3M Investor_Overview 2023 - general strategic update meeting with analysts.pdf

This overviews includes data facts on 2023, strategic directions of 3M and main goals for Business, Innovation, Inclusion and Sustainability

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Investor Overview

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Forward-looking statements
Thispresentationcontainsforward-lookinginformationabout3M’sfinancialresultsandestimatesandbusinessprospectsthatinvolvesubstantialrisksanduncertainties.Youcan
identifythesestatementsbytheuseofwordssuchas“anticipate,”“estimate,”“expect,”“aim,”“project,”“intend,”“plan,”“believe,”“will,”“should,”“could,”“target,”“forecast”and
otherwordsandtermsofsimilarmeaninginconnectionwithanydiscussionoffutureoperatingorfinancialperformanceorbusinessplansorprospects.Amongthefactorsthatcould
causeactualresultstodiffermateriallyarethefollowing:(1)worldwideeconomic,political,regulatory,internationaltrade,geopolitical,capitalmarketsandotherexternalconditions
andotherfactorsbeyondtheCompany’scontrol,includinginflation,recession,militaryconflicts,naturalandotherdisastersorclimatechangeaffectingtheoperationsofthe
Companyoritscustomersandsuppliers;(2)risksrelatedtounexpectedeventssuchasthepublichealthcrisesassociatedwiththecoronavirus(COVID-19)globalpandemic;(3)
foreigncurrencyexchangeratesandfluctuationsinthoserates;(4)risksrelatedtocertainfluorochemicals,includingliabilitiesrelatedtoclaims,lawsuits,andgovernmentregulatory
proceedingsconcerningvariousPFAS-relatedproductsandchemistries,aswellasrisksrelatedtotheCompany’splanstoexitPFASmanufacturinganddiscontinueuseofPFAS
acrossitsproductportfolio;(5)legalproceedings,includingsignificantdevelopmentsthatcouldoccurinthelegalandregulatoryproceedingsdescribedintheCompany’sAnnual
ReportonForm10-KfortheyearendedDec.31,2022andanysubsequentquarterlyreportsonForm10-Q(the“Reports”);(6)competitiveconditionsandcustomerpreferences;(7)
thetimingandmarketacceptanceofnewproductandserviceofferings;(8)theavailabilityandcostofpurchasedcomponents,compounds,rawmaterialsandenergydueto
shortages,increaseddemandandwages,supplychaininterruptions,ornaturalorotherdisasters;(9)unanticipatedproblemsordelayswiththephasedimplementationofaglobal
enterpriseresourceplanning(ERP)system,orsecuritybreachesandotherdisruptionstotheCompany’sinformationtechnologyinfrastructure;(10)theimpactofacquisitions,
strategicalliances,divestitures,andotherstrategiceventsresultingfromportfoliomanagementactionsandotherevolvingbusinessstrategies;(11)operationalexecution,including
theextenttowhichtheCompanycanrealizethebenefitsofplannedproductivityimprovements,aswellastheimpactoforganizationalrestructuringactivities;(12)financialmarket
risksthatmayaffecttheCompany’sfundingobligationsunderdefinedbenefitpensionandpostretirementplans;(13)theCompany’screditratingsanditscostofcapital;(14)tax-
relatedexternalconditions,includingchangesintaxrates,lawsorregulations;(15)mattersrelatingtotheproposedspin-offoftheCompany’sHealthCarebusiness,includingwhether
thetransactionwillbecompleted,orifcompleted,willbeontheexpectedterms;theriskthattheexpectedbenefitswillnotberealized;theriskthatthecostsordis-synergieswill
exceedtheanticipatedamounts;theabilitytosatisfythevariousclosingconditions;potentialbusinessdisruption;thediversionofmanagementtime;theimpactofthetransaction(or
itspendency)ontheCompany’sabilitytoretaintalent;potentialimpactsontheCompany’srelationshipswithitscustomers,suppliers,employees,regulatorsandothercounterparties;
theabilitytorealizethedesiredtaxtreatment(includingwhetheranInternalRevenueServiceprivateletterrulingwillbesoughtorobtained);theriskthatanyconsentsorapprovals
requiredwillnotbeobtained;risksassociatedwithfinancingsthatmaybeundertakenandindebtednessthatmaybeincurredinconnectionwiththetransaction;and(16)matters
relatingtothevoluntarychapter11proceedingsoftheCompany’ssubsidiaryAearoTechnologiesandcertainofitsaffiliates.Changesinsuchassumptionsorfactorscouldproduce
significantlydifferentresults.AfurtherdescriptionofthesefactorsislocatedintheReportsunder“CautionaryNoteConcerningFactorsThatMayAffectFutureResults”and“Risk
Factors”inPartI,Items1and1A(AnnualReport)andinPartI,Item2andPartII,Item1A(QuarterlyReports).TheCompanyassumesnoobligationtoupdateanyforward-looking
statementsdiscussedhereinasaresultofnewinformationorfutureeventsordevelopments.

