3M Report

George Buckley
Chairman of the Board, President, and CEO

3M Company
Continuing
On the Path to
Higher Growth
October 9, 2007
3M 2007. All Rights Reserved.
2007 3M Investor Conference
Higher Growth Is Fundamental To Our Long Term

Success
1. Rebuilding R&D to improve new product flow and impact
2. Complement the core through acquisitions
3. Financing the growth through supply chain re-engineering
4. Developing a more entrepreneurial and responsive culture
2
What Has Changed Since 18 Months Ago?
Early analysis quickly identified:
Eighteen months ago, we told you what we were planning to do and,

since then, weve been simply executing
The causes of slow growth

The way to accelerate it
Were building the plants, doing the acquisitions, investing in R&D and fixing
the things which were broken and selling those we dont need or want
What is clearer to us now?
The vital importance of the supply chain initiative

The vital importance of 3Ms traditional core
The power of 3Ms enduring franchises .. And how to secure them
The fact we cannot rely only on big bets (e.g., Aldara) for growth
The fact we can finely balance growth, ROIC and margin
3
Growth Inspired by Our Customers, Balanced with

Operational Excellence
Growth
Protect and
Grow the Core
1. New Technology
4. Breakthrough
Opportunities
(BTOs)
Adjacency
Build Out
2. New Products
5. Localized, Simplified
Supply Chains
3. M&A
1. Factory Cost
Reduction
2. Control Price
Leakage
6. Go to
Market
4. Service & Quality

Revolution
5. Sourcing
Organizational excellence within a growth culture essential

4
3. Solve Low
Turns Inventory
6. Lean Six Sigma
The Dynamics of Growth
Many companies covet growth and believe it to be the best

value creator
Companies that participate in broad markets will always, in

the absence of something special, tend to the mean growth
rate. Growth above market is not a right
A company cannot sustain higher growth rates than the

market unless it does at least one of three things:
Creates new markets at growth rates consistent with their long

term growth expectations. Saturation always happens
Penetrates new segments, e.g. international or the pyramids
lower levels
Moves to markets where the average growth rate is higher
Sustained growth above the average is therefore a very

challenging goal for corporations to achieve
5
Why Growth Naturally Runs Out; Market Saturation

Assume we grow at three times (10%) the market rate; heres what happens
3M Share
Balance
3M Share
Balance
3M Share
Balance
91%
Year 0
Market Grows
@ 3%
87%
Year 5
Market Grows
@ 3%
83%
Market Grows
@ 3%
Year 10
17%
9%
13%
3M Share
Balance
3M Share
Balance
76%
66%
Market Grows
@ 3%
Market Grows
@ 3%
Year 15
Year 20
34%
24%
6
Market twice
the size
growing @
10%
Essentials of 3Ms Growth Plan

Rebuilding & extending the core; lowest risk and fastest results
Protect and defend the core; inventing a new future

Fixing chronic capacity issues
Broaden the product portfolio to become more important to customers
Invest in the future
R&D spending increases, protecting our flanks and reengaging the labs
Acquisitions, Break Through Opportunities (BTOs) and feet on the street
Improving supply chain speed and efficiency
Shortening most of our supply chains

Driving growth by going local with regional brands and manufacturing
Releasing working capital and lowering entropy costs and effective tax rate
Experiment with new markets
Emerging Business Opportunities (EBOs) and other adjacencies
Greater emphasis on International markets growth

7
A Visual Of Our Basic Strategy

Strategic
Thrust
Grow the Current
Core Business
Defend and extend the core

Build scale
Build relative share
Localization
Disruptive technologies
Build long term competency
Complementary
Acquisitions
Follows core strategy

Supports adjacencies
Mostly tuck-ins
Occasional transformation
8
Build New
Businesses
Seeded by small M&A

Mega Trends
Track and Trace
Minerals extraction
Oil & Gas
Food safety
International
Growth
BRICP
No country left behind
Core Growth Remains The First Mission

Grow the
Current Core
Extend The Core
Build first where were strong

Build scale & relative share
Fill product white spaces
Be important to customers
Use dual branding
International localization
Local acquisitions
Private labeling
Constant reinvention
Localization
Differentiation
Build key partnerships
Build Broad Long

Term Competencies
Imagine, dream and invent

Beat competitors to the future
Plan for cannibalization
Licensing
Avoid NIH syndrome
Develop broad based long-term capabilities

Acquire supporting technology with quality brands
Build volume and scale
9
Invent a
New Future
We Made Solid Progress in 2007

Reinvigorating R&D
11% increase over 2006*

Building on EBOs
New product vitality index up from 20% to 24%
Accelerated International Growth
Building local/regional brands

