Slide 1: 2023 Third Quarter Earnings
2023 Third Quarter Earnings (unaudited) Mike Roman Monish Patolawala Bruce Jermeland Chairman of the Board and President and Chief Senior Vice President, Chief Executive Officer Financial Officer Investor Relations
Slide 2: Forward-looking statements
2 Forward-looking statements This presentation contains forward-looking information about 3M’s financial results and estimates and business prospects that involve substantial risks and uncertainties. You can identify these statements by the use of words such as “plan,” “expect,” “aim,” “believe,” “p
Slide 3: Our priorities
3 1 2 3 Driving performance Spinning off Reducing risk and Our priorities: throughout 3M Health Care uncertainty 2023 Q3 Earnings | October 24, 2023. All rights reserved.
Slide 4: Advancing our priorities in Q3
4 Advancing our priorities in Q3: 1 2 Driving performance Spinning off throughout 3M Health Care • Strong operational execution delivered 160 bps of YoY • Progressing toward 1H 2024 completion adjusted operating income margin expansion; sequential improvement across all business groups • Building st
Slide 5: Building momentum through operational execution
5 Building momentum through operational execution Q3 2023 performance Adjusted Sales of $8B Adjusted Op. Income Adjusted EPS of $2.68 Adjusted Free Cash vs. $7.9 to $8B guidance Margin of 23.2% vs. $2.25 to $2.40 guidance Flow of $1.9B Adj. organic growth of -3.1% • Adjusted op. income margin • Adju
Slide 6: Q3 2023 operating margin and EPS
6 Q3 2023 operating margin and EPS Adjusted Adjusted operating earnings margin per share Commentary Q3 2022 21.6% $2.60 Total organic growth/ +2.6% +$0.22 productivity/other Disposable respirator/Russia Exit -0.4% -$0.09 • Decline in COVID-related disposable respirator demand and 2022 exit of operat
Slide 7: Q3 2023 cash flow and balance sheet
7 Q3 2023 cash flow and balance sheet Adjusted free cash flow • Q3: $1.9B, up 39% YoY Adjusted free cash flow • YTD: $4.3B, up 37% YoY $1.9B • Q3: 130%, up 360 bps YoY Adjusted free cash flow • Q3 YoY increase driven by strong inventory management Adjusted free cash flow conversion • YTD: 115%, up 4
Slide 8: Business Group performance
Business Group performance Safety & Transportation & Health Care Consumer Industrial Electronics 2023 Q3 Earnings | October 24, 2023. All rights reserved.
Slide 9: Safety & Industrial
9 Safety & Industrial Q3 2023 commentary • Organic growth performance: – Low-double digit decline in closure and masking; high-single digit declines in industrial adhesives and tapes and personal safety; mid-single digit Organic growth decline in abrasives; low-single digit declines in electrical ma
Slide 10: Transportation & Electronics
10 Transportation & Electronics Q3 2023 commentary • Adjusted organic growth performance – Low-double digit increase in automotive and aerospace; low-single digit increase in advanced materials Adjusted organic growth – Mid-single digit decline in electronics, commercial solutions, and transportatio
Slide 11: Health Care
11 Health Care Q3 2023 commentary • Organic growth performance – High-single digit increase in oral care; low-single digit increases in medical solutions, and separation and purification Organic growth – Low-single digit decline in health information systems 2.4% • Normalization of post-COVID relate
Slide 12: Consumer
12 Consumer Q3 2023 commentary • Organic growth performance – High-single digit declines in home improvement; home health and auto care Organic growth – Mid-single digit decline in stationery and office – Back-to-school season demand trends muted; rising interest rates impacting -7.2% housing market
Slide 13: 2023 Outlook
2023 Outlook 2023 Q3 Earnings | October 24, 2023. All rights reserved.
Slide 14: Raising full-year 2023 EPS and free cash flow guidance
14 Raising full-year 2023 EPS and free cash flow guidance Full-year Implied Q4 Increasing adjusted earnings per share • Adjusted sales of $7.6B to $7.7B $8.95 to $9.15 vs. $8.60 to $9.10, prior – Electronics stabilizing, consumer remains weak, industrial Pre-tax restructuring charges and benefits en
Slide 15: Q&A
Mike Roman Monish Patolawala Bruce Jermeland Q&A Chairman of the Board and Chief Executive Officer President and Chief Financial Officer Senior Vice President, Investor Relations 2023 Q3 Earnings | October 24, 2023. All rights reserved.
Slide 16: Appendix
Appendix 2023 Q3 Earnings | October 24, 2023. All rights reserved.
Slide 17: Q3 2023 P&L
17 Q3 2023 P&L Q3 Q3 GAAP ($M) 2023 2022 Change Sales $8,312 $8,619 (3.6)% Gross profit $3,732 $3,891 (4.1)% % to sales 44.9% 45.1% (0.2)% SG&A $5,992 $1,998 N/M % to sales 72.0% 23.1% 48.9% R&D & related $430 $461 (6.8)% % to sales 5.2% 5.4% (0.2)% Gain on sale of businesses $(36) (2,724) (98.7)% %
Slide 18: Q3 2023 adjusted sales recap
18 Q3 2023 adjusted sales recap Americas EMEA APAC Worldwide Organic growth 0.4% (0.9)% (11.5)% (3.1)% Acquisitions/divestitures (0.1)% (1.2)% (1.0)% (0.5)% FX 0.4% 6.5% (2.3)% 0.6% Total growth 0.7% 4.4% (14.8)% (3.0)% 2023 Q3 Earnings | October 24, 2023. All rights reserved.
Slide 19: Business segment information
19 Business segment information ($M) Adjusted net sales* Q3 2023 adjusted sales growth* Adjusted operating income* Adjusted operating margin* Total Q3 Q3 Organic sales Q3 Q3 Percent Q3 Q3 Business Groups 2023 2022 growth FX M&A change 2023 2022 change 2023 2022 Safety & Industrial $2,751 $2,894 (5.8
Slide 20: Additional GAAP sales detail
20 Additional GAAP sales detail ($M) GAAP Net Sales ($M) GAAP Net Sales Business Groups Q3 2023 Q3 2022 Business Groups Q3 2023 Q3 2022 Abrasives 330 339 Food Safety — 63 Automotive Aftermarket 316 316 Health Information Systems 305 312 Closure and Masking Systems 240 266 Medical Solutions 1,179 1,1
Slide 21: 2023 to 2025 structural reorganization actions
21 2023 to 2025 structural reorganization actions* (($M) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Total Program ) Actual Actual Actual Estimated Estimated Estimated Restructuring & related charges $52 $212 $68 $70 to $120 $400 to $450 $700 to $900 Benefits - $89 $166 $145 to $195 $400 to $450 $700 to
Slide 22: Science. Applied to Life.
Science. Applied to Life.”