Post on 26-Jun-2018
1. All Rights Reserved.12 December 2016© 3M >
Electronics & Energy Business
Jim BaumanExecutive Vice President
2017 Outlook MeetingDecember 13, 2016
2. All Rights Reserved.12 December 2016© 3M
Agenda
Who we are
Improving our business
Advancing a connected world
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3M Vision
3M Technology Advancing Every Company
3M Products Enhancing Every Home
3M Innovation Improving Every Life
3M Electronics & Energy strategic intent
“Advancing a connected world”
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Electronics & Energy Business2016e Sales $4.8B
Semiconductor solutions$0.3B
Electronics design materials$1.0B
Electronics$3.0 billion
High performance films$1.3B
Sustainable chemistry$0.4B
Connecting components$0.8B
Electrical tapes & supplies$0.5B
High performance films$0.3B
Coatings & adhesives$0.2B
Energy$1.8 billion
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Improving our business through portfolio prioritization
Operating Income Margins
Enhanced customer relevance
Reallocated resources to best opportunities
Increased operating efficiency and productivity
Results
20162013
Actions Taken
Consolidated businesses and strengthened our portfolio(% to sales)
20.0%
17.8%
2016e2013
~21%
17.8%
21.1%
Re
lati
ve S
trat
eg
ic A
ttra
cti
ven
ess
Relative Financial Attractiveness
Re
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Relative Financial Attractiveness
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Focused on differentiated, higher-value markets
Data Center
AutomotiveElectrification
Utilities ConstructionGrid
AutomationRenewable Energy
and StorageConsumer Electronics
Semiconductor
$60B1-3% CAGR
$11B10-15% CAGR
Growth rate: 5-year CAGR; Source: IHS, 3M estimates
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Building strength on strength to access higher-value marketsLeveraging existing customer relationships and 3M technology platforms
Datacenter
Automotive Electrification
Films and bonding
FiFilms
AdAdhesives
MrMicro-
replication
DiDisplay
LmLight
Management
Fluoro- and Electrochemistry
FlFluoro-
materials
EcEnergy
Components
SmSpecialty Materials
Systems and hard goods
MoMolding
IsIntegrated Systems &
Design
EsElectronics &
Software
SeSensors
EmElectronicMaterials
FeFlexible
Electronics
SmSpecialty Materials
NtNano-
technology
Electronic materials
Grid Automation
Renewable Energy
And Storage
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2017 outlook for Electronics & Energy
Data Center
AutomotiveElectrification
Utilities ConstructionGrid
AutomationRenewable Energy
and StorageConsumer Electronics
Semiconductor
Projecting organic growth of -3% to +1%
LCD and OLED penetration Electrical construction share gain Semiconductor materials penetration
Interconnect in datacenter Auto electrification spec in Novec™ application expansion
Higher-value programsCore growth
Slower consumer electronic device demand
LCD displacement Portfolio exits
Headwinds
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Advancing a connected world
25B connected devices
80% of internet traffic will be video
2x increase in broadband speed
By 2020:
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How we advance a connected electronics world
Consumer Electronics
$18B1-2% CAGR
Data Center
$2B13-15% CAGR
Automotive Electrification
$3B13-15% CAGR
Semiconductor
$6B2-3% CAGR
Enhancing visual experiences
Enabling design and function
Improving data networks
Advancing aconnected car
Growth rate: 5-year CAGR; Source: IHS, 3M estimates
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Enabling design and function. Enhancing visual experiencesSmartphone
3M OLED OfferingsCustomer Roadmap Requirements
Design
Power efficient
Color
Thinness
Flexible / foldable
Proven 3M Differentiators
Innovation leader in optics and light management
Significant breath of capability in electronic materials
Ability to quickly scale high volume manufacturing
Optically clear adhesive
Noise, shock and vibration
Electromagnetic shielding materials
Electronics bonding
Novec™ electronic coatings
Water indicator tape
Thermal management films
Electronic finishing materials
Protective tapes and privacy filters
OLED
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Improving data networksData center
Growth in cloud and hyper-scale computing
Increasing data rates and traffic
Cost of power and cooling
Increasing cost of downtime
Manage heat to improve energy efficiency
Improve uptime and reliability
Enhance signal integrity
Enable higher density computing
3M Solutions
3M™ Novec™ FluidsImmersion cooling
Optical Interconnect
3M™ Novec™ Fluids Fire Suppression
$2B addressable opportunity
13-15% CAGR
Market Drivers What we do
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Advancing the connected carAutomotive electrification
Larger, head-up, and high definition displays
Electronics portion of total vehicle cost will be 50% by 2030
Plug-in hybrid and battery electric vehicles represent 25% of new car sales by 2030
Improve display quality
Increase battery power density and cycle life
Manage heat and interference
3M Solutions
$3B addressable opportunity
13-15% CAGR
Market Drivers What we do
Source: Lux Research
Display and Sensor Materials
3M™ Novec™ Fluids
Battery Materials
Thermal Materials
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How we win with 3M Science in automotive electrification
Displays Drive motor
Battery
Camera / sensor
Body electronics
Insulation paper Powder resins
Inverter
Battery materials Thermal materials Immersion cooling fluids
Insulation paper Thermal materials Adhesives Underfills Shielding materials
Thermal materials Underfills Shielding materials Tapes
Thermal materials Underfills Adhesives
Films Adhesives Thermal materials Shielding materials
Glass Solar films
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How we advance a connected energy world
Connecting people at the speed of light
Improving reliability & efficiency of energy delivery
Advancing a distributed power network
Communications
$12B1-3% CAGR
Utilities
$3B1-3% CAGR
Construction
$3B1-3% CAGR
$2B8-11% CAGR
Renewable Energyand Storage
Grid Automation
$4B15-16% CAGR
Growth rate: 5-year CAGR; Source: IHS, 3M estimates
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Improving reliability and efficiency of energy deliveryGrid automation
Aging infrastructure
Growth in distributed energy resources
Rising peak load demand
Shift to underground grid assets
Locate and map utility assets
Connect and measure electrical energy
Protect assets against harsh environments
Detect and locate faults
3M Solutions
$4B addressable opportunity
15-16% CAGR
Market Drivers What we do
Sensored Cable Accessories
Locating and Mapping Solutions
Underground Sensing and Communication
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Advancing a distributed power networkRenewable energy and storage
Increasing intermittent renewables
Growing demand for peak-load reduction
Increasing demand for energy security and backup power
Improve efficiency
Decrease $/watt
Increase power density
Increase durability and cycle life
3M Solutions
$2B addressable opportunity
8-11% CAGR
Market Drivers What we do
Flow Battery Components
Fuel Cell Components
Solar Efficiency Materials
Wind Materials
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Evolving our portfolio to advance a connected world
Enhancing visual experiences
Enabling design and function
Improving reliability and efficiency of energy delivery
Connecting people at the speed of light
Improving data networks
Advancing aconnected car
Advancing a distributed power network