Moe S. Nozari Executive Vice President, Consumer and Office Business

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Moe S. Nozari Executive Vice President, Consumer and Office Business

  1. 1. Growth Opportunities in the Consumer & Office Business Moe Nozari Executive Vice President, Consumer & Office Business 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  2. 2. Office And Stationery Market 1 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  3. 3. Construction And Home Improvement Market 3 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  4. 4. Cleaning And Protection Market 3 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  5. 5. Consumer Health Care Market 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  6. 6. 3M Consumer & Office: Key Financial Data Sales Operating Income $Billions & YOY % Chg $Millions & YOY % Chg $3.0 $561 $600 $2.9 $514 $3.0 +5% +9% $2.6 +10% +17% $438 +6% $400 +4%* $2.0 $200 $0.8 $1.0 $136 +7% +19% $0 $0.0 2003 2004 2005 Q1 2006 2003 2004 2005 Q1 2006 LC Growth 2.8% 7.1% 3.6% 8.4% OI Margin 16.6% 17.7% 18.5% 17.8% 2005 Sales By Geographic Area U.S. 59% LAC 9% *2002 estimated stock options, not restated. APAC 13% Europe 19% 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  7. 7. Consumer And Office Business Growth Driver: End User Relationships Scotch® Post-it® Scotch-Brite™ O-Cel-O™ Scotchgard™ 3M™ Filtrete™ Command™ Nexcare™ 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  8. 8. Consumer And Office Business Major global opportunities 1.Growth through new growth platforms 2.Growth through core platforms 3.Growth with key accounts 4.Growth in international 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  9. 9. Consumer And Office Business Major global opportunities 1.Growth through new growth platforms 2.Growth through core platforms 3.Growth with key accounts 4.Growth in international 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  10. 10. Consumer And Office Business Home Health Care Speed To Market: Utilize Proven Formulations & Technologies from the Hospital Markets to Grow within Consumer (Retail) Markets Key Customers Ready To Execute After Surgery Care: 52 Million Surgical Procedures 37 Million Require Post Op First Aid Dressings Major Surgeries Require Dressings for Up to 7 Days Education: Clean, Protect, & Cover > Nurse > Pharmacist > Caregiver > Patient 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  11. 11. Consumer And Office Business Air & Water Quality Core Technology Brand Promise Consumer Needs Global Applications Adjacent Markets 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  12. 12. Consumer And Office Business Digital To Consumable Platform Initial Products – Post-it® Picture Paper - Specialty Coated Paper with Super Sticky Adhesive, on Liner for Inkjet Printer Applications Timing & Key Launch Milestones – National Launch (April) 1 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  13. 13. Consumer And Office Business The World's Most Innovative Companies Their creativity goes beyond products to rewiring themselves. Business Week and the Boston Consulting Group rank the best 3M Ranked #3 Out Of The Top 100 “A close watch of customer insights can also bring innovation to even the most iconic and established products” ~ BusinessWeek: April 24, 2006 Special Report on Innovation, on the introduction of 3M’s new Post-it® Picture Paper 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  14. 14. Consumer And Office Business Cold And Flu Prep Kit The new Nexcare™ Cold and Flu Kit will include products, in a convenient package, that can help limit the spread of germs that may cause colds Development Of and flu. Kit And Individual The kit will contain a guide from the Centers for Disease Control and Prevention. The CDC recommends alcohol- Products based sanitizing products to help limit the spread of germs. Product labeling under development 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  15. 15. Consumer And Office Business Pet Care Market Evaluation – $4.0 B Market – Lack of large brands outside of food – Fragmented competition – Lack of real innovation from current industry players – Price insensitivity among pet owners – Continued growth 3M Solutions – Dog Ear Cleaning Products – Dry wipes – Specialty cleaning products – Lint and Hair Removers for Pet Owners – Dog Dental Hygiene Products – Liquid bandages 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  16. 16. Consumer And Office Business New Products: New To The Market Products Post-it® Picture Paper Post-it® Index Cards Scotch® Paper Cutter Scotch® Stretchy Tape Scotch – BriteTM Super Cling Scotch – Brite® Disposable Toilet Scrub Scotch – Brite® Tub and Tile Cleaner Scotch – Brite® Lint Removal Floor Roller Filtrete TM Room Air Purifier Super Close Projection DMS 700 and DMS 800 Digital Projectors 3M Pet Care Products 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  17. 17. Consumer And Office Business Existing Markets and New Growth Platforms Total Market Space = $46.7B New Growth Platforms $14.8B Existing Markets $31.9B Market 15% Growth Market 4% Growth $2,761 $5,100 $800 $500 $5,500 $700 $3,800 $350 $1,600 $4,000 $4,600 $8,300 $4,100 $4,550 Office Supplies Home Cleaning Products Digital 2 Consumable Food Storage Stationery Products Consumer Health Care Products Home Health Care Labels & Systems Meeting Management Products Pet Care Construction & Home Air Quality Improvement Products Water Quality VikuitiTM Super Close Projection 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  18. 18. Consumer And Office Business Major global opportunities 1.Growth through new growth platforms 2.Growth through core platforms 3.Growth with key accounts 4.Growth in international 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  19. 