Q4 2015 3 m earnings presentation

1. All Rights Reserved.26 January 2016© 3M
2015 Fourth Quarter
Business Review
January 26, 2016
(unaudited)

Forward Looking Statement
This presentation contains forward-looking information about 3M's financial results and estimates and business prospects that
involve 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 words
and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans
or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic
and capital markets conditions and other factors beyond 3M's control, including natural and other disasters affecting the
operations of 3M or its customers and suppliers; (2) 3M's credit ratings and its cost of capital; (3) competitive conditions and
customer preferences; (4) foreign currency exchange rates and fluctuations in those rates; (5) the timing and market
acceptance of new product offerings; (6) the availability and cost of purchased components, compounds, raw materials and
energy (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, and
possible organizational restructuring; (8) generating fewer productivity improvements than estimated; (9) unanticipated
problems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches
and other disruptions to 3M's information technology infrastructure; and (10) legal proceedings, including significant
developments that could occur in the legal and regulatory proceedings described in 3M's Annual Report on Form 10-K for the
year ended December 31, 2014, and its subsequent quarterly reports on Form 10-Q (the “Reports”). Changes in such
assumptions or factors could produce significantly different results. A further description of these factors is located in the
Reports under “Cautionary Note Concerning Factors That May Affect Future Results” and “Risk Factors” in Part I, Items 1 and
1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Report). The information contained in this presentation is
as of the date indicated. 3M assumes no obligation to update any forward-looking statements contained in this presentation as
a result of new information or future events or developments.

 GAAP EPS of $1.66, down 8.3% year-on-year
 Excluding restructuring, EPS of $1.80, down 0.6% year-on-year
 Sales of $7.3 billion, down 5.4% in dollar terms
 Organic local currency declined 1.1%
 Acquisitions, net of divestitures, increased sales by 1.5%
 Foreign exchange translation (FX) reduced sales by 5.8%
 Operating margins of 20.5%, down 100 basis points year-on-year
 Excluding restructuring, operating margins of 22.1%, up 60 basis points
 Returned $1.8 billion to shareholders via dividends and gross share repurchases
Q4 2015 Summary
Refer to 3M’s January 26, 2016 press release for full details.

 Organic local currency:
 U.S. -0.4%
 Asia Pacific -2.7%
 China/Hong Kong -3%
 Japan -3%
 EMEA 1.1%
 West Europe up slightly
 Latin America/Canada -0.6%
 Mexico +7%, Brazil -6%
 FX reduced sales by 5.8%
 Euro -13%, Yen -5%, Real -34%
($M) US APAC EMEA LAC
Organic volume -1.0% -2.5% -0.8% -6.0%
Price +0.6% -0.2% +1.9% +5.4%
Organic local currency -0.4% -2.7% +1.1% -0.6%
Acq/div +1.7% +0.7% +1.8% +1.3%
FX ----- -4.2% -11.7% -18.6%
Total growth +1.3% -6.2% -8.8% -17.9%
Q4 2015 Sales Recap
-5.4%
-5.8%
1.5%
-1.1%
1.2%
-2.3%
Total
FX
Acquisition/divestiture
Organic local currency
Price
Organic volume
Worldwide Sales Change Due To:

Q4 2015
Restructuring
Q4 2015 ex-restructuring
Pension/OPEB
Strategic investments
FX
Organic volume
Productivity/other
Acquisitions, net of divestitures
Price/raw materials
Q4 2014
Operating margin of 20.5%,
down 100 basis points; up 60 basis points
excluding restructuring
0.0%
($M)
Q4
2014
Q4
2015 Change
Sales $7,719 $7,298 -5.4%
Gross profit $3,692 $3,471 -6.0%
% to sales 47.8% 47.5% -0.3 pts
SG&A $1,594 $1,538 -3.5%
% to sales 20.7% 21.1% +0.4 pts
R&D & related $436 $433 -0.7%
% to sales 5.6% 5.9% +0.3 pts
Operating income $1,662 $1,500 -9.7%
% to sales 21.5% 20.5% -1.0 pt
Net income $1,179 $1,038 -12.0%
GAAP earnings per share $1.81 $1.66 -8.3%
21.5%
-0.3%
-0.4%
-0.6%
20.5%
Q4 2015 P&L
-1.6%
+0.1%
+2.0%
-0.2%
22.1%

