details
E   C   O   L   A   B   2   0   0   3   A   N   N   U   A   L   R   E   P   O   R   T




                        ...
DESCRIPTION OF BUSINESS >
Ecolab is the leading global developer and marketer of premium cleaning, sanitizing, pest elimin...
ecolab overview                                                                                    >       > >>           ...
ECOLAB BUSINESS MIX 2003 >                                                                                                ...
details matter
there’s no need to read
between the lines. with
ecolab, it’s clear the difference
is in the details. we hel...
a closer look at the details
    that defined our 2003
    TO OUR SHAREHOLDERS
        We live in a world that turns a lit...
>   >   >    >     >     >     >    >     >      >    >     >    >      >   >   >     >     >     >     >>      >     >   ...
>    >     >     >     >     >     >     >     >     >        >   >   >   >     >      >    >     >     >     >     >     ...
when details matter most
>   >    >       >                                                                               ...
details
    drive ecolab’s global success




    It begins with our people. Ecolab associates are expertly trained.
    V...
Turn the page to see everything we can do
          for a restaurant - just one of the many kinds of
businesses and instit...
▼                                                  ▼3                                              ▼5
    1 heating & cool...
7 front-of-house cleaning ▼ 9 cleaners and polishes ▼                                                         11 pest elim...
products infused with power


                                                                2


                        ...
2 oasis pro ▼                                                          4 endure 320 ▼
                                    ...
solutions born of research
WO COMPONENT BIOCIDAL SYSTEM 4684469 SOLID CAST DETERGENT DISPENSER WITH INSERT FOR HOLDING NON...
G ARTICLE AND METHOD OF MAKING AND USING 4569780 LOW PHOSPHATE LIQUID CLEANING COMPOSITION 4579676 PROCESS FOR DRYING AN E...
service completes the circle




     Our service is personal. Reliable. Prompt. Thorough. From
     in-service training t...
At a neighborhood supermarket, an Ecolab sales-and-service
associate trains deli employees on the proper way to clean meat...
details matter                                       UNITED STATES:
                                                      ...
PROFESSIONAL
                                        PRODUCTS
PEST ELIMINATION                                            ...
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ecolab 2003AnnualReport

  1. 1. details E C O L A B 2 0 0 3 A N N U A L R E P O R T matter
  2. 2. DESCRIPTION OF BUSINESS > Ecolab is the leading global developer and marketer of premium cleaning, sanitizing, pest elimination, maintenance and repair products and services for the world’s hospitality, foodservice, institutional and industrial markets. Founded in 1923 and headquartered in St. Paul, Minn., Ecolab reaches customers in North America, Europe, Asia Pacific, Latin America, the Middle East and Africa, employing more than 20,000 associates worldwide. Customers include hotels and restaurants; healthcare and educational facilities; quickservice (fast-food and convenience stores) units; grocery stores; commercial and institutional laundries; light industry; dairy plants and farms; food and beverage processors; pharmaceutical and cosmetic facilities; and the vehicle wash industry. Products and services are marketed by the industry’s largest and best-trained direct sales-and-service force, numbering more than 11,000 associates who advise and assist customers in meeting a full range of cleaning, sanitation and service needs. Ecolab common stock is traded on the New York Stock Exchange under the symbol ECL. Ecolab news releases and other selected investor information are available on the Internet at www.ecolab.com. FORWARD-LOOKING STATEMENTS AND RISK FACTORS We refer readers to the company’s disclosure, entitled “Forward-Looking Statements and Risk Factors,” which is located on page 30 of this Annual Report. FINANCIAL HIGHLIGHTS > Percent Change (thousands, except per share) 2003 2002 2001 2003 2002 Net Sales $3,761,819 $3,403,585 $2,320,710 11% 47% Net Income 277,348 209,770 188,170 32 11 Percent of Sales 7.4% 6.2% 8.1% Diluted Net Income Per Common Share 1.06 0.80 0.72 33 11 Diluted Weighted-Average Common Shares Outstanding 262,737 261,574 259,855 - 1 Cash Dividends Declared Per Common Share 0.2975 0.2750 0.2625 8 5 Cash Provided by Operating Activities 529,199 423,326 364,481 25 16 Capital Expenditures 212,035 212,757 157,937 - 35 Shareholders’ Equity 1,295,426 1,099,751 880,352 18 25 Return on Beginning Equity 25.2% 23.8% 24.9% Total Debt 674,644 699,842 745,673 (4) (6) Total Debt to Capitalization 34.2% 38.9% 45.9% Total Assets $3,228,918 $2,865,907 $2,525,000 13% 14% DILUTED NET INCOME DIVIDENDS DECLARED PER SHARE > PER SHARE > NET SALES > NET INCOME > (DOLLARS) (DOLLARS) (DOLLARS IN MILLIONS) (DOLLARS IN MILLIONS) $277 $3,762 $1.06 $0.298 $0.275 $3,404 $0.263 $0.245 $0.80 $210 $206 $0.78 $0.218 $0.72 $188 $0.65 $176 $2,231 $2,321 $2,050 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003
  3. 3. ecolab overview > > >> >> > > > > > Some important details about our SERVICES/PRODUCTS PROVIDED > company: Ecolab continues to be the INSTITUTIONAL Products, programs and services for the foodservice, hospitality and world’s leading provider of commercial healthcare industries, including warewashing, on-premise laundry, housekeeping, water filtration and conditioning, food safety products, cleaning, sanitation and service specialty kitchen and laundry products, and pool and spa management. solutions. You will find us wherever KAY our customers need outstanding Cleaning and sanitizing products, services and training programs for service. We have dedicated field the quickservice restaurant, convenience store, movie theater and food retail markets. associates on nearly every continent. PEST ELIMINATION Our geographic scope is even more Service and technology for the detection, identification, elimination and impressive when you consider all the prevention of pests in commercial facilities, as well as food safety audit and training services. additional areas we reach through distributors, export activities and the PROFESSIONAL PRODUCTS Janitorial cleaning, floor care and infection prevention products, like. In every market Ecolab serves, programs and systems for the retail, building services, industrial and healthcare* markets. we deliver a growing range of products, systems and services. In the GCS SERVICE Service and parts for the repair and maintenance of commercial U.S., for example, we have nine foodservice equipment. operating divisions – Institutional, Pest TEXTILE CARE Elimination, Kay, Food & Beverage, Cleaning and sanitizing products, equipment and services for commercial and shirt laundries. Professional Products, GCS Service, Textile Care, Vehicle Care and Water FOOD & BEVERAGE Cleaning and sanitizing products, equipment, systems and services for Care Services – that form a truly the agribusiness, beverage, brewery, pharmaceutical, dairy and food processing industries. unmatched complementary offering. Many of these businesses are WATER CARE SERVICES Water treatment programs for boilers, cooling water and waste following our core institutional and treatment systems. industrial offerings around the world, VEHICLE CARE demonstrating the ongoing vitality of Cleaning and treatment products and programs for professional conveyor, in-bay and self-service car wash operations. Ecolab’s Circle the Customer - Circle the Globe commitment. *Healthcare began operating a distinct business unit, separate from Professional Products, effective Jan. 1, 2004. It will be reported as a separate business unit in future years. All product names and certain information appearing in italic type in the text of this Annual Report are trademarks, brand names, service marks or copyrighted material of Ecolab Inc., Kay Chemical Company or Ecolab GmbH & Co. OHG.
