EX-99.2 3 ex-99d2.htm EX-99.2 ecl_Ex99_2

 

 

Exhibit 99.2

Picture 16

Fourth Quarter 2017
Teleconference
Supplemental Data

 

 

 

 

 

 

 

Picture 4

    

Picture 2

    

Picture 6

 

 

 

 

 

 

 

Picture 1

 

Picture 17

 

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Cautionary Statement

Forward-Looking Information    Forward-Looking Information    This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding our future financial and business performance and prospects, including forecasted 2018 first quarter and full year business and financial results, impact of new U.S. tax law, impact of divestiture, new business, gross margins, pricing, investments and business acquisitions. These statements are based on the current expectations of management of Ecolab Inc. (“the Company”). There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties are set forth under Item 1A of our most recent Annual Report on Form 10-K and our other our public filings with the Securities and Exchange Commission (the “SEC”) and include the vitality of the markets we serve, including the markets served by our Global Energy segment; the impact of economic factors such as the worldwide economy, capital flows, interest rates and foreign currency risk, including reduced sales and earnings in other countries resulting from the weakening of local currencies versus the U.S. dollar; our ability to execute key business initiatives, including upgrades to our information technology systems; potential information technology infrastructure failures and cybersecurity attacks; our ability to attract and retain high caliber management talent to lead our business; exposure to economic, political and legal risks related to our international operations including trade sanctions; our ability to develop competitive advantages through innovation and to commercialize digital solutions; the costs and effects of complying with laws and regulations relating to our operations; and other uncertainties or risks reported from time to time in our reports to the SEC. In light of these risks, uncertainties and factors, the forward-looking events discussed in this communication may not occur. We caution that undue reliance should not be placed on forward-looking statements, which speak only as of the date made. Ecolab does not undertake, and expressly disclaims, any duty to update any forward-looking statement except as required by law.  

Non-GAAP Financial Information    This communication includes Company information that does not conform to generally accepted accounting principles (GAAP). Management believes that a presentation of this information is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and allows investors to better evaluate the financial results of the Company. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies. Reconciliations of our non-GAAP measures included within this presentation are included in the “Non-GAAP Financial Measures” section of this presentation.

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

2

 

 

 

4Q 2017 Overview

◢Sales: 

§

Reported sales +9% and fixed currency sales +7%; acquisition adjusted fixed currency sales +6%.

§

New business growth, new product introductions, share gains and pricing drove acquisition adjusted fixed currency sales increases across all business segments. 

◢Operating Income: 

§

Reported operating margin +60 bps; adjusted fixed currency operating margin -70 bps. 

§

Reported operating income +13% with adjusted operating income +5%.

§

Pricing, volume growth and cost saving initiatives offset higher delivered product costs and investments in the business during the quarter.    

◢Earnings: 

§

Reported diluted EPS $1.93, +56% versus last year; includes a $0.55 per share benefit from the new U.S. tax law. Adjusted diluted EPS $1.39, +11% versus last year. 

§

Adjusted EPS growth also benefited from lower adjusted interest expense and our ongoing work to lower our tax rate.

◢Outlook:

§

2018: Adjusted diluted EPS  $5.25 to  $5.45, +12% to 16%. Includes an estimated $0.10 per share benefit from the US tax law and $0.03 per share reduction from the Equipment Care sale.

§

1Q 2018:  Adjusted diluted EPS of $0.85 to $0.93, +6% to 16%.

 

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

3

 

 

 

Improving Growth Trends

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

Growth (year-on-year)

1Q

 

2Q

 

3Q

 

4Q

 

 

 

 

 

 

 

 

 

 

 

 

Reported sales

2%

 

4%

 

5%

 

9%

 

 

 

 

 

 

 

 

 

 

 

 

Fixed currency sales*

2%

 

5%

 

5%

 

7%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income*

2%

 

4%

 

7%

 

10%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted EPS*

4%

 

5%

 

7%

 

11%

 

 

 

*See “Non-GAAP Financial Measures” section of this presentation for corresponding reconciliations.

