- Leadership to highlight opportunity to unlock
significant value creation over time -
- Solventum to introduce full-year 2024 guidance
-
ST.
PAUL, Minn., March 19,
2024 /PRNewswire/ -- Solventum will host its
inaugural Investor Day today in New York
City ahead of its planned spinoff from 3M (NYSE: MMM). The Company is anticipated to
spin off from 3M on April 1, 2024, and has been approved for listing
on the New York Stock Exchange as "SOLV."
During today's event, Solventum chief executive officer
Bryan Hanson and chief financial
officer Wayde McMillan will share
how the Company plans to create significant value for shareholders
over time, including:
- Building on a solid foundation of durable and diversified
businesses and capitalizing on strong market positions in its large
and growing markets.
- Enhanced focus and agility as a stand-alone company to pursue
tailored capital allocation strategies aligned with industry- and
market-specific dynamics.
- Accelerating revenue growth, driving margin expansion and
improving cash flow to reinvest in high-return value-creation
opportunities.
"We look forward to introducing you to the future of Solventum
during our inaugural Investor Day event," said Hanson. "We have a
solid foundation of globally recognized brands in attractive
markets and deep innovation capabilities. The spin will unlock our
agility, enhanced focus and targeted capital allocation, which
better positions us to drive strong value creation over time while
advancing our mission to enable better, smarter, safer healthcare
to improve lives."
Solventum Introduces 2024 Full-Year Guidance
Today the Company introduces its 2024 full-year guidance as
follows:
- Organic revenue growth of -2% to 0%
- Adjusted earnings per share (EPS) of $6.10 to $6.40
- Free cash flow of $700M to
$800M
See the "Non-GAAP Financial Measures in Guidance" section for
applicable information.
Solventum historical financials in Form 10 and Q1 2024 are
prepared as a carve-out of 3M
Company. This basis of presentation is different than what has been
reported in 3M's historical consolidated results for 3M's Health
Care segment. Solventum's full-year 2024 guidance is based on Q1
2024 as a carve-out plus the remainder of the year as a stand-alone
company starting April 1, 2024.
Live Webcast
The live webcast will begin at 9:00 a.m.
Eastern Daylight Time and is expected to last approximately
three hours. The live webcast and a replay of the presentation
will be available on 3M's website at
https://investors.3m.com/health-care-spin-off-resources.
Key Information about Solventum
As outlined in its
Form 10, Solventum will be:
- Focused on its mission, "Enabling better, smarter, safer
healthcare to improve lives," powered by its more than 70 years of
innovation creating breakthrough solutions, market-leading
positions, trusted, recognized brands, and strong customer
relationships with more than 100,000 channel partners and sales in
more than 90 countries.
- A leading global healthcare company innovating at the
intersection of health, material, and data science, with
$8.2 billion in revenue in
2023. Solventum will serve an approximate $93 billion global addressable market anticipated
to grow at 4-6% through 2026.
- Organized into four operating business segments aligned to the
markets served, including:
- Medical Surgical (MedSurg): A provider of wound care and
surgical solutions intended to accelerate healing and prevent
complications.
- Dental Solutions: A provider of dental prevention and procedure
solutions and orthodontic solutions intended to promote lifelong
oral health.
- Health Information Systems: A provider of software solutions
powered by clinical intelligence that are intended to create time
for clinicians to care for patients and ensure accuracy in health
care reimbursement.
- Purification & Filtration: A provider of filters and
membranes intended for life-saving biopharmaceuticals, vaccines,
and medical treatments.
Forward-Looking Statements
This communication contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All
statements other than statements of historical fact included in
this communication are forward-looking statements. In particular,
statements regarding the future performance of Solventum,
including guidance for 2024, and
regarding Solventum's intended operations as a standalone
public company are forward-looking statements. These
forward-looking statements are sometimes identified from the
use of forward-looking words such as "believe," "should," "could,"
"potential," "continue," "expect," "project," "estimate,"
"predict," "anticipate," "aim," "intend," "plan," "forecast,"
"target," "is likely," "will," "can," "may" or "would" or the
negative of these terms or similar expressions elsewhere in this
communication. All forward-looking statements are subject
to a number of important factors, risks,
uncertainties and assumptions that could cause actual results to
differ materially from those described in any forward-looking
statements. These factors and risks include, but are not
limited to, risks associated with the impact, timing or terms of
the proposed spinoff of Solventum; risks associated with the
expected benefits and costs of the proposed spinoff, including
the risk that the expected benefits of the proposed spinoff will
not be realized within the expected time frame, in full or at all,
and the risk that conditions to the proposed spinoff will not
be satisfied or that the proposed spinoff will not be completed
within the expected time frame, on the expected terms or at all;
risks associated with financing transactions undertaken
in connection with the proposed spinoff and risks associated
with indebtedness incurred in connection with the proposed spinoff;
the risk of increased costs from lost synergies, costs of
restructuring transactions and other costs incurred in
connection with the proposed spinoff; the impact of the proposed
spinoff on Solventum's business and the risk that the
proposed spinoff may be more difficult, time-consuming or
costly than expected; diversion of management's attention and the
impact on relationships with customers, suppliers, employees and
other business counterparties; the risk
that Solventum may fail to have the necessary systems and
services in place when certain of the spinoff-related agreements
with 3M expire, or that replacing
