2018 Investor Day Consumer Business Group

Transcription

1 2018 Investor Day Consumer Business Group Joaquin Delgado, Ph.D. Executive Vice President November 15, 2018

2 Agenda: Consumer Business Group 2018 Investor Day Nov 15, 2018 Overview Imagination & creativity in commercializing Accelerating e-commerce growth Data-driven direct consumer demand generation 2

3 Consumer strategic intent Bringing 3M to the hearts and minds of consumers Imagination and Creativity in Commercializing Direct Consumer Demand Generation Cost Competitive, Best-in-Class Customer-Focused Service 3

4 Consumer Bringing 3M to the hearts and minds of customers 2018e sales First aid, muscle and joint solutions Protecting consumers from poor outdoor air quality $4.8B Consumer Health Care $0.4B Innovative home improvement solutions for consumers and professionals A direct consumer demand generation model through physical and digital retail channels, supported by 3M innovation and technology Delivering best-in-class customer-focused service to leading global retailers at a competitive cost Enhancing the feeling of home Communication tools for home, work and school Home Care $1.0B Stationery and Office Supplies $1.4B Construction & Home Improvement $2.0B Solutions that inspire creativity and imagination Making indoor air quality visible to consumers 4

5 Competing in large, global and growing market segments Home Improvement Market Size: $23B CAGR 18-23: 4 5% Consumer Air Quality Market Size: $17B CAGR 18-23: 10 11% Consumer Health Market Size: $15B CAGR 18-23: 4 5% Home Cleaning Market Size: $16B CAGR 18-23: 2 3% Stationery Products Market Size: $10B CAGR 18-23: 0 2% Arts and Crafts Market Size: $9B CAGR 18-23: 2 4% Source: Euromonitor International, WHO, Nielsen, IRI, Association for Creative Industries, NPD, 3M Internal Analysis 5

6 Shifting our mix towards higher-growth channels Executing a consumer demand generation model Retail Pharmacy CAGR: 0-2% Club CAGR: 4-5% e-commerce CAGR: 13-15% Lower Growth Higher Growth Office CAGR: -5-0% Mass/Hypermarket CAGR: 2-3% Home Improvement CAGR: 4-5% 6

7 A sustainability leader in the eyes of our customers and consumers 3M innovation enabling our customers to achieve their sustainability goals Reusable, recyclable or compostable products with reduced, recycled and recyclable packaging Reducing waste, water and energy usage in our manufacturing facilities Solutions to improve air quality and reduce global warming 7

8 Well-established and proven model for innovation & growth Science & Technology Consumer & Shopper Insights More agile Smarter Design Sooner Data Science & Analytics 8

9 Global growth platform that addresses poor air quality 93% of the world s children under the age of 15 breathe air that is so polluted it puts their health and development at serious risk* 72 of the top 100 most polluted cities are in India and China The U.S. Environmental Protection Agency lists indoor air quality as one of the top five environmental risks to public health Segment opportunity $17B Growing >10% *Source: World Health Organization Outdoor air quality solutions Indoor air quality solutions 9

10 Air quality solutions inspired by consumers and powered by 3M design, science and technology Science & Technology Nonwoven materials Filtration, separation and purification Sensors, electronics and software Fit-test science Commercialized New Products Outdoor Air Quality Solutions: Adult Respirator Children s Respirator Indoor Air Quality Solutions: Pollen Respirator Consumer & Shopper Insights Making air quality and filter life visible to consumers with an embedded sensor solution Design Data Science & Analytics Integration of air filtration technology into intuitive devices HVAC Filters AirCon Filters Connected Filters Room Air Purifiers Metal-Free Filters Connected Air Purifiers Filter life Purchase push notification End user-demand generation 10

11 Consumer products introduced in 2018 New platforms are key to delivering $1B of growth over the next 5 years Extending Existing Platforms to New Consumers Developing New Platforms Extreme Notes Designer Hooks Air Quality Connected Solutions Room Air Purifiers Connected Filters Scrub Dots Child Respirators Launching New Categories in 2019 Adaptive Shipping Solutions 11

12 Convergence of physical and digital ecosystems provides additional growth opportunities for our business Limited product assortment Structured planogram resets Endless digital shelf Real-time assortment updates Brick & Mortar Uniform fulfillment Omnichannel Convergence Flexible fulfillment e-commerce Newness Value Convenience Introducing consumer-inspired new product innovation more rapidly through online platforms Using data science to optimize value for retailers and consumers by transforming product assortment, placement and presentation Enabling consumers to shop our products in the channel they prefer 12

13 e-commerce is a fast-growing and profitable channel Increasing consumer demand generation with targeted channel innovation Optimized Product Assortment Direct-to-Consumer Digital Demand Generation Search optimization Right SKUs and assortment that drive optimal value for our consumers, retail partners and 3M Targeted digital promotions Geotargeted messaging for consumers/retailers Tailored Product Configuration & Packaging Data Science-Driven Point of Sale Growth Brick & Mortar Online Ready-to-ship product configuration and packaging Use of Machine Learning and Artificial Intelligence to accelerate profitable online channel growth 13

14 Increasing speed of our business with data science and analytics Machineenabled efficiency Humaninspired creativity Rich content generation Data driven Content ideation Assortment optimization Media effectiveness and efficiency Bigger pointof-sale impact Faster decisions Retailer collaboration Portfolio innovation 14

15 Summary Organic local-currency growth % to 4% Imagination and creativity fueling commercialization of innovative new products that further strengthen our category-defining brands Omnichannel convergence creating sustained, profitable growth opportunities Increasing the speed of our business and our impact on Point-of-Sales growth by using data science to unleash human-inspired creativity 15

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