UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $1.00 par value 2.625% Euro Notes due 2025 1.000% Euro Notes due 2024 ECL ECL 25 ECL 24 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the ...

Ecolab Inc. (NYSE:ECL) Q1 2022 Earnings Conference Call April 26, 2022 1:00 PM ET Company Participants Mike Monahan - Senior Vice President, External Relations Christophe Beck - CEO Scott Kirkland - CFO Conference Call Participants Tim Mulrooney - William Blair David Begleiter - Deutsche Bank Manav Patnaik - Barclays Steve Byrne - Bank of America Ashish Sabadra - RBC Capital Markets Chris Parkinson - Mizuho Josh Spector - UBS Vincent Andrews - Morgan Stanley Scott Schneeberger - Oppenheimer Kevin McCarthy - ...

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Ecolab is a global leader in water, hygiene, and infection prevention solutions, with **$12.7 billion** in 2021 sales, operating across three segments and recently acquiring Purolite - In 2021, Ecolab reported sales of **$12.7 billion**, positioning itself as a global leader in water, hygiene, and infection prevention solutions and services across food, healthcare, hospitality, and industrial markets in over 170 countries[9](index=9&type=chunk) - On December 1, 2021, the company acquired Purolite for **$3.7 billion** in cash. Purolite is a global provider of high-end ion exchange resins for life sciences and industrial markets and is reported within the Life Sciences operating segment[8](index=8&type=chunk) - The company completed the separation of its Upstream Energy business (ChampionX) in June 2020. The historical results of ChampionX are now reported as discontinued operations[8](index=8&type=chunk) - Ecolab's business is organized into three reportable segments: Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences, along with an "Other" category[11](index=11&type=chunk) - As of December 31, 2021, Ecolab employed approximately **47,000** people, with **42%** in North America. The company has set 2030 goals to increase management-level gender diversity to **35%** and ethnic/racial diversity in the U.S. to **25%**[38](index=38&type=chunk) [Business Segments](index=6&type=section&id=Business%20Segments) Ecolab's business is organized into three main reportable segments and an "Other" category, each serving distinct markets with specialized solutions - **Global Industrial:** Consists of Water, Food & Beverage, Downstream, and Paper operating segments, serving large industrial customers with water treatment, process applications, and cleaning solutions[12](index=12&type=chunk) - **Global Institutional & Specialty:** Comprises Institutional and Specialty operating segments, providing cleaning and sanitizing products to foodservice, hospitality, lodging, government, education, and retail industries[18](index=18&type=chunk) - **Global Healthcare & Life Sciences:** Includes Healthcare and Life Sciences operating segments, offering infection prevention and contamination control solutions to healthcare, personal care, and pharmaceutical sectors. The recent Purolite acquisition enhances this segment's capabilities in biopharma purification[23](index=23&type=chunk)[25](index=25&type=chunk) - **Other:** Comprises Pest Elimination, Textile Care, and Colloidal Technologies Group operating segments[28](index=28&type=chunk) [Additional Business Information](index=12&type=section&id=Additional%20Business%20Information) Ecolab operates globally, relies on a direct sales force, differentiates through innovation, and holds key intellectual property, with warewashing products being a significant sales category - The company's business is not materially dependent on a single customer. Sales of warewashing products accounted for approximately **10%** of consolidated net sales in 2021, down from **13%** in 2019[36](index=36&type=chunk) - Key intellectual property includes patents related to TRASAR and 3D TRASAR technology (protected until at least **2024**) and the Ecolab, Nalco, and 3D TRASAR trademarks, which are material to all segments[40](index=40&type=chunk) - Raw materials are generally available from a diverse group of global suppliers, with the largest single raw material representing less than **4%** of total raw material purchases[44](index=44&type=chunk) [Environmental and Regulatory Considerations](index=15&type=section&id=Environmental%20and%20Regulatory%20Considerations) Ecolab's operations are subject to extensive global environmental and product regulations, with the company committed to ambitious climate goals and having accrued **$6.0 million** for future remediation expenditures - The company is subject to various chemical and product regulations, including the Toxic Substances Control Act (TSCA) in the U.S. and the Registration, Evaluation and Authorization of Chemicals (REACH) framework in the E.U[48](index=48&type=chunk) - Ecolab has set climate goals aligned with the UN's Business Ambition for 1.5°C, aiming to halve GHG emissions by **2030**, achieve net-zero by **2050**, and move to **100%** renewable energy by **2030**[52](index=52&type=chunk) - Capital expenditures for environmental, health, and safety projects were approximately **$28 million** in 2021, with a budget of approximately **$50 million** for 2022[52](index=52&type=chunk) - As of December 31, 2021, the company accrued approximately **$6.0 million** for probable future remediation expenditures related to waste disposal site clean-up activities[54](index=54&type=chunk) [Item 1A. Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) Ecolab faces various economic, operational, strategic, legal, regulatory, and financial risks that could materially impact its business and financial performance - **Economic & Operational Risks:** The COVID-19 pandemic continues to pose a risk through supply chain disruptions, labor shortages, and uncertain customer demand, particularly in the restaurant and hospitality sectors[64](index=64&type=chunk) - **Strategic Risks:** The company's growth depends on successful competition, innovation, and the ability to integrate acquisitions. Failure to realize anticipated benefits from the Purolite acquisition or execute key initiatives like ERP upgrades could adversely affect results[75](index=75&type=chunk) - **Legal, Regulatory & Compliance Risks:** The business is subject to numerous environmental, health, and safety laws. Changes in these regulations, potential litigation (such as from chemical spills), or failure to comply could lead to significant financial liability[77](index=77&type=chunk)[78](index=78&type=chunk) - **Financial Risks:** The company had approximately **$8.8 billion** in outstanding indebtedness as of December 31, 2021, which could limit operational flexibility. It also faces risks from potential changes in tax laws and the possibility of goodwill impairment, which stood at **$8.1 billion**[82](index=82&type=chunk)[86](index=86&type=chunk) [Item 1B. Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved comments from the staff of the Securities and Exchange Commission - There are no unresolved staff comments from the SEC[87](index=87&type=chunk) [Item 2. Properties](index=36&type=section&id=Item%202.%20Properties) Ecolab manufactures most products in-house at its global network of owned and leased facilities, including significant manufacturing plants, distribution centers, research centers, and corporate headquarters - The company's manufacturing philosophy is to produce products in-house where an economic, process, or quality advantage exists. Most products sold are manufactured at company facilities[88](index=88&type=chunk) - Corporate headquarters are located in a company-owned building in St. Paul, Minnesota, with a significant research, data, and training campus in Eagan, Minnesota[95](index=95&type=chunk) - Significant manufacturing facilities are located globally, including large plants in Joliet, IL (USA); Tai Cang, CHINA; Sainghin, FRANCE; and Asheville, NC (USA)[89](index=89&type=chunk) [Item 3. Legal Proceedings](index=40&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from other sections of the report, specifically Note 16, "Commitments and Contingencies," in Part II, Item 8, and the "Environmental and Regulatory Considerations" section in Part I, Item 1 - Details on legal proceedings are cross-referenced to Note 16 of the financial statements and the environmental discussion in Item 1[96](index=96&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - No mine safety disclosures are applicable[97](index=97&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=42&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Ecolab's common stock trades on the NYSE under "ECL," with **5,185** record holders as of January 2022, and the company repurchased **134,991** shares in Q4 2021 - The company's common stock trades on the NYSE under the symbol ECL[100](index=100&type=chunk) Q4 2021 Share Repurchase Activity | Period | Total shares purchased | Average price paid per share | | :--- | :--- | :--- | | October 1-31, 2021 | 129,385 | $212.9777 | | November 1-30, 2021 | 1,658 | $227.1901 | | December 1-31, 2021 | 3,948 | $221.9420 | | **Total Q4 2021** | **134,991** | **$213.4145** | - As of December 31, 2021, **5,850,187** shares remained available for purchase under the company's publicly announced repurchase plan[101](index=101&type=chunk)[104](index=104&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Ecolab's 2021 performance saw **8%** sales growth to **$12.7 billion** and **15%** operating income growth to **$1.6 billion**, despite cost inflation, supported by strong cash flow and a **6%** dividend increase Key Financial Highlights | Metric | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Reported Sales | $12.7B | $11.8B | 8% | | Reported Operating Income | $1.6B | $1.4B | 15% | | Adjusted Diluted EPS | $4.69 | $4.02 | 17% | | Cash Flow from Operations | $2.1B | $1.7B | 23% | - Strong sales performance