Patrick D. Campbell, Senior Vice President and CFO

Agenda
Tuesday, October 9
1:00-1:45 Patrick D. Campbell, Senior Vice President and Chief Financial Officer
1:45–3:15 George W. Buckley, Chairman of the Board, President and Chief Executive Officer
3:15-3:30 Break
3:30-4:00 Brad T. Sauer, Executive Vice President, Health Care Business
4:00-4:30 Jean Lobey, Executive Vice President, Safety, Security & Protection Services Business
4:30-5:15 Panel Q&A
5:15-9:00 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 10
6:30-7:30 Continental breakfast
7:30-8:00 John K. Woodworth, Senior Vice President, Supply Chain Operations
8:00 Depart for pilot plant
8:15-9:15 Film pilot plant tour
9:30 Depart for Hutchinson plant (box lunch/snack provided)
11:00-2:00 Hutchinson plant tour
2:00-3:30 Return trip to airport, St. Paul Hotel and 3M Center
1
2007 3M Investor Conference
© 3M 2007. All Rights Reserved.

3M Innovation Center: Connecting With Customers
• Opened Sept. 2006
• >35,000 visitors
• ~1,500 events
• >700 customer visits

• 15% of visits from
International customers
• Supports worldwide
network of customer
technical centers in 26
countries

Providing Access to Global 3M Problem
Solving Capabilities
2

October 9 & 10, 2007
3M Investor Conference
Forward-Looking Statements
These 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.
3

Patrick D. Campbell
Sr. Vice President and Chief Financial Officer
October 9th, 2007

Working Our Plan


Last Year We Asked These Questions….

Can we accelerate growth?

Are our current margins sustainable?

How will our more aggressive growth plans
impact ROIC?

How will we deploy the balance sheet?

Plans To Drive Higher Earnings & P/E
5

…. And Since Then We Have Delivered These Results*

2005 2006 H107
($Billions)

Sales $20.4 $22.1 $12.1 Accelerating growth
% Growth +8.7% +10.9%

O.I. $4.6 $4.9 $2.8 Maintaining best-of-breed
22.7% 22.2% 23.4%
% to Sales

EPS $3.92 $4.26 $2.50 Double-digit gains
% Growth 8.7% 17.9%

Premium asset returns
21.9% 21.6% 22.7%
ROIC

Executing the Plan
* 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.
6

Driving Sustainable Results Over The Long Haul* ….
Operating Income & Margins
Total LC Growth
Operating Income Operating Margin %
$6,000 25%

$5,000 R
9.0% 20%
AG
GR +6.3%
C
+12.0%
CA
7.5% $4,000
5%
8.4%
8.1%
6% 1 15%
6.0%
$3,000
4.5% +14.1%
5.3% 10%
$2,000
3.0% (14.5%)
1.5% 5%
$1,000
-1.1%
0.0%
$0 0%
-1.5%
2001 2005 2006 1H07
2001 2005 2006 1H07

ROIC
EPS 24%
R
$5.00 AG 22.7%
s
21.9% int
C 21.6%
o
$4.00 P
% 20%
+8.7%
18 +15.0% .3
+6
$3.00
$2.00 +17.9% 16%
(11.0%) 15.3%
$1.00
$0.00 12%
2001 2005 2006 1H07
2001 2005 2006 1H07

Maintaining Premium Returns; Accelerating Sustainable LC Growth
* 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
7
reconciliation to GAAP results.

All Businesses Contributing, But Changing*
Total Local Currency OI Margins
34%
21%
+27.8%

31%
17%

28%
13%
25%

9%
22%

5% 19%

16%
1%

2001 2002 2003 2004 2005 2006 13%
-3% 2001 2002 2003 2004 2005 2006

D&G LC Growth Other Segments LC Growth Total 3M LC Growth D&G OI Margin Other Segment OI Margin Total 3M OI Margin

Portfolio Breadth Strengthens Results
* Excludes special items and pharma in all periods.
8

Our Journey to a Faster Growth High Return Company…

Productivity
Value Creation

Holding Margins While
Accelerating Growth
Growth

2001 2005 2008 2011
Margins* 15.8% 22.7% 22% to 23%
9
LC Growth* -1.1% 5.3% ~2X Global IPI
2007 3M Investor Conference * Excludes special items and pharma in all periods.


