11

3M3M Minnesota Mining & ManufacturingMinnesota Mining & Manufacturing

Alexandre CHARPENELAlexandre CHARPENELGuillaume CHRESTIA-BLANCHINE Guillaume CHRESTIA-BLANCHINE Vivien HERIARD DUBREUILVivien HERIARD DUBREUILBastien LOSFELDBastien LOSFELDSylvain PETIT LAURENTSylvain PETIT LAURENTOlivier TROUDETOlivier TROUDET 3 Juillet 20033 Juillet 2003

22

TopicsTopics

1.1. Activities and Key-numbersActivities and Key-numbers

2.2. Innovation managementInnovation management

3.3. Strategy Strategy

4.4. 3M-Point of View about France3M-Point of View about France

5.5. 3M expectations3M expectations

33

3M Activities3M Activities

• 6 main fields of activities6 main fields of activities

• Guide lineGuide line

Leading through innovation

23%

20%

17%

16%

14%

10%

Health

Security, Protection, Signs

Mass market & OfficesuppliesIndustry

Technical specialities

Telecommunication &Electronics

44

Key-numbersKey-numbers

WorldwideWorldwide EuropeEurope FranceFrance

EstablishmentEstablishment60 countries60 countries

29 international 29 international companiescompanies

28 countries28 countries

33 sites33 sites8 sites8 sites

Turnover in Turnover in 20022002 $16,3 bn$16,3 bn $3,9 bn$3,9 bn $$1,151,15 bn bn

EmployeesEmployees 71.000 people71.000 people 19.000 people19.000 people 3.300 3.300 peoplepeople

55

Structure of 3M in FranceStructure of 3M in France

• 3 Headquarters3 Headquarters

– 3M France SAS (60%)3M France SAS (60%)Security, Protection, Signs, Mass Market, Office supplies…

– Laboratoires 3M Santé SAS (32%)Laboratoires 3M Santé SAS (32%)Health

– Pouyet 3M Télécommunications (8%)Pouyet 3M Télécommunications (8%)TTelecommunication

66

France as a strategic countryFrance as a strategic country

• Fifth market place in the worldFifth market place in the world

• 2727% of the European Turnover% of the European Turnover

• 70% of 3M’s products sold in France 70% of 3M’s products sold in France

are made on the spotare made on the spot

77

3M contribution3M contribution

0

5

10

15

20

25

30

€ p

er in

hab

itan

t

Turnover of 3M per inhabitant

France

Europe

World

US

0

0,5

1

1,5

2

2,5

3

3,5

Researchers of 3M per million inhabitants

FranceEuropeWorld

0

20

40

60

80

100

120

140

Workers of 3M per million inhabitants

FranceEuropeWorldUS

• The financial areaThe financial area

• The human fieldThe human field

88

Innovation managementInnovation management

• 7000 researchers in the world 7000 researchers in the world (10% of the staff)(10% of the staff)

• 6.5% of the Turnover in R&D ($1.1bn)6.5% of the Turnover in R&D ($1.1bn)

• 40% of the Turnover realised with new 40% of the Turnover realised with new products (less than 4 years old)products (less than 4 years old)

99

Innovation managementInnovation management

• PolicyPolicy– 100 millions euros revenue for each project (Go/NoGo)100 millions euros revenue for each project (Go/NoGo)– 3 ways for acquiring technology3 ways for acquiring technology

» In-house research» Purchasing patents or companies» Developing personal project : Each researcher spends

15% of their time on a project of his choice

– Expanding an innovation to the potential marketsExpanding an innovation to the potential markets

Local Innovation Global Application

Bu

Bu

Bu

1010

StrategyStrategy

Targeting the highest potential markets

• Growing on their own strengthGrowing on their own strength

• 3M acceleration3M acceleration

• External growth and partnershipsExternal growth and partnerships

Permanent investment & improvement of the actual infrastructure

Reducing time between innovation and product on market

1111

Implementation in FranceImplementation in France

• External growth & partnerships– Acquisition of Pouyet telecommunication (2000)– World distribution of health treatment with Eli lilly (2001).

• 3M acceleration– 40 % of sales with innovations from less than 4 years– Concentrating the investment on the best projects (hierarchy of programs)

• Improvement of infrastructuresImprovement of infrastructures– Pithiviers, new production line (22 M€ in 1998) – St-Ouen , new european distribution center (48.5 M€ in 1999)– Beauchamp, european R&D center for unwoven materials (10 M€ in

2001)

1212

3M-Point of View about France3M-Point of View about France

• Main StrengthesMain Strengthes

– Attractive and growing French marketAttractive and growing French market– Financial aids for R&D activitiesFinancial aids for R&D activities– French innovation and creativity French innovation and creativity – Very high quality engineeringVery high quality engineering– Education system Education system – Central geographic position in EuropeCentral geographic position in Europe– Excellent transport and communicationExcellent transport and communication– InfrastructuresInfrastructures

1313

3M-Point of View about France3M-Point of View about France

• Main WeaknessesMain Weaknesses

– Inflexible juridical, fiscal and social environment Inflexible juridical, fiscal and social environment (labour costs, taxes, labour regulations, 35 hours (labour costs, taxes, labour regulations, 35 hours law...)law...)

– Lack of French attractivity for Top manager Lack of French attractivity for Top manager

(personal fiscal reasons, bad image of France...)(personal fiscal reasons, bad image of France...)

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3M expectations3M expectations

• Next target marketsNext target markets– Do It YourselfDo It Yourself– Professional cleaning materialsProfessional cleaning materials– Security of goodsSecurity of goods– Optical fibers, films and biotechnologyOptical fibers, films and biotechnology

• Preference marketsPreference markets– Telecommunication, health, optics and electronicsTelecommunication, health, optics and electronics– Should represent 35 % of 3M growth in 2003 Should represent 35 % of 3M growth in 2003

(25 % in 2000)(25 % in 2000)

1515

3M expectations3M expectations

• Go on Innovation ManagementGo on Innovation Management– Every opportunities of doing Research & Development activities Every opportunities of doing Research & Development activities

(especially High Tech)(especially High Tech)– Personnel qualityPersonnel quality– Patents of technology or innovating productsPatents of technology or innovating products

• Go on investing in FranceGo on investing in France– Strategic position in EuropeStrategic position in Europe– Transport and telecommunication networksTransport and telecommunication networks– Large MarketLarge Market– Production closed to R&D areaProduction closed to R&D area

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ConclusionConclusion

• Continuous investments in France since Continuous investments in France since 19511951

• French French attractivity based on R&D attractivity based on R&D environment (fiscality, education…)environment (fiscality, education…)

• France is in adequation with the 3M France is in adequation with the 3M worldwide strategyworldwide strategy