was driven by double-digit growth in Institutional & Specialty and Other segments, along with strong Industrial segment growth, which more than offset a decline in the Healthcare & Life Sciences segment against a very strong prior year[112](index=112&type=chunk) - Profitability was impacted by significantly higher delivered product costs and supply constraints, including disruptions from the Texas Freeze and Hurricane Ida[112](index=112&type=chunk)[143](index=143&type=chunk) - The company increased its quarterly cash dividend by **6%** in December 2021, marking its **30th** consecutive annual dividend rate increase and **85th** consecutive year of paying dividends[120](index=120&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) In 2021, reported net sales grew **8%** to **$12.7 billion**, driven by volume and price, though gross margin declined due to higher product costs, while operating income increased **15%** despite **$266.8 million** in special charges Sales Change Components (2021 vs 2020) | Year-over-Year Sales Change Components (2021 vs 2020) | | |:---|:---| | Volume | 3% | | Price changes | 2% | | **Acquisition adjusted fixed currency sales change** | **5%** | | Acquisitions & divestitures | 1% | | Foreign currency translation | 2% | | **Reported GAAP net sales change** | **8%** | - Adjusted gross margin decreased from **41.8%** in 2020 to **40.9%** in 2021, as increased pricing and higher volumes were more than offset by significantly higher delivered product costs and supply constraints[143](index=143&type=chunk) - The SG&A ratio decreased from **28.1%** in 2020 to **26.8%** in 2021, driven by higher sales, cost savings, and lower bad debt, which offset higher variable compensation[144](index=144&type=chunk) - Total special (gains) and charges were **$266.8 million** in 2021, primarily related to COVID-19 activities (**$107.1 million**), restructuring (**$36.6 million**), acquisition/integration costs (**$34.1 million**), and debt refinancing (**$32.3 million**)[145](index=145&type=chunk)[153](index=153&type=chunk)[148](index=148&type=chunk)[151](index=151&type=chunk)[159](index=159&type=chunk) [Segment Performance](index=63&type=section&id=Segment%20Performance) In 2021, Global Institutional & Specialty and Other segments showed strong sales and operating income growth, while Global Industrial sales increased but income declined due to costs, and Healthcare & Life Sciences saw declines against a strong prior year Segment Performance (Fixed Currency, 2021) | Segment (Fixed Currency) | 2021 Sales % Change | 2021 Operating Income % Change | | :--- | :--- | :--- | | Global Industrial | 4% | (8)% | | Global Institutional & Specialty | 10% | 72% | | Global Healthcare & Life Sciences | (4)% | (26)% | | Other | 11% | 41% | - **Global Industrial:** Operating income margin decreased as accelerating pricing was more than offset by significantly higher delivered product costs and supply constraints from events like the Texas Freeze and Hurricane Ida[179](index=179&type=chunk) - **Global Institutional & Specialty:** Strong recovery driven by reopening markets, new business from Ecolab Science Certified programs, and accelerating pricing[182](index=182&type=chunk) - **Global Healthcare & Life Sciences:** Sales and income declined compared to a strong 2020 that benefited from extraordinary COVID-19 related demand for hand and surface disinfection products[188](index=188&type=chunk)[189](index=189&type=chunk) [Financial Position, Cash Flow and Liquidity](index=69&type=section&id=Financial%20Position%2C%20Cash%20Flow%20and%20Liquidity) As of December 31, 2021, Ecolab's total assets were **$21.2 billion** with total debt at **$8.8 billion** (net debt to EBITDA **3.4x**), while generating **$2.1 billion** in operating cash flow and using **$4.6 billion** for investing activities, primarily the Purolite acquisition Financial Position Summary | Metric | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Assets | $21.2 B | $18.1 B | | Total Debt | $8.8 B | $6.7 B | | Net Debt to EBITDA | 3.4x | 2.4x | Cash Flow Summary (2021) | Cash Flow Activity (2021) | Amount | | :--- | :--- | | Cash from Operating Activities | $2,061.9 M | | Cash used for Investing Activities | ($4,579.7 M) | | Cash from Financing Activities | $1,603.2 M | - The increase in cash from operations was primarily driven by higher net income and accruals for variable compensation[199](index=199&type=chunk) - The company maintains a **$2.0 billion** multi-year credit facility expiring in April 2026, which supports its commercial paper programs[204](index=204&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=75&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section incorporates by reference the discussions under the headings "Market Risk" and "Global Economic and Political Environment" from Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Information regarding market risk is incorporated by reference from Item 7 of the