Productivity
’01 ’05
($ in Millions)
Restructuring

Indirect Costs
$15.4 $20.4
Sales
Global Sourcing
Six Sigma
Value Creation

6.0%
% Growth
Overhead Leverage
$2.4 $4.6
Health Care Containment Operating Income
15.8% 22.7%
% to Sales
EPS $1.87 $3.92
Big 3M
Upgrade Marketing Skills
15.0%
% Change
Brand Building
End Mkt Org Structure
Service
Int’l Portfolio Planning
ROIC 15.3% 21.9%
Price Leakage

Growth

2001 2005 2008 2011
Margins* 15.8% 22.7% 22% to 23%
10

3M’s Iterative Financial Planning Model
Double Digit EPS Growth

Incremental Tax Rate Improvements

Share repurchases offset dilution at minimum

Other potential gains – FX, pension, asset sales

Productivity offsets inflation/pricing; reinvest excess

Leverage Total Local Currency Growth – 30% to 40%

Total Local Currency Sales Growth 2x IPI

Delivering Sustainable Long-Term Shareholder Return
11


Productivity
Restructuring

Indirect Costs
Global Sourcing
Six Sigma
Value Creation

Overhead Leverage
Health Care Containment

Big 3M
Brand Building
Service
Price Leakage

Growth

2001 2005 2008 2011
Margins* 15.8% 22.7% 22% to 23%
12

General & Administrative Cost Leverage*
$2.0 10%

8% Overhead Cost $B
$1.5
% to Sales
6%
$1.0
4%
~1.5% of
~2.5% of
$0.5 Margin
Margin
2%
2005-08
2001-05

$0.0 0% Via
2001 2005 2006 2008

Volume Leverage Technology
Int’l Localization Lean Principles
Blocking/Tackling

Drive Out Cost … Localize … Reinvest in Growth … Iterate
* Excludes pharma and special items in all periods.
13


Productivity
Restructuring
Lean Six Sigma
Indirect Costs
Global Sourcing
Six Sigma
Value Creation

Overhead Leverage

Big 3M
Brand Building
Service
Price Leakage

Growth

2001 2005 2008 2011
Margins* 15.8% 22.7% 22% to 23%
14

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

Driving Growth
and Operational Excellence


Lean + Six Sigma
=
Strength in Processes
Six Sigma
Lean
Six Sigma processes
Lean processes tell
advise…“Once we identify
us……“Don’t
value-added processes, let’s
perpetuate a process
absolutely minimize the
that does not add
variability and get them in
value for the
control.”
CUSTOMER!”

X
VA VA VA

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

16
© 3M 2007. All Rights Reserved. 2007 3M Investor Conference

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
17

Lean Six Sigma Example
3M Perth, Ontario, Canada - Tape Manufacturing

MANITOBA

ONTARIO

18

3M Perth, Ontario Products

Filament Tapes
Scotch® Filament Tape
893

894

Tartan™ Filament Tape
19
8934
899

3M Perth, Ontario
Business situation:
Needed improved linkage between planning, production
and shipping
Needed clear priorities established
Manual printing of priority lists
Lean tools applied
Visual controls – scheduling and status boards

20

Visual Scheduling Benefits
Quick assessment schedule to plan
Quick visibility of order status
Resource prioritization
Overtime requirements planning
Visibility for material delivery

21

3M Perth, Ontario

On-time Improvement – 19%

2005 2006 2007

22

3M Ames, Iowa – Abrasive Manufacturing

Roloc
TM

Hookit TM
Sheets
Disc Roll

23

3M Ames, Iowa
Business situation:
Cyclical customer demand, resulting in:
• Poor service levels
• Increased cost of goods sold

