electronics & energy business group€¦ · electronics & energy business group 2015 sales...

Electronics & Energy Business Group

Jim Bauman, Executive Vice President

3M Investor Day

March 29, 2016

s

Agenda

Who we are

How we win

Growing the portfolio

Executing our plan

Summary

3. All Rights Reserved.28 March 2016© 3M

Electronics & Energy Business Group is bringing the 3M Vision to life

3M Technology Advancing Every Company

3M Innovation Improving Every Life

3M Products Enhancing Every Home


Electronics & Energy Business Group 2015 Sales $5.3B; Operating Income Margin 21.1%

$1.3B

Electronics Materials Solutions

Electrical Markets

$1.2B

Display Materials and Systems

$2.0B

$0.4B

Communication Markets Renewable Energy

$0.4B*Refer to 3M’s Form 8-K dated March 15, 2016 for discussion of a product line reporting change involving the Electronics and Energy business segment and the Industrial business segment


Serving large, growing markets

Utilities

Market size: $3BGrowth: 1-3%

Renewables


Telecommunications


Infrastructure


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

Electronics


Window Film


Construction



Maintenance / Repair


What we doManage thermal / electromagnetic

interference

Clean and protectConnect energyConnect data

and voiceManage light


Investing in Innovation

Portfolio Management

Business Transformation

Executing the 3M playbook


Portfolio prioritization in action 20152012

Re

lati

ve S

trate

gic

Att

rac

tive

ne

ss

Relative Financial Attractiveness

Re

lati

ve S

trate

gic

Att

rac

tive

ne

ss

Relative Financial Attractiveness

Reduction from 9to 5 businesses

OI margin improvement of 330 bps

Increased scaleand customerrelevance

Improved productivity, faster execution

Results


Winning in Electronics Markets

Display Materials Systems

Aligning with customer

roadmaps for displays

that are:

brighter

thinner

more durable

more flexible

more power efficient

Integration of solutions to help customers win

From To

Component mentality Total solution optimization

Thickness = 0.75 mm

Improved performance at 60% reduction in thickness

Integrated display

Frontsurface

Touch

Display

Backlight

Thickness = 2.0 mm


Winning in Electronics Markets

Electronics Materials Solutions

Integrating our solutions for increased breadth and

relevance across the electronics value chain

Semiconductor manufacturing

Semiconductor packaging

Electronicssub-assembly

Electronicsassembly

Operation and automation


Data proliferation

Cloud and Big Data

IoT / M2M

Wearables

Mobile devices

Winning in Electronics MarketsLeveraging core technology into semiconductor manufacturing materials

Semiconductor demand

3M differentiated semiconductor materialsMicroreplication for semiconductor quality

Novec™ Advanced Node Photoresist Rinse

$ 8 Billion Semiconductor materialssegment, growing mid-single digits


Winning in Electronics MarketsInnovation across the transition from LCD to OLED

OLED handheld CAGR to 2020: 22%

$0

$50

$100

$150

2015 2016 2017 2020

LCD OLED

Total display market $B (IHS)

Efficiency Durability Visual quality Design

Functions LCD devices OLED devices

SensorsLight Management

Winning 3M Technologies

Bonding


Winning in Electronics MarketsExpanding automotive electronics

Infotainment

Powertrain electronics Body

electronics

Advanced driver assistance

Instrument cluster

22

46

78

54

2015 2030

Electronic / Electrical

Body / Chassis / All other

Component costs (% of total vehicle cost)

Source: Lux Research

Existing technology partnerships

Automotive OEMs

Tier one suppliers

Electrical, battery OEMs

Consumer electronics OEMs

3M technology

Battery anode

Display materials

Bonding and optics materials

Thermalmaterials

4622

7854


Winning in Energy: Key trends and market forces

Globalmegatrends

Aging infrastructure Urbanization

Standards Regulations

Energy reliability and security

Energy efficiency and preservation

Renewables growth Utility model changes

Energy availability and affordability

Market forces

3M relevance


Winning in Energy Markets Solving emerging energy challenges with technology

Glazing and light management

Energy efficiency

Renewable and distributed power

Energy availability

Grid monitoring and optimization

Energy security

Daylighting optics

Fuel cell Flow battery LiB Si-Alloy anode

Glass fabrication

Power and storage OEM

Utilities

Lead customers 3M technology

Grid monitoring


Winning in Energy Markets

Increased penetration through new manufacturing capabilities

Market size: $2BGrowing 3%

Market size: $3BGrowing 3-4%

New window films for ease of application and low costs


Our winning strategy starts with portfolio management and the customer

Building privileged position with customers

Expand 3M Energy

Differentiated new technology platforms

Best-in-class manufacturing and supply chain management

Diverse, inspired global talent

Portfolio prioritization and business transformation


Technology platform executionBroader, deeper technology engagements with customers enables insight into customer roadmaps

Customer insight 3M technology

Prototypes

Customer feedback

OLED materials

Digitization of energy

Optical interconnect

New products

Enabling the customer’s roadmap

Customer Development Execution

Line of sight with the customer

Iterative development


3M™ Novec™ Fluids TechnologyExpanding relevance in multiple customer applications

Immersion coolingcooling

Fire suppression Semiconductor

Sustainable chemistry


3M’s advantage in disruptive technologyPrecision manufacturing for making this tip

You only need to do it 660 times per second for 17 hours … to match 3M microreplication capability

Imagine … driving at 477 mph through a gate, moving 3 mph sideways, with ½ inch of clearance per side….


Materials Film Coatings ConvertingIntegrated manufacturing

Combined solution delivers a bright, thinner product that is more robust and easier to assemble

50 microns

Separate sheets

How we win through manufacturing and supply chaincapabilities at the speed of market


Strengthen business through portfolio prioritization and business transformation

Operating Income Margins( % sales)Delivering value

through:

Portfolio Management

Lean Six Sigma

Footprint optimization

20.0%

2015

17.8%

2013 2014

21.1%

*Refer to 3M’s Form 8-K dated March 15, 2016 for discussion of a product line reporting change involving the Electronics and Energy business segment and the Industrial business segment


Electronics & Energy Business Group is bringing the 3M Vision to life

3M Technology Advancing Every Company

3M Innovation Improving Every Life

3M Products Enhancing Every Home

electronics & energy business group€¦ · electronics & energy business group 2015 sales...

Documents