c4a69c55858ac7e23a638955a2db59c9b261597fdd1d93a96d1103442eec02c4

| Segment/Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Safety and Industrial        | **2,735**  **[0000066740-23-000018_a22123mini8-kex99.htm:1]**  | **2,779**  **[0000066740-23-000023_a2023q1-8kerexx991.htm:8]**  | **2,765**  **[0000066740-23-000058_mmm-20230630.htm:7]**  | **2,751**  **[0000066740-23-000092_mmm-20230930.htm:99]**  | **2,661**  **[0000066740-24-000005_a2023q4-8kerexx991.htm:11]**  | **2,732**  **[0000066740-24-000051_q12024-8kerexx991.htm:9]**  | **2,759**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **2,767**  **[0000066740-24-000101_mmm-20240930.htm:100]**  |
| Transportation and Electronics| **2,055**  **[0000066740-23-000018_a22123mini8-kex99.htm:1]**  | **2,050**  **[0000066740-23-000023_a2023q1-8kerexx991.htm:8]**  | **2,191**  **[0000066740-23-000058_mmm-20230630.htm:7]**  | **2,171**  **[0000066740-23-000092_mmm-20230930.htm:101]**  | **2,089**  **[0000066740-24-000005_a2023q4-8kerexx991.htm:11]**  | **2,104**  **[0000066740-24-000051_q12024-8kerexx991.htm:9]**  | **2,143**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **2,139**  **[0000066740-24-000101_mmm-20240930.htm:79]**  |
| Health Care                  | **2,044**  **[0000066740-23-000018_a22123mini8-kex99.htm:1]**  | **2,010**  **[0000066740-23-000023_a2023q1-8kerexx991.htm:8]**  | **2,075**  **[0000066740-23-000058_mmm-20230630.htm:7]**  | **2,073**  **[0000066740-23-000092_mmm-20230930.htm:102]**  | **2,037**  **[0000066740-24-000005_a2023q4-8kerexx991.htm:11]**  | **2,017**  **[0000066740-24-000051_q12024-8kerexx991.htm:9]**  | N/A | N/A |
| Consumer                     | **1,244**  **[0000066740-23-000018_a22123mini8-kex99.htm:1]**  | **1,192**  **[0000066740-23-000023_a2023q1-8kerexx991.htm:8]**  | **1,293**  **[0000066740-23-000058_mmm-20230630.htm:7]**  | **1,315**  **[0000066740-23-000092_mmm-20230930.htm:103]**  | **1,226**  **[0000066740-24-000005_a2023q4-8kerexx991.htm:11]**  | **1,140**  **[0000066740-24-000051_q12024-8kerexx991.htm:9]**  | **1,263**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **1,299**  **[0000066740-24-000101_mmm-20240930.htm:79]**  |
| Corporate and Unallocated    | **1**  **[0000066740-23-000018_a22123mini8-kex99.htm:1]**  | N/A | **1**  **[0000066740-23-000058_mmm-20230630.htm:7]**  | **2**  **[0000066740-23-000088_a2023q3-8kerexx991.htm:10]**  | **0**  **[0000066740-24-000005_a2023q4-8kerexx991.htm:11]**  | **10**  **[0000066740-24-000051_q12024-8kerexx991.htm:9]**  | **86**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **81**  **[0000066740-24-000101_mmm-20240930.htm:79]**  |
| Other                        | N/A | N/A | N/A | N/A | N/A | N/A | **4**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **8**  **[0000066740-24-000101_mmm-20240930.htm:79]**  |

b07e377ae6516327f62fdef70f88e16a4bc618c65542569dcd58c8c598e36f1e

3M is a diversified global manufacturer and technology innovator, operating across four main business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer **[0000066740-24-000016_mmm-20231231.htm:4]** **[0000066740-24-000016_mmm-20231231.htm:35]** **[0000066740-24-000016_mmm-20231231.htm:50]**. The company develops and sells a wide range of products, including industrial abrasives, electronics assembly solutions, and consumer bandages, leveraging its technological innovations and global reach to maintain a strong market presence **[0000066740-24-000016_mmm-20231231.htm:179]** **[MMM_3403182_3]** **[0000066740-24-000016_mmm-20231231.htm:179]**. Recently, 3M spun off its Health Care segment as Solventum, which was a substantial part of its business **[0000066740-24-000080_mmm-20240630.htm:84]** **[0000066740-24-000023_pressrelease3-8x24.htm:1]**.

1. **Safety and Industrial** - Offers industrial abrasives, autobody repair solutions, and personal safety equipment, significantly contributing to the company's revenue **[0000066740-24-000016_mmm-20231231.htm:179]**.
2. **Transportation and Electronics** - Provides advanced materials, electronics assembly solutions, and reflective signage, with strong growth observed in electronics **[MMM_3403182_3]** **[0000066740-24-000016_mmm-20231231.htm:179]**.
3. **Health Care** - Previously included health care coding software, wound care products, and filtration systems before being spun off as Solventum **[0000066740-24-000080_mmm-20240630.htm:84]** **[0000066740-24-000023_pressrelease3-8x24.htm:1]**.
4. **Consumer** - Supplies consumer bandages, cleaning supplies, and stationery, with sales affected by seasonality, especially during back-to-school periods **[0000066740-24-000016_mmm-20231231.htm:179]**.

0334335d899f2b5b4377a2a0e6fb8756c19293e66385051d84f1d8ecfcec5ab6

| Metric [USD Million] | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2023 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas             | **4,375**  **[0000066740-24-000053_mmm-20240331.htm:6]**  | **3,480**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **3,484**  **[0000066740-24-000101_mmm-20240930.htm:9]**  | N/A     | **4,399**  **[0000066740-23-000028_mmm-20230331.htm:81]**  | **4,678**  **[0000066740-23-000058_mmm-20230630.htm:91]**  | **4,769**  **[0000066740-23-000092_mmm-20230930.htm:93]**  | N/A     |
| Asia Pacific         | **2,106**  **[0000066740-24-000053_mmm-20240331.htm:6]**  | **1,721**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **1,783**  **[0000066740-24-000101_mmm-20240930.htm:9]**  | N/A     | **2,180**  **[0000066740-23-000028_mmm-20230331.htm:81]**  | **2,134**  **[0000066740-23-000058_mmm-20230630.htm:91]**  | **2,097**  **[0000066740-23-000092_mmm-20230930.htm:93]**  | N/A     |
| EMEA                 | **1,522**  **[0000066740-24-000053_mmm-20240331.htm:6]**  | **1,054**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **1,027**  **[0000066740-24-000101_mmm-20240930.htm:9]**  | N/A     | **1,452**  **[0000066740-23-000028_mmm-20230331.htm:81]**  | **1,513**  **[0000066740-23-000058_mmm-20230630.htm:91]**  | **1,446**  **[0000066740-23-000092_mmm-20230930.htm:93]**  | N/A     |
| Worldwide Total      | **8,003**  **[0000066740-24-000053_mmm-20240331.htm:6]**  | **6,255**  **[0000066740-24-000080_mmm-20240630.htm:8]**  | **6,294**  **[0000066740-24-000101_mmm-20240930.htm:9]**  | N/A     | **8,031**  **[0000066740-23-000028_mmm-20230331.htm:81]**  | **8,325**  **[0000066740-23-000058_mmm-20230630.htm:91]**  | **8,312**  **[0000066740-23-000092_mmm-20230930.htm:93]**  | N/A     |

