Upload
finance10
View
1.155
Download
3
Embed Size (px)
DESCRIPTION
Citation preview
3M Industrial & Transportation Business
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
The Leading Provider of
Customers’ Successto ourIndustrial Solutions Vital
H. C. ShinExecutive Vice PresidentDecember 12, 2007
3M Industrial & Transportation Business
2
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
AutomotiveAutomotiveAbrasive SystemsAbrasive Systems
Automotive AftermarketAutomotive AftermarketIndustrial Adhesives & TapesIndustrial Adhesives & TapesTaping and Bonding solutions in every industry Solutions that help repair & maintain auto appearance
Systems to modify and finish surfaces Helping auto manufacturers add value and reduce cost
Diverse Products/Technology Platforms, 8 Divisions, 3M’s Core
3M Industrial & Transportation Business
3
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Energy & Advanced MaterialsPersonal CarePersonal Care
Aerospace & Aircraft MaintenanceAerospace & Aircraft MaintenanceCUNOCUNO
Bringing 3M technology to solve energy problems and improving materials & processes
Renewable Energy EBORenewable Energy EBO Oil & Gas EBOOil & Gas EBO
Advanced Materials
High Performance Polymers, Ceramics,
Chemicals, Glass
Filtration solutions for home, commercial and industrial locations
Filtration EBOFiltration EBO
OEM, maintenance and repair solutions for aircraft
3M materials solutions for disposable personal care industry
Diverse Products/Technology Platforms, 8 Divisions, 3M’s Core
3M Industrial & Transportation Business
4
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
ElectronicsElectronicsBuilding ContractorsBuilding Contractors
Food & BeverageFood & Beverage
Paper & PackagingPaper & Packaging
Appliance &Appliance &FurnishingsFurnishings
Oil & GasOil & GasAerospaceAerospace
Automotive OEM
Maintenance & Repair
Serving Diverse Global Markets
Automotive AftermarketAutomotive Aftermarket
ConstructionConstruction
3M Industrial & Transportation Business
5
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Oil and Gas Market Center– Bringing all 3M Solutions
FluoroelastomerFor Gaskets, Rings
CUNO Liquid Filter Bag
Glass BubbleLow Density Cement
3M EpoxyCoating
Novec FireProtectionFluid
Worker Safety Solutions
Termination,SplicingProducts
3M Industrial & Transportation Business
6
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
3M is the Brand of Choice (2006 Burke End Customers Survey)
74%
21%29%
21%13%
0%
20%
40%
60%
80%
100%
3M Top 3Competitor
Average
Comp 1 Comp 2 Comp 3
Tapes Category Purchase Consideration
83%
27% 30% 29%22%
0%
20%
40%
60%
80%
100%
3M Top 3Competitor
Average
Comp 1 Comp 2 Comp 3
Adhesives Category Purchase Consideration
3M Industrial & Transportation Business
7
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Europe28%
LAC11%
US37%
APAC24%
$5,146
$5,621
$6,047
$4,988
$5,396
$6,640
2003 2004 2005 2006 9 Months'06
9 Months'07
Sales($ millions)
’04-’07Est Year CAGR = 8.4%Global IPI Growth = 3.6%
2006 Sales by Geography
Delivering Solid Sales Across a Balanced Global Footprint
>$ 2 Billion sales increase in 4 years
+8.2%
3M Industrial & Transportation Business
8
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
SG&A as % of Sales
Cost of Goods Sold as % of Sales
$825$1,037
$1,210$1,357
$1,039$1,150
2003 2004 2005 2006 9 Months'06
9 Months'07
Operating Income
16.0% 18.4% 20.0% 20.4% 20.8% 21.3%OI%
23.4%23.7%24.1%
25.1%
2003 2004 2005 2006
54.5%54.9%
55.7%
57.2%
2003 2004 2005 2006
’04-’07Est Year CAGR = 13.4%
($ millions)
Continuous Improvement in Operating Margin ThroughOperational Excellence Discipline
>$700M increase in OI over 4 years>500 bps improvement to margin in 4 years
Note: Excludes special items in all periods
3M Industrial & Transportation Business
9
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Operational ExcellenceGrowthProtect and
Grow the CoreAdjacentBuild Out
1. New Technology 2. New Products 3. New Growth Ventures
4. M&A 6. Go to Market
3. Solve Low Turns Inventory
4. Service & Quality Revolution 5. Sourcing5. Localized, Simplified
Supply Chains
1. Factory Cost Reduction
2. Control Price Leakage
6. Lean Six Sigma
Our Strategy Execution Playbook…Growth Inspired by Our Customers, Balanced with Operational Excellence
3M Industrial & Transportation Business
10
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Operational Excellence3. Solve Low
Turns Inventory
4. Service & Quality Revolution 5. Sourcing
1. Factory Cost Reduction
2. Control Price Leakage
6. Lean Six Sigma
$175
$67
$103$80
Lean Six Sigma Sourcing Pricing Actions HeadcountProductivity
Operational Excellence Playbook Generates >$400M AnnuallyStrong Productivity Improvement Hopper
($ millions) 3 Year Average Annual Savings $
3M Industrial & Transportation Business
11
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Months
Prod
ucti
vity
343128252219161310741
2005 2006 2007
Month51464136312621161161
2003 2004 2005 2006 2007
1
1
Lean Six Sigma Initiative Yielding $5M in Cost Savings at Greenville Box Sealing Tape Plant
Film Making ProductivityFilm Making Productivity Tape Converting ProductivityTape Converting Productivity
• Changeover Wheel• Runtime & Yield Improvements• Speed Increases• In-sourced more film without additional labor
• Runtime/Rate Improvements• Changeover reductions• Operator Task balancing
$1.2M savings
$3.8M savings
backback
3M Industrial & Transportation Business
12
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
SG&A Productivity Continues to Increase
backback
7998 8032 8063 8138
8486$629
$700
$750
$816$843
7000
7250
7500
7750
8000
8250
8500
8750
9000
9250
9500
9750
10000
2003 2004 2005 2006 2007$400
$450
$500
$550
$600
$650
$700
$750
$800
$850
$900
Estimated # of EmployeesSales/Employee
Estimated # of Employees and Sales per EmployeeSales/ SG&A Employee ($ thousands)Estimated # of SG&A Employees WW ’04-’07 Productivity CAGR = 7%
3M Industrial & Transportation Business
13
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Global Trends Present Opportunities that Drive our Strategy
Manufacturing Geo Manufacturing Geo MigrationMigration
Water in DangerWater in Danger
New MaterialsNew Materials
Aircraft BoomAircraft Boom
Energy CrunchEnergy Crunch
Changing Changing Automotive IndustryAutomotive Industry
Channel in Channel in TransformationTransformation
3M Industrial & Transportation Business
14
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Emerging Economies will exceed $1.1B in 2007 Representing >15% of Global Sales with Growth >25%
$300
$383
$491
$609$562
2003 2004 2005 2006 9 Months 07
+28%
Significant BRICP Sales Growth…
+28%
+24%($ millions)YOY Change %
BRICP• Brazil• Russia• India• China• Poland
+20%
- Sales, marketing, technical execution, feet on the street- Localization of manufacturing and R&D- Supply Chain simplification- Global Best Practice sharing
3M Industrial & Transportation Business
15
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Untangling Supporting Global Growth withSupply Chains Localized Manufacturing
Pune, India
Guangzhou, China
Wroclaw, Poland
Naju, S. Korea
Xin Qiao, ChinaSouth Dakota
Brazil
Mexico
while
3M Industrial & Transportation Business
16
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
