1. No category

H.C. Shin
Executive Vice President, International Operations
March 17, 2015
© 2015 3M. All Rights Reserved.
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.
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Content
3
•
3M Overview
•
3M International Operations Overview
•
Execution Roadmap Through Our Levers
•
Q&A/Discussion
BofAML Global Industrials & EU Autos Conference 2015
© 2015 3M. All Rights Reserved.
Executing our playbook to create value for customers and shareholders
Portfolio Management
Investing in Innovation
Business Transformation
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We are tracking toward the objectives we established in 2012
(2013 – 2017)
~100%
9-11%
EPS Growth
~20%
4-6%
Organic
Revenue Growth
ROIC
Free Cash Flow
Conversion
Aggressive and realistic targets
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Solid performance continues across each of our Business Groups
2014 results
$31.8B
4.9% Organic Growth
22.4% OI
Industrial
Health Care
Consumer
Safety & Graphics
Electronics & Energy
$11.0B
4.9% Organic Growth
21.7% OI
$5.6B
5.8% Organic Growth
30.9% OI
$4.5B
3.9% Organic Growth
22.0% OI
$5.7B
5.4% Organic Growth
22.6% OI
$5.6B
5.2% Organic Growth
19.9% OI
Note: Business Group sales include dual credit
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Leveraging and building our fundamental strengths
Leveraging these assets creates value; strengthening them ensures our future
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A solid 2014 full-year performance
 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
Refer to 3M’s January 27, 2015 press release for full details.
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BofAML Global Industrials & EU Autos Conference 2015
© 2015 3M. All Rights Reserved.
Increasing cash returns to shareholders
Dividends
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
+7%
$2.36
2012
+35%
+8%
$3.42
+20%
$4.10
$2.54
2013
2014
Dividends Paid Per Share ($)
2015e
Payout Ratio (%)
60%
50%
40%
30%
20%
10%
0%

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

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
Note: 2015e reflects the annualized Q1 2015 dividend increase of 20% to $1.025 per share vs.
$0.855 per share in Q1 2014
Gross Share Repurchases
$17 to $22
$25 ($B)
$20
$15
$10
$10.9
$15B
to
$7.5B
$5
$0
$20 to $22
2013-14
Prior 2013-17e
Range
New 2013-17e
Range
Building on long-term track record of returning significant cash to shareholders
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Content
11
•
3M Overview
•
3M International Operations Overview
•
Execution Roadmap Through Our Levers
•
Q&A/Discussion
BofAML Global Industrials & EU Autos Conference 2015
© 2015 3M. All Rights Reserved.
3M International Operations: Strong and sustainable growth platform
International Operations in 2014
Distribution of 3M Worldwide Sales
3%
Canada
37%
17%
West
Europe
United
States
 $20B in sales
3%
Central
East
Europe
10%
Asia Pacific
 23% operating income to sales
Greater
China
 70 countries
 54,000+ employees
 127 plant sites
8%
Latin
America
2%
Middle
East &
Africa
20%
Asia
 35 country laboratories
 4,000 R&D headcount
Thriving in a dynamic global environment
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Track record of profitable growth
6% Organic local
currency 3Y CAGR
International sales, excluding US ($B)
5% Organic local
currency 5Y CAGR
40% - 45%
$9
45%
International Developing
Markets
$8
54%
$7
46%
Total sales
(in $B)
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2009 2009
$15
BofAML Global Industrials & EU Autos Conference 2015
$11
55%
International Developed
Markets
55%-60%
2014
2017e
$20
$23-25
© 2015 3M. All Rights Reserved.
International playbook to succeed in a dynamic, ever-changing global environment
Growth and
productivity
focus
Structured
pricing
management
Price of oil
Dollar appreciation
Scenario
planning
Geopolitics
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Balance sheet
management
Culture of
compliance
Deceleration CHK &
some developing economies
© 2015 3M. All Rights Reserved.
Content
15
•
3M Overview
•
3M International Operations Overview
•
Execution Roadmap Through Our Levers
•
Q&A/Discussion
BofAML Global Industrials & EU Autos Conference 2015
© 2015 3M. All Rights Reserved.
Key levers will drive value creation going forward
Portfolio Management
Investing in Innovation
Business Transformation
These levers, combined with more aggressive capital deployment, will drive enhanced value creation
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Portfolio Management roadmap

