JPMorgan Conference Presentation

© 3M 2008. All Rights Reserved. 2008 JPMorgan Basics and Industrials Conference

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George W. Buckley Chairman, President and CEO 3M Company

Accelerated GrowthPremium Returns

Enhanced Shareholder ValueJune 4, 2008

2008 JPMorgan Basics and Industrials Conference© 3M 2008. All Rights Reserved.

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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 conditions; (2) competitive conditions and customer preferences; (3) foreign currency exchange rates and fluctuations in those rates; (4) the timing and acceptance of new product offerings; (5) 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); (6) 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; (7) generating fewer productivity improvements than estimated; and (8) 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, 2007 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 “Risk Factors” in Part I, Item 1A (Annual Report) and in Part II, Item 1A (Quarterly Report). 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.

Forward-Looking Statements

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Today’s Agenda

Recent performance

Unparalleled and diverse portfolio

International operations

Innovation

Financial strength

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2

3

4

5

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Operational ExcellenceGrowth

Planning Framework

Protect and Grow the Core

AdjacencyBuild Out

New Technology New Products

Emerging Bus. Opportunities

(EBO’s)Go to Market

StrategiesLocalized, Simplified

Supply Chains

M&A

Lean Six Sigma / Factory Cost Reductions

Solve Low Turns Inventory

Service & Quality Revolution

Sourcing

Control Price Leakage

Leverage Overhead

Comp/BenefitCompetitiveness

Operational Excellence Within a Growth Culture Is Essential

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A Long-Term Track Record Of SuccessLocal Currency Growth

-2%

0%

2%

4%

6%

8%

10%

2001 2005 2006 2007

Operating Margins

$0

$1,500

$3,000

$4,500

$6,000

2001 2005 2006 20070%

5%

10%

15%

20%

25%

6% CAGR15% CAGR

Ope

ratin

g In

com

e

OI %

EPS

$0

$1

$2

$3

$4

$5

$6

2001 2005 2006 2007

18% CAGR

ROIC %

0%

5%

10%

15%

20%

25%

2001 2005 2006 2007

+8 Points

* Amounts exclude special items and pharma in all periods. See appendix.

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PositivesStrong revenue growth and double-digit profit growth in 4 of 6 businessesProfit margins of 20 percent or better in all businessesRapid growth in developing countries – China, Russia, India, Middle East, Eastern Europe – all growing 15 to 30 percentTax rate improvementClosed Aearo acquisition April 1stBalance sheet remains strong

50th consecutive annual dividend increaseReturned $863 million to shareholders via dividends and share repurchases

ChallengesTough U.S. economy, particularly in retail, auto OEM and housingOptical SystemsCommodity prices at record levels and consequent impact on energy and transportation costs

A Look Back: Q108 Highlights

*Excludes special items in 2007. Refer to 3M’s April 24, 2008 press release for a complete list and explanation of these items.

Sales Up 9%, EPS Up 8%, 23.2% OI Margins In A Tough US Environment; Ex-Optical, Sales & Operating Income Rose 11% & 12%, Respectively

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3M: A Powerful, Diverse and Integrated Enterprise

US34%

LAC11%

APAC27%

EMEA28%

E&C11%

C&O13%

I&TB32%

HCB17%D&G

14%

SS&PS13%

Four of six business—strong sales growth & double-digit operating income increasesResults impacted by weaknesses in D&G and C&O

Q1 2008 Sales = $6.5 billion, up 9%Q1 2008 EPS = $1.38, up 8%

Emerging markets up 13%Developed markets up 7%Total company up 9%

Int’l66%

*Excludes special items in 2007. Refer to 3M’s April 24, 2008 press release for a complete list and explanation of these items.

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Unparalleled and Diverse Portfolio

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Industrial and Transportation

Amounts exclude special items in all periods. See appendix.

