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.

（技術難題）現在，我想將電話轉給 3M 公司投資者關係資深副總裁 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，早安，歡迎參加我們的第二季財報電話會議。今天與我一起出席的還有 3M 公司的執行長比爾布朗 (Bill Brown)；以及我們的總裁兼財務長 Monish Patolalawala。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，今天的收益報告和本次電話會議的幻燈片演示已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。請花一點時間閱讀前瞻性聲明。在今天的電話會議中，我們將做出一些預測性陳述，反映我們對 3M 未來業績和財務表現的當前看法。

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，這些假設和預期受風險和不確定性影響。我們最新的 10-Q 表第 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參考某些非 GAAP 財務指標。非公認會計準則指標的對帳表可在今天的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?

說完這些，請翻到幻燈片 3，我會把電話轉給比爾。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。今天上午，我們公佈了第二季業績，非公認會計準則每股收益為 1.93 美元，成長近 40%，有機收入成長 1%。調整後的自由現金流為 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 員工的辛勤工作，取得了第二季的豐厚業績。莫尼什 (Monish) 將提供有關本季度的更多詳細信息，然後我將總結我們準備好的發言並提供全年指導，然後開始問答環節。

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.

我現在已上任近三個月，一直忙於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。如你所知，在新冠疫情爆發後的過去幾年裡，3M 經歷了許多變化，最近成功分拆了醫療保健業務，進行了重大重組並努力降低風險，包括在 2025 年底前停止 PFAS 生產並解決法律問題。

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.

您也看到了我們的組織模式發生了許多變化，從地理業務部門結構轉變為全球業務部門結構，並將我們的全球供應鏈活動集中在一位高階領導之下。總的來說，這對 3M 來說是一次巨大的轉型變革，而且團隊的表現非常出色。

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，您會看到營業利潤率擴大、現金產生能力強勁、資產負債表穩健、槓桿率較低以及評級機構對其的看法日趨積極等好處。感謝 Mike 和 Monish 堅定帶領公司完成這些改變。

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。雖然我們已經取得了很大進展，但我們還有很多工作要做，包括處理 PFAS 相關事宜，幸運的是我們擁有一支強大、出色的團隊來管理退出和我們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，而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，提高整個企業的營運績效；第三，有效部署資本。

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，我相信公司擁有巨大的有機成長機會，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，眾所周知，有機成長率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既需要從研發中獲得更多收益，也需要提高商業卓越性。

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.

隨著我深入了解細節，我了解到，除 Solventum 外，3M 核心業務的研發投資每年約為 10 億美元，約佔營收的 4.5%。然而，由於公司將重點放在投資和加強醫療保健業務上，因此過去五年來，3M 核心業務的研發投資名義上持平，實際則有所下降。在支出減少的情況下，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轉移到退出 PFAS 製造、降低供應鏈成本和解決與 COVID 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.

由於投資減少，以及策略轉向數量更少但規模更大的創新機會，過去十年來新產品的推出數量和收入持續下降。簡單的事實是我們的產品正在老化。雖然我們一直在將投資組合轉向汽車電氣化、工業自動化、資料中心和半導體、氣候技術等更高成長的市場，但這些努力目前還不足以抵銷核心業務的侵蝕。

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.

在大多數情況下，它們仍然是富有吸引力的成長平台，我們需要繼續平衡在快速發展的市場中進行適當投資，同時也要逐步投資以維持我們今天的核心產品。但在我們對研發預算做出任何調整之前，我想先探索如何從目前的支出中獲得更多收益。

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我們新產品開發流程的速度並提升我們工程師的有效能力，並且隨著時間的推移，將目前從事 PFAS 退出活動的人員重新部署到成長計畫中。透過增強資料透明度和更協調的治理流程，我們可以將資源部署在回報最高的專案上，從而提高研發效率。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，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隊伍和分銷商效率、有針對性的營銷、優化定價、以及在客戶界面更好的執行，特別是按時、全面履行，這是我的第二個優先事項即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，正在抓住許多機遇，我想向你們介紹我目前看到的情況。我一直在關注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、降低產量損失以及以更低庫存提高服務水準的機會。雖然我們的 110 家工廠和 95 個配送中心網路歷來為 3M 提供良好的服務，但它非常複雜且相互關聯，我們生產的大多數 SKU 在到達客戶手中之前都要經過多家工廠。

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，一條指令條在進入商店貨架之前要經過五家工廠和兩個分銷點。這延長了週期時間，增加了運輸貨物，並增加了物流和貨運成本。在精益製造和物流方面，我們正在圍繞操作設備效率或 OEE 開發一致的指標，以提高設備利用率、控制資本支出和映射模式和流程，以降低運費和配送成本。

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，我們有很大機會提高採購效率。我們擁有超過 25,000 家直接和間接供應商，其中包括近 4,000 家合約和零件製造商，但我們 80% 以上的原材料都是單一來源。我們還沒有像客戶要求我們那樣要求我們的供應商遵守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%，部分原因是我們的產品設計和製造方式，但也是由於生產計劃和轉換效率低下。最後，截至第二季末，我們的庫存過多，102 天內庫存量約為 40 億美元，而我們的服務水準僅為 85% 左右。我們的自下而上的分析表明，我們的庫存天數應該接近 75 天或更低，這意味著，當我們按時完成 90% 以上的工作時，隨著時間的推移，將有大約 10 億美元的現金機會。

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地部署資本，我們的方法保持不變。投資研發和資本支出以資助有機成長，支付有吸引力的股息（我們剛剛透過 Solventum 的分拆重新調整了股息），保持強勁的資產負債表，並利用過剩資本進行併購或股票回購。我們在第二季回購了價值約 4 億美元的股票，並且有能力在下半年和明年回購更多股票。

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.

