Brad T. Sauer, Executive Vice President, Health Care

3M Health Care Business

3M Investor Day – October 9, 2007Health Care Business Health Care Business –– Investor UpdateInvestor Update

Brad T. Sauer, Executive Vice PresidentBrad T. Sauer, Executive Vice President

11-Oct-07 © 3M 2007 All Rights Reserved.


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Health Care Market is Global, Steady and GrowingHealth Care Market is Global, Steady and Growing2001-06 CAGRWW Health Care Spending

$US billions

2,2931,497

1,318

764

462

397

588

299

2,957

2001

4,661

2006

Developing markets*Developed Asia

Western Europe

North America

*Latin America, Eastern Europe, developing Asia and Africa

8.9%

11.5%

3.1%

14.5%

9.5% Growth Drivers• Aging population• Rising middle class indeveloping regions

• Increasing cost of care, need for innovation

• U.S. presidential order: Quality of care and pricingtransparency

• Demand for aestheticsolutions in oral care

• Drug-resistant pathogens increasing

• Food safety is a growing, global concern

Growth Drivers• Aging population• Rising middle class indeveloping regions

• Increasing cost of care, need for innovation

• U.S. presidential order: Quality of care and pricingtransparency

• Demand for aestheticsolutions in oral care

• Drug-resistant pathogens increasing

• Food safety is a growing, global concern



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$779 $888 $916

$448 $546

2004 2005 2006 1H06 1H07

$2,963 $3,237

$1,576 $1,950$2,803

2004 2005 2006 1H06 1H07

Europe 34%

APAC 12%LAC 7%

U.S. 47%

Sales

LC% 2.9% 5.3% 8.5% 19.9%*

2006 Sales by Geography

Organic LC% has accelerated for five consecutive quarters

Portfolio repositioned to focus on higher-growth opportunities

Operating in attractive segments with strong underlying fundamentals

Highlights

1

2

3

+7% +6% +9%

+24%

*Excludes Pharma and special items in all periods. 1H07 includes 4.9% of local currency growth due to Pharma supply agreements. Refer to appendix for complete reconciliation.

Operating Income

($ millions)(YOY % Change)

OI % 27.8% 30.0% 28.3% 28.0%

+13%+14% +3%

+22%

7.5%

28.4%

Health Care Financials*Health Care Financials*



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Dental &Orthodontics

Health Care Portfolio Reconfiguration Health Care Portfolio Reconfiguration –– 2006 2006

Medical Pharma

DivestedFocused Portfolio Of StrengthIncrease R&D For New ProductsExpand Sales CoveragePenetrate Developing CountriesSynergistic Acquisitions

InvestmentRedirection

DrugDeliverySystems

HealthInformation

Systems



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MedicalMedical

Assessment & TherapyElectrodes & PlatesAuscultation (Scopes)Immobilization

Infection PreventionAsepsis (Drapes)Preps & DisinfectionSterilization

Skin & Wound – Acute Care Tapes & SecuralSkin Closure

Skin & Wound – Chronic CareSkin Care & ProtectionWound Care



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Oral CareOral Care

Filtek™ Supreme Composite Filling Materials

Imprint™ 3Impression Materials

Protemp™ 3Temporization Materials

Lava™ Frame and RestorationLava™ CAD/CAM System

SmartClip™ Self-Ligating Bracket

Clarity™ SL Bracket

Clinpro™ SealantPreventive Treatment



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Drug Delivery SystemsDrug Delivery SystemsLeveraging 3M Technologies and Manufacturing ProcessesLeveraging 3M Technologies and Manufacturing Processes



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Medical Record Assessment

Document CreationDocument Creation HIM (Medical Records) ProcessingHIM (Medical Records) Processing Document ReviewDocument Review

Transcription Mobile Dictation

Document Imaging/Scanning

Provides a front end solution for capturing data

Coding & Grouping

Abstracting

Enhances productivity and drives reimbursement

Provide storage and document management capabilities

Storage Release of Info.

