UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 1-3285 3M COMPANY (Exact name of registrant as specified in its charter) Delaware 41-0417775 (State or other jurisdi ...

2023 Third Quarter Earnings (unaudited) Mike Roman Monish Patolawala Bruce Jermeland Chairman of the Board and President and Chief Senior Vice President, Chief Executive Officer Financial Officer Investor Relations 2 Forward-looking statements This presentation contains forward-looking information about 3M’s financial results and estimates and business prospects that involve substantial risks and uncertainties. You can identify these statements by the use of words such as “plan,” “expect,” “aim,” “believe,” ...

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3M Company (NYSE:MMM) Q2 2023 Earnings Conference Call July 25, 2023 9:00 AM ET Company Participants Bruce Jermeland - Senior Vice President of Investor Relations Mike Roman - Chairman & Chief Executive Officer Kevin Rhodes - Chief Legal Officer Monish Patolawala - Chief Financial & Transformation Officer Conference Call Participants Andrew Obin - Bank of America Andrew Kaplowitz - Citigroup Scott Davis - Melius Research Joe Ritchie - Goldman Sachs Chris Snyder - UBS Nicole DeBlase - Deutsche Bank Stephen T ...

Currency Impact and Financial Performance - The stronger U.S. dollar negatively impacted sales in Q2 and the first six months of 2023, with foreign currency effects reducing earnings despite hedging strategies[314] - Safety and Industrial segment sales decreased by 5.5% in Q2 2023, with organic sales declining by 4.6% and translation effects contributing to a 0.9% decrease[332] Stock Repurchase and Financial Position - In the first six months of 2023, the company repurchased $29 million of its own stock, compared to $773 million in the same period in 2022, with $4.2 billion remaining under the repurchase authorization[315] Cost Management and Profitability - Cost of sales decreased to 55.3% of net sales in Q2 2023 from 58.5% in Q2 2022, primarily due to lower litigation costs and higher selling prices[316][319] - The Safety and Industrial segment reported an operating income of $534 million in Q2 2023, a significant improvement from a loss of $707 million in Q2 2022[333] - Adjusted operating income for the Safety and Industrial segment decreased by 2.4% in Q2 2023 compared to the same period in 2022, reflecting ongoing litigation and restructuring impacts[334] Expenses and Investments - SG&A expenses increased significantly in 2023 due to a $10.3 billion pre-tax charge related to a PFAS settlement agreement with U.S. public water systems[321] - R&D expenses increased slightly to 5.7% of net sales in Q2 2023 from 5.5% in Q2 2022, reflecting continued investment in innovation and product development[322] Pension and Tax Considerations - The company expects a $160 million pre-tax decrease in global defined benefit pension and postretirement service cost expense in 2023 compared to 2022[317] - The company's effective tax rate was 24.2% in Q2 2023, compared to -38.3% in Q2 2022, influenced by litigation-related charges and settlement agreements[323] Risks and Contingencies - Forward-looking statements include risks related to worldwide economic, political, regulatory, and external conditions such as interest rates, inflation, and trade restrictions[387] - Risks related to the COVID-19 pandemic and its impact on public health and operations[387] - Liabilities and contingencies related to PFAS chemicals and the company's plan to discontinue their use[387] - Risks associated with the proposed class-action settlement regarding PFAS, including court approval and potential opt-outs[387] - The company's strategy for growth, future revenues, earnings, cash flow, and market position[387] Market Risks and Risk Management - Exposure to market risks from foreign currency exchange rates, interest rates, and commodity prices[391] - No material changes in market risk information from the end of the preceding year until June 30, 2023[391] - Risk management discussions are provided in the Derivatives note within the Quarterly Report[391]

3M Company (NYSE:MMM) Bernstein 39th Annual Strategic Decisions Conference May 31, 2023 9:00 AM ET Company Participants Mike Roman - Chairman and CEO Bruce Jermeland - SVP, IR Conference Call Participants Brendan Luecke - Bernstein Brendan Luecke Good morning. My name is Brendan Luecke. I cover multi-industrials with Bernstein. It’s my great pleasure today to welcome Mike Roman, Chairman and CEO of 3M, joining us again at SDC this year. Thank you for joining us, Mike. Mike Roman Thank you, Brendan. Thank yo ...

