Patrick D. Campbell, Senior Vice President and CFO

© 3M 2007. All Rights Reserved.

1

2007 3M Investor Conference

AgendaTuesday, October 91:00-1:45 Patrick D. Campbell, Senior Vice President and Chief Financial Officer1:45–3:15 George W. Buckley, Chairman of the Board, President and Chief Executive Officer3:15-3:30 Break3:30-4:00 Brad T. Sauer, Executive Vice President, Health Care Business4:00-4:30 Jean Lobey, Executive Vice President, Safety, Security & Protection Services Business4:30-5:15 Panel Q&A5:15-9:00 Product and technology displays, 3M Innovation Center tours; food and cocktails

After 5:30 p.m., buses will depart every 30 minutes to the St. Paul Hotel

Wednesday, October 106:30-7:30 Continental breakfast7:30-8:00 John K. Woodworth, Senior Vice President, Supply Chain Operations8:00 Depart for pilot plant8:15-9:15 Film pilot plant tour9:30 Depart for Hutchinson plant (box lunch/snack provided)11:00-2:00 Hutchinson plant tour2:00-3:30 Return trip to airport, St. Paul Hotel and 3M Center


2


• Opened Sept. 2006 • >35,000 visitors• ~1,500 events• >700 customer visits

3M Innovation Center: Connecting With Customers

• 15% of visits from International customers

• Supports worldwide network of customer technical centers in 26 countries

Providing Access to Global 3M Problem Solving Capabilities


3


Forward-Looking StatementsThese presentations contains forward-looking information (within the meaning of the Private Securities Litigation

Reform Act of 1995) about the company’s financial results and estimates, business prospects, and products under development that involve substantial risks and uncertainties. You can identify these statements by the use of words

such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could

cause actual results to differ materially are the following: (1) worldwide economic conditions; (2) competitive conditions and customer preferences; (3) foreign currency exchange rates and fluctuations in those rates; (4) the timing and

acceptance of new product offerings; (5) the availability and cost of purchased components, compounds, raw materials and energy (including oil and natural gas and their derivatives) due to shortages, increased demand or supply

interruptions (including those caused by natural and other disasters and other events); (6) the impact of acquisitions, strategic alliances, divestitures, and other unusual events resulting from portfolio management actions and other

evolving business strategies, and possible organizational restructuring; (7) generating less productivity improvements than estimated; and (8) legal proceedings, including significant developments that could occur in the legal and

regulatory proceedings described in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2006 and its subsequent Quarterly Reports on Form 10-Q (the “Reports”). Changes in such assumptions or factors could produce

significantly different results. A further description of these factors is located in the Reports under Part I, Item 1A (Annual Report) and Part II, Item 1A (Quarterly Report), “Risk Factors.” The information contained in these

presentations is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in thes presentations as a result of new information or future events or developments.

October 9 & 10, 20073M Investor Conference


Working Our Plan

Patrick D. CampbellSr. Vice President and Chief Financial OfficerOctober 9th, 2007


5


Last Year We Asked These Questions….

Can we accelerate growth?

Plans To Drive Higher Earnings & P/E

Are our current margins sustainable?

How will our more aggressive growth plans impact ROIC?

How will we deploy the balance sheet?


6


…. And Since Then We Have Delivered These Results*

Executing the Plan

22.7%21.6%21.9%ROIC

$2.5017.9%

$4.268.7%

$3.92EPS% Growth

$2.823.4%

$4.922.2%

$4.622.7%

O.I.% to Sales

$12.1+10.9%

$22.1+8.7%

$20.4Sales% Growth

H10720062005($Billions)

* Excludes special items and pharma in all periods. See appendix for GAAP reported numbers. Return on Invested Capital is a non-GAAP measure; see appendix for a full reconciliation to GAAP results.