13c7447108350bb439dde76016638f6feb9b5e55d3dd8e638999c7323de65ec9

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

6f1c35bfcd4cc12fd200f983caebc07fb1bc305e989bd8c19bab53e6fb530a1d

- **Significant EPS growth driven by operational performance**: 3M expects adjusted EPS growth of **$0.70 to $1**, or **10% to 14%**, excluding non-operational items in 2025. This growth is propelled by sales volume leverage (a **2.5%** volume increase with **35%** incrementals), lower restructuring costs (a **$200 million** tailwind), and net productivity improvements of **$150 million**.  **[MMM_3412873_8]**
- **New product launches driving growth in 2025**: The company is optimistic about its abrasives business due to the launch of **Cubitron 3**, a new product offering with tremendous differentiation versus competitors. This is expected to improve performance and help turn around previously declining segments in 2025.  **[MMM_3412873_20]**
- **Positive momentum in industrial order rates**: 3M observed steady order rates in its industrial portfolio in Q4 2024, slightly higher than in Q3, with some backlog building into 2025. This provides confidence in achieving at least the **2.1% organic growth** seen in Q4 as a floor for 2025.  **[MMM_3412873_13]**

de629efb2f72a2637174b16e4c4221fb2bdc9bcee55526f6b52a0281c51f9226

- 3M anticipates **slowing growth in China in 2025**, expecting revenue growth to be in the **low single-digit range** compared to **10% growth in 2024**, which may impact overall company sales as China accounts for about **10% of revenues**.  **[MMM_3412873_23]**
- **PFAS stranded costs** are projected to be a headwind of approximately **$100 million** in 2025, particularly affecting margins in the Transportation and Electronics Business Group, which may weigh on overall profitability.  **[MMM_3412873_8]** **[MMM_3412873_14]**
- Efforts to **reduce inventory days** may negatively affect **service levels (OTIF)**, as the company experienced **lower OTIF in one segment** when inventory levels were improved in Q4, indicating that inventory reduction could impact customer satisfaction and sales.  **[MMM_3412873_27]**

49ba56f2d5411162846110d3e430ff3101109851c986654cea4b1bc5dc90abf3

1. **Top-Line Growth and New Products**  
   **Q:** How have new product launches impacted top-line growth?  
   **A:** William Brown explained that while new product introductions exceeded expectations in 2024, their impact on top-line growth has been modest due to most being Class 3 products with light initial sales. He expects more significant top-line impact in 2025 as they launch more Class 4 products with higher sales potential.  **[MMM_3412873_7]** 

2. **Margin Expansion and EPS Growth**  
   **Q:** Can you provide details on margin expansion and EPS growth drivers?  
   **A:** Anurag Maheshwari outlined that at the midpoint of EPS guidance (10% to 14% growth), three factors contribute: significant volume leverage from **2.5% volume growth** with **35% incrementals** (about **$200 million**), lower restructuring costs providing a **$200 million** tailwind, and net productivity gains of **$150 million**, despite **$100 million** in PFAS stranded costs.  **[MMM_3412873_8]** 

3. **Pricing Assumptions for 2025**  
   **Q:** What are your pricing assumptions for 2025?  
   **A:** William Brown indicated that while they are not disaggregating organic growth, they expect price increases to continue covering material cost inflation, resulting in a net positive impact on growth in 2025.  **[MMM_3412873_11]** **[MMM_3412873_17]** 

4. **Free Cash Flow Conversion**  
   **Q:** What is your free cash flow conversion expectation for next year?  
   **A:** Anurag Maheshwari stated they achieved **111%** free cash flow conversion in 2024, improving cash conversion cycle by **8 days**. For 2025, they aim for **100%** conversion, balancing investments and working capital needs, with potential to exceed this target if inventory reductions offset receivable increases from revenue growth.  **[MMM_3412873_19]** 

5. **China Sales Outlook**  
   **Q:** Can you elaborate on your expectations for China sales?  
   **A:** William Brown noted that while macro forecasts indicate a slowdown, they anticipate their China business to grow in the low single-digit range in 2025, compared to about **10%** growth in 2024, with **China comprising 10%** of their global revenue.  **[MMM_3412873_23]** 

6. **Update on Insurance Recoveries**  
   **Q:** Any updates on insurance recoveries related to litigation?  
   **A:** William Brown reported recovering **$170 million** in Q4, totaling **$340 million** to date, mostly related to Combat Arms litigation. The company is actively pursuing recoveries and expects insurers to honor their commitments.  **[MMM_3412873_24]** 

7. **Industrial Demand Trends**  
   **Q:** Did the industrial demand uptick in Q4 continue into January?  
   **A:** William Brown observed steady order rates through Q4, slightly higher than Q3, with backlog built into 2025. He noted these are positive indicators suggesting modest improvements in industrial markets, though it's still early in the year.  **[MMM_3412873_13]** 

8. **T&E Segment Margin Weakness**  
   **Q:** Why was T&E segment margin weaker in Q4?  
   **A:** Anurag Maheshwari explained that seasonal factors like underabsorption due to inventory reductions (improved inventory by **8 days**), growth investments, and FX impacts lowered margins in Q4. However, they expect margin expansion in 2025.  **[MMM_3412873_14]** **[MMM_3412873_18]** 

9. **Net Productivity Gains**  
   **Q:** What's driving the $150 million in net productivity gains?  
   **A:** Anurag Maheshwari detailed that besides **$70 million** from restructuring benefits, over **$400 million** in productivity improvements across supply chain, procurement, and SG&A functions contribute to the net **$150 million** gain after offsetting PFAS stranded costs and growth investments.  **[MMM_3412873_12]** 

10. **Profit Growth vs. Revenue Growth**  
    **Q:** Can high profit growth over revenue growth be sustained?  
    **A:** Anurag Maheshwari indicated that while profit growth is expected to exceed revenue growth in 2025 due to productivity initiatives, they will provide a medium-term framework at the upcoming Investor Day, focusing on gross margin expansion driving bottom-line growth.  **[MMM_3412873_21]** 

