2019 First Quarter Business ReviewFX -$0.05 Pre-tax earnings impact of -$34M Tax rate* -$0.05 Adjusted Q1 2019 19.5% vs. Q1 2018 17.6% Shares outstanding +$0.09 Average diluted shares

2019 First Quarter Business Review

(Unaudited)

April 25, 2019

2. All Rights Reserved.26 April 2019© 3M

2019 Earnings Calls

Q2: July 25

Q3: October 24


Forward looking statementThis presentation contains forward-looking information about 3M's financial results and estimates and business prospects that involve substantial risks anduncertainties. You can identify these statements by the use of words such as "anticipate," "estimate," "expect," "aim," "project," "intend," "plan," "believe," "will,""should," "could," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performanceor business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory,capital markets and other external conditions and other factors beyond the Company's control, including natural and other disasters or climate change affecting theoperations of the Company or its customers and suppliers; (2) the Company's credit ratings and its cost of capital; (3) competitive conditions and customerpreferences; (4) foreign currency exchange rates and fluctuations in those rates; (5) the timing and market acceptance of new product offerings; (6) the availabilityand cost of purchased components, compounds, raw materials and energy (including oil and natural gas and their derivatives) due to shortages, increased demandor supply interruptions (including those caused by natural and other disasters and other events); (7) the impact of acquisitions, strategic alliances, divestitures, andother unusual events resulting from portfolio management actions and other evolving business strategies, and possible organizational restructuring; (8) operationalexecution, including scenarios where the Company generates fewer productivity improvements than estimated; (9) unanticipated problems or delays with thephased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information technologyinfrastructure; (10) financial market risks that may affect the Company’s funding obligations under defined benefit pension and postretirement plans; and (11) legalproceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's Annual Report on Form 10-Kfor the year ended Dec. 31, 2018, and any subsequent quarterly reports on Form 10-Q (the “Reports”). Changes in such assumptions or factors could producesignificantly different results. A further description of these factors is located in the Reports under "Cautionary Note Concerning Factors That May Affect FutureResults" and "Risk Factors" in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports). The information contained in thispresentation is as of the date indicated. The Company assumes no obligation to update any forward-looking statements contained in this presentation as a result ofnew information or future events or developments.

This presentation refers to certain non-GAAP financial measures including free cash flow, free cash flow conversion, return on invested capital (ROIC), and various measures that adjust for the impacts of significant litigation-related charges and enactment/measurement period adjustment to the accounting for the 2017 enactment of the Tax Cuts and Jobs Act (TCJA). These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the appendix to this presentation.

Note on non-GAAP financial measures


Today’s messages

• Disappointing start to the year

• Taking aggressive actions

• Litigation update

• Updating 2019 guidance

• Business group realignment


Q1 2019 summary

Sales of $7.9B, down 5.0% year-on-year

• Organic growth impacted by China, automotive, and

electronics end-market softness; channel inventory

adjustments, particularly industrial markets

GAAP EPS of $1.51 vs. $0.98 last year

Adjusted EPS of $2.23 vs. $2.50 last year

• Q1 2019 excludes significant litigation-related charges ($0.72)

• Q1 2018 excludes impacts from Tax Cuts and Jobs Act (TCJA) measurement adjustment ($0.36) and significant litigation-related charges ($1.16)

Adjusted operating income of $1.7B, down 11.6%, impacted by negative organic growth and weak productivity

Organic local-currency growth

Adjusted operating margin

Adjusted earnings per share

$2.23 -10.8% year-on-year

21.4%-1.6% year-on-year

-1.1%year-on-year


Restructuring and other actions

• Estimated reductions of 2,000 positions globally

• Pre-tax charge of approximately $150 million

• Annual pre-tax savings of $225 million to $250 million

• Savings of $100 million in remainder of 2019

• Stepped up focus on cash flow

• Targeted inventory reductions

• Trimming capex investments

• Accelerating indirect cost actions

• Continuing investments in growth

• Research and development

• Priority growth programs


PFAS and respirator litigation update

• Respiratory charge of $313 million, addresses the costs of resolving all current and expected

future coal mine dust lawsuits in Kentucky and West Virginia

• PFAS charge of $235 million, covers certain environmental matters and current litigation, in

which 3M is a defendant, related to the manufacture and disposal of PFAS-containing waste