27M Vehicles (64% < 4 years old)8.5M added per year
11M new drivers added each year
40% involved in 1 collision per year 90% of collisions repaired
Volume Shops 18,000 17,125Accident Rate 16% 40%Repair Rate 65% 90%Total # Vehicle Repaired 17.5 M 10.2 MSales Per Repaired Vehicle $26.05 $1.30
Vast International Penetration Opportunity Still Exists- Auto Aftermarket Division
China
3M Industrial & Transportation Business
17
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Emerging Economies will exceed $1.1B in 2007 Representing >15% of Global Sales with Growth >25%
$300
$383
$491
$609$562
2003 2004 2005 2006 9 Months 07
+28%
Significant BRICP Sales Growth…
+28%
+24%
BRICP• Brazil• Russia• India• China• Poland
New Frontier Countries• Middle East• Central East Europe• South East Asia• Emerging Latin America
+20%
…and More Growth to Come in Emerging Economies
($ millions)YOY Change %
3M Industrial & Transportation Business
18
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Paint Systems
Adhesives & Tapes
Liquid Filtration
Car Care
Energy
Abrasives
New Industrial Platforms
Adjacent
CoreNew
Aerospace & Automotive Platforms
Growth Portfolio Investment Map…Core as #1 Priority While Developing Adjacencies to Expand our Footprint
I&TBToday
< 1 year 1-3 years > 3 years
3M Industrial & Transportation Business
19
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Paint Systems
Adhesives & Tapes
Liquid Filtration
Car Care
Energy
Abrasives
New Industrial Platforms
Adjacent
CoreNew
Aerospace & Automotive Platforms
Growth Portfolio Investment Map…Core as #1 Priority While Developing Adjacencies to Expand our Footprint
= New Technology
I&TBToday
< 1 year 1-3 years > 3 years
3M Industrial & Transportation Business
20
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Paint Systems
Adhesives & Tapes
Liquid Filtration
Car Care
Energy
Abrasives
New Industrial Platforms
Adjacent
CoreNew
Aerospace & Automotive Platforms
Growth Portfolio Investment Map…Core as #1 Priority While Developing Adjacencies to Expand our Footprint
= New Products
= New Technology
I&TBToday
< 1 year 1-3 years > 3 years
3M Industrial & Transportation Business
21
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Paint Systems
Adhesives & Tapes
Liquid Filtration
Car Care
Energy
Abrasives
New Industrial Platforms
Adjacent
CoreNew
Aerospace & Automotive Platforms
Growth Portfolio Investment Map…Core as #1 Priority While Developing Adjacencies to Expand our Footprint
= New Growth Ventures
= New Products
= New Technology
I&TBToday
< 1 year 1-3 years > 3 years
3M Industrial & Transportation Business
22
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Paint Systems
Adhesives & Tapes
Liquid Filtration
Car Care
Energy
Abrasives
New Industrial Platforms
Adjacent
CoreNew
Aerospace & Automotive Platforms
Growth Portfolio Investment Map…Core as #1 Priority While Developing Adjacencies to Expand our Footprint
= New Growth Ventures
= New Products
= New Technology
x 2
x 4 x 4
= M&A Closed Deals
I&TBToday
< 1 year 1-3 years > 3 years
3M Industrial & Transportation Business
23
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
• Paint mixing• Solvent use inside paint room• Cumbersome clean-up• Productivity issue
x1M paintguns usedin the US
$1,000/Gun/YearConversion opportunity
Breakthrough New Product – Paint Preparation Systems
= $1.0B USMarket Opportunity
CustomerPain
Points
3M3MSolutionSolution
Paint Preparation SystemsPaint Preparation Systems
3M Industrial & Transportation Business
24
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Breakthrough New ProductsNext Generation Tapes and Structural Adhesives Technologies
