H.C. Shin Executive Vice President, Industrial and Transportation Business

Growth Through Focus on
Customers
H.C. Shin
Executive Vice President,
Industrial And Transportation Business

3M Investor Meeting 2006 © 3M 2006 All Rights Reserved

Industrial & Transportation Business
Promise To Our Customers
Understand your needs and
your business
Improve the design, quality,
productivity and safety of
your products and
Make our operations
customers
Support your business
more
competitive locally and globally, with the
resources you need to get
the job done!
Provide solutions to help
you succeed and be more
competitive

Industrial & Transportation
Business Key Financial Data
Sales Operating Income
$1,500
$7.0
$Billions & YOY % Chg $Millions & YOY % Chg
$6.1
$1,211
$5.7
$6.0
+8%
$5.1 $1,200 $1,050
+15%
+11%
$5.0
+7% +28%
$823
$900
$4.0
-1%*
$3.0 $600
$381
$1.7
$2.0
$300
+12% +24%
$1.0
$0
$0.0
2003 2004 2005 Q1 2006
2003 2004 2005 Q1 2006

LC Growth 2.0% 7.2% 6.5% 14.0% OI Margin 16.0% 18.4% 19.7% 22.4%

2005 Sales By Geographic Area
U.S. 38%

LAC 10%
Europe 28%
APAC 24% *2002 estimated stock options, not restated.


Q1 2006 Highlights
Industrial and Transportation Business market/platform
synergy
Strong organic growth, robust new product flow
Top 9 Opportunities identified and resourced
CUNO integration well under way
General Industrial Diamond acquisition closed
Global Automotive Market Center initiative
I&TB BRICP Entitlement Growth Plan under way
I&TB Service and Quality Revolution initiative gaining
traction


Industrial Adhesives And Tapes Division
Adhesives
Bonding
Tapes
Converter
Markets

Packaging Tapes

Single Sided
Tapes

Abrasive Systems Division
3 Fiber Discs
3 Scotch-Brite™
3 Cubitron™ Ceramic Grain
Surface Conditioning

3 Coated Abrasive Belts
3 Super Abrasives 3 Trizact™ CF Belts


Automotive Aftermarket Division
Painting and
Body Repair
Paint Finishing

Mechanical
Repair and Detailing and
Maintenance Appearance

Automotive Division, Automotive Market Center
Functional Graphics

Design

Attachment

Interam™ Body Structures

Specialty Materials Division
Filtration Solutions
Fluoropolymers
Creating cleaner
environments and more
efficient systems, inspired
by a changing world.

Unique, high
performance
material Ceramic Fibers & Additives
solutions for
harsh Advanced material
conditions and technologies to help
demanding customers make products
environments. lighter, stronger,
safer – better.


Four Growth Strategies

Growth through market segments programs
– Transportation, Electronics, Metalworking,
– Oil and gas, MRO, Building contractors, Food and Beverage

Growth through new platform
– Supply chain execution, Filtration, Composite material
– Top 30 New Product Programs

Geographic penetration
– China, India, Eastern Europe, Russia, Brazil (BRICP)
– Developed economy

Growth by leveraging brand
– Channel growth programs
– I&TB Service and Quality Revolution


Serving Diverse Market Segments

Appliance &
Building Electronics
Furnishings
Contractors
Metalworking

Aerospace
Food & Beverage
Oil and Gas
Maintenance
& Repair

Paper & Packaging
Transportation

Platform & Market Execution Model Focus On
Market Segment And Customer Needs
CUNO ASD IATD SMD HighJump
Abrasives Specialty Supply
Filtration Adhesives and
Solutions Materials Chain
Solutions Tape Solutions
Solutions Solutions

Transportation Oil & Gas Food Paper MRO Metal App- Wood-
Electronics
Working liance
Markets & Bev & Working
Display
Auto OEM Print
Assembly
Tiers MHH
Aerospace Semicon
Aftermarket
Marine

Globally Managed Segments Geographically Managed Segments


Window And Door Segment Team Activity
Customer Process
Mapping
Glass
Sheets Heat
Wood & Composites
Optimized Cut
Glass Sash Attachment

Wood, Vinyl, & Metals
Glass Washer Customer Pain Points
Framing

Insulating Glass
Packaging

Shipping


Single Sales Force Brings All 3M Solutions To
Industrial And Transportation Market Centers

One face to the customers
Quick Market Growth ( QMG )

Removing any internal barriers
on a real time basis
Quality Direct System
Integrated Customer Center
E-enabled front end CRM tools


Market Focus Is Our Go-To-Market Strategy
Global Automotive Market Center 3M Solutions
3M™ Fiber 3M™ Bumpon™ Protective
Vikuiti™ Adhesives Roof ditch
Electrical wire harness and Mirror button in interior sealing Graphics in Products in interior
Display
heat-shrink protection interior
attachment 3M™ Dual Lock™
Enhancement
Fluoropolymers for Fasteners in interior
Films in interior
gaskets, seals, hoses
3M™ Blackout Film
Hem flange bonding for window surrounds
for hood & Pillars
3M™ Paint 3M™ Acrylic Foam
Protection Film Tape for weather-
3M™ Dimensional strip attachment
Graphics nameplate
3M™ Adhesive
Transfer Tapes
Fastener
in interior
Adhesives
3M™ Glass
3M™
Bubbles for plastic
Damping
weight reduction
Foil Tape
3M™ Label
3M™ Confirm™
Materials in interior
Security Labels 3M™ Interam™
3M™ Electrical Filtrete™ Cabin Thinsulate™ Acoustic Catalytic Converter
3M™ Acrylic Foam
Tapes Insulation in door
Air Filter Mat Mount
Tapes for exterior
3M™ Vitrotrim™ 3M™ Scotchcal ™ High- attachment
3M™ Solar Reflecting Film Performance Graphic Films
badge

Masking Protective Cleaning Sorbents Floor Mats Respirators Vibration Acoustic Hearing
Abrasives
Products Films Fluids Damping Insulation Protection


3M Solutions In Aircraft Manufacturing And
Maintenance Industry
New Projects : Structural
Adhesives
- Lightening Protection Electrical
- Flame Shield Connectors
Assemble
- Glass Bubble Filler Seats
Remove
Corrosion
Heavy Metal
Management
Gates

Impact Protection

Jet Blade Dove
Tail Deburring
Clear,
Secure, Protect from Shocks
Labels and Vibrations


3M Solutions To Oil And Gas Market

Refining
Exploration & Transportation Marketing
Gas Processing &
Production Petrochem
3M Solutions
Abrasive Systems Solutions Corrosion Protection Solutions Entitlement:
Industrial Tape and Adhesives Electrical Products
1 cent/G
Occupational Health & Safety Specialty Materials Solutions
Filtration Solutions Commercial Graphic Solutions
Current 3M
Penetration:
5 cents/G

Oil and Gas Business Team represents the total
3M Solutions to Oil and Gas industry

Global Business Transfer Process
Launched in Sept. 2003, Business retention 91% in 2005
Follow the business transfers globally

Originating Sales Rep Destination Manager
Country Process Owner

Draft Submit Acknowledge Transfer Acknowledge Complete

Originating Manager Destination Sales Rep


Strategy: Follow The Mega Trend
Expanding Urbanization
Water/Air in Danger
Threatened Safety and Security
Changing Health Care
Gender, Wealth, and Aging Population
Flattening World
The Energy Crunch


CUNO Liquid Filtration Platform,
New Growth Platform


Seamless CUNO Global Integration
Dec '05 Jan Feb Mar Apr May Jun Jul Aug

Site R oca ti n
el o
3M S ubs E mployment
H o n g Ko n g

Global integration direction
Su pply C ain Sys. In tegrat on
h i
Ba ck Office Complete
N /A N ot A ppli a ble
c

Ko re a

– Preserve CUNO’s business model
T ha i la n d

– 3M adds value in operational
M al a ys ia
Ph il ip p in e s

excellence & international business
Ch i n a
In d ia T aiwan Ind one sia
Vietn am Sri L anka

T BD
J a p an

3 Industrial Business
T BD
Au s t ral ia
T BD

Q4 '06
Co nve rt in g t o T ha ila nd
S in g a p o re Q2 '0 6

APAC Milestones by Country

Robust Q1 sales growth
Cost/sales synergy kicking in
Integration on schedule Bringing Together Two
Great Com panies
95% mgmt. retention
9


High Jump Interactive Supply Chain Solutions
Smiley’s POS
Data: I just sold
You will need 3
Visibility
1000 Cases of 3M temporary workers
Masking Tapes and ship 200 cases
2 to Smiley’s DC by
1 4pm tomorrow

Turn right on I-90 in
13 miles and head
to Smiley’s DC

Cross-dock your
production to
Smiley’s DC.
Extend your
Connectivity production run by
500 cases.

3 Optimization
Information from Factory Floor : I
Information from
WMS: I have 200 have 500 cases
TMS/Truck GPS: I
cases and finished by
have 300 cases
capacity to pack 4pm today
and I am in
and ship Milwaukee,WI
4 Wow! I did not
even know I
needed these
Masking Tapes


3M Composite Conductor – Energy Efficiency
The traditional solution to bottlenecks:

Build new towers to
carry conventional
steel conductors

The problem: High
Developed for Performance & Reliability construction cost,
long permitting times,
Continuous CERAMIC
difficulty obtaining
Fibers Embedded in
land, community
Aluminum
3
opposition

2-3X gain in transmission capacity
Use existing infrastructure
Quick and easy solutions
©
© 3M 2005
3M 2005
Proprietary 3M technology

Addressing The Mega Trend, Construction Solutions
Reinventing The Core Industrial Business
Illness
Moisture Mold
Remediation Liability
Intrusion Mildew
Damage

Customer Pain Points

Window Roof Foundation

New roofing system
New Wall protection system
House wrap tapes
Concrete protection system
Flashing/Sealing system


Oil And Gas, 3M Down Hole Solutions
Enhancing Productivity And Recovery
Glass Bubble for Low density cement

Filter Bags

Fluoro-
elastomer


BRICP Country Entitlement Growth Plan
Country 2004 Sales 2010 Entitlement
3 I ndustrial Business

Brazil
10X Plan
Russia
India 3 India
China
Poland

Products that meet local market needs
Quick response to customer needs
Critical Issues
Supply chain efficiency
Knowledge transfer
Talent management (hiring, training, retention)


3M India 10X Plan Market And
Portfolio Strategy
3M will be in a better
position to sell up and
protect share as A
markets develop
Strategy is to
position more in B
B
& C Tiers
A
today
B

C
C

India Future
India Market Today
Increasing demand for quality
Large C Tier
will drive A & B Tier growth
Limited opportunity in A Tier


Strategy : Accelerate Localization And
People Investment

Local coating and converting
Local raw material, local
products
Supply chain simplification


Four Growth Strategies
Growth through market segments programs
– Transportation, Electronics, Metalworking,
– Oil and gas, MRO, Building contractors, Food and Beverage

Growth through new platform
– Supply chain execution, Filtration, Composite material
– Top 30 New Product Programs

Geographic penetration
– China, India, Eastern Europe, Russia, Brazil (BRICP)
– Developed economy

Growth by leveraging brand
– Channel growth programs
– I&TB Service and Quality Revolution


Leverage 3M Brand : Industrial Channel
Growth Plan
Leverage 3M Brand
Category management
Product gap filling
Competitive conversion
Channel entitlement growth plan


Brand Leverage, I & TB
Service and Quality Revolution

Capable and
aligned with
the
customer
The Right Products…..
Delivered when the customer wants.

In the right quantity and # of shipments.
On target
with With expected quality and performance.
minimal
1.
variability
and waste Target zero defect
2. Service as competitive advantage


Top 9 Growth Opportunities
1. Oil and Gas Program
2. Composite Conductor Program
3. Liquid Filtration ( CUNO )
4. Paint Preparation Systems
5. Supply Chain Execution ( HighJump )
6. BRICP Entitlement Growth Plan
7. Channel Growth Plan
8. Maintenance and Repair Segment Plan
9. Top 30 Organic New Product Programs


Industrial And Transportation
Business Summary
Strong core business
Excellent global reach
Sound operational discipline
Expanding to new adjacent markets
Expanding to high growth market space
Focus on growth – 5-8% near term LC growth


H.C. Shin Executive Vice President, Industrial and Transportation Business

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