Accelerating growth

Maintaining best-of-breed

Double-digit gains

Premium asset returns


7


12%

16%

20%

24%

2001 2005 2006 1H07

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2001 2005 2006 1H070%

5%

10%

15%

20%

25%Operating Income Operating Margin %

EPS

Operating Income & Margins

+12.0% +6.3%

+14.1%

21.6%

ROIC

15.3%

21.9%22.7%

Driving Sustainable Results Over The Long Haul* ….

$0.00$1.00$2.00

$3.00$4.00$5.00

2001 2005 2006 1H07

+15.0%+8.7%

+17.9%

5.3%

8.1% 8.4%

-1.1%

-1.5%0.0%1.5%3.0%4.5%6.0%7.5%9.0%

2001 2005 2006 1H07

Total LC Growth

6% CAGR

18% CAGR

+6.3 Points

15% CAGR

(11.0%)

(14.5%)

* Excludes special items and pharma in all periods. See appendix for GAAP reported numbers. Return on Invested Capital is a non-GAAP measure; see appendix for a full reconciliation to GAAP results.

Maintaining Premium Returns; Accelerating Sustainable LC Growth


8


Portfolio Breadth Strengthens Results

Total Local Currency OI Margins

* Excludes special items and pharma in all periods.

+27.8%

D&G LC Growth Other Segments LC Growth Total 3M LC Growth

2001 2002 2003 2004 2005 2006

21%

17%

13%

9%

5%

1%

-3%

All Businesses Contributing, But Changing*

2001 20032002 20052004 2006

34%

31%

13%

28%

16%

25%

19%

22%

D&G OI Margin Other Segment OI Margin Total 3M OI Margin


9

2007 3M Investor Conference~2X Global IPI5.3%-1.1%LC Growth*22% to 23%22.7%15.8%Margins*

2001 2005 2008 2011

Valu

e Cre

atio

n

Productivity

Growth

Holding Margins While Accelerating Growth


Our Journey to a Faster Growth High Return Company…


10


2001 2005 2008 2011

Valu

e Cre

atio

n

Productivity

Growth

~2X Global IPI5.3%-1.1%LC Growth*22% to 23%22.7%15.8%Margins*

Indirect CostsGlobal Sourcing

Six SigmaOverhead Leverage

Health Care Containment

Restructuring

Big 3MUpgrade Marketing Skills

Brand BuildingEnd Mkt Org Structure

ServiceInt’l Portfolio Planning

Price Leakage 21.9%15.3%ROIC

$3.9215.0%

$1.87EPS% Change

$4.622.7%

$2.415.8%

Operating Income% to Sales

$20.46.0%

$15.4Sales% Growth

’05’01($ in Millions)




11


Total Local Currency Sales Growth 2x IPI

Leverage Total Local Currency Growth – 30% to 40%

Productivity offsets inflation/pricing; reinvest excess

Delivering Sustainable Long-Term Shareholder Return

3M’s Iterative Financial Planning Model

Other potential gains – FX, pension, asset sales

Share repurchases offset dilution at minimum

Incremental Tax Rate Improvements

Double Digit EPS Growth


12


2001 2005 2008 2011

Valu

e Cre

atio

n

Productivity

Growth





Restructuring




Price Leakage




13


Drive Out Cost … Localize … Reinvest in Growth … Iterate* Excludes pharma and special items in all periods.

$0.0

$0.5

$1.0

$1.5

$2.0

2001 2005 2006 20080%

2%

4%

6%

8%

10%

Overhead Cost $B% to Sales

~2.5% of Margin

2001-05

~1.5% of Margin

2005-08

Volume Leverage TechnologyInt’l Localization Lean Principles

Blocking/Tackling

Via

General & Administrative Cost Leverage*


14


2001 2005 2008 2011

Valu

e Cre

atio

n

Productivity





RestructuringLean Six Sigma

Growth




Price Leakage




Lean Six Sigma

Driving Growthand Operational Excellence

John Houle, Staff Vice President, Supply Chain and Manufacturingand Lean Six Sigma


16


LeanLean processes tell us……“Don’t perpetuate a process that does not add value for the CUSTOMER!”

