3M (MMM) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the 3M First Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded, Tuesday, April 30, 2024.

女士們先生們，謝謝你們的支持。歡迎參加 3M 第一季財報電話會議。 （操作員說明）謹此提醒，此通話將於 2024 年 4 月 30 日星期二進行錄音。

I would now like to turn the call over to Bruce Jermeland, Senior Vice President of Investor Relations at 3M.

我現在想將電話轉給 3M 投資者關係高級副總裁 Bruce Jermeland。

Thank you, and good morning, everyone, and welcome to our first quarter earnings conference call. With me today are Mike Roman, 3M's Chairman and Chief Executive Officer; and Monish Patolawala, our President and Chief Financial Officer. Mike and Monish will make some formal comments, then we'll take your questions. Please note that today's earnings release and slide presentation accompanying this call are posted on the home page of our Investor Relations website at 3m.com.

謝謝大家，大家早安，歡迎參加我們的第一季財報電話會議。今天與我在一起的有 3M 董事長兼執行長 Mike Roman；以及我們的總裁兼財務長 Monish Patolawala。麥克和莫尼什將發表一些正式評論，然後我們將回答您的問題。請注意，今天的收益發布和伴隨本次電話會議的幻燈片演示已發佈在我們的投資者關係網站 3m.com 的主頁上。

Please turn to Slide 2. Please take a moment to read the forward-looking statement. During today's conference call, we'll be making certain predictive statements that reflect our current views about 3M's future performance and financial results. These statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Item 1A of our most recent Form 10-K lists some of the most important risk factors that could cause actual results to differ from our predictions.

請翻到投影片 2。在今天的電話會議上，我們將做出某些預測性陳述，以反映我們目前對 3M 未來業績和財務表現的看法。這些陳述是基於對未來事件的某些假設和預期，這些假設和預期存在風險和不確定性。我們最新的 10-K 表格的第 1A 項列出了一些可能導致實際結果與我們的預測不同的最重要的風險因素。

Please note, throughout today's presentation, we'll be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in the attachments to today's press release.

請注意，在今天的演示中，我們將引用某些非公認會計準則財務指標。非公認會計原則措施的調節可以在今天新聞稿的附件中找到。

Please turn to Slide 3. During today's presentation, Mike and Monish will discuss our total company Q1 2024 results, which are inclusive of the Health Care business and are on the same basis on which 3M provided first quarter guidance back in January. As we have mentioned, it is important to note that Solventum Corporation's separate financial reporting will differ from the basis of presentation used by 3M for the Health Care segment.

請參閱投影片 3。正如我們所提到的，值得注意的是，Solventum Corporation 的單獨財務報告將不同於 3M 醫療保健部門所使用的列報基礎。

3M's full year 2024 earnings guidance initiated today is on a continuing operations basis, reflecting Solventum as discontinued operations for the full year, including the first quarter of 2024. In addition, we will be treating changes in the value of our 19.9% equity interest in Solventum as a special item in arriving at non-GAAP results adjusted for special items.

今天啟動的 3M 2024 年全年盈利指引以持續經營為基礎，反映出 Solventum 全年已停止運營，包括 2024 年第一季。項目來得出針對特殊項目進行調整的非GAAP 績效。

And finally, we are providing additional financial information this quarter in our press release and slide presentation given the impact of the Solventum spin. We hope that you find the information useful in understanding our Q1 performance and outlook for 2024. We also plan on filing additional information on a continuing operations basis, including in late July or early August, Form 8-Ks with recast 2023, Form 10-K and Q1 2024 Form 10-Q information.

最後，考慮到 Solventum 旋轉的影響，我們將在本季度的新聞稿和幻燈片演示中提供更多財務資訊。我們希望您發現這些資訊有助於了解我們第一季的業績和2024 年的前景。 8-K、表格10- K 和 2024 年第一季 10-Q 表格資訊。

Please turn to Slide 4 for a summary of our updated post-spin financial reporting framework. Beginning with the second quarter, Safety and Industrial, Transportation and Electronics and Consumer business segment operating income will include the impact of the dis-synergies or stranded costs previously associated with Solventum.

請參閱投影片 4，以了解我們更新的分拆後財務報告架構的摘要。從第二季開始，安全與工業、運輸、電子和消費者業務部門的營業收入將包括先前與 Solventum 相關的協同效應或擱淺成本的影響。

In addition, we have added a new operating category named Other for Solventum transition service agreement costs, which 3M will be reimbursed for beginning here in April. Finally, Corporate and Unallocated will incorporate the commercial agreements between 3M and Solventum that started on April 1.

此外，我們還為 Solventum 過渡服務協議費用添加了一個名為「其他」的新營運類別，3M 將從 4 月開始報銷該費用。最後，企業和未分配將納入 3M 和 Solventum 之間於 4 月 1 日開始的商業協議。

One final comment. In the appendix on Slide 27, you will find information on our Public Water Suppliers and Combat Arms legal settlements, including the pretax payment schedule by year and total combined pretax present value and after-tax estimates.

最後一點評論。在投影片 27 的附錄中，您將找到有關我們的公共供水商和戰鬥武器法律和解的信息，包括按年份列出的稅前付款時間表以及稅前現值和稅後估算的總和。

With that, please turn to Slide 5, and I'll now hand the call off to Mike. Mike?

接下來，請翻到投影片 5，我現在會把電話轉給 Mike。麥克風？

Thank you, Bruce. Good morning, everyone, and thank you for joining us.

謝謝你，布魯斯。大家早安，感謝您加入我們。

In the first quarter, we delivered strong results that were better than our expectations as we returned to adjusted organic growth and achieved double-digit adjusted earnings growth. We improved performance across our businesses and in our operational execution. We also completed the spin-off of Solventum and finalized 2 major legal settlements.

第一季度，我們恢復了調整後的有機成長並實現了兩位數的調整後獲利成長，取得了好於我們預期的強勁業績。我們提高了整個業務和營運執行的績效。我們也完成了 Solventum 的分拆並完成了 2 項重大法律和解。

Our results demonstrate the positive impact of the changes we have made over the last several years. We've also made significant progress in executing our strategic priorities, which has positioned the company for long-term shareholder value creation.

我們的結果證明了我們過去幾年所做的變革產生了積極影響。我們在執行策略重點方面也取得了重大進展，這使公司能夠為股東創造長期價值。

In the first quarter, on an adjusted basis, we delivered revenue of $7.7 billion, including improved organic growth, operating margins of 22%, up 400 basis points; and earnings of $2.39 per share, up 21%.

第一季度，經調整後，我們實現了 77 億美元的收入，其中有機成長有所改善，營業利潤率為 22%，成長了 400 個基點；每股收益2.39美元，成長21%。

On April 1, we successfully completed the spin-off of our Health Care business, Solventum, creating 2 world-class companies well positioned to deliver greater shareholder returns through distinct and compelling investment profiles. As independent companies, both 3M and Solventum are better able to tailor their capital allocation and investment priorities to win in their respective markets.

4 月 1 日，我們成功完成了醫療保健業務 Solventum 的分拆，創建了兩家世界級公司，能夠透過獨特且引人注目的投資組合為股東帶來更大回報。作為獨立公司，3M 和 Solventum 都能夠更好地調整其資本配置和投資優先順序，以贏得各自的市場。

I want to thank and congratulate the teams whose dedication made this major accomplishment possible and wish the entire Solventum team, led by CEO, Bryan Hanson, great success in the future.

我要感謝並祝賀團隊的奉獻精神，使這一重大成就成為可能，並祝福由執行長 Bryan Hanson 領導的整個 Solventum 團隊在未來取得巨大成功。

In Q1, we also finalized 2 major legal settlements. First, our settlement agreement with U.S.-based Public Water Suppliers received widespread support and participation. It was granted final approval by the court on March 29. We anticipate making total payments with a pretax present value of up to $10.3 billion over the next 13 years. The first payment is expected in the third quarter of 2024.

第一季度，我們也敲定了 2 項重大法律和解。首先，我們與美國公共供水商達成的和解協議得到了廣泛的支持和參與。該法案於 3 月 29 日獲得法院最終批准。預計第一筆付款將於 2024 年第三季支付。

It is important to note our agreement with Public Water Suppliers addresses the detection of any type of PFAS at any level. This includes PFAS that have already been detected or may be detected in the future, including those that are the subject of the U.S. EPA's recently announced limits in drinking water.

值得注意的是，我們與公共供水商達成的協議涉及檢測任何級別的任何類型的 PFAS。這包括已經檢測到或將來可能檢測到的 PFAS，其中包括美國 EPA 最近宣布的飲用水限制中的 PFAS。

Second is our settlement of the Combat Arms multi-district litigation. As of today, more than 99% of claimants have chosen to participate. This provides us the certainty and finality the settlement was intended to achieve. We anticipate making total payments up to a pretax present value of $5.3 billion through 2029.

其次是我們解決了戰鬥武器跨區域訴訟。截至目前，超過99%的索賠人選擇參與。這為我們提供了和解預期要實現的確定性和最終性。我們預計到 2029 年，支付總額將達到 53 億美元的稅前現值。

We also continue to make good progress on our exit of all PFAS manufacturing. We are on track to meet our commitment by the end of 2025 and are working closely with each of our customers to complete an orderly transition.

我們在退出所有 PFAS 生產方面也繼續取得良好進展。我們預計在 2025 年底之前兌現我們的承諾，並與每位客戶密切合作，以完成有序過渡。

In summary, the progress across all 3 of our strategic priorities has helped make 3M stronger, leaner and more focused on what we do best: utilize 3M science to make indispensable products for our customers.

總而言之，我們所有 3 個策略重點的進展幫助 3M 變得更強大、更精簡，並且更專注於我們最擅長的領域：利用 3M 科學為我們的客戶製造不可或缺的產品。

I will now turn the call over to Monish for more details regarding our performance in Q1 and to discuss our guidance for 2024.

我現在將把電話轉給 Monish，了解有關我們第一季度業績的更多詳細信息，並討論我們對 2024 年的指導。

Thank you, Mike, and I wish you all a very good morning.

謝謝你，麥克，祝大家早安。

Please turn to Slide 6. We continue to build upon the strong foundation we laid in 2023. We remain focused on our priorities, and the team continues to deliver improving results.

請參閱投影片 6。我們繼續在 2023 年奠定的堅實基礎上再接再厲。

We posted strong adjusted results in the quarter, including sales of $7.7 billion, operating margin of 21.9%, earnings per share of $2.39 and free cash flow of over $800 million. These results were better than our expectations as we continue to drive strong operational execution and spending discipline.

我們在本季公佈了強勁的調整後業績，其中銷售額為 77 億美元，營業利潤率為 21.9%，每股收益為 2.39 美元，自由現金流超過 8 億美元。隨著我們繼續推動強而有力的營運執行和支出紀律，這些結果好於我們的預期。

We also benefited from significant operating leverage, particularly in Transportation and Electronics, which was driven by strong organic volume growth in electronics and automotive. Our results also benefited from the acceleration of certain nonrecurring actions, which I will go through in more detail on the next slide.

