3M (MMM) 2024 Q2 法說會逐字稿

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

（技術困難）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 second quarter earnings conference call. With me today are Bill Brown, 3M's Chief Executive Officer; and Monish Patolawala, our President and Chief Financial Officer. Bill and Monish will make some formal comments, then we'll take your questions.

謝謝大家，大家早安，歡迎參加我們的第二季財報電話會議。今天和我在一起的有 3M 執行長比爾布朗 (Bill Brown)；以及我們的總裁兼財務長 Monish Patolawala。比爾和莫尼什將發表一些正式評論，然後我們將回答您的問題。

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.

請注意，今天的收益發布和本次電話會議附帶的幻燈片演示均發佈在我們投資者關係網站 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 will be making certain predictive statements that reflect our current views about 3M's future performance and financial results.

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。

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-Q lists some of the most important risk factors that could cause actual results to differ from our predictions.

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-Q 表的第 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 will 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，我們將提及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。

With that, please turn to slide 3 and I'll hand the call off to Bill. Bill?

接下來，請翻到投影片 3，我會將電話轉交給 Bill。帳單？

Okay, thank you Bruce and good morning, everyone. This morning we reported second quarter results with non-GAAP earnings per share of $1.93, up nearly 40% with 1% organic revenue growth. Adjusted free cash flow was $1.2 billion with conversion of 109%.

好的，謝謝布魯斯，大家早安。今天早上，我們公佈了第二季度業績，非 GAAP 每股收益為 1.93 美元，增長近 40%，有機收入增長 1%。調整後自由現金流為 12 億美元，轉換率為 109%。

I'd like to thank the 3M employees for all their hard work in delivering solid second quarter results. Monish will provide further details on the quarter and then I'll wrap up our prepared remarks with guidance for the year before opening the call to Q&A.

我要感謝 3M 員工為實現第二季穩健業績所做的辛勤工作。莫尼什將提供有關本季度的更多詳細信息，然後我將在開始問答電話會議之前總結我們準備好的講話並提供全年指導。

I've now been in the job for nearly three months and have been busy visiting a number of our factories and labs, as well as taking a fresh look at our strategy and how we're executing against it. As you know, 3M has been undergoing a lot of change in the past few years following COVID, most recently with a successful spinoff of the healthcare business executing on a significant restructuring effort and working to mitigate risks, including discontinuing PFAS manufacturing by the end of 2025 and settling legal matters.

我現在已經入職近三個月了，一直忙著參觀我們的一些工廠和實驗室，並重新審視我們的策略以及我們如何執行它。如您所知，在新冠疫情之後的過去幾年中，3M 經歷了許多變化，最近成功剝離了醫療保健業務，進行了重大重組工作並努力降低風險，包括在 2019 年年底前停止 PFAS 生產。年並解決法律問題。

You've also seen a number of changes to our organizational model, shifting from a geographic to a global business unit structure and centralizing our global supply chain activities under one senior leader. Collectively, this has been a massive transformational change for 3M, and the team has executed really well.

您也看到我們的組織模式發生了一些變化，從地理業務單元結構轉變為全球業務單元結構，並將我們的全球供應鏈活動集中在高階領導的領導下。總的來說，這對 3M 來說是一次巨大的轉型變革，而且團隊執行得非常好。

As a result of these efforts, you're seeing the benefits in operating margin expansion, strong cash generation, and a solid balance sheet with low leverage ratios and an incrementally more positive view from the rating agencies. Credit to Mike and Monish for their steady hand in guiding the company through these changes.

透過這些努力，您將看到營業利潤率擴張、強勁的現金產生、穩健的資產負債表、低槓桿率以及評級機構越來越積極的看法等方面的好處。感謝麥克和莫尼什堅定地指導公司完成這些變革。

But my job is to look forward. And while much progress has been made, we have more to do including navigating PFAS related matters where fortunately we have a strong, terrific team managing the exit and our ongoing legal matters. As I see it, we're still in the early innings of our operational excellence journey and we haven't yet cracked the code on organic growth, which I know is essential to creating shareholder value.

但我的工作是向前看。儘管已經取得了很大進展，但我們還有更多工作要做，包括處理 PFAS 相關事務，幸運的是，我們有一支強大而出色的團隊來管理退出和正在進行的法律事務。在我看來，我們仍處於卓越營運之旅的早期階段，我們尚未破解有機成長的密碼，我知道這對於創造股東價值至關重要。

So my top priorities are number one, driving sustained top line organic growth; number two, improving operational performance across the enterprise; and number three, effectively deploying capital.

因此，我的首要任務是推動持續的營收有機成長；第二，提升整個企業的營運績效；第三，有效配置資本。

On the first priority, I believe that the company has significant organic growth opportunities as we participate in end markets with favorable secular trends and have a strong foundation and long history in material science innovation. However, as you well know, organic growth has been below market indices and peers over several years and up only about 1% year-to-date. Driving sustained organic growth requires both getting more out of R&D, as well as improving commercial excellence.

首先，我相信公司擁有重大的有機成長機會，因為我們參與了具有良好長期趨勢的終端市場，並且在材料科學創新方面擁有堅實的基礎和悠久的歷史。然而，如您所知，有機成長多年來一直低於市場指數和同行，今年迄今僅成長約 1%。推動持續的有機成長需要從研發中獲得更多收益，並提高商業卓越性。

As I've gotten into the details, what I've learned is that ex-Solventum, R&D investment for core 3M, which is running about $1 billion per year, or about 4.5% of revenue, has been flattened nominally over the past five years and down on a real basis as the focus was on investing in and strengthening the healthcare business. And within the lower spend, the amount we invest on new product development has declined even further as the company shifted more dollars to efforts to exit PFAS manufacturing and work to reduce supply chain cost and resolve COVID related sourcing constraints.

當我了解細節時，我了解到，在過去的五年中，核心 3M 的研發投資（每年約 10 億美元，約佔收入的 4.5%）已在名義上持平。業務，因此實際情況會持續數年甚至更短。在支出較低的情況下，我們在新產品開發上的投資金額進一步下降，因為公司將更多資金用於退出 PFAS 製造，並努力降低供應鏈成本並解決與新冠病毒相關的採購限制。

As a result of the decline in investment, along with a strategic shift to fewer, but larger innovation opportunities, the number of and revenue from new product introductions has steadily declined over the past decade. The simple fact is that our products are aging. While we've been shifting our portfolio towards higher growth markets like auto electrification, industrial automation, data centers and semis, climate tech and others, these efforts aren't material enough today to offset erosion in our core.

由於投資下降，加上策略轉向更少但更大的創新機會，新產品推出的數量和收入在過去十年中穩步下降。一個簡單的事實是我們的產品正在老化。雖然我們一直在將我們的投資組合轉向汽車電氣化、工業自動化、資料中心和半成品、氣候技術等更高成長的市場，但這些努力目前還不足以抵消我們核心業務的侵蝕。

They remain, for the most part, attractive growth platforms, and we need to continue to balance investing appropriately in markets that are evolving quickly, while also investing incrementally to sustain the core products we have today. But before we make any adjustments to our R&D budget, I want to first explore opportunities to get more from what we currently spend.

在很大程度上，它們仍然是有吸引力的成長平台，我們需要繼續平衡對快速發展的市場的適當投資，同時也進行增量投資以維持我們今天擁有的核心產品。但在我們對研發預算進行任何調整之前，我想先探索如何從我們目前的支出中獲得更多收益的機會。

For example, improving the velocity of our new product development process and increasing the effective capacity of our engineers by eliminating bottlenecks and non-value added work, and over time, redeploying those currently working on PFAS exit activities to growth initiatives. With enhanced data transparency and a more coordinated governance process, we can improve R&D effectiveness by deploying resources on the highest return projects. These efforts are essential to reinvigorating the 3M innovation machine but will take time to bear fruit.

例如，透過消除瓶頸和非增值工作來提高新產品開發流程的速度並提高工程師的有效能力，並隨著時間的推移，將目前從事 PFAS 退出活動的人員重新部署到成長計畫中。透過增強的資料透明度和更協調的治理流程，我們可以透過將資源部署在回報率最高的專案上來提高研發效率。這些努力對於重振 3M 創新機器至關重要，但需要時間才能取得成果。

So in the near-term we have to focus on commercial excellence to sell more of what we currently offer, and that means better sales force and distributor effectiveness, targeted marketing, optimized pricing, and much better execution at the customer interface, in particular, on time, in full performance, which is a key part of my second priority, operational performance.

因此，在短期內，我們必須專注於商業卓越，以銷售更多我們目前提供的產品，這意味著更好的銷售團隊和分銷商效率、有針對性的營銷、優化的定價以及在客戶界面上更好的執行，特別是，準時、充分履行職責，這是我的第二個優先事項（營運績效）的關鍵部分。

We have a terrific ops leadership team in place, executing on a number of opportunities, and I want to give you some color of what I'm seeing so far. I've been looking at our manufacturing and distribution network to understand our global supply chain and distribution capabilities.

我們擁有一支出色的營運領導團隊，正在執行許多機會，我想向您介紹我迄今為止所看到的情況。我一直在研究我們的製造和分銷網絡，以了解我們的全球供應鏈和分銷能力。

I see opportunities to reduce complexity, drive lean manufacturing and logistics, improve supply chain management, lower yield loss, and increased service levels with lower inventory. While our network of 110 factories and 95 distribution centers have historically served 3M well, it is incredibly complex and interconnected with most SKUs we produce touching multiple factories before reaching the customer.

我看到了降低複雜性、推動精益製造和物流、改善供應鏈管理、降低良率損失以及透過降低庫存來提高服務水準的機會。雖然我們的 110 家工廠和 95 個配送中心組成的網路歷來為 3M 提供了良好的服務，但它非常複雜，而且我們生產的大多數 SKU 在到達客戶之前都會涉及多個工廠。

For example, a command strip touches five factories and two distribution points before it hits the store shelf. This extends cycle times, increases goods in transit, and drives up logistics and freight costs. In lean manufacturing and logistics, we're developing a consistent metric around operating equipment efficiency or OEE, to increase equipment utilization and rein in capital spending and mapping modes and flows to lower freight and distribution costs.

例如，命令條在到達商店貨架之前會觸及五個工廠和兩個分發點。這延長了週期時間，增加了運輸中的貨物，並提高了物流和貨運成本。在精益製造和物流中，我們正在圍繞營運設備效率或 OEE 制定一致的衡量標準，以提高設備利用率並控制資本支出以及映射模式和流程，從而降低貨運和分銷成本。

In supply chain, we have significant opportunities to improve our sourcing effectiveness. We have more than 25,000 direct and indirect suppliers, including nearly 4000 contract and component manufacturers, yet more than 80% of our raw materials are sole sourced. We haven't been holding our suppliers accountable to the same quality and delivery standards as our customers hold us to, and we're only beginning to leverage our scale to reduce cost.

在供應鏈中，我們有很大的機會來提高採購效率。我們擁有超過 25,000 家直接和間接供應商，其中包括近 4000 家合約製造商和零件製造商，但我們 80% 以上的原材料都是獨家採購。我們並沒有要求我們的供應商遵守與客戶要求我們相同的品質和交付標準，而且我們才剛開始利用我們的規模來降低成本。

Relative to yield loss, our raw material waste is running close to 5% of cost of goods sold, due in part to how we design and manufacture our products, but also due to inefficient production scheduling and changeovers. And finally, we have too much inventory at about $4 billion in 102 days at the end of Q2 and yet our service levels are only in the mid-80s. Our bottoms up analysis indicates we should be closer to 75 days of inventory or lower, which would imply about $1 billion cash opportunity over time while we drive on time in full above 90%.

相對於產量損失，我們的原材料浪費接近銷售成本的 5%，部分原因是我們設計和製造產品的方式，但也由於生產調度和轉換效率低下。最後，我們的庫存過多，在第二季末的 102 天內約為 40 億美元，但我們的服務水準僅在 80 年代中期。我們自下而上的分析表明，我們的庫存應該接近 75 天或更低，這意味著隨著時間的推移，當我們按時開車的時間超過 90% 時，現金機會約為 10 億美元。

My third priority is effectively deploying capital, and our approach remains the same as it's been. Investing in R&D and CapEx to fund organic growth, paying an attractive dividend which we just recalibrated with the spin of Solventum, maintaining a strong balance sheet and using excess capital for M&A or share buybacks. We repurchased about $400 million in stock in the second quarter and have the capacity to do more in the second half and next year.