Six SigmaSix Sigma processes advise…“Once we identify value-added processes, let’s absolutely minimize the variability and get them in control.”

VA X VA VA

Don’t waste your efforts employing Six Sigma principles to something that does not add value for the Customer.

Lean + Six Sigma =

Strength in Processes


17


Lean Six Sigma – Continuous Evolution, Strong Foundation

Lean Six Sigma is aligned to our businesses enabling growth, productivity, and operational excellence

Excellent deployment of Lean Six Sigma globally>55,000 employees trained >49,000 projects in-process or closed>700 full-time employees dedicated globally>760 customer projects either in-process or closed

Contributed More Than $4.5B in Savings Since 2001


18


Lean Six Sigma Example3M Perth, Ontario, Canada - Tape Manufacturing

ONTARIO

MANITOBA


19


3M Perth, Ontario Products

Tartan™ Filament Tape 8934

Filament Tapes

Scotch® Filament Tape 899




20


3M Perth, OntarioBusiness situation:

Needed improved linkage between planning, production and shippingNeeded clear priorities establishedManual printing of priority lists

Lean tools applied Visual controls – scheduling and status boards


21


Quick assessment schedule to planQuick visibility of order statusResource prioritization Overtime requirements planningVisibility for material delivery

Visual Scheduling Benefits


22


2006 20072005

On-time Improvement – 19%

3M Perth, Ontario


23


Lean Six Sigma Example3M Ames, Iowa – Abrasive Manufacturing

Disc Roll Sheets HookitTM

RolocTM


24


3M Ames, IowaBusiness situation:

Cyclical customer demand, resulting in: • Poor service levels • Increased cost of goods sold

Lean tools applied Changeover wheelsPull systemsLevel schedule loading


25


2006 2007

Total Backorder Reduction -77%

3M Ames, Iowa


26


Lines on Time /Product Availability - 6% Improvement

2006 2007

3M Ames, Iowa


27


Lean Six Sigma Example3M Irvine, CA – Dental Product Manufacturing


28


3M Irvine, CA – Products

Filtek™ Z250 Filtek™ Supreme

Crowns

Adper™ Scotchbond

Paradigm™ MZ100

RelyX™ ARC

Sof-Lex™

Z100™Imprint™ II Garant™


29


3M Irvine, CABusiness situation

Capacity and lead time negatively impacting service

Lean tools applied 5S, visual management: production status boardsValue stream maps – current & futurePlan for every part / material delivery system Operator balance / standard work / cell design for flowChangeover reduction


30


AfterAfter

3M Irvine, CA

BeforeBefore

Transforming the Shop Floor


31


Lead Time Reduction from 105 days 55 daysUS Lines On-time delivery from 74% 89%Int’l Lines On-time delivery from 71% 84%

InternationalUS

3M Irvine, CA

2003 2004 2005 20062003 2004 2005 2006


32


Lean Six Sigma

Strong foundation built on Six SigmaAligned to our business objectivesTransforming how we execute and energizing our workforceDriving growth through customer success

A Key Tool To Achieve Growth And Productivity


33


2001 2005 2008 2011

Valu

e Cre

atio

n

Productivity






Supply ChainService

CostWorking Capital

Taxes

Growth




Price Leakage




34


Accelerated GrowthService, higher fill rates

A Huge Prize Remains for Supply Chain Improvements

Accelerate Growth … Drive Productivity … Reinvest

Cost reductionLabor, logistics, shrinkage

Lower InventoryWIP, FG, local sourcing

+1 point minimum,adds ~$100M OI

Minimum +1 turn,adds ~$700M to FCF

+80 to 100 bps gross margin,adds ~$300M to $400M OI/year

2012 Opportunity

$1 Billion-PlusOpportunity

plus

equals

plus


35


2006 Sales

39%

61%

2006 PP&E - Net

57%43%

International

InternationalU.S.U.S.