雖然近期沒有收購計劃，但我將以全新、冷靜的眼光審視我們的投資組合，以確定是否有任何資產比其他人擁有的更有價值，同時，哪些資產可能適合 3M。今天我沒有進一步要說的，但隨著我加深對我們的業務和終端市場的了解，你們可以期待聽到我更多關於投資組合優先順序的言論。

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。我認為我們有一個良好的基礎，並相信這種關注基本面、回歸基礎的方法將推動價值創造。我鼓勵 3M 的每一位員工，從上到下，每天都要挑戰現狀和過去的做事方式，迅速而緊急地採取行動，擺脫那些分散我們為客戶和股東實現成長、創新和執行的注意力的事物。

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

說完這些，我將把本季的業績移交給莫尼什 (Monish)，然後我會回來討論業績指引。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。請翻到幻燈片 4。我想花點時間簡要提醒大家我們在上個季度的財報電話會議上強調的一些事項。從第二季開始，我們業務部門營業收入的結果前瞻性地包含了先前與 Solventum 相關的不協同效應或擱淺成本的影響。因此，對於呈現的歷史分拆前時期，不協同效應反映在企業和未分配部分。

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。其他包括我們第一季與支援 3M 從 4 月開始報銷的協議相關的成本。最後，公司和未分配部分涵蓋了 3M 與 Solventum 之間於 4 月 1 日開始的商業協議，並追溯接手 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.

回顧第二季的業績，我們公佈了穩健的調整後業績，包括銷售額 60 億美元、營業利潤率 21.6%、每股收益 1.93 美元、自由現金流 12 億美元。我們實現了調整後的有機成長率為 1.2%，增幅為 2.4%，不包括地理優先和產品組合計劃。

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。我們又度過了一個執行力強勁的季度，調整後的營業利潤率年增 440 個基點，調整後的自由現金流達到 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.

請翻到投影片 5。經調整後，我們的營業利潤率為 21.6%，上漲 440 個基點，每股收益為 1.93 美元，較去年第二季上漲 39%。我們第二季的年比業績得益於有機成長、生產力、嚴格的支出紀律和重組節約，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，我們為 Solventum 提供的過渡服務收入使利潤率增加了 50 個基點，每股收益增加了 0.05 美元。這些福利被股票薪酬部分抵消，由於 Solventum 的分拆，股票薪酬被轉移至第二季。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，這一時間變化對營業利潤率產生了 200 個基點的負面影響，每股收益減少了 0.18 美元。與去年同期相比，重組費用下降使利潤率上升了 270 個基點，收益增加了 0.23 美元。第二季的重組費用為 4,400 萬美元，低於預期。我們預計全年稅前重組費用仍將在 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，外幣匯率造成每股負 0.04 美元的影響。收購與資產剝離使利潤率年增了 10 個基點，收益也增加了 0.03 美元。該收益與去年第二季 Aearo Technologies 的重新合併以及 3M 與 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.

以下項目合計每股收益為 0.14 美元。這項收益主要由於現金餘額增加導致利息收入年增，部分原因是從 Solventum 分拆中獲得的現金收益。

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，我們現在預計全年非營業支出將在 5,000 萬美元至 7,500 萬美元之間，而先前的預期為 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，先簡單評論一下公司和未分配以及其他業務，第二季公司和未分配銷售額為 8,600 萬美元，調整後經營虧損為 200 萬美元。年初至今，公司和未分配銷售額為 1.12 億美元，調整後營業虧損為 7,300 萬美元。這與我們預計的全年銷售額 2.25 億美元至 2.75 億美元相符，預計調整後營業虧損在 1.25 億美元至 1.75 億美元之間。

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程度。年初至今，其他業務的營業虧損為 2,800 萬美元，與我們預期的全年虧損持平至 2,500 萬美元相符。

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.

請翻到幻燈片 6。第二季調整後的自由現金流為 12 億美元。我們第二季的業績得益於強勁的營業收入、較低的資本支出，但部分被較高的營運資本所抵銷。由於我們繼續對成長、生產力和永續性進行投資，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，我們向股東返還了總計 8 億美元，其中股息和股票回購各佔一半。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創造記錄之上。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月份我們將支付總計 37 億美元的公共供水和作戰武器賠償金。

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.

在介紹我們的業務部門表現之前，我想先強調一下在得出我們第二季調整後結果時被排除的幾個項目。首先，請注意，我們與戰鬥武器相關的保險公司達成了約 1.2 億美元的和解協議。我們仍在與多家承運商進行討論，並期待未來有更多的恢復。

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，本季我們發生了約 8 億美元的非現金費用，與我們向 Met Tower Life 的部分美國既定退休金義務進行的 25 億美元退休金風險轉移有關。此舉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.

請翻到幻燈片 7。首先是我們的安全和工業業務，銷售額達 28 億美元，有機成長 1.1%。工業膠黏劑和膠帶在消費性電子設備黏合解決方案的推動下實現了中等個位數的有機成長。個人安全和汽車售後市場成長了個位數。電氣市場略有上漲，但由於客戶意外的生產挑戰，屋頂顆粒市場表現持平。

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，我們的磨料和工業特種產品的有機銷售額較去年同期下滑。從地理分佈來看，美國和亞太地區的工業市場呈現低個位數成長，而歐洲、中東和非洲地區的工業市場則呈現低個位數下降。整體來看，由於終端用戶和通路仍保持謹慎，本季工業終端市場需求持續漲跌互現。

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。這項業績得益於持續的生產力和重組行動帶來的銷售量成長，以及年比重組費用的下降。這些好處被股票薪酬的時間安排和 Solventum 分拆導致的成本低效所部分抵消。

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.