我的第三個優先事項是有效配置資本，我們的方法保持不變。投資研發和資本支出為有機成長提供資金，支付有吸引力的股息（我們剛剛透過 Solventum 的重組重新調整股息），保持強勁的資產負債表，並使用多餘的資本進​​行併購或股票回購。我們在第二季回購了約 4 億美元的股票，並有能力在下半年和明年採取更多行動。

While no acquisitions are on the near-term horizon, I'll be taking a fresh, dispassionate look at our portfolio to determine if any assets have greater value owned by others, and along the same line, what assets might be a good fit for 3M. I don't have anything further to say on that today, but you can expect to hear more from me regarding portfolio prioritization as I deepen my understanding of our businesses and end markets.

雖然短期內不會進行收購，但我將重新冷靜地審視我們的投資組合，以確定是否有任何資產具有其他人擁有的更大價值，並且沿著同樣的思路，哪些資產可能適合3M。今天我對此沒有更多要說的，但隨著我加深對我們的業務和終端市場的了解，您可以期待從我那裡聽到更多有關投資組合優先級的信息。

So for the past three months, it's been pretty busy with a lot still to learn. I think we have a good foundation to build upon and believe that this focus on fundamentals, back to basics approach will drive value creation. I'm encouraging everyone at 3M, from top to bottom, to every day challenge the status quo and the way we've done things in the past, to act with speed and urgency and to off-board those things that distract us from growing, innovating and executing for customers and shareholders.

所以在過去的三個月裡，我一直很忙碌，還有很多東西要學習。我認為我們擁有良好的基礎，並相信這種注重基本面、回歸基本面的方法將推動價值創造。我鼓勵 3M 從上到下的每個人每天都挑戰現狀和我們過去做事的方式，快速而緊迫地採取行動，並摒棄那些幹擾我們成長的事情，為客戶和股東創新和執行。

And with that, I'll turn it over to Monish to cover the quarter and I'll come back to discuss guidance. Monish?

這樣，我會將其交給莫尼什來報道該季度的情況，然後我會回來討論指導意見。莫尼什？

Thank you, Bill and good morning everyone. Please turn to slide 4. I would like to take a moment to briefly remind you of a few items that we highlighted during last quarter's earnings call. Beginning with the second quarter, our results for business segment operating income includes prospectively the impact of dissynergies or stranded costs previously associated with Solventum. Therefore, for historical pre-spin periods presented, the dissynergies are reflected in corporate and unallocated.

謝謝你，比爾，大家早安。請翻到投影片 4。從第二季開始，我們的業務部門營業收入結果預計包括先前與 Solventum 相關的不協同效應或擱淺成本的影響。因此，對於所呈現的歷史預旋轉時期，不協同效應反映在公司和未分配方面。

In addition, we added a new operating category named Other for Solventum transition service agreement activity. Other includes our Q1 cost associated with supporting the agreements for which 3M started to be reimbursed for in April. And finally, corporate and unallocated incorporates the commercial agreements between 3M and Solventum that started on April 1, and retrospectively picks up certain operations of the former healthcare business retained by 3M.

此外，我們也為 Solventum 過渡服務協議活動新增了一個名為「其他」的新營運類別。其他包括與支持 3M 從 4 月開始報銷的協議相關的第一季成本。最後，公司和未分配合併了 3M 和 Solventum 之間於 4 月 1 日開始的商業協議，並追溯接管了 3M 保留的前醫療保健業務的某些業務。

Turning to our second quarter performance, we posted solid adjusted results, including sales of $6 billion, operating margins of 21.6%, earnings per share of $1.93, and free cash flow of $1.2 billion. We delivered adjusted organic growth of 1.2% or up 2.4%, excluding geographic prioritization and product portfolio initiatives.

談到第二季的業績，我們公佈了穩健的調整後業績，包括 60 億美元的銷售額、21.6% 的營業利潤率、1.93 美元的每股收益和 12 億美元的自由現金流。我們實現了 1.2% 的調整後有機增長或 2.4% 的增長（不包括地域優先級和產品組合計劃）。

These results reflect the trends that we have previously discussed, including strong growth in electronics, mixed industrial end markets and continued softness in consumer retail discretionary spending. We had another strong quarter of execution with adjusted operating margins expanding 440 basis points year-on-year, and delivered adjusted free cash flow of $1.2 billion with conversion of 109%.

這些結果反映了我們之前討論過的趨勢，包括電子產品的強勁成長、工業終端市場的混合以及消費者零售可自由支配支出的持續疲軟。我們的季度執行力又強勁，調整後營業利潤率年增 440 個基點，調整後自由現金流達到 12 億美元，轉換率為 109%。

Please turn to slide 5. On an adjusted basis, we delivered operating margins of 21.6%, up 440 basis points and earnings of $1.93 per share, up 39% versus last year's second quarter. Our second quarter year-on-year performance was driven by organic growth, productivity, strong spending discipline and restructuring savings which combined benefited operating margins by 310 basis points and earnings by $0.31 per share.

請參閱投影片 5。我們第二季的年比業績是由有機成長、生產力、嚴格的支出紀律和重組節省推動的，這些因素綜合起來使營業利潤率提高了 310 個基點，每股收益提高了 0.31 美元。

In addition, income from the transition services we are providing to Solventum increased margins by 50 basis points and earnings by $0.05 per share. These benefits were partially offset by stock based compensation which was shifted into the second quarter due to the spin of Solventum. This was in line with what we discussed during our first quarter earnings call.

此外，我們向 Solventum 提供的過渡服務收入使利潤率提高了 50 個基點，每股收益提高了 0.05 美元。這些收益被基於股票的薪酬部分抵消，由於 Solventum 的剝離，股票薪酬被轉移到第二季度。這與我們在第一季財報電話會議上討論的內容一致。

This change in timing negatively impacted operating margins by 200 basis points and earnings by $0.18 per share versus last year's second quarter. Lower year-on-year restructuring charges were a benefit of 270 basis points to margins and $0.23 to earnings. For the second quarter restructuring charges were $44 million, which were lower than anticipated. For the full year we continue to expect pretax restructuring charges in the range of $250 million to $300 million.

與去年第二季相比，這一時間點的變化對營業利潤產生了 200 個基點的負面影響，對每股盈餘產生了 0.18 美元的負面影響。重組費用較去年同期降低，利潤率提高了 270 個基點，收益提高了 0.23 美元。第二季重組費用為 4,400 萬美元，低於預期。我們預計全年稅前重組費用將在 2.5 億至 3 億美元之間。

Foreign currency was a negative $0.04 per share impact as a result of the stronger US dollar. Acquisition and divestitures were a benefit of 10 basis points to margins and $0.03 to earnings year-on-year. This benefit is related to last year's second quarter reconsolidation of Aearo Technologies along with the commercial agreements between 3M and Solventum.

由於美元走強，外幣匯率對每股產生 0.04 美元的負面影響。收購和資產剝離使利潤率同比提高了 10 個基點，收益比去年同期提高了 0.03 美元。這項收益與去年第二季 Aearo Technologies 的重組以及 3M 和 Solventum 之間的商業協議有關。

Below the line items benefited earnings by a combined $0.14 per share. This benefit was primarily due to increased interest income year-on-year on a higher cash balance due to in part by cash proceeds received from the spin of Solventum.

以下項目使每股收益總計增加 0.14 美元。這一收益主要是由於現金餘額增加，利息收入同比增加，部分原因是從 Solventum 剝離中收到的現金收益。

Taking into account our first half of the year performance, we now expect our full year non-operating expense to be in the range of $50 million to $75 million versus a prior range of $75 million to $100 million.

考慮到我們上半年的業績，我們現在預計全年營業外支出將在 5,000 萬美元至 7,500 萬美元之間，而之前的範圍為 7,500 萬美元至 1 億美元。

A quick comment on corporate and unallocated and other before moving on to cash flow, Q2 corporate and unallocated sales were $86 million with a $2 million adjusted operating loss. Year-to-date, corporate and unallocated sales were $112 million with an adjusted operating loss of $73 million. This is in line with our full year anticipated sales range of $225 million to $275 million with a forecasted adjusted operating loss in the range of $125 million to $175 million.

在討論現金流之前，先對公司和未分配及其他進行快速評論，第二季度公司和未分配銷售額為 8600 萬美元，調整後營運虧損為 200 萬美元。年初至今，公司和未分配銷售額為 1.12 億美元，調整後營運虧損為 7,300 萬美元。這符合我們 2.2​​5 億至 2.75 億美元的全年預期銷售額範圍，以及 1.25 億至 1.75 億美元的預期調整後營業虧損。

Our other category had operating income of $37 million which reflects the level of activity and effort to support the successful spinout of Solventum. Year-to-date, other had an operating loss of $28 million which is in line with our full year expectation of flat to a loss of $25 million.

我們的其他類別的營業收入為 3700 萬美元，這反映了支持 Solventum 成功分拆的活動和努力的水平。年初至今，其他業務的營運虧損為 2,800 萬美元，這與我們預計全年虧損持平至 2,500 萬美元的預期一致。

Please turn to slide 6. Second quarter adjusted free cash flow was $1.2 billion. Our second quarter performance was driven by strong operating income, lower CapEx spending partially offset by higher working capital. Adjusted capital expenditures were $250 million in the quarter as we continue to invest in growth, productivity and sustainability.

請翻至投影片 6。我們第二季的業績是由強勁的營業收入推動的，較低的資本支出部分被較高的營運資本所抵銷。隨著我們繼續投資於成長、生產力和永續性，本季調整後的資本支出為 2.5 億美元。

During the quarter we returned a total of $800 million to shareholders split equally between dividends and share repurchases. And finally, net debt at the end of Q2 stood at approximately $3 billion. These strong results build on our track record of robust cash generation. For the first half of the year we have generated $2 billion of adjusted free cash flow.

本季度，我們總共向股東返還了 8 億美元，其中股利和股票回購均等分。最後，第二季末的淨債務約為 30 億美元。這些強勁的業績建立在我們強勁的現金產生記錄之上。今年上半年，我們產生了 20 億美元的調整後自由現金流。

Our strong capital structure continues to provide us the financial flexibility to invest in our business, return capital to shareholders and meet the cash flow needs related to legal matters. Please note that in the month of July we will make total combined payments of $3.7 billion related to the Public Water Supplies and Combat Arms settlements.

我們強大的資本結構繼續為我們提供財務靈活性，以投資我們的業務、向股東返還資本並滿足與法律事務相關的現金流量需求。請注意，7 月我們將支付與公共供水和戰鬥武器和解相關的總計 37 億美元的付款。

Before I move on to our business segment performance, I want to highlight a couple of items for your awareness that were excluded in arriving at our Q2 adjusted results. First, note that we reached settlements of approximately $120 million with insurance carriers related to Combat Arms. We remain in discussion with multiple carriers and anticipate additional future recoveries.

在繼續討論我們的業務部門業績之前，我想強調一些項目，以供您注意，這些項目在我們第二季調整後的結果中被排除在外。首先，請注意，我們與 Combat Arms 相關保險公司達成了約 1.2 億美元的和解協議。我們仍在與多家營運商進行討論，並預計未來會有更多恢復。

Second, during the quarter we incurred a non-cash charge of approximately $800 million related to a $2.5 billion pension risk transfer on a portion of our US defined pension obligation with Met Tower Life. This action helps us to reduce risk and administrative fees related to our US pension plan.

其次，本季我們產生了約 8 億美元的非現金費用，涉及我們與 Met Tower Life 的美國規定退休金義務的一部分的 25 億美元退休金風險轉移。這項行動有助於我們降低與美國退休金計劃相關的風險和管理費用。

Please turn to Slide 7. Starting with our Safety and Industrial business, which posted sales of $2.8 billion, up 1.1% organically. Industrial adhesives and tapes posted mid-single digit organic growth driven by strength in bonding solutions for consumer electronic devices. Personal safety and automotive aftermarket grew low single digits. Electrical markets was up slightly while roofing granules was flat due to unplanned customer manufacturing challenges.