11. **Abrasives and Industrial Specialties Outlook**  
    **Q:** When will abrasives and industrial specialties return to growth?  
    **A:** William Brown expects both segments to improve in 2025, with new product offerings like Cubitron 3 in abrasives driving growth, and industrial specialties flattening and starting to grow over time.  **[MMM_3412873_20]** 

12. **Cash Levels and Capital Allocation**  
    **Q:** What is the right amount of cash to carry?  
    **A:** Anurag Maheshwari noted they ended 2024 with **$7.7 billion** in cash, about twice the working capital requirement. They plan to end 2025 with over **$6 billion** in cash after dividends, share buybacks of **$1.5 billion**, and litigation settlements.  **[MMM_3412873_25]** 

13. **Innovation Strategy**  
    **Q:** How are you reinvigorating innovation and new product introductions?  
    **A:** William Brown emphasized eliminating bottlenecks, increasing R&D investments, adding resources, and focusing on key growth verticals. He supports the **15% unbudgeted time** policy for scientists to foster innovation.  **[MMM_3412873_27]** 

14. **Industrial OTIF and Inventory Reduction**  
    **Q:** How are you improving OTIF and reducing inventory?  
    **A:** William Brown acknowledged OTIF challenges in the Safety and Industrial Business Group, aiming to reach **90%** OTIF, possibly by year-end, while reducing inventory to **75 days**. They prioritize OTIF over inventory reductions but believe both goals are achievable.  **[MMM_3412873_22]**  

15. **Industrial Production Outlook**  
    **Q:** Where do you see potential in industrial production?  
    **A:** William Brown is closely monitoring manufacturing IPI in the U.S. and Europe, noting expectations of positive IPI growth and a significant turnaround in Europe. However, he expressed concerns about a potential decline in auto builds affecting their business.  **[MMM_3412873_26]** 

16. **Sales Organization Changes**  
    **Q:** What changes are you making to the sales organization?  
    **A:** William Brown explained efforts to improve commercial execution by setting sales quotas earlier, enhancing sales management processes, cross-selling initiatives, and reinstituting price corridors to drive near-term growth by selling more of existing products.  **[MMM_3412873_9]** 

17. **Skepticism on IPI Forecast and Pricing Framework**  
    **Q:** How have you adjusted for the 1.9% IPI forecast and pricing?  
    **A:** William Brown acknowledged that IPI indicators are just starting points, and their 2% to 3% growth guidance considers a bottoms-up review and expectations of execution on internal initiatives alongside macro factors. They expect pricing to contribute positively but did not specify amounts.  **[MMM_3412873_11]** 

18. **Operating Margin Expansion Framework**  
    **Q:** Help us understand the operating margin expansion.  
    **A:** Anurag Maheshwari explained that the **$450 million** in productivity improvements includes COGS and SG&A efficiencies, and while they target **2% net productivity** in COGS annually, the higher figure this year includes benefits from restructuring and other one-time gains.  **[MMM_3412873_15]** 

19. **Pricing Assumption for the Year**  
    **Q:** What's the price assumption for this year?  
    **A:** William Brown stated they expect price increases to cover material cost inflation, resulting in a net positive impact, but did not provide specific figures.  **[MMM_3412873_17]** 

20. **Corporate Expenses Outlook**  
    **Q:** How does corporate expense outlook affect the model?  
    **A:** Anurag Maheshwari noted that corporate expenses in 2025 will include a **$60 million** reallocation and **$60 million** in TSA absorption costs, but didn't provide guidance beyond that year.  **[MMM_3412873_18]** 

21. **Working Capital Expectations**  
    **Q:** What are your expectations for working capital benefits?  
    **A:** Anurag Maheshwari aims to reduce inventory to **75 days**, and while revenue growth may increase receivables, they strive for over **100%** free cash flow conversion by offsetting with inventory improvements.  **[MMM_3412873_19]** 

a4a112b6f18e6ac92d128450ba0024a72286b5d701896d7d5c0c07cd389d9e2f

8d94807b010a3da1ea1c0e1d1ce0595f1f6b277ee8aa42eb78b0c00c409bccda

d7a6acb508dd6afb5c10bde99810e0e2938a34a716e1a4dfe64728d69d1d82ca

1. You mentioned centralizing your factories and supply chains under a common leader; can you elaborate on any challenges this centralization has posed, and how it affects your ability to respond swiftly to regional market demands?

2. With $175 million in insurance recoveries year-to-date related to PFAS and combat arms, but liabilities exceeding total insurance coverage, what is your expected total recovery, and how will remaining liabilities impact future financial results?

3. Your new product vitality index has declined to around 10-11%; what specific actions are you taking to boost innovation and increase this metric, and when do you anticipate seeing tangible results in the market?

4. Operating equipment efficiency in your largest facilities is averaging 50%, well below best-in-class levels; what precise initiatives are you implementing to improve OEE, and what targets have you set for operational improvement timelines?

5. Considering the slowdown in China's economy and geopolitical tensions, how are you adjusting your strategy in the region to mitigate risks, and what impact do you foresee on your sales and operations in China, which currently accounts for 10% of your revenue?

