3m Company · NYSE:MMM
3m — Investor Day (February 2025)
99 slides from 3m's investor day presentation, Feb 26, 2025
Slide 1: Welcome to 3M's 2025 Investor Day
Welcome to 3M’s 2025 Investor Day
Slide 2: Innovation, Excellence & Execution
Innovation, Excellence & Execution 2025 Investor Day Chinmay Trivedi Senior Vice President, Investor Relations and Financial Planning & Analysis
Slide 3: Agenda
3 Agenda 01 Strategic priorities 02 Reinvigorating growth 03 Driving productivity Bill Brown John Banovetz Peter Gibbons CEO CTO Supply Chain 04 Implementing our strategy 05 Anurag Maheshwari Financials 06 Q&A CFO Chris Goralski Safety & Industrial Wendy Bauer Transportation & Electronics Karina Cha
Slide 4: Forward-looking statements
4 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,” “future,” “ou
Slide 5: Bill Brown, Chief Executive Officer
2025 Investor Day Bill Brown Chief Executive Officer
Slide 6: Resetting the company … delivering for shareholders
6 Resetting the company … delivering for shareholders 21% $7.30 Adjusted EPS Met financial commitments 280 21.4% Adjusted operating margin bps 32% 169 new product launches Improved execution 8 days 74 days cash conversion cycle ~75% of adjusted FCF in dividends and $3.8B repurchases Returned excess
Slide 7: The "new" 3M
7 The “new” 3M …with a new 123 years of innovation… performance mandate Deep material science Manufacturing expertise at scale Relentless focus on execution Value Proposition Constancy of purpose Unmatched global reach Strong, iconic brands
Slide 8: One 3M … building a new performance culture
8 One 3M … building a new performance culture Leadership expectations Clear Customer- Be accountable Best talent performance obsessed • Champion safety, ethics and compliance expectations • Take ownership for results • Execute flawlessly Relentless Safety, ethics Be involved Incentives tied continuo
Slide 9: Focusing on the fundamentals …
9 Focusing on the fundamentals … 1 Re-invigorate top-line growth 2 Drive operational performance across the enterprise 3 Effectively deploy capital … applying basic principles to drive sustained performance
Slide 10: Our growth mandate …
10 Our growth mandate … Innovation Commercial Excellence Commercial Channel Customer management effectiveness loyalty Launches • Best-in-class • Cross-selling • World class sales through service 5-year new distribution product sales • Standard tools, • Highly processes • Strategic responsive New Pro
Slide 11: Focusing on priority verticals with a right to win …
11 Focusing on priority verticals with a right to win … 3M Differentiators Macrotrends Digitalization Climate change Priority verticals Electrification Aerospace AR / VR Automotive Urbanization Electronics Data centers Energy Artificial Sustainable Intelligence Industrial materials Home cleaning Hom
Slide 12: Systematically upgrading portfolio
12 Systematically upgrading portfolio Surgically assessing ~120 profit centers Invest in priority verticals Selected Examples • Higher growth / margin potential Gross Margin Sales • Opportunity to differentiate via innovation • Clear right to win Harvest • Limited growth, acceptable margin • Run for
Slide 13: Driving operational performance
13 Driving operational performance New Operating System Core Principles Enterprise • Clear, consistent KPIs Supply Chain Commercial R&D / Innovation • Standard tools, processes, playbook • Data-driven, digital centric solutions IT HR • Rigorous and methodical tracking • Relentless continuous improve
Slide 14: Balanced capital deployment (2025 – 2027)
14 Balanced capital deployment (2025 – 2027) Organic growth Returns to shareholders Inorganic growth • Fully fund growth • Reward owners • Shift towards higher initiatives growth verticals − Dividends ~$5B − R&D ~$3.5B − Divestitures − Repurchases ~$5B − Capex ~$3B − Potential bolt-ons … over time S
Slide 15: Reigniting 3M value creation
15 Reigniting 3M value creation Key milestones Medium-term New LTIP commitments • 50% Cum. EPS • ~1,000 new product 2025-2027 launches • 50% Cum. FCF Outperform • TSR modifier vs. S&P • ~$1B sales above macro Industrials macro Responsive to Investor • ~$1B supply chain net EPS accelerating to Feedba
Slide 16: Best-in-class team to drive execution