  4. 4. ECOLAB BUSINESS MIX 2003 > NET SALES > (DOLLARS IN MILLIONS) ■ International 44% United States 56% $3,762 ■ Institutional 28% Europe/Africa/Middle East 30% $3,404 ■ Food & Beverage 8% Asia Pacific 7% ■ Pest Elimination 6% Canada 3% $2,321 ■ Kay 4% Latin America 3% ■ GCS Service 3% Other 1% ■ Professional Products 3% ■ Vehicle Care 2% ■ Textile Care 1% 2001 2002 2003 ■ Water Care Services 1% CUSTOMERS/MARKETS SERVED > SALES-AND-SERVICE ASSOCIATES > CUSTOMERS > Restaurants > Office buildings (December 31) 2001 2002 2003 > Hotels > Shopping malls Institutional 2,985 3,125 3,190 > Quickservice > Light industry Kay 235 245 275 > Food retail (grocery) > Fleet and vehicle wash Pest Elimination 1,450 1,555 1,645 > Schools Professional Products 190 175 180 > Laundries MARKETS GCS Service 560 530 535 > Healthcare facilities > United States Textile Care 125 85 80 > Dairy farms and plants > Europe/Africa / Middle East Food & Beverage 385 395 405 > Food, beverage and brewery > Asia Pacific Water Care Services 100 100 95 plants > Canada Vehicle Care 100 100 100 > Pharmaceutical and cosmetic > Latin America Europe/Africa/ facilities Middle East 2,700 3,370 3,285 Asia Pacific* 1,065 925 1,015 Canada 320 320 340 ECOLAB STOCK PERFORMANCE > Latin America 505 485 540 Total 10,720 11,410 11,685 2001 2002 2003 Quarter Low High Low High Low High *The 2002 decrease is due to the sale of the Hygiene Services business. First $18.94 $22.09 $19.43 $23.94 $23.08 $26.00 Second 18.18 21.60 21.25 24.00 24.21 27.92 Third 14.25 21.00 18.27 24.51 23.78 26.80 Fourth 17.10 20.53 20.71 25.20 25.15 27.89 TABLE OF CONTENTS > ECOLAB STOCK PERFORMANCE COMPARISON > Letter to Shareholders > 2 1.50 $30 Operations Review > 16 1.40 $28 Financial Discussion > 20 1.30 Ecolab, S&P 500 Indices $26 Financial Report > 31 Ecolab Stock Price 1.20 $24 Management and 1.10 Auditors’ Reports > 51 $22 1.00 0.90 Board of Directors > 54 $20 0.80 Corporate Officers > 56 $18 0.70 Shareholder Information > $16 0.60 inside back cover $14 0.50 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2000 2001 2002 2003 ■ Ecolab Stock Price ■ Ecolab Stock Price Index, Dec. 31, 2000 = 1.00 ■ S&P 500 Index, Dec. 31, 2000 = 1.00
  5. 5. details matter there’s no need to read between the lines. with ecolab, it’s clear the difference is in the details. we help businesses and institutions manage the details of running successful enterprises by providing exceptional cleaning, sanitation and service solutions. this report is a testament to our passion for serving our customers, whether they’re located around the world or just around the corner.
  6. 6. a closer look at the details that defined our 2003 TO OUR SHAREHOLDERS We live in a world that turns a little faster each day. CEO baton to someone in whom I had anything less than Speed is the name of the game in 21st century life. 100 percent confidence. Doug, however, is absolutely the right Nowhere is this truer than in business. Companies of person for the job, and I am very pleased that he will be my every shape and size, in every industry and market successor. around the world, are constantly working to keep pace Yes, at Ecolab the details matter. Want more proof? Read with our global society’s demand for quicker, more on for a detailed look at our 2003 accomplishments: convenient service. A CLOSER LOOK AT OUR FINANCIAL PERFORMANCE > We are very proud to report that Ecolab’s net sales for These companies, in turn, need service partners who can 2003 reached an all-time high of $3.8 billion and increased help them focus on the details of managing a successful 11 percent over 2002. As always, our global sales-and-service enterprise – even when things get moving so quickly they team deserves the kudos for these results, as they worked become a blur. Details make the difference between a vigorously throughout the year to achieve growth while satisfied and unsatisfied guest. Between a clean health overcoming the market difficulties and economic uncertainties inspection and fines or closures. Between a trusted brand that continued to afflict many areas of the world. name and a tarnished reputation. > Operating income was $483 million for 2003, an increase At Ecolab, our focus on the details is about not only of 22 percent from $396 million in 2002. Operating income satisfying customer needs, but exceeding them. From our field represented 12.8 percent of net sales, up from last year’s associates to our researchers and engineers, Ecolab associ- 11.6 percent, and was led by excellent improvement from our ates look closer and peer deeper than anyone else. The result European operations and strong performances by our Pest is a broad, world-class product, system and service offering, Elimination and Kay divisions. which boasts advanced formulas and state-of-the-art > Diluted net income per share was $1.06 for 2003, up dispensing systems that help manage use-costs and enhance 33 percent from $0.80 in 2002. Several unusual items are employee safety, along with comprehensive in-service training included in both 2003 and 2002 net income. Excluding these and support that really gets down to the nitty-gritty. At its core, items, diluted income per share from ongoing operations our Circle the Customer - Circle the Globe strategy is all about increased 12 percent to $1.03 from $0.92 in 2002. making sure we have every detail covered, in order to help > Our return on beginning shareholders’ equity was protect our customers’ brands and deliver shareholder value. 25 percent for 2003 compared with 24 percent in 2002. I’m We firmly believe that details matter in everything we do, pleased to report that this was the 12th consecutive year in from the many ways in which we serve our customers, to the which the company exceeded its long-term financial objective transparency of our financial reporting, to making sure we of a 20 percent return on beginning shareholders’ equity. have the strongest possible leadership team in place to pilot > Ecolab’s share price rose 11 percent in 2003 – a solid this great company into the future. The board and I worked gain, although the Standard & Poor’s 500 rose 26 percent. carefully on the leadership transition plan, and we made an Over the past five years, Ecolab’s share price has risen excellent choice in appointing Doug Baker, currently our 53 percent compared with a 10 percent decline for the S&P president and chief operating officer, to succeed me as chief 500. In addition, we increased our annual dividend rate for the executive when I step down July 1, 2004. Although I will 12th consecutive year as it rose 10 percent in December 2003 remain active in Ecolab’s growth by continuing as chairman of to an annual rate of $0.32 per common share. the board, I would not have been comfortable passing the 2 > ECOLAB 2003 details matter