Global Sales vs. Net PP&E Footprint

Moving Assets to Low Tax Growth Markets

U.S.

2012 Sales

~35%

~65%

2012 PP&E - Net

~45%~55%

International

U.S.International

U.S.


36


Geographic Imbalance Stresses Inventory Performance

Minimum 1 Turn Improvement = $700MM In 2012

5.3 to 4.73.5 to 5.3Inventory Turns Change

$0.7B($0.4B)Inventory Change

$2.9B$3.3BTotal Sales Growth

2004-062001-04

2001-04Turns improved, but

service levels declined …not sustainable

2004-06Renewed focus on service, driving fundamental supply

chain changes for permanentturns improvement


37


$0

$500

$1,000

$1,500

$2,000

$2,500

Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08

Ultim

ate C

apac

ityNew Plant Construction Timeline

4 plants

4 plants

4 plants1 plant 3 plants

1 plant

Plan Is On Track

2 plants


38


Tax Rate Vs. Peers

Significant Opportunity To Create Sustainable Shareholder Value

Why Are We Higher Than Our Peers?

• Manufacturing and IP predominantly in the US, Western Europe and Japan

• All business operations headquartered in US

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

3M ITW DHR UTX HON DD JNJ

Tax R

ate %

Peer Ave = 27%

2006 Rates2007e


39


Technical capability will continue to expand faster in international growth

markets

Heavily weighted to US, Western Europe, Japan

Technical Resources

After-taxPre-taxInternal Financial Measurements

Business unit operations will migrate to international markets

All US-based(~50% of divisions have

int’l sales >60%)

Business Unit Operations

Locate capacity in low-tax locations with common shipping locations to

growth markets

Heavily weighted to US, Western Europe, Japan

Manufacturing Asset Locations

FutureToday

Target Tax Rate 30.5% by 2012; Reduction of ~2.5%

Tax Reduction: A Benefit Of Our Supply Chain Strategy


40


2001 2005 2008 2011

Valu

e Cre

atio

n

Productivity






Supply ChainService

CostWorking Capital

Taxes

Growth




Price Leakage

Selective Restructuring




41


Not Only Building, But Also Rationalizing Old and Acquired Facilities

Actively Managing Excess Facilities to Improve Productivity and Inventories

2002 – 2005 –2003 – 2006 –2004 – 2007 –


Capital Allocation – ’07 to ‘08


43


Financial PolicyFirst priority: fund available growth

Capital expenditures: drive 20%+ ROIC via organic growthSupplement organic with accretive, growth-enhancing acquisitions

Increase annual dividendMaintain competitive yield and payout ratioOffset inflation at a minimum, with the maximum dependent on other growth-generating uses at that time

Opportunistic share buybackEconomic dynamics and alternative cash uses will drive repurchase levelsReady to support the stock when warranted

For the right growth investments, lever up as required

Managing With “AA” Operating Discipline; Will Consider “A” For The Right Strategic Cash-Generating Opportunity


44


Capital Allocation Model – ’07 to ’08

Maintaining Balance While Increasing Growth Investments

Cash Flow From Operations

~$9 to $10B

Asset Sales

~$400M to $500M

Growth Employees/Retirees ShareholdersCap Ex

~$2.8 to $3BAligned to higher

growth

M&A$1B to $2B

Aligned with strategic intent

Pension~$0.3 to $0.7BFully-funded

status

Dividends~$2.8B

Continue historicaltrack record

Net Share Repurchase~$2.5 to $3.5B

Opportunisticallypursue additional

shares

+ = Cash Available~$9.5 to $10.5B


45


Business and Real Estate Divestitures

Divesting Non-Strategic Businesses; Actively Monetizing 8-10 Real Estate Properties at Present

