Slides
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3M’s 2025 Investor Day Welcome to
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Chinmay Trivedi Senior Vice President, Investor Relations and Financial Planning & Analysis 2025 Investor Day Innovation, Excellence & Execution
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3 Agenda Strategic priorities01 Bill Brown CEO Reinvigorating growth02 John Banovetz CTO Driving productivity03 Peter Gibbons Supply Chain Implementing our strategy04 Chris Goralski Safety & Industrial Financials05 Anurag Maheshwari CFO Q&A06 Wendy Bauer Transportation & Electronics Karina Chavez Consumer
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4 This presentation contains forward-looking statements. You can identify these statements by the use of words such as “plan,” “ex pect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” “would,” “forecast,” “future,” “outlook,” “guidance” and other words and terms of simi lar meaning. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results a nd trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. Among the factors that could cause actual results to diff er materially are the following: (1worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Com pany's control, including inflation; recession; military conflicts; trade restrictions such as sanctions, tariffs, and retaliatory measures; regulatory requirements, legal actions, or enforcement; an d natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) foreign currency exchange rates and fluctuations in those rates; (3) liabilit ies and the outcome of contingencies related to certain fluorochemicals known as "PFAS," including liabilities related to claims, lawsuits, and government regulatory proceedings concerning various PFAS-related products and chemistries, as well as risks related to the Company's plans to exit PFAS manufacturing and work to discontinue use of PFAS across its product portfolio; (4) risks relate d to the class-action settlement to resolve claims by public water suppliers in the United States regarding PFAS; (5) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's reports on Form 10-K, 10-Q, and 8-K; (6) competitive conditions and customer preferences; (7) the timing and market acceptance o f new product and service offerings; (8) the availability and cost of purchased components, compounds, raw materials and energy due to shortages, increased demand and wages, supply chain inter ruptions, or natural or other disasters; (9) unanticipated problems or delays with the phased implementation of a global enterprise resource planning system, or security breaches and o ther disruptions to the Company's information or operational technology infrastructure; (10) the impact of acquisitions, strategic alliances, divestitures, and other strategic events res ulting from portfolio management actions and other evolving business strategies; (11) operational execution, including the extent to which the Company can realize the benefits of planned product ivity improvements, as well as the impact of organizational restructuring activities; (12) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans; (13) the Company’s credit ratings and its cost of capital; (14) tax-related external conditions, including changes in tax rates, laws, or regulations; (15) matters re lating to the spin-off of the Company's Health Care business, including the risk that the expected benefits will not be realized; the risk that the costs or dis -synergies will exceed the anticipated amounts; potential impacts on the Company's relationships with its customers, suppliers, employees, regulators and other counterparties; the ability to realize the desired tax treatment; the risk that an y consents or approvals required will not be obtained; risks under the agreements and obligations entered into in connection with the spin -off; and (16) matters relating to Combat Arms Earplugs (“CAE ”) and related products, including those related to the August 2023 settlement that is intended to resolve, to the fullest extent possible, all litigation and alleged claims involving the CAE sold or manufactured by the Company's subsidiary Aearo Technologies and certain of its affiliates and/or 3M. A further description of these factors is located in the Reports under “Cautionary N ote Concerning Factors That May Affect Future Results” and “Risk Factors” in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports). Changes in such ass umptions or factors could produce significantly different results. The Company assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments. Forward-looking statements Throughout this presentation, “earnings per share” or “EPS” references are based on 3M EPS from continuing operations. This p resentation refers to certain non-GAAP financial measures. Refer to 3M’s February 26, 2025, press release for descriptions of non-GAAP financial measures such as adjusted net sales (and adjusted s ales change, including components thereof) and percent of total adjusted net sales; adjusted cost of sales; adjusted gross profit and adjusted gross margin; adjusted operating income, adjus ted segment operating income and adjusted operating margin; adjusted EPS; adjusted net cash provided by (used in) operating activities; adjusted purchases of property, plant and equipment (also referred to as adjusted capital expenditures); adjusted free cash flow; adjusted free cash flow conversion; adjusted days inventory outstanding and adjusted inventory. These non -GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Applicable reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure s can be found in that press release. When a slide in this presentation indicates “presented on an adjusted basis”, it is specific to the non -GAAP measures thereon referenced in the February 26, 2025, press release. Note on earnings per share-related references and overall non-GAAP financial measures
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Bill Brown Chief Executive Officer 2025 Investor Day
