Investor Conference

David N. Farr
Chairman and Chief Executive Officer
February 14, 2012
Safe Harbor Statement
Our commentary and responses to your questions may
contain forward-looking statements, including our outlook for
the remainder of the year and Emerson undertakes no
obligation to update any such statement to reflect later
developments. Information on factors that could cause actual
results to vary materially from those discussed today is
available in our most recent Annual Report on Form 10-K as
filed with the SEC.

Non-GAAP Measures
In this presentation we will discuss some non-GAAP
measures (denoted with an *) in talking about our company’s
performance, and the reconciliation of those measures to the
most comparable GAAP measures is contained within this
presentation or is available at our website www.emerson.com
under the investor relations tab.
Investor Conference – Agenda
February 14, 2012
Time Title Presenter
8:30 – 10:30am Strategic Overview D. N. Farr
10:35 – 11:15am Rebalancing Global Operations E. L. Monser
11:15 – 11:45am Competing: Emerson Style C. A. Peters
11:45am Wrap-Up and Q&A

2
 Emerson’s 2011 Financial Performance
2011 vs. 2006-2011
2006 2010 2011 2010 CAGR
Sales $18,588 $21,039 $24,222 15% 5%

Operating Profit* $2,993 $3,509 $4,229 21% 7%

% of Sales* 16.1% 16.7% 17.5%

Operating Cash Flow $2,512 $3,292 $3,233 (2%) 5%

Free Cash Flow* $1,911 $2,768 $2,586 (7%) 6%

EPS- net earnings $2.24 $2.84 $3.27 15% 8%

Dividends Per Share $0.89 $1.34 $1.38 3% 9%

ROTC 18.4% 18.9% 19.6%

We Had Outstanding Sales Growth, Record Operating Profit Margin,

and Record EPS in 2011
Data Restated to Account for Divestitures 3
2011 Was a Year of Continued Improvement for
Emerson
● Reached Record-level Sales of $24.2B
– 11% Underlying Sales Growth*
● Reached Record-level Operating Profit Margin* of 17.5%
● Maintained high Gross Profit Margins – 39.5%
● Significantly Increased ROTC to 19.6%
● Executed our Restructuring Plans – which will continue at higher levels
in 2012, and drive increased profitability in 2012 & 2013
● Continued to increase investment levels in New Products and Emerging
Markets

P Sales
Operating
Margin P
Underlying Growth
Through-the-Cycle
Through-the-Cycle
5 – 7% 15 – 19+%

P Free Cash Flow ROTC

P
10 – 14+% Sales 15 – 25+%
4
 Emerson Experienced a Very Strong Finish to
2011
Emerson Sales
$B
12%
$7.0
$6.5
$6.5 $6.3

$6.0 $5.8 $5.9

$5.5
$5.5 $5.4

$5.0
$5.0 $4.8

$4.5

$4.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010 2011
5
Fourth Quarter 2011 Highlights ($ in Millions)
Q4 2010 Q4 2011
Up 12%
Sales $5,841 $6,545
- With Underlying Sales* Up 9%

Operating Profit* $1,019 $1,251 Up 23%

OP%* 17.4% 19.1% Record Quarter

Earnings- Cont Ops

$572 $735 Up 29%
Common Shareholders

EPS – Cont Ops $0.75 $0.98 Up 31%

EPS - Net $0.98 $1.01 Record Quarter

While Some Markets Began to See Softening at the End of Q4, the
Overall Company Finished the Quarter with Strength
6
 Q1 2012 Brought Sudden Challenges From the External
Environment – Which Hit Operations Quickly
Emerson Sales
$B
(4%)
$7.0
$6.5
$6.5 $6.3

$6.0 $5.8 $5.9

$5.5
$5.5 $5.4
$5.3

$5.0
$5.0 $4.8

$4.5

$4.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2011 2012
7
 In the Near-Term, Our Business is Being Impacted
Primarily by Four External Headwinds – But Will Correct

Sales by Segment European Thai Telecom Climate

Recession Floods & IT Decline Slowdown
Commercial & 8%
Residential Solutions(1)
Climate 16%
Technologies

Industrial
Automation 21%

Network
Power 27%

Process
Management 28%

Several of These Will Reverse/Recover Throughout the Year

(1) Formerly Tools & Storage 8
Emerson Quarterly Underlying Fixed Rate Order
and Backlog Trends

