Solventum Corporation · NYSE:SOLV
Solventum — Investor Day (March 2025)
98 slides from Solventum's investor day presentation, Mar 20, 2025
Slide 1: 2025 Investor Day
2025 Investor Day We never stop solving for you.
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures This presentation and other materials Solventum has filed or will file with the SEC (and oral communications that Solventum may make) contain or incorporate by reference statements that relate to future events and expectations and, as such,
Slide 3: Agenda & Speakers
Agenda & Speakers Time Focus Speakers 12:00 PM Investor Day Registration Opens, Light Snacks 1:00 PM Welcome & Opening Remarks Amy Wakeham SVP, Investor Relations & External Finance Communications Solventum Strategic Plan Bryan Hanson Chief Executive Officer Deep Dive: Medical Surgical Chris Barry E
Slide 4: Bryan Hanson
Bryan Hanson Chief Executive Officer
Slide 5: Who we are – Solventum on a page
Who we are – Solventum on a page Values Strategic pillars Put people first Be a best & preferred Mission place to work Win with excellence Enabling better, Solve what matters smarter, safer Be a trusted partner healthcare to Advance together improve lives Be a top quartile Live with heart performer
Slide 6: Solventum value creation formula
Solventum value creation formula Attractive set up diverse businesses, attractive markets and strong brands Foundational + enhancements mission, talent, culture, innovation engine (commercial and R&D) market selection and growth drivers – enable sales growth, + Strategic clarity margin expansion and
Slide 7: Solventum value creation formula
Solventum value creation formula Attractive set up diverse businesses, attractive markets and strong brands Foundational + enhancements mission, talent, culture, innovation engine (commercial and R&D) market selection and growth drivers – enable sales growth, + Strategic clarity margin expansion and
Slide 8: Attractive set up: strong product, customer and geographic diversification
Attractive set up: strong product, customer and geographic diversification Creating innovative solutions that touch millions of lives, transform Trusted brands the patient experience and save time for healthcare professionals 20K MedSurg Dental Solutions International US employees2 64% 18% 40% 60% D
Slide 9: Attractive set up: the right building blocks
Attractive set up: the right building blocks v Diverse and Trusted and Global commercial growing markets recognized brands scale and reach Market size1 Market growth1, 2 • Revenue diversification across Medical our segments Surgical ~$31B 4-5% • 100,000+ customers and channel partners globally in 90
Slide 10: Solventum value creation formula
Solventum value creation formula Attractive set up diverse businesses, attractive markets and strong brands Foundational + enhancements mission, talent, culture, innovation engine (commercial and R&D) market selection and growth drivers – enable sales growth, + Strategic clarity margin expansion and
Slide 11: Foundational enhancements needed to reverse pre-spin multi-year volume growth declines
Foundational enhancements needed to reverse pre-spin multi-year volume growth declines Six Consecutive Years of Volume Growth Declines Seven Consecutive Quarters of Negative Volume Growth Volume Impact Volume Impact 4.0% 4.0% 2.8% Separation 3.0% 3.0% Separation 2.6% 2yr COVID avg from 3M from 3M 2.