Pursued profitable adjacencies
Invest in a better Supply Chain
28% increase in Capex over 2006

Improving local source of supply
Korea New respiratory facility
Poland New optical facility
Canada New CHIM tape facility
China New Industrial tapes facility
Seed Further Growth in the Core via acquisitions
10
15 acquisitions YTD
*ex-pharma, Brontes in 2006

Capital Spending 2001-2007

+25%
CAGR
Supply Chain
Optical and Film
-20%
CAGR
Growth/Strategic
Sustain
2001
2002
2003
2004
2005
Building the capital assets to drive growth

11
2006
2007E
Elements of Growth
3Ms Core Strength: Connecting Technology to Markets

A
b
B
i
A
c
C
e
E
m
A
d
D
d
F
c
A
m
D
i
F
e
F
s
I
s
A
n
D
o
F
i
I
m
L
m
A
s
E
c
F
l
I
n
M
d
P
m
S
m
N
t
P
o
S
u
M
i
N
w
P
p
T
t
M
e
M
o
O
p
P
r
V
p
M
f
M
r
P
d
R
p
W
e
P
e
S
e
W
o
3M Technology Capability
NPI
Voice of The Market
13
Technology-enabled
solutions
3Ms Multiple Technology Platforms

Ab
Abrasives
Ac
Acoustics
Ad
Adhesives
Am
Bi
Biotech
Ce
Ceramics
Dd
Em
Di
Fe
An
Do
Analytical
Dental &
Orthodontic
Materials
As
Ec
Energy
Components
Nanotechnology
Fc
Flexible
Converting
& Packaging
Display
Nt
Electronic
Materials
Drug
Delivery
Advanced
Materials
Applicat ion
Software
Pm Sm
Investment
priority
Mi
Fs
Is
Nonwoven
Materials
Me
Mo
Op
Integrated
Systems
Design
Fi
Im
Lm
Mf
Mr
Light
Mgmt
Mechanical
Fasteners
Microreplication
Fl
Fluoromaterials
Imaging
In
Inspection &
Measurement
Metal Matrix
Composites
Molding
Flexible
Electronics
Filtration,
Separation,
Purification
Films
Nw
Microbial
Detection &
Control
Md
Medical
Data Mgmt
Optoelectronics
Pd
Particle &
Dispersion
Processing
Pe
Predictive
Engineering
& Modeling
Polymer
Melt
Processing
Specialty
Materials
Po
Su
Porous
Materials &
Membranes
Surface
Modificat ion
Pp
Tt
Precision
Processing
Track and
Trace
Pr
Vp
Process
Design &
Control
Rp
Vapor
Processing
We
Radiation
Processing
Accelerated
Weathering
Se
Wo
Sensors
Wound
Mgmt
Successful new product growth builds on uncommon connections

14
The Oldest Can Be Forever New - Abrasive Reinvention

FROM
TO
Trizact
Cubitron
Traditional mineral materials and market focus;

metal finishing and wood-working
2003 OI Margin = 12%
2003 ROIC = 16%
2003 Growth Rate 1%
Super Abrasives
Sandblaster
Synthetic materials and specialized

applications; aerospace, healthcare,
composites
2012 OI Margin = 25%
2012 ROIC = 45%
2007 Growth Rate = 7.8%
Movement to higher growth, higher profit market zones

15
Hook-it
3Ms Platforms Broadly Supported by Nanotechnology

Ce
Ceramics
Ad
Adhesives
Am
Fi
Films
Advanced
Materials
Nw
Mr
Nonwoven
Materials
Microreplication
Nanotechnology
Nanomaterial
hardcoats
Zirconia cubes
10nm
Silica spheres
75 nm
Nanoprocessing
Nanocomposites
Nanocatalysis
Nanofabrication
Window Film
Dental restoratives
Filtration
Drug Delivery
Reinventing material science through nanotechnology

16
Rekindling the Spirit of Innovation

Technology
leadership
Broad patent portfolio

140 Technology Platform Experts identified and recognized
Subject Matter Expert roster published and available across 3M
Executive
support
Tech Time with George

Monthly meetings with CTO
R&D executive leadership within every Big B
Top scientist (T6/T7) advisory board
Strengthening the innovation culture
2003 R&D opinion survey highlighted job fears, time pressures, and
emphasis on formal processes (e.g., Six Sigma)
2007 survey shows a committed technical community, encouraged to

collaborate, freedom to focus on new ideas
Continued recognition for innovation
Innovation Funding grants (e.g., Genesis, Alpha)
Circle of Technical Excellence and Carlton Society recognition
3M Culture
Technical Community is getting re-engaged