Global market leader in tapes, abrasives, autobody repair and

specialty automotive OEM solutions

($ in billions)

$6.0

$6.6

$7.3

$5.6

$5.5

$6.5

$7.5

2004 2005 2006 2007

Sales

$0.9

$1.4

$1.9

Opera

ting I

ncom

e

CAGR: Sales 9%, OI 13%

LC Org Sls 5.2% 3.1% 4.4% 4.0%OI Margin 18.4% 20.0% 20.4% 20.7%

Sales Op Income

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($ in billions)

$2.8

$3.0

$4.0

$3.2

$2.5

$3.4

$4.3

2004 2005 2006 2007

Sales

$0.6

$1.0

$1.3

Opera

ting I

ncom

e

LC Org Sls 2.8% 5.1% 7.4% 13.9%

OI Margin 27.8% 30.0% 28.3% 27.5%


Amounts exclude special items and pharma in all periods. See appendix.

Health Care

Technology leadership across health care market; a growing space driven by aging population and global expansion

Sales Op Income

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LC Org Sls 10.1% 3.1% 4.9% 2.6%

OI Margin 32.8% 32.5.% 28.7% 28.5%

$3.4

$3.6

$3.7

$3.9

$3.0

$3.5

$4.0

2004 2005 2006 2007

Sales

$0.6

$1.0

$1.3

Opera

ting I

ncom

e


($ in billions)


Display and Graphics

Leading market positions in LCD films, traffic safety systems and

commercial graphics

Sales Op Income

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($ in billions)

$2.9

$3.2

$3.4

$2.7

$2.5

$3.0

$3.5

2004 2005 2006 2007

Sales

$0.4

$0.7

$1.0

Opera

ting I

ncom

e


LC Org Sls 10.9% 6.4% 6.8% 4.1%

OI Margin 20.4% 20.9% 20.0% 20.3%

Consumer and Office

Category defining brands: Scotch®, Post-it®, Scotch-Brite®,

Filtrete™ and Command™

Sales Op Income

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($ in billions)

$2.2

$2.3

$2.7

$3.1

$2.0

$2.6

$3.2

2004 2005 2006 2007

Sales

$0.3

$0.6

$0.8

Opera

ting I

ncom

e


LC Org Sls 4.1% 6.2% 9.6% 3.4%

OI Margin 20.9% 22.1% 21.0% 20.9%


Safety, Security and Protection Services

Global leader in respiratory protection, roofing granules, building safety solutions &

automated library systems; emerging security systems & RFID platforms

Sales Op Income

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$2.4

$2.5

$2.7

$2.8

$2.0

$2.5

$2.9

2004 2005 2006 2007

Sales

$0.2

$0.4

$0.6

Ope

ratin

g In

com

e


LC Org Sls 2.1% 3.5% 4.2% -0.5%

OI Margin 12.0% 16.5% 17.5% 19.3%

($ in billions)


Electro and Communications

Leading positions in electrical tapes, copper interconnects, OEM insulating

tapes & medium-voltage splicing & terminating solutions

Sales Op Income

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The 3M Portfolio

E&C11%

SSPS13%

C&O14%

D&G16%

HCB16%

I&TB30%

Res. & Com. Const.4% -5%

Transport10% - 13%

Gov't &Infrastructure

10% - 13%

Industrial25%- 30%

Health Care16%

Consumer14% - 16%

Electronics12% - 15%

Segment Breakdown End Market Breakdown

2007 Sales = $24.5 billion

A Global, Diversified & Powerful Set Of Businesses

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International OperationsOur Largest Growth Platform

