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3M CompanyPatrick D. Campbell, Sr. Vice President and CFO
Investors ConferenceMarch 17, 2011
3M2011. All Rights Reserved.
Opened September 2006
156,000 visitors
6,600 events
4,000 customer visits
Welcome To The 3M Innovation Center
20% of visits from customersoutside the U.S.
Supports worldwide network of 30
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customer technical centers indozens of other countries
3M Technologies Solving Customer Problems
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Ajoint venture, ~75% owned by 3M
3M Japan Overview
,
9% of consolidated sales
Largest businesses are industrial and consumerelectronics-related
5 manufacturin sites lus man su lier sites
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(purchased finished goods, converting, etc.)
Headquartered in Tokyo
3M2011. All Rights Reserved.
Situation is fluid, too early to assess complete business impact
All employees are safe
What We Know At This Point
Like other similar companies, 3M wrestling with logistics: roads, fuel,utilities
Mapping global supply chain resources to best meet local customerdemand
We are insured for business interru tion and h sical facilities
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currently assessing extent of coverage
Well-positioned as recovery progresses; 3M makes many productsuseful in recovery and rebuilding
For example, ramping up global production of safety-related products
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Executing Our Plan to Enhance Shareholder Value
20%+
Growth strategy is working
Investing in R&D, growth cap-ex, supply chain, newmarkets/adjacencies to accelerate sustainable, profitable growth
Long-Term Strategy
7-8%
10 -12% Businessmodel provides unlimited leverage opportunities
Operational excellence drives premium margins, ROIC anddouble-digit earnings growth
Growing free cash flow capability and strong balance sheet
Provides flexibility to fund organic growth programs as well asexecute strategic acquisitions
Providing an attractive return to shareholders
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Organic SalesGrowth
EarningsGrowth
InvestmentReturns
Our Key Strategies are Working
Long history of paying competitive dividend; increased 53consecutive years
Capital structure and free cash flow capability provideopportunity to aggressively repurchase shares
3M2011. All Rights Reserved.
We Have Delivered > 10% EPS Growth WhileMaintaining Industry-Leading Operating Margins & ROIC
$6.00 25%28%
$2.00
$3.00
$4.00
$5.00
17.2%
22.7%
21.0%
22.1%
20.6% 20.8%
22.2%
5%
10%
15%
20%
13%
16%
19%
22%
ROIC
OperatingIncomeMargin
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$1.002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
GAAP EPS EPS excluding pharma
0%10%2000 2005 2006 2007 2008 2009 2010
Op. Inc. Margin ROIC
GAAP EPS has Grown 10.4% CAGR Over Last Decade,or Up 11% Excluding Divested Pharma Business
We Drive Operational and Capital Disci plineto Fund Growth
3M2011. All Rights Reserved.
* All amounts exclude specialty pharma business, which was divested in 2006/2007. Refer to appendix for non-GAAP financial measures discussion.
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3Ms Business Performance System Securing Our Profitability
Continuous Focus on
RelentlessFactory CostReduction
Streamlining
Management System
3M BPS
Lean ManufacturingSupply Chains
Winning the Warfor Talent
Disciplined SKUReduction
AggressiveGlobal Sourcing
Driving SG&AProductivityLean Six Sigma
HosinKanri
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Woven Into The Fabric of 3M - The Way We Do Business
Results-Based TotalCompensation Design
Diligent Indirect
Cost Reduction
Progressivee-Productivity
3M2011. All Rights Reserved.
Global Businesses, Local Execution
Country Collaborative managementlat
ory
Country
Country
Country
Country
Country
teams The Best of Both
Country/Business alignmenton key investment programs
Rapid replication across theglobe
Improves investmentategy,Brand,KeyAcctMgmt,Regu
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Countryreturns
Local Execution, Branding, Product & Market Development
GlobalStr
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3Ms International Matrix Drives Significant Value
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StrategicThrust
Our Basic Growth Strategy Remains in Place
row e urrenCore Business
u ewBusinesses
omp emen aryAcquisitions
n erna onaGrowth
Capitalizing onmegatrends
Entrepreneurial initiatives
Business modelinnovation
Defend the core
Expand presence acrossthe pyramid
Relentless penetration
Rebuilding R&D
Build scale and share
Solidify the core
Move into adjacencies
Create new platforms
Driving localization
Expanding footprint indeveloping markets
No country left behind
Unraveling the hairball
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Industrial Adhesives and TapesPatrick Deconinck, VP and General Manager
Industrial & Transportation2010 Sales of $8.6B
Adhesives& Tapes
32%
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Electronics Markets MaterialsHerve Gindre, VP and General Manager
Electro & Communications2010 Sales of $2.9B
ElectronicsMktsMatls
31%
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Renewable EnergyMike Roman, VP and General Manager
Industrial & Transportation2010 Sales of $8.6B
Renewable Energy 4%
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Automotive OEMTony Stokes, VP and General Manager
Industrial & Transportation2010 Sales of $8.6B
Auto OEM 12%
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Occupational Health and Environmental SafetyJulie Bushman, VP and General Manager
Safety, Security & Protection Svcs2010 Sales of $3.3B
OccupationalHealth & Env.
Safety56%
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Food SafetyFrancine Savage, VP and General Manager
Health Care2010 Sales of $4.5B
Food Safety 4%
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OrthodonticsBill Cruise, VP and General Manager
Health Care2010 Sales of $4.5B
Ortho 7%
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China Region and 3M ChinaKenneth Yu, Managing Director
Developing Countries2010 Sales of $8.8B
Taiwan9%
Other52%
China/Hong Kong
25%China
Region34%
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Brazil 11%
India 3%
3M2011. All Rights Reserved.
3M BrazilMike Vale, Managing Director
Developing Countries2010 Sales of $8.8B
Taiwan9%
Other52%
China/Hong Kong
25%
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Brazil 11%
India 3%
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3M IndiaAjay Nanavati, Managing Director
Developing Countries2010 Sales of $8.8B
Taiwan9%
Other52%
China/Hong Kong
25%
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Brazil 11%
India 3%
3M2011. All Rights Reserved.
3Ms Innovation and Excellence is Gaining More AttentionThe 10 Most Innovative Companies
Innovation executives we surveyed votedoverwhelmingly for Apple, Google, and 3M as the
most innovative companies.
Most Respected #7
#1 Best Companies for Leaders
Nov. 2010
Most Reputable #4
April 2010
.
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And Many More
Most Admired #15
March 2011
Jan. 2009
3M2011. All Rights Reserved.
March 2011
Best Corporate Citizen #6
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7:45 a.m. Welcome Patrick Campbell
Industrial Adhesives & Tapes PatrickDeconinck
Electronics Markets Materials Herve Gindre
Renewable Energy Mike Roman
Outstanding Agenda Today
utomotve ony to es
Occupational Health & Environmental Safety JulieBushman
10:05 a.m. Break
10:20 a.m. Food Safety Francine Savage
Orthodontics Bill Cruise
China and China Region Kenneth Yu
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India Ajay Nanavati
12:25 p.m. Lunch
1:30 p.m. GeorgeBuckley, Chairman, President & CEO
2:15 p.m. Q&A
3:00 p.m. Depart for airport
3M2011. All Rights Reserved.