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Minnesota Chamber

of Commerce

Annual Meeting

DOUG BAKER,

CHAIRMAN AND CEO

October 3, 2013

What I’d Like to do Today

Introduce you to Ecolab

Share how we look at our business

Look at Minnesota through our lens

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Ecolab By the Numbers 3

ASSOCIATES

SERVING CUSTOMERS IN

171 COUNTRIES

$30 Billion

Market Cap 6,300 Patents

$13 BILLION ANNUAL SALES

44,000 1.3 MILLION

CUSTOMERS

90 Years Young 4

Ecolab Timeline 5

1923: Ecolab Founded

1935: Service Tradition Begins

1957: Ecolab Goes Public

1987: Ecolab Leaves

Consumer Market

1991: Ecolab forms

Strategic Alliance with

Henkel KGaA

2011-2013: Ecolab Acquires Nalco

and Champion

Macro Trends

Aging Population

Water Shortage

Energy Demand

Nature

Increasing middle

class globally

Technology

Aging population in EMEA, Japan, and China will drive

healthcare

Meal prep away from home continues in emerging markets

driving foodservice growth

Food production accounts for nearly 75% of water consumption

Demand for energy requires more geographically and technically

challenging sources, which are more difficult to reach and treat

as well as more water intensive

Water scarcity is expected to be a dominant issue, particularly in

high growth emerging market economies

Evolution presents new food safety and infection challenges

Science & technology enables broader set of product and

process improvements

Population Growth

Diet Shifts

More people: +50% by 2050. Most growth in emerging markets

Diets move from grains to proteins in emerging markets

Population growth plus diet shift means 75-100% more calories

needed to feed the world

Ecolab: Uniquely Positioned To Deliver

What Matters Most…

CLEAN

WATER

SAFE

FOOD

ABUNDANT

ENERGY

HEALTHY

ENVIRONMENTS

Ecolab Model Drives Value

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Shared Operating Principles

Shared Model

Shared Technology

Foodservice/ Hospitality

Food & Beverage Processing

Healthcare/ Infection

Prevention

Industrial Water Services

Energy Services

>90% Product Sales, >90% Recurring Revenue

Ecolab Business Model

INDUSTRY LEADER IN PRODUCT INNOVATION AND

SERVICE EXPERTISE

Ecolab’s core capabilities that drive value:

Service Technology Training Information

9

Innovation Leader

Major R&D investment

Anchor Technologies Drive Customer Decisions

Food Safety

Infection Prevention

Energy

Water Sustainability

Cost Savings and Sustainability

BEST IN CLASS SOLUTIONS FOR

CUSTOMER NEEDS

10

$0

$200

$400

$600

$800

$1,000

2008 2009 2010 2011 2012 2013

New/Modified Products As % Of Total Sales >30% Each Year

Innovation Pipeline (Estimated 5th year new product sales)

*

*excludes Champion

($mlns)

Apex 2

Low Temperature Corrosion Inhibitors

Encor for Operating Room

Leverage 3DTRASAR Technology

Extend Solids Franchise

New Antimicrobial Solutions

Innovation Drives Margin &

Competitive Advantage

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enVision

2013: CROSS-FERTILIZE ECOLAB, NALCO AND

CHAMPION TECHNOLOGIES

3D TRASAR

Apex 2

Solids for

Cooling Water

Aquanomic

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Ultimate Competitive Advantage

12,000

15,000

18,000

21,000

24,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

“Ecolab is among the top ten best U.S.

manufacturing companies to sell for.” Selling Power Magazine

INDUSTRY-LEADING SALES AND SERVICE FORCE

25,000 Field Associates

Experience That Matters

30% > 10 years

40% > 8 years

SALES AND SERVICE FORCE Combined Ecolab and Nalco

Balanced Business,

Big Opportunity

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34%

17%22%

27%

48%

26%

13%

8%

5%

31%

27%

6%

36%

14

Balanced Business

Sales by Region Sales by Segment

Asia Pacific

Canada

US

EMEA

Latin America

Abundant

Energy Safe Food

Healthier

Environments Clean Water

Institutional

Industrial

Energy

Other

Sales by Strategy

Ecolab Pro Forma 2012

Sales $13B

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Strong Competitive Position

ECOLAB SHARE $13 BILLION

Ecolab Others

$100 BILLION

MARKET

13%

15

($ mlns.)

