3M 2012 Annual Report Download - page 4

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2
acquisition integration and Lean Six Sigma. We expanded our global footprint through
continued investments around the world. And we did all of this with the high level of
business conduct, integrity and character that others expect of us, and that we expect
of ourselves.
In addition, we brought portfolio prioritization into the forefront of how we manage the
company. This is important for long-term success and we are using the process to
improve short-term results as well.
Finally, we set out financial goals for the next five years. We now have targets that are
both realistic and aggressive, and that provide a real possibility of upside.
The five-year goals are as follows:
•฀ Grow earnings per share 9-11 percent per year, on average
•฀ Grow organic sales 4-6 percent per year, on average
•฀ Maintain return on invested capital above 20 percent
•฀ Free cash flow conversion of 100 percent
All in all, I am very pleased with our actions to improve the business and with our
progress in so many areas of the company. At the same time, the company performed
very well in 2012.
For the year, earnings per share were up 6 percent to $6.32.
Operating income rose to $6.5 billion, a 5 percent increase.
We maintained outstanding operating income margins of 21.7 percent, with five of our
six business segments delivering above 21 percent.
$25
$20
$15
$10
$30
Net Sales
(billions)
2011
$29.6
2008 2009 2010
$25.3 $23.1 $26.7
2012
$29.9
0
$2.00
$2.50
$1.50
$1.00
Dividends Per Share
2011
$2.20
20102008 2009
$2.00 $2.04 $2.10
2012
$2.36