轉到第 8 頁的運輸和電子業務，該業務調整後的銷售額為 19 億美元，有機增長 3.3%。由於我們在消費性電子設備和半導體製造領域持續取得佳績，我們的電子業務表現優於市場，有機成長了兩位數。

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%，而全球轎車和輕型卡車帳單卻下降了 0.5 個百分點。縱觀上半年，隨著我們繼續在新平台上取得滲透，我們的汽車 OEM 業務有機增長了 9%，而全球轎車和輕型卡車的生產率則持平。

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.

縱觀交通運輸和電子領域的其他領域，先進材料有機增長了中等個位數，而商業品牌和交通運輸的銷售額同比下降了低個位數。運輸和電子業務實現調整後營業收入 4.26 億美元，年增 16%。調整後營業利益率為22.3%，較去年成長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.

該團隊透過充分利用電子產品銷售、持續提高生產效率和重組行動的好處以及同比較低的重組費用實現了這一成果。部分抵消了這些好處的是股票薪酬授予的時間安排以及 Solventum 分拆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.

第 9 頁顯示，消費業務第二季銷售額為 13 億美元。由於消費者可自由支配支出持續疲軟，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。家居裝飾業務實現中等個位數成長，消費者安全和福祉業務實現低個位數成長，包裝和表達業務實現低個位數下降，而家居和汽車護理業務實現中等個位數有機下降。從地理分佈來看，美國略有上漲，亞太地區下降中個位數，歐洲、中東和非洲地區則下降高個位數。

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.

消費業務第二季營業收入為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。營業利潤率表現受到股票薪酬授予數量和時間的減少以及 Solventum 剝離導致的成本效率低下的影響。較低的重組費用在一定程度上抵消了這些不利因素的影響。

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.

在我將話題轉回比爾之前，我想花點時間感謝 3M 團隊為公司的成功所取得的巨大進步。我對我們團隊堅持不懈地專注創造價值感到非常自豪，我們透過提高生產力和效率來推動績效，分拆醫療保健業務，並透過處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，團隊將繼續保持這一勢頭，在未來幾年為我們的員工、客戶和股東創造持續的價值。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交流。

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，請翻到第 10 張幻燈片，我將把它交還給比爾，以了解我們的指導方針的最新情況。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 Monish。鑑於上半年強勁的營運執行力，我們將全年調整後盈利預期底端上調 20 美元，至 7 美元至 7.30 美元之間，而之前的預期為 6.80 美元至 7.30 美元，目前同比增長 16% 至 21%。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率不變，為持平至成長 2%，預計下半年有機成長率與上半年中位數表現一致。

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.

儘管仍然存在很大的宏觀不確定性，但我們的業務部門和市場趨勢基本上符合預期。年初至今的安全和工業有機成長與全年持平至低個位數成長的預期基本持平。我們預期工業終端市場將保持漲跌互現，因為通路夥伴和終端客戶對整體需求趨勢持續保持謹慎。

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，運輸和電子業務上半年有機成長近 5%，而全年預期成長個位數。上半年的強勁成長很大程度上歸功於消費性電子產品和汽車產業。我們將繼續監測汽車生產率以及返校季和假期季節的消費性電子產品需求趨勢。

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有機下降了近 3%，而全年預期消費支出將下降個位數。我們繼續預計，今年消費者在耐用品上的零售可自由支配支出將保持在低檔。

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.

在回答您的問題之前，我想花點時間感謝 Monish 在過去四年中對 3M 的貢獻和影響。雖然我和他合作的時間不長，但他是一位強大的合作夥伴，幫助我了解公司的狀況，我很享受與他一起工作。我感謝他為克服諸多挑戰以及使 3M 更加強大所做的一切。

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

現在，讓我們開始回答你們的問題。

(Operator Instructions) Jeff Sprague, Vertical Research Partners.

（操作員指示） 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?

感謝你們迄今為止提供的所有幫助。嘿，比爾，非常感謝你對有機增長歷史等進行的如此透徹和詳細的解構，我很欣賞你的評論，需要花一些時間來處理這些事情。但您是否已經實施了這些想法呢？您能否向我們介紹一下與有機成長相關的業務前端的一些變化將如何付諸實施？

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。正如我在演講中提到的，推動有機成長有兩個主要動力。一是當然要激發創新，推動創新以提高營收，推動有機收入。因此，部分原因在於，我們必須觸摸清新產品開發的開支底數，然後開始扭轉局面。今年上半年我們推出了約 75 至 76 種新產品。今年我們可能只會做不到 150 個。回顧過去的 8 年、9 年或 10 年，我們曾經做過超過 1000 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種狀況。做這件事需要一些時間。我們繼續將部分寶貴的研發資金投入到降低成本和退出 PFAS 上，以穩定我們的供應鏈。我曾評論說，我們 80% 的原料都來自某個產地。我們必須使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.

我在研發領域真正致力於思考如何讓研究人員擺脫非增值活動。它實際上有兩到三個主題。一是既要有效率，又要有效果。我認為這是一個提高我們工程團隊有效能力的機會。我認為我們有機會透過新產品開發管道來提高速度。

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思維方式和不同的方式管理研發，我們將寶貴的資金投入到研發中，以便它們能夠在整個公司內流動，並實現最高的投資回報率。這就是我專注於研發的原因。但同樣，這需要一點時間。因此我們必須銷售更多目前在市場上的產品。這簡直就是商業上的卓越。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.

目前，我們的銷售團隊已超過 5,000 人。我們知道在過去四、五年裡它下降了約25%。這部分是因為我們已經轉向了出口模式。但我們有機會審視我們的覆蓋範圍、我們的激勵措施以及我們圍繞銷售團隊的培訓。我認為那裡有一些機會。我們的經銷商接近 30,000 家。我認為我們在那裡有機會。在高水準定價方面可能存在一些機會。

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.

