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Similar to Jean Lobey, Executive Vice President, Safety, Security and Protection Services
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Jean Lobey, Executive Vice President, Safety, Security and Protection Services
- 1. 3M Safety, Security and Protection Services Business
Jean Lobey
Executive Vice President
October 9, 2007
© 3M 2007. All Rights Reserved.
- 2. Agenda
• Our markets and businesses
• Driving growth for the future
• Summary
2007 3M Investor Conference 2
© 3M 2007
- 3. Strong Sales And Operating Income Growth*
Sales Highlights
(YOY % Change)
($ millions) +15%
Averaged 14% total LC growth over
+8%
1
+12%
the last six quarters
+20%
Significant investment in capex and
2
$2,663
acquisitions to support growth plan
$2,320
$2,152
$1,557
$1,301
Leading provider of technology and
3 solutions into the global safety and
security markets
2004 2005 2006 1H06 1H07
LC % 8.5% 6.8% 13.7% 12.2% 15.9%
Operating Income 2006 Sales by Geography
+9%
+14%
+11%
LAC 12% APAC 19%
+18%
$559
$513
$449
$350
$297
Europe 29%
2004 2005 2006 1H06 1H07
U.S. 40%
OI % 20.9% 22.1% 21.0% 22.8% 22.5%
2007 3M Investor Conference 3
© 3M 2007 *Excludes special items in all periods
- 4. SS&PS Markets
Safety Security Protection
Personal safety Authenticate, secure Protect and enhance
and protect, people, facilities
solutions at work
materials and
and home
information
$30 Billion Market $12 Billion Market $20 Billion Market
2007 3M Investor Conference 4
© 3M 2007
- 5. SS&PS Is Composed Of Five Divisions…
Occupational Health & Environmental Safety Building & Commercial Services
• Personal protection equipment: respirators, hearing • Industrial hygiene, cleaning and window glazing
products – Scotch Brite®, Prestige
protection, visibility, Thinsulate®
Sales growth: 8% to 12% Sales growth: 5% to 8%
Security Systems Corrosion Protection Industrial Minerals
• Border and civil security products • Corrosion protection products – • Roofing granules, Color Quartz® for
– passports, passport readers, fusion bonded epoxy powders, swimming pools
secure materials liquid epoxies, functional
coatings
Sales growth: 9% to 14% Sales growth: >20% Sales growth: 3% to 6%
2007 3M Investor Conference 5
© 3M 2007
- 6. …And Two Organizations Focused On Emerging Opportunities
Track & Trace Solutions EBO Global Mining EBO
• Library systems, locating and marking equipment, • Market center focused on mining and mineral
warehouse management software, patient safety extraction customers
solutions
• Selling the Big 3M – product lines from across the
• Bringing new technologies and complete company
solutions to an emerging market
Sales growth: >20% Sales growth: >15%
Addressing entirely new market opportunities
2007 3M Investor Conference 6
© 3M 2007
- 7. Multiple Forces Are Driving Strong Growth In Target Markets
Regulatory pressure Need for productivity
Movement of
Strong growth in
Need for industrial
safety, security, &
integrated safety manufacturing to
solutions & protection markets developing
“smart safety” economies
X-factors – weather, terrorism, Consolidation among industrial
pandemic disease companies
2007 3M Investor Conference 7
© 3M 2007
- 8. Our Dream: A $10 Billion Business
ILLUSTRATIVE
Governments
SSD
• The global leader in Safety,
Security, and Protection
CPP B&CSD
Businesses
OH&ESD
Customers
products across multiple
T&T EBO
T&T
T&T EBO
market centers and
IMPD
customers groups
Mining
Consumers
Safety - People Security - Processes Protection - Assets
2007 3M Investor Conference 8
© 3M 2007
- 9. Our Dream In Safety: Multiple Category Leadership
Personal Protective Equipment Markets Current leadership
$ Billions
Building towards leadership
White space opportunity
Visibility &
Head, Eye & Hand, Foot &
Respiratory Hearing Fall Protective
Face Body
Clothing
$3.5 - $4.0 $0.9 -$1.2 $2.0 – $2.2 $1.0 - $1.2 $7.0 - $8.5 $1.9 – $2.2
Addressing
locally
We will be a leader in multiple PPE categories
2007 3M Investor Conference 9
© 3M 2007
- 10. Our Dream In Security: Leading Solution Provider To
Multiple Verticals
Leading position
Developing position
Developing market
Markets
Complete Secure Document Solution
• Border control
Secure Issuance Authentication
• Law enforcement
Materials Systems Systems
• Municipal transactions
• Banking
Current
• Hospitality
status:
We will provide a complete solution across multiple verticals
2007 3M Investor Conference 10
© 3M 2007
- 11. Our Dream In Protection: Driving Innovation Into Multiple
Market Segments
Building Services
Mining Hospitals
3M Technology