Financial Data and Key Metrics Changes - In Q1 2023, total adjusted sales were $7.7 billion, down 9.7% year-on-year, with adjusted organic sales decreasing by 5.6% [13][17][18] - Adjusted earnings per share (EPS) were $1.97, with adjusted margins at nearly 18% [13][14] - Adjusted free cash flow increased to approximately $950 million, up 24% year-on-year, with a conversion rate of 87% [21][22] Business Line Data and Key Metrics Changes - **Safety and Industrial**: Sales of $2.8 billion, down 6% organically, with a significant decline in disposable respirator demand impacting results [23][25] - **Transportation and Electronics**: Adjusted sales of $1.7 billion, with an 11.3% decline in organic growth, heavily affected by consumer electronics demand [26][27] - **Healthcare**: Q1 sales were $2 billion, with organic growth of 1.4%, and operating income down 19% year-on-year [28][29] - **Consumer**: Sales of $1.2 billion, down 6.8% organically, with particular weakness in the U.S. market [30][31] Market Data and Key Metrics Changes - The company experienced significant end-market weakness in consumer electronics, with a 35% decline in the electronics business and a 20% decline in China [16][39] - The automotive sector showed resilience, with a 6% increase in the auto OEM business [26][39] Company Strategy and Development Direction - The company is focusing on high-growth markets such as automotive electrification, personal safety, and healthcare, while also investing in emerging markets like climate technology and sustainable packaging [11][12] - A restructuring program is being implemented to streamline operations, reduce costs, and enhance supply chain efficiency, with an expected total pre-tax restructuring charge of $700 million to $900 million [10][14] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in consumer-facing markets and geopolitical issues, but expressed confidence in the company's ability to navigate these challenges and improve performance [15][32] - The full-year guidance for adjusted organic sales growth is expected to be in the range of -3% to flat, with adjusted EPS projected between $8.50 to $9 [33][34] Other Important Information - The company plans to eliminate approximately 6,000 positions globally, representing about 10% of its workforce, to improve cost structure [10][12] - The exit from PFAS manufacturing is being managed separately from the restructuring actions, with a total program cost expected to be between $1.3 billion to $2.3 billion [56][57] Q&A Session Summary Question: Sales cadence during Q1 and April - Management indicated that end markets played out as anticipated, with consumer-facing businesses experiencing declines, particularly in electronics and China [39][40] Question: Cost takeout and business disruption - Management emphasized that the restructuring actions are deliberate and aimed at positioning the company for growth and profitability without significant disruption [43][44] Question: Quarterly cadence of restructuring costs and savings - The restructuring charges are expected to be incurred throughout the year, with benefits primarily showing up in the second half [48][49] Question: Changes in go-to-market strategy - The catalyst for changes in the go-to-market strategy was the learning from recent experiences, aiming to optimize operations and better serve customers [51][52] Question: Impact of destocking at customer level - Management noted ongoing destocking in consumer retail and industrial markets, which is expected to continue into the second quarter [64][65]

2023 First Quarter Earnings (unaudited) Mike Roman Monish Patolawala Bruce Jermeland Chairman of the Board & Executive Vice President, Senior Vice President, Chief Executive Officer Chief Financial & Investor Relations Transformation Officer 2 Forward-looking statements This presentation contains forward-looking information about 3M’s financial results and estimates and business prospects that involve substantial risks and uncertainties. You can identify these statements by the use of words such as “anticip ...

Earnings and Profitability - 3M's diluted earnings per share for Q1 2023 was $1.76, a decrease from $2.26 in the same period last year, primarily due to special items such as litigation costs and PFAS product impacts[271] - Total organic growth/productivity and other factors negatively impacted earnings per share by $0.38, driven by declines in disposable respirator demand and lower sales volumes in electronics/consumer retail[273] - Net income including noncontrolling interest for Q1 2023 was $981 million, down from $1,303 million in Q1 2022[336] - Net costs for significant litigation, including respirator mask/asbestos and PFAS-related matters, impacted earnings per share by $0.39 in Q1 2023[280] Sales Performance - 3M's total sales change for Q1 2023 was -9.0%, with organic sales declining by 4.9% and divestitures contributing to a 1.3% decrease[282] - Net sales for the first quarter of 2023 decreased by 9.0% to $8,031 million compared to $8,829 million in the same period last year[284] - Safety and Industrial segment sales decreased by 8.9% to $2,779 million, with organic sales declining by 6.0%[284][306] - Transportation and Electronics segment sales decreased by 12.4% to $2,050 million, with organic sales declining by 8.0%[284] - Health Care segment sales decreased by 5.6% to $2,010 million, despite a 1.4% increase in organic sales[284] - Consumer segment sales decreased by 9.0% to $1,192 million, with organic sales declining by 6.8%[284] - Sales in Safety and Industrial decreased by 8.9% in Q1 2023, with organic sales impacted by a 9.9 percentage point decline due to disposable respirator sales and Russia exit[308] - Transportation and Electronics sales decreased by 12.4% in Q1 2023, with organic sales down 8.0% and divestitures impacting sales by 1.0%[311] - Health Care sales decreased by 5.6% in Q1 2023, with organic sales up 1.4% but offset by divestitures and translation impacts[316] - Consumer Business sales decreased by 9.0% in Q1 2023, with organic sales down 6.8% due to shifts in consumer spending patterns[319] Geographic Sales Performance - Americas geographic area sales were flat, with U.S. organic sales increasing by 1% and Mexico organic sales increasing by 10%[286] - Asia Pacific geographic area sales decreased significantly, with China organic sales declining by 18% and Japan organic sales declining by 10%[286] Foreign Currency and Market Risks - Foreign currency impacts decreased operating income by approximately $76 million year-on-year in Q1 2023, primarily due to the strength of the U.S. dollar[275] - The stronger U.S. dollar negatively impacted sales and earnings in the first quarter of 2023, despite the company's hedging strategies[288] - The company is exposed to market risks including foreign currency exchange rates, interest rates, and commodity prices, which could impact financial performance[356] Restructuring and Divestitures - Restructuring pre-tax charges increased to $52 million in Q1 2023, compared to $18 million in the same period last year[274] - Divestiture impacts included lost income from divested businesses and stranded costs, with 3M completing the split-off of the Food Safety business and deconsolidation of the Aearo Entities in 2022[276] - 3M plans to exit manufactured PFAS products by the end of 2025, with related sales and income impacts being adjusted in non-GAAP measures[280] Tax and Financial Metrics - The effective tax rate for Q1 2023 was 17.7%, a decrease from 18.8% in the prior year, primarily due to deferred tax impacts of 2023 activity[277] - 3M's total debt at March 31, 2023, was $15.96 billion, consistent with December 31, 2022, with $1.1 billion in commercial paper outstanding[324] - Total debt was approximately $16.0 billion at March 31, 2023, with $1.1 billion in commercial paper outstanding[346] - Net debt decreased by $55 million to $11.97 billion at March 31, 2023, compared to December 31, 2022[331] Liquidity and Cash Flow - 3M had $4.0 billion in cash, cash equivalents, and marketable securities at March 31, 2023, with $2.7 billion held by foreign subsidiaries[330] - 3M maintains a strong liquidity profile with a $3.0 billion revolving credit facility and a $1.25 billion 364-day credit facility, both undrawn at March 31, 2023[327] - Net cash provided by operating activities increased by $264 million to $1,275 million in Q1 2023 compared to Q1 2022[340] - Free cash flow for Q1 2023 was $800 million, with a free cash flow conversion rate of 82%, up from 45% in Q1 2022[350] Capital Allocation and Investments - The company repurchased $29 million of its own stock in the first quarter of 2023, compared to $773 million in the same period last year[289] - The company repurchased $29 million of its own stock in Q1 2023 and declared a first-quarter dividend of $1.50 per share, marking the 65th consecutive year of dividend increases[347] - Capital spending for 2023 is expected to be between $1.5 billion and $1.8 billion, focusing on growth, productivity, and sustainability[341] - The company is actively considering additional acquisitions, investments, and strategic alliances, and may divest certain businesses[344] Working Capital and Financial Position - 3M's working capital decreased by $758 million to $4.41 billion at March 31, 2023, compared to December 31, 2022[329] - Working capital decreased by $0.8 billion compared to December 31, 2022, with current assets increasing by $0.3 billion and current liabilities decreasing by $1.0 billion[334] Forward-Looking Statements and Risks - Forward-looking statements highlight risks such as global economic conditions, COVID-19 impacts, PFAS liabilities, and potential disruptions in IT systems[354]

Summary of 3M Company Conference Call Company Overview - **Company**: 3M Company (NYSE:MMM) - **Event**: Bank of America Global Industrials Conference - **Date**: March 23, 2023 - **Participants**: Monish Patolawala (EVP & CFO), Michael Roman (Chairman & CEO), Bruce Jermeland (VP, IR) Key Points Industry and Economic Context - **2022 Performance**: Described as a pivotal year with significant actions taken to position the company for long-term success [3][4] - **Economic Uncertainty**: The company continues to face an uncertain economic environment, impacting revenue projections for Q1 2023 [5][6] - **Revenue Guidance**: Projected revenue for Q1 2023 is between $7.2 billion and $7.6 billion, reflecting a year-on-year decline of approximately 10% at the midpoint [6][7] Financial Performance and Projections - **Market Trends**: Notable softness in consumer electronics and destocking at retailers, while industrial activity remains strong but cautious [7][8] - **Full Year Guidance**: For 2023, the company anticipates a revenue decline of 3% to 0% [8][9] - **Cost Management**: The company has been prudent in spending and is restructuring to align manufacturing capacity with demand [9][10] Strategic Initiatives - **Spin-off of Health Care Business**: The spin-off is expected to create two world-class companies, enhancing margins and cash flow [4][10] - **Exit from PFAS Manufacturing**: 3M plans to exit PFAS manufacturing by 2025, with a projected charge of $1.3 billion to $2.3 billion [4][59] - **Litigation Management**: Ongoing litigation related to PFAS and Aearo bankruptcy proceedings are being actively managed [60][62] Market Dynamics - **China Market Outlook**: Anticipated recovery in the second half of 2023, with expectations of an 8% increase in China's Industrial Production Index (IPI) [16][17] - **Consumer Behavior Changes**: Shift from discretionary spending to essential goods and services due to inflationary pressures [26][27] Operational Efficiency - **Job Restructuring**: Announced restructuring of 2,500 manufacturing jobs to align with volume needs [9][10] - **Inventory Management**: Focus on reducing inventory levels and improving working capital efficiency [48][49] Pricing Strategy - **Inflation Impact**: Inflation remains sticky, with the company prepared to adjust prices as necessary to maintain margins [51][52] - **Pricing Dynamics**: Historically, 3M has maintained a positive price/cost differentiation of 30 to 50 basis points [54][55] Future Outlook - **Long-term Growth**: The company aims for long-term growth at or above macroeconomic rates, leveraging digital transformation and new market trends [64][65] - **Operational Leverage**: Targeting 3% to 4% operating leverage over time, with a focus on efficiency and yield improvements [42][46] Additional Insights - **Health Care Sector**: The Health Care business is positioned for growth, with trends indicating increased demand for health services and IT solutions [36][38] - **Legal Challenges**: The company is transparent about ongoing litigation and its potential financial impacts, with a focus on providing updates as they arise [62][64] This summary encapsulates the key discussions and insights from the conference call, highlighting 3M's strategic direction, financial performance, and market outlook.