3M Innovation Story 3M Innovation Story

• Vision; Culture of Innovation • Company Data • History • Technology Platforms and Migration • Technical Community • Summary

3 3 ©© 3M 3M 2012. 2013. All All Rights Rights Reserved. Reserved. 3M Innovation Story

Leading Through Innovation

For MoreMore ThanThan a a Century Century

Innovation is our biggest“ competitive advantage “and the heart of 3M.

Inge Thulin, 2012

. 11,000+ technical employees worldwide . 85 laboratories globally . 35 Customer Technical Centers . R&D at 5.4% of sales . 46 established technology platforms . Technical depth & breadth . Bring multiple technologies to each customer . Entrepreneurial culture . Individual initiative ~ 15% of time . Legacy of boundaryless culture

Industrial – Sales: $29.9 B From purification to aerospace – – Net income: $4.4 B changing how industry works – R&D investment $1.6 B – International sales $19.4 B (65% of Safety & Graphics company total) From protecting people & information to – Companies in 67 countries enhancing visual & design communication – Sales in nearly 200 countries – ~ 88,000 employees Electronics & Energy – 200+ factories Enabling tomorrow’s lifestyle today with – 55,000+ products power, communications and electronics – 3,100+ patents issued in 2012 – 40,500+ issued & pending patents Consumer From simplifying life at home to keeping you organized at work

Health Care From preventing infections to making smiles brighter

6 © 3M 2013. All Rights Reserved. 3M Innovation Story A Century of Innovation 1996 New products include flexible 1954 circuits for electronic products TM and HFEs (hydrofluoroethers), RCA used Scotch replacing ozone depleting magnetic tape to chlorofluorocarbons record TV programs 2000 1921 for the first time 3M introduced the Vikuiti™ brand for light 3M patented and management products that make electronic introduced WetordryTM displays easier to read waterproof sandpaper -- 1952 the world’s first water- resistant coated abrasive Scotchlok™ electrical 1960 1925 connectors and ScotchTM Brand 1995 Scotchkote™ Magic transparent ScotchTM 3M introduced the first metered dose insulation tape introduced 2005 masking tape asthma inhaler, free of ozone depleting introduced introduced chlorofluorocarbons. 3M developed Aluminum Conductor Composite Reinforced (ACCR) as a solution to thermally constrained 1948 transmission bottlenecks 3M debuted its 3M’s first non- first surgical woven product- 1967 1927 drape decorative 3M developed the first ScotchTM Cellulose tape ribbon for gifts disposable facemasks and 1991 introduced introduced respiratory protection products 3M introduced 2009 Scotchshield™ window film, 3MTM MPro pocket-sized shatter-resistant, heat-and projector for mobile cold presentations and sharing resistant window protection. photos on the go

1931 3M began producing 1969 Colorquartz™ roofing granules 3M products were used in the first moon walk on July 20. Astronaut Neil 1985 2010 1947 Armstrong left a footprint in the lunar 3MTM CubitronTM II dust in boots made from Fluorel™ Academy of Motion Picture Arts and TM using precision shaped Scotch magnetic synthetic rubber from 3M Sciences gave 3M a Scientific Engineering abrasive granules creating audiotape introduced Award for magnetic film, improving audio the future of the abrasives 1939 capabilities of movie sound tracks industry First traffic sign featuring Scotchlite™ reflective sheeting erected in Minneapolis 2012 1945 1974 1979 3M LED advanced Scotch TM vinyl 3M introduced Post- light, most energy electrical it® notes, greatly Thinsulate™ thermal efficient, longest- tape introduced enhancing office insulation introduced lasting light bulb 7 © 3M 2013. All Rights Reserved. communication 3M Innovation Story 46 Core Technology Platforms Successful New Product Growth Builds on Uncommon Connections Ab Abrasives Ad Fi Md Adhesives Films Medical Data Management Am Fl Ec Mf Advanced Fluoro- Energy Mechanical Materials materials Components Fasteners Ce Nt Ac Fe Mi Microbial Ceramics Nano- Acoustic Flexible Detection technology Control Electronics and Control Co Nw Mo Pe Rp An Fc Pr Bi Fs Op Advanced Nonwoven Molding Predictive Radiation Analytical Flexible Process Biotech Filtration, Opto- Engineering & Converting & Design & Separation, Composites Materials Modeling Processing Packaging Control Purification electronics Do Po Mr Pm Su As In Se Dd Im Tt Dental & Porous Micro- Polymer Surface Application Inspection & Sensors Drug Imaging Track and Orthodontic Materials & Materials Membranes replication Processing Modification Software Measurement Delivery Trace Em Sm Pd Pp Vp Es Is We Di Lm Wo Electronic Specialty Particle & Precision Vapor Electronics & Integrated Accelerated Light Wound Dispersion Systems & Display Materials Materials Processing Processing Processing Software Design Weathering Management Management Materials Processing Capabilities Applications

