3M (MMM) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. The conference will be starting in a few minutes. It is recommended to use a landline phone if you are registering for a question. We thank you for your patience and ask that you please remain on the line. Please Stand By Please Stand By Please Stand By Please Stand By Please Stand By Please Stand By

女士們先生們，謝謝你們的支持。會議將在幾分鐘後開始。如果您要註冊提問，建議使用固定電話。我們感謝您的耐心等待，並請您保持通話。請稍候 請稍候 請稍候 請稍候 請稍候 請稍候 請稍候

Ladies and gentlemen, thank you for standing by. Welcome to the 3M third-quarter earnings conference call. During the conversation, participants will be in the listen only mode. After a, we will conduct a listening -- a question and answer session. This call is being recorded Tuesday, October 22, 2024. I would now like to turn the call over to rooster Milland. -- Bruce Jeremeland.

女士們先生們，謝謝你們的支持。歡迎參加 3M 第三季財報電話會議。在對話過程中，參與者將處於僅聽模式。之後，我們將進行聽力—問答環節。此通話於 2024 年 10 月 22 日星期二進行錄音。 ——布魯斯‧傑瑞梅蘭。

Welcome to our third quarter earnings conference call. With me are Bill Brown and Anurag Maheshwari, our chief financial officer. Bill and Anurag will make formal comments. Then we will take your questions. Please note today's earnings release and presentation are posted on the homepage of our website. Please turn to slide two. Please take a moment to read the statement. During today's conference call, we will make certain predict of that reflect our current views about 3M's future performance and financial results. The statement are based on certain assumptions and expectations of future events that are subject to risk and uncertainties. Item one of our most recent list some of the most important risk factors that could cause results to differ from our predictions. Please note throughout today's presentation we will make references to certain financial measures. Reconciliations of the measures can be found in the attachment today's press release. With that, please turn to slide three. I will hand the call off to Bill.

歡迎參加我們的第三季財報電話會議。和我在一起的還有比爾布朗 (Bill Brown) 和我們的財務長阿努拉格馬赫什瓦里 (Anurag Maheshwari)。比爾和阿努拉格將發表正式評論。然後我們將回答您的問題。請注意，今天的收益發布和簡報發佈在我們網站的主頁上。請翻到幻燈片二。請花一點時間閱讀該聲明。在今天的電話會議上，我們將做出一定的預測，反映我們目前對 3M 未來業績和財務表現的看法。該聲明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。我們最新的項目之一列出了一些可能導致結果與我們的預測不同的最重要的風險因素。請注意，在今天的演示中，我們將提及某些財務指標。這些措施的調節可以在今天的新聞稿附件中找到。接下來，請翻到第三張投影片。我會把電話轉給比爾。

Thank you and good morning. First, I would like to welcome Anurag to his first 3M earnings call. Anurag joined 3M in early September. I have had the pleasure of working with Anurag off and on over the past 20 years and look forward to his leadership at partnership as CFO. Today, we reported strong third-quarter results with non-GABA earnings-per-share of $1.98, up on 1% organic revenue growth.

謝謝你，早安。首先，我歡迎 Anurag 參加他的第一次 3M 財報電話會議。 Anurag 於 9 月初加入 3M。在過去的 20 年裡，我很高興與 Anurag 斷斷續續地合作，並期待他作為財務長在合夥企業中發揮領導作用。今天，我們公佈了強勁的第三季業績，非 GABA 每股收益為 1.98 美元，有機收入成長 1%。

Our overall company margins increased 140 basis points to 23% and 3 -- free cash flow was $1.5 billion with conversion of 141%. We returned $1.1 billion to shareholders during the quarter via dividends and share repurchases. These results extend our strong 2024 performance with non-gap earnings-per-share over the last three quarters up 30% on 1% organic revenue growth. As a result of the team's operational performance and discipline, we raised the bottom end of our earnings guidance by $.20 to a range of $7.20 to $7.30 versus a prior range of seven dollars to $7.30 per share.

我們公司的整體利潤率成長了 140 個基點，達到 23%，3——自由現金流為 15 億美元，轉換率為 141%。本季我們透過股利和股票回購向股東返還 11 億美元。這些業績延續了我們 2024 年的強勁業績，過去三個季度的無缺口每股收益成長了 30%，有機收入成長了 1%。由於團隊的營運績效和紀律，我們將獲利指引的下限提高了 0.20 美元，達到 7.20 美元至 7.30 美元的範圍，而之前的範圍為每股 7 美元至 7.30 美元。

During our earnings call, I described our top three priorities. Number one, driving sustained topline organic growth through reinvigorating innovation and improving commercial excellence. Two, improving operational performance across the enterprise. Three, effectively deploying capital. As I mentioned in July, getting more productivity out of our R&D investments is going to take time, but we are beginning to make progress on R&D effectiveness and efficiency. A lot of our recent efforts have focused on the basic blocking and tackling and improving the fundamentals of our R&D processes.

在我們的財報電話會議上，我描述了我們的三大優先事項。第一，透過重振創新和提高商業卓越性來推動持續的營收有機成長。二是提高整個企業的營運績效。三是有效配置資本。正如我在 7 月所提到的，從研發投資中獲得更高的生產力需要時間，但我們已開始在研發有效性和效率方面取得進展。我們最近的許多努力都集中在基本的阻礙和解決上，並改善了我們研發流程的基礎。

For example, we have taken actions to improve enterprisewide visibility on specific investments in our product of element pipeline and we are driving discipline into product launch calendars and raising accountability for post-launch sales performance. We are fast tracking projects for low risk product line extensions, eliminating non-value added activity from our engineer workload, offloading or outsourcing and ministry of tasks, and increasing pipeline velocity through efforts as simple as reducing time to set up SKU from 100 days on average last year to about 60 days this year. And to address and drive productivity and the product develop a process we are driving -- shifting capital spending within our existing budget to fund upgrades of R&D facilities to allow us to scale rapidly from lab to pilot to manufacturing.

例如，我們已採取行動提高整個企業對元素管道產品特定投資的可見性，並且我們正在將紀律納入產品發布日曆，並提高對發布後銷售業績的問責制。我們正在快速追蹤低風險產品線擴展項目，消除工程師工作量、卸載或外包和任務部門中的非增值活動，並透過像從 100 天開始減少設定 SKU 的時間這樣簡單的努力來提高管道速度去年平均為60 天左右。為了解決和提高生產力，我們正在推動產品開發流程——將現有預算內的資本支出轉移到研發設施的升級上，使我們能夠快速從實驗室擴展到試點再到製造。

Finally, we are shifting about 100 people within R&D to focus on new product development, including those who are rolling off the fast -- PFAS related projects. Such as aerospace, electronics, and semi conductor markets. After a decade-long slide in new product introductions, we have bottomed out and are starting to turn a corner with new product launch is expected to be up about 10% this year, with a further acceleration year. I recognize these are only initial steps on a long journey toward bending the organic growth curve.

最後，我們正在將大約 100 名研發人員轉移到新產品開發上，其中包括那些正在快速進行 PFAS 相關專案的人員。例如航空航太、電子和半導體市場。在新產品推出量經歷了長達十年的下滑之後，我們已經觸底並開始扭轉局面，預計今年新產品推出量將增長約 10%，並且今年將進一步加速。我認識到這些只是彎曲有機成長曲線的漫長旅程的第一步。

In the meantime, we have to improve how we execute at the customer interface. We are working through the details of how we train and incentivize our sales force, price our products, leverage our distribution network, and capture cross sell opportunities. We will share those details as they evolve, but one area where we have seen continued progress is delivering on on time in full to our customers. I know we have lost business and paid fines due to poor delivery performance and I'm encouraged by the steady improvement we are making, ending Q3 at 89%, up five points since the beginning of the year, and 10 points above Q4 of 2022.

同時，我們必須改進在客戶介面上的執行方式。我們正在研究如何培訓和激勵我們的銷售人員、為我們的產品定價、利用我們的分銷網絡以及抓住交叉銷售機會的細節。我們將隨著這些細節的發展而分享這些細節，但我們看到持續進步的一個領域是按時向客戶全面交付。我知道由於交付表現不佳，我們失去了業務並支付了罰款，我對我們正在取得的穩步進步感到鼓舞，第三季度結束時為89%，比年初上升了5 個百分點，比2022 年第四季度高出10 個百分點。

As we push harder, we are getting more visibility on the weak links in the value chain, from performance in factories to suppliers and logistics providers. In our factories, we are looking harder at reliability of our assets and capacity to surge and we have a common metric to measure operating equip deficiency across the major assets in our 38 largest facilities. Utilization on these machines going back to the beginning of the year averages around 50%, short of best in class companies to free of capacity and better respond by optimizing changeovers and approving maintenance practices.

隨著我們更加努力，我們對價值鏈中的薄弱環節有了更多的了解，從工廠的績效到供應商和物流提供者。在我們的工廠中，我們更加重視資產的可靠性和產能的激增，並且我們有一個共同的指標來衡量我們 38 個最大工廠的主要資產的營運設備缺陷。自年初以來，這些機器的利用率平均約為 50%，低於一流公司的水平，無法透過優化轉換和批准維護實踐來釋放產能並更好地做出回應。

When it comes to our suppliers and contract many factual errors, we are implementing rigorous standards for on-time performance, which has been in the low 60% range and is now in the low 70's. A common theme in these discussions is the need for higher demand visibility and forecast accuracy, which has been running in the mid-60% range, 10 to 15 points below expectation and well below best in class companies.

當涉及到我們的供應商和合約中的許多事實錯誤時，我們正在實施嚴格的準時績效標準，該標準一直處於 60% 的低水平範圍內，現在處於 70% 的低水平範圍內。這些討論的一個共同主題是需要更高的需求可見度和預測準確度，其預測準確度一直在 60% 左右，比預期低 10 到 15 個點，遠低於一流公司。

We kicked off a project to redesign our forecasting process and we are in the early stages of a 15 week sprints to test and tune our demand plan for two large divisions using different analytical tools. Initial results for the new model show a lot of promise in improving forecast accuracy, which will allow us to level up our factories, reduce inventory through the value chain, and improve on-time delivery to customers.

我們啟動了一個重新設計預測流程的項目，目前正處於為期 15 週衝刺的早期階段，旨在使用不同的分析工具測試和調整兩個大型部門的需求計劃。新模型的初步結果顯示出在提高預測準確性方面的巨大希望，這將使我們能夠提升工廠水平，減少整個價值鏈的庫存，並提高對客戶的準時交付。

As I mentioned in July, this is a back to basics focus on fundamental approach that lays the groundwork for a more holistic look at network complexity. While we have closed facilities in the past and have a few more in flight today, getting maturity in our metric will allow us to take a fresh look at consolidation opportunities at the site level over time. A critical enabler of our agenda is the depth and capacity of our operations leadership team. We continue to onboard new talent, particularly in quality materials planning, and continuous improvement. These efforts are part of a broad operational transformation , the foundation of which is a safety first culture. While our injury rate has improved versus last year, it is not where we want it to be. Early this month, we launched a companywide campaign called journey to zero that engages every employee in our drive toward an injury free workplace.

正如我在 7 月提到的，這是對基本方法的回歸基礎，為更全面地看待網路複雜性奠定了基礎。雖然我們過去已經關閉了一些設施，並且今天還有一些設施正在運行中，但隨著時間的推移，我們指標的成熟度將使我們能夠重新審視站點層面的整合機會。我們議程的關鍵推動因素是我們營運領導團隊的深度和能力。我們持續招募新人才，特別是在優質材料規劃和持續改進方面。這些努力是廣泛營運轉型的一部分，其基礎是安全第一文化。雖然我們的受傷率比去年有所改善，但還沒有達到我們想要的水平。本月初，我們發起了一項名為「零傷害之旅」的全公司活動，讓每位員工都參與實現無傷害工作場所的努力。

Turning to capital deployment, we have generated $3.5 billion of adjusted free cash flow after investing 1.7 billion dollars in R&D and cap X. We have returned $2.7 billion to shareholders, including share repurchases. Our balance sheet remains strong and we are actually reviewing our portfolio with a few small businesses now in the early stages of a sale process. Overall, we are making progress on the three priorities I have laid out and I'm encouraged by the energy and desire of our team to win by delivering for our customers and creating value for shareholders. With that, let me turn it over to Anurag to provide more details on the quarter and our updated guidance.

談到資本配置，在投資 17 億美元用於研發和 X 上限之後，我們產生了 35 億美元的調整後自由現金流。我們的資產負債表仍然強勁，我們實際上正在審查我們與一些處於銷售過程早期階段的小型企業的投資組合。總體而言，我們在我列出的三個優先事項上取得了進展，我們團隊透過為客戶提供服務並為股東創造價值來取勝的精力和願望讓我深受鼓舞。接下來，讓我將其轉交給 Anurag，以提供有關本季度和我們更新的指導的更多詳細資訊。

Thank you. Starting with third-quarter performance, total adjusted sales was $6.1 billion with organic growth up 2% excluding product portfolio initiatives. These results reflect trends that will largely align with expectations, including makes industrial markets, strong growth in electronics, decline in automotive build rates, and continued softness in consumer retail discretionary spending.

謝謝。從第三季業績開始，調整後總銷售額為 61 億美元，不包括產品組合計畫的有機成長達 2%。這些結果反映了與預期基本一致的趨勢，包括工業市場、電子產品的強勁成長、汽車建造率的下降以及消費者零售可自由支配支出的持續疲軟。

Looking geographically at organic growth, it was led by Asia-Pacific up mid single digits. The U.S. was flat, which strengthened commercial branding and transportation, offset by personal safety as it benefited from significant supply recovery last year. The MEA was down due to the decline in global car and light truck builds.

從地理來看，有機成長以亞太地區為首，實現了中個位數成長。美國持平，這加強了商業品牌和運輸，但由於受益於去年供應的大幅復甦而被人身安全所抵消。由於全球汽車和輕型卡車產量下降，MEA 下降。

Adjusted operating margins expanded 140 basis points, driven by benefits from improved organic growth and restructuring. This strong operating performance along with benefits from below the line items resulted in adjusted EPS of $1.98. Turning to revenue by business group on slide five, safety and industrial sales were 2.8 billion dollars, with organic growth of 0.9%. The growth was primarily driven by the industrial division, with some strength for electronic devices.

受有機成長和重組改善的推動，調整後營業利潤率擴大了 140 個基點。強勁的經營業績以及線下專案帶來的收益導致調整後每股收益為 1.98 美元。轉向第五投影片中按業務組劃分的收入，安全和工業銷售額為 28 億美元，有機成長 0.9%。這一增長主要是由工業部門推動的，其中電子設備部門具有一定的實力。

In addition, we saw growth in electrical markets while balance of the divisions was down slightly due to ongoing work of softness. Transportation and electronics adjusted sales were $1.9 billion, up 2% organically. Our electronics business delivered high single digit organic growth as consumer electronics customers ran production volumes ahead of the upcoming holiday season.

此外，我們看到電氣市場的成長，而由於持續的疲軟工作，各部門的平衡略有下降。運輸和電子產品調整後銷售額為 19 億美元，有機成長 2%。由於消費性電子產品客戶在即將到來的假期季節之前實現了生產量，我們的電子業務實現了高個位數的有機成長。

Automotive and aerospace growth was down mid single digits in the third quarter. The business declined in line with global car and light truck builds while aerospace delivered strong growth driven by bonding. There was a 2% decline in global car and light truck build rates. We continue to gain penetration with adhesives, tapes, display frames, and electronic materials on multiple new auto platforms.

第三季汽車和航空航太成長下降至個位數。該業務隨著全球汽車和輕型卡車製造的成長而下降，而航空航太業務則在黏合的推動下實現了強勁成長。全球轎車和輕型卡車製造率下降了 2%。我們繼續在多個新汽車平台上滲透黏合劑、膠帶、展示架和電子材料。

Looking at the rest of the transportation and electronics, advanced materials grew high single digits, with demand for light weighting applications and transportation and oil and gas markets. Commercial branding and transportation was up low single digits, driven by demand for graphics and payment markings. Finally, the consumer business sales were $1.3 billion. Getting sales declined 0.7%, including a 2.3 percent headwind from portfolio prioritize Asian.

看看其他運輸和電子領域，隨著輕量化應用以及運輸和石油和天然氣市場的需求，先進材料實現了高個位數成長。受圖形和支付標記需求的推動，商業品牌和運輸增長了低個位數。最後，消費者業務銷售額為13億美元。銷售額下降 0.7%，其中亞洲投資組合帶來 2.3% 的阻力。

Home-improvement delivered mid single digit growth driven by new products and a command portfolio introduced for the back-to-school and holiday seasons. The remaining divisions in the consumer business declined due to portfolio prioritize Asian actions as well as retail customers continuing to be price-sensitive and value focused. Through the course of the year, the consumer business has improved and we expect the trend to continue in the fourth quarter. Turning to slide six, on an adjusted basis we delivered Q3 operating margins of 23%, up 140 basis points and earnings-per-share of an increase of $.30.

在新產品以及為返校季和假期推出的命令產品組合的推動下，家居裝修實現了中等個位數的增長。由於投資組合優先考慮亞洲行動以及零售客戶繼續對價格敏感和注重價值，消費者業務的其餘部門有所下降。在這一年中，消費者業務有所改善，我們預計第四季度趨勢將持續下去。轉向投影片 6，調整後的第三季營運利潤率為 23%，成長 140 個基點，每股收益成長 0.30 美元。

Operational performance, including organic growth and ongoing benefits from productivity and restructuring, contributed 160 basis points to margins while foreign-currency was a headwind of 20 basis points. These items, combined with acquisition, contributed $.14 to earnings. The remaining $.16 of growth was driven by last year's high tax along with benefits from net interest and a lower share count. Turning to cash, we generated a solid adjusted free cash flow of $1.3 billion driven by strong income generation and positive working capital flows while continuing to invest capital to support growth and sustainability.

營運績效（包括自然成長以及生產力和重組帶來的持續效益）為利潤率貢獻了 160 個基點，而外幣匯率則是 20 個基點的阻力。這些項目與收購相結合，為收益貢獻了 0.14 美元。剩下的 0.16 美元增長是由去年的高稅收以及淨利息和較少股票數量帶來的好處推動的。談到現金，在強勁的創收和積極的營運資本流動的推動下，我們產生了 13 億美元的穩定調整後自由現金流，同時繼續投資資本以支持成長和永續發展。

Conversion for the quarter wasn't hundred 41%. We have had strong year to date operating performance. We have expanded margin 380 basis points. We grew EPS by 30% on 1% organic growth and generated $3.5 billion of free cash flow. Based on this performance, we are updating our 2020 for guidance on slide seven. We expect a full year adjusted organic growth to be approximately 1%, with business group estimates unchanged and safety and industrial to the single digits.

該季度的轉換率不到 41%。年初至今，我們的經營業績強勁。我們將利潤率擴大了 380 個基點。我們的每股盈餘 (EPS) 成長了 30%，有機成長 1%，並產生了 35 億美元的自由現金流。根據這一表現，我們正在更新 2020 年幻燈片 7 的指導。我們預計全年調整後有機成長約為 1%，業務部門預測不變，安全和工業成長為個位數。

Transportation and electronics up low single digits and consumer down low single digits. The adjusted operating margins are expected to be up 250 to 275 basis points versus the prior range driven by continued momentum from productivity. The operational benefit combined with lower net interest expense gives us confidence to raise the -- and offer EPS guidance to a range of $7.30. Finally, our expectation is we will continue to deliver robust cash flow with strong working capital performance in the fourth quarter.

運輸和電子產品成長低個位數，消費下降低個位數。在生產力持續成長的推動下，調整後的營業利潤率預計將比先前的範圍提高 250 至 275 個基點。營運效益加上較低的淨利息支出使我們有信心將每股盈餘指引提高至 7.30 美元。最後，我們的預期是我們將在第四季度繼續提供強勁的現金流和強勁的營運資本表現。

With year-to-date conversion at 102%, we expect the adjusted free cash flow conversion performance will be 100% plus for the full year. Before return to Q&A, I want to take a moment to thank the 3M team for the warm welcome. I'm excited for the opportunity ahead of us and look forward to working with the team as we execute priorities Bill has laid out. With that, let's open the call for questions.

由於年初至今的轉換率為 102%，我們預計全年調整後的自由現金流轉換績效將達到 100% 以上。在回到問答之前，我想花點時間感謝 3M 團隊的熱情歡迎。我對擺在我們面前的機會感到興奮，並期待與團隊合作，執行比爾制定的優先事項。接下來，讓我們開始提問。

Thank you. If you would like to register a question, please press star one on your tell phone -- telephone keypad. If you are using a speakerphone, please lift your handset before entering your request. Please limit participation to one question and one follow-up. Our first question comes from Scott Davis.

謝謝。如果您想登記問題，請按您的電話 - 電話鍵盤上的星號一。如果您使用免持電話，請在輸入請求之前拿起聽筒。請將參與限制為一個問題和一項後續行動。我們的第一個問題來自斯科特戴維斯。

Good morning, everybody. Congrats to all on a good start here. I wanted to talk about this operational transformation. It seems like a heavy lift, but obviously you are making progress. Last quarter, he spent time on supply chain and prepared remarks, not as much this quarter. How big an opportunity -- is that step two or three down the road in getting the supply chain reoriented? How big an opportunity do you think that is now that you have had more time in the seat?

大家早安。恭喜大家在這裡有了一個好的開始。我想談談這種營運轉型。這看起來像是一項艱鉅的任務，但顯然你正在取得進展。上個季度，他在供應鏈上花了時間並準備了講話，而本季則沒有那麼多。這是一個多大的機會──是重新調整供應鏈的第二步還是第三步？現在你有更多的時間坐在座位上，你認為這是一個多大的機會？

We continue to make good progress across all the elements . A big piece of it is a supply chain, so that is a high degree of focus. We are looking to drive 2% net productivity across all those elements, including in supply chain. We have about 25,000 direct suppliers, including 4000 contract manufacturers.

我們繼續在所有方面取得良好進展。其中很大一部分是供應鏈，因此受到高度關注。我們希望將所有這些要素（包括供應鏈）的淨生產力提高 2%。我們擁有約 25,000 家直接供應商，其中包括 4000 家合約製造商。

Our teams are working hard to consolidate that and we continue to do a good job on this. We are at the front of what I would say to be a long journey. I think we get a lot of value out of basic negotiations. I think we have more opportunity as we think about value engineering, a relatively small component of overall supply savings, so teams are working hard on this. If you drive and get 2% net, you are talking $650 million worth of net productivity.

我們的團隊正在努力鞏固這一點，我們將繼續做好這方面的工作。我們正處於我所說的漫長旅程的前面。我認為我們從基本談判中獲得了很多價值。我認為，當我們考慮價值工程時，我們有更多的機會，價值工程是整體供應節省中相對較小的組成部分，因此團隊正在努力解決這個問題。如果您開車並獲得 2% 的淨生產力，那麼您所說的淨生產力就價值 6.5 億美元。

There is a lot of value there that we can capture year-over-year. I spit a little time talking about one of the key levers because I think it is a growth and operations lever, delivering on-time in full. We are doing a good job in our factories. The team is performing well, but it is pointing out opportunities to drive better supplier performance and we are focused on that. We have seen some improvements over last year, I think a lot more to do in terms of driving the full value chain performance including with our supply base.

我們可以逐年捕捉到很多價值。我花了一點時間談論其中一個關鍵槓桿，因為我認為它是一個成長和營運槓桿，可以按時全額交付。我們的工廠做得很好。團隊表現良好，但它指出了提高供應商績效的機會，我們專注於此。與去年相比，我們看到了一些進步，我認為在推動整個價值鏈績效（包括我們的供應基地）方面還有很多工作要做。

Please stand by Component? And can you really young but E&O to where you want to get this quickly? It's a good question, Scott. I think was before we get to the comp plan at the what's going to be more important for us is to make sure we have very clear objectives across the management team, deepen these organizations. So we are and what we're accountable to achieve to shareowners into one.

請支援組件？你真的很年輕，但 E&O 能快速實現你想要的目標嗎？這是個好問題，史考特。我認為在我們制定薪酬計畫之前，對我們來說更重要的是確保我們的管理團隊有非常明確的目標，深化這些組織。因此，我們與我們對股東所負的責任合而為一。

Another thing that's step one. I mean, I do think we have an opportunity to get a little more crisp on our object offsetting price. But of course, the back into that is called billions. I think you will see some adjustments in our 25 comp plan. We are out speaking with shareowners about that based on the results we had earlier this year, our AGM.

另一件事是第一步。我的意思是，我確實認為我們有機會更清晰地了解我們的物件抵消價格。但當然，後面的數字被稱為數十億。我認為您會看到我們的 25 人補償計劃進行了一些調整。我們正在根據今年早些時候的年度股東大會結果與股東討論此事。

But but yes, we'll continue to look at our complaints, not just IT executives, but as it flows into the organization and importantly, our top five and 6,000 salespeople out there will continue to look at, do we have the right incentive stock, sure, to drive the right behaviors across the full 60,000 plus people in the company? So, Scott, there's going to change that we made.

但是，是的，我們將繼續關注我們的投訴，不僅僅是IT 高管，而且當它流入組織時，更重要的是，我們的前5 名和6,000 名銷售人員將繼續關注，我們是否有合適的激勵股票當然，要在公司 6 萬多名員工中推動正確的行為？所以，斯科特，我們將做出改變。

We'll we'll talk more about that as a as they come come to fruition in the coming months. We'll go next now to Andrew Obin with Bank of America. I guess.

當它們在未來幾個月取得成果時，我們將更多地討論這一點。接下來我們請美國銀行的安德魯‧奧賓 (Andrew Obin) 發言。我猜。

Good morning. I guess I'll ask a question a follow-up on the comp trends. Just Bill, what are your views on centralization, M5, 3M? I know Mike push for a lot of control provision, which was a departure from what our India fully in-house data, which around the company and very, very different wise way. So just would love to hear how you're operating philosophy has evolved since you joined the Court one and part two. We're just getting a lot of questions on insurance recovery related to keep us on comp.

早安.我想我會問一個關於比較趨勢的後續問題。 Bill，您對中心化、M5、3M 有何看法？我知道麥克推動了很多控制條款，這與我們印度完全內部的數據背道而馳，這在公司周圍是非常非常不同的明智方式。因此，我很想聽聽自從您加入第一法院和第二法院以來，您的經營理念是如何演變的。我們剛剛收到很多有關保險賠償的問題，這些問題與我們保持補償有關。

But ours, particularly given the neuro side of carrier or they don't have that perhaps they could indicate they could recover returns in excess of their costs. These are public statements. So any sort of publicly available updates on where you are in the process on insurance recovery. Helpful. Thanks so much and congratulations on a good quarter, grading just Thanks.

但我們的，特別是考慮到載體的神經方面，或者他們沒有，也許他們可以表明他們可以收回超過成本的回報。這些是公開聲明。因此，有關您在保險賠償過程中的進展情況的任何公開更新。有幫助。非常感謝，並祝賀一個好的季度，評分只是謝謝。

Thanks for the questions. I mean, first of all, I think about 2.5 years ago, Mike did consult to-date all of our factories and supply change under a current leader under Peter given I think it was the right thing to do now. It allows us to look across 110 plus-or-minus factories and to an 800 distribution centers are really look at performance performance metrics, how they compare with one another.

感謝您的提問。我的意思是，首先，我認為大約 2.5 年前，麥克確實在彼得領導下的現任領導者的領導下諮詢了迄今為止我們所有的工廠和供應變化，因為我認為現在這樣做是正確的。它使我們能夠查看 110 個正負值工廠和 800 個配送中心，真正查看性能指標，以及它們如何相互比較。

It's a network they flow together. So artificially separating them that buy a business group or by geography did not make a lot of sense. And so you'll get the power of the whole by looking at all operations together. So if you call it centralization, I call that global coordination and it was smart to do that and we're reaping the benefits of that.

這是他們共同流動的網絡。因此，人為地將購買商業集團或按地理位置分開的人沒有多大意義。因此，透過一起查看所有操作，您將獲得整體的力量。因此，如果你稱之為集中化，我稱之為全球協調，這樣做是明智的，我們正在從中受益。

And I think going forward, the value will be able to get out of operations is because of that, that operational, that organizational change. So so I think it was the right step. I think the move to globally coordinating business unit upon the business and we run globally some we run regionally. But all within those three broad business route. I also think that was good despite some of it adjustments in how we structure the BGs over time, perhaps within within the three business groups who are there certain geographies standout that we're really focusing heavily on and we'll want to put a little more.

我認為，展望未來，價值將能夠從營運中體現出來，因為營運、組織變革。所以我認為這是正確的一步。我認為轉向全球協調業務部門的業務是我們在全球範圍內運營的一些業務，我們在區域內運營的業務部門。但都在這三大業務路線之內。我也認為這很好，儘管隨著時間的推移，我們對BG 的構建方式進行了一些調整，也許在三個業務集團內，這些業務集團中的某些地區是我們真正重點關注的突出地區，我們希望投入一點更多的。

But generally, I think Mike was taking the right steps and particularly in the supply chain area. So so that's on that piece of it. Sort of point of centralization on insurance recoveries. Just you'll see the Sydney Q. In Q3, we covered $54 million in insurance recoveries between combat arms and public water supplier.

但總的來說，我認為麥克採取了正確的步驟，特別是在供應鏈領域。所以這就是那一部分。有點像是保險賠償的集中點。您將看到雪梨 Q。

Year to date, it's over $175 million and recovery efforts. Can you I know it's top of mind given what other other folks are talking about were active in with more tend to ramp up efforts in the coming days and weeks. And we do expect our insurance insurers to honor their policy obligations to us in full.

今年迄今為止，恢復工作已花費超過 1.75 億美元。我能知道，考慮到其他人正在談論的事情，以及更多人傾向於在未來幾天和幾週內加大努力，這是首要考慮的事情。我們確實希望我們的保險保險公司能夠充分履行對我們的保單義務。

The difference with others is our liability that we said before, there's quite a bit higher than our insurance, a total insurance value. So it's a little bit different than others, but we're ramping up our efforts and we're starting to recover and we will recover more over time. We'll update investors each quarter and through our Qs as we recover more on insurance.

和別人不同的是我們的責任，我們之前說過，比我們的保險高出不少，一個總保險價值。所以這與其他人有點不同，但我們正在加大努力，我們正在開始恢復，隨著時間的推移，我們會恢復得更多。隨著我們透過保險獲得更多賠償，我們將每季並透過 Q 向投資者通報最新情況。

Thanks very much. You bet. We'll go next now to Nigel Coe with Wolfe Research.

非常感謝。你打賭。接下來我們將請教沃爾夫研究中心的奈傑爾‧科 (Nigel Coe)。

Thanks. Good morning, and I'm Bill for the updates. If there's a very helpful. I'm not sure if I just wanted to could you maybe clarify what the total coverage would be from a parts perspective? I understand that your work on rapidly recoveries that. But my first question is really around the of the two points proclivity.

謝謝。早安，我是比爾，我負責更新最新消息。如果有的話非常有幫助。我不確定我是否只是想請問您能否從零件的角度澄清總覆蓋範圍是多少？我知道你的工作很快就恢復了這一點。但我的第一個問題其實是圍繞著兩點傾向的。

You've got a lot of initiatives and play here that the supply chain rationalization, Otis targets, improvements, OE improvements and a lot of things as well. Any sense of what's more important hearing or what the supply chain driving the bulk of that two points from the next two or three years? I mean, any sense there? And do we need some heavy lift restructuring to achieve those targets?

您在這裡有很多舉措和發揮作用，包括供應鏈合理化、奧的斯目標、改進、OE 改進等等。您是否知道什麼是更重要的聽證會，或者供應鏈在未來兩三年內推動這兩點的大部分？我的意思是，有什麼意義嗎？我們是否需要進行一些重大重組來實現這些目標？

So Thank thanks for the question, Nigel. The I don't think I can say much more on the insurance recoveries or how much we're getting. I mean, I other than what we captured to date. So I think we'll update you on that as we go. We expect that to ramp a bit better.

謝謝你的提問，奈傑爾。我想我不能對保險賠償或我們得到的賠償說得更多。我的意思是，除了我們迄今為止捕獲的內容之外。所以我想我們會及時向您通報最新情況。我們預計情況會好一些。

But look, when I when I step back and you look at and $13 billion with the cost of goods, half of that is going to be is supply chain. So you'd expect new of the bigger parts of our productivity is going to come out of supply chain. We have seen restructuring benefits flow through on our factories. That is also a fact we continue to drive lean activities in our factories.

但是，當我退後一步，看看 130 億美元的商品成本時，其中一半將是供應鏈。因此，你會期望我們的生產力的更大部分中的新部分將來自供應鏈。我們已經看到重組帶來的好處流向了我們的工廠。這也是我們繼續在工廠推動精實活動的事實。

And you're seeing you there being production lean operations across our factory network. We're seeing benefits in our transportation costs and logistics expense as were our distribution centers. Last time I spoke quite a bit about the amount of waste we generate in our company. It's or yield loss. How we want to characterize it as 5% of cost to goods was quite substantial.

您會看到我們的工廠網路正在進行精益生產運作。我們看到了運輸成本和物流費用以及配送中心的優勢。上次我談到了我們公司產生的廢棄物量。這是產量損失。我們如何將其描述為商品成本的 5% 是相當可觀的。

We are getting at that. You're not going to get big big dollars every year. You get it in tens of millions in chunks over time, but we're at it. We're running Kaizen events continuously to go get it. We more than doubled the number of Kaizen events this year overlap, and we expect that to continue going into next year.

我們正在解決這個問題。你不會每年都賺大錢。隨著時間的推移，你會得到數以千萬計的數據，但我們正在努力。我們不斷舉辦 Kaizen 活動來實現這一目標。今年我們重疊的 Kaizen 活動數量增加了一倍多，我們預計這種情況將持續到明年。

So all of these by that net productivity gains are at we're pushing hard. I would say, stepping back, the biggest part is going to come out of the biggest part of the cost base, which is supply chain.

因此，我們正在努力推動所有這些淨生產率的提高。我想說，退一步來說，最大的部分將來自成本基礎的最大部分，也就是供應鏈。

Okay. That's helpful. And then maybe on our outcome, congratulations on the new role. I'm just wondering if you could maybe go a bit more color on 4Q. The fact month inorganic growth very much on trend, but it looks like the 4Q margins come in about 25% at the high end, quite a big step down Q-over-Q. I just wanted to make sure that's the right math. And any below line color would be helpful.

好的。這很有幫助。然後也許就我們的成果而言，祝賀我們擔任新角色。我只是想知道你是否可以在 4Q 上多一點顏色。事實上，本月的無機成長非常符合趨勢，但看起來第四季的利潤率約為 25%，處於高端，比上一季下降了相當大的幅度。我只是想確保這是正確的數學。任何低於線條的顏色都會有幫助。

Great. Thanks a lot of noise for I think you covered it, but Q4 margins are pretty much in line with what we expected. Sequentially. Q4 has been lighter than Q3 margins by about 300 to 350 basis points due to seasonality, which translates into lower sequential revenue of about $200 million lower and absorption in the factories, unit shutdowns, inventory management and timing of costs and investments. So overall, it's pretty much in line with what we expected.

偉大的。感謝很多噪音，我認為你已經涵蓋了它，但第四季度的利潤率幾乎符合我們的預期。依次。由於季節性原因，第四季的利潤率比第三季低約300 至350 個基點，這意味著連續收入下降約2 億美元，以及工廠吸收、單位關閉、庫存管理以及成本和投資的時間安排。所以總的來說，它與我們的預期非常一致。

But if you're going to take a step back, we raised the bottom end of the guide by $0.2 at the midpoint by Tencent. And that is largely because of a focus on productivity seen good, good, really good problem. That plus the share repo benefits of share repo and the higher cash flow generation, which is leading to a higher interest income on lower net interest expense. So putting all of that together are making progress across all these areas. And Q4 pretty much.

但如果你要退後一步，騰訊將指南的底端上調了 0.2 美元。這很大程度是因為對生產力的關注被視為好、好、非常好的問題。再加上股票回購的股票回購收益和更高的現金流量產生，這導致在較低的淨利息支出的情況下獲得更高的利息收入。因此，將所有這些放在一起正在所有這些領域取得進展。第四季也差不多。

Okay. Vertical Research Partners.

好的。垂直研究合作夥伴。

Good morning, everyone, and welcome aboard our drug. I just want to come back a little bit in the neighborhood of some of these earlier questions of predominantly. I just wanted to get a sense of the fact that we're kind of at the tail end of the prior restructuring that you did 165 million of spending in the first half and had something like one and the go in the second half.

大家早上好，歡迎搭乘我們的藥物。我只是想稍微回顧一下之前的一些主要問題。我只是想了解這樣一個事實：我們正處於先前重組的尾聲，上半年支出了 1.65 億美元，下半年支出類似。

I'm trying to get still on track. And then Bill, of this very numerous and granular things that you're laying out here. Are we seeing much benefit from that in 2024? Or is this really sort of laying the groundwork for 2025? And a lot of the margin expansion in 2024 is really the underlying prior restructuring? Agf?

我正在努力保持在正軌上。然後是比爾，您在這裡列出的這些非常多且細緻的事情。 2024 年我們會從中受益嗎？或者這真的是在為 2025 年奠定基礎嗎？ 2024 年的許多利潤擴張真的是先前重組的基礎嗎？阿格夫？

Good questions. Maybe first on our restructuring, we are on track of your number, our Rite Aid one, 65 in the front half and about one 10 or so in the back half to the guidance. So to 75 about where we're at, and there's a little bit more that will tail into next year to complete the program.

好問題。也許首先是關於我們的重組，我們正在追蹤你的數字，我們的 Rite Aid 一個，前半部分有 65 個，後半部分有大約 10 個左右，符合指導。所以到 75 就是我們現在的情況，還有更多的事情需要到明年才能完成該計劃。

And yes, some of the gross margin and net margin improvements this year coming from restructuring coming from a lot of productivity programs that headlight some somewhat of a ramping up and have more focus and effort in the last five or six.

是的，今年的毛利率和淨利潤率的一些改善來自於許多生產力計劃的重組，這些計劃在過去五六年中取得了一定程度的提升，並且更加關注和努力。

But a lot of these things are going to be realized over time. This is I don't know, football metaphor is a couple of yards in a pilot dusted, lots of ways to get rid of ground game going on operations excellence. It's a multi-quarter, multi-year journey. So the way I look at this, I think we're still Jeff in the early innings of 18 becoming operation Finally, excellent.

但隨著時間的推移，其中許多事情都會被實現。這是我不知道的，足球比喻是在飛行員的幾碼內塵土飛揚，有很多方法可以擺脫地面比賽的卓越運作。這是一個跨季度、跨年的旅程。所以我看待這個問題的方式，我認為我們仍然是傑夫在第 18 局的前幾局成為操作最後，非常好。

And I think the bulk of the opportunities are ahead of us, which is why I think as we look out the next one to three years, we should continue to see margin growth coming out of a lot of what's happening across our factory network. There's a lot of levers to pull. There is no big winners, no big hitters here that drove that drive a big one-time or at a particular quarter, but it's getting better at all of these things every quarter, quarter after quarter.

我認為大部分機會就在我們面前，這就是為什麼我認為，當我們展望未來一到三年時，我們應該繼續看到我們工廠網路中發生的許多事情帶來利潤成長。有很多槓桿可以拉動。這裡沒有大贏家，也沒有一次性或在特定季度取得巨大成功的大人物，但每個季度、一個季度又一個季度，它在所有這些事情上都在進步。

And then extending that sort of philosophy on operational excellence across the rest of the there's no reason why being good and reducing waste and improving throughput doesn't extend to how we run R&D, how you run a legal function finance. And I think when you do a cross-sell across the whole enterprise, you really start to become a much better company. I think between now and then we've got a lot of room to go in a lot of opportunity ahead of us.

然後將這種關於卓越營運的理念擴展到其他領域，沒有理由不將優秀、減少浪費和提高吞吐量延伸到我們如何運作研發、如何運作法律職能財務方面。我認為，當你在整個企業中進行交叉銷售時，你真的開始成為一家更好的公司。我認為從現在到那時我們還有很大的空間可以利用，前方有很多機會。

Right. Understood. And then just thinking about kind of a capital deployment question. Stepped up and buy back a bit in the quarter at all, in spite of writing a size ability to check. How should we think about just managing all kind of the outflow of cash on repo and or dividend against the backdrop of sort of the schedule of liability payments?

正確的。明白了。然後只是考慮資本部署問題。儘管寫了一個尺寸能力來檢查，但在本季度還是加緊回購了一點。在某種負債支付時間表的背景下，我們應該如何考慮管理回購和/或股利的各種現金流出？

I mean, maybe it's kind of a question about what's the comfort level on minimum cash or something like that as your operating going forward? So I'll start. And as you have another alternative on-drug is the new CFO to offer his thoughts because I know you've been putting a lot of that. But yes, I mean, we did step up here in Q three on repurchases. Debt about selling, you know, it's $1.1 billion year to date. Liquid generating good cash flow would be on. We don't see on the horizon going out through next year.

我的意思是，也許這是一個關於最低現金或類似的東西在您未來的運營中的舒適度是多少的問題？那我就開始吧。當你有另一個藥物替代方案時，新任財務長將提出他的想法，因為我知道你已經投入了很多。但是，是的，我的意思是，我們確實在第三季加強了回購。你知道，今年迄今為止，有關出售的債務已達 11 億美元。產生良好現金流的液體將會開啟。我們看不到明年的情況。

You'll big liability payments that are already on our balance sheet. So we've got an opportunity to deploy capital. I think we were smart and doing that here in. We've got capacity. We ended Q3 with a pretty hefty cash balance. Your leverage ratios remain pretty attractive. We've got an open authorization from the Board. So look, we took advantage that here in the third quarter. We've got more capacity to do more. And so I feel pretty good about where we stand today. But maybe on a rugged, the new CFO can comment on his thoughts on just the strength of the balance sheet.

您將承擔已經在我們的資產負債表上的巨額負債付款。所以我們有機會部署資本。我認為我們很聰明，在這裡這樣做了。我們在第三季結束時擁有相當可觀的現金餘額。您的槓桿比率仍然相當有吸引力。我們已獲得董事會的公開授權。所以看，我們在第三季就利用了這一點。我們有更多的能力去做更多的事情。所以我對我們今天的處境感到非常滿意。但也許在崎嶇不平的情況下，新任財務長可以僅就資產負債表的實力發表評論。

Sure. I really believe that our capital structure is actually solid from a cash balance leverage calculation and optionality perspective. As Bill mentioned, we have a very hefty good cash balance was $7.3 billion, which is more than two weeks of the working capital requirements of the business on leverage.

當然。我真的相信，從現金餘額槓桿計算和選擇性角度來看，我們的資本結構其實是穩固的。正如比爾所提到的，我們擁有 73 億美元的大量現金餘額，這超過了該公司兩週多的槓桿營運資金要求。

It was a net leverage of 0.8 x at the end of the third quarter. And more importantly, maintaining a strong investment grade rating with ratings of A. three or A minus. And as you've seen through the quarter in the course of the year, the cash flow generation has been robust. For the first nine months, we generated $3.5 billion of cash flow, and that's after investing 1.7 billion on R&D and CapEx.

第三季末的淨槓桿率為 0.8 倍。更重要的是，保持 A.3 或 A- 的強勁投資評級。正如您在一年中的各個季度所看到的那樣，現金流的產生一直很強勁。前 9 個月，我們產生了 35 億美元的現金流，這是在研發和資本支出上投資 17 億美元之後的結果。

And we do expect the news to come back. Gaap earnings grow. We make progress in working capital, especially in the area of inventory. This will increase our cash flow and keep a conversion higher than 100%. So we have optionality in terms of the 19.9% stake console, Winton and any other future portfolio reshaping we do.

我們確實希望消息能回來。蓋普收益成長。我們在營運資本方面取得了進展，特別是在庫存領域。這將增加我們的現金流並使轉換率保持在 100% 以上。因此，我們可以選擇 19.9% 的股權控制台、元盛以及我們所做的任何其他未來投資組合重塑。

So putting all of that together, it's a strong capital structure. We have optionality, flexibility to invest in the business to drive growth and also to return capital to shareholders. So no, that's an active discussion we're having and will probably come more about it, talk more about it over the next few months.

因此，將所有這些放在一起，就形成了一個強大的資本結構。我們擁有選擇性、靈活性來投資業務以推動成長並向股東返還資本。所以不，這是我們正在進行的積極討論，並且可能會在接下來的幾個月內更多地討論它。

Thanks. Good morning and welcome on our ag. And maybe Bill, a lot of very good color on the specific sort of tools around driving operational excellence, but maybe trying to tie it together. I think am I conference for about six weeks ago?

謝謝。早上好，歡迎來到我們的網站。也許比爾對推動卓越營運的特定類型的工具有很多非常好的看法，但也許試圖將它們結合在一起。我想我大約六週前就開過會議了？

So you talked about getting gross margins for 3M into the high 40s right now. You sort of 42 or so rate, including some charges. So it is the right way to think about the medium term, maybe sort of four or 500 points of crushing uplift on the sort of total enterprise level and then operating expense inclusive of SG&A and that sort of staying relatively stable in the low 20s as a share of sales as you sort of squeeze out more efficiency and returns from the R&D, Italy.

您談到現在要將 3M 的毛利率提高到 40 左右。你的價格大概是42左右，包含一些費用。因此，這是考慮中期的正確方法，也許企業總體水平會大幅提升 4 或 500 個點，然後包括 SG&A 在內的運營費用，以及在 20 多歲左右保持相對穩定。的研發中擠出更多的效率和回報。

And it's a good question, and we are running kind of in the low to mid 40s right now and gross margin of 43, 44% range, plus plus or minus a point in time. In the past, we were 40s. That's excluding health care or so in of the way we have our business structure today.

這是一個很好的問題，我們現在的運行水準在 40 多歲到 40 多歲之間，毛利率在 43% 到 44% 的範圍內，加上或減去一個時間點。過去，我們40多歲。這不包括我們今天的業務結構中的醫療保健等業務。

It's certainly achievable as I laid out sort of the math there. And earlier in this conversation, $13 billion worth of cost of goods, we do 2% net productivity. It's more or less 260 million if we did it at every year. It's sort of a point a year of gross margin. Of course, there's lots of dynamics here. You've got mixed happening in the business. You have a new products coming in there.

這當然是可以實現的，因為我在那裡列出了一些數學知識。在本次談話的早些時候，我們計算了價值 130 億美元的商品成本的 2% 的淨生產力。如果每年做的話，大概是2.6億吧。這相當於一年的毛利率。當然，這裡有很多動態。生意上的情況好壞參半。您那裡有新產品上市。

Got it kind of next year or next year as we exit PFS manufacturing, you have some under absorbed costs within those factories. And we got to take take care of you'll eventually solvent and there's going to move some of their production away award in the TSAs will right now, we've got to absorb that. So there's going to be lots of puts and takes. It won't be a linear journey over the next number of you.

明年或明年，當我們退出 PFS 製造時，這些工廠內的一些成本被吸收了。我們必須照顧好你們最終的償債能力，並且現在 TSA 將取消他們的一些生產獎勵，我們必須吸收這一點。所以將會有很多的投入和採取。對於接下來的你們來說，這不會是一個線性的旅程。

There's a growing gross margin. But but I do see that that's a big focus of ours. We've got to be really pushing that hard to drive gross margin improvement over time. Our R&D level is about four, three, 4.4%. I mean it could drift upward drift down a little bit in the tens of basis points. It's not enough or tens of basis points is not a big mover.

毛利率不斷成長。但我確實看到這是我們的重點。我們必須真正努力推動毛利率隨著時間的推移而提高。我們的研發水準大約是四、三、4.4%。我的意思是它可能會向上漂移數十個基點。還不夠或幾十個基點也沒有太大的推動作用。

Sg&a could see some some leverage over time just based on or on volume. But I think the bigger driver in the future is going to be coming out of gross margin. And I remind jump on focusing on growth and margin expansion for sure, working patterns across both of them. But but as I step back, driving growth is also a margin driver because of the high drop-through we get on incremental volume.

