Thulin bernstein conference

1© 2015 3M. All Rights Reserved.Bernstein Strategic Decisions Conference 2015

Inge ThulinChairman of the Board, President & Chief Executive Officer

May 29, 2015


Forward Looking StatementThis presentation contains forward-looking information about 3M's financial results and estimates and business prospects thatinvolve substantial risks and uncertainties. You can identify these statements by the use of words such as "anticipate,""estimate,” "expect," “aim," "project," "intend," "plan," "believe," "will," “should," “could," "target," "forecast" and other wordsand terms of similar meaning in connection with any discussion of future operating or financial performance or business plansor prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economicand capital markets conditions and other factors beyond 3M's control, including natural and other disasters affecting theoperations of 3M or its customers and suppliers; (2) 3M's credit ratings and its cost of capital; (3) competitive conditions andcustomer preferences; (4) foreign currency exchange rates and fluctuations in those rates; (5) the timing and marketacceptance of new product offerings; (6) the availability and cost of purchased components, compounds, raw materials andenergy (including oil and natural gas and their derivatives) due to shortages, increased demand or supply interruptions(including those caused by natural and other disasters and other events); (7) the impact of acquisitions, strategic alliances,divestitures, and other unusual events resulting from portfolio management actions and other evolving business strategies, andpossible organizational restructuring; (8) generating fewer productivity improvements than estimated; (9) unanticipatedproblems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breachesand other disruptions to 3M's information technology infrastructure; and (10) legal proceedings, including significantdevelopments that could occur in the legal and regulatory proceedings described in 3M's Annual Report on Form 10-K for theyear ended December 31, 2014, and its subsequent quarterly reports on Form 10-Q (the “Reports”). Changes in suchassumptions or factors could produce significantly different results. A further description of these factors is located in theReports under “Cautionary Note Concerning Factors That May Affect Future Results” and “Risk Factors” in Part I, Items 1 and1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Report). The information contained in this presentation isas of the date indicated. 3M assumes no obligation to update any forward-looking statements contained in this presentation asa result of new information or future events or developments.


Investing in Innovation

Portfolio Management

Business Transformation

Executing our playbook to create value for customers and shareholders


Our Vision

3M Technology Advancing Every Company3M Products Enhancing Every Home3M Innovation Improving Every Life

Our Strategies- Expand Relevance to our Customers and our Presence in the Marketplace

- Gain Profitable Market Share and Accelerate Market Penetration Everywhere

- Invest in Innovation: Invigorate Existing Market Opportunities and Focus on Emerging Megatrends

- Intensify Capabilities to Achieve Regional Self-Sufficiency

- Build High Performing and Diverse Global Talent

- Drive Consistent Superior Levels of Operational Excellence


Industrial

4.9% Organic Growth

21.7% OI Margin

Health Care

5.8% Organic Growth

30.9% OI Margin

Consumer

3.9% Organic Growth

22.0% OI Margin

Safety & Graphics

5.4% Organic Growth

22.6% OI Margin

Electronics & Energy

5.2% Organic Growth

19.9% OI Margin

4.9% Organic Growth

22.4% Operating Income Margin

$31.8 Billion Sales

$7.1B Operating Income

2014 full-year performance

6Bernstein Strategic Decisions Conference 2015 © 2015 3M. All Rights Reserved.


*Refer to 3M’s January 27, 2015 press release for full details.

2013-2017 Financial Objectives*

Free Cash Flow Conversion

ROICOrganic Revenue Growth

EPS Growth

~100%

~20%

4-6%9-11%

• Strong financial results

― GAAP EPS of $7.49, up 11.5% year-on-year― Organic local-currency sales growth +4.9%― ROIC of 22%― Free cash flow conversion of 104%― Operating margins of 22.4%, up

0.8 percentage points year-on-year• Investing in the business: capital expenditures

$1.5 billion, R&D $1.8 billion, acquisitions $1.0 billion

• Significant progress on our three key levers: portfolio management, investing in innovation, business transformation

• Returned $7.9 billion to shareholders via dividends and gross share repurchases






