3m Company · NYSE:MMM
3m — Q4 2024 Earnings Presentation
21 slides from 3m's earnings presentation, Jan 21, 2025
Slide 1: 2024 Fourth Quarter Earnings
2024 Fourth Quarter Earnings (unaudited) Bill Brown Anurag Maheshwari Chinmay Trivedi Chief Executive Officer Executive Vice President and Senior Vice President, Chief Financial Officer Investor Relations and Financial Planning & Analysis
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: Strong execution in Q4, capping a solid year
3 Strong execution in Q4, capping a solid year Q4 adjusted results 2024 Accomplishments • Sales of $5.8B, with organic growth up 2.1% YoY ✓ Delivered financial results at the high • EPS of $1.68, down 2% YoY end of our guidance • Free cash flow of $1.3B with conversion of 145% ✓ Spun-off Solventum ✓
Slide 4: Advancing our top priorities
4 Advancing our top priorities • Positive adjusted organic growth in Q4 in all Business Groups Organic • Good progress on commercial execution growth • New product launches up 32% for the year, above expectations • Improving service … OTIF 88% for the year, up 3 ppts Operational • Advancing producti
Slide 5: Our 2025 outlook
5 Our 2025 outlook 2025 Guidance 2025 Macro trends Organic sales growth • Macro environment uneven 2% to 3% • IPI up 1.9% − US and EMEA up slightly … modestly higher than 2024 Earnings per share − China up MSD … slowing vs 2024 $7.60 to $7.90 • Closely monitoring end market dynamics Free cash flow −
Slide 6: Q4 2024 performance
6 Q4 2024 performance Sales ($M) Operating margin Earnings per share $5,808 $1.70 $1.68 $5,682 19.9% 19.7% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 • Organic growth up 2.1% YoY • Operating margin down 20 bps YoY • EPS down $0.02 driven by tax • Market: IPI +1.4%, auto flat, electronics +8% •
Slide 7: Q4 and Full-Year 2024 sales by business group
7 Q4 and Full-Year 2024 sales by business group ($ millions) Safety & Industrial Transportation & Electronics Consumer OSG% $10,961 $7,435* $4,931 $2,703 $1,792* $1,229 +2.4% +0.7% +2.0%* +3.4%* +1.2% -1.2% Q4 2024 FY 2024 Q4 2024 FY 2024 Q4 2024 FY 2024 Q4 commentary Q4 commentary Q4 commentary • T
Slide 8: Full-Year 2024 performance
8 Full-Year 2024 performance Sales ($M) Operating margin Earnings per share 21.4% $23,630 $7.30 $23,321 18.6% $6.04 2023 2024 2023 2024 2023 2024 • Organic growth up 1.2% YoY • Operating margin up 280 bps YoY • EPS up $1.26 or 21% YoY… at the high end of guidance range • All businesses in line with
Slide 9: 2025 guidance components
9 2025 guidance components Organic Sales Growth Earnings per share Free cash flow conversion 2% to 3% $7.60 to $7.90 ~100% • Broad based growth, each BG +LSD • Operating margin expansion in the • Strong earnings growth range of 130 to 190 bps • Growing at or above macro • Capex in line with D&A − Vo
Slide 10: 2025 adjusted EPS guidance drivers
10 2025 adjusted EPS guidance drivers $0.70 to $1.00 ~($0.20) ~($0.20) $7.60 to $7.90 Net interest $7.30 Non-op pension cost Volume Net Productivity Tax Restructuring Share Repo Investments Stranded costs 2024 adj. EPS Operational FX Non-operational 2025 adj. EPS Earnings growth driven by strong ope
Slide 11: Q&A
Q&A Bill Brown Chief Executive Officer Anurag Maheshwari Executive Vice President and Chinmay Trivedi Senior Vice President, Investor Relations and Chief Financial Officer Financial Planning & Analysis 2024 Q4 Earnings | January 21, 2025. All rights reserved.
