1. up UNITED STATES:
turn it
urn
INSTITUTIONAL KAY
Institutional recorded a strong Kay achieved outstanding growth
performance in 2002, propelled across all of its segments in 2002,
by gains with independent restau- gaining new corporate accounts
rants and corporate accounts, and and market share through product
by market share expansion as the introductions, enhanced field ser-
lodging industry began a gradual vice and strong account retention.
recovery.
Highlights
2002 Review of Operations Highlights Gained several significant new chain
s
Made major account gains in the accounts in both the food retail ser-
s
independent restaurant market, vice (FRS) and quickservice restaurant
leveraging focused sales efforts (QSR) segments, continuing its leader-
To turn it up on a day-to-day basis, we count and partnering with food distributors ship in these key markets.
to seek new customers in this large s Launched DermaFoam, a new foam-
on our operating divisions and business units and fertile market. ing handcare program, and PureMark,
s Also made significant new corporate a water filtration program for ice and
to make it happen. Like the pistons in a high- account customer gains, increasing beverage machines, aimed at both
performance engine, they work together to gen- its market share. QSR and FRS customers.
s Created dedicated sales-and-service s Enhanced customer service and
erate the power that propels Ecolab’s success. personnel for the hospitality and improved synergies by training field
TURN IT UP
healthcare markets, focusing on service associates to work with
laundry, housekeeping, and pool customers across all segments.
From our sales-and-service associates, which
and spa; also added dedicated sales s Leveraged its strong customer rela-
provide service excellence worldwide 24 hours specialists in major regions to drive tionships to increase cross-divisional
new account growth. initiatives with other Ecolab divisions,
a day, 365 days a year, to our managers, charged s Introduced a range of new products, circling customers with additional
including Oasis Pro, a lodging and product and service solutions.
with leading their businesses to ever-greater
healthcare housekeeping system with
ECOLAB
levels of performance, our associates are all Outlook
concentrated products and greater
In 2003, Kay will continue to
dispensing efficiency, and X-Pert, a
united in the aggressive pursuit of growth. In aggressively pursue new corporate
liquid laundry system for customers
accounts in all its businesses as it
using home-style and small commer-
2002, our businesses worked harder than ever
drives for increased market share,
cial washing machines.
to deliver innovation and results, leveraging the as well as develop new opportu-
Outlook nities to complement its mix of
amazing vitality of Circle the Customer - Circle The Institutional Division expects offerings. Kay foresees ongoing
to continue its earnings and mar- gains in its core markets, with
the Globe to further strengthen Ecolab’s reputation
ket share growth in 2003 thanks particularly strong opportunities
in the global marketplace. to further gains with independent in the international QSR segment.
restaurants and corporate account
customers. The division will
Here is a business-by-business look at 2002’s
accelerate new product and service
highlights. introductions, and remain focused
on highly integrated marketing
programs and effective cost man-
agement, in order to outpace the
economy and industry.
Oasis Pro is a complete Sani-Wipes offer an
housekeeping program easier way to sanitize
for hospitality and food contact surfaces,
healthcare. with no rinsing.

2. PROFESSIONAL
GCS SERVICE PEST ELIMINATION PRODUCTS TEXTILE CARE
GCS Service further solidified its Customized programs and cross- Professional Products increased 2002 was a year of improvement
position as the only nationwide selling initiatives helped drive solid its core healthcare business in 2002 for Textile Care, as its new man-
provider of commercial kitchen 2002 growth in Pest Elimination’s and repositioned its janitorial agement team created innovative
repair and parts service, as it food and beverage, food retail and business for growth, although the operational efficiencies, focused
integrated recent acquisitions by government markets. planned phase-out of less profitable on its core commercial and shirt
leveraging the consistently high specialty businesses and product laundry business, and marked a
Highlights
operational standards for which lines offset that improvement. return to growth.