16 Best-in-class team to drive execution Leadership team here today … Dr. John Banovetz Peter Gibbons Chris Goralski Wendy Bauer Karina Chavez Anurag Maheshwari Executive Vice President, Group President, Group President, Group President, Group President, Chief Financial Officer Chief Technology Offi
Slide 17: Dr. John Banovetz, Chief Technology Officer
2025 Investor Day Dr. John Banovetz Chief Technology Officer
Slide 18: 3M is built upon solid foundational R&D capabilities
18 3M is built upon solid foundational R&D capabilities 4,000+ Technical employees Technology Application Customer Manufacturing 45% expertise access Advanced degrees Germany China 40+ United States Research labs Japan Brazil 21,000+ Active patents
Slide 19: Our integrated R&D model sets us apart
19 Our integrated R&D model sets us apart Research & Development 1/3 2/3 spend spend Technology development Product development The application of science & The application of technology engineering for commercial use
Slide 20: A strong culture powers our innovation
20 A strong culture powers our innovation Global talent Collaboration Empowerment Recognition Tech Forum 15% Time The Carlton Award Leveraging scientific talent Self-directed, grassroots Expectation to spend The highest technical at globally organization fostering time on self-directed recognition,
Slide 21: Industry firsts and new-to-the-world innovations
21 Industry firsts and new-to-the-world innovations 1902 1914 1925 1979 1980 Minnesota Mining and 3M Three-M-ite Abrasive First masking tape and Scotch® 3M Thinsulate The iconic Manufacturing founded Cloth becomes 3M’s first brand product born as the Thermal Insulation invented Post-it® Note is born
Slide 22: Reigniting the innovation engine
22 Reigniting the innovation engine 2018 - 2023 2024 forward Launches 454 5-year new ~$7B Growth catalysts product sales • Shift spending to new 169 product development Product ~$2.4B • Implement rigorous development ~35% governance ~33% • Target priority markets Supply chain • Improve efficiency Pi
Slide 23: Accelerate commercialization
23 Accelerate commercialization Process improvements Align resources, tools and team 4 Free up team capacity Efficiency gains Focus on core value-added activities 3 Increase velocity of new product Governance launches Strengthen enterprise accountability 2 Improve Investment strategy 1 effectiveness
Slide 24: Target investments to highest value areas
24 Target investments to highest value areas Macrotrends Priority Verticals Importance to 3M (TAM = ~$300B+) • Artificial intelligence • Large, fast-growing Aerospace Augmented/Virtual Reality • Automation • Accessible with Automotive Energy 3M technology • Climate change Electronics Data centers •
Slide 25: Strengthen enterprise NPI accountability
25 Strengthen enterprise NPI accountability Prior state Future state Inconsistent focus on NPI Corporate Consistently prioritize NPI as growth driver Budget performance as a growth driver NPI flow flow Decentralized allocation of SIBG TEBG Allocate more resources to the resources Corporate best oppo
Slide 26: Focus on core value-added activities
26 Focus on core value-added activities Improve customer Streamline Accelerate connection standard work innovation Customer Breakdown of R&D time Minimizing trial variability to connection scale up faster Manual trial Other AI-enabled trial Variability Value add Operations Today Future Trial Runs •
Slide 27: Innovate faster with artificial intelligence
27 Innovate faster with artificial intelligence Individual use case Broad application Virtual materials for customers NEW 3M Precision-Shaped Grain Stress analysis AI-enhanced grain shape optimization Virtual materials using finite element analysis, modeling and simulation Automated product performa
Slide 28: Drive process improvement in R&D factory
28 Drive process improvement in R&D factory Strategy & Ideation & Current Build portfolio exploratory Development Scale-up Launch Core state management research business case Streamlining processes Actions Seamlessly integrating with manufacturing Reducing SKU cycle time 20% time-to-market AI-enhanc
Slide 29: Measure progress
29 Measure progress New product launches 1,000 launches over 3 years 169 ~215 Immediate pivot to growth from 5-year New Product Sales new products ~$2.4B ~$3B ~$5B Capture growth in earnings New Product Vitality Index and profitability New product sales/total sales over time ~10% ~12% ~20% 2024 2025