Businesses

3M Pharmaceuticals

Real EstateCergy, France

St. Paul, MN

3M Opticom Priority Control Systems

San Felice, Italy Suwon, Korea


46


Capital Expenditures & Depreciation

$0

$400

$800

$1,200

$1,600

1997 1998 2001 2002 2003 2004 2005 2006 2007e 2008e

Cap Ex Depreciation

Investing in Growth; Manageable Impact on D&A

Depreciation % to sales 5.4% 5.5% 6.2% 5.6% 5.1% 4.8% 4.4% 4.3% 4.0% 4.0%


47


M&A Strategy

Will fit tightly defined strategic needs in the core or in near adjacenciesMajority will be bolt-on acquisitions placed in markets we understandChannels of distribution will be familiarThe acquisition may bring technology, market access or scaleAcquisitions will have an ethical fit Some acquisitions will be international, aimed at gaining market access While top brands are preferred, some will be appropriately chosen secondary brands

Margin dilutive acquisitions will always contribute to net positive shareholder value through higher growthPrice will always be a factorTail liabilities will be scrutinizedWill be EPS accretive or neutral end of year 1 excluding purchase accountingMajority of acquisitions will be Economic Profit accretive by the end of year 3

Strategic Intent Economics

M&A Remains A Key Component Of Our Growth Strategy


48


Amounts exclude Brontes, a pre-revenue technology acquisition in the dental business; price multiples reflect 12-month forward sales and EBITDA amounts

Expanding Our Business Portfolio Via Acquisitions …2006-07 Acquisition ActivityPurchase price $1.1BPrice/sales 1.4xPrice/EBITDA 8.4xImpact on Growth ~3%Business # of Acq’s Growth ImpactSafety, Sec & Prot 7 7.5%Ind’l & Transp 7 3.6%Health Care 10 3.0%Consumer & Office 3 1.0%Electro & Comm 4 0.8%Display & Graphics 1 0.2%

Current M&A Environment Favoring Strategic Buyers


49


Stepped Up Pace of Acquisitions 2006-07

Industrial & Transportation

Healthcare

Display & Graphics

Consumer & Office

Electro & Communications

Safety, Security, & Protection Svcs

Accelerating Growth In All Businesses


50


Global Pension & Post-Employment Liabilities

88% 87%

94%

99%

80%83%

75%

70%

75%

80%

85%

90%

95%

100%

2001 2002 2003 2004 2005 2006 2007e

Fund

ed S

tatu

s (%

)

Good Progress, Nearly Fully Funded

10/9/2007 1:14 PM© 3M 2007. All Rights Reserved.

51


Dividend Trends

Source: FactSet. Based on data as of September 28,2007Note: Revenue growth calculated as CY2006-2008E CAGR.1. Calculated as annualized dividends per share / average 2007 YTD share price.2. Calculated as LTM dividends per share / LTM EPS from operations.3. Excludes 1 company with dividend-payout ratio greater than 200% and 7 companies for which 2008E IBES projected revenues were not available.

S&P 500 DividendS&P 500 Dividend--Paying Paying CompaniesCompanies’’ Dividend YieldDividend Yield11

S&P 500 DividendS&P 500 Dividend--Paying Paying CompaniesCompanies’’ Payout RatioPayout Ratio22

1.7%

2.4%

1.8%1.9%

2.3%

0%

1%

2%

3%

4%

< 5% ≥ 5% and <10%

≥ 10% and <15%

≥ 15%

Revenue Growth

Div

iden

d Yi

eld

Mean:

# Companies 3 201 156 68 67# Paying Div. 164 130 48 29% Paying Div. 82% 83% 71% 43%

2.1%

3M

33.7%

24.0%

35.9%32.8%

38.7%

0%

10%

20%

30%

40%

50%

< 5% ≥ 5% and <10%

≥ 10% and <15%

≥ 15%

Revenue Growth

Divi

dend

Pay

out


34.1%Mean:

3M

10/9/2007 1:14 PM© 3M 2007. All Rights Reserved.

