1. 1 3M Minnesota Mining & Manufacturing Alexandre CHARPENEL Guillaume CHRESTIA-BLANCHINE Vivien HERIARD DUBREUIL Bastien LOSFELD Sylvain PETIT LAURENT Olivier TROUDET 3 Juillet 2003

2. 2 Topics 1.Activities and Key-numbers 2.Innovation management 3.Strategy 4.3M-Point of View about France 5.3M expectations

3. 3 3M Activities 6 main fields of activities6 main fields of activities Guide lineGuide line Leading through innovation

4. 4 Key-numbers WorldwideEuropeFrance Establishment 60 countries 29 international companies 28 countries 33 sites 8 sites Turnover in 2002 $16,3 bn $3,9 bn $1,15 bn Employees 71.000 people 19.000 people 3.300 people

5. 5 Structure of 3M in France 3 Headquarters3 Headquarters –3M France SAS (60%) Security, Protection, Signs, Mass Market, Office supplies… –Laboratoires 3M Santé SAS (32%) Health –Pouyet 3M Télécommunications (8%) T –Pouyet 3M Télécommunications (8%) Telecommunication

6. 6 France as a strategic country Fifth market place in the worldFifth market place in the world 27% of the European Turnover27% of the European Turnover 70% of 3M’s products sold in France70% of 3M’s products sold in France are made on the spot

7. 7 3M contribution The financial area The financial area The human field The human field

8. 8 Innovation management 7000 researchers in the world7000 researchers in the world (10% of the staff) 6.5% of the Turnover in R&D ($1.1bn)6.5% of the Turnover in R&D ($1.1bn) 40% of the Turnover realised with new products (less than 4 years old)40% of the Turnover realised with new products (less than 4 years old)

9. 9 Innovation management PolicyPolicy –100 millions euros revenue for each project (Go/NoGo) –3 ways for acquiring technology »In-house research »Purchasing patents or companies »Developing personal project : Each researcher spends 15% of their time on a project of his choice –Expanding an innovation to the potential markets Local Innovation Global Application Bu

10. 10 Strategy Targeting the highest potential markets Growing on their own strength 3M acceleration 3M acceleration External growth and partnerships External growth and partnerships Permanent investment & improvement of the actual infrastructure Reducing time between innovation and product on market

11. 11 Implementation in France External growth & partnerships –Acquisition of Pouyet telecommunication (2000) –World distribution of health treatment with Eli lilly (2001). 3M acceleration –40 % of sales with innovations from less than 4 years –Concentrating the investment on the best projects (hierarchy of programs) Improvement of infrastructuresImprovement of infrastructures –Pithiviers, new production line (22 M€ in 1998) –St-Ouen, new european distribution center (48.5 M€ in 1999) –Beauchamp, european R&D center for unwoven materials (10 M€ in 2001)

12. 12 3M-Point of View about France Main StrengthesMain Strengthes –Attractive and growing French market –Financial aids for R&D activities –French innovation and creativity –Very high quality engineering –Education system –Central geographic position in Europe –Excellent transport and communication –Infrastructures

13. 13 3M-Point of View about France Main WeaknessesMain Weaknesses –Inflexible juridical, fiscal and social environment (labour costs, taxes, labour regulations, 35 hours law...) –Lack of French attractivity for Top manager (personal fiscal reasons, bad image of France...)

14. 14 3M expectations Next target marketsNext target markets –Do It Yourself –Professional cleaning materials –Security of goods –Optical fibers, films and biotechnology Preference marketsPreference markets –Telecommunication, health, optics and electronics –Should represent 35 % of 3M growth in 2003 (25 % in 2000)

15. 15 3M expectations Go on Innovation ManagementGo on Innovation Management –Every opportunities of doing Research & Development activities (especially High Tech) –Personnel quality –Patents of technology or innovating products Go on investing in FranceGo on investing in France –Strategic position in Europe –Transport and telecommunication networks –Large Market –Production closed to R&D area

16. 16 Conclusion Continuous investments in France since 1951Continuous investments in France since 1951 French attractivity based on R&D environment (fiscality, education…)French attractivity based on R&D environment (fiscality, education…) France is in adequation with the 3M worldwide strategyFrance is in adequation with the 3M worldwide strategy