Slide 30: The 3M Innovation Model delivers: Microreplication
30 The 3M Innovation Model delivers: Microreplication 2030 and beyond (~$100B+ TAM) Creation of nanoscale features Today (~$60B TAM) Advanced optical properties Increased feature complexity Augmented/virtual reality Optical / thermal / acoustic applications 1990s Mechanical product applications Data
Slide 31: Innovation: creating a new standard
31 Innovation : creating a new standard Disciplined end-to-end development Performance management Continuous improvement mindset Customer-inspired solutions Innovation Technology differentiation Curiosity-driven talent Collaborative culture Agility at scale
Slide 32: 3M Innovation: the momentum is building
32 3M Innovation: the momentum is building Customer at our core
Slide 33: Peter Gibbons, Group President, Enterprise Supply Chain
2025 Investor Day Peter Gibbons Group President, Enterprise Supply Chain
Slide 34: One of the most complex supply chains
34 One of the most complex supply chains ~43,000 People Manufacturing Innovation Product Channels & technology diversity customers 110 Active plants 88 Distribution centers 1,000+ Interplant lanes # Active plants as of February 2025
Slide 35: Enterprise Supply Chain momentum
35 Enterprise Supply Chain New organizational model momentum delivering results Focus on reducing recordable ~43% Up 160 bps 1.04 Improved 24% injuries Real time supply chain Gross margin Recordable incident rate visibility improving service 94 days Down 2 days 88% Improved 300 bps Improved executio
Slide 36: Unlocking value through operational excellence
36 Unlocking value through operational excellence Innovation Gross margin High 40s Growth Operational Innovation excellence Current Future Note: Presented on an adjusted basis
Slide 37: Supply Chain priorities
37 Supply Chain priorities • $1B net productivity across 1 Productivity $13B COGS Multi-year Service & • Build end-to-end execution journey 2 • Reduce inventory Inventory • Deliver 95% OTIF to build capability • Strengthen bench 3 Capabilities • Build technical skills • Acquire tools & technology No
Slide 38: Path to operational excellence
38 Path to operational excellence Rewire Network supply chain Network design • Product Plant/DC/supplier improvement • Footprint platforming Unit management • Automation rationalization • Tier 2/3 supplier operations • Supplier network configuration • Line/plant OEE strategy • LT capacity plan • AI
Slide 39: Productivity: improving gross margin
39 Productivity: improving gross margin $13B+ COGS Gross margin improvement High 40s Logistics Cost of quality Direct materials Productivity $1B External manufacturing plan Net productivity ~43% Internal manufacturing Current Medium-term Future Future opportunities opportunities Addressing opportuni
Slide 40: Internal manufacturing
Internal External Direct Cost of Logistics manufacturing manufacturing materials quality 40 Internal manufacturing Examples Overall equipment effectiveness (OEE) • Improved OEE 400bps to 52% 74% Multilayer 61% $125M potential saving from • Target 75% OEE on >80% of strategic assets film OEE improvin
Slide 41: External manufacturing ~$150M opportunity
Internal External Direct Cost of Logistics manufacturing manufacturing materials quality 41 External manufacturing ~$150M opportunity Examples Supplier negotiation and consolidation • Packaging: 10-15% savings, supply base Consolidated suppliers by 60%, and Power reduction of 30% introduced new part
Slide 42: Direct materials ~$250M opportunity
Internal External Direct Cost of Logistics manufacturing manufacturing materials quality 42 Direct materials ~$250M opportunity $150M potential from Examples negotiation and consolidation Strategic sourcing • Completed 1,000+ discrete negotiations Global 10% savings leveraging commodity delivering >
Slide 43: Cost of quality ~$200M opportunity
Internal External Direct Cost of Logistics manufacturing manufacturing materials quality 43 Cost of quality ~$200M opportunity Examples Process waste Process Waste Old • Improving time to good output across 300k start ups per year on major assets Forming Drying Cutting Catalytic • Piloted closed loo
