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3M Innovation Story

© 3M 2011. All Rights Reserved.

3M Innovation StoryDr Chris Howitt, Head of Research & Development3M Poland, Central & East Europe

Research & Innovation in Restructuring and Increasing Competitiveness of Polish CompaniesWarszawa 29th March 2012

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3M Innovation Story

© 3M 2011. All Rights Reserved.

Company OverviewSix Market-Leading Businesses Sales: $29.611 B

Net income: $4.283 B R&D investment $1.570 B

(5.3% to sales) International sales $19.583 B

(66% of company total) Companies in 65 countries Sales in nearly 200 countries ~ 84,000 employees ~ 7,900 researchers

3800 in the USA Operations in 35 countries

have laboratories 40 international countries with

manufacturing operations Patents awarded – USA 514 ;

Total 2673 46 Technology Platforms

Safety, Security & Protection Services

Consumer & Office

Display & Graphics

Health CareElectro & Communication

Industrial & Transportation

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3M Innovation Story

© 3M 2011. All Rights Reserved.

Our Vision

3M Technology Advancing Every Company3M Products Enhancing Every Home3M Innovation Improving Every Life

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3M Innovation Story

© 3M 2011. All Rights Reserved.

Innovation will always be 3M’s heart and soul, and our approach will remain technological differentiation applied across multiple businesses.

““

Sir George Buckley, 2011Chairman of the Board

Innovation Culture

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3M Innovation Story

© 3M 2011. All Rights Reserved.

Technology at 3M is Owned and Leveraged by All

46 Technology Platforms Intellectual property

belongs to 3M, not a single business

Businesses combine multiple platforms to build unique product solutions

Lab operations in 35 countries

30 Customer Technology Centers around the world

In 2011, 80% our IP generated outside US

Shared Technology Is The Heart of New Product Innovation

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3M Innovation Story

© 3M 2011. All Rights Reserved.

3M Innovation Model

Abrasives

Adhesives

Ceramics

Electronics, Software

Films

Microreplication

Nanotechnology

Non-wovens

Precision Coating

Vapor Processing

Architecture & Construction

Consumer & Office

Display

Electronics

Filtration

Health Care

Renewable Energy

Safety & Security

Telecoms and Utilities

Water Infrastructure

Doing Things Only 3M Can Do

Technology Platforms Markets

OpportunityDrives

Development and Utilization

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3M Innovation Story

© 3M 2011. All Rights Reserved.

Transforming Technology into Consumer Brands

Technology is “Consumerized” into Brands

Pressure-Sensitive andMicrosphere Adhesives

Non-Wovens

Abrasives

Filtration

Films

Precision Coating

Fluoropolymers

Colloid Science

Air Quality Products

PRODUCTS

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3M Innovation Story

© 3M 2011. All Rights Reserved.

Developing Cutting-Edge Technology

Connecting to Customers

Driving Growth Through Innovation

Connecting Technology to Customers…Anywhere and Everywhere

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3M Innovation Story

© 3M 2011. All Rights Reserved.

How does 3M deliver products customers want ?

Two-tone cars were in demand …

3Mer Dick Drew observed this dilemma in action while visiting customers to sell sandpaper …

… but a clean paint line was very hard to achieve.

1925

… and he remembered some stuff he’d seen in the laboratory…

… and went on to invent 3M Scotch Masking Tape

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3M Innovation Story

© 3M 2011. All Rights Reserved.

Submicron Replicationfor Microneedles andLight Management

Transparent/ConductiveElectrode & EMI Shield Auto-stereoscopic

3D Films

Acoustic Films

Li Ion BatteryComponents

Membrane Adsorbers(biotherapeutic purification)

Nanogold Catalystsfor Personal Protection

Ultra Vapor-Barrier Filmsfor Solar/Display Screens

Mirror Filmsfor Solar

ACCR

• Quick one for one replacement on existing towers

• 2X to 3X more power with same diameter cable

• Eliminates needs for new rights-of-way

• Long span crossings

3M Composite Conductor for High Performance Power Lines

Renewable Materials

Visual AttentionManagement

Digital Dentistry High-PerformanceNanoparticle Composites

Innovative NPI

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3M Innovation Story

© 3M 2011. All Rights Reserved.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

NPVI = New product vitality index (products introduced within the past five years, divided by total sales)

Our Primary Innovation Metric is NPVIGrowth Through Innovation

Year 1 New Product Sales

New Product Sales / Total

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3M Innovation Story

© 3M 2011. All Rights Reserved.

3M’s Global Reach

Mexico

Brazil

Colombia

Venezuela

Argentina

Chile

Costa Rica

El Salvador

Panama

Ecuador

Peru

Uruguay

Guatemala

Italy

France

UK

Turkey

Spain

Belgium

Netherlands

Portugal

Greece

Morocco

Canada

Jamaica

Dominican Republic

Puerto Rico

Trinidad & Tobago

Sweden

Poland

Czech Republic

Norway

Germany

Lithuania

Latvia

Finland

Estonia

Switzerland

Austria

Hungry

Romania

Ukraine

Kazakhstan

Russia

Japan

China

Taiwan

Vietnam Thailand

Singapore

New Zealand

Indonesia

Hong Kong

Korea

Philippines

India

Israel

Egypt

Pakistan

UAE

Kenya

Australia

Malaysia

Sri LankaSouth Africa

Denmark

United States

Key

Sales & Marketing

Manufacturing/ConvertingTechnical Capabilities

Just around the corner. All around the world.

67 Countries

85 Laboratories

30 CTCs

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3M Innovation Story

© 3M 2011. All Rights Reserved.

3M’s Annual Event – 2,800 participants

The Spring Technology Symposium – 1,000 participants

Carlton Awards Symposium – 500 participants

Inventor Recognition Ceremony – 1,000 participants

Circle of Technical Excellence & Innovation – 6,000 participants

Virtual Technology Information Exchange – 500 participants

Hundreds of Chapter Events – sometimes as few as half dozen experts meeting on specialized topics such as dynamic molecular modeling

800+ Technical Forum Events Globally

Innovating Around the Globe – A Connected Global Collaboration Community

10,000+ member "grass roots" technical organization

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3M Innovation Story

© 3M 2011. All Rights Reserved.

3M’s Worldwide Technical Community The 3M Tech Forum – Our Purpose and Mission

Uphold 3M Values

15% CultureExternal Technology Transfer

Technical Communication &

Networking

LeadershipDevelopment

IR&S TechnicalEducationVoice of the Technical Community

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3M Innovation Story

© 3M 2011. All Rights Reserved.

3M Innovation is driven by a system of principles,

practices and infrastructure that harness the chain reaction

of new ideas.

3M Innovation is Planned, Purposeful and Global

Technical ForumsGlobal Labs Customer Tech Centers

Culture of Collaboration No IP Barrierse-Connectivity15% Culture

Leveraged Capabilities Shared Technologies

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3M Innovation Story

© 3M 2011. All Rights Reserved.

Innovation Around the Globe – Connecting 3M PolandDiverse Solutions Meeting Local Needs

• Very significant R&D and manufacturing capability

• Manufacturing in Poland for 10 years

• A highly educated (and enthusiastic !) workforce

• Diverse population (70% R&D employees are female)

• Strong links to local Universities

2011 Marked 20 Years of 3M in Poland

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3M Innovation Story

© 3M 2011. All Rights Reserved.

The Bottom Line

Research is the transformation

of money into knowledge.“ “Innovation is the transformation

of knowledge into money.“ “