Gen 4 Acrylic TapeGen 4 Acrylic Tape•Works with next generation paints & tough to bond to surfaces
Low Temperature Bond TapeLow Temperature Bond Tape•Breakthrough tape construction to work in adverse weather conditions
Composite Bonding FilmComposite Bonding Film•Boeing 787 platform applications•Various other composite parts bonding
VHB Structural TapesVHB Structural Tapes•Façade panel bonding•High temperature•High UV•High wind shear
3M Industrial & Transportation Business
25
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Water Filtration New Products—CUNO + 3M Technology
CUNO leveraging 3M technology and markets to provide unique solutions enabling superior filtration for key industries
Marine & RV specialty filtration
NanoshieldA SMART hollow fiber filter that is compatible with aggressive fluids
3M Industrial & Transportation Business
26
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Renewable Energy (Solar) Emerging Business OpportunitySolar Industry Solar Industry
Pain PointsPain Points
Capturing Sunlight
Environmental Durability
Thermal Management
3M Technology 3M Technology ToolboxToolbox
++ ==Fluoropolymer
FilmsMicroreplicated
Films
LightManagement
Metallized Films
Barrier Films
Clear Adhesives
Coatings Structural Tapes
Unique & Differentiated Unique & Differentiated SolutionsSolutions
Mirror Films
IR Rejection Films
Fresnel Lens Film
Scotchsheildtm
Barrier Film
NovelCoatings
3M Industrial & Transportation Business
27
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
2006 – 2007, Ten Complementary Acquisitions
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
25
BondoBondo Corporation Corporation -- Q3 2007Q3 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
25
BondoBondo Corporation Corporation -- Q3 2007Q3 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
31
AccusprayAccuspray Applications Technology Applications Technology -- Q1 2007Q1 2007Proprietary Spray guns for automotive and Industrial applications.
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
31
AccusprayAccuspray Applications Technology Applications Technology -- Q1 2007Q1 2007Proprietary Spray guns for automotive and Industrial applications.
4. A&A
BondoAccuspray© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
27
North Star Chemicals North Star Chemicals -- Q4 2006Q4 2006Aerosol Canister Delivery Systems
Woodworking
Building and Construction
Manufactured Housing/RVs
Marine Adhesives
HVAC
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
27
North Star Chemicals North Star Chemicals -- Q4 2006Q4 2006Aerosol Canister Delivery Systems
Woodworking
Building and Construction
Manufactured Housing/RVs
Marine Adhesives
HVAC
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
29
What does this mean for 3M?What does this mean for 3M?
Product PortfolioProduct Portfolio
Gaps FilledAnaerobic, Structural, Cyanoacrylate
AdhesivesNew UV Adhesives product offering
Sales SynergiesIndustrial distribution OEM and MRO market segments
Cyanoacrylate Adhesives
•General purpose - metal bonding, plastics & rubber
Anaerobic Adhesives
•High-performance, single component engineering
adhesives, that cure in the absence of air and in the presence
of metal parts
Ultra-Violet (UV) Curing Adhesives
•Fast controllable cure at room temperature which provide
instant, & high strength for most glass, metal, & plastic
Structural Adhesives
(Epoxy, methacrylate)
•Bond to virtually all surfaces
•Long-term performance in demanding environments
•Flexibility
Rite Rite LokLok -- Q1 2007Q1 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
29
What does this mean for 3M?What does this mean for 3M?
