delivering growth€¦ · customer first fundamental strengths global commerce key account direct...
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Delivering Growth
Mike RomanChief Operating Officer & Executive Vice President
December 12, 2017
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Agenda
• Expected growth in 2018 by Business
• Business and global priorities
• 3M’s unique position to create value
• High-growth platforms
• Positioned to win
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Our Playbook is working
Investing in Innovation
Portfolio Management
Business Transformation
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Executing our Playbook has created a successful portfolio2018 organic local-currency growth projections
IndustrialHealth Care ConsumerSafety & Graphics Electronics & Energy
Total 3M: 3% to 5%
Organic local-currency = organic volume + price
3% to 5%4% to 6% 2% to 4%4% to 6% 1% to 4%
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IndustrialAdvancing industries and the customers we serve
• Accelerate growth platforms in automotive, abrasives, structural adhesives, and filtration
• Increase R&D investment in new solutions for high-growth applications
• Build on go-to-market and digital commerce successes
2017e revenue: $10.9B
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Safety & GraphicsAdvancing safety and enhancing our customer brands
• Build upon our leading personal safety portfolio
• Innovative new solutions that improve global transportation safety
• New film technologies to enhance our customers’ brand image
2017e revenue: $6.1B
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Health CareImproving lives through care pathway innovation
2017e revenue: $5.8B
• Invest in new products and expanded coverage for developing economies
• Advance digital solutions in health information, oral care and drug delivery
• Expand capabilities in clinical evidence and health economics
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Electronics & EnergyAdvancing a connected world
• Build new platforms in emerging, high-growth electronic market segments
• Develop new applications and technologies to lead innovation in electronics
• Invest in innovation for energy and grid modernization
2017e revenue: $5.1B
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ConsumerInnovating to simplify life and work
• Expand brand awareness and penetration in developing economies
• Innovative new products for respiratory wellness and home improvement
• Accelerate digital commerce growth through new models and advancements in data analytics
2017e revenue: $4.6B
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3M worldwide prioritiesGlobal leverage, local execution
• Transform U.S. business and service models
• Invest to accelerate growth in China and developing Asia
• Execute portfolio actions to improve West Europe profitability
• Increase focus on domestic-oriented markets, businesses and innovation
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The power of 3MDelivering value for customers and shareholders
Fundamental StrengthsCustomer First Global Commerce
Key account directValue added resellers
DistributionRetail
Digital commerce
Customer-inspired innovation Creating differentiated value End-user focused
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Top priorities for growth$30B+ addressable market opportunity
Advanced Wound Care
Population Health
Automotive Electrification
FiltrationStructural Adhesives Air Quality
Data CentersConnected Safety
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Uniquely positioned to advance automotive electrification$6B market opportunity, growing at 8-10%
Automotive Solutions
Transportation Safety
Electronic Materials
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Advancing wound care and improving patient experience$1B market opportunity, growing at 5-6%
Secure and Protect
Activate Healing Process
Wound Preparation
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Domain Expertise
ConnectedSafety
Differentiated Portfolio
Leading position in personal safety$33B market, growing at 3-5%
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Utilities ConstructionConsumer Electronics
Semiconductor
Delivering growth in Electronics and EnergyFocused on differentiated, high-value markets
Renewable energy and storage
Energy grid modernization
AutomotiveElectrification
Data centerHigh bandwidth
Communication infrastructure 5G
Base markets
Market size $60BCAGR 1-3%
Strengthen base and managetechnology shift
0
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3
4
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7
2016 2020
High-valuemarket segments
Market size $12BCAGR 10-15%
Accelerate growth in key segments
Sales 2016-20
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Thermal, signal and energy management in data centers$2.5B market opportunity, growing at 10-12%
Facility Protection
NetworkInterconnects
ServerCooling
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The power of 3MBuilding domain expertise in high-growth markets
Auto Electrification Biopharma
Connected Safety Home Improvement
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Positioned to win
• Prioritize high-growth markets, applications and products
• Ongoing portfolio management to deliver increased investor value
• Accelerate new product successes by executing the 3M Playbook
• Implement commercial changes that leverage Business Transformation
Creating profitable growth for our shareholders
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