Industrial Government
Food Services Military
Construction
We will continue to drive innovative new solutions into the market
2007 3M Investor Conference 11
© 3M 2007
- 12. Agenda
• Our markets and businesses
• Driving growth for the future
• Summary
2007 3M Investor Conference 12
© 3M 2007
- 13. Last Year We Articulated 4 Key Strategies
Core growth • Drive new product introductions
• Assure the Maintenance Free Respirator franchise
• Eliminate capacity constraints
Adjacencies/M&A • Border and civil security
• Water market
International • Emerging market channel/sales coverage
• Optimize supply chain & regional manufacturing
• Local/regional product coverage & development
EBO & special initiatives • T&T EBO
• Mining market center EBO
2007 3M Investor Conference 13
© 3M 2007
- 14. Last Year We Articulated 4 Key Strategies
Core growth • Drive new product introductions
• Assure the Maintenance Free Respirator franchise
• Eliminate capacity constraints
Adjacencies/M&A • Border and civil security
• Water market
International • Emerging market channel/sales coverage
• Optimize supply chain & regional manufacturing
• Local/regional product coverage & development
EBO & special initiatives • T&T EBO
• Mining market center EBO
2007 3M Investor Conference 14
© 3M 2007
- 15. Core Growth – New Product Growth Is Accelerating
Core
Adjacent
Intl’
2007 • Ultra Prestige Window Film EBO’s
New product sales
• Digital Wireless Comm.
$ Millions
• Welding Helmet
• RFID-enabled Smart Shelves
• Reengineered Copper
Granules
• Durable Floor Finish
• New CBRN
• Cool Roof Granules
• EFR 7700
2008 • Swordfish (EFR)
• Mistral (PAPR)
• Sentinel (MFR)
• Hospital Specimen Tracking
• Secure Supply Chain
2004 2007 2008 2012
• Grease Duct Fire Protection
% New Product Sales 12% 19% 23% 30%
• Mobile Handheld Passport
Reader
• Stay-Clean Granules
2007 3M Investor Conference 15
© 3M 2007
- 16. Breakthrough New Product – NBC Protection Equipment
Core
Adjacent
Intl’
EBO’s
Description Advantages
NBC Protection System – provides • Currently, the only loose fitting NIOSH
complete protection from Chemical, approved system
Biological, Radiation, and Nuclear hazards; • Versatile communications systems included
NIOSH approved for First Responders • Robust materials that withstand
decontamination showers
2007 3M Investor Conference 16
© 3M 2007
- 17. Breakthrough New Product – Elastomeric Facepiece
Respirator (EFR) 7700
Core
Adjacent
Intl’
EBO’s
ct . 2
ct . 1
t Pi
t Pi
duc duc
P ro P ro
Description Advantages
The latest entry into 3M’s single cartridge • Soft-silicone face seal for greater durability
EFR product line with a face seal specifically in harsh environments
designed to fit face sizes throughout the Asia • Quarter turn cartridge connection for easy
Pacific region attachment and ability to change cartridges
without removing the respirator
• “Cool-flow” exhalation valve design for
easier breathing with less resistance
2007 3M Investor Conference 17
© 3M 2007
- 18. Extending The Maintenance Free Respirator Franchise
Core
Adjacent
Intl’
Strong position
EBO’s
Intermediate position
Not participating
High Value
San Huei
Mid Range
Gangkai
Entry Level JSP
KSN
Shanghai Dasheng
Unapproved
2007 3M Investor Conference 18
© 3M 2007
- 19. Breakthrough New Product – Speedglass SL
Core
Adjacent
Intl’
EBO’s
Description Advantages
Speedglass SL Welding Helmet – auto • Auto darkening lens – eliminates need to
darkening welding vision protection remove helmet between welds
• Ultra-Lightweight design – only 13 oz,
reduces fatigue
• 4 sensitivity levels – enables more
customized use
2007 3M Investor Conference 19
© 3M 2007
- 20. Breakthrough New Product – Prestige Series Window Film
Core
Adjacent
Intl’
EBO’s
Description Advantages
3M™ Prestige Series Window Film - a • Fade Control - blocks 99.9% of the sun’s
selection of clear, metal-free films that harmful rays
deliver superior protection from UV and • Energy Savings - reduced energy costs,
performance never before offered in a clear blocks up to 66% of heat coming through the
window film glass
• Aesthetics and Glare Control - significantly
reduces glare
2007 3M Investor Conference 20
© 3M 2007
- 21. Preparing For The Worst – Safety And Security Window
Films
Core
Adjacent
Intl’
EBO’s
Description Advantages
3M™ Safety and Security Window Films – • Bomb Blasts – offers protection against
a family of products that help you prepare flying glass caused by explosions
for the worst • Severe Weather and Hurricanes – hold
glass together preventing flying glass from
harming inhabitants, keeps out wind and rain.