Ecolab has long been renowned. s Achieved yet another year of record
Highlights Highlights
sales and income thanks to highly
Highlights customized service offerings, tremen- Continued building its janitorial busi- Posted modest sales growth and dra-
s s
Developed a new management team dous success with add-on sales, and ness through distributor partnerships matically improved operating results
s
and operating processes necessary strong productivity gains resulting and the pursuit of large, regional by focusing on its core customer
to provide Ecolab’s hallmark standard from its estat program. building service contractors (BSCs). base, carefully controlling expenses
of service – a key differential in this s Launched EcoSure Food Safety s Expanded its healthcare business by and reorganizing its corporate
attractive market. Management, a business that continuing to drive market share gains accounts team.
s Successfully integrated Commercial evaluates food safety procedures in in acute care, expanding its reach s Completed a significant product
Parts & Service, which was purchased food service and hospitality facilities. to include alternate care customers rationalization designed to streamline
in 2001, expanding geographic cover- It offers customized food safety such as surgery centers and doctors’ its offerings and reduce costs while
age in GCS’s markets and increasing programs, on-site training and certi- offices, and exiting lower profitability providing improved performance for
its market share. fication, and reporting services. product lines in this segment. the customer base.
TURN IT UP
s Secured a significant number of new s Introduced its innovative Rodent s Launched a number of new products, s Created a division council with its
corporate account customers in the Interceptor, a patent-pending product including PhaZer, a solid floor finish European Textile Care counterpart,
quickservice and full-service restau- solution for supermarkets and with a unique backpack applicator that facilitating the cross-Atlantic exchange
rant segments. other food-industry customers. provides significant labor savings for of best practices relating to products,
healthcare and janitorial customers, marketing, R&D and corporate
Outlook Outlook and NaturMild, a line of dye- and accounts. 17
GCS Service’s new management Pest Elimination expects improved fragrance-free skin care products s Enjoyed ongoing success with
team is focused on strategically growth in 2003 as it achieves gains for healthcare personnel. Turbo-FlexTra Visco Conditioner,
ECOLAB
building its business in 2003 by across its food and beverage, food a key product that offers improved
Outlook
increasing account penetration retail, government and restaurant results and a more economical
with existing customers. It will markets. It will continue partner- In 2003, Professional Products use cost.
also continue to pursue new ing with other Ecolab divisions will continue to pursue the
Outlook
corporate account prospects. to create customized programs tremendous opportunities in the
Additionally, new protocols will for specific markets, such as quick- janitorial market and the BSC Textile Care expects to continue
help standardize business func- service restaurants, and remain a segment. In the healthcare mar- its growth in 2003, and foresees
tions among the division’s nation- leader in promoting cross-divisional ket, products for acute care, additional profit improvement as
wide service network, leading to sales by introducing additional infection prevention, janitorial well. It will continue to focus on
improved service quality, increased Ecolab services to further circle its and housekeeping are expected chain and individual customers
efficiency and cost savings. existing customers. to do well. The division also plans in its key segments, differentiating
to launch a line of solids for through standardization of
instrument care, extending its enhanced service and product
well-received Asepti-Solid hospital solutions. Additionally, the divi-
cart wash offering. sion will leverage its unmatched
ability to provide customers with
total cost management, offering
concrete technical improvements
that help save energy, water
and labor.
GCS Service provides The Rodent Interceptor PhaZer is a labor-saving Aquamiser, a water
foodservice equipment helps eliminate floor care system for reuse system for indus-
repair and maintenance rodents in food healthcare and janitorial trial laundries, helps
nationwide. retail environments. customers. save water and energy.

3. INTERNATIONAL:
FOOD & BEVERAGE WATER CARE SERVICES VEHICLE CARE EUROPE
Food & Beverage increased its Water Care Services sales eased Vehicle Care’s major corporate Ecolab’s focused European man-
share in corporate accounts and slightly in 2002 as it streamlined account gains and strong distrib- agement team implemented a
expanded several key programs in its operations in a challenging utor relationships helped offset pan-European business strategy
2002. It used aggressive sales efforts year. Growth in several key mar- various market challenges in 2002, and made significant investments
to offset continuing industry con- kets offset economic challenges resulting in modest overall sales to build solid growth across its
solidation, resulting in modest elsewhere and the exit from growth. markets and to offset a weak
sales growth. certain non-core markets. economic climate.