Product PortfolioProduct Portfolio
Gaps FilledAnaerobic, Structural, Cyanoacrylate
AdhesivesNew UV Adhesives product offering
Sales SynergiesIndustrial distribution OEM and MRO market segments
Cyanoacrylate Adhesives
•General purpose - metal bonding, plastics & rubber
Anaerobic Adhesives
•High-performance, single component engineering
adhesives, that cure in the absence of air and in the presence
of metal parts
Ultra-Violet (UV) Curing Adhesives
•Fast controllable cure at room temperature which provide
instant, & high strength for most glass, metal, & plastic
Structural Adhesives
(Epoxy, methacrylate)
•Bond to virtually all surfaces
•Long-term performance in demanding environments
•Flexibility
Rite Rite LokLok -- Q1 2007Q1 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
30
A 3 Company
Full line of Protection Tapes for various industrialand transportation market segments
PolyMask Corporation --- Q1,2007
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
30
A 3 Company
Full line of Protection Tapes for various industrialand transportation market segments
PolyMask Corporation --- Q1,2007
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
32
Venture Tape Venture Tape -- Q3 2007Q3 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
32
Venture Tape Venture Tape -- Q3 2007Q3 20074. A&A
Rite-Lok North Star Chemicals PolyMask VentureTape
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
24
UnifamUnifam -- Q3 2007Q3 2007Abrasives Acquisition in PolandAbrasives Acquisition in Poland
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
24
UnifamUnifam -- Q3 2007Q3 2007Abrasives Acquisition in PolandAbrasives Acquisition in Poland
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
26
General Industrial Diamond General Industrial Diamond -- Q4 2006 Q4 2006 SuperabrasivesSuperabrasives,, BondedBonded AbrasivesAbrasives
Resin Bond Diamond Wheels Metal Bond
Diamond WheelsAnd Tools
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
26
General Industrial Diamond General Industrial Diamond -- Q4 2006 Q4 2006 SuperabrasivesSuperabrasives,, BondedBonded AbrasivesAbrasives
Resin Bond Diamond Wheels Metal Bond
Diamond WheelsAnd Tools
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
28
Diamond Production Inc Diamond Production Inc -- Q1 2007Q1 2007Sales: $15.22 MMEBITDA: $ 2.85MM (19%)Sales Growth: 8%
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
28
Diamond Production Inc Diamond Production Inc -- Q1 2007Q1 2007Sales: $15.22 MMEBITDA: $ 2.85MM (19%)Sales Growth: 8%
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
33
Standard Abrasives Standard Abrasives -- Q4 2007Q4 20072007 EstimatesSales: $54.9 MM EBITDA: $8.9 MM (16%)Sales CAGR: 11% (04 =>07)
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
33
Standard Abrasives Standard Abrasives -- Q4 2007Q4 20072007 EstimatesSales: $54.9 MM EBITDA: $8.9 MM (16%)Sales CAGR: 11% (04 =>07)
4. A&A
Unifam General Industrial Diamond Diamond Production Standard Abrasives
3M Industrial & Transportation Business
28
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Complementary Acquisitions - Strengthening Tapes & Adhesives
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
27
North Star Chemicals North Star Chemicals -- Q4 2006Q4 2006Aerosol Canister Delivery Systems
Woodworking
Building and Construction
Manufactured Housing/RVs
Marine Adhesives
HVAC
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
27
North Star Chemicals North Star Chemicals -- Q4 2006Q4 2006Aerosol Canister Delivery Systems
Woodworking
Building and Construction
Manufactured Housing/RVs
Marine Adhesives
HVAC
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
29
What does this mean for 3M?What does this mean for 3M?
Product PortfolioProduct Portfolio
Gaps FilledAnaerobic, Structural, Cyanoacrylate
AdhesivesNew UV Adhesives product offering
Sales SynergiesIndustrial distribution OEM and MRO market segments
Cyanoacrylate Adhesives
•General purpose - metal bonding, plastics & rubber
Anaerobic Adhesives
•High-performance, single component engineering
adhesives, that cure in the absence of air and in the presence
of metal parts
Ultra-Violet (UV) Curing Adhesives
•Fast controllable cure at room temperature which provide
instant, & high strength for most glass, metal, & plastic
Structural Adhesives
(Epoxy, methacrylate)
•Bond to virtually all surfaces
•Long-term performance in demanding environments
•Flexibility
Rite Rite LokLok -- Q1 2007Q1 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
29
What does this mean for 3M?What does this mean for 3M?