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3M’s Subsidiary Network

KeySales & MarketingManufacturing/ConvertingTechnical Capabilities

Venezuela

Panama

El Salvador

Puerto Rico

Trinidad & Tobago

Brazil

UruguayArgentina

Chile

Peru

Colombia

Ecuador

Jamaica

Costa Rica

Guatemala

Dominican Republic

Mexico

Canada

China

Korea

Japan

Taiwan

Hong Kong

Vietnam

Philippines

Thailand

India

Malaysia

Indonesia

New ZealandAustralia

Singapore

Sri Lanka

UAE

Switzerland

Austria

Greece

Italy

Pakistan

Egypt

Kenya

South Africa

Morocco

France

Germany

United Kingdom

Belgium

Netherlands

Denmark

Norway

Sweden Finland

Spain

Portugal

Poland

CzechRepublic

Hungary

Russia

Turkey

RomaniaUkraine

East

Israel

Kazakhstan

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51%

64-65%

40%

45%

50%

55%

60%

65%

70%

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

E

Percentage Non-US

3M’s Dependency on US Economy Lessens Over Time

Amounts exclude pharma in all periods.

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International Sales Growth

Our Single Largest Growth Platform…

$7.5 $7.9$8.5 $8.2 $8.5

$10.2

$11.7$12.4

$13.6

$15.5

4

6

8

10

12

14

$16

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

($ in Billions)

3% CAGR

12% CAGR

Accelerating International Sales Growth

19 Amounts exclude pharma in all periods.

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International Sales Growth

Amounts exclude pharma in all periods

$2.4 $2.5$2.8 $2.7 $2.9

$3.7

$4.5

$5.2

$6.1

$7.0

2

3

4

5

6

7

$8

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

($ in Billions)

5% CAGR

Emerging Markets = Central/Eastern Europe + Middle East Africa + Asia Pacific ex. Japan/ANZ + Latin America

19%+ CAGR

Emerging Markets Adding Almost $1B/Year Or 4% To

Growth

…With a Growing Percentage of Emerging Market Sales

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© 3M 2008. All Rights Reserved. 2008 JPMorgan Basics and Industrials Conference

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Innovation


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Voice of The Market

Technology-enabled solutions

3M Technology Capability

3M’s Core Strength: Connecting Technology to Markets

NPI

A b

B i

A c

C e

A d

D d

A m

D i

A n

D o

A s

E c

E m

F c

F e

F s

F i

I m

F l

I n

I s

L m

M d

M e

M f

M i

M o

M r

P e

N t

N w

R p

S e

P o

P m

W o

V p

S u

S m

O p

P d

P r

P p

T t

W e

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FROM

Traditional mineral materials and market focus; metal finishing and wood-working

2003 OI Margin = 12%2003 ROIC = 16%2003 Growth Rate ≈

1%

The Oldest Can Be Forever New - Abrasive Reinvention

Cubitron™

Trizact™ Super Abrasives Hook-it™

Synthetic materials and specialized applications; aerospace, healthcare, composites2012 OI Margin = 25%2012 ROIC = 45%2007 Growth Rate = 7.8%

Movement to higher growth, higher profit market zones

TO

Sandblaster™

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Lava™ Chairside Oral Scanner“Digital Impressions”

Technology Obtained via Brontes Acquisition

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3M Mobile Projection Products

Huge Interest by branded consumer electronics manufacturers and ODM’s. Applications being considered in:-Mobile Phone Media PlayersDigital CamerasSmartphonesUMPCPocket Big Screen TVsCamcordersLaptops

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New Consumer Products Inspired by Non-Woven Technology

• New performance attributes• Natural materials• Sustainable and renewable

• New performance attributes• Natural materials• Sustainable and renewable

Non-woven

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Low thermal expansionHighly conductive

Light weight like aluminum

Strong like steel

Aluminum-oxide fibersAluminum-oxide fibers

Metal matrix(inorganic)

Metal matrix(inorganic)

Key Features:Capable of carrying 2-3x the current of conventional, steel core conductors

Compatible with existing structures

Less sag

Almost no corrosion due to:Chemically compatible materials Environmental stability

Key Features:Capable of carrying 2-3x the current of conventional, steel core conductors

Compatible with existing structures

Less sag

Almost no corrosion due to:Chemically compatible materials Environmental stability

Advanced Materials Provides Basis for 3M Aluminum Composite Conductor Composite (ACCR)

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IR Reflective FilmsBarrier Films

Structural Tapes, Sealants & Adhesives

Optically Clear UV Stable Fluoropolymer Films

Anti-soil &Hard Coatings

Metallized Mirror Films

Micro-replicatedLens Film

Electrical Foil &Connectors

Wavelength Selective Mirror Films

60 Years of Experience(Weathering Resource Center)

Solar: Strong Capabilities & Technology Base

© 3M 2008. All Rights Reserved.