Continue portfolio management deployment
across the corporation

Reallocate resources to 3M’s best opportunities

Augment organic growth through M&A playbook
Portfolio Management
Portfolio actions continue to create value
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We have a stronger portfolio of businesses today than when we started
Relative Strategic Attractiveness
Heartland
Push Forward
Strategic Review
Relative Shareholder Attractiveness
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Geographic portfolio: playbook to win in both developed and developing markets
International Sales Mix
45%
40-45%
3%
Developed market local megatrends
Energy efficiency
Sustainability
Aging population
Technologies
3 YR CAGR %
9%
55%
2014
55-60%
2017e
Developing
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Developing market local megatrends
BofAML Global Industrials & EU Autos Conference 2015
Air quality
Water quality
Food safety
Infrastructure
Middle class
consumer
Developed
© 2015 3M. All Rights Reserved.
Investing in Innovation roadmap
Investing in 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
Increasing customer relevance through innovation
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© 2015 3M. All Rights Reserved.
Investing in Innovation
46 technology platforms: A shared innovation engine that all businesses leverage
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We are increasing the amount and focus of our worldwide R&D investment
Extending Core Platforms
R&D Intensity
R&D / Total Sales
5.5%
~6%
Disrupting Markets
5.6%
Expanding Into New
Markets
2012
2014
2017e
Productive investment in disruptive technologies and product platforms
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© 2015 3M. All Rights Reserved.
Investing in Innovation – driving faster and effective commercialization
International new product sales in $B
Focused Actions
46 Customer Technical Centers
$2.9
$4.3
14%
3Y
CAGR
5% 3Y
CAGR
2014
New product modifications
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$4.0-4.5
$4.8-5.3
2017e
Corporate research laboratories
strengthening in China, Germany and Japan
Customer insights for local mega trends
•Air quality
•Water quality
•Food safety
New products for new/existing markets
© 2015 3M. All Rights Reserved.
Air quality problem in China offers a huge opportunity
A multi hundred million dollar opportunity
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Converting local megatrend to commercialization
3M Damper
Building
damper
Housing
damper
Structural
analysis
Drinking water system
On line water dispenser
Japan
Earthquake resistant materials
Category management
China
Water quality
Specific packaging
Latin America
Ferreteria
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West Europe
Smart city solutions
Glass bubbles for well stimulation
Saudi Arabia
Oil and gas
© 2015 3M. All Rights Reserved.
Business Transformation roadmap
Business Transformation

