Industrial Business Group.pdf
Transcript of Industrial Business Group.pdf
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Industrial Business GroupBrad Sauer, Executive Vice President
December 17, 2013
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2 2014 3M Outlook Meeting, December 17, 2013
Agenda
Industrial Business Group Overview
Strategic Priorities
Active Portfolio Management
Accelerate New Product Innovation and Commercialization
Penetrate in InternationalFocus on Developing
Drive Operational Excellence
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Industrial Business Group is a powerhouse of innovation
Across Many Largwith >$60B
5 Market-Facing Divisions &4 Platform Divisions
Personal Care
Food & Bev
Oil & Gas
MRO
Construction
Ship Building
CommercialVehicle
MedicalHardware
Bio-Pharma
Advanced
Materials
Defense
Automotive AutomotiveAftermarket
IndustrialAdhesives
and Tapes
AbrasivesAerospaceand Comm.
Trans.
PersonalCare
Purification
Leveraging 38 of 3Ms Technology
Platforms
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Industrial Business Group Division Overview
Innovative businesses aligned by technologies and end-user needs
Industrial Adhesivesand Tapes
Automotive Aftermarket Abrasive Systems Automotive
Personal Care PurificationAerospace & Commercial
TransportationDefense Mark
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Sales CAGR of 6%
Operating Income CAGR of 9%
Sales by Business2013e
$B
Industrial Business delivers solid revenue and earnings growth
$8.0$6.9
$8.1 $9.6$9.9 $10.6
$0
$3
$6
$9
$12
2008 2009 2010 2011 2012 2013e
Sales by Geography2013e
U.37
Europe25%
APAC26%
LAC
12%
Adh& T
3
Abrasives14%
AdvancedMaterials
12%
PersonalCare
6%
Purification6%
AutomAfterm
28
Aerospace2%
66% Developed Economies; 34% Dev
$1.5$1.2
$1.7$2.0
$2.2 $2.3
$0.0
$0.8
$1.6
$2.4
2008 2009 2010 2011 2012 2013e
$B
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Industrials vital few strategic priorities are aligned with corporate st
Gain Profitable MarketShare and AccelerateMarket Penetration
Everywhere
Expand Relevance toour Customers andour Presence in the
Marketplace
Invest in Innovation:Invigorate Existing
Market Opportunitiesand Focus on
Emerging Megatrends
Build High Performingand Diverse Global
Talent
Intensify Capabilitiesto Achieve Regional
Self-Sufficiency
Active PortfolioManagement
Accelerate New ProductInnovation and
Commercialization
Penetrate in InternationalFocus on Developing
DriveE
Enabled by Business Transformation and empowered by the worlds best team
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Aligning the Industrial Business Group portfolio to global megatrend
Glass bubblesenabling deeper and moreproductive drilling
Ceramics for PetroCeram sand screens tominimize clogging
Oil & Gas Fuel Efficienc
Composite prescompressed natu
Surfacing and senable light weighsafely and burn le
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Mounting mats & insulation solutions forcatalytic converters
Efficient thermal acoustic systems tomaintain commercial vehicle cabinenvironment
3MTMair barrier fsolution for buildin
Leading sustainafor water treatmen
Green Expansio
Aligning the Industrial Business Group portfolio to global megatrend
Government Intervention
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3MTM
ThinsulateTM
insulationproviding lower-cost noise and vibrationsolutions
3MTMall weather flashing tapefor new building construction andremodeling
Aligning the Industrial Business Group portfolio to global megatrend
Growing Emerging Economies Low-Cost Luxur
VHBTMtape allowrefrigerator markelook
Affordable surfasolutionsenable
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Winning in the Heartland
Industrial Adhesives and Tapes
Prioritized 15 countries to drive increasedpenetration
Focused customer insights anddevelopment efforts to increase NPVI withlarger, higher value solutions
Coordinated efforts in 6 prioritized marketsegments including construction, food &beverage and appliances
Automotive Aftermarket Abrasi
Sharper focus on largest market segmentopportunities of collision repair, auto care,
and marine
Expanding sales force coverage toenhance customer intimacy in top 15countries
Leveraging best in class disruptiveproduct portfolio with unmatched breadthand depth to win share
Utilize Winterthugrain technology
and portable bon
Driving growth insegments of metprecision grindin
Expanding the Stechnology innovBrushes and Co
$6.5B of revenue growing at over 4%
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Building a sustainable high-growth ceramics platform with Ceradyne
Improvecombustion efficiency
& reduce emissions
Protect and save liveswith body armor and helmets for
defense applications
Improve oil & gasapplications with
game changing solutions
Integration completed on plan with EBITDA ahead of target
9 Divisions
$80M order for EnhancedCombat Helmets with U.S.