• Street Crime – Deters smash-and-grab
thieves, prevents intruders from gaining
access
2007 3M Investor Conference 21
© 3M 2007
- 22. Breakthrough New Product – Digital Communication
Core
Adjacent
Intl’
EBO’s
Description Advantages
Wireless Communication System Model • Superior Sound Clarity helps to optimize
XT-1 is a fully digital intercom system for the communications with the customer
Quick Serve Restaurant (QSR) industry and • Smart Technology provides self diagnostics
Drive-thru Applications; 3M is a leader in this to improve reliability
space • Fully Digital simplifies user controls and
enables network support and services
• Enhanced efficiency through automation that
improves drive-thru performance
2007 3M Investor Conference 22
© 3M 2007
- 23. Breakthrough New Product – Cool Roof Granules
Core
Adjacent
Intl’
EBO’s
Description Advantages
3M™ Cool Roofing Granules reflect a • 3M™ Cool Roofing Granules provide for an
greater share of the infrared portion of the increase of up to three times greater solar
solar spectrum, which helps keep roofs cool reflectance and exceptionally high thermal
in the summer time. emittance.
• Allow shingle manufacturers to achieve
EPA’s Energy Star® rating
• A palette of 8 durable, Cool colors
2007 3M Investor Conference 23
© 3M 2007
- 24. Last Year We Articulated 4 Key Strategies
Core growth • Drive new product introductions
• Assure the Maintenance Free Respirator franchise
• Eliminate capacity constraints
Adjacencies/M&A • Border and civil security
• Water market
International • Emerging market channel/sales coverage
• Optimize supply chain & regional manufacturing
• Local/regional product coverage & development
EBO & Special initiatives • T&T EBO
• Mining market center EBO
2007 3M Investor Conference 24
© 3M 2007
- 25. Additional Capacity Will Further Drive Core Growth
Core
Adjacent
Intl’
EBO’s
Hwaseong, Korea • Significantly increases maintenance
free respirator and elastomeric face
respirator capacity
• Shortens supply chain
Morden, Canada • Increases corrosion protection
capacity close to customers in the
oil sands region of Canada
• Increases corrosion protection
Volokolamsk,
capacity close to exploration
Russia
customers in Eastern Europe and
Asia
2007 3M Investor Conference 25
© 3M 2007
- 26. Additional Capacity Will Further Drive Core Growth
Core
Adjacent
Intl’
EBO’s
JinShan, China • New ScotchBrite® capacity closer
to Asian customers
XinQiao, China • New window glazing capacity
closer to Asian customers
Ahmedabad, India • Increases corrosion protection
capacity close to exploration
customers Asia
2007 3M Investor Conference 26
© 3M 2007
- 27. Last Year We Articulated 4 Key Strategies
Core growth • Drive new product introductions
• Assure the Maintenance Free Respirator franchise
• Eliminate capacity constraints
Adjacencies/M&A • Border and civil security
• Water market
International • Emerging market channel/sales coverage
• Optimize supply chain & regional manufacturing
• Local/regional product coverage & development
EBO & Special initiatives • T&T EBO
• Mining market center EBO
2007 3M Investor Conference 27
© 3M 2007
- 28. M&A And Has Driven Significant Growth In Both Core And
Adjacent Markets
Core
Adjacent
Closed Comments Intl’
EBO’s
Pomp (OHESD) June ’06 • Hearing protection products & technology in LAC
Pinnacle Distribution (T&T) July ’06 • Transportation Management System software
Aerion (OHESD) Aug ’06 • Gas detection products & technologies
SPSL (SSD) Aug ’06 • Core changing addition of secure printing technology,
products, marquee customers
Global Beverage Group Nov ’06 • Direct store delivery management software
(T&T)
Ekahau, Oy (T&T) Nov ’06 • Access to new technology
E. Wood Holdings (CPP) May ’07 • New products & technologies in liquid coatings, also new
products & access for the water market
Rochford Thompson (SSD) July ’07 • New authentication products & technologies
Over $325M of sales expected in 2008
2007 3M Investor Conference 28
© 3M 2007
- 29. Our Acquisition Of SPSL Enables Us To More Fully Serve The
Passport Market
Core
Adjacent
Building our capabilities in border and civil security systems Intl’
EBO’s
Assets/capabilities added
