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  • 1. 3M Safety, Security and Protection Services Business Jean Lobey Executive Vice President October 9, 2007 © 3M 2007. All Rights Reserved.
  • 2. Agenda • Our markets and businesses • Driving growth for the future • Summary 2007 3M Investor Conference 2 © 3M 2007
  • 3. Strong Sales And Operating Income Growth* Sales Highlights (YOY % Change) ($ millions) +15% Averaged 14% total LC growth over +8% 1 +12% the last six quarters +20% Significant investment in capex and 2 $2,663 acquisitions to support growth plan $2,320 $2,152 $1,557 $1,301 Leading provider of technology and 3 solutions into the global safety and security markets 2004 2005 2006 1H06 1H07 LC % 8.5% 6.8% 13.7% 12.2% 15.9% Operating Income 2006 Sales by Geography +9% +14% +11% LAC 12% APAC 19% +18% $559 $513 $449 $350 $297 Europe 29% 2004 2005 2006 1H06 1H07 U.S. 40% OI % 20.9% 22.1% 21.0% 22.8% 22.5% 2007 3M Investor Conference 3 © 3M 2007 *Excludes special items in all periods
  • 4. SS&PS Markets Safety Security Protection Personal safety Authenticate, secure Protect and enhance and protect, people, facilities solutions at work materials and and home information $30 Billion Market $12 Billion Market $20 Billion Market 2007 3M Investor Conference 4 © 3M 2007
  • 5. SS&PS Is Composed Of Five Divisions… Occupational Health & Environmental Safety Building & Commercial Services • Personal protection equipment: respirators, hearing • Industrial hygiene, cleaning and window glazing products – Scotch Brite®, Prestige protection, visibility, Thinsulate® Sales growth: 8% to 12% Sales growth: 5% to 8% Security Systems Corrosion Protection Industrial Minerals • Border and civil security products • Corrosion protection products – • Roofing granules, Color Quartz® for – passports, passport readers, fusion bonded epoxy powders, swimming pools secure materials liquid epoxies, functional coatings Sales growth: 9% to 14% Sales growth: >20% Sales growth: 3% to 6% 2007 3M Investor Conference 5 © 3M 2007
  • 6. …And Two Organizations Focused On Emerging Opportunities Track & Trace Solutions EBO Global Mining EBO • Library systems, locating and marking equipment, • Market center focused on mining and mineral warehouse management software, patient safety extraction customers solutions • Selling the Big 3M – product lines from across the • Bringing new technologies and complete company solutions to an emerging market Sales growth: >20% Sales growth: >15% Addressing entirely new market opportunities 2007 3M Investor Conference 6 © 3M 2007
  • 7. Multiple Forces Are Driving Strong Growth In Target Markets Regulatory pressure Need for productivity Movement of Strong growth in Need for industrial safety, security, & integrated safety manufacturing to solutions & protection markets developing “smart safety” economies X-factors – weather, terrorism, Consolidation among industrial pandemic disease companies 2007 3M Investor Conference 7 © 3M 2007
  • 8. Our Dream: A $10 Billion Business ILLUSTRATIVE Governments SSD • The global leader in Safety, Security, and Protection CPP B&CSD Businesses OH&ESD Customers products across multiple T&T EBO T&T T&T EBO market centers and IMPD customers groups Mining Consumers Safety - People Security - Processes Protection - Assets 2007 3M Investor Conference 8 © 3M 2007
  • 9. Our Dream In Safety: Multiple Category Leadership Personal Protective Equipment Markets Current leadership $ Billions Building towards leadership White space opportunity Visibility & Head, Eye & Hand, Foot & Respiratory Hearing Fall Protective Face Body Clothing $3.5 - $4.0 $0.9 -$1.2 $2.0 – $2.2 $1.0 - $1.2 $7.0 - $8.5 $1.9 – $2.2 Addressing locally We will be a leader in multiple PPE categories 2007 3M Investor Conference 9 © 3M 2007
  • 10. Our Dream In Security: Leading Solution Provider To Multiple Verticals Leading position Developing position Developing market Markets Complete Secure Document Solution • Border control Secure Issuance Authentication • Law enforcement Materials Systems Systems • Municipal transactions • Banking Current • Hospitality status: We will provide a complete solution across multiple verticals 2007 3M Investor Conference 10 © 3M 2007