我們在控制通膨方面做得很好，今年我們將看到一些逐步積極的定價。但當你深入細節層面時，會發現定價、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研究這一點。我們正在認真研究廣告和行銷。這是我們消費者業務中的重要槓桿。

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.

與消費包裝商品類型的公司相比，我們的業績較之前大幅下滑。因此，我們有機會以不同的、非常有策略的思維來思考廣告和行銷問題。我認為我們最後要考慮的是交叉銷售。有某些例子，在某些地方我們將產品賣給分銷商或客戶，但那些客戶應該從我們這裡購買不同的產品，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，對於使用表面調理產品來拋光金屬和木材的客戶，您總是使用呼吸器來進行這項工作。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，所有這些都是我們短期內要利用的槓桿，隨著我們更多地了解如何真正推動營收成長，我們將持續向分析師和投資者通報最新情況，這對於推動 3M 的價值創造至關重要。

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，也許我還有另一個簡短的問題。好吧，也許這不是一個快速的方法。我很欣賞這些詳細的答案。就卓越營運方面以及您談到的交付品質等許多 KPI 而言，這是否需要在重組方面做出巨大努力？公司最近經歷了許多重組，包括剛結束的一個大項目，還是您認為這些只是更多流程改進和諸如此類的事情？

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。我們已經完成並且正在實施一項非常重大的重組計劃，目前已完成約 75%。它將持續到2025年。我認為團隊在這方面表現得非常好。我在改善營運支出方面談論的很多事情都是增量式現收現付類型的機會。由於您正在進行投資，因此您幾乎可以獲得儲蓄。隨著時間的推移，可能還會出現一些更大的問題。

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.

如果你考慮到我們更廣泛的網路的複雜性，幾年後可能會有額外的重組，但今天無法衡量。目前，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，且無需花費大量費用。

Nigel Coe, Wolfe Research.

奈傑爾·科（Nigel Coe），沃爾夫研究公司。

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，但我確實想問一下植物和足跡的分佈。我覺得您提到了 105 家植物和 95 家 DC——110 家植物和 95 家 DC。那麼，我們在這裡談論的是，隨著時間的推移，該佔地面積是否會顯著縮小，還是更多的是透過重新配置來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?

然後思考透過投資推動成長而非提高效率的機會，我們該如何看待 24 年以後的利潤率？儘管聽起來您要進行投資，您是否有信心我們能夠在 24 年後仍實現利潤成長？

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，有幾個好問題，我會盡快回答。你說的對，110 家工廠，95 個配送中心。事實上，如果回顧過去，這裡的團隊實際上一直在減少工廠數量、我們網路中的配送中心數量，而且我們今天的重組計劃也有一些進展。

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。我無法確定它到底是什麼以及什麼時候會發生這種節奏，但我們正在認真研究它。但這不只是工廠，還有工廠內的細胞。當您查看我們在這些工廠內的資產和單元時，您會發現我們擁有 250 項塗層資產，幾乎分佈在我們一半的工廠中。你必須坐下來問，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。彼得·吉本斯 (Peter Gibbons) 和他的團隊在這方面做得非常出色。隨著時間的推移，這種情況將會逐漸發生。我真的無法估量需要多少重組因素才能達到這個目的。相對於利潤率，該團隊已經做得非常出色。你可以看到，今年上半年上漲了近500個基點。因此利潤率已大幅上升。

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.

就基本的阻止和解決生產力問題而言，我們還可以做更多。交易量顯然——隨著交易量的回升，交易量顯然會成為我們的高槓桿率。所以他們接下來能去哪裡，我今天還無法估計。當然，當我們進入25年時，我們會為您提供更多展望。但這裡有很多槓桿，包括推動有機產量。

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，顏色真棒。然後莫尼什 (Monish) 對保險追償情況進行了快速跟進。這對戰鬥武器的恢復來說顯然是個好消息。您能否透露一下您就戰鬥武器採購事宜與多少家運輸商進行了談判？也許您能讓我們了解水資源解決方面存在的機會？

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，這裡有塔式保險，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取得 120 的成績感到非常滿意。正如我在準備好的發言中提到的那樣，我們相信這裡還有更多的收穫，並且我們一定會在這些事情發生時隨時向大家通報。

Scott Davis, Melius Research.

戴維斯 (Scott Davis)，Melius Research。

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的解讀，但您是否認為 3M 的多元化程度太高，需要比我們在 Solventum 旋轉中看到的更進一步縮小範圍？

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.

嗯，斯科特，我不確定今天我是否會這麼說。事實上，我認為這是一個大生意，一個複雜的生意，有很多不同的終端市場，不同的業務部門，不同的市場進入方式。我們生產的許多產品都要經過所有這些工廠。因此整個業務中存在著大量的互聯互通。但正如我過去所做的那樣，我在這裡會做同樣的事情，即重新認真地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的那樣，要冷靜地去做。認真考慮什麼對我們來說更有利，然後我們會隨著時間的推移對此做出一些決定。在我們思考未來我們想要從事什麼樣的業務的同時，是否有些資產不屬於 3M 公司，而我們更適合持有？我們也會仔細研究這個部分。

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，除了我們要認真研究這個問題之外，我不會從我的言論中得出任何具體的結論。如果我們認為某些東西在其他地方更適合，那麼我們就會繼續前進。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，當我看到您的優先事項清單、卓越營運時，我發現所有這些都是基礎事項。我不想輕描淡寫，但這幾乎讓你感覺自己正陷入一種很多事情都沒有做好的境地。我不想指責別人，只是想問，失敗的原因是什麼？這是否只是關於薪酬和人們的優先事項的問題，而你需要改變薪酬計劃？是因為很多諸如精益製造之類的事情還沒有落實，或者落實得不夠早？我只是想試著伸出雙手。

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 已經很久了，我們經歷了多位不同的 CEO，他們加入公司時都有類似的目標清單，想要解決這幾個問題，但卻一直難以實現。我只是想說清楚，您認為導致我們陷入今天這種情況的主要原因是什麼？

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.

