3M : Presentation Q3 2023

2023 Third Quarter Earnings

(unaudited)

Mike Roman	Monish Patolawala	Bruce Jermeland
Chairman of the Board and	President and Chief	Senior Vice President,
Chief Executive Officer	Financial Officer	Investor Relations

2

Forward-looking statements

This presentation contains forward-looking information about 3M's financial results and estimates and business prospects that involve substantial risks and uncertainties. You can identify these statements by the use of words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "will," "should," "could," "would," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company's control, including inflation, recession, military conflicts, natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) risks related to unexpected events such as the public health crises associated with the coronavirus (COVID-19) global pandemic; (3) foreign currency exchange rates and fluctuations in those rates; (4) risks related to certain fluorochemicals, including liabilities related to claims, lawsuits, and government regulatory proceedings concerning various PFAS-related products and chemistries, as well as risks related to the Company's plans to exit PFAS manufacturing and discontinue use of PFAS across its product portfolio; (5) risks related to the proposed class-action settlement ("PWS Settlement") to resolve claims by public water systems in the United States regarding PFAS, including whether court approval of the PWS Settlement will be obtained, whether the number of plaintiffs that opt out of the PWS Settlement will exceed current expectations or will exceed the level that would permit 3M to terminate the PWS Settlement (and whether 3M will elect to terminate the PWS Settlement if this occurs), whether the PWS Settlement is appealed, the timing and amount of payments made under the PWS Settlement, and the impact of the PWS Settlement on other PFAS-related matters; (6) 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, 2022 and any subsequent quarterly reports on Form 10-Q (the "Reports"); (7) competitive conditions and customer preferences; (8) the timing and market acceptance of new product and service offerings; (9) the availability and cost of purchased components, compounds, raw materials and energy due to shortages, increased demand and wages, supply chain interruptions, or natural or other disasters; (10) unanticipated problems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information technology infrastructure; (11) the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies; (12) operational execution, including the extent to which the Company can realize the benefits of planned productivity improvements, as well as the impact of organizational restructuring activities; (13) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans; (14) the Company's credit ratings and its cost of capital; (15) tax-related external conditions, including changes in tax rates, laws or regulations; (16) matters relating to the proposed spin-off of the Company's Health Care business; and (17) matters relating to Combat Arms Earplugs ("CAE"), including those relating to the voluntary chapter 11 proceedings of the Company's subsidiary Aearo Technologies and certain of its affiliates ("Aearo Entities"), as well as those related to the August 2023 settlement that is intended to resolve, to the fullest extent possible, all litigation and alleged claims involving the CAE sold or manufactured by the Aearo Entities and/or 3M ("CAE Settlement"), including, but not limited to, whether the anticipated participation by plaintiffs in the CAE Settlement will be achieved, whether the number of plaintiffs that participate in the CAE Settlement will meet current expectations or will fall below the level that would permit 3M to terminate the CAE Settlement (and whether 3M will elect to terminate the CAE Settlement if this occurs), whether there will be a significant number of future claims by plaintiffs that decline to participate in the CAE Settlement, whether the CAE Settlement is appealed or challenged, whether the requirements applicable to the issuance of the equity securities that are contemplated to be part of the CAE Settlement will be met, the filing of additional, or the outcome of any other pending or future, litigation relating to the products that are the subject of the CAE Settlement, or changes in related laws or regulations. Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Reports

under "Cautionary Note Concerning Factors That May Affect Future Results" 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

Company assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.

Note on non-GAAP financial measures

This presentation refers to certain non-GAAP financial measures. Refer to 3M's October 24, 2023, press release for descriptions of non-GAAP financial measures such as adjusted net sales (and adjusted sales change); adjusted purchases of property, plant and equipment (also referred to as adjusted capital expenditures); adjusted net cash provided by (used in) operating activities; adjusted free cash flow; adjusted free cash flow conversion; net debt; adjusted EBITDA (and adjusted EBITDA margin); and various measures that adjust for the impacts of special items. 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 that press release.

2023 Q3 Earnings | October 24, 2023. All rights reserved.

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Our priorities:

1

Driving performance

throughout 3M

2

Spinning off

Health Care

3

Reducing risk and

uncertainty

2023 Q3 Earnings | October 24, 2023. All rights reserved.

Advancing our priorities in Q3:

1

Driving performance

throughout 3M

• Strong operational execution delivered 160 bps of YoY adjusted operating income margin expansion; sequential improvement across all business groups
• Progressing with restructuring to streamline the organization by reducing structural cost, and optimizing commercial models to be closer to customers
• Advancing supply chain performance to improve service, drive productivity and yield, expand gross margins, and increase cash conversion
• Positioning 3M for future growth, including investments in automotive electrification, climate technology, and industrial automation

2023 Q3 Earnings | October 24, 2023. All rights reserved.

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2

Spinning off

Health Care

• Progressing toward 1H 2024 completion
• Building strong leadership team and Board

3

Reducing risk

and uncertainty

• Announced settlement agreement intended to resolve all Combat Arms Earplugs claims
• Court granted preliminary PFAS settlement agreement approval

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Building momentum through operational execution

Q3 2023 performance

Adjusted Sales of $8B

vs. $7.9 to $8B guidance

Adj. organic growth of -3.1%

Includes ~(1.7) ppt headwind from

disposable respirator decline and 2022

exit of Russia

• End-markettrends largely in- line with expectations
• • Softness in electronics, consumer retail, and China
  • Disposable respirator decline in-line with expectations
  • Strength in automotive OEM

