Company: 3M

Annual report 2013( Chairman’s Report)

Three key strategic levers enabled outstanding performance last year. They are portfolio
management, investing in research and development, and business transformation. Here
are a few highlights:
 Portfolio Management
to gain cost savingsand to address underperforming businesses. Similarly, we enhanced our product
offerings and improved our relevance to customers in other businesses, and when it made sense,
we exited.
 Investing in Research and Development
Innovation is now, and always will be, the heartbeat of our company. That’s why we
continued to invest in R&D and increased investments focused on long-term disruptive
technologies aimed at opportunities with significant growth potential. In fact, we funded
20 new product platforms in 2013, several of which are expected to be introduced to the
market this year. By 2017, our annual investment in R&D will reach 6 percent of sales.
 Business Transformation
We are making good progress with Business Transformation as we continue to implement
our global Enterprise Resource Planning system. We successfully launched in multiple
countries last year and learned much that will accelerate our success going forward. This
integrated global IT platform will enable greater organizational efficiency and productivity.

Overall, I am very pleased with our progress in 2013. We delivered good broad-based
performance while investing and building for long-term success. We continue to be inspired and
motivated by our vision.

Annual report 2014 ( Chairman’s message)

Sales for the year were $32 billion, an all-time high. Earnings-per-share rose to $7.49.
We expanded operating income to more than $7 billion, and operating margins to 22.4
percent.
• Our earnings-per-share growth target is 9 to 11 percent per year, on average;
in 2014, earnings-per-share grew 11.5 percent.
• Our organic growth target is 4 to 6 percent per year, on average;
in 2014, we grew 4.9 percent organically.
• Our target for Return on Invested Capital is approximately 20 percent;
in 2014, we achieved 22 percent.
• Our Free Cash Flow Conversion target is approximately 100 percent;
in 2014, we hit 104 percent.
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Strategic Levers Power Us Forward
In last year’s letter, I highlighted 3M’s three strategic levers: Portfolio Management,
Investing in Innovation and Business Transformation. In 2014, those levers continued to
not only drive results today, but also strengthen our foundation for long-term prosperity.
The first lever is Portfolio Management. Core to 3M is our culture of continuous
improvement, which includes actively managing and enhancing our portfolio. Since
2012, for example, we’ve realigned from six sectors to five business groups, and
from 40 businesses to 27. In 2014 alone, we combined businesses within three of our
business groups to increase customer relevance, build scale and drive efficiencies.
Mergers and Acquisitions are another piece of portfolio management. Last year we
invested $1 billion in acquisitions, including acquiring the remaining 25 percent of our
Sumitomo subsidiary. 3M now has full control of one of our largest and most successful
subsidiaries, and we look forward to growing that business even further into the future.

2018 ( Chairman’s Report)

Comparing the Chairman’s report of 2013 and 2014 with year 2018. 3M is as grown
tremendously built up over generation having cutting-edge technology platforms and
manufacturing capabilities. The brands having a truly global reach.also has an incredible
team of people who leverage the strengths to deliver premium results.With this one can
conclude 3M is moving in right direction ahead to meet and fulfilling toughest challenges.