Jean Lobey, Executive Vice President, Safety, Security and Protection Services

© 3M 2007. All Rights Reserved.

Jean LobeyExecutive Vice President

3M Safety, Security and Protection Services Business

October 9, 2007

2© 3M 2007 2007 3M Investor Conference

Agenda

• Our markets and businesses

• Driving growth for the future

• Summary


Strong Sales And Operating Income Growth*

U.S. 40%

LAC 12% APAC 19%

Europe 29%

$2,152

$1,301 $1,557

$2,663$2,320

2004 2005 2006 1H06 1H07

$449 $513 $559

$297 $350

2004 2005 2006 1H06 1H07

Sales

Operating Income

LC % 8.5% 6.8% 13.7% 15.9%

OI % 20.9% 22.1% 21.0% 22.5%

+11%+14% +9%

($ millions)

+12%+8%

+15%

+20%

+18%

(YOY % Change)

2006 Sales by Geography

Averaged 14% total LC growth over the last six quarters

Significant investment in capex and acquisitions to support growth plan

Leading provider of technology and solutions into the global safety and security markets

Highlights

1

2

3

22.8%

12.2%

*Excludes special items in all periods


SS&PS Markets

Protect and enhance facilities

Authenticate, secure and protect, people,

materials and information

Personal safety solutions at work

and home

ProtectionSecuritySafety

$30 Billion Market $12 Billion Market $20 Billion Market


Industrial MineralsCorrosion ProtectionSecurity Systems

Building & Commercial ServicesOccupational Health & Environmental Safety

SS&PS Is Composed Of Five Divisions…

• Personal protection equipment: respirators, hearing protection, visibility, Thinsulate®

Sales growth: 8% to 12%

• Industrial hygiene, cleaning and window glazing products – Scotch Brite®, Prestige


• Border and civil security products – passports, passport readers, secure materials


• Corrosion protection products –fusion bonded epoxy powders, liquid epoxies, functional coatings

Sales growth: >20%

• Roofing granules, Color Quartz® for swimming pools



…And Two Organizations Focused On Emerging Opportunities

Track & Trace Solutions EBO Global Mining EBO

• Library systems, locating and marking equipment, warehouse management software, patient safety solutions

• Bringing new technologies and complete solutions to an emerging market

Sales growth: >20%

• Market center focused on mining and mineral extraction customers

• Selling the Big 3M – product lines from across the company

Sales growth: >15%

Addressing entirely new market opportunities


Multiple Forces Are Driving Strong Growth In Target Markets

Regulatory pressure

Need for integrated safety

solutions & “smart safety”

X-factors – weather, terrorism,pandemic disease

Need for productivity

Movement of industrial manufacturing to developing economies

Consolidation among industrial companies

Strong growth in safety, security, & protection markets


Our Dream: A $10 Billion Business

ILLUSTRATIVE

Cons

umer

sGo

vern

men

ts

Cust

omer

s

Busin

esse

s

Protection - AssetsSecurity - ProcessesSafety - People

CPP

IMPD

B&CSD

SSD

T&T EBOT&T EBO

• The global leader in Safety, Security, and Protection products across multiple market centers and customers groups

OH&ESD

T&T

Mining


Our Dream In Safety: Multiple Category Leadership

Addressing locally

$1.9 – $2.2$7.0 - $8.5$1.0 - $1.2$2.0 – $2.2$0.9 -$1.2$3.5 - $4.0

Visibility & Protective Clothing

Hand, Foot & BodyFallHead, Eye &

FaceHearingRespiratory

Current leadershipBuilding towards leadershipWhite space opportunity

Personal Protective Equipment Markets$ Billions

We will be a leader in multiple PPE categories


AuthenticationSystems

IssuanceSystems

Our Dream In Security: Leading Solution Provider To Multiple Verticals

Secure Materials

Complete Secure Document Solution Markets• Border control• Law enforcement• Municipal transactions• Banking• Hospitality

Current status:

Leading positionDeveloping positionDeveloping market

We will provide a complete solution across multiple verticals


Our Dream In Protection: Driving Innovation Into Multiple Market Segments

We will continue to drive innovative new solutions into the market

Food Services Construction

Building ServicesMining Hospitals

Military

Industrial Government3M Technology


Agenda



• Summary


Last Year We Articulated 4 Key Strategies

• T&T EBO• Mining market center EBO

EBO & special initiatives

• Emerging market channel/sales coverage• Optimize supply chain & regional manufacturing• Local/regional product coverage & development

International

• Border and civil security• Water market

Adjacencies/M&A

• Drive new product introductions• Assure the Maintenance Free Respirator franchise• Eliminate capacity constraints

Core growth




EBO & special initiatives


International


Adjacencies/M&A


Core growth


Core Growth – New Product Growth Is Accelerating

% New Product Sales200719%

200823%

201230%

New product sales$ Millions

• Ultra Prestige Window Film• Digital Wireless Comm.• Welding Helmet• RFID-enabled Smart Shelves• Reengineered Copper

Granules• Durable Floor Finish• New CBRN• Cool Roof Granules• EFR 7700

• Swordfish (EFR)• Mistral (PAPR)• Sentinel (MFR)• Hospital Specimen Tracking• Secure Supply Chain• Grease Duct Fire Protection• Mobile Handheld Passport

Reader• Stay-Clean Granules

2007

2008

200412%

CoreAdjacentIntl’EBO’s


Breakthrough New Product – NBC Protection Equipment

• Currently, the only loose fitting NIOSH approved system

• Versatile communications systems included• Robust materials that withstand

decontamination showers

NBC Protection System – provides complete protection from Chemical, Biological, Radiation, and Nuclear hazards; NIOSH approved for First Responders

AdvantagesDescription



• Soft-silicone face seal for greater durability in harsh environments

• Quarter turn cartridge connection for easy attachment and ability to change cartridges without removing the respirator

• “Cool-flow” exhalation valve design for easier breathing with less resistance

The latest entry into 3M’s single cartridge EFR product line with a face seal specifically designed to fit face sizes throughout the Asia Pacific region


Breakthrough New Product – Elastomeric FacepieceRespirator (EFR) 7700

Product Pict. 1

Product Pict. 2



Entry Level

Extending The Maintenance Free Respirator Franchise

San HueiGangkai

JSP

Shanghai Dasheng

KSN


Mid Range

Unapproved

High Value

Strong positionIntermediate positionNot participating


Breakthrough New Product – Speedglass SLCoreAdjacentIntl’EBO’s

• Auto darkening lens – eliminates need to remove helmet between welds

• Ultra-Lightweight design – only 13 oz, reduces fatigue

• 4 sensitivity levels – enables more customized use

Speedglass SL Welding Helmet – auto darkening welding vision protection



Breakthrough New Product – Prestige Series Window Film

• Fade Control - blocks 99.9% of the sun’s harmful rays

• Energy Savings - reduced energy costs, blocks up to 66% of heat coming through the glass

• Aesthetics and Glare Control - significantly reduces glare

3M™ Prestige Series Window Film - a selection of clear, metal-free films that deliver superior protection from UV and performance never before offered in a clear window film




Preparing For The Worst – Safety And Security Window Films

• Bomb Blasts – offers protection against flying glass caused by explosions

• Severe Weather and Hurricanes – hold glass together preventing flying glass from harming inhabitants, keeps out wind and rain.

• Street Crime – Deters smash-and-grab thieves, prevents intruders from gaining access

3M™ Safety and Security Window Films –a family of products that help you prepare for the worst




Breakthrough New Product – Digital Communication

• Superior Sound Clarity helps to optimize communications with the customer

• Smart Technology provides self diagnostics to improve reliability

• Fully Digital simplifies user controls and enables network support and services

• Enhanced efficiency through automation that improves drive-thru performance

Wireless Communication System Model XT-1 is a fully digital intercom system for the Quick Serve Restaurant (QSR) industry and Drive-thru Applications; 3M is a leader in this space




Breakthrough New Product – Cool Roof GranulesCoreAdjacentIntl’EBO’s

• 3M™ Cool Roofing Granules provide for an increase of up to three times greater solar reflectance and exceptionally high thermal emittance.

