2018 Annual Meeting 1

Transcription

1 2018 Annual Meeting 1

2 3M 2018 Annual Meeting Agenda Opening remarks Business items Shareholder questions 2

3 Inge G. Thulin Chairman of the Board, President and Chief Executive Officer 3

4 2018 Annual Meeting 4

5 FY 2017 summary +5.2% year-on-year Organic localcurrency growth Sales of $31.7B, up +5.1% year-on-year: $ % year-on-year 21.3% Earnings per share, ex. TCJA adj. Return on invested capital GAAP EPS of $7.93, down 2.8%, including impact from TCJA Invested $5.3B in research and development, cap-ex and acquisitions Returned $4.9B to shareholders via dividends and gross share repurchases 100% Free cash flow conversion Refer to 3M s January 25, 2018 press release for details, including discussion of non-gaap measures. 5

6 Three key levers Portfolio Management Investing in Innovation Business Transformation 6

7 Q summary +2.8% year-on-year $ % year-on-year 23.0% +0.3% year-on-year Organic localcurrency growth Earnings per share, ex. TCJA adj. and legal settlement Operating margin, ex. legal settlement Refer to 3M s April 24, 2018 press release for details, including discussion of non-gaap measures. GAAP EPS of $0.98, down 55%, including impact from TCJA measurement adjustment ($0.36) and legal settlement (State of MN) ($1.16) Operating income of $1.0B, down 42%, including $0.9B impact from legal settlement Operating margin of 12.2%, down 10.5 percentage points Returned $1.7B to shareholders via dividends and gross share repurchases Increased Q dividend 16% Updated full-year guidance for organic growth and EPS Organic growth 3% to 4%, vs. prior guidance 3% to 5% EPS $10.20 to $10.55, vs. prior guidance $10.20 to $10.70 (ex. TCJA adj. and legal settlement); GAAP EPS $8.68 to $9.03 7

8 Board of Directors Sondra L. Barbour Thomas K. Brown David B. Dillon Michael L. Eskew Herbert L. Henkel Amy E. Hood Muhtar Kent Edward M. Liddy Gregory R. Page Inge G. Thulin Patricia A. Woertz 8

9 Gregg M. Larson Corporate Secretary 9

10 Annual meeting rules Stockholder proponents Your remarks must be limited to three minutes Questions and comments Please limit yourself to one question or comment of about one minute in length Improper subject matter- this meeting is not a forum for discussing: Pending or threatened litigation against the Company Political or other views not directly related to 3M business Personnel matters or grievances against the Company Prohibited conduct Disruptive comments or conduct are prohibited and a basis for removal from the meeting 10

11 Business items 1. Elect the twelve directors identified in the 2018 Proxy Statement, each for a term of one year 2. Ratify the appointment of PricewaterhouseCoopers LLP as 3M s independent registered public accounting firm for Approve, on an advisory basis, executive compensation 4. Consider a stockholder proposal on special shareholder meetings, if properly presented 5. Consider a stockholder proposal on CEO compensation, if properly presented 11

12 Nominees for Board of Directors Sondra L. Barbour Thomas K. Brown David B. Dillon Michael L. Eskew Herbert L. Henkel Amy E. Hood Muhtar Kent Edward M. Liddy Gregory R. Page Michael F. Roman Inge G. Thulin Patricia A. Woertz 12

13 Business items 1. Elect the twelve directors identified in the Proxy Statement, each for a term of one year 2. Ratify the appointment of PricewaterhouseCoopers LLP as 3M s independent registered public accounting firm for Approve, on an advisory basis, executive compensation 4. Consider a stockholder proposal on special shareholder meetings, if properly presented 5. Consider a stockholder proposal on CEO compensation, if properly presented 13

14 Business items 1. Elect the twelve directors identified in the Proxy Statement, each for a term of one year 2. Ratify the appointment of PricewaterhouseCoopers LLP as 3M s independent registered public accounting firm for Approve, on an advisory basis, executive compensation 4. Consider a stockholder proposal on special shareholder meetings, if properly presented 5. Consider a stockholder proposal on CEO compensation, if properly presented 14

15 Business items 1. Elect the twelve directors identified in the Proxy Statement, each for a term of one year 2. Ratify the appointment of PricewaterhouseCoopers LLP as 3M s independent registered public accounting firm for Approve, on an advisory basis, executive compensation 4. Consider a stockholder proposal on special shareholder meetings, if properly presented 5. Consider a stockholder proposal on CEO compensation, if properly presented 15

16 Business items 1. Elect the twelve directors identified in the Proxy Statement, each for a term of one year 2. Ratify the appointment of PricewaterhouseCoopers LLP as 3M s independent registered public accounting firm for Approve, on an advisory basis, executive compensation 4. Consider a stockholder proposal on special shareholder meetings, if properly presented 5. Consider a stockholder proposal on CEO compensation, if properly presented 16

17 Business items 1. Elect the twelve directors identified in the Proxy Statement, each for a term of one year 2. Ratify the appointment of PricewaterhouseCoopers LLP as 3M s independent registered public accounting firm for Approve, on an advisory basis, executive compensation 4. Consider a stockholder proposal on special shareholder meetings, if properly presented 5. Consider a stockholder proposal on CEO compensation, if properly presented 17

18 2018 Annual Meeting 18