Document Management

Health Information SystemsHealth Information SystemsPatient

Hospital CarePatient Record Post-Discharge Billing Codes

Payment Accuracy, Compliance & TimingDocument

CreationHIM

ProcessingDocument

Review



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Food Processing SafetyFood Processing Safety

3M Tecra™ E.coli VisualImmunoassay Test

3M Petrifilm™ Plates3M™ Uni-Lite ATP

Luminometer

3M Petrifilm™Plate Reader

3M™ Clean-Trace ATP Swab

End Product Screening Systems

3M™ Quick Swabs



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Strong PortfolioStrong Portfolio

Diverse, Steady, Growing and ProfitableDiverse, Steady, Growing and Profitable

Systems Systems Safety

Diagnostics Digital Dry Powder Quality Care PathogenAdvanced Preventive Microneedles Patient Financial DetectionWound Care Self-Ligating Services HygieneChronic Care Monitoring

Dressings Restoratives Transdermal Coding & IndicatorsAcute Care Prosthodontics Inhalers ReimbursementMed Spec Bands & TubesInfectionPrevention

Faster Growth (10%+)

Steady Growth (5-7%)

Medical

HCB

FoodOral Care Drug Delivery Health Info.



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Health Care Business Growth StrategyHealth Care Business Growth Strategy

Grow the CurrentCore Business

Build NewBusinesses

Acquisitions InternationalGrowth

• High-ImpactNew Products

• Sales Coverage

• Bolt-ons- Technology- Capabilities

• Mid-Tier• International

• Digital Oral Care• Preventive Oral Care• Medical Diagnostics• Food Processing Safety• Microneedles• Dry Powder Inhalation• Patient Financial Services

• Sales Coverage• Appropriate Products• More LocalizedSupply Chains

GrowthStrategy



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Build NewBusinesses



• Sales Coverage





GrowthStrategy



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Clarity™ SL Bracket SmartClip™ BracketImprint™ 3 VPSImpressioning Material

High Impact New ProductsHigh Impact New Products

Lava™ Scan STScanner

Filtek™ Supreme PlusUniversal & Flowable

Restoratives

Protemp™ Crown Temporization MaterialLava™ Milling Unit

Adper™ Scotchbond™Self-Etch Adhesive



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High Impact New ProductsHigh Impact New Products

Advanced Tegaderm™CHG Dressing

Littmann™ Electronic Stethoscopes

Dose-Count Inhaler

BacLite™ RapidMRSA Test

Advanced Chronic Wound Dressing

Healthcare Document Management Systems

Coban™ 2 LayerCompression System

Ioban™ 2 FrameDelivery



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Build NewBusinesses



• Sales Coverage





GrowthStrategy



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Acquisitions: Supplementing Organic Growth Acquisitions: Supplementing Organic Growth

Steri-StripTM SWound Closure

OMNI Oral PharmaceuticalsPreventive Dentistry

SBG GmbHCoding & Grouping

BiotraceFood Testing

SoftMedEnd-to-End Health Info Mgmt

Response Biomedical (partnership)Microbial Diagnostic Platform

Brontes TechnologiesDigital Oral Care

LingualCare iBraces™“Invisible” Brackets

Peridex® Oral RinsePreventive Dentistry

Acolyte Biomedica Ltd.Rapid Pathogen Detection

DMS – ChileSurgical Drapes & Gowns

Neoplast - ThailandTapes & Dressings

Abzil - BrazilOrtho Brackets



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Build NewBusinesses



• Sales Coverage





GrowthStrategy



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Pour Plaster Model Trim, Pin, and Cut Model

Wax Buildup and Sprue Cast, Grind, and Polish Porcelain Veneer

Conventional Impression

Dental Dental –– Traditional Impression & Crown ProcessTraditional Impression & Crown Process



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LavaLava™™ ChairsideChairside Oral ScannerOral Scanner

Technology Obtained via Brontes AcquisitionTechnology Obtained via Brontes Acquisition

“Digital Impressions”



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Digital Workflow for Oral CareDigital Workflow for Oral Care

Prosthodontics

Model Production Crown / BridgeCAD/CAM

Custom AppliancesCustom DesignVirtual Model

Orthodontics

Custom DesignVirtual Model Digital Appliances



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The Problem

New Business Opportunity: Medical DiagnosticsNew Business Opportunity: Medical Diagnostics

Infectious diseases a global threat:

- MRSA - TB- Staph aureus - VRE- Flu A/B - C difficile

Cost of infectious diseases in US alone:

- 100,000 Lives per year- $6.2 Billion per year

Current screening methods are too slow, ineffectiveU.K., other parts of Europe already setting standards

Patient at hospital screened for infectious diseases

Goal: Help prevent spread and risk of infection(Example: MRSA)

Lab Test

CultureSlow, Labor intensive

Results: 2-3 days

Traditional Method

3M™ BacLite™(Approved in Europe: MRSA)