  7. 7. > > > > > > > > > > > > > > > > > > > >> > > > > > > > > > We achieved record cash flow from operating activities of $529 million, and our total debt to capitalization ratio declined to 34 percent. These results allowed us to again earn a debt rating within the “A” categories of the major rating agencies during 2003. A CLOSER LOOK AT OUR PRODUCT OFFERINGS AND SERVICE CAPABILITIES > Every year at Ecolab, we expand the breadth of detail-driven solutions we offer to our customers. During 2003, these included offerings such as Typhoon and Inferno, a pair of technologically advanced Ecotemp dishmachine models that deliver sparkling results via innovative solid products and are offered with our exclusive ventless steam removal system. There was also Conquest, a hand soap specifically developed for foodservice outlets in grocery stores. It provides proven antimicrobial action and a mild formula that’s ideal for frequent handwashing. Orange Force is a streak-free, nonabrasive, multi-surface cleaner with a pleasant orange fragrance. It is formulated with dual binding agents that pull dirt and grease away from surfaces. New for central sterile environments in the healthcare industry, our Asepti-Solid Instrument Care System packs terrific cleaning performance into small, lightweight solid blocks. And the Easycare system meets housekeeping needs in Europe by combining an array of highly concentrated cleaning products and our innovative Penguin dispenser. More of our latest offerings are described in the “Review Allan L. Schuman, Chairman of the Board and Chief Executive Officer of Operations” section of this report. > Our industry-leading sales-and-service team grew even delivering growth in this specialized market. Professional stronger in 2003. We added 275 new associates to our global Products is now focused exclusively on the janitorial market. field organization, which is now 11,685 members strong. This new organization will allow us an even greater focus on > In order to strengthen our focus on and service to the the actions necessary to achieve growth in both businesses. growing North American janitorial and healthcare markets, in January 2004 we separated these two businesses, both of A CLOSER LOOK AT OUR ACQUISITIONS AND which had previously operated within the Professional DIVESTITURES Products Division. The newly created Healthcare Division has > In June, we sold our minority equity investment in Comac a management team and field organization dedicated to S.p.A., a Verona, Italy-based manufacturer of floor care ECOLAB 2003 details matter < 3
  8. 8. > > > > > > > > > > > > > > > > > > > > > > > > > > > machinery. The sale was consistent with our stated aim to promotion, we further acknowledged the importance of the focus on those areas in which we can provide maximum European marketplace to our short- and long-term success. value through our product and service business. Luciano was previously vice president and general manager, > In September, we sold the consumer dermatology Europe. Also in January 2004, Jim Miller was promoted to business of our Adams Healthcare subsidiary to Leeds, executive vice president, Institutional Sector North America, in UK-based Ferndale Pharmaceuticals Ltd. recognition of the importance of our Institutional business and > We expanded our Pest Elimination business in Europe its customer base to Ecolab’s overall business. Jim was through the acquisition of Nigiko, a Paris-headquartered firm previously vice president and general manager, Institutional that provides pest services throughout France. Ecolab’s North America. And in February 2004, our chief financial second pest services acquisition in Europe – announced in officer, Steve Fritze, was promoted from senior vice president November 2003 and finalized in early 2004 – marks another to executive vice president. This promotion not only reflected important step in our strategic efforts to build Pest Elimination Steve’s strong financial capabilities and 24 years of service to into a truly worldwide offering. Ecolab, but also our ongoing commitment to maintaining the highest standards of financial integrity. A CLOSER LOOK AT OUR LEADERSHIP TEAM > Also in February 2004, our board of directors welcomed DEVELOPMENT new members Beth M. Pritchard and Richard U. De Schutter. As I said in my introduction to this letter, I am very Beth is president and CEO of Organized Living Inc., which pleased that Doug Baker has been chosen to succeed me as specializes in home and office storage and organization CEO, effective July 1, 2004. A 15-year Ecolab veteran, Doug solutions. Richard is the former chairman and chief executive has served as president and COO since 2002 and proven officer of the DuPont Pharmaceutical Co. We enthusiastically himself to be a highly capable leader. He clearly possesses welcome Beth and Richard. They, along with Doug Baker, the drive and talent to continue Ecolab’s extraordinary record increase the number of directors on our board to 14. of success. Doug was also elected to our board of directors, effective February 2004. A CLOSER LOOK AT THE RECOGNITION WE’VE There have been several other significant developments RECEIVED on our leadership team: > Ecolab was proud to once again be named to Business > In July, we welcomed Steve Newlin to our leadership Ethics magazine’s list of the “100 Best Corporate Citizens” in team as Industrial Sector president. Steve was previously America. This recognition, our fourth in as many years, is a president and chief operating officer of the Nalco Co., where reaffirmation of our company’s commitment to corporate he spent 23 years in a variety of management positions. He integrity and good citizenship. It is also a credit to our has responsibility for Ecolab’s North American Pest associates, whose actions each day give life and meaning to Elimination, Food & Beverage, Healthcare, Water Care our corporate culture of spirit, pride, determination, passion, Services, Vehicle Care and Textile Care divisions. commitment and integrity. > Also in July, we were fortunate to have Tom Handley join > Personally, I was honored to receive the National Ecolab. As executive vice president, Specialty Sector, Tom Restaurant Association Educational Foundation’s Thad and leads our Kay, Professional Products North America and GCS Alice Eure Ambassador of Hospitality Award, its highest Service divisions. During a very successful 22-year career distinction for “extraordinary achievement, exemplary career with Procter & Gamble, Tom held positions in marketing, leadership and substantial contributions to education in the general management and strategic planning. hospitality, restaurant and foodservice industry.” I greatly > We promoted three of our key leaders: Luciano Iannuzzi appreciated the opportunity to represent Ecolab in such an was promoted in January 2004 to executive vice president of important way. Ecolab’s Europe, Africa and Middle East operations. With this 4 > ECOLAB 2003 details matter