This slide has been omitted

9
 Coming Off a Strong Performance in 2011, We
Anticipated 5-7% Underlying Sales Growth in 2012
Sales
($B) 2012 Outlook
$40
Underlying • Though growth will be
$35 Consolidated Sales* slower than normal, we
Sales 4-6% expect Emerging Markets
$30 15% to remain strong
~$25B
$25 $24 • The United States will
$21 remain positive with
$20 residential investment
gaining strength
$15
• Europe Is in a Recession,
$10 no growth for most of
2012
$5
$0
2010 2011 2012E
Given the Economic Outlook, We Now Expect 2012 Underlying Sales Growth*
to be in the 4-6% Range, and a Negative Currency Impact of 2% pts
10
 Emerson’s Markets Will Grow At 3-4% Despite A
Slowing Global Economy
GFI 2010/11 GFI 2011/12E
% Change GFI 2011 $ % Change
United States 4.2% $2.4T 3-5%
Residential (3.8%) $0.3T 5-7%
Non-Residential 9.5% $1.5T 5-7%
Western Europe 1.7% $3.2T (1-2)%
UK (1.3%) $0.4T (1-2)%
France 2.5% $0.5T (1-2)%
Germany 7.4% $0.7T (1-2)%
Italy 0.4% $0.4T (3-5)%
Japan 0.0% $1.2T 4-5%
Canada 9.0% $0.4T 5-6%
Mature Markets 2.7% $7.7T 1-2%

China 12.0% $3.1T 8-10%

India 1.6% $0.6T 3-4%
Eastern Europe/Russia 8.8% $1.0T 5-6%
Latin America 8.9% $1.1T 5-6%
Middle East and Africa 6.5% $0.5T 5-6%
Emerging Markets 8.5% $7.4T <6%
Emerson Global Weighted 5.3% 3-4%
Source: IHS Global Insight and Emerson assessment 11
 United States Gross Fixed Investment Should
Remain Strong in Fiscal Year 2012
2010 2011 2012E
15%
Non-Residential GFI
10%

5% 5–7%

0%

-5%

-10%

-15% Residential GFI

-20%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Residential GFI (6.2%) (3.8%) 5-7%

Non-residential GFI (2.3%) 9.5% 5-7%
Source: IHS Global Insight 12
First Half of 2012 Will Present Challenges But
Emerson Will Recover in the Second Half
2012 Outlook
● Despite external market challenges in first half of year,
we are well-positioned with a Strong Backlog
● Emerson’s Geographic Diversification will enable
resilience in the face of European recession
● Unfortunately, Sales Are Back-end Loaded this Fiscal
Year, but that is what we see economically and with
record backlog

Emerson’s Long-Term Sales Growth Prospects Remain on Target –

5-7% Underlying Sales, But 2012 Will Be 4-6% After a Strong 2011 at 11%
13
 Emerson’s 2012 Sales Growth Recovery and
Roadmap
Sales ($B)
$26

~$25B

$24 Commercial
Emerging &
$24 Market Residential
Q1 Backlog Solutions
Currency Growth
(4% pts) Thai Conversion Upside
(2% pts) Flood
Recovery

$22

•4-6% Underlying Sales Growth*

•2-4% Consolidated Sales Growth
$20
2011 2012E
Our Strong Emerging Market Presence and Backlog Conversion Will Enable
Us to Overcome the Slow Start and Achieve 2012 Sales of ~$25B
First Half of 2012 Will Present Challenges But
Emerson Will Recover in the Second Half
2012 Outlook
● Despite external market challenges in first half of year,
we are well-positioned with a Strong Backlog
● Emerson’s Geographic Diversification will enable
resilience in the face of European recession
● Unfortunately, Sales Are Back-end Loaded this Fiscal
Year, but that is what we see economically and with
record backlog

Emerson’s Long-Term Sales Growth Prospects Remain on Target –

5-7% Underlying Sales, But 2012 Will Be 4-6% After a Strong 2011 at 11%
15
Underlying Sales Growth* by Region
– Emerson Fiscal Year

2010 2011 2012E

United States 1% 8% 3-5%
Canada -9% 20% 8-10%
Europe -7% 11% 0-3%
Latin America -2% 20% 12-15%
Asia 7% 11% 6-10%
Middle East/Africa -10% 16% 6-10%
Total -1% 11% 4-6%