Lean tools applied
Changeover wheels
Pull systems
Level schedule loading

24

3M Ames, Iowa
Total Backorder Reduction -77%

2006 2007
25

3M Ames, Iowa
Lines on Time /Product Availability - 6%
Improvement

2006 2007
26

3M Irvine, CA – Dental Product Manufacturing

27

3M Irvine, CA – Products

Filtek™ Z250
Filtek™ Supreme
RelyX™ ARC

Sof-Lex™
Paradigm™ MZ100 Crowns

Imprint™ II Garant™ Adper™ Scotchbond Z100™
28

3M Irvine, CA
Business situation
Capacity and lead time negatively impacting service
Lean tools applied
5S, visual management: production status boards
Value stream maps – current & future
Plan for every part / material delivery system
Operator balance / standard work / cell design for flow
Changeover reduction

29

3M Irvine, CA

Transforming the
Shop Floor

Before

After
30

3M Irvine, CA
Lead Time Reduction from 105 days 55 days
US Lines On-time delivery from 74% 89%
Int’l Lines On-time delivery from 71% 84%

2005 2006
2003 2004 2005 2006
2003 2004

US International
31

Lean Six Sigma
Strong foundation built on Six Sigma
Aligned to our business objectives
Transforming how we execute and energizing our workforce
Driving growth through customer success

A Key Tool To Achieve Growth And Productivity

32


Productivity
Restructuring
Lean Six Sigma
Indirect Costs
Global Sourcing
Six Sigma
Value Creation

Supply Chain
Overhead Leverage
Service
Cost
Working Capital
Taxes
Big 3M
Brand Building
Service
Price Leakage

Growth

2001 2005 2008 2011
Margins* 15.8% 22.7% 22% to 23%
33

A Huge Prize Remains for Supply Chain Improvements
2012 Opportunity
+1 point minimum,
Accelerated Growth
adds ~$100M OI
Service, higher fill rates
plus

+80 to 100 bps gross margin,
Cost reduction
adds ~$300M to $400M OI/year
Labor, logistics, shrinkage
plus

Minimum +1 turn,
Lower Inventory
adds ~$700M to FCF
WIP, FG, local sourcing
equals

$1 Billion-Plus
Opportunity

Accelerate Growth … Drive Productivity … Reinvest
34

Global Sales vs. Net PP&E Footprint
2006 PP&E - Net
2006 Sales

39% 43%
57%
U.S. International
61%
U.S. 2012 PP&E - Net
International 2012 Sales

U.S.
~35% ~45%
~55%
U.S.
U.S.
~65%
International
International

Moving Assets to Low Tax Growth Markets
35

Geographic Imbalance Stresses Inventory Performance
2001-04 2004-06

$3.3B $2.9B
Total Sales Growth
($0.4B) $0.7B
Inventory Change
3.5 to 5.3 5.3 to 4.7
Inventory Turns Change

2004-06
2001-04 Renewed focus on service,
Turns improved, but driving fundamental supply
service levels declined … chain changes for permanent
not sustainable turns improvement

Minimum 1 Turn Improvement = $700MM In 2012
36

New Plant Construction Timeline

2 plants
$2,500

1 plant
$2,000
3 plants
1 plant
ate apacity

4 plants
$1,500
Ultim C

$1,000
4 plants
$500

4 plants
$0
Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08

Plan Is On Track
37

Tax Rate Vs. Peers

35.0%

Why Are We Higher
30.0% Peer Ave = 27%
Than Our Peers?
25.0%
• Manufacturing and IP
T a x R a te %

20.0%
predominantly in the US,
Western Europe and Japan
15.0%
• All business operations
10.0%
headquartered in US
5.0%

0.0%
3M ITW DHR UTX HON DD JNJ
2007e 2006 Rates

Significant Opportunity To Create Sustainable Shareholder Value

38

Tax Reduction: A Benefit Of Our Supply Chain Strategy

Today Future
Manufacturing Asset Heavily weighted to US, Locate capacity in low-tax locations
Locations Western Europe, Japan with common shipping locations to
growth markets

Technical Resources Heavily weighted to US, Technical capability will continue to
Western Europe, Japan expand faster in international growth
markets

Business Unit All US-based Business unit operations will migrate
Operations to international markets
(~50% of divisions have
int’l sales >60%)
Internal Financial Pre-tax After-tax
Measurements