4c676ce2640720f3adc97dd3ca78ce8c342df1cdc7ae0fce3d15a85d677b1ace

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year 2024 Adjusted Organic Growth**: Approximately **1%**.
  2. **Full Year Adjusted Operating Margins**: Up **250 to 275 basis points**.
  3. **Earnings Per Share (EPS)**: Range of **$7.20 to $7.30**.
  4. **Adjusted Free Cash Flow Conversion Performance**: **100% plus**  **[MMM_3403182_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted Earnings Guidance**: Range of **$7 to $7.30** per share.
  2. **Adjusted Operating Margins**: Increase by **225 to 275 basis points**.
  3. **Adjusted Organic Growth**: Flat to up **2%**.
  4. **Nonoperating Expense**: Range of **$50 million to $75 million**.
  5. **Corporate and Unallocated Sales**: Sales range of **$225 million to $275 million**; operating loss of **$125 million to $175 million**.
  6. **Restructuring Charges**: **$250 million to $300 million**.
  7. **Tax Rate**: Around **19%** for the second half  **[MMM_3394681_7]** **[MMM_3394681_5]** **[MMM_3394681_4]** **[MMM_3394681_15]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted Organic Growth**: Flat to up 2% or up 1% to 3%.
  2. **Adjusted Operating Margins**: Expand by **200 to 275 basis points**.
  3. **Adjusted EPS**: Range of **$6.80 to $7.30** per share.
  4. **Free Cash Flow Conversion**: **90% to 110%** post spin.
  5. **Foreign Currency Impact**: 1% headwind to sales.
  6. **Commercial Agreement with Solventum**: **75 basis point** benefit to sales.
  7. **Restructuring Charges**: **$250 million to $300 million**.
  8. **Other Expense Net**: **$75 million to $100 million**.
  9. **Adjusted Tax Rate**: **19% to 20%**.
  10. **Corporate and Unallocated Net Operating Loss**: **$125 million to $175 million**.
  11. **Sales by Business Group**:
      - **Safety and Industrial**: Flat to up low single digits.
      - **Transportation and Electronics**: Up low single digits.
      - **Consumer**: Down low single digits  **[MMM_3381507_5]** **[MMM_3381507_6]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted Sales**: Approximately **$7.6 billion** for Q1 2024.
  2. **Organic Growth**: Flat to plus **2%**; excluding certain impacts, **1% to 3%**.
  3. **Earnings Per Share (EPS)**: Range of **$9.35 to $9.75**.
  4. **Operating Margins**: **19.5% to 20%** for Q1 2024.
  5. **Adjusted Tax Rate**: **18.5% to 19.5%**.
  6. **Free Cash Flow Conversion**: **95% to 105%**.
  7. **Restructuring Benefits**: Margin expansion of **75 to 100 basis points**.
  8. **Standup Costs for Health Care Spin**: **$0.07 to $0.08** in Q1 2024  **[MMM_3370584_8]** **[MMM_3370584_6]** **[MMM_3370584_19]** .

919a6cf5935819820cba32cfa31aa8c142dc25f117873385142e994752eb3058

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

fa7e17210b52245cd0911f13324afc1e6187ce3199e667e4403d822afdcb12b6

Legal Actions Pending as of Last Day of Period

Aggregate Legal Actions Initiated During Period

Aggregate Legal Action Resolved During Period

9d5f8d7ca0ecdd06fa1179d8b5db04d82d495c0a56865639dd408e663496cdee

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Americas

- United States

Asia Pacific

- China/Hong Kong

Europe, Middle East & Africa

Latin America and Canada

Other Unallocated

Total Revenue

a5a86e31cf7f3997a3c06c80c767bec007056875e7e67ca1d6b95fbac81758a3

| Name                  | Position                                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|---------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Michael F. Roman      | Executive Chairman of the Board                               | May 1, 2024        | Michael F. Roman has been with 3M for over 35 years. He became Chairman of the Board and CEO in May 2019. He was appointed Executive Chairman of the Board effective May 1, 2024  **[0000066740-24-000037_mmm-20240326.htm:32]** **[0000066740-24-000037_mmm-20240326.htm:50]** .                                                      |
| Monish Patolawala     | President and Chief Financial Officer                         | 2023               | Monish Patolawala was elected President and CFO in 2023. He previously served as Executive Vice President, Chief Financial and Transformation Officer from 2021 to 2023  **[0000066740-24-000016_mmm-20231231.htm:9]** .                                                                   |
| John P. Banovetz      | Executive Vice President, Chief Technology Officer and Environmental Responsibility | 2023               | John P. Banovetz was elected to his current position in 2023. He previously served as Senior Vice President, Chief Technology Officer and Environmental Responsibility in 2021  **[0000066740-24-000016_mmm-20231231.htm:9]** .                                                             |
| Karina Chavez         | Group President, Consumer                                     | 2023               | Karina Chavez was elected to her current position in 2023. She previously served as Senior Vice President and Chief Strategy Officer from 2021 to 2023  **[0000066740-24-000016_mmm-20231231.htm:9]** .                                                                                    |
| Torie Clarke          | Executive Vice President and Chief Public Affairs Officer     | 2023               | Torie Clarke was elected to her current position in 2023. She worked as an independent communications and crisis management consultant from 2017 to 2023  **[0000066740-24-000016_mmm-20231231.htm:9]** .                                                                                   |
| Zoe Dickson           | Executive Vice President and Chief Human Resources Officer    | 2021               | Zoe Dickson was elected to her current position in 2021. She previously served as Senior Vice President, Talent, Learning and Insights in 2021  **[0000066740-24-000016_mmm-20231231.htm:9]** **[0000066740-23-000014_mmm-20221231.htm:12]** .                                                                                         |
| Peter D. Gibbons      | Group President, Enterprise Operations                        | November 29, 2021  | Peter D. Gibbons was appointed Group President, Enterprise Operations effective November 29, 2021. Before joining 3M, he was CEO at Tirehub from 2018 to 2021  **[0000066740-24-000016_mmm-20231231.htm:9]** **[0000066740-23-000014_mmm-20221231.htm:12]** .                                                                          |
| Chris Goralski        | Group President, Safety & Industrial                          | 2023               | Chris Goralski was elected to his current position in 2023. He previously served as President of the Industrial Adhesives & Tapes Division from 2020 to 2023  **[0000066740-24-000016_mmm-20231231.htm:9]** .                                                                               |
| Bryan Hanson          | Group President and Chief Executive Officer, Healthcare       | September 2023     | Bryan C. Hanson joined 3M as Group President and CEO of the Health Care business in September 2023. He is set to become CEO of Solventum upon its spin-off from 3M in April 2024  **[0000066740-24-000037_mmm-20240326.htm:101]** **[0000066740-24-000016_mmm-20231231.htm:9]** **[0000066740-24-000037_mmm-20240326.htm:67]** .                                                     |
| Mark Murphy           | Executive Vice President, Chief Information and Digital Officer | 2021               | Mark Murphy was elected to his current position in 2021. Before joining 3M, he was CIO at Abbott Laboratories from 2020 to 2021  **[0000066740-24-000016_mmm-20231231.htm:9]** **[0000066740-23-000014_mmm-20221231.htm:12]** .                                                                                                         |
| Kevin H. Rhodes       | Executive Vice President, Chief Legal Affairs Officer         | 2022               | Kevin H. Rhodes was elected to his current position in 2022. He previously served as Senior Vice President and Deputy General Counsel in 2021  **[0000066740-24-000016_mmm-20231231.htm:9]** **[0000066740-23-000014_mmm-20221231.htm:12]** .                                                                                           |
| William M. Brown      | Chief Executive Officer                                       | May 1, 2024        | William M. Brown was appointed CEO of 3M effective May 1, 2024. He previously served as Chairman and CEO of L3Harris Technologies  **[0000066740-24-000037_mmm-20240326.htm:20]** **[0000066740-24-000037_mmm-20240326.htm:50]** **[0000066740-24-000080_exhibit101-offerletterofem.htm:0]** .                                                                                                    |
| Anurag Maheshwari     | Executive Vice President and Chief Financial Officer          | September 1, 2024  | Anurag Maheshwari joined 3M as Executive Vice President and CFO in early September 2024. He was previously CFO of Otis  **[0000066740-24-000101_mmm-20240930.htm:132]** **[0000066740-24-000098_mmm-20241022.htm:0]** .                                                                                                                |
| Theresa ("Teri") Reinseth | Interim Chief Financial Officer                           | August 1, 2024     | Theresa Reinseth was appointed Interim CFO effective August 1, 2024, following the departure of Monish Patolawala. She has been 3M's Senior Vice President, Corporate Controller, and Chief Accounting Officer since April 1, 2019  **[0000066740-24-000088_mmm-20240801.htm:3]** **[0000066740-24-000088_a3mcfopressreleasedated8x1.htm:0]** . |

