investor day deck

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2016
Investor
Day
Inge Thulin
Chairman of the Board,
President, and CEO
3M Investor Day
March 29, 2016

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 Today’s highlights
 Building strength on strength
 Efficient growth
Agenda

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Today’s highlights
 Our business portfolio is positioned to win
 Executing on our key levers to create efficient growth
 Portfolio Management, Invest in Innovation, and Business Transformation
 Winning with our customers by helping them deliver on their promises
 Further enhancing capital structure and allocation
 Maintaining strong track record of returning cash to shareholders
 Announcing new 2016-20 financial objectives; reaffirming 2016 outlook

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Building strength on strength, and positioned to win
2012
 Articulated 3M Vision and Strategies
 Set 2013 – 2017 Financial Objectives
 Established robust portfolio management
2013
 Prioritized 3 Key Levers to create value
 Enhanced capital deployment plan
 Strengthened Code of Conduct
2014  Defined Fundamental Strengths
 Reshaped Leadership Behaviors
2015
 Deployed unified 3M Brand strategy
 Restructured organization for focus,
agility and efficient growth

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Investing in Innovation
Portfolio Management
Business Transformation
Our playbook is working

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Industrial
$10.3B
21.9%
Health Care
$5.4B
31.8%
Consumer
$4.4B
23.7%
$30.3B Revenue
22.9% Operating Margin
Safety & Graphics
$5.5B
23.7%
Electronics & Energy
$5.3B
21.1%
Executing on efficient growth while building for the future
Executing this playbook has created a successful portfolio . . .
2015 results
Executing on efficient growth while building for the future

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. . . Leveraging our Fundamental Strengths to create sustainable value
Technology Manufacturing Global Capabilities Brand
Leveraging these assets creates value; strengthening them ensures our future

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GDPpercapita
Infrastructure
Health Care
Manufacturing
Retail
Time
Safety
We execute a proven model of success globally . . .
Positioned for efficient growth

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. . . Enabling us to consistently outperform our markets
3.4%
2.3%
~1.5x
3M Organic Local CurrencyIHS Industrial Production Index
IHS Industrial Production Index vs. 3M Organic Local Currency Growth
2011 – 2015 CAGR
Source: IHS Global Insights
Consistent proven capability to outgrow our markets
Organic local currency growth = organic volume + price

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Our new growth targets will outpace indicators
~1.5x
3M Organic Local Currency
2% - 5%
IPI Projection Range
1% - 3%
IPI projection range vs. 3M organic local currency targets,
2016 – 2020e CAGR
Efficient growth in the face of economic realities

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Industrial
2% to 4%
Health Care
4% to 6%
Consumer
3% to 5%
2% to 5%
Safety & Graphics
2% to 5%
Electronics & Energy
0% to 4%
2016-20 organic local currency growth targets by business
Strong, market-leading, global businesses
Organic local currency growth = organic volume + price

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Free Cash
Flow
Conversion
100%
Organic Local
Currency
Growth
20%
EPS
Growth
8-11%
ROIC
2-5%
Long-term financial objectives
2016-20 plan; aggressive and realistic targets

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Winning with our customers by helping them
deliver on their promises
Customer First

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Sustainability: Helping our customers deliver on their promises
 Leveraging 3M sustainability expertise
in strategic partnerships with customers
 Identifying and understanding
sustainability challenges on the horizon
 Expanding our portfolio of products
with sustainability advantages
Creating new opportunities with customers

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Investing in Innovation Business TransformationPortfolio Management
Executing our three key levers

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Portfolio Management
 Align organization and resources to our
best opportunities
 Effectively deploy M&A capital
 Agile execution
Portfolio Management
Gain profitable share everywhere

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Organizational structure positions us to deliver efficient growth
Combined businesses to increase customer relevance
and drive scale . . . 40 to 26 businesses
Realigned from 6 Sectors to 5 Business Groups Benefits realized
 Greater scale and
customer relevance
 Increased agility
 Reduced costs through
efficiency and productivity
improvements
 Reallocated resources to our
best opportunities
 Accelerated priority R&D
investments
 Enhanced M&A sourcing
and execution
Improved customer relevance
Healthcare
Safety &
Graphics
Industrial Consumer
Display &
Graphics
Electronics &
Communications
Safety, Security,
& Protection
Industrial &
Transportation
Consumer &
Office
Healthcare
6 Sectors 5 Business Groups
Electronics
& Energy
40 Businesses 26 Businesses

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Acquisitions Divestitures
Recent portfolio actions creating significant value
Library Systems
License plate converting
(France)
Static control
Membrana = Polypore’s separation media business
Polyfoam

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We will invest in and accelerate our Health Information Systems business
 Fully assessed strategic options
 Identified attractive investment opportunities
in both core and new growth segments
 Executing plan to accelerate growth by
200 – 400 bps
Expanding our leadership position in healthcare information systems

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Investing in Innovation
 Increase R&D productivity
 Enhance commercialization effectiveness
 Invest in and scale new growth platformsInvesting in Innovation
3M innovation creating value for our customers

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Insights combined with technology platforms continue to
benefit our customers
46 Technology PlatformsInsights Productive Investment
Extending Core
Platforms
Insights to Innovation
Expanding into
New Markets
Disrupting
Markets
Customer-Inspired Innovation
Research and development is the heartbeat of 3M

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Our brand platform is building awareness of how we use science to
create solutions for our customers
Enhancing perceptions of what 3M is about

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Business Transformation
 Continue to successfully roll out ERP
 Deliver productivity through footprint
optimization and enhanced supply chain
and manufacturing capabilities
 Increase service levels to customers and
reduce cost to serve
Business Transformation
Business Transformation starts and ends with our customers

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Business Service Operations
Global Processes and Governance
Global Service Centers
Supply Chain COEs
Business Transformation is accelerating
$500M to $700M annual savings and $500M working capital improvement by 2020

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Building on our strong process culture
 Deploy lean deeper and more broadly
 Simplify and optimize processes
 Increase employee engagement and
leadership development focus
Reducing costs and increasing quality for our customers

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 Developing our leaders
 Adding value to our
company, our customers and
our communities
 Creating opportunities
for everyone
We are investing in our people . . .
3M Leadership Way

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. . . And supporting their personal health and well-being
Wellness screening
and prevention
Healthy Living programs
and incentives
Competitive rewards and
investment opportunities

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Investing in Innovation
Portfolio Management
Business Transformation
Our playbook is working

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Free Cash
Flow
Conversion
100%
Organic Local
Currency
Growth
20%
EPS
Growth
8-11%
ROIC
2-5%
Long-term financial objectives
2016-20 plan; aggressive and realistic targets