Target Tax Rate 30.5% by 2012; Reduction of ~2.5%
39


Productivity Selective Restructuring
Restructuring
Lean Six Sigma
Indirect Costs
Global Sourcing
Six Sigma
Value Creation

Supply Chain
Overhead Leverage
Service
Cost
Working Capital
Taxes
Big 3M
Brand Building
Service
Price Leakage

Growth

2001 2005 2008 2011
Margins* 15.8% 22.7% 22% to 23%
40

Not Only Building, But Also Rationalizing Old and Acquired Facilities

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

Actively Managing Excess Facilities to Improve
Productivity and Inventories
41

Capital Allocation – ’07 to ‘08


Financial Policy
First priority: fund available growth
Capital expenditures: drive 20%+ ROIC via organic growth
Supplement organic with accretive, growth-enhancing acquisitions
Increase annual dividend
Maintain competitive yield and payout ratio
Offset inflation at a minimum, with the maximum dependent on other growth-
generating uses at that time
Opportunistic share buyback
Economic dynamics and alternative cash uses will drive repurchase levels
Ready 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
43

Capital Allocation Model – ’07 to ’08
Cash Flow Asset
Cash Available
=
+
From Operations Sales ~$9.5 to $10.5B
~$9 to $10B ~$400M to $500M

Growth Employees/Retirees Shareholders
Cap Ex Pension Dividends
~$2.8 to $3B ~$0.3 to $0.7B ~$2.8B
Aligned to higher Fully-funded Continue historical
growth status track record
M&A Net Share
$1B to $2B Repurchase
Aligned with ~$2.5 to $3.5B
strategic intent Opportunistically
pursue additional
shares
Maintaining Balance While Increasing Growth Investments
44

Business and Real Estate Divestitures
Businesses Real Estate
Cergy, France

3M Pharmaceuticals
St. Paul, MN

San Felice, Italy Suwon, Korea

3M Opticom Priority Control Systems

Divesting Non-Strategic Businesses;
Actively Monetizing 8-10 Real Estate Properties at Present
45

Capital Expenditures & Depreciation
$1,600
Cap Ex Depreciation

$1,200

$800

$400

$0
1997 1998 2001 2002 2003 2004 2005 2006 2007e 2008e
Depreciation % to sales 5.4% 5.5% 6.2% 5.6% 5.1% 4.8% 4.4% 4.3% 4.0% 4.0%

Investing in Growth; Manageable Impact on D&A
46

M&A Strategy
Strategic Intent Economics
Will fit tightly defined strategic needs in the Margin dilutive acquisitions will always
core or in near adjacencies contribute to net positive shareholder
value through higher growth
Majority will be bolt-on acquisitions placed
in markets we understand Price will always be a factor
Channels of distribution will be familiar Tail liabilities will be scrutinized
The acquisition may bring technology, Will be EPS accretive or neutral end of
market access or scale year 1 excluding purchase accounting
Acquisitions will have an ethical fit Majority of acquisitions will be Economic
Profit accretive by the end of year 3
Some acquisitions will be international,
aimed at gaining market access
While top brands are preferred, some will
be appropriately chosen secondary brands

M&A Remains A Key Component Of Our Growth Strategy
47

Expanding Our Business Portfolio Via Acquisitions …
2006-07 Acquisition Activity
Purchase price $1.1B
Price/sales 1.4x
Price/EBITDA 8.4x
Impact on Growth ~3%
Business # of Acq’s Growth Impact
Safety, 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
Amounts exclude Brontes, a pre-revenue technology acquisition in the dental business; price multiples reflect 12-month forward
48
sales and EBITDA amounts

Stepped Up Pace of Acquisitions 2006-07
Electro & Healthcare
Communications

Display & Graphics

Safety, Security,
& Protection Svcs

Industrial & Transportation

Consumer & Office

Accelerating Growth In All Businesses
49

Global Pension & Post-Employment Liabilities

99%
100%

94%
95%

88%
Funded Status (%)

90%
87%
83%
85%
80%
80%
75%
75%

70%
2001 2002 2003 2004 2005 2006 2007e

Good Progress, Nearly Fully Funded
50

Dividend Trends
S&P 500 Dividend-Paying S&P 500 Dividend-Paying
Companies’ Dividend Yield1 Companies’ Payout Ratio2
4% 50%