Adjusted Op. Income

Margin of 23.2%

• Adjusted op. income margin up 160 bps YoY, including 80 bps of restructuring & related charges
• Adjusted op. income margin up 390 bps sequentially
• All business groups delivered significant sequential margin improvement

Adjusted EPS of $2.68

vs. $2.25 to $2.40 guidance

• Adjusted EPS up 3% YoY
• Strong operational execution
• Ongoing proactive spending discipline
• Includes $0.10 per share restructuring & related charges (prior guidance midpoint of $0.22)

Adjusted Free Cash

Flow of $1.9B

• Adjusted free cash flow conversion of 130%
• Relentless focus on working capital management
• Continuing to invest in growth, productivity, and sustainability

Increasing full-year adjusted earnings to $8.95 to $9.15 and adjusted free cash flow conversion to 100% to 110%

2023 Q3 Earnings | October 24, 2023. All rights reserved.

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Q3 2023 operating margin and EPS

	Adjusted	Adjusted
	operating	earnings
	margin	per share	Commentary
Q3 2022	21.6%	$2.60
Total organic growth/	+2.6%	+$0.22
productivity/other
Disposable respirator/Russia Exit	-0.4%	-$0.09	• Decline in COVID-related disposable respirator demand and 2022 exit of operations in Russia
Remaining organic growth/			• Benefits from productivity actions, restructuring, strong spending discipline, and selling price
+3.0%	+$0.31	• Partially offset by lower sales volumes (particularly electronics, consumer retail, and China) and
productivity/other
		investments in growth, productivity, and sustainability
Restructuring & related charges	-0.8%	-$0.10	• Q3 2023 pre-tax charge of $68M
Raw material	-0.3%	-$0.03	• Carryover impact of raw material, logistics, and energy cost inflation
FX	0.0%	+$0.01	• U.S. dollar strength
Acquisition/Divestiture*	+0.1%	$0.00	• Food Safety divestiture; Aearo Technologies reconsolidation
Other expense/income	NA	-$0.02	• Primarily non-op pension
Adjusted tax rate**	NA	-$0.07	• Q3 2023 adjusted tax rate of 18.1% versus 15.9% in Q3 2022
Shares outstanding	NA	+$0.07	• Average diluted shares down 2.6% YoY
Q3 2023	23.2%	$2.68

• Includes lost income from divested businesses and remaining stranded costs (net of transition arrangement income).
• The effect of income taxes on items that had specific tax rates are reflected within their respective impacts in the table above.

2023 Q3 Earnings | October 24, 2023. All rights reserved.

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Q3 2023 cash flow and balance sheet

Adjusted free cash flow

$1.9B

Adjusted free cash flow

conversion

130%

Cash returned to

shareholders

$0.8B

Adjusted free cash flow

Adjusted free cash flow conversion

Adjusted capital expenditures

Net debt

Capital returned to shareholders

• Q3: $1.9B, up 39% YoY
• YTD: $4.3B, up 37% YoY
• Q3: 130%, up 360 bps YoY
• Q3 YoY increase driven by strong inventory management
• YTD: 115%, up 430 bps YoY
• Q3: $367M, down 6% YoY
• YTD: $1.1B, up 2% YoY
• Q3: $10.8B, down 11% YoY
• Q3: dividends $0.8B
• YTD: dividends $2.5B

2023 Q3 Earnings | October 24, 2023. All rights reserved.

Business Group performance

	Safety &		Transportation &		Health Care		Consumer
	Industrial		Electronics

2023 Q3 Earnings | October 24, 2023. All rights reserved.

Safety & Industrial

Q3 2023 commentary

• Organic growth performance:
• • Low-doubledigit decline in closure and masking; high-single digit declines in industrial adhesives and tapes and personal safety; mid-single digit decline in abrasives; low-single digit declines in electrical markets and automotive aftermarket
  • High-singledigit increase in roofing granules
  • Disposable respirator/Russia YoY headwind of ~$130M, or -58% organically; reduced segment organic growth by 4.3 ppts
• Industrial end-market demand mixed; distributors right-sizing inventory levels
• Adjusted operating margin up 250 bps YoY; up 350 bps sequentially
• • YoY increase driven by:
  • • Benefits from productivity actions, restructuring, strong spending discipline, and price
    • Partially offset by lower sales volume and higher restructuring costs

2023 Q3 Earnings | October 24, 2023. All rights reserved.

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Organic growth

-5.8%

Includes ~(4.3) ppt headwind from disposable

respirator decline and 2022 exit of Russia

Adjusted operating margin

25.7%

Transportation & Electronics

Q3 2023 commentary

• Adjusted organic growth performance
• • Low-doubledigit increase in automotive and aerospace; low-single digit increase in advanced materials
  • Mid-singledigit decline in electronics, commercial solutions, and transportation safety
• Consumer electronics end-markets stabilizing; closely watching seasonal demand trends
• Adjusted operating margin up 460 bps YoY; up 650 bps sequentially
• • YoY increase driven by:
  • • Benefits from productivity actions, restructuring, strong spending discipline, and price
    • Partially offset by lower sales volume and higher restructuring costs

2023 Q3 Earnings | October 24, 2023. All rights reserved.

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Adjusted organic growth

-1.8%

Adjusted operating margin

26.3%