Post on 28-Nov-2014
description
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Electro & Communications Business
2008 3M Investor Conference
Joe Harlan – Executive Vice President
For Accelerating GrowthPositioned
2
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Electro & Communications Business
Stronger business footprint has yielded stronger financial results
Growth initiatives materializing nicely
Operational excellence embedded in ECB culture
Market dynamics in infrastructure and electronics favor 3M technologies…time for offense
Lots of Work on the ECB Transformation…Opportunities Abound
Positioned for Accelerating Growth…
3
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
ECB Key Financial Data
$2.5$2.7 $2.8
$1.5
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2005 2006 2007 1H '08
$413$464
$297
$533
$0
$100
$200
$300
$400
$500
$600
$700
2005 2006 2007 1H '08
Revenues Operating Income
V% 4 16.5%6 4 9 17.5% 19.3% 20.1%OI Margin
$ Billi
ons
$ Milli
ons
+12%+15%
+13%
+44%
LAC 9%
Europe 23%
APAC 39%
U.S. 29%
2007 Revenues by Geographic Area
YoY% Chg+5%
CAGR+14%CAGR
4
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
ECB Portfolio Footprint
23%
30% 22%
20%
5%
APAC39%
Europe23%
U.S.29%
LAC9%
Electronics
Infrastructure
Balanced Platform Portfolio…
…And Balanced Proportionately to Global Opportunities
CharacteristicsIntegrated materials science & processing technologiesParticipating in “hot” markets
Infrastructure build / upgradesElectronics market momentum
Go-to-market via OEM, channel pull / push & “Bench-to-Bench” selling (ODMs, CMs)
Strong positions in expanding / upgrading infrastructure (Europe, LAC, APAC)Asia driven by electronics…EE emergingServicing transnational customers globally
Opportunities Across Multiple Platforms and Geographies
5
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Electrical Markets Division
Power Generation Transmission Distribution
Tape Connectors & TerminalsCold Shrink & Heat Shrink Splices & Terminations
Vinyl electrical tapes for insulating and sealingConnecting and terminating underground cablesEMI / RFI shielding and absorbing
Insulating tapes and papersSpecialty high voltage overhead cableResins and conductive tapes
Applications
Solutions
Key Capabilities
Flexible Insulation
6
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
C a m p u s C e n t r a l O f f i c e
C e n t r a l O f f i c e C u s t o m e r
P r e m i s e s
Communication Markets Division
Applications
Central Office Connectivity
Fiber Optic Closures
Copper Aerial Closure
Fiber Optic Splices
Copper Splicing Modules & Connectors
DSL Test Equipment
Copper and Fiber Optic Structured
Cabling
Copper & optical fiber cable…Connectivity - Splicing, terminating, and cross connecting of cable facilitiesManagement – Routing, labeling, identifying, and managing cable facilitiesProtection – Junction points in a network, facilities security, passive and active elements in a network
Copper media layer diagnostics – Identifying and locating faults in a media layer
Solutions
Key Capabilities
7
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Electronic Solutions Division
Flexible fine-pitch interconnectHigh-performance electronic substrate materialsEmbedded capacitance
Component transport and testingStatic control and protection
Flex Circuits Backplane Solutions
Fiber Optic Solutions
Carrier & Cover Tape
Inkjet CartridgeHigh Speed
Cable Assemblies
Applications
Solutions
Key Capabilities
8
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Electronics Markets Materials Division
Specialty fluids & gasesSintered & fixed abrasivesBattery materials
Plastic bonding & hot melt solutionsForm-in-place gasketsThermal management
Chemicals & Gases
Tapes & Bonding Films
Thermally Conductive
MaterialsSemiconductor Materials
Gaskets & Adhesives
Applications
Solutions
Key Capabilities
9
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
3M Touch Systems
Capacitive sensing technology expertiseBending wave technologyTouch electronics and softwareWorldwide customer & engineering support
Applications
Solutions
Key CapabilitiesGlass-based product manufacturingCoating and optics expertiseGaming & retail touch markets expertiseGlobal presence & brand recognition
Retail Industrial Gaming Food Service Transportation Financial
Capacitive – ClearTek II Sensors & EX II Electronics Dispersive Signal Technology (DST)Touch Monitors
10
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
$403 $287 $184
$705 $995 $1,132
$495$581
$843$579
$534
$603
2002 2004 2007
New Strategy Addressed Our ‘1-Trick’ Pony…FlexRevenues
Flex % of OI 87% 43% 11%
An Improved Business Footprint…
Flex Decline Dampens Business Performance…But Balanced Portfolio Management Overcomes the Impact
CMD
EMD
Electronics
Flex
% of Total
27
23
32
18
% of Total
22
24
42
12
% of Total
22
30
41
7
‘02 - ‘07 Change
+15 Pts.