  9. 9. when details matter most > > > > > > > > The SARS crisis of early 2003 reminded OUTLOOK FOR 2004: Yes, a focus on the details is at the core of Ecolab’s everyone here at Ecolab of an important point: Circle the Customer - Circle the Globe efforts. We’ve realized Attention to details not only can make the tremendous success over the years by paying close attention to those details and responding with premium, highly difference between the life and death of a innovative solutions to our customers’ growing range of business, it can also mean life or death for needs. human beings. Our focus on the details will sharpen further during 2004. We will continue to adhere to our Circle the Customer - Circle People in China, Canada and the other the Globe strategy, closely examining all of our customers’ areas affected by SARS were forced to take operational needs and finding even more innovative, extraordinary measures to stop the spread of comprehensive ways to help meet them. The results, as always, will be premium product, system and service offerings the deadly virus. Everyday details such as that go far beyond the ordinary, addressing perennial handwashing and surface cleaning suddenly customer issues such as labor availability, turnover and became more critical than ever. training, as well as worker safety, environmental concerns, food safety and security, and brand protection, to name just a In response, we immediately mobilized our few. field associates to ensure that a steady supply Our 20,000-plus associates will continue to be of hand sanitizers and hard surface recognized as valued partners who each play a key role in our customers’ success. Ecolab is united in our dedication to disinfectants would reach hospitals, clinics helping all manner of businesses and institutions succeed – and additional facilities where they were and, by doing so, helping improve the quality of life for people everywhere. needed. This often meant overcoming This is indeed an ambitious mission we’ve set for tremendous logistical challenges, given the ourselves. We are not afraid of thinking on a grand scale, heightened security precautions authorities even as we maintain a sharp focus on the details. You’ve put your faith in a company with an unwavering undertook to contain the outbreak. vision and growth opportunities as far as the eye can see – We are very proud that Ecolab products and then some. We are wholeheartedly committed to were called into service to aid in combating delivering shareholder value and earning your continued trust. Those are details no company can afford to ignore. Here at the virus, and that government and medical Ecolab, we never have and never will. officials have looked to our associates for their Remember, with Ecolab the difference is in the details! cleaning and sanitation expertise. It feels great knowing Ecolab’s work is helping businesses protect their brands. It feels even better knowing that we also have an impact on Allan L. Schuman Chairman of the Board and Chief Executive Officer protecting peoples’ lives. Those are the details that really matter. ECOLAB 2003 details matter < 5
  10. 10. details drive ecolab’s global success It begins with our people. Ecolab associates are expertly trained. Vigilant. Devoted to our customers. Committed to excellence. And every day they provide the widest range of cleaning, sanitation and service solutions to customers around the world. 6 > ECOLAB 2003 details matter
  11. 11. Turn the page to see everything we can do for a restaurant - just one of the many kinds of businesses and institutions we proudly serve. > > > ECOLAB 2003 details matter < 7
  12. 12. ▼ ▼3 ▼5 1 heating & cooling exterior cleaning equipment Our water treatment programs help With our complete program, they keep Whenever they need emergency service, keep their boiler and cooling system their outside areas – windows, dumpsters, parts or preventive maintenance for their operating efficiently. sidewalks and more – clean and sanitary. kitchen equipment, we’re there. 2 vehicle care 4 warewashing ▼6 odor counteractants ▼ ▼ A patron had her sedan cleaned at a full- Their dishes, glasses and flatware are Our odor counteractants destroy unwanted service car wash that uses our deter- clean and spot-free thanks to our smells, so the only thing patrons notice is the gents, waxes and detailing products. presoaks, detergents and rinse additives. aroma of fine food. 1 3 4 5 6 2 15 17 13 14 18 16 ▼ ▼ ▼ 15 bar glass cleaning 13 commercial laundry 17 warehandling Unclean glasses can leave a bad taste in The kitchen and wait staff’s uniforms are Our heavy-duty racks, dishtables and dolly patrons’ mouths, but our products keep laundered at a large off-site facility that carts help the restaurant store and transport barware sparkling and sanitary. uses our specialized wash programs. tableware without breakage. ▼ ▼ ▼ 16 carpet care 14 employee safety 18 hand care They use our full range of integrated To reduce injuries and related liability Our hygiene products help prevent the spread maintenance products to clean, protect risks, our many solutions are utilized of foodborne illness by keeping food handlers’ and extend the life of their carpeting. throughout the establishment. hands clean and sanitary at all times.
  13. 13. 7 front-of-house cleaning ▼ 9 cleaners and polishes ▼ 11 pest elimination ▼ Our products remove soil, restore sheen The restaurant uses our products and systems Our comprehensive services ensure and protect metal surfaces such as stain- for general cleaning, glass cleaning, sanitizing that pests such as flies and rats aren’t less steel, brass, copper and aluminum. and odor control in all of their guest areas. at home anywhere on the premises. 10 kitchen cleaning ▼ 12 restroom sanitation ▼ 8 dishmachines ▼ Our products cover the entire kitchen, Through Ecotemp, they get our premium dish- Their restrooms look and smell great from food prep to the cooler, for superb washing equipment, products and service – thanks to our complete line of restroom protection against foodborne illness. minus capital expense or repair costs. cleaners and sanitizers. 9 11 10 12 8 7 21 19 23 20 22 24 ▼ ▼ ▼ 19 floor care 21 dairy processing 23 water filtration Our solutions help keep front-of-house The milk, cheese and other dairy prod- Our programs improve beverage, ice floors looking their best, while removing ucts served are processed in plants utiliz- and food quality by removing bad tastes slippery, greasy soil from kitchen floors. ing our advanced sanitation systems. from drinking and ingredient water. ▼ ▼ ▼ 20 food processing 22 food safety 24 on-premise laundry Our sanitation programs are used to From thermometers to color-coded cut- Our innovative on-premise laundry solu- maximize quality and food safety at the ting boards, we have an array of products tions help keep the restaurant’s table- facility where this chicken was processed. to reduce the risk of foodborne illness. cloths, napkins and towels looking new.