請參閱投影片 7。受消費性電子設備黏合解決方案實力的推動，工業黏合劑和膠帶實現了中個位數有機成長。個人安全和汽車售後市場成長低個位數。由於計劃外的客戶製造挑戰，電氣市場小幅上漲，而屋頂顆粒則持平。

And finally, we experienced year-on-year organic sales declines in abrasives and industrial specialties. Geographically, industrial markets grew low single digits in the US and Asia Pacific, while EMEA was down low single digits. Overall, industrial end market demand continued to be mixed in the quarter as end user and channel remained cautious.

最後，我們經歷了磨料磨料和工業特種產品的年比有機銷售下降。從地理來看，美國和亞太地區的工業市場出現低個位數成長，而歐洲、中東和非洲地區則出現低個位數成長。整體而言，本季工業終端市場需求持續參差不齊，終端用戶和通路仍保持謹慎態度。

Adjusted operating income was $623 million with adjusted operating margins of 22.6%, up 40 basis points year-on-year. This performance was driven by higher sales volume benefits from ongoing productivity and restructuring actions and lower year-on-year restructuring charges. These benefits were partially offset by the timing of stock based compensation and cost inefficiencies due to the spin of Solventum.

調整後營業收入為 6.23 億美元，調整後營業利益率為 22.6%，較去年同期成長 40 個基點。這一業績的推動因素是持續的生產力和重組行動帶來的銷售增加以及同比重組費用的降低。這些收益被基於股票的補償時間和 Solventum 剝離導致的成本低效率所部分抵消。

Moving to transportation and electronics on slide 8, which posted adjusted sales of $1.9 billion, or up 3.3% organically. Our electronics business outperformed the market up low double digits organically as we continued to gain spec in wins on consumer electronic devices and in semiconductor manufacturing.

第 8 張投影片轉向運輸和電子產品，調整後銷售額為 19 億美元，有機成長 3.3%。隨著我們在消費性電子設備和半導體製造方面的勝利不斷獲得規格，我們的電子業務有機地跑贏了市場低兩位數。

Our auto OEM business increased nearly 5% in Q2 versus a 0.5 point decrease in global car and light truck bills. Looking at the first half of the year, our auto OEM business was up 9% organically versus a flat global build rate of cars and light trucks as we continued to gain penetration on new platforms.

我們的汽車 OEM 業務在第二季度成長了近 5%，而全球汽車和輕型卡車帳單下降了 0.5 個百分點。回顧今年上半年，隨著我們繼續在新平台上獲得滲透，我們的汽車 OEM 業務有機增長了 9%，而全球轎車和輕型卡車製造率持平。

Looking at the rest of transportation and electronics, advanced materials grew mid-single digits organically and commercial branding and transportation was down low single digits year-on-year. Transportation and electronics delivered $426 million in adjusted operating income, up 16% year-on-year. Adjusted operating margins were 22.3%, up 250 basis points year-on-year.

看看其他運輸和電子產品，先進材料有機成長中個位數，商業品牌和運輸同比下降低個位數。運輸和電子業務調整後營業收入達 4.26 億美元，年增 16%。調整後營業利益率為22.3%，較去年同期上升250個基點。

The team achieved this result through strong leverage on electronics volumes, ongoing benefits from productivity and restructuring actions, and lower year-on-year restructuring charges. Partially offsetting these benefits were the timing of stock based compensation grants and cost inefficiencies due to the spin of Solventum.

該團隊透過對電子產品銷售的強大槓桿作用、生產力和重組行動的持續收益以及較低的同比重組費用來實現這一結果。部分抵消了這些好處的是基於股票的補償授予的時機以及由於 Solventum 的剝離而導致的成本效率低下。

Turning to slide 9, the consumer business posted second quarter sales of $1.3 billion. Organic sales declined 1.4% year-on-year with continued softness in consumer discretionary spending. This included a 2.7 percentage point impact from portfolio and geographic prioritization. Home improvement grew mid-single digits, consumer safety and wellbeing grew low single digits, packaging and expression declined low single digits, while home and auto care declined mid-single digits organically. Geographically, the US was up slightly, Asia Pacific was down mid-single digits and EMEA was down high single digits.

轉向投影片 9，消費者業務公佈第二季銷售額為 13 億美元。由於非必需消費品支出持續疲軟，有機銷售額年減 1.4%。其中包括投資組合和地理優先順序帶來的 2.7 個百分點的影響。家居裝修增長中個位數，消費者安全和福祉增長低個位數，包裝和表達下降低個位數，而家庭和汽車護理有機下降中個位數。從地理來看，美國略有上升，亞太地區出現中個位數下降，歐洲、中東和非洲地區出現高個位數下降。

Consumer second quarter operating income was $219 million, down 7% compared to last year with operating margins of 17.4%, down 80 basis points year-on-year. Operating margin performance was driven by lower volume and timing of stock-based compensation grants along with the cost inefficiencies due to the spin of Solventum. Partially offsetting these headwinds were benefits from lower restructuring charges.

消費者第二季營業收入為2.19億美元，較去年同期下降7%，營業利益率為17.4%，較去年同期下降80個基點。營業利潤率表現是由於股票補償授予的數量和時間減少以及 Solventum 的剝離導致的成本效率低下而推動的。重組費用降低的好處部分抵消了這些不利因素。

Before I turn it back over to Bill, I want to take a moment to thank the 3M team for the tremendous progress they have made positioning the company for success. I am very proud of the relentless focus our teams have brought to create value by driving performance through our improved productivity and efficiency, spinning out of our healthcare business and reducing risk and uncertainty by managing legal matters.

在將問題轉回給 Bill 之前，我想花點時間感謝 3M 團隊為公司取得成功所取得的巨大進步。我對我們的團隊不懈地專注於創造價值感到非常自豪，他們透過提高生產力和效率來推動業績，剝離我們的醫療保健業務，並透過管理法律事務來降低風險和不確定性。

I am confident that under Bill's leadership, the team will continue to build on this momentum to create consistent value for our people, our customers and our shareholders in the years to come. I would also like to thank all the analysts and investors for our rich discussions and engagements over the last four years.

我相信，在比爾的領導下，團隊將繼續發揚這一勢頭，在未來幾年為我們的員工、客戶和股東創造一致的價值。我還要感謝所有分析師和投資者在過去四年中與我們進行的豐富討論和接觸。

With that, please turn to slide 10 and I will turn it back over to bill for an update on our guidance. Bill?

接下來，請翻到投影片 10，我會將其轉回帳單以獲取我們指南的最新資訊。帳單？

Thanks Monish. Given the strong operational execution in the first half of the year, we're raising the bottom end of our full year adjusted earnings guidance by $20 to a range of $7 to $7.30 versus $6.80 to $7.30 previously, now up 16% to 21% year-on-year. Full year adjusted operating margins are now expected to be up 225 basis points to 275 basis points. Full year adjusted organic growth remains unchanged at flat to up 2% with expectations for second half organic growth in line with first half performance at the midpoint.

謝謝莫尼什。鑑於今年上半年強勁的營運執行力，我們將全年調整後獲利指引的下限上調 20 美元，至 7 至 7.30 美元，之前為 6.80 至 7.30 美元，目前同比增長 16% 至 21% -同比。目前預計全年調整後營業利益率將上升 225 個基點至 275 個基點。全年調整後有機成長不變，維持持平至成長 2%，預計下半年有機成長與上半年業績中位數一致。

While significant macro uncertainty remains, our business segment and market trends are largely playing out as expected. Year-to-date safety and industrial organic growth is approximately flat versus a full year expectation of flat to up low single digits. We expect that industrial end markets will remain mixed as channel partners and end customers continue to remain cautious on overall demand trends.

儘管宏觀不確定性仍然存在，但我們的業務部門和市場趨勢基本上符合預期。今年迄今的安全和工業有機成長大致持平，而全年預期則持平至低個位數成長。我們預計，由於通路合作夥伴和終端客戶對整體需求趨勢持續保持謹慎態度，工業終端市場將繼續保持混合狀態。

On an adjusted basis, transportation and electronics is up nearly 5% organically in the first half versus a full year expectation of up low single digits. Strength in the first half was due in large part to consumer electronics along with automotive. We continue to monitor auto build rates along with consumer electronics demand trends for the back-to-school and holiday season.

經調整後，交通運輸和電子產品上半年有機成長近 5%，而全年預期為低個位數成長。上半年的強勁表現在很大程度上歸功於消費性電子產品和汽車產業。我們將繼續監控汽車製造率以及返校季和假期消費電子產品的需求趨勢。

And finally consumer is down nearly 3% organically through the first half of the year versus a full year expectation of down low single digits. We continue to expect that consumer retail discretionary spending on hardline goods to remain muted in the balance of the year.

最後，今年上半年消費者支出自然下降了近 3%，而全年預期則下降了低個位數。我們繼續預計，今年餘下時間裡，消費者在強硬商品上的零售可自由支配支出將保持低迷。

Before we'd open up to your questions, I would like to take a moment to recognize and thank Monish for all his contributions and impact on 3M over the past four years. While I've only had a short time working with him, he has been a strong partner and has helped me get up to speed on the company, and I've enjoyed working with him. I appreciate everything he has done to navigate through a number of challenges and to make 3M stronger along the way.

在我們開始回答您的問題之前，我想花一點時間來認可並感謝 Monish 在過去四年中對 3M 所做的所有貢獻和影響。雖然我與他共事的時間很短，但他是一位強而有力的合作夥伴，幫助我加快了公司的發展步伐，我很享受與他一起工作。我感謝他為應對眾多挑戰並讓 3M 一路走強所做的一切。

With that, let's open the call to your questions.

接下來，讓我們開始回答您的問題。

(Operator Instructions) Jeff Sprague, Vertical Research Partners.

（操作員說明）Jeff Sprague，Vertical Research Partners。

Thanks for all the help up unto this point. Hey, Bill, thank you very much for that very thorough and detailed kind of deconstruction of the history on organic growth and the like and I appreciate your comment that it will take some time to kind of get after these things. But are you actioning some of these ideas already? Can you give us a sense of how some of these changes on the front end of the business as it relates to organic growth may be kind of put in action?

感謝到目前為止的所有幫助。嘿，比爾，非常感謝您對有機增長等歷史的非常徹底和詳細的解構，我很欣賞您的評論，即需要一些時間來處理這些事情。但您已經將其中一些想法付諸行動了嗎？您能否讓我們了解一下與有機成長相關的業務前端的一些變化可能如何付諸實施？

So good morning, Jeff, and thanks for the question. So as I mentioned in my remarks, there's two major thrusts here on driving organic growth. One is certainly to spur innovation and driving innovation to turn the top line up, drive organic revenue. And so part of it is, we've got to sort of bottom out on how much we're spending on new product development and start to turn the ship. The first half of this year we launched about 75, 76 new product introductions. This year we'll do probably less than 150. And as I reflect back over the last 8 or 9, 10 years, at one point in time we did over 1000.

早安，傑夫，謝謝你的提問。正如我在發言中提到的，推動有機成長有兩個主要動力。其中之一肯定是刺激創新並推動創新，以提高收入，推動有機收入。因此，部分原因是，我們必須對新產品開發的支出觸底反彈，並開始扭轉局面。今年上半年我們推出了約75,76個新產品。今年我們可能做不到 150 個。

So we've really got to turn that around. It's going to take some time to do that. We continue to invest some of our precious R&D dollars on cost reduction and PFAS exit, stabilizing our supply chain. I made a comment about 80% of our raw materials coming in a source. We've got to qualify other vendors to be able to reduce costs over time. So that's going to take some time.

所以我們真的必須扭轉這個局面。做到這一點需要一些時間。我們繼續將一些寶貴的研發資金投入到降低成本和 PFAS 退出上，以穩定我們的供應鏈。我評論過我們 80% 的原料來自來源。我們必須讓其他供應商獲得資格，以便能夠隨著時間的推移降低成本。所以這需要一些時間。

What I'm really working on as well in R&D is ideas for how we can offload non-value add activities from our researchers. It really comes in two, three themes. One is both efficiency as well as effectiveness. I think there's an opportunity to drive effective capacity of our engineering team. I think we have an opportunity to drive velocity through the new product development pipeline.

我在研發方面真正致力於的是如何擺脫研究人員的非增值活動的想法。它確實有兩個、三個主題。一是既要效率又要效果。我認為這是一個提高我們工程團隊有效能力的機會。我認為我們有機會加快新產品開發流程的速度。

We have an opportunity to think differently and how we govern differently on R&D, where we place our precious dollars so that they can move across the company to the highest ROI investment. So that's what I'm focused on R&D. But again, it's going to take a little bit of time. So we've got to sell more of what we have on the market today. That's simply commercial excellence. I'm digging into a number of different factors.

我們有機會以不同的方式思考，以及如何以不同的方式管理研發，我們將寶貴的資金投入其中，以便它們可以在整個公司進行最高投資回報率的投資。這就是我關注研發的重點。但同樣，這需要一點時間。因此，我們必須在今天的市場上銷售更多產品。這就是商業上的卓越表現。我正在深入研究許多不同的因素。

We've got a sales force today it's just over 5000 people. We know over the last four or five years it's down about 25%. That's partly because of the export model we've moved to. But we have an opportunity to take a look at our coverage, our incentives, our training around our sales force. I think there are some opportunities there. We distribute to almost 30,000 distributors. I think we have opportunities there. There are probably some opportunities in pricing at a high level.

今天我們的銷售隊伍只有 5000 多人。我們知道在過去四、五年下降了約 25%。這部分是因為我們轉向了出口模式。但我們有機會審視我們的覆蓋範圍、激勵措施以及圍繞銷售人員的培訓。我認為那裡有一些機會。我們向近 30,000 家經銷商分銷。我認為我們在那裡有機會。高位定價可能存在一些機會。

We've done a very good job at the covering inflation and we'll see some incrementally positive pricing this year. But when you get down to a granular level there's some disconnects between pricing and discounts and margins to the volume or size of the customer and we have an opportunity to take a harder look at that. We're looking very hard at advertising and merchandising. It's a lever that's important in our consumer business.

我們在應對通膨方面做得非常好，今年我們將看到一些積極的定價。但當你深入到更細粒度的層面時，定價、折扣和利潤與客戶數量或規模之間存在一些脫節，我們有機會更仔細地審視這一點。我們正在非常努力地尋找廣告和行銷。這是我們消費者業務中非常重要的槓桿。

We were down quite substantially from where we were before relative to consumer packaged goods type companies, we're down. So we have an opportunity to think differently and very tactically around advertising and merchandising. I think lastly we're looking at cross selling. There are certain examples, certain places where we sell products into a distributor or into a customer, but those customers, they should be buying a different product from us, but they don't.

相對於消費品類型的公司，我們的業績較之前大幅下滑，我們已經下滑了。因此，我們有機會圍繞廣告和行銷進行不同的、非常戰術性的思考。我想最後我們正在考慮交叉銷售。有一些例子，在某些地方，我們將產品出售給經銷商或客戶，但這些客戶應該購買與我們不同的產品，但他們沒有。

For example, for customers that do surface by surface conditioning products to polish metals and woods, you always use a respirator to do that. You want to look at our customers. There's a bunch that don't buy the respirators from us, so there's an opportunity there.

例如，對於使用表面處理產品進行表面處理以拋光金屬和木材的客戶，您總是使用呼吸器來執行此操作。您想看看我們的客戶。有很多人不會從我們這裡購買呼吸器，所以這是一個機會。

All of those things are levers that we're going to be pulling here in the short-term, Jeff, and we'll keep updating analysts and investors as we learn more about how do we really drive the top line, which is so crucial to driving value creation at 3M.

傑夫，所有這些都是我們在短期內要使用的槓桿，隨著我們更多地了解如何真正推動營收，我們將不斷向分析師和投資者通報最新情況，這一點非常重要推動3M 的價值創造。

Great, thanks for that and maybe just one other quick one. Well, maybe it's not a quick one. I appreciate the detailed answers. On kind of the operational excellence side of the equation and a lot of these KPIs that you're speaking to on delivery quality and the like, does this require sort of a heavy lift on restructuring? The company's gone through a lot of restructuring recently, including just coming to the end of a big program or do you kind of view these as just more kind of process improvements and things of that nature?

太好了，謝謝你，也許還有另一個快速的。好吧，也許這不是那麼快的事。我很欣賞詳細的答案。在卓越營運方面以及您談到的交付品質等許多關鍵績效指標方面，這是否需要大力進行重組？該公司最近經歷了很多重組，包括剛結束一個大型項目，還是您認為這些只是更多的流程改進和類似性質的事情？

So you're right. We've been through and are actually getting through a very substantial restructuring program, we're about 75% complete. It will drag into 2025. I think the team is executing very well on that. A lot of the things I'm talking about in terms of improving OpEx, they're incremental pay-as-you-go type of opportunities. You almost get the savings as you're covering investment. There are potentially over time some bigger bites.

所以你是對的。我們已經完成並且實際上正在完成一項非常重大的重組計劃，大約已完成 75%。它將拖到 2025 年。我在改善營運支出方面談論的很多事情都是增量即用即付類型的機會。當您進行投資時，您幾乎可以獲得節省。隨著時間的推移，可能會出現更大的咬傷。

If you think about the complexity of our broader network, a few years out there could be additional restructuring, but can't size it today. Right now, the opportunities that I'm seeing are almost pay-as-you-go. Reducing waste and inefficiency in factories are things you can do and just execute against without substantial charges to get there.

如果您考慮我們更廣泛網路的複雜性，幾年後可能會進行額外的重組，但今天無法確定其規模。現在，我看到的機會幾乎都是現收現付的。減少工廠的浪費和低效率是您可以做的事情，只需執行即可，無需支付大量費用即可實現。

Nigel Coe, Wolfe Research.

奈傑爾·科，沃爾夫研究中心。

So I think you might well have answered my question, but I do want to just kind of ask about the plants and the distributions at the footprint. I think you mentioned 105 plants and 95 DCs -- 110 plants and 95 DCs. So are we talking here about, over time, a significant shrinkage in that footprint, or is it more a reconfiguration to reduce the complexity of the product velocity around that network?

所以我想你可能已經回答了我的問題，但我確實想問一下工廠和占地面積的分佈。我想你提到了 105 個植物和 95 個 DC——110 個植物和 95 個 DC。那麼，我們在這裡談論的是，隨著時間的推移，該足跡的顯著縮小，或者更多的是重新配置以降低該網路周圍產品速度的複雜性？

And then thinking about the opportunities around sort of investing to drive growth versus efficiency, how should we think about margins beyond '24? Are you confident we can still grow margins beyond '24, even though it sounds like you're going to be investing?

然後考慮圍繞推動成長與效率的投資機會，我們應該如何考慮 24 年後的利潤率？儘管聽起來您要進行投資，您是否有信心我們在 24 年後仍能提高利潤？

Okay, so a couple of good questions, and I'll try to hit on them pretty quickly. You're right, 110 factories, 95 distribution centers. The fact is, if you go back in time, the team here has actually been reducing the number of factories, the number of DCs in our network, and there's some inflight in the restructuring program we have today.

好的，這是幾個很好的問題，我會盡快回答它們。你是對的，110 個工廠，95 個配送中心。事實是，如果你回到過去，這裡的團隊實際上一直在減少工廠的數量、我們網路中的配送中心的數量，並且我們今天的重組計劃正在進行中。

Looking forward, we don't think we necessarily need 110. I can't decide what it exactly is and when that cadence might happen, but we're taking a hard look at it. But it's not just factories, it's also cells within factories. When you look at what we have in assets and cells within these factors, we have 250 coating assets that are spread almost through half of our factories. And you have to sit back and ask, as we drive operating equipment efficiency, do we really need all those assets in all those factories, or do we have an opportunity to increase effective capacity.

展望未來，我們認為我們不一定需要 110。但這不只是工廠，還有工廠內的細胞。當你看到我們在這些因素中擁有的資產和單元時，你會發現我們擁有 250 項塗料資產，幾乎分佈在我們一半的工廠中。您必須坐下來問，當我們提高營運設備效率時，我們是否真的需要所有這些工廠中的所有資產，或者我們是否有機會提高有效產能。

So these are things that we're working on. Peter Gibbons and then team are doing a great job at this. This is going to happen over time. I can't really size how many factors of the restructuring that's required to get there. Relative to margins, the team has done an outstanding job. You can see in the first half of this year, up almost 500 basis points. So the margins have come up quite substantially.

這些都是我們正在努力的事情。 Peter Gibbons 和他的團隊在這方面做得非常出色。隨著時間的推移，這種情況將會發生。我無法真正估算出實現這一目標需要多少重組因素。相對於利潤率，該團隊做得非常出色。你可以看到今年上半年上漲了近500個基點。因此，利潤率大幅上升。

We've got more we can do here in terms of just basic blocking and tackling productivity. Volume clearly -- as it comes back, volume clearly is going to be a high leverage ratio for us. So where they can go from here, I can't size it today. Certainly, as we get to the balance of the year into '25, we'll give you some more outlook on that. But there's lots of levers here, including driving organic volume.

在基本的阻止和解決生產力方面，我們可以在這裡做更多的事情。交易量明顯——當它回來時，交易量顯然將成為我們的高槓桿率。所以他們可以從這裡走向何方，我今天無法確定它的大小。當然，當我們進入 25 年的剩餘時間時，我們將為您提供更多對此的展望。但這裡有很多槓桿，包括推動有機銷售。

Great. Thanks Bill, that's great color. And then Monish a quick follow-up on the insurance recovery. That's obviously great news on the Combat Arms recovery. Can you just disclose how many carriers are you negotiating with on Combat Arms? And maybe just bring us up to speed in terms of what's the opportunity within the water settlement?

偉大的。謝謝比爾，那顏色真棒。然後莫尼什對保險賠償進行了快速跟進。這對戰鬥武器的恢復來說顯然是個好消息。您能透露一下您正在與多少​​家航空母艦進行戰鬥武器談判嗎？也許只是讓我們了解水解決方案中的機會是什麼？

Yeah, so Nigel, as you know, there's a tower insurance here, so we are dealing with multiple insurance providers. We were pleased with what Kevin Rhodes and the legal team have done on getting the 120 this quarter. And as I've mentioned in my prepared remarks that we believe that there is more to be had here and we'll definitely keep you all informed as these things happen.

是的，奈傑爾，如你所知，這裡有塔樓保險，所以我們正在與多家保險公司打交道。我們對 Kevin Rhodes 和法律團隊在本季度獲得 120 分的成績感到滿意。正如我在準備好的發言中提到的，我們相信這裡還有更多的事情要做，我們一定會在這些事情發生時隨時向大家通報情況。

Scott Davis, Melius Research.

斯科特·戴維斯，Melius 研究公司。

I don't want to read too much into this, but is it your view that 3M is just too diversified and needs to kind of narrow down even a little bit more than what we've already seen with the Solventum spin?

我不想對此進行過多解讀，但您是否認為 3M 過於多元化，需要縮小範圍，甚至比我們在 Solventum 業務中看到的範圍還要縮小一點？

Well, I'm not sure I would say that today, Scott. In fact, as I think about it, it's a big business, a complicated business, a lot of different end markets, different business segments, different ways of going to market. A lot of the stuff that we make goes across all of these factories. So there's a lot of interconnection across the business. But as I've done in my past, I'll do the same thing here, which is take a fresh, hard look at what businesses that we're in.

好吧，我不確定今天我會這麼說，斯科特。事實上，正如我所想，這是一門大生意，一項複雜的業務，有許多不同的終端市場、不同的業務領域、不同的進入市場的方式。我們生產的許多產品都經過所有這些工廠。因此，整個企業之間存在著許多互連。但正如我過去所做的那樣，我也會在這裡做同樣的事情，那就是重新審視我們所從事的業務。

And as Mike said in my prepared remarks, dispassionately do that. Really look hard at what is better owned by us and we'll make some determinations over time on that. At the same time as we think about the kind of business that we want to be in over time, are there assets that aren't owned by 3M that are better owned here? And we'll take a hard look at that piece there as well.