17
Stepping Up The Pace In New Products Our Vitality Index

($MM)
$9,000
$8,000
2005 Launches
$7,000
2009 Launches
$6,000
2008 Launches
2007 Launches
$5,000
2006 Launches
$4,000
2005 Launches
2004 Launches
2003 Launches
$3,000
2002 Launches
2001 Launches
$2,000
$1,000
$0
2005
2006
2007
Estimate
18
2008
Forecast
2009
Forecast

($MM)
$9,000
$8,000
2006 Launches
$7,000
2009 Launches
$6,000
2008 Launches
2007 Launches
$5,000
2006 Launches
$4,000
2005 Launches
2004 Launches
2003 Launches
$3,000
2002 Launches
2001 Launches
$2,000
$1,000
$0
2005
2006
2007
Estimate
19
2008
Forecast
2009
Forecast

($MM)
$9,000
$8,000
2007 Launches
$7,000
2009 Launches
$6,000
2008 Launches
2007 Launches
$5,000
2006 Launches
$4,000
2005 Launches
2004 Launches
2003 Launches
$3,000
2002 Launches
2001 Launches
$2,000
$1,000
$0
2005
2006
2007
Estimate
2008
Forecast
2009
Forecast
2007 new products expected to deliver ~33% more than historical average
20

($MM)
$9,000
$8,000
2008 Launches
$7,000
2009 Launches
$6,000
2008 Launches
2007 Launches
$5,000
2006 Launches
$4,000
2005 Launches
2004 Launches
2003 Launches
$3,000
2002 Launches
2001 Launches
$2,000
$1,000
$0
2005
2006
2007
Estimate
2008
Forecast
2009
Forecast
21

($MM)
75% of new product

2009 sales expected
from products
already launched
$9,000
$8,000
2009 Launches
$7,000
2009 Launches
$6,000
2008 Launches
2007 Launches
$5,000
2006 Launches
$4,000
2005 Launches
2004 Launches
2003 Launches
$3,000
2002 Launches
2001 Launches
$2,000
$1,000
$0
2005
2006
2007
Estimate
2008
Forecast
2009
Forecast
22
Towards More Impactful New Product Launches

Tools & training developed for successful launch execution; ~90%
adoption rate
Trained 8,000 people globally on commercialization; established
Marketing University
Established a commercialization community for best practices with
15,000 members
Intense focus on top 2006 and 2007 new product introductions (NPI)
~45%
Top Product
Launches
1H2006
1H2007
Becoming more effective in new product introductions

23
The 3M Growth Strategy Is Taking Hold

8%
2%
3M LC Revenue Growth
6%
Acquisition
1%
6%
5%
Organic
Oil and Housing

Headwinds Plus a Slowing
GDP in US and Asia
03-05
06-07 YTD
Increasing growth, without favorable economic conditions

24
New Product Success Ensures Long-Term Market

Sustainability
Just Some of 3Ms New

Platforms
A Great New Emerging Platform: Optically Clear

Adhesives (OCA)
Light Extraction PSA for OLED

Protective film
Functional
PSA
Injected
Hole
Visible Light Photons

OLED Glass
(n=1.51)
Organic Layer Injected Electron
26
ITO
Anode
Al/Cathode
High Performance Window Film

Prestige and Crystalline Window Films
Film + Nanomaterials
Nanomaterial
hardcoat
HPWF 875
PSA
Liner
Film offers IR reflectivity and the

nanomaterial hardcoat absorbs IR
resulting in rejection of up to 97% of the
suns IR energy
Tiered global launch with a new business
model to meet service expectations met
100% of sales forecast in 1st year
Superior heat rejection with low reflectivity

and high visible light transmission
Established a technology platform to

launch subsequent products (Prestige
Safety 2007).
27
New Consumer Products Inspired by Non-Woven

Technology
Non-woven
New performance attributes

Natural materials
Sustainable and renewable
28
Microreplication Drives Abrasives - 3M Trizact Belts
3M Trizact Cloth Belts
3M Trizact Diamond Cloth Belts

Benefits
- Increases throughput
- Reduces down-time
- Improves quality
- Long lasting
- Lower overall cost
29
Advanced Materials Provides Basis for 3M Aluminum

Composite Conductor Composite (ACCR)
Key
Key Features:
Features:
Capable
Capable of
of carrying
carrying 2-3x
2-3x the
the
current
current of
of conventional,
conventional, steel
steel
core
core conductors
conductors
Strong like steel
Compatible
Compatible with
with existing
existing
structures
structures
Light weight like aluminum

