industrial business group.pdf

8/11/2019 Industrial Business Group.pdf

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Industrial Business GroupBrad Sauer, Executive Vice President

December 17, 2013


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2 2014 3M Outlook Meeting, December 17, 2013

Agenda

Industrial Business Group Overview

Strategic Priorities

Active Portfolio Management

Accelerate New Product Innovation and Commercialization

Penetrate in InternationalFocus on Developing

Drive Operational Excellence


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Industrial Business Group is a powerhouse of innovation

Across Many Largwith >$60B

5 Market-Facing Divisions &4 Platform Divisions

Personal Care

Food & Bev

Oil & Gas

MRO

Construction

Ship Building

CommercialVehicle

MedicalHardware

Bio-Pharma

Advanced

Materials

Defense

Automotive AutomotiveAftermarket

IndustrialAdhesives

and Tapes

AbrasivesAerospaceand Comm.

Trans.

PersonalCare

Purification

Leveraging 38 of 3Ms Technology

Platforms


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Industrial Business Group Division Overview

Innovative businesses aligned by technologies and end-user needs

Industrial Adhesivesand Tapes

Automotive Aftermarket Abrasive Systems Automotive

Personal Care PurificationAerospace & Commercial

TransportationDefense Mark


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Sales CAGR of 6%

Operating Income CAGR of 9%

Sales by Business2013e

$B

Industrial Business delivers solid revenue and earnings growth

$8.0$6.9

$8.1 $9.6$9.9 $10.6

$0

$3

$6

$9

$12

2008 2009 2010 2011 2012 2013e

Sales by Geography2013e

U.37

Europe25%

APAC26%

LAC

12%

Adh& T

3

Abrasives14%

AdvancedMaterials

12%

PersonalCare

6%

Purification6%

AutomAfterm

28

Aerospace2%

66% Developed Economies; 34% Dev

$1.5$1.2

$1.7$2.0

$2.2 $2.3

$0.0

$0.8

$1.6

$2.4

2008 2009 2010 2011 2012 2013e

$B


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Industrials vital few strategic priorities are aligned with corporate st

Gain Profitable MarketShare and AccelerateMarket Penetration

Everywhere

Expand Relevance toour Customers andour Presence in the

Marketplace

Invest in Innovation:Invigorate Existing

Market Opportunitiesand Focus on

Emerging Megatrends

Build High Performingand Diverse Global

Talent

Intensify Capabilitiesto Achieve Regional

Self-Sufficiency

Active PortfolioManagement

Accelerate New ProductInnovation and

Commercialization

Penetrate in InternationalFocus on Developing

DriveE

Enabled by Business Transformation and empowered by the worlds best team


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Aligning the Industrial Business Group portfolio to global megatrend

Glass bubblesenabling deeper and moreproductive drilling

Ceramics for PetroCeram sand screens tominimize clogging

Oil & Gas Fuel Efficienc

Composite prescompressed natu

Surfacing and senable light weighsafely and burn le


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Mounting mats & insulation solutions forcatalytic converters

Efficient thermal acoustic systems tomaintain commercial vehicle cabinenvironment

3MTMair barrier fsolution for buildin

Leading sustainafor water treatmen

Green Expansio


Government Intervention


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3MTM

ThinsulateTM

insulationproviding lower-cost noise and vibrationsolutions

3MTMall weather flashing tapefor new building construction andremodeling


Growing Emerging Economies Low-Cost Luxur

VHBTMtape allowrefrigerator markelook

Affordable surfasolutionsenable
http://solutions.3m.com/wps/portal/3M/en_US/Building-Trades/Construction/?PC_7_RJH9U523000KC0IO79GMPI0OI1_assetId=1180618668982


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Winning in the Heartland

Industrial Adhesives and Tapes

Prioritized 15 countries to drive increasedpenetration

Focused customer insights anddevelopment efforts to increase NPVI withlarger, higher value solutions

Coordinated efforts in 6 prioritized marketsegments including construction, food &beverage and appliances