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| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | November 2018  **[0000066740-24-000101_mmm-20240930.htm:94]**   |
| End Date/Duration        | No pre-established end date  **[0000066740-24-000101_mmm-20240930.htm:94]**  |
| Total additional amount  | $10 billion  **[0000066740-24-000101_mmm-20240930.htm:94]**     |
| Remaining authorization  | $3.1 billion  **[0000066740-24-000101_mmm-20240930.htm:94]**    |
| Details                  | Supports stock-based employee compensation plans and other corporate purposes  **[0000066740-23-000092_mmm-20230930.htm:131]** **[0000066740-23-000058_mmm-20230630.htm:129]** **[0000066740-22-000076_mmm-20220930.htm:125]** **[0000066740-22-000065_mmm-20220630.htm:118]** **[0000066740-24-000101_mmm-20240930.htm:129]** **[0000066740-24-000080_mmm-20240630.htm:128]** **[0000066740-23-000028_mmm-20230331.htm:115]**  |

a42f56d21c904365a231cc265941c9e2ccd2abb1d2eae9f4398ad1d3a60f42c8

**Annual guidance for FY 2025:**
- **Organic Sales Growth**: 2% to 3%  **[MMM_3412873_5]**  (raised from 1%  **[MMM_3403182_4]** )  
- **Adjusted Earnings Per Share (EPS)**: $7.60 to $7.90  **[MMM_3412873_5]**  (raised from $7.20 to $7.30  **[MMM_3403182_4]** )  
- **Free Cash Flow Conversion**: approximately 100%  **[MMM_3412873_5]**  (lowered from 100% plus  **[MMM_3403182_4]** )  
- **Adjusted Operating Margin Expansion**: 130 to 190 basis points  **[MMM_3412873_5]**  (lowered from 250 to 275 basis points  **[MMM_3403182_4]** )  
- **Adjusted Capital Expenditures (CapEx)**: approximately $1 billion  **[MMM_3412873_5]**  (no prior guidance)  
- **Gross Share Repurchase Program**: approximately $1.5 billion  **[MMM_3412873_5]**  (no prior guidance)  
- **Sales and EPS Cadence**: sales and EPS expected to be split equally between the first and second half  **[MMM_3412873_5]**  (no prior guidance)  
- **Q1 Sales Growth**: expected to be similar to Q4 2024  **[MMM_3412873_5]**  (no prior guidance)  

35b9f67f3c2ae25fe73d38efac4d5e58108b10ee905a912634dff9246cb03b1a

3M targets 10–14% EPS growth in 2025, driven by 2.5% volume (35% incrementals), $200M in lower restructuring, and $150M in net productivity. New Cubitron 3 boosts abrasives, while Q4 orders and backlog signal solid industrial momentum.

3083269c7e9c31e2dd511822e17df26863a7024f2f2810d21e174cd3e52e5e51

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1975  **[0000066740-24-000016_mmm-20231231.htm:75]**    | Present  | Current auditor   |

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- Total Revenue: $6,010 million (**-25%** YoY)  **[0000066740-25-000002_q42024-8kerexx991.htm:6]** **[0000066740-24-000016_mmm-20231231.htm:76]** **[0000066740-24-000016_mmm-20231231.htm:180]**   
- SG&A: $899 million (**-45%** YoY)  **[0000066740-25-000002_q42024-8kerexx991.htm:6]** **[0000066740-24-000016_mmm-20231231.htm:76]** **[0000066740-24-000016_mmm-20231231.htm:180]**   
- R&D: $282 million (-40% YoY)  **[0000066740-25-000002_q42024-8kerexx991.htm:6]** **[0000066740-24-000016_mmm-20231231.htm:76]** **[0000066740-24-000016_mmm-20231231.htm:180]**   
- Operating Income: $1,085 million (-13% YoY)  **[0000066740-25-000002_q42024-8kerexx991.htm:6]** **[0000066740-24-000016_mmm-20231231.htm:76]** **[0000066740-24-000016_mmm-20231231.htm:180]**   
- Net Income: $728 million (-23% YoY)  **[0000066740-25-000002_q42024-8kerexx991.htm:6]** **[0000066740-24-000016_mmm-20231231.htm:76]** **[0000066740-24-000016_mmm-20231231.htm:180]**   
- Diluted EPS: $1.33 (-22% YoY)  **[0000066740-25-000002_q42024-8kerexx991.htm:6]** **[0000066740-24-000016_mmm-20231231.htm:76]** **[0000066740-24-000016_mmm-20231231.htm:180]**   

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- **3M has resolved major legal issues**, including settlements of PFAS litigation and Combat Arms litigation, reducing uncertainties for investors.  **[MMM_3381507_16]** **[MMM_3381507_24]**
- **Strong growth in key markets**: Automotive electrification sales increased **over 30% year-on-year in Q1**, and spec-in wins in electronics position the company for future growth.  **[MMM_3381507_4]** **[MMM_3381507_13]**
- **Committed to maintaining a competitive dividend**, targeting approximately **40% of adjusted free cash flow**, with potential to increase over time, aligning with industrial peers and well above the S&P 500 median.  **[MMM_3381507_11]**

2dd8c84736f9dd13ea2c040101af3b0da852f7e2e1102fb7bbfc8d15719b38dd

1. **Margin Expansion Goals**  
   **Q:** Can gross margins reach high 40s from current 42%?  
   **A:** William Brown aims to improve gross margins from the current **43%-44%** to the **high 40s** over time.  **[MMM_3403182_12]**  Achieving **2% net productivity** on their **$13 billion** cost of goods sold could add about **a point per year** to gross margins.  **[MMM_3403182_12]**  Despite variables like mix and PFAS exit, margin improvement is a significant focus.  **[MMM_3403182_12]** 

