1. 3M Canada 2010-2011 Brian Young

2. © 3M 2011. All Rights Reserved. 2 Today’s Agenda MORNING  8:00 a.m. – Brian Young Welcome │ Introductions │Business Execution Process  8:30 a.m. – Don Ashton Financials  9:15 a.m. – Brian Young Operational Imperatives │ Targets to Improve  10:15 a.m. – Morning Break  10:45 a.m. – Brian Young 3M Canada Big B Overview  11:45 a.m. - Wrap-up  12:00 p.m. Lunch │ Employee Presentation AFTERNOON  1:00 p.m. - 3M Canada R&D Presentations │ Poster Sessions

3. © 3M 2011. All Rights Reserved. 2010 Highlights for 3M Canada  OI Vs OP – 4 for 4 in 2010 – 8 for 8 in last 2 years  Tax partnership creates tax rate benefit (25% in 3 years from 35%)  Generation of Cash, repatriated $200 Million  “One Company” Plan  Achieved SKU reduction targets  2010 Vancouver Olympics sponsorship  Successful Integration for local/global acquisitions  Portfolio Management & Resource Allocation  Progress on Market Prioritization  Excellent Opinion Survey Results: Engaged Employees  World Class EHS performance 3

4. © 3M 2011. All Rights Reserved. 3M EVPs Individual Business and Function Leaders Focused on own operations Working in individual Silos Individual Business and Function Leaders Focused on own operations Working in individual Silos Focus on own operation Working in individuals silos FROM Future Direction for 3M Canada The “One Company” Plan Local Markets Portfolio Prioritization Resource Allocation Market Focused Execution Portfolio Prioritization Resource Allocation Market Focused Execution TO Speed/adapting to change as a Total Co Standardized Processes Shared Services Shared Resources 4

5. © 3M 2011. All Rights Reserved. Local Alignment to Global Strategies 5 NOTE: BEP Documents integrated to show Execution rigor

6. © 3M 2011. All Rights Reserved. 3M Canada’s Markets 3M Ability to Win Based on Top Growth Programs, Channel Strength, Competitive Advantage Based on Estimated CAGR (’10-’15), Market Size, Stay-at-Home Market 6

7. © 3M 2011. All Rights Reserved. Priority Markets 7 Oil and Gas Transportation Government Health Care Infrastructure/- Construction Mining Retail

8. © 3M 2011. All Rights Reserved. 3M Canada Business Execution Process Hoshin Kanri Lean Six Sigma Strategic Plan – Op Plan Business Imperatives Prioritized Markets Engaged Employees 8

9. © 3M 2011. All Rights Reserved. Why Business Execution Process  Ties operating imperatives to strategic objectives  Drives Alignment  Prioritization: Define the Vital Few Goals  Ensures Accountability  Establishes a rhythm for regular reviews based on forward look and leading indicators  Shifts discussions to what will we make happen from what already did  Reduces PowerPoint dependency  Provides simple tracking for all elements of the plan It’s not the Tool that matters, It’s the Mindset 9

10. © 3M 2011. All Rights Reserved. The Business Execution Process Top level X-Matrix 1 1 Create X-Matrix 1 1 A3s 22 Build A3 Plans 22 Top Level Bowler 33 Track Performance 33 44 CountermeasureCountermeasure 44 10 “Countermeasures” would be what we build into “Management Action Plans”

11. © 3M 2011. All Rights Reserved. An A3 Walkthrough in Actual Practice 1. Why is this Vital Rationale for focus 1. Why is this Vital Rationale for focus 2. What Worked and What Didn’t Green, Red 2. What Worked and What Didn’t Green, Red 3. Current Performance Where Are We, Where Were We Where Are We Going? 3. Current Performance Where Are We, Where Were We Where Are We Going? 4. Action Plan Who, When, How Much 4. Action Plan Who, When, How Much 5. Countermeasures What Needs to be Done to get Back on Track 5. Countermeasures What Needs to be Done to get Back on Track 6. Unresolved Issues What Needs to be Done to get Back on Track 6. Unresolved Issues What Needs to be Done to get Back on Track Forward Looking Dashboard focused on Counterrmeasures 11