Automotive Aftermarket Abrasi

Sharper focus on largest market segmentopportunities of collision repair, auto care,

and marine

Expanding sales force coverage toenhance customer intimacy in top 15countries

Leveraging best in class disruptiveproduct portfolio with unmatched breadthand depth to win share

Utilize Winterthugrain technology

and portable bon

Driving growth insegments of metprecision grindin

Expanding the Stechnology innovBrushes and Co

$6.5B of revenue growing at over 4%


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Building a sustainable high-growth ceramics platform with Ceradyne

Improvecombustion efficiency

& reduce emissions

Protect and save liveswith body armor and helmets for

defense applications

Improve oil & gasapplications with

game changing solutions

Integration completed on plan with EBITDA ahead of target

9 Divisions

$80M order for EnhancedCombat Helmets with U.S.

Marine Corps

New Products

Applications

G

41 active developmentprojects underway

25 coover 50 i


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From To

Expanding Aerospace applications to the commercial transportation

$2B SegmentAerospace $3B SegmentAerospace+ Commercial Transportation

Aligning 3M technologies to fulfill customer needs in multiple markets

With rele

Safe

Ligh

Quiet

Faste
http://bombardier.com/enhttp://bombardier.com/en


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2013 2017

Accelerate new product innovation and commercialization

Insights-Driven Innovation Prioritize Fewer, Larger Pro

Accelerate New Product Innovation Expand International Capa

Customer-inspired innovation

Technology drivenMarket trends driven

Increase new productsto new markets andcustomers from43% to 57%

NPVI30% to 35%

1 2 3 4 5 6 7 8 9 10 11 12 13 RevenuePotentialatM

aturity Pri

mowit
https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_gm.htmlhttps://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_us.html


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Advancing Industrial product platforms to fuel long-term growth

Paint ApplicationSystems

DurableComposite Films

Advanced FoamTapes

Air-Barrier

AdvancedCeramics

Product platforms to be launched in the next 2 years with $1.6B annual sales potenti

Precision ShapedGrain

AdvancedComposites

AcousticsBio-PharmaFiltration


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Winning with platformspaint application system platform evolution

Increasing 3M relevance and advancing our customers in the automotive aftermarke

AnnualSales

Type H/O

AccusprayTMHG09

Accuspray HGP

Accuspray HG18

Sun GunTMII

Accuspray CFM

3oz PPS

Standard, Large, Mini, & Refillable PPSTM

Sun GunTM

400mL PPS

AccusprayHG14

Accuspray HG12 & HG15

Mini H/O

Next Gen PPS

Time

HG13


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Enhancing our customers success with a robust new product pipeli

Blue MultiholeSanding Disc

Enhanced CombatHelmet

Lightning StrikeProtection

WaterTreatment

Paint DefenderSpray

InteriorTrim Film

Programs launched in 2013 with $200M annual sales potential by 2015

Gear GrindingWheels

3MTMIntegratedHook Tab

CompressedNatural GasCylinders


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Leveraging strong base to accelerate international growth

3M Market Index Forecast Growth Rate

Pursuing international penetration opportunities with a strong focus on developing co

Developing34%

Developed66%

Sales Mix

Strong global business growing at 6% IPI in developing markets projected to grow at >2X d

6% 6%7%

8%

Mexico Southeast Asia Russia Brazi


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Focused on faster-growing developing countries

Prioritize growth opportunities in Heartlanddivisions, Oil & Gas and local distribution channels

Focus on sales-force training

Brazil

Key-account focuswith large custome

Prioritize investmedivisions and Oil &

Maintain strength in export markets whileexpanding domestically

Localize supply chains as domesticconsumption increasesChina for China

China

New products aimed at local automotive,personal care and electronic markets

Local manufacturing to capture operational andtax benefits

Mexico

Move with customers as OEMs transferproduction to the region

Localize manufacturing with Thailand Super-huinvestment

Southeast Asia

Nearly $2B growth opportunity in prioritized countries


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Industrial Business Group

Advancing Every Company Enhancing

Bringing the 3M Vision to life

Improving Every Life

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