Slide 12: Foundational enhancements driving year 1 achievements
Foundational enhancements driving year 1 achievements Creating the foundation for the next phase Reversed 6 years of Exceeded financial Global talent and $120M savings declining volume commitments in 2024 culture overhaul Global restructuring – trend and 7 quarters Solventum Way of negative volume g
Slide 13: Foundational enhancements set up attractive long-range plan
Foundational enhancements ~300bps set up attractive increase in Attractive margin long-range plan growth rate enhancement vs 2023 Significantly Double-digit improved cash EPS CAGR conversion 2025 Investor Day 13
Slide 14: Foundational enhancements start with our phased approach to transform the business
Foundational enhancements start with our phased approach to transform the business Business Mission Talent Culture Strategy Execution philosophy Phase 1 Capture hearts and minds and stabilize the business Phase 2 Enhance strategic focus Phase 3 Portfolio optimization 2025 Investor Day 14
Slide 15: Foundational enhancements through phase one actions
Foundational enhancements through phase one actions Phase 1 Capture hearts and minds and stabilize the business Phase 2 Enhance strategic focus Phase 3 Portfolio optimization Defined mission and Introduced new Stabilized the business: Executing separation established winning talent and capabilities
Slide 16: Defined mission and established winning culture
Phase 1 Defined mission and established winning culture Starting point Actions taken • Limited identity • New mission-driven culture to improve lives: one • Centralized, slow, Solventum mindset, 100 events in 39 countries lacking decision rights and • Implemented global restructuring via Solventum W
Slide 17: Introduced new talent and capabilities
Phase 1 Introduced new talent and capabilities Starting point Actions taken • Talent and • 85% of leadership team new to the company with capability gaps sector and transformation experience • 60% of VP+ level positions are new to company • 40% of positions designated as critical-to- transformation
Slide 18: Stabilized the business – enhanced focus and alignment
Phase 1 Stabilized the business – enhanced focus and alignment Starting point Actions taken • Lack of • Discontinued leadership rotations to ensure continuity strategic clarity, of strategy rotating leaders • Data-centric strategic plan with focus on revenue and • Lack of margin drivers decision rig
Slide 19: Stabilized the business – strengthened commercial productivity
Phase 1 Stabilized the business – strengthened commercial productivity Starting point Actions taken • Capability and • Added significant talent capabilities driving urgent and culture gaps accountable culture – approximately 40% of AVP+ • Sales incentives not commercial function roles are new to the
Slide 20: Stabilized the business – refreshed innovation process
Phase 1 Stabilized the business – refreshed innovation process Starting point Actions taken • Key functions not • Restructured corporate R&D, medical affairs and aligned to business corporate marketing to align to businesses • Lack of material • Vetting existing NPI for value – canceling or keeping
Slide 21: Executing separation activities – plan on schedule
Phase 1 Executing separation activities – plan on schedule Starting point Actions taken • All key-to-separation functions have previous spin • Highly entangled, experience – Finance, Operations, IT, Regulatory, Legal complex separation • Separation activities on track: • High debt level • Exited 25%
Slide 22: Solventum value creation formula
Solventum value creation formula Attractive set up diverse businesses, attractive markets and strong brands Foundational + enhancements mission, talent, culture, innovation engine (commercial and R&D) market selection and growth drivers – enable sales growth, + Strategic clarity margin expansion and
Slide 23: Strategic clarity – driven by phase two of our transformation
Strategic clarity – driven by phase two of our transformation Phase 1 Capture hearts and minds and stabilize the business Phase 2 Enhance strategic focus Phase 3 Portfolio optimization Established clear strategic Primary market selection and resulting growth drivers plan to drive revenue with biased
Slide 24: Primary market and growth driver selection process
Phase 2 Primary market and growth driver selection process Mission ≥$1B ≥5% Path to leadership ≥current gross margin centric market size market growth segment position Any category can become a Bias our resourcing to growth driver through organic growth drivers or inorganic strategies 2025 Investor
Slide 25: 80% of revenue growth from five growth drivers; enhanced by inorganic opportunities
Phase 2 80% of revenue growth from five growth drivers; enhanced by inorganic opportunities Organic Accelerate 1 Negative Pressure Wound Therapy revenue growth 2 IV Site Management 3 Sterilization Assurance 4 Core Restoratives 5 Revenue Cycle Management Inorganic / M&A 2025 Investor Day 25
Slide 26: Consistent approach to framing our growth drivers (HBBS)
Phase 2 Consistent approach to framing our growth drivers (HBBS) Heart Ensure that our growth drivers move our mission forward, by helping to improve lives and reduce the cost of care Brain Barriers Solutions Ensure that the segment(s) Ensure we understand Ensure we use our we are choosing are large
Slide 27: Solution vectors to improve lives and accelerate sales growth in our strategic plan
Phase 2 Solution vectors to improve lives and accelerate sales growth in our strategic plan Pre-portfolio optimization 2024 2025 2026 2027 2028+ Commercial productivity & existing NPI Reload NPI – growth drivers Tuck-in M&A 2025 Investor Day 27
Slide 28: Solution vectors to improve lives and accelerate sales growth in our strategic plan
Phase 2 Solution vectors to improve lives and accelerate sales growth in our strategic plan With portfolio optimization 2024 2025 2026 2027 2028+ Commercial productivity & existing NPI Tuck-in M&A Reload NPI – growth drivers M&A accelerated by P&F divestiture 2025 Investor Day 28
Slide 29: 80% of revenue growth from five growth drivers
80% of revenue growth from five growth drivers MedSurg Dental HIS Negative IV Site Sterilization Core Revenue Cycle Pressure Management Assurance Restoratives Management Wound Therapy 2025 Investor Day 29
Slide 30: Chris Barry
Chris Barry Executive Vice President and Group President, Medical Surgical
Slide 31: Medical Surgical (MedSurg) at a glance
Medical Surgical (MedSurg) at a glance Provides advanced wound care, infection prevention and surgical supplies that are intended to accelerate healing, prevent complications and lower the total cost of care globally Advanced International Wound Care 43% Served by 5,800 employees $4.6B Revenue by 20
Slide 32: Medical Surgical overview
Medical Surgical overview Category-leading positions Go-to-market model and customers • Strong clinical evidence across the portfolio Primarily direct sales organization calling on: • Leader in advanced wound care Public and private Long-term care facilities health systems • First-to-market with neg
Slide 33: Medical Surgical priorities
Medical Surgical priorities Phased approach that clearly defines our pathway to market leadership Phase 1 Phase Phase22 Phase 3 Enhance talent Address Improve Bias P&L Unlock value Build pipeline and culture execution innovation towards through of partnerships, challenges to capability growth driver
Slide 34: Medical Surgical transformation highlights
Medical Surgical transformation highlights Phase 1 Phase 2 What’s changed: Meaningful foundation improvements; clear and focused go forward strategy Talent, culture and structure Commercial productivity Improved innovation capability • Restructured senior leadership team: ~60% new to • Specialized s
Slide 35: Executing our growth driver strategy
Executing our growth driver strategy Negative Pressure IV Site Sterilization Wound Therapy Management Assurance (NPWT) Combines wound dressings Secure intravenous (IV) Readers and indicators to with a vacuum pump device to catheters from insertion to ensure pre-operative promote healing in acute, re
Slide 36: Elise Tordella
Elise Tordella Senior Vice President, Advanced Wound Care
Slide 37: Advanced Wound Care
Advanced Wound Care An industry-leading wound care business with solutions across the clinical workflow Growth Driver Negative Pressure Wound Therapy Advanced Wound Dressings Advanced Skin Care Combines wound dressings with a vacuum pump Provide effective treatment of infection, manage Highly durabl
Slide 38: Negative Pressure Wound Therapy
Negative Pressure Wound Therapy Heart Hard-to-heal chronic and acute open wounds and at-risk closed Increased cost to the healthcare system surgical incisions impact patient quality of life 9.6 ~$10B Increased likelihood of annual cost in US from amputations additional days in the hospital readmissi
Slide 39: Expand utilization through innovation and clinical evidence
Expand utilization through innovation and clinical evidence Simplify the delivery of V.A.C.® therapy Leverage clinical data to globalize Prevena for closed surgical incisions V.A.C.® Peel and Place Dressing Clinical and health economics data awareness and training Why it is a game 4x Prevena Therapy
