3M Introduction

3M is fundamentally a science-based company. We produce thousands of imaginative products, and we're a leader in scores of markets - from health care and highway safety to office products and abrasives and adhesives. Our success begins with our ability to apply our technologies - often in combination - to an endless array of real-world customer needs. Of course, all of this is made possible by the people of 3M and their singular commitment to make life easier and better for people around the world.

Our Values y Act with uncompromising honesty and integrity in everything we do. y y y y y
Satisfy our customers with innovative technology and superior quality, value and service. Provide our investors an attractive return through sustainable, global growth. Respect our social and physical environment around the world. Value and develop our employees' diverse talents, initiative and leadership. Earn the admiration of all those associated with 3M worldwide.

3M at a Glance (Year-end 2010) y Global sales: $27 billion. y y y y

International (non-US) sales: $17.5 billion (65 percent of company's total). Operations in more than 65 countries. 3M products sold in nearly 200 countries. 80,000 employees globally.

Corporate Responsibility
Corporate responsibility is now high on national and international agendas. Yet 3M has long held the belief that reputation depends not solely on our financial performance but also on the way we run our business. In 1975, 3M was one of the first major manufacturing companies actively to address environmental issues and, as with our drive for innovation, we involved employees through our benchmark programme Pollution Prevention Pays. We believe we have a sound record of achievement in corporate responsibility, but continually strive to improve our performance and address the ongoing challenges and opportunities. We are committed to sustainable development through a proactive approach to environmental protection, social responsibility and strong economic progress.

Vision
3M's commitment is to actively contribute to sustainable development through environmental protection, social responsibility and economic progress. To us, that means meeting the needs of society today, while respecting the ability of future generations to meet their needs.

Everything we do is underpinned by our Corporate Values and our day-to-day actions are guided by our Business Conduct Policies.

Our Sustainability Strategic Principles

3M's strategies for sustainability encompass the pursuit of customer satisfaction and commercial success within a framework of environmental, social and economic values.

y y y

Economic Success: Build lasting customer relationships by developing differentiated, practical and ingenious solutions to their sustainability challenges. Environmental Stewardship: Provide practical and effective solutions and products to address environmental challenges for ourselves and our customers. Social Responsibility: Engage key stakeholders in dialogue and take action to improve 3M's sustainability performance.

Financial Information
3M is fundamentally a science-based company. We produce thousands of imaginative products, and we're a leader in scores of markets - from health care and highway safety to office products and abrasives and adhesives. Our success begins with our ability to apply our technologies - often in combination - to an endless array of real-world customer needs. Of course, all of this is made possible by the people of 3M and their singular commitment to make life easier and better for people around the world. We leverage these competencies to create innovative solutions for our customers and to also provide investors with attractive long-term returns.

3M businesses:
Consumer and Office Business

Supplying an array of innovative products that keep homes cleaner, offices organized and buildings wellmaintained, our consumer and office business is home to some of the world s best-known brands, including Post-it, Scotch, Scotch-Brite, Filtrete , O-Cel-O , Nexcare , and Command .
Display and Graphics Business

Drawing on 3M s powerful technology platforms, we provide products display enhancement films, reflective materials, eye-catching graphics, projection systems and more that people around the world rely on every day.
Electro and Communications Business

We turn 3M technology into solutions for customers in electrical, electronics and communications markets around the world. We contribute to reliable sources of electrical power, high-performance electronic devices, and speedy and dependable telecommunications network.
Health Care Business

Supplying innovative and reliable products that help health care professionals improve the quality of care, we are a global leader in medical and oral care products, and drug delivery and health information systems.
Industrial and Transportation Business

We provide thousands of innovative products including tapes, abrasives, adhesives, specialty materials and filtration systems to dozens of diverse markets from automotive to aerospace to renewable energy to electronics.
Safety, Security and Protection Services Business

Our products personal protective equipment, safety and security products, track and trace solutions and more increase the safety, security and productivity of people, facilities and systems around the world. We are also a leading supplier of roofing granules for asphalt shingles. Strengths y y y Strong research and development capability Strong growth in revenues and profits Diversified businesses - industrial and transportation, healthcare, display and graphics, consumer and office, safety, security and protection services, and electro and communications. Diversified geographic presence Solid revenue & profit growth

y y

Weaknesses
y y y y Low inventory turnover ratio which impacts inventories and margins Weaker than expected performance in key segments Not as nimble as smaller, more focused competitors Lack of synergy between business unit

Opportunities
y y y y y Acquisitions in key operating areas Continued global expansion Rising healthcare spending in the US Security concerns with weaker economy in the US could present opportunities for 3M's security business Markets similar to areas it is currently in, such as renewable energy, water infrastructure, architecture, and lighting

Threats
y y Rising commodity and energy prices Exchange rates fluctuations

y y

Environmental regulations Consumer preferences and competitve conditions