those systems and services may be more expensive or less
efficient than those that 3M is
expected to provide during the transition period to Solventum;
the risk that Solventum's accounting and other management
systems and resources may not be adequately prepared to meet
the requirements to which Solventum will be subject as a
standalone public company; the impact of field of use allocations
in the spinoff-related agreements
on Solventum's ability to exploit certain intellectual
property; the effects of, and changes in, worldwide economic,
political, regulatory, international trade and geopolitical
conditions, natural disasters, war, foreign currency exchange
rates and fluctuation, changes in interest rates, and other events
beyond Solventum's control; Solventum's ability
to access the capital and credit markets on terms that are
favorable to Solventum; consolidation and competition in the
healthcare industry; the risk of any damage
to Solventum's reputation or brands; timing and
market acceptance of Solventum's new product and
service offerings; Solventum's ability to maintain strong
working relationship with healthcare professionals; the impact of
changes in reimbursement practices of third-party payers or
other cost containment measures, or of current or worsening
economic conditions, on demand for Solventum's products
and the prices at which they are sold; the costs and
availability of purchased components, compounds, raw materials,
production capacity, energy, and labor due to shortages, increased
demand and wages, logistics, supply chain interruptions,
manufacturing site disruptions, regulatory developments, natural
disasters and other disruptive factors; risks arising from the fact
that 3M is the sole source of supply
for certain chemical materials and inputs used
in Solventum's products; risks related to international,
federal, state, and local treaties, laws, and regulations that are
subject to change at any time, as well as compliance risks
related to legal or regulatory requirements, contract requirements,
policies and practices; potential liabilities related to PFAS and
other product liability claims; security and data breaches,
cyberattacks, and other cybersecurity incidents
involving Solventum's information technology systems and
infrastructure; Solventum's ability to obtain, maintain,
protect or effectively enforce its intellectual property
rights; risks from acquisitions, strategic alliances, divestitures
and other strategic events; reliance on customer's research budgets
or government funding; and the other financial, operational
and legal risks and uncertainties detailed from time to time in
3M's cautionary statements contained in its filings with the SEC in
the sections titled "Cautionary Note Concerning Factors That
May Affect Future Results" and "Risk Factors" in Part I, Items 1
and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A
(Quarterly Reports) and in Solventum's cautionary statements
contained in its Registration Statement on Form 10 filed with the
SEC in the sections titled "Cautionary Note Regarding
Forward-Looking Statements" and "Risk Factors." All forward-looking
statements speak only as of the date of this communication. Neither
3M nor Solventum undertakes
any obligations to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise other than as required under the federal securities
laws.
Non-GAAP Financial Measures in Guidance
Solventum
is providing forward-looking guidance using non-GAAP
financial measures. These include organic revenue growth, adjusted
earnings per share, and free cash flow. Organic revenue growth is
defined as total net sales less the impacts of foreign currency and
sales from business acquisitions or divestitures within twelve
months of the transaction date. Adjusted earnings per share is
defined as earnings per share excluding the per share impacts of
amortization of acquired intangible assets, restructuring costs,
spin-off and separation-related costs and gains or losses on
business divestitures. Free cash flow is defined as net cash
provided by operating activities less purchases of property, plant
and equipment. Management believes that these non-GAAP financial
measures, together with the measures used by management, reflect
how we measure our business internally and set operational goals.
In particular, we believe that these non-GAAP financial measures
are useful in evaluating current performance and focusing
management on our underlying operational results.
Solventum calculates forward-looking non-GAAP financial
measures, including organic revenue growth, adjusted earnings per
share, and free cash flow based on internal forecasts that omit
certain amounts that would be included in GAAP financial measures.
Solventum does not provide reconciliations of these forward-looking
non-GAAP financial measures to the respective GAAP metrics as it is
unable to predict with reasonable certainty and without
unreasonable effort certain items such as the impact of changes in
currency exchange rates, impacts associated with business
acquisitions or dispositions, timing and magnitude of restructuring
activities, amongst other items. The timing and amounts of these
items are uncertain and could have a material impact on Solventum's
results in accordance with GAAP.
About 3M
3M (NYSE: MMM) believes science helps
create a brighter world for everyone. By unlocking the power of
people, ideas and science to reimagine what's possible, our global
team uniquely addresses the opportunities and challenges of our
customers, communities, and planet. Learn how we're working to
improve lives and make what's next at 3M.com/news.
About Solventum
At Solventum, we enable better, smarter, safer healthcare to
improve lives. As a new company with a long legacy of creating
breakthrough solutions for our customers' toughest challenges, we
pioneer game-changing innovations at the intersection of health,
material and data science that change patients' lives for the
better — while enabling healthcare professionals to perform at
their best. See how at Solventum.
3M Investor Contact:
Bruce Jermeland
(651) 733-1807
or
Diane Farrow
(612) 202-2449
or
Eric Herron
(651) 233-0043
Solventum Investor Contact:
Kevin Moran
investors@solventum.com
Solventum Media Contact:
Carly Rotman
crotman@solventum.com
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SOURCE 3M Company