我們也受益於巨大的營運槓桿，特別是在運輸和電子領域，這是由電子和汽車領域強勁的有機銷售成長所推動的。我們的結果也受惠於某些非重複行動的加速，我將在下一張投影片中更詳細地介紹這些行動。

Our first quarter adjusted sales of $7.7 billion exceeded our expectations of $7.6 billion as we delivered improved organic growth, which was partially offset by a headwind from foreign currency translation. We delivered adjusted organic growth of nearly 1% or up 2.4% excluding geographic prioritization, product portfolio initiatives and last year's disposable respirator comp.

我們第一季調整後的銷售額為 77 億美元，超出了我們 76 億美元的預期，因為我們實現了有機成長，但部分被外幣換算帶來的不利影響所抵消。我們實現了近 1% 的調整後有機增長或增長 2.4%，不包括地理優先順序、產品組合計劃和去年的一次性呼吸器比較。

Organic growth was driven by our Transportation and Electronics business as the team won share gains from spec-in wins and new product introductions with automotive and consumer electronics OEMs. This drove strong organic growth as the OEMs ramp production for new launches for end customers.

有機成長是由我們的運輸和電子業務推動的，因為該團隊從汽車和消費電子原始設備製造商的規格勝利和新產品推出中獲得了份額收益。隨著原始設備製造商為最終客戶推出新產品而提高產量，這推動了強勁的有機成長。

Geographically, year-on-year strength in China and EMEA was driven by our strength in electronics and automotive. Sales in the U.S. were flat year-on-year with industrial and health care end markets showing relative strength, offset by consumer retail softness.

從地理上看，中國和歐洲、中東和非洲地區的同比增長是由我們在電子和汽車領域的實力所推動的。美國的銷售額與去年同期持平，工業和醫療保健終端市場表現出相對強勢，但被消費者零售疲軟所抵消。

Please turn to Slide 7 for details of the components that drove our year-on-year operating margin and earnings performance. As mentioned, on an adjusted basis, we delivered operating margins of 21.9%, up 400 basis points; and earnings of $2.39 per share, up 21% versus last year's first quarter.

請參閱投影片 7，以了解推動我們年比營業利潤和獲利表現的因素的詳細資訊。如前所述，經調整後，我們的營業利益率為 21.9%，上升 400 個基點；每股收益為2.39美元，比去年第一季成長21%。

Our first quarter performance was driven by improved organic growth, particularly in Transportation and Electronics, along with a continued focus on operations, restructuring actions and spending discipline, which drove better-than-expected improvements in operating margins of 340 basis points and earnings of $0.42 per share.

我們第一季業績的推動因素是有機成長的改善，特別是在運輸和電子領域，以及對營運、重組行動和支出紀律的持續關注，這推動了營運利潤率好於預期的340 個基點和0.42美元的收益改善每股。

As disclosed in our Form 10-K and as factored into our 1Q guidance that we provided in January, our year-on-year margins and earnings were benefited from the delay of our stock-based compensation grants from a normal timing in the first quarter to the second quarter due to the Solventum spin. This timing adjustment added 140 basis points to margins and $0.15 to earnings per share as compared to last year's first quarter.

正如我們在 10-K 表格中所揭露的，以及我們在 1 月份提供的第一季指引中所揭露的，我們的同比利潤率和收益得益於我們第一季正常時間的股票薪酬補助的延遲由於Solventum 旋轉，到了第二季。與去年第一季相比，這項時間調整使利潤率提高了 140 個基點，每股收益提高了 0.15 美元。

We also accelerated certain nonrecurring benefits, including property sales as we progress on our asset-light strategy. This benefited first quarter year-on-year operating margins by approximately 70 basis points and earnings by $0.08 per share.

隨著我們輕資產策略的進展，我們也加快了某些非經常性效益，包括房地產銷售。這使得第一季營業利潤年增約 70 個基點，每股收益成長 0.08 美元。

We accelerated restructuring actions in the quarter, incurring pretax charges of $122 million, which was higher than our guidance of $75 million to $100 million. This compared to last year's restructuring charge of $52 million, resulting in a negative year-on-year impact to margins of 90 basis points and $0.10 to earnings.

我們在本季加快了重組行動，產生了 1.22 億美元的稅前費用，高於我們 7,500 萬至 1 億美元的指引值。相比之下，去年的重組費用為 5,200 萬美元，導致利潤率年減 90 個基點，收益下降 0.10 美元。

Foreign currency negatively impacted adjusted margins by 60 basis points or a negative $0.09 per share as a result of the strong U.S. dollar. This headwind was larger than we had expected. The reconsolidation of Aearo Technologies in Q2 2023 resulted in a $0.01 benefit year-on-year to earnings per share and was neutral to margins.

由於美元走強，外幣對調整後利潤率產生了 60 個基點的負面影響，即每股負 0.09 美元。這個逆風比我們預期的還要大。 Aearo Technologies 於 2023 年第二季進行的重組導致每股收益年增 0.01 美元，並且對利潤率呈中性。

As expected, our adjusted tax rate was 20.5% this year, which was higher than when compared to 17.7% in last year's first quarter, resulting in a $0.09 headwind to earnings. And finally, other financial items and shares outstanding netted to a positive $0.04 per share year-on-year impact. This benefit was primarily driven by interest income on proceeds from Solventum's issuance of $8.4 billion in debt prior to the separation, partially offset by a non-op pension headwind.

正如預期，我們今年調整後的稅率為 20.5%，高於去年第一季的 17.7%，導致收益下降 0.09 美元。最後，其他金融項目和已發行股票對每股盈餘同比產生了 0.04 美元的正面影響。這項收益主要是由 Solventum 在分拆前發行 84 億美元債務所得的利息收入推動的，但部分被非營運退休金逆風所抵消。

Please turn to Slide 8. First quarter adjusted free cash flow was over $800 million. Adjusted free cash flow conversion was 63%, in line with our historical first quarter trends. We continue to focus on driving working capital efficiency, including improved cash conversion cycle times. I am pleased with the progress we have made, yet there remains significant opportunity to further improve performance in all aspects of working capital.

請參閱投影片 8。調整後的自由現金流轉換率為 63%，與我們第一季的歷史趨勢一致。我們持續致力於提高營運資金效率，包括縮短現金轉換週期。我對我們所取得的進展感到高興，但仍有進一步提高營運資本各方面績效的重大機會。

Adjusted capital expenditures were $355 million in the quarter, down 20% year-on-year. The lower year-on-year spend is primarily due to nearing completion on water filtration investments at our manufacturing facilities. And finally, we returned $835 million to shareholders via dividends.

該季度調整後資本支出為3.55億美元，較去年同期下降20%。年比支出減少主要是由於我們製造設施的水過濾投資即將完成。最後，我們透過股息向股東返還 8.35 億美元。

Turning to the balance sheet. Net debt at the end of Q1 stood at $10.4 billion, a decline of 13% year-on-year, driven by strong free cash flow generation of our businesses. Also of note, in late February, Solventum issued debt of $8.4 billion for which the repayment obligation went with Solventum, while 3M kept approximately $7.7 billion in proceeds upon spin on April 1. These proceeds, combined with our business' strong and reliable cash generation, have further strengthened our balance sheet. In addition, the retained 19.9% equity stake in Solventum will provide additional future liquidity.

轉向資產負債表。第一季末的淨債務為 104 億美元，年減 13%，這得益於我們業務強勁的自由現金流產生。另外值得注意的是，2 月底，Solventum 發行了84 億美元的債務，償還義務由Solventum 承擔，而3M 在4 月1 日分拆時保留了約77 億美元的收益。強大而可靠的現金產生能力，進一步增強了我們的資產負債表。此外，保留的Solventum 19.9%股權將提供額外的未來流動性。

Also, during the quarter, we retired $2.9 billion of debt. Our strong capital structure and robust cash generation provides us with the financial flexibility to continue to invest in our business, return capital to shareholders and meet the cash flow needs related to legal matters.

此外，本季我們還清了 29 億美元的債務。我們強大的資本結構和強勁的現金產生能力為我們提供了財務靈活性，可以繼續投資我們的業務、向股東返還資本並滿足與法律事務相關的現金流需求。

Now please turn to Slide 10 for a discussion on our business group performance, starting with our Safety and Industrial business, which posted sales of $2.7 billion, down 1.4% organically. Industrial end-market demand remained mixed in the quarter. We delivered strong double-digit growth in roofing granules, driven by replacement demand and storm repair.

現在請轉到投影片 10，討論我們的業務集團業績，首先是我們的安全和工業業務，該業務的銷售額為 27 億美元，有機下降 1.4%。本季工業終端市場需求仍參差不齊。在更換需求和風暴修復的推動下，我們的屋頂顆粒實現了兩位數的強勁成長。

Industrial Adhesives and Tapes posted low single-digit organic growth, driven by spec-in wins in new bonding solutions for consumer electronics devices. The Personal Safety business declined low single digits as strong demand for self-contained breathing apparatus for the first responder market was more than offset by year-on-year comp headwind from disposable respirators.

受消費性電子設備新型黏合解決方案規格勝利的推動，工業黏合劑和膠帶實現了較低的個位數有機成長。由於急救人員市場對自給式呼吸器的強勁需求被一次性呼吸器的同比競爭不利因素所抵消，個人安全業務出現低個位數下降。

And finally, we experienced year-on-year organic sales declines in electrical markets, abrasives, automotive aftermarket and industrial specialties. Geographically, industrial markets in the United States were up 1%, while China remained challenged.

最後，我們在電氣市場、磨料磨料、汽車售後市場和工業特種產品領域經歷了同比有機銷售下降。從地理來看，美國的工業市場成長了 1%，而中國仍面臨挑戰。

Adjusted operating income was $664 million, up 18% versus last year. Adjusted operating margins were 24.3%, up 410 basis points year-on-year. This performance was driven by benefits from ongoing productivity actions, timing of stock-based compensation and strong spending discipline. These benefits more than offset headwinds from lower sales volume and higher restructuring costs.

調整後營業收入為 6.64 億美元，比去年成長 18%。調整後營業利益率為24.3%，較去年同期上升410個基點。這項績效的推動因素包括持續的生產力行動、以股票為基礎的薪酬的時機和嚴格的支出紀律。這些好處足以抵銷銷售下降和重組成本上升的不利影響。

Moving to Transportation and Electronics on Slide 11, which posted adjusted sales of $1.8 billion or up 6.7% organically. Consumer electronics end markets were stable in the quarter, while the semiconductor market remains soft. Our electronics business outperformed the market, up mid-teens organically year-on-year. The introduction of new products continues to be well received in the market, as evidenced by recent spec-in wins. In addition, we also experienced continued channel inventory normalization as electronics demand stabilizes.

轉向幻燈片 11 上的運輸和電子產品，調整後銷售額為 18 億美元，有機成長 6.7%。本季消費性電子終端市場穩定，而半導體市場依然疲軟。我們的電子業務表現優於市場，與去年同期有機成長了十幾歲。新產品的推出繼續受到市場的好評，最近的規格說明勝利證明了這一點。此外，隨著電子產品需求的穩定，我們也經歷了通路庫存持續正常化。

Our auto OEM business increased 13% in Q1 versus a 1% decline in global car and light truck builds. We continue to win increased penetration, including strong momentum in automotive electrification, which was up over 30% year-on-year in Q1. We also saw an increase in channel inventory at tier suppliers during the quarter given the forecasted 8% sequential increase in the auto OEM builds from Q1 to Q2.