Slide 44: Logistics ~$100M opportunity
Internal External Direct Cost of Logistics manufacturing manufacturing materials quality 44 Logistics ~$100M opportunity Examples Transportation Before After • Reduced road freight rates by 10-15% Optimized air $30M • Global rate bids, load consolidation, and to ocean potential to -10% mode conversi
Slide 45: Service & inventory: Building end-to-end execution capability
45 Service & inventory: Building end-to-end execution capability 95% Service Building world class E2E execution (OTIF) 88% Demand 2024 Target Materials Planning and Manufacturing planning S&OP 94 75 Inventory (Days) Distribution Order Transportation operations management In-flight improvement levers
Slide 46: Service & inventory
46 Service & inventory Examples Forecasting OTIF Days Inventory • Increasing forecast accuracy with machine Transportation Improved service learning and redesigned forecast models & Electronics 90% 96 and reduced Business 84% 91 inventory group End-to-end visibility 2023 2024 2023 2024 • Control tow
Slide 47: Capability: Future-focused talent and skill development
47 Capability: Future-focused talent and skill development Strengthen Build Acquire tools & bench technical skills technology • External hiring • Automation • AI planning tools • Fill talent gaps • Analytics/modelling • Process optimization • 3M Supply Chain • Value-engineering • Real-time decision
Slide 48: Our commitments
48 Our commitments Rewire supply chain 95% Network Network design • Product Plant/DC/supplier improvement • Footprint platforming Unit management • Automation rationalization • Tier 2/3 supplier OTIF operations • Supplier network configuration • Line/plant OEE strategy • LT capacity plan • AI powere
Slide 49: Chris Goralski, Group President, Safety & Industrial
2025 Investor Day Chris Goralski Group President, Safety & Industrial
Slide 50: Transforming how work gets done
50 Transforming Sales in 2024 Personal Safety 31% Industrial Adhesives & Tapes how work $11 billion 19% gets done Abrasives 12% Industrial Minerals Electrical Markets 5% 12% Industrial Specialties 10% Automotive Aftermarket 11% Category leadership through best-in-class EMEA CHINA technology and bran
Slide 51: Alignment to growth drivers will enable accelerated growth
51 Capitalizing on attractive growth opportunities in large, diverse markets Growth Drivers Manufacturing Construction Vehicle Repair Evolving and advancing 65% of sales 10% of sales 5% of sales workplace safety standards Bonding solutions for 2-4% mkt growth advanced materials and 2-4% mkt growth d
Slide 52: Safety & Industrial momentum
52 Safety & Industrial momentum Improve supply chain service and quality levels +0.7% 81% Up ~300 bps YoY Execute our R&D playbook to deliver more new products with greater impact 2024 Organic growth OTIF 23.1% 64 Build a stronger commercial execution Up 110 bps YoY +52% increase YoY culture with ro
Slide 53: Driving accelerated growth through our strategic priorities
53 Driving accelerated growth through our strategic priorities Innovation acceleration Commercial excellence Investing in resources Commercial management Improving cycle time Channel effectiveness Increasing on-time launch attainment Customer loyalty Building off a strong foundation of category-lead
Slide 54: Investments and operational excellence
54 Accelerating the number of new product launches over the next 3 years Increase development Reduce project Double on-time resources by 15% cycle time by 25% launch attainment 2024 2027 2024 2027 2024 2027 550 630 400 300 40% 75%+ Full-time Full-time days days employees employees Investments and op
Slide 55: Reinventing categories through innovation and automation
55 Reinventing categories through innovation and automation 3M VHB platform built on best-in-class technology and market leadership Foam Industrial 3M VHB Electronics 3M VHB 3M VHB tape Acrylic Foam Tape Bonding Tape Extrudable Tape Efficient assembly Durable performance Cutting-edge design Automate
Slide 56: Establishing a 3M-way of commercial management
56 Establishing a 3M-way of commercial Commercial Channel Customer management effectiveness loyalty • Align targets and incentives • Strengthen alignment • Improve customer service through joint business • Standardize operating • Implement closed-loop planning rhythm customer care model • Maximize i