52


Dividend Trends

Source: FactSet. Based on data as of September 28,2007Note: Revenue growth calculated as CY2006-2008E CAGR.1. Calculated as annualized dividends per share / average 2007 YTD share price.2. Calculated as LTM dividends per share / LTM EPS from operations.3. Excludes 1 company with dividend-payout ratio greater than 200% and 7 companies for which 2008E IBES projected revenues were not available.

S&P 500 DividendS&P 500 Dividend--Paying Paying CompaniesCompanies’’ Dividend YieldDividend Yield11

S&P 500 DividendS&P 500 Dividend--Paying Paying CompaniesCompanies’’ Payout RatioPayout Ratio22

1.7%

2.4%

1.8%1.9%

2.3%

0%

1%

2%

3%

4%

< 5% ≥ 5% and <10%

≥ 10% and <15%

≥ 15%

Revenue Growth

Div

iden

d Yi

eld

Mean:


2.1%

3M

33.7%

24.0%

35.9%32.8%

38.7%

0%

10%

20%

30%

40%

50%

< 5% ≥ 5% and <10%

≥ 10% and <15%

≥ 15%

Revenue Growth

Divi

dend

Pay

out


34.1%Mean:

3M

Highly Competitive Yield … Above Peers & S&P500


53


Share Repurchase

17% Premium7% PremiumP/E (2007 EPS Consensus)

Less StableRelatively StableEconomic Environment

TighterHighly LiquidCredit Availability

Spreads wider, yield curve steeper, markets

uncertain

Rates low, tight spreads, stable marketsBorrowing Costs

TodayEarly 2007

Near-Term Economics Less Compelling;More Importantly, Maintaining Flexibility for Growth


54


Stock Repurchases in Millions

$0

$500

$1,000

$1,500

$2,000

$2,500

2001 2002 2003 2004 2005 2006 1H07

Cash Back to ShareholdersFor The Period 2001-1H07:

$11.7 billion in share repurchases$7.4 billion in dividends paidDividend CAGR of ~8%No equity dilution policyDividends in Millions

$0

$400

$800

$1,200

$1,600

2001 2002 2003 2004 2005 2006 1H07

Returned ~109% of Reported Net Income

Via Dividends and Share Repurchases


Summary


56


We’ve Talked About Our Journey And Productivity…

2001 2005 2008 2011

Valu

e Cre

atio

n

Productivity

Growth





Restructuring




Price Leakage

Selective Restructuring

Lean Six Sigma

Supply ChainService

CostWorking Capital

Taxes



57


…Now Let’s Focus On Growth…

2001 2005 2008 2011

Valu

e Cre

atio

n

Productivity





RestructuringSelective Restructuring

Lean Six Sigma

Supply ChainService

CostWorking Capital

Taxes

Growth




Price Leakage

Emerging MarketsSupply Chain Re-engineering

LocalizationEntrepreneurial Culture

Capital Investments

Rebuilding R&D

Enduring Franchises

EBOs

M&A



Appendix


59


Non-GAAP Financial Measures Year Year Year First Six

2001 2005 2006 Months 2007Sales Change Percents:Total Reported Sales Change -3.9% 5.8% 8.3% 7.1%Less: Translation Impact -3.3% 0.7% 0.6% 2.5%Total Reported Local-Currency Sales Change -0.6% 5.1% 7.7% 4.6%

Local Currency Sales Change ex-Pharmaceuticals -1.1% 5.3% 8.1% 8.4%

The Company uses non-GAAP measures to focus on shareholder value creation. 3M uses Return on Invested Capital, defined as after-tax operating income divided by average operating capital. This measure excludes special items and the historical impacts of the Pharmaceuticals business (see Notes 1 and 2). These measures are not recognized under U.S. generally accepted accounting principles and may not be comparable to similarly titled measures used by other companies.