  • 11. Our Dream In Protection: Driving Innovation Into Multiple Market Segments Building Services Mining Hospitals 3M Technology Industrial Government Food Services Military Construction We will continue to drive innovative new solutions into the market 2007 3M Investor Conference 11 © 3M 2007
  • 12. Agenda • Our markets and businesses • Driving growth for the future • Summary 2007 3M Investor Conference 12 © 3M 2007
  • 13. Last Year We Articulated 4 Key Strategies Core growth • Drive new product introductions • Assure the Maintenance Free Respirator franchise • Eliminate capacity constraints Adjacencies/M&A • Border and civil security • Water market International • Emerging market channel/sales coverage • Optimize supply chain & regional manufacturing • Local/regional product coverage & development EBO & special initiatives • T&T EBO • Mining market center EBO 2007 3M Investor Conference 13 © 3M 2007
  • 14. Last Year We Articulated 4 Key Strategies Core growth • Drive new product introductions • Assure the Maintenance Free Respirator franchise • Eliminate capacity constraints Adjacencies/M&A • Border and civil security • Water market International • Emerging market channel/sales coverage • Optimize supply chain & regional manufacturing • Local/regional product coverage & development EBO & special initiatives • T&T EBO • Mining market center EBO 2007 3M Investor Conference 14 © 3M 2007
  • 15. Core Growth – New Product Growth Is Accelerating Core Adjacent Intl’ 2007 • Ultra Prestige Window Film EBO’s New product sales • Digital Wireless Comm. $ Millions • Welding Helmet • RFID-enabled Smart Shelves • Reengineered Copper Granules • Durable Floor Finish • New CBRN • Cool Roof Granules • EFR 7700 2008 • Swordfish (EFR) • Mistral (PAPR) • Sentinel (MFR) • Hospital Specimen Tracking • Secure Supply Chain 2004 2007 2008 2012 • Grease Duct Fire Protection % New Product Sales 12% 19% 23% 30% • Mobile Handheld Passport Reader • Stay-Clean Granules 2007 3M Investor Conference 15 © 3M 2007
  • 16. Breakthrough New Product – NBC Protection Equipment Core Adjacent Intl’ EBO’s Description Advantages NBC Protection System – provides • Currently, the only loose fitting NIOSH complete protection from Chemical, approved system Biological, Radiation, and Nuclear hazards; • Versatile communications systems included NIOSH approved for First Responders • Robust materials that withstand decontamination showers 2007 3M Investor Conference 16 © 3M 2007
  • 17. Breakthrough New Product – Elastomeric Facepiece Respirator (EFR) 7700 Core Adjacent Intl’ EBO’s ct . 2 ct . 1 t Pi t Pi duc duc P ro P ro Description Advantages The latest entry into 3M’s single cartridge • Soft-silicone face seal for greater durability EFR product line with a face seal specifically in harsh environments designed to fit face sizes throughout the Asia • Quarter turn cartridge connection for easy Pacific region attachment and ability to change cartridges without removing the respirator • “Cool-flow” exhalation valve design for easier breathing with less resistance 2007 3M Investor Conference 17 © 3M 2007
  • 18. Extending The Maintenance Free Respirator Franchise Core Adjacent Intl’ Strong position EBO’s Intermediate position Not participating High Value San Huei Mid Range Gangkai Entry Level JSP KSN Shanghai Dasheng Unapproved 2007 3M Investor Conference 18 © 3M 2007
  • 19. Breakthrough New Product – Speedglass SL Core Adjacent Intl’ EBO’s Description Advantages Speedglass SL Welding Helmet – auto • Auto darkening lens – eliminates need to darkening welding vision protection remove helmet between welds • Ultra-Lightweight design – only 13 oz, reduces fatigue • 4 sensitivity levels – enables more customized use 2007 3M Investor Conference 19 © 3M 2007
  • 20. Breakthrough New Product – Prestige Series Window Film Core Adjacent Intl’ EBO’s Description Advantages 3M™ Prestige Series Window Film - a • Fade Control - blocks 99.9% of the sun’s selection of clear, metal-free films that harmful rays deliver superior protection from UV and • Energy Savings - reduced energy costs, performance never before offered in a clear blocks up to 66% of heat coming through the window film glass • Aesthetics and Glare Control - significantly reduces glare 2007 3M Investor Conference 20 © 3M 2007