• Secure passport/document printing capability (enables addition of
security film and other features)
• ePassport technology and manufacturing
• Significant Tier 1 customer relationship – United Kingdom
passport contract
2007 3M Investor Conference 29
© 3M 2007
- 30. Our Acquisition Of Rochford Thompson Extends Our Abilities
In Border Security
Core
Airline Kiosks, Law Adjacent
Acquired with RT
Border Control Enforcement, Public Intl’
EBO’s
Transport, Hospitality
• A clear leader in the
passport reader
products market
globally
2007 3M Investor Conference 30
© 3M 2007
- 31. As A Result, We Are Now Contributing To Security Solutions
Across The World
Core
Adjacent
Intl’
EBO’s
2007 3M Investor Conference 31
© 3M 2007
- 32. Our E. Wood Acquisition Moves Us Into The Water Market
Core
Pipelines are wearing out en masse over the next 30 years, and repairs are Adjacent
Intl’
complicated by in-ground conditions EBO’s
Material Installed Average life Repairs begin
Cast Iron 1880’s 120 yrs. 2000-2030
Ductile Iron 1920’s 100 yrs. 2005-2035
Steel 1940’s 75 yrs 2010-2040
Potable water loss from corroded infrastructure (estimates)
• Italy 40%
• Boston 36%
• Norway 50-70%
• London 50%
Aging water infrastructure is a global issue
2007 3M Investor Conference 32
© 3M 2007
- 33. The E. Wood Solution Provides For Trench-less Water Pipe
Rehabilitation And Protection
Core
Adjacent
Intl’
EBO’s
Rehabilitated pipe
Apply product
Clean in place
Existing pipe
• Expected 75 yr
life
2007 3M Investor Conference 33
© 3M 2007
- 34. Last Year We Articulated 4 Key Strategies
Core growth • Drive new product introductions
• Assure the Maintenance Free Respirator franchise
• Eliminate capacity constraints
Adjacencies/M&A • Border and civil security
• Water market
International • Emerging market channel/sales coverage
• Optimize supply chain & regional manufacturing
• Local/regional product coverage & development
EBO & Special initiatives • T&T EBO
• Mining market center EBO
2007 3M Investor Conference 34
© 3M 2007
- 35. Strong International Growth
Country growth 2006 (%) Core
Adjacent
Intl’
EBO’s
60%
44%
41%
38%
34%
25% 24% 23%
20% 19% 19%
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Br
Af
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Po
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Double digit international growth
2007 3M Investor Conference 35
© 3M 2007
- 36. Maintenance Free Respirators Used To Be Supplied By Two
Plants
Maintenance Free Respirator supply chain 2005 Core
ILLUSTRATIVE
Adjacent
Intl'
EBO’s
2007 3M Investor Conference 36
© 3M 2007
- 37. An Additional Plant Has Allowed Us To Dramatically Shorten
The MFR Supply Chain
Maintenance Free Respirator supply chain 2007 Core
ILLUSTRATIVE
Adjacent
Intl’
EBO’s
3 week reduction in supply chain time to Asia
Less costly local source of raw materials
2007 3M Investor Conference 37
© 3M 2007
- 38. Two Manufacturing Sites Formed The Foundation Of The
Corrosion Protection Supply Chain In 2002
Corrosion protection supply chain 2002 Core
ILLUSTRATIVE
Adjacent
Intl’
EBO’s
2007 3M Investor Conference 38
© 3M 2007
- 39. Corrosion Protection Customers Will Soon Be Served By A
Number Of Regional Supply Hubs
Corrosion protection supply chain - Future Core
ILLUSTRATIVE
Adjacent
Intl’
EBO’s
Significant lead time reductions to customers
Reduced inventory requirements
2007 3M Investor Conference 39
© 3M 2007
- 40. Our Local Labs Are Driving Local Innovation
Core
Adjacent
Intl’
EBO’s
Working with customers - globally
2007 3M Investor Conference 40
© 3M 2007
- 41. Last Year We Articulated 4 Key Strategies
Core growth • Drive new product introductions
• Assure the Maintenance Free Respirator franchise
• Eliminate capacity constraints
Adjacencies/M&A • Border and civil security
• Water market
International • Emerging market channel/sales coverage
• Optimize supply chain & regional manufacturing
• Local/regional product coverage & development
EBO & Special initiatives • T&T EBO
• Mining market center EBO
2007 3M Investor Conference 41
© 3M 2007
- 42. Track & Trace EBO: Tapping Into The Next Great Market
Opportunity
Core
Adjacent
Intl’
EBO’s
Who Am I? Where Am I? How Am I?