$1.81
$1.66
Q4 2014 Q4 2015
-8.3%
Q4 2014 GAAP EPS $1.81
Organic growth, margin
expansion
+$0.03
 Includes headwinds of $0.05 from higher
pension/OPEB expense and $0.04 from
strategic investments
Tax rate -$0.01
 Q4 2015 28.6% (excluding restructuring)
vs. Q4 2014 28.0%
FX -$0.11  Pre-tax earnings impact of $96M
Acquisitions and
divestitures*
+$0.02
 Includes net impact from closed
acquisitions and divestitures
Shares outstanding +$0.06  Average diluted shares down 4%
Q4 2015 ex-restructuring $1.80
Restructuring -$0.14  Pre-tax earnings impact of $114M
Q4 2015 GAAP EPS $1.66
Q4 2015 GAAP EPS
* Acquisitions include Capital Safety, Polypore’s Separations Media business; divestitures include Library
Systems and license plate converting business in France

($M)
Q4
2014
Q4
2015 Change 2014 2015 Change
Operating cash flow $2,183 $2,338 $155 $6,626 $6,420 ($206)
Capital expenditures ($490) ($446) $44 ($1,493) ($1,461) $32  Expecting FY 2016 of $1.3B to $1.5B
Free cash flow $1,693 $1,892 $199 $5,133 $4,959 ($174)
Free cash flow conversion 144% 182% +38 pts 104% 103% -1 pt  Expecting FY 2016 of 95% to 105%
Dividends $544 $628 $84 $2,216 $2,561 $345
Gross share repurchase $1,279 $1,134 ($145) $5,652 $5,238 ($414)  Expecting FY 2016 of $4B to $6B
Total cash to shareholders $1,823 $1,762 ($61) $7,868 $7,799 ($69)
Q4 2015 Cash Flow

 Organic local currency growth:
 By business: strong sales growth in 3M purification
and automotive OEM was offset by declines in
industrial adhesives and tapes, abrasives, and
advanced materials
 By area: sales grew in EMEA, Latin America/Canada
and Asia Pacific, but declined in the U.S.
 Automotive OEM business posted strong organic
growth driven by increased market penetration
 Polypore’s Separations Media acquisition
integration on-track and meeting financial
objectives; 50 basis points dilutive to margins
($M)
Q4
2014
Q4
2015
%
Growth
Sales $2,627 $2,461 -6.3%
Organic local currency -1.8%
Acquisition/divestiture +1.7%
FX -6.2%
Operating income $538 $476 -11.6%
Operating margin
Ex-restructuring
20.5%
20.5%
19.3%
21.0%
-1.2 pts
+0.5 pts
Industrial

 By business: sales grew in roofing granules and
commercial solutions; traffic safety and security was
flat; personal safety declined
 By area: sales declined in Asia Pacific, the U.S., EMEA
and Latin America/Canada
 Commercial solutions selected by leading financial
institution to supply films for re-imaging campaign
 Capital Safety integration on-track and meeting
profit expectations
 Net acquisition/divestiture impact increased
operating margins by 1.5 percentage points
Safety & Graphics
($M)
Q4
2014
Q4
2015
%
Growth
Sales $1,367 $1,294 -5.3%
FX -7.4%
Operating margin
Ex-restructuring
20.8%
20.8%
21.8%
22.7%
+1.0 pt
+1.9 pts