2. **Capital Allocation and Buybacks**  
   **Q:** How will share buybacks proceed amid liabilities?  
   **A:** They increased share repurchases to **$700 million** in Q3, totaling **$1.1 billion** year-to-date.  **[MMM_3403182_11]**  With strong cash flow and no significant unforeseen liabilities ahead, they have capacity for further buybacks.  **[MMM_3403182_11]**  Ended Q3 with **$7.3 billion** in cash and net leverage of **0.8x**, maintaining an **A3/A-** credit rating.  **[MMM_3403182_11]** 

3. **Insurance Recoveries**  
   **Q:** What's the status of insurance recoveries for PFAS and combat arms?  
   **A:** Recovered **$54 million** in Q3 and over **$175 million** year-to-date.  **[MMM_3403182_7]**  Active in arbitration and litigation with insurers, they expect recoveries to ramp up.  **[MMM_3403182_7]**  Although liabilities exceed insurance coverage, additional recoveries are anticipated over time.  **[MMM_3403182_7]** 

4. **Productivity Initiatives**  
   **Q:** What's driving the 2% net productivity improvement?  
   **A:** Supply chain improvements are key, as half of their **$13 billion** cost of goods sold is supply chain.  **[MMM_3403182_8]**  Implementing lean practices, reducing waste, and conducting continuous Kaizen events, which doubled this year.  **[MMM_3403182_8]**  These efforts are expected to significantly boost productivity.  **[MMM_3403182_8]** 

5. **Demand Outlook and Growth**  
   **Q:** How is demand shaping up for next year?  
   **A:** Acknowledged that **1%** organic growth isn't sufficient.  **[MMM_3403182_13]**  Plans to accelerate new product launches, up **10%** this year and aiming for a **25%** increase.  **[MMM_3403182_13]**  Improving sales execution and OTIF delivery to drive better growth into **2025**.  **[MMM_3403182_13]** 

6. **Restructuring and Margin Impact**  
   **Q:** Are restructuring efforts benefiting 2024 margins?  
   **A:** On track with **$275 million** in restructuring charges for the year.  **[MMM_3403182_10]**  Some margin improvements stem from restructuring, but productivity initiatives are laying groundwork for future gains.  **[MMM_3403182_10]**  In early stages of operational excellence with significant opportunities ahead.  **[MMM_3403182_10]** 

7. **Portfolio Reshaping**  
   **Q:** Any plans for portfolio changes or divestitures?  
   **A:** Evaluating portfolio to focus on businesses leveraging technology and innovation.  **[MMM_3403182_14]**  Considering divesting small businesses that don't fit, representing a couple of points of revenue.  **[MMM_3403182_14]**  Further details will be shared as evaluation continues.  **[MMM_3403182_14]** 

8. **China Sales Performance**  
   **Q:** How did China sales perform this quarter?  
   **A:** China sales up about **11%** year-to-date, driven by electronics.  **[MMM_3403182_15]**  Mid-single-digit growth in Q3, aligning with the market.  **[MMM_3403182_15]**  Optimistic about their position in China despite broader uncertainties.  **[MMM_3403182_15]** 

cbb784c0f94c8842d987147b158d6ac0456ef11d41aad11627897750eb403bea

- **3M is facing significant cash outflows due to legal liabilities, paying up to $4.3 billion this year, which may impact free cash flow and dividend sustainability**.  **[MMM_3381507_22]**
- **The company expects annual dissynergies of $150 million to $175 million from the Health Care spin-off, potentially affecting profitability**.  **[MMM_3381507_20]**
- **There is uncertainty regarding future strategic direction as the new CEO, Bill Brown, was not involved in formulating the current updated guidance**.  **[MMM_3381507_23]**

ccebad3e6559e4154abda5f70ea0652ea09c5eeca29a50b4f3888feeebd27574

1. **Q2 EPS and Margin Outlook**  
   **Q:** Can you clarify the Q2 EPS and margin expectations?  
   **A:** Management indicated that second-quarter EPS may be down slightly compared to Q1's **$1.70**, due to stock compensation and one-time charges. Restructuring charges of **$250–$300 million**, with **70%** in the first half, will impact margins. They expect first-half margins at **47%** and second-half margins at **53%**, affected by Solventum-related charges and FX headwinds.  **[MMM_3381507_8]** 

2. **Dividend Payout Policy**  
   **Q:** Will the 40% dividend payout ratio remain stable?  
   **A:** Management stated that the approximately **40% payout ratio** of adjusted free cash flow serves as a guide going forward. As earnings and free cash flow grow, they expect the dividend to increase accordingly.  **[MMM_3381507_11]** 

3. **Restructuring Charges and Savings**  
   **Q:** What is the payback on restructuring, and are you on track for $700–$900 million savings by 2025?  
   **A:** Management confirmed they are seeing good payback from restructuring actions. They highlighted margin expansion of **200–275 basis points** year-over-year as evidence of benefits from streamlining the supply chain and reducing stranded costs. They continue to work towards achieving the targeted savings.  **[MMM_3381507_10]** 

4. **Electronics Business Outlook**  
   **Q:** Are improved spec-ins in electronics sustainable, and is semiconductor improvement expected?  
   **A:** Management mentioned that the second half is crucial for consumer electronics. With increased spec-ins, they are positioned to grow if the market picks up. They anticipate semiconductor demand to improve in the second half of the year.  **[MMM_3381507_13]** 

5. **Industrial Demand Visibility**  
   **Q:** Is destocking over in industrial channels, and is demand improving?  
   **A:** Management observed that inventory levels are reducing due to improved supply chains, but they see mixed signals in end markets. Areas like industrial adhesives and tapes show slight growth, but overall demand remains cautious.  **[MMM_3381507_12]** 

6. **Long-term Growth Expectations**  
   **Q:** What is the expected long-term growth rate excluding Health Care?  
   **A:** Management emphasized prioritizing investments in attractive markets and leveraging innovation for differentiated solutions. They aim to drive growth by focusing on markets with better-than-macro dynamics but did not provide specific growth targets.  **[MMM_3381507_15]** 

7. **PFAS Exit and Alternatives**  
   **Q:** Will 3M participate in PFAS alternatives, and how is the product pipeline?  
   **A:** Management is committed to exiting PFAS manufacturing by the end of **2025**. They are working with customers to find alternative solutions and are helping engineer products without PFAS but will not move into other durable chemistries.  **[MMM_3381507_27]** 

8. **Insurance Recoveries for Liabilities**  
   **Q:** Can you provide guidance on insurance recoveries for liabilities?  
   **A:** Management believes they are eligible for insurance recoveries related to PFAS and Combat Arms liabilities. They have notified insurance providers and are working through arbitration for Combat Arms, but these processes take time.  **[MMM_3381507_24]** 