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6 Resetting the company … delivering for shareholders Met financial commitments 21% $7.30 Adjusted EPS 280 bps 32% $3.8B Improved execution Returned excess cash to shareholders … strengthened balance sheet 21.4% Adjusted operating margin 169 new product launches 0.8x net leverage ~75% of adjusted FCF in dividends and repurchases 0.4x 74 days cash conversion cycle 8 days
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7 The “new” 3M Relentless focus on execution Constancy of purpose 123 years of innovation… …with a new performance mandate Unmatched global reach Deep material science expertise Manufacturing at scale Strong, iconic brands Value Proposition Value Proposition
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8 One 3M … building a new performance culture Customer- obsessed Best talent Clear performance expectations Relentless continuous improvement Safety, ethics and integrity at the core Incentives tied to priorities Speed and urgency Differentiated rewards … pay for performance Operating rigor Leadership expectations Be accountable • Champion safety, ethics and compliance • Take ownership for results • Execute flawlessly Be involved • Own the details • Act decisively with speed and urgency • Unwavering desire to win Be ambitious • Challenge status quo • Demand high standards • Refuse to lose
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9 Focusing on the fundamentals … Re-invigorate top-line growth Drive operational performance across the enterprise Effectively deploy capital 1 2 3 … applying basic principles to drive sustained performance
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10 Our growth mandate … Innovation Customer-back innovation Differentiated products Efficient and effective “R&D factory” Launches 5-year new product sales New Product Vitality Index Commercial Excellence Commercial management Channel effectiveness Customer loyalty • Best-in-class sales • Standard tools, processes • Optimized pricing • Cross-selling through distribution • Strategic innovation partners • Priority brands, focused ad- merch • World class service • Highly responsive • Ease of doing business TEBG SIBG CBG … gain share … expand addressable market
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… growing markets, differentiated technology, channel access 11 Focusing on priority verticals with a right to win … Macrotrends Priority verticals Miniaturization Sustainable materials Urbanization Climate change Automation Artificial Intelligence Electrification Digitalization Aerospace AR / VR Automotive Electronics Data centers Energy Home cleaning Home improvement Industrial automation Safety Semiconductors 3M Differentiators
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Systematically upgrading portfolio Surgically assessing ~120 profit centers 12 1… … ~120 Sales Gross Margin Sales Growth Selected Examples Invest in priority verticals • Higher growth / margin potential • Opportunity to differentiate via innovation • Clear right to win Harvest • Limited growth, acceptable margin • Run for cash • More significant entanglements Divest • Slower growth, lower margin, commodity • Limited right to win, worth more to others • Manageable entanglements
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Driving operational performance • Clear, consistent KPIs • Standard tools, processes, playbook • Data-driven, digital centric solutions • Rigorous and methodical tracking • Relentless continuous improvement Core Principles … everywhere … every day New Operating System R&D / Innovation HR FinanceLegal IT Commercial Enterprise Supply Chain 13
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14 Balanced capital deployment (2025 – 2027) • Fully fund growth initiatives − R&D ~$3.5B − Capex ~$3B • Reward owners − Dividends ~$5B − Repurchases ~$5B Organic growth Strong balance sheet Returns to shareholders • Shift towards higher growth verticals − Divestitures − Potential bolt-ons … over time Inorganic growth • Ample liquidity • Optionality (e.g. Solventum stake) • Solidly investment grade
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Reigniting 3M value creation 15 Outperform macro EPS accelerating to HSD % FCF >100% conversion Medium-term commitments 2025-2027 • 50% Cum. EPS • 50% Cum. FCF • TSR modifier vs. S&P Industrials Responsive to Investor Feedback ✓ 1 “3-year” vs. 3 “1-year" ✓ Simplified ✓ Clear alignment to shareholder value New LTIP • ~1,000 new product launches • ~$1B sales above macro • ~$1B supply chain net productivity • $10B+ to be returned to shareholders Key milestones Note: Presented on an adjusted basis
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16 Dr. John Banovetz Peter Gibbons Chris Goralski Wendy Bauer Karina Chavez Anurag Maheshwari Executive Vice President, Chief Technology Officer Group President, Enterprise Supply Chain Group President, Safety & Industrial Group President, Transportation & Electronics Group President, Consumer Chief Financial Officer Leadership team here today … … with a proven track record Best-in-class team to drive execution
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2025 Investor Day Dr. John Banovetz Chief Technology Officer
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18 3M is built upon solid foundational R&D capabilities Technical employees 4,000+ Advanced degrees 45% Research labs 40+ Active patents 21,000+ Technology Application expertise Customer access Manufacturing Japan Germany United States China Brazil
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19 Product development The application of technology for commercial use 2/3 spend DevelopmentResearch & 1/3 spend Technology development The application of science & engineering Our integrated R&D model sets us apart
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20 A strong culture powers our innovation Leveraging scientific talent at globally distributed labs Japan China Brazil Germany USA Global talent Tech Forum Self-directed, grassroots organization fostering idea sharing, creativity and collaboration Tech Council Global R&D leadership driving productivity and commercialization impact Collaboration 15% Time Expectation to spend time on self-directed innovation Financial support Self-nominated, tiered financial grants to support innovation Empowerment The Carlton Award The highest technical recognition, acknowledging that growth and innovation originate in the lab Recognition