Health Care
($M)
Q4
2014
Q4
2015
%
Growth
Sales $1,392 $1,381 -0.8%
Organic local currency +4.5%
FX -6.1%
Operating income $431 $444 +2.7%
Operating margin
Ex-restructuring
31.0%
31.0%
32.1%
32.8%
+1.1 pts
+1.8 pts
 By business: sales grew in health information systems,
food safety, oral care, drug delivery systems and critical
and chronic care
 By area: sales grew in all areas led by Asia Pacific, Latin
America/Canada and EMEA
 3M Hosted Sustainability in Health Care Summit;
highlighted innovative best practices while
showcasing 3M products and solutions for improving
sustainability in hospitals
 Continued strong growth in developing economies;
particular strength in China/Hong Kong
 Planning to reinvest benefit from suspension of
medical device tax into our U.S. Health Care business

Electronics & Energy
($M)
Q4
2014
Q4
2015
%
Growth
Sales $1,371 $1,210 -11.7%
Acquisition/divestiture -0.7%
FX -3.3%
Operating margin
Ex-restructuring
18.7%
18.7%
16.5%
17.5%
-2.2 pts
-1.2 pts
 By business: electronic-related sales declined 8%
(sales declined in electronics materials solutions and
display materials and systems); energy-related sales
declined 6% (sales declined in renewable energy,
telecom and electrical markets)
 By area: sales declined in the U.S., EMEA, Latin
America/Canada and Asia Pacific
 Launched joint development program with HP to
combat visual hacking with integrated privacy
solutions for notebook displays
 Portfolio management actions (renewable energy)
reduced Electronics & Energy margins by 2.4
percentage points

Consumer
($M)
Q4
2014
Q4
2015
%
Growth
Sales $1,128 $1,101 -2.4%
Organic local currency +2.7%
Acquisition/divestiture ----
FX -5.1%
Operating income $254 $254 +0.5%
Operating margin
Ex-restructuring
22.5%
22.5%
23.1%
23.4%
+0.6 pts
+0.9 pts
 By business: sales grew in home improvement,
stationery and office supplies, and home care;
consumer health care declined
 By area: sales grew in all areas led by the U.S., Asia
Pacific and EMEA
 Continued to expand presence in home furnace
filter market with Filtrete™ brand
 Strong holiday sales in Scotch® and Command™
products

2015 Full-Year Performance
 Solid financial results despite challenging external environment
 Investing in the business: capital expenditures $1.5 billion, R&D $1.8 billion,
acquisitions $3.7 billion
 Significant progress on our three key levers: portfolio management, investing in
innovation, business transformation
 Completed corporate restructuring … further strengthening competiveness
 Launched new brand platform … “3M Science. Applied to Life.™”
 Returned $7.8 billion to shareholders via dividends and gross share repurchases
 Delivered strong ROIC of 22.5%

2016 Planning Estimates
 GAAP EPS of $8.10 to $8.45, up 7% to 11%
 Sales growth
 Organic local-currency growth of +1% to +3%
 Foreign currency translation headwind of -1% to -3%
 Acquisitions, net of divestitures, add approximately +1%
 Tax rate of 29.5% to 30.5%
 Free cash flow conversion of 95% to 105%

Q & A

s
Appendix

Business Segment Information
Net Sales Operating Income Net Sales Operating Income
Business Groups Q4 2014 Q4 2015 Q4 2014 Q4 2015 2014 2015 2014 2015
Industrial $2,627 $2,461 $538 $476 $10,990 $10,328 $2,389 $2,263
Safety & Graphics $1,367 $1,294 $285 $282 $5,732 $5,515 $1,296 $1,305
Health Care $1,392 $1,381 $431 $444 $5,572 $5,420 $1,724 $1,724
Electronics & Energy $1,371 $1,210 $257 $200 $5,604 $5,220 $1,115 $1,102
Consumer $1,128 $1,101 $254 $254 $4,523 $4,422 $995 $1,046
Corporate and Unallocated ($1) $1 ($67) ($123) $4 $1 ($251) ($355)
Elimination of Dual Credit ($165) ($150) ($36) ($33) ($604) ($632) ($133) ($139)
Total $7,719 $7,298 $1,662 $1,500 $31,821 $30,274 $7,135 $6,946

Q4 2015 3 m earnings presentation

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