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EFFICIENTGROWTH
3M Industrial Business Group
Actively managing our portfolio to prioritize investments in
organic growth and acquisitions
Leveraging our four Fundamental Strengths to maximize value
Utilizing customer insights to deliver differentiated, high impact
new products
Transforming our business to drive a competitive advantage
for our customers and 3M
Strong growth in key markets
Increased operating margins
100%+ free cash flow conversion
M&A that is greater than the sum of
the parts
Restructured to increase efficiency
Controlling the controllable
2015 Performance
Strong foundation to winning in the industrial marketplace
Agenda
EFFICIENTGROWTH
Overview of Industrial Business Group
Leveraging our Fundamental Strengths
Utilizing our Three Key Levers
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Industrial Business Group2015 Sales $10.3B; Operating Income Margin 21.9%
Abrasive Systems
$1.4B
Automotive Aftermarket
$1.5B
Tapes and Adhesives
$3.9B
Filtration
$0.7B
Aerospace & Commercial Transportation
$0.3B
Automotive
$1.4B
Advanced Materials
$1.1B
*Refer to 3M’s Form 8-K dated March 15, 2016 for discussion of a product line reporting change involving the Electronics and Energy business segment and the Industrial business segment
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AutomotiveGeneral
ManufacturingAutomotiveAftermarket Construction
Metal Fabrication Filtration
3M EstimatesAddressable Size
5-yr CAGR$40-45B
0-2%$25-30B
1-3%$15-20B
1-3%$15-20B
1-3%$10-15B
1-3%$10-15B
5-7%
Industrial Business Group market segment overview
Electronics AerospaceCommercial
Transportation Oil & Gas Defense Other
3M EstimatesAddressable Size
5-yr CAGR$3-5B3-5%
$2-3B2-4%
$2-3B1-3%
$1-2B 1-3%
$0.5-1B0-2%
Appliances
Bus and Rail
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Thinsulate™ acoustic
insulation
Glass bubbles
Acrylic foam tapes
Winning with automotive customers
Fuel efficiency
Lightweighting
Electrification
Aligned to
global OEMs
Designed-in solutions
Support tier suppliers
Acoustic control
Lightweight assembly
Aluminum solutions
Automotive OEM business consistently posting organic growth above market build rates
Display films
Bonding and optics
Electronic materials
Market trendsCustomer First focus
Customer Inspired Innovation
High-value 3M products
Future new products
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Market trendsCustomer First focus
Customer Inspired Innovation
High-value 3M products
Future new products
Winning with filtration customers
Higher purity
requirements
Process efficiency
Global accounts
Customer process-
inspired innovation
Single-use products
Bioprocess hybrid
purifiers
Advanced membranes
Gas transfer
Ultra-filtration
solutions
Micro-filtration
Ultra-filtration
Smart filters
Note: Membrana represents acquisition of Polypore Separations Media Business
Strong 3M Purification growth; Membrana acquisition providing exciting growth synergies
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Investing in new technology platforms accelerates growth
Life sciences
Hemodialysis
therapy
Blood
oxygenation
Industrial
Gas transfer
technology
Water
treatment
Hollow fiber membranes
Flat sheet membranes
Su
Pp
Pm
Am
Identified synergies with
several 3M technology
platforms, including:
Advanced Materials
Polymer Processing
Precision Processing
Surface Modification
Ultra-clean, low-fouling membranes
Low-cost super hydrophobic gas contactors
High-flux nano-filtration
+ New product possibilities
Acquisition exceeding performance expectations
Ultrafiltration technologies
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Direct customer engagement
Aligned around global customers
Sustainable growth over build rates
Industrial Market Center
Specialized end-user engagement
Extending reach through digital and eCommerce
Global go-to-market models focusing on Customer FirstProduct Sales
OEM Direct | Tiers | Converter | Distributor | eCommerce
Sa
les
pe
r c
ust
om
er
Number of customers
Customer-Inspired Innovation Insights 2 Innovation (i2i)
Designed in Consumables
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3M Fundamental Strengths
Technology Manufacturing Global Capabilities Brand
Leveraging these assets creates value; strengthening them ensures our future
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How our technology provides a competitive advantageDeploying multiple 3M technology platforms across businesses
Precision shaped grain
Processing ApplicationsMaterials Capabilities
WeAccelerated Weathering
PrProcess Design & Control
InInspection & Measurement
AnAnalytical
SuSurface
Modification
RpRadiation
Processing
PpPrecision
Processing
PmPolymer
Processing