Highly conductive
Less
Less sag
sag
Low thermal expansion
Almost
Almost no
no corrosion
corrosion due
due to:
to:
Chemically
Chemically compatible
compatible
materials
materials
Environmental
Environmental stability
stability
Metal
Metal matrix
matrix
(inorganic)
(inorganic)
Aluminum-oxide
Aluminum-oxide fibers
fibers
30
Advances in Ceramics Produce High Strength Glass Bubbles

Stronger, Lighter, More Versatile
Processing Advances and Capacity
Building Blocks for Composites, Cements,
Insulation, Oil and Gas Fluids
Enhanced
Oil & Gas
Production
31
So What Makes 3M So Resilient?
3Ms Enduring Franchises
First, What Not To Do
Growth First Requires Plugging The Leaky Bucket
Push into upper

middle level market
Competitors push into the lower

market we refuse to defend
The objective is to bulwark and defend the

markets that we created, not just to grow
33
Then What To Do
The Enduring Franchises of 3M
What similarities do Scotch tape, Post it Notes, Scotch-Brite,

Trizact and many other 3M franchise products have?
3M usually invented the basic technology
They serve all market segments from the bottom to the top
Customers make more money on them than we do
As the market commoditized, 3M served all segments as and

when they gradually emerged, steadily building market
competence and influence
They were built up over many years
In developed markets they almost always began at the top and
spread to the bottom of the market tier
34
A Good Example The Scotch Tape Market Pyramid

Scotch Tape Success:
Services all market segments
Great aesthetic design
Superb management of price and
value laddering
World class service delivery
Outstanding account management
Worlds leading brand
Consumer friendly technologies
Customers make higher profits than
3M
Several critical elements sustain enduring market success

35
Traffic Safety Sustaining the Enduring Film Franchise

Traffic Safety sustained
the film franchise:
Moved the Engineering
Diamond Grade
Grade film down the

pyramid
High Intensity Grade
Launched new,
innovative products for
the top of the pyramid
Engineering Grade
Traffic Safety Division remains globally pre-eminent in traffic signage

36
Medical Tian Tu (Second

Way) China Brand
Developed
Developing
Paint Application
Solutions
Type of market
Different Strategies for Different Situations
Expand the base
Extend the core
Create a presence
Build a presence
Emerging
Developed
Franchise strength
One size does not fit all

37
Post-it Notes
Scotch-Brite
Natural Fiber
Wipes
How We Think About Successful Franchises

Where 3M typically wins: Business Success Factors
Market
size
Market
structure
Small
<$1B
Discrete
Discrete
Growth
<5%
Margin
<10%
Use of multiple Level of

technologies regulation
Low
Global
adaptability
Not
regulated
Single
country
Moderate
Moderate
$1-10B
$1-10B
Well-defined
overlaps
5-10%
5-10%
10-15%
Medium
Low
TransTransnational
national
Large
>$10B
Highly
interrelated
>10%
>15%
>15%
High
High
High
High
Global
Our best businesses fit with the majority of these factors

38
3Ms Enduring Franchises Span the Company
3M franchises
Tapes
Automotive
aftermarket
Office
Display
Safety
Dental
Films
Ceramics
Enduring franchises
are the majority of sales
Adhesives
Advanced
materials
Nonwovens
Microreplication
3M Technologies
Technologies provide the foundation
39
But Franchises Must Be Constantly Refreshed

1.0
Relative market power
0.9
Industrial
0.8
0.7
N(t) = Noe-t
0.6
Consumer
0.5
0.4
= 0.2
= decay constant
No = starting point
0.3
0.2
Electronics
=1
0.1
=5
0.0
Time
Moving down the pyramid enables enduring franchises

40
Extending Our Optical Franchise

Four market elements; hand helds, monitors, laptops and LCD TV
Battery powered devices favor high performance films; high performance
films in plug-in devices produce better energy efficiency
Usage changes. More movie watching on monitors drives recontenting
We anticipate the LCD TV market will follow similar dynamics weve seen
and experienced in other markets, but played at faster speed than most
The LCD TV market will exist for many years . substitution not likely in
high volume for many years
And yes, it will see pricing pressure over time, but afterwards, stability and
recontenting opportunities emerge
Turbulence at the bottom of the market as new players enter and succeed
or fail
41
Extending Our Optical Franchise
Current 3M
product focus
Brightness
Gain
DBEF + BEF
DBEF
BEF
Looking to use
film technology
leadership and
scale to enter
all segments
1.6
1.5
Comp BEF
1.5
Microreplicated Gain Diffuser
Bead Coated Gain Diffuser
Participation in all segments is essential to maintain leadership