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

4

 

 

 

4Q 2017 Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter Ended December 31

 

 

Reported

 

 

 

 

Adjusted *

 

 

 

(unaudited)

 

Public Currency Rates

 

%  

 

Public Currency Rates

 

%  

(millions, except per share)

 

2017

 

2016

 

Change

 

2017

 

 

2016

 

Change

Net sales

 
$
3,650.7

 

 
$
3,352.1

 

 
9

%

 
$
3,650.7

 

 
$
3,352.1

 

 
9

%

Operating income

 
627.7

 

 
556.9

 

 
13

%

 
593.9

 

 
564.8

 

 
5

%

Net income attributable to Ecolab

 
565.9

 

 
366.3

 

 
54

%

 
406.7

 

 
368.2

 

 
10

%

Diluted earnings per share

 
$
1.93

 

 
$
1.24

 

 
56

%

 
$
1.39

 

 
$
1.25

 

 
11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted *

 

 

 

 

 

Fixed Currency Rates *

 

%  

 

Fixed Currency Rates

 

%  

 

 

2016

 

2016

 

Change

 

2017

 

 

2016

 

Change

Net sales

 
$
3,555.5

 

 
$
3,317.7

 

 
7

%

 
$
3,555.5

 

 
$
3,317.7

 

 
7

%

Operating income

 
610.8

 

 
551.7

 

 
11

%

 
577.0

 

 
559.6

 

 
3

%

 

 

 

 

 

 

*See “Non-GAAP Financial Measures” section of this presentation for corresponding reconciliations.

 

 

 

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

5

 

 

 

4Q 2017 Sales Growth Detail

 

 

 

 

 

 

 

 

 

 

    

Fixed Rate

    

Acq./Div. Adj.

    

 

    

 

Global Industrial

 

% Change

 

% Change

 

Consolidated

 

% Change

Food & Beverage

 

6%

 

6%

 

Volume & mix

 

5%

Water

 

7%

 

5%

 

Pricing

 

1%

Paper

 

5%

 

2%

 

Subtotal

 

6%

Life Sciences

 

5%

 

5%

 

Acq./Div.

 

1%

Textile Care

 

2%

 

2%

 

Fixed currency growth

 

7%

Total Global Industrial

 

6%

 

5%

 

Currency impact

 

2%

 

 

 

 

 

 

Total

 

9%

Global Institutional

 

 

 

 

 

 

 

 

Institutional

 

2%

 

2%

 

 

 

 

Specialty

 

7%

 

7%

 

 

 

 

Healthcare

 

48%

 

5%

*

 

 

 

Total Global Institutional

 

8%

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Energy

 

11%

 

12%

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

Pest Elimination

 

9%

 

8%

 

 

 

 

Equipment Care

 

 -64% 

 

5%

 

 

 

 

Total Other

 

 -7% 

 

7%

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in the tables above may reflect rounding.  Acq./Div. Adj. excludes the impact of acquisitions and divestitures and sales to our deconsolidated Venezuelan subsidiaries.
*Healthcare includes Anios sales in the comparable period last year.

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

6

 

 

 

4Q 2017 Income Statement / Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

($ millions, unaudited)

2017

 

% sales

 

2016

 

% sales

 

% change

  Comments*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit
$
1,700.0

 
46.6%

 
$
1,607.0

 
47.9%

 
6

%

Adjusted gross margins were 47.1% vs. 48.1% in 2016, a 100 bps decline from the year-ago level, driven by higher delivered product costs and the impact of growth within Global Energy (which on average has lower gross margin) that more than offset increased pricing and cost savings.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SG&A

1,123.9

 
30.8%

 

1,046.3

 
31.2%

 
7

%

The 40 bps improvement was driven by sales volume leverage and cost savings which more than offset investments in the business.