隨著時間的推移，SG&A 可能會根據交易量看到一些槓桿作用。但我認為未來更大的推動力將來自毛利率。我提醒跳躍肯定要專注於成長和利潤擴張，以及兩者的工作模式。但當我退後一步時，推動成長也是利潤驅動因素，因為我們在增量數量上獲得了很高的下降率。

So so that's kind of the wells I see the future playing itself out on. I don't think today you'll get much more specific. You will lay this out a little bit more clearly to investors as we turned the corner and 25 and come back and host an investor day towards the end of February. I think we'll have a little more clarity in laying this out a lot more clearly to investors at that point. But but anyway, that's as I see it today.

所以這就是我所看到的未來​​的發展方向。我認為今天您不會得到更具體的資訊。當我們度過 25 歲生日並在 2 月底回來舉辦投資者日時，您將向投資者更清楚地闡述這一點。我認為屆時我們會更清楚地向投資者闡述這一點。但無論如何，這就是我今天所看到的。

That's helpful. Thank you. And just circling back on your top line comment, just so you are moving at about sort of a point of organic growth come through the second half year on year. How are you looking at the overall sort of demand environment into next year? And when we think about that, the netting off of NPI is picking up versus your pruning efforts, you know, about 100 this year.

這很有幫助。謝謝。回到你的頂線評論，這樣你就可以在下半年實現同比有機增長。您如何看待明年的整體需求環境？當我們想到這一點時，NPI 的淨額淨額與您的修剪努力相比正在增加，你知道，今年大約有 100 個。

How are you thinking about the net of those two items over the next 12 months? There was a one 1% organic this year is that we should be aspiring to get into the middle of the range we set a couple of months ago. It's traveling in any order of where the market happens to be IPAs running around one, 1.1 percentage point to for the year, stepped-up well into next year, you GDPs in the 2.5, 2.7% range.

您如何看待未來 12 個月內這兩項的淨收益？今年有一個 1% 的有機率，我們應該渴望進入我們幾個月前設定的範圍的中間位置。無論市場的 IPA 運作在 1、1.1 個百分點左右，或是明年，GDP 成長率都會在 2.5、2.7% 範圍內，而明年會大幅提高。

Again, that's kind of in that same line and next year, so low single digits. And I think overall, we're performing kind of in line with that, including auto builds, SMBs, electronics, all this consumer, all that together are trending in line.

同樣，這與明年的情況相同，所以單位數很低。我認為總體而言，我們的表現與此一致，包括汽車製造、中小企業、電子產品、所有這些消費者，所有這些都在趨勢一致。

I look at NPI. And as that matures early, good 6% on numbers of launches this year, overlap, yes, we see that rate accelerating in 25. But stepping back, we're still in the order of magnitude less than we were at the peak days in terms of how many products we've launched it in the marketplace.

我看NPI。隨著這一點提前成熟，今年的發布數量達到了6%，重疊，是的，我們看到這一速度在25 年內加速。 。

So we got to get that R&D engine moving again, that is going to be essential to improving on our growth rate and starting to hit and then outgrow the market that will start to bear fruit into next year, maybe the end of next year and into 26. And that's why it took a lot of care last time in earlier to say, we've got to get better at selling what we have it today, which means which means we've got to work our sales force and all those pieces of it. We are right.

因此，我們必須讓研發引擎再次啟動，這對於提高我們的成長率至關重要，並開始衝擊並超越市場，該市場將在明年（也許是明年年底）開始結出果實。次我們需要非常小心地說，我們必須更好地銷售我們今天擁有的東西，這意味著我們必須工作我們的銷售團隊和所有這些部分它的。我們是對的。

We have gaps in our sales force coverage. We have the right incentive structure is the right training, the right people in the field, the right distributors are we pricing correctly. We have cross sell opportunities. All of these things drive growth. And I think we've got to pull all those levers and it's working earlier on in this conversation and really double down on OTF because we are losing business that were not delivering on-time in full to customers. We know we see it every single day.

我們的銷售人員覆蓋範圍有差距。我們擁有正確的激勵結構，正確的培訓，正確的領域人員，正確的經銷商，我們正確的定價。我們有交叉銷售機會。所有這些都推動成長。我認為我們必須拉動所有這些槓桿，它在本次對話的早期就發揮了作用，並且確實在 OTF 上加倍努力，因為我們正在失去那些沒有按時向客戶完全交付的業務。我們知道我們每天都會看到它。

So that is the nearest term lever we can pull is getting better on on-time in full, and it is a step back and you put all that stuff together internally quarter to 25, we should we should see better growth. That would be my expectation, but it's not going to happen overnight is these efforts do take some time and done. We'll lay this out a lot more clearly to investors as we turned the corner into 25.

因此，我們可以拉動的最接近的期限槓桿是準時率全面提高，這是一個倒退，如果你把所有這些東西放在內部，到 25 季度，我們應該會看到更好的增長。這是我的期望，但這不會在一夜之間發生，因為這些努力確實需要一些時間才能完成。當我們將轉角變成 25 時，我們將更清楚地向投資者闡述這一點。

We'll go next now to Nicole DeBlase with Deutsche Bank.

接下來我們將採訪德意志銀行的 Nicole DeBlase。

Portfolio Review comments he made at the beginning, how I guess any thoughts on like what types of businesses could be that are non-core? And if there's anything chunky coming or if there are kind of like smaller divisions are businesses that you're looking at?

他在開始時發表的作品集審查評論，我如何猜測關於哪些類型的業務可能是非核心的想法？如果有什麼大塊的東西即將到來，或者如果有類似較小的部門，那麼您正在考慮哪些業務？

Yes. Nicole, thanks for the question. Look, I mentioned last time, I did it very purposely that we're going to take a fresh dispassionate look at the portfolio, expect that we do coming into this new company. But let me step back. I mean, the lens that I'm looking through is a strategic lens at the moment to think about the portfolio.

是的。妮可，謝謝你的提問。看，我上次提到過，我是故意這樣做的，我們將對投資組合進行新的冷靜的審視，期望我們確實進入這家新公司。但讓我退後一步。我的意思是，我目前正在考慮的鏡頭是思考投資組合的策略鏡頭。

And it's really on we can lever rich technology and innovation to differentiate to win at the customer interface went when it came to three energy to me is very clear to all those 60,000 people that have been year that that technology is what differentiates 3M people joining the company because of innovation.

事實上，我們可以利用豐富的技術和創新來實現差異化，從而在客戶界面上取勝。 。

So so I'm really looking through a lens. We leverage investments in the capability we have in materials, science and technology to make something different versus competitors and solvent need others can't. And that's the lens that I'm really looking at here.

所以我真的是在透過鏡頭看。我們利用對材料、科學和技術能力的投資，製造出與競爭對手不同的產品，並滿足其他公司無法提供的償付能力。這就是我真正關注的鏡頭。

We have a few businesses are small when if and when we transact and then the you won't notice it in the overall report there. There are a couple of points of revenue. So it's relatively small deal, but it's a it has started the things that I thought were near term and the ones that we can have today.

當我們進行交易時，我們有一些業務規模很小，然後您不會在總體報告中註意到它。有幾個收入點。所以這是相對較小的交易，但它已經開始了我認為近期的事情以及我們今天可以擁有的事情。

But our evaluation continues to get as I turn next year, we come up in front of investors. I'm expecting that I'll be standing here talking about a matrix, which has something looking like what parts of our portfolio yield perhaps don't fit to us over time. And at the same time, it's not for today, but looking at will what other things do belong with those that aren't currently owned by 3M. So it's a pretty holistic assessment.

但隨著明年我的到來，我們的評估將繼續得到，我們出現在投資者面前。我預計我會站在這裡談論一個矩陣，其中包含一些看起來像隨著時間的推移，我們的投資組合收益率的哪些部分可能不適合我們的內容。同時，這不是今天的事，而是要考慮哪些其他東西確實屬於目前不屬於 3M 的東西。所以這是一個非常全面的評估。

We're in a very, very early days in the call with a couple a couple of deals that we're pushing on right now. Early stages, but done is the direction we went ahead and over time.

我們正處於通話的非常早期階段，目前正在推動幾項交易。早期階段，但已完成是我們隨著時間的推移前進的方向。

Okay. Got it. That's clearer than now. And then maybe just on the business trends and what you guys see in China in the quarter and any thoughts on that 3M's ability to benefit from stimulus activity happening there?

好的。知道了。這比現在清楚多了。然後也許只是關於業務趨勢以及你們在本季度在中國看到的情況，以及對 3M 從那裡發生的刺激活動中受益的能力有何想法？

China, China for us is a pretty good-sized market. It's about 10% of our sales year to date were up were up about 11%, more or less a little bit higher than that in the first half, largely driven by automotive, no up mid-single digits here in the third quarter, much in line with.

中國，中國對我們來說是一個相當大的市場。今年迄今為止，我們銷售額的約 10% 增長了約 11%，或多或少比上半年高了一點，主要是由汽車推動的，第三季度沒有中個位數增長，很多符合。

I think we're the market is in China. So we feel pretty good about about what what's happening there. Like a lot of it's driven by automotive. Roughly half of what we do in China is for export export out of there in roughly half stays within China and both are performing reasonably well. We'll see as we get into next year, the outlook for the overall economy, we can read where the GDP forecast for next year, but there's a lot of stimulus activity, a lot of conversations around geopolitical issues.

我認為我們的市場在中國。所以我們對那裡發生的事情感覺很好。就像很多都是由汽車驅動的。我們在中國所做的大約一半是出口，大約一半是在中國境內進行的出口，兩者都表現相當不錯。當我們進入明年時，我們會看到整體經濟的前景，我們可以閱讀明年的 GDP 預測，但有很多刺激活動，有很多圍繞地緣政治問題的對話。

We'll see as we turned the corner where China is going to be, but we're bullish on the economy there. We're bullish on our team there. Our ability to compete with more than 5,000 people in the ground seven factories. And I think we have a good ability to be a strong participant time in China.

我們將看到中國將走向何方，但我們看好那裡的經濟。我們看好我們的團隊。我們有能力與地面七家工廠的 5000 多人競爭。我認為我們有很好的能力成為中國時代的有力參與者。

Pinnacle logistical area. Nicole, just to quickly clarify, not automotive all and were up about 11% year to date, high ex electronics were up roughly about 3% organically.

品尼高物流區。 Nicole，我想快速澄清一下，今年迄今為止，汽車產業的漲幅約為 11%，高階電子產品的有機漲幅約為 3%。

Thanks. Congratulations, and I'm looking for to work on and working right here on. Just wanted to delve into a price a little bit more ominous algorithm of no productivity and gross margin. Where does where does price play into that? And are you expecting to get back to that kind of a positive margin price cost spread on going forward?

謝謝。恭喜你，我正在尋找工作並在這裡工作。只是想深入研究一個價格有點不祥的演算法，沒有生產力和毛利率。價格在哪裡發揮作用？您是否期望在未來恢復到那種正的利潤價格成本價差？

You'll see a good question. I mean, this year, we are seeing positive price. It's an organic growth, more or less plus or minus 5% or thereabouts. We are covering material inflation this year. It we're back to where we were kind of pre-pandemic levels, a little bit higher than net in during pandemic because obviously in spiking there.

你會看到一個好問題。我的意思是，今年我們看到了積極的價格。這是有機成長，或多或少正負 5% 左右。我們今年正在報道物質通膨。我們回到了大流行前的水平，比大流行期間的淨值略高一點，因為顯然在那裡出現了峰值。

But then as I step back on this, which we should get, we should get price, I think particularly as we drive new product introductions and bright bring differentiated products into the marketplace, we do expect that I see it in two pieces at each one is we have an opportunity to get better as surgical pricing.

但當我退一步討論這一點時，我們應該得到這一點，我們應該得到價格，我認為特別是當我們推動新產品推出並將差異化產品帶入市場時，我們確實希望我看到它分為兩部分我們有機會獲得更好的手術定價嗎？

So pricing to volume generated and made a comment last time that we've got some opportunities to tie volume, rebates, discounts, et cetera, to price. And that's something that we're working very, very hard on as well as tightening down on what we call gross to net in all the pieces between that volume, scale, market development, funds, rebates, those kinds of things that can be quite substantial.

