© 3M All Rights Reserved. Focus on Growth 1 3M Canada Review Brian Young President and General Manager With a

© 3M 2012 All Rights Reserved. 2 Morning Agenda 7:30 a.m. – 8:30 a.m. 3M Canada Overview Brian Young 8:30 a.m. Business Services Britta Lesaux 9:00 a.m. Manufacturing Jim Brock 9:30 a.m. R&D Randy Frank 10:00: a.m. Break Depart for meeting with Ontario Premier Dalton McGuinty George HC Brian Lunch 12:00 – 12:45 p.m. Private Dining Room Resume 12:45 p.m Afternoon Agenda Wrap-up: 4:30 p.m. │ Depart to Airport: 5:00 p.m. 1:30 p.m. – 4:45 p.m. Big B Review 2:00 Martha Bennett COB 2:45 Tim Brown Health Care 3:15 Richard Chartrand D&G 4:15 Kevin Higgins I&TB 3:45 John Kosnik ECB 1:30 Bill Boyce SS&PS 11:30 a.m. CMPA Chip Allan 12: 45 p.m. Human Capital Plan Janette Batten Break 2:30 p.m. – 2:45 p.m.

© 3M 2012 All Rights Reserved. 3 3M Canada 90% Imported Market Focused 1,100 Employees Domestic Business 2011 Sales - $860 M 90% Exported 800 Employees $1.1 Billion SVOP Interco. Business 2011 Sales - $728 M Growth and Operational Excellence

© 3M 2012 All Rights Reserved. 4 Highlights  OI Vs OP – 4 for 4 in 2011 – 12 for 12 in last 3 years  Generation of Cash, repatriated $149 Million  Implementation of the Tax change (estimate ~$15M savings to the company)  Business Services Organization formed  Infection Prevention and Skin & Wound Care awarded 5-year $70 M HealthPRO contract  M61 Military Program  Recognition as one of “50 Most Engaged Workplaces (Top 7)  Excellent Brand Reputation Survey Results  Two Global Marketing Excellence Awards  NPVI Progress – 26.6%/$28 Million  Manufacturing offsets about $10m of RM headwinds  World Class Compliance and EHS performance

© 3M 2012 All Rights Reserved. 5 3M Canada Track Record 12 Consecutive Quarters – 17/18

© 3M 2012 All Rights Reserved. 6 Canada’s Economic Outlook Strengths and Challenges 2012 GDP Resource Rich Export Dependency Healthcare Economics Financial Stability 2012 IPI Source: Global Insights January 2012

© 3M 2012 All Rights Reserved. 7 GDP/IPI Trends and Outlook

© 3M 2012 All Rights Reserved Operating Plan Accelerated Growth Continued Margin Expansion +0.7% SG&A Ratios down 1% CI% up 2%, good leverage Continued tax drop Continued operational focus balanced with growth to secure OP +

© 3M 2012 All Rights Reserved. 9 Managing the Balance Leadership Domestic Intercompany Domestic Intercompany Operational Strategic Operational Strategic Growth Operational Excellence Growth Operational Excellence Gas Brake Gas Brake Risk Reward Risk Reward

© 3M 2012 All Rights Reserved. A Balanced Strategy – Growth and Operational Excellence Growth Protect and Grow the Core High Priority Markets Customer FocusThe “Big” 3M Brand Building Pyramid Management Alignment Competitiveness Operational Excellence Human Capital Plan Inventory Management Sourcing Lean Six Sigma Business Execution Gross Margins NPI Performance Shared Services Tax Innovation New Products 10 Transformational Leadership &Engaged Employees Deliver Operationally/Manage Strategically

© 3M 2012 All Rights Reserved. 11 Full Alignment 3 Top – Level Improve ment Priorities 2 Annual Strategic Objective s 1 Long Term “Breakthrough ” Strategic Objectives 1 Targets to Improve KEY POINT: This simply shows that BEP is the “Execution Process” for the Strategies (assures that we are working on what will get us to both short and long-term goals)

© 3M 2012 All Rights Reserved. 12 3M Canada X-Matrix 3 Top –Level Improvement Priorities 2 Annual Strategic Objectives 1 Long Term “Breakthrough” Strategic Objectives 4 Targets to Improve Deliver Operationally/Manage Strategically KEY POINT: BEP is HOW the team will manage its execution to Deliver Results! (Executives don’t need to see the details to appreciate that they employ this process)