Slide 40: Focused commercial execution and market development
Focused commercial execution and market development Simplification Execution Market & specialization excellence development Rallying around growth Driving customer- Expanding patient drivers globally centric processes access globally • Specialized sales, • Targeted key account • Deliver medical educ
Slide 41: Doug Bartlett
Doug Bartlett Senior Vice President, Infection Prevention & Surgical Solutions
Slide 42: Infection Prevention & Surgical Solutions
Infection Prevention & Surgical Solutions Enabling a world with fewer infections and complications Growth Driver Growth Driver Medical IV Site Management Sterilization Assurance Surgical Solutions Hospital Consumables Technologies OEM Secure intravenous (IV) Readers and indicators to Temperature man
Slide 43: IV Site Management
IV Site Management Heart 136M >10% Increased cost to the healthcare system associated infections globally patients develop IV associated infections ~$10B annual cost in U.S. from extended hospital IV associated infections increase mortality risk by 1.5x stays due to I.V. associated infections Brain
Slide 44: Expand utilization of premium antimicrobial solutions
Expand utilization of premium Tegaderm CHG Chlorhexidine Gluconate IV Securement Dressings antimicrobial solutions The only transparent dressing cleared by the FDA to reduce catheter-related bloodstream infections (CRBSI) and vascular catheter colonization Accelerate adoption Key growth accelerators
Slide 45: Sterilization Assurance
Sterilization Assurance Heart >160K 7-10 Increased cost to hospitals due to recalled instruments following an SSI US patients develop surgical site Additional postoperative ~$60 per minute infections (SSIs) per year hospital days SSIs increase the likelihood of hospital readmission by 5x and an aver
Slide 46: Expand utilization of sterilization assurance solutions
Expand utilization Commercializing new products to address key barriers: Subjective, manual processes; labor-intensive workflow of sterilization Attest Attest Super Rapid assurance eBowie-Dick Test System Vaporized Hydrogen Peroxide Clear solutions Launched March 2025 Challenge Pack Launching April
Slide 47: Medical Surgical priorities
Medical Surgical priorities Phased approach that clearly defines our pathway to market leadership Phase 1 Phase Phase22 Phase 3 Enhance talent Address Improve Bias P&L Unlock value Build pipeline and culture execution innovation towards through of partnerships, challenges to capability growth driver
Slide 48: Karim Mansour
Karim Mansour President, Dental Solutions
Slide 49: Dental Solutions at a glance
Dental Solutions at a glance Provides the most comprehensive dental solutions for patients to enjoy healthy, beautiful smiles through game-changing innovation Orthodontic International 58% 60+ countries Solutions served through dedicated manufacturing and supply chain $1.3B Revenue by geography 2024
Slide 50: Attractive dental market
Attractive dental market Market trends • Digital enablement and data integration • Mass customized manufacturing • Personalized patient-driven care • Simplification and Deskilling • In-office production Market growth drivers • Aging global population and growth in the middle class • Growing awarenes
Slide 51: Dental Solutions overview
Dental Solutions overview Category-leading positions Go-to-market model and customers Filtek composites • Leader in dental and Direct sales organization orthodontic solutions • Dentist • Orthodontists • First-to-market with • Group practices Filtek Easy Match tooth-colored restorative composites • T
Slide 52: Dental Solutions priorities
Dental Solutions priorities Phased approach that clearly defines our pathway to market leadership Phase 1 Phase Phase22 Phase 3 Enhance talent Address Improve Bias P&L Unlock value Build pipeline and culture execution innovation towards through of partnerships, challenges to capability growth driver
Slide 53: Dental Solutions transformation highlights
Dental Solutions transformation highlights Phase 1 Phase Phase22 Phase 3 What’s changed: meaningful foundation improvements; clear and focused go forward strategy Talent, culture and structure Commercial productivity Improved innovation capability • Senior leadership team assembled • Specialized sal
Slide 54: Delivering smile innovation across the life of the tooth