Form 10-K[216](index=216&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=75&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Ecolab's consolidated financial statements, management's report on internal controls (excluding Purolite), and the auditor's report, which highlights critical audit matters related to goodwill impairment and the Purolite acquisition's intangible asset valuation - Management's report asserts that the company's internal control over financial reporting was effective as of December 31, 2021. The assessment excluded the Purolite acquisition, which was completed on December 1, 2021[218](index=218&type=chunk) - The independent auditor, PricewaterhouseCoopers LLP, identified two Critical Audit Matters: (1) the goodwill impairment assessment of the Downstream reporting unit due to significant management judgment, and (2) the valuation of the U.S. customer relationships intangible asset from the Purolite acquisition, also due to significant management judgment and complex assumptions[227](index=227&type=chunk)[229](index=229&type=chunk)[232](index=232&type=chunk) - Note 4 details the preliminary purchase price allocation for the **$3.7 billion** Purolite acquisition, which resulted in **$2.0 billion** of goodwill and **$1.4 billion** of identifiable intangible assets[310](index=310&type=chunk)[312](index=312&type=chunk) - Note 5 provides details on the separation of the ChampionX business, which was accounted for as a sale and resulted in a pre-tax loss on separation of **$2.14 billion** in 2020, now classified under discontinued operations[323](index=323&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=148&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles or practices, or financial statement disclosure - None reported[443](index=443&type=chunk) [Item 9A. Controls and Procedures](index=148&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2021, with no material changes except for the Purolite acquisition, while ongoing ERP upgrades are expected to impact internal controls - Management concluded that disclosure controls and procedures were effective as of December 31, 2021[444](index=444&type=chunk) - The company is in the process of a multi-year ERP system upgrade which is expected to impact internal controls over financial reporting[446](index=446&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=149&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, corporate governance, the audit committee, and the code of conduct is incorporated by reference from the company's definitive Proxy Statement for the 2022 Annual Meeting of Stockholders. Information about executive officers is presented in Part I, Item 1 of this Form 10-K - Most information required under this item is incorporated by reference from the company's Proxy Statement[453](index=453&type=chunk) [Item 11. Executive Compensation](index=149&type=section&id=Item%2011.%20Executive%20Compensation) All information related to executive and director compensation, including the Compensation Discussion and Analysis, compensation tables, and potential payments upon termination, is incorporated by reference from the company's 2022 Proxy Statement - All information required under this item is incorporated by reference from the company's Proxy Statement[454](index=454&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=150&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership by certain beneficial owners and management is incorporated by reference from the company's 2022 Proxy Statement. The company provides a table detailing its equity compensation plan information as of year-end 2021, showing securities to be issued upon exercise of outstanding options and securities available for future issuance Equity Compensation Plan Information (as of Dec 31, 2021) | Plan Category | Securities to be issued upon exercise (a) | Weighted avg. exercise price (b) | Securities remaining for future issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 7,450,107 | $160.91 | 7,544,458 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=150&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related person transactions and director independence standards is incorporated by reference from the company's 2022 Proxy Statement - All information required under this item is incorporated by reference from the company's Proxy Statement[459](index=459&type=chunk) [Item 14. Principal Accounting Fees and Services](index=150&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding fees paid to the principal accountant and the services rendered is incorporated by reference from the "Audit Fees" section of the company's 2022 Proxy Statement - All information required under this item is incorporated by reference from the company's Proxy Statement[460](index=460&type=chunk) Part IV [Item 15. Exhibit and Financial Statement Schedules](index=151&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section provides a comprehensive list of all financial statements, schedules, and exhibits filed as part of the Form 10-K report, including the consolidated financial statements and auditor's report - This section contains the list of all financial statements and exhibits filed with the Form 10-K[469](index=469&type=chunk) - Financial statement schedules have been omitted because they are not applicable or the information is already included in the consolidated financial statements or notes[465](index=465&type=chunk) [Item 16. Form 10-K Summary](index=162&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[493](index=493&type=chunk)