+3 Pts.
+22 Pts.
(19) Pts.
($ Millions) (5%)
+7%
+9%
(11%)
Margin% of Total
11
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
$2.4
$2.2$2.2
$2.4
$2.5
$2.7
$2.8
2001 2002 2003 2004 2005 2006 2007
ECB Revenues
OI% 8% 11% 11% 12% 17% 18% 19%
ROIC 7% 11% 11% 13% 18% 18% 21%
Portfolio Management Yields a Stronger Financial Footprint…
+5% CAGR
(7%)
Ideally Situated to Pursue Growth Opportunities…“Offense vs. Defense” in Growth Markets
($ Billions)
Core growth 8% excluding
Flex
12
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Infrastructure Markets
Energy Demand Drives Bright Electrical Core Outlook
Cap
ital E
xpen
ditu
res
T ime Frame: 15-30Years 10-15Years 10-15Years
Initial Build Phase Optimization Phase Replacement Phase
Building up reliable and costefficient electrical infrastructure
Optim izing the grids for powerquality and power-flow efficiency
Developing in a new competitiveenvironment
Sources: UBS Investm ent Research, T&D and Internal Market Research
Cap
ital E
xpen
ditu
res
T ime Frame: 15-30Years 10-15Years 10-15Years
Initial Build Phase Optimization Phase Replacement Phase
Building up reliable and costefficient electrical infrastructure
Optim izing the grids for powerquality and power-flow efficiency
Developing in a new competitiveenvironment
Sources: UBS Investm ent Research, T&D and Internal Market Research
Time Frame: 15-30Years 10-15Years 10-15Years
Initial Build Phase Optimization Phase Replacement Phase
Building up reliable and costefficient electrical infrastructure
Optim izing the grids for powerquality and power-flow efficiency
Developing in a new competitiveenvironment
Sources: UBS Investm ent Research, T&D and Internal Market Research
Aging infrastructure in developed countries & new infrastructure in developing countries driving massive global investmentTransmission & distribution spend expected to grow at 13% CAGR through 2010
Dynamics
Electrical Markets in the “Sweet Spot”…
Source: Siemens 2006, Boston Consulting Group
13
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Infrastructure Markets
Telecom “Hangover” has Passed…Spending Normalized
Telecom Customer & Broadband Investments
$31B
$63B
$29B
$24B$13B
Worldwide broadband subscribers will double by 2012 to 500 million driving investmentsConsolidation continues…but cyclical spending is still a challenge
Dynamics
Telecom Markets Steady…
14
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Segment Est. 2008 Size($ Billions)
Est. CAGR('06 - '11)
Business $37 6%Communication 439 11%Consumer 206 10%Auto 131 12%Computer 542 12%Gov't / Military 173 6%Industrial 170 8%Instrument 116 8%
TOTAL $1,814 10%
Electronics Markets…Perpetual Growth
Electronics is a $1.8 Trillion Market Growing at 1.5-2X GDP…No Longer Dominated by Computer
Business
Consumer
AutoComputer
Gov't / Military
Industrial
Instrument
Communication
Source: Electronic Outlook Corp., Electronics Industry Outlook Q4 2007
15
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
ECB Has Improved Business & Financial Footprint…
International human capital investmentsLeadership localizationTechnology driven growth…back to “3M DNA”
Supply chain shift…Closer to the customerProductivity: Lean Six Sigma, supplier management, indirect costs, cycle time reductionManiacal focus on service and channel partner intimacy