因此，根據數量進行定價，並在上次發表評論說，我們有一些機會將數量、回扣、折扣等與價格聯繫起來。這是我們正在非常非常努力地工作的事情，並收緊我們所說的總量、規模、市場開發、資金、回扣等各個方面的毛淨值。

And I think we just have a better opportunity to get price forward into next year, we should continue to be able to cover at least the material cost inflation in our price. And just to add, is that just to add to that, you see for here, as Bill mentioned, in the price should cover cost inflation for us, while inflation cause going forward, what are the kind of think about the margin expansion moving forward?

我認為我們有更好的機會將價格提升到明年，我們應該繼續能夠至少在價格中涵蓋材料成本通膨。只是補充一下，正如比爾所提到的，價格應該涵蓋我們的成本通膨，而通膨會導致未來，對未來利潤率擴張有何看法？

Clearly, volume is the biggest driver for us in terms of operating leverage that we have and the net productivity that we are driving some volume in that productivity should be the critical margin expansion drive business and that you price cost is separate from that productivity, I would assume.

顯然，就我們擁有的營運槓桿和我們正在推動一定數量的淨生產力而言，銷售是我們最大的驅動力，因為生產力應該是關鍵的利潤擴張驅動業務，並且您的價格成本與生產力是分開的，我會假設。

Yes, correct. In the bridge you said, and I'm just wondering like if you're if you've got all these kind of like good gone your way and assuming like the economy doesn't might go to hell, what is that like A. R & D's flat, you should get SG&A leverage. You're talking about this productivity, price cost, data headwind, like what what what it is a headwind to pay to margins going forward, like what's the negative yet?

是的，正確。在橋上，你說，我只是想知道，如果你已經得到了所有這些類似的好處，並且假設經濟不會陷入困境，那是什麼樣的A。你談論的是生產力、價格成本、數據逆風，例如未來支付利潤率的逆風是什麼，例如負面因素是什麼？

So we'll have a negative is essentially inflation that we will see over there, which is a wage inflation moving forward. But besides that, you shouldn't see any more, of course, FX's there, which we don't know which way that group. But if you look at oral, imagine, even for the you're right, it's basically four pieces. It's a quarter of volume, a quarter of the restructuring cost that which came down lower compared to last year with record over TSA reimbursement and a quarter of net productivity.

因此，我們將在那裡看到本質上是通貨膨脹的負面影響，即未來的薪資通膨。但除此之外，你不應該再看到任何東西，當然，FX 就在那裡，我們不知道該組的方向。但如果你看看口頭，想像一下，即使你是對的，它基本上也是四塊。與去年相比，銷量下降了四分之一，重組成本下降了四分之一，TSA 報銷創紀錄，淨生產力下降了四分之一。

If you go into next year, there will be little bit low on the restructuring cost charges. But again, it's going to be more volume and it's going to be more of the productivity side with the biggest headwind being on inflation and potentially FX, which way it goes. Sorry, one last one. How much is labor as a percent of your costs? Again, labor as a percent of our cost to close to 10 ish billion JPY, eight to $10 billion, give or take a $10 billion.

如果進入明年，重組成本費用將會有點低。但同樣，這將是更多的數量和更多的生產力方面，最大的阻力來自通貨膨脹和潛在的外匯，這將是怎樣的情況。抱歉，最後一張。勞動力佔您成本的百分比是多少？同樣，勞動力占我們成本的百分比接近 10 億日元，即 8 比 100 億美元，上下浮動 100 億美元。

Okay. All right. Thanks a lot. When Andy Kaplowitz of Citi.

好的。好的。多謝。當花旗銀行的安迪·卡普洛維茨（Andy Kaplowitz）。

Could you give us a little more color into your consumer business? I think you talked about that it's getting them the better. Could you elaborate on what you're seeing there is I think that business tends to be first in first out and historical cycles, and I know you're focused on pricing in that segment. Maybe that segment could be the most competitive in terms of pricing.

能為我們介紹一下您的消費業務嗎？我想你說過這會讓他們變得更好。您能詳細說明一下您所看到的情況嗎？也許該細分市場在定價方面可能是最具競爭力的。

Can you make the pricing coming in need in that segment? So on consumer, we're down about 3% in the first half, down about 70 basis points in the third quarter. But key money has about 230 basis points of headwind associated with some of the portfolio prioritization efforts that the team is working on.

您能否制定該細分市場所需的定價？因此，在消費者方面，上半年我們下降了約 3%，第三季下降了約 70 個基點。但關鍵資金存在約 230 個基點的阻力，這與團隊正在進行的一些投資組合優先事項工作有關。

And if you go back Q1 to Q2 q to q three and then head into Q4, it is becoming a less negative in terms of organic growth and is trending to perhaps be positive in the fourth quarter for the full year, down low single digits is boasting a retail business. So you said you said retail sales is down about 50 basis points for the year, down about 80 basis points, but sort of trending in that in line with where are you set?

如果你回到第一季到第二季度到第三季度，然後進入第四季度，就有機增長而言，它的負面影響正在減弱，並且在全年第四季度可能會呈正增長，下降到低個位數擁有零售業務。所以你說今年零售額下降了約 50 個基點，下降了約 80 個基點，但趨勢與你的設定一致嗎？

Real retail sales happened to be when you look at the parts of the portfolio in the quarter, we had we had pretty good growth in our command scripts home improvement, but command strip business that was up is partly due to some new product introductions in that space in that group performing pretty well. There in the portfolio were a bit weaker were flat to down, so the offset the positive trend in home improvement.

真正的零售額恰好是當您查看本季度投資組合的各個部分時，我們在命令腳本家居裝修方面取得了相當好的增長，但命令條業務的增長部分歸因於一些新產品的推出space在該組中表現相當不錯。投資組合中的資產稍微疲軟，持平至下降，因此抵消了家居裝修的正面趨勢。

But we see we see good improvement trend going into into the fourth quarter. All depends upon what happens in holiday season as we get through the next couple of months. But the trend line is moving up in terms of it's organic growth rate.

但我們看到進入第四季時出現了良好的改善趨勢。一切都取決於接下來幾個月假期期間會發生什麼。但就有機成長率而言，趨勢線正在上升。

Helpful. And then, Bill, maybe just stepping back, you've talked a lot about through innovation, but how far are you pushing Demandware's to focus their innovation on maybe what I would call the right markets?

有幫助。然後，Bill，也許只是退一步，您已經透過創新談論了很多，但您在多大程度上推動 Demandware 將其創新集中在我所說的正確市場上？

Because it strikes me that they're just the global markets that are driving growth right now. So yes, we're spending a lot of time thinking about where we spend our precious 1 billion in R&D and making sure it's going after the right areas as part of our overall governance process and how we're developing our strategic plan to focus on those markets where we have a right to win where we can actually earned value. We have our strong return on investment in India.

因為令我震驚的是，目前推動成長的正是全球市場。所以，是的，我們花了很多時間思考我們將寶貴的 10 億美元用於研發，並確保它在正確的領域作為我們整體治理流程的一部分，以及我們如何制定戰略計劃來重點關注我們有權贏得那些市場，我們可以真正賺取價值。我們在印度的投資回報豐厚。

Have a good team is pushing on this. And this is a big focus of mine to big focus of the team. So more to come on that, but done with it's certainly part of the lands in the calculus that we're looking at and where we're spending the are investing our R&D dollars.

有一個好的團隊正在推動這一點。這是我和團隊的重點。所以還有更多的事情要做，但完成它肯定是我們正在研究的微積分領域的一部分，我們正在投資我們的研發資金。

The next now to Brett Linzey with Mizuho Securities.

接下來是瑞穗證券的布雷特林澤 (Brett Linzey)。

I just wanted to come back to the rationalization efforts. I think it was appointed drag in the corner of point for the year, perhaps just isolating rationalization and leaving out some of the new product launches and other growth. Should we be thinking about another point of headwind next year as you continue this simplification effort towards less as we proceed in advance for here?

我只是想回到合理化的努力上來。我認為它被指定為今年的重點拖累，也許只是孤立了合理化並忽略了一些新產品的發布和其他增長。當您繼續這種簡化工作以減少我們的工作時，我們是否應該考慮明年的另一個逆風點？

No British, it shouldn't it should we declined substantially going into next year? I mean, we'll lap the year. So there'll be a little bit of a drag on the fact that happened in the course of 24. But we shouldn't see significant headwind from portfolio or geographic prioritization going into next year.

不，英國人，我們不應該在明年大幅下降嗎？我的意思是，我們將度過這一年。因此，24 年間發生的事情將會受到一些拖累。

Your intention on, right. Kevin talked about this, but our intention would likely be denied speak so much about that in our 25 results, something out with really people do company do just or at a normal practice, as you continue to look at your portfolio, when you add some things, you take some things out, you replace things. And I would expect that going into next year to be less part of our conversation.

你的意圖是對的。凱文談到了這一點，但我們的意圖可能會被否認，在我們的25 個結果中談論這麼多，公司在正常實踐中確實做了一些事情，當你繼續查看你的投資組合時，當你添加一些東西，你取出一些東西，你替換一些東西。我預計明年我們的談話內容將會減少。

And this year. All right. Makes sense. And then just a follow-up on NPR and the launching of the new products, 10% growth next year. Just wanted to better understand and the associated costs and where those those introductions are aimed at the segment level.

而今年。好的。有道理。然後只是 NPR 的後續和新產品的推出，明年成長 10%。只是想更了解相關成本以及這些介紹針對細分市場的目標。

Should we be thinking of a commensurate level of R&D step-up or you are able to achieved this was repurposing the spending base now. So it's within the existing spending base as we go into 25, we'll come back and talk more about where we see R&D. But a couple of things are happening. one is just a shift within where we spend. Our R&D really comes in kind of three buckets.

我們是否應該考慮相應程度的研發升級，或者您是否能夠實現這一目標，現在就重新調整支出基礎。因此，當我們進入 25 世紀時，它處於現有的支出基礎之內，我們將回來更多地討論我們在哪裡看到研發。但有一些事情正在發生。其中之一隻是我們消費方式的轉變。我們的研發其實分為三個部分。

I mean, it's about a third. It goes in the corporate research, longer term, Horizon things, new basic technology. There's kind of a third that will add incremental line extensions, new product introductions. There's a third that that's going after or cost reduction, P. fashion bug fixes all those kinds of things. So there's going to be some shift that's going on between those peak.

我的意思是，大約是三分之一。它涉及企業研究、長期、地平線事物、新的基礎技術。第三種將增加增量產品線擴展、新產品推出。第三個目標是降低成本，P. 時尚錯誤修復了所有這些問題。因此，在這些峰值之間將會發生一些轉變。

Middle bucket used to be around 40% and it dropped below 30. That pieces coming back office now above now around third on 30% to 33%. But that middle bucket on new products, new product line extensions is where we're shifting money to drive new product introductions to become number of new product introductions of this year in 24 is up 10% over last year.

中間的部分曾經在 40% 左右，現在下降到了 30% 以下。但在新產品、新產品線擴展方面，我們正在轉移資金來推動新產品的推出，今年的新產品推出數量比去年增加了 10%，達到 24 種。

We expect that that 10% will accelerate in 2025 through those pieces. I just I just mentioned a couple of minutes ago, French part of our investment in new product introductions going to be mostly in our Safety and Industrial business in transportation. And there is some that goes into the consumer business. You'll see more going into next year would seem more introductions coming out of new product investment. But the lion's part of is really in those of those other two businesses.

我們預計 2025 年這 10% 將透過這些部分加速實現。幾分鐘前我剛剛提到，法國在新產品推出的投資將主要用於我們的運輸安全和工業業務。還有一些進入消費者業務。明年你會看到更多來自新產品投資的推出。但最大的部分實際上是在其他兩項業務中。

And that's where a lot of the launches that I talked about a minute ago are occurring will share more information as we get into next year, not just the numbers, but where we're in testing, what verticals we're investing, where we're going to prioritize our spending in the future and why we think we can win and we'll lay that out very clearly with investors as we get into February. So wondering if you can elaborate a little bit more on the operating equipment efficiency comments you made.