 

Operating Income (fixed FX)

 

 

 

 

 

 

 

 

 

 

 

 

Global Industrial

220.1

 
17.0%

 

209.9

 
17.2%

 
5

%

2017 acquisition adjusted fixed currency margins were 17.1% vs. 17.2% in 2016. Margins decreased 10 bps as improved pricing, sales volume gains and cost savings were offset by higher delivered product costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Institutional

259.6

 
21.3%

 

252.7

 
22.5%

 
3

%

2017 acquisition adjusted fixed currency margins were 22.0% vs. 22.6% in 2016. Margins decreased 60 bps as pricing and sales volume gains were more than offset by innovation, new customer installation investments as well as higher delivered product costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Energy

102.4

 
12.0%

 

101.8

 
13.2%

 
1

%

2017 acquisition adjusted fixed currency margins were 12.0% vs. 13.0% in 2016. Margins decreased 100 bps as volume gains and the benefits from cost reduction actions were more than offset by higher delivered product costs and a rebuild of compensation reductions made in 2016.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

38.4

 
20.2%

 

37.0

 
18.2%

 
4

%

2017 acquisition adjusted fixed currency margins were 20.8% vs. 20.0%. The 80 bps increase reflected pricing and sales volume gains which more than offset increased field-related costs. The Equipment Care business was sold on November 1, 2017.

 

Subtotal at fixed FX

620.5

 
17.5%

 

601.4

 
18.1%

 
3

%

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

Special Gains/(Ch.)

33.8

 

 

 

(7.9)

 

 

 

 

 

2017: Gains on the sale of Equipment Care were partially offset by fixed asset impairment and restructuring charges,
2016: Wage-hour litigation charges, offset by restructuring related gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corp. Expense

(43.5)

 

 

 

(41.8)

 

 

 

 

 

Nalco intangible amortization

 

Total Corporate Exp.

(9.7)

 

 

 

(49.7)

 

 

 

 

 

 

 

FX

16.9

 

 

 

5.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Op. Inc.
$
627.7

 
17.2%

 
$
556.9

 
16.6%

 
13

%

2017 adjusted fixed currency operating margin was 16.2%, a 70 bps decrease vs. the equivalent 2016 margin of 16.9%. The margin decline reflected pricing, volume growth and cost savings initiatives that were more than offset by higher delivered product costs and investments in the business during the quarter.

 

 

 

 

 

 

 

*See “Non-GAAP Financial Measures” section of this presentation for corresponding reconciliations.

 

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

7

 

 

 

4Q 2017 Balance Sheet / Cash Flow

 

 

 

 

 

 

 

 

 

 

 

Summary Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

 

December 31

(millions, unaudited)

 

2017

 

2016

 

(millions, unaudited)

 

2017

 

2016

Cash and cash eq.

    
$
211.4

    
$
327.4

    

Short-term debt

    
$
564.4

    
$
541.3

Accounts receivable, net

 
2,574.1

 
2,341.2

 

Accounts payable

 
1,177.1

 
983.2

Inventories

 
1,445.9

 
1,319.4

 

Other current liabilities

 
1,690.3

 
1,494.9

Other current assets

 
365.0

 
291.4

 

Long-term debt

 
6,758.3

 
6,145.7

PP&E, net

 
3,707.1

 
3,365.0

 

Pension/Postretirement

 
1,025.5

 
1,019.2

Goodwill and intangibles

 
11,184.7

 
10,200.8

 

Other liabilities

 
1,058.1

 
1,175.0

Other assets

 
474.2

 
485.0

 

Total equity

 
7,688.7

 
6,970.9

Total assets

 
$
19,962.4

 
$
18,330.2

 

Total liab. and equity

 
$
19,962.4

 
$
18,330.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Cash Flow items

 

 

 

 

 

Selected Balance Sheet measures

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

December 31

 

 

 

December 31

(millions, unaudited)

    

2017

 

2016

    

(unaudited)

    

2017

 

2016

Cash from op. activities

 
$
2,091.3

 
$
1,939.7

 

Total Debt/Total Capital

 

48.8%

 