我們的汽車 OEM 業務在第一季成長了 13%，而全球汽車和輕型卡車製造業務則下降了 1%。我們繼續贏得更高的滲透率，包括汽車電氣化的強勁勢頭，第一季同比增長超過 30%。鑑於汽車 OEM 產量預計從第一季到第二季將較上季成長 8%，我們也發現本季一級供應商的通路庫存有所增加。

Looking at the rest of Transportation and Electronics, commercial branding and transportation grew low single digits organically, and advanced materials was flat year-on-year. While our Transportation and Electronics business is off to a good start to the year, we estimate that approximately 2/3 of the strong first quarter organic growth was driven by initial buy ahead by customers as they ramp production and introduce new products, along with channel inventory normalization.

看看運輸和電子的其他部分，商業品牌和運輸有機成長低個位數，先進材料比去年同期持平。雖然我們的運輸和電子業務今年開局良好，但我們估計第一季強勁有機成長的約 2/3 是由客戶在提高產量和推出新產品以及通路時的初始購買推動的庫存正常化。

Transportation and Electronics delivered $479 million in adjusted operating income, up 68% year-on-year. Adjusted operating margins were 26.3%, up 960 basis points versus Q1 last year. The team achieved this result through strong leverage on improved electronics volumes, ongoing productivity actions, strong spending discipline and the previously mentioned timing of stock-based compensation grants. Partially offsetting these benefits were headwinds from restructuring costs.

運輸和電子業務實現調整後營業收入 4.79 億美元，年增 68%。調整後營業利益率為 26.3%，比去年第一季上升 960 個基點。該團隊透過大力提高電子產品產量、持續的生產力行動、嚴格的支出紀律以及前面提到的基於股票的薪酬補助的時機來實現這一結果。重組成本的不利因素部分抵消了這些好處。

Turning to Slide 12. The Consumer business posted first quarter sales of $1.1 billion. Organic sales declined 3.9% year-on-year with continued softness in consumer discretionary spending, which included a 2.4 percentage point impact from portfolio and geographic prioritization. Home Improvement and Consumer Safety and Well-Being declined low single digits. And Home and Auto care declined mid-single digits, while Packaging and Expression declined high single digits organically.

轉向投影片 12。由於消費者可自由支配支出持續疲軟，有機銷售額年減 3.9%，其中包括投資組合和地理優先順序造成的 2.4 個百分點的影響。家居裝修以及消費者安全和福祉下降了低個位數。家庭和汽車護理下降了中個位數，而包裝和表達有機下降了高個位數。

We continue to invest in the business, including supporting successful new product launches, such as Command Heavyweight hanging products and sustainably focused Scotch-Brite cleaning tools and Scotch Home and Office tapes. Organic growth declined across all geographies. The U.S. was down low single digits, Asia Pacific mid-single digits and EMEA high single digits.

我們繼續投資該業務，包括支援新產品的成功發布，例如 Command Heavyweight 懸掛產品和可持續發展的 Scotch-Brite 清潔工具以及 Scotch 家用和辦公室膠帶。所有地區的有機成長均有所下降。美國下降了低個位數，亞太地區下降了中個位數，歐洲、中東和非洲地區下降了高個位數。

Consumer's first quarter operating income was $216 million, up 21% compared to last year with operating margins of 19%, up 400 basis points year-on-year. The improvement in operating margins was driven by benefits from productivity actions, portfolio initiatives, strong spending discipline and the previously mentioned timing of stock-based compensation grants. Partially offsetting these benefits were headwinds from lower sales volume and higher restructuring costs.

消費者第一季營業收入為2.16億美元，年增21%，營業利益率為19%，較去年同期成長400個基點。營業利潤率的改善得益於生產力行動、投資組合計劃、嚴格的支出紀律以及前面提到的基於股票的薪酬補助的時機。銷售下降和重組成本上升帶來的不利因素部分抵消了這些好處。

Finally, included in the appendix is a slide in the first quarter performance for Health Care. The business delivered results within our expectations with organic growth of 1% and operating margins of 17.5%.

最後，附錄中包含了醫療保健第一季業績的幻燈片。業務的業績符合我們的預期，有機成長 1%，營業利潤率為 17.5%。

Now turning to guidance for the year on Slide 14. As Bruce mentioned at the beginning of the call, our full year 2024 outlook initiated today is on a continuing operations basis, reflecting Health Care as discontinued operations for the full year, including the first quarter.

現在轉向幻燈片14 上的全年指引。停產業務，包括第一季。

We have confidence in the momentum we have built throughout 2023. We continue to deliver strong results, including the first quarter, which was better than expectations. The guidance initiated today represents a return to growth, adjusted margins up 200 to 275 basis points year-on-year versus the illustrative midpoint of 18.7% for 2023 and over 15% earnings per share growth at the midpoint.

我們對 2023 年所建立的勢頭充滿信心。今天發布的指引代表著成長的回歸，調整後的利潤率年增 200 至 275 個基點，而 2023 年的說明性中點為 18.7%，每股收益成長超過 15%。

We anticipate full year adjusted organic growth of flat to up 2% or up 1% to 3% excluding the impact from geographic prioritization and product portfolio initiatives we are taking. This estimated organic growth rate incorporates full year external forecast for major end markets, including an expectation of continued mix growth in industrial end markets.

我們預計全年調整後的有機成長將持平至 2% 或成長 1% 至 3%，不包括我們正在採取的地理優先順序和產品組合計畫的影響。這項估計的有機成長率納入了主要終端市場的全年外部預測，包括工業終端市場持續混合成長的預期。

Automotive OEM build rates are currently forecasted to be down slightly. Consumer electronics are expected to grow low single digits for the year, while semiconductor market is currently forecasted to start the year slow and improve as the year progresses. And finally, consumer retail discretionary spending is expected to remain muted for the year.

目前預計汽車原始設備製造商的建造率將略有下降。消費性電子產品預計今年將以低個位數成長，而半導體市場目前預計年初將放緩，並隨著時間的推移而改善。最後，預計今年消費者零售可自由支配支出將維持低迷。

As mentioned, we expect a strong expansion in adjusted operating margins of approximately 200 to 275 basis points year-on-year, up from an estimated midpoint of 18.7% in 2023. With respect to adjusted EPS, we anticipate full year 2024 earnings in the range of $6.80 to $7.30 per share on a continuing operations basis or over 15% year-on-year growth at the midpoint.

如前所述，我們預計調整後營業利潤率將同比強勁擴張約 200 至 275 個基點，高於 2023 年預計中位數 18.7%。在持續經營業務的基礎上，每股收益為6.80 美元至7.30 美元，中間值年增超過15%。

Turning to cash. Our businesses continue to deliver strong and consistent free cash flow. Our expectation is that adjusted free cash flow conversion performance post spin will remain in the range of 90% to 110%.

轉向現金。我們的業務持續提供強勁且持續的自由現金流。我們的預期是，分拆後調整後的自由現金流轉換績效將維持在 90% 至 110% 的範圍內。

Please turn to Slide 15 for more details on our full year guidance. Included in our outlook is for normal sequential patterns through the year coupled with the end-market trends just discussed. As a result, we anticipate that our second half of the year sales will be slightly stronger than the first half. Our expectations also include a 1% foreign currency headwind to sales given the strength of the U.S. dollar at current spot rates or a negative $0.20 to earnings per share.

請參閱投影片 15，以了解有關我們全年指導的更多詳細資訊。我們的展望包括全年正常的連續模式以及剛剛討論的終端市場趨勢。因此，我們預計下半年的銷售將略強於上半年。我們的預期還包括，鑑於美元按當前即期匯率走強，外幣銷售將面臨 1% 的阻力，或每股收益將出現負 0.20 美元。

We also anticipate an approximately 75 basis point benefit to sales from the commercial agreement with Solventum. Please note that this benefit will be reflected within acquisition and divestitures from an external reporting perspective.

我們也預計與 Solventum 達成的商業協議將使銷售額增加約 75 個基點。請注意，從外部報告的角度來看，這項好處將反映在收購和剝離中。

We expect adjusted operating income and earnings per share to show relative strength in the second half of the year. This is primarily due to the impact from the timing of the Solventum spin on April 1, along with our pretax restructuring charges of $250 million to $300 million that are weighted 70% to the first half of the year. We will continue to benefit from productivity and restructuring actions, partially offset by increased investments in the business as we progress through the year.

我們預計下半年調整後的營業收入和每股盈餘將表現出相對強勁的勢頭。這主要是由於 4 月 1 日 Solventum 分拆時間的影響，以及我們 2.5 億至 3 億美元的稅前重組費用，這些費用佔今年上半年的 70%。我們將繼續受益於生產力和重組行動，隨著我們今年的進展，業務投資的增加部分抵消了這一影響。

Looking at below-the-line items, we estimate full year other expense net will be in the range of $75 million to $100 million, mostly weighted to the second half of the year. And our 2024 adjusted tax rate is expected to be in the range of 19% to 20% with the first half of the year coming in at the high end of the range.

從線下項目來看，我們估計全年其他費用淨額將在 7,500 萬美元至 1 億美元之間，主要集中在下半年。我們 2024 年調整後的稅率預計將在 19% 至 20% 之間，上半年將處於該範圍的高端。

As Bruce mentioned earlier and detailed further on Slide 26 in the appendix, the new operating category named Other is forecasted to have a net operating loss of approximately neutral to $25 million. This range includes first quarter net operating loss of approximately $65 million on a continuing operations basis. Beginning in April, transition service agreements costs plus a markup will be reimbursed to 3M, and therefore, we will generate modest income in the remaining 3 quarters of the year.

正如 Bruce 之前提到的以及在附錄第 26 張投影片中進一步詳述的那樣，名為「其他」的新營運類別預計將產生大約中性的淨營運虧損，達到 2500 萬美元。這一範圍包括第一季持續營運基礎上約 6,500 萬美元的淨營運虧損。從 4 月開始，過渡服務協議成本加上加價將退還給 3M，因此，我們將在今年剩餘的 3 個季度中產生適度的收入。

Finally, Corporate and Unallocated includes full year 2024 sales in the range of $225 million to $275 million for commercial agreements with Solventum beginning in April. We expect full year Corporate and Unallocated net operating loss in the range of $125 million to $175 million. These ranges include first quarter revenue of approximately $25 million and net operating loss of approximately $75 million.

最後，企業和未分配包括從 4 月開始與 Solventum 簽訂的商業協議，2024 年全年銷售額在 2.25 億美元至 2.75 億美元之間。我們預計全年公司和未分配淨營業虧損在 1.25 億美元至 1.75 億美元之間。這些範圍包括第一季約 2,500 萬美元的收入和約 7,500 萬美元的淨營運虧損。

As we have previously discussed, we estimate annualized dis-synergies of approximately $150 million to $175 million. These costs were previously associated with Solventum and will now be allocated to Safety and Industrial, Transportation and Electronics and Consumer starting in April.

正如我們之前所討論的，我們估計年化協同效應約為 1.5 億至 1.75 億美元。這些成本以前與 Solventum 相關，現在將從 4 月開始分配給安全與工業、運輸、電子和消費品。

Specific to Q2, we expect continued strong execution to drive operating performance. As disclosed in our Form 10-K, stock-based compensation grants were delayed to Q2. As a result, we expect to incur $125 million to $150 million in expense in Q2. We will also increase investments to support end-market demand and drive growth and productivity.