Emerson’s Long-Term Growth Prospects Remain on Target

16
Emerson’s Roadmap to Creating Sustainable
Shareholder Value

Sales Operating Margin

Underlying Growth Through-the-Cycle

Through-the-Cycle
5 – 7% 15 – 19+%

Free Cash Flow ROTC

10 – 14+% Sales 15 – 25+%

There Are Four Key Value Drivers, and We Expect to Hit All
Four in 2012, As We Did in 2011
17
 Emerson Has a History of Excelling in Our Value
Creation Roadmap
$30
Sales

~$25B
20%
Operating Profit Margin*

16.9% 16.7%
17.5%
P
~18%

$25 $23.8B $24.2B 16.1% 16.4% 15.6%

$21.0B 15%
$20.1B $21.0B
$20 $18.6B

$15 10%
2006 2007 2008 2009 2010 2011 2012E 2006 2007 2008 2009 2010 2011 2012E

$4.0

$3.0
Free Cash Flow*

13.1%
P
~11%
26%

22% 20.1%
ROTC

21.8% P
~20%
10.4% 12.2% 10.6% 18.4% 18.9% 19.6%
10.3% 18% 16.2%
$2.0 9.5%
14%

$1.0 10%
2006 2007 2008 2009 2010 2011 2012E 2006 2007 2008 2009 2010 2011 2012E

Emerson’s Challenge is How to Drive Growth in a Slower Global Growth Economy

18
Despite a More Challenging 2012 Global Economy,
Emerson’s Long-Term Outlook Remains Strong
2011-2015 Outlook
● Our Underlying Sales Growth Target Remains 5-7%, despite
weaker global market growth in the 4% range – We expect
this to be the case for the next 10 years, with increased
economic volatility
● Our End Markets Continue to Show Long-term Strength –
but there appears to be greater uncertainty arising from
Government debt levels, taxes, ever increasing regulations,
etc.
● Emerson has a strong presence in Geographies with Higher
Growth – and this will continue
● Active Portfolio Management will add value and better
position Emerson for the future
Emerson’s Long-Term Sales Growth Prospects Remain on Target –
5-7% Underlying Sales
19
 Emerson is Responding to Changing Market
Dynamics
Core Issues Emerson’s
Facing Emerson: Response:
• Sustained Slower End
Market Growth rate • Increase internal
around 4% Strategic Investments to
drive growth
• A couple of businesses • Continual Repositioning
are facing a very of Our Portfolio for
Dynamic Customer growth
Landscape

• Continued Shift of GFI to

the emerging markets

Proper Capital Allocation is Critical to Support Portfolio Repositioning and

Strategic Investment Plans While Still Returning Cash to Shareholders
20
 At February 2011 Investor’s Conference, We Presented
Our Five Year Bridge to Achieve Sales of $32-35B by 2015
Sales ($B)
$40
$4-5B ($0.75B) $32B - $35B
$35
7-8% Acquisitions Divestitures
$30
Underlying
$25 Growth
$21B
$20

$15
Growth Rate
$10 Was Higher
Given a Low
$5 Base in 2010

$0
2010 2015T
This Suggests Approximately 9-11% Annual Growth Rate for
Consolidated Sales Over the Next 5 Years
21
Our View Today – February 2012
Slower Global Economy and Changing Market Dynamics
Required Adjustments to Our Growth Model
2011 Plan Current View of 2011-2015
5-7% of Underlying Sales Growth for the
Next Four Years, 7-8% for 2010-2015
Underlying Sales
• European recession
Growth
• Slower USA recovery
7-8%
• Softer emerging markets

$5-6B in Acquisitions
Acquisitions • We will increase capital allocated to
$4-5B acquisitions over the next 4 years

$2-3B in Divestitures
Divestitures • Changing end market dynamics may
$0.75B result in divestiture of some larger
businesses
22
 At February 2011 Investor’s Conference, We Presented
Our Five Year Bridge to Achieve Sales of $32-35B by 2015
Sales ($B)
$40
$4-5B ($0.75B) $32B - $35B
$35
7-8% Acquisitions Divestitures
$30
Underlying
$25 Growth
$21B
$20

$15
Growth Rate
$10 Was Higher
Given a Low
$5 Base in 2010

$0
2010 2015T
This Suggests Approximately 9-11% Annual Growth Rate for
Consolidated Sales Over the Next 5 Years
23
 February 2012 Sales Plan Maintains Underlying Growth
Rates, But Adjusts for Higher Level of Divestitures Than
The 2011 Model
Sales ($B)
$35 2010 – 2015 Plan
$35
15% Sales Growth, Feb Feb
$31 Assumes:
11% Underlying Sales Growth* 2011 2012
$30 Acquisitions $4-5B $5-6B
$25 Divestitures $0.75B $2-3B
$25 $24
Net Impact $3-4B $2-4B
$21
$20
Net Acquisitions

