Innovate, Grow, Deliver - Stiles Machinery...more than 7,400 3P projects. Cut volatile organic air emissions 95%. In 2009 again, received the ENERGY STAR Sustained Excellence Award

© 3M 2006 All Rights Reserved

Innovate, Grow, Deliver

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3M Abrasives Products

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Welcome

“Igniting the spark of innovation”

3M believes that if you can imagine and experience innovation, then you can do it.

© 3M 2011. All Rights Reserved.

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The 3M Innovation Machine Is Back !!

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The Most Innovative Companies Annual Survey--2010

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Today

a $26.7 billiondiversified technology

CompanyTHAT’S GROWING

MMM(Minnesota Mining & Manufacturing)

• Born 1902• 1st business “Abrasive Mineral”

• Started Coated Abrasives in 1905• International in 1921

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3M is a Global Company

Key Sales & Marketing Manufacturing/Converting Technical Capabilities

El Salvador

Jamaica

Guatemala

Mexico

China

Korea

Japan

Taiwan

Hong Kong

Vietnam

Philippines

Thailand

India

Malaysia

Indonesia

New ZealandAustralia

Singapore

Sri Lanka

UAE

SwitzerlandAustria

Greece

Italy

Pakistan

Egypt

Kenya

ZimbabweSouth Africa

Morocco

France

Germany

United Kingdom

Belgium

Netherlands

Denmark

Norway

Sweden Finland

Spain

Portugal

Poland

CzechRepublic

Hungary

Russia

Turkey

RomaniaUkraine

East

Israel

Argentina

Dominican Republic

Venezuela

Panama

Puerto Rico

Trinidad& Tobago

Brazil Uruguay

Chile

Peru

Colombia

Ecuador

Costa Rica

Canada United

States


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Company Overview Sales: $26.7 B (2010) International sales $17.4 B (65% of company total) Operations in more than 65 countries Sales in nearly 200 countries 38 Countries with Manufacturing Operations US Manufacturing Operations in 28 States Over 80,000 employees 45 established Technology Platforms Over 10,000 technical employees 7,350 Researchers Worldwide, 3,700 in the US R&D investment $1.43 B (6% to sales) - $7.0 B over last 5 years Portfolio of 40,000 issued patents 55,000+ products 589 U.S. patents issued in 2010


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Six Leading Businesses

Electro and Communications Business

Consumer andOffice Business

Health CareBusiness

Display andGraphics Business

Industrial &TransportationBusiness

Safety, Security and Protection ServicesBusiness


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Our Values Satisfy our customers with superior quality, value and service Provide investors with an attractive return through sustained, quality growth Respect our social and physical environment Be a company employees are proud to be a part of


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Community Citizenship

3M actively supports educational, health, social services and other programs in the many communities where we do business.

3M Foundation grants, employee volunteerism and 3M product donations all come together to help raise the human care quotient of 3M communities.

In 2010, donations of cash and products totaled nearly $59 million in the U.S. alone.

…3M at work in the community


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Environmental Results Worldwide

Prevented the generation of 2.9 billion pounds of pollutants since 1975 with more than 7,400 3P projects.

Cut volatile organic air emissions 95%.

In 2009 again, received the ENERGY STAR Sustained Excellence Award for Energy Management.

3M reduced absolute greenhouse gas emissions by 73% from 1990-2009.

…Our progress toward sustainability


Nature v’s Nurture ?… A Legacy of Innovation

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Innovation is…… not an accident …

It is the product of a complex set of principles and practices which support and encourage the coupling of technology and creativity to satisfy customer needs.

… accomplished by people… - Leaders who give permission and encouragement- Staff who work with determination and imagination- Customers who provide input and feedback to the

process

Not a good thing to ignore

You can get left behind


… and, although sometimes it’s just new,

sometimes it truly is better

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“As our business grows, it becomes increasingly necessary to delegate responsibility and to encouragemen and women to exercise their initiative. This requires considerable tolerance. Those men and women… are going to want to do their jobs in their own way.

