Increasing Investment in Priority Growth Platforms

2018 Investor Day

Mike Roman Chief Executive Officer

November 15, 2018 Today’s meeting highlights

• Our 3M Value Model positions us to win • Four strategic priorities delivering value for our customers and shareholders • Portfolio management … more to do • Transformation … enhancing customer experience • Innovation … accelerating priority growth platforms • People and culture … developing and advancing • Balanced and disciplined capital allocation • Announcing new 2019 – 2023 financial objectives; previewing 2019 outlook

2018 Investor Day | Nov 15, 2018

The 3M Value Model

Priorities

Financial objectives

VVision i s i o n

Strengths

Technology Manufacturing Global Capabilities Brand

Priorities

Portfolio Transformation Innovation People and Culture

VValues a l u e s

Vision Strengths Priorities Values

Customer Insights Fundamental Strengths Customer First Customer Inspired Innovation Unique and differentiated value End-user focused

Technology Manufacturing

Global Capabilities Brand

Vision Strengths Priorities Values

Portfolio Transformation Innovation People & Culture

Fully leveraging our 3M Activating our Realizing the full potential Developing our people and value model transformation advantages of our innovation model advancing our culture

Vision Strengths Priorities Values

Leadership Behaviors Play to win Prioritize and execute Foster collaboration and teamwork Develop others and self Innovate • Inclusion Act with integrity and transparency • Diversity

Code of Conduct: Be 3M • Sustainability Be good • Respect, encourage, challenge Be honest Be fair Be loyal Be accurate Be respectful

Vision Strengths Priorities Values

Portfolio Transformation

2012 Portfolio Framework Strategicattractiveness

Status Quo A Continue to execute according to the current plan

Invest • Combined business for greater customer B Accelerate investment for growth relevance, going from 40 to 23 divisions C Fix • Completed 10+ divestitures, representing $1.1 Aggressive changes to improve performance billion in revenue and $2.1 billion in proceeds

Combine • Fixed or exited multiple products globally or in D Implement reorganization options specific regions of the world

Harvest or Shutdown • Reshaped and repositioned our Electronics & E Maximize value on path to close Energy and Safety & Graphics businesses

Divest or Spin F Proceed with valuation and separation

Strategic attractiveness Financial attractiveness

Technology that enhances the core and can be advanced by 3M • Market size • Market growth Businesses that benefit from or Market • Market profitability enhance 3M’s manufacturing strength attractiveness

Businesses with global potential that benefit from or enhance 3M’s local • Growth sales and operations • Profitability Financial • ROIC Enhances or is enhanced by performance global 3M brand strength

2018 Portfolio Framework Clear view of our “Heartland”

Additional opportunities

in “Push Forward” Strategicattractiveness

Financial attractiveness Push Forward Heartland

Heartland and Push Forward M&A Review Prioritizing investments Creating differentiated value Maximizing value from all businesses

• Grow our Heartland businesses • Add businesses where we create • Redesign and optimize global faster than their markets unique value from our business models Fundamental Strengths • Invest to increase scale and • Increase value through divestitures accelerate growth in our Push • Add businesses that create or and other strategic options Forward businesses extend market leadership • Add businesses that enable priority growth platforms

Growth investments Dividend Flexible deployment ~30% ~30% ~40%

R&D 60 years Acquisitions ~6% to sales Consecutive annual increases Highest priority for flexible deployment Cap-ex 100+ years 5.0% – 5.5% to sales Paid dividends without interruption Share repurchase Expected to grow in-line with Maintain minimum earnings over time repurchase threshold Based on relative value; influenced by other demands on capital

Note: capital allocation percentages based on mid-point of 2019 – 2023 plan

Building on our success since 2012… • Highest priorities in Health Care, Industrial, and Safety & Graphics; actively exploring opportunities across all five business groups 12 Acquisitions: $7.7B • Acquisitions that enable priority growth platforms

“Fewer, larger” acquisitions • Leveraging our Fundamental Strengths to continue exceeding expectations delivering differentiated growth and value • Utilizing our integration management and Lean Proven value creation through Six Sigma to maximize value and returns integration management

Exploring broader range of Divesting businesses to improve New global business models to strategic options focus and value maximize value