  • 21. Preparing For The Worst – Safety And Security Window Films Core Adjacent Intl’ EBO’s Description Advantages 3M™ Safety and Security Window Films – • Bomb Blasts – offers protection against a family of products that help you prepare flying glass caused by explosions for the worst • Severe Weather and Hurricanes – hold glass together preventing flying glass from harming inhabitants, keeps out wind and rain. • Street Crime – Deters smash-and-grab thieves, prevents intruders from gaining access 2007 3M Investor Conference 21 © 3M 2007
  • 22. Breakthrough New Product – Digital Communication Core Adjacent Intl’ EBO’s Description Advantages Wireless Communication System Model • Superior Sound Clarity helps to optimize XT-1 is a fully digital intercom system for the communications with the customer Quick Serve Restaurant (QSR) industry and • Smart Technology provides self diagnostics Drive-thru Applications; 3M is a leader in this to improve reliability space • Fully Digital simplifies user controls and enables network support and services • Enhanced efficiency through automation that improves drive-thru performance 2007 3M Investor Conference 22 © 3M 2007
  • 23. Breakthrough New Product – Cool Roof Granules Core Adjacent Intl’ EBO’s Description Advantages 3M™ Cool Roofing Granules reflect a • 3M™ Cool Roofing Granules provide for an greater share of the infrared portion of the increase of up to three times greater solar solar spectrum, which helps keep roofs cool reflectance and exceptionally high thermal in the summer time. emittance. • Allow shingle manufacturers to achieve EPA’s Energy Star® rating • A palette of 8 durable, Cool colors 2007 3M Investor Conference 23 © 3M 2007
  • 24. Last Year We Articulated 4 Key Strategies Core growth • Drive new product introductions • Assure the Maintenance Free Respirator franchise • Eliminate capacity constraints Adjacencies/M&A • Border and civil security • Water market International • Emerging market channel/sales coverage • Optimize supply chain & regional manufacturing • Local/regional product coverage & development EBO & Special initiatives • T&T EBO • Mining market center EBO 2007 3M Investor Conference 24 © 3M 2007
  • 25. Additional Capacity Will Further Drive Core Growth Core Adjacent Intl’ EBO’s Hwaseong, Korea • Significantly increases maintenance free respirator and elastomeric face respirator capacity • Shortens supply chain Morden, Canada • Increases corrosion protection capacity close to customers in the oil sands region of Canada • Increases corrosion protection Volokolamsk, capacity close to exploration Russia customers in Eastern Europe and Asia 2007 3M Investor Conference 25 © 3M 2007
  • 26. Additional Capacity Will Further Drive Core Growth Core Adjacent Intl’ EBO’s JinShan, China • New ScotchBrite® capacity closer to Asian customers XinQiao, China • New window glazing capacity closer to Asian customers Ahmedabad, India • Increases corrosion protection capacity close to exploration customers Asia 2007 3M Investor Conference 26 © 3M 2007
  • 27. Last Year We Articulated 4 Key Strategies Core growth • Drive new product introductions • Assure the Maintenance Free Respirator franchise • Eliminate capacity constraints Adjacencies/M&A • Border and civil security • Water market International • Emerging market channel/sales coverage • Optimize supply chain & regional manufacturing • Local/regional product coverage & development EBO & Special initiatives • T&T EBO • Mining market center EBO 2007 3M Investor Conference 27 © 3M 2007
  • 28. M&A And Has Driven Significant Growth In Both Core And Adjacent Markets Core Adjacent Closed Comments Intl’ EBO’s Pomp (OHESD) June ’06 • Hearing protection products & technology in LAC Pinnacle Distribution (T&T) July ’06 • Transportation Management System software Aerion (OHESD) Aug ’06 • Gas detection products & technologies SPSL (SSD) Aug ’06 • Core changing addition of secure printing technology, products, marquee customers Global Beverage Group Nov ’06 • Direct store delivery management software (T&T) Ekahau, Oy (T&T) Nov ’06 • Access to new technology E. Wood Holdings (CPP) May ’07 • New products & technologies in liquid coatings, also new products & access for the water market Rochford Thompson (SSD) July ’07 • New authentication products & technologies Over $325M of sales expected in 2008 2007 3M Investor Conference 28 © 3M 2007