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Major Opportunities in Existing Markets ESTIMATES BY MARKET

Ecolab Sales Remaining Market

$ MILLIONS

SEGMENT

$0 $5,000 $10,000 $15,000 $20,000

Janitorial

Food Retail

Ed./Government

Other

Lodging

Light Industry

Health Care

Paper

Heavy Industry/Mining

Food & Beverage

Energy

Food Service

Proven Strategy

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18

Outstanding Global Customer Relationships

Customers % of Sales Largest <2%

Top 10 <10%

1,000,000+ CUSTOMERS

Proven Effective Strategy CIRCLE THE CUSTOMER - CIRCLE THE GLOBE

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Provide

customers

improved control

over results, costs

and quality

Leverage

strong Ecolab

relationships to

drive improved

growth

Increasing

the solutions and

services to better

meet our customers’

global needs

Strong Culture

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Culture

Service

We win when customers win

We get things done

Caring

Ida C. Koran Foundation

Community: internal, external

Performance

Strive to be the best

Aggressive objectives

$0

$500

$1,000

$1,500

$2,000

$2,500

2008 2009 2010 2011 2012

Financial Objectives

Growth

15% EPS growth

Returns

Improve ROIC 100 bp per year

Leverage

Return to A range metrics by year-end 2015

Total debt-to-capital ratio in the 35% - 40% range

< 2.0x total debt/EBITDA

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$1.50

$2.00

$2.50

$3.00

2008 2009 2010 2011 2012

STRONG GROWTH, PRUDENT FINANCIAL MANAGEMENT

EPS (adjusted)

EBITDA (adjusted, $ - mlns)

2012 EPS and adjusted EBITDA data reflect Nalco merger

History of Performance

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24 24

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Strong, Consistent Growth

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2012 Sales and EPS data include Nalco merger

EPS CAGR

Adjusted EPS

Ecolab S&P 500 (Operating Earnings)

13% 12%

8%

4%

0%

5%

10%

15%

10 year 5 year

SALES

($ mlns.)

EPS (adjusted)

Delivering on Expectations

Forecast Actual

PREDICTABLE QUARTERLY EPS

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

ACTUAL > ECOLAB FORECAST

85 OF 86 QUARTERS (EXCEPTION = 3Q 2001)

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Adjusted EPS.

Performance that Outperforms the S&P 500 ECOLAB COMMON STOCK VS. S&P 500 SINCE

52 Years: Total Return Through 12/31/2012, Including Dividends

Cumulative Return: 201,484%

vs. S&P 500: 189,142%

-

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

ECL S&P 500

27

Financial Formula

Ecolab Success Formula 28

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Minnesota by the Numbers 30

5.1%

$38.4 Billion Biennial Budget

(2014-2015) $253 Billion

GDP

3.5%

GDP Growth (2012)

Unemployment

Minnesota by the Numbers

Education

#2 high school graduates

#1 ACT Scores

#11 bachelor’s degree or higher

Health

#1 Least stressful metro

#1 Health care system

#3 Most people with health insurance

#5 Healthiest state

Economics

#3 Labor force participation

#9 Invention patents (2008-2012)

#2 Fortune 500 per capita

#13 GDP per capita

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Minnesota by the Numbers

Generosity

#1 Philanthropy per capita

#1 Volunteering (Twin Cities)

#1 Most civically engaged metro

#3 United Way campaign (Twin Cities)

Quality of Life

#3 Quality of Life

#5 Standard of living

Lifestyle

#1 Most “playful” metro

#1 Golfers per capita

#1 Bike-friendly metro

#1 Metro for health and fitness

#2 Theater seats per capita

#7 “Most happening” rock scene

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Minnesota by the Numbers

#1 Business-to-Business Tax on warehouse

and storage services

#3 Corporate Tax Rate

#4 Personal Income tax top rate

#5 Business property tax rate (commercial business

property in Minneapolis over $1 million)

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Minnesota by the Numbers

#46 for new business startups

#45 for business tax climate

#42 in highway rankings

#39 in attracting young talent to the metro

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Growing Spending Imbalance

35

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$10

$15

$20

$25

$30

2010 2015 2020 2025

Revenue Growth @ 3% Spending Growth @ 4.7% 5%

3%

Minnesota by the Numbers 36

#50 Hispanic students graduation rate (51%)

#49 Black students graduation rate (49%)

#49 Asian/Pacific students graduation rate (72%)

#48 Low-income students graduation rate (58%)

#29 White students graduation rate (84%)

Minnesota Success Formula 37

Minnesota Success Formula 38

Minnesota Strategies 39

World-class talent

Great infrastructure / amenities

Sustainable growth culture

Minnesota Priorities

1. Tackle educational challenges – must remain #1

2. Invest in infrastructure for the future

3. Restructure Health & Human Services, bend the curve

4. Rebalance the tax code:

Broaden consumer sales tax

Reduce income tax

Clean up business taxes – don’t punish those who HQ here

5. Change the conversation…growth, responsibility and unity

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“The future destiny of Minnesota is to be

a glorious one.” Girart Hewitt, St. Paul Attorney

and Author, Minnesota: Its Advantages to Settlers,1868

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Cleaner Safer Healthier