Market focused / Customer centric go-to-market structureSuccessful NPI program based on VOC and technical differentiationAggressive geographic expansionSelective acquisitions
Simple Approach has Yielded Good Results…Full Speed Ahead
…Driven by a Simple Strategy
Growth(Customers)
Competitiveness(Shareholders)
EngagedEmployees
(Energized)
16
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Incorporating “Classic 3M Technology” into VOC Based Customized Technology Differentiated Solutions…
Running with the Winners
ECB Market-Focused / Customer-Centric ApproachEMMD Focused on Key Electronic Segments / Customers…
$367$452
$501$556
$625
2004 2005 2006 2007 2008E
Semi-conductor HDD MHH Display Printer
Mar
ket
Segm
ent
Cus
tom
erEx
ampl
es TSMCIntelIBMFreescale
SeagateWestern DigitalHitachi
NokiaMotorolaAppleSamsung
LGPhilipsSamsungSharp
HPLexmarkCanonBrother
+14%CAGR
Revenue…Yielding Growth at 2x Market Rates…
$ Milli
ons
17
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
$206$255
$336
$457 $491
$656
$800
2002 2003 2004 2005 2006 2007 2008E
3M Technical Expertise Providing Differentiated Products / Solutions to Customers
Accelerating ‘VOC’ Based New Product GrowthRe-Engineered the NPI Effort…
% of Sales 9% 12% 14% 18% 18% 24% 30+%
+$ M
illion
s
Prioritizing on high probability VOC projectsCapitalizing on international human capital investment (Tech)
+25%CAGR
5-Year New Product Sales*
*Sales of products released within past 5 years.
18
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
117 130
120181
216
191
2006 2007 2008E
$ M
illio
ns
2nd Year1st Year
$237
$311
Shifting Activities Closer to Customers:- Local ‘Centers of Excellence’
- Platform Specific Technology Roadmaps
5-Year 2-Year
’07 ’08 Chg. ‘08
U.S. 64 47 39
Asia 22 31 37
Europe 11 18 21
LA/C 3 4 3
NPI % Origin$407
Ensuring the Sustainability…Focusing on 2-Year New Product Sales*…
Lab Headcount:U.S. 44% 38% 32% Int’l 56% 62% 68%
Int’l Revenue 70% 71% 74%
*Sales of products released within past 2 years.
19
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Austin, TX
Germany
China
Taiwan
FranceTilton, NH
Singapore
St. Paul, MN Korea
Brazil
St. PaulComposite ConductorElectronic Adhesives
FC FluidsBattery Mtls.
AustinMV Cable AccessoriesElec. Tapes/Supplies
Copper & Fiber ConnectorsTest & Measure Instrumentation
ClosuresSpecialty Circuits
Static Control BrazilRubber Tapes
PVC Tapes
NeussHigh Speed Interconnect
Regional Applications Dev.Indoor Copper Connectors
Security SystemsResins
MV Splices
ClusesCross-connect blocks
Gels & GreasesClosures
ChinaElectronic PSA TapesComponent TransportLow-Cost I/O Intercon
High Voltage Acc.Passive Cabinets
KoreaEMI/EMC Tapes
Battery Matls.OCAs
JapanSemicon FinishingMHH InterconnectConsumer CircuitsFiber Connectors
Textool
TaiwanSemicon pkgOEM TapesE-CabinetsSingapore
Consumer CircuitsSC Liquid AdhesivesElectronic Adhesives
CMP Abrasives
India
PolandRussia
RussiaTech Service
PolandTech Service
IndiaHeat Shrink
MV Acc.FTTH
TiltonPaper
Insulation
Investmentsin 2008
Global Centers of Excellence
Technology & Development Expertise Close-to-the-Customer…SPEED to Drive Growth
20