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2008 JPMorgan Basics and Industrials Conference

Financial Strength

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Financial PolicyFirst priority: fund available organic growth

Capital expenditures: drive 20%+ ROIC via organic growthSupplement organic with accretive, growth-enhancing acquisitions

Increase annual dividendMaintain competitive yield and payout ratioOffset inflation at a minimum, with the maximum dependent on other growth-generating uses at that time

Opportunistic share buybackEconomic dynamics and alternative cash uses will drive repurchase levelsReady to support the stock when warranted

For the right growth investments, lever up as requiredManaging With “AA” Operating Discipline; Will Consider “A” For The Right

Strategic Cash-Generating Opportunity

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Stock Repurchases in Millions

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2001 2002 2003 2004 2005 2006 2007

Cash Back to ShareholdersFor The Period 2001-2007:

$12.7B in share repurchases$8.1B in dividends paidDividend CAGR of 6.5%No-equity-dilution policy

Dividends in Millions

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

2001 2002 2003 2004 2005 2006 2007

Returned 108% of Reported Net Income Via Dividends and Share Repurchases

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Driving Toward Our Long-Term Objectives

Deliver sales growth at >2x IPICustomer-inspired innovationMove into faster-growing market spacesAggressively drive EBOs

Commitment to double-digit earnings growthMaintain >20% ROICContinuous supply chain improvement

Quadruple win: better service, improve inventory, lower logistics cost, lower tax rate

Driving to 30.5% tax rate by 2012

Unlimited Potential for Shareholder Value Creation

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Question and Answer

34


Appendix

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LAC12%

APAC24%

Europe29%

U.S.35%

Industrial & Transportation

2007 Sales by Geography

2007 Sales Breakdown2005 2006 2007 CAGR

Sales $6.0B $6.6B $7.3B 10%

OI $1.2B $1.4B $1.5B 12%

OI% 20.0% 20.4% 20.7%

With leading positions in:AbrasivesIndustrial tapesAutobody repair solutionsSpecialty solutions for automotive OEMs


Other7%Liquid Filtration

7%

Transportation29%

Adhesives & Tapes33%

Energy & Adv Mtls11%

Abrasives13%

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Oral Care26%

Medical50%

Health Information Systems

10%

Drug Delivery14%

LAC8%

APAC11%

Europe36%

U.S.45%


2005 2006 2007 CAGR

Sales $3.0B $3.2B $4.0B 16%

OI $0.9B $0.9B $1.1B 11%

OI% 30.0% 28.3% 27.5%

Health Care2007 Sales Breakdown

Amounts exclude special items and pharma in all periods. See appendix.

With leading positions in:Skin & wound careInfection preventionStethoscopesRestorative dentistry & orthodonticsCoding and reimbursement softwareInhalation drug delivery

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Traffic Safety24%

Optical51%

Projection Systems

5%Commercial Graphics

20%

LAC5%

Europe17%

U.S.19%

APAC59%


2005 2006 2007 CAGR

Sales $3.6B $3.7B $3.9B 5%

OI $1.2B $1.1B $1.1B -2%

OI% 32.5% 28.7% 28.5%

Display & Graphics2007 Sales Breakdown


With leading positions in:LCD filmsCommercial graphicsReflective materials for highway signs, license plates and construction work zones

38


DIY27%

Office & Stationery

44%

Prot. Mtrls & Consumer HC

6%

Home Care23%

LAC10%

APAC13%

Europe18%

U.S.59%


2005 2006 2007 CAGR

Sales $2.9B $3.2B $3.4B 8%

OI $0.6B $0.6B $0.7B 6%

OI% 20.9% 20.0% 20.3%

Consumer & Office2007 Sales Breakdown

Home to many category-defining brands:Scotch®Post-it®Scotch-Brite®Filtrete™Command™

