3M 2015 Annual Report Download - page 30

TableofContents
Electronics and Energy Business ( 17.2 % of consolidated sales):


 2015  2014  2013 
Sales(millions)  $ 5,220  $ 5,604  $ 5,393 
Saleschangeanalysis:       
Organiclocalcurrency   (1.9)%  5.2 %  — %
Divestitures   (0.8)  —   — 
Translation   (4.1)  (1.3)  (1.2)
Totalsaleschange   (6.8)%  3.9 %  (1.2)%
       
Operatingincome(millions) $ 1,102  $ 1,115  $ 954 
Percentchange   (1.1)%  16.8 %  (7.0)%
Percentofsales   21.1 %  19.9 %  17.7 %

TheElectronicsandEnergysegmentservescustomersinelectronicsandenergymarkets,includingsolutionsthatimprovethe
dependability,cost-effectiveness,andperformanceofelectronicdevices;electricalproducts,includinginfrastructureprotection;
telecommunicationsnetworks,andpowergenerationanddistribution.Thissegment’selectronicssolutionsincludefilmsolutionsfor
theelectronicdisplayindustry;packagingandinterconnectiondevices;highperformancefluidsandabrasives;high-temperatureand
displaytapes;flexiblecircuits,whichuseelectronicpackagingandinterconnectiontechnology;andtouchsystemsproducts,which
includestouchscreens,touchmonitors,andtouchsensorcomponents.Thissegment’senergysolutionsincludepressuresensitive
tapesandresins;electricalinsulation;infrastructureproductsthatprovidebothprotectionanddetectionsolutions;awidearrayof
fiber-opticandcopper-basedtelecommunicationssystems;andrenewableenergycomponentsolutionsforthesolarandwindpower
industries.

Thedisplaymaterialsandsystemsbusinessprovidesfilmsthatservenumerousmarketsegmentsoftheelectronicdisplayindustry.
3Mprovidesdistinctproductsforfivemarketsegments,includingproductsfor:1)LCDcomputermonitors2)LCDtelevisions3)
handhelddevicessuchascellularphonesandtablets4)notebookPCsand5)automotivedisplays.Thedisplaymaterialsandsystems
businessincludesanumberofdifferentproductsthatareprotectedbyvariouspatentsandgroupsofpatents.Thesepatentsprovide
varyinglevelsofexclusivityto3Mforanumberofsuchproducts.Assomeof3M’smulti-layeropticalfilmpatentsexpiredatthe
endof2013andwillexpireoverseveralyearsthereafter,3Mwilllikelyseemorecompetitionintheseproducts.3Mcontinuesto
innovateintheareaofopticalfilmsandfilespatentsonitsnewtechnologyandproducts.3M’sproprietarymanufacturing
technologyandknow-howalsoprovideacompetitiveadvantageto3Mindependentofitspatents.

Year 2015 results:

ElectronicsandEnergysalestotaled$5.2billion,down6.8percentinU.S.dollars.Organiclocal-currencysalesdeclined1.9
percent,divestituresreducedsalesby0.8percent,andforeigncurrencytranslationreducedsalesby4.1percent.

Onanorganiclocal-currencysalesbasis:
·Salesdecreasedapproximately1percentin3M’selectronics-relatedbusinesses,withgrowthinelectronicsmaterials
solutionsmorethanoffsetbyadeclineindisplaymaterialsandsystems,as3Mexperiencedsofterconditionsinthe
electronicsmarkets.
·Salesdecreasedapproximately4percentin3M’senergy-relatedbusinesses,astelecommunications,electricalmarkets,
andrenewableenergyalldeclined.
·Onageographicbasis,salesincreased1percentinEurope,wereflatintheUnitedStates,anddeclined3percentinboth
LatinAmerica/CanadaandAsiaPacific.

Divestitures:
·3McompletedthesaleofitsstaticcontrolbusinessinJanuary2015(discussedinNote2).

Operatingincome:
·Operatingincomedecreased1.1percentto$1.1billionin2015.
30