Slide 57: Winning in the market
57 A consistent operating cadence with uniform performance management Customer Cross-sell retention priorities Redefine pricing governance to reduce leakage 2 3 Commercial 60%+ Less than $20k 62% 22% $20k-100k Management of pricing adjustments → small deals 9% 7% $200k+ 1 4 $100k-200k Pipeline Prici
Slide 58: Growing wallet share with greater focus on cross-selling
58 Growing wallet share with greater focus on cross-selling Welding Paint application Coated abrasives Launched in December 50+ prioritized product pairings + + + $100M+ opportunity from 2025-2027 Finalized joint Bonded Specialty Disposable business plans with abrasives masking respiratory top partn
Slide 59: Integrating retention into performance management
59 Best in class service to increase customer loyalty Medium-sized customers represent largest Proactively addressing revenue capture opportunity root causes of erosion Annual erosion rate (%) Closed-loop model Average Predictive analytics Leading peers Small Medium Large Improved service Annual Ero
Slide 60: Our commitment: Outperform macro
60 Our commitment Our commitment Win by solving our customers’ biggest problems with our category- leading solutions Accelerate innovation by increasing new product launches and impact Build a world class commercial organization with stronger performance management and less complexity 2025-2027 Orga
Slide 61: Wendy Bauer, Group President, Transportation & Electronics
2025 Investor Day Wendy Bauer Group President, Transportation & Electronics
Slide 62: Taking on our customers' toughest challenges – together
62 Advanced Materials Taking on our Sales in 2024 7% customers’ $7.4 billion Automotive & Aerospace 26% toughest Commercial Branding & Transportation challenges – 34% Electronics together. 33% EMEA CHINA Industry-first innovations, 23% AMERICAS 15% trusted global manufacturer at scale 36% ASIA Bench
Slide 63: Transportation & Electronics momentum
63 Transportation & Electronics Driving innovation from momentum ideation to launch +3.4% 90% Up ~600 bps YoY Advancing digital capabilities to accelerate 2024 Organic growth OTIF Growing through broader 23.2% 69 portfolio adoption Up 220 bps YoY +41% increase YoY Generating demand and 2024 Operatin
Slide 64: Our framework
64 Our framework Verticals Portfolio Customers Go-to-Market Clarity on Innovation Collaborative Effective priority vs. focused on partnerships customer and core verticals, industry with leading channel aligned trends and innovators engagement investments scalable solutions Accelerating growth and in
Slide 65: Major industries demand material science innovation
65 Major industries demand material science innovation Automotive Aerospace Data Center & Electronics Semiconductor Networks Enabling Advancing air Enabling a Connecting digital Innovating high- personalized, more mobility, space, connected and & physical with performance, safe, sustainable and unma
Slide 66: Portfolio: Focusing R&D on scalable, high-value solutions
66 Portfolio: Focusing R&D on scalable, high-value solutions Innovation focus + Bench-to-bench collaboration = Differentiated portfolio ~80% ~80% >40% NPI from NPI aligned NPI from Priority to Strategic Breakthrough Verticals Accounts Innovation Technology Open House Thermal Runaway Auto Display/ Se
Slide 67: Empowering innovation in partnership with our customers
67 Empowering innovation in partnership with our customers “ It’s our honor to work with 3M … 3M is willing to share and co-develop with partners. Your ability to provide tailor made solutions allows us to “ meet unique product requirements. Alex Ma BOE Varitronix Head of Purchasing
Slide 68: Accelerating growth through automotive innovation
68 Accelerating growth through automotive innovation Existing solutions Design & Functional Films Bonding & Sealing Display Films Noise & Vibration EV Thermal & Cushioning + Body-in-White/Chassis + Software-defined Architecture Innovation & Growth + ePowertrain
Slide 69: Broadening our automotive solution portfolio
69 Broadening our automotive solution portfolio Innovation & Growth Software-defined Body-in-White/ Existing solutions ePowertrain Architecture Chassis What’s next Innovating for our customers Component bonding Thermal barriers EMI foils/fabrics Structural adhesives Sealing Battery cell Optical tech