9. **New CEO's Involvement in Guidance**  
   **Q:** Has Bill Brown been involved in formulating updated guidance?  
   **A:** Management stated that while Bill Brown has been engaged in preparation for his new role, he was not part of the decisions on the guidance provided in this earnings call.  **[MMM_3381507_23]** 

10. **Adjusted Free Cash Flow Definition**  
    **Q:** How do you define adjusted free cash flow for dividend calculations?  
    **A:** Adjusted free cash flow excludes items like litigation expenses, PFAS-related costs, and costs to spin off Solventum from GAAP results. This adjusted figure is used to determine the **40% dividend payout ratio**.  **[MMM_3381507_21]** 

1130f2f843f91fe5bdd8293eb7312a7d30bd8fa0e54ca81345291e595b629c73

- **Uncertainty in economic outlook and dependence on external factors**: The CEO expressed that **recovery depends on uncontrollable external factors like interest rates, inflation, and geopolitical issues**, indicating potential headwinds in key markets and uncertainty in future growth.  **[MMM_3394681_18]**
- **Anticipated headwinds in the second half impacting financials**: The company expects **higher wages**, **negative absorption due to inventory reduction**, and **increased non-operating expenses from pensions and legal settlements**, leading to **higher interest expenses and lower interest income** in the second half of the year.  **[MMM_3394681_15]**
- **Declining auto build rates affecting key segments**: The company is cautious about the **decrease in global auto build rates**, which have dropped from **down 0.5%** to **down 2%** for the year, potentially impacting the **Transportation and Electronics** business segment.  **[MMM_3394681_19]**

c5a84ae25b4c6a461b5e4230f02bb707a5f6a4fb3762a97689f9ef818a4d2e64

- *1. Potential shareholder dilution due to legal settlements:** 3M may choose to issue equity to satisfy **$1 billion** in payments related to the Combat Arms Earplug settlement, which could dilute existing shareholders. The company stated, "*There would be a difference in GAAP shares outstanding versus adjusted shares outstanding if we decide to exercise this option to issue equity.*"  **[MMM_3370584_26]**
- *2. Incremental costs impacting earnings due to the spin-off of the health care business:** 3M is incurring **$0.07 to $0.08** per share of incremental costs in Q1 2024 to stand up the health care business ahead of the spin-off. These costs contribute to a sequential decline in EPS from Q4 to Q1.  **[MMM_3370584_20]** **[MMM_3370584_23]**
- *3. Exiting PFAS manufacturing without recovering asset value:** 3M is committed to exiting PFAS manufacturing by the end of 2025 and will not sell or transfer equipment or license intellectual property, potentially leading to a loss of future revenue and no recovery of asset value. The company stated, "*We will not sell the equipment, we won't transfer any of the assets. We won't sell the business. We won't license our intellectual property.*"  **[MMM_3370584_28]**

4703f8ecbab2178fbb66c1c7ecbceda8b7a9f1ba7caee6ea4591f7acb6818166

- **Strong growth in China, contributing to overall performance:** Despite challenging market conditions, 3M achieved a **13% increase in China sales in the first half**, driven by consumer electronics and auto builds. China represents about **10% of 3M's revenue**, highlighting its significance and growth potential.  **[MMM_3394681_25]**
- **Outperformance in Automotive and Electronics sectors:** 3M's **auto OEM business increased nearly 5% in Q2**, significantly outperforming the **0.5 point decrease in global car and light truck builds**. In the first half, the auto OEM business was up **9% organically versus a flat global build rate**, indicating market share gains on new platforms and strong penetration in consumer electronics devices.  **[MMM_3394681_19]**
- **Positive developments in legal matters improving financial position:** 3M secured **$120 million in settlements from insurance carriers related to Combat Arms**, with expectations of additional future recoveries. This progress reduces legal uncertainties and positively impacts the company's financial health.  **[MMM_3394681_11]**

2ae1d802d009781d7a65aa55d535938bbe207862756c2146ea03e78b63ff2365

- **3M is entering 2024 with strong momentum and is focused on improving operational performance to deliver sustainable margin and cash flow expansion.**  **[MMM_3370584_6]**
- **The company is optimizing its portfolio by exiting low-growth areas (about 5% of the consumer portfolio) to focus on higher-margin, higher-growth opportunities, which is expected to drive improved growth and margins in the long term.**  **[MMM_3370584_6]**
- **3M anticipates earnings per share of $9.35 to $9.75 per share in 2024, with continued strong margin expansion and strong cash flow, supported by its investments in R&D and capital expenditures, and management of working capital.**  **[MMM_3370584_6]**

383750e3a82cae334131097390a1e04b2b07f44a2e9e607feabe03a294d21f33

- **Operational inefficiencies**: 3M's machine utilization averages around **50%**, which is **well short of best-in-class companies**, indicating significant underutilization of assets. Supplier on-time performance is in the **low 70% range**, and forecast accuracy is **10 to 15 points below expectations**, highlighting challenges in supply chain and demand planning.  **[MMM_3403182_2]** **[MMM_3403182_24]** **[MMM_3403182_5]**
- **Declining innovation**: Over a decade-long decline in new product introductions, 3M's New Product Vitality Index (NPVI) has decreased from **25-30%** to just over **10-11%**, suggesting an **aging product portfolio** and reduced competitiveness due to fewer new product launches.  **[MMM_3403182_29]** **[MMM_3403182_1]**
- **Significant legal liabilities**: 3M faces ongoing litigation related to **PFAS and combat arms**, with settled liabilities being **higher than their total insurance value**, indicating potential financial risk and limited insurance recovery prospects.  **[MMM_3403182_7]**

f6c3a0253ad8c2218722ebc5671f3c0e545668b56747caab27d138095e1aaa2c

1. **PFAS Liability Impact**  
   **Q:** What's your take on PFAS liability and any changes in strategy?  
   **A:** We have a great team managing PFAS and other liabilities.  **[MMM_3394681_14]**  The public water supplier settlement was an important first step, but there's more to be done.  **[MMM_3394681_14]**  We continue to manage litigation and control what we can.  **[MMM_3394681_14]**  We have exhaustive disclosures in our filings.  **[MMM_3394681_14]**  I believe we have a strong balance sheet with a **0.3 leverage ratio**  **[MMM_3394681_14]** , and we can manage the risks appropriately while focusing on driving value creation through operational excellence.  **[MMM_3394681_14]** 

