Market Capitalization $86.5 Billion

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F BUY January 11, 2016 BUY RATING SINCE 07/24/2009 TARGET PRICE $ BUSINESS DESCRIPTION 3M Company operates as a diversified technology company worldwide. STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income EPS RETURN ON EQUITY (%) Ind Avg S&P 500 Q Q Q P/E COMPARISON Sector: Industrials Sub-Industry: Industrial Conglomerates Source: S&P Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years Rating History BUY Volume in Millions TARGET PRICE $ COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History EPS ANALYSIS¹ ($) Ind Avg S&P 500 RECOMMENDATION We rate () a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself. HIGHLIGHTS The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Industrial Conglomerates industry and the overall market, 's return on equity significantly exceeds that of both the industry average and the S&P 500. The gross profit margin for is rather high; currently it is at 54.33%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.80% is above that of the industry average. Q Q Q Q Q Q Q NA = not available NM = not meaningful Q Q Q Q Compustat fiscal year convention is used for all fundamental data items. 's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, increased its bottom line by earning $7.49 versus $6.72 in the prior year. This year, the market expects an improvement in earnings ($7.55 versus $7.49). The debt-to-equity ratio is somewhat low, currently at 0.92, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a debt-to-equity ratio, its quick ratio of 0.91 is somewhat and could be cause for future problems., with its decline in revenue, slightly underperformed the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. PAGE 1

2 PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -25% 15% UNFAVORABLE IEP -15% EBITDA Margin (TTM) PHG CSL FAVORABLE GE RAVN ROP 35% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $543.9 Million and $268.5 Billion. Companies with NA or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -25% 15% UNFAVORABLE IEP -8% Earnings Yield (TTM) FAVORABLE GE CSL ROP RAVN DHR PHG Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -22.9% and 10.2%. Companies with NA or NM values do not appear. 6% INDUSTRY ANALYSIS The industrial conglomerates industry includes organizations that are engaged in multiple and eclectic businesses. Major players are General Electric (GE), Siemens (SI), 3M (), Tyco International (TYC), and PhilipsElectronics (PHG). These companies operate in markets for aircraft engines, power generation, water processing, security technology, medical imaging, and industrial products. Most industrial conglomerates draw a majority of revenue from overseas demand. Business is affected by the fluctuation of the US dollar against other currencies. Due to globally diversified operations, conglomerates are less vulnerable to economic upswings and downturns within a particular country. The current trend is to divest poorly performing operations and focus on areas with higher growth potential. Growth is also driven by low barriers to entry due to trade liberalization in emerging economies, availability of lower cost resources overseas, and increased economies of scale. Many foreign countries lure conglomerates with incentives such as tax exemptions, loans, use of property, and subsidies in exchange for new technology, capital, and domestic growth. Rising cost of raw materials hurts industry performance. A lack of focus and the inability to manage unrelated businesses are prevalent criticisms. Many diversified business units pose synergy challenges and often result in inefficient operations. The market undervalues conglomerates, but from a financial perspective, it is a scenario of reduced returns for lower risks. GE s investors, who have been achieving nominal returns for several years, finally drove top management to spin off its Consumer & Industrial business and focus on high growth businesses such as jet engines, energy, and health care. Adverse changes to interest rates, tax rates, tariffs, or regulations impact the industry. Global environmental regulations have become more stringent. Companies incur increased capital costs for environmental protection. Industry outlook is stable as companies benefit the slow economic recovery. The US government has passed a series of financial stimulus plans, some of which helped conglomerates boost US revenue. PEER GROUP: Industrial Conglomerates Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) , , , IEP ICAHN ENTERPRISES LP ,713 NM 15, DHR DANAHER CORP , , , RAVN RAVEN INDUSTRIES INC CSL CARLISLE COS INC , , GE GENERAL ELECTRIC CO , , , PHG KONINKLIJKE PHILIPS NV , , ROP ROPER TECHNOLOGIES INC , , The peer group comparison is based on Major Industrial Conglomerates companies of comparable size. PAGE 2