正如麥克在我準備好的發言中所說，冷靜地這樣做。認真審視我們擁有的更好的東西，我們將隨著時間的推移做出一些決定。在我們考慮隨著時間的推移我們希望從事哪種業務的同時，是否有 3M 不擁有的資產最好在這裡擁有？我們也會仔細研究那篇文章。

So I wouldn't draw any specific conclusion from my remarks other than we're going to take a hard look at it. And if we determine that something is better owned elsewhere, then we'll move forward in that. It's all about value creation for owners.

因此，除了我們將仔細研究之外，我不會從我的言論中得出任何具體結論。如果我們確定其他地方擁有更好的東西，那麼我們就會在這方面向前邁進。這一切都是為了為業主創造價值。

Fair enough. And I guess when I looked at your list of priorities, operational excellence, all these things are kind of basic. I don't want to minimize, but this is, it almost feels like you're walking into a situation where a lot of things weren't done right. And I don't want to point fingers, but just point being is, what was the fail? Was it just compensation and kind of where people's priorities were placed and you need to change a compensation plan? Was it just that a lot of these things like lean manufacturing were just not seated or seated early enough? I'm just trying to get my arms around.

很公平。我想當我查看您的優先事項清單時，卓越運營，所有這些都是基本的。我不想最小化，但這就是，感覺就像你正在走進一個很多事情都沒有做好的情況。我不想指責，只是想指出的是，失敗是什麼？這只是補償，還是人們優先考慮的事情，你需要改變補償計畫嗎？難道只是因為像精實製造這樣的許多事情沒有到位或到位得不夠早嗎？我只是想伸出雙臂。

I have followed 3M for a long time and we've had a number of different CEOs who have come in and had kind of a similar tick list that we want to fix this, this and this, but have struggled to kind of get there. And I'm trying to just get my arms around, what do you think was the main fail that kind of led us to where we are today?

我關注 3M 很長一段時間了，我們有很多不同的首席執行官，他們進來後都有一個類似的清單，我們想要解決這個、這個和這個，但一直在努力實現這一目標。我想試著談談，你認為導致我們走到今天這一步的主要失敗是什麼？

And is there kind of one main thing that you can kind of tick the box first and work on kind of through the list? I know that's a little bit of a tough question, and again I'm not trying to point fingers, just saying that it's a pretty heavy lift. I think some of these things, a lot of people try pretty hard to fix, thanks.

有沒有一件主要的事情是你可以先勾選方框並通過列表進行處理的？我知道這是一個有點棘手的問題，而且我並不是想指責，只是說這是一個相當沉重的負擔。我認為其中一些問題很多人都在努力解決，謝謝。

Look, I'll just say it's not about fail or success or right or wrong. I come in with a different set of experiences, different background, fresh look at the way we do business from the things that I've done in the past. I think the team here has done a marvelous job in managing through a lot of complex situations. I was a CEO of a company through COVID, and what we dealt with is well short of the challenges that 3M has faced, and you bring on top of that, a lot of the liabilities that Mike and the team have managed through, the structural changes. There's been an enormous transformation effort.

聽著，我只想說這與失敗或成功或對或錯無關。我帶著不同的經驗、不同的背景，對我們做生意的方式與我過去所做的事情有了新的體會。我認為這裡的團隊在處理許多複雜情況方面做得非常出色。我在新冠疫情期間擔任一家公司的首席執行官，我們所面臨的挑戰遠沒有達到 3M 所面臨的挑戰，除此之外，麥克和團隊已經克服了許多負債，結構性的變化。我們付出了巨大的轉型努力。

And as I said, they launched the restructuring program. We're 75% complete. It's gone very, very well and you can see that in the margins. That's gone very well. I come in, I just look at it the way it is today with sort of looking at the cold hard facts, and it's a back to basics focus on the fundamentals approach does sound quote unquote, basic, but at the end of the day, I do think that there's a lot of value that can be created from the raw materials that we have here.

正如我所說，他們啟動了重組計劃。我們已完成 75%。它進展得非常非常好，你可以在頁邊空白處看到這一點。一切進展順利。我進來，我只是以今天的方式看待它，看看冷酷的事實，這是一種回歸基礎，專注於基本原理的方法，聽起來確實很基本，但最終，我確實認為我們在這裡擁有的原材料可以創造很多價值。

Just focusing on just how do you turn the business to top-line growth through the things that I've talked about, commercial excellence, driving growth from R&D, and driving a real culture of operational excellence through the company, and move at these things with speed and with urgency. I've been in situations like this before. It's easy to fall into a trap of this is the way things have been done.

只需專注於如何透過我所討論的事情將業務轉變為營收成長，商業卓越，透過研發推動成長，並透過公司推動真正的卓越營運文化，並在這些事情上採取行動速度和緊迫性。我以前也遇過這樣的情況。人們很容易陷入這種做事方式的陷阱。

And as I said in my remarks, I'm encouraging people to challenge the way we've done things in the past every single day. That's what continuous improvement is really all about, and that's what I'm encouraging people to do. So I'm looking from here forward and I see a great opportunity for value creation.

正如我在演講中所說，我鼓勵人們挑戰我們過去每天做事的方式。這就是持續改善的真正意義，也是我鼓勵人們這樣做的事情。因此，我展望未來，看到了創造價值的絕佳機會。

Julian Mitchell, Barclays.

朱利安米切爾，巴克萊銀行。

Thanks very much. Welcome to Bill and Monish, thanks for all the help down the years. May be just the first question around the reinvestment point and organic growth. So Bill it sounds as if you can reinvest sufficiently in the business in the medium term to get growth moving, but still see reasonable margin expansion. I just wanted to confirm that that is what you're saying.

非常感謝。歡迎來到比爾和莫尼什，感謝多年來的所有幫助。可能只是關於再投資點和有機成長的第一個問題。因此，比爾聽起來似乎你可以在中期對業務進行充分的再投資，以推動成長，但仍能看到合理的利潤率擴張。我只是想確認這就是你所說的。

And then on that growth rate point, I wondered sort of what your initial thoughts were on the growth entitlement for 3M. Maybe what you think it's addressable. Markets are growing at, how you view the growth rate of its aggregate peer set. Just the context I suppose is 3M has grown around 1% to 2% the last five to 10 years ex-Solventum. I wondered what you thought the market growth rate was versus that?

然後，關於成長率點，我想知道您對 3M 成長權利的最初想法是什麼。也許你認為它是可以解決的。市場的成長取決於您如何看待其整體同業的成長率。我認為，在過去 5 到 10 年中，除去 Solventum，3M 的成長率約為 1% 到 2%。我想知道您認為市場成長率與此相比如何？

So a couple of good questions. I mean first, we do expect that we have some capacity in the back half to incrementally invest in the business. I think Monish and Mike have talked about this in our guidance model. We still see some opportunities to incrementally invest.

這是幾個好問題。我的意思是，首先，我們確實希望下半年有一定的能力逐步投資業務。我認為莫尼什和麥克已經在我們的指導模型中討論過這一點。我們仍然看到一些增量投資的機會。

We'll talk more about where that might be in the back half. But we always said with the savings that we're generating from restructuring, some of that savings would be reinvested back in the business. That's been the case so far and we see some additional opportunities in the back half of the year.

我們將更多地討論後半部分的位置。但我們總是說，透過重組產生的節省，其中一些節省將被重新投資回業務。到目前為止的情況就是這樣，我們在今年下半年看到了一些額外的機會。

My comments around sales force, my comments around advertising, merchandising, at least a couple of different items. I can't say much about R&D today. I want to look harder at how do we free up capacity of the investment we make already today, and can that be more streamlined and redeployed effectively on top line growth? And that's really a big focus of mine.

我對銷售人員的評論，我對廣告、推銷的評論，至少有幾個不同的項目。今天我不能對研發說太多。我想更仔細地研究我們如何釋放我們今天已經進行的投資的能力，以及是否可以更精簡並有效地重新部署以促進收入成長？這確實是我關注的重點。

In terms of entitlement growth, certainly we should be growing better than we have and we were guiding 0% to 2% midpoint of 1%. We know there's 1% headwind because of exiting certain geographies and parts of our portfolio, but still on an adjusted basis, 1% to 3% organic. It probably should be a bit more than that. GDP is in the 2.5% range. IPI we think this year is around 1.7%, 1.8% or thereabouts.

就權利成長而言，我們的成長當然應該比現在更好，我們指導的是 0% 到 2% 的中間值 1%。我們知道，由於退出某些地區和部分投資組合，存在 1% 的阻力，但仍在調整後，有機阻力為 1% 至 3%。可能應該比這個多一點。 GDP在2.5%的範圍內。我們認為今年的 IPI 約為 1.7%、1.8% 左右。

We should be growing at least at the level of the economy, if not perhaps slightly better. But more comments as we get towards the back end of the year and into 2025, give you some longer term outlook for where the company might go.

我們至少應該在經濟水平上實現成長，即使不是更好。但隨著我們接近年底和 2025 年，更多評論將為您提供有關公司未來發展方向的一些長期展望。

That's helpful. Thank you. And then just may be toggling back to the short-term as a lot has been asked about the medium term, if we're just thinking about the sort of framework for the second half guidance, I think it's implying an operating margin in the second half of maybe 21% or so. A little bit better perhaps, and that's fairly flattish year-on-year and half-on-half.

這很有幫助。謝謝。然後可能會回到短期，因為很多人都在問中期，如果我們只是考慮下半年指導的框架，我認為這意味著下半年的營業利潤率大約21%左右的一半。也許會好一點，但與去年同期相比和與去年同期相比相當持平。

I just wondered if I had that right, because it looks like restructuring charges are shrinking year-on-year and half-and-half and the top-line is pretty steady. So I just wondered if that was the correct assumption and any drivers behind that? And if there was any preliminary thoughts on sort of third versus fourth quarter dynamics here?

我只是想知道我的說法是否正確，因為看起來重組費用比去年同期減少了一半，但收入卻相當穩定。所以我只是想知道這是否是正確的假設以及背後的驅動因素？對於第三季與第四季的動態是否有任何初步想法？

So yes, let me offer a couple of comments here and I'll ask Monish to maybe fill in a little bit of the blanks on the quarterly progression. But you're right in terms of the cadence here. We do expect revenue to be very similar in the second half to the first half, and that does reflect historical trends.

所以，是的，讓我在這裡提出一些評論，我會請莫尼什填補季度進度的一些空白。但就節奏而言，你是對的。我們確實預期下半年的收入與上半年非常相似，這確實反映了歷史趨勢。

We continue to see strong operational execution and spending discipline just like we saw in the first half. We'll see some tailwinds from the benefit of lower restructuring cost, which is now 60/40 first half, second half. Last time it was 70/30. So some has shifted to the back half, but you do see a bit of a step down. And we do see reimbursement of transition services agreement with Solventum, which began in April.

正如我們在上半年看到的那樣，我們繼續看到強勁的營運執行力和支出紀律。我們將看到重組成本降低的好處，目前上半年和下半年重組成本為 60/40。上次是 70/30。所以有些人已經轉移到了後半部分，但你確實看到了一些下降。我們確實看到了與 Solventum 於 4 月開始的過渡服務協議的報銷。

But at the same time we have higher wages in the back half of the year. We have two full quarters with a wage increase. Our wages went out on April 1, so not in first quarter but in the second, so that's a bit of headwind. That's offset by some lower stock comp. As you know, we made our grants here in the second quarter. We do see some headwinds in our factories.

但同時，下半年我們的薪水會更高。我們還有兩個完整季度的薪資上漲。我們的薪水是在 4 月 1 日發放的，所以不是第一季而是第二季度，所以這有點不利。這被一些較低的庫存補償所抵消。如您所知，我們在第二季度在這裡提供了贈款。我們的工廠確實遇到了一些阻力。

We built inventory through the second quarter that caused some positive absorption. We'll see inventory coming down in the back half of the year. That's going to cause some negative absorption or some headwinds there and then some higher non-operating expenses driven by pension and higher interest costs. We had a lot of cash balance here in the second quarter. Cash went out the door in July for some legal payments, legal settlements. So our interest costs, interest expense is going to go up. Our interest income will come down in the back half of the year.