Year Year Year First Six 2001 2005 2006 Months 2007Return on Invested Capital 12.8% 22.1% 25.3% 28.0%

Return on Invested Capital - excluding

Pharmaceuticals and Special Items 15.3% 21.9% 21.6% 22.7%

(1) Special items for the periods presented have been discussed in Form 8-K’s that were furnished to the

U.S. Securities and Exchange Commission on July 26, 2007 and January 30, 2007 and in 3M’s 2001 Form 10-K filed March 11, 2002.

(2) In December 2006 and January 2007, 3M completed the sale of its global branded Pharmaceuticals

business. In connection with these transactions, 3M’s Drug Delivery Systems Division became a source of supply to the acquiring companies. Because of the extent of 3M cash flows from these agreements in relation to the disposed businesses, the operations of the branded Pharmaceuticals business were not classified as discontinued operations. The sale of the branded Pharmaceuticals business impacted both sales and operating income growth in 2007, as significant Pharmaceuticals sales and income are in the reported base 2006 period and also in prior periods. Where indicated, to provide more meaningful trend information, portions of this presentation exclude the impact of 2006 and prior Pharmaceutical financial results, as this business was sold in December 2006 and January 2007.

3M Company and Subsidiaries SUPPLEMENTAL CONSOLIDATED INFORMATION

NON-GAAP FINANCIAL MEASURES (Millions, except per-share amounts)

(Unaudited)

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company also discusses non-GAAP measures that exclude special items. Sales, operating income and diluted earnings per share measures that exclude special items and that exclude the impact of Pharmaceuticals are not in accordance with, nor are they a substitute for, GAAP measures. Special items represent significant charges or credits that are important to an understanding of the Company’s ongoing operations. The company uses these non-GAAP measures to evaluate and manage the Company’s operations. The company believes that discussion of results excluding special items provides a useful analysis of ongoing operating trends. The determination of special items may not be comparable to similarly titled measures used by other companies. Special items for the six months ended June 30, 2007 and prior periods presented have been previously provided (See Note 1). In addition, the Company believes that providing financial results excluding the impact of Pharmaceuticals provides useful information (See Note 2). The reconciliations provided below reconcile the non-GAAP financial measures with the most directly comparable GAAP financial measures for the periods indicated.

Year Year Year First Six(Millions, except per-share amounts) 2001 2005 2006 Months 2007Sales Dollars:Reported GAAP 16,054$ 21,167$ 22,923$ 12,079$ Pharmaceutical (699)$ (797)$ (774)$ -$ Adjusted Non-GAAP 15,355$ 20,370$ 22,149$ 12,079$

Operating Income Dollars:Reported GAAP 2,075$ 4,854$ 5,696$ 3,498$ Special Items 504$ (523)$ (675)$ Pharmaceutical (157)$ (226)$ (256)$ -$ Adjusted Non-GAAP 2,422$ 4,628$ 4,917$ 2,823$

Diluted Earnings per Share:Reported GAAP 1.60$ 3.98$ 5.06$ 3.10$ Special Items 0.39$ 0.14$ (0.57)$ (0.60)$ Pharmaceutical (0.12)$ (0.20)$ (0.23)$ -$ Adjusted Non-GAAP 1.87$ 3.92$ 4.26$ 2.50$

The Company uses local-currency sales growth, which excludes the impact of translation or currency exchange rates, as an indication of its economic sales growth. The Company has provided the components of local-currency sales growth below, including the impact of translation. The Company has provided local-currency sales growth that excludes the historical impacts of the Pharmaceuticals business to portray what it believes are more meaningful sales growth trends. 3M believes this non-GAAP sales growth information excluding Pharmaceuticals provides useful information (See Note 2). These measures are not in accordance with, nor are they a substitute for, GAAP measures.

Patrick D. Campbell, Senior Vice President and CFO

Economy & Finance

executive vice president

sustainable results

gaap results

senior vice president

companys financial results

accelerating growth

sustainable lc growth

aggressive growth