Technology Platforms Markets Abrasives Architecture & Construction Adhesives Consumer & Office Ceramics Display Electronics, Software Opportunity Electronics Films Drives Filtration Microreplication Development Health Care Nanotechnology and Utilization Renewable Energy Non-wovens Safety & Security Precision Coating Telecoms and Utilities Vapor Processing Water Infrastructure

Doing Things Only 3M Can Do

. Pressure-Sensitive and Microsphere Adhesives . Non-Wovens . Abrasives Air Quality Products . Filtration . Films PRODUCTS . Precision Coating . Fluoropolymers . Colloid Science

Technology is “Consumerized” into Brands

Post-it® Pop-up Notes Super Sticky Notes COMMUNICATION Notes Post-it ™ Flags Easel Pad

Brightness Enhancing Film LIGHT Solar Control Film DBEF / IR Film MANAGEMENT

Reflective Highway Signs Pavement Marking Control-Tac™ Hi-Intensity Sheeting Control-Tac Plus™ SIGNING Sheeting Tape

Ioban™ Transdermal Transmucosal DRUG DELIVERY

Surgical Micropore™ Transpore™ / Durapore™ Active-Strips™ Drapes Autoclave Tape Steri-Drapes/Strips™ Monitoring Electrodes Tegaderm™ Tattoos™ HEALTH CARE

Vinyl Polyster Z-Axis Conductive Electrical Tape Film Tape Silicone Electrical Tape Electrically Conductive Tape Anti-Static Tape CONDUCTIVITY

Filament Tape Box Sealing Tape Structural Sealing Tape SEALING

PSA Coated Fasteners Stick-it Filmic Label Command ™ Label Stock Diaper Tape Abrasives™ Laminate Diaper Tape Hooks ATTACHING

Isotac T.T. VHB™ VHB+™ PU Foam Tapes Foam Structural Bonding Tape BONDING

Optically Fibered T.T. Double-Coated Repulpable Clear ASSEMBLING Cellophane Tapes Magic Mending Adhesives ScotchPrint™ Scotch-Blue Hi-Temp Masking Filmic Masking Transit Tape Vehicle Wrap PROTECTING Painter’s Tape Film Masking Tapes 1920 1940 1960 1980 2000 2010

Micro-channel Fluid High Flow Structured cooling Transport Filter Surface MATERIALS Filter ISO Structured porous Surface Sensor Electrical Connectors ELECTRONICS

Griplets Fabric Craft & Fabric Cubicle Grips Fasteners FASTENERS Stem Web Control Smart Micro Comply Tape TAC Adhesives Control TAC Plus ADHESIVES

Cube Corner Reclosable Perfect-It™ Headlight Fasteners Abrasives Restoration Diamond Trizact ™ Cubitron ™ II ABRASIVES Prism Grade System Glare-free Reflectivity Abrasives Perfect-It™ Abrasives Overhead Sheeting Finishing Compound Projector Engineering- Lens Lane Markers High-Intensity Wide Angle Prismatic Grade Fluorescent Prismatic REFLECTIVE DGS DGS Lens Programmed MATERIALS Optics for Signs Conspicuity Flexible Prismatic Film Prismatic License Plate Total Internal Optical Scotchlite DGS Internally Lit Signs Light Pole Reflection Lighting ILLUMINATION Traffic Film Lighted Guidance Tube Lighted Lane Marker Signal

Brightness LED Light Mixing Linear LCD Enhancement FLG Solar Film Film FILM Concentrator Day Light Control Lighting X-ray Scan Notched Fiber Large-Diameter Optical Fiber

Overhead Radial Multi-focal Low-profile Projector Lens Solar Intraocular Overhead Microlenses LENSES Concentrator Lens Projector

1960 1970 1980 1990 2000 2010

Dampening Interam™ Fire Barrier Nextel™ Flame Air Duct Wrap Filament Sleeves Stopping Dot Paper Tape Mats Grease Duct Wrap Diaper Insulation Fastening Tape Tape TAPE Conformable Extrusion 3M™ LED Design Light Tapes and NVH Tape Bonded Loop License Plates Ribbons Removable Highway Diaper Stretch Tabs BACKINGS Marking Tapes Hookit™ Sasheen™ Abrasive Disks Decorative Film-backed Belts Scrubbing Buf-Puf™ Pads Floor Brushes Ribbons Pads Surface Conditioning Summit™ Hand Pads Easy Trap Pads, Wheels, and Belts Scotch-Brite™ SL Discs Duster and Belts Scotch-Brite™ Mill Rolls Scotch-Brite™ Never Rust™ Brake Hub Cleaning Disc Super Cling Pads Floor Pads Wool Pads Floor Cloths WIPES AND Food Service Non-Scratch Cleaning Pads Rescue™ Cleaning Pads ABRASIVES Soap Pads Bathroom Scrubbers Clean ‘N Strip™ Pads Entrap™ Mats Anti-Fatigue Mats Purple Scour Pad Nomad™ Entry Mats High Performance Roll Gauze First Aid Dressings Steri-Strip™ Coban™ Compression Wrap Coban™ Surgical Tapes Nexcare™ Ultra Conformable™ Electrode Backings Comfort Strips MEDICAL Breathable Tapes Wrist Rest PRODUCTS Masks and Attest™ Biological Drapes Indicators Surgical Masks Flat Fold Respirators Filtrete™ Commercial HVAC Furnace Filters Filtrete™ HEPA Filters Face Masks and Filters Respirators Filtrete Filtrete™ Room Air Electrets Cabin Air Filters Purifiers FILTRATION Vacuum Bags Antimicrobial Cabin Air Filters PRODUCTS Meltblown PolyNet™ Filters Webs Liquid Filter Bags PolyKLEAN™ Filters DuoFLO™ Filter Element Thinsulate™ Thermal Insulation Flex Thinsulate™ Thinsulate™ for Bedding Oil Sorbent INSULATION Doodleduster™ Thinsulate™ Flame Retardant Acoustic Insulation Thinsulate™ Thinsulate™ DP Insulation AND SORBENTS Chemical Spill Sorbents