49.0%

Depreciation

 
585.7

 
561.0

 

Net Debt/Total Capital

 

48.0%

 

47.7%

Amortization

 
307.6

 
289.7

 

Net Debt/EBITDA(*)

 

2.4

 

2.3

Capital expenditures

 
789.6

 
707.4

 

Net Debt/Adjusted EBITDA(*)

 

2.4

 

2.2

 

 

 

 

 

 

 

(*) EBITDA and Adjusted EBITDA are non-GAAP measures.  EBITDA is defined as the sum of operating income, depreciation and amortization. Adjusted EBITDA is defined as the sum of adjusted operating income, depreciation and amortization. The inputs to EBITDA reflect the trailing twelve months of activity for the period presented. See “Non-GAAP Financial Measures” section of this presentation corresponding reconciliations. 

 

 

 

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

8

 

 

 

2018 Focus

 

◢Continue to build topline momentum

§

Further accelerate corporate account wins

§

Leverage digital platforms and improve speed to market

§

Reinvigorate Institutional

◢Build gross margins: maintain pricing momentum to more than offset impact from delivered product cost increases

◢Deliver on key investment programs

§

Product innovation

§

Customer digital solutions capabilities

§

Talent

◢Execute on M&A strategy

 

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

9

 

 

 

 

 

 

 

 

Appendix

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

10

 

 

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fourth Quarter Ended

    

Twelve Months Ended

(unaudited)

 

December 31

 

December 31

(millions, except percent)

 

2017

   

2016

 

2017

   

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP net sales

 
$
3,650.7

 

 
$
3,352.1

 

 
$
13,838.3

 

 
$
13,152.8

 

Effect of foreign currency translation

 
(95.2)

 

 
(34.4)

 

 
(192.1)

 

 
(148.0)

 

Non-GAAP fixed currency sales

 
3,555.5

 

 
3,317.7

 

 
13,646.2

 

 
13,004.8

 

Effect of acquisitions and divestitures

 
(83.1)

 

 
(41.0)

 

 
(265.2)

 

 
(102.3)

 

Non-GAAP acquisition adjusted fixed currency sales

 
$
3,472.4

 

 
$
3,276.7

 

 
$
13,381.0

 

 
$
12,902.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP cost of sales

 
$
1,950.7

 

 
$
1,745.1

 

 
$
7,405.1

 

 
$
6,898.9

 

Special (gains) and charges

 

17.8

 

 
4.1

 

 

44.0

 

 
66.0

 

Non-GAAP adjusted cost of sales

 
$
1,932.9

 

 
$
1,741.0

 

 
$
7,361.1

 

 
$
6,832.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

 

 

 

 

 

 

 

 

 

 

 

Reported gross margin

 
46.6

%

 
47.9

%

 
46.5

%

 
47.5

%

Non-GAAP adjusted gross margin

 
47.1

%

 
48.1

%

 
46.8

%

 
48.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP operating income

 
$
627.7

 

 
$
556.9

 

 
$
2,019.8

 

 
$
1,915.0

 

Effect of foreign currency translation

 
(16.9)

 

 
(5.2)

 

 
(32.9)

 

 
(25.2)

 

Non-GAAP fixed currency operating income

 
610.8

 

 
551.7

 

 
1,986.9

 

 
1,889.8

 

Special (gains) and charges

 
(33.8)

 

 
7.9

 

 
40.3

 

 
105.5

 

Non-GAAP adjusted fixed currency operating income

 
577.0

 

 
559.6

 

 
2,027.2

 

 
1,995.3

 

Effect of acquisitions and divestitures

 
(6.3)

 

 
(5.3)

 

 
(31.5)

 

 
(17.6)

 

Non-GAAP acquisition adjusted fixed currency operating income

 
$
570.7

 

 
$
554.3

 

 
$
1,995.7

 

 
$
1,977.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP operating income margin

 
17.2

%

 
16.6

%

 
14.6

%

 
14.6

%

Non-GAAP adjusted fixed currency operating income margin

 
16.2

%

 
16.9

%

 
14.9

%

 
15.3

%

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

11

 