EPS Growth

~100%

~20%

4-6%9-11%

11.5%













EPS Growth

~100%

~20%

4-6%9-11%

4.9%













EPS Growth

~100%

~20%

4-6%9-11%

22%













EPS Growth

~100%

~20%

4-6%9-11%

104%













EPS Growth

~100%

~20%

4-6%9-11%

104%

11.5%

4.9%

22%









Capital allocation success in 2014Dividend increased for the 57th consecutive year…and share repurchase program on track

2015e20142012 2013

Dividends Paid per Share ($)

• Increased 2015 dividend by 20%, after a 35% increase in 2014

• Disciplined approach to effectively lower our cost of capital

+7%

+35%

+20%

+8%$2.36

$2.54

$3.42

$4.10

2013 -2017e

2003 -2007

2008 -2012

Gross Stock Repurchases $20B-

$22B

$7.4B$10.4B


Our fundamental strengths are the foundation of 3M’s performanceLeveraging these assets creates value; strengthening them ensures our future

BrandBrand equity in the 3M brand and in strategic brands that are shared across business groups.

Global capabilitiesSubsidiary front- and back-office footprint that allows for the effective development, adaptation and commercializa-tion of products.

ManufacturingUtilization of 3M manufacturing footprint and technology, including process trade secrets, leading to higher-performing products and lower unit cost.

TechnologyAbility to share and combine elements of 3M’s broad technology portfolio to produce unique, differentiated products, translating to premium margins.


We leverage these strengths to expand relevance globally

Proven modelfor success

Infrastructure

Manufacturing

Safety

Retail

Health Care

GD

P pe

r cap

ita

Time


Three key levers

Investing in Innovation Business TransformationPortfolio Management


Roadmap• Continue portfolio management deployment

across the corporation

• Reallocate resources to 3M’s best opportunities

• Augment organic growth through M&A playbook

Portfolio actions continue to create value

Portfolio Management


Significant progress made since introducing more active portfolio management in 2012

Benefits realized• Greater scale and customer

relevance

• Reduced costs through efficiency and productivity improvements

• Reallocated resources to our best opportunities

• Accelerated priority R&D investments

• Focused M&A activities

Combined businesses to increase customer relevance and drive scale

• Consumer & Office• Safety, Security &

Protection• Industrial & Transportation• Electronics &

Communications• Display & Graphics• Health Care

• Industrial

• Health Care

• Consumer

• Safety & Graphics

• Electronics & EnergyBusiness Groups

5Realigned to business groups

6Sectors

27Businesses

40Businesses


2015 acquisitions strengthen the 3M portfolio

• Charlotte, North Carolina; major operations in Germany

Location:

• Separations Media membrane filtration business

What:

• $1B; majority financed with international cash

Acquisition Price:

• Enhances 3M’s core filtration platform; utilizes 16 of 46 technology platforms

• Generates new growth opportunities across the company

Rationale:

• San Diego, CaliforniaLocation:

• Health care products that disinfect and protect devices used for access into a patient’s bloodstream

What:

• Broadens 3M’s vascular access product offerings

• 3M’s international presence provides significant growth opportunities

Rationale:

• ~5X Sales; ~12X EBITDAMultiples (TTM):

• ~$30MSales (TTM):

Separations Media Businessof Polypore International Inc.

Footnote: The Separations Media transaction is subject to regulatory approvals, customary closing conditions and the closing of this transaction immediately prior to the closing of Asahi Kasei's transaction with Polypore. Footnote: The Ivera Medical transaction closed in March 2015.


Roadmap• Enhance commercialization effectiveness through

customer insights

• Increase R&D investment and productivity

• Build new platforms for growth by extending the core and investing in disruptive technologies

Increasing customer relevance through innovation

Investing in Innovation


Technology Platforms


We increased the amount and focus of our R&D investment

R&D IntensityR&D / Total Sales

2014 2017e2012

Productive investment in disruptive technologies and product platforms

Extending core platforms

Expanding into new markets

Disrupting markets5.5%

~6.0%5.6%


Roadmap• Realize benefits gained through ERP deployments

• Deliver productivity through enhanced supply chain and manufacturing capabilities

