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Moe Nozari Presentation
- 1. Growth Opportunities in the
Consumer & Office Business
Moe Nozari
Executive Vice President,
Consumer & Office Business
1
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 2. Broad Portfolio of Category Defining Brands
Scotch®
Post-it®
Scotch-Brite™
O-Cel-O™
Scotchgard™
3M™
Filtrete™
Command™
Nexcare™
2
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 4. Consumer And Office Business Summary
Sales Operating Income
$Billions & YOY % Chg $Millions & YOY % Chg
$4.0 $800
$3.4 $692
$3.2 $633
$613
$2.9
$3.0 $600
+8% +9%
+8% +3.4%
+7% $1.7 $345
+10%
$2.0 $400
+5% +1%
$1.0 $200
$0.0 $0
2005 2006 2007 First Half 2005 2006 2007 First Half
2008 2008
LC Growth 6.4% 7.4% 5.0% 0.5% OI Margin 20.9% 20.0% 20.3% 19.9%
2007 Sales By Division
2007 Sales By Geographic Area
Construction & Home
U.S. 59%
Improvement 27%
New Business
Opportunities 6%
LAC 10%
Stationery & Office
Supplies 44%
APAC 13% Europe 18%
Cleaning &Protection
23%
4
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 5. Office and Stationery Market
Specialty Notes
Transparent Tapes Recycled Notes
Cutting Tools
Writing Instruments Collaborative Solutions
Package Protection Adhesives
Laminating Specialty Tapes
Organization Products Pockets
5
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 6. Construction and Home Improvement Markets
Home Filtration Products
Air Cleaning Filters 4” Filters Air Purifiers Water Filtration
Safety Products
6
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 7. Cleaning and Protection Market
Retail
Kitchen Bathroom Grooming
Floor Chemicals
Pet Hair
7
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 8. Consumer Health Care
First Aid Tapes Cold Sore Treatment
Bandages
Skin Care
Hot / Cold Therapy
Wound Care
Active™ Line
Braces & Supports
First Aid Supplies
8
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 9. Growth Drivers
New Platforms
Core Product Extensions
Key Account Partnerships
International Expansion
9
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 10. Growth Drivers
New Platforms for Growth
Expansion Through Our Core Products
Close Partnership With the Key Accounts
Improved International Penetration
10
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 13. Filtrete® Air Cleaning Filters in Aisle
MPR – 1500
$18.88
(500 Stores)
MPR – 1200
$12.88
MPR – 700
$7.96
MPR – 300
$3.88
13
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 14. Filtrete® Room Air Purifier Product Line
14
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 15. Command® Hooks
Elegant
with fun
Elegant
and
young
Fun
15
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 17. High Design and Performance in New Scotch® Scissors
KIDS
Playful
Emotional
STUDENT
Creative
Provocative
WOMEN
Elegant
Emotional
Status
17
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 18. Scotch® Lint Rollers and Fur Fighters
18
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 19. Growth Drivers (cont’d)
New Platforms for Growth
Expansion Through Our Core Products.
Close Partnership With the Key Accounts
Improved International Penetration
19
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 24. Scotch-Blue™ Painter’s Tape
DIY Tape Sales Mix
27%
32%
36%
38%
42%
73%
68%
64%
62%
58%
2003 2004 2005 2006 2007
Value-priced tan masking tapes
Scotch-Blue™ Painter’s Tape
24
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 27. Sustainability in New Products
New ScotchgardTM VPI
Packages and dispensers Scotch-Brite® wipes and
Recycled Post-it® Notes from recycled DBEF waste scourers from natural and
recycled fibers
27
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 28. Market Segmentation
Premium
Brand
Brands
Price
Private Label
Opening Price Point
28
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 29. Market Segmentation
Premium Brand
Brands
Price
Private Label
Opening
Price Point
29
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 30. Transparent Tape Value Map
$3.19
$3.09
$1.99
$1.49
Pop-Up
dispenser +
$1.39 4 tape pads
Price**
$1.19
$.99
$.89
Private Label **Average Retail Prices
Quality
30
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 31. Scotch-Blue™ Painter’s Tape in Lowe’s Bay
Applicator
M3000
Refill
$34.98
$5.98
2030
2080
$9.98 $4.98
2090 2020
Applicator $3.98
$8.98
5142
2090
$2.48
$6.97
31
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 32. Repositionable Notes Value Map
$5.00
$4.36
$2.03
Price**
$1.85
$1.62
$0.63
$0.62
Quality
* Approximate list price per pad
32
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 33. Growth Plan-Construction & Home Improvement
Current Future*
Origin
*Includes all areas
in “Current”
Exterior Hardwood Floor
Flexible
Abrasives Safety Solutions
Maintenance
Abrasives
Aerosol Adhesives,
Outdoor
Carded &
Adhesives
Tapes Usage Sealants
Masking Duct
Blue Masking
Contractor
Tape Systems Tape
Solutions Protection
Painting
Films
Products
Repair and
Applicators
Maintenance
Deep Water Air
1” Filters Thermostats
Filters Quality Quality
Indoor
Room Air Water
Air Conditioner Water
Moisture
Filters
Purifiers Conservation Treatment
Control
Picture
Interlocking
Utility Designer Hanging
Faux Metal Kitchen
Hooks Hooks Hooks Organizers
College Utility Garage Children
Solutions Bath Solutions Solutions
Mounting Bath
Organization
Strips
33
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 34. Growth Drivers
New Platforms for Growth
Expansion Through Our Core Products
Close Partnership With the Key Accounts
Improved International Penetration
34
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 35. One Company, One Voice Strategy
3 Team Customer
Sales Buyer
M Trade Merchan-
Marketing dising
Store Op
Cust
Logistics Serv Warehousing
MIS Finance
Finance MIS
New
Ad/ Ad/
Planning
Products
Promotion Promotion
International International
Executive Executive
35
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 38. Larger and Redesigned Post-it® Planogram at Staples…
2007 Planogram
BEFORE
8 ft, 22 Private Label SKU’s
2008 Planogram
AFTER
16 ft, 3 Private Label SKU’s, Front of
the store
38
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 39. Factors Favoring 3M With Key Accounts
Innovative products
Category defining brands
Good growth margins for the accounts
Good value to the end users
Innovative marketing
– e.g., YouTube
39
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 40. Growth Drivers
New Platforms for Growth
Expansion Through Our Core Products.
Close Partnership With the Key Accounts
Improved International Penetration
40
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 41. Relative Market Penetration Index
100%
32%
21%
15%
$0
US Europe/US APAC LAC
MEA
Sales Penetration
41
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 42. 3M Task Light
42
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 43. …Was Replicated In Taiwan
Filtrete™
UVA 1000
Countertop
Water
Filtration
43
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 45. Floor Care in Carrefour Thailand
45
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 46. Scotch-Brite® - Brazil
46
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 47. Global Replication of 16 foot Planograms
China Korea
Japan Australia
47
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 48. Global Replication of Post-it® Note Displays
Argentina Guatemala Colombia Thailand
48
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 49. Korea Train Post-it® Super Sticky Promotional Event
49
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference
- 50. Summary
Difficult Macroeconomic Issues in the U.S.
Great Technologies
String of New Products
Excellent Support from the Key Accounts
Global Reach
Enduring Franchise
50
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference