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Products: 3M Company (MMM)

Industrial(Industrial)
Safety and Graphics(Safety and Graphics)
Health Care(Health Care)
Electronics and Energy(Electronics and Energy)
Consumer(Consumer)

Industrial

What is being offered?

3M's Industrial Adhesives and Specialty Chemicals division offers a wide variety of products, serving a broad range of markets, such as automotive original equipment manufacturer (OEM) and automotive aftermarket (auto body shops and retail), electronics, appliance, paper, and printing, packaging, food and beverage, and construction. Industrial products include vinyl, polyester, foil and specialty industrial tapes and adhesives, packaging equipment, reclosable fasteners, label materials, window films, and filtration products. The company's transportation products include insulation products, fasteners and tapes, interior panels and carpeting, and structural adhesives. Some of the company's well-known brands in this division include Scotch Masking and Packaging Tape, VHB Bonding Tapes, and Scotchtint Window Film.

Who is buying?

3M's Industrial and Transportation division primarily serves the industrial and manufacturing industry, with end-markets such as paper and packaging, appliances, food and beverage, electronics, automotive manufacturing and automotive aftermarket (auto body shops and retail). Individual consumers also purchase some of the division's products such as packaging/masking tape. This segment also includes 3M purification (filtration products), closure systems for personal hygiene products, acoustic systems products, and components and products that are used in the manufacture, repair, and maintenance of automotive, marine, aircraft, and specialty vehicles.

Competitors:

The company competes against conglomerates such as DuPont and Avery Dennison, as well as more specialized manufacturers of adhesives, paper and packaging products, and automotive products.

What buyers care about:

  1. Performance
  2. Durability
  3. Innovation
  4. Price

3M's top selling point

  1. Strong brand with proven performance
  2. Innovative products, some of which have no viable substitutes in market
  3. Scale allows the company to offer competitive prices

Industrial Revenues

Industrial Revenues refers to 3M's sales from Industrial segment.

3M's revenues from this segment had been increasing at a steady pace until 2014 as a result of growth in markets such as aerospace and commercial transportation, automotive OEM, 3M Purification Inc., advanced materials, and abrasive systems. In 2015, foreign currency translations played a huge role in the over 6% decline in the revenues from this segment. This factor together with divestitures offset any improvement seen in 2016, due to which the revenue growth was relatively flat. Strong organic growth in 2017, benefiting from increased demand from automotive, aerospace, and industrial adhesives and tapes customers, resulted in an over % growth in revenues from the segment. The growth was led by a high single-digit increase in Asia-Pacific, followed by mid-single-digit growth in both EMEA and Latin America/Canada. Industrial Revenues stood at $10.9 billion in 2019.

Chart: Industrial Revenues

Safety and Graphics

What is being offered?

3M's Safety and Graphics division provides a wide variety of services and products aimed at increasing the safety, security, and productivity of people, facilities, and systems. Personal protection products include disposable and reusable respirators, protective eyewear, hearing protection, spill-control products, and reflective materials for clothing. In traffic safety and security, 3M provides reflective sheeting for road signs and license plates, pavement and marking systems, electronic surveillance products, etc. The security equipment includes radio frequency identification (RFID) technology, border and civil security services, biometrics systems, electronic surveillance systems, and people-monitoring systems. Major commercial graphics products include films, inks, and related products used to produce graphics for vehicles, signs, and interior surfaces.

Who is buying?

This segment serves a broad range of markets aimed at increasing the safety, security, and productivity of workers, facilities, and systems. Customers include law enforcement agencies, elderly care facilities, manufacturing facilities, and governments. The end markets also include traffic safety, electronic displays, and commercial graphics.

Competitors:

The company's competitors include conglomerates such as DuPont and Avery Dennison, and smaller specialized companies focused on security and safety products, ink, and graphics products.

What buyers care about:

  1. Performance
  2. Cost
  3. Versatility

Top selling points:

  1. Strong brand with well-known products and long track record
  2. Innovative products
  3. Competitive prices

Safety and Graphics Revenues

Safety and Graphics Revenues refers to 3M's sales from Safety and Graphics segment.

The revenues from this segment have been increasing at a moderate pace since a few years, save for 2015 when foreign currency translations resulted in a 4% decline in sales. The company has been very active on the M&A front in this segment in 2017. 3M completed the purchase of Scott Safety from Johnson Controls, which will help to strengthen its position in the attractive personal safety market. Safety and Graphics Revenues stood at $5.6 billion in 2019. The company has also sold its Identity Management business, its Tolling and Automated License/Number Plate Recognition business, and its Electronic Monitoring Business in its Transportation Safety division in order to focus on "connected roadways." Such efforts are expected to help in improving the sales for the company from this segment in the future.

Chart: Safety and Graphics Revenues

Health Care

What is being offered?

3M's Medical Supplies and Dental Products segment primarily offers medical, surgical, and dental supplies to medical clinics and hospitals, pharmaceuticals, dental practitioners, and medical device manufacturers. Medical and surgical supplies include medical tapes, wound closure products, casting materials, stethoscopes, surgical drapes and masks, sterilization equipment, drug delivery systems, and inhalers. Through a recent acquisition the company began offering products that disinfect and protect devices used for access into a patient's bloodstream.

The company's dental and orthodontic products include adhesives, crowns, sealants, tooth whiteners, and orthodontic appliances. 3M also develops and markets computer software for hospital coding and data classification, and provides related consulting services.

Who is buying?

Customers include medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, and health information systems, and food manufacturing and testing.

Competitors:

The company competes with conglomerates such as DuPont and Avery Dennison, health care and pharmaceutical companies such as Johnson and Johnson, and smaller specialized providers of healthcare products.

What buyers care about:

  1. Performance
  2. Durability
  3. Cost
  4. Uniqueness

Top selling points:

  1. Strong brand image, consistent track record
  2. Innovative and unique products, many of which are patent protected
  3. Scale allows the company to offer competitive prices

Health Care Revenues

Health Care Revenues refers to 3M's sales from Health Care seg

The revenues from this division have been improving steadily for a while now, except for in 2015 when foreign currency translations were responsible for the almost 3% fall in sales. The sales growth in this segment has been relatively broad-based across the entire Health Care portfolio, led by food safety, critical and chronic care, and health information systems.

Developing markets have been driving the revenue improvement for this segment, and are expected to continue to do so in the future as well, leading to a steady increase in the sales from this segment. In 2019 there was a surge in the revenue to $7.1 billion, led by M*Modal acquisition, but it is expected to grow in low-single-digits over the coming years.

Chart: Health Care Revenues

Electronics and Energy

What is being offered?

3M's Electronics and Energy division serves customers in the electronics and energy markets, including solutions that improve the dependability, cost-effectiveness, and performance of electronic devices; electrical products, including infrastructure protection; telecommunication networks, and power generation and distribution. The company's electronic and electrical products include fluids used in the manufacture of computer chips, cooling fluids, insulating materials, lubricants, flexible circuits and touch screens and monitors. Communications products primarily consist of fiber-optic solutions such as power cables, as well as interconnection products. It also offers optical films including films used for LCD monitors, automotive displays, and handheld devices such as phones and tablets and privacy filters for phones and computers.

Who is buying?

The display materials and systems business, which provides films, serves five distinct market segments: LCD computer monitors, LCD televisions, handheld devices such as cellular phones and tablets, notebook PCs, and automotive displays. It also provides products used in the manufacture of computer chips, and for cooling electronics, and lubricating computer hard disk drives. The energy solutions serves the world’s electrical and telecommunications markets, including electrical utilities, electrical construction, maintenance and repair, original equipment manufacturers (OEM), telecommunications central office, outside plant and enterprise, as well as aerospace, military, automotive and medical markets, with products that enable the efficient transmission of electrical power and speed the delivery of information.

Competitors:

The company competes against conglomerates such as DuPont and Avery Dennison, as well as specialized manufacturers of high-performance fluids, circuitry, and touch screens.

What buyers care about:

  1. Performance
  2. Products capable of working on different platforms
  3. Innovative and unique products

Top selling points:

  1. Strong brand with proven track record and successful products
  2. Dependable and cost effective
  3. Innovative products, some of which are patent protected and have no viable substitutes
  4. Extensive product line that provides customers with "one-stop shopping" for electrical and communications needs.

Electronics and Energy Revenues

Electronics & Energy Revenues refers to 3M's sales from Electronics & Energy segment.

Revenues from this segment have been up and down for a number of years. While the revenues increased in 2010 and 2011, they fell in 2012 and 2013. A recovery was seen in 2014, but foreign currency translations resulted in a fall again in 2015.

Weak end market demand across most consumer electronic applications resulted in an over 8% fall in the revenues from this segment in 2016. A recovery was seen in 2017, with 6.2% growth seen in the year. This was driven by increases in both display materials and systems and electronics materials solutions, as the businesses drove increased penetration on OEM platforms in addition to strengthened end-market demand in consumer electronics. In 2018 the sales increased at a reasonable rate of 1.2%, but dropped 11.2% to $4.5 billion in 2019.

Chart: Electronics and Energy Revenues

Consumer

What is being offered?

3M's Consumer and Office division offers office supply products, stationery, home improvement and home care products, certain consumer retail personal safety products, and consumer health care products. The company's well-known products in this segment include Post-It products, Scotch Magic Tape (packaging and other tapes are included in the company's Industrial and Transportation segment), Scotch Glue Sticks, ACE bandages, and Scotch-Brite products including sponges and scour pads, among many others.

Who is buying?

This segment serves many end markets including consumer retail, office retail, office business to business, home improvement, drug and pharmacy retail, and building maintenance. Many of these products are everyday products in both the office and the home.

Competitors:

The company's largest competitors include DuPont and Avery Dennison, as well as more specialized local and global manufacturers of consumer and office products.

What buyers care about:

  1. Performance
  2. Durability
  3. Price

3M's top selling point

  1. Strong brand with proven performance
  2. Improved productivity drives efficiencies
  3. Scale allows the company to charge competitive prices

Consumer Revenues

Consumer Revenues refers to 3M's sales from Consumer segment.

Revenues from this segment have been growing at a steady pace for a number of years, except in 2015 when foreign currency headwinds resulted in a 2.4% decline in the sales. In 2016, the sales growth was led by home improvement, in addition to consumer health care, driven by improvements seen in Asia Pacific. In 2017 sales grew in consumer health care, home improvement, and home care. In 2018 sales were flat, while sales grew 9.2% to $4.9 billion in 2019.

Chart: Consumer Revenues