1. 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

2. 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

3. INTERNATIONAL:
EUROPE/AFRICA/
WATER CARE
MIDDLE EAST & EXPORT
SERVICES
FOOD & BEVERAGE VEHICLE CARE
Europe achieved good sales
Water Care Services showed
The Food & Beverage Vehicle Care showed good
and better margin growth in
good improvement in 2003,
Division’s 2003 sales and sales growth and improved
fixed currencies in 2003, as
benefiting from strong,
earnings rose modestly thanks its margins during 2003. The
steady gains in its Healthcare
double-digit sales growth in
to key corporate account division’s performance was
and Textile Care businesses,
the hospitality and cruise line
gains, successful new product buoyed by robust sales of
along with strategic
industries.
offerings and a new new offerings, including a
acquisitions, led revenues.
market-specific approach to product line specially tailored
HIGHLIGHTS The weaker U.S. dollar
merchandising Ecolab’s value for the growing self-service
> Initiated a segment-specific leveraged these results to
to customers, all of which car wash sector.
sales-and-service approach yield even stronger gains
helped offset weakened
through which its field HIGHLIGHTS when translated to dollars.
conditions in the dairy
specialists are dedicated to > Exceeded growth targets for its
industry.
HIGHLIGHTS
serving a particular industry, Westley’s Self Serve line for
> Institutional sales benefited from
whether it is hospitality, food
HIGHLIGHTS self-service car wash
the pan-European introduction of
and beverage, healthcare, or
> Gained a considerable number of operations. Westley’s pre-soaks,
Oasis Pro and Penguin, a
other targeted industries.
significant corporate accounts, detergents and conditioners
professional cleaning system for
> Leveraged cross-selling
particularly in the meat/poultry provide not only superior
large hospitality and healthcare
opportunities with other Ecolab
processing market, in which the cleaning results, but also a
facilities.
divisions to secure a number of
division has been competing higher level of foam, color and
> Food & Beverage posted
key account gains, particularly
exceptionally well against fragrance.
continued good results across all
in the hospitality, food and
national and regional > Made substantial gains in the
segments, although regional
beverage, healthcare and
competitors. in-bay automatic sector by
economic challenges affected
commercial laundry industries.
> Successfully launched Exxelerate forging new and strengthened
growth. Especially successful
> Signed several significant
CIP, a premium liquid detergent alliances with wash equipment
were its Total Hygiene
contracts with state-operated
for use in fluid milk processing manufacturers.
Management program, which
and privately run prisons by
facilities. It is formulated with a > Expanded sales-and-service
helped it win several large
focusing increased attention on
unique surfactant that allows the efforts in the division’s core
corporate accounts, and the
valuable prospects within the
product to remove tough soils sector, full-service conveyor car
Kovex Foam System, an
governmental sales arena.
and rinse faster than traditional washes. Established a dedicated
innovative solution for improving
> Formally launched Blackwater
detergents. sales team focused solely on
hoof sanitation in dairy herds.
100 to the cruise industry. This
> Introduced Lubodrive FP, a new account gains with the
> Professional Products
product helps prevent costly
conveyor lubricant specially growing number of large chain
transformed its business model,
blockages in onboard plumbing
formulated for use on high-speed operators in this arena.
focusing more extensively on
lines that run between guest
PET packaging lines, and Cosa > Posted record sales for its Solid
customer segments and on new
rooms and ships’ waste
CIP 1000, a low-foaming, Ovation and Harmony product
product launches.
treatment facilities.
free-rinsing detergent designed to lines. Solid Ovation delivers
> Healthcare had a good year, with
remove typical pharmaceutical concentrated power in a
the integration of Adams
OUTLOOK
and cosmetic processing soils. lightweight, convenient package,
Healthcare positioning Ecolab as
On the strength of further gains in
> Began merchandising its food while Harmony features 11
a leading player in the European
hospitality and healthcare, as well
safety and brand protection products for conveyor washes
hospital acute care market.
as good gains in the food and
expertise via EcoShield, a designed to work together for
> The Africa, Middle East and
beverage industry, Water Care
comprehensive, cross-divisional maximum effectiveness.
Export businesses were aligned
Services expects to accelerate its
marketing program through which
with Europe in 2003.They
growth performance in 2004. The
individualized product and service OUTLOOK
achieved modest growth, with
division will continue to pursue
messages are tailored to each of Vehicle Care foresees continued
good results in Turkey and South
opportunities to build its business
the division’s specific markets. good sales and profit growth in
Africa helping to offset
within Ecolab’s existing customer 2004, supported by an aggressive
continuing economic and political
base, as well as drive new
OUTLOOK sales focus in each of its three
strife in Israel and elsewhere.
account growth through
Food & Beverage is well positioned major sectors: full-service
aggressive sales-and-service
for continued growth in 2004. It conveyor, in-bay automatic and
OUTLOOK
efforts.
expects to build on its corporate self-service. New product sales
Ecolab Europe anticipates an
account gains of 2003 by are expected to remain a key
improved performance in 2004 by
leveraging the strengths of its new driver of the division’s growth, as
undertaking key initiatives to
product offerings and the EcoShield will a comprehensive new initiative
outpace local economies and
program. Further, with wholesale to circle its customers with
market challenges. It is set to focus
milk prices making a good recovery solutions from Ecolab’s other
on customer segmentation,
after hitting a 30-year low early in businesses.
distribution channel expansion and
2003, the division looks forward to
a variety of new product launches.
improved agribusiness results
during 2004.
18 > ECOLAB 2003 details matter