• U.S.: Alabama, Illinois, Minnesota; Belgium and Germany

• Reserve does not include any product claims related to PFAS

• 3M takes seriously our responsibility to our customers, our employees, and the communities where we live and operate

• Core to our values is our longstanding commitment to responsible environmental stewardship of our products and to protecting natural resources

Q1 2019 total significant litigation-related charge of $548 million, or $0.72 per share


Updating 2019 planning estimates

Adjusted earnings per share

Organic local currency growth

Return on invested capital

Free cash flow conversion

Refer to appendix for the definition and calculation of ROIC and free cash flow conversion

-1% to 2% $9.25 to $9.75

20% to 22%

95% to 105%

Sales components:

• Organic local-currency growth -1% to 2%

• Acquisitions, net of divestitures neutral

• Foreign currency translation -1%

Adjusted Earnings Per Share:

• Includes restructuring charges of approximately $0.20 per share

• Includes estimated benefit from restructuring of $0.13 per share

• Excludes Q1 2019 significant litigation-related charges of $0.72 per share

Capital allocation:

• Capex of $1.6B to $1.7B

• Share repurchase: $2B to $4B


Organic local-currency growth by area:

• U.S. -0.4%

• Asia Pacific -3.6%

China/Hong Kong -4.3%

Japan -7.0%

• Europe/Middle East/Africa +0.7%

• Latin America/Canada +0.8%

Canada +1.4%

Brazil +4.1%

Mexico +0.5%

Foreign-currency translation:

• Euro -8%, RMB -6%, Yen -3%, Real -15%

Q1 2019 sales recap(year-on-year)

Net sales

Organic-local currency growth

Acquisitions/Divestitures

-0.5%year-on-year

-1.1%year-on-yearvolume -2.0%, price +0.9%

Foreign currencytranslation

-3.4%year-on-year

$7.9B-5.0% year-on-year


Q1 2019 P&L

Q1 2018 12.2%

Significant litigation-related charge

+10.8% $897M charge

Q1 2018 adjusted 23.0%

Organic volume/ productivity and other

-1.8%Organic volume -2% and weak productivity

Acquisitions/divestitures

-0.4%M*Modal acquisition; lower divestiture gains and divested income

Price/raw material +0.3%Selling price benefits net of higher raw materials

FX +0.3% Net of hedge impact

Q1 2019 adjusted 21.4%

Significant litigation-related charges

-7.0% $548M charge

Q1 2019 14.4%

Operating income margin reconciliation:

Net sales

Adjusted operating income


Adjusted net income




Q1 2019 EPS

+9.0%

Q1 2018 GAAP EPS $0.98

TCJA adjustment +$0.36 Measurement period adjustment of $217M

Significant litigation-related charge +$1.16 $897M charge

Q1 2018 adjusted EPS $2.50

Organic growth/productivity/other -$0.19 Negative organic growth and weak productivity

Acquisitions/divestitures -$0.07M*Modal acquisition (-$0.04); lower divestiture gains and divested income (-$0.03)

FX -$0.05 Pre-tax earnings impact of -$34M

Tax rate* -$0.05 Adjusted Q1 2019 19.5% vs. Q1 2018 17.6%

Shares outstanding +$0.09 Average diluted shares down -3.9%

Q1 2019 adjusted EPS $2.23

Significant litigation-related charges -$0.72 $548M charge

Q1 2019 GAAP EPS $1.51

$2.23-10.8% year-on-year

*The effect of income taxes on items that had specific tax rates are reflected within their respective impacts in the table above.

Adjusted earnings per share:


Q1 2019 cash flow

Free cash flow

Dividends

Gross sharerepurchases

$657M

Free cash flow of $657M

Free cash flow conversion of +74%

• +24 ppt benefit from significant litigation-related charges

Capital expenditures:

• Q1 2019: $391M, up $87M year-on-year

• FY 2019: $1.6B to $1.7B vs. $1.7B to $1.9B previously

Returned $1.5B to shareholders via dividends and gross share repurchases in Q1

• FY 2019 gross share repurchases: $2B to $4B

$830M

$701M


Q1 Business Group performanceSalesOrganicgrowth

Operating Margin

change

Commentary

Industrial$2.9B

-2.8%

20.0%-280 bps

• Organic sales increased in advanced materials; declined in industrial adhesives and tapes, automotive aftermarket, separation and purification, abrasives, closure and masking, and automotive and aerospace

• Operating margins impacted by sales decline and weak productivity, particularly in APAC and U.S.

