Moe Nozari Presentation

2008 3M Investor Conference© 3M 2008. All Rights Reserved.

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Moe NozariExecutive Vice President,

Consumer & Office Business

Growth Opportunities in the Consumer & Office Business


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Scotch®

Post-it®

Scotch-Brite™

O-Cel-O™

Scotchgard™

3M™

Filtrete™

Command™

Nexcare™

Broad Portfolio of Category Defining Brands

Long Term Performance


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$2.9$3.2 $3.4

$1.7

$0.0

$1.0

$2.0

$3.0

$4.0

2005 2006 2007 First Half2008

$345

$633$692

$613

$0

$200

$400

$600

$800

2005 2006 2007 First Half2008

2007 Sales By Geographic AreaU.S. 59%

Europe 18%APAC 13%

LAC 10%

Sales Operating Income

LC Growth 6.4% 20.9%7.4% 5.0% 0.5% 20.0% 20.3% 19.9%OI Margin

$Billions & YOY % Chg $Millions & YOY % Chg

+7%+8% +8%

+5%

+3.4%+9%

+1%+10%

2007 Sales By DivisionConstruction & Home

Improvement 27%

Stationery & Office Supplies 44%

Cleaning &Protection 23%

New Business Opportunities 6%

Consumer And Office Business Summary


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Office and Stationery Market

Transparent Tapes

Package Protection

Laminating

Cutting Tools

Adhesives

Specialty Tapes

Recycled Notes

Writing Instruments

Organization Products

Specialty Notes

Collaborative Solutions

Pockets


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Construction and Home Improvement Markets

4” Filters Water FiltrationAir PurifiersAir Cleaning FiltersHome Filtration Products

Safety Products


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Cleaning and Protection Market

Kitchen Bathroom FloorRetail

Chemicals Grooming

Pet Hair


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Consumer Health Care

Cold Sore TreatmentBandages

Braces & Supports

First Aid Tapes

Wound Care Skin CareHot / Cold Therapy

First Aid SuppliesActive™ Line


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Growth Drivers

New Platforms

Core Product Extensions

Key Account Partnerships

International Expansion


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New Platforms for Growth

Expansion Through Our Core Products

Close Partnership With the Key Accounts

Improved International Penetration

Growth Drivers


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Filtrete® Air Cleaning Filters

Filtrete™ Has Transformed the Category


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MPR – 1500 $18.88 (500 Stores)

MPR – 1200 $12.88

MPR – 700 $7.96

MPR – 300 $3.88

Filtrete® Air Cleaning Filters in Aisle

Filtrete® Room Air Purifier Product Line


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Fun

Elegant with fun

Elegant and young

Command® Hooks


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Scotch™ Cutter Product Line


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High Design and Performance in New Scotch® Scissors

KIDS

Playful Emotional

STUDENT

Creative Provocative

WOMEN

Elegant Emotional

Status


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Scotch® Lint Rollers and Fur Fighters


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Expansion Through Our Core Products.



Growth Drivers (cont’d)

ScotchScotch--BriteBrite®® Ultra Ultra NailSaverNailSaver™™ Product FamilyProduct Family


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Martha StewartMartha Stewart


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Writing Instruments

Post-it® Flag Highlighter on Oprah


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Scotch-Blue™ Painter’s Tape

DIY Tape Sales Mix

58% 62% 64% 68% 73%

42% 38% 36% 32% 27%

2003 2004 2005 2006 2007

Value-priced tan masking tapesScotch-Blue™ Painter’s Tape


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Super Sticky Notes

International Herald Tribune


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Sustainability in New Products

Recycled Post-it® Notes

New ScotchgardTM VPI

Scotch-Brite® wipes and scourers from natural and

recycled fibers

Packages and dispensers from recycled DBEF waste


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Opening Price Point

Private Label

Brands

PremiumBrand

Market Segmentation

Price


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Premium Brand

Brands

Private Label

Opening Price Point

Market Segmentation

Price


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Transparent Tape Value MapPr

ice*

*

QualityPrivate Label

$.89

$.99

$1.19

$1.39

$1.49

$1.99

$3.09

$3.19

Pop-Up dispenser + 4 tape pads

**Average Retail Prices


2080 $9.98

2090 Applicator$8.98

Applicator Refill$5.98

2090 $6.97

2030 $4.98

2020 $3.98

5142 $2.48

M3000 $34.98

Scotch-Blue™ Painter’s Tape in Lowe’s Bay

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Repositionable Notes Value Map

* Approximate list price per pad

$0.62

$0.63

$1.62

$1.85

$2.03

$4.36

$5.00

Quality

Pric

e**


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Growth Plan-Construction & Home Improvement

UtilityHooks

Mounting Strips

Blue MaskingTape

Flexible Abrasives

DuctTape

Safety

Applicators Repair andMaintenance

AerosolAdhesives

MaskingSystems

1” Filters DeepFilters

Room AirPurifiers

Air ConditionerFilters

CollegeSolutions

UtilityBath

DesignerHooks

Interlocking

Tapes

Abrasives

Origin Current

ExteriorMaintenance

ContractorSolutions

Hardwood FloorSolutions

Adhesives, Carded & Sealants

ProtectionFilms

OutdoorUsage

PaintingProducts

AirQuality

WaterQuality Thermostats

WaterConservation

Indoor MoistureControl

WaterTreatment

Faux MetalHooks

KitchenOrganizers

BathOrganization

GarageSolutions

ChildrenSolutions

PictureHanging

*Includes all areas in “Current”

Future*


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Expansion Through Our Core Products



Growth Drivers


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Sales Buyer

TradeMarketing

Merchan-dising

LogisticsCustServ

Store OpWarehousing

Finance MIS MIS Finance

Ad/Promotion

New Products Planning Ad/

Promotion

International International

Executive Executive

Sales Buyer

TradeMarketing

Merchan-dising

LogisticsCustServ

Store OpWarehousing

Finance MIS MIS Finance

Ad/Promotion

New Products Planning Ad/

Promotion

International International

Executive Executive

CustomerCustomerCustomer

One Company, One Voice Strategy

TeamTeamTeam3

M

3

M

Customer Recognition


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Customer Recognition


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2007 Planogram8 ft, 22 Private Label SKU’s BEFORE

2008 Planogram16 ft, 3 Private Label SKU’s, Front of

the storeAFTER

Larger and Redesigned Post-it® Planogram at Staples…

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Factors Favoring 3M With Key Accounts

Innovative products

Category defining brands

Good growth margins for the accounts

Good value to the end users

Innovative marketing– e.g., YouTube


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Expansion Through Our Core Products.



Growth Drivers


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Relative Market Penetration Index

$0USUS Europe/

MEAAPAC LAC

100%

32%21% 15%

Sales Penetration

3M Task Light


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…Was Replicated In Taiwan

Filtrete™ UVA 1000

Countertop Water

Filtration


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Carrefour - China

Floor Care in Carrefour Thailand


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Scotch-Brite® - Brazil


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Global Replication of 16 foot Planograms

KoreaKoreaChinaChina

JapanJapan AustraliaAustralia


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Global Replication of Post-it® Note Displays

ArgentinaArgentina GuatemalaGuatemala ColombiaColombia ThailandThailand


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Korea Train Post-it® Super Sticky Promotional Event


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Difficult Macroeconomic Issues in the U.S.

Great Technologies

String of New Products

Excellent Support from the Key Accounts

Global Reach

Enduring Franchise

Summary

Moe Nozari Presentation

Economy & Finance

Transcript of Moe Nozari Presentation