Rosa Miller Presentation

© 3M 2008. All Rights Reserved.

Latin AmericaRosa MillerVice President

Investors PresentationSeptember 9, 2008

© 3M 2008. All Rights Reserved.

Sustaining Credibility & Profitable Growth

2008 3M Investor Conference

5 © 3M 2008. All Rights Reserved. 2008 3M Investor Conference

Huge Opportunity… In Our Backyard

Latin America Area

Well-educated middle class

21,076,501 square kilometers578 million people well-related to the U.S.

GDP growth of 4.2%Literacy rate of 89% Spanish, Portuguese, English primary languages

Improved political, social and economic stability

Strong and competitive manufacturing base in Brazil and Mexico

Brand drives people’s behavior


Huge Opportunity… In Our Backyard

Latin America Area

Well-educated middle class

21,076,501 square kilometers578 million people well-related to the U.S.

GDP growth of 4.2%Literacy rate of 89% Spanish, Portuguese, English primary languages

Improved political, social and economic stability

Strong and competitive manufacturing base in Brazil and Mexico

Brand drives people’s behavior


Latin America Area Key Economics

Economic OutlookStrong historical GDP growth performance

Domestic demand remains generally vigorous to drive growth in the range of 4+ percent in 2008

Impact of exports and US economy(*) Sources: IMF, National Authorities, Global Insight, Citigroup Global Markets and Prudential Economical Outlook


Latin America Area Key Economics

Changing the LandscapeUnemployment improvement Inflation dynamicsReal exchange rates appreciationRaising productivity Political, economical and monetary policies(*) Sources: IMF, National Authorities, Global Insight, Citigroup Global Markets and Prudential Economical Outlook


3M Has A Long History in Latin America

Argentina

Mexico

Puerto Rico

Colombia

Peru

Venezuela

Panama

Costa Rica

Dominican Republic

Chile

Ecuador

Brazil

…and We Continue to Create a Successful Future …and We Continue to Create a Successful Future

1960 1970 19801940


3M Latin America Recent Performance

3X GDP/IPI Growth3X GDP/IPI Growth

$1.0

$1.7

$1.4$1.3

$1.2$1.0

$0.9

2003 2004 2005 2006 2007 2008 1st Half

$273

$428

$351$305$287

$259$234

Revenue ($B) Operating Income ($M)

CAGR 14%CAGR 14% CAGR 13%CAGR 13%

2002 2003 2004 2005 2006 2007 2008 1st Half

2002

* Excluding pharma business and special items.


3M Latin America Recent Performance

3X GDP/IPI Growth3X GDP/IPI Growth

Doubled the size in the last 5 years

Bigger than Optical Business, China, India and Central Eastern Europe

3M Brazil larger than 3M Italy and 3M FranceGrowth Drivers: consumer and office, oil and gas, manufacturing, mining, agriculture and construction

Creative, talented and passionate employees


3M Latin America Strategies

Growing the core

Investing in the future

Improving supply chain speed and efficiency

Penetrating new markets

Making talent a strategic priority

CENTRAL AMERICA:PANAMA PACIFICO as a new company


Market Focus: oil and gas, mining, construction

Localization: Brazil, Mexico, Panama Pacifico

Penetration in Brazil and Mexico

Targeted M&A

Key account management

Management Innovation: people & talent

3M Latin America Growth Top Opportunities


StrategicThrust

Brand & ReputationBuilding

R&D & SupplyChain Localization

The Four Cornerstones of the International Growth Plan

InternationalGrowth

Build NewBusinesses

ComplementaryAcquisitions

Grow theCurrent Core

Human CapitalPlanning

Portfolio Management& Geographic

Expansion

Corporate Strategies and International Cornerstones Totally AlignedCorporate Strategies and International Cornerstones Totally Aligned

Strategy Across Four Primary Drivers

InternationalGrowth


Building Global and Local Strength

Four Cornerstones of LocalizationPortfolio

Management & Geographic Expansion

Brand and Reputation

Building

R&D and Supply Chain Localization

Human Capital Planning

Globalization






Building



Globalization

3M Latin America Local Market Penetration

Priority Markets Critical to Deliver the GrowthPriority Markets Critical to Deliver the Growth

Consumer

Health Care

Food & Beverage

ConstructionTransportation

Oil & Gas

Government

Mining

17


3M Latin America Key Customers

Key Accounts are a Significant Part of Latin America Growth

Key Accounts are a Significant Part of Latin America Growth






Building



Globalization


$123

$166

$198

$232

$290

2004 2005 2006 2007 2008E

3M Latin America Consumer & Office Business 5 Years Sales Growth

CAGR 24 %CAGR 24 %

Double the Size in 5 Years… The Power of the BrandDouble the Size in 5 Years… The Power of the Brand

$199

$233

($M)


3M Latin America 2004-2008Consumer and Office Growth Drivers

Brand building through advertising/merchandising spending increase

Successful commercialization of new-to-the-market products

Mass retailers’ relationship excellence

Marketing innovation: in-store execution

®


Scotch-Brite™ Twister


Post-it® Twister

Cristal


Building the Brand… Cero Rayas

Opportunity:Large scouring market size: Create a new product category to penetrate non-scratch scrub sponge segment

Expected Results:Upgrade the scrub laminate market and increase differentiation over competition


Costa Rica – Building a New Category

36% Incr.27% Incr.

