Safety & Graphics Business Group › 834031268 › files › doc_events ›...

Safety & Graphics Business GroupFrank Little

Executive Vice President

3M Investor Day

March 29, 2016

3. All Rights Reserved.28 March 2016© 3M

reputation/image of our customers2015 Sales $5.5 billion; Operating Income Margin of 23.7%

Improving the safety & security of infrastructure

$1.3B

Advancing worker safety,

security & productivity

$2.4B

Personal Safety

Traffic Safety & Security

Enhancing

commercial

productivity &

brand experience

$1.5B

Commercial Solutions

Safety and Graphics Business Group

Increasing value from every ton

we mine

$0.3B

Industrial Minerals


Our strategic intentAddressing key long-term megatrends facing our customers

Advancing Safety & Security to Protect LivesAs economies develop, safety becomes a stronger priority

Enhancing our Customers’ Brand EquityWith an evolving culture of instant feedback, brands win by delivering compelling experiences

Improving our Customers’ CompetitivenessIn a world with resource and budget constraints, sustainable and productive solutions are critical


Evolving safety regulation represents a major opportunitySupporting standards development and delivering expertise across the globe

Traffic Infrastructure:1M deaths annuallyWHO

U.S. Construction:37% fall related deathsOSHA

Public Security:81% increase in terror related deaths in ’14 U.S. Dept. of State

Hearing Safety:120M exposed to dangerous levelsGlobal Industry Analysts, Inc.

Strong

Improving

Weak/Emerging

Standards & Enforcement

Respiratory Protection:7M deaths from air pollution exposure in ’12 WHO.


Our playbook is working

Investing in Innovation

Portfolio Management

Business Transformation


Investing in Innovation Business TransformationPortfolio Management

Driving efficient growth through three levers


Integrated multiple businesses

Strengthening our portfolio of attractive businessesR

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Relative Shareholder Attractiveness

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9 Businesses in 2012…

Sales $5.4B

OI 22.4%

Sales $5.5B

OI 23.7%

…4 Businesses in 2015

Acquired Capital Safety Business

Divested license plate converting & Library Systems businesses

Increases our scale andrelevance to customers

Flattens organization to drive speed and agility

Drives dynamic resource allocation

Focuses investment to build industry leading depth

Bubble size represents total revenue of entity

Relative Shareholder Attractiveness


Technology Manufacturing Global Capabilities Brand

Positioned to win in Personal SafetyDelivering industry-leading depth and profitable growth across key market segments

Capital Safety/Fall Protection

Aearo/Hearing

Protection

Personal Safety


4-6% CAGR

3-5% CAGR2-4% CAGR 3-4% CAGR

Positioned to win in Personal SafetyDelivering industry-leading depth and profitable growth across key market segments

% represents 5-year nominal CAGR outlook

1-3% CAGR

1-4% CAGR 2-4% CAGR1-4% CAGR

Agriculture Pharma ConstructionUtilitiesManufacturing Mining Transportation Oil & GasPersonal

Safety


Market size $33B


Capital Safety – integration updateBuilding on our winning strengths

Integration on-track and meeting profit expectations

Building sales synergies across our global footprint

Expanding our portfolio reach across new market verticals

Integrating manufacturing operations in critical geographies

Achieving R&D leverage and scale globally


Positioned to win in Commercial SolutionsDelivering brand experience and growing with expanded relevance

GraphicsMarkets

Cleaning & Workplace Solutions

Architectural Markets



Positioned to win in Commercial SolutionsDelivering brand experience and growing with expanded relevance

Retail Hospitality Food Service Transportation Banking Commercial Building


Market size $20B

CommercialSolutions

3-6% CAGR 2-4% CAGR

3-5% CAGR 3-5% CAGR


Market size $27B

2-4% CAGR 2-4% CAGR


Positioned to win in Traffic Safety and SecurityGrowing the core and improving profitability

Traffic Safety

Systems

Security Systems

Track & Trace



2-3% CAGR

Positioned to win in Traffic Safety and SecurityGrowing the core and improving profitability


Public Security Intelligent SystemsTransportationTraffic Infrastructure

Market size $20B

Traffic Safety & Security

4-6% CAGR

2-4% CAGR 3-5% CAGR


Market size $20B


Commercial Solutions

Personal Safety

Utilizing 3M technology platforms across our businessesProviding unique solutions to our customer

Systems & Hard Goods

Tapes & Films

FiFilms

MrMicro-replication

AdAdhesives

VpVapor Processing

LmLight Management

IsIntegrated Systems & Design

ImImaging

MoMolding

EsElectronics & Software

Non-Woven Materials

NwNonwoven Materials

NtNano-technology

FsFiltration, Separation, Purification

MoMolding

Cleaning pads

Graphics films

Reflective sheeting

Biometrics & monitoring

Digitally connected safety gear

Granulecoatings

Scotchlite™

reflective

Respirators

Intelligent traffic management

Traffic Safety& Security

IndustrialMinerals

Granuleadhesion


Superior fit and features

Revolutionary weight distribution system

Improves comfort with greater airflow

Game changing innovation in Personal Safety

Enables automated and remote monitoring

Increases workforce productivity

Manages equipment usage, maintenance and worker data

Dual ear protection validation system

Enhances worker hearing protection

Records attenuation response levels with speed and accuracy

Emerging segment growing at 25% $600M segment growing at 2-4% $1.5B segment growing at 3-5%

ExoFit STRATA™ Harness Digitally Connected PersonalProtection Equipment

E-A-Rfit™ Validation System



Delivers extensive on-trend designs

Mix & match films with over-laminates

Creates new effects

Game changing innovation in Commercial Solutions

Comprehensive floor care solution

Enhances natural stone appearance

Greatly improves durability and shine

World’s first non-PVC wrap film creates a sustainable solution

Delivers high performance, with easier and faster installation


$1B segment growing at 3-5% $1B segment growing at 3-5% Premium segment growing at 10%

Advanced Car Wrap Films 3M™ Envision™ Wrap Films Stone Floor Protection System


Enabling connected vehicles infrastructure with enhanced materials

Building solutions to eliminate accidents and deaths

Game changing innovation in Traffic Safety & Security

Delivering fast, flexible and inventory-efficient sign production capability

Uses 3M sheeting and matched components

Creating fast, hygienic, and high-resolution fingerprint scanning

Increasing throughput and productivity

Intelligent Traffic Materials Digital Printing Revolution Touchless Fingerprint Scanning


Productivity segment growing at 8% $2B segment growing at 3-5% Emerging segment growing at 7%


Increased Black Belt investment

Delivered additional $50M savings

Lean Six Sigma

Increasing competitive scale and efficiencyUsing Business Transformation-driven processes and tools

Improved scale and leverage

Strengthened portfolio mix

Consolidation

Organizational Productivity

22.0%

22.6%

23.7%

2013 2014 2015

Operating Income Margin

Integrated business structure

Delivered $40M in SG&A savings

Lean manufacturing adoption

Value stream methodology

Lean Six Sigma

Footprint optimization & COE utilization

Service level improvement

Supply Chain Operations

Organizational Productivity

Global processes and service centers

Business services consolidation

Early successes Moving forward


Safety & Graphics delivers 3M’s Vision to our customersBringing the 3M Vision to life

3M Products Enhancing Every Home

3MInnovation Improving Every Life

3MTechnology Advancing

Every Company

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