3M
38.7%
40%
35.9%
3% Mean: 34.1%
33.7%
32.8%

Dividend Payout
2.4% 3M
Dividend Yield

30%
2.3% Mean: 2.1%
24.0%
2% 1.9% 1.8%
1.7%
20%

1%
10%

0% 0%
< 5% ≥ 5% and < ≥ 10% and < ≥ 15% < 5% ≥ 5% and < ≥ 10% and < ≥ 15%
10% 15% 10% 15%
Revenue Growth Revenue Growth
3
3
# Companies
# Companies 201 156 68 67
201 156 68 67
# Paying Div. 164 130 48 29
# Paying Div. 164 130 48 29
% Paying Div. 82% 83% 71% 43%
% Paying Div. 82% 83% 71% 43%

Source: FactSet. Based on data as of September 28,2007
Note: 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.

51
10/9/2007 1:14 PM© 3M 2007. All Rights Reserved.

Dividend Trends
S&P 500 Dividend-Paying S&P 500 Dividend-Paying
Companies’ Dividend Yield1 Companies’ Payout Ratio2
4% 50%

3M
38.7%
40%
35.9%
3% Mean: 34.1%
33.7%
32.8%

Dividend Payout
2.4% 3M
Dividend Yield

30%
2.3% Mean: 2.1%
24.0%
2% 1.9% 1.8%
1.7%
20%

1%
10%

0% 0%
< 5% ≥ 5% and < ≥ 10% and < ≥ 15% < 5% ≥ 5% and < ≥ 10% and < ≥ 15%
10% 15% 10% 15%
Revenue Growth Revenue Growth
3
3
# Companies
# Companies 201 156 68 67
201 156 68 67
# Paying Div. 164 130 48 29
# Paying Div. 164 130 48 29
% Paying Div. 82% 83% 71% 43%
% Paying Div. 82% 83% 71% 43%

Highly Competitive Yield … Above Peers & S&P500
Source: FactSet. Based on data as of September 28,2007
Note: 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.

52
10/9/2007 1:14 PM© 3M 2007. All Rights Reserved.

Share Repurchase

Early 2007 Today
Spreads wider, yield
Rates low, tight spreads,
Borrowing Costs curve steeper, markets
stable markets
uncertain
Credit Availability Highly Liquid Tighter

Economic Environment Relatively Stable Less Stable

P/E (2007 EPS Consensus) 7% Premium 17% Premium

Near-Term Economics Less Compelling;
More Importantly, Maintaining Flexibility for Growth
53

Cash Back to Shareholders
$2,500
For The Period 2001-1H07:
Stock Repurchases in Millions

$2,000

$11.7 billion in share
$1,500
repurchases
$1,000

$7.4 billion in dividends paid
$500

Dividend CAGR of ~8%
$0
2001 2002 2003 2004 2005 2006 1H07

No equity dilution policy
$1,600
Dividends in Millions

$1,200
Returned ~109% of
Reported Net Income
$800

Via Dividends and Share
$400
Repurchases
$0
2001 2002 2003 2004 2005 2006 1H07
54

Summary


We’ve Talked About Our Journey And Productivity…
Restructuring
Lean Six Sigma
Indirect Costs
Global Sourcing
Six Sigma
Value Creation

Supply Chain
Overhead Leverage
Service
Cost
Working Capital
Taxes
Big 3M
Brand Building
Service
Price Leakage

Growth

2001 2005 2008 2011
Margins* 15.8% 22.7% 22% to 23%
56

…Now Let’s Focus On Growth…
Enduring Franchises
Restructuring
Lean Six Sigma
Indirect Costs
EBOs
Global Sourcing
Six Sigma
Value Creation

Supply Chain
Capital Investments
Overhead Leverage
Service
Cost
Rebuilding R&D Emerging Markets
Working Capital
Supply Chain Re-engineering
Taxes
Entrepreneurial Localization
Culture
Big 3M
Brand Building M&A
Service
Price Leakage