是否有一個主要事項您可以先勾選該框，然後再按照清單進行處理？我知道這個問題有點難回答，我再次強調，我並不是想指責別人，只是想說這是一個相當沉重的任務。我認為很多人都在盡力解決其中的一些問題，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，我只想說這跟失敗或成功或對錯無關。我帶著與過去不同的經驗、不同的背景以及對我們開展業務的方式的新視角來加入我們的團隊。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 COVID 期間擔任一家公司的首席執行官，我們所面臨的挑戰遠遠不及 3M，除此之外，還要承擔 Mike 和他的團隊透過結構性變革處理的許多責任。我們做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。我們已經完成了 75%。一切進展順利，您可以從邊緣看到這一點。一切進展順利。我來到這裡，只是從今天的角度來看待這個問題，看看冷酷的事實，這是一種回歸基本、關注基本面的方法，聽起來很基礎，但最終，我確實認為，我們這裡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.

只要專注於如何透過我所談論的事情將業務轉變為營收成長，商業卓越、推動研發成長、在公司內推動真正的卓越營運文化，並迅速而緊急地採取行動。我以前也遇過類似的情況。人們很容易陷入這樣的陷阱：事情就是這樣做的。

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，我鼓勵人們每天都挑戰我們過去的做事方式。這就是持續改善的真正意義，也是我鼓勵人們去做的事情。因此，展望未來，我看到了創造價值的巨大機會。

Julian Mitchell, Barclays.

巴克萊銀行的朱利安·米切爾。

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。歡迎比爾和莫尼什，感謝你們多年來的幫助。可能只是圍繞再投資點和有機成長的第一個問題。因此，比爾，聽起來你可以在中期對業務進行足夠的再投資以推動成長，但仍能看到合理的利潤率擴張。我只是想確認你所說的確實如此。

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，關於這個成長率點，我想知道您對 3M 的成長權利的初步想法是什麼。也許您認為它是可解決的。市場正在成長，您如何看待其整體同業的成長率。我所推測的背景是，在過去五到十年裡，3M（不包括 Solventum）的成長率約為 1% 到 2%。我想知道您認為相對於這個市場成長率是多少？

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.

有幾個好問題。我的意思是，首先，我們確實預計下半年我們有一定的能力來逐步投資於業務。我認為 Monish 和 Mike 已經在我們的指導模型中討論過這個問題。我們仍然看到一些逐步投資的機會。

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.

我們會在後半部進一步討論這個問題。但我們總是說，我們透過重組節省的資金中的一部分將重新投資於業務。到目前為止情況就是這樣，我們看到今年下半年還會有一些額外的機會。

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.

我對銷售團隊、廣告、商品推銷的評論至少涉及幾個不同的項目。今天我不能談太多研發的事情。我想更深入地研究如何釋放我們今天已經進行的投資的產能，以及是否可以更精簡並有效地重新部署以實現營收成長？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.

就福利成長而言，我們當然應該比現在成長得更好，我們預期的成長幅度為 0% 至 2% 的中點。我們知道，由於退出某些地區和部分投資組合，存在 1% 的逆風，但經調整後，有機成長率仍為 1% 至 3%。可能還應該多一點。GDP在2.5%左右。我們認為今年的IPI將在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.

我們的經濟至少應該保持同樣的成長水平，甚至可能略好。但隨著我們接近年底和 2025 年，更多的評論將為您提供有關公司未來發展的長期展望。

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，因為很多人問到的是中期問題，如果我們只是考慮下半年指引的框架，我認為這意味著下半年的營業利潤率可能在 21％ 左右。可能稍微好一點，與去年同期和上半年相比，情況都基本持平。

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?

我只是想知道我是否正確，因為看起來重組費用逐年減少，營業收入相當穩定。所以我只是想知道這是否是正確的假設以及背後有什麼驅動因素？您對第三季和第四季的動態有什麼初步看法嗎？

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.

是的，請允許我在這裡提供幾點評論，然後我會請莫尼什 (Monish) 填補一些關於季度進展的空白。但就這裡的節奏而言你是對的。我們確實預計下半年的收入將與上半年非常相似，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.

正如上半年所看到的那樣，我們繼續看到強勁的營運執行和支出紀律。我們將看到重組成本降低帶來一些好處，目前上半年和下半年重組成本比例為 60/40。上次是 70/30。因此，有些人已經轉移到後半部分，但你確實看到了一點退步。我們確實看到了與 Solventum 簽訂的過渡服務協議的償還，該協議於 4 月開始生效。

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，我們下半年的薪資也會上漲。我們已有兩個整整季度的薪資上漲。我們的薪水是 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。這被一些較低的股票補償所抵消。如您所知，我們在第二季度提供了撥款。我們的工廠確實面臨一些阻力。

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，這帶來了一些積極的吸收。我們將看到庫存在今年下半年下降。這將造成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推動一些更高的非營業費用。我們第二季有大量現金餘額。7 月份，現金流出用於一些法律支付和法律和解。因此我們的利息成本、利息支出將會上升。我們的利息收入在下半年將會下降。

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。所以這些就是最大的驅動力。有點稅收地理因素，但這些是最大的驅動因素。也許我會請 Monish 對 Q3、Q4 節奏進行評論。

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。朱利安 (Julian) 想補充一下比爾 (Bill) 關於上半場和下半場的觀點，僅是數據點。我們上半年在重組上花了1.65億美元，下半年預計又花了1.1億美元。因此下半年的稅率將在 19% 左右，而上半年的稅率為 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.