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21 Industry firsts and new-to-the-world innovations Minnesota Mining and Manufacturing founded in Two Harbors, MN 1902 3M Three-M-ite Abrasive Cloth becomes 3M’s first exclusive product 1914 First masking tape and Scotch® brand product born as the result of a customer interaction 1925 3M Thinsulate Thermal Insulation invented 1979 The iconic Post-it® Note is born 1980 3M Privacy Computer Filters introduced 1990 3M issued its 100,000th patent 2014 3M Finesse-It Robotic Paint System commercialized 2021 New film enables OLED performance from LCD 2023 3M Cubitron II precision- shaped grain abrasives created 2009
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22 2024 forward Launches 5-year new product sales Product development 2018 - 2023 Growth catalysts Pivot to “fewer”, “bigger” approach Supply chain and PFAS replacement Health Care spin/restructuring • Shift spending to new product development • Implement rigorous governance • Target priority markets • Improve efficiency and processes Reigniting the innovation engine 169 ~$2.4B ~33% ~$7B ~35% 454
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Process improvements Align resources, tools and team Governance Strengthen enterprise accountability Efficiency gains Focus on core value-added activities Investment strategy Target priority markets 3 4 2 1 Free up team capacity Increase velocity of new product launches Improve effectiveness Accelerate commercialization 23
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24 Macrotrends • Artificial intelligence • Automation • Climate change • Digitalization • Electrification • Miniaturization • Sustainable materials • Urbanization Importance to 3M • Large, fast-growing • Accessible with 3M technology • Accelerated by materials science • Strong customer connection Target investments to highest value areas Priority Verticals (TAM = ~$300B+) Automotive Aerospace Augmented/Virtual Reality Energy Electronics Data centers Home cleaning Home improvement Industrial automation Safety Semiconductors Focus technology development into these priority markets
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25 Prior state Future state Corporate Research Lab CBG Portfolios SIBG Divisions Portfolios TEBG Divisions Portfolios Corporate Consistently prioritize NPI performance as a growth driver Allocate more resources to the best opportunities Increase leadership engagement throughout pipeline progression Tier accountability and decision-making Inconsistent focus on NPI as growth driver Decentralizedallocation of resources Limited escalation; typically, late in the development cycle Decisions pushed to lowest level of organization NPI flow Budget flow Strengthen enterprise NPI accountability
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26 Streamline standard work • Machine learning-aided scaleup • AI-enabled design optimization Accelerate innovation Improve customer connection • Simplify, automate repetitive tasks • Eliminate non-value-added work • Amplify value-add time with large language models • Bench-to-bench collaboration • Co-development programs • Partnerships and funded research Customer connection Operations Minimizing trial variability to scale up faster Breakdown of R&D time Today Future Other Value add Variability Trial Runs Manual trial AI-enabled trial Focus on core value-added activities
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27 Individual use case Broad application Virtual materials for customers AI-enhanced grain shape optimization Virtual materials using finite element analysis, modeling and simulation Automated product performance testing Data cards available internally and to customers Informatics and artificial intelligence accelerated scale up Rapidly iterate to match existing offerings for customer specs Stress analysis NEW 3M Precision-Shaped Grain Innovate faster with artificial intelligence
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28 Seamlessly integrating with manufacturing Reducing SKU cycle time AI-enhanced screening development & scale-up Actions Development Scale-upBuild business case Ideation & exploratory research Strategy & portfolio management Launch CoreCurrent state Future state 20% time-to-market reduction Drive process improvement in R&D factory Streamlining processes
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Measure progress Immediate pivot to growth from new products Capture growth in earnings and profitability over time New product launches 5-year New Product Sales New Product Vitality Index New product sales/total sales 2026E2024 2025E 2027E 169 ~$2.4B ~$3B ~10% ~12% ~$5B ~20% ~215 1,000 launches over 3 years 29
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30 Increased feature complexity Mechanical product applications Creation of nanoscale features Advanced optical properties 2030 and beyond Today 1990s (~$100B+ TAM) (~$60B TAM) Electronics Safety Simple microfeatures Optical & light management Electronics Data centers Industrial manufacturing Semiconductor Safety Augmented/virtual reality Data centers Electronics Safety Optical / thermal / acoustic applications Industrial manufacturing Semiconductor The 3M Innovation Model delivers: Microreplication Manufacturing surfaces with ultra-precise features to enable a broad range of products
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31 Innovation : creating a new standard Disciplined end-to-end development Performance management Continuous improvement mindset Customer-inspired solutions Technology differentiation Curiosity-driven talent Collaborative culture Agility at scale Innovation
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32 3M Innovation: the momentum is building Customer at our core
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2025 Investor Day Peter Gibbons Group President, Enterprise Supply Chain
