2015 trifecta 1 · 2019. 11. 21. · important market for global companies •22% of global gdp,...

West Europe

Guenter GresslerArea Vice President

Investor DayJune 2017

2. All Rights Reserved.6 June 2017© 3M

Overview Execution│

Overview Overview of 3M West Europe and external landscape

3. All Rights Reserved.© 3M 2017

• Sales of $4.7 billion (2016)

• First subsidiaries established in 1951 in Germany, France and UK

• 17 countries across 7 regions

• 20,000 employees including 1,300 scientists and technicians and 6,000 customer-facing employees

• Global and local research & development centers

• Centralized EMEA Supply Chain Center of Expertise

3M West Europe at a glanceWell prepared for efficient growth

2016 Revenue

D-A-CH$1.6B(33%)

UK/Ireland$0.8B(17%)

France$0.7B(16%)

Italy/Greece$0.5B(10%)

Nordics$0.4B(8%)

Benelux$0.4B(8%)

Iberia$0.4B(8%)


3M West Europe2016 sales $4.7B

Industrial

$1.9B40% of total

Consumer

$0.4B8% of total

Electronics & Energy

$0.4B8% of total

Health Care

$1.1B24% of total

Safety & Graphics

$0.9B20% of total


West Europe: an attractive economic landscapeImportant market for global companies

• 22% of global GDP, largest economic zone worldwide

• Largest exporter of manufactured goods and services

• Home to many of the world’s largest companies

• 4 member countries of G8

• High impact megatrends drive global trends

• Leading area for sustainability

• Highly educated workforce


An environment in which we can win

Key market trends

Digitalized economy

Industry4.0

Sustainability

Aging population

Both GDP and IPI expected to grow approximately 1.5% CAGR thru 2020

Inflation is expected to approach 2%

Expect most EU currencies to stabilize

Geopolitics: Brexit, migration and political shifts are testing European unity

West Europe Macroeconomic outlook:

Source: Oxford economics


Creating growth and driving productivity in 3M West EuropeStrategic intent

• Drive step-change in sustainable and efficient growth

• Focus on priority markets: industrial, transportation, safety and health care

• Execute 3M Playbook

2020e2016 2020e2016

Revenue Operating Margin

Growth at >2x IPI Margin enhancement

$4.7B

$5.2B+

16%

20%+


Overview │

Execution of the 3M playbookExecution

Execution


The 3M Playbook is working

Investing in Innovation

Portfolio Management

Business Transformation


Portfolio ManagementGain profitable share


• Create growth opportunities in prioritized, high-value markets

• Accelerate growth in our profitable core

• Increase penetration with our strategic accounts


Creating efficient growth across prioritized markets Addressable West Europe market size

Industrial Health Care

Transportation Safety

$25B+ market

opportunity


Leveraging our fundamental strengthsCreating 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


Investing to accelerate growth in profitable core marketsTargeted growth investments in Heartland and Push Forward businesses

Contribute 50 to 100 bps of growth in

2017


Solutions and new growth opportunities for priority marketsComplete solutions for the automotive aftermarket

3M branded abrasives and safety products

Festool branded tools, accessories and service all-inclusive

+ =


Increase penetration at and with our strategic accountsWest Europe spec-ins support 3M sales around the world

Images: © Robert Bosch GmbH


SustainabilityUnderstanding customers’ key sustainability challenges

Customer using 3M Novec SF6-free system for CO2 reduction

• Using 3M sustainable technologies to generate process improvements and increased differentiation

• Assisting our customers in achieving their sustainability goals


Investing in Innovation3M innovation creating value for our customers


• Leverage customer insights and technology platforms to create value

• Invest in core and scale new growth platforms

• Increase R&D productivity


Leveraging unique capabilities to create value for customersResearch & 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


Growth in high value market spacesBuilding new growth platforms for efficient growth

Automotive Electrification Connected Safety Vehicle Lightweighting


Business TransformationStarts and ends with the customer


• Increase value for customers

• Build on successful ERP deployments

• Reduce costs and drive efficiency

• Expect $200M - $250M in annual pretax savings by 2020 for 3M EMEA


Our ERP rollout in West Europe is on track and successfulDeployed countries are already creating value for customers and 3M

West Europe is nearly completed:

• 11 countries spanning approximately 85% of revenues

• 4 distribution centers

• Supply Chain Center of Expertise


The 3M Playbook is working




2015 trifecta 1 · 2019. 11. 21. · important market for global companies •22% of global gdp,...

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