growth business with **high single-digit organic growth** and excellent return on invested capital. The company is investing in innovation, such as pest intelligence technologies, expanding the sales force, and making bolt-on acquisitions, which may impact margins short term but are expected to deliver strong long-term returns.  **[ECL_3404386_10]** 

8. **Market Share Gains and Growth**  
   **Q:** How are market share gains progressing—through new business wins or increased wallet share?  
   **A:** Christophe Beck indicated that both new business wins and increased share of wallet are driving market share gains. He highlighted a **$55 billion** penetration opportunity within existing customers and noted that strong innovation and record levels of new business are supporting ongoing growth momentum.  **[ECL_3404386_21]** 

9. **Healthcare and Life Sciences Outlook**  
   **Q:** What are the growth and margin prospects for Healthcare and Life Sciences post-divestiture?  
   **A:** Christophe Beck explained that Healthcare is becoming a smaller, quality-focused business, expected to grow at **low to mid-single digits**, with an emphasis on margin improvement. Life Sciences is viewed as a significant growth area, aiming to become a multibillion-dollar business with margins in the **30% range**, driven by investments in capacity, capability, and technology.  **[ECL_3404386_18]** 

10. **Impact of Lower Oil Prices on Pricing Ability**  
    **Q:** Will lower oil prices affect Ecolab's ability to raise prices?  
    **A:** Christophe Beck believes that even with lower raw material costs, Ecolab can continue delivering strong value pricing by focusing on total value delivered (TVD) to customers. He cited past performance over the last **12 to 18 months**, where despite tailwinds from raw material costs, the company maintained strong value pricing, suggesting confidence in sustaining this strategy.  **[ECL_3404386_22]** 

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Ecolab Inc (ECL)

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