Growth

2001 2005 2008 2011
Margins* 15.8% 22.7% 22% to 23%
57

Appendix


Non-GAAP Financial Measures
3M Company and Subsidiaries
SUPPLEMENTAL CONSOLIDATED INFORMATION
Year Year Year First Six
NON-GAAP FINANCIAL MEASURES
2001 2005 2006 Months 2007
(Millions, except per-share amounts)
Sales Change Percents:
(Unaudited)
Total Reported Sales Change -3.9% 5.8% 8.3% 7.1%
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles Less: Translation Impact -3.3% 0.7% 0.6% 2.5%
(GAAP), the Company also discusses non-GAAP measures that exclude special items. Sales, operating Total Reported Local-Currency Sales
income and diluted earnings per share measures that exclude special items and that exclude the impact of Change -0.6% 5.1% 7.7% 4.6%
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
Local Currency Sales Change ex-
operations. The company uses these non-GAAP measures to evaluate and manage the Company’s
Pharmaceuticals -1.1% 5.3% 8.1% 8.4%
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 The Company uses non-GAAP measures to focus on shareholder value creation. 3M uses Return on
and prior periods presented have been previously provided (See Note 1). In addition, the Company believes Invested Capital, defined as after-tax operating income divided by average operating capital. This measure
that providing financial results excluding the impact of Pharmaceuticals provides useful information (See excludes special items and the historical impacts of the Pharmaceuticals business (see Notes 1 and 2).
Note 2). The reconciliations provided below reconcile the non-GAAP financial measures with the most These measures are not recognized under U.S. generally accepted accounting principles and may not be
directly comparable GAAP financial measures for the periods indicated.
comparable to similarly titled measures used by other companies.

(Millions, except per-share amounts) 2001 2005 2006 Months 2007
Sales Dollars:
Reported GAAP $ 16,054 $ 21,167 $ 22,923 $ 12,079
2001 2005 2006 Months 2007
Pharmaceutical $ (699) $ (797) $ (774) $ -
Return on Invested Capital 12.8% 22.1% 25.3% 28.0%
Adjusted Non-GAAP $ 15,355 $ 20,370 $ 22,149 $ 12,079
Return on Invested Capital - excluding
Operating Income Dollars:
Reported GAAP $ 2,075 $ 4,854 $ 5,696 $ 3,498 Pharmaceuticals and Special Items 15.3% 21.9% 21.6% 22.7%
Special Items $ 504 $ (523) $ (675)
Pharmaceutical $ (157) $ (226) $ (256) $ -
Adjusted Non-GAAP $ 2,422 $ 4,628 $ 4,917 $ 2,823
(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
Diluted Earnings per Share:
Form 10-K filed March 11, 2002.
Reported GAAP $ 1.60 $ 3.98 $ 5.06 $ 3.10
Special Items $ 0.39 $ 0.14 $ (0.57) $ (0.60) (2) In December 2006 and January 2007, 3M completed the sale of its global branded Pharmaceuticals
Pharmaceutical $ (0.12) $ (0.20) $ (0.23) $ - business. In connection with these transactions, 3M’s Drug Delivery Systems Division became a
Adjusted Non-GAAP $ 1.87 $ 3.92 $ 4.26 $ 2.50 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
The Company uses local-currency sales growth, which excludes the impact of translation or currency business were not classified as discontinued operations. The sale of the branded Pharmaceuticals
exchange rates, as an indication of its economic sales growth. The Company has provided the components business impacted both sales and operating income growth in 2007, as significant Pharmaceuticals
of local-currency sales growth below, including the impact of translation. The Company has provided sales and income are in the reported base 2006 period and also in prior periods. Where indicated, to
local-currency sales growth that excludes the historical impacts of the Pharmaceuticals business to portray provide more meaningful trend information, portions of this presentation exclude the impact of 2006
what it believes are more meaningful sales growth trends. 3M believes this non-GAAP sales growth and prior Pharmaceutical financial results, as this business was sold in December 2006 and January
information excluding Pharmaceuticals provides useful information (See Note 2). These measures are not 2007.
in accordance with, nor are they a substitute for, GAAP measures.

59

Patrick D. Campbell, Senior Vice President and CFO

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