12. © 3M 2011. All Rights Reserved. 3M Canada X-Matrix 12 Alignment & Prioritization Alignment & Prioritization 12 In what follows, the team does a nice job of breaking the X-Matrix into pieces to highlight the components --- Slides should include your VITAL FEW, and some sequence to address the FOUR sides of the X-Matrix -- -this will describe how you will “Operationalize” your Strategic Plan and execute in a disciplined way. NOTE: BEP Documents integrated to show Execution rigor

13. © 3M 2011. All Rights Reserved. Alignment and Prioritization 13

14. © 3M 2011. All Rights Reserved. Alignment and Prioritization 14

15. © 3M 2011. All Rights Reserved. Alignment and Prioritization 15

16. © 3M 2011. All Rights Reserved. Alignment and Prioritization 16 Business Conduct, Regulatory Compliance and World Class Safety Execute Sales Excellence Plan Achieve New Product Development Milestones and Commercialization Success Execute Brand Reputation Plan Develop and Execute Interactive Marketing Plan Marketing Intelligence and Competency Development Plan Competitor Intelligence and Analytics Strategic Business Development Plan Develop and Execute Human Capital Plan & Align Resources to Priorities Employee Engagement and Performance Culture Plan ERP Business Transformation Implementation Deliver LSS and Value Stream Project Targets Business Conduct, Regulatory Compliance and World Class Safety Growth from Strategic Accounts at Financial and Operational Milestones 16

17. © 3M 2011. All Rights Reserved. Alignment and Prioritization Clear Alignment Throughout the Organization 3M Canada X Matrix 2011 A Leader in Prioritized Markets SS&PS X Matrix 2011 A Leader in Prioritized Safety and Security Categories BCSD X Matrix 2011 Become the Leader in Facility Protection and Maintenance 17

18. © 3M 2011. All Rights Reserved. Financial Update 2010 Performance Canadian Economic Landscape Looking Forward to 2011 18

19. © 3M 2011. All Rights Reserved. Business Profile Good Balance of GDP vs IPI Based Businesses 2011 Domestic Sales – $820 LCG = 4.4% 2011 Domestic Sales – $820 LCG = 4.4% 2011 Income – $210 % Change = 4.9% (12% ex pension) 2011 Income – $210 % Change = 4.9% (12% ex pension) 19

20. © 3M 2011. All Rights Reserved. Summary Scorecard – 2010 Sales +$43.6m LCG +1.3% GM% +0.6% Income +$17.6m Inventory A/R 10.1 turn Indirect Prod’y 4.5% LSS Cost 133% D/E Inv’y 3.5% Service 91.1% A/R % Current 94.5% 11.1 turn Vs OpPlan Sku Red’n -61% Line Fill Compliance From Baseline 20

21. © 3M 2011. All Rights Reserved. Local Currency vs the Economy Economics from Global Insight – Dec 10 update 3M Canada Continues to Outpace the Economy 21

22. © 3M 2011. All Rights Reserved. Continued downgrading of estimates Consumer sentiment remains low, but upside from last quarter estimates S-T Interest rates starting to inch up FX remains fairly stable, roughly par to USD Source: TD Economics Flatter Recovery than Expected…but Stable The External Environment – Looking Forward 22

23. © 3M 2011. All Rights Reserved. Summary  Continued trend of delivering commitments – the right way  Growth curve positive vs Canadian economy  Raw material costs and availability remain a key challenge  Flexible plans and portfolio help deliver income in the face of growth challenges  The RIGHT inventory and pricing will be critical to delivering 2011 commitments 131 20:00 3M Canada 23

24. © 3M 2011. All Rights Reserved. 3M Canada 2011 Operational Imperatives TTIs 24 Achieve New Product Development Milestones and Commercialization Success NOTE: Showing PARTS of the X-Matrix on a Slide to indicate Top Priorities for Subsidiary

25. © 3M 2011. All Rights Reserved. 3M Canada NPI 25 2011 - A3 Action Plan Highlights  NPI Utilization  Hopper  NPI Milestones  Total NPI Post Launch Sales  Top Locally Developed New Product Sales  Top Imported New Product Sales  NPVI%  ADVI% This slide and several others that follow show the A3 first – but just as a background – NOT to be spoken to in detail – the KEY is to highlight the Key ACTION PLAN components on this slide. This quickly shows HOW you plan to achieve the Improvement Priority/Target. NOTE: BEP Documents integrated to show Execution Focus Going through the entire A3 would represent too much detail for an executive review