Financial Data and Key Metrics Changes - The fourth quarter sales showed strong performance driven by accelerated pricing, business wins, and product innovation, with a top line momentum of 10% or 9% organic growth [4][8] - The company experienced a significant estimated 20% year-on-year increase in delivered product costs and supply constraints in the quarter [4][9] - Full year pricing expectation for 2022 is projected to be in the 5% to 6% range, with strong top line and adjusted earnings growth anticipated in the low teens for the full year [12][36] Business Line Data and Key Metrics Changes - Institutional & Specialty segment grew by 19%, Pest Elimination by 10%, and Industrial segment by 8% in the fourth quarter [8] - The company reported a 10% increase in sanitizing sales compared to 2019, indicating a sustained elevated demand for hygiene solutions [20][21] - The Industrial business maintained margin stability compared to other segments, attributed to the differing impacts of raw materials and freight costs [80] Market Data and Key Metrics Changes - The company expects the global economy to remain strong, with inflation anticipated to remain high at least for the first half of 2022 before easing in the second half [10][11] - The market for Ecolab's services is projected to exceed $150 billion and is growing rapidly, with a focus on sustainability and infection prevention [13][14] Company Strategy and Development Direction - Ecolab is focusing on growth through new business wins, innovation pipelines, and enhancing digital capabilities to drive competitive advantage [6][11] - The company aims to leverage its Ecolab Science Certified and Net Zero programs to differentiate its value proposition and create better customer outcomes [5][14] - The strategy includes addressing inflation through productivity enhancements and value pricing, with expectations of margin improvement in the second half of 2022 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic global environment and emphasized the importance of protecting customer operations [10][14] - The expectation is that the impact of COVID will largely be behind by mid-2022, with a focus on institutional recovery and investment in new growth engines [10][11] - Management highlighted the importance of maintaining a strong talent pool and enhancing productivity through digital automation [33][35] Other Important Information - The company is open to considering M&A opportunities, particularly in high-margin and fast-growing segments [22][52] - Ecolab's capital expenditure is expected to return to historical trends around 6% of sales as customer demand rebounds [58] Q&A Session Summary Question: Raw material cost inflation in 2021 and expectations for 2022 - Raw material inflation was approximately 10% for 2021, spiking to 20% in Q4, with expectations for 2022 to remain high in the first half before easing [16][36] Question: Expectations for gross margin expansion - Management expects to return to pre-inflation gross margin levels over time, with improvements anticipated in the second half of 2022 [17][18] Question: Long-term growth trajectory and hygiene theme - Sanitizing sales in 2021 saw close to double-digit growth compared to 2019, with expectations to remain elevated [20][21] Question: Market share gains and competitive environment - The company is gaining market share across various segments, with strong growth in institutional and industrial businesses [28][29] Question: Impact of inflation on margins - The share of raw materials and freight costs varies by business, affecting margins differently across segments [80] Question: Performance outlook for healthcare and Life Sciences - The company expects steady growth momentum in healthcare and Life Sciences, with EPS growth anticipated in the low teens for 2022 [42] Question: Impact of Russia and Ukraine on business - The business impact from these regions is minimal, accounting for less than 0.5% of total company revenue [72] Question: Institutional business performance and recovery timeline - The institutional business is expected to recover, with management confident in regaining pre-COVID performance levels [82]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-9328 ECOLAB INC. (Exact name of registrant as specified in its charter) Delaware 41-0231510 (State or other jurisdiction of (I.R. ...

