Operator: Our next question comes from Deane Dray with RBC Capital Markets. You may proceed with your question.
Deane Dray: Thank you. Good morning everyone.
Monish Patolawala: Good morning.
Mike Roman: Good morning Deane.
Deane Dray: Can we get an update on the healthcare analyst meeting? And what’s the effect on the separation of R&D? There is so much in way of shared technologies. What’s the plan there and also for stranded costs?
Mike Roman: Yes. Deane, maybe I will make a comment about the R&D. So, this is something that we have managed with other separations and divestitures and nothing of the healthcare spend scale, but it’s something that we are able to manage. We have – part of the focus of the separation team is on this area, and it’s important to be able to set up both healthcare and 3M going forward with the strong foundation for innovation that they both need. And you – the fields of use are actually quite distinct between healthcare and what will be 3M Company going forward. So, that’s a really a big part of it. And then we work through the details, make sure that we are positioning both companies to have the – not only the access to the technology, but the intellectual property that is at the foundation of what makes our innovation really that differentiated.
So, making good progress on that and feel like that’s an area that we have a good roadmap ahead for us to follow.
Monish Patolawala: Just on your second question on timing. As you know, Deane, last quarter too, Mike had said, the teams are continuing to make good progress. This quarter too, they are making good progress. We were going – we were working towards a Q4 ‘23, early 2024 timeline. But just a reminder, our spin timing ultimately is subject to the IRS rulings because we want this to be a tax-free transaction, government approvals, making sure we get final Board approval and also take into account other conditions like equity and debt markets, other external conditions that could impact – on other developments that could impact 3M or any of its business. So, put all that together, I would just say that teams are focused, dedicated teams continuing to make progress, working through all the government regulations that we have to work through to get ready.
Deane Dray: That’s helpful. And just if you can comment on the plan for stranded costs, and are there other spin-offs being contemplated by the Board?
Monish Patolawala: So, I will just – on stranded costs, when we announced this transaction mid last year, one of the items we have talked about was that benchmarks were anywhere between 1% to 1.5% of revenue is stranded cost. And we had talked about saying, we believe we can do much better than that. Based on all the actions that we are taking today, currently, our view on stranded costs ultimately depends on the revenue of ParentCo too is between 50 basis points to 75 basis points, so much lower than benchmark. But we will keep working it. We will keep working it from now until the end of the – until the spin-off. And we will keep working it post that too, to reduce that.
Mike Roman: And Deane, I would say we are focused on successfully moving forward and making – successfully making progress with the spin of healthcare. And we are, of course focused on the actions that we announced today. So, we don’t plan on any other major portfolio actions in the near-term.
Deane Dray: Thank you.
Mike Roman: Yes. Thanks Deane.
Operator: And our final question comes from Nicole DeBlase with Deutsche Bank. You may proceed with your question.
Nicole DeBlase: Yes. Good morning guys. Thanks for squeezing me in.
Mike Roman: Good morning Nicole.
Nicole DeBlase: Hey. In the interest of time, I am just going to ask one, and that’s, can you just comment on how organic growth kind of trended throughout the quarter, if there were any discernible differences between Jan, Feb, March and then into April? Thank you.
Monish Patolawala: So, Nicole, I would say overall, the quarter pretty much played out as we thought. Jan, Feb, March, we expected acceleration, which we saw. April is also playing out pretty much where we saw. So, there is – I would say there was nothing in the intra-quarter trends in Q1 that stood out from where we had expected it to be. China remains soft, consumer-facing businesses remains soft, industrial end markets ex-electronics remain strong. And then healthcare elective procedures pretty much remain the same. And you normally in that industry see a Q4, Q2 or 1Q slowdown just as procedures slow down, and we saw that too. So, nothing I would say is major to call out intra-quarter in 1Q.
Nicole DeBlase: Thanks Monish.
Operator: That concludes the question-and-answer portion of our conference call. I will now turn the call back over to Mike Roman for some closing comments.
Mike Roman: To wrap up, we are taking significant actions to create a streamlined and stronger 3M. We will stay focused on creating greater value for customers and shareholders, improving our performance and using 3M science to make a difference in the world. Thank you for joining us.
Operator: Ladies and gentlemen that does conclude the conference call for today. We thank you for your participation and we ask that you please disconnect your lines.