Safety & Graphics

$1.7B-0.1%

23.2%-380 bps

• Organic sales increased in personal safety; declined in commercial solutions, transportation safety, and roofing granules

• Operating margins impacted by flat sales, weak productivity (particularly in APAC and U.S.), and Q1 2018 divestiture gain (-110 bps)

Health Care

$1.5B+0.7%

28.1%-170 bps

• Organic sales growth led by food safety, health information systems, and medical solutions; drug delivery declined double digits, negatively impacting overall Health Care growth by nearly 2 ppts

• Operating margins impacted by M*Modal acquisition by -230 bps

Electronics & Energy

$1.2B-3.0%

23.8%-110 bps

• Energy-related sales grew 5 percent organically; electronics-related sales down 6 percent with declines in both display materials and systems and electronics materials solutions

• Electronics-related growth impacted by soft consumer electronics and factory automation end-market demand, and channel inventory adjustments

Consumer$1.1B+0.9%

19.5%+30 bps

• Organic sales increased in home improvement; declined in home care, and consumer health care

• U.S. grew 3 percent with similar point-of-sale growth; EMEA declined 1 percent impacted by continued portfolio management; APAC down 3 percent impacted by lower demand for respiratory solutions

. All Rights Reserved.26 April 2019© 3M 14

Aligning businesses to customers and markets

IndustrialHealth Care ConsumerSafety & Graphics Electronics & Energy

Health Care ConsumerSafety & Industrial Transportation & Electronics

FROM

TO


2019 organic local-currency growth expectations

By Business Group

Health Care ConsumerSafety & Industrial Transportation & Electronics

2% to 4% 1% to 3%-1% to 2% -3% to 0%

Organic local-currency = organic volume + price

Total 3M: -1% to 2%


Q&A Participants

Nick GangestadSenior Vice President and

Chief Financial Officer

Mike RomanChief Executive Officer

Bruce JermelandVice President, Investor

Relations

Appendix


Q1 2019 P&L

($M)Q1

2018Q1

2019 Change

Sales $8,278 $7,863 -5.0%

Gross profit $4,042 $3,553 -12.1%

% to sales 48.9% 45.2% -3.7 pts

SG&A $2,573 $1,948 -24.3%

% to sales 31.1% 24.8% -6.3 pts

R&D & related $486 $477 -1.8%

% to sales 5.9% 6.1% +0.2 pts

Gain on sale of businesses ($24) ($8) -66.7%

% to sales (-0.3%) (0.1%) (-0.2 pts)

Operating income $1,007 $1,136 +12.8%

% to sales 12.2% 14.4% +2.2 pts

Net income $602 $891 +48.0%

GAAP earnings per share $0.98 $1.51 +54.1%


Q1 2019 sales recap

U.S. APAC EMEA LAC

Organic volume -1.2% -4.3% -0.7% -0.3%

Price +0.8% +0.7% +1.4% +1.1%

Organic local-currency -0.4% -3.6% +0.7% +0.8%

Acquisitions/Divestitures +0.5% -0.3% -2.3% -1.1%

FX ---- -3.5% -7.8% -6.2%

Total growth +0.1% -7.4% -9.4% -6.5%


Business segment information

($M) Net Sales Q1 2019 Sales GrowthOrganic local-currency

by Geographic Area Operating IncomeOperating

Margin

Business groups Q1

2018Q1

2019

Organic local-

currency FX M&A

TotalSales

changeUnited States

Asia Pacific LA/C EMEA

Q12018

Q12019

Percentchange

Q12018

Q12019

Industrial $3,135 $2,929 -2.8% -3.7% -0.1% -6.6% -2% -8% 1% 1% $714 $585 -18.0% 22.8% 20.0%

Safety & Graphics $1,779 $1,704 -0.1% -4.0% -0.1% -4.2% -3% Flat 2% 2% $481 $396 -17.7% 27.0% 23.2%