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People ~43,000 Active plants 110 Distribution centers 88 Interplant lanes 1,000+ One of the most complex supply chains 34 Manufacturing technology Innovation Product diversity Channels & customers # Active plants as of February 2025
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35 Enterprise Supply Chain momentum 52% OEE up 400 bps 94 days Inventory Down 2 days 88% On time in full (OTIF) Improved 300 bps ~43% Gross margin 1.04 Recordable incident rate Improved 24%Up 160 bps New organizational model delivering results Focus on reducing recordable injuries Real time supply chain visibility improving service Improved execution lowering days of inventory Productivity focus across E2E operations improving gross margin Equipment effectiveness Note: Presented on an adjusted basis
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36 Unlocking value through operational excellence Gross margin High 40s Current Future Operational excellence Innovation Growth Innovation Note: Presented on an adjusted basis
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37 Supply Chain priorities 1 Productivity • $1B net productivity across $13B COGS 2 Service & Inventory • Build end-to-end execution • Reduce inventory • Deliver 95% OTIF 3 Capabilities • Strengthen bench • Build technical skills • Acquire tools & technology Multi-year journey to build capability Note: Presented on an adjusted basis
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38 Path to operational excellence Network improvement Network design Rewire supply chain Unit operations Plant/DC/supplier management Tactical capability Near term Localized opportunities End-to-end capability Longer term Strategic opportunities • Automation strategy • Supplier consolidation • Continuous improvement • Mode conversion • Footprint rationalization • Supplier network • LT capacity plan • Make/buy • Inventory optimization • Product platforming • Tier 2/3 supplier configuration • AI powered planning • 4PL logistics • Touchless order management • Kaizen events • Price negotiations • Automated work-centers • Start-up waste • Line/plant OEE • Supplier process improvements • Forecast accuracy • Load consolidation
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39 $13B+ COGS Future opportunities ~43% High 40s Logistics External manufacturing Internal manufacturing Cost of quality Gross margin improvement Medium-term opportunities Current Future Direct materials Productivity: improving gross margin Addressing opportunities across all categories of COGS Note: Presented on an adjusted basis Productivity plan $1B Net productivity
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40 Examples Multilayer film OEE Autonomous materials handling Knotted cord automation $125M potential saving from improving OEE across strategic assets 60% of moves automated, replacing 29 headcount (50% reduction) Automated process replacing 70 headcount (85% reduction) 61% 74% 2023 2024 Internal manufacturing External manufacturing Direct materials Cost of quality Logistics Internal manufacturing Overall equipment effectiveness (OEE) • Improved OEE 400bps to 52% • Target 75% OEE on >80% of strategic assets Automation • >80 projects in 2025, reducing 700 headcount • Standardizing automation solutions, faster replication Continuous improvement • Doubled kaizen events, delivering $80M/year • Advancing Continuous Improvement platform Potential of ~1,000 headcount reduction across 40 plants,
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41 Internal manufacturing External manufacturing Direct materials Cost of quality Logistics $100M+ potential through negotiation and consolidation 10-20% potential cost reduction across selected portfolios External manufacturing ~$150M opportunity Examples Power tools Paint preparation system Kitchen & bath tools Consolidated suppliers by 60%, and introduced new partner to deliver 50% savings on portfolio Simplified and light-weighted to deliver >20% savings Value engineered to reduce plastic in molded parts by 10-20% Supplier negotiation and consolidation • Packaging: 10-15% savings, supply base reduction of 30% • Injection Molding: Reducing global suppliers by >20%, realizing 10% savings Value engineering • 370 products analyzed, first wave in progress
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Internal manufacturing External manufacturing Direct materials Cost of quality Logistics Strategic sourcing • Completed 1,000+ discrete negotiations delivering >5% savings • Addressing $400M through ‘should cost’ analysis Direct materials ~$250M opportunity Supply base optimization • Low-cost suppliers in India, Egypt, Vietnam, etc. • Consolidating network to reduce # of suppliers • Introducing challengers to reduce costs Supplier relationships • Optimize product, service and lead times • Exit strategies for non-performing suppliers Examples Global silicones Tackifying resins PolyChem category 10% savings leveraging commodity trends and competitive bids New low-cost country supplier, delivering 20% savings versus three incumbents $5M savings through consolidating distributors 42 $150M potential from negotiation and consolidation
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43 Examples New Forming Drying Cutting Old Forming Drying Cutting Yield loss 12% to ~0% Internal manufacturing External manufacturing Direct materials Cost of quality Logistics Process Waste Design Waste Cost of quality ~$200M opportunity ~$100M potential across all process waste ~$50M potential across all design waste Process waste • Improving time to good output across 300k start ups per year on major assets • Piloted closed loop AI to reduce waste 16% → replicating across network Design waste • Reducing materials and process steps with new manufacturing technologies Quality defects & complaints • High-res microscoping eliminated defects in optical film, saving $2M Waste Catalytic converter mat Abrasive discs 30% reduction in raw material through new coating method