如果您現在只看第二季、第三季或第三季、第四季之間的預測，第三季的營收趨勢將與我們在第二季看到的非常相似。我認為比爾已經談論過市場的情況，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保持強勁。您將從我們在第二季宣布的股票補償時機中獲得順風，其中約 100% 將在第三季作為順風回歸。

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 獨立執行能力的日趨成熟，我們也相信他們將繼續退出其 TSA。正如我所告訴你們的，TSA 有些是短期的，有些則長達兩年。這一時間可能長達三年。隨著 Solventum 開始退出，我們將看到費用降低。從每股盈餘的角度來看，這會產生約 0.09 美元的不利影響，但總體而言，第二季的影響仍大於第三季和第四季的影響。比爾談到了我們工廠在第三季庫存減少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.

根據團隊目前看到的情況，重組成本在第二季到第三季持平。因此，正如我們所討論的，餘額將進入第四季度。然後你會看到 - 我們討論了下半年對戰鬥武器和 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 達成的和解協議支付 37 億美元，這意味著第三季的現金餘額將較低，這將影響我們的每股收益 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阻力。

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.

團隊依然相信，他們可以加大投資，推動長期成長。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%。因此你可以回到第四季度，其數字將會更低。希望這有助於您正確建立模型。

Steven Tusa, JPMorgan.

摩根大通的史蒂文·圖薩。

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，Monish，謝謝你的幫忙。對你們來說這並不容易，但我真的很感謝你們注意細節，並且總是盡力讓我們了解情況，所以我們真的很感謝你們的幫助。

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，你會有暑假嗎？因為這聽起來就像，我不確定我是否曾經見過一位新任首席執行官在頭三個月裡像這樣被大砲射出來並具有這種細節。通常，您應該等待大約一年的時間，以便在設定長期目標之前重新設定並獲得選擇。因此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?

但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，資產負債表存在負面可選性，如果你願意的話，但這是一種拖累。從這個角度來說，你說的應該是更積極主動一點。唯一提到 PFAS 的地方是幻燈片 2，即法律免責聲明。你在幻燈片中根本沒有談論它。您認為呢？您是否有什麼關於 PFAS 責任的可能舉措和策略？

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。當我回顧過去，看看我們曾經走過的路時，公共供水協議是管理部分風險的一大步，也是重要的第一步。但還有很多工作要做。

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.

我們正在繼續處理一些選擇退出的訴訟，以及 MDL 內的其他案件，以及歐洲的訴訟。我們將繼續控制該地區。我們在 Q 和 K 中進行了非常詳盡的披露。而且，我們擁有一支優秀的團隊，真正專注於管理這一點。

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.

我認為我最適合花時間去做那些能為我們的業主創造價值的事情，從而推動營收成長並實現業務卓越營運。我們確實產生了大量現金流。我們在本季看到了這一點。我們看到，今年上半年的自由現金流轉換率為 90% 至 110%。我對我們如何能夠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，當我退一步考慮時，我認為我們的資產負債表實際上非常強勁。我們可以適當地管理我們所看到的風險。即使如此，我們仍然可以選擇處理我們的資產負債表。因此，我專注於我們能夠控制的事情，並真正讓團隊重新專注於我們要做什麼來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?

從您所聽到的來看，市場在有關 PFAS 問題相當嚴厲和負面的敘述中忽略了什麼？

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，我真的無法評論市場在這方面可能會或不會錯過什麼。我關注的是我們能夠控制的事情。我像所有投資者一樣，非常仔細地閱讀了問題書。要花很長時間才能完成。我想我們已經做到了。我們在披露方面做得很好。但再次強調，我們有一個出色的團隊來管理此事。這是一個動態的情況，我相信他們正在做的事情。我參與了那件事。

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。由於他花了很多時間在這個領域，所以他在這個領域擁有豐富的專業知識。我在這裡也依賴他。再說一次，我認為我最應該花時間做的事情是，我們要做些什麼來激勵 65,000 名員工中的另外 64,000 名員工？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物以及 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。很高興知道您在旅途中抽空閱讀 Q，坐下來喝一杯蘇格蘭威士忌，讀一讀 Q。非常感謝。祝你好運並期待聯繫。

Likewise.

同樣地。

Andrew Obin, Bank of America.

美國銀行的安德魯‧奧賓 (Andrew Obin)。

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

莫尼什，感謝您多年來的幫助。我很榮幸。

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.

這只是一個問題，只是關於資本配置的後續問題。看來，隨著 PFAS 營運重點的透明度大大提高，市場顯然對這一訊息做出了非常積極的反應。您對前期股份回購有何看法，特別是當您釋放營運資金時？例如，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.

什麼是——我知道您強調回購是關鍵機會之一，但在像這樣的轉型故事中，在最低點買入股票往往會帶來長期回報。您和董事會對回購的看法是什麼？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.

好吧，謝謝你。你說得對。我非常有目的地確定了資本配置的四個首要任務，其中第四個任務就是用於回購或併購的剩餘現金。目前還未出現併購交易。因此，您看到第二季市場取得了進展。那是在麥克和莫尼什的領導下，回購了價值 4 億美元的東西。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.