Slide 70: Automotive growth with existing and new technology
70 Automotive growth with existing and new technology 1 Existing solutions 2 Breakthrough innovation Expanding portfolio adoption Growing through portfolio with low PPV customers innovation in collaboration with strategic customers 1.5x Current customer average Customer average PPV range Potential P
Slide 71: Driving performance through experience and excellence
71 Driving performance through experience and excellence “ What I value most about working with 3M is the variety of businesses in the company. Other suppliers’ … perspectives tend to be more limited. “ 3M has a lot of in-house labs, manufacturing, and capabilities Toru Matsui to offer us – that is
Slide 72: Innovating with strategic semiconductor customers
72 Innovating with strategic semiconductor customers Existing solutions Chemical Mechanical Planarization (CMP) Conditioners Wafer Support Systems Chip Transport Solutions + Chemical Mechanical Planarization Innovation & Growth + Advanced Packaging
Slide 73: Semiconductor portfolio solution highlights
73 Semiconductor portfolio solution highlights Innovation & Growth Chemical Mechanical Advanced Existing solutions Planarization Packaging What’s next Innovating for our customers CMP pad conditioners CMP pads & components Low-loss dielectric materials Wafer support system Next-Gen pad conditioners
Slide 74: Semiconductor growth with existing and new technology
74 Semiconductor growth with existing and new technology 1 Existing solutions 2 Breakthrough innovation Expanding portfolio adoption Growing through portfolio with low $/MSI customers innovation in collaboration with strategic customers 2x Current customer average Customer average $/MSI range Potent
Slide 75: Our commitment: Outperform macro
75 Our commitment Increasing investment in priority verticals Accelerating new product innovation Expanding innovation-focused partnerships Broadening channel collaboration 2025-2027 Organic sales growth Enhancing commercial and Outperform macro operational excellence Note: Presented on an adjusted
Slide 76: Karina Chavez, Group President, Consumer Business
2025 Investor Day Karina Chavez Group President, Consumer Business
Slide 77: Reinventing the everyday to make a world of difference
77 Reinventing Sales in 2024 Packaging & Expressions Home Improvement the everyday $4.9 billion 24% 30% to make a world of difference Warehouse Clubs Consumer Safety Home & Auto Care & Superstores & Well-Being 24% 40% 22% Home Centers & Hardware Strengths: 3M 30% EMEA technology, iconic Ecommerce 10
Slide 78: Consumer momentum
Consumer 78 momentum Brand leadership -1.2% Sequential improvement all 93% Up ~400bps YoY Simpler & more focused Cost reduction enables of 24 with Q4 +1.2% reinvestment in product, 2024 Organic growth OTIF channel & brand 18.9% Up 90 bps YoY 36 Organic sales growth acceleration 2024 Operating margin
Slide 79: Generating sustainable momentum
79 Generating sustainable momentum 1 Portfolio Reinvention: strengthening life cycle management Growth Strategies 2 Demand Generation: brand and digital 3 Distribution & Channel: optimizing, strengthening, building Iconic brands 3M material science Retail presence Foundational Strengths
Slide 80: Portfolio Reinvention: strengthening life cycle management
80 11 Portfolio Reinvention: strengthening life cycle management Implementing a holistic … that runs at the speed … bringing innovation to process… of retail… delight consumers Extension Sales Intro Growth Maturity Decline
Slide 81: Command brand: transforming everyday spaces
81 At Command , we transform everyday spaces into places you love. ~$600M Sales From a white strip and hook to designs that excite consumers.
Slide 82: Modernizing Demand Generation: brand building & digital
82 12 Modernizing Demand Generation: brand building & digital Targeting 4 leading … engage consumers … with relevant content to Brands… frequently … drive from intent to purchase Search Social Reviews
Slide 83: Meguiar's: fueling passion for your ride
83 At Meguiar’s®, we exist to fuel passion for your ride. ~$300M Sales Generating demand through social media for accelerated ecommerce growth and share gain.