Health Information Systems Communication Markets Closure and Masking Systems

• Explored possible divestiture or spin • Explored how to maximize value with • Explored how to maximize value • Decided to keep and increase a strong business that was not well • Decided to implement new global investments to accelerate growth aligned to our fundamental strengths business model focused on and value • Decided to divest maximizing cash flow

Great progress … … more to do

Realigned and consolidated businesses to increase customer relevance Realigning resources to our highest priority, most attractive businesses Prioritized resources for businesses and markets that best leverage our Fundamental Strengths Increasing our investment in M&A to Acquired businesses that leverage our accelerate growth, value and returns market leadership, strengths and value from integration into global 3M

Executing portfolio actions to maximize Acted to maximize value of strategic review value across review businesses businesses, including through divestitures

Accomplishments What’s next

Successfully deployed ERP Enhance customer service system in Europe and U.S. Increase value creation Simplified, standardized and redesigned business processes Leverage ERP capabilities

Streamlined end-to-end Streamline deployments engagement with customers Utilize data and analytics Created value through new service models

Leveraging a strong foundation Regionalization of Europe

• Global Service Center • Reduced number of regional • Marketing Sales Operations operating units by half • Supply Chain Center of Expertise • Better leverage scale of operations Streamlined engagement with our customers

Building a healthier portfolio Optimizing footprint

• Exited 2% to 3% of West • Reduced number of Europe revenues manufacturing locations by 1/3 • Redeployment of resources to • Investing in disruptive higher value portfolio manufacturing technology

• New product innovation • Business Transformation • Footprint optimization • Disruptive technology • Lean Six Sigma

Disruptive innovation at origin Long-term value creation through new product platforms & line extensions

Adhesives and tapes

Acrylic foam tape Laminating adhesives Skin-friendly silicone tapes Optically clear adhesives

Nonwovens

Thinsulate™ thermal Acoustic insulation Filtrete™ filters Biopharmaceutical insulation filtration

Multi-layer optical films

Notebook display Brightness enhancement film Solar films Automotive glass films High performance fluids

Precision cleaning Protective coatings Immersion cooling for EV battery cooling data centers

Wound Population Automotive Connected Food Biopharmaceutical Care Health Electrification Roads Safety Filtration

Connected Structural Surface Air Grid Custom Safety Bonding Finishing Quality Modernization Orthodontics

2025 Goals 3M Value Model Reputation

Energy & climate • Operational Environmental, Health and Safety (EHS)

Raw materials • Environmental stewardship

• Sustainability inspired Water innovation

• Product stewardship Health & safety • Diversity and Inclusion Education & development

Focus areas: Science for circular Science for climate Science for community

Aspirations: Design solutions that do Innovate to decarbonize Create a more positive more with less material, industry, accelerate global world through science and advancing a global climate solutions and improve inspire people to join us circular economy our environmental footprint

Examples: Eliminating solvents Enabling solar energy Supporting STEM education

Organic 3M Value Model creating new growth platforms and line extensions

Inorganic Acquisitions and partnerships to add to our growth platforms

Ventures Investments to accelerate technology development and time to market

Disruptive Market centric approach to customer needs that leads to disruptive new technology and businesses

Sustainability Visibly leading and innovating for a more sustainable future

Inclusive workplace Development for all Future of work

• Most inclusive enterprise • Continuous, relevant learning ecosystem • Expanded model for collaboration • Strong, diverse talent pipeline • Leading edge leadership development • 3M FlexAbility in career and workplace • Engaged, purpose- and performance- • 3M Science of Change • Advancing our global talent in a digital world driven individuals and teams

Organic local- Earnings per currency growth share growth

3% to 5% 8% to 11%

Return on Free cash invested capital flow conversion 20% 100%

Refer to appendix slide deck for the definition and calculation of ROIC and free cash flow conversion

2019 – 2023 average 3% to 5 %

Health Care Safety & Graphics Industrial Electronics & Energy Consumer 4% to 6% 3% to 6% 3% to 5% 2% to 6% 2% to 4%

Organic local-currency growth = organic volume + price

VVision i s i o n

Strengths

Technology Manufacturing Global Capabilities Brand

Priorities

Portfolio Transformation Innovation People and Culture

VValues a l u e s