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 creating value for customers and shareholders
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Ensuring success through a regional ERP roll-out plan
Key Components
Value of Business Transformation front
and center in our deployment plan
 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
Full transparency across workstreams
and their interdependencies
Strong governance of critical path
activities to ensure success
 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
Becoming more effective and efficient in serving our customers globally
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Improving productivity to invest for growth
Improving our Manufacturing Costs
International cost of goods sold % to sales
52.8%
52.7%
52.6%
52.5%
52.4%
52.3%
52.2%
52.1%
52.0%
Focus on Lean Six Sigma Execution
Lean six sigma black belt headcount
400
350
300
250
200
150
100
50
2012
2013
0
2014
2015e
2012 2013
2014 2015e
Lean Six Sigma Excellence
Disruptive Cost-Out Innovation
Supply Chain Centers of Excellence
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© 2015 3M. All Rights Reserved.
Summary – 3M International Operations
Corporate strategies and value systems
3 Key Levers
Portfolio
Management
3M International summary
 Strong & proven growth platform
 Strong operational excellence
 Large untapped local megatrend
opportunities
Investing in
Innovation
 Continuous investment in R&D and
commercialization
 Diverse global talent
Business
Transformation
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Content
30
•
3M Overview
•
3M International Operations Overview
•
Execution Roadmap Through Our Levers
•
Q&A/Discussion
BofAML Global Industrials & EU Autos Conference 2015
© 2015 3M. All Rights Reserved.
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.
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Industrial
($M)
Sales
GAAP Operating Income
GAAP Operating Margin
2014 Sales By Business
2012
$10,008
$2,244
22.4%
2013
$10,657
$2,307
21.6%
With Leading Market Positions In:
― Industrial abrasives
2014
$10,990
$2,389
21.7%
CAGR
5%
3%
Filtration
6%
Aerospace
3%
Adhesives &
Tapes
38%
Advanced
Mat'ls
12%
Abrasives
14%
― Auto body repair solutions
Transportation
27%
― Car care DIY
2014 Sales By Geography
― Structural adhesives and tapes
LAC
11%
― Filtration and purification systems
― Specialty additives
― Tapes and fasteners for personal hygiene products
U.S.
38%
APAC
26%
EMEA
25%
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© 2015 3M. All Rights Reserved.
Safety & Graphics
($M)
Sales
GAAP Operating Income
GAAP Operating Margin
2014 Sales By Business
2012
$5,406
$1,210
22.4%
2013
$5,584
$1,227
22.0%
2014
$5,732
$1,296
22.6%
CAGR
3%
3%
Roofing
granules
5%
Commercial
Solutions
26%
Personal
Safety
42%
With Leading Market Positions In:
― Respiratory, hearing and eye protection solutions
― Reflective signage for highway and construction safety and license plates
― Premium large format graphic films for advertising and fleet signage
Traffic Safety &
Security
27%
2014 Sales By Geography
― Roofing granules for asphalt shingles
LAC
15%
― Personal identification issuance and authentication products
― Building safety solutions
U.S.
36%
― Architectural design solutions for surfaces and lighting applications
APAC
22%
EMEA
27%
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Electronics & Energy
($M)
Sales
GAAP Operating Income
GAAP Operating Margin
2012
$5,458
$1,026
18.8%
2014 Sales By Business
2013
$5,393
$954
17.7%
2014
$5,604
$1,115
19.9%
CAGR
1%
4%
With Leading Market Positions In:
― Optically clear adhesives, Novec™ fluorochemicals, transport solutions and flexible
circuits for electronic components
― Light management films that enhance brightness and provide energy efficiency in
liquid crystal displays (LCD)
― Electrical vinyl rubber and mastic tapes
Renewable
Energy
7%
Display Matls
& Systems
38%
Telecom
8%
Electrical
Markets
23%
Electronics
Matls
Solutions
24%
2014 Sales By Geography
LAC
7%
― Medium voltage cable accessories, OEM insulation tapes
U.S.
17%
― Telecommunications copper splicing
― Fiber splicing/connectivity
EMEA
12%
APAC
64%
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Health Care
($M)
Sales
GAAP Operating Income
GAAP Operating Margin
2014 Sales By Business
2012
$5,138
$1,641
31.9%
2013
$5,334
$1,672
31.3%
2014
$5,572
$1,724
30.9%
With Leading Market Positions In:
― Skin and wound care (transparent IV dressings and tapes)
― Infection prevention (auscultation, specialty drapes and surgical clippers)
CAGR
4%
2%
Food Safety
4%
Infection
Prevention
29%
Drug Delivery
9%
Health Info
Sys
12%
Oral Care
24%
― Patient warming solutions
2014 Sales By Geography
― Oral care solutions
LAC
10%
― Coding and reimbursement software
― Drug delivery (inhalation systems)
― Food safety indicator solutions
Critical &
Chronic Care
22%
APAC
16%
U.S.
45%
EMEA
29%
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Consumer
($M)
Sales
GAAP Operating Income
GAAP Operating Margin
2014 Sales By Business
2012
$4,386
$943
21.5%
2013
$4,435
$945
21.3%
2014
$4,523
$995
22.0%
CAGR
2%
3%
Consumer
Health Care
9%
DIY
36%
Home Care
23%
With Leading Market Positions In:
― Consumer tapes
Stationery &
Office
32%
― Repositionable notes
― Home air filtration
2014 Sales By Geography
― Cleaning products for the home
LAC
11%
― Consumer bandages braces and supports
― Retail abrasives
APAC
18%
U.S.
57%
EMEA
14%
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© 2015 3M. All Rights Reserved.