Ecolab Inc. (NYSE:ECL) Q3 2021 Earnings Conference Call October 26, 2021 1:00 PM ET Company Participants Christophe Beck – Chief Executive Officer Michael Monahan – Senior VP External Relations for Ecolab Dan Schmechel – CFO Conference Call Participants Tim Mulrooney – William Blair Manav Patnaik – Barclays David Begleiter – Deutsche Bank John McNulty – BMO Capital Markets Christopher Parkinson – Mizuho John Roberts – UBS Gary Bisbee – Bank of America Vincent Andrews – Morgan Stanley Daniel Rizzo – Jefferie ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-9328 ECOLAB INC. (Exact name of registrant as specified in its charter) Delaware 41-0231510 (State or other jurisdiction of (I.R.S. Em ...

Financial Data and Key Metrics Changes - Ecolab reported acquisition adjusted sales rose by 12% year-on-year, with adjusted earnings per share increasing by 88% compared to the previous year [7][4] - Overall margins improved by 420 basis points [10] - The company expects adjusted earnings for the full year to exceed 2019 levels, excluding the Texas freeze impact [11] Business Line Data and Key Metrics Changes - U.S. institutional sales more than doubled compared to Q2 2020, significantly outperforming the industry [7] - Water sales increased by 7%, with light industries up 12%, driven by strong momentum in new segments like data centers, which grew by 53% [9] - Healthcare and Life Sciences experienced mid-single and double-digit growth, respectively, despite reported sales being down due to exceptional growth in 2020 [10] Market Data and Key Metrics Changes - The reopening of Europe and other markets is expected to progressively improve sales, with strong recovery noted in the U.S. and China [7][11] - The company noted that the number of restaurants served and solutions purchased are almost back to 2019 levels, indicating strong growth potential as markets reopen [8] Company Strategy and Development Direction - Ecolab aims to leverage its position as a leader in food safety, clean water, and healthy environments to drive long-term growth [5] - The company is focusing on enhancing value for customers while managing inflation challenges through aggressive pricing actions [4][13] - Ecolab is committed to sustainability, positioning itself as a partner for customers aiming to meet their ESG goals [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong sales and earnings growth despite challenges posed by inflation and the Delta variant [11][12] - The company is optimistic about its long-term outlook, with record levels of new business and innovation pipelines [12] - Management highlighted the importance of digital capabilities in enhancing customer value and productivity [12][96] Other Important Information - Ecolab is implementing a third round of price increases to address rising input costs, with the most significant impact expected in Q4 [14] - The company is actively pursuing M&A opportunities, particularly in water, life sciences, and digital technology [81][83] Q&A Session Summary Question: Clarification on raw materials and pricing dynamics - Management confirmed that pricing actions are currently ahead of input costs, indicating a positive dynamic for margins moving forward [18][19] Question: Visibility for detailed guidance - Management noted that the Delta variant is a key uncertainty, but they remain confident in their directional guidance [24][26] Question: Institutional results and sustainability - Management highlighted that institutional sales are recovering faster than the market, with strong growth potential as traffic increases [36][38] Question: Margin expectations and pricing - Management expects pricing to exceed input costs in Q3, with a focus on recovering margins to pre-pandemic levels [32][34] Question: New business wins and growth areas - Management reported strong new business wins across all segments, particularly in sustainability-focused initiatives [71][74] Question: M&A appetite and targets - Management expressed interest in larger acquisitions, particularly in water, life sciences, and digital technology [81][83]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $1.00 par value 2.625% Euro Notes due 2025 1.000% Euro Notes due 2024 ECL ECL 25 ECL 24 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the ...

Ecolab, Inc. (NYSE:ECL) Q1 2021 Earnings Conference Call April 27, 2021 1:00 PM ET Company Participants Mike Monahan – Senior Vice President-External Relations Christophe Beck – Chief Executive Officer Dan Schmechel – Chief Financial Officer Conference Call Participants Tim Mulrooney – William Blair Manav Patnaik – Barclays David Begleiter – Deutsche Bank Rosemarie Morbelli – G. Research Gary Bisbee – Bank of America John McNulty – BMO Capital Markets John Roberts – UBS Vincent Andrews – Morgan Stanley Scot ...