Health Care $1,535 $1,540 0.7% -3.6% 3.2% 0.3% -3% 7% Flat 3% $458 $432 -5.6% 29.8% 28.1%

Electronics & Energy

$1,350 $1,190 -3.0% -2.2% -6.6% -11.8% 2% -5% -1% Flat $336 $284 -15.6% 24.9% 23.8%

Consumer $1,145 $1,123 0.9% -2.8% 0.0% -1.9% 3% -3% -2% -1% $220 $219 -0.7% 19.2% 19.5%

Corporate and Unallocated

--- $21 ($1,037) ($624)

Elimination of Dual Credit

($666) ($644) ($165) ($156)

Total $8,278 $7,863 -1.1% -3.4% -0.5% -5.0% -0.4% -3.6% 0.8% 0.7% $1,007 $1,136 12.8% 12.2% 14.4%

Effective first quarter of 2019, 3M made certain business segment reporting changes. Those changes are reflected in the segment reporting data above. Refer to 3M’s April 25, 2019 press release for full details.

Organic local-currency = organic volume + price


Sales by division($M) Net Sales

Business groups Q1 2018 Q1 2019

Abrasives 473 433

Adhesives and Tapes 842 807

Advanced Materials 304 312

Automotive and Aerospace 556 500

Automotive Aftermarket 419 390

Closure and Masking Systems 307 278

Separation and Purification 235 214

Other Industrial (1) (5)

Total Industrial Business Group 3,135 2,929

Commercial Solutions 485 458

Personal Safety 957 939

Roofing Granules 101 92

Transportation Safety 237 217

Other Safety and Graphics (1) (2)

Total Safety and Graphics Business Group 1,779 1,704

($M) Net Sales

Business groups Q1 2018 Q1 2019

Drug Delivery 119 92

Food Safety 81 83

Health Information Systems 205 260

Medical Consumables 777 764

Oral Care 354 341

Other Health Care (1) ---

Total Health Care Business Group 1,535 1,540

Electronics 930 863

Energy 420 330

Other Electronics and Energy --- (3)

Total Electronics and Energy 1,350 1,190

Consumer Health Care 102 98

Home Care 269 258

Home Improvement 458 462

Stationery and Office 303 294

Other Consumer 13 11

Total Consumer Business Group 1,145 1,123

Corporate and Unallocated --- 21

Elimination of Dual Credit (666) (664)

Total 8,278 7,863


Reconciliation of GAAP amounts to adjusted amounts

Q1 2018 Q1 2019

($M, except EPS) GAAP

Significant Litigation-

Related Charges

TCJA measurement

adjustment Adjusted GAAP

Significant Litigation-

Related Charges Adjusted

Net sales $8,278 $8,278 $7,863 $7,863

Operating income $1,007 $897 $1,904 $1,136 $548 $1,684

Operating income margin

12.2% 23.0% 14.4% 21.4%

Income before taxes $965 $897 $1,862 $1,088 $548 $1,636

Provision for income taxes

$359 $187 (217) $329 $195 $124 $319

Effective tax rate 37.2% 17.6% 17.9% 19.5%

Net income $602 $710 $217 $1,529 $891 $424 $1,315

Earnings per share $0.98 $1.16 $0.36 $2.50 $1.51 $0.72 $2.23

% Change +54.1% -10.8%


Estimated Full Year 2019

($B, except EPS) GAAP Measure

Significant litigation-related

chargesAdjusted Non-GAAP measure

Income before taxes $6.4 to $6.6 $0.5 $6.9 to $7.1

Provision for income taxes $1.3 to $1.4 $0.1 $1.4 to $1.5

Effective tax rate 20.0% to 22.0% 20.0% to 22.0%

Net income attributable to 3M $5.0 to $5.3 $0.4 $5.4 to $5.7

Earnings per diluted share $8.53 to $9.03 $0.72 $9.25 to $9.75

In the first quarter of 2019, the Company recorded significant litigation-related charges of $548 million ($424 million after tax) related to historical PFAS (certain perfluorinated compounds) manufacturing operations and coal mine dust respirator mask lawsuits. In the first quarter of 2018, the Company recorded significant litigation-related charges of $897 million ($710 million after tax) from the previously disclosed agreement reached with the State of Minnesota that resolved the Natural Resource Damages (NRD) lawsuit. Also during the first quarter of 2018, 3M recorded a tax expense of $217 million related to a measurement period adjustment to the provisional amounts recorded in December 2017 from the enactment of the Tax Cuts and Jobs Act (TCJA).