42
1.8
1.4 1.2
Acquisitions
Higher organic growth results from more
frequent acquisitions
Acquisitions are not only
about bulk, but are helpful
in:
Acquisitions
Growth
Base
43
1.
Strengthening the base by

filling in white spaces
2.
May facilitate growth through

entry into a new market
3.
May provide a key new

technology or brand
4.
Fast capacity acquisition
The Expanding Impact of M&A

~20
18
2005
2006
2007 estimate
10% Increase in acquisitions in 2007 following 350% increase in 2006

44
Thoughtful Acquisitions Accelerate Core Growth

Growth rate
20%
19%
Intl
14%
15%
Intl
7%
2004-2007 3M Sales CAGR
US
US
2006 Acquisitions*
2007 Acquisitions*
Acquisitions Enable Growth Beyond Market Averages

*Note: 1st year projected sales growth
45
M&A to Bolster Technology Portfolio:

Brontes Technologies
46
Building New Businesses
Emerging Business Opportunities (EBOs)
~20%
where technical capability exists
~$3B
~$1B
2012
Division in I&TB
Food Safety
BU in HCB
Acquisitions and additional resources

provide momentum
Sales (MM)
Filtration
Consolidate related activities into a single

entity to gain economies of scale and focus
2007
Emphasis on high growth opportunities
Mining & Mineral

Extraction
Market Center in
SS&PS
Track & Trace
Renewable
Energy
Oil & Gas
Division in SS&PS
BU in I&TB
BU in I&TB
Great start: >20% growth in 2007

47
Renewable Energy EBO
Ab
Bi
Ac
Ce
Em
Ad
Dd
Fc
Am
Di
Fe
Fs
Is
An
Do
Fi
Im
Lm
As
Ec
Fl
In
Md
Pm
Sm
Nt
Po
Su
Mi
Nw
Pp
Tt
Me
Mo
Op
Pr
Vp
Mf
Mr
Pd
Rp
We
Pe
Se
Wo
Solar
- Films capable of concentrating
sunlight 500x
- Coatings to reduce dirt build-up
- Encapsulation used to limit
moisture and film degradation
BioFuels
- Ethanol extraction membrane
- 50% less energy in distillation
- 2X throughput
- Potential for cellulosic and butanol
Wind
- Existing coating products to
improve hardness and reduce
fractures in composite blades
- Protective films for turbine
blades
Leveraging 3M capabilities to build businesses

48
Solar: Distinct Segments But Common Needs
Flat Panel
Photovoltaic
(<25 kW)
Concentrating
Photovoltaic
(CPV)
Solar Thermal
(CSP)
Thin Film and

Next Generation
(> 50MW)
(various kW)
(25 kW 30MW)
Environmental Durability: UV Stability, Scratch Resistance, Self Clean, Moisture, Sealing, Cracking, Yellowing
Increased Efficiency:
Improved materials, capturing more sunlight, heat management,
Lower Cost:
Improved cost per watt, fabrication/mfg processes, reduced weight
49
Solar: Strong Capabilities & Technology Base
Optically Clear UV
Stable Fluoropolymer Films
Micro-replicated
Lens Film
Metallized
Anti-soil &
Electrical Foil &
Mirror Films Hard Coatings
Connectors
Barrier Films
Structural Tapes,
Sealants & Adhesives
50
IR Reflective Films
Wavelength Selective
Mirror Films
60 Years of Experience
(Weathering Resource Center)
International Operations
Our Largest Growth Platform
Inge Thulin
Executive Vice President, International Operations
International Operations
$13.6B 2006 Sales*
$3.7B 2006 OI*
62% of 2006 3M Total
65% by 2012
65 Subsidiaries
34 Laboratories
85 Manufacturing Sites
$2.0
Latin America/
Canada
$5.4
$6.2
Europe, Middle
East & Africa
Asia Pacific
40,000 Employees
52
99% Local Nationals
Our Largest Growth Platform
*Excludes Pharma and special items.

International Recent Performance

Revenue*
Operating Income*
$13.6
$3.5
$12.2
$11.7
$3.7
$3.2
$10.2
$2.4
03-06 CAGR 10%
'03
'04
'05
03-06 CAGR 15%
'03
'06
'04
Priorities
53
'05
'06
Priorities
Gain share in West Europe and Japan
Decentralized organization
Expand BRICP
Productivity
Big 3M/portfolio management
Price/margin management
Grow at more than 2.5X IPI
Operational exellence/Lean Six Sigma
Localization
Resource reallocation
*Excludes Pharma and special items.