 

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fourth Quarter Ended

    

Twelve Months Ended

(unaudited)

 

December 31

 

December 31

(millions, except percent and per share)

 

2017

   

2016

 

2017

   

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP interest expense, net

 
$
77.8

 

 
$
68.3

 

 
$
255.0

 

 
$
264.6

 

Special (gains) and charges, after tax

 
21.9

 

 
0.0

 

 
21.9

 

 
0.0

 

Non-GAAP adjusted interest expense, net

 
$
55.9

 

 
$
68.3

 

 
$
233.1

 

 
$
264.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to Ecolab

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP net income attributable to Ecolab

 
$
565.9

 

 
$
366.3

 

 
$
1,508.4

 

 
$
1,229.6

 

Special (gains) and charges, after tax

 
2.8

 

 
1.6

 

 
56.0

 

 
62.4

 

Discrete tax net expense (benefit)

 
(162.0)

 

 
0.3

 

 
(186.2)

 

 
3.9

 

Non-GAAP adjusted net income attributable to Ecolab

 
$
406.7

 

 
$
368.2

 

 
$
1,378.2

 

 
$
1,295.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings per Share Attributable to Ecolab ("EPS")

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP diluted EPS

 
$
1.93

 

 
$
1.24

 

 
$
5.13

 

 
$
4.14

 

Special (gains) and charges, after tax

 
0.01

 

 
0.01

 

 
0.19

 

 
0.21

 

Discrete tax net expense (benefit)

 
(0.55)

 

 
0.00

 

 
(0.63)

 

 
0.01

 

Non-GAAP adjusted diluted EPS

 
$
1.39

 

 
$
1.25

 

 
$
4.69

 

 
$
4.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP tax rate

 
(4.0)

%

 
23.9

%

 
13.7

%

 
24.4

%

Special gains and charges

 
(2.8)

 

 
0.9

 

 
(0.1)

 

 
1.0

 

Discrete tax items

 
30.1

 

 
(0.1)

 

 
10.2

 

 
(0.2)

 

Non-GAAP adjusted tax rate

 
23.3

%

 
24.7

%

 
23.8

%

 
25.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA (trailing twelve months ended)

 

 

 

 

 

 

 

 

 

 

 

 

Net income including non-controlling interest

 
$
1,522.4

 

 
$
1,247.1

 

 

 

 

 

 

 

Provision for income taxes

 
242.4

 

 
403.3

 

 

 

 

 

 

 

Interest expense, net

 
255.0

 

 
264.6

 

 

 

 

 

 

 

Depreciation

 
585.7

 

 
561.0

 

 

 

 

 

 

 

Amortization

 
307.6

 

 
289.7

 

 

 

 

 

 

 

EBITDA

 
$
2,913.1

 

 
$
2,765.7

 

 

 

 

 

 

 

Special (gains) and charges impacting EBITDA

 
40.3

 

 
105.5

 

 

 

 

 

 

 

Adjusted EBITDA

 
$
2,953.4

 

 
$
2,871.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

12

 

 

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter Ended December 31

 

 

2017

 

2016

(millions)

 

Fixed Currency

 

Impact of Acquisitions and Divestitures

 

Acquisition Adjusted

 

Fixed Currency

 

Impact of Acquisitions and Divestitures

 

Acquisition Adjusted

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Global Industrial

 
$
1,292.0

 

($17.3)

 
$
1,274.7

 
$
1,218.8

 

($1.7)

 
$
1,217.1

Global Institutional

 
1,220.6

 

(63.7)

 
1,156.9

 
1,125.1

 

(2.5)

 
1,122.6

Global Energy

 
853.2

 

 -

 
853.2

 
770.2

 

(7.9)

 
762.3

Other

 
189.7

 

(2.1)

 
187.6

 
203.6

 

(28.9)

 
174.7

Subtotal at fixed currency rates

 
3,555.5

 