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lp0 44 Examples Optimized air to ocean modes Distribution center consolidation Travel distance inside Dekalb DC -10% -32% Before After -12% Internal manufacturing External manufacturing Direct materials Cost of quality Logistics Logistics ~$100M opportunity Transportation • Reduced road freight rates by 10-15% • Global rate bids, load consolidation, and mode conversion • Improving load and route planning Network • Rationalizing DC footprint and creating more efficient flows DC productivity • Industrial engineering to improve labor productivity and planning • Automation and Advanced analytics to reengineer operations $30M-$40M potential to improve DC productivity $30M potential to reduce airfreight Reduced travel distance for top SKUs Potential to close or re-size ~25 DCs
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45 Inventory (Days) In-flight improvement levers Forecasting End-to-end visibility Real-time decision making Supplier performance Building world class E2E execution 94 75 Demand Planning and S&OP Transportation Materials planning Distribution operations Manufacturing Order management Note: Presented on an adjusted basis Service & inventory: Building end-to-end execution capability 2024 Target 88% 95% Service (OTIF)
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46 Examples Forecasting • Increasing forecast accuracy with machine learning and redesigned forecast models End-to-end visibility • Control tower capability to tackle bottlenecks, shortages, delays, demand spikes Real time decision making • Inventory optimization from flexible production planning Supplier performance • Exit strategies for non-performing suppliers +12% 6% 3% 3% 2% +14% Service & inventory Transportation & Electronics Business group Forecast accuracy pilot Supplier OTIF Reduced lead times, improved supplier management Improved service and reduced inventory AI supported statistical models Tuning the forecast level Portfolio segmentation Demand planning playbook 90% OTIF Days Inventory 96 91 2024 2023 2024 2023 84% Note: Presented on an adjusted basis
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Build technical skills Acquire tools & technology Strengthen bench • Automation • Analytics/modelling • Value-engineering • AI planning tools • Process optimization • Real-time decision tools • External hiring • Fill talent gaps • 3M Supply Chain Academy 47 Capability: Future-focused talent and skill development
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48 Our commitments Note: Presented on an adjusted basis High 40s Gross margin 95% OTIF 75 Days of inventory Operational excellence Network improvement Network design Rewire supply chain Unit operations Plant/DC/supplier management Tactical capability Near term Localized opportunities End-to-end capability Longer term Strategic opportunities • Automation strategy • Supplier consolidation • Continuous improvement • Mode conversion • Footprint rationalization • Supplier network • LT capacity plan • Make/buy • Inventory optimization • Product platforming • Tier 2/3 supplier configuration • AI powered planning • 4PL logistics • Touchless order management • Kaizen events • Price negotiations • Automated work-centers • Start-up waste • Line/plant OEE • Supplier process improvements • Forecast accuracy • Load consolidation
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Chris Goralski Group President, Safety & Industrial 2025 Investor Day
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50 Transforming how work gets done Category leadership through best-in-class technology and brands Delivering increased productivity to our customers Enabled by commercial and operational excellence Sales in 2024 $11 billion Industrial Minerals 5% Industrial Adhesives & Tapes 19% Personal Safety 31% Industrial Specialties 10% Automotive Aftermarket 11% Abrasives 12% Electrical Markets 12% AMERICAS 59% EMEA 22% CHINA 8% ASIA 11% Direct General Industrial 10%50% 10%30% Specialized Industrial Converter Note: Estimated sales by channel / vertical
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51 Alignment to growth drivers will enable accelerated growth Evolving and advancing workplace safety standards Bonding solutions for advanced materials and designs Electrical and computing infrastructure investments New material solutions for automated manufacturing Capitalizing on attractive growth opportunities in large, diverse markets Growth Drivers Automotive Manufacturing Vehicle Repair Electronics Construction 65% of sales 10% of sales 10% of sales 5% of sales 5% of sales Utilities 5% of sales 2-4% mkt growth 2-4% mkt growth 2-4% mkt growth 1-3% mkt growth 4-6% mkt growth2-4% mkt growth Note: Estimated sales by channel / vertical
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52 Safety & Industrial momentum Improve supply chain service and quality levels Execute our R&D playbook to deliver more new products with greater impact Build a stronger commercial execution culture with robust performance management 23.1% 2024 Operating margin Up 110 bps YoY 64 New product launches +52% increase YoY +0.7% 2024 Organic growth 81% OTIF Up ~300 bps YoY Note: Presented on an adjusted basis Increase customer loyalty through stronger intelligence and account engagement ~2,900 Sales professionals
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53 Driving accelerated growth through our strategic priorities Innovation acceleration Commercial excellence Investing in resources Commercial management Improving cycle time Channel effectiveness Increasing on-time launch attainment Customer loyalty Abrasives#1High Performance Adhesives & Tapes #1Safety#1 Building off a strong foundation of category-leading products and technologies Our Brands
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Investments and operational excellence will enable greater impact from innovation 54 Increase development resources by 15% 2024 2027 550 Full-time employees 630 Full-time employees Reduce project cycle time by 25% 2024 2027 400 days 300 days Double on-time launch attainment 2024 2027 40% 75%+ Accelerating the number of new product launches over the next 3 years
