2018 investor day15 november 2018© 3m . all rights reserved. 2 agenda: industrial business group...

Jim Bauman

Executive Vice President

November 15, 2018

2018 Investor Day Industrial Business Group

. All Rights Reserved.15 November 2018© 3M 2

Agenda: Industrial Business Group

2018 Investor Day | Nov 15, 2018

Business overview

Platforms for growth

Factory automation


2018e sales

$12.4B• Customers serving broad and

diversified industrial markets

• Business model driving improved performance and productivity for end-users in faster-growing markets

IndustrialAdvancing industry performance

Separation &

Purification

$0.9BAdvanced Materials

$1.2B

Automotive Aftermarket

$1.7B

Adhesives & Tapes

$4.7B

Automotive & Aerospace

$2.1B

Abrasives

$1.8B


Accelerating growth in faster-growing market segments

Platforms for growth

• Structural bonding

• Biopharmaceutical filtration

• Surface finishing

• Automotive electrification

Accelerating end-user demand

• Through innovative business models

• End-user demand creation through

digital and marketing specialization

Advancing factory automation

• Leveraging our application expertise

• Expand into automation-enabled

solutions


Driving value with our customers

Solving design challenges

Customer

Innovating the production

process

Applying materials performance

Application development support

Scaling and automating operations


Differentiating value in our industrial business models

Brand-driven consumables Designed-in or regulated

Bonding Filtration

Automotive Fluoropolymers

Masking tape Box-sealing tape


Accelerating end-user demand

Innovative business modelsI

• Specialized segment marketing and application development in our two go-to-market models: designed-in and brand-driven consumables

Access to broader 3M portfolio

• Increased relevance through broader

access to 3M products

• Enhanced end user coverage

Multiple channels

• Distribution partners

• Direct to OEMs

• Value added resellers (Converters)

• Digital commerce

8. All Rights Reserved.15 November 2018© 3M

Building on the core and developing new platforms

Core Accelerating Automation

High-performancepolymers

Precision surface conditioning

Tape solutions

Adhesives

Filtration solutions

Dispensing equipment

Industrial software

Additive manufacturing

Machine vision

End-of-armtooling

Surface finishing

Biopharmaceutical filtration

Structural bonding

Automotive electrification


Market trends

• Replacing mechanical fasteners, light-weighting and dissimilar materials

How we win

• Most comprehensive and unparalleled tape and adhesive technologies

3M’s assembly solutions enable design flexibility

3M™ VHB™ TapesAcrylic Foam Tapes

3M™ Re-closable FastenersDual Lock™ and Hook and Loop

3M™ Scotch-Weld™ PUR AdhesivesPolyurethane and Hybrids

3M™ Adhesive Sealants

3M™ Contact and Spray Adhesives

3M™ Scotch-Weld™

Structural AdhesivesEpoxy, Acrylic, Urethane

3M™ Laminating Adhesives

3M™ Hot Melt Adhesives


Growing 6% to 8%

Segment opportunity

$12B

Structural bondingMarket segments

• Aerospace, Automotive OEMs, Automotive aftermarket, Electronics

Market trends

• Automation, light-weighting, sustainability, composites and dissimilar materials, replacing mechanical fasteners

How we win

• Unique chemistry and technology, creates process speed and design flexibility for our customers through application development


Precision MembranesSegment opportunity

$5B

Biopharmaceutical filtrationMarket segments

• Recombinant proteins, vaccines

Market trends

• Increasing biopharma drug pipeline, increasing speed to clinical trial, increase in biosimilars

How we win

• Enhanced performance through distinctive materials; improved customer yields and productivity

3M Surface Modification Technology

3M Core Filtration

Growing 10% to 12%


Surface finishing

Segment opportunity

$5B

Market segments

• Metal fabrication, Automotive OEMs, Automotive aftermarket, Medical, Aerospace, Electronics

Market trends

• Fine-finishing, enhanced productivity, automation, new emerging substrates

How we win

• Brand, step-change performance in fine-finishing, super-abrasives, automated solutions

Growing 8% to 10%


Auto electrification: light-weighting and assembly solutionsMarket Segments

• Automotive OEMs and automotive tiers

Market trends

• Improved range and lower CO2 emission standards, light-weighting and novel bonding solutions

How we win

• Structural bonding solutions, glass bubbles and Thinsulate™ Acoustic Insulation enable light-weighting and a better cabin experience

Segment opportunity

$8BGrowing 8% to 10%


Advancing factory automation

• Increasing relevance with our customers through industrial automation

• Automation-ready: high quality, reliable, predictable, design-in and consumable solutions

• Automation-enabled solutions: supplier of materials, hardware and software

Dispensing equipment

Industrial software

Additive manufacturing

Machine vision

End-of-armtoolingSegment opportunity

$50B+Growing 8% to 10%


Automation example: wheel weight application

From: manual operation with multiple sizes … To: automation enabled solution

Manual placement

Automated placement


From: manual operation with significant variability… To: automation-enabled solution

Automation example: automotive OEM paint finishing

Manual application

Robotic sanding, finishing, polishing


Sustainability-inspired innovations for our customers

Light-weighting vehicles for fuel efficiency

Enhancing performance of water treatment systems

Cutting faster, offering significant ergonomic and productivity gains

Reduced and solvent-free adhesives


Summary

Organic local-currency growth

2019 – 2023

3% to 5% • Driving share gain with expanded end user reach

• Accelerating growth through expanded platforms

• Advancing industry performance through automation-ready to automation-enabled solutions

2018 investor day15 november 2018© 3m . all rights reserved. 2 agenda: industrial business group...

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