Delivering smile innovation across the life of the tooth Restorative & Prevention Orthodontic Solutions Dental products and technologies Customized oral care Growth Driver Internal Bet Oral Care Portal Core Restorative Custom Smile Solutions Solutions Including composites, Filtek composites Scotchbo
Slide 55: Core Restoratives
Core Restoratives Heart Untreated tooth decay is the • Compromised tooth structure can lead to suboptimal oral function and tissue health having varying impacts to overall health #1 non-communicable disease globally • Restorative products enable dentists to preserve a healthy tooth structure while e
Slide 56: Rebuild innovation leadership
Recognized leadership Rebuild innovation leadership Regain innovation leadership by utilizing materials science capabilities to simplify Direct Strong brands Indirect Restoration Procedures and improve clinical outcomes 1 Differentiated chemistries Filtek Easy Match Filtek Matrix Scotchbond Universa
Slide 57: Enhance commercial effectiveness
Field coverage expansion Enhance commercial Specialized sales force team effectiveness • High touch point and consultative sales Channel and e-commerce for customer reach Optimizing business to deliver customer service excellence • Channel management • New e-commerce partnerships 1 Customer-centric
Slide 58: Dental Solutions Key takeaways
Dental Solutions A focused portfolio strategy towards our Key takeaways growth driver and internal bet Unmatched value delivered through industry- leading science, innovation, education and service Utilizing our global network to increase sales Repositioning dental solutions through innovation leade
Slide 59: Garri Garrison
Garri Garrison President, Health Information Systems
Slide 60: Health Information Systems (HIS) at a glance
Health Information Systems (HIS) at a glance Delivering innovative software solutions and services, designed to eliminate revenue cycle waste, create more time to care and support the shift to value-based care Clinician Productivity International Solutions 9% 40+ years medical coding expertise contr
Slide 61: Health Information Systems overview
Health Information Systems overview Category-leading positions Go-to-market model and customers • Global leader in coding and clinical Direct sales • Health systems/integrated organization delivery networks documentation improvement tool • Physician practices Solventum 360 • Global leader of methodo
Slide 62: Offering differentiated solutions to solve complex customer challenges
Offering differentiated solutions to solve complex customer challenges Growth Driver Revenue Cycle Management Performance Management Clinician Productivity Solutions The process to code, bill and Analytics consulting, methodologies Tools to reduce administrative recognize revenue and payer services
Slide 63: Health Information Systems priorities
Health Information Systems priorities Phased approach that clearly defines our pathway to market leadership Phase 1 Phase Phase22 Phase 3 Enhance talent Address Improve Bias P&L Unlock value Build pipeline and culture execution innovation towards through of partnerships, challenges to capability gro
Slide 64: Health Information Systems transformation highlights
Health Information Systems transformation highlights Phase 1 Phase Phase22 Phase 3 What’s changed: meaningful foundation improvements; clear and focused go forward strategy Talent, culture and structure Commercial productivity Improved innovation capability • New leadership team in place with • Shif
Slide 65: Revenue Cycle Management
Revenue Cycle Management Heart Customers’ need for intelligent, accurate revenue cycle Inaccurate documentation can lead to significant lost management systems has never been higher revenues, lack of compliance and under-reporting on quality metrics 30% 70% • Payers initially denying 15% of claims,
Slide 66: Infusing AI through autonomous coding
Infusing Models are automating between AI through 50-90% of cases, depending on the service line, with 95%+ accuracy autonomous coding The HIS value proposition Our path to differentiation • Uses generative AI and rules-based • Volume of data to train AI models models to enable automated coding • Co
Slide 67: Revenue Integrity
Utilizes generative AI and advanced analytics to address payer denials Revenue Integrity Identifies the denial, provides direction and actions into the workflow so you can correct Denials prevention Denials prioritization it prior to billing Denial predictions, Follow-up prioritization alerts and mi
Slide 68: International 360 Encompass coding
International 360 Encompass coding Expanding the technology for revenue cycle management software in countries outside the US Canada Adopting computer-assisted coding Germany Need for improved coder productivity Saudi Arabia and UAE Implementing DRG-based reimbursement with need for computer-assiste