© 3M 2012 All Rights Reserved. 13 3M Canada X-Matrix 13 1 Long Term “Breakthrough” Strategic Objectives Breaking the X-Matrix into components is useful to clearly articulate your message

© 3M 2012 All Rights Reserved. 14 3M Canada X Matrix Annual Strategic Objectives Top Level Priorities Targets to Improve - $252 M Total This demonstrates how your X-matrix Flows, connecting Annual Objectives to the IMPROVEMENT Objectives and Targets The message here is that while many things are measured and important in running the Subsidiary, these are the MOST IMPORTANT elements to execute, THIS YEAR.

© 3M 2012 All Rights Reserved. 15 3M Canada X-Matrix Execute Growth Plans for Priority Markets ($80M Total) Achieve New Product Development Milestones & Success for Local New Products – ($72M Local) Achieve New Product Development Milestones & Success for Local New Products – ($72M Local) Execute Marketing Excellence Plan Leverage Business Services to Drive Productivity, Competency and Quality of Services (31,000 hrs.) Business Conduct, Regulatory Compliance and World Class Safety Growth from Strategic Accounts at Financial & Operational Milestones ($167.4M Total) Execute Employee Engagement and Performance Culture Execute Sales Excellence Plan 4 Targets to Improve NOTE: Highlighting the VITAL FEW, among the finite list of Targets to Improve

© 3M 2012 All Rights Reserved. 16 Business Conduct, Regulatory Compliance and World Class Safety

© 3M 2012 All Rights Reserved. 17 Business Conduct, Regulatory Compliance and World Class Safety A3 Highlights - Owner – Blair Fantillo  Culture of Compliance and Pro-active Leadership  Continued implementation of Anti-Bribery Program  100% Completion of On-Line Compliance Courses  Education and Training  Maintain and Improve Operational EHS Scorecards  SOX and GFS Compliance  Improve Communication Process for Acquisitions Delivering the Big 3M Zero Unsatisfactory Audits and Zero Past Due Issues

© 3M 2012 All Rights Reserved. 18 Delivering the Big 3M Growth from Strategic Accounts at Financial and Operational Milestones

© 3M 2012 All Rights Reserved. 19 Delivering the Big 3M Growth from Strategic Accounts and Financial and Operational Milestones A3 Highlights – Owner – Brian Young  A3s for all 12 Strategic Accounts  Total 2012 Sales - $ 167 MM  Industry consolidation continues to elevate the strategic importance of key account relationships  The breadth of 3M's cross divisional product offering is a key differentiating factor  Improve communication and co-operation to leverage “Big 3M” with strategic accounts.  Monthly MOC review As with the last slide, it is generally good to show the A3 briefly in the background – but go quickly to the KEY points of your ACTION PLAN of the A3. You are conveying to the executives that you have a plan and disciplined approach as to HOW your will achieve the objective.

© 3M 2012 All Rights Reserved. 20 Execute Growth Plans for Priority Markets

© 3M 2012 All Rights Reserved. 21 3M Canada Corporately Funded Priority Markets Mining Constructio n Oil and Gas Corporate Wide Initiatives

© 3M 2012 All Rights Reserved. 22 Identify the Market Funding Investments Talent Align Technical Resources Key Account Alignment Product Development Oil and Gas  World’s 5 th largest energy producer  3.3 million barrels per day of oil produced  1.8 million barrels per day of oil from oil sands production  3 rd largest producer of natural gas in the world  580,000 kilometres of pipeline in Canada  $200B of new O&G Oil Sands projects in next 10 years  Opportunities in Construction and Operations Identify the Market

© 3M 2012 All Rights Reserved. 23 Identify the Market Funding Investments Talent Key Account Alignment Align Technical Rexources Product Development Funding Investments 3M Canada Sales Funded by Sales% Not Big B Benefit

© 3M 2012 All Rights Reserved. 24 Identify the Market Funding Investments Talent Key Account Alignment Align Technical Resources Product Development Talent Advertise Nationally Hire Train Locally using S5s 1-2mths Relocate to Ft. Mc Site access using existing resources 3-5 yrs in Ft. Mc Train replacement Relocate anywhere in Canada Recruitment Hire industry expertise Positioning Locate close to customer – Fort McMurray Retention Unique compensation Flight ‘home’ 1 time per year Housing allowance Relocation to another Canadian city with 3M position after commitment 4X4 Pickups for rough terrain