• Allow shingle manufacturers to achieve EPA’s Energy Star® rating

• A palette of 8 durable, Cool colors

3M™ Cool Roofing Granules reflect a greater share of the infrared portion of the solar spectrum, which helps keep roofs cool in the summer time.





EBO & Special initiatives


International


Adjacencies/M&A


Core growth


Additional Capacity Will Further Drive Core Growth

• Significantly increases maintenance free respirator and elastomeric face respirator capacity

• Shortens supply chain

Hwaseong, Korea

• Increases corrosion protection capacity close to exploration customers in Eastern Europe and Asia

Volokolamsk, Russia

• Increases corrosion protection capacity close to customers in the oil sands region of Canada

Morden, Canada



Additional Capacity Will Further Drive Core Growth

• New ScotchBrite® capacity closer to Asian customers

JinShan, China

• Increases corrosion protection capacity close to exploration customers Asia

Ahmedabad, India

• New window glazing capacity closer to Asian customers

XinQiao, China







International


Adjacencies/M&A


Core growth


M&A And Has Driven Significant Growth In Both Core And Adjacent Markets

• Access to new technologyNov ’06Ekahau, Oy (T&T)

• New authentication products & technologiesJuly ’07Rochford Thompson (SSD)

• Transportation Management System softwareJuly ’06Pinnacle Distribution (T&T)

May ’07

Nov ’06

Aug ’06

Aug ’06

June ’06Closed

• New products & technologies in liquid coatings, also new products & access for the water market

E. Wood Holdings (CPP)

• Direct store delivery management softwareGlobal Beverage Group (T&T)

• Core changing addition of secure printing technology, products, marquee customers

SPSL (SSD)

• Gas detection products & technologiesAerion (OHESD)

• Hearing protection products & technology in LACPomp (OHESD)Comments


Over $325M of sales expected in 2008


Our Acquisition Of SPSL Enables Us To More Fully Serve The Passport Market


Building our capabilities in border and civil security systems

Assets/capabilities added• Secure passport/document printing capability (enables addition of

security film and other features)• ePassport technology and manufacturing• Significant Tier 1 customer relationship – United Kingdom

passport contract


Our Acquisition Of Rochford Thompson Extends Our Abilities In Border Security


Airline Kiosks, Law Enforcement, Public

Transport, HospitalityBorder Control

• A clear leader in the passport reader products market globally

Acquired with RT


As A Result, We Are Now Contributing To Security Solutions Across The World



Our E. Wood Acquisition Moves Us Into The Water Market

Pipelines are wearing out en masse over the next 30 years, and repairs are complicated by in-ground conditions


2010-204075 yrs1940’sSteel

2005-2035100 yrs.1920’s Ductile Iron

2000-2030120 yrs.1880’sCast IronRepairs beginAverage lifeInstalledMaterial

Potable water loss from corroded infrastructure (estimates)• Boston 36%• London 50%

Aging water infrastructure is a global issue

• Italy 40%• Norway 50-70%


The E. Wood Solution Provides For Trench-less Water Pipe Rehabilitation And Protection


Existing pipe Clean in place Apply product Rehabilitated pipe• Expected 75 yr life






International


Adjacencies/M&A


Core growth


Strong International GrowthCoreAdjacentIntl’EBO’s

Country growth 2006 (%)

Double digit international growth

60%

44% 41% 38%34%

25% 24% 23% 20% 19% 19%

India

Russia

Turkey

Poland

Argentina

S. Afric

a

China

Korea

Mexico

Brazil

Venezuela


Maintenance Free Respirators Used To Be Supplied By Two Plants

CoreAdjacentIntl'EBO’s

ILLUSTRATIVEMaintenance Free Respirator supply chain 2005


An Additional Plant Has Allowed Us To Dramatically Shorten The MFR Supply Chain

CoreAdjacent

EBO’s

ILLUSTRATIVEMaintenance Free Respirator supply chain 2007

3 week reduction in supply chain time to AsiaLess costly local source of raw materials

Intl’