我們與董事會已達成近 40 億美元的開放授權。我們在管理存在的風險、創造現金的能力以及降低下半年營運資本的能力時，會不斷評估這一點。透過所有這些手段，我們將認真考慮如何處理下半年以及明年的過剩現金。今天對此沒有什麼好說的。

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，3M 一直是投資者在經濟觸底時會買入的公司之一，因為經濟正在重新加速發展。我想，這個問題分成兩個部分。首先，您認為 3M 仍然具有這種週期性槓桿作用嗎？因為您剛才談到您的產品介紹下降了不少，但總的來說，您是否認為這種業務的基本品質能夠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？

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？因為它看起來就像是沒有盡頭。如果您能為我們提供您的觀點，即使情況已經觸底，PMI 也能找到底部。我知道這是一個很長的問題，但我很感謝您的回答。

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，我確實希望我們能從底部反彈。這一切都取決於美國下半年發生的情況、聯準會對利率的調整以及通膨的走勢。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感到樂觀。但同樣，我沒有水晶球，電話裡的人也沒有。

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.

所以到最後，我會退一步思考如何利用我們所擁有的資產。我認為 3M 在核心創新和向世界提供新理念方面有著悠久的歷史。我認為，當我們重新立足於這項長期使命、這種文化、這種創新精神時，我們會在公司每天推動發展的數千名員工中重新點燃這些精神。對我來說，這就是我關注的重點。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地方進行投資，以進行創新、滲透、成長，並讓我們的產品與競爭對手有所差異化。所以我把時間集中於此。經濟將會做它該做的事。我只是觀察趨勢的發展方向，並在我們認為可以推動差異化並實現高於市場成長的領域進行投資。對你的問題的回答很長，但這就是我的想法。

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

我非常感激並期待與您合作。

Likewise, thank you.

同樣，謝謝你。

Andrew Kaplowitz, Citigroup.

花旗集團的 Andrew Kaplowitz。

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?

Monish，謝謝你的幫忙。比爾，我期待與您合作。所以也許，比爾或莫尼什，你們提到你們業務的成長總體上符合你們的預期。但僅關注運輸、電子產品，我知道第四季度的比較會變得有點困難，但您是否認為，由於您最初的低個位數成長預測，那裡存在一些上行空間？您認為下半年消費性電子產品市場會維持穩定嗎？半導體市場是否有改善？

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。我們的上半場其實表現得非常好。部分原因在於消費性電子產品。我們在那裡恰好取得了一些重大勝利。我們的汽車業務上半年表現相當不錯，正如莫尼什在全公司準備好的發言中提到的那樣，我們的銷售額增長了 9%。其中許多都將在 TEBG 部分。我們的建設速度已經超出了預期。

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.

但正如我們在過去 90 天所觀察到的，今年的建設率下降了 50 個基點，現在下降了 200 個基點。很多工作將在今年下半年完成。因此，我們總體上對自動建置持謹慎態度，這已考慮到我們提供的指導中。如果還有其他問題的話，也許我會請莫尼什對此發表更多評論。

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。我想我們必須這麼做。安迪，如你所知，這是週期性的，所以我們必須觀察下半年發生的情況。比爾在前面的問題中也提到了這一點，這也是團隊正在關注的。

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，即汽車的製造率、消費性電子產品的製造率、假期的情況，我認為，這些都是團隊關注的因素。他們過去看過，也會繼續觀看。根據我們目前掌握的情況，團隊認為我們給您的指南對整個公司來說都是公平的。

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?

很有幫助。然後比爾，您能談談 3M 對其產品組合的定價能力嗎？當我聽到有關有限的新產品介紹和研發的談話時，顯然我的想法是這一切都會影響價格。那麼從結構上看，您能有多有效以及在影響定價方面能有多快呢？然後你就很難不注意到了。例如，消費者依然保持著相當低調的態度。我認為這只是市場，但在這個領域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。據我所知，去年我們的價格上漲幅度相當大，而且我們確實抵消了通貨膨脹。今年，在我們的 0 到 2 指導的 1% 中心點中，我們獲得了正價格。因此我們繼續關注定價。與去年同期相比，這一數字肯定要低。因此，從宏觀角度來看，我們的定價能力相當不錯，可以控制通貨膨脹。

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.

但我關注的是更多關於我們如何按客戶、按細分市場、按產品定價的細節，不僅僅是毛價，還有淨價。因此折扣、市場開發基金，所有這些都是總價和淨價之間的事物。在現實微觀層面上是否有機會實現更好的定價？我的直覺是，這裡有一個機會，我會在這個領域投入大量的時間和精力。

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。但在更細微的層面上仍存在著機會。看看我們的定價方式，隨著我們進行分析，我將在接下來的幾個月和幾個季度內了解更多。但我確實相信我們會找到一些機會在定價方面做得更好。

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.

您提到的有關新產品開發的另一點，完全正確。也就是說，隨著我們不斷創新和開發差異化功能，我們應該能夠為即將推出的新產品獲得更好的利潤和更好的定價。因此，當我們重振 NPI 引擎時（我期望這樣做），希望隨著時間的推移，這也能推動價格改善和利潤率提高。

Joseph O'dea, Wells Fargo Securities.

富國證券的約瑟夫‧奧迪亞 (Joseph O’dea)。

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，我只講一個。但比爾，我只是好奇你是否可以稍微詳細說明一下冷靜的作品集評論。我知道今天沒有什麼具體細節，但您能談談完成審查的時間表嗎？然後，當您這樣做時，當您專注於決策時，您要求業務領導者在評估中提出的關鍵指標是什麼？

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.

所以這是個好問題，你看，在工作 90 天裡，我正在努力學習業務，學習，與團隊會面，了解業務中正在發生的事情。現在發生了很多事情，我非常關注這些事情。我還沒有達到任何特定阻塞的程度，我不一定接近那個程度。但這是我們心裡想的事情。我們將認真研究一下。

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，即與競爭對手相比，我們在每個領域如何發展。獲利成長前景如何？我們能否擴大利潤？我們的 NPI 管道是什麼樣的？並且基於我們的競爭對手，我們是否有機會透過更好的執行、更好的營運、推出新產品來改善我們在某些​​領域的定位。

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.