我們在第二季度建立了庫存，這引起了一些積極的吸收。我們將在今年下半年看到庫存下降。這將導致一些負面吸收或一些阻力，然後由退休金和更高的利息成本驅動的一些更高的非營運支出。第二季我們有大量現金餘額。 7月份，現金被用於一些法律付款、法律和解。所以我們的利息成本、利息支出將會上升。下半年我們的利息收入會下降。

And then of course, as I mentioned before, we do see some step up in some investments we have in the back half of the year. So those are the biggest drivers. A little bit of tax geography, but those are the biggest drivers. Maybe I'll ask Monish to comment on Q3, Q4 cadence.

當然，正如我之前提到的，我們確實看到今年下半年的一些投資增加。所以這些都是最大的驅動因素。一點點稅收地理因素，但這些是最大的驅動因素。也許我會請 Monish 對第三季、第四季的節奏發表評論。

Sure. And just Julian, to add on to Bill's points on first half, second half, just data points. We spent $165 million in the first half on restructuring, and at the midpoint that would be another $110 million in the second half. So the tax rate will be around 19% in the second half versus 20% in the first half.

當然。只有朱利安，加上比爾在上半場和下半場的得分，只是數據點。上半年我們在重組上花了 1.65 億美元，下半年將再花費 1.1 億美元。因此，下半年稅率將在 19% 左右，而上半年則為 20%。

If you now go to just the guidance between 2Q, 3Q or 3Q, 4Q, 3Q revenue trends will be very similar to what we saw in 2Q. I think Bill already talked about what it looks like in the market, so that's where the team is seeing right now. I would say continued strong operational execution and spending in 3Q also. You will get a tailwind from the timing of stock comp, which we announced in 2Q, approximately 100 of it that comes back as a tailwind in Q3.

如果你現在只看第二季、第三季或第三季之間的指導，第四季、第三季的營收趨勢將與我們在第二季看到的非常相似。我認為比爾已經談到了市場的情況，所以這就是團隊現在所看到的。我想說，第三季的營運執行和支出也持續強勁。您將從股票補償的時機中獲得順風，我們在第二季度宣布了這一消息，其中大約 100 個股票將在第三季度作為順風回歸。

But at the same time, as Solventum matures in its ability to execute independently, we also believe that they will keep exiting their TSAs. As I've told you, the TSAs, some are short-term, some are as long as two years. That could go up to three years. We will see lower fees as Solventum begins to exit. And that's an impact of approximately $0.09 from a headwind on an EPS perspective, which is overall still in the range 2Q was heavier than 3Q and 4Q. Bill talked about the seasonal impact in our factories as we bleed down inventory in Q3.

但同時，隨著 Solventum 獨立執行能力的成熟，我們也相信他們將繼續退出 TSA。正如我告訴你的，TSA 有些是短期的，有些則長達兩年。這可能長達三年。隨著 Solventum 開始退出，我們將看到費用降低。從每股收益的角度來看，這大約是 0.09 美元的逆風影響，總體上仍處於第二季度比第三季和第四季更重的範圍內。比爾談到了我們工廠在第三季減少庫存時受到的季節性影響。

Restructuring costs based on what the team sees right now is flat Q2 to Q3. So the balance will go into Q4 as we talked about. And then you will see -- we talked about $0.11 EPS impact for the second half on Combat Arms and PWS.

根據團隊目前的情況，重組成本在第二季到第三季持平。因此，正如我們所說，餘額將進入第四季度。然後您會看到 - 我們討論了下半年對 Combat Arms 和 PWS 每股收益 0.11 美元的影響。

As you know, we have made payments. By the end of July we would have made $3.7 billion of payments under our agreements under the settlements under Combat Arms and PWS, which means you have a lower cash balance in Q3, and that impacts us $0.06 of EPS. So between pension and interest costs, that's a headwind Q2 to Q3.

如您所知，我們已經付款。到 7 月底，我們將根據 Combat Arms 和 PWS 的和解協議支付 37 億美元，這意味著第三季的現金餘額較低，這會影響每股收益 0.06 美元。因此，在退休金和利息成本之間，這是第二季到第三季的不利因素。

The team continues to believe that they can step up to drive long-term growth, to step up investments. And then tax rate for the third quarter will be in the range of 20% to 21%. And the fourth quarter is, the whole year is, I mean, the second half is 19%. So you can back into the fourth quarter, which would be lower. Hopefully, this is helpful to get your models right.

團隊仍然相信他們可以加緊推動長期成長並加大投資。第三季的稅率將在20%至21%之間。第四季度，全年，我的意思是，下半年是 19%。所以你可以回到第四季度，這會更低。希望這有助於讓您的模型正確。

Steven Tusa, JPMorgan.

史蒂文·圖薩，摩根大通。

Hi, good morning and Monish, thanks for all the help. It wasn't always easy for you guys, but really I appreciate you being front and center with the details and always doing your best to give us visibility of things, so we really appreciate the help there.

嗨，早上好，莫尼什，感謝您的所有幫助。這對你們來說並不總是那麼容易，但我真的很感謝你們在細節上的表現，並始終盡最大努力讓我們了解事情的情況，所以我們非常感謝你們的幫助。

Thank you, Steve.

謝謝你，史蒂夫。

And Bill. My first question is, will you get any summer vacation at some point? Because it sounds like, I'm not sure I've ever seen a new CEO in the first three months be shot out of a cannon like this and have this kind of detail. You're usually supposed to wait for about a year so you can reset and get the options before you give the long-term target. So we really appreciate the detail here. It sounds like you've been busy.

還有比爾。我的第一個問題是，你會在某個時候放暑假嗎？因為聽起來，我不確定我是否見過一位新任執行長在前三個月內像這樣從大砲中被射出，並有這樣的細節。你通常應該等待大約一年，這樣你就可以在給出長期目標之前重置並獲得選擇。所以我們非常欣賞這裡的細節。聽起來你很忙。

Just the elephant in the room, though. You talked a lot about capital allocation and I think the narrative obviously around PFAS is that there's negative optionality from the balance sheet, if you will, but that it's a drag. You're talking about being a little bit more on your front foot from that perspective. And the only place PFAS is mentioned is in the slide 2, which is in the legal disclaimers. You didn't talk about it really at all in the slides. What's your take there? And do you have any perhaps pivot and strategy around PFAS in that liability?

不過，這只是房間裡的大象。您談了很多關於資本配置的問題，我認為圍繞 PFAS 的敘述顯然是資產負債表中存在負面選擇性（如果您願意的話），但這是一種拖累。從這個角度來看，你正在談論要更加積極主動。唯一提到 PFAS 的地方是幻燈片 2，即法律免責聲明。您在幻燈片中根本沒有真正談論它。你對此有何看法？在該責任方面，您是否有任何圍繞 PFAS 的支點和策略？

Well, thanks for the question. Look, first of all, we've got a great team of advisors, legal inside and outside that are managing PFAS and other liabilities. When I step back and look at just where we've been, the Public Water Supply settlement was a great step, important first step, really in managing some of the risks. But there's more to be done.

嗯，謝謝你的提問。首先，我們擁有一支優秀的顧問團隊，包括內部和外部的法律顧問，負責管理 PFAS 和其他負債。當我退後一步看看我們已經取得的進展時，公共供水解決方案是一個偉大的一步，是重要的第一步，確實在管理一些風險方面。但還有更多工作要做。

We're continuing to manage litigation from some of the opt outs, other cases within the MDL, there's Europe that's sort of hanging out there. We continue to control in that area. We've got very exhaustive disclosures in the Q and the K. And again, we have a great team that are really focused on managing that.

我們正在繼續管理一些選擇退出的訴訟，以及 MDL 內的其他案件，歐洲也有類似的情況。我們繼續控制該地區。我們在 Q 和 K 中進行了非常詳盡的披露。

Where I think I'm best putting my time are the things that drive value creation for our owners and that's driving the top-line and driving operational excellence in the business. We do generate great cash flow. We see it in the quarter. We saw the first half, 90% to 110% free cash flow conversion for the year. I've got ideas on how we can drive that further over time. We're at 0.3 leverage ratio.

我認為我最好把時間花在那些能夠為我們的所有者創造價值、推動營收和卓越營運的事情上。我們確實產生了大量的現金流。我們在本季看到了這一點。我們看到上半年，全年自由現金流轉換率為 90% 至 110%。我對如何隨著時間的推移進一步推動這一目標有一些想法。我們的槓桿率為 0.3。

So when I step back, I think we actually have a very strong balance sheet. We can manage appropriately the risks that we see in front of us. And even through that, we have options here to do things with our balance sheet. So, I'm focusing on the things we can control and really getting the team pivoted back to what do we do to drive growth and operational excellence.

因此，當我退後一步時，我認為我們實際上擁有非常強大的資產負債表。我們可以適當地管理我們面前的風險。即使這樣，我們仍然可以選擇對我們的資產負債表進行處理。因此，我專注於我們可以控制的事情，並真正讓團隊重新轉向我們如何推動成長和卓越營運。

What do you think the market is missing in its pretty harsh and negative narrative around this PFAS overhang from what you've heard?

您認為市場在圍繞 PFAS 過剩的相當嚴厲和負面的敘述中遺漏了什麼？

I can't really comment on what the market may or may not be missing on that, Steve. What I'm focusing on the things that we control. I read the Q very, very thoroughly, like all of our investors do. It takes a long time to get through it. I think we've done it. We do a great job at the disclosure there. But again, we've got a great team that's managing this. It's a dynamic situation and I trust what they're doing. I'm involved in that.

史蒂夫，我無法真正評論市場可能會或可能不會錯過什麼。我關注的是我們控制的事情。我非常非常徹底地閱讀了問題，就像我們所有的投資者一樣。需要很長時間才能撐過去。我想我們已經做到了。我們在披露方面做得很好。但同樣，我們有一支優秀的團隊來管理這個問題。這是一個動態的情況，我相信他們正在做的事情。我參與其中。

Mike has been very helpful. He has a lot of expertise in this area because of the time he had to spend on it. I'm relying on him here as well. And again, I think where my time is best placed is what do we do to drive the other 64,000 of the 65,000 employees? What are they going to do to drive value creation? We've got a lot of people focused on PFAS. We have to get people focused back on the core things and what makes 3M great.

麥克非常有幫助。由於他必須在這方面花費大量時間，因此他在該領域擁有豐富的專業知識。我在這裡也很依賴他。再說一次，我認為我的時間最好用在我們如何推動 65,000 名員工中的其他 64,000 名員工身上？他們將採取什麼措施來推動價值創造？我們有很多人關注 PFAS。我們必須讓人們重新關注核心事務以及 3M 的偉大之處。

Right. It's good to know you're reading the Q some time in your travels to sit back with a nice scotch and read the Q. Thanks a lot. Good luck and looking forward to connecting.

正確的。很高興知道您在旅行中的某個時候正在閱讀問題，坐下來喝一杯美味的蘇格蘭威士忌並閱讀問題。祝您好運並期待連接。

Likewise.

同樣地。

Andrew Obin, Bank of America.

安德魯‧奧賓，美國銀行。

Monish, thank you for all the help over the years. It's been a pleasure.

莫尼什，感謝您多年來的所有幫助。這是我的榮幸。

Thank you, Andrew.

謝謝你，安德魯。

Just a question on, just followup on capital allocation. It seems that with a lot more visibility on PFAS sort of operational focus, the market is clearly reacting to the message very positively. What are the thoughts about maybe front loading share buyback, particularly as you release working capital? Like, Improving on time delivery.

只是一個問題，只是資本配置的後續行動。隨著 PFAS 營運重點的知名度提高，市場顯然對這一訊息做出了非常積極的反應。對於可能提前進行股票回購的想法是什麼，特別是當您釋放營運資金時？比如，提高準時交貨率。

What is -- and I know you sort of highlighted buyback as one of the key opportunities, but in transformational stories like this, buying stock at the bottom tends to pay off longer-term. What's your view and the view of the Board on buybacks? Thank you.

我知道你強調回購是關鍵機會之一，但在這樣的轉型故事中，在底部購買股票往往會帶來長期回報。您和董事會對回購有何看法？謝謝。

Well, thank you. You're right. I was very purposeful in the four top priorities for capital deployment and number four was around excess cash for repos, or M&A. There's just not M&A on the horizon. So you saw a step into the market in the second quarter. That was under Mike and Monish's leadership, $400 million worth of buyback. We do have capacity. Our balance sheet looks very strong.

