3M Chairman Outlines 2014 Performance and Growth Strategy

1© 2015 3M. All Rights Reserved.Electrical Products Group Conference 2015
Inge Thulin
Chairman of the Board, President & Chief Executive Officer
May 18, 2015

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
Annual Report 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 1, 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.

Investing in Innovation
Portfolio Management
Business Transformation
Executing our playbook to create value for customers and shareholders

Our Vision
3M Technology Advancing Every Company
3M Products Enhancing Every Home
3M 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
Investing 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

6Electrical Products Group 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

Free Cash Flow
Conversion
ROICOrganic Revenue
Growth
EPS Growth
~100%
~20%
4-6%
9-11%

11.5%
― ROIC of 22%

Free Cash Flow
Conversion
ROICOrganic Revenue
Growth
EPS Growth
~100%
~20%
4-6%
9-11%
 
4.9%
― ROIC of 22%

Free Cash Flow
Conversion
ROICOrganic Revenue
Growth
EPS Growth
~100%
~20%
4-6%
9-11%
  
22%
― ROIC of 22%

Free Cash Flow
Conversion
ROICOrganic Revenue
Growth
EPS Growth
~100%
~20%
4-6%
9-11%
   
104%
― ROIC of 22%

Free Cash Flow
Conversion
ROICOrganic Revenue
Growth
EPS Growth
~100%
~20%
4-6%
9-11%
   
104%

11.5%

4.9%

22%
― ROIC of 22%

Capital allocation success in 2014
Dividend 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 performance
Leveraging these assets creates value; strengthening them ensures our future
Brand
Brand equity in the
3M brand and in strategic
brands that are shared
across business groups.
Global capabilities
Subsidiary front- and back-
office footprint that allows
for the effective development,
adaptation and commercializa-
tion of products.
Manufacturing
Utilization of 3M
manufacturing footprint
and technology, including
process trade secrets,
leading to higher-performing
products and lower unit cost.
Technology
Ability 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 model
for success
Infrastructure
Manufacturing
Safety
Retail
Health Care
GDPpercapita
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
5
Realigned to business groups
6Sectors
27
Businesses
40
Businesses

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 Business
of 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 Intensity
R&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
%5.7%

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 plan
Key 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

 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%
 Returned $1.5 billion to shareholders via dividends and gross share repurchases
 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%
Abrasives
14%
Advanced
Mat'ls
12%
Filtration
6%
Aerospace
3%
Transportation
27%
U.S.
38%
EMEA
25%
APAC
26%
LAC
11%
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
Safety
42%
Traffic
Safety &
Security
27%
Commercial
Solutions
26%
Roofing
granules
5%
U.S.
36%
EMEA
27%
APAC
22%
LAC
15%
― 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 and lighting applications
($M) 2012 2013 2014 CAGR
Sales $5,406 $5,584 $5,732 3%

U.S.
17%
EMEA
12%
APAC
64%
LAC
7%
Display
Matls &
Systems
38%
Electronics
Matls
Solutions
24%
Electrical
Markets
23%
Telecom
8%
Renewable
Energy
7%
Electronics & Energy
― 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%

Health Care
Infection
Prevention
29%
Critical &
Chronic
Care
22%
Oral Care
24%
Health Info
Sys
12%
Drug
Delivery
9%
Food
Safety
4%
U.S.
45%
EMEA
29%
APAC
16%
LAC
10%
― 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
($M) 2012 2013 2014 CAGR
Sales $5,138 $5,334 $5,572 4%

Consumer
U.S.
57%
EMEA
14%
APAC
18%
LAC
11%
DIY
36%
Stationery
& Office
32%
Home Care
23%
Consumer
Health
Care
9%
― 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%

3M Chairman Outlines 2014 Performance and Growth Strategy

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