Embryonic Early Growth Growth Mature Aging

Lea

ders

hip

Stro

ngFa

vora

ble

Tena

ble

Wea

k

Gross Margin % 50%-60% 60%-70%

Com

petit

ive

Posit

ion

Aqua Pad15% sales increase

Urethane

49% salesincrease

Cero-Rayas400%

sales increase

Local Markets, Local Teams … Full LocalizationLocal Markets, Local Teams … Full Localization25


Cero Rayas Twister


Strengthen an emotional bond between the

consumer & the brand by adopting their lifestyle

through a usage experience

IntegratedMarketing Campaign

… and Continue to Expand the New Category… and Continue to Expand the New Category






Building



Globalization

3M Latin America R&D and Manufacturing Key Sites

MEXICO: SANTA FE, SAN LUIS POTOSI,MONTERREY (*)

BRAZIL: SUMARE, ITAPETININGA, RIBEIRAO

PRETO, MAIRINQUE, MANAUS, SAO JOSE DO

RIO PRETO

(*) Mexican Maquilas not Included

CENTRAL AMERICA:PANAMA PACIFICO as a new company

3M Brazil Laboratory R & D Capacities• Abrasives• Adhesives• Films• Filtration• Non Woven• Polymer Processing• Precision Processing• Molding• Surface Modification• Flexible Converting & Packaging

• Acoustic Control• Particle & Dispersion Processing• Reclosable Fastening

E tEtha nol

Pr oc es s ing

PeP re d ic tiv e

E n gi n ee ri n g& M o de li ng

PoP or ous

Mat er ial s &M em bra nes

PmPo ly m e r M e ltPr oc es s ing

PrPr ocess

D esign &C ontr ol

PdP ar ticle &

D ispe rs ionPr oce ss ing

AdAdhe siv es

AbAbr a siv e s

I s In tegr at edSyst emsD esign

LmLi ghtM gmt

DdDr ug

Del iver y

DmD ispl ayMa ter ial s

AcAc oustics

CpChem icalPow er

Sou rces

VpV acuum

Pr ocessi ng

PpP re c ision

Proc e ss ing

MeM etalMat r ix

Co mposi tes

SuSurf a ce

Modific ation

DoDen tal &

Or th odont icMa ter ial s

IrIm m une

R esponse M odi fi ers

RfRe closa bleFas te ners

RpR adiat ionPr ocessing

NmNon wov e nM a te ria ls

SmS pecial tyM at eri als

AsAppl icat ionSof tw are

FiFilm s

MdM edi cal

Dat aM gm t

PcP reci sionCoa ti ng

CeC era mi cs

EpElect r onic

P ackagi ng

ImImag ing

MoMolding

WoWoun dM gmt

FcFle x ible

Conv e rting& Pa c k a ging

FoFibe r

O pti cs

IpIn ks &

Pigm ent s

AmA dvancedMa ter ial s

BiBi otech

NtNano

Techn ology

MiMicr obia lDet ect ion& Cont r ol

MrM icr o-

r epli cati on

VoVe ge ta l

O ilChe m is try

FlFl uor o-

m at eri als

FsFiltra tion,

Se pa ra tion,Purific a tion

• Vegetal Oil Chemistry• Ethanol Processing29


3

3M BrazilHealth Care Business Review

Confi denti alApr. 2008

3M Latin America Acquisitions

Higher organic growth results from more frequent

acquisitions

Base

Growth

Acquisitions

AbzilAbzil –– BrazilBrazil• Dental products

•• Brasilian orthodontic center of excellence

MedisorMedisor –– ChileChile•Medical products

FiorentinaFiorentina -- ArgentinaArgentina•Consumer market – innovative branding•High-quality and differentiated-designed products

Pomp Pomp –– BrazilBrazil•Safety market

re-usable ear plug productseyewear & barrier creams

Adding Leading Brand Position in Local MarketsAdding Leading Brand

Position in Local Markets






Building



Globalization


3M Latin America Human Capital Planning

Robust systems/processes for recruiting, developing & retaining talented employeesFocus on talent management at all levelsContinue to re-allocate resources to high growth markets

Employees….The Sustainable Competitive AdvantageEmployees….The Sustainable Competitive Advantage


OI per Employee

$57

$69

$87

'06 '07 '08 Est

Sales per Employee

$226

$260

$302

'06 '07 '08 Est

3M Latin America Productivity Performance

Competitive Advantage Model Driving Sustainable GrowthCompetitive Advantage Model Driving Sustainable Growth

$226$260

$302

$57$69

$87

‘06 ‘07 ’08 est ‘06 ‘07 ’08 est

Sales per Employee ($000) OI per Employee ($000)

CAGR 16 %CAGR 16 % CAGR 24 %CAGR 24 %


3M Latin America Summary

Credible and sustainable performance

Doubled the size in the last 5 years

Profitable and healthy growth

3M portfolio well-aligned to Latin America market opportunities

Outpace area GDP/IPI growth

Targeted investment to support local growth

Talented, creative, entrepreneurial and professional employees

Again, Double the Size in the Next 5 YearsAgain, Double the Size in the Next 5 Years

Rosa Miller Presentation

Economy & Finance

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