具體到第二季度，我們預計持續強勁的執行力將推動經營業績。正如我們在 10-K 表格中所揭露的那樣，基於股票的薪酬補助被推遲到第二季。因此，我們預計第二季將產生 1.25 億至 1.5 億美元的費用。我們還將增加投資以支持終端市場需求並推動成長和生產力。

Please turn to Slide 16 for more details by business group. Taking into account my earlier comments regarding current full year macroeconomic and major end-market forecasts, we estimate organic sales growth in Safety and Industrial to be flat to up low single digits. Adjusted organic sales growth for Transportation and Electronics is forecasted to be up low single digits. This is better than our estimated range of flat to up low single digits provided in January, recognizing our strong Q1 growth performance.

請參閱投影片 16 以了解按業務組劃分的更多詳細資訊。考慮到我先前對目前全年宏觀經濟和主要終端市場預測的評論，我們估計安全和工業領域的有機銷售成長將持平至低個位數。運輸和電子產品調整後的有機銷售成長預計將出現低個位數成長。這比我們一月份提供的從持平到上升低個位數的估計範圍要好，認可了我們強勁的第一季成長表現。

And in Consumer, we estimate organic sales to be down low single digits, which includes our ongoing product portfolio initiatives. These actions are estimated to create a year-on-year organic growth headwind for the Consumer business of approximately 2 percentage points.

在消費者領域，我們預計有機銷售額將下降到低個位數，其中包括我們正在進行的產品組合計劃。這些行動預計將為消費者業務帶來約 2 個百分點的年比有機成長阻力。

I want to take a moment to thank our team for the work they have done in successfully executing across our 3 strategic priorities. Their disciplined work has created value and returned capital to shareholders with the successful spinout of our Health Care business. They have also helped reduce risk by reaching 2 large settlements while making progress on the exit of PFAS manufacturing. And most importantly, our teams have made tremendous progress on fundamentally improving how we work, which is driving better performance across the business.

我想花點時間感謝我們的團隊為成功執行我們的 3 個策略重點所做的工作。他們嚴謹的工作創造了價值，並透過我們醫療保健業務的成功分拆向股東返還了資本。他們還透過達成兩項大型和解來幫助降低風險，同時在 PFAS 生產退出方面取得進展。最重要的是，我們的團隊在從根本上改善我們的工作方式方面取得了巨大進步，這正在推動整個企業取得更好的績效。

In closing, we delivered a strong start to the year. As we look ahead, we are focused on building on our momentum, supporting expectations for a return to organic top line growth, margin expansion, investments in high-growth and attractive end markets and continued strong cash generation. This leaves us well positioned for long-term success and consistent value creation for our customers and shareholders.

最後，我們為今年開了個好頭。展望未來，我們將專注於鞏固發展勢頭，支持恢復有機營收成長、利潤率擴張、對高成長和有吸引力的終端市場的投資以及持續強勁的現金生成的預期。這使我們能夠為客戶和股東取得長期成功並持續創造價值。

Please turn to Slide 17, and I will turn it back over to Mike. Mike?

請翻到投影片 17，我會轉回給 Mike。麥克風？

Thanks, Monish.

謝謝，莫尼什。

Paying a competitive dividend has been a priority for 3M for more than 100 years. This will continue to be true following the spin-off of Solventum. As part of the spin, we distributed 80.1% of Solventum's outstanding shares to our shareholders and post-spin have made the decision to reset 3M's dividend.

一百多年來，支付有競爭力的股息一直是 3M 的首要任務。在 Solventum 分拆後，這種情況將繼續存在。作為分拆的一部分，我們將 Solventum 80.1% 的流通股分配給我們的股東，分拆後我們決定重置 3M 的股息。

As a result, we anticipate a dividend of approximately 40% of adjusted free cash flow. This represents a dividend that is in line with our industrial peers and well above the S&P 500 median with the potential to increase over time.

因此，我們預期股利約為調整後自由現金流的 40%。這表明股息與我們的工業同行一致，遠高於標準普爾 500 指數中位數，並且有可能隨著時間的推移而增加。

We expect to seek Board approval to declare the second quarter dividend in May with payments anticipated in June. In addition, post spin, we have stepped back into the market for share repurchases.

我們預計將在 5 月尋求董事會批准宣布第二季度股息，並預計在 6 月支付。此外，分拆後，我們已重返市場進行股票回購。

Before I conclude, let me emphasize some important points from the quarter. Q1 was a strong start to the year, driven by significant improvements in operational execution as well as the achievement of several major milestones toward our strategic goals, including the successful spin-off of Solventum and the settlement of 2 major legal matters.

在結束之前，讓我強調一下本季的一些要點。第一季是今年的良好開局，這得益於營運執行的顯著改善以及實現我們戰略目標的幾個重要里程碑，包括成功分拆 Solventum 和解決兩個主要法律問題。

I would like to thank our people for their dedication and continued focus on delivering value for our customers and shareholders. Through their efforts, we are well positioned to deliver a strong 2024.

我要感謝我們的員工的奉獻精神和持續關注為我們的客戶和股東創造價值。透過他們的努力，我們有能力實現強勁的 2024 年。

Tomorrow, May 1, I transition into the role of Executive Chairman. I look forward to working with Bill Brown as he assumes the role of CEO.

明天，5 月 1 日，我將轉任執行長。我期待與比爾·布朗（Bill Brown）就任執行長一職進行合作。

That concludes our formal remarks, and we will now take your questions.

我們的正式發言到此結束，現在我們將回答你們的問題。

(Operator Instructions) We go first this morning to Julian Mitchell of Barclays.

（操作員指示）今天早上我們先去找巴克萊銀行的朱利安米切爾。

Congratulations, Mike, on the transition. And obviously, you'll stay very involved in the Executive Chairman role.

麥克，恭喜你完成過渡。顯然，您將繼續積極參與執行主席的角色。

Yes. Thank you, Julian.

是的。謝謝你，朱利安。

Absolutely. Maybe just to start off with, Monish, you packed a lot of clarification on the moving parts into the prepared remarks. Maybe just to try and understand a little bit better the quarterly sort of cadence here. So it sounds like second quarter EPS, down slightly maybe versus the sort of [170] comp ops number for Q1, and that's really because of the stock comp and the one-timers that you talked about.

絕對地。也許首先，莫尼什，你在準備好的評論中對活動部分做了很多澄清。也許只是為了嘗試更好地理解這裡的季度節奏。因此，這聽起來像是第二季度的每股收益，與第一季的[170] 比較操作數相比，可能略有下降，這實際上是因為股票比較和你談到的一次性股票。

So do we think about sort of second quarter revenue being similar to first quarter margins down a bit because of the stock comp and one-timers? And then as we step into the second half, you've got higher revenues half-on-half and then sort of good operating leverage of the stepped-up revenue. Maybe just any thoughts around that.

那麼，我們是否認為第二季的營收與第一季的利潤率相似，但由於股票比較和一次性股票而略有下降？然後，當我們進入下半年時，您將獲得比上半場更高的收入，然後對增加的收入產生良好的營運槓桿。也許只是圍繞這件事的任何想法。

Yes. I would say, Julian, so you summarized it. I would go back and say there's so many moving pieces that I would really say first look at first half, second half. And then when you do that, we would also show you that on revenue, we are starting to hit normal seasonality trends.

是的。我想說，朱利安，你總結了一下。我會回過頭來說，有太多感人的片段，我真的會說先看看上半場，下半場。然後，當您這樣做時，我們也會向您展示，在收入方面，我們開始達到正常的季節性趨勢。

So on revenue, the first half, second half is 49-51. And then the margin split first half, second half is 47-53. And the reason for that is some of the items that you've mentioned. Part of the biggest item there is the -- is Solventum's first quarter, where we don't get reimbursed for TSAs, and that's driving the 47 to 53.

所以論營收，上半場、下半場是49-51。然後上半場比數平分，下半場47-53。原因是你提到的一些項目。最大的項目之一是 Solventum 第​​一季度，我們沒有得到 TSA 的報銷，這推動了 47 到 53 的成長。

If you now go into the important factors just into Q2 to make sure that I cover all the points, restructuring charges are between $250 million to $300 million for the year. 70% is weighted to the first half. Similarly, you mentioned it too and I said that in my prepared remarks, we will incur stock-based compensation headwind around $120 million to $150 million.

如果您現在了解第二季的重要因素，以確保我涵蓋了所有要點，那麼今年的重組費用將在 2.5 億至 3 億美元之間。 70% 加權到上半年。同樣，你也提到了這一點，我在我準備好的發言中說過，我們將面臨約 1.2 億至 1.5 億美元的股票薪酬逆風。

FX, the stronger dollar continues to remain in the second quarter. So we got to factor all that in. And I would say that's why we've given you first half, second half guidance, there are more details. I know Bruce and the team can walk you through it. But if you start with that, I think you'll get directionally in the zone that we are talking about.

外匯方面，美元第二季持續保持強勢。所以我們必須考慮所有這些因素。我知道布魯斯和他的團隊可以引導你完成這一切。但如果你從這個開始，我想你就會有方向地進入我們正在討論的區域。

That's very helpful. And then maybe a second question, perhaps more for Mike, but on capital allocation. So clearly, you and the Board spent a lot of time thinking about balance sheet leverage of 3M to settle on that sort of 40% dividend payout ratio. You also mentioned, though, on the buyback some step-up since the Solventum spin. So maybe help us understand kind of how you and the Board are thinking about 3M's leverage requirements from here. How meaningful could a buyback be? And then tied to that, Monish, any clarification on interest expense guide for this year based on that balance sheet?

這非常有幫助。然後可能是第二個問題，也許更多是針對麥克的，但關於資本配置。很明顯，您和董事會花了很多時間考慮 3M 的資產負債表槓桿，以確定 40% 的股息支付率。不過，您也提到了自 Solventum 剝離以來回購的一些進展。因此，也許可以幫助我們了解您和董事會如何考慮 3M 的槓桿要求。回購有多有意義？與此相關的是，莫尼什，根據該資產負債表對今年的利息支出指南有何澄清？

Sure, Julian. I would start with we continue to be a strong cash generator, and we're well capitalized to invest in our business, which is -- continues to be the first priority for capital allocation and also return capital to shareholders, including the dividend that we've been talking about and share repurchases.

當然，朱利安。我首先要說的是，我們仍然是一個強大的現金產生者，我們有充足的資本來投資我們的業務，這仍然是資本配置的首要任務，也是向股東返還資本的首​​要任務，包括我們的股利一直在談論股票回購。

And I -- my comment, we're back in the market. The pace will depend on how we view the macro, how we look at our performance, the intrinsic value of our stock. We haven't declared really how we're going to move forward on that. But I -- so well positioned to, like I said, invest and drive the capital allocation priorities that we talk about.

我的評論是，我們又回到了市場。步伐將取決於我們如何看待宏觀、我們如何看待我們的業績以及我們股票的內在價值。我們還沒有真正宣布我們將如何向前推進。但正如我所說，我有能力投資並推動我們談論的資本配置優先事項。

Julian, I'll answer your second question. When we talk about below-the-line items, we talk about 2 things: mainly it's pension and it's interest expense/income. So I'll combine the 2. So our guide is net expense of $75 million to $100 million or $0.10 to $0.15 per share. Q2, as I mentioned, will continue to benefit from the interest income that we receive from the -- dividend that we receive from Solventum of $7.7 billion. And so therefore, the $75 million to the $100 million guide for the year will mostly be weighted to the second half of the year.