Slide 69: HIS Key takeaways
HIS Uniquely positioned to win Key takeaways Strong base of contracted recurring revenue Extensive reach and penetration – most widely used coding software in the industry Differentiated offerings combining content expertise, data science and digital capabilities Driving growth by expanding capabili
Slide 70: Transition to expand margins
Growth driver recap: Transition to expand margins 2025 Investor Day
Slide 71: 80% of revenue growth from five growth drivers; enhanced by inorganic opportunities
80% of revenue growth from five growth drivers; enhanced by inorganic opportunities Organic Accelerate 1 Negative Pressure Wound Therapy revenue growth 2 IV Site Management 3 Sterilization Assurance 4 Core Restoratives 5 Revenue Cycle Management Inorganic / M&A 2025 Investor Day 71
Slide 72: Two key focus areas to drive margin expansion
Two key focus areas to drive margin expansion Drive margin expansion Solventum Way restructuring Key drivers Gross margin enhancement: • Programmatic savings • Growth support 2025 Investor Day 72
Slide 73: Solventum Way restructuring
Solventum Way restructuring $120M annual savings $120M 1 800 one-time year payback positions eliminated restructuring cost In 2025, the restructuring program offsets the incremental cost for public company stand-alone and growth investments 2025 Investor Day 73
Slide 74: Paul Harrington
Paul Harrington Chief Supply Chain Officer
Slide 75: Supply Chain at a glance
Supply Chain at a glance 29 plants Global network footprint 2,768 direct suppliers 57 distribution centers 248 contract manufacturers 60/40 US / international manufacturing Plant Distribution center 140 service centers 2025 Investor Day 75
Slide 76: Supply Chain imperatives
Supply Chain imperatives • Improve key service • Regional inventory allocation Service the metrics – backorder and on business to time in full (OTIF) • Capacity management for service support growth • Sales Operations Execution (SOE) • Supplier constraints • Programmatic savings • Integrated busines
Slide 77: Service the business to support growth: improve key service metrics
Service the business to support growth: improve key service metrics Unlocking capacity for service Advance Integrated Business Planning (IBP) to and sustainable growth respond with agility, while enhancing operational efficiencies to deliver superior service Days of backorder sales Transform from a
Slide 78: Margin enhancement: essential areas of focus to achieve programmatic savings
Margin enhancement: essential areas of focus to achieve programmatic savings Supplier excellence Continuous improvement Network simplification Operational Supplier negotiations Lean and kaizen Separation excellence (Core) Freight optimization Yield and productivity Supplier consolidation Indirect sp
Slide 79: Programmatic savings: multiple levers to achieve supplier excellence
Programmatic savings: multiple levers to achieve supplier excellence Multiple levers to achieve supplier excellence Supplier negotiations Supplier consolidation Drive value through and dual sourcing competitive bidding and Build resiliency by transitioning direct negotiation supplier spend to strate
Slide 80: Programmatic savings: top levers to achieve continuous improvement benefits
Programmatic savings: top levers to achieve continuous improvement benefits Global Operating System Top levers to achieve Deploying the Solventum continuous improvement Performance System unites the supply chain organization globally – working to a standard, solving faster and creating space to focu
Slide 81: Achieving separation and network simplification
Achieving separation and network simplification New Solventum plant built in Mexico Solventum carveout in Japan DC separation in Israel, Australia and New Zealand Global footprint Manufacturing plants Distribution centers outcomes 67 29 20 73 57 45 2025 Investor Day 81
Slide 82: Supply Chain imperatives
Supply Chain imperatives • Improve key service • Regional inventory allocation Service the metrics – backorder and on business to time in full (OTIF) • Capacity management for service support growth • Sales Operations Execution (SOE) • Supplier constraints Margin • Programmatic savings • Integrated
Slide 83: Wayde McMillan
Wayde McMillan Chief Financial Officer
Slide 84: Solventum value creation formula