2. **Capital Allocation and Buybacks**  
   **Q:** Thoughts on capital allocation and share buybacks?  
   **A:** We have capacity and a strong balance sheet.  **[MMM_3394681_16]**  In the second quarter, we repurchased **$400 million** worth of shares.  **[MMM_3394681_16]**  We have an open authorization with our board that's close to **$4 billion**.  **[MMM_3394681_16]**  We'll evaluate further buybacks as we manage risks and generate cash.  **[MMM_3394681_16]**  Excess cash can be used for share repurchases or M&A, but currently there's no M&A on the horizon.  **[MMM_3394681_16]** 

3. **Margin Outlook After Restructuring**  
   **Q:** How will restructuring and operational improvements affect margins beyond '24?  
   **A:** We've been through a substantial restructuring program, about **75% complete**.  **[MMM_3394681_9]**  Many improvements are incremental pay-as-you-go opportunities, reducing waste and inefficiency without substantial charges.  **[MMM_3394681_9]**  The team has done an outstanding job; in the first half of this year, margins were up almost **500 basis points**.  **[MMM_3394681_10]**  We have more we can do through basic productivity improvements and volume recovery.  **[MMM_3394681_10]** 

4. **Portfolio Review and Diversification**  
   **Q:** Does 3M need to narrow down its diversification further?  
   **A:** I wouldn't say that today.  **[MMM_3394681_12]**  We have a big, complicated business with interconnections across segments.  **[MMM_3394681_12]**  We'll take a fresh, hard look at what businesses we're in and dispassionately assess what is better owned by us.  **[MMM_3394681_12]**  Where assets are better owned elsewhere, we'll make determinations over time.  **[MMM_3394681_12]** 

5. **Organic Growth Initiatives**  
   **Q:** Are you already implementing ideas to drive organic growth?  
   **A:** Yes, we're focusing on two major thrusts: spurring innovation and driving organic revenue.  **[MMM_3394681_8]**  In the first half of this year, we launched about **75–76** new product introductions; this year we'll do probably less than **150**, compared to over **1,000** in the past.  **[MMM_3394681_8]**  We need to turn that around, which will take some time.  **[MMM_3394681_8]**  We're also investing in commercial excellence, including optimizing our sales force and pricing strategies.  **[MMM_3394681_8]** 

6. **China Sales Performance**  
   **Q:** How did China revenue perform this quarter?  
   **A:** China represents about **10%** of our revenue.  **[MMM_3394681_18]**  We had a good first half, up about **13%**.  **[MMM_3394681_18]**  Part of this growth is from electronics.  **[MMM_3394681_18]**  The local-for-local piece was about **1%**, so flattish, similar to other multinationals.  **[MMM_3394681_18]**  We've seen good growth due to consumer electronics and auto builds.  **[MMM_3394681_18]** 

44330ff23be95ab3f1cd97dd312c77e60bd18f2bfafbc257a7371cb93e5dbf02

- *1. Strong growth in China market:** China represents about **10% of 3M's sales**, and year-to-date, sales in China are up about **11%**, driven primarily by electronics. Excluding electronics, organic growth in China is approximately **3%**.  **[MMM_3403182_15]**
- *2. Operational efficiency initiatives targeting significant cost savings:** 3M is focused on achieving **2% net productivity** on its **$13 billion** cost of goods sold, which translates to approximately **$260 million** in annual savings and potential **gross margin expansion** of about **one percentage point per year**.  **[MMM_3403182_5]** **[MMM_3403182_12]**
- *3. Commitment to innovation and increasing new product introductions:** 3M's New Product Vitality Index (NPVI) is currently running at **10-11%**, with plans to increase it back to previous levels of **25-30%**. This indicates a renewed focus on launching fresh offerings to drive growth.  **[MMM_3403182_29]**

60d5228a98e2b8197966a7c784fe82179dc5efd7e2ab88959c0ac0c3d5c1ef4d

1. **Restructuring Program Impact**  
   **Q:** Why aren't restructuring benefits matching costs in '24?  
   **A:** Management explained that while the restructuring program remains on track to achieve **$700 million to $900 million** in annual run-rate savings upon completion, they expect incremental benefits of **$150 million to $250 million** in 2024 versus costs of **$250 million to $350 million**. The difference is due to necessary investments and timing; benefits will continue into 2025 and beyond.  **[MMM_3370584_10]** **[MMM_3370584_18]** **[MMM_3370584_20]** 

2. **Health Care Spin-Off Costs**  
   **Q:** Are stand-alone health care costs included in guidance?  
   **A:** Yes, the guidance assumes Health Care remains part of 3M, even though the spin is on track for first half 2024. Additional costs incurred to stand up the Health Care business, approximately **$0.07 to $0.08** per share, are included and impact margins. Post-spin impacts will be detailed at an Investor Day.  **[MMM_3370584_17]** **[MMM_3370584_20]** **[MMM_3370584_25]** 

3. **Margin Outlook**  
   **Q:** What's the margin outlook for 2024 and Q1?  
   **A:** For 2024, operating margins are expected to expand by **75 to 100 basis points**, including restructuring benefits and costs. In Q1, margins are anticipated to be up **250 to 300 basis points** year-over-year excluding restructuring costs.  **[MMM_3370584_12]** **[MMM_3370584_19]** **[MMM_3370584_20]** 

4. **Free Cash Flow Guidance**  
   **Q:** Why is free cash flow declining in '24 guidance?  
   **A:** The company forecasts free cash flow of about **$5.3 billion** for 2024, down from **$6.3 billion** in 2023. Management attributes the decline to continued investments in growth, productivity, and sustainability, emphasizing commitment to organic growth.  **[MMM_3370584_14]** 

5. **Geographic Prioritization Impact**  
   **Q:** What's the impact of moving to export model in 30 countries?  
   **A:** The shift affects approximately **100 basis points** of company revenue, with **60%** from product portfolio optimization and the rest from geographic prioritization. While revenue faces headwinds due to lower pricing through distributors, it improves margin rates since these countries had lower-than-average margins.  **[MMM_3370584_11]** **[MMM_3370584_15]** 

6. **Working Capital Management**  
   **Q:** Can you sustain lower inventory levels if demand rises?  
   **A:** Management believes that through supply chain improvements and digital tools, they can continue to reduce inventory levels while being ready to meet increasing demand. They view working capital as a continued source of cash generation.  **[MMM_3370584_11]** **[MMM_3370584_12]** 

7. **PFAS Exit Plans**  
   **Q:** Will 3M produce PFAS after 2025?  
   **A:** No, 3M is committed to exiting PFAS manufacturing by the end of **2025**, without selling equipment, transferring assets, or licensing intellectual property.  **[MMM_3370584_28]** 

8f7dae57e3add919f63ed4f1311735b6a5d80bb6c41362d6a607a3b715616a6c

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