Results: 5 hours

3M Solution



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Drug-Coated Microneedles

Microneedles3M microreplication technology

Microneedles for Transdermal Drug DeliveryMicroneedles for Transdermal Drug Delivery

Hollow MicroneedlesFor controlled delivery of larger doses

Patch - Low Pain & Convenient

“Patches Instead of Injections”



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Build NewBusinesses



• Sales Coverage





GrowthStrategy



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Rapidly Growing in International MarketsRapidly Growing in International Markets3M Health Care Revenues

DevelopedCountries*

*U.S., Canada, Western Europe, Japan, Australia, New Zealand

DevelopingCountries

Expanded salescoverage

New productstailored to market needs

Local manufacturing

2006 Local Currency Growth:

Turkey 35%India 30%Russia 29%Gulf 25%China 22%Argentina 21%Thailand 21%Malaysia 19%Venezuela 18%Korea 15%



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3

1530A-0 Hypoallergenic

Rol ls Size12.5mm x 9.1 m1/2 inch x 1 0yd2 4

Microporous Surgical Tape

3

1530A-0 Hypoallergenic

Rol ls Size12.5mm x 9.1 m1/2 inch x 1 0yd2 4

Microporous Surgical Tape

Tian Tu (Second Way) China Brand

Tier 2 Dressing

Tier 2 Paper Tape

Regional Localization Hand Hygiene

Korean Hand Hygiene Line

Brasil IV Fix Dressing

Localized Electrodes

Tier 2 DrapesCleaning & Disinfecting

International: Products for Local NeedsInternational: Products for Local Needs



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New 3M Health Care Plant in ChinaNew 3M Health Care Plant in China

On Schedule for 2008 Start-upOn Schedule for 2008 Start-up



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International Health Care AcquisitionsInternational Health Care AcquisitionsDMS Chile S.A. – A leading manufacturer of surgical packs, drapes and gowns. Based in Santiago, covers Latin America.Neoplast Co. Ltd. – Manufacturer of surgical tapes, dressings, first aid products. Based in Thailand, adds regional capacity.Abzil Industria e Comercio Ltda. – Second largest orthodontic products maker in Brazil. Expands our regional presence and manufacturing capabilities.

Boosting Our International CapabilitiesBoosting Our International Capabilities



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Health Care Business StrategyHealth Care Business Strategy


Build NewBusinesses



• Sales Coverage





GrowthStrategy

Operational Excellence• Lean Six Sigma• Sourcing

• Supply Chain Performance• Productivity

• Quality• Customer Service



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Accelerating Growth, Maintaining Premium Returns*Accelerating Growth, Maintaining Premium Returns*

Oper

atin

g In

com

e Mar

gin

Loca

l Cur

renc

y Gro

wth

Rate

24.6%

26.4% 26.4%

27.8%

30.0%

28.3% 28.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2001 2002 2003 2004 2005 2006 1H200720%

22%

24%

26%

28%

30%

*Unaudited. Total Health Care without Pharma and Pharma Supply Agreement1H07 with Pharma Supply Agreement: LC Growth = 19.9%, O.I. = 28.0%.

Organic



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Health Care Business Health Care Business –– SummarySummary

Oral CareMedical

FoodProcessing

Safety

Drug DeliverySystems

HealthInformation

Systems

Strong PortfolioStrong Portfolio


Build NewBusinesses


Accelerating Profitable GrowthAccelerating Profitable Growth

Well-Positioned for 8%+ Top-Line Growth at Premium MarginsWell-Positioned for 8%+ Top-Line Growth at Premium Margins


AppendixAppendix



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Health Care Financials*- Appendix

$779 $888 $916

$448 $546

$194$226 $256

$120

2004 2005 2006 1H06 1H07

$2,803 $2,963 $3,237

$1,576 $1,950

$797 $774

$390

$793

2004 2005 2006 1H06 1H07

Pharma

Europe 34%

APAC 12%LAC 7%

U.S. 47%

Sales

2006 Sales by Geography

Highlights+5% +5% +7%

-1%

*Includes Pharma in all periods; excludes special items.

Operating Income

($ millions)(YOY % Change)

0.6% 4.2% 6.0% -4.6%LC%

OI % 27.0% 29.6% 29.2% 28.0%

+7%+15% +5%

-4%

4.6%

28.9%

1

2

3

Organic LC% has accelerated for five consecutive quarters

Portfolio repositioned to focus on profitable opportunities

Operating in high growth segments with strong underlying fundamentals

Economy & Finance

Brad T. Sauer, Executive Vice President, Health Care