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Unlock the power of people, ideas, and
science to reimagine what’s possible
Connecting purpose to performance

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Our commitments
Growth through innovation
Grow above macro
Proactive portfolio management
Increase value to customers and shareholders
Operational excellence
Deliver on financial commitments
Lead in sustainability as a manufacturer
Achieve ESG goals through science

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2019 Business Financials –February 5, 2019© 3M 2023. All Rights Reserved.
Powered by market-leading businesses
2022 sales
Safety &
Industrial
Transportation &
Electronics
Health Care Consumer
$11.6B $8.9B
($7.6B on adjusted basis*)
$8.4B $5.3B
Reflects Q1 2023 changes in measure of segment operating performance, segment composition, and non-GAAP measures. See Form 8-K dated Feb. 21, 2023, for details.
* Non-GAAP measure—see Form 8-K dated Feb. 21, 2023, for details.

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Our strategic
priorities:
1
Portfolio
management
2
Transforming 3M
operating model
3
Growth through
innovation
4
People
and culture

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Repositioning tohigher growth markets where we can create
differentiated value by utilizing our fundamental strengths:
Invest
Invest organically in attractive,
growing market segments
Reallocate
Prioritize and deploy capital and
resources to most attractive opportunities
Optimize business models
Maximizing value across our portfolio
Acquire
Reposition portfolio to attractive markets
toleverage the 3M OperatingModel
Divest
Drive fit and focus while unlocking
value for customers and shareholders

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Our Operating Model is powered by four fundamental strengths:
Technology
Ability to share and combine
elements of 3M’s broad
technology portfolio to produce
unique, differentiated products,
translating to premium margins
Manufacturing
Utilization of 3M manufacturing
footprint and technology,
including process trade secrets,
leading to higher-performing
products and lower unit costs
Global capabilities
Subsidiary front-and back-
office footprint that allows for
the effective development,
adaptation and
commercialization of products
Brand
Brand equity in the 3M
brand and in strategic
brands that are shared
across business groups

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© 3M 2023. All Rights Reserved. 3M Annual Shareholder Meeting –May 9, 2023.
Our leadership and expertise in material science innovation drives
near and long-term growth opportunities
Existing Platforms:
Automotive
Electrification
Safety
Home
Improvement
Consumer
Electronics+
Emerging/New Platforms:
Climate Tech
Sustainable
Packaging
Industrial
Automation
Semiconductor &
Data Center

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Advancing the
digitization of 3M
Digital Enterprise
Improve corporate
functional efficiency
Digital Customer
Digital customer intimacy and
seamless customer experience
Digital Operations
Digital process and data expertise to
reduce cost and improve effectiveness
Digital Products
New digital business models on top
of existing product and service

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Enabling our people to be at their best
Powering inclusion and committing
to a more diverse and equitable future
•Advancing equity commitments in each
business group
•Combining the best of virtual & in-person
work, introducing ‘Work Your Way’
•Investing $50 million in our communities,
with a focus on expanding STEM education
•Doubling the number of employees from
underrepresented groups

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Accelerating our environmental commitments
Planning to invest $1 billion over 20 years
2022
10%
water
reduction
2023
Install purification
technology at
largest water-
using locations
2024
Returninghigher
quality water to the
environment after
use in operations
2025
20% water reduction
Reduce dependence
on virgin fossil-based
plastic by 125M lbs.
2030
25% water
reduction at
our facilities
50% carbon
reduction
2040
80%
carbon
reduction
2050
Carbon
neutral

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2023 Investor Overview –© 3M 2023. All Rights Reserved.
Dividend History
Dividends of $5.96/share in 2022
Over $10B in dividends paid to
shareholders over last 3 years
64 years
Consecutive annual increases
100+ years
Paid dividends without interruption