3Ms Subsidiary Network
Dominican
Republic
z
Puerto Rico
z
Trinidad
& Tobago
z
Norway
z
Czech
Republic Sweden
z
z
Germany
z
Canada
z
Jamaica
z
Mexico
z
Guatemala
z
El Salvador
z
Costa Rica
z
Panama
z
Colombia
z
Venezuela
z
Ecuador
z
Peru
z
Brazil
z
Chile
z Uruguay
z
Argentina
z
East
z
Finland
z
Switzerland
z
Austria
z
Hungary
z
Ukraine
z
Denmark
z
Netherlands
z
Belgium
z
United
Kingdom
z
China
z
Spain
z
Pakistan
z
UAE
z
Israel
z
Egypt
z
France
z
Morocco
z
Italy
z
Greece
z
Kenya
z
Turkey
z
South Africa
z
Romania
z
Russia
z
Kazakhstan
z
Korea
z
Japan
z
Portugal
z
54
Poland
z
Indonesia
z
Malaysia
z
Sri
Lanka
z
India
z
Australia
z
Key
z Sales & Marketing
Manufacturing/Converting
Technical Capabilities
Hong Kong
z
Taiwan
z
Vietnam
z
Philippines
z
Thailand
z
Singapore
z
New Zealand
z
International Growth Dynamics
West Europe
Canada
Latin America
Forecasted
Sales
CAGR
55
Central/East
Europe
Middle East/
Africa
Current Sales
Developing
APAC
Developed
APAC
Cornerstones of International Growth Strategy

Outpace Local Economy by at Least 2.5X
Grow the Current

Core Business
Complementary
Acquisitions
Build New
Businesses
International
International
Growth
Growth
Four Cornerstones of the International Growth Plan

Portfolio Management
and Geographic
Expansion
Brand and Reputation

Building
56
R&D & Supply

Chain Localization
Human Capital
Planning
Managing International Growth

Cornerstones
& Geographic Expansion
Play the Big 3M

Increase Levels of Customer Intimacy Key Accounts
Develop and Launch Products to Meet Local Needs
Borderless Customer Success
Brand and
Reputation Building
Margin Management
Building strategic and local brands
Government relations
Manage the brand pyramid
R&D and Supply

Chain Localization
Customer focused Supply Chain

Capital Center-of-Gravity Shift
Financial Optimization through Strategic Investments
Improve Productivity Levels
Recruit, Retain, Enable the Best

All Employees Aligned Around Corporate Objectives
Compensation for Performance
Leadership For Growth
Human Capital
Planning
57

&
& Geographic
Geographic
Expansion
Expansion
Brand
Reputation
Brandand
& Reputation
Building
Building
58
R&D
&Supply
Supply Chain
R&D &
Chain
Localization
Localization
Human Capital
Human
Capital
Planning
Planning
Developed Countries Most Important Today

Developing Countries Accelerating
41%
31%
26%
28%
59%
74%
2004
72%
2005
2007
Developed
59
69%
Developing
2012
Opportunities in Developing Markets

Growth in Infrastructure Spending
Population growth and desire for basic services will fuel investment
in roads, power generation and distribution and other infrastructure.
Migration of Industrial Business

With infrastructure in place and political stability, manufacturing
migrates to developing countries in search of lower costs.
Emerging Middle Class

Growing employment base provides increased income and
standard of living.
Increased Health Care Spending

Growing middle class increases expectations and expenditures on
health care services.
3M Portfolio Meets Needs of Developing Markets

at Every Step of Their Evolution
60
Geographic Expansion: PLUS

The Future Is Here And Now!!!
Ukraine
Kazakhstan
Turkey
Vietnam
UAE (Dubai)
Indonesia
61
Long-Term Focus on Developing Countries Drives

Growth
Russia
India
Deep Roots
in BRIC(P)
Brazil
China
1950
1960
Poland
1970
1980
UAE
62
2000
Turkey Vietnam
Indonesia
Investing in
our future
1990
2010
Ukraine
Kazakhstan

&
& Geographic
Geographic
Expansion
Expansion
Brand
Reputation
Brandand
& Reputation
Building
Building
63
R&D
&Supply
Supply Chain
R&D &
Chain
Localization
Localization
Human Capital
Human
Capital
Planning
Planning
Strong Brands and Market Positions
Brand Equity and Investment Shared Among Businesses

64
Strong Brands and Market Positions
Mahindra
Abzil Industria
e Comercio
Nylonge
DMS Chile
Building a Regional Presence Through Acquisitions

