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1. All Rights Reserved.11 December 2017© 3M
2018 Outlook Meeting
Inge ThulinChairman of the Board, President and
Chief Executive Officer
December 12, 2017
2. All Rights Reserved.11 December 2017© 3M
Today’s meeting highlights
• Our Playbook is working: delivering on our key metrics
• Ready and well-positioned for 2018
• 2018 outlook
o 3-5% total company organic growth
o 6-10% EPS growth
3. All Rights Reserved.11 December 2017© 3M
Building strength-on-strength and positioned for growth
2012• Articulated 3M Vision and Strategies• Established robust portfolio management
2013 • Prioritized 3 key levers to create value• Enhanced capital deployment plan
2014 • Defined Fundamental Strengths• Reshaped Leadership Behaviors
2015• Restructured organization for focus, agility and
efficient growth• Deployed unified 3M Brand strategy
2016• Accelerated Business Transformation
deployment• Created new 5-year plan
2017 • Executing portfolio initiatives• Prioritizing new growth platforms
4. All Rights Reserved.11 December 2017© 3M
Our Vision
3M Technology Advancing Every Company
3M Products Enhancing Every Home
3M Innovation Improving Every Life
Our Strategies
- Expand relevance to our customers and our presence in the marketplace
- Gain profitable market share and accelerate market penetration everywhere
- Invest in innovation: Invigorate existing market opportunities and focus on emerging megatrends
- Intensify capabilities to achieve regional self-sufficiency
- Build high performing and diverse global talent
- Drive consistent superior levels of operational excellence
5. All Rights Reserved.11 December 2017© 3M
Our Playbook is working
Investing in Innovation
Portfolio Management
Business Transformation
6. All Rights Reserved.11 December 2017© 3M
Executing our Playbook has created a successful portfolioAchieving growth while building for the future
IndustrialHealth Care ConsumerSafety & Graphics Electronics & Energy
$31.6B Revenue
Organic Local Currency Growth: 5%Operating Margin: 25% 2017e Sales
$10.9B$5.8B $4.6B$6.1B $5.1B
Note: Financial metrics as reported. 3M total revenue reflects eliminations of dual credit.
1. All Rights Reserved.12 December 2017© 3M
Positioned for growth with a proven global model
Time
GD
P p
er
cap
ita
Infrastructure
Manufacturing
Safety
Retail
Health Care
8. All Rights Reserved.11 December 2017© 3M
Leading with a Customer First mindset
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Leveraging our Fundamental Strengths to create 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
10. All Rights Reserved.11 December 2017© 3M
Fueling global economic growthTechnology conversion and demographic shift
SustainabilityGlobal middle class
UrbanizationDigital economy
11. All Rights Reserved.11 December 2017© 3M
3M is winning in the world’s leading economies
• $12 billion in sales (2017e)
• World-class, broadest capabilities; strongest brand equity
• Deep, diversified portfolio
• $3 billion in sales (2017e)
• Strong, rapidly growing capabilities; building brand strength
• Portfolio focus: domestic, megatrends
Building strength-on-strength
12. All Rights Reserved.11 December 2017© 3M
Executing our three key levers
Investing in Innovation Business TransformationPortfolio Management
13. All Rights Reserved.11 December 2017© 3M
Portfolio ManagementGain profitable share
Portfolio Management
• Align organization and resources to our best opportunities
• Effectively deploy capital
• Strengthen portfolio through acquisition and divestitures
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Portfolio actions have positioned us to continue delivering growth
Consolidated and aligned organization
Made strategic acquisitions and divestitures
Prioritized opportunities and allocated resources
Static Control Library Systems
Polyfoam
Polymask
License Plate Converting
Healthcare
Safety & Graphics
Industrial Consumer
Display & Graphics
Electronics & Communications
Safety, Security, & Protection
Industrial & Transportation
Consumer & Office
Healthcare Electronics & Energy
6 Sectors 5 Business Groups
40 Businesses 24 Businesses
Combined businesses to increase scale and relevance
Realigned from Six Sectors to Five Business Groups Heartland
Push Forward
Identity Management
Safety Prescription Eyewear
Tolling/ALPR
Electronic Monitoring
15. All Rights Reserved.11 December 2017© 3M
Investing in Innovation3M innovation creating value for our customers
Investing in Innovation
• Invest in and scale new growth platforms
• Deploy connected solutions
• Enhance commercialization effectiveness
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Leveraging unique capabilities to create value for customersResearch and 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
Focusing on connected solutions
17. All Rights Reserved.11 December 2017© 3M
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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Business TransformationStarts and ends with the customer
• Build on successful ERP deployments
• Reduce costs, drive efficiency and increase value for our customers
• Capture $500M to $700M annual savings and $500M working capital improvement by 2020
Business Transformation
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Executing our three key levers
Investing in Innovation Business TransformationPortfolio Management
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Building on our strong process cultureOptimizing our processes to best serve our customers
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• Unique capability to innovate, serving both business growth and societal value
• Engaging customers globally to help them achieve their sustainability goals
• 18 consecutive years on the Dow Jones Sustainability Index
Sustainability creating growth opportunities for 3MHelping our customers deliver on their promises
22. All Rights Reserved.11 December 2017© 3M
Our Playbook is working
Investing in Innovation
Portfolio Management
Business Transformation
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Delivering on our shareholder commitments
Organic Local-Currency Growth
EPSGrowth
100%
ROIC
2-5%
20%
Free CashFlow Conversion
8-11%
2016-20 plan
24. All Rights Reserved.11 December 2017© 3M
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