朱利安，我來回答你的第二個問題。當我們談論線下項目時，我們談論兩件事：主要是退休金和利息支出/收入。所以我將把兩者結合起來。正如我所提到的，第二季將繼續受益於我們從 Solventum 獲得的 77 億美元股息中獲得的利息收入。因此，今年 7,500 萬美元到 1 億美元的指引將主要集中在下半年。

We go next now to Nigel Coe with Wolfe Research.

接下來我們請教沃爾夫研究中心的奈傑爾‧科 (Nigel Coe)。

Mike, hopefully, the Exec Chairman role is a bit less stressful than Chairman and CEO role. So congratulations on that. So just a few more -- maybe a few more details on the 2Q, Monish. The restructuring -- and I understand 70% in the first half, 30% in the second half. How does that phase between 1Q and 2Q? I'm just trying to understand whether that's fairly level-loaded or whether there's a bit more coming through in the second quarter.

麥克，希望執行董事長的角色比董事長兼執行長的壓力要小一些。所以恭喜你。所以，還有一些——也許是關於 2Q 的更多細節，莫尼什。重組－據我了解，上半年是70%，下半年是30%。第一季和第二季之間的階段如何？我只是想了解這是否相當有水平，或者第二季是否會有更多進展。

And then on the restructuring, I see the total charges. But in terms of the gross payback, what kind of payback are we assuming on that restructuring? And are we still on a 3M RemainCo basis, still on track for $700 million to $900 million of savings by '25?

然後關於重組，我看到了總費用。但就總回報而言，我們假設重組會帶來什麼樣的回報？我們是否仍以 3M RemainCo 為基礎，仍有望在 25 年之前節省 7 億至 9 億美元？

Yes. So I'll start with the first one, Nigel. As I said, it's 70% weighted in the first half of the $250 million to $300 million range. In the first quarter, at a holdco basis, we did $122 million of restructuring that I've said in my announcement, and then you'll see Health Care was approximately $20 million of that. So you've got $100 million that is on a RemainCo basis. And so the balance is -- so you can get the math.

是的。所以我將從第一個開始，奈傑爾。正如我所說，它在 2.5 億至 3 億美元範圍的前半部分佔據了 70% 的權重。在第一季度，在控股公司的基礎上，我們進行了 1.22 億美元的重組，正如我在公告中所說的那樣，然後你會看到醫療保健部門約佔其中的 2000 萬美元。因此，您有 1 億美元以留歐為基礎。所以平衡就是──這樣你就可以得到數學結果。

When I come to your next piece on payback, I just wanted to start again, I've said this before, I'll say it again, you have to look at restructuring in total. So when we started this program we said, there are multiple things we wanted to achieve. Number one was we wanted to change the way we work, and the way we achieved that was streamlining our supply chain, getting a shorter path to customers and third was reduce stranded cost, have a lighter center as well as create oxygen to invest in the business. And when we put that program together, that was including holdco.

當我談到你的下一篇關於回報的文章時，我只是想重新開始，我之前已經說過了，我會再說一遍，你必須從總體上考慮重組。因此，當我們開始這個計劃時，我們說，我們想要實現很多目標。第一是我們想要改變我們的工作方式，而我們實現這一目標的方式是簡化我們的供應鏈，縮短與客戶的聯繫，第三是減少滯留成本，建立一個更輕的中心並創造氧氣來投資商業。當我們將該計劃放在一起時，其中就包括控股公司。

As we have now spun out Health Care, you can see all those items starting to come in, which is margin expansions coming in. And that is happening because of the improvement we have in our supply chain and the way we work. It's happening because we are closer to customers. It's happening because we have reduced stranded cost.

由於我們現在已經分拆了醫療保健業務，您可以看到所有這些項目開始進入，這就是利潤率的擴大。這是因為我們離客戶更近了。這是因為我們減少了滯留成本。

When we started our journey and we announced the spin of Health Care, we had said industry benchmark was somewhere between 1% to 1.5% of sales, which is like $400 million to $450 million. And now our dis-synergies from the spinout of Health Care are the $150 million to $175 million, and we're going to keep working that, in some cases, grow into it; in some cases, we'll keep working it down. And you've seen we've been able to do that.

當我們開始我們的旅程並宣布醫療保健業務時，我們曾說過行業基準是銷售額的 1% 到 1.5% 之間，相當於 4 億到 4.5 億美元。現在，我們從醫療保健分拆中獲得的反協同效應是 1.5 億至 1.75 億美元，我們將繼續努力，在某些情況下，發展到這一點；在某些情況下，我們會繼續努力。您已經看到我們已經能夠做到這一點。

And at the same time, we've created oxygen to invest in the business. And Mike mentioned some of the spec-in wins that we have got in TEBG. We have continued to invest in CBG. In a downmarket, we have done the same with SIBG, and we had over 30 new launches across the company in the first quarter. So that's the way I would look at it.

同時，我們也創造了投資業務的氧氣。 Mike 提到了我們在 TEBG 中取得的一些規格勝利。我們繼續投資 CBG。在低階市場，我們對 SIBG 也做了同樣的事情，第一季我們全公司推出了 30 多個新產品。這就是我的看法。

On a payback basis, I would tell you that we are still continuing to have very good payback. And in fact, we were able to accelerate some of our restructuring actions as well as get some onetime gains like property sales in Q1. So overall, look at the total margin, 200 to 275 basis points up on a year-over-year basis, which is a reflection of all the actions the team has taken.

在回報的基礎上，我會告訴你，我們仍然繼續獲得非常好的回報。事實上，我們能夠加快一些重組行動，並獲得一些一次性收益，例如第一季的房地產銷售。因此，總體而言，看看總利潤率，年增 200 至 275 個基點，這反映了團隊所採取的所有行動。

Great. My follow-up question is on the dividend. There's been a huge sort of [core] industry about the potential dividend scenarios, but hopefully, that's now behind us. But the 40% payout ratio on adjusted free cash flow, is the intent, Mike, to keep that 40% relatively stable going forward, so as you grow earnings and free cash flow going forward, the dividend should increase as well?

偉大的。我的後續問題是關於股息。關於潛在的股息情景，有很多[核心]產業，但希望現在已經過去了。但是，麥克，調整後的自由現金流的 40% 派息率是為了保持 40% 的相對穩定，因此，隨著未來收益和自由現金流的增長，股息也應該增加嗎？

Yes, I would think of it as a guide of how we're thinking about it. The approximately 40% of adjusted free cash flow, that's the way the Board -- that's the guide that the Board is looking at as we go forward. So I -- that's where we start as we go forward with continuing operations. That's the best way to think about it, Nigel.

是的，我認為它是我們如何思考它的指南。大約 40% 的調整後自由現金流，就是董事會的方式——這是董事會在我們前進時所考慮的指南。所以我——這就是我們繼續進行持續營運的起點。這是最好的思考方式，奈傑爾。

We go next now to Andy Kaplowitz at Citi.

接下來我們請花旗銀行的安迪‧卡普洛維茲 (Andy Kaplowitz) 發言。

Mike, thanks for all your help over the years. Congratulations.

麥克，感謝您多年來的幫助。恭喜。

Thanks.

謝謝。

Can you update us on your industrial channels within Safety and Industrial? Are they generally to the point where you have better visibility and destocking is mostly over? And it does seem like -- for instance, Industrial Adhesives and Tapes has been turning the corner over the last couple of quarters. Is that a bit of a canary in the short-cycle industrial businesses that you have?

您能為我們介紹一下您在安全和工業領域的工業頻道的最新情況嗎？它們是否已經達到了您有更好的可見性並且去庫存已基本結束的程度？例如，工業用黏合劑和膠帶似乎在過去幾個季度已經扭轉了局面。在你們的短週期工業企業中，這是否有點像金絲雀？

Yes. Andy, I would say if you look at inventory in the channels as kind of a measure of that, that's -- I would say it's been reducing some of the inventory in the channel really around improving supply chains. We talked a bit about this last quarter. As supply chains improve, our distributors in the channel are taking advantage of shorter-cycle times and managing down some of their inventory.

是的。安迪，我想說，如果你將渠道中的庫存視為一種衡量標準，那麼我想說的是，它實際上是圍繞著改善供應鏈而減少了渠道中的一些庫存。上個季度我們對此進行了一些討論。隨著供應鏈的改善，我們的通路經銷商正在利用更短的週期時間並管理一些庫存。

There's also a bit of a cautious outlook. Monish talked about a mixed outlook for industrial markets. And if you think about it, look at our results from Q1, Industrial Adhesives and Tapes and Personal Safety, when you adjust for the year-over-year respiratory change, those were both -- they are multiple market -- multiple industrial market-focused, and they are both up slightly in the quarter. So they're seeing a bit of both across their markets.

也有一些謹慎的前景。莫尼什談到工業市場的前景好壞參半。如果你想一想，看看我們第一季的結果，工業黏合劑和膠帶以及個人安全，當你根據呼吸系統的同比變化進行調整時，這些都是——它們是多個市場——多個工業市場—重點關注，並且它們在本季度均略有上升。所以他們在市場上看到了這兩種情況。

We have some market-focused businesses like Industrial Mineral as that's seeing strong demand. And then we have some other market-focused businesses in industrial like automotive aftermarket and our kind of our industrial specialties, which was a lot of our products that go into shipping. So the shipping dynamics, the mild winter impacts on auto repairs, those are -- we're seeing kind of the downside of that in some of those markets.

我們有一些以市場為中心的業務，例如工業礦物，因為需求強勁。然後，我們在工業領域還有其他一些以市場為中心的業務，例如汽車售後市場和我們的工業專業產品，其中我們的許多產品都進入了運輸階段。因此，運輸動態、溫和的冬季對汽車維修的影響，我們在其中一些市場中看到了這種情況的負面影響。

So it's a mixed market. Again, the channel is adjusting, taking advantage of improving supply chains and, I would say, somewhat cautious about the broader mixed nature of those end markets.

所以這是一個混合市場。同樣，該通路正在利用供應鏈改善的優勢進行調整，而且我想說的是，對這些終端市場更廣泛的混合性質有些謹慎。

That's helpful, Mike. And then, Monish, obviously, you mentioned the relatively good T&E start. You did have a pretty easy comparison in Q1. But 7% growth, you're still guiding of low single digits. I know it's up a little bit. You mentioned the buy ahead was a big part of the Q1 improvement. But is there any reason why your improved spec-ins wouldn't continue in electronics? And then are you seeing any improvement at all yet in semiconductors and those kind of end markets?

這很有幫助，麥克。然後，莫尼什，顯然，你提到了相對良好的 T&E 開始。您在第一季確實進行了非常簡單的比較。但 7% 的成長，你的指導仍然是低個位數。我知道它有點上升了。您提到提前購買是第一季改善的重要組成部分。但是，是否有任何原因導致您改進的規格無法在電子產品中繼續使用？那麼您是否看到半導體和此類終端市場有任何改善？

Yes. I would say, first, we are thrilled that we've got the spec-ins, so that's a big positive. As I said, 2/3 of the total, 6.7%, that's approximate. We don't have the perfect number. We believe it's partly driven by inventory normalization both in auto and electronics, plus customers starting to buy ahead as they start building for end markets or consumer end markets.