65
Neoplast

&
& Geographic
Geographic
Expansion
Expansion
Brand
Reputation
Brandand
& Reputation
Building
Building
66
R&D
&Supply
Supply Chain
R&D &
Chain
Localization
Localization
Human Capital
Human
Capital
Planning
Planning
R&D
Localization
Brazil
New Customer Technical Center in 2005
Technologies: Bio, Nano
Specialty M aterials: Hook/Loop,
M olding, Non-PVC Films, Acrylic Foam Tape
Europe and Latin America
Germany, France, UK
Centers of Excellence (CoE):
Automotive, Dental, Telecom,

Specialty Materials, Polymers,
Poland
Optical Manufacture & Test
Medical & Consumer Healthcare Center of Excellence
Russia
New Customer Technical Center May 2006
Focus: Abrasives, Automotive
Consumer & Office Center of Excellence
Consumer, Oil & Gas, Drug Delivery
Asia
India
Customer Technical Centers (New Delhi, AOEM Design Studios)
Engineering Centers: Automotive, Corrosion Protection, Textiles
Water filtration, fire protection
Analytical development
67
Korea
Asia Display Tech Center
Asia Tape & Adhesives
Labs: Nonwovens, RFID, Electronics,
Energy, Nano
China
New R&D Center June 2006
Global Labs: HV Electrical, SMS
Asia Lab: Telecom
Technologies/products: Nonwoven,
Reactors, Medical, Corrosion Protection
Display backlight center
Japan
SEMS (software)
Electronics, Automotive
Technologies: Track & Trace,
Microreplication, Liquid Filtration
Singapore
Southeast Asia region: product localization,
corporate research lab, medical product
development & regulatory
Electronics, Fine Pitch Flex Circuitry,
RFID, Cuno
International Supply Chain Footprint - Current
Germany
UK
France
Italy
Spain
Canada
Poland
Japan
Korea
China
India
Mexico
Singapore
Brazil
68
International Supply Chain Footprint - Potential
Estonia
Russia
Poland
West Europe
Turkey
Canada
Russian
Far-East
Japan
Korea
China
India
Middle East
Mexico
Vietnam
Singapore
Central America
Indonesia
Brazil
Current Supply Chain

Expanded Supply Chain Footprint
69

&
& Geographic
Geographic
Expansion
Expansion
Brand
Reputation
Brandand
& Reputation
Building
Building
70
R&D
&Supply
Supply Chain
R&D &
Chain
Localization
Localization
Human Capital
Human
Capital
Planning
Planning
Human Capital Planning

Recruit, retain and enable the best employees
Significantly accelerate knowledge transfer to
developing and emerging countries
Move resources from back-office to customer-facing
and from foundational businesses to growth
opportunities.
5% front-line, 8%+ back-office productivity improvement
71
3M International Summary
International growth continues to expand
Developed countries will grow through penetration and market share
gain
Developing countries accelerating
BRICP and PLUS strategy
Supply chain, brand and product localization
Strategic acquisitions provide locally-relevant brands and product

portfolio
All about execution starting with the customer!!!
Growth Possible in All Corners of the World

72
Financing Growth Through Supply Chain Improvements

The opportunity
3Ms history led to very complex supply chains
Average time to traverse global supply chain is ~100 days
Multiple plant hops, often backward and forward across continents, is the norm
at 3M
Structure drives up inventory and working capital usage and lowers fill rates
Led to expensive, if flexible, machine tools
Frequent machine set ups and high excess and obsolete inventory
Air freight, manual intervention and expediting are normal
Large numbers of SKUs complicate the picture, compounded by chronic
capacity shortages
Goal: Make it close to where we sell it

74
We Are Already Making Strong Progress

Russia Mfg
Korea OH&ES
2007
2007
2007
China Suzhou LCD II
Poland Optical
UK
Poland
2007
Russia
China
Italy
Korea
Japan
Taiwan
India
2007
China CHJ III Mfg
2008
Poland Tapes
2007
2007
India Industrial Tapes
2008
China Medical Mfg
75
China GuangZhou
Capacity Adds are Reducing Distance to Customer

Example: Maintenance Free Respirators and Laminating Adhesives
From US Supplying
the World
To Korea for APAC
to Customer
~3,000
Miles miles)
AverageAverage
distanceDistance
to customer
~30%
(or ~1,000
76
Our Emerging Manufacturing Footprint

Super Hub concept
Large factories ($400Million to >$1B SVOP) and distribution centers

Aligned to regional and area projected sales growth
Shared resources and infrastructure among businesses/divisions
Located in countries with maximum corporate and regional benefits
Benefits
Shared infrastructure and resources produces: Lower risk to individual businesses; economies of scale
Faster capital equipment installation and better resource utilization
Regional centers supply chain expertise
Regional ownership with increased customer responsiveness
Principal locations = China, South East Asia and the Middle East
77
Globalizing the Super Hub concept
Super Hubs would produce at levels similar to Hutchinson facility