Innovation is Deep Rooted at 3M ….The McKnight Principles

- William McKnight, 1948

Mistakes will be made. But if a person is essentially right, the mistakes he or she makes are not as serious in the long run as the mistakes management will make if it undertakes to tell those in authority exactly how they must do their jobs.

Management that is destructively critical when mistakes are made kills initiative. And it is essential that we have many people with initiative if we are to continue to grow.”


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We do it the “Old Fashioned way”…3M’s First Customer Inspired Innovation…

Two-tone cars were in demand…

But a clean paint line was very hard to achieve…

Which 3Mer Dick Drew observedwhile visiting to sell sandpaper…

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


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Our Global Network

Brazil

Canada

China

France

Germany

India

Japan

Mexico Singapore United Kingdom

65 subsidiaries,more than 30 with

laboratories

R&D and related expenditures total $7.02 billion for the last five years


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Technology Driving Growth

3M™ Aluminum Conductor Composite Reinforced

3M™Vikuiti™ Display Enhancement

3M™Littmann® Electronic Stethoscope Model 3000

3M™ Trizact™ Abrasives

Scotch ® Magic™Tape

3M™ Confirm™ Laminate with Floating Image

3M ™ Prestige Series

Utilizing 3M™ Precision Shaped Grain


3M Industrial & Transportation Business

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Abrasive Systems Division

3M Core Technologies MarketsAdhesivesAbrasivesCeramicsElectronic

PackagingMicroreplication

Light ManagementSpecialty Materials

NonwovenMaterials

Polymer MeltProcessing

Architecture & ConstructionAutomotive, Marine & AerospaceElectronics Manufacturing

Graphic ArtsHealth Care

WoodworkingManufacturing & Industry

OfficeSafety: Transportation & Personal

Security Utilities & Telecommunications

Integr. Systems Design

Technology Platforms…Multiple Markets… 3M’s Uniqueness

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3M’s Worldwide Technical Community

Est. 1951

I3

Tech Forum

Voice of theTechnical

Community

IR&STechnicalEducation

LeadershipDevelopment

Technical Communication& Networking

Uphold 3M Values

ExternalTechnology

Transfer

Est. 1951

30+ Active Special-interest Chapters-Imaging, Microreplication, Biotechnology, Nanotechnology, New Business Development, Inorganic Materials, Project Management, Photochemistry, Polymer Processes, Adhesives , Life Sciences , Abrasives, Product Design … and more…

Events and Recognition Technical Information Exchange / Annual Event Virtual and in-person technology and

knowledge sharing events Worldwide expert network New technical employee orientation Inventor recognition events Circle of Technical Excellence & Innovation

awards Carlton Society


HOW ?

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Questions We Ask Ourselves About Innovation1. Does everyone in our organization know how to define innovation: new ideas + action that

produces results?

2. Who are the inventor/entrepreneurs in our workplace? How can I or my team do the work of an inventor/entrepreneur or find ways to support such activities?

3. Does our organization have an oral history of stories that helps employees to learn about innovation?

4. What are our technology platforms?

5. Are long-term research groups in touch with customers and flexible enough to support short-term development when necessary? Do research projects with a short-term focus leave room for longer term efforts?

6. What volunteer employee activities foster innovation and how can these activities be encouraged without being suffocated?

7. Do we recognize innovative achievements in a meaningful way?

8. Do we understand and continue to cultivate what we are good at while simultaneously embracing new ideas and technologies?


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“Research is the transformation of money into knowledge.”

“Innovation and imaginationare the transformation of knowledge into money.”

There is a Bottom Line….

We are a Business not a University……….“So gimme something that works that people want !.” Chris Holmes

I LIKE FISH !


Alexandria3M Campus

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Just like for you the foundation is a good tool

Better Capability….

Our newBEST IN THE WORLD Abrasive Maker, started up in mid 2009 and has done just what we said… - Great products, - Great service and - Great success!

NEWNEW North American Maker

• This is a BIG, courageous bet

on 3M US, US Manufacturing

and US Distribution.

• Understand the significance

• The right behavior has to be

rewarded or it stops

• Fully engage to make this a

winner …. YES you do matter!