是的。我想說，首先，我們很高興能夠獲得規格，所以這是一個很大的積極因素。正如我所說，總數的 2/3，即 6.7%，這是近似值。我們沒有完美的數字。我們認為，這在一定程度上是由汽車和電子產品的庫存正常化以及客戶在開始為終端市場或消費者終端市場生產時開始提前購買所推動的。

What I would tell you is second half is so important for the consumer electronics business, and we are watching that trend. If there is a big pickup in consumer electronics, we will definitely grow with it because we are now specced in to many more devices than before. So that -- I would say second half is what we are watching, but this is where we see it right now.

我要告訴你的是，下半年對於消費性電子業務來說非常重要，我們正在關注這個趨勢。如果消費性電子產品大幅成長，我們肯定會隨之成長，因為我們現在比以前擁有更多的設備。所以——我想說下半場是我們正在觀看的，但這就是我們現在看到的。

And then on semiconductor, our view is we saw the first quarter slow, and we believe that this will pick up in the second half, Andy. And that's what we are watching there, too. All indications keep saying that it's going to get better, but we are watching those trends.

然後在半導體方面，我們的觀點是，我們看到第一季放緩，我們相信下半年會回升，安迪。這也是我們正在觀察的。所有跡像都表明情況會變得更好，但我們正在關注這些趨勢。

We'll go next now to Scott Davis of Melius Research.

接下來我們請 Melius Research 的 Scott Davis 發言。

Best of luck to you, Mike, in your next endeavors, et cetera.

麥克，祝你在接下來的努力中一切順利。

Thanks, Scott.

謝謝，斯科特。

Guys, I had a couple. I'll just start with a [knit] and then ask a real question. But why -- I'm looking at Slide 27. Why does the 2026 payment dip? What was kind of the -- just walk us through a little bit of the color of the kind of how these payments were negotiated annually.

夥計們，我有幾個。我將從[針織]開始，然後問一個真正的問題。但為什麼——我正在看幻燈片 27。這是一種什麼樣的情況——請帶我們了解每年如何協商這些付款的方式。

Yes. So there were so many facts that were put together, Scott. This is one of them on how these profiles were scheduled. So there's no particular reason to give it out to you. This was a lot of factors, pluses and minuses that put the whole agreement together.

是的。斯科特，有這麼多事實放在一起。這是關於如何安排這些設定檔的其中之一。所以沒有什麼特別的理由把它給你。整個協議綜合了許多因素、優點和缺點。

Okay. So there's nothing specific in there that 2026, you'd...

好的。所以沒有什麼具體的內容，到 2026 年，你...

No.

不。

I can take it off-line.

我可以把它離線。

Yes.

是的。

Okay. More importantly, Mike, if you look back at the long-term growth rate ex Health Care of 3M, it's been kind of sub-2%, so below GDP. And that includes some price inevitably, I would assume. What do you think the entitlement growth rate of this business is longer term? I mean just go back 10 years, so I think that's a full cycle for sure. But when you think about the next 3 or 5 years, what do you think that the business should be able to grow at? Obviously, Bill is going to have his own initiatives. But what is your view on that?

好的。更重要的是，麥克，如果你回顧 3M 醫療保健業務以外的長期成長率，你會發現它低於 2%，因此低於 GDP。我認為這不可避免地包括一些價格。您認為該業務的長期權益成長率是多少？我的意思是回到 10 年前，所以我認為這肯定是一個完整的週期。但是，當您考慮未來 3 到 5 年時，您認為業務應該能夠以什麼速度成長？顯然，比爾會有自己的主動權。但您對此有何看法？

Yes. Scott, I won't get ahead of Bill and kind of how he's going to think about going forward. You saw our guidance for this year, it's in line with macro. Importantly, when you look at what drives our growth, it's really investing in the business. The organic investments have been the dominant driver of growth for us as a company, and we expect that to continue as we move forward.

是的。斯科特，我不會領先比爾以及他將如何考慮未來。您看到了我們今年的指導，它符合宏觀。重要的是，當你審視推動我們成長的因素時，你會發現它實際上是對業務的投資。有機投資一直是我們公司成長的主要推動力，我們預計隨著我們的前進，這種情況將繼續下去。

Like I said in my speech, making indispensable products for our customers, and that means leveraging our innovation, our technologies, our manufacturing capabilities to come up with differentiated solutions for our customers and do that more and more prioritizing our investments. As we've talked a lot about, where do we prioritize investments? In attractive markets, markets that are -- have growth dynamics that are better than the macro. That's kind of the way to really drive this growth strategy forward, and that's how we think about it. That's how we focus.

正如我在演講中所說，為我們的客戶製造不可或缺的產品，這意味著利用我們的創新、我們的技術、我們的製造能力，為我們的客戶提供差異化的解決方案，並越來越多地優先考慮我們的投資。正如我們已經討論過的，我們應該優先考慮哪些投資？在有吸引力的市場中，市場的成長動力優於宏觀經濟。這是真正推動這項成長策略向前發展的方式，這也是我們的想法。這就是我們專注的方式。

It's important that we really do prioritize leveraging our innovation so that we create not only the growth, but the differentiated value leader in a way we deliver value to shareholders in terms of margins and cash. And so it's a -- that's the way I think about the formula for growth, and it's been the foundation for building the company, and it's a foundation for success as we go forward as well.

重要的是，我們確實優先考慮利用我們的創新，以便我們不僅創造成長，而且透過在利潤和現金方面為股東創造價值的方式創造差異化的價值領導者。這就是我思考成長公式的方式，它是建立公司的基礎，也是我們前進的成功基礎。

Totally fair. I'll pass it on, but congrats on getting all this work done the last year. It's -- I'm sure it's been a lot of heavy-lifting. So congrats and best of luck this year.

完全公平。我會把它轉達給你，但祝賀你去年完成了所有這些工作。我確信這是一項繁重的工作。所以恭喜你，祝你今年好運。

Thanks, Scott.

謝謝，斯科特。

Thank you.

謝謝。

We'll go next now to Andrew Obin of Bank of America.

接下來我們請美國銀行的安德魯‧奧賓 (Andrew Obin) 發言。

It's Andrew Obin. Mike, congratulations, and great job getting all this legal stuff out of the way.

我是安德魯‧奧賓。麥克，恭喜你，幹得好，把所有這些法律問題都解決了。

Thanks, Andrew.

謝謝，安德魯。

Yes. So I would take an issue with Scott's statement about lack of growth at 3M. I don't know where he's getting his numbers because pre-COVID, company has grown at, on average, at 3.7% organically based on my model. So I actually have the exact opposite question. What is this, for example, safety and growth, right? You say that industrial production is growing 2%, yet the guidance is 0% to 2%. You have 100 bps sort of this portfolio geography drag.

是的。因此，我對 Scott 關於 3M 缺乏成長的說法持異議。我不知道他從哪裡得到的數據，因為根據我的模型，在新冠疫情之前，公司的平均有機成長率為 3.7%。所以我實際上有完全相反的問題。例如，安全和成長是什麼？你說工業生產成長2%，但指導是0%到2%。這種投資組合的地理阻力有 100 個基點。

Can we just dig in as to what you think are impediments to growth coming out post COVID? Because it does seem thing has changed after that. Can we just -- right? Because I would have expected that you would outperform industrial production, right? And every year, there seem to be sort of new headwinds that are completely logical, but they seemingly come out of nowhere. Why the company's growth sort of seems to be below average?

我們能否深入探討您認為新冠疫情後經濟成長的障礙是什麼？因為在那之後事情似乎確實改變了。我們可以——對嗎？因為我預計你會超越工業生產，對吧？每年，似乎都會出現一些完全合乎邏輯的新逆風，但它們似乎不知從何而來。為什麼公司的成長似乎低於平均？

Yes. Andrew, it's kind of building on maybe my answer to Scott. The macro is an important part of this, and we think about the macro for us -- for 3M is a combination of GDP where we have our Consumer business, and then it's also around industrial production in a broader industrial and transportation and electronics. But importantly, we go down and we really look at the markets that we're part of.

是的。安德魯，這可能是我對史考特的回答的基礎。宏觀經濟是其中的重要組成部分，我們會為自己考慮宏觀經濟——因為 3M 是 GDP 的組合，我們擁有消費者業務，此外它還圍繞著更廣泛的工業、交通和電子領域的工業生產。但重要的是，我們深入研究我們所屬的市場。

And so driving that growth and, again, the way we deliver on growth better than macro or in line with macro is to pick markets where we can really leverage our innovation and be differentiated and drive our growth out of those attractive markets. And so what is the driver of it? Maybe if you don't do this well, that's your impediment question is to really prioritize those attractive markets where you can -- where we can deliver differentiated 3M solutions. That's the model that will drive us forward.

因此，推動這種成長，以及我們實現比宏觀更好或符合宏觀的成長的方式，就是選擇我們能夠真正利用我們的創新並實現差異化的市場，並推動我們在那些有吸引力的市場中實現增長。那麼它的驅動因素是什麼呢？也許如果您做得不好，那麼您的障礙問題就是真正優先考慮那些有吸引力的市場，在這些市場中您可以提供差異化的 3M 解決方案。這就是推動我們前進的模式。

Right. And then maybe just a follow-up. I know you guys are tweaking your global distribution, exiting some, right, direct distribution. You are starting to utilize distributors. Can you just talk about sort of what have you experienced so far with these changes to the models? What are the pros and cons? Because some of the commentary referred is that 3M is leaving money on the table with its distributor, some sort of legal risk associated. How do you mitigate those? And what has the experience been so far?

正確的。然後也許只是後續行動。我知道你們正在調整你們的全球發行，退出一些直接發行。您開始利用經銷商。您能談談到目前為止您對模型的這些變化的經驗嗎？優缺點都有什麼？因為一些評論提到 3M 正在向其分銷商留錢，因此存在某種相關的法律風險。你如何減輕這些？到目前為止有什麼經驗？

Yes. Andrew, just talking about the change, so this was part of the restructuring -- actually was part of the model change that we've been making, really focusing on leading through our businesses globally and prioritizing where they -- the most important parts of their business and looking at what's the best model to put in place. And so geographic prioritization was the way we termed it.

是的。安德魯，只是談論變革，所以這是重組的一部分 - 實際上是我們一直在進行的模式變革的一部分，真正專注於領導我們的全球業務並優先考慮它們 - 最重要的部分他們的業務並尋找最好的模式。因此，地理優先順序就是我們所說的方式。

And so we focused on some of those smaller countries that we operate in. We talked about approximately 30. We've launched this in 27 countries at this point. It's really a model to move to an export model. And we do have to -- it's much more than kind of the way we've talked about on the headlines. You have to set up a successful model. You have to set up a model to support distributors. You're changing from the traditional 3M model in those countries to an export-driven model. So it's important that we not only have capabilities in region, but globally to support that kind of model in those countries.

因此，我們專注於我們開展業務的一些較小的國家。這確實是一個轉向出口模式的模式。我們確實必須這樣做——這不僅僅是我們在頭條新聞上談論的方式。你必須建立一個成功的模式。你必須建立一個模型來支援經銷商。您正在從這些國家的傳統 3M 模式轉變為出口驅動模式。因此，重要的是我們不僅要在地區內，還要在全球範圍內支持這些國家的這種模式。

It's also important that we have a strong governance everywhere we operate around the world. So we continue to focus on advancing our governance model as we make those changes. So it is much more dimensions to the change. We're off to a good start and successful with that. We call it a revenue impact this year because we're switching to an export model. And so we're driving a different price model with our distributors. But that is going to continue to drive, I think as it succeeds, will drive very good performance for us on a go-forward basis.