• Increase service levels to customers and reduce cost to serve

Creating value for customers and shareholders

Business Transformation


Ensuring success through a regional ERP roll-out planKey Components

• Europe deployment underway and accelerated to capture greater value…sooner

• U.S. deployment to follow Europe

• Total project investment of $1.1 to $1.2 billion

• Improved customer service levels and reduced time to market for new products

• Lower cost of goods sold, inventory and effective tax rate

• Estimating annual operational savings in range of $0.5B to $0.7B by 2020

• Structural working capital improvement of $0.5B by 2020

Full transparency across workstreams and their interdependencies

Strong governance of critical path activities to ensure success

Value of Business Transformation front and center in our deployment plan

Becoming more effective and efficient in serving our customers globally

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• Sales of $7.6 billion; Organic growth in all business groups and geographic areas• Organic local currency +3.3%• Foreign currency (FX) reduced sales by 6.5%• Sales down 3.2% in dollar terms

• GAAP EPS of $1.85, up 3.4% year-on-year

• Operating margins of 22.8%, up 0.9 percentage points year-on-year

• All business groups > 21%


• Increased first-quarter per-share dividend by 20 percent

Q1 2015 highlights

Refer to 3M’s April 23, 2015 press release for full details.


Appendix


Industrial

With Leading Market Positions In:― Industrial abrasives― Auto body repair solutions― Car care DIY― Structural adhesives and tapes― Filtration and purification systems― Specialty additives― Tapes and fasteners for personal hygiene products

Adhesives & Tapes

38%

Abrasives14%

Advanced Mat'ls12%

Filtration6%

Aerospace3%

Transportation 27%

U.S.38%

EMEA25%

APAC26%

LAC11%

2014 Sales By Business

2014 Sales By Geography

($M) 2012 2013 2014 CAGR Sales $10,008 $10,657 $10,990 5%GAAP Operating Income $2,244 $2,307 $2,389 3%GAAP Operating Margin 22.4% 21.6% 21.7%


Safety & Graphics

Personal Safety42%

Traffic Safety & Security

27%

Commercial Solutions

26%

Roofing granules

5%

U.S.36%

EMEA27%

APAC22%

LAC15%



With Leading Market Positions In:― Respiratory, hearing and eye protection solutions― Reflective signage for highway and construction safety and license plates― Premium large format graphic films for advertising and fleet signage― Roofing granules for asphalt shingles― Personal identification issuance and authentication products― Building safety solutions― Architectural design solutions for surfaces



U.S.17%

EMEA12%

APAC64%

LAC7%



Display Matls & Systems

38%

Electronics Matls

Solutions24%

Electrical Markets

23%

Telecom8%

Renewable Energy

7%

Electronics & Energy

With Leading Market Positions In:― Optically clear adhesives, Novec™ fluorochemicals, transport solutions

and flexible circuits for electronic components― Light management films that enhance brightness and provide energy

efficiency in liquid crystal displays (LCD)― Electrical vinyl rubber and mastic tapes― Medium voltage cable accessories, OEM insulation tapes― Telecommunications copper splicing ― Fiber splicing/connectivity

($M) 2012 2013 2014 CAGR Sales $5,458 $5,393 $5,604 1%GAAP Operating Income $1,026 $954 $1,115 4%

GAAP Operating Margin 18.8% 17.7% 19.9%


Health Care

Infection Prevention

29%

Critical & Chronic

Care22%

Oral Care24%

Health Info Sys12%

Drug Delivery

9%

Food Safety

4%

U.S.45%

EMEA29%

APAC16%

LAC10%



With Leading Market Positions In:― Skin and wound care (transparent IV dressings and tapes)― Infection prevention (auscultation, specialty drapes and surgical clippers)― Patient warming solutions― Oral care solutions― Coding and reimbursement software― Drug delivery (inhalation systems)― Food safety indicator solutions



Consumer

U.S.57%

EMEA14%

APAC18%

LAC11%



DIY36%

Stationery & Office

32%

Home Care23%

Consumer Health Care9%

With Leading Market Positions In:― Consumer tapes― Repositionable notes― Home air filtration― Cleaning products for the home― Consumer bandages braces and

supports― Retail abrasives

($M) 2012 2013 2014 CAGR Sales $4,386 $4,435 $4,523 2%GAAP Operating Income $943 $945 $995 3%GAAP Operating Margin 21.5% 21.3% 22.0%

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