總而言之，我們是一家創新驅動的公司。技術差異化是我們競爭的生命線。因此，我將認真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商品類業務進行比較。因此，除此之外沒有其他特定的視角，但我們會認真研究這個問題，並在明年接下來的幾個季度做出一些結論，因為我們要弄清楚我們應該從事什麼業務，以及我們應該在公司之外關注哪些業務。

Joe Ritchie, Goldman Sachs.

高盛的喬·里奇。

Joe, are you there?

喬，你在那裡嗎？

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，您的電話已接通。請繼續回答您的問題。我們目前無法聽取您的問題。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。請叫里奇先生。

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.

(操作員指示)我們現在將回答瑞穗證券的 Brett Linzey 提出的下一個問題。請繼續回答您的問題。

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

大家早安，歡迎比爾 (Bill)，祝莫尼什 (Monish) 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，我很欣賞你對優先事項的概述。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，您是否認為您擁有內部人力資源、內部激勵結構來推動這些變化，還是您正在尋求第三方的幫助？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，這是一個複雜的問題。許多產品、許多 SKU 遍佈於許多工廠和分銷點。如果你從全球角度來看這個問題，你繪製了所有的資料中心、所有的流程、所有的工廠，它就是一個蜘蛛巢。我的意思是，這裡發生了很多事。我們確實有一支優秀的營運團隊正在認真研究這個問題。我們有外部顧問參與其中，這將需要一些時間。距離現在不是一個季度，而是兩個季度了。我們將繼續認真研究優化網路和流程。所以，我們在高層擁有合適的人才，而且我確實認為我們也有正確的激勵機制和對團隊的激勵。

Nicole DeBlase, Deutsche Bank.

德意志銀行的妮可‧德布拉斯 (Nicole DeBlase)。

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.

是的，謝謝。大家早安，歡迎比爾 (Bill)，感謝莫尼什 (Monish) 的所有幫助。也許比爾，你可以談談員工的反應和參與程度。我想你可能在頭幾個月就進行過一次世界巡迴旅行。所有這些變化聽起來確實令人興奮，我很想聽聽員工對你想做的事情的反應。

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，我認為這裡的員工都很興奮。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。他們希望看到自己在世界上所做的偉大成就以及所開發的新產品得到認可。這就是我今天要向你們傳達的訊息。這就是我要向我們的員工傳達的訊息。

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.

正如我向您解釋過的，我的優先事項是我在市政廳會議上與員工更詳細地解釋過的內容。所以我認為它引起了很好的共鳴。我認為希望它能激勵人們，但同樣，我們這裡有很多堅強的人，他們已經在這裡待了一段時間，他們真的想要有所作為，我對此很有呼籲。所以我認為，到目前為止，反應還不錯，又過了 90 天。

Deane Dray, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Deane Dray。

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 (Bill) 並祝莫尼什 (Monish) 一切順利。在所有不同的營運計劃法案中都有很多令人印象深刻的計劃，但這對我來說卻提出了一個問題：你不可能同時完成所有事情。那麼分類的要素是什麼呢？

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，這不是一個人的獨角戲。談談你的團隊。您正在授權內部人員嗎？你擁有一支顧問隊伍，你需要尋找財務官，那麼組織可以一次處理多少變化呢？是否存在任何元素，我的意思是，很多東西都需要修復，但是否有一種意識，即如何將它們分層，以及變化是否會造成太大的破壞？

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營運來推動成長。我認為這是根本。我以前也經歷過這種事。這是我第一次嘗試這些事情。我能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處理這些不同的問題並專注於其中的一些方面。

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，開始很忙，但我認為我們有合適的團隊來完成它。我認為我們的重點和優先事項是正確的。我們必須對其進行管理，並管理團隊應對所有這些問題的能力，但是是的，我很樂觀。我認為我們將在接下來的討論中分別研究這些部分。我列出了我們想要做的事情的詳細清單，但我們會在年底時確定這些事情的優先順序。

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%.

但最終，如果我們無法實現卓越運營，我們就無法進行投資以實現成長。我想說卓越的營運實際上是一個成長動力。當你運作時，你會準時離開工廠，速度是 80 年代中期，86%，變化百分比是我們第二季的結果。我們應該高於90%。

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.

事實是，當低於 90 時，我們就會失去銷售機會。因此，透過讓我們的營運運作得更好，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，我們可以將其再投資於成長計劃，這就是成長槓桿。所以我認為你必須同時做這兩件事並踩踏板，這就是我計劃要做的。

Laurence Alexander, Jefferies & Company.

勞倫斯·亞歷山大（Laurence Alexander），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.

嗨，早安。這是凱文 (聽不清楚)，代替勞倫斯。所以我只是想知道您是否可以更詳細地介紹一下您對中國需求的看法以及您是否看到了一些復甦的跡象？由於時間原因，我就把它留在那裡了。

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.

感謝您的提問。你看，中國市場約占我們的收入的 10%。我們上半場表現不錯。我們的銷售額在上半年成長了約 13％，其中一部分來自電子產品。如果您看一下本地情況，您會發現該比例約為 1%，因此比較平穩，與其他跨國公司的情況非常相似，甚至可能比許多其他跨國公司在中國的情況要好一些。再說一次，它約占我們業務的 10%，是一個重要的市場，而且我們在今年上半年看到了良好的成長，這主要得益於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.

我們的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，請他發表一些結束語。

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。好吧，感謝大家今天的加入和參與，以及提出深思熟慮的問題。我要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。再次感謝您參加電話會議，並祝福大家有愉快的一天。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，並請您現在斷開您的線路。