~7% Underlying Growth Underlying Estimate

$15 Actual
~8% Underlying Growth
$10
2010 2011 2012E 2015T 2015T
Low High
This Plan Implies 2011-2015T Underlying Sales Growth of 5-7%
24
 We Will Focus on Three Key Growth Initiatives to
Drive 5-7% Underlying Sales Growth
CAGR
8%

7%
2011-2015 Target:
6% 5-7% Growth Emerging
Strategic Markets
5% Portfolio Investments
Management
4% 4%

3%
• Overall economic growth will
2% be slower in the next few years
than in the past 10 year cycle
1%

0%
Market Growth, Emerson
No Penetration Gains In the Next Cycle
25
 2011 – 2015F GFI Growth Forecast
MATURE United States 3-5%

Canada 3-4% Mature

2-3%
Western Europe 1-2%

Japan <2%
EMERGING Eastern Europe & Russia 3-4%

Asia Pacific excl. Japan 7-9%

Latin America 6-8% Emerging

6-7%
Middle East 4-5%

Africa 6-8%

Emerson Weighted GFI

World 4-5% 4.0%

Due to Emerson’s Global Exposure, the Company’s Markets Will Grow at

4.0% Over the Next Four Years
Source: IHS Global Insight and Emerson assessment 26
 We Will Focus on Three Key Growth Initiatives to
Drive 5-7% Underlying Sales Growth
CAGR
8%

7%
2011-2015 Target:
6% 5-7% Growth Emerging
Strategic Markets
5% Portfolio Investments
Management
4%
• Where to invest $23B of cash and
3% stronger balance sheet between
2011 and 2015
2% • Continuous portfolio management
• Pursue acquisitions that align with
1% our value creation strategy
0%
Market Growth, Emerson
No Penetration Gains In the Next Cycle
27
 Emerson Has a History of Strong Cash Flow
Generation

$B
Operating Cash Flow
$4
~$3.5
$3.3 $3.3 $3.2
$3.0 $3.1
$3
$2.5
$2.2 $2.2
$2 $1.7 $1.8 $1.7

$1

$0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E
% of
11% 13% 12% 14% 13% 12% 13% 13% 15% 16% 13% ~14%
Sales

We Will Generate $19B+ of Operating Cash Between 2011 and 2015

28
2011-2015F Cash Sources & Uses
$23B $23B
100%
Flex
$3-4B
80% Increased
We will Return
50+% of Dividends Internal Growth
Operating Operating Cash $7B Investments
60% Cash Flow Flow to Our
$19B Shareholders Higher
Share Repurchases Acquisitions
$3B
40%
Increase Share
Acquisitions Repurchase
$5-6B
20%
CapEx
Debt $4B $4B
0%
Cash Sources Cash Uses
2011-2015F 2011-2015F
Cash Generation Allows Emerson the Flexibility to Fund Growth
Note: This Assumes an Average 50% Operating Cash Flow to Debt Ratio
29
Returning Cash to Shareholders is Our First
Priority, Followed by Investing for Growth
● First Priority: cash is returned to shareholders
– 40-50% of Free Cash Flow in Dividends - $7B
– $3B of Share Repurchases - $600M/year
● Then: Remaining Cash Flow is used to fund Internal
Growth Programs and Acquisitions
– Capital spending on new technologies, new R&D
centers, emerging market capacity and service
capabilities
– Acquisitions

30
 We Will Focus on Three Key Growth Initiatives to
Drive 5-7% Underlying Sales Growth
CAGR
8%

7%
2011-2015 Target:
6% 5-7% Growth Emerging
Strategic Markets
5% Portfolio Investments
Management
4%
• Where to invest $23B of cash and
3% stronger balance sheet between
2011 and 2015
2% • Continuous portfolio management
• Pursue acquisitions that align with
1% our value creation strategy
0%
Market Growth, Emerson
No Penetration Gains In the Next Cycle
31
Continuously Repositioning the Business and
End-Market Portfolio: Emerson Since 2000
● Consolidated sales increased at 4% CAGR

● Profitability increased at both the Gross Profit Level (+3.