Marine Corps
New Products
Applications
G
41 active developmentprojects underway
25 coover 50 i
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From To
Expanding Aerospace applications to the commercial transportation
$2B SegmentAerospace $3B SegmentAerospace+ Commercial Transportation
Aligning 3M technologies to fulfill customer needs in multiple markets
With rele
Safe
Ligh
Quiet
Faste
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2013 2017
Accelerate new product innovation and commercialization
Insights-Driven Innovation Prioritize Fewer, Larger Pro
Accelerate New Product Innovation Expand International Capa
Customer-inspired innovation
Technology drivenMarket trends driven
Increase new productsto new markets andcustomers from43% to 57%
NPVI30% to 35%
1 2 3 4 5 6 7 8 9 10 11 12 13 RevenuePotentialatM
aturity Pri
mowit
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Advancing Industrial product platforms to fuel long-term growth
Paint ApplicationSystems
DurableComposite Films
Advanced FoamTapes
Air-Barrier
AdvancedCeramics
Product platforms to be launched in the next 2 years with $1.6B annual sales potenti
Precision ShapedGrain
AdvancedComposites
AcousticsBio-PharmaFiltration
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Winning with platformspaint application system platform evolution
Increasing 3M relevance and advancing our customers in the automotive aftermarke
AnnualSales
Type H/O
AccusprayTMHG09
Accuspray HGP
Accuspray HG18
Sun GunTMII
Accuspray CFM
3oz PPS
Standard, Large, Mini, & Refillable PPSTM
Sun GunTM
400mL PPS
AccusprayHG14
Accuspray HG12 & HG15
Mini H/O
Next Gen PPS
Time
HG13
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Enhancing our customers success with a robust new product pipeli
Blue MultiholeSanding Disc
Enhanced CombatHelmet
Lightning StrikeProtection
WaterTreatment
Paint DefenderSpray
InteriorTrim Film
Programs launched in 2013 with $200M annual sales potential by 2015
Gear GrindingWheels
3MTMIntegratedHook Tab
CompressedNatural GasCylinders
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Leveraging strong base to accelerate international growth
3M Market Index Forecast Growth Rate
Pursuing international penetration opportunities with a strong focus on developing co
Developing34%
Developed66%
Sales Mix
Strong global business growing at 6% IPI in developing markets projected to grow at >2X d
6% 6%7%
8%
Mexico Southeast Asia Russia Brazi
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Focused on faster-growing developing countries
Prioritize growth opportunities in Heartlanddivisions, Oil & Gas and local distribution channels
Focus on sales-force training
Brazil
Key-account focuswith large custome
Prioritize investmedivisions and Oil &
Maintain strength in export markets whileexpanding domestically
Localize supply chains as domesticconsumption increasesChina for China
China
New products aimed at local automotive,personal care and electronic markets
Local manufacturing to capture operational andtax benefits
Mexico
Move with customers as OEMs transferproduction to the region
Localize manufacturing with Thailand Super-huinvestment
Southeast Asia
Nearly $2B growth opportunity in prioritized countries
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Industrial Business Group
Advancing Every Company Enhancing
Bringing the 3M Vision to life
Improving Every Life