3M Company at Bank of America Merrill Lynch Global Industrials & EU Autos Conference 2015

© 2015 3M. All Rights Reserved.

March 17, 2015

H.C. Shin Executive Vice President, International Operations

2 © 2015 3M. All Rights Reserved. BofAML Global Industrials & EU Autos Conference 2015

Forward Looking Statements 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," "project," "intend," "plan," "believe," "will," "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 the Company's Annual Report on Form 10-K for the year ended December 31, 2014. 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. The

information contained in this presentation is as of the date indicated. The Company assumes no obligation to update any forward-looking statements contained in this presentation as a result of new information or future events or developments.


Content

• 3M Overview

• 3M International Operations Overview

• Execution Roadmap Through Our Levers

• Q&A/Discussion


Executing our playbook to create value for customers and shareholders

Investing in Innovation

Portfolio Management

Business Transformation



Free Cash Flow Conversion

~100%

ROIC

~20%

Organic Revenue Growth

4-6%

EPS Growth

9-11%

We are tracking toward the objectives we established in 2012 (2013 – 2017)

Aggressive and realistic targets


Solid performance continues across each of our Business Groups 2014 results

Industrial $11.0B

4.9% Organic Growth 21.7% OI

Health Care $5.6B


Consumer $4.5B


Safety & Graphics $5.7B


Electronics & Energy $5.6B


$31.8B 4.9% Organic Growth

22.4% OI

Note: Business Group sales include dual credit


Leveraging and building our fundamental strengths

Leveraging these assets creates value; strengthening them ensures our future


Strong financial results GAAP EPS of $7.49, up 11.5% year-on-year Organic local-currency sales growth +4.9% Operating margins of 22.4%, up 0.8 percentage points year-on-year Free cash flow conversion of 104% ROIC of 22%

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

A solid 2014 full-year performance

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


$10.9

$0

$5

$10

$15

$20

$25

2013-14 Prior 2013-17e Range

New 2013-17e Range

Gross Share Repurchases $20 to $22 $17 to $22

$2.36 $2.54 $3.42

$4.10

0% 10% 20% 30% 40% 50% 60%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

2012 2013 2014 2015e

Dividends

Dividends Paid Per Share ($) Payout Ratio (%)

Increasing cash returns to shareholders

2015e cash dividend of ~$2.6B, an all-time record

2015 dividend marks 57th consecutive year of annual increases

Paid dividends without interruption for 98 years

Baseline assumption: future increases to grow in-line with earnings over time

Building on long-term track record of returning significant cash to shareholders

+7% +8% +35%

Note: 2015e reflects the annualized Q1 2015 dividend increase of 20% to $1.025 per share vs. $0.855 per share in Q1 2014

$15B to

$7.5B

Share repurchases of $5.2B and $5.7B in 2013 and 2014, respectively

Share repurchase program will add approximately 3% to earnings over 2013-17 plan

Disciplined approach: minimum repurchase threshold; adjust up or down depending on evolving cash sources and uses and relative value

($B)

+20%


Content

• 3M Overview



• Q&A/Discussion


Asia Pacific

3M International Operations: Strong and sustainable growth platform

3% 17%

3%

20% 2% 8%

Asia

Central East

Europe

Latin America

West Europe

Canada

Middle East & Africa

International Operations in 2014 $20B in sales 23% operating income to sales 70 countries 54,000+ employees 127 plant sites 35 country laboratories 4,000 R&D headcount

Distribution of 3M Worldwide Sales

10% Greater China

37% United States

Thriving in a dynamic global environment


2009 2014 2017e

$7 46%

$11 55%

55%-60%

$8 54%

$9 45%

40% - 45% International Developed Markets

International Developing Markets

2009 Total sales

(in $B) $15 $20 $23-25

Track record of profitable growth

5% Organic local currency 5Y CAGR

International sales, excluding US ($B) 6% Organic local

currency 3Y CAGR


International playbook to succeed in a dynamic, ever-changing global environment

Growth and productivity

focus

Balance sheet management

Culture of compliance

Scenario planning

Structured pricing

management

Price of oil Dollar appreciation

Geopolitics Deceleration CHK & some developing economies


Content

• 3M Overview



• Q&A/Discussion


Key levers will drive value creation going forward

Investing in Innovation Business Transformation Portfolio Management

These levers, combined with more aggressive capital deployment, will drive enhanced value creation