  14. 14. products infused with power 2 1 5 5 5 Our products and equipment are superior. Not one-size-fits-all. But unique. Meeting very specific needs. With technologically advanced packaging and dispensing. Total systems. For total results. > > > 10 > ECOLAB 2003 details matter
  15. 15. 2 oasis pro ▼ 4 endure 320 ▼ 3 bacti-foam ▼ 1 orange force ▼ This complete, cost- This waterless, Developed for healthcare With a pleasant orange effective hospitality and antimicrobial hand rinse personnel, this instant- fragrance, this multi- healthcare housekeeping features a new lotion lather hand wash saves purpose cleaner/degreaser program boasts products formula that provides time and money while meets the unique demands that meet cleaning needs mildness and efficacy. promoting a high level of of the commercial market. around the world. protection. 3 4 8 6 7 ▼ ▼ ▼ ▼ 6 marketguard 5 asepti-solids 7 solids 8 typhoon Across the globe, we help New for healthcare central We pioneered solid chemistry, This is the industry’s most supermarkets maintain the sterile environments, these and today our revolutionary advanced low-temp dishma- highest standards of cleanli- small, lightweight solid blocks warewashing formulas set the chine, featuring exclusive ness and sanitation with this are packed with powerful standard for innovation, solid products technology comprehensive program. cleaning performance. performance and results. and a revolutionary ventless steam removal system. ECOLAB 2003 details matter < 11
  16. 16. solutions born of research WO COMPONENT BIOCIDAL SYSTEM 4684469 SOLID CAST DETERGENT DISPENSER WITH INSERT FOR HOLDING NON-COMPATIBLE CHEMICALS 4571327 CAST DETERGENT CONTAININ HEMICAL SOLUTION DISPENSER APPARATUS AND METHOD OF USING 4858449 CHEMICAL SOLUTION DISPENSER APPARATUS AND METHOD OF USING 4964185 METHOD FOR FORMIN 587030 METHOD AND APPARATUS FOR DISPENSING A FLUID USING A FLUID OPERATED TIMER 4651907 DISINFECTANT POLYMERIC COATINGS FOR HARD SURFACES 5154920 PROCES F FOOD PROCESSING EQUIPMENT 4935065 ENCAPSULATED HALOGEN BLEACHES AND METHODS OF PREPARATION ANDUSE 5213705 WATER INSOLUBLE ENCAPSULATED ENZYMES P ETHOD FOR DISPENSING A DETERGENT SOLUTION 5016790 PHOSPHINATED AND PHOSPHONATED SULFONIC ACIDS 4781865 METHOD OF MAKING SOLID CAST ALKALINE DETERGEN STITUTIONAL SOFTENER CONTAINING CATIONIC SURFACTANT AND ORGANIC ACID 4769159 METHOD AND APPARATUS FOR CONTROLLING THE CONCENTRATION OF A CHEMICAL SO OURCE OF ACTIVE HALOGEN 4711738 DETERSIVE SYSTEMS AND LOW FOAMING AQUEOUS SURFACTANT SOLUTIONS CONTAINING A MONO-AMINE OXIDE COMPOUND 4921627 ASPIR ONTAINING ARTICLE AND METHOD OF MAKING AND USING 5080819 METHOD FOR FORMING SOLID DETERGENT COMPOSITIONS 4680134 SOLID CAST DETERGENTS CONTAINING ENC LOCK CHEMICAL DISPENSER 4687121 FOR CLEANING SYSTEMS ENCAPSULATED BLEACHES 4830773 MODULAR DISPENSER-DESIGN DES306224 ENCAPSULATED BLEACH PARTICLES OLYMERIC COATINGS FOR HARD SURFACES 4999386 IMPROVED DISINFECTANT 4883828 POLYMERIC COATINGS FOR HARD SURFACES GRAFT COPOLYMERS OF A POLYETHER MOIETY ACES 5061485 MODULAR DISPENSER WITH RESERVOIR DES308738 SOLID BLOCK CHEMICAL DISPENSER 4999124 FOR CLEANING SYSTEMS MODULAR DISPENSER WITH RESERVOIRS OMPRISING A WATER SOLUBLE BAG CONTAINING A MULTIPLE USE AMOUNT OF A PELLETIZED FUNCTIONAL MATERIAL AND METHODS OF ITS USE 5078301 ARTICLE COMPRISING A W ESS ION COMPLEXING AGENT 4971714 NON-FILMING HIGH PERFORMANCE SOLID FLOOR CLEANER 4861518 FOOD ADDITIVE SANITIZING COMPOSITION 5234719 STORAGE STABLE AQ IR FRESHENER DEVICE 5234162 STATIC AIR FRESHENER DEVICE AND CARTRIDGE 5050798 DRAIN TREATMENT PRODUCT AND METHOD OF USE 6197321 DISPENSER FOR AIR FRESHEN ETERGENT 5340501 METHOD AND APPARATUS FOR DISPENSING POWDERED PESTICIDE 4948013 CHLORINATED SOLID RINSE AID STABLIZED DETERSIVE-SYSTEM CONTAINING WATER INATING ANTIMICROBIAL COMPOSITION 5139788 A CONTROLLED RELEASE SYSTEM FOR A FLYING INSECT ATTRACTANT COMPOSITION 5229126 PROCESS FOR MANUFACTURING 636 ENT SOLUTION 5100032 CHEMICAL SOLUTION DISPENSING AND HANDLING SYSTEM 5033649 PERFORMANCE MONITORING SYSTEM FOR WAREWASHING MACHINES 5038807 PROCES OMPOSITION AND METHODS OF USE 4954283 ANTIMICROBIAL LUBRICANT COMPOSITION CONTAINING A DIAMINE ACETATE 5182035 CONVEYOR LUBRICANT COMPOSITION HAVING S SING PEROXYACID ANTIMICROBIAL COMPOSITION 6326032 SANITIZING COMPOSITION COMPRISING A BLEND OF AROMATIC AND POLYUNSATURATED CARBOXYLIC ACIDS 5336500 SA ALKALINE SOLID CLEANING COMPOSITIONS 6124250 WATER SOLUBLE OR DISPERSIBLE FILM COVERED ALKALINE COMPOSITION 5316688 SOLUTION PROPORTIONER AND DISPENS OLID BLOCK DETERGENT 6664219 METHOD OF REMOVING WAXY/FATTY SOILS FROM WARE WITH A COMBINATION OF A NONIONIC SILICONE SURFACTANT AND A NONIONIC SURFACT LOCK DETERGENT 5674831 UREA-BASED SOLID CLEANING COMPOSITIONS FREE FROM OR CONTAINING MINOR AMOUNTS OF WATER 5698513 HEXAGONAL CHEMICAL BLOCK DESIG RICAL CHEMICAL DETERGENT BLOCK DESIGN DES334421 AIR FRESHENER DEVICE AND CARTRIDGE WITH BATTERY 5342584 SOLID PRODUCT STATIC BRAKE FOR SOLID BLOCK CHEM AL CONCENTRATES AT POINT OF USE 5404893 SELF-OPTIMIZING DETERGENT CONTROLLER FOR MINIMIZING DETERGENT SET-POINT OVERSHOOT 5556478 SQUARE GROOVED DETER ETHOD FOR DISPENSING SOLID RINSE AIDS 5501742 METHOD AND APPARATUS FOR DISPENSING MOISTURE-SENSITIVE UNIT DOSE PACKAGES 5249737 METHOD AND APPARATUS FO ISPENSER ASSEMBLY DES334102 NOVEL LOW FOAMING RINSE AGENTS COMPRISING ETHYLENE OXIDE/PROPYLENE OXIDE BLOCK COPOLYMER 5589099 MULTIPLE PRODUCT DISPEN OR FORMING USE SOLUTION FROM SOLID CHEMICAL COMPOSITIONS 5494644 NOVEL LOW FOAMING RINSE AGENTS COMPRISING ALKYLENE OXIDE MODIFIED SORBITOL FATTY ACID ICROBIAL GROWTH IN AQUEOUS TRANSPORT STREAMS 5409713 PERCARBOXYLIC ACID RINSE METHOD 6257253 PROCESS FOR CONSOLIDATING PARTICUALTE SOLIDS AND CLEANIN