78
A Huge Prize Remains for Supply Chain Improvements

Accelerated Growth
Service, higher fill rates
Cost reduction
2012 Opportunity
+1 point minimum,
adds ~$100M OI
Labor, logistics, shrinkage
+80 to 100 bps gross margin,

adds ~$300M to $400M OI/year
+
Lower Inventory
WIP, FG, local sourcing
Minimum +1 turn,
adds ~$700M to FCF
=
$1 Billion-Plus
Opportunity
Accelerate Growth Drive Productivity Reinvest

79
Summary
Understanding The State Of Our Portfolio

Business Type
Characteristics
Sales Weight
OI%
On course
Growing > 5%
82%
83%
15%
16%
Medical Supplies,
Commercial Graphics,
Automotive Aftermarket
and Abrasives, et. al
Workable
solutions
Need modification
Reposition
Challenged Business or 3%
Technology
Industrial Minerals,
Electronic Interconnect,
Filtration, Optical Films
Personal Care, Touch

Systems
81
1%
Growth Targets
Organic
LC* Target
LC 6 Qtr. Avg.
Organic
Incl. Acquisitions
Industrial and
Transportation
5-8%
4.3%
7.6%
Health Care (ex. Pharma)
8%+
9.9%
12.3%
Display and Graphics
5-8%
5.2%
5.4%
Consumer and Office
5-8%
6.6%
7.4%
Safety, Security and

Protection Services
8%+
8.0%
14.4%
Electro and Communications
4-6%
1.6%
3.1%
3M (ex. Pharma)
5-8%
5.6%
7.9%
*Local Currency Sales Growth = Volume + Price
82
What Have We Left Out?

For every supply chain need there is a corresponding systems
need that will be gradually addressed after leaning out the supply
chain
Selective plant closures and mothballing in high-cost, high-tax
areas with no foreseeable fill plan
No big bangs are expected
There will be a few small divestitures where we think we are

below critical mass
83
3Ms Long Term Business Summary

1. Growth plans in place to deliver >2x IPI
2. Commitment to double-digit earnings growth
3. Maintain >20% ROIC and premium margins
4. Moving into faster-growing market spaces
5. EBOs making good progress
6. Supply chain improvements in place to finance growth
7. Tax opportunities abound
Great opportunities remain for 3M
84
Our Principal Mission
Driving Growth

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George Buckley

Chairman of the Board, President, and CEO

2007 3M Investor Conference

Higher Growth Is Fundamental To Our Long Term

2007 3M Investor Conference

What Has Changed Since 18 Months Ago?

Early analysis quickly identified:

Eighteen months ago, we told you what we were planning to do and,

The causes of slow growth

What is clearer to us now?

The vital importance of the supply chain initiative

2007 3M Investor Conference

Growth Inspired by Our Customers, Balanced with

4. Service & Quality

Organizational excellence within a growth culture essential

2007 3M Investor Conference

The Dynamics of Growth

Many companies covet growth and believe it to be the best

Companies that participate in broad markets will always, in

A company cannot sustain higher growth rates than the

Creates new markets at growth rates consistent with their long

Sustained growth above the average is therefore a very

2007 3M Investor Conference

Why Growth Naturally Runs Out; Market Saturation

2007 3M Investor Conference

Essentials of 3Ms Growth Plan

Protect and defend the core; inventing a new future

Invest in the future

Improving supply chain speed and efficiency

Shortening most of our supply chains

Experiment with new markets

Emerging Business Opportunities (EBOs) and other adjacencies

Greater emphasis on International markets growth

2007 3M Investor Conference

A Visual Of Our Basic Strategy

Defend and extend the core

Follows core strategy

2007 3M Investor Conference

Seeded by small M&A

Core Growth Remains The First Mission

Build first where were strong

Build Broad Long

Imagine, dream and invent

Develop broad based long-term capabilities

2007 3M Investor Conference

We Made Solid Progress in 2007

11% increase over 2006*

Accelerated International Growth

Building local/regional brands

Invest in a better Supply Chain

28% increase in Capex over 2006

Seed Further Growth in the Core via acquisitions

*ex-pharma, Brontes in 2006

2007 3M Investor Conference

Capital Spending 2001-2007

Building the capital assets to drive growth

2007 3M Investor Conference

3M 2007. All Rights Reserved.

2007 3M Investor Conference

3Ms Core Strength: Connecting Technology to Markets

Voice of The Market

2007 3M Investor Conference

3Ms Multiple Technology Platforms

Successful new product growth builds on uncommon connections