Moe Nozari Presentation

Growth Opportunities in the
Consumer & Office Business

Moe Nozari
Executive Vice President,
Consumer & Office Business

1
© 3M 2008. All Rights Reserved. 2008 3M Investor Conference

Broad Portfolio of Category Defining Brands
Scotch®
Post-it®
Scotch-Brite™
O-Cel-O™
Scotchgard™
3M™
Filtrete™
Command™
Nexcare™
2

Long Term Performance

3

Consumer And Office Business Summary
Sales Operating Income
$Billions & YOY % Chg $Millions & YOY % Chg
$4.0 $800
$3.4 $692
$3.2 $633
$613
$2.9
$3.0 $600
+8% +9%
+8% +3.4%
+7% $1.7 $345
+10%
$2.0 $400

+5% +1%
$1.0 $200

$0.0 $0
2005 2006 2007 First Half 2005 2006 2007 First Half
2008 2008

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

2007 Sales By Division
2007 Sales By Geographic Area
Construction & Home
U.S. 59%
Improvement 27%
New Business
Opportunities 6%
LAC 10%
Stationery & Office
Supplies 44%
APAC 13% Europe 18%
Cleaning &Protection
23%

4

Office and Stationery Market

Specialty Notes
Transparent Tapes Recycled Notes
Cutting Tools

Writing Instruments Collaborative Solutions
Package Protection Adhesives

Laminating Specialty Tapes
Organization Products Pockets
5

Construction and Home Improvement Markets

Home Filtration Products

Air Cleaning Filters 4” Filters Air Purifiers Water Filtration

Safety Products

6

Cleaning and Protection Market
Retail
Kitchen Bathroom Grooming
Floor Chemicals

Pet Hair

7

Consumer Health Care

First Aid Tapes Cold Sore Treatment
Bandages

Skin Care
Hot / Cold Therapy
Wound Care

Active™ Line
Braces & Supports
First Aid Supplies
8

Growth Drivers

New Platforms

Core Product Extensions

Key Account Partnerships

International Expansion

9

Growth Drivers

New Platforms for Growth

Expansion Through Our Core Products

Close Partnership With the Key Accounts

Improved International Penetration

10

Filtrete® Air Cleaning Filters

11

Filtrete™ Has Transformed the Category

12

Filtrete® Air Cleaning Filters in Aisle

MPR – 1500
$18.88
(500 Stores)

MPR – 1200
$12.88

MPR – 700
$7.96

MPR – 300
$3.88

13

Filtrete® Room Air Purifier Product Line

14

Command® Hooks

Elegant
with fun

Elegant
and
young

Fun

15

Scotch™ Cutter Product Line

16

High Design and Performance in New Scotch® Scissors

KIDS

Playful
Emotional

STUDENT

Creative
Provocative

WOMEN

Elegant
Emotional
Status

17

Scotch® Lint Rollers and Fur Fighters

18

Growth Drivers (cont’d)


Expansion Through Our Core Products.



19

Scotch-Brite® Ultra NailSaver™ Product Family

20

Martha Stewart

21

Writing Instruments

22

Post-it® Flag Highlighter on Oprah

23

Scotch-Blue™ Painter’s Tape

DIY Tape Sales Mix

27%
32%
36%
38%
42%

73%
68%
64%
62%
58%

2003 2004 2005 2006 2007
Value-priced tan masking tapes
Scotch-Blue™ Painter’s Tape
24

Super Sticky Notes

25

International Herald Tribune

26

Sustainability in New Products

New ScotchgardTM VPI

Packages and dispensers Scotch-Brite® wipes and
Recycled Post-it® Notes from recycled DBEF waste scourers from natural and
recycled fibers
27

Market Segmentation

Premium
Brand

Brands
Price

Private Label

Opening Price Point
28

Market Segmentation

Premium Brand

Brands
Price

Private Label

Opening
Price Point
29

Transparent Tape Value Map
$3.19
$3.09
$1.99

$1.49
Pop-Up
dispenser +
$1.39 4 tape pads
Price**

$1.19

$.99

$.89

Private Label **Average Retail Prices
Quality
30

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

Applicator
M3000
Refill
$34.98
$5.98

2030
2080
$9.98 $4.98

2090 2020
Applicator $3.98
$8.98

5142
2090
$2.48
$6.97

31

Repositionable Notes Value Map
$5.00

$4.36

$2.03
Price**

$1.85

$1.62

$0.63
$0.62

Quality
* Approximate list price per pad
32

Growth Plan-Construction & Home Improvement

Current Future*
Origin
*Includes all areas
in “Current”

Exterior Hardwood Floor
Flexible
Abrasives Safety Solutions
Maintenance
Abrasives
Aerosol Adhesives,
Outdoor
Carded &
Adhesives
Tapes Usage Sealants
Masking Duct
Blue Masking
Contractor
Tape Systems Tape
Solutions Protection
Painting
Films
Products
Repair and
Applicators
Maintenance

Deep Water Air
1” Filters Thermostats
Filters Quality Quality

Indoor
Room Air Water
Air Conditioner Water
Moisture
Filters
Purifiers Conservation Treatment
Control
Picture
Interlocking
Utility Designer Hanging
Faux Metal Kitchen
Hooks Hooks Hooks Organizers
College Utility Garage Children
Solutions Bath Solutions Solutions
Mounting Bath
Organization
Strips
33

Growth Drivers


Expansion Through Our Core Products



34

One Company, One Voice Strategy

3 Team Customer
Sales Buyer
M Trade Merchan-
Marketing dising
Store Op
Cust
Logistics Serv Warehousing
MIS Finance
Finance MIS
New
Ad/ Ad/
Planning
Products
Promotion Promotion

International International

Executive Executive

35

Customer Recognition

36

Customer Recognition

37

Larger and Redesigned Post-it® Planogram at Staples…
2007 Planogram
BEFORE
8 ft, 22 Private Label SKU’s

2008 Planogram
AFTER
16 ft, 3 Private Label SKU’s, Front of
the store

38

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

39

Growth Drivers


Expansion Through Our Core Products.



40

Relative Market Penetration Index

100%

32%
21%
15%
$0
US Europe/US APAC LAC
MEA
Sales Penetration
41

3M Task Light

42

…Was Replicated In Taiwan

Filtrete™
UVA 1000
Countertop
Water
Filtration

43

Carrefour - China

44

Floor Care in Carrefour Thailand

45

Scotch-Brite® - Brazil

46

Global Replication of 16 foot Planograms
China Korea

Japan Australia

47

Global Replication of Post-it® Note Displays

Argentina Guatemala Colombia Thailand

48

Korea Train Post-it® Super Sticky Promotional Event

49

Summary

Difficult Macroeconomic Issues in the U.S.
Great Technologies
String of New Products
Excellent Support from the Key Accounts
Global Reach
Enduring Franchise

50

Moe Nozari Presentation

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