3M CO | 2013 | FY | 3


Stock Option Assumptions                        
                         
  Annual  Progressive (Reload) 
  2013  2012  2011  2013  2012  2011 
Exercise price  $101.49  $87.89  $89.47  $109.84  $87.89  $93.94 
Risk-free interest rate   1.2%  1.1%  2.8%  0.2%  0.2%  0.4%
Dividend yield   2.7%  2.6%  2.6%  2.7%  2.6%  2.6%
Volatility   20.0%  24.5%  22.0%  16.3%  23.4%  21.5%
Expected life (months)   75   74   72   12   19   15 
Black-Scholes fair value  $13.46  $14.94  $16.10  $6.42  $8.50  $7.49 

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