Identify Locate Evaluate Optimize
Products: ·RFID ·Sensors and
·GPS ·Location-based
·Active RFID sensor networks services
·RFID/RTLS
·Logistics &
·Bar-code ·Ultrasound ·Software
optimization
solutions
2007 3M Investor Conference 42
© 3M 2007
- 43. Breakthrough New Product – Specimen Management System
Core
Adjacent
Intl’
EBO’s
ct . 1
t Pi
duc
P ro
Description Advantages
An RFID enabled solution that tracks and • Increased patient safety – limits mix-up,
manages specimen movement from surgical mislabeling and loss of specimen samples
suites, through pathology laboratories, to which can lead to inappropriate diagnosis
result at the patient’s bedside • Increased efficiency – process optimization
through visibility and management of all
samples throughout the hospital
2007 3M Investor Conference 43
© 3M 2007
- 44. Sample Patient Safety Applications
Core
Sample Hospital Floor Plan Nurses station Adjacent
Intl’
Patient Rooms EBO’s
Medical Oncology Labor/Delivery
Cardiology Conference
Mrs. Smith
Family
Rooms DR DR Perinatology
& Genetics
Catheterization Obstetric Surgical Suites
Suites
Cardiac
Administration
Locate
Intensive DR Baby Smith
Stat Lab
Lobby Nursery
NICU
Care
Mrs. Smith
Post-partum/Maternity
Catheterization Patient Rooms
Recovery
Track Optimize/Protect
Locate
Mrs. Smith Rules-based
Infusion pumps
Infusion pumps
Baby Smith movement
Crash carts
Crash carts
monitoring &
DR Physicians
DR Physicians
notification
PT Patients
PT Patients
Mrs. Smith Specific patients
Mrs. Smith Specific patients
2007 3M Investor Conference 44
© 3M 2007
- 45. Sample Patient Safety Applications
Core
Sample Hospital Floor Plan Nurses station Adjacent
Intl’
Patient Rooms EBO’s
Medical Oncology Labor/Delivery
Cardiology Conference
Mrs. Smith
Family
Rooms DR DR Perinatology
ALARM
& Genetics
Catheterization Obstetric Surgical Suites
Suites
Cardiac
Administration
Locate
Intensive DR Baby Smith
Stat Lab
Lobby Nursery
NICU
Care
Mrs. Smith
Post-partum/Maternity
Catheterization Patient Rooms
Recovery
Track Optimize/Protect
Locate
Mrs. Smith Rules-based
Infusion pumps
Infusion pumps
Baby Smith movement
Crash carts
Crash carts
monitoring &
DR Physicians
DR Physicians
notification
PT Patients
PT Patients
Mrs. Smith Specific patients
Mrs. Smith Specific patients
2007 3M Investor Conference 45
© 3M 2007
- 46. New Mining EBO: Bringing The Big 3M To Mining Globally
Core
Adjacent
Intl’
EBO’s
Market focused organization – dedicated to mining customers
“Driving Growth at the Customers’ Place with the Customers Pace”
2007 3M Investor Conference 46
© 3M 2007
- 47. Multiple Forces Driving Growth In The Mining Industry
Core
Adjacent
Intl’
EBO’s
Growth Drivers Regional 3M Mining Sales Growth
’04-’07 CAGR
• Increased worker safety compliance
• Increased environmental
awareness
19% 22%
• Continuing productivity challenges
21%
• Consolidation among incumbents
• Regulatory activity in developing
23%
economies
Significant untapped potential
2007 3M Investor Conference 47
© 3M 2007
- 48. Focused On Rapid Development Of Innovative Products And
Services
Core
Adjacent
Personal Safety
Smart Safety Intl’
EBO’s
24x7 Onsite Service
Dust Suppression
2007 3M Investor Conference 48
© 3M 2007
- 49. Agenda
• Our markets and businesses
• Driving growth for the future
• Summary
2007 3M Investor Conference 49
© 3M 2007
- 50. Driving The Execution Of Our Key Strategies To Accomplish
Our Dream: A $10 Billion Business
ILLUSTRATIVE
Core growth
Governments
SSD
Adjacencies/M&A CPP B&CSD
Businesses
OH&ESD
Customers
T&T EBO
T&T
T&T EBO
IMPD
Mining
Global focus Consumers
EBO & Special initiatives Safety - People Security - Processes Protection - Assets
2007 3M Investor Conference 50
© 3M 2007