electronics & energy business · 2016-12-13 · electronics & energy business 2016e sales...

1. All Rights Reserved.12 December 2016© 3M >

Electronics & Energy Business

Jim BaumanExecutive Vice President

2017 Outlook MeetingDecember 13, 2016

2. All Rights Reserved.12 December 2016© 3M

Agenda

Who we are

Improving our business

Advancing a connected world


3M Vision

3M Technology Advancing Every Company

3M Products Enhancing Every Home

3M Innovation Improving Every Life

3M Electronics & Energy strategic intent

“Advancing a connected world”


Electronics & Energy Business2016e Sales $4.8B

Semiconductor solutions$0.3B

Electronics design materials$1.0B

Electronics$3.0 billion

High performance films$1.3B

Sustainable chemistry$0.4B

Connecting components$0.8B

Electrical tapes & supplies$0.5B

High performance films$0.3B

Coatings & adhesives$0.2B

Energy$1.8 billion


Improving our business through portfolio prioritization

Operating Income Margins

Enhanced customer relevance

Reallocated resources to best opportunities

Increased operating efficiency and productivity

Results

20162013

Actions Taken

Consolidated businesses and strengthened our portfolio(% to sales)

20.0%

17.8%

2016e2013

~21%

17.8%

21.1%

Re

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eg

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Relative Financial Attractiveness

Re

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ve S

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Relative Financial Attractiveness


Focused on differentiated, higher-value markets

Data Center

AutomotiveElectrification

Utilities ConstructionGrid

AutomationRenewable Energy

and StorageConsumer Electronics

Semiconductor

$60B1-3% CAGR

$11B10-15% CAGR

Growth rate: 5-year CAGR; Source: IHS, 3M estimates


Building strength on strength to access higher-value marketsLeveraging existing customer relationships and 3M technology platforms

Datacenter

Automotive Electrification

Films and bonding

FiFilms

AdAdhesives

MrMicro-

replication

DiDisplay

LmLight

Management

Fluoro- and Electrochemistry

FlFluoro-

materials

EcEnergy

Components

SmSpecialty Materials

Systems and hard goods

MoMolding

IsIntegrated Systems &

Design

EsElectronics &

Software

SeSensors

EmElectronicMaterials

FeFlexible

Electronics

SmSpecialty Materials

NtNano-

technology

Electronic materials

Grid Automation

Renewable Energy

And Storage


2017 outlook for Electronics & Energy

Data Center

AutomotiveElectrification

Utilities ConstructionGrid

AutomationRenewable Energy

and StorageConsumer Electronics

Semiconductor

Projecting organic growth of -3% to +1%

LCD and OLED penetration Electrical construction share gain Semiconductor materials penetration

Interconnect in datacenter Auto electrification spec in Novec™ application expansion

Higher-value programsCore growth

Slower consumer electronic device demand

LCD displacement Portfolio exits

Headwinds

12 December 2016 9. All Rights Reserved.© 3M

Advancing a connected world

25B connected devices

80% of internet traffic will be video

2x increase in broadband speed

By 2020:

12 December 2016 10. All Rights Reserved.© 3M

How we advance a connected electronics world

Consumer Electronics

$18B1-2% CAGR

Data Center

$2B13-15% CAGR

Automotive Electrification

$3B13-15% CAGR

Semiconductor

$6B2-3% CAGR

Enhancing visual experiences

Enabling design and function

Improving data networks

Advancing aconnected car



Enabling design and function. Enhancing visual experiencesSmartphone

3M OLED OfferingsCustomer Roadmap Requirements

Design

Power efficient

Color

Thinness

Flexible / foldable

Proven 3M Differentiators

Innovation leader in optics and light management

Significant breath of capability in electronic materials

Ability to quickly scale high volume manufacturing

Optically clear adhesive

Noise, shock and vibration

Electromagnetic shielding materials

Electronics bonding

Novec™ electronic coatings

Water indicator tape

Thermal management films

Electronic finishing materials

Protective tapes and privacy filters

OLED


Improving data networksData center

Growth in cloud and hyper-scale computing

Increasing data rates and traffic

Cost of power and cooling

Increasing cost of downtime

Manage heat to improve energy efficiency

Improve uptime and reliability

Enhance signal integrity

Enable higher density computing

3M Solutions

3M™ Novec™ FluidsImmersion cooling

Optical Interconnect

3M™ Novec™ Fluids Fire Suppression

$2B addressable opportunity

13-15% CAGR

Market Drivers What we do


Advancing the connected carAutomotive electrification

Larger, head-up, and high definition displays

Electronics portion of total vehicle cost will be 50% by 2030

Plug-in hybrid and battery electric vehicles represent 25% of new car sales by 2030

Improve display quality

Increase battery power density and cycle life

Manage heat and interference

3M Solutions


13-15% CAGR


Source: Lux Research

Display and Sensor Materials

3M™ Novec™ Fluids

Battery Materials

Thermal Materials


How we win with 3M Science in automotive electrification

Displays Drive motor

Battery

Camera / sensor

Body electronics

Insulation paper Powder resins

Inverter

Battery materials Thermal materials Immersion cooling fluids

Insulation paper Thermal materials Adhesives Underfills Shielding materials

Thermal materials Underfills Shielding materials Tapes

Thermal materials Underfills Adhesives

Films Adhesives Thermal materials Shielding materials

Glass Solar films


How we advance a connected energy world

Connecting people at the speed of light

Improving reliability & efficiency of energy delivery

Advancing a distributed power network

Communications

$12B1-3% CAGR

Utilities

$3B1-3% CAGR

Construction

$3B1-3% CAGR

$2B8-11% CAGR

Renewable Energyand Storage

Grid Automation

$4B15-16% CAGR



Improving reliability and efficiency of energy deliveryGrid automation

Aging infrastructure

Growth in distributed energy resources

Rising peak load demand

Shift to underground grid assets

Locate and map utility assets

Connect and measure electrical energy

Protect assets against harsh environments

Detect and locate faults

3M Solutions


15-16% CAGR


Sensored Cable Accessories

Locating and Mapping Solutions

Underground Sensing and Communication


Advancing a distributed power networkRenewable energy and storage

Increasing intermittent renewables

Growing demand for peak-load reduction

Increasing demand for energy security and backup power

Improve efficiency

Decrease $/watt

Increase power density

Increase durability and cycle life

3M Solutions


8-11% CAGR


Flow Battery Components

Fuel Cell Components

Solar Efficiency Materials

Wind Materials


Evolving our portfolio to advance a connected world

Enhancing visual experiences

Enabling design and function

Improving reliability and efficiency of energy delivery

Connecting people at the speed of light

Improving data networks

Advancing aconnected car

Advancing a distributed power network

electronics & energy business · 2016-12-13 · electronics & energy business 2016e sales...

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