嗯，謝謝。你說得對。我在資本部署的四個首要優先事項上非常有目的，第四個是關於用於回購或併購的多餘現金。只是不會出現併購。所以你在第二季看到了進入市場的一步。這是在麥克和莫尼什的領導下進行的價值 4 億美元的回購。我們確實有能力。我們的資產負債表看起來非常強勁。

We have an open authorization with our Board that's close to $4 billion. We keep evaluating this as we sort of manage the risks that happen to be out there, our ability to generate cash, drive down working capital in the back half. And through all those levers, we'll look hard as to what we do with excess cash in the back half as well as into next year. Nothing more to say about that today.

我們獲得了董事會的公開授權，金額接近 40 億美元。我們不斷評估這一點，因為我們在管理發生的風險、我們產生現金的能力、降低後半段的營運資金。透過所有這些槓桿，我們將認真研究下半年以及明年如何處理多餘的現金。今天對此沒什麼好說的。

Sure. And, historically 3M has been one of the companies that investors would buy, towards the bottom, towards the economic bottom as things reaccelerate. I guess, two-part question. First, do you think 3M still has this cyclical leverage? Because you talked about your product introduction being down quite a bit, but generally do you think this fundamental quality of the business to really reaccelerate into improving industrial and maybe one day consumer fundamentals is still there?

當然。而且，從歷史上看，隨著經濟情勢重新加速，3M 一直是投資者在經濟觸底時會買入的公司之一。我想，這個問題分成兩個部分。首先，您認為3M還有這個週期性槓桿嗎？因為你談到你的產品介紹下降了很多，但總的來說，你認為這種業務的基本品質真正重新加速改善工業，也許有一天消費者基本面仍然存在嗎？

And B, second question is, how far away do you think we are from sort of industrial bottom? Because it just seems like there is no end. We just can, PMIs can find a bottom if, you know, if you could just sort of provide us with your view even when there is any visibility on things bottoming out. I know a long question, but I appreciate your answer.

B，第二個問題是，您認為我們距離工業底部還有多遠？因為它似乎沒有盡頭。我們可以，PMI 可以找到底部，如果你知道，如果你能向我們提供你的觀點，即使事情已經觸底。我知道一個很長的問題，但我很欣賞你的回答。

No. Good question. I mean, I do think, I do hope that we're bouncing along the bottom. It all depends on what happens here in the back half in the US certainly and what the Fed does with interest rates and what's going on with inflation. There are a lot of geopolitical questions around the world. So I'm optimistic that the market is going to start to recover. But again, I don't have a crystal ball, like nobody on the call really does.

不，好問題。我的意思是，我確實認為，我確實希望我們能夠沿著底部反彈。這完全取決於美國下半年發生的情況，以及聯準會在利率方面的舉措以及通貨膨脹的情況。世界各地存在著許多地緣政治問題。因此，我對市場將開始復甦持樂觀態度。但同樣，我沒有水晶球，就像電話會議中的任何人都沒有水晶球一樣。

So at the end of the day, I step back and I look at what do we do with the assets that we have. And I think about the long history that 3M has in core innovation, new to the world ideas. And I think as we reground ourselves back on that long-term mission, that culture, that spirit of innovation and we reignite that across the thousands of employees in this company that drive it every single day. To me, that's what I'm focused on. That's what I can control.

因此，歸根結底，我會退後一步，考慮如何利用我們擁有的資產。我想到了 3M 在核心創新和世界新創意方面擁有悠久的歷史。我認為，當我們重新立足於長期使命、文化和創新精神時，我們會在公司每天推動這一目標的數千名員工中重新點燃這種精神。對我來說，這就是我所關注的。這是我能控制的。

There are lots of great markets out there. There are lots of different pockets of places where we can invest in to innovate, to penetrate, to grow, to differentiate offerings versus our competitors. So that's what I'm focusing my time on. The economy is going to do what it's going to do. I'm just watching where the trends happen to be and investing in places where we think we can drive some differentiation and grow higher than the market. So long answer to your question, but that's the way I think about it.

那裡有很多很棒的市場。我們可以在許多不同的領域進行投資，以創新、滲透、發展、使產品與競爭對手區分開來。所以這就是我的時間重點。經濟將會做它該做的事。我只是專注於趨勢發生的地方，並投資於我們認為可以推動差異化並成長高於市場的領域。回答你的問題很長，但這就是我的想法。

I really appreciate it and look forward to working with you.

我真的很感激並期待與您合作。

Likewise, thank you.

同樣，謝謝。

Andrew Kaplowitz, Citigroup.

安德魯‧卡普洛維茨，花旗集團。

Monish, thanks for all your help. Bill, I look forward to working with you. So maybe, Bill or Monish, you mentioned that growth across your businesses has generally been in line with your expectations. But just focusing on transportation, electronics, I know comps get a little more difficult in Q4, but would you say there are some upside as your original low single digit growth forecast there? Do you see consumer electronics holding up in the second half and have you seen any improvement yet in semiconductors?

莫尼什，謝謝你的幫忙。比爾，我期待與你合作。也許，比爾或莫尼什，您提到您的業務成長總體上符合您的預期。但僅關注交通、電子產品，我知道第四季度的比較會變得更加困難，但您是否會說，與您最初的低個位數成長預測相比，還有一些上升空間？您認為消費性電子產品下半年會維持穩定嗎？

Well, thanks for the question. We actually had a very good first half. It's partly due to consumer electronics. There was some specking wins that we happen to have there. We had a pretty good first half in auto, as Monish mentioned in his prepared remarks company-wide we're up 9%. A lot of it's going to be in that TEBG segment. We were outgrowing the build rate.

嗯，謝謝你的提問。事實上，我們上半場表現得非常好。部分原因是消費性電子產品。我們碰巧在那裡取得了一些勝利。我們在汽車行業的上半年表現相當不錯，正如莫尼什在他準備好的演講中提到的那樣，我們在全公司範圍內上漲了 9%。其中很大一部分將出現在 TEBG 領域。我們的成長速度超過了建置速度。

But as we watched over the last 90 days, the build rate for the year, which was down 50 basis points, now down 200 basis points for the year. A lot of it's going to be in the back half of the year. So we've got a little bit of caution on auto builds in general, which is factored into the guidance that we've provided. Maybe I'll ask Monish to offer a little more commentary on that, if there's anything more.

但正如我們過去 90 天觀察到的那樣，今年的建設率下降了 50 個基點，現在下降了 200 個基點。其中許多將在今年下半年進行。因此，我們對一般的汽車製造持謹慎態度，這已納入我們提供的指南中。如果還有什麼的話，也許我會請莫尼什對此提供更多評論。

No, same thing. I think we'll have to. Andy, as you know, this is cyclical, so we'll have to watch what happened in the second half. Bill mentioned that even in the prior question and that's what the team is watching.

不，同樣的事情。我想我們必須這樣做。安迪，如你所知，這是周期性的，所以我們必須觀察下半場發生的情況。比爾提到，即使在上一個問題中，這也是團隊正在關注的內容。

We are watching all the trends that all of you watch, which is build rates on cars, build rates on consumer electronics, what the holiday season turns out to be, I think, are all factors the team look. They watched in the past and will continue watching. And based on what we know right now, the team feels the guide that we have given you, which is for the company as a whole, is fair.

我們正在關注你們所有人關注的所有趨勢，即汽車的構建率、消費性電子產品的構建率、假期季節的結果，我認為都是團隊關注的因素。他們過去看過並將繼續觀看。根據我們目前所知，團隊認為我們為您提供的整個公司的指南是公平的。

Helpful. And then Bill maybe can you talk about 3M's ability to price across its portfolio? When I hear the conversation regarding limited new product intros and R&D, obviously the thought is that can all impact price. So how structurally, how effective can you be and how fast in sort of impacting pricing? And then it's hard not to notice. Consumer, for instance, remains pretty muted. I think that is just the market, but is it particularly challenging to price in that segment?

有幫助。那麼 Bill 能否談談 3M 對其產品組合進行定價的能力？當我聽到有關有限的新產品推出和研發的談話時，顯然我的想法是這都會影響價格。那麼，從結構上講，您的效率如何以及影響定價的速度有多快？然後很難不注意到。例如，消費者仍然相當沉默。我認為這只是市場，但在該細分市場定價是否特別具有挑戰性？

That's a very, very good question. From what I can tell last year, we had pretty significant price increases and we did cover inflation. This year in our sort of 1% center point of our 0 to 2 guidance, we have positive price within that. So we continue to see pricing. It's certainly lower than on a year-over-year basis than it was last year. So on a macro basis, our ability to price has been pretty good with capturing back inflation.

這是一個非常非常好的問題。據我去年所知，我們的價格上漲相當大，而且我們確實涵蓋了通貨膨脹。今年，在我們 0 到 2 指導的 1% 中心點上，我們的價格為正值。所以我們繼續觀察定價。與去年相比，這肯定低於去年同期。因此，從宏觀角度來看，我們的定價能力在收回通膨方面表現相當出色。

But what I'm looking at is the more details around how we price by customer, by segment, by product, not just gross price, but net price. So discounts, market development funds, all of those things between gross and net price. And is there an opportunity at the real micro level to price better? My instinct is that there is an opportunity here and this is an area that I'm going to focus a lot of time and attention on that.

但我關注的是關於我們如何按客戶、按細分市場、按產品定價的更多細節，不僅僅是總價，還有淨價。所以折扣、市場開發基金，以及總價和淨價之間的所有這些東西。在真正的微觀層面上是否有機會更好地定價？我的直覺是這裡有機會，我將在這個領域投入大量時間和注意力。

Sometimes it's training, sometimes it is systems, sometimes it is data visibility. But there's an opportunity on a much more granular level. Take a look at how we price, and I'll know more in the next number of months and couple of quarters as we go through the analysis. But I do believe we'll find some opportunities do better job on pricing there.

有時是培訓，有時是系統，有時是資料可見性。但在更細粒度的層面上存在著機會。看看我們的定價方式，在接下來的幾個月和幾個季度中，當我們進行分析時，我會了解更多資訊。但我確實相信我們會發現一些在定價方面做得更好的機會。

The other point you had mentioned about new product development, you're exactly right. Which is as we innovate and develop differentiating features, we should be able to get better margin and better pricing on those new products that are coming out. So as we reinvigorate the NPI engine, which I expect to do, hopefully that does drive price improvement, margin improvement, over time as well.

您提到的關於新產品開發的另一點是完全正確的。隨著我們創新和開發差異化功能，我們應該能夠在即將推出的新產品上獲得更好的利潤和更好的定價。因此，當我們重振 NPI 引擎時（我希望這樣做），希望隨著時間的推移，這也能推動價格改善和利潤率改善。

Joseph O'dea, Wells Fargo Securities.

約瑟夫‧奧迪亞 (Joseph O'dea)，富國銀行證券公司。

In the interest of time, I'll just keep it to one. But Bill, just curious if you could expand a little on the dispassionate portfolio review comments. I understand sort of no specifics today, but if you could just talk about your timeline for completing reviews? And then as you do these, what are the key metrics that you ask business leaders to present on in the reviews as you sort of focus on decision making there?

為了節省時間，我就將其保留為一。但是比爾，只是好奇你是否可以稍微擴展一下冷靜的投資組合審查評論。據我了解，今天沒有具體細節，但您能否談談完成審核的時間表？然後，當您執行這些操作時，當您專注於決策時，您要求業務領導者在審核中提出哪些關鍵指標？

So good question and look, 90 days in the job, I'm trying to learn the business, learn, meet the team, understand what's going on in the business. So there's a lot that's happening right now and I'm really focused there. I'm not to the point of any particular occlusions, I'm not necessarily near that. But it is something that's on our mind. We're going to look hard at.

很好的問題和看法，在工作的 90 天裡，我正在努力學習業務、學習、與團隊見面、了解業務中發生的事情。所以現在發生了很多事情，我真的很關注這些事情。我還沒有達到任何特定遮擋的程度，我不一定接近那個程度。但這是我們心裡的事。我們要認真看看。

The teams are looking at this as well, is how are we growing in each segment versus competitors. What's the earnings growth outlook? Are we able to expand margins or not? What does our NPI pipeline look like? And based on who we compete against, do we have an opportunity through better execution, through better operations, through new products coming down the path, to improve our positioning in certain segments.