這就是我一分鐘前談到的許多發布的地方，隨著我們進入明年，我們將分享更多信息，不僅僅是數字，還有我們正在測試的地方，我們正在投資的垂直領域，我們在哪裡我們將優先考慮未來的支出以及為什麼我們認為我們能夠獲勝，我們將在進入二月時向投資者非常清楚地闡述這一點。所以想知道您是否可以詳細說明您所做的操作設備效率評論。

And when you talked about 50% utilization, well, short of best in class, just in terms of any clarification of what kind of best in class would look like as well as what your targets are over, call it the next six or 12 months they're mature. Yes. Look at operating equipment efficiency is really the fundamental metric at companies that do factoring have implemented this over many, many years, which is a relatively new concept.

當你談到 50% 的利用率時，嗯，還沒有達到同類最佳的水平，只要澄清什麼樣的同類最佳以及你的目標已經結束，就稱之為未來 6 或 12 個月他們成熟了。是的。對於從事保理業務的公司來說，查看運行設備效率確實是一個基本指標，這些公司已經實施了很多年，這是一個相對較新的概念。

We have 38 large factories at about 75% of our volume in about 140, about 80% of the assets that are in those factories. We implemented OEM., if you can implement it, but did you actually build it into the way the machine runs, you'll take some time to do that. So it's not a manual process actually built into the way the machine runs.

我們有 38 家大型工廠，約占我們產量的 75%，而我們有 140 家工廠，約占我們資產的 80%。我們實現了OEM。因此，這實際上並不是機器運作方式中內建的手動過程。

And look, if it's running 50%, the reality is we should be running best in class company. These are in 80% range or north of that. So we're well short of that station of this is, is that first off, what's driving that under utilization? Is it a lot of changeovers because that's on idled capacity?

看，如果運作率為 50%，那麼現實情況是我們應該是同類公司中運作最好的。這些都在 80% 的範圍內或以北。所以我們還遠遠缺乏這個站點，首先，是什麼導致了它的利用率不足？是否因為產能閒置而需要大量轉換？

Is it pure maintenance practices and machine is down it volume or capacity, but it sort of fundamental, too. I'm figuring out how do you how you handle surge volume and more longer term once that metric gets matured and were about a more holistic look at our network and the complexity we have in our network, it allows us say, well, where can we consolidate sites or cells or assets in our factories based on utilization, it happens to be out there. It's also it more than theoretically possible. You were running 50% utilization on certain assets. So longer term, we should also be looking at this as a way to make sure we're spending capital the right places. So it's really fundamental.

這是純粹的維護實踐嗎？我正在弄清楚，一旦該指標成熟，您將如何處理激增的流量和更長期的問題，並且是關於更全面地了解我們的網絡以及我們網絡中的複雜性，它讓我們說，好吧，在哪裡可以我們根據利用率整合工廠中的場地、單元或資產，它恰好就在那裡。這也超出了理論上的可能性。您對某些資產的利用率為 50%。因此，從長遠來看，我們也應該將此視為確保我們將資本花在正確的地方的一種方式。所以真的很基礎。

We're started. We've got here for where we've been year to date and mature as we get into 2010. I'd probably be 80% done by as you get to second quarter of next year, but it's a fundamental way of looking at how you're performing. And I'm really proud of what the team has done in the last couple of months to drive that into our factories.

我們開始了。我們已經到了今年迄今為止的階段，並在進入 2010 年時變得成熟。我對團隊在過去幾個月中將其推廣到我們工廠所做的工作感到非常自豪。

And then also just wanted to ask on 11 trends. I think I commented that organically up high single digits on So earlier in the year, some some spec, the tailwinds, but it seems like you're still growing at a good clip as we move later into the year. And so any any color there, whether what you're seeing is depending what the market if you're seeing any sort of share gain or taking advantage of pricing opportunities out there with the electronics growth? Yes. Electronics was a pretty good year to date in the quarter.

然後也只是想問11個趨勢。我想我在今年早些時候評論過，在一些規格上，順風車有機地增長了高個位數，但隨著我們進入今年晚些時候，你似乎仍在以良好的速度增長。因此，無論您看到的是哪種顏色，是否取決於市場，如果您看到任何形式的份額成長或利用電子產品成長帶來的定價機會？是的。迄今為止，電子產品本季表現相當不錯。

We did have some back-end wins. I think we're growing at slightly higher than the market will watching watching pretty carefully what happens in holiday trends here and what happens in the fourth quarter going into next year? So on. So we're pretty pleased with the we're far it comes from a lot of the sophisticated films that we could going into variety electronic devices.

我們確實取得了一些後端勝利。我認為我們的成長速度略高於市場，仔細觀察這裡的假期趨勢會發生什麼，以及進入明年的第四季會發生什麼？很快。因此，我們對它來自許多可以應用於各種電子設備的複雜薄膜感到非常滿意。

They're very sophisticated, a multilayer optical films, optical adhesives, things that allow, you know, um, LCDs look like a leads in terms of screen performance, gives you privacy and other things that you can then extend into larger screens, large displays and are encouraged by what drives our or auto OE business. So it's a pretty important technology with it's allowing us to perform well in electronics as a whole.

它們非常複雜，多層光學薄膜、光學黏合劑，這些東西讓你知道，嗯，液晶顯示器看起來在螢幕性能方面處於領先地位，為你提供隱私和其他東西，然後你可以擴展到更大的螢幕，大螢幕展示我們或汽車原配業務的推動因素並受到鼓舞。因此，這是一項非常重要的技術，它使我們能夠在整個電子領域中表現良好。

So one, we like the trends, we're watching what happens in holiday season, and we'll see what happens going into next year. So I'm doing pretty well actually in semiconductors as well, Alex, we're growing way above the market. That's been a pretty important trend for us this year, doing pretty well in data centers, not a big part of our business at the moment, but pretty pleased with that. But specific to electronics outgrows because of the spec in wins in technology we have.

因此，我們喜歡趨勢，我們正在關注假期期間會發生什麼，我們也會看看明年會發生什麼。所以我實際上在半導體領域也做得很好，亞歷克斯，我們的成長遠高於市場。這對我們來說是今年一個非常重要的趨勢，在資料中心方面做得很好，雖然目前還不是我們業務的重要組成部分，但我們對此感到非常滿意。但由於我們所擁有的技術規格，特定於電子產品的需求已經過時。

Our next question comes from the line of Joe Ritchie of Goldman Sachs. Please proceed with your question.

我們的下一個問題來自高盛的喬·里奇。請繼續你的問題。

Good morning, everyone, and welcome on Iraq. I'm Bill, I think you mentioned earlier that you are you're honing in on redesigning your forecasting and demand planning across.

大家早安，歡迎來到伊拉克。我是比爾，我想你之前提到過你正在磨練重新設計你的預測和需求規劃。

I think two of your businesses, I'm just curious like what are some kind of initial thoughts on improvements you think you can make. And then at some focus a little bit more holistically across the entire portfolio as well, is that this will eventually go across the entire portfolio. But stepping back, you know, we are sitting there.

我想你們的兩家企業，我只是好奇你們認為可以做出哪些改進的初步想法。然後，在整個投資組合中更全面地關註一些焦點，最終將遍及整個投資組合。但退後一步，你知道，我們坐在那裡。

We're not delivering two where we want to be on on-time and customers that we're proud of where it's gotten, too, but it's not where it needs to be. So we're not delivering on time yet. We're sitting on 100 days of inventory at the same time. And so how do you fix this? And we're looking at factories on average in the ones we're measuring at running it roughly 50% utilization across the largest ones.

我們沒有按時交付兩個我們想要的產品，也沒有為我們所獲得的客戶感到自豪，但這不是它需要的地方。所以我們還沒有準時交貨。我們同時擁有 100 天的庫存。那麼如何解決這個問題呢？我們正在研究我們所測量的工廠的平均利用率，其中最大的工廠的利用率約為 50%。

And you run that calculus that or something wrong in this whole value chain and I think go back to suppliers, suppliers delivering on time to us. We're running in the low 60s now in the low 70s, but there's a range that's an average. So it's below 50 up to 80% happening is it's just how you manage the flow through that through that supply chain. It starts with the front end of it starts with the demand signals. So what are we using to tell the factory, what to produce at a skew level?

你在整個價值鏈中進行了計算或出現了錯誤，我認為回到供應商，供應商按時向我們交付。我們現在運行在 60 多歲，現在在 70 多歲，但有一個平均範圍。因此，低於 50% 到 80% 的情況發生的原因在於您如何管理整個供應鏈的流程。它從前端開始，從需求訊號開始。那我們用什麼來告訴工廠，以傾斜水平生產什麼？

And then how does it translate based on stock on hand to what you tell us the suppliers to do based on there? oh, to perform at a lead time on logistics, this whole chain has to work incredibly smoothly because it's very complicated.

然後它如何根據現有庫存轉化為您告訴我們供應商根據現有庫存做什麼？哦，為了在物流方面按時交貨，整個鏈條必須非常順利地工作，因為它非常複雜。

So it really comes back to this fundamental of what you forecast demand signal into reality is as we've dug into it, a couple of divisions where we struggled with on-time in-full forecast accuracy is not very good good with our analytical tools that are available that we are starting to look at. It takes some time to implement and you've got a data cleanse, you've got to look at what are the right?

因此，這實際上回到了將需求訊號預測為現實的基本原理，正如我們所深入研究的那樣，我們在按時全面預測準確性方面遇到困難的幾個部門，我們的分析工具並不是很好。我們正在開始考慮這些可用的內容。實施需要一些時間，並且您已經進行了資料清理，您必須看看什麼是正確的？

You are to be building into the model? Is there a manual overlay are not based on unique circumstances having four skew you had that whole process has to run well, and if your forecast accuracy is not good, you cannot run your factory very well. Your inventory will be higher. Suppliers will perform, logistics providers won't be available. So it has to run like a, I guess, moving on clock. And it is clear.

您要建置到模型中嗎？是否有手動疊加不是基於有四個偏差的獨特情況，整個過程必須運作良好，如果您的預測準確性不好，您就無法很好地運行您的工廠。你的庫存會更高。供應商將履行職責，而物流提供者將無法提供服務。所以我猜它必須像時鐘一樣運行。這很清楚。

We have opportunity to do that as we refine the model. Yes, we'll roll that out through the rest of the business as appropriate. But this is really looking at two big divisions where we need it, you know, really high degree of focus early on, so so it will roll out over time as we get success here. Yes, that's super helpful. Bill and in detail, but I'm curious if you think that by February, you'll have some sense for what type of opportunity this presents for the reorganization?

當我們完善模型時，我們有機會做到這一點。是的，我們將酌情將其推廣到其他業務部門。但這實際上是在考慮我們需要的兩個大部門，你知道，早期就高度關注，所以隨著我們在這裡取得成功，它將隨著時間的推移而推出。是的，這非常有幫助。比爾，詳細地說，但我很好奇你是否認為到二月份，你會對這為重組帶來的什麼樣的機會有所了解？

Yes, you know, we'll certainly know by February, the results are the couple of divisions when they're big division. I like small pieces, but we can estimate from that we could probably estimate would go point was going to happen as we roll it out to other divisions. So yes, we can sort of lay out a lot more nor I think you want to go, which is it's nice to talk about forecast accuracy only a little bit about how it's going to affect delivery performance, cost performance, inventory levels.

是的，你知道，到二月我們一定會知道，結果是大分區時的兩個分區。我喜歡小件，但我們可以據此估計，當我們將其推廣到其他部門時，我們可能會估計會發生什麼。所以，是的，我們可以安排更多，我想你也不想去，這是很好的，只是談論一下預測準確性，以及它將如何影響交付績效、成本績效、庫存水準。

And I think we can kind of connect the dots on this. You know, as we get the get further mature in this particular area. Joe.

我認為我們可以將這些點連接起來。你知道，隨著我們在這個特定領域的進一步成熟。喬.

Our next question comes from the line of Chris Snyder of Morgan Stanley. Please proceed with your question.

我們的下一個問題來自摩根士丹利的克里斯·斯奈德。請繼續你的問題。

Thanks for getting me in here. Bill, on the last call, you talked about how you believe the business should be growing in excess of GDP. And I think to a prior question, you talked about better growth maybe into the back half of 25 and into 26. So is that just simply a function of the investments that you guys are making in innovation doesn't allow you to start outgrowing the market and it just takes time?