ETERGENT BLOCK DES355240 5503838 METHOD OF SANITIZING AND DESTAINING TABLEWARE 5578134 LOW PRODUCT ALARM FOR SOLID PRODUCTS 5417233 THERMO-CHROMATIC 630434 SHAPED SOLID COMPRISING OXIDANT BLEACH WITH ENCAPSULATE SOURCE OF BLEACH 5407598 SHAPED SOLID COMPRISING OXIDANT BLEACH WITH ENCAPSULATE SOURC ACILITATE SOIL REMOVAL 5370729 FOOD SAFE COMPOSITIONS TO FACILITATE SOIL REMOVAL 5407700 THERMOPLASTIC COMPATIBLE LUBRICANT FOR PLASTIC CONVEYOR SYSTEMS ETHOD AND APPARATUS FOR MEASURING AND CONTROLLING HYPOCHLORITE ION CONCENTRATION IN A BLEACH ENVIRONMENT 5770039 DECORATIVE HOUSING FOR WALL MOUNT PROVED SOLID CLEANER 5397506 PARTICULATE SUSPENDING ANTIMICROBIAL ADDITIVES 5462681 PERFORATED, STABLE, WATER SOLUBLE FILM CONTAINER FOR DETERSIVE COMPO RATES DES360135 SOIL RELEASE COATING FOR HEAT TRANSFER SURFACES 5494503 PROCESS FOR EFFECTING MICROBIAL CONTROL AND REDUCING SLIME GROWTH ON HARD SUR We employ cutting-edge science. Chemistry. Biology. Engineering. More. Combined in unbridled innovation. A corps of great minds. All asking, “Why not?” And creating tomorrow’s breakthroughs. Today. > > 12 > ECOLAB 2003 details matter
  17. 17. G ARTICLE AND METHOD OF MAKING AND USING 4569780 LOW PHOSPHATE LIQUID CLEANING COMPOSITION 4579676 PROCESS FOR DRYING AN ENZYME IN A FLUIDIZED BED 46172 G SOLID DETERGENT COMPOSITIONS 4595520 SOLID RINSE AIDS AND METHODS OF WAREWASHING UTILIZING SOLID RINSE AIDS 4624713 FOAMABLE, ACIDIC CLEANING COMPOSITI FOR ENCAPSULATING PARTICLES WITH AT LEAST TWO COATING LAYERS HAVING DIFFERENT MELTING POINTS 4657784 PHOSPHATE-FREE ALKALINE DETERGENT FOR CLEANING-IN- ROTECTED AGAINST DEACTIVATION BY HALOGEN BLEACHES 4965012 NYSTATIN ANTI-FUNGAL PRODUCT 4826822 SOLID CAST WAREWASHING COMPOSITION 4846989 APPARATUS A T COMPOSITION 4725376 SOLID BLOCK CHEMICAL DISPENSER FOR CLEANING SYSTEMS 4690305 METHOD OF PREPARING PHOSPHOROUS-FREE STABLE DETERGENT EMULSION 478 LUTION 4733798 SOLID LAUNDRY PRODUCT DISPENSER 4845965 MECHANICAL DISHWASHING RINSE COMPOSITION HAVING A LOW FOAMING SULFONIC ACID RINSING AGENT AND A ATING FOAMER SOLID CAST WAREWASHING COMPOSITION 4933102 CLEANER FOR REFRIGERATED AND SUB-FREEZING STORAGE AREAS 4978469 LOW TEMPERATURE CAST DETERG APSULATED HALOGEN BLEACHES AND METHODS OF PREPARATION AND USE 4681914 DISHWASHING APPARATUS INCLUDING A FLIP-TOP SOLID DETERGENT DISPENSER 4836229 SO WITH AT LEAST TWO COATING LAYERS HAVING DIFFERENT MELTING POINTS 4731195 METHOD AND APPARATUS FOR DISPENSING POWDERED PESTICIDE 4867341 IMPROVED DISINFE ON A POLYCARBOXYLATE BACKBONE 4874540 CHEMICAL MIXING AND DISPENSING SYSTEM 4976137 DRAINING LID DES314514 DISINFECTANT POLYMERIC COATINGS FOR HARD SU DES308739 ARTICLE COMPRISING A WATER SOLUBLE BAG CONTAINING A MULTIPLE USE AMOUNT OF A PELLETIZED FUNCTIONAL MATERIAL AND METHODS OF ITS USE 5198198 ART ATER SOLUBLE BAG CONTAINING A MULTIPLE USE AMOUNT OF A PELLETIZED FUNCTIONAL MATERIAL AND METHODS OF ITS USE 5234615 DETERSIVE SYSTEM WITH AN IMPROVED H UEOUS SOLUBLE GERMICIDAL FILM FORMING COMPOSITION 5158766 ANTIMICROBIAL FILM-FORMING COMPOSITIONS 4908381 ANTIMICROBIAL FILM-FORMING COMPOSITIONS 5108 ER DES313846 STATIC AIR FRESHENER DES313845 SOLID CONCENTRATE IODINE COMPOSITION 5310549 SOLID FOOD GRADE RINSE AID 5447648 SOLID HIGHLY CHELATED WAREWAS SOLUBLE FILM ARTICLE 5384364 DISHWASHING APPARATUS INCLUDING A FLIP-TOP SOLID DETERGENT DISPENSER 4938240 ANTIMICROBIAL CONVEYOR LUBRICANT 5244589 NONCO 5568 SOLID CAST SILICATE-BASED DETERGENT COMPOSITIONS AND RESULTANT PRODUCTS PEROXY ACID GENERATOR 5122538 RESERVOIR FOR COLLECTING DISSOLVED SOLID DET S OF DISPENSING A SOLID CAST BLOCK OF WATER SOLUBLE DETERGENT 5310430 STABLE HYGROSCOPIC SOLID DETERGENT ARTICLE 5759988 STABLE ANTIMICROBIAL DIALDEHYD UPERIOR COMPATIBILITY WITH SYNTHETIC PLASTIC CONTAINERS 5174914 PEROXYACID ANTIMICROBIAL COMPOSITION 5718910 BEVERAGE MANUFACTURE AND COLD ASEPTIC BOTT NITIZING COMPOSITION COMPRISING A BLEND OF AROMATIC AND POLYUNSATURATED CARBOXYLIC ACIDS 5419908 AN ERODIBLE SANITIZING CAULK 5622708 METHOD OF MAKING NG SYSTEM 5259557 IMPROVED APPARATUS FOR DILUTION OF LIQUID PRODUCTS 5255820 A COMBINATION OF A NONIONIC SILICONE SURFACTANT AND A NONIONIC SURFACTANT IN ANT METHOD OF MAKING NON-CAUSTIC SOLID CLEANING COMPOSITIONS 6060444 A COMBINATION OF NONIONIC SILICONE SURFACTANT AND A NONIONICSURFACTANT IN A SOLID N DES334420 RAISED CONICAL CHEMICAL BLOCK DESIGN DES334968 STEPPED BLOCK CHEMICAL DESIGN DES335330 CYLINDRICAL CHEMICAL BLOCK DESIGN DES334227 KEYED CY ICAL DISPENSERS 5194230 TWO PART CHEMICAL CONCENTRATE 6211129 TWO PART CHEMICAL CONCENTRATE 6455484 APPARATUS AND METHOD FOR MIXING AND DISPENSING CH GENT BLOCK DESIGN DES335699 LIQUID DISPENSER WITH COLLAPSIBLE RESERVOIR 5248066 APPARATUS AND METHOD FOR DISPENSING SOLID RINSE AIDS 5320118 APPARATUS AN R DISPENSING MOISTURE-SENSITIVE UNIT DOSE PACKAGES 5328082 CART FOR DISPENSER ASSEMBLY DES335566 SPRAY GUN FOR DISPENSER ASSEMBLY DES337370 WIRE RACK F SING SYSTEM INCLUDING DISPENSER FOR FORMING USE SOLUTION FROM SOLID CHEMICAL COMPOSITIONS 5607651 MULTIPLE PRODUCT DISPENSING SYSTEM INCLUDING DISPEN ESTER AND DEFOAMING AGENT 6294515 DISPENSING APPARATUS HAVING A REMOVABLE VARIABLE PROPORTIONING AND METERING DEVICE 5344074 PROCESS FOR INHIBITION OF G PRODUCTS THEREFROM 5858299 LIQUID CHEMICAL DILUTION AND DOSING SYSTEM 5746238 PLASTICWARE-COMPATIBLE RINSE AID 5501815 IODINE-BARRIER TEAT DIP CHEMICAL DETERGENT LEVEL INDICATOR 5385044 THERMO-CHROMATIC DETERGENT LEVEL INDICATOR 5707590 THICKENED HARD SURFACE CLEANER 6268324 THICKENED ALKALINE CLEANER E OF BLEACH 6589443 METHOD OF MAKING A SOLID ALKALINE CLEANING COMPOSITION 5474698 REDUCED MISTING SPRAY OVEN DEGREASER 5364551 FOOD SAFE COMPOSITION 5559087 DUAL ASPIRATOR 5799831 CONCENTRATED PRODUCT DILUTION SYSTEM 5443094 METHOD AND APPARATUS FOR STORING AND DISPENSING CHEMICAL SOLUTIONS 558432 ED ELECTRICAL UNIT DES357762 ALKALINE CLEANERS BASED ON ALCOHOL ETHOXY CARBOXYLATES 6274541 ALKALINE CLEANERS BASED ON ALCOHOL ETHOXY CARBOXYLATES 6 SITIONS 5534178 WATER POWDER AS A SYNERGIST IN PEST BAITS 5820855 FAT-BASED PEST BAIT 5464613 PETROLEUM BASED PEST BAIT 5914105 BOTTLE FOR CHEMICAL CONCEN FACES IN FOOD PROCESSING EQUIPMENT USING INLINE OZONATION 5858443 APPARATUS AND METHOD FOR CLEANING AND RESTORING FLOOR SURFACES 5716260 IMPROVED APP Our world-class research, development and engineering team has developed thousands of differentiated, proprietary products and systems over the years, yielding several thousand U.S. and > international patents - just a few of which are listed above. ECOLAB 2003 details matter < 13