Highlights
Highlights Highlights Highlights
Generated significant corporate
s
Grew at double-digit rates in the s Achieved good growth in its commer- account and distributor sales growth Generated strong organic Food &
s s
beverage industry thanks to brewery cial laundry market by working closely in the in-bay (automatic wash) Beverage growth, which jumped to
and beverage corporate account with Ecolab’s Textile Care Division to market, gaining exclusive, multi-year double-digit rates due to the acquisi-
agreements. circle customers with complete wash- agreements with major oil companies. tion of Kleencare operations in the
s Achieved major corporate account water and wastewater solutions. s Further established its technological United Kingdom, France, Switzerland
gains in its meat, poultry, dairy, bever- s Streamlined its operations and lowered leadership with Harmony, a new, and the Netherlands.
age and food segments, leading to costs by closing its Kansas City, Mo., complete product line for the full- s Gained market share in its Institutional,
growth that outpaced the market in facility; moving its Technical Services service conveyor wash market that Textile Care and Professional Products
many industries. group to Ecolab’s St. Paul headquar- saves significant time and labor while divisions thanks to strong “street”
s Enjoyed ongoing success with ters; and relocating production. improving results. business, popular product offerings,
Quadexx, an Internet-enabled formu- s Gained preferred supplier status with s Enjoyed strong, ongoing sales of and an emphasis on water and
TURN IT UP
lation and allocation system for food three major group-purchasing organi- Solid Ovation, a popular pre-soak energy savings.
processing plants that provides hands- zations in the healthcare market, that improves performance, safety s Acquired Terminix Ltd., the No. 2
off dispensing, reduced costs and resulting in solid growth and excellent and cost effectiveness. commercial pest elimination company
exceptional information-management potential in the acute care segment. in the United Kingdom and Republic
Outlook
capability. of Ireland, extending Ecolab’s proven
Outlook Going forward, Vehicle Care
s Introduced Inspexx 100 for poultry expertise and success in this segment
18
Water Care Services expects expects continued growth in its
chill water systems, where it is highly to its European customers.
2003 growth in the healthcare in-bay market and a return to
effective at reducing salmonella on s Bolstered its healthcare business in
ECOLAB
and hospitality markets, driven growth in its conveyor market.
poultry. the United Kingdom through the acqui-
by preferred supplier agreements In 2003, the division will
s Expanded its Livestock Disease sition of Adams Healthcare, broaden-
with several buying groups. Its establish a strong base for long-
Interventions program to calf-growing ing the business mix and further
business within the food and term growth by leveraging new
operations. adding to Europe’s growth potential.
beverage market is expected to innovations introduced in the
Outlook Outlook
improve once again thanks to last two years. Tightly controlled
In 2003, Food & Beverage expects a rebound in customer capital costs and increased sales associate Europe anticipates steady growth
continued corporate account gains expenditures and new leasing headcount are also expected to and increased market share in
and recent product offerings such options for its wastewater treat- drive profitability. 2003, driven by new technologies,
as Quadexx and Inspexx to more ment equipment. The division premium service offerings and
than offset slow markets and yield will also continue to pursue strate- aggressive marketing strategies.
sales growth. The division will gic partnerships across its markets. Acquisitions are expected to play
continue its market specialization an important and ongoing role in
strategy and its commitment to geographic and market expansion,
account retention. It will continue as Ecolab pursues growth opportu-
to address the challenge of industry nities and enhances its European
consolidation with proven solutions business portfolio.
that increase food safety, brand pro-
tection and operational efficiency.
Harmony is an
Inspexx 200 helps Crystal Mate reduces Ready-to-use Incidin
innovative cleaning
meat processors scaling and corrosion Foam disinfects sensi-
system designed
reduce potentially in cooling towers and tive medical surfaces
for conveyor car
dangerous pathogens. boilers. and objects.
washes.

4. ASIA PACIFIC CANADA LATIN AMERICA AFRICA/EXPORT
Facing a lingering tourism down- Ecolab’s Canadian business con- The Latin America business Despite intense economic and
turn and weakened economies, tinued to show sustained growth achieved strong growth across political challenges in 2002,
Ecolab’s Asia Pacific region posted as it outpaced the market in 2002. many market segments in 2002 Ecolab’s Africa and Export busi-
modest overall sales growth in Success with corporate accounts despite sluggish tourism and nesses aggressively pursued new
2002 by gaining market share and “street” business propelled widespread economic problems customers to help offset a sharp
and driving rapid growth in its solid gains across its core markets. in the region. drop in tourism.
expanding markets.
Highlights Highlights Highlights
Highlights s Achieved record sales and double- Posted very strong organic growth in Grew Food & Beverage business sub-
s s
s Achieved strong sales and profit digit beverage and brewery growth its Pest Elimination segment through stantially in Nigeria, Saudi Arabia and
growth in China, New Zealand and through a major corporate account the successful integration of acquisi- South Africa, which posted a double-
Southeast Asia. gain and new product offerings. tions made in previous years, increased digit sales increase.
s Grew its business in Japan through s Posted double-digit growth in its cross selling, aggressive sales train- s Created a newly unified organizational
focused sales efforts and competitive Ecotemp leasing program, thanks ing and expansion of key programs. structure to facilitate the dissemina-
gains, despite the country’s declining to new Omega dishmachines and s Achieved double-digit food and bever- tion of global technical assistance,
and deflationary economy. popular solid products. age growth in local currencies despite R&D support and product expertise.
s Established a direct organization in s Launched Oasis Select 4, a central devaluations in several countries. s Expanded the Export business into
Vietnam by purchasing its distributor dispensing system that saves space s Launched the Market Guard food Armenia and Georgia, establishing
and developing Ecolab sales personnel. and increases ease of use for restau- retail program in Mexico, Argentina, relationships with distributors and
s Expanded key programs in its rant and hospitality customers, and Brazil and Puerto Rico, providing conducting training.
TURN IT UP
Institutional, Professional Products and added several odor counteractants customers with a complete line of s Worked aggressively to combat the
Pest Elimination divisions, increasing to its successful Oasis product line. cleaners, sanitizers, equipment and effects of decreased tourism in Israel
sales within existing accounts. s Expanded its pool and spa business, training materials. by gaining new customers, entering
s Grew its Pest Elimination business training additional sales associates s Debuted Vortexx ES, a new surface new market segments and achieving
through an acquisition in New Zealand. as Certified Pool Operators. sanitizer that offers food and bever- excellent account retention.
s Increased Kay’s Food Retail market age customers quick, effective results 19
Outlook Outlook
share through expansion into and increased brand protection.
Asia Pacific expects continued In 2003, the Africa and Export
Canada’s largest grocery chain.
ECOLAB
Outlook
strong 2003 sales in China, businesses will aggressively pursue
Outlook
New Zealand and East Asia, as The Latin America business both corporate and individual
well as improved sales elsewhere. In 2003, Canada foresees contin- expects ongoing growth in its food accounts as they introduce the
Its Pest Elimination business has ued Institutional growth in its and beverage, pest elimination and newest generation of Ecolab
significant opportunities through- Ecotemp and pool and spa busi- food retail segments, which will products. Turkey will become
out the region, and is also expected nesses through increased “street” continue to help offset the slower part of Ecolab’s Africa/Middle
to benefit from additional acquisi- sales, activity with distributor hospitality market. Cross-selling East region and is expected to
tions. Asia-Pacific will emphasize partners and associate-training initiatives, corporate account gains significantly contribute to the
recruiting, hiring and training initiatives. Ongoing Food & and geographic expansion within region’s profitability. Additional
efforts in its high-growth markets. Beverage growth is also expected, key countries will also drive growth expansion is planned into
particularly among corporate in 2003. Latin America will also former Soviet republics such
accounts in the food, brewery increase its presence in industries as Turkmenistan, Tajikistan,
and beverage segments. such as poultry, agriculture, meat Kyrgystan and Uzbekistan.
and fish production.
The S 3000 is an
Oxonia Active is a The Ecotemp Omega HT Vortexx ES provides
advanced cleaning
broad spectrum sani- dishmachine delivers advanced hard surface
and sanitation system
tizer used in the food superior results in just sanitation to food and
for food processing
and beverage industry. one pass. beverage plants.
facilities.