In addition to providing financial results in accordance with U.S. GAAP, the Company also provides non-GAAP measures that adjust for the impacts of significant litigation-related charges and enactment/measurement period adjustments to the impact of the enactment of the TCJA. These items represent significant charges/benefits that impacted the Company’s financial results. Operating income, operating income margin, effective tax rate, net income, and earnings per share are all measures for which 3M provides the GAAP measure and an adjusted measure. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures. The Company considers these non-GAAP measures in evaluating and managing the Company’s operations. The Company believes that discussion of results adjusted for these items is meaningful to investors as it provides a useful analysis of ongoing underlying operating trends. The determination of these items may not be comparable to similarly titled measures used by other companies.

Reconciliation of GAAP amounts to adjusted amounts (continued)


Reconciliation of GAAP amounts to free cash flow conversion

First-quarter 2019 results:

($M)Q1

2018Q1

2019 Change

Major GAAP cash flow categories:

Operating cash flow $143 $1,048 $905

Investing cash flow $281 ($1,225) ($1,506)

Financing cash flow $46 $258 $212

Free cash flow (non-GAAP measure):

Operating cash flow $143 $1,048 $905

Purchases of property, plant and equipment ($304) ($391) ($87)

Free cash flow ($161) $657 $818

Net income attributable to 3M $602 $891 $289

Free cash flow conversion (27%) 74% +101 pts

Free cash flow and free cash flow conversion are not defined under U.S. generally accepted accounting principles (GAAP). Therefore, they should not be considered asubstitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. TheCompany defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. It should not be inferred that the entire freecash flow is available for discretionary expenditures. The Company defines free cash flow conversion as free cash flow divided by net income attributable to 3M. TheCompany believes free cash flow and free cash flow conversion are meaningful to investors as they function as useful measures of performance and the Company uses thesemeasures as an indication of the strength of the Company and its ability to generate cash.

Full-year 2019 forecast:

($B)

Year 2019 Planning Estimate

Free cash flow (non-GAAP measure):

Operating cash flow $6.4 to $7.2

Purchases of property, plant and equipment ($1.6 to $1.7)

Free cash flow $4.7 to $5.6

Net income attributable to 3M $5.0 to $5.3

Free cash flow conversion 95% to 105%


Reconciliation of GAAP amounts to return on invested capital

Return on Invested Capital (ROIC) is not defined under U.S. generally accepted accounting principles. Therefore, ROIC should not be considered a substitute for other measures prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. The Company defines ROIC as adjusted net income (net income including non-controlling interest plus after-tax interest expense) divided by average invested capital (equity plus debt). The Company believes ROIC is meaningful to investors as it focuses on shareholder value creation.

Full-year 2018 results:

($B)Year 2018

Results

Return on invested capital (non-GAAP measure):

Net income including non-controlling interest $5.4

Interest expense (after-tax)* $0.2

Adjusted net income (return) $5.6

Ave. shareholder’s equity (including non-controlling interest) $10.4

Ave. short-term and long-term debt $14.9

Ave. invested capital $25.3

Return on invested capital 22%

*Effective income tax rate used for interest expense 23.4%

Full-year 2019 forecast:

($B)

Year 2019 Planning Estimate

Return on invested capital (non-GAAP measure):

Net income including non-controlling interest $5.0 to $5.3

Interest expense (after-tax)** $0.3

Adjusted net income (return) $5.3 to $5.6

Ave. shareholder’s equity (including non-controlling interest) $9.0 to $10.0

Ave. short-term and long-term debt $16.0 to $17.0

Ave. invested capital $25.0 to $27.0

Return on invested capital 20% to 22%

**Effective income tax rate used for interest expense 20% to 22%

Documents

2019 First Quarter Business ReviewFX -$0.05 Pre-tax earnings impact of -$34M Tax rate* -$0.05 Adjusted Q1 2019 19.5% vs. Q1 2018 17.6% Shares outstanding +$0.09 Average diluted shares