3 COMPANY DESCRIPTION 3M Company operates as a diversified technology company worldwide. Its Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; ceramics; sealants; specialty materials; filtration products; closure systems for personal hygiene products; acoustic systems products; automotive components; abrasion-resistant films; structural adhesives; and paint finishing and detailing products. The company's Safety and Graphics segment provides personal protection products; traffic safety and security products; commercial graphics systems; commercial cleaning and protection products; floor matting; and roofing granules. Its Electronics and Energy segment offers optical films; packaging and interconnection devices; insulating and splicing solutions for the electronics, telecommunications, and electrical industries; touch screens and monitors; renewable energy component solutions; and infrastructure protection products. The company's Health Care segment provides medical and surgical supplies; skin health and infection prevention products; drug delivery and health information systems; and dental, orthodontic, and food safety products. Its Consumer segment offers sponges, scouring pads, cloths, consumer and office tapes, repositionable notes, indexing systems, construction and home improvement products, home care products, protective materials, and consumer and office tapes and adhesives. The company serves automotive, electronics and energy, appliance, paper and printing, packaging, food and beverage, construction, clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets. It sells its products through wholesalers, retailers, jobbers, distributors, and dealers, as well as directly to users. 3M Company was founded in 1902 and is headquartered in St. Paul, Minnesota. 3M Center St Paul, MN USA Phone: Fax: Employees: STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 4.0 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, has a growth score better than 70% of the stocks we rate. Total Return 3.5 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company has beaten 60% of the companies we cover. Efficiency 5.0 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 90% of the companies we review. Price volatility 4.0 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 70% of the stocks we monitor. Solvency 4.0 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 70% of the companies we analyze. Income 4.0 out of 5 stars Measures dividend yield and payouts to shareholders. The company's dividend is higher than 70% of the companies we track. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial FINANCIAL ANALYSIS 's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. has liquidity. Currently, the Quick Ratio is 0.91 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having liquidity to begin with. This would indicate deteriorating cash flow Q4 FY E 2015(E) 8.23 E 2016(E) During the same period, stockholders' equity ("net worth") has decreased by 24.65% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future. INCOME STATEMENT Net Sales ($mil) 7, , EBITDA ($mil) 2, , EBIT ($mil) 1, , Net Income ($mil) 1, , STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit BALANCE SHEET Cash & Equiv. ($mil) 1, , Total Assets ($mil) 33, , Total Debt ($mil) 11, , Equity ($mil) 12, , PROFITABILITY Gross Profit Margin 54.33% 52.62% EBITDA Margin 28.92% 27.66% Operating Margin 24.33% 23.36% Sales Turnover Return on Assets 14.95% 14.88% Return on Equity 40.81% 30.17% DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % NA NA Avg Daily Volume 2,514,342 2,822,966 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. PAGE 4

5 RATINGS HISTORY Our rating for has not changed since 7/24/2009. As of 1/8/2016, the stock was trading at a price of which is 17.6% below its 52-week high of $ and 4.8% above its 52-week low of $ Year Chart BUY: $ $175 $150 MOST RECENT RATINGS CHANGES Date Price Action From To 1/8/14 $ No Change Buy Buy Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 1/8/2016) 38.34% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: VALUATION BUY. The current P/E ratio indicates a significant discount compared to an average of for the Industrial Conglomerates industry and a discount compared to the S&P 500 average of For additional comparison, its price-to-book ratio of 7.10 indicates a significant premium versus the S&P 500 average of 2.52 and a significant premium versus the industry average of The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Price/Earnings Peers Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. is trading at a significant discount to its peers. Price/Projected Earnings Peers Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. is trading at a discount to its peers. Price/Book 7.10 Peers 3.39 Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. is trading at a significant premium to its peers. Price/Sales 2.82 Peers 2.39 Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. is trading at a premium to its industry on this measurement. DISCLAIMER: Price/CashFlow Peers Average. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. is trading at a valuation on par to its peers. Price to Earnings/Growth Peers Premium. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. trades at a significant premium to its peers. Earnings Growth lower higher 5.89 Peers Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. is expected to have an earnings growth rate that significantly exceeds its peers. Sales Growth lower higher Peers 0.61 Lower. A sales growth rate that trails the industry implies that a company is losing market share. significantly trails its peers on the basis of sales growth The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at PAGE 5