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55 Reinventing categories through innovation and automation Efficient assembly Durable performance Cutting-edge design Automated bonding & sealing 3M VHB platform built on best-in-class technology and market leadership Conformable polyethylene foam backed with acrylic adhesive skins; sticks to a broad range of materials Creating a seamless facade with fast application of virtually invisible fastening for a permanent bond Die-cut for a precise fit within devices and when bonding back covers, lenses, and screens Robotically bond and seal car battery pack lids with irregular bond lines; seal out water, dust and debris Foam tape Industrial 3M VHB Acrylic Foam Tape Electronics 3M VHB Bonding Tape 3M VHB Extrudable Tape
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56 Driving visibility and rigor up, down, and across the organization Establishing a 3M-way of commercial Commercial management Channel effectiveness Customer loyalty • Align targets and incentives • Standardize operating rhythm • Optimize profit and volume through pricing excellence • Strengthen alignment through joint business planning • Maximize impact of channel incentive investments • Accelerate cross-selling opportunities • Improve customer service • Implement closed-loop customer care model • Leverage predictive analytics
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57 Cross-sell priorities Commercial Management 32 41 Pricing optimization Customer retention Pipeline health Standardization enables greater focus on winning in the market A consistent operating cadence with uniform performance management Redefine pricing governance to reduce leakage of pricing adjustments → small deals 60%+ Strategic pricing to optimize profitability and volume 62% 22% 9% 7% Less than $20k $20k-100k $200k+ $100k-200k
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Welding Paint application Coated abrasives 58 + + + Growing wallet share with greater focus on cross-selling Empowering the channel with end-user leads, training, and a compelling value proposition Launched in December 50+ prioritized product pairings $100M+ opportunity from 2025-2027 Finalized joint business plans with top partners Bonded abrasives Specialty masking Disposable respiratory
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59 Best in class service to increase customer loyalty Integrating retention into performance management and sales incentive structures Medium-sized customers represent largest revenue capture opportunity Closed-loop model Predictive analytics Improved service Proactively addressing root causes of erosion Annual erosion rate (%) Small Medium Large Average Leading peers Annual Erosion Value (100%) ~15% ~65% ~20%
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60 Our commitment Win by solving our customers’ biggest problems with our category- leading solutions Accelerate innovation by increasing new product launches and impact Build a world class commercial organization with stronger performance management and less complexity Drive operational excellence to fuel consistent growth Our commitment 2025-2027 Organic sales growth Outperform macro
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Wendy Bauer Group President, Transportation & Electronics 2025 Investor Day
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62 Sales in 2024 $7.4 billion Commercial Branding & Transportation 34% Advanced Materials 7% Automotive & Aerospace 26% Electronics 33% AMERICAS 36% EMEA 15% CHINA 23% ASIA 26% Outside of US SalesUS Sales ~70%~30% Note: Presented on an adjusted basis Taking on our customers’ toughest challenges – together. Industry-first innovations, trusted global manufacturer at scale Bench-to-bench with leading innovators, value-chain collaboration Commercial and operational excellence
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63 Note: Presented on an adjusted basis Transportation & Electronics momentum ~60% Priority vertical revenue MSD growth 23.2% 2024 Operating margin Up 220 bps YoY 69 New product launches +41% increase YoY +3.4% 2024 Organic growth 90% OTIF Up ~600 bps YoY Driving innovation from ideation to launch Advancing digital capabilities to accelerate Growing through broader portfolio adoption Generating demand and improving win rates Improving service and quality levels
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64 Our framework Accelerating growth and innovation with disciplined execution Innovation focused on industry trends and scalable solutions Clarity on priority vs. core verticals, aligned investments Effective customer and channel engagement Collaborative partnerships with leading innovators PortfolioVerticals Go-to-MarketCustomers
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65 Enabling personalized, more safe, sustainable mobility Automotive Advancing air mobility, space, and unmanned systems Aerospace Enabling a connected and intelligent sustainable world Data Center & Networks Connecting digital & physical with intelligent, immersive experiences Electronics Innovating high- performance, power-efficient specialized chips Semiconductor Our capabilities align Major industries demand material science innovation Commercial Vehicle Commercial BrandingGeneral IndustrialEnergy Transportation Safety Light management Adhesives including debonding/rebonding Abrasives Power-efficiency, thermal management Specialized filmsPerformance, specialty materials
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66 Portfolio: Focusing R&D on scalable, high-value solutions + = Technology Open House Bench-to-bench collaboration ~80% NPI aligned to Strategic Accounts Differentiated portfolio >40% NPI from Breakthrough Innovation ~80% NPI from Priority Verticals Innovation focus Auto Display/ Glazing Thermal Runaway Management Materials Semiconductor CMP Expanded Beam Optics Drag Reduction Film
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67 Empowering innovation in partnership with our customers Alex Ma BOE Varitronix Head of Purchasing “ It’s our honor to work with 3M … 3M is willing to share and co-develop with partners. Your ability to provide tailor made solutions allows us to meet unique product requirements. “