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Security & RFID17%

Roofing Granules9% Personal

Protection Equipment

46%

Building Svcs20%

CorrosionProtection

8%

LAC12%

APAC18%

Europe35%

U.S.35%


2005 2006 2007 CAGR

Sales $2.3B $2.7B $3.1B 15%

OI $0.5B $0.6B $0.6B 12%

OI% 22.1% 21.0% 20.9%

Safety, Security & Protection Services2007 Sales Breakdown


With leading positions in:Respiratory protectionRoofing granules for asphalt shinglesAutomated library systemsBuilding safety solutions

40


Electrical Mkts30%

Electronics43%

Telecom&Other27%

LAC10%

Europe23%

U.S.28%

APAC39%


2005 2006 2007 CAGR

Sales $2.5B $2.7B $2.8B 5%

OI $0.4B $0.5B $0.5B 14%

OI% 16.5% 17.5% 19.3%

Electro & Communications2007 Sales Breakdown


With leading positions in:Electrical tapesSplicing/terminating solutions for medium voltageOEM insulating tapesCopper interconnectsFluorochemicals for electronics applications

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Non-GAAP Financial Measures3M Company and Subsidiaries

SUPPLEMENTAL CONSOLIDATED INFORMATION NON-GAAP FINANCIAL MEASURES

(Millions, except per-share amounts) (Unaudited)

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company also discusses non-GAAP measures that exclude special items. Sales, operating income and diluted earnings per share measures that exclude special items and that exclude the impact of Pharmaceuticals are not in accordance with, nor are they a substitute for, GAAP measures. Special items represent significant charges or credits that are important to an understanding of the Company’s ongoing operations. The company uses these non-GAAP measures to evaluate and manage the Company’s operations. The company believes that discussion of results excluding special items provides a useful analysis of ongoing operating trends. The determination of special items may not be comparable to similarly titled measures used by other companies. Special items for the twelve months ended December 31, 2007 and 2006 and prior periods presented have been previously provided (See Note 1). In addition, the Company believes that providing financial results excluding the impact of Pharmaceuticals provides useful information (See Note 2). The reconciliations provided below reconcile the non-GAAP financial measures with the most directly comparable GAAP financial measures for the periods indicated.

Year Year Year Year Year Year Year First Three(Millions, except per-share amounts) 2001 2002 2003 2004 2005 2006 2007 Months 2008Sales Dollars:Reported GAAP 16,054$ 16,332$ 18,232$ 20,011$ 21,167$ 22,923$ 24,462$ 6,463$ Pharmaceutical (699)$ (767)$ (813)$ (793)$ (797)$ (774)$ -$ -$ Adjusted Non-GAAP 15,355$ 15,565$ 17,419$ 19,218$ 20,370$ 22,149$ 24,462$ 6,463$

Operating Income Dollars:Reported GAAP 2,075$ 2,816$ 3,504$ 4,326$ 4,854$ 5,696$ 6,193$ 1,501$ Special Items 504$ 202$ 93$ -$ -$ (523)$ (681)$ -$ Pharmaceutical (157)$ (200)$ (217)$ (194)$ (226)$ (256)$ -$ -$ Adjusted Non-GAAP 2,422$ 2,818$ 3,380$ 4,132$ 4,628$ 4,917$ 5,512$ 1,501$

Diluted Earnings per Share:Reported GAAP 1.60$ 2.32$ 2.88$ 3.56$ 3.98$ 5.06$ 5.60$ 1.38$ Special Items 0.39$ 0.14$ 0.07$ -$ 0.14$ (0.57)$ (0.62)$ -$ Pharmaceutical (0.12)$ (0.17)$ (0.18)$ (0.16)$ (0.20)$ (0.23)$ -$ -$ Adjusted Non-GAAP 1.87$ 2.29$ 2.77$ 3.40$ 3.92$ 4.26$ 4.98$ 1.38$