Solventum value creation formula Attractive set up diverse businesses, attractive markets and strong brands Foundational + enhancements mission, talent, culture, innovation engine (commercial and R&D) market selection and growth drivers – enable sales growth, + Strategic clarity margin expansion and
Slide 85: Taking phased approach to execute our roadmap
Taking phased approach to execute our roadmap Phase 1 Capture hearts and minds and stabilize the business Phase 2 Enhance strategic focus Phase 3 Portfolio optimization Establish clear strategic plan to drive revenue growth, margin expansion, cash-flow generation 2025 Investor Day 85
Slide 86: 2025 guidance: establishing a new base for 3-year LRP
Phase 2 Additional considerations 2025 guidance: establishing FX impact a new base for 3-year LRP ~150bps Reported Sales growth headwind Annualizing public company stand-up costs and interest expense in 2025 Operating margin 20% to 21% Organic sales growth +1.0% to +2.0% With improvement during the
Slide 87: LRP: Accelerate sales growth
Phase 2 LRP: Multiple levers to drive growth Accelerate FY24-FY26 sales growth • Commercial excellence – talent, culture, structure, supporting functions • Existing NPI – cancel or keep and enhance • Execute on portfolio transformation FY27+ • Reload NPI – bias to growth drivers and increase Vitalit
Slide 88: LRP: Expand operating margins
Phase 2 LRP: Multiple levers to expand margins and offset Expand ~200bps of 3M COGS increase operating • Leverage accelerating sales growth margins • Programmatic savings through operational efficiencies in manufacturing and supply chain • Restructuring to drive improved commercial effectiveness in
Slide 89: LRP: EPS growth
Phase 2 LRP: Key drivers Key drivers EPS growth • Accelerate organic sales growth • Drive operating margin expansion • Optimize capital planning 10% CAGR 2025 Investor Day 89
Slide 90: LRP: Improving free cash flow
Phase 2 LRP: Multiple levers to improve free cash flow Improving • Sales acceleration and margin expansion free cash flow • Step-down of one-time separation costs conversion • Targeted working capital improvements • Efficiencies through operational, system and process improvements 2028 • While focus
Slide 91: Long-range plan 2028 target metrics: 3-year outlook
Phase 2 Long-range plan 2028 target metrics: 3-year outlook Based on 2025 fiscal year end; inclusive of announced portfolio transformation Additional considerations Organic sales growth +4% to +5% Focused on delivering: Operating margin 23% to 25% • Attractive ROIC 25% to 27% excluding ~200bps 3M CO
Slide 92: Taking phased approach to execute our roadmap
Taking phased approach to execute our roadmap Phase 1 Capture hearts and minds and stabilize the business Phase 2 Enhance strategic focus Phase 3 Portfolio optimization Portfolio optimization – P&F Divestiture Capital allocation strategy 2025 Investor Day 92
Slide 93: Portfolio optimization: P&F divestiture for $4.1 billion
Phase 3 Portfolio optimization: P&F divestiture for $4.1 billion Deal Signed Value-creating transaction February 25, 2025 Proceeds Expected impact on Financial metrics Expected Completion Estimated $3.4B in net proceeds Neutral to organic sales growth By end of 20251 Proceeds used primarily Expands
Slide 94: Capital planning: optimize capital allocation strategy
Phase 3 Capital planning: optimize capital allocation strategy Debt paydown Invest for growth Return capital to shareholders Net proceeds from P&F Free cash flow and debt Consistent with capital plan, and divestiture primarily used to pay paydown support: in light of tax considerations, P&F down deb
Slide 95: Capital planning: invest for growth
Phase 3 Capital planning: invest for growth P&F divestiture accelerates timeline to activate disciplined M&A Criteria for close to core, tuck-in M&A Strategic fit Financial impact Fulfills Solventum mission Accretive to sales growth and gross margin Large, growing markets Clear path to EPS growth Pa
Slide 96: Solventum value creation formula
Solventum value creation formula Attractive set up diverse businesses, attractive markets and strong brands Foundational + enhancements mission, talent, culture, innovation engine (commercial and R&D) market selection and growth drivers – enable sales growth, + Strategic clarity margin expansion and
Slide 97: What you heard today
What you heard today +4% to +5% revenue growth Attractive businesses, markets and brands 23% to 25% operating margin Enhanced mission, talent, culture and innovation engine 25% to 27% inclusive of ~200bps 3M COGS increase Clear strategy enables sales growth, margin expansion and cash flow improvemen
Slide 98: 2025 Investor Day
2025 Investor Day We never stop solving for you.