Slide 84: Distribution & Channel: optimizing, strengthening & building
84 13 Distribution & Channel: optimizing, strengthening & building Achieve 95%+ … to strengthen retailer … and gain shelf presence service… partnerships and expand reach
Slide 85: Scotch-Brite: brightening homes and lives
85 Ab At Scotch-Brite®, we exist to brighten homes and lives. ~$800M Sales #1 Brand in scouring in key markets with opportunities to expand in different retail formats around the world
Slide 86: Our commitment: Perform at macro
86 Our commitment Deliver growth and margin improvement through strategic brand investments and operational excellence Driving growth by: Reinventing our portfolio + Modernizing demand generation 2025-2027 Organic sales growth + Strengthening our distribution & channel Perform at macro
Slide 87: Anurag Maheshwari, Chief Financial Officer
2025 Investor Day Anurag Maheshwari Chief Financial Officer
Slide 88: Financial priorities: Consistent value creation
88 Financial priorities Profitable Robust free Balanced Operationalizing growth cash flow capital performance generation deployment Consistent value creation
Slide 89: Returned to profitable growth in 2024
89 Returned to profitable Return to top-line growth growth in 2024 Benefits from restructuring actions Strong operational +1.2% 21.4% Up 280 bps YoY execution Robust free cash flow Organic growth Operating margin generation $7.30 Up 21% YoY $4.9B 111% conversion Returned $3.8 billion of cash to shar
Slide 90: Medium-term outlook: 2025 – 2027 financials
90 Medium-term outlook: 2025 – 2027 financials Reiterating 2025 guidance Outperform macro … 2026 and 2024 2025 2027 improvements in NPI, commercial actual guidance excellence, and service outlook Organic Outperform +1.2% 2% to 3% Expand gross margin … sales growth macro ~100 bps annually Operating 1
Slide 91: Reinvigorating revenue growth
91 Reinvigorating revenue growth Outperform Accelerating organic sales growth: Outperform macro • Safety & Industrial: Outperform macro macro Organic 2-3% • Transportation & Electronics: Outperform macro sales • Consumer: Perform at macro ~$1 billion growth 2.0% Assumed macro in-line 1.4% with 2025
Slide 92: Operating margin improvement
Growth 92 Operating margin improvement estment Margin Inv 1 2 Cash ~25% 21.4% G&A Gross margin expansion … Volume productivity volume, productivity initiatives Productivity R&D, Sales Investments investments Improving G&A efficiency and Stranded costs effectiveness Stranded costs Metered investments
Slide 93: Gross margin expansion
93 1 Gross margin expansion $13+ billion annual COGS $1B net productivity opportunity Logistics ~$300M - Streamline processes; drive Cost of quality automation; improve OEE; reduce overhead ~$400M - Leverage strategic sourcing; Direct material / optimize supply base; drive value engineering external
Slide 94: Growth investments and G&A efficiency
94 2 Growth investments and G&A efficiency Growth investments: Growth investments up • Product development $3.2B R&D and Sales • Sales coverage • Priority verticals G&A efficiency: $2.0B G&A costs down • IT spend • Indirect spend • Shared service centers 2024 2027 G&A R&D and Sales G&A efficiency to
Slide 95: Generating strong free cash flow
95 Generating strong free cash flow 1 Focus on improvement in inventory days 2025 - 2027 FCF 94 Low 80s ~75 1 2 2024 2027 Future Disciplined capex aligned to 2 company priorities $1B $1B Sustainability down ➢ Tighten governance ➢ Improve business cases Maintenance down ➢ Competitive bids Growth & up
Slide 96: Balanced capital deployment
96 Balanced capital deployment ($billions) 1. Strong cash balance Sources of cash Deployment options 2. Generate robust free cash Cash in excess of WC needs ~$4.5 Dividends and after funding R&D and capex share repurchases + Free cash flow $13.5 - $14 $10+ + 3. High 30s dividend Solventum monetizati
Slide 97: Operationalizing performance
97 Operationalizing performance Operating framework Innovation Cost NPI launches NPI $ Supply chain G&A efficiency driven growth productivity Commercial Cash flow OTIF Erosion Disciplined capex Inventory days excellence generation Financial outcomes Outperform macro ~25% HSD >100% Organic sales grow
Slide 98: Why invest today?
98 Why invest today? Systematically upgrading Leader in innovation portfolio Simplified structure with a Implementing 3M Excellence strong team and aligned operating system incentives Balanced capital deployment Applying basic principles to underpinned by strong drive sustained top-line balance shee
Slide 99: 3M eXcellence
3M |eXcellence