  18. 18. service completes the circle Our service is personal. Reliable. Prompt. Thorough. From in-service training to real-time service reporting. Ordering to repairs. We do it all for our customers. Because they’re No. 1. > > > 14 > ECOLAB 2003 details matter
  19. 19. At a neighborhood supermarket, an Ecolab sales-and-service associate trains deli employees on the proper way to clean meat slicers and other food-contact surfaces using our high-performance products. ECOLAB 2003 details matter < 15
  20. 20. details matter UNITED STATES: KAY INSTITUTIONAL Vigorous new account gains The Institutional Division 2003 and new product sales paved achieved steady growth the way for Kay to achieve during 2003 despite double-digit sales and economic challenges within review of operating income growth its markets. It continued to during 2003, outpacing each increase market share in all of of the core industries it its core segments, and took operations serves. strategic steps to further improve operating efficiency HIGHLIGHTS and customer retention. > Maintained its strong competitive position, winning HIGHLIGHTS > > > > > > > > > > > > substantial new business, as > Seized market share from the well as strengthening its competition and further relationships with existing strengthened its position in the customers. corporate account arena, > Further bolstered its business in The fine points. The nuts and bolts. thereby enhancing its position the food retail industry via as the industry leader in The inches. Whatever you call them, MarketGuard, a cross-divisional providing large, multi-unit program through which Kay’s restaurant and hospitality details matter. They definitely matter to offerings are aligned with operations with consistent, Ecolab’s Pest Elimination and chain-wide service and support. Ecolab’s customers, who look to us for Professional Products offerings > Continued to penetrate the in a comprehensive package. independent restaurant market products, systems and services that > Introduced more than two dozen by leveraging its solid distributor new products including Liquid partnerships and through the are not only ingenious, but also Storm XP and Liquid Storm introduction of two new packets, two highly anticipated Ecotemp dishmachines: the in-depth, positively impacting every additions to its Liquid Storm low-temperature Typhoon and product line for power wash the high-temperature Inferno, facet of their operations. Details are sinks. both of which feature exclusive, > Made investments to meet built-in solid product technology equally important to Ecolab’s growing customer demand for and a revolutionary ventless web-enabled management data steam removal system. investors. They know the unwaveringly and Kay field service activity at > Launched innovative new the unit level. This advanced aggressive execution of our Circle the offerings such as Formula 1, a technology is becoming single-step, on-premise laundry Customer - Circle the Globe strategy is particularly popular among large system designed for the quickservice restaurant chains hospitality industry, and X-Static what generates the consistently and major food retail chains. Soft ’n Scented Static Control Blocks, which mount directly superior performance they’ve come to OUTLOOK inside dryers, providing precise Kay forecasts another year of static reduction, extra softness expect from us. robust growth, with the division and a long-lasting aroma. realizing annualized benefits from customers gained in 2003 and OUTLOOK additional expected new account Institutional expects to drive Read on for a detailed summary of the growth in 2004. Food retail growth further growth in 2004 by is expected to be particularly continuing to aggressively pursue specific actions taken by our operating strong, with more existing grocery new corporate and independent accounts expected to participate customers, and by rolling out divisions and business units during in the MarketGuard program. several new, technologically advanced product and system 2003, along with some insight into innovations in its core markets. It their anticipated performance in 2004. also remains committed to the continued expansion and development of its industry- leading sales-and-service force, with priorities being training and field specialization. 16 > ECOLAB 2003 details matter