團隊也在關注這一點，即我們在每個細分市場中與競爭對手相比如何實現成長。獲利成長前景如何？我們是否能夠擴大利潤？我們的 NPI 管道是什麼樣的？根據我們的競爭對手，我們是否有機會透過更好的執行、更好的營運、透過新產品的推出，來提​​高我們在某些​​細分市場的定位。

At the end of the day, we're an innovation driven company. Technology differentiation is the lifeblood of how we compete. So I'll be looking hard at businesses where we can bring technology differentiation into the business and provide value to customers that's different than our competitors.

歸根究底，我們是一家創新驅動的公司。技術差異化是我們競爭的命脈。因此，我將努力尋找能夠將技術差異化引入業務並為客戶提供不同於競爭對手的價值的業務。

And I contrast that with commodity like businesses that perhaps don't really fit so well. So, no specific lens other than that, but we'll take a hard look at this and make some conclusions in the coming quarters next year as we get our arms around what's the business we should be in and also which businesses that we ought to be looking at outside the company.

我將其與可能不太適合的大宗商品業務進行了對比。因此，除此之外沒有其他具體的視角，但我們將認真審視這一點，並在明年接下來的幾個季度中做出一些結論，因為我們將了解我們應該從事哪些業務以及我們應該從事哪些業務正在尋找公司外部。

Joe Ritchie, Goldman Sachs.

喬·里奇，高盛。

Joe, are you there?

喬，你在嗎？

Mr. Ritchie, your line is open. Please proceed with your question. We are not hearing your question at this time. And Mr. Ritchie, please check your mute button. We are still unable to hear you at this time. Mr. Ritchie, please.

里奇先生，您的電話接通了。請繼續你的問題。我們目前沒有聽到您的問題。里奇先生，請檢查您的靜音按鈕。目前我們仍然無法聽到您的聲音。里奇先生，有請。

Operator, let's just move on.

接線員，我們繼續。

(Operator Instructions) We'll take our next question now from Brett Linzey with Mizuho Securities. Please proceed with your question.

（操作員說明）我們現在將接受瑞穗證券的 Brett Linzey 提出的下一個問題。請繼續你的問題。

Hi, good morning all and welcome to Bill and best of luck to Monish.

大家早安，歡迎比爾，祝莫尼什好運。

Thank you.

謝謝。

Yes Bill, I appreciate the rundown on the priorities. I thought the example on the command strips was quite striking. As you're thinking strategically about optimizing some of these touch points, do you think you have the personnel resources internally, the incentive structure internally to drive these changes or are you looking to third parties? Just trying to understand the timeline and what needs to be done here.

是的，比爾，我很欣賞優先事項的概述。我認為命令條上的範例非常引人注目。當您從策略上考慮優化其中一些接觸點時，您認為您內部擁有人力資源、內部激勵結構來推動這些變革，還是正在尋求第三方？只是想了解時間表以及這裡需要做什麼。

Oh, thank you. Yes, this is a -- it’s a complicated problem. It’s a lot of products, a lot of SKUs across a lot of factories and distribution points. If you look at this on a global basis, you map all the DCs and all the flows, all the factories, it's a spider's nest. I mean, it's a lot going on here. And we do have a great team in operations that are looking hard at this. We have outside advisors that have been involved and this will take some time. It's not a quarter, two quarters away. We'll continue to take a hard look at optimizing the networks and the flows. So, we have the right people at the top level and I do think that we've got the right incentive structures around this as well and motivations for the team.

哦謝謝。是的，這是一個——這是一個複雜的問題。它包含大量產品、分佈在許多工廠和分銷點的大量 SKU。如果你從全球的角度來看，你會畫出所有的 DC、所有的流程、所有的工廠，這是一個蜘蛛巢。我的意思是，這裡發生了很多事情。我們確實有一支優秀的營運團隊正在努力解決這個問題。我們有外部顧問參與其中，這需要一些時間。不是四分之一，而是兩四分之一。我們將繼續認真研究優化網路和流量。因此，我們在高層擁有合適的人員，我確實認為我們也為此擁有正確的激勵結構以及團隊的動力。

Nicole DeBlase, Deutsche Bank.

妮可‧德布拉斯 (Nicole DeBlase)，德意志銀行。

Yes, thanks. Good morning, guys, and welcome, Bill and thanks, Monish, for all the help. Maybe Bill, you could talk about the level of employee response and engagement. I suspect that you've probably been making a bit of a world tour in your first few months. All of this change sounds really exciting and would just love to hear how employees have been responding to what you'd like to do.

對了謝謝。早上好，夥計們，歡迎比爾，感謝莫尼什提供的所有幫助。也許比爾，你可以談談員工的反應和參與程度。我懷疑你在最初的幾個月裡可能已經進行了一些世界巡迴演唱會。所有這些變化聽起來都非常令人興奮，我很想聽聽員工對您想做的事情有何反應。

Look, I think employees here are excited. They're engaged. They want to make a difference. They want to see 3M grow. They want to see share price come up. They want to see recognition for doing great things in the world and then developing new products. That's the message I'm providing to you today. That's the message I'm offering to our employees.

看，我認為這裡的員工很興奮。他們訂婚了。他們想要有所作為。他們希望看到 3M 成長。他們希望看到股價上漲。他們希望看到在世界上做偉大事情並開發新產品時得到認可。這就是我今天向你們傳達的訊息。這就是我向我們的員工提供的資訊。

My priorities as I have explained to you, is what I've explained in some more detail with employees in town halls. So I think it's resonating well. I think hopefully it's energizing people, but again, we've got a lot of strong people here who have been here for a while, that really want to make a difference and I'm appealing to that. So I think the response has been good so far, again 90 days in.

正如我向你們解釋的那樣，我的優先事項是我在市政廳與員工更詳細地解釋過的。所以我認為它引起了很好的共鳴。我認為希望這能激勵人們，但同樣，我們這裡有很多堅強的人，他們已經在這裡工作了一段時間，他們真的想做出改變，我對此很有吸引力。所以我認為到目前為止，90 天後的反應還是很好的。

Deane Dray, RBC Capital Markets.

迪恩德雷 (Deane Dray)，加拿大皇家銀行資本市場。

Good morning and welcome Bill and all the best to Monish. Lots of impressive game plan in terms of all the different operational initiatives bill, and it just raises the question for me is, you can't do everything at once. So what's the element of triage?

早安，歡迎比爾，祝福莫尼什一切順利。就所有不同的營運計劃而言，有很多令人印象深刻的遊戲計劃，這對我提出了一個問題：你不能同時做所有事情。那麼分診的要素是什麼呢？

And also, this is not a one man show. Talk about your team. Are you deputizing internal folks? You have an army of consultants, you've got a CFO search you've got to do, and then how much change can the organization handle at once? Is there any element, I mean, lots of stuff needs fixing, but is there a sense of how you can layer these in and can change be too disruptive?

而且，這不是一個人的表演。談談你的團隊。你是內部人員的代表嗎？你有一支顧問隊伍，你有一個首席財務官的搜索，你必須做，然後組織可以一次處理多少變化？是否有任何元素，我的意思是，很多東西需要修復，但是是否有一種感覺如何將它們分層，並且更改是否會造成太大的破壞性？

No, it's a great question. I mean, look, these are all important priorities and I do think we can both try to drive growth through the mechanisms that I mentioned, as well as operational excellence. I think it's fundamental. I've been through this before. It's my first rodeo on these things. I can see a path to getting this work done. We have a great team of employees here. We have engaged outside advisors to help us across these different pieces and focus in some of these dimensions.

不，這是一個很好的問題。我的意思是，看，這些都是重要的優先事項，我確實認為我們都可以嘗試透過我提到的機制以及卓越的營運來推動成長。我認為這是根本性的。我以前經歷過這件事。這是我第一次參加這些事。我可以看到完成這項工作的途徑。我們這裡有一支優秀的員工團隊。我們聘請了外部顧問來幫助我們解決這些不同的問題，並專注於其中的一些維度。

Yes, it's a busy start, but I think we have the right team to deliver it. I think we have the right focus and priorities. We're going to have to manage it and manage the capacity of the team to respond to all these pieces, but yes, I'm optimistic. I think we'll look at these pieces individually as we go forward. I've laid out a pretty full laundry list of things we want to do, but we'll prioritize these things as we get towards the back end of the year.

是的，這是一個繁忙的開始，但我認為我們有合適的團隊來實現這一目標。我認為我們有正確的重點和優先事項。我們必須管理它並管理團隊應對所有這些問題的能力，但是，是的，我很樂觀。我想我們將在接下來的過程中單獨研究這些部分。我已經列出了一份相當完整的清單，列出了我們想要做的事情，但我們會在年底時優先考慮這些事情。

But at the end of the day, we're not going to be able to invest to grow unless we drive operational excellence. And I would say operational excellence is in fact a growth driver. When you're running, you are on time and out of your factories at mid-80s, 86 and change percent was our second quarter results. We should be above 90%.

但歸根結底，除非我們推動卓越運營，否則我們將無法透過投資來實現成長。我想說，卓越營運其實就是成長動力。當你跑步時，你會在 80 年代中期準時離開工廠，86 歲，變化百分比是我們第二季的結果。我們應該在90%以上。

The fact is, when you're below 90, we're missing sales. So by getting our operations to run better, that is a growth lever. As we drive productivity in our factories and create savings there, that we can reinvest in growth initiatives, that's a growth lever. So I think you've got to do both of these two pieces at the same time and work the pedals and that's what I plan to do.

事實上，當你的年齡低於 90 歲時，我們就會錯過銷售機會。因此，透過讓我們的營運更好地運行，這是一個成長槓桿。當我們提高工廠的生產力並創造儲蓄時，我們可以對成長計劃進行再投資，這就是成長槓桿。所以我認為你必須同時做這兩件事並使用踏板，這就是我打算做的。

Laurence Alexander, Jefferies & Company.

勞倫斯‧亞歷山大，傑富瑞公司。

Hi, good morning. This is Kevin (inaudible) on for Laurence. So I was just wondering if you could give a little bit more granularity on what you're seeing in terms of Chinese demand and whether you're seeing any green shoots there? And I'll leave it there just because of time.

早安.這是勞倫斯的凱文（聽不清楚）。所以我只是想知道您是否可以更詳細地介紹一下您所看到的中國需求以及您是否看到了任何萌芽？由於時間原因我會把它留在那裡。

So thank you for the question. Look, China for us is about 10% of our revenue. We had a good first half. We're up about 13% in the first half and part of that is electronics. When you look at the piece that's sort of local for local, if you will, it's about 1% so flattish and pretty similar to what other multinational, maybe even a little better than what a lot of other multinationals are seeing in China. Again, it's about 10% of our business, an important market, and we've seen good growth in the front half of the year simply because of the consumer electronics and auto builds.

謝謝你的提問。看，中國對我們來說約占我們收入的 10%。我們上半場表現不錯。上半年我們成長了約 13%，其中一部分是電子產品。如果你願意的話，當你看一下本地化的在地化產品時，你會發現它大約有1% 的水平，與其他跨國公司的產品非常相似，甚至可能比許多其他跨國公司在中國看到的要好一點。同樣，它約占我們業務的 10%，是一個重要的市場，我們在今年上半年看到了良好的成長，這僅僅是因為消費性電子產品和汽車製造。

This does conclude the question-and-answer portion of our conference call. I will now turn the call back over to Bill Brown for some closing comments.

我們電話會議的問答部分到此結束。現在，我將把電話轉回給比爾布朗，徵求一些結束語。

Okay. Well thank you, everybody, for joining and participating today and for the thoughtful questions. I want, again, thank all 3Mer’s around the world for their hard work and their dedication and I want to wish Monish well in his future endeavours. So thanks again for joining the call and I wish everybody a good day. Thank you.

好的。謝謝大家今天的加入和參與以及提出的深思熟慮的問題。我想再次感謝世界各地所有 3Mer 的辛勤工作和奉獻精神，並祝福 Monish 在未來的工作中一切順利。再次感謝您加入電話會議，祝福大家有美好的一天。謝謝。

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。