Electronics & Energy Business Group€¦ · Electronics & Energy Business Group 2015 Sales $5.3B;...
Transcript of Electronics & Energy Business Group€¦ · Electronics & Energy Business Group 2015 Sales $5.3B;...
Electronics & Energy Business Group
Jim Bauman, Executive Vice President
3M Investor Day
March 29, 2016
s
Agenda
Who we are
How we win
Growing the portfolio
Executing our plan
Summary
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Electronics & Energy Business Group is bringing the 3M Vision to life
3M Technology Advancing Every Company
3M Innovation Improving Every Life
3M Products Enhancing Every Home
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Electronics & Energy Business Group 2015 Sales $5.3B; Operating Income Margin 21.1%
$1.3B
Electronics Materials Solutions
Electrical Markets
$1.2B
Display Materials and Systems
$2.0B
$0.4B
Communication Markets Renewable Energy
$0.4B*Refer to 3M’s Form 8-K dated March 15, 2016 for discussion of a product line reporting change involving the Electronics and Energy business segment and the Industrial business segment
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Serving large, growing markets
Utilities
Market size: $3BGrowth: 1-3%
Renewables
Market size: $1BGrowth: 4-5%
Telecommunications
Market size: $12BGrowth: 2-4%
Infrastructure
Market size: $3BGrowth: 1-3%
Growth rate: 5-year CAGR; Source: IHS, 3M estimates
Electronics
Market size: $40BGrowth: 2-4%
Window Film
Market size: $3BGrowth: 3-4%
Construction
Market size: $3BGrowth: 1-3%
Market size: $6BGrowth: 1-3%
Maintenance / Repair
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What we doManage thermal / electromagnetic
interference
Clean and protectConnect energyConnect data
and voiceManage light
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Investing in Innovation
Portfolio Management
Business Transformation
Executing the 3M playbook
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Portfolio prioritization in action 20152012
Re
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Att
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Relative Financial Attractiveness
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Att
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Relative Financial Attractiveness
Reduction from 9to 5 businesses
OI margin improvement of 330 bps
Increased scaleand customerrelevance
Improved productivity, faster execution
Results
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Winning in Electronics Markets
Display Materials Systems
Aligning with customer
roadmaps for displays
that are:
brighter
thinner
more durable
more flexible
more power efficient
Integration of solutions to help customers win
From To
Component mentality Total solution optimization
Thickness = 0.75 mm
Improved performance at 60% reduction in thickness
Integrated display
Frontsurface
Touch
Display
Backlight
Thickness = 2.0 mm
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Winning in Electronics Markets
Electronics Materials Solutions
Integrating our solutions for increased breadth and
relevance across the electronics value chain
Semiconductor manufacturing
Semiconductor packaging
Electronicssub-assembly
Electronicsassembly
Operation and automation
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Data proliferation
Cloud and Big Data
IoT / M2M
Wearables
Mobile devices
Winning in Electronics MarketsLeveraging core technology into semiconductor manufacturing materials
Semiconductor demand
3M differentiated semiconductor materialsMicroreplication for semiconductor quality
Novec™ Advanced Node Photoresist Rinse
$ 8 Billion Semiconductor materialssegment, growing mid-single digits
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Winning in Electronics MarketsInnovation across the transition from LCD to OLED
OLED handheld CAGR to 2020: 22%
$0
$50
$100
$150
2015 2016 2017 2020
LCD OLED
Total display market $B (IHS)
Efficiency Durability Visual quality Design
Functions LCD devices OLED devices
SensorsLight Management
Winning 3M Technologies
Bonding
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Winning in Electronics MarketsExpanding automotive electronics
Infotainment
Powertrain electronics Body
electronics
Advanced driver assistance
Instrument cluster
22
46
78
54
2015 2030
Electronic / Electrical
Body / Chassis / All other
Component costs (% of total vehicle cost)
Source: Lux Research
Existing technology partnerships
Automotive OEMs
Tier one suppliers
Electrical, battery OEMs
Consumer electronics OEMs
3M technology
Battery anode
Display materials
Bonding and optics materials
Thermalmaterials
4622
7854
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Winning in Energy: Key trends and market forces
Globalmegatrends
Aging infrastructure Urbanization
Standards Regulations
Energy reliability and security
Energy efficiency and preservation
Renewables growth Utility model changes
Energy availability and affordability
Market forces
3M relevance
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Winning in Energy Markets Solving emerging energy challenges with technology
Glazing and light management
Energy efficiency
Renewable and distributed power
Energy availability
Grid monitoring and optimization
Energy security
Daylighting optics
Fuel cell Flow battery LiB Si-Alloy anode
Glass fabrication
Power and storage OEM
Utilities
Lead customers 3M technology
Grid monitoring
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Winning in Energy Markets
Increased penetration through new manufacturing capabilities
Market size: $2BGrowing 3%
Market size: $3BGrowing 3-4%
New window films for ease of application and low costs
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Our winning strategy starts with portfolio management and the customer
Building privileged position with customers
Expand 3M Energy
Differentiated new technology platforms
Best-in-class manufacturing and supply chain management
Diverse, inspired global talent
Portfolio prioritization and business transformation
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Technology platform executionBroader, deeper technology engagements with customers enables insight into customer roadmaps
Customer insight 3M technology
Prototypes
Customer feedback
OLED materials
Digitization of energy
Optical interconnect
New products
Enabling the customer’s roadmap
Customer Development Execution
Line of sight with the customer
Iterative development
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3M™ Novec™ Fluids TechnologyExpanding relevance in multiple customer applications
Immersion coolingcooling
Fire suppression Semiconductor
Sustainable chemistry
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3M’s advantage in disruptive technologyPrecision manufacturing for making this tip
You only need to do it 660 times per second for 17 hours … to match 3M microreplication capability
Imagine … driving at 477 mph through a gate, moving 3 mph sideways, with ½ inch of clearance per side….
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Materials Film Coatings ConvertingIntegrated manufacturing
Combined solution delivers a bright, thinner product that is more robust and easier to assemble
50 microns
Separate sheets
How we win through manufacturing and supply chaincapabilities at the speed of market
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Strengthen business through portfolio prioritization and business transformation
Operating Income Margins( % sales)Delivering value
through:
Portfolio Management
Lean Six Sigma
Footprint optimization
20.0%
2015
17.8%
2013 2014
21.1%
*Refer to 3M’s Form 8-K dated March 15, 2016 for discussion of a product line reporting change involving the Electronics and Energy business segment and the Industrial business segment
23. All Rights Reserved.28 March 2016© 3M
Electronics & Energy Business Group is bringing the 3M Vision to life
3M Technology Advancing Every Company
3M Innovation Improving Every Life
3M Products Enhancing Every Home