2018 Investor Day...Data centers •Increased data loads and server speeds creating unique...
Transcript of 2018 Investor Day...Data centers •Increased data loads and server speeds creating unique...
Ashish Khandpur, Ph.D.
Executive Vice President
November 15, 2018
2018 Investor Day Electronics & Energy Business Group
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Agenda: Electronics & Energy Business Group
2018 Investor Day | Nov 15, 2018
Overview
Journey so far and path forward
Platforms for growth
Summary
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2018e sales
$5.5B*
• Our customers are global leaders in the dynamic technology, automotive and energy industries
• We leverage 30 of the 46 3M core technologies to enable our customers’ next generation products
Electronics & EnergyAdvancing a connected world
Energy
$1.5BElectronics
$4.0B
*Includes partial year sales of divested communication markets buisness
Enhancing visual experiences
Enabling high-speed data processing
Improving reliability and efficiency of energy delivery
Advancing distributedpower network
Advancing the future of mobility
Advancing design and function
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Our journey
From 9 divisions to 3 ~900bps margin expansion
2018
Financial attractiveness
Str
ate
gic
att
rac
tiv
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2013
Financial attractiveness
Str
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rac
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~18%
~27%
2013* 2018e
• Conducted extensive portfolio management, project prioritization, and footprint actions
• Created scale to drive efficiencies and took strategic cost actions
• Built an agile team and positioned for sustainable and profitable growth
* 2013 amount is on a different presentation basis than that of 2018; see 2018 Investor Day Appendix presentation for additional information.
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Our approach to growth
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This is what we do…
Televisions
OLED andfoldable displaysPhones
Wearables
Origins Established Emerging
Display solutions
LCD displays
Virtual realityoptics
Automotivedisplays
Head-updisplays
eMirrors
Augmentedreality
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Electronic and display materials
Segment opportunity
$25B
• Continued demand for enhanced display performance and functionalities
• 3M creating differentiated solutions for LCD displays and bringing game-changing innovation to OLED displays
• Expanding in new applications beyond displays
Display enhancement films (OLED & LCD), optically-clear adhesives, and electronics assembly solutions
Wireless power charging, EMI shielding, advanced finishing and enclosure materials for current and 5G networks
Growing 1% to 5%
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Segment opportunity
$10B
Utilities and modern grids
• Grid reliability and renewable energy adoption are driving modernization of power infrastructure
• Needs for underground asset management, real-time grid monitoring, load balancing, and fault location
• 3M innovating in easy-to-install cable connectors and sensored cable accessories for real-time asset monitoring and fault detection
Robust, easy-to-install 3M connectors
3M sensored cable accessories
3M products for underground asset monitoringGrowing 2% to 5%
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Segment opportunity
$8B
Auto electrification: focus on quality, safety and range
AutoDisplays(Human Machine Interface)
1Battery solutions
2Light-weighting and assembly solutions
3
Growing 8% to 10%
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• Demand for more information, connectivity and ‘consumer electronics like’ experiences
• Opportunity for rich and interactive displays that enhance visibility and safety
• 3M’s light-management expertise enabling glare free, evenly lit center stack displays, camera displays for rear- and side-view mirrors, and head-up displays that can span entire windshields
Center stack display, and camera displays replacing rear- and side-view mirrors
Auto electrification: capitalize on display growth
Head-up displays for smart signs and road furniture
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• Need to address EV design challenges around battery safety, efficiency, and assembly to maximize range
• 3M thermal management pads and fluids, insulation tapes, cushioning materials improve safety, life and performance of battery packs
• 3M adhesives and tapes provide bonding solutions in battery packs
Auto electrification: battery solutions
Novec™ sustainable performance fluids
Immersion cooling for EV batteries
3M battery bonding and assembly solutions
3M thermal interface and conductive materials
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• Artificial Intelligence, automation, cloud, and 5G driving semiconductor growth and wafer starts
• 3M Chemical-Mechanical Planarization solutions (pads and pad conditioners) improve wafer polishing and yield
• 3M high performance fluids are used in semiconductor in-process cleaning and preparation steps and to enable efficient heat transfer in chiller applications
Segment opportunity
$6B
Semiconductor
3M pads and pad conditioners 3M carrier and transport tapes3M high performance fluidsGrowing 5% to 8%
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Segment opportunity
$2B3M TwinAx™ interconnects for fast data transfers
Server immersion cooling with 3M performance fluids
Data centers• Increased data loads and server speeds creating unique challenges
for data centers
• Need for efficient cooling of servers, low latency, and reliable supply of power in data centers
• 3M high performance fluids for thermal management, interconnect solutions for high speed data transfer, and cable accessories to ensure reliable power supply
3M power cable accessoriesGrowing 15% to 25%
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Renewable energy
• Renewable energy continues to become a greater portion of the overall global energy mix
• 3M light redirecting films, tapes and materials enable high efficiency solar panels; 3M ultra-barrier film for flexible solar
• 3M wind protection tapes help improve turbine uptime; 3M cable accessories enable reliable power generation
Segment opportunity
$2B3M power cable accessories3M wind protection tapes protect
and improve performance3M light redirecting film improves solar cell efficiencyGrowing 5% to 10%
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Summary
Organic local-currency growth
2019 – 2023
2% to 6%• Expanding and extending our transformation journey
• Working closely with our customers, strengthening the core and accelerating expansion infast-growing segments
• Innovating for profitable and consistent growth by winning specs in long-cycle segments like automotive, semiconductor and data centers
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