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68 Accelerating growth through automotive innovation Innovation & Growth ePowertrain Software-defined Architecture Body-in-White/Chassis + + + Existing solutions Bonding & Sealing Noise & Vibration Display Films EV Thermal & Cushioning Design & Functional Films
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Broadening our automotive solution portfolio Existing solutions Innovation & Growth What’s next Component bonding Thermal barriers EMI foils/fabrics Structural adhesives Sealing Battery cell bonding/debonding Optical technology Friction shims Display films Vent path coatings Sensor/LiDAR assembly Corrosion prevention ePowertrain Software-defined Architecture Body-in-White/ Chassis Innovating for our customers 69
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Automotive growth with existing and new technology 70 Existing solutions Expanding portfolio adoption with low PPV customers Breakthrough innovation Growing through portfolio innovation in collaboration with strategic customers PPV = revenue penetration per vehicle, across industry build units 21 PPV range today Potential PPV range ~5 years Customer average 1.5x Current customer average
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Driving performance through experience and excellence Toru Matsui Honda Vice President, Business Unit Officer “ What I value most about working with 3M is the variety of businesses in the company. Other suppliers’ … perspectives tend to be more limited. 3M has a lot of in-house labs, manufacturing, and capabilities to offer us – that is unique. “ 71
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72 Innovating with strategic semiconductor customers Innovation & Growth Advanced Packaging Chemical Mechanical Planarization + + Existing solutions Wafer Support Systems Chip Transport Solutions Chemical Mechanical Planarization (CMP) Conditioners
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Semiconductor portfolio solution highlights Existing solutions Innovation & Growth What’s next CMP pad conditioners Wafer support system Carrier & cover tapes Innovating for our customers CMP pads & components Low-loss dielectric materials Next-Gen pad conditioners Temporary bonding/debonding Substrate grinding & lapping Process protection Chemical Mechanical Planarization Advanced Packaging 73
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Semiconductor growth with existing and new technology 74 Expanding portfolio adoption with low $/MSI customers Breakthrough innovation Growing through portfolio innovation in collaboration with strategic customers 74 $/MSI range today 2x Current customer average Customer average Potential $/MSI range ~5 years MSI = millions of square inches of silicon Existing solutions 21
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Our commitment 75 Increasing investment in priority verticals Accelerating new product innovation Expanding innovation-focused partnerships Broadening channel collaboration Enhancing commercial and operational excellence 2025-2027 Organic sales growth Outperform macro Note: Presented on an adjusted basis
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Karina Chavez Group President, Consumer Business 2025 Investor Day
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Sales in 2024 $4.9 billion AMERICAS 77% EMEA 8% ASIA PACIFIC 15% Consumer Safety & Well-Being 22% Home Improvement 30% Packaging & Expressions 24% Home & Auto Care 24% All otherDirect to retail 15%85% Warehouse Clubs & Superstores 40% Home Centers & Hardware 30% Ecommerce 10% Office Supplies & Stationery Stores 10% Other 10% 77 Reinventing the everyday to make a world of difference Strengths: 3M technology, iconic brands and premium retail presence Grow through portfolio reinvention + demand generation + distribution Operational excellence Note: Estimated sales by channel/go to market model
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78 ~$130M Ad merch spend Up 10% YOY 18.9% 2024 Operating margin Up 90 bps YoY 36 New product launches -1.2% 2024 Organic growth 93% OTIF Up ~400bps YoYSequential improvement all of 24 with Q4 +1.2% Consumer momentum Brand leadership Simpler & more focused Cost reduction enables reinvestment in product, channel & brand Organic sales growth acceleration Above market growth in: Command , Mounting, Safety, Abrasives & Meguiar’s®
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Generating sustainable momentum Demand Generation: brand and digital Portfolio Reinvention: strengthening life cycle management Distribution & Channel: optimizing, strengthening, building Iconic brands 1 2 3 Growth Strategies Foundational Strengths 79 3M material science Retail presence
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1 80 Portfolio Reinvention: strengthening life cycle management Implementing a holistic process… … that runs at the speed of retail… … bringing innovation to delight consumers 1 Intro Growth Maturity Decline Sales Extension
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At Command , we transform everyday spaces into places you love. From a white strip and hook to designs that excite consumers. ~$600M Sales 81
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1 82 Modernizing Demand Generation: brand building & digital 2 Search Social Reviews Targeting 4 leading Brands… … engage consumers frequently … … with relevant content to drive from intent to purchase
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At Meguiar’s®, we exist to fuel passion for your ride. Generating demand through social media for accelerated ecommerce growth and share gain. ~$300M Sales 83
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1 84 Distribution & Channel: optimizing, strengthening & building 3 Achieve 95%+ service… … to strengthen retailer partnerships … and gain shelf presence and expand reach