The Company uses local-currency sales growth, which excludes the impact of translation or currency exchange rates, as an indication of its economic sales growth. The Company has provided the components of local-currency sales growth below, including the impact of translation. The Company has provided local-currency sales growth that excludes the historical impacts of divestitures, primarily the Pharmaceuticals business, to portray what it believes are more meaningful sales growth trends. 3M believes this non-GAAP sales growth information excluding divestitures provides useful information (See Note 2). These measures are not in accordance with, nor are they a substitute for, GAAP measures.

Year Year Year Year Year Year Year First Three2001 2002 2003 2004 2005 2006 2007 Months 2008

Sales Change Percents:Total Reported Sales Change -3.9% 1.7% 11.6% 9.8% 5.8% 8.3% 6.7% 8.9%Less: Translation Impact -3.3% 0.1% 5.2% 3.8% 0.7% 0.6% 3.2% 6.1%Local-Currency Sales Change (including divestitures) -0.6% 1.6% 6.4% 6.0% 5.1% 7.7% 3.5% 2.8%

Local Currency Sales Change (excluding divestitures) -1.1% 1.4% 6.8% 6.5% 5.3% 8.1% 7.3% 3.0%

The Company uses non-GAAP measures to focus on shareholder value creation. 3M uses Return on Invested Capital (ROIC), defined as annualized after-tax operating income (including interest income) divided by average operating capital. Operating capital is defined as net assets (total assets less total liabilities) excluding debt and minority interest liabilities. 3M’s ROIC calculation was revised in 2008 to include interest income and to simplify/improve the means for determining operating capital. Prior period amounts have been updated to conform to the revised calculation. This measure excludes special items and the historical impacts of the Pharmaceuticals business (see Notes 1 and 2). These measures are not recognized under U.S. generally accepted accounting principles and may not be comparable to similarly titled measures used by other companies.

Year Year Year Year First Three2001 2005 2006 2007 Months 2008

Return on Invested Capital 14.2% 24.4% 27.8% 27.1% 22.0%Return on Invested Capital - excluding Pharmaceuticals and Special Items 16.3% 23.8% 23.6% 24.2% 22.0%

As previously indicated, the Company provides non-GAAP measures, including the business segment operating income amounts shown within this presentation that exclude special items. Special items for the years 2007 and 2006 have been previously provided in an 8-K that was furnished to the U.S. Securities and Exchange Commission on January 29, 2008. An 8-K filed May 19, 2008, provided results that reflect for all periods presented the impacts of certain business segment product moves effective in the first quarter of 2008. There were no special items that impacted business segment operating income results for the first three months of 2008, year 2005 and year 2004.

(1) Special items for the periods presented have been discussed in Form 8-K’s that were furnished to the U.S. Securities and Exchange Commission on January 29, 2008 and January 30, 2007 and in 3M’s 2003 Form 10-K filed March 2, 2004. Also reference 3M’s Form 8-K dated May 19, 2008, which provided results that reflect for all periods presented the impacts of certain business segment product moves effective in the first quarter of 2008.

(2) In December 2006 and January 2007, 3M completed the sale of its global branded Pharmaceuticals

business. In connection with these transactions, 3M’s Drug Delivery Systems Division became a source of supply to the acquiring companies. Because of the extent of 3M cash flows from these agreements in relation to the disposed businesses, the operations of the branded Pharmaceuticals business were not classified as discontinued operations. The sale of the branded Pharmaceuticals business impacted both sales and operating income growth in 2007, as significant Pharmaceuticals sales and income are in the reported base 2006 period and also in prior periods. Where indicated, to provide more meaningful trend information, portions of this presentation exclude the impact of 2006 and prior Pharmaceutical financial results, as this business was sold in December 2006 and January 2007.

Economy & Finance

JPMorgan Conference Presentation