PdParticle & Dispersion Processing
MrMicro-
replication
MoMolding
AcAcoustic Control
DiDisplay
MfMechanical Fasteners
LmLight
Management
EcEnergy
Components
FsFiltration,
Separation, Purification
FiFilms
FlFluoro-
materials
NtNano-
technology
SmSpecialty Materials
PoPorous
Materials & Membranes
NwNonwovenMaterials
AdAdhesives
AmAdvancedMaterials
CeCeramics
CoAdvanced
Composites
AbAbrasives
SeSensors
IsIntegrated systems &
design
FcFlexible
converting & packaging
EsElectronics &
software
AsApplication
software
VpVapor
processing
PePredictive
engineering & modeling
DdDrug
delivery
BiBiotech
MdMedical data management
WoWound
management
MiMicrobial detection
and control
TtTrack and
trace
OpOpto-
electronics
FeFlexible
electronics
ImImaging
EmElectronicmaterials
DoDental &
orthodontic materials
Non-wovens
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How manufacturing provides a competitive advantageUtilizing inventions and optimized global operations
Lean Six SigmaGlobal supply chainManufacturing technology
Lean value streams
Productivity improvement
Business Transformation
Centers of Expertise (COEs)
Footprint optimization
End-to-end business
planning
Precision processing
Micro-replication
Particle & dispersion
processing
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Utilizing our three key levers to drive value
Portfolio Management
Business Transformation
Investing in Innovation
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Building an industrial portfolio to consistently outperform our markets
Prioritizing organic investments
Accretive growth rates
Greatest net present value
Improve return on invested capital
Shaping M&A
Leverage Fundamental Strengths
Accretive market growth
Add new industrial platforms
Optimizing value
More efficient business models
Reallocate resources
Selective divestiture
Market & GeographicSelection
Fundamental Strengths
Str
ate
gic
Att
rac
tiv
en
ess
Financial Attractiveness
Portfolio of Businesses
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Focusing on top priority geographies
Developed
Developing
West Europe
New product commercialization
Center of Expertise (COE)
Business Transformation
United States
Industrial Market Center
End-user engagement
Leadership in B2B digital
China
Domestic markets
New channel development
End-user engagement
Mexico
Customers increasing manufacturing
Alignment to automotive production
North American customers
and channel
Customer engagement drives strategy across all markets
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Developing new products from customer insightsEngaging customers in this way drives innovation and helps to prioritize our best ideas
Insights to Innovation (i2i) for consumable productsCustomer-Inspired Innovation for designed-in products
Low VOC spray adhesive products
Meguiar’s® new auto care line
Trizact™ abrasive solutions enabling aluminum in automotive
VHB™ Tape allows bonding of dissimilar materials in appliances
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Accelerating high impact growth opportunitiesDeploying Cubitron™ II across our abrasives offering
Innovating across our broad adhesives offering
Leveraging Thinsulate™ to bring best-in-class acoustic solutions
Bonded
Precision grinding
$100M+ in first-year sales Delivering double-digit growth Accelerated growth to > 2.5x industry
Pe
rfo
rma
nc
e
Technology
Pressure-sensitive adhesives
Contact adhesives
Hot meltsAcrylic foam tapes
Curing hot melts
Adhesive sealants
Structural adhesives
Precision-shaped grain
Coated
On track to deliver $600M of cumulative sales growth
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Business Transformation
Starts and ends with the customer
Service
Enhance competitive advantage
Provide customers with new
capabilities
Deliver to customer Key Performance
Indicators (KPIs)
Engaging customers and measuring more than 20 KPIs
Improved efficiency and working capital
Leveraging Lean Six Sigma to transform our business processes
Business Processes
Simplify
Standardize
Enhance business communications
End-to-end visibility
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Industrial Business Group value proposition
EFFICIENT
GROWTH
MarketsOperating in highly attractive industrial markets, providing…
accelerated growth
CustomersLeveraging industry leading platforms to solve customer problems, ensuring…
sustainable differentiation
Business ModelsUtilizing global leading go-to-market models, strengthening our…
competitive advantage
Fundamental Strengths
Deploying 3M Technology, Manufacturing, Global Capabilities, and Brand, creating…
differentiated value
Three Key LeversUtilizing Portfolio Management, Investing in Innovation, and Business Transformation as…
performance multipliers