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At Scotch-Brite®, we exist to brighten homes and lives. #1 Brand in scouring in key markets with opportunities to expand in different retail formats around the world Ab ~$800M Sales 85
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86 Reinventing our portfolio Modernizing demand generation Strengthening our distribution & channel Our commitment Deliver growth and margin improvement through strategic brand investments and operational excellence Driving growth by: + +2025-2027 Organic sales growth Perform at macro
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Anurag Maheshwari Chief Financial Officer 2025 Investor Day
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Consistent value creation 88 Financial priorities Profitable growth Robust free cash flow generation Balanced capital deployment Operationalizing performance
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89 Returned to profitable growth in 2024 $7.30 EPS Up 21% YoY $4.9B Free cash flow 111% conversion +1.2% Organic growth 21.4% Operating margin Up 280 bps YoY Return to top-line growth Benefits from restructuring actions Strong operational execution Robust free cash flow generation Returned $3.8 billion of cash to shareholders via dividends and share repurchases Note: Presented on an adjusted basis
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90 Medium-term outlook: 2025 – 2027 financials Outperformmacro … improvements in NPI, commercial excellence, and service Expand gross margin … ~100 bps annually Drive G&A efficiency to fund growth investments and mitigate stranded costs Generate strong free cash flow Note: Presented on an adjusted basis Organic sales growth Operating margin EPS Free cash flow Outperform macro ~100 bps up annually HSD annual growth >100% conversion +1.2% 21.4% $7.30 $4.9B 2% to 3% 130 to 190 bps expansion $7.60 to $7.90 ~100% conversion 2024 actual 2025 guidance 2026 and 2027 outlook Reiterating 2025 guidance
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Outperforming macro over the medium-term 91 1.4% 2.0% 1.2% 2-3% Outperform macro 2024 2025 2026 2027 Organic sales growth Macro Note: Presented on an adjusted basis Outperform macro Reinvigorating revenue growth ~$1 billion Accelerating organic sales growth: • Safety & Industrial: Outperform macro • Transportation & Electronics: Outperform macro • Consumer: Perform at macro Delivering innovation with scalable solutions Driving commercial excellence Improving service levels Assumed macro in-line with 2025
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~360 bps operating margin expansion 92 Operating margin improvement Investm ent Growth M argin Cash 21 Note: Presented on an adjusted basis Gross margin expansion … volume, productivity initiatives Improving G&A efficiency and effectiveness Metered investments to fund growth 21.4% ~25% 2024 Gross margin R&D and SG&A 2027 Volume Productivity Investments Stranded costs G&A productivity R&D, Sales investments Stranded costs
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Drive ~100 bps improvement annually Note: Presented on an adjusted basis 93 Gross margin expansion 1 Internal manufacturing Cost of quality Logistics Direct material / external manufacturing $13+ billion annual COGS ~$250M investments (~$80M per year metered) … to support hiring and talent training, quality improvements, value engineering, supplier qualification, demand planning, etc. ~$125M - Optimize modes of transport ~$175M - Reduce design and process waste ~$400M - Leverage strategic sourcing; optimize supply base; drive value engineering ~$300M - Streamline processes; drive automation; improve OEE; reduce overhead $1B net productivity opportunity
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G&A efficiency to fund growth investments and mitigate stranded costsNote: Presented on an adjusted basis 94 R&D and SalesG&A 2024 2027 Growth investments and G&A efficiency2 $3.2B $2.0B Growth investments: • Product development • Sales coverage • Priority verticals G&A efficiency: • IT spend • Indirect spend • Shared service centers G&A costs down Growth investments up R&D and Sales
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95 Generating strong free cash flow 2025 - 2027 FCF >100% free cash flow conversion Note: Presented on an adjusted basis 1 1 2 Focus on improvement in inventory days 2024 2027 Future 94 Low 80s Disciplined capex aligned to company priorities 2024 2027 Sustainability Maintenance Growth & Productivity up down down $1B $1B ➢ Tighten governance ➢ Improve business cases ➢ Competitive bids ➢ Improvement in execution 2 Cumulative earnings Net working capital Cumulative capex D&A FCF ~75
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1. Strong cash balance 2. Generate robust free cash after funding R&D and capex 3. High 30s dividend payout…grow with earnings 4. Significant balance sheet flexibility to deploy capital, including M&A 96 Balanced capital deployment Sources of cash ($billions) Deployment options Note: Free cash flow presented on an adjusted basis + + + + + ~$4.5 ~$2.5 TBD TBD TBD Cash in excess of WC needs Free cash flow Solventum monetization (current valuation) Balance sheet leverage Insurance recoveries Divestitures $13.5 - $14 Dividends and share repurchases Combat arms and PWS legal settlements Other capital deployment, including M&A $10+ ~$8.5 TBD
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Financial outcomes Operating framework Innovation driven growth Cost productivity Commercial excellence Cash flow generation Supply chain G&A efficiency Disciplined capex NPI launches NPI $ OTIF Erosion 97 Operationalizing performance Inventory days Note: Presented on an adjusted basis Outperform macro Organic sales growth ~25% Operating margin by 2027 HSD 2026 and 2027 EPS growth >100% FCF Conversion
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98 Why invest today? Applying basic principles to drive sustained top-line growth Simplified structure with a strong team and aligned incentives Leader in innovation Balanced capital deployment underpinned by strong balance sheet and cash flow generation Implementing 3M Excellence operating system Systematically upgrading portfolio