patrick campbell presentation

8/4/2019 Patrick Campbell Presentation

1/12

3M CompanyPatrick D. Campbell, Sr. Vice President and CFO

Investors ConferenceMarch 17, 2011

3M2011. All Rights Reserved.

Opened September 2006

156,000 visitors

6,600 events

4,000 customer visits

Welcome To The 3M Innovation Center

20% of visits from customersoutside the U.S.

Supports worldwide network of 30

2

customer technical centers indozens of other countries

3M Technologies Solving Customer Problems



2/12


3/12

Ajoint venture, ~75% owned by 3M

3M Japan Overview

,

9% of consolidated sales

Largest businesses are industrial and consumerelectronics-related

5 manufacturin sites lus man su lier sites

5

(purchased finished goods, converting, etc.)

Headquartered in Tokyo


Situation is fluid, too early to assess complete business impact

All employees are safe

What We Know At This Point

Like other similar companies, 3M wrestling with logistics: roads, fuel,utilities

Mapping global supply chain resources to best meet local customerdemand

We are insured for business interru tion and h sical facilities

6

currently assessing extent of coverage

Well-positioned as recovery progresses; 3M makes many productsuseful in recovery and rebuilding

For example, ramping up global production of safety-related products



4/12

Executing Our Plan to Enhance Shareholder Value

20%+

Growth strategy is working

Investing in R&D, growth cap-ex, supply chain, newmarkets/adjacencies to accelerate sustainable, profitable growth

Long-Term Strategy

7-8%

10 -12% Businessmodel provides unlimited leverage opportunities

Operational excellence drives premium margins, ROIC anddouble-digit earnings growth

Growing free cash flow capability and strong balance sheet

Provides flexibility to fund organic growth programs as well asexecute strategic acquisitions

Providing an attractive return to shareholders

7

Organic SalesGrowth

EarningsGrowth

InvestmentReturns

Our Key Strategies are Working

Long history of paying competitive dividend; increased 53consecutive years

Capital structure and free cash flow capability provideopportunity to aggressively repurchase shares


We Have Delivered > 10% EPS Growth WhileMaintaining Industry-Leading Operating Margins & ROIC

$6.00 25%28%

$2.00

$3.00

$4.00

$5.00

17.2%

22.7%

21.0%

22.1%

20.6% 20.8%

22.2%

5%

10%

15%

20%

13%

16%

19%

22%

ROIC

OperatingIncomeMargin

8

$1.002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

GAAP EPS EPS excluding pharma

0%10%2000 2005 2006 2007 2008 2009 2010

Op. Inc. Margin ROIC

GAAP EPS has Grown 10.4% CAGR Over Last Decade,or Up 11% Excluding Divested Pharma Business

We Drive Operational and Capital Disci plineto Fund Growth


* All amounts exclude specialty pharma business, which was divested in 2006/2007. Refer to appendix for non-GAAP financial measures discussion.


5/12

3Ms Business Performance System Securing Our Profitability

Continuous Focus on

RelentlessFactory CostReduction

Streamlining

Management System

3M BPS

Lean ManufacturingSupply Chains

Winning the Warfor Talent

Disciplined SKUReduction

AggressiveGlobal Sourcing

Driving SG&AProductivityLean Six Sigma

HosinKanri

9

Woven Into The Fabric of 3M - The Way We Do Business

Results-Based TotalCompensation Design

Diligent Indirect

Cost Reduction

Progressivee-Productivity


Global Businesses, Local Execution

Country Collaborative managementlat

ory

Country

Country

Country

Country

Country

teams The Best of Both

Country/Business alignmenton key investment programs

Rapid replication across theglobe

Improves investmentategy,Brand,KeyAcctMgmt,Regu

10

Countryreturns

Local Execution, Branding, Product & Market Development

GlobalStr


3Ms International Matrix Drives Significant Value


6/12

StrategicThrust

Our Basic Growth Strategy Remains in Place

row e urrenCore Business

u ewBusinesses

omp emen aryAcquisitions

n erna onaGrowth

Capitalizing onmegatrends

Entrepreneurial initiatives

Business modelinnovation

Defend the core

Expand presence acrossthe pyramid

Relentless penetration

Rebuilding R&D

Build scale and share

Solidify the core

Move into adjacencies

Create new platforms

Driving localization

Expanding footprint indeveloping markets

No country left behind

Unraveling the hairball

11 3M2011. All Rights Reserved.

Industrial Adhesives and TapesPatrick Deconinck, VP and General Manager

Industrial & Transportation2010 Sales of $8.6B

Adhesives& Tapes

32%



7/12

Electronics Markets MaterialsHerve Gindre, VP and General Manager

Electro & Communications2010 Sales of $2.9B

ElectronicsMktsMatls

31%


Renewable EnergyMike Roman, VP and General Manager


Renewable Energy 4%



8/12

Automotive OEMTony Stokes, VP and General Manager


Auto OEM 12%


Occupational Health and Environmental SafetyJulie Bushman, VP and General Manager

Safety, Security & Protection Svcs2010 Sales of $3.3B

OccupationalHealth & Env.

Safety56%



9/12

Food SafetyFrancine Savage, VP and General Manager

Health Care2010 Sales of $4.5B

Food Safety 4%


OrthodonticsBill Cruise, VP and General Manager

Health Care2010 Sales of $4.5B

Ortho 7%



10/12

China Region and 3M ChinaKenneth Yu, Managing Director

Developing Countries2010 Sales of $8.8B

Taiwan9%

Other52%

China/Hong Kong

25%China

Region34%

19

Brazil 11%

India 3%


3M BrazilMike Vale, Managing Director


Taiwan9%

Other52%

China/Hong Kong

25%

20

Brazil 11%

India 3%



11/12

3M IndiaAjay Nanavati, Managing Director


Taiwan9%

Other52%

China/Hong Kong

25%

21

Brazil 11%

India 3%


3Ms Innovation and Excellence is Gaining More AttentionThe 10 Most Innovative Companies

Innovation executives we surveyed votedoverwhelmingly for Apple, Google, and 3M as the

most innovative companies.

Most Respected #7

#1 Best Companies for Leaders

Nov. 2010

Most Reputable #4

April 2010

.

22

And Many More

Most Admired #15

March 2011

Jan. 2009


March 2011

Best Corporate Citizen #6


12/12

23

7:45 a.m. Welcome Patrick Campbell

Industrial Adhesives & Tapes PatrickDeconinck

Electronics Markets Materials Herve Gindre

Renewable Energy Mike Roman

Outstanding Agenda Today

utomotve ony to es

Occupational Health & Environmental Safety JulieBushman

10:05 a.m. Break

10:20 a.m. Food Safety Francine Savage

Orthodontics Bill Cruise

China and China Region Kenneth Yu

24

India Ajay Nanavati

12:25 p.m. Lunch

1:30 p.m. GeorgeBuckley, Chairman, President & CEO

2:15 p.m. Q&A

3:00 p.m. Depart for airport


patrick campbell presentation

Documents