Slide 12: Adjusted sales recap by geography
12 Adjusted sales recap by geography Q4 2024 Americas EMEA APAC Worldwide Organic growth 1.7 % (2.8)% 5.9 % 2.1 % Acquisitions/divestitures 1.4 % 0.5 % 0.2 % 0.9 % FX (1.0)% 0.2 % (0.8)% (0.8)% Total growth 2.1 % (2.1)% 5.3 % 2.2 % FY 2024 Americas EMEA APAC Worldwide Organic growth 0.5 % (1.3)% 4.4
Slide 13: Q4 2024 P&L
13 Q4 2024 P&L Q4 Q4 YoY YoY GAAP ($M), except per share amounts 2024 2023 Change FY 2024 FY 2023 Change Sales $6,010 $6,002 0.1% $24,575 $24,610 (0.1)% Gross profit $2,266 $2,207 2.7% $10,128 $9,627 5.2% % to sales 37.7% 36.8% 0.9% 41.2% 39.1% 2.1% SG&A $899 $1,016 (11.4)% $4,221 $19,198 N/M % to s
Slide 14: Additional GAAP sales detail
14 Additional GAAP sales detail ($M) GAAP Net Sales GAAP Net Sales Business Groups Q4 2024 Q4 2023 FY 2024 FY 2023 Abrasives 320 322 1,295 1,327 Automotive Aftermarket 312 304 1,235 1,237 Electrical Markets 329 305 1,298 1,285 Industrial Adhesives & Tapes 513 502 2,104 2,051 Industrial Specialties 2
Slide 15: Q4 2024 business segment information
15 Q4 2024 business segment information Adjusted operating income Adjusted operating ($M) Adjusted net sales* Q4 2024 adjusted sales growth* (loss)* margin* Total Q4 Q4 Organic sales Q4 Q4 Percent Q4 Q4 Business Groups 2024 2023 growth FX M&A change 2024 2023 change 2024 2023 Safety & Industrial $2,
Slide 16: FY 2024 business segment information
16 FY 2024 business segment information Adjusted operating income Adjusted operating ($M) Adjusted net sales* FY 2024 adjusted sales growth* (loss)* margin* Total Organic sales Percent Business Groups FY 2024 FY 2023 growth FX M&A change FY 2024 FY 2023 change FY 2024 FY 2023 Safety & Industrial $10
Slide 17: Q4 2024 operating margin and EPS
17 Q4 2024 operating margin and EPS Adj. Adj. operating earnings margin per share Commentary Q4 2023 19.9% $1.70 Operational performance -0.7% $0.00 • Benefits from volume growth, productivity, restructuring more than offset by growth Organic growth/ productivity/other -1.0% -$0.03 investments, abso
Slide 18: Full-Year 2024 operating margin and EPS
18 Full-Year 2024 operating margin and EPS Adj. Adj. operating earnings margin per share Commentary Full-Year 2023 18.6% $6.04 Operational performance +2.4% $0.93 • Primarily benefits from growth, productivity, spending discipline, and restructuring, Organic growth/ productivity/other +2.2% +$0.85 p
Slide 19: Restructuring program largely complete
19 Restructuring program largely complete Overview Results to Date • Program launched in early 2023, ✓ Execution nearly complete (~90% cost & savings) focused on simplification and ✓ Total company headcount including restructuring improved margins reduced by ~8,700 roles (~12% reduction since YE’22)
Slide 20: 2025 key information
20 2025 key information (adjusted basis) 2025 2025 ($M), except per share amounts Guidance ($M) Guidance Organic sales growth 2% to 3% Corp & Unallocated revenue $300M to $350M Divestitures 0.5% Corp & Unallocated op income/ loss(a) ($25M) to ($50M) FX (2.0)% Other category op income/ loss $50M to $
Slide 21: Science. Applied to Life.
Science. Applied to Life.”