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Market (Customer) PrioritiesMarket (Customer) PrioritiesRegulations broadening from 0-1GHz to 0-3GHz. Miniaturization causing greater EMI issues Driving need for multi functional component
2007 2008 2009 2010 2011Core
Pads
and
Foa
ms
Sing
le C
oat a
nd
Adh
esiv
e Tr
ansf
er
EMD Foil & Fabric Tapes
EMD Sheets & Films
EMD Mesh & Sleeving
EMD Gaskets & Cushions
NTF EMC New Foam
EMI New Foam Gasket
EMI Metal Particle
EMI Metal Oxide Particle
EMC Hybrid
EMD Anti-Static Tape
EMD High Temp Tape
Transparent EMI TapeEMC Absorbing Tape
Conductive Foam Tape
EMI Label
300PL Foil Shield
Z-Axis Acrylic, Epoxy
XYZ-Axis Acrylic, SiParticle based XYZ-Axis
Tape
EMC Adhesive
EMI Absorbers
EMC Conformal & In-Mold Solutions
EMI/EMC Engineered Flex Circuits
Acid Free AdhesiveHigh Pitch
Structural EMC Adhesive
Cap Shield
AB5000RFID Absorber
Conductive Cushion
Compressible Adhesive
Thin Adhesive
Film Impedance Material Low Frequency
Absorber
High Frequency Absorber
Hybrid Absorber
Liquid EMC Material
Advanced EMC
Hybrid Adhesive Multi-layer Adhesive
Basic Material Property Testing
Advanced Modeling & Computation
Engineered Design Capability
2 mil XYZ-Axis Tape
Test
&
Mea
sure
Tech
nolo
gy
Gap
s
Metallurgy Expertise Galvanic Series Materials
ExpertiseCorrosion Electrochemistry
Expertise
Transparent EC Polymers
Advanced Product & PerformanceTest Capability
Precision Pattern Coating
Precision Particle Alignment
Complex Converting Capability
Multilayer Manufacturing
EMI Functional Nano Layers
ExistingExistingInIn--DevelopmentDevelopmentNeed/GapNeed/Gap
LegendLegend
Post Launch/Core NPI/Development
Idea HopperConcepts
LegendLegend
Technology Roadmaps – EMC…
Focused roadmaps for each product family…
Clearly maps out technologies in-house, being developed, and what we need to go get
21
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
0
20
40
60
80
100
120
'02 '03 '04 '05 '06 '07 '08E
$ M
illio
ns
International growth plus competitiveness
Establishing regional sources of supply
Rationalized / sold 7 facilities
‘Lean’ mentality everywhere
International Expansion…Our Biggest Opportunity
Building global technical expertise
Strong local leadership development
75% of electronics business moved to Asia
NPI no longer dependent on US
0
100
200
300
400
500
600
700
800
'06 '07 '08E
90% of Additions Int’l
(Cumulative)
Provides Local Customer Intimacy, Source of Supply, and Speed to Market
2/3 of $ CapEx Int’l OUSUS
$34
$102$93
$76
$46
$63
$43
Capex Human Capital
+300
+415
+725
Shifting Assets Closer to the Customer…
Hea
dcou
nt
22
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
LA/CANEurope / MEAAPAC
International Growth
Key Subs CAGRChina 15%India 59%Taiwan 8%Korea 7%Singapore * 5%Japan * 6%
Key Subs CAGRCEE 17%Middle East 36%Germany 3%France 4%Spain 12%UK / Ireland * 5%
Key Subs CAGRCanada 14%Brazil 22%Columbia 17% Venezuela 30%Chile 13%Mexico 2%
Investing in Higher Growth Regions…Close to the Customer
’05 ’06 ’07 ’08E
APAC Sales+9% CAGR*
Europe Sales+8% CAGR*
L.A. / Canada Sales +28% CAGR*
Recent Investments Gaining Traction…Growth Continues as Organizational Competencies Develop
*Excludes Flex Sales
’05 ’06 ’07 ’08E ’05 ’06 ’07 ’08E
23
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
…Geographic ExpansionMahindra & Mahindra $ 8Giglio $25
Expanding Electronics Footprint… ’08E Rev.