同樣重要的是，我們在世界各地開展業務的任何地方都必須擁有強而有力的治理。因此，在做出這些改變時，我們將繼續專注於推動我們的治理模式。因此，變化的維度要廣泛得多。我們有了一個良好的開始並取得了成功。我們稱之為今年的收入影響，因為我們正在轉向出口模式。因此，我們正在與經銷商一起推行不同的價格模式。但這將繼續推動，我認為一旦成功，將為我們帶來非常好的表現。

It also helps us -- to add on to Mike's comments on pros, benefits, you take a lot of structure out from those countries, that also has benefited us on the margin line. It also helps us focus our portfolio. Like what are we going to sell? And therefore, it's SKU rationalization that once you get through this, you will have a different inventory profile that support those smaller countries. So they're still very important countries for us. In no way are we walking away. It's just a different way of approaching them.

這也對我們有幫助——補充麥克關於優點、好處的評論，你從這些國家中取出了很多結構，這也使我們在利潤線上受益。它也幫助我們集中我們的投資組合。例如我們要賣什麼？因此，SKU 合理化是，一旦你完成了這個任務，你將擁有支持這些較小國家的不同庫存概況。所以它們對我們來說仍然是非常重要的國家。我們絕對不會走開。這只是接近他們的不同方式。

We'll go next now to Joe Ritchie of Goldman Sachs.

接下來我們請高盛的喬·里奇發言。

Mike, I echo all the best of luck, congratulations.

麥克，我也祝你好運，恭喜你。

Thanks, Joe.

謝謝，喬。

I'm going to start just -- just let us start with a quick just clarification. So just apologies if I missed it, like Slide 15, where you give the operating income number of $1.2 billion. So if I just kind of back out the performance this quarter, it assumes Health Care stranded cost of roughly $100 million to $150 million goes to the segment. So I just want to make sure I have that right.

我要開始——讓我們先快速澄清一下。如果我錯過了，請道歉，例如投影片 15，其中您給出了 12 億美元的營業收入數字。因此，如果我只是回溯本季的業績，則假設大約 1 億至 1.5 億美元的醫療保健擱淺成本流向該細分市場。所以我只是想確保我有這個權利。

And then also on that slide, on the restructuring charges, Monish, going back to your comments from earlier, so the way to think about it is $100 million-ish the first quarter ex the Health Care number, that's the apples-to-apples comparison to the restructuring charges of $250 million to $300 million for the year?

然後也在這張投影片上，關於重組費用，莫尼什，回到你之前的評論，所以考慮這個問題的方法是第一季度扣除醫療保健數據後 1 億美元左右，這是同類比較與當年2.5億至3 億美元的重組費用比較？

So try me again on the first piece of the question because I didn't follow exactly. But I'll answer your second one. So the $250 million to the $300 million is embedded in here, and that's on a continuing ops basis. So that does not include Health Care.

所以請再試一下我的第一個問題，因為我沒有完全理解。但我會回答你的第二個問題。因此，2.5 億美元到 3 億美元都包含在這裡，而且是在持續營運的基礎上。所以這不包括醫療保健。

Okay. All right. Great. Yes. So just on the operating income quickly, I think you guys have roughly $1.7 billion this quarter. I think we had like roughly, call it, $350 million or so in Health Care profit. So you back that out, that's above the $1.2 billion number. So I was just basically trying to understand how much the Health Care stranded costs go into the other segments.

好的。好的。偉大的。是的。因此，僅就營業收入而言，我認為本季你們的收入約為 17 億美元。我認為我們的醫療保健利潤大約是 3.5 億美元左右。所以你推翻這個數字，這個數字高於 12 億美元。所以我基本上只是想了解醫療保健滯留成本有多少進入其他領域。

Yes. So I think that there are 2 pieces to this. One is the dis-synergies of Health Care, which on an annualized basis right now, we think it's $150 million to $175 million. And then the second piece of this is, as I've mentioned, there's $250 million of cost that we hold on behalf of Solventum for which you get reimbursed in April 1 onwards. So you eat Q1 with no reimbursement basically.

是的。所以我認為這有兩個部分。其中之一是醫療保健的非協同效應，目前按年化計算，我們認為其規模為 1.5 億至 1.75 億美元。第二部分是，正如我所提到的，我們代表 Solventum 持有 2.5 億美元的費用，您將在 4 月 1 日起得到報銷。所以你吃Q1基本上沒有報銷。

So if you look at our Other segment, Joe, you will see -- or Other category, you will see a loss of $65 million in there in Q1. And that's basically, we don't get reimbursed for that in Q1.

因此，如果你看看我們的其他部門，喬，你會發現——或者其他類別，你會發現第一季虧損 6500 萬美元。基本上，我們在第一季沒有得到補償。

Got it. Okay. No, I think I've got it and can follow up afterwards...

知道了。好的。不，我想我已經明白了，之後可以跟進......

Yes, Bruce can follow up off-line with you.

是的，Bruce 可以離線與您聯繫。

Yes, yes. And then just another quick follow-up on the electronics business. And so I know the stats you kind of gave on demand and then inventory normalization. Is it possible to kind of parse out the inventory benefit that you're seeing? I'm just curious like how much of that 15% came from just inventories normalizing just because -- maybe I'm just not close to it anymore. But I'm just curious, like what other like products are really kind of driving end-market demand for electronics at this point?

是的是的。然後是電子業務的另一個快速跟進。所以我知道你按需提供的統計數據，然後是庫存標準化。是否可以解析出您所看到的庫存效益？我只是很好奇這 15% 有多少來自庫存正常化，只是因為——也許我只是不再接近它了。但我只是很好奇，目前還有哪些類似產品真正推動了終端市場對電子產品的需求？

Yes. Joe, what we talked about in the results for TEBG in the first quarter in electronics, these are spec-in wins on some of the mobile platforms. And so the inventory, it's getting ready for the demand, really the demand that they're seeing into the second quarter. And at this point, it's really -- that's the step-up. And then there's a portion of it that's inventory kind of filling into the value chain of those OEMs. But it's -- the bigger part of it is the spec-in -- for us, anyway, the bigger part of it is the wins in the spec-in side of it.

是的。喬，我們在電子產品第一季 TEBG 的結果中談到了這些是在一些行動平台上的規格勝利。因此，庫存正在為需求做好準備，實際上是他們在第二季度看到的需求。在這一點上，這確實是一個進步。然後，其中一部分庫存會填入這些原始設備製造商的價值鏈中。但無論如何，對我們來說，其中更重要的部分是規格，更重要的部分是規格方面的勝利。

And Mike, that's smartphone demand?

麥克，這就是智慧型手機的需求？

It's mobile devices, largely phones. Yes, yes, largely phones.

它是行動設備，主要是手機。是的，是的，主要是手機。

We'll go next now to Steve Tusa of JPMorgan.

接下來我們請摩根大通的史蒂夫·圖薩發言。

Mike, congrats again, and thanks for all the help over the years and the effort.

麥克，再次祝賀，並感謝多年來的所有幫助和努力。

Yes. Thanks, Steve. Thanks.

是的。謝謝，史蒂夫。謝謝。

Just to be clear, you said 40% of adjusted free cash flow. Can you just help us with what the construct of that is? What is adjusted free cash flow?

需要澄清的是，您所說的是調整後自由現金流的 40%。您能幫我們了解一下它的結構嗎？什麼是調整後自由現金流？

You're referring to the dividend, Steve, I presume?

我想你指的是股息，史蒂夫？

Yes, just the construct. I don't need a number for cash. Just how do you define that adjusted free cash?

是的，只是構造。我不需要現金號碼。您如何定義調整後的自由現金？

Yes. So if you look at all our material that we have submitted, you will see historically what we have broken out is from our GAAP results, there are certain items that we have been adjusting to get to adjusted results, which is litigation expenses. Number one. Number two is PFAS because we've been exiting -- we've been showing PFAS as an exit. And number three was all the costs incurred to spin out Solventum or the Health Care business.

是的。因此，如果您查看我們提交的所有資料，您會發現我們從歷史上看，我們所細分的是我們的 GAAP 結果，我們一直在調整某些項目以獲得調整後的結果，即訴訟費用。第一。第二是 PFAS，因為我們一直在退出——我們一直將 PFAS 作為退出。第三是剝離 Solventum 或醫療保健業務所產生的所有成本。

So it's the same construct there. And as always, Steve, if we decide to change something, we'll keep you all posted on changes to adjustments. So those are the big ones. And if you see our press release statements or schedules, you will see that split by category in there.

所以那裡的結構是相同的。一如既往，史蒂夫，如果我們決定更改某些內容，我們將隨時向您通報調整的變化。這些都是大問題。如果您查看我們的新聞稿聲明或時間表，您會看到其中按類別劃分。

Yes. Steve, it's all detailed in our press release attachments.

是的。史蒂夫，我們的新聞稿附件中有詳細說明。

Right. So whatever you're paying out in cash for these liabilities, that is adjusted out of free cash. So for example, the $4.3 billion or whatever in this year will be adjusted out, and then you take whatever we want to assume for free cash flow and then take 40% of that?

正確的。因此，無論您為這些負債支付多少現金，都會從自由現金中進行調整。舉例來說，今年的 43 億美元或其他什麼將被調整掉，然後你採取我們想要假設的自由現金流，然後採取其中的 40％？

Correct.

正確的。

Correct.

正確的。

We'll go next now to Jeff Sprague of Vertical Research Partners.

接下來我們請垂直研究合作夥伴公司的傑夫‧斯普拉格 (Jeff Sprague) 發言。

Thanks for clarifying that on the dividend. That was a key question. Also, I just wonder, to any degree, has Bill Brown been involved in the kind of the formulation of the updated guidance here, whether explicitly or tacitly? And I know he's formally starting tomorrow, but just any color on that would be interesting and helpful.

感謝您澄清有關股息的問題。這是一個關鍵問題。另外，我只是想知道，比爾布朗是否在某種程度上參與了此處更新指南的製定，無論是明確的還是默認的？我知道他明天就要正式開始工作，但是任何顏色都會很有趣並且有幫助。

Sure, Jeff. Bill is, as you would expect, getting ready to step into the role. He's been engaged with myself and senior management and the Board since the announcement. But he's really -- his part is being informed and getting ready to start, as you said, tomorrow. He's not part of the decisions on what we've laid out here in the earnings call today. So he starts tomorrow. Bill starts tomorrow, and I look forward to working with him as he does.

當然，傑夫。正如你所期望的那樣，比爾正準備接任這個角色。自從宣布這一消息以來，他一直與我本人、高階管理層和董事會保持聯繫。但他確實——正如你所說，他的職責是了解情況並準備明天開始。他沒有參與我們今天的財報電話會議中所製定的決策。所以他明天就開始。比爾明天開始工作，我期待著像他一樣與他一起工作。

Great. And then just thinking about, again, the cash flows as it relates to the liability outflow that we're looking at here. What guidance, if any, could you provide on what you're thinking on insurance recoveries? And if you're successful in those claims, when those might start flowing as potential offsets to the liability schedule?