Product PortfolioProduct Portfolio
Gaps FilledAnaerobic, Structural, Cyanoacrylate
AdhesivesNew UV Adhesives product offering
Sales SynergiesIndustrial distribution OEM and MRO market segments
Cyanoacrylate Adhesives
•General purpose - metal bonding, plastics & rubber
Anaerobic Adhesives
•High-performance, single component engineering
adhesives, that cure in the absence of air and in the presence
of metal parts
Ultra-Violet (UV) Curing Adhesives
•Fast controllable cure at room temperature which provide
instant, & high strength for most glass, metal, & plastic
Structural Adhesives
(Epoxy, methacrylate)
•Bond to virtually all surfaces
•Long-term performance in demanding environments
•Flexibility
Rite Rite LokLok -- Q1 2007Q1 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
30
A 3 Company
Full line of Protection Tapes for various industrialand transportation market segments
PolyMask Corporation --- Q1,2007
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
30
A 3 Company
Full line of Protection Tapes for various industrialand transportation market segments
PolyMask Corporation --- Q1,2007
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
32
Venture Tape Venture Tape -- Q3 2007Q3 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
32
Venture Tape Venture Tape -- Q3 2007Q3 20074. A&A
3M Industrial & Transportation Business
29
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Complementary Acquisitions - Strengthening the Abrasives Portfolio
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
24
UnifamUnifam -- Q3 2007Q3 2007Abrasives Acquisition in PolandAbrasives Acquisition in Poland
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
24
UnifamUnifam -- Q3 2007Q3 2007Abrasives Acquisition in PolandAbrasives Acquisition in Poland
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
26
General Industrial Diamond General Industrial Diamond -- Q4 2006 Q4 2006 SuperabrasivesSuperabrasives,, BondedBonded AbrasivesAbrasives
Resin Bond Diamond Wheels Metal Bond
Diamond WheelsAnd Tools
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
26
General Industrial Diamond General Industrial Diamond -- Q4 2006 Q4 2006 SuperabrasivesSuperabrasives,, BondedBonded AbrasivesAbrasives
Resin Bond Diamond Wheels Metal Bond
Diamond WheelsAnd Tools
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
28
Diamond Production Inc Diamond Production Inc -- Q1 2007Q1 2007Sales: $15.22 MMEBITDA: $ 2.85MM (19%)Sales Growth: 8%
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
28
Diamond Production Inc Diamond Production Inc -- Q1 2007Q1 2007Sales: $15.22 MMEBITDA: $ 2.85MM (19%)Sales Growth: 8%
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
33
Standard Abrasives Standard Abrasives -- Q4 2007Q4 20072007 EstimatesSales: $54.9 MM EBITDA: $8.9 MM (16%)Sales CAGR: 11% (04 =>07)
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
33
Standard Abrasives Standard Abrasives -- Q4 2007Q4 20072007 EstimatesSales: $54.9 MM EBITDA: $8.9 MM (16%)Sales CAGR: 11% (04 =>07)
4. A&A
3M Industrial & Transportation Business
30
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Market Focused Acquisitions - Strengthening the Automotive Aftermarket Portfolio
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
25
BondoBondo Corporation Corporation -- Q3 2007Q3 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
25
BondoBondo Corporation Corporation -- Q3 2007Q3 20074. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
31
AccusprayAccuspray Applications Technology Applications Technology -- Q1 2007Q1 2007Proprietary Spray guns for automotive and Industrial applications.
4. A&A
© 3M 2007. All Rights Reserved.
3M Industrial & Transportation Business
31
AccusprayAccuspray Applications Technology Applications Technology -- Q1 2007Q1 2007Proprietary Spray guns for automotive and Industrial applications.
4. A&A
3M Industrial & Transportation Business
31
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
Summary Summary ----The Profitable Growing Core of 3MThe Profitable Growing Core of 3M
Diversified portfolio solving industrial customer problems worldwide every day
11
22
33
44
Solid track record of profitable growth2004-2007(est.) Sales CAGR = > 8%2004-2007(est.) Operating Income CAGR = > 13%
Significant opportunities for growth in both core and adjacent markets
Executing a balanced playbook
3M Industrial & Transportation Business
© 3M 2007. All Rights Reserved. 2008 3M Outlook Meeting
The Leading Provider of
Customers’ Successto ourIndustrial Solutions Vital
H. C. ShinExecutive Vice PresidentDecember 12, 2007