Static Control (Sanford / Santa Cruz) $35Medical Flex (Siemens) $20
…Adjacent Markets…Innovative Paper Technology $30
Watching Environment Closely…in Parallel with ECB Growth Strategy
Opportunistic M&A
24
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
60%
57%56%
55%
'04 '05 '06 '07
Productivity Critical to Maintain ECB Competitiveness
$144$147 $147
$155
'04 '05 '06 '07
$44 $42
$36$39
'04 '05 '06 '07
13%
18% 18%
21%
'04 '05 '06 '07
Lean Six Sigma Benefits… …Supplier Management Savings…
…And High ROIC%…Drives Lower Factory Costs…
ECB Performance Improvement – 2004 to 2007
% to Rev. 6% 6% 6% 6% % of Buy 6% 6% 5% 5%
1 Point is Worth ~ $26 Million
25
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
ECB Service Initiative Correlates to Growth
Service Benefits Growth, Cost, and Cash
81 80 8182 83
80
97
95
90
85
1% 0%
-8%
1%
4%
12%
10%
11%
1%1%
75
80
85
90
95
100
'99 '00 '01 '02 '03 '04 '05 '06 '07 '08E-10%
-5%
0%
5%
10%
15%
OTIF LC Rev. Growth %
LC R
ev. Grow
th %O
TIF
%
Analysis indicates 1/3rd of growth attributable to OTIF improvementService now a 3M differentiator
Share Gains Continue in 2008…Customers Cust. Growth 3M Growth DifferenceCommercial 5% 19% +14 Pts.Utility 2 21 19OEM 8 50 42Acq. (IPT) 0 28 28Core OEM (2) 2 4
Electrical Markets Example…
’99 – ’04 ’05 – ‘08Rev. CAGR 0% 12%OTIF 81% 95%
26
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
High Capacity Conductors
Fiber Solutions
Novec™ Fluids
Form in Place Gasket
Lithium Ion Batteries
Optically Clear Adhesives
Electromagnetic Compatible (EMC) Materials
Transport Tape / Universal Cover Tape
Wind Farms / Solar / Mining
A Healthier Platform Provides Opportunities
Key Components in a Robust Product Line
27
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Unique technology enabling 2x transmission with 50% sag vs. traditional cableValue add applications
Constrained transmission corridorsAging infrastructureLower installation costsLong river / gorge crossing
$1B addressable market today with 6% CAGR
Emerging Market Demand for Power Transmission…
…3M Uniquely Positioned as Scale-up Increases
2004 2005 2006 2007 2008E2004 2005 2006 2007 2008E
Production Scale-up & Cost Productivity will Drive Market Leadership in Transmission Cable
Revenues$ Mfg Cost / Foot
High Capacity Conductors
$ Milli
ons(38%)
(36%)(22%) (21%)
+167%
+50%+17%
+43%
28
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
ECB accelerated organic development for core fiber and connectivity platforms in 2004
$2.3B market with 20% CAGRExpanding geographic and product footprint
Full functioning Euro & APAC labsTransitioning from supplier to consultant
Fiber Solutions…An Emerging Platform
$200
$300
$400
$500
$600
2004 2005 2006 2007 2012E
Rev
($ M
illio
ns)
0%
5%
10%
15%
20%
Copper Sales Copper OI%
CMD Solid in Copper…Cash Cow… …With Growing Fiber Presence…
$0
$50
$100
$150
$200
2004 2005 2006 2007 2012E
Rev
($ M
illio
ns)
0%
5%
10%
15%
20%
25%
Fiber Sales Fiber OI%
Sales CAGR’04–’07 = 1%’08–’12 = 5%
Sales CAGR’04–’07 = 19%’08–’12 = 20%
Organic Position Capitalizing on 3M NPI Expertise…Classic 3M DNA
29
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Novec Fluids…Unique Technology in High Tech Apps
Fluorinated fluids for semiconductor manufacturing, electronics processing, and fire suppression
Safe, sustainable, responsible chemistryHalon replacement technologyBest EHS position vs. competitors
Growing 20+% in $1B, 3% CAGR market
New Applications in Wafer Cleaning & High Boilers…Plus Geographic Share Gains (APAC) Drives Growth
2006 2007 2008E
Revenue
+14%
+13%
30
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Optically Clear Adhesive (OCA)Provides optical bonding for consumer electronic products in touch and key pad applicationsEnables OEMs / ODMs design flexibility for thinner, more attractive devices with improved contrast / brightnessProvides cost savings in processing due to fewer layers in display stack$350M market with 20% CAGR
