Portfolio Management

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Dec 12, 2017 - Our Strategies. - Expand relevance to our customers and our presence in the marketplace. - Gain profitabl
2018 Outlook Meeting Inge Thulin Chairman of the Board, President and Chief Executive Officer December 12, 2017 11 December © 3M 2017. All Rights Reserved.

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Today’s meeting highlights • Our Playbook is working: delivering on our key metrics • Ready and well-positioned for 2018 • 2018 outlook o 3-5% total company organic growth o 6-10% EPS growth

11 December © 3M 2017. All Rights Reserved.

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Building strength-on-strength and positioned for growth 2017

2016 2015 2014 2013 2012 11 December © 3M 2017. All Rights Reserved.

• Executing portfolio initiatives • Prioritizing new growth platforms • Accelerated Business Transformation deployment • Created new 5-year plan

• Restructured organization for focus, agility and efficient growth • Deployed unified 3M Brand strategy • Defined Fundamental Strengths • Reshaped Leadership Behaviors

• Prioritized 3 key levers to create value • Enhanced capital deployment plan • Articulated 3M Vision and Strategies • Established robust portfolio management 3

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 - Invest 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

11 December © 3M 2017. All Rights Reserved.

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Our Playbook is working Portfolio Management

Investing in Innovation

Business Transformation

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Executing our Playbook has created a successful portfolio Achieving growth while building for the future $31.6B Revenue Organic Local Currency Growth: 5% Operating Margin: 25%

2017e Sales

Health Care

Safety & Graphics

Industrial

$5.8B

$6.1B

$10.9B

Electronics & Energy

$5.1B

Consumer

$4.6B

Note: Financial metrics as reported. 3M total revenue reflects eliminations of dual credit. 11 December © 3M 2017. All Rights Reserved.

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GDP per capita

Positioned for growth with a proven global model

Health Care Retail Safety Manufacturing Infrastructure Time

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Leading with a Customer First mindset

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Leveraging our Fundamental Strengths to create sustainable value

Technology

Manufacturing

Global Capabilities

Brand

Ability to share and combine elements of 3M’s broad technology portfolio to produce unique, differentiated products, translating to premium margins

Utilization of 3M manufacturing footprint and technology, including process trade secrets, leading to higherperforming products and lower unit costs

Subsidiary front-andback-office footprint that allows for the effective development, adaptation and commercialization of products

Brand equity in the 3M brand and in strategic brands that are shared across business groups

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Fueling global economic growth Technology conversion and demographic shift

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Sustainability

Global middle class

Digital economy

Urbanization

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3M is winning in the world’s leading economies Building strength-on-strength

• $12 billion in sales (2017e)

• $3 billion in sales (2017e)

• World-class, broadest capabilities; strongest brand equity

• Strong, rapidly growing capabilities; building brand strength

• Deep, diversified portfolio

• Portfolio focus: domestic, megatrends

11 December © 3M 2017. All Rights Reserved.

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Executing our three key levers

Portfolio Management

11 December © 3M 2017. All Rights Reserved.

Investing in Innovation

Business Transformation

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Portfolio Management Gain profitable share

• Align organization and resources to our best opportunities • Effectively deploy capital Portfolio Management

11 December © 3M 2017. All Rights Reserved.

• Strengthen portfolio through acquisition and divestitures

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Portfolio actions have positioned us to continue delivering growth Prioritized opportunities and allocated resources

Consolidated and aligned organization Realigned from Six Sectors to Five Business Groups

Consumer & Office

Safety, Security, Industrial & & Protection Transportation

Electronics & Communications

Display & Graphics

Healthcare

6 Sectors

Healthcare

Heartland

Industrial

Safety & Graphics

Made strategic acquisitions and divestitures

Consumer

Electronics & Energy

5 Business Groups

Combined businesses to increase scale and relevance

Push Forward

Static Control

Library Systems

License Plate Converting

Polyfoam

Polymask 40 Businesses

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24 Businesses

Identity Management

Safety Prescription Eyewear Tolling/ALPR Electronic Monitoring

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Investing in Innovation 3M innovation creating value for our customers

• Invest in and scale new growth platforms • Deploy connected solutions Investing in Innovation

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• Enhance commercialization effectiveness

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Leveraging unique capabilities to create value for customers Research and Development is the heartbeat of 3M Insights

46 Technology Platforms

High-Impact Outcomes

Customer-Inspired Innovation Extending the core

Insights to Innovation

Building new growth platforms

Focusing on connected solutions

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Top priorities for growth $30B+ addressable market opportunity

Automotive Electrification

Advanced Wound Care

Connected Safety

Data Centers

Structural Adhesives

Filtration

Air Quality

Population Health

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Business Transformation Starts and ends with the customer • Build on successful ERP deployments

• Reduce costs, drive efficiency and increase value for our customers Business Transformation

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• Capture $500M to $700M annual savings and $500M working capital improvement by 2020

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Executing our three key levers

Portfolio Management

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Investing in Innovation

Business Transformation

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Building on our strong process culture Optimizing our processes to best serve our customers

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Sustainability creating growth opportunities for 3M Helping our customers deliver on their promises • Unique capability to innovate, serving both business growth and societal value

• Engaging customers globally to help them achieve their sustainability goals • 18 consecutive years on the Dow Jones Sustainability Index

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Our Playbook is working Portfolio Management

Investing in Innovation

Business Transformation

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Delivering on our shareholder commitments 2016-20 plan

100% 8-11%

EPS Growth 11 December © 3M 2017. All Rights Reserved.

20%

2-5%

Organic LocalCurrency Growth

ROIC

Free Cash Flow Conversion 23

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