Portfolio Management roadmap

Portfolio actions continue to create value

Continue portfolio management deployment across the corporation

Reallocate resources to 3M’s best opportunities

Augment organic growth through M&A playbook Portfolio Management


We have a stronger portfolio of businesses today than when we started Re

lative

Stra

tegi

c Attr

activ

enes

s

Relative Shareholder Attractiveness

Strategic Review

Heartland

Push Forward


2014 2017e

55% 55-60%

45% 40-45%

Developing Developed

Geographic portfolio: playbook to win in both developed and developing markets

Developed market local megatrends International Sales Mix

9%

3% 3 YR CAGR %

Energy efficiency Technologies Sustainability Aging population

Developing market local megatrends

Air quality Infrastructure Water quality Food safety Middle class consumer


Investing in Innovation roadmap

Increasing customer relevance through innovation

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




46 technology platforms: A shared innovation engine that all businesses leverage


We are increasing the amount and focus of our worldwide R&D investment

R&D Intensity R&D / Total Sales

5.6%5.5%

2014 2017e

~6%

2012

Productive investment in disruptive technologies and product platforms

Extending Core Platforms

Expanding Into New Markets

Disrupting Markets


2014 2017e

$4.3 $4.8-5.3

$2.9 $4.0-4.5

New product modifications New products for new/existing markets

Investing in Innovation – driving faster and effective commercialization Focused Actions

46 Customer Technical Centers

Corporate research laboratories strengthening in China, Germany and Japan

Customer insights for local mega trends •Air quality •Water quality •Food safety

14% 3Y

CAGR

5% 3Y CAGR

International new product sales in $B


Air quality problem in China offers a huge opportunity

A multi hundred million dollar opportunity


Japan Earthquake resistant materials

China Water quality

West Europe Smart city solutions

Converting local megatrend to commercialization

Drinking water system

On line water dispenser

3M Damper

Building damper

Housing damper

Structural analysis

Latin America Ferreteria

Saudi Arabia Oil and gas

Glass bubbles for well stimulation Category management Specific packaging


Business Transformation roadmap

Business Transformation creating value for customers and shareholders

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

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 worldwide operational savings

in range of $0.5B to $0.7B by 2020 Structural worldwide 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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Improving productivity to invest for growth

Lean Six Sigma Excellence Disruptive Cost-Out Innovation Supply Chain Centers of Excellence

Improving our Manufacturing Costs

52.0% 52.1% 52.2% 52.3% 52.4% 52.5% 52.6% 52.7% 52.8%

2012 2013 2014 2015e

International cost of goods sold % to sales

0 50

100 150 200 250 300 350 400

2012 2013 2014 2015e

Focus on Lean Six Sigma Execution Lean six sigma black belt headcount


Summary – 3M International Operations

3M International summary

Strong & proven growth platform

Strong operational excellence

Large untapped local megatrend opportunities

Continuous investment in R&D and commercialization

Diverse global talent

Business

Transformation

Portfolio Management


3 Key Levers Corporate strategies and value systems


Content

• 3M Overview



• Q&A/Discussion


Appendix Refer to 3M's Form 8-K furnished on March 5, 2014 and 3M's Form 8-K filed on May 15, 2014 for a

discussion of the product move between business segments and other changes within business segments that were effective in the first quarter of 2014. As discussed in 3M's second-quarter Form 10-Q

filed on July 31, 2014, 3M made changes within the Electronics and Energy business segment. 3M combined three existing divisions into two new divisions, creating the Electronics Materials Solutions Division and the Display Materials and Systems Division. In addition, in October 2014, 3M merged its Personal Care Division into the Industrial Adhesives and Tapes Division. This presentation reflects the

impact of these changes for all periods presented.


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%



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 and lighting applications



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

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 Care

22% Oral Care

24%

Health Info Sys 12%

Drug Delivery 9%

Food Safety 4%

U.S. 45%

EMEA 29%

APAC 16%

LAC 10%



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


http://solutions.3m.com/wps/portal/3M/en_US/IP/infectionprevention/solutions/skin-prep/hand-antiseptic/?PC_7_RJH9U5230GE3E02LECFTDQ0U57_nid=7MZ3LDGBRGbeVHK1T0WDSNgl

http://solutions.3m.com/wps/portal/3M/en_US/Littmann/stethoscope/electronic-auscultation/model-3000/


Consumer

U.S. 57%

EMEA 14%

APAC 18%

LAC 11%



DIY 36%

Stationery & Office 32%

Home Care 23%

Consumer Health Care

9%

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%

© 2015 3M. All Rights Reserved.

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3M Company at Bank of America Merrill Lynch Global Industrials & EU Autos Conference 2015