2006 2007 2008E
Revenue
New Applications with Opportunity for Larger Format Applications
+21%+850%
31
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Electrolyte
Lithium Ion Battery MaterialsGrowing rapidly with expansion of multiple 3M products and technology platforms
Fluorinated electrolytesNMC Cathode powdersSilicon alloy anodesMicro porous films
Strong IP positions provides licensing on manufacturing options
2006 2007 2008E
Revenue
Continued Development of Specialty Formulations & Additives in $3.8B Market
+44%
+50%
32
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Classic 3M tape and adhesive technology applied to rapidly growing EMC & RFID
Current applications in consumer electronics, security, medical, and industrial markets
Customized applications in $1.5B, 9.5% CAGR market
2006 2007 2008E
Revenue
Growing Opportunity Across Multiple Divisions
Electromagnetic Compatible (EMC) Materials
+13%+89%
33
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Packaging media for surface mount technologies
High quality / High performance market position
Enhancing portfolio to capture mid-tier performance market
2006 2007 2008E
Revenue
$300M Market Growing at 6% CAGR
Transport Tape / Universal Cover Tape
+6%(3%)
34
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Splicing Terminating Grounding
Securing & Labeling Marking & LocatingTaping
713 4
2
85 9
Just the Beginning…$12M 2008E Revenue in a Market Growing at 20%
Wind FarmsTailor made applications for electrical construction
Penetrating the global market with cable accessories and supplies in wind farm networks
Opportunities from design to build phase:
Premium performance products
Technical training expertise
Value-add custom kits
35
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Objective is to become the preferred global solar solutions provider
Integrated with “Big 3M” solar effort
‘Bench-to-Bench’ technical support for improved module efficiency through integrated materials technology
On-grid utility and installation support
Offering customized solutions in a dynamic environment
Ingot, Wafer & Cell
ManufactureModule / Panel Manufacture
System Installation &
Operation
• Wafer Process Aides
• Wafer / Cell Transport
• Anti-static Solutions
• Conductive & Insulation Tapes
• Environmentally Protective Resins
• Electrical Connectors
• Light Concentration
• Optically Clear Adhesives
• Thermal Management
• Interconnect solutions
• Splices
• Terminations
• Wire Management Solutions
Solar
$600M Market Growing at 30%...Massive Opportunity for 3M
36
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
MiningOpportunity for the electrical construction market
Increased global penetration of tapes, cable accessories, and splice solutions
Expanded portfolio of new products
Solving cable repair, splicing, and insulation needs
ECB service differentiation compliments product technology
$225M Market Opportunity…$31M in 2008 ECB Revenues
37
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Stronger business footprint yields stronger financial results…Core revenues forecast at 5-8% CAGRSince 2004…Factory cost down 5%, OI up 7%, and ROIC +12%
Growth initiatives materializing nicelyNew products at 30+% of revenues…strong pipelineGeographic asset shift yielding top line and productivity (RSS)Legacy assets pruned…replacing with selective acquisitions
Operational excellence embedded in ECB cultureContinued productivity gains imperative
Market dynamics in infrastructure and electronics favor 3M technologies…time for offense
Focusing on the Customer…Driving to be the Supplier of Choice for Our Industries
Electro and Communications BusinessPositioned for Accelerating Growth…
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
Electro & Communications Business
2008 3M Investor Conference
For Accelerating GrowthPositioned