1940 1950 1960 1970 1980 1990 2000 2010

13 © 3M 2013. All Rights Reserved. 3M Innovation Story Product and Technology Migration Nanotechnology Commercialized Products In Development Biomedical Sensors Drug Dental Solid State Delivery Adhesives Lighting NANOPARTICLES Foamed Adhesive Tape Superhydrophilic Wound Anti-fog Bioactive Care Materials Ceramic Metal Matrix Fibers Composites Battery Optical Materials Glasses Dental/Ortho NANOCRYSTALLINES Glass-Ceramic Structures Abrasives Beads Optical Electronic Films Materials Structural Advanced Dental Dental NANOCOMPOSITES Adhesives Restoratives Protective Low-Cost Materials Coatings Composites Hardcoats

Barrier Electronic Fiber Optic Films Devices Gratings Fuel Cell NANOSTRUCTURES Film Multi-Layer Air Quality Coatings Optical Film Catalysts Energy Improvement Storage

1995 2005 2010 2015

New Technology/New Product Introduction

Products Delivered to the Marketplace 3M Technology Platforms

Voice of Customer

Year 1 New Product Sales 40% Core New Product Sales 37% 38% 35% 33% 34% 31% 32% 29% 25% 23% 21% 22%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

International new products now ~70% of total

R&D Localization Russia . Asia Display Tech Center Poland . Customer Technical . Asia Tape & Adhesives Center (CTC) . Labs: Non-wovens, RFID, Electronics, Energy, Nano . Medical & Consumer . Focus: Abrasives, Auto Healthcare CoE . Consumer & Office CoE Japan Germany/France/UK . SEMS (software) . Electronics, Auto . Centers of Excellence (CoE): . Technologies: Automotive, Dental, Track & Trace, Telecom, Specialty Microreplication, Materials, Polymers, Liquid Filtration Consumer, Oil & Gas, Drug Delivery China

. China Tech Center . Global Labs: HV electrical, SMS . Asia Lab: Telecom India . Technologies/products: Non-woven, Reactors, Medical, Corrosion Protection . Customer Centers (Mumbai, . Display backlight center Brazil Delhi), Design Studios . Engineering Centers: Singapore . Expansion to safety/ Automotive, Corrosion orthodontic products Protection, Textile products . Southeast Asia region: product . Technologies: Bio, Nano . Water filtration, fire protection localization, Corp Research Lab, . Specialty Materials, Hook/Loop, . Analytical development Medical product development & Molding, Non-PVC Films, regulatory Acrylic Foam Tape . Electronics, Fine Pitch Flex Circuitry, RFID, Cuno

1,100+ Technical Forum Events Globally

3M’s Annual Event – 3,300 participants The Spring Technology Symposium – 1,300 participants Carlton Awards Symposium – 500 participants Inventor Recognition Ceremony – 250 participants Circle of Technical Excellence & Innovation – 6,000 participants Virtual Technology Information Exchange – 1,700 participants Hundreds of Chapter Events – sometimes as few as half dozen experts meeting on specialized topics such as dynamic molecular modeling 11,000+ member "grass roots" technical organization

30+ Active Special-Interest Chapters

Adhesives Microreplication Biotechnology

Nanotechnology New Business Inorganic Materials Development Laser Processing Polymer Processes Photochemistry Radiation Curing Product Design Life Sciences

And more…

Events and Recognition . The “Annual” Technology Event . Tech Forum – Tech Council Meeting . The Spring Technology Symposium . Tech Forum – Marketing Meeting . Carlton Awards Symposium . New Technical Orientation Program . Inventor Recognition Ceremony . New Technical Employee Poster Session . Tech Forum Special Programs . Virtual Technology Information Exchange . Circle of Technical Excellence & Innovation

Global Labs Technical Forums Customer Tech Centers

Culture of Collaboration 15% Culture e-Connectivity No IP Barriers

Leveraged Capabilities Shared Technologies

3M Innovation is driven by a system of principles, practices and infrastructure that harness the chain reaction of new ideas.

The Bottom Line

“Research is the transformation“

of money into knowledge.

“Innovation is the transformation“ of knowledge into money.