  21. 21. PROFESSIONAL PRODUCTS PEST ELIMINATION GCS SERVICE TEXTILE CARE Professional Products posted 2003 was another year of Following the acquisitions The Textile Care Division good sales growth during solid, double-digit growth for made over the past few years signed a number of sizable 2003 in both of its core Pest Elimination as it that created and built the corporate account markets. Its results were continued to capitalize on the business, GCS Service under- agreements during 2003, bolstered by a large enormous cross-selling took a number of actions which – along with improved corporate account win in the opportunities available within designed to consolidate profitability – helped to janitorial sector and better Institutional, Food & administrative operations and partially offset an otherwise penetration into the hospital Beverage, Kay and other standardize service protocols very challenging year in acute care segment. Ecolab accounts. Pest in 2003. While this focus on which industry difficulties, Elimination’s performance internal development resulted such as customer HIGHLIGHTS was especially strong in the in lower 2003 results, these consolidation and a reduced > Delivered growth in the retail quickservice restaurant and actions have set GCS on a demand for rental uniform and building service contractor food retail industries. course for long-term growth. cleaning, resulted in lower segments both by leveraging its sales. distributor network and by HIGHLIGHTS HIGHLIGHTS focusing increased field and > Won a number of valuable new > Established a single National HIGHLIGHTS support resources on national food retail accounts, including a Customer Service Center that > Focused significant energy on and regional corporate nationally prominent discount contains a call center operation strengthening its field accounts. retailing chain, through the and an administrative support sales-and-service organization, > Building on Ecolab’s legendary cross-divisional MarketGuard center that incorporates the particularly management, as the solids platform, the division program. With MarketGuard, work formerly handled by 33 division renewed its launched the Asepti-Solids Pest Elimination’s offerings are regional branch locations, a commitment to aggressively product line into the hospital marketed in tandem with Kay move designed to greatly growing its business in its core acute care segment, where it is and Professional Products improve operating efficiency. commercial laundry and shirt utilized for central sterile offerings. > Continued to strengthen its field laundry segments. instrument cleaning. It has > Added to its Checkpoint Rodent service protocols, enhancing > Continued the process of exiting experienced terrific success in Program with a line of exterior response times and overall unprofitable accounts, thereby the market. Discreet Bait Stations, which service capabilities. allowing its field and support > Introduced Endure 320 are rodent deterrent units > Gained corporate account resources to be more effectively Advanced Care, a waterless, placed strategically around the business in the quickservice utilized in the quest for valuable antimicrobial healthcare hand exterior of a facility. Designed to market, the family-dining corporate account gains. rinse with a new lotion formula be indiscernible to a facility’s segment and the hospitality > Introduced the Energy that provides high levels of customers, these units are market, leveraging cross-selling Optimiser, a heat exchange mildness and efficacy. The offered in models that appear to opportunities with Ecolab’s other system for professional product was immediately called be rocks or exhaust vents. divisions. laundries that was originally into action on the front lines of > Further grew its EcoSure food > Received a number of awards developed by the Textile Care the SARS outbreak. safety consulting business with from the Commercial Food Division in Europe. It not only the addition of key corporate Equipment Service Association helps reduce energy costs, but OUTLOOK accounts. These included (CFESA) for its field service also improves rinsing results Professional Products anticipates several major restaurant chains organization, which is and reduces drying times. The another year of strong sales and a discount retailer. considered the most highly Energy Optimiser has been growth in 2004, although the exit trained and professional in the offered with the Aquamiser, a from a low-margin janitorial OUTLOOK industry – as evidenced by the water reuse system, and Ecolab equipment distribution business Sustaining the momentum fact that last year it led the chemistry such as the popular will likely offset reported sales generated throughout 2003, Pest industry in attaining CFESA Turbo-Flextra Visco Conditioner. progress. Earnings, however, Elimination expects to continue its technical certifications. should show good gains as the strong growth in 2004. The OUTLOOK division’s product mix improves. division will maintain its focus on OUTLOOK In 2004, Textile Care will continue The healthcare business, which developing innovative product and GCS Service expects the to reinvigorate its business will operate as a separate division service programs that address the infrastructure investments of 2003 through aggressive sales-and- beginning in 2004, expects the unique needs of each specific to begin paying off with sales and service efforts that emphasize its Asepti-Solids program’s good market it serves. Pest Elimination profit improvement in 2004 as the ability to deliver customer growth trends to continue. will also work with its European division leverages its national solutions that provide total cost associates to create operational network for growth. It will also management. Although the synergies and leverage work to further increase the industry’s challenging market opportunities to secure new global productivity and profitability of its environment will be an ongoing accounts. field service organization via concern, the division plans to continuous training efforts and combat its effects via a focus on additional investments in improved profitability. efficiency-enhancing technologies. ECOLAB 2003 details matter < 17

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