(83.1)

 
3,472.4

 
3,317.7

 

(41.0)

 
3,276.7

Currency impact

 

95.2

 

 

 

 

 

34.4

 

 

 

 

Consolidated reported GAAP net sales

 
$
3,650.7

 

 

 

 

 
$
3,352.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

Global Industrial

 
$
220.1

 

($1.6)

 
$
218.5

 
$
209.9

 

($0.8)

 
$
209.1

Global Institutional

 
259.6

 

(5.6)

 
254.0

 
252.7

 

0.5

 
253.2

Global Energy

 
102.4

 

0.3

 
102.7

 
101.8

 

(2.9)

 
98.9

Other

 
38.4

 

0.6

 
39.0

 
37.0

 

(2.1)

 
34.9

Corporate

 

(43.5)

 

 -

 
(43.5)

 

(41.8)

 

 -

 
(41.8)

Adjusted at fixed currency rates

 
577.0

 

(6.3)

 
570.7

 
559.6

 

(5.3)

 
554.3

Special (gains) and charges

 

(33.8)

 

 

 

 

 

7.9

 

 

 

 

Reported OI at fixed currency rates

 
610.8

 

 

 

 

 
551.7

 

 

 

 

Currency impact

 

16.9

 

 

 

 

 

5.2

 

 

 

 

Consolidated reported GAAP operating income

 
$
627.7

 

 

 

 

 
$
556.9

 

 

 

 

 

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

13

 

 

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended  December 31

 

 

2017

 

2016

(millions)

 

Fixed Currency

 

Impact of Acquisitions and Divestitures

 

Acquisition Adjusted

 

Fixed Currency

 

Impact of Acquisitions and Divestitures

 

Acquisition Adjusted

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Global Industrial

 
$
4,878.5

 

($46.7)

 
$
4,831.8

 
$
4,687.2

 

($11.0)

 
$
4,676.2

Global Institutional

 
4,744.9

 

(207.4)

 
4,537.5

 
4,440.1

 

(28.9)

 
4,411.2

Global Energy

 
3,199.3

 

(9.0)

 
3,190.3

 
3,075.8

 

(33.5)

 
3,042.3

Other

 
823.5

 

(2.1)

 
821.4

 
801.7

 

(28.9)

 
772.8

Subtotal at fixed currency rates

 
13,646.2

 

(265.2)

 
13,381.0

 
13,004.8

 

(102.3)

 
12,902.5

Currency impact

 

192.1

 

 

 

 

 

148.0

 

 

 

 

Consolidated reported GAAP net sales

 
$
13,838.3

 

 

 

 

 
$
13,152.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

Global Industrial

 
$
722.0

 

($3.4)

 
$
718.6

 
$
720.0

 

($2.5)

 
$
717.5

Global Institutional

 
985.7

 

(25.8)

 
959.9

 
950.5

 

0.8

 
951.3

Global Energy

 
338.5

 

(2.9)

 
335.6

 
346.7

 

(13.8)

 
332.9

Other

 
149.3

 

0.6

 
149.9

 
145.2

 

(2.1)

 
143.1

Corporate

 

(168.3)

 

 -

 

(168.3)

 

(167.1)

 

 -

 

(167.1)

Adjusted at fixed currency rates

 
2,027.2

 

(31.5)

 
1,995.7

 
1,995.3

 

(17.6)

 
1,977.7

Special (gains) and charges

 

40.3

 

 

 

 

 

105.5

 

 

 

 

Reported OI at fixed currency rates

 
1,986.9

 

 

 

 

 
1,889.8

 

 

 

 

Currency impact

 

32.9

 

 

 

 

 

25.2

 

 

 

 

Consolidated reported GAAP operating income

 
$
2,019.8

 

 

 

 

 
$
1,915.0

 

 

 

 

 

 

 

 

Picture 19

Please see Ecolab’s news release dated February 20, 2018 for additional information, including additional discussion on use of Non-GAAP financial measures.

14