  • 29. Our Acquisition Of SPSL Enables Us To More Fully Serve The Passport Market Core Adjacent Building our capabilities in border and civil security systems Intl’ EBO’s Assets/capabilities added • Secure passport/document printing capability (enables addition of security film and other features) • ePassport technology and manufacturing • Significant Tier 1 customer relationship – United Kingdom passport contract 2007 3M Investor Conference 29 © 3M 2007
  • 30. Our Acquisition Of Rochford Thompson Extends Our Abilities In Border Security Core Airline Kiosks, Law Adjacent Acquired with RT Border Control Enforcement, Public Intl’ EBO’s Transport, Hospitality • A clear leader in the passport reader products market globally 2007 3M Investor Conference 30 © 3M 2007
  • 31. As A Result, We Are Now Contributing To Security Solutions Across The World Core Adjacent Intl’ EBO’s 2007 3M Investor Conference 31 © 3M 2007
  • 32. Our E. Wood Acquisition Moves Us Into The Water Market Core Pipelines are wearing out en masse over the next 30 years, and repairs are Adjacent Intl’ complicated by in-ground conditions EBO’s Material Installed Average life Repairs begin Cast Iron 1880’s 120 yrs. 2000-2030 Ductile Iron 1920’s 100 yrs. 2005-2035 Steel 1940’s 75 yrs 2010-2040 Potable water loss from corroded infrastructure (estimates) • Italy 40% • Boston 36% • Norway 50-70% • London 50% Aging water infrastructure is a global issue 2007 3M Investor Conference 32 © 3M 2007
  • 33. The E. Wood Solution Provides For Trench-less Water Pipe Rehabilitation And Protection Core Adjacent Intl’ EBO’s Rehabilitated pipe Apply product Clean in place Existing pipe • Expected 75 yr life 2007 3M Investor Conference 33 © 3M 2007
  • 34. Last Year We Articulated 4 Key Strategies Core growth • Drive new product introductions • Assure the Maintenance Free Respirator franchise • Eliminate capacity constraints Adjacencies/M&A • Border and civil security • Water market International • Emerging market channel/sales coverage • Optimize supply chain & regional manufacturing • Local/regional product coverage & development EBO & Special initiatives • T&T EBO • Mining market center EBO 2007 3M Investor Conference 34 © 3M 2007
  • 35. Strong International Growth Country growth 2006 (%) Core Adjacent Intl’ EBO’s 60% 44% 41% 38% 34% 25% 24% 23% 20% 19% 19% a a il a sia d a ey a ico a ric re az in di lan in el rk s Ko Ch x zu In nt Br Af Ru Po Tu Me ge ne S. Ar Ve Double digit international growth 2007 3M Investor Conference 35 © 3M 2007
  • 36. Maintenance Free Respirators Used To Be Supplied By Two Plants Maintenance Free Respirator supply chain 2005 Core ILLUSTRATIVE Adjacent Intl' EBO’s 2007 3M Investor Conference 36 © 3M 2007
  • 37. An Additional Plant Has Allowed Us To Dramatically Shorten The MFR Supply Chain Maintenance Free Respirator supply chain 2007 Core ILLUSTRATIVE Adjacent Intl’ EBO’s 3 week reduction in supply chain time to Asia Less costly local source of raw materials 2007 3M Investor Conference 37 © 3M 2007
  • 38. Two Manufacturing Sites Formed The Foundation Of The Corrosion Protection Supply Chain In 2002 Corrosion protection supply chain 2002 Core ILLUSTRATIVE Adjacent Intl’ EBO’s 2007 3M Investor Conference 38 © 3M 2007
  • 39. Corrosion Protection Customers Will Soon Be Served By A Number Of Regional Supply Hubs Corrosion protection supply chain - Future Core ILLUSTRATIVE Adjacent Intl’ EBO’s Significant lead time reductions to customers Reduced inventory requirements 2007 3M Investor Conference 39 © 3M 2007
  • 40. Our Local Labs Are Driving Local Innovation Core Adjacent Intl’ EBO’s Working with customers - globally 2007 3M Investor Conference 40 © 3M 2007
  • 41. Last Year We Articulated 4 Key Strategies Core growth • Drive new product introductions • Assure the Maintenance Free Respirator franchise • Eliminate capacity constraints Adjacencies/M&A • Border and civil security • Water market International • Emerging market channel/sales coverage • Optimize supply chain & regional manufacturing • Local/regional product coverage & development EBO & Special initiatives • T&T EBO • Mining market center EBO 2007 3M Investor Conference 41 © 3M 2007
  • 42. Track & Trace EBO: Tapping Into The Next Great Market Opportunity Core Adjacent Intl’ EBO’s Who Am I? Where Am I? How Am I? Identify Locate Evaluate Optimize Products: ·RFID ·Sensors and ·GPS ·Location-based ·Active RFID sensor networks services ·RFID/RTLS ·Logistics & ·Bar-code ·Ultrasound ·Software optimization solutions 2007 3M Investor Conference 42 © 3M 2007
  • 43. Breakthrough New Product – Specimen Management System Core Adjacent Intl’ EBO’s ct . 1 t Pi duc P ro Description Advantages An RFID enabled solution that tracks and • Increased patient safety – limits mix-up, manages specimen movement from surgical mislabeling and loss of specimen samples suites, through pathology laboratories, to which can lead to inappropriate diagnosis result at the patient’s bedside • Increased efficiency – process optimization through visibility and management of all samples throughout the hospital 2007 3M Investor Conference 43 © 3M 2007
  • 44. Sample Patient Safety Applications Core Sample Hospital Floor Plan Nurses station Adjacent Intl’ Patient Rooms EBO’s Medical Oncology Labor/Delivery Cardiology Conference Mrs. Smith Family Rooms DR DR Perinatology & Genetics Catheterization Obstetric Surgical Suites Suites Cardiac Administration Locate Intensive DR Baby Smith Stat Lab Lobby Nursery NICU Care Mrs. Smith Post-partum/Maternity Catheterization Patient Rooms Recovery Track Optimize/Protect Locate Mrs. Smith Rules-based Infusion pumps Infusion pumps Baby Smith movement Crash carts Crash carts monitoring & DR Physicians DR Physicians notification PT Patients PT Patients Mrs. Smith Specific patients Mrs. Smith Specific patients 2007 3M Investor Conference 44 © 3M 2007
  • 45. Sample Patient Safety Applications Core Sample Hospital Floor Plan Nurses station Adjacent Intl’ Patient Rooms EBO’s Medical Oncology Labor/Delivery Cardiology Conference Mrs. Smith Family Rooms DR DR Perinatology ALARM & Genetics Catheterization Obstetric Surgical Suites Suites Cardiac Administration Locate Intensive DR Baby Smith Stat Lab Lobby Nursery NICU Care Mrs. Smith Post-partum/Maternity Catheterization Patient Rooms Recovery Track Optimize/Protect Locate Mrs. Smith Rules-based Infusion pumps Infusion pumps Baby Smith movement Crash carts Crash carts monitoring & DR Physicians DR Physicians notification PT Patients PT Patients Mrs. Smith Specific patients Mrs. Smith Specific patients 2007 3M Investor Conference 45 © 3M 2007
  • 46. New Mining EBO: Bringing The Big 3M To Mining Globally Core Adjacent Intl’ EBO’s Market focused organization – dedicated to mining customers “Driving Growth at the Customers’ Place with the Customers Pace” 2007 3M Investor Conference 46 © 3M 2007
  • 47. Multiple Forces Driving Growth In The Mining Industry Core Adjacent Intl’ EBO’s Growth Drivers Regional 3M Mining Sales Growth ’04-’07 CAGR • Increased worker safety compliance • Increased environmental awareness 19% 22% • Continuing productivity challenges 21% • Consolidation among incumbents • Regulatory activity in developing 23% economies Significant untapped potential 2007 3M Investor Conference 47 © 3M 2007
  • 48. Focused On Rapid Development Of Innovative Products And Services Core Adjacent Personal Safety Smart Safety Intl’ EBO’s 24x7 Onsite Service Dust Suppression 2007 3M Investor Conference 48 © 3M 2007
  • 49. Agenda • Our markets and businesses • Driving growth for the future • Summary 2007 3M Investor Conference 49 © 3M 2007
  • 50. Driving The Execution Of Our Key Strategies To Accomplish Our Dream: A $10 Billion Business ILLUSTRATIVE Core growth Governments SSD Adjacencies/M&A CPP B&CSD Businesses OH&ESD Customers T&T EBO T&T T&T EBO IMPD Mining Global focus Consumers EBO & Special initiatives Safety - People Security - Processes Protection - Assets 2007 3M Investor Conference 50 © 3M 2007