偉大的。然後再次考慮現金流量，因為它與我們在這裡看到的負債流出有關。對於您對保險賠償的看法，您能提供什麼指引（如果有）？如果您在這些索賠中獲得成功，那麼這些索賠何時可能開始作為責任表的潛在抵銷？

Yes. So we believe that we are eligible for insurance payments. We have put our insurance providers on notice for PWS and for Combat Arms. And in fact, for Combat Arms, we have -- we are working on an arbitration to recover that. So as you know, these things take some time to work through, and that's what the teams are working on. And we'll keep you posted as soon as we come to know on what that number could look like.

是的。所以我們相信我們有資格獲得保險付款。我們已就 PWS 和戰鬥武器向我們的保險公司發出通知。事實上，對於 Combat Arms，我們正在努力透過仲裁來恢復這一點。如你所知，這些事情需要一些時間來解決，而這正是團隊正在努力的方向。一旦我們知道這個數字可能會是什麼樣子，我們就會及時通知您。

We go next now to Brett Linzey of Mizuho.

接下來我們請瑞穗銀行的布雷特‧林澤 (Brett Linzey) 發言。

Congrats to Mike.

恭喜麥克。

Thanks, Brett.

謝謝，布雷特。

Yes. I want to come back to the portfolio and the geographic prioritization. So you called out the 100 basis points headwind in '24. Should we think of the first quarter as the starting point and just simply anniversary that headwind for the balance of the year and it's complete? Or is this more of a multiyear initiative with some top line drag?

是的。我想回到投資組合和地理優先順序。所以你在 24 年指出了 100 個基點的逆風。我們是否應該將第一季視為起點，而只是今年餘下時間的逆風週年紀念日，然後就結束了？或者這更像是一項多年計劃，但會帶來一些收入拖累？

So there's a little bit of drag next year, but I -- it's not big. I would just say the first half of this year will be slightly heavier than the second. But directionally, I would say, yes, you can use the first quarter as the math that gets you across the 4 quarters.

所以明年會有一點阻力，但我──它並不大。我只想說今年上半年會比下半年稍微重一點。但從方向上來說，我會說，是的，你可以使用第一季作為數學來跨越四個季度。

Okay. Great. I guess the follow-up, you called out some contribution from those initiatives in each of the segments. Are you able to size what that benefit is? And I would imagine it's sort of structural, but any color would be great.

好的。偉大的。我想接下來，您指出了每個細分市場中這些舉措的一些貢獻。您能估算出這種好處是什麼嗎？我想它是一種結構性的，但任何顏色都很棒。

Yes. I would just say when we look at it in total is why are we doing these portfolio moves or geographic moves. It comes down to it allows us to do better focus, better prioritization. So at the end of the day, you're going to see it in multiple places. You're going to see better sales growth in other products because we're exiting these and the teams can focus, whether it's ad, merch, et cetera.

是的。我只想說，當我們從總體上來看，這就是為什麼我們要進行這些投資組合變動或地理變動的原因。歸根結底，它讓我們能夠更好地集中註意力，更好地確定優先順序。所以最終，您會在多個地方看到它。你會看到其他產品更好的銷售成長，因為我們正在退出這些產品，團隊可以集中精力，無論是廣告、商品等等。

You will see it in inventory because, again, we'll be able to focus our inventory on the products that we want to focus on. And you're going to see it a little bit in margin. That margin will take a little bit of time to come through. But some of these products that we are exiting are below our average margin. So it does help us lift the average margin. And then as I said on the geographic prioritization side, you get a lot of structure out, which is already embedded in our margin that we are seeing. And we are getting some onetime benefits on property sales that we disclosed this quarter.

您將在庫存中看到它，因為我們將能夠將庫存集中在我們想要關注的產品上。你會看到它有一點邊際。這個利潤需要一點時間才能實現。但我們退出的一些產品的利潤率低於我們的平均水平。所以它確實幫助我們提高了平均利潤率。然後，正如我在地理優先順序方面所說的那樣，您會得到很多結構，這些結構已經嵌入到我們所看到的利潤中。我們在本季揭露的房地產銷售中獲得了一些一次性收益。

We'll go next now to Joe O'Dea of Wells Fargo.

接下來我們將請富國銀行的喬·奧迪 (Joe O'Dea) 發言。

I wanted to ask on PFAS, and you've talked about the exits there, kind of progressing to plan, if not a little bit ahead of plan. But just how do we think about alternatives? I think there's been press over the years on different applications across a number of different end markets when we think about semiconductors or military or auto. Do you expect to participate in that? I mean, where are you on the sort of product innovation pipeline and being able to sort of provide alternative products to what you're exiting?

我想問有關 PFAS 的問題，您已經談到了那裡的出口，如果不是比計劃提前一點的話，那就有點按計劃進行了。但我們如何考慮替代方案呢？我認為，當我們考慮半導體、軍事或汽車時，多年來，許多不同終端市場的不同應用受到了壓力。你希望參與其中嗎？我的意思是，您在產品創新管道中處於什麼位置，並且能夠提供現有產品的替代產品？

Yes. And Joe, as I said in my comments, we work with each of our customers as part of the transition. I would say there's kind of 3 alternatives for them. One is PFAS from another source. A number of the applications, many of the significant applications, they're challenged to find an alternative. So that's what they're looking to do is source PFAS from another supplier.

是的。喬，正如我在評論中所說，作為過渡的一部分，我們與每個客戶合作。我想說他們有 3 種選擇。一種是來自其他來源的 PFAS。許多應用程序，許多重要的應用程序，他們都面臨著尋找替代方案的挑戰。因此，他們希望從另一家供應商購買 PFAS。

The second one is perhaps there's a chemistry that has similar properties that isn't PFAS, and you can move into that. We're exiting PFAS, and we're not going to move into other chemistries. They'll be durable and persistent to meet the requirements of these applications.

第二個可能是有一種化學物質具有類似的特性，但不是 PFAS，您可以轉向它。我們將退出 PFAS，並且不會轉向其他化學物質。它們將經久耐用，能夠滿足這些應用程式的要求。

The one area where we can help and what we're doing for ourselves is working to discontinue the use of PFAS in our products. And we're engineering them all. We're designing them. We're on them. And there's a number of applications our customers have where that's very difficult to do and challenging, and they don't know a solution today. But for us, the majority -- the vast majority, we're already worked through solutions. So that's something that we can help customers with, and we are. We're helping them look at the alternative ways to design and engineer their processes and products.

我們可以提供幫助並且正在為自己做的一個領域是努力停止在我們的產品中使用 PFAS。我們正在對它們進行全部設計。我們正在設計它們。我們正在對付他們。我們的客戶有許多應用程式非常難以實現且具有挑戰性，而且他們現在不知道解決方案。但對我們來說，大多數——絕大多數，我們已經找到了解決方案。因此，這是我們可以為客戶提供幫助的事情，而我們確實做到了。我們正在幫助他們尋找設計和工程流程和產品的替代方法。

That's helpful. And then second question is just related to CERCLA designation and really just trying to understand what the designation versus not getting the designation means at a high level. I think when you first announced this being proposed, you talked about how 3M's view was this would not lead to a timely or appropriate kind of remediation. But just to try to understand, having the designation versus not having it at the end of the day, kind of what that means.

這很有幫助。第二個問題與 CERCLA 指定有關，實際上只是想從高層次理解指定與未獲得指定的含義。我想當您第一次宣布提出這一建議時，您談到了 3M 的觀點，即這不會導致及時或適當的補救措施。但只是嘗試去理解，擁有這個頭銜與最終沒有擁有它，這意味著什麼。

Yes. There are certain, I would say, EPA responsibilities that would come with CERCLA designation. We, at this point, we don't anticipate an impact on our ability to serve customers. And we'll -- as we better understand all of those requirements, and we're committed to meeting and complying with the requirements under CERCLA and the EPA guidelines.

是的。我想說，取得 CERCLA 頭銜後，EPA 會承擔一定的責任。目前，我們預計不會對服務客戶的能力產生影響。隨著我們更好地了解所有這些要求，我們將致力於滿足並遵守 CERCLA 和 EPA 指南的要求。

And we'll go next now to Deane Dray of RBC Capital Markets.

接下來我們請加拿大皇家銀行資本市場部的 Deane Dray 發言。

My congrats to Mike and also to the team on orchestrating all these moving parts.

我祝賀麥克和團隊精心策劃了所有這些活動部分。

Yes. Thanks, Deane.

是的。謝謝，迪恩。

Thank you, Deane.

謝謝你，迪恩。

And just a quick follow-up on that last PFAS question. So the enforcement actions by the EPA, they set PFAS as hazardous. So that's a milestone and then in the process of setting up the Superfund. So would either of these actions put you closer to be able to set a reserves? I know you couldn't before for accounting purposes. It was not estimable or the probable, but now we're closer to that. So are you closer to where you could be setting reserves for these remaining unaddressed PFAS liabilities?

快速跟進最後一個 PFAS 問題。因此，EPA 的執法行動將 PFAS 列為危險物質。所以這是一個里程碑，也是設立超級基金過程中的一個里程碑。那麼，這些行動中的任何一個都會讓您更接近能夠設定儲備金嗎？我知道你以前不能出於會計目的。這是不可估計的或可能的，但現在我們更接近了。那麼，您是否已經接近為這些剩餘的未解決的 PFAS 負債設定準備金的目標了？

Yes. Deane, we are -- as I've said a number of times, we're proactively managing this, all aspects of the PFAS dynamic. And as soon as we can get to probable and estimable, we will take the reserves. And we'll keep you informed, and I would refer to our SEC filings for updates.

是的。 Deane，正如我多次說過的，我們正在積極管理 PFAS 動態的各個方面。一旦我們能夠達到可能和可估計的水平，我們就會採取儲備。我們隨時會通知您，我會參考我們向 SEC 提交的文件以獲取最新資訊。

That's really helpful. And just one other one, I'm sorry. Is there any scenario where 3M would continue to manufacture PFAS after the year-end 2025 target?

這真的很有幫助。抱歉，還有另一件事。在 2025 年底目標之後，3M 是否會繼續生產 PFAS？

No, Deane, we're committed to that exit. We're on track, and we're committed to follow through.

不，迪恩，我們致力於那個出口。我們已步入正軌，並且我們致力於堅持到底。

This concludes the question-and-answer portion of our conference call. I will now turn the call back over to Mike Roman for some closing comments.

我們電話會議的問答部分到此結束。我現在將把電話轉回邁克·羅曼（Mike Roman），徵求一些結束語。

This concludes my last earnings call as 3M's CEO. I would like to thank the investors, shareholders, analysts, employees and family who join these calls each quarter. I greatly appreciate your questions and diligence in working to better understand our company. I'm confident that under Bill's leadership, our people will continue to build on the momentum from our strong start to the year.

我作為 3M 執行長的最後一次財報電話會議到此結束。我要感謝每季參加這些電話會議的投資者、股東、分析師、員工和家人。我非常感謝您的提問以及您為更了解我們公司所做的努力。我相信，在比爾的領導下，我們的人民將繼續鞏固今年強勁開局的勢頭。

Thank you for joining us, and have a great day.

感謝您加入我們，祝您有美好的一天。

Ladies and gentlemen, that does conclude today's conference call. We thank you for your participation and ask that you please disconnect your line at this time.

女士們先生們，今天的電話會議到此結束。我們感謝您的參與，並請您此時斷開線路。