4. CANADA LATIN AMERICA
ASIA PACIFIC
Canada achieved solid sales The Latin America business
Offsetting the SARS
and earnings growth on the delivered excellent sales and
outbreak, which caused a
strength of its success with profit growth in the face of
significant downturn in the
independent (“street”) ongoing political and
region’s hospitality and travel
restaurants and steady Food economic upheaval in the
industries, Ecolab’s Asia
& Beverage and Vehicle Care region. High points included
Pacific management team
gains, along with increased double-digit Pest Elimination
increased sales and profits in
sales of handcare offerings and Institutional growth
2003 by introducing
during the SARS crisis, throughout the region, led by
SARS-related products and
which hit the Toronto area robust growth in Mexico,
services, such as widely used
hard in early 2003. Central America and the
hand sanitizers, and by
Caribbean.
utilizing other effective
HIGHLIGHTS
growth strategies.
> Adopted a truly multi-divisional HIGHLIGHTS
approach to combating the > Continued to expand its
HIGHLIGHTS
effects of the SARS-related business in the food retail
> Aggressively worked to
drop-off that hurt Canada’s industry, with particularly strong
counterbalance the SARS
tourism industry. The various new account sales in Mexico,
downturn by seizing upon
businesses worked Brazil, Chile and the Caribbean.
opportunities to enter new
cooperatively to develop new > Grew Food & Beverage sales in
markets, including schools,
growth opportunities within most countries. Growth was
commercial buildings and retail
alternative markets, delivering aided by the successful rollout
facilities. Boosted growth in core
good sales gains despite the of Vortexx ES, an advanced
markets by organizing seminars
tough external obstacles. hard-surface sanitation solution,
on cleaning and sanitation
> Grew its Institutional street and several new lubricants in
practices with regional trade
business by forging enhanced the second half of the year.
associations and academic
relationships with its distributor > Bolstered its Pest Elimination
institutions.
partners. The launch of new growth by aggressively targeting
> The Ecotemp dishmachine
Inferno and Typhoon new corporate account business
program’s strong growth played
dishmachines from Ecotemp within the food and beverage
a major role in further
helped street sales. processing, food retail, and
expanding Institutional’s “street”
> Continued to enjoy success quickservice restaurant
business, as well as helped win
throughout Canada’s food and industries.
key corporate accounts.
beverage processing industry, > Succeeded in taking a variety of
> The Kay business enjoyed a
particularly with meat and strategic measures to
strong year in Japan, where it
poultry producers, and counterbalance the challenging
leveraged its value-added
benefited from multi-facility, political and economic
approach to customer
North America-wide corporate environments in the region –
satisfaction to forge a leading
account wins with large food particularly the political situation
supplier agreement with a major
product manufacturers. in Venezuela, which paralyzed
quickservice chain.
the country’s economy early in
> Increased its Food & Beverage
OUTLOOK the year.
market share in Japan, China,
With an anticipated rebound of
Taiwan and Singapore by
the hospitality industry expected OUTLOOK
targeting beverage producers in
to improve sales opportunities, Latin America anticipates growth
the fast-growing cold aseptic
Canada is forecasting good gains across all divisions in 2004, with
bottling industry.
in 2004. The improved hospitality Pest Elimination expecting to
climate should drive increased register the strongest gains.
OUTLOOK
corporate account gains, and Tourism is expected to remain
With the region’s hospitality and
street business is expected to steady in the Caribbean, further
travel industries expected to
continue to grow due to Canada’s driving Institutional growth in the
gradually recover, the Asia Pacific
strengthened distributor region. Strong Professional
management team has committed
relationships. Food & Beverage Products sales are also forecasted
itself to growth, building on the
business is expected to remain in Chile. Continuing success in the
initiatives begun in 2003 and
sound, with growth projected in food retail industry and the
further developing its strong
the meat and food processing beverage/brewery segment will
historic base. Additionally,
sectors. help offset lingering regional
acquisitions are expected to help
market difficulties.
grow the burgeoning Pest
Elimination business in the region.
ECOLAB 2003 details matter < 19