謝謝你讓我來到這裡。比爾，在上次電話會議上，您談到了您認為企業的成長應該超過 GDP。我想，對於先前的問題，您談到了可能在 25 世紀後半段和 26 世紀實現更好的增長。市場，只是需要時間？

Or is there also an assumption that maybe the consumer served end markets get better into the back half of 25 as we kind of see that pickup in growth?

或者是否還有一個假設，即隨著我們看到成長的回升，消費者服務的終端市場可能會在 25 世紀後半段變得更好？

So Chris, our crystal ball is not going to be any better than what the various prognosticators out there looking at in terms of what happens with production, GDP. consumer behavior.

所以克里斯，我們的水晶球不會比各種預測者在生產、國內生產毛額方面所看到的更好。消費者行為。

I look back at the end of last year for wet was predicted on IPI. this year, and I think it was predicting 1.7 to 1.2. So no, I'm not sure these indicators are all that power for them predict what might happen in the market or the macro year out or you point out a new look, first of all, we've got we got to grow with the market and I think we're doing doing a good job. We're doing that in this year at about 1%.

回顧去年年底，IPI 預測會出現潮濕天氣。今年，我認為預測是 1.7 到 1.2。所以不，我不確定這些指標是否足以預測市場或宏觀年度可能發生的情況，或者你指出一個新的面貌，首先，我們必須與市場，我認為我們做得很好。今年我們的目標是 1% 左右。

You know, as I said lab last time, I think at your conference, the 1% is not where we want to be due to actually grow that and be performing better without putting a timeframe on it. It comes in to leverage one. We've got to get this R&D machine running, as I mentioned, then I will say it again today, that's going to take time yard dwell time or our development cycle is a year or more on developing and commercializing launching a new product.

你知道，正如我上次在實驗室所說的那樣，我認為在你們的會議上，1% 並不是我們想要的目標，因為我們不想在沒有設定時間框架的情況下實際增長並表現得更好。它的作用是利用一。正如我所提到的，我們必須讓這台研發機器運作起來，然後我今天再說一遍，這將需要時間停留時間，或者我們的開發週期是一年或更長的時間來開發和商業化推出新產品。

So there's frame that that's going to take to turn that piece around. But there are some initiatives that we've got to give you that today. And as a lot more aggressive this at the customer interface, selling pricing, these other things, which has a near term effect when you put out all that stuff together is a growing that GDP or more than that. We'll we'll describe that more over time a little bit.

所以需要一個框架來扭轉這件作品。但今天我們必須向您提供一些倡議。在客戶介面、銷售定價等方面採取更激進的做法，當你把所有這些東西放在一起時，會產生短期影響，即 GDP 的成長或更多。隨著時間的推移，我們將對此進行更多描述。

I want to I want to sort of walk before run here, and that's kind of where I'm standing as we speak, Tetris, just to add, right, we've grown three quarters consistently 1% as both. So we'll give more color as time goes by where there is no, to Steve's question earlier reset, we can grow operating margin at a pretty healthy clip given all the levers we have as we go into next year, as you're aware, we do have certain as from higher pension expense, lower interest income because we mitigate that through share repurchases. But that's a headwind that we see from below-the-line items.

我想我想在跑步之前先走一步，這就是我們說話時我站的地方，俄羅斯方塊，只是補充一下，對吧，我們已經增長了四分之三，兩者都持續增長了 1%。因此，隨著時間的推移，我們將在沒有的地方提供更多的色彩，對於史蒂夫早些時候重置的問題，考慮到我們進入明年時我們擁有的所有槓桿，我們可以以相當健康的速度成長營業利潤率，正如你所知，我們確實可以確定退休金支出增加，利息收入減少，因為我們透過股票回購來緩解這種情況。但這是我們從線下專案中看到的不利因素。

But if I kind of look at what's been driving in terms of all the discussion we just had around the factory, the supply chain, looking at the indirect costs and all the productivity, along with that, along with a tailwind we can see with the reduction in restructuring and restructuring charges is it gives us confidence to expand operating margins next year while driving driving top-line growth.

但如果我看看我們剛剛圍繞工廠、供應鏈進行的所有討論的推動因素，看看間接成本和所有生產力，以及我們可以看到的順風車重組和重組費用的減少讓我們有信心擴大明年的營業利潤率，同時推動營收成長。

And we'll give more specific details next year. Appreciate that enough.

明年我們將提供更多具體細節。欣賞這一點就夠了。

If I could just follow up on maybe some of the pruning of is it fair to assume that whatever business the Company decides to leave, you know, they will get paid for it? I mean not no more organic exit or at least nothing very sizable in terms of organic exit. I understand maybe certain skews our product lines can come and go.

如果我能跟進一些修剪工作，是否可以公平地假設公司決定放棄的任何業務，你知道，他們都會因此獲得報酬？我的意思不是不再有有機退出，或至少在有機退出方面沒有任何規模的退出。我知道我們的產品線可能會出現某些偏差。

Yes. Look, I think there is going to be over time natural portfolio in terms of SKUs as you bring new products on a May obsolete other things that need to go out that, that churn, that part is a normal part of business.

是的。聽著，我認為隨著時間的推移，SKU 方面將會出現自然的組合，因為你會在可能過時的其他東西上推出新產品，而這些東西需要淘汰，而流失，這部分是業務的正常部分。

And that should all be sort of a new normal organic growth contributions that we should be growing at the market for. So that is, as you've just pointed out, presented distinct from a selling a business which we look at that. So the inorganic exit will look hard at ASH effects, dilution effects. All those pieces will make sure we get paid more value for that business.

這應該是一種新常態的有機成長貢獻，我們應該在市場上成長。因此，正如您剛才指出的那樣，這與我們所認為的出售業務不同。因此，無機退出將重點放在灰分效應、稀釋效應。所有這些部分將確保我們從該業務中獲得更多價值。

And we would have assumed today within within 3M. But we've done I think your question was really on organic and as a test year, I'd like I said, I think we'll probably talk less about kind of the portfolio shifting that going on inside the Company on skews in geographies and things like that. So appreciate that. Thank you. Bet.

我們假設今天在 3M 以內。但我們已經完成了，我認為你的問題實際上是有機的，作為測試年，我想我說，我認為我們可能會少談論公司內部因地域傾斜而發生的投資組合轉變諸如此類的事情。所以很感激。謝謝。賭注。

And our next question comes from the line of Deane Dray of RBC.

我們的下一個問題來自加拿大皇家銀行 (RBC) 的迪恩德雷 (Deane Dray)。

Thank you. Good morning, everyone. Thanks for fitting me, and welcome to honor Ugg up. Bill came up in the local paper. But the interesting here, your challenges you're facing both operationally and culturally to get my employees back to the office you all and have them fully remote for longer than most companies.

謝謝。大家早安。感謝您為我試穿，並歡迎授予 Ugg up 榮譽。比爾出現在當地報紙上。但有趣的是，你們在營運和文化上都面臨著挑戰​​，要讓我的員工回到辦公室，並讓他們比大多數公司更長時間地完全遠距辦公。

I know you've announced some initiatives, but would love to hear of color there was? So look, I mean, at some we need to grow our business. We need to innovate, but part of that and we need to solve problems for customers.

我知道您已經宣布了一些舉措，但想聽聽有哪些顏色嗎？所以，我的意思是，在某些方面我們需要發展我們的業務。我們需要創新，但其中一部分是我們需要為客戶解決問題。

I do think that you problem solve it surveyed better in-person. We're going to maintain flexibility in our workforce. What we've done is for our largest sites that are most senior people. We've asked those individuals to be on the site wherever they will report on Tuesday through Thursday with some flexibility on Monday and Friday.

我確實認為你親自調查的問題解決得更好。我們將保持員工隊伍的靈活性。我們所做的都是為了我們最大的網站，由最資深的人員組成。我們已要求這些人在周二至週四的任何地點進行報告，並在周一和周五進行一定的靈活性。

This is a opportunity for us to continue to build our culture, build. Our relationships are problem solvers team. And I think it's the rights to a lot of our customers and moved in this direction in the past. Maintaining some flexibility in our workforce is really important to me. It's important to our employees, and we're allowing that no, but it gives us an opportunity be able to look across the table from one another and really dig in and problems solved in a better way than I think you can over Teams or Zoom or some of the format like that.

這是我們繼續建立我們的文化、建設的機會。我們的關係是問題解決團隊。我認為這是我們許多客戶的權利，並且過去一直朝著這個方向發展。保持員工隊伍的彈性對我來說非常重要。這對我們的員工很重要，我們允許這樣做，但它給了我們一個機會，能夠相互交換意見，真正深入研究並以比我認為透過 Teams 或 Zoom 更好的方式解決問題或類似的一些格式。

So so that's while we're leaning out a little bit more on not on bringing people back at sort of our at our larger sites, including here at 3M center.

因此，我們正在努力避免讓人們回到我們更大的工廠，包括 3M 中心。

Got it. And then just a last question, a lot of discussion today about new product introductions, efficiencies. And will you be bringing back the new product vitality index is at one of the measures and 3M had at one time, but that one away from it, what your thought? They're now? I'm happy to talk about it.

知道了。最後一個問題，今天有很多關於新產品推出、效率的討論。您是否會將新產品活力指數恢復為 3M 曾經採取的措施之一，但遠離它，您的想法是什麼？他們現在呢？我很高興談論它。

I know there was reasons why we pulled away from me get that to be oversold are built into our comp metric or whatever. But the reality is it's important metric, ITO because we've we have we pulled back from introducing new products to the marketplace.

我知道我們離開我是有原因的，因為超賣已經納入我們的補償指標或其他指標。但現實情況是，ITO 是一個重要的指標，因為我們已經停止向市場推出新產品。

We know that I talked at some detail as to how many NPAs have come down over time and where we're at last year, going up 10% this year. The net effect of that is our product portfolio in the marketplace is aging. For sure. Our NPV, I don't want to five year basis is running just over double digits, 1011%. We used to be 25 30 for the more super innovative companies there in that range.

我們知道，我詳細討論了有多少不良資產隨著時間的推移而下降，以及我們去年的情況，今年上升了 10%。其最終影響是我們在市場上的產品組合正在老化。一定。我們的淨現值（NPV），我不想以五年為基礎運行，剛好超過兩位數，1011%。對於該範圍內更具超級創新性的公司，我們曾經是 25 到 30。

I'm not going to say when we get back there, but it's one that's all my mind how we need to add more fresh offerings on the marketplace. So we ought to be low double digit in terms of vitality index, and I'm happy to talk about that over time. In terms of the metric, what's happening to it, why I think it's important, but I don't want to overuse it. Investors are here with employees because there's other metrics, all our measures. It drives are we becoming effective at driving innovation in the company.

我不會說我們什麼時候會回到那裡，但我腦子裡全是我們需要如何在市場上添加更多新鮮產品。因此，我們的活力指數應該是低兩位數，我很高興隨著時間的推移談論這一點。就指標而言，它發生了什麼，為什麼我認為它很重要，但我不想過度使用它。投資者和員工在一起是因為還有其他指標，我們所有的衡量標準。它推動我們有效地推動公司創新。

That just happens to be one of them. And this concludes the question and answer portion of our conference call. I will now turn the call back over to Bill Brown for some closing comments. Bill, thank you very much to all of the analysts for joining today and asking on a number of very, very good questions.

那恰好是其中之一。我們電話會議的問答部分到此結束。我現在將把電話轉回給比爾布朗，徵求一些結束語。比爾，非常感謝所有分析師今天加入並提出了一些非常非常好的問題。

I want importantly, thank all of reimburse for their dedication, their hard work on behalf of our customers, ours and our shareholders throughout the quarter throughout the year. And I look forward to speaking with all of the investors to late January issue, our Q4 results and in late February, probably last week of February as we host an Investor Day, likely here in Minneapolis, have a very good day, everybody.

重要的是，我要感謝所有 Rewards 在整個季度為我們的客戶、我們的客戶和股東所做的奉獻和辛勤工作。我期待與所有投資者討論1 月底的問題、我們的第四季度業績以及2 月底，可能是2 月的最後一周，我們將在明尼阿波利斯舉辦投資者日活動，祝大家度過愉快的一天。

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

太感謝了。謝謝。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。