26. © 3M 2011. All Rights Reserved. Alignment and Prioritization Business Conduct, Regulatory Compliance and World Class Safety 26

27. © 3M 2011. All Rights Reserved. Biz Conduct, Regulatory Compliance and World Class Safety 27  Business Conduct —Effective Business Conduct Investigation Process and Decision-Making — Training Program (Anti-Bribery/FCPA) —Regulatory Compliance  EHS Management Systems  Financial  Acquisitions/Integrations —Improve Communication Tree re: Acquisitions —Improve Regulatory Due Diligence —Create EHS audit process  Business Conduct —Effective Business Conduct Investigation Process and Decision-Making — Training Program (Anti-Bribery/FCPA) —Regulatory Compliance  EHS Management Systems  Financial  Acquisitions/Integrations —Improve Communication Tree re: Acquisitions —Improve Regulatory Due Diligence —Create EHS audit process 2011 - A3 Action Plan Highlights

28. © 3M 2011. All Rights Reserved. Alignment and Prioritization 28 Growth from Strategic Accounts at Financial and Operational Milestones 28

29. © 3M 2011. All Rights Reserved. Strategic Accounts Staples Canadian Tire WalMart RIM Bombardier Tim Hortons Cardinal Health Revera Syncrude AGI Trans Canada Federal Government 29

30. © 3M 2011. All Rights Reserved. A Total Company Approach to A Key Account 30

31. © 3M 2011. All Rights Reserved. 31 Canadian Tire - The Evolution of an A3 June 2010 November 2010 January 2011

32. © 3M 2011. All Rights Reserved. Strategic Account – Canadian Tire January 2011 2011 - A3 Action Plan Highlights Financial MetricsCustomer P&L Product Portfolio Pricing Strategy NPI3M Hockey Program Marketing ExcellenceBrand – Program Execution (Bondo®, Meguiars®, Command ™) E-Marketing Pyramid Strategy Sales ExcellenceSales Agent Implementation Driving Customer Engagement Participation in CTC Corporate Initiatives Operational ExcellenceSupply Chain Optimization Service Improvement 32

33. © 3M 2011. All Rights Reserved. 2010 Sales - $5.5 M 2011 Plan - $6.2 M Canadian Tire and Meguiar’s – A Grassroots Partnership  Acquisition Dec. 2009 - grew sales 8% in first year  Grassroots Strategy to strengthen brand integrity – 100+ car shows in 2011  Maintaining clear divide between Meguiars and 3M Brand positive for CTC 33

34. © 3M 2011. All Rights Reserved. Alignment and Prioritization 34 Develop and Execute Human Capital Plan & Align Resources and Priorities Employee Engagement and Performance Culture Plan 34

35. © 3M 2011. All Rights Reserved. Human Capital Plan 35 2011 - A3 Action Plan Highlights  Performance Management/Skill Alignment  Complete HCP for all Big Bs and Staff Groups —Identify gaps and prioritize based on criticality —Identify actions & investment for gaps —Create succession plans for all strategic roles  Accelerated Development of HiPos Company wide Human Resource Allocation based on Priorities

36. © 3M 2011. All Rights Reserved. Human Capital Planning in Action  Detailed development plans with accountability for all HiPo employees, reviewed bi-annually.  Complete review of all Business/Staff Groups bi-annually to review performance issues and strategic fit.  Process to move HiPo to Strategic roles for development  Process to move employees to align skills to non strategic roles.  Strategic external hires to fill Corporate HCP Gaps.. 36

37. © 3M 2011. All Rights Reserved. Employee Engagement A3 37 2011 - A3 Action Plan Highlights  Develop EE Strategy  Communication  Career Progression  Reward and Recognition  Alignment  Leadership  Resources

38. © 3M 2011. All Rights Reserved. Makes Courageous Decisions Employee Engagement 38 Career Progression - Leadership Attributes Communication Rewards and Recognition – We Are 3M Lives 3M Values Leads with Energy, Passion & Urgency Thinks from the Outside Develops, Teaches and EngagesDrives Innovation and Growth

39. © 3M 2011. All Rights Reserved. 2011 LSS Targets 3M Canada 2010 LSS Results CashCostGrowthOI 3804138561240726263 39

40. © 3M 2011. All Rights Reserved. 3M Canada  Market Focus  Customer Focus  Prioritization  Alignment and Resource Allocation  A competitive organization 40 Deliver Operationally/Manage Strategically