Two Manufacturing Sites Formed The Foundation Of The Corrosion Protection Supply Chain In 2002

CoreAdjacent

EBO’s

ILLUSTRATIVECorrosion protection supply chain 2002

Intl’


Corrosion Protection Customers Will Soon Be Served By A Number Of Regional Supply Hubs

CoreAdjacent

EBO’s

ILLUSTRATIVECorrosion protection supply chain - Future

Significant lead time reductions to customersReduced inventory requirements

Intl’


Our Local Labs Are Driving Local InnovationCoreAdjacent

EBO’s

Working with customers - globally

Intl’






International


Adjacencies/M&A


Core growth


EvaluateLocate

Track & Trace EBO: Tapping Into The Next Great Market Opportunity

·Sensors and sensor networks

·Software

·RFID·Active RFID·Bar-code

·GPS ·RFID/RTLS·Ultrasound

Identify Optimize

·Location-based services

·Logistics & optimization solutions

Products:

Who Am I? Where Am I? How Am I?



Breakthrough New Product – Specimen Management SystemCoreAdjacentIntl’EBO’s

• Increased patient safety – limits mix-up, mislabeling and loss of specimen samples which can lead to inappropriate diagnosis

• Increased efficiency – process optimization through visibility and management of all samples throughout the hospital

An RFID enabled solution that tracks and manages specimen movement from surgical suites, through pathology laboratories, to result at the patient’s bedside


Product Pict. 1


Sample Patient Safety Applications

Locate

Obstetric Surgical Suites

NurseryNICU

Perinatology& Genetics

Labor/Delivery

CatheterizationSuites

Catheterization Recovery

Cardiac Intensive

Care

Medical Oncology

Post-partum/Maternity

Stat LabAdministration

ConferenceCardiology Family Rooms

Lobby

Patient Rooms

Patient Rooms

Sample Hospital Floor Plan

Locate

Infusion pumpsCrash cartsPhysiciansPatientsSpecific patients

Nurses station

DRPT

DR DR

DR

Track


DRPT

Mrs. SmithMrs. Smith

Mrs. Smith

Optimize/Protect

Rules-based movement monitoring & notification

Baby SmithMrs. Smith




Sample Patient Safety Applications

Locate

Obstetric Surgical Suites

NurseryNICU

Perinatology& Genetics

Labor/Delivery

CatheterizationSuites

Catheterization Recovery

Cardiac Intensive

Care

Medical Oncology

Post-partum/Maternity

Stat LabAdministration

ConferenceCardiology Family Rooms

Lobby

Patient Rooms

Patient Rooms

Sample Hospital Floor Plan

Locate


Nurses station

DRPT

DR DR

DR

Track


DRPT

Mrs. SmithMrs. Smith

Mrs. Smith

Optimize/Protect

Rules-based movement monitoring & notification




ALARM


New Mining EBO: Bringing The Big 3M To Mining Globally

Market focused organization – dedicated to mining customers

“Driving Growth at the Customers’ Place with the Customers Pace”



Multiple Forces Driving Growth In The Mining Industry

Growth Drivers• Increased worker safety compliance • Increased environmental awareness

• Continuing productivity challenges• Consolidation among incumbents• Regulatory activity in developing economies

Regional 3M Mining Sales Growth’04-’07 CAGR

23%

22%21%

19%

Significant untapped potential



Focused On Rapid Development Of Innovative Products And Services


Dust Suppression

Smart Safety

24x7 Onsite Service

Personal Safety


Agenda



• Summary


Driving The Execution Of Our Key Strategies To Accomplish Our Dream: A $10 Billion Business

Cons

umer

sGo

vern

men

ts

Cust

omer

s

Busin

esse

s

Protection - AssetsSecurity - ProcessesSafety - People

CPP

IMPD

B&CSD

SSD

T&T EBOT&T EBO

ILLUSTRATIVE


Global focus

Adjacencies/M&A

Core growth

OH&ESD

Mining

T&T

Jean Lobey, Executive Vice President, Safety, Security and Protection Services

Economy & Finance

product introductions

businesses

development

special initiatives

additional

smith post

smith rules

processes