We proudly sent“From our factory

to yours”Postcards with

all our shipments

Our operators recognize your orders as they pass through

their plant…and they care !


+ Whippany, New Jersey + Montrose, Colorado

Abrasives


WoodworkingSolutions

56© 3M 2009. All Rights Reserved.

3M Abrasive Systems Division

Upgraded! – Ceramic Product Portfolio

Upgraded; Same UPCs

3MTM CubitronTM Abrasive Grain, YN, Y, X-weight(s)970DZ

Upgraded; Same UPCs

3MTM CubitronTM Abrasive Grain, X-weight930DZ

Upgraded; Same UPCs

3MTM CubitronTM Abrasive Grain, Flexible J-Weight900DZ

Premium ProductsPremium Products

Premium Cloth Belt Offering:State-of-the-art Ceramic MineralImproved cut and belt lifeProvides extremely long life & uniform finish

Wood Revitalization

22 Different22 DifferentWoodworking Woodworking Products containingProducts containingCubitronCubitron™™!!!!(Grade & Backing)(Grade & Backing)

57© 3M 2009. All Rights Reserved.


NEW! – Cloth Product Portfolio

Cloth Belt Offering:

NEW! With improved performance in cut & belt life

Enhanced features

Antistatic-properties (370DZ & 202DZ)

Washable Backing (340D)

Replaces 270D; Same UPCs

Premium Mineral, Antistatic, Y-wt370DZ

Replaced 241D; Same UPCs

Premium Mineral, Closed-Coat, X-wt341D

Replaces 240A/240D; Same UPCs

Premium Mineral, Open-Coat, Washable, X-wt340D

Replaces 200D/200DZ; Same UPCs

Aluminum Oxide Mineral, Open-Coat, Flexible J-wt202DZCloth ProductsCloth Products

Wood Revitalization

40 Different40 DifferentGrade Grade

Combinations Combinations in A/O Clothin A/O Cloth

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NEW! – F. Weight Paper Portfolio

All NEW; Replaces 961UZ; New UPCs

3MTM CubitronTM Abrasive Grain, Antistatic, F-weight

966UZ All NEW; Replaces 461UZ; New UPCs

Silicon Carbide, Antistatic, F-weight466UZ All NEW; Replaces 363UZ; New UPCs

Premium Mineral, Closed-Coat, Antistatic, F-weight

366UZ All NEW; Replaces 362UZ; New UPCs

Premium Mineral, Open-Coat, Antistatic, F-weight

364UZ

Paper ProductsPaper Products

Class-Leading Performance:Belt LifeAnti-static propertiesBreadth of product line (SiC, A/O, Ceramic)Grades Available in 60-P600 (depending on min)

Wood Revitalization

32 Different32 DifferentProduct/GradeProduct/GradeCombinations Combinations in Paper Alonein Paper Alone

Woodworking Solutions – The Next Generation

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3Metalworking Belt Upgrades 977F, 964F, 963G, 967F, 987FI, 966F

Core Product Leadership

• Higher Initial Cut Rate• Improved Shelling Resistance• Longer Life!


Plows through Metal

Slices through Metal

Conventional Ceramic Grain Precision Shaped Grain

Precision Shaped Grain3


Cuts 30% FASTER!Lasts Much Longer!!

Grinds Cooler!!

Revolutionary Performance

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3

4 Cuts efficiently with1/3 less user pressureI don’t like it …I love it, and if I

can’t have it I won’t come in tomorrow – Operator after 984F test vs.

Competitors Product

3


3M Industrial & Transportation Business

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Abrasive Systems Division

3M Power Tools


Featured in Fortune Magazine!

In The News

& the Editor’s Choice Award! Advanced Manufacturing Award!

Featured in the WSJ!© 3M 2011. All Rights Reserved.

Driven by… Service

Quality

Innovation

Productivity & Awesome

Value

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Documents

Innovate, Grow, Deliver - Stiles Machinery...more than 7,400 3P projects. Cut volatile organic air emissions 95%. In 2009 again, received the ENERGY STAR Sustained Excellence Award