3m Company · NYSE:MMM
3m — Q2 2024 Earnings Presentation
18 slides from 3m's earnings presentation, Jul 26, 2024
Slide 1: 2024 Second Quarter Earnings
2024 Second Quarter Earnings (unaudited) Bill Brown Monish Patolawala Bruce Jermeland Chief Executive Officer President and Chief Senior Vice President, Financial Officer Investor Relations
Slide 2: Forward-looking statements
2 Forward-looking statements This presentation contains forward-looking statements. You can identify these statements by the use of words such as “plan,” “expect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” “would,” “forecast” and other word
Slide 3: Solid Q2 results, significant opportunities ahead
3 Solid Q2 results, significant opportunities ahead Q2 results: Priority areas of focus: • Adjusted sales of $6.0B, with • Reinvigorate R&D, accelerate new product introductions organic growth up 1.2% YoY Organic growth • Improve execution at customer interface • Adjusted EPS of $1.93, up 39% YoY •
Slide 4: Q2 results driven by operational execution
4 Q2 results driven by operational execution • Adj. organic growth of 1.2%, includes 1.2 ppt YoY headwind from product portfolio Adjusted Sales initiatives and exit of small countries of $6.0B • Strength in electronics, industrial end-markets mixed, consumer retail discretionary spending remained so
Slide 5: Q2 2024 operating margin and EPS
5 Q2 2024 operating margin and EPS Adjusted Adjusted operating earnings margin per share Q2 YoY commentary Q2 2023 17.2% $1.39 Total organic growth/ +1.6% +$0.18 productivity/other Organic growth/ +3.1% +$0.31 • Benefits from volume growth, productivity, spending discipline, and restructuring produc
Slide 6: Q2 2024 cash flow and balance sheet
6 Q2 2024 cash flow and balance sheet Adjusted free cash flow Adjusted free cash flow Cash returned to conversion shareholders $1.2B 109% $0.8B $0.4B dividend $0.4B share repurchase Net debt of ~$3B 2024 Q2 Earnings | July 26, 2024. All rights reserved.
Slide 7: Safety & Industrial
7 Safety & Industrial Q2 2024 commentary • Organic growth performance: – Mid-single digit increase in industrial adhesives and tapes Organic growth – Low-single digit increases in personal safety, automotive aftermarket; electrical markets and roofing granules were flat 1.1% – Low-single digit decli
Slide 8: Transportation & Electronics
8 Transportation & Electronics Q2 2024 commentary • Adjusted organic growth performance – Low-double digit increase in electronics Adjusted organic growth – Mid-single digit increase in advanced materials – Low-single digit decline in automotive and aerospace, and commercial 3.3% branding and transp
Slide 9: Consumer
9 Consumer Q2 2024 commentary • Organic growth performance – Mid-single digit growth in home improvement; low-single digit growth in consumer safety and well-being Organic growth – Low-single digit decline in packaging and expression; mid-single digit decline in home and auto care -1.4% Includes ~(2
Slide 10: 2024 full-year earnings guidance
10 2024 full-year earnings guidance Prior Current 2024 guidance 2024 guidance Adjusted organic Flat to +2% Flat to +2% sales growth (Includes ~100+ bps headwind from portfolio/geographic prioritization) (Includes ~100+ bps headwind from portfolio/geographic prioritization) Adjusted +200 to 275 bps +
Slide 11: Q&A
Bill Brown Monish Patolawala Bruce Jermeland Q&A Chief Executive Officer President and Chief Financial Officer Senior Vice President, Investor Relations 2024 Q2 Earnings | July 26, 2024. All rights reserved.
Slide 12: Appendix
Appendix 2024 Q2 Earnings | July 26, 2024. All rights reserved.
Slide 13: Q2 2024 P&L
13 Q2 2024 P&L Q2 Q2 GAAP ($M), except per share amounts 2024 2023 Change Sales $6,255 $6,283 (0.5)% Gross profit $2,684 $2,555 5.0% % to sales 42.9% 40.7% 2.2% SG&A $1,132 $11,615 (90.3)% % to sales 18.1% 184.9% (166.8)% R&D & related $280 $298 (5.9)% % to sales 4.5% 4.7% (0.2)% Operating income (l
Slide 14: Q2 2024 adjusted sales recap
14 Q2 2024 adjusted sales recap Americas EMEA APAC Worldwide Organic growth 1.0 % (2.0) % 3.6 % 1.2 % Acquisitions/divestitures 2.1 % 0.2 % 0.3 % 1.3 % FX (0.2) % (0.8) % (3.9) % (1.4) % Total growth 2.9 % (2.6) % —% 1.1 % 2024 Q2 Earnings | July 26, 2024. All rights reserved.
Slide 15: Q2 2024 business segment information
15 Q2 2024 business segment information Adjusted net Adjusted operating income Adjusted operating ($M) sales* Q2 2024 adjusted sales growth* (loss)* margin* Total Q2 Q2 Organic sales Q2 Q2 Percent Q2 Q2 Business Groups 2024 2023 growth FX M&A change 2024 2023 change 2024 2023 Safety & Industrial $2,
Slide 16: Additional GAAP sales detail
16 Additional GAAP sales detail ($M) GAAP Net Sales Business Groups Q2 2024 Q2 2023 Abrasives 324 334 Automotive Aftermarket 304 305 Electrical Markets 325 329 Industrial Adhesives and Tapes 531 517 Industrial Specialties 285 298 Personal Safety 857 849 Roofing Granules 133 133 Total Safety & Indust
Slide 17: Historical periods restated on a continuing operations adjusted basis
17 Historical periods restated on a continuing operations adjusted basis (non-GAAP measures) Earnings per Net income from share from continuing continuing ($M, except per share Operating Operating income Effective tax operations operations — amounts) Net sales income margin rate attributable to 3M d
Slide 18: Science. Applied to Life.
Science. Applied to Life.”