19. Consumer And Office Business New Products: Product Upgrades & Line Extensions Filtrete TM Maximum Allergen Filter Filtrete TM Refillable Filter Sandblaster TM Flexible Sanding and Finishing Abrasive System New Chemistry Scotchgard® Stain Resistant Casual Wear Treatment New Chemistry Scotchgard® Stain Resistant Durable Carpet Treatment Scotch® Contour Tapes Scotch® Gluguls Scotch® Blue Masking Tape for Delicate Surfaces Scotch® Blue Masking Tape Applicators Scotch® Heavy Duty All Weather Duct Tape CommandTM Metal Hooks CommandTM Bathroom Accessories Nexcare TM Post-Surgery Kits Nexcare TM Liquid Bandages Nexcare TM Braces and Supports 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  20. 20. Reinventing The “Look” Of Scotch® Magic Tape On the Fast Track 1 Scotch® 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  21. 21. Package Protection Dispensers Transforming the form of utilitarian tools… 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  22. 22. Introducing The New Sticky Bunch On the Fast Track Scotch® 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  23. 23. 1 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  24. 24. 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  25. 25. Consumer And Office Business 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  26. 26. Growth Path Consumer Health Care (Nexcare™) Origin Current Future Skin First Aid First Aid Braces and Supports Hand Sanitizer Care Bandages Supplies Infection Skin Post-Surgical Incontinence Prevention Health Care Diabetic Skin Care 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  27. 27. Office and Stationery Products Origin Current Future Flag Super Sticky Core Core Pen/Highlighter Sortable Cards Specialty Notes Flags Notes Kids Education & Durable Creativ ity Products Index Tabs Post-it® Ergonomic Super Note Pads Flexible Dry Mobile Worker Digital to Sticky Products Consumables Erase Sheets Accessories Notes Document Scotch® Gifting Gifting Easels Management Accessories Cellophane Tape Document Adhesive Item Gifting Management Tracker Center Overhead Projector Package Home MultiUse Memory Protection Management Activities Tape Overhead Package Home Protection Acti vities Std Digital Transparency Films Ov erhead Projection Overhead Transparency Analog Super Close Digital Projection Films Projection for Annotation Small Office Digital Analog Digital Super Close Super Close Projection for Super Close Projection for Business and Home Digital Wall Projection for Std Digital Gaming Entertainment Education Display Projection 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  28. 28. Growth Plan Construction and Home Improvement Origin Current Future Hardw ood Floor Contractor Exterior Abrasives Safety Solutions Solutions Maintenance Outdoor Protection Masking Duct DIY Adhesives Usage Films Abrasives Repair and Applicators Painting Contractor Maintenance Products Solutions Tapes Deep Filters Air Quality Ther mostats 1” Filters Water Mold Room Air Air Conditioner Dehumidifiers Humidifiers Elimination Purifiers Filters Designer Inter Kitchen Picture Hooks Utility Hooks Organizers Locking Hanging Command™ On a Roll Mounting Utility Garage Bath Children Strips Solutions Organization Solutions Bath 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  29. 29. Growth Plan Home Care Origin Current Future Quick Wiping Quick Wiping Sensing Clean Products Wipes Clean Products Cleaning Scouring Floor Preventio & Care n Scrubbing Products Scotch- Brite™ Pads Scouring & Floor Care Usage Scrubbing Products Sensing Scotchgard® Techn. Lint Fabric Protector Pet Removal Care Food Prep Lint Removal Products Products / Food Storage Retail Premium Warranty OEM Scotchgard® Surfaces Services Carpet Automotive Commercial Wrinkle/Color Carpet Management Furniture Apparel Hard Surface Flooring Leather 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  30. 30. Consumer And Office Business Major global opportunities 1.Growth through new growth platforms 2.Growth through core platforms 3.Growth with key accounts 4.Growth in international 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  31. 31. Consumer And Office Business 2005 Trade Class Growth/Comparison Trade Class Total Growth % Comp. Growth % 3M Growth % Top Mass Accounts 10.0 4.2 13.6 Top Clubs 9.2 5.5 12.8 Top Home Centers 13.7 4.5 11.7 Top Drug Chains 16.1 7.5 19.0 TOTAL 11.4 4.8 13.2 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  32. 32. Consumer And Office Business Major global opportunities 1.Growth through new growth platforms 2.Growth through core platforms 3.Growth with key accounts 4.Growth in international 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  33. 33. Consumer And Office Business Growth in international Innovative new products Increased penetration of existing products Key account focus 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  34. 34. Consumer And Office Business Market Penetration 100% $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 32% $0.6 21% $0.4 15% $0.2 $0.0 $0 US Europe/US APAC LAC MEA Sales Penetration 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  35. 35. Carrefour - China 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  36. 36. Consumer And Office Business RT- Mart Zhabei - 40 Feet Planogram 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  37. 37. Casino Hyper-Market - Brazil 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  38. 38. Consumer And Office Business New Wal*Mart / BOMPREÇO Brazil 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved
  39. 39. Consumer & Office Business Consumer And Office Business Summary 5 - 8% growth expectation Outpacing industry growth Unique, high - quality products Category defining brands World - class supply chain performance Solid, growing customer relationships Global network Our Success is Another Manifestation of 3M Our Success is Another Manifestation of 3M Innovation Innovation 3M Investor Meeting 2006 © 3M 2006 All Rights Reserved

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