2018 outlook meeting...insights 46 technology platforms high-impact outcomes extending the core...

1. All Rights Reserved.11 December 2017© 3M

2018 Outlook Meeting

Inge ThulinChairman of the Board, President and

Chief Executive Officer

December 12, 2017


Today’s meeting highlights

• Our Playbook is working: delivering on our key metrics

• Ready and well-positioned for 2018

• 2018 outlook

o 3-5% total company organic growth

o 6-10% EPS growth


Building strength-on-strength and positioned for growth

2012• Articulated 3M Vision and Strategies• Established robust portfolio management

2013 • Prioritized 3 key levers to create value• Enhanced capital deployment plan

2014 • Defined Fundamental Strengths• Reshaped Leadership Behaviors

2015• Restructured organization for focus, agility and

efficient growth• Deployed unified 3M Brand strategy

2016• Accelerated Business Transformation

deployment• Created new 5-year plan

2017 • Executing portfolio initiatives• Prioritizing new growth platforms


Our Vision

3M Technology Advancing Every Company

3M Products Enhancing Every Home

3M Innovation Improving Every Life

Our Strategies

- Expand relevance to our customers and our presence in the marketplace

- Gain profitable market share and accelerate market penetration everywhere

- Invest in innovation: Invigorate existing market opportunities and focus on emerging megatrends

- Intensify capabilities to achieve regional self-sufficiency

- Build high performing and diverse global talent

- Drive consistent superior levels of operational excellence


Our Playbook is working

Investing in Innovation

Portfolio Management

Business Transformation


Executing our Playbook has created a successful portfolioAchieving growth while building for the future

IndustrialHealth Care ConsumerSafety & Graphics Electronics & Energy

$31.6B Revenue

Organic Local Currency Growth: 5%Operating Margin: 25% 2017e Sales

$10.9B$5.8B $4.6B$6.1B $5.1B

Note: Financial metrics as reported. 3M total revenue reflects eliminations of dual credit.


Positioned for growth with a proven global model

Time

GD

P p

er

cap

ita

Infrastructure

Manufacturing

Safety

Retail

Health Care


Leading with a Customer First mindset


Leveraging our Fundamental Strengths to create sustainable value

Technology Manufacturing Global Capabilities Brand

Ability to share and combine elements of 3M’s broad technology portfolio to produce unique, differentiated products, translating to premium margins

Utilization of 3M manufacturing footprint and technology, including process trade secrets, leading to higher-performing products and lower unit costs

Subsidiary front-and-back-office footprint that allows for the effective development, adaptation and commercialization of products

Brand equity in the 3M brand and in strategic brands that are shared across business groups


Fueling global economic growthTechnology conversion and demographic shift

SustainabilityGlobal middle class

UrbanizationDigital economy


3M is winning in the world’s leading economies

• $12 billion in sales (2017e)

• World-class, broadest capabilities; strongest brand equity

• Deep, diversified portfolio

• $3 billion in sales (2017e)

• Strong, rapidly growing capabilities; building brand strength

• Portfolio focus: domestic, megatrends

Building strength-on-strength


Executing our three key levers

Investing in Innovation Business TransformationPortfolio Management


Portfolio ManagementGain profitable share


• Align organization and resources to our best opportunities

• Effectively deploy capital

• Strengthen portfolio through acquisition and divestitures


Portfolio actions have positioned us to continue delivering growth

Consolidated and aligned organization

Made strategic acquisitions and divestitures

Prioritized opportunities and allocated resources

Static Control Library Systems

Polyfoam

Polymask

License Plate Converting

Healthcare

Safety & Graphics

Industrial Consumer

Display & Graphics

Electronics & Communications

Safety, Security, & Protection

Industrial & Transportation

Consumer & Office

Healthcare Electronics & Energy

6 Sectors 5 Business Groups

40 Businesses 24 Businesses

Combined businesses to increase scale and relevance

Realigned from Six Sectors to Five Business Groups Heartland

Push Forward

Identity Management

Safety Prescription Eyewear

Tolling/ALPR

Electronic Monitoring


Investing in Innovation3M innovation creating value for our customers


• Invest in and scale new growth platforms

• Deploy connected solutions

• Enhance commercialization effectiveness


Leveraging unique capabilities to create value for customersResearch and Development is the heartbeat of 3M

46 Technology PlatformsInsights High-Impact Outcomes

Extending the core

Insights to Innovation

Building new growth platforms

Customer-Inspired Innovation

Focusing on connected solutions


Top priorities for growth$30B+ addressable market opportunity

Advanced Wound Care

Population Health

Automotive Electrification

FiltrationStructural Adhesives Air Quality

Data CentersConnected Safety


Business TransformationStarts and ends with the customer

• Build on successful ERP deployments

• Reduce costs, drive efficiency and increase value for our customers

• Capture $500M to $700M annual savings and $500M working capital improvement by 2020



Executing our three key levers

Investing in Innovation Business TransformationPortfolio Management


Building on our strong process cultureOptimizing our processes to best serve our customers


• Unique capability to innovate, serving both business growth and societal value

• Engaging customers globally to help them achieve their sustainability goals

• 18 consecutive years on the Dow Jones Sustainability Index

Sustainability creating growth opportunities for 3MHelping our customers deliver on their promises


Our Playbook is working





Delivering on our shareholder commitments

Organic Local-Currency Growth

EPSGrowth

100%

ROIC

2-5%

20%

Free CashFlow Conversion

8-11%

2016-20 plan

2018 outlook meeting...insights 46 technology platforms high-impact outcomes extending the core...

Documents