© 3M 2012 All Rights Reserved. 25 Identify the Market Funding Investments Talent Key Account Alignment Align Technical Resources Product Development Key Account Alignment Industry HQs in Calgary Key Account Focus – Supplier Agreements

© 3M 2012 All Rights Reserved. 26 Identify the Market Funding Investments Talent Key Account Alignment Align Technical Resources Product Development Align Technical Resources Monty Malik Application engineering and product development laboratory in Calgary

© 3M 2012 All Rights Reserved. 27 Identify the Market Funding Investments Talent Key Account Alignment Align Technical Resources Product Development Product Application and Development Enhanced Abrasion Resistant Liner E-Mat Applications Ultra Light Weight Proppant Nano Release Coatings

© 3M 2012 All Rights Reserved. 28 3M Canada Oil and Gas Markets Self Sustaining – Integration into Big B Oil& Gas Sales Forecast Glass Bubble Sales Integrate into Big Business

© 3M 2012 All Rights Reserved. 29 3M Canada Priority Markets Oil &Gas ,256$40,989 Construction $11,000$14,000 Mining $23,007$25,647 $000 CAD 3 Year CAGR 10.72% 28.81% 89.73% F $35,522 $7,826 $19,998 $30,200 $2,050 $12,000

© 3M 2012 All Rights Reserved. 30 Execute Sales Excellence Plan

© 3M 2012 All Rights Reserved. 31 Achieve New Product Development Milestones & Success for Local New Products

© 3M 2012 All Rights Reserved. 32 Interactive Marketing Excellence Marketing Competency Development Core Marketing Management Marketing Planning & Analytics Strategic Business Development Business Execution Process Business Execution Process GlobalLocal Execute Marketing Excellence Plan

© 3M 2012 All Rights Reserved. 33 A3 Highlights – Owner – Chip Allan Central team focused on new product and business development Accelerated NPI in Priority Markets White Space Exploration & Opportunity Definition Incubate high potential projects Strategic consulting & project management Develop a formalized path for marketing and business leadership. New career path for high potential marketing professionals Opportunity to get broad exposure to the breadth and depth of 3M. Regular exposure to senior leadership Entry point to attract and recruit strong external talent in marketing. Help to achieve internal expectations for Marketing Excellence Strategic Business Development Another Example – If you want to show an A3, do it briefly in the background – but go quickly to the KEY points of your ACTION PLAN of the A3. You are conveying to the executives that you have a plan and disciplined approach as to HOW your will achieve the objective.

© 3M 2012 All Rights Reserved. 34 SBDL Department Approach Prospecting and supporting relevant growth opportunities for 3M Canada OUTSIDE IN 1. Strategic opportunity assessment of current and future BIG market spaces with high value growth. 2.“Connect the Dots” to map out technology solutions (internal & external). 3. Work with the Divisions to scope and bring it forward.

© 3M 2012 All Rights Reserved. 35 Strategic Business Development  In 2011, 34 projects were entered into SBD hopper and ranked 16 NPI projects 15 market research/new market model projects 3 integrations  13 projects were completed in launched and 6 killed –Projects Launched –Lymphedema │ Arizant │Original Wraps │ Bovine Mastitis │ Specified Construction – Building Envelope (Air Barrier).  12 active projects in 2012 –Algae-Biofuels │ Abrasives Leadership │ Patient Bathing │ Own the Floor │ Data Centers │ Mobile Workers │ Retail Home Health │ Government Sales │ Shelter Grade Thinsulate │ Water Infrastructure  Rejuvenate the SBD Hopper Strategic Business Development

© 3M 2012 All Rights Reserved. 36 Leaders of the Q Q Execute Employee Engagement and Performance Culture

© 3M 2012 All Rights Reserved. 37 Summary  Strong track record of operational excellence  Disciplined approach to Human Capital Planning  Consistent quarter-to-quarter, year-to-year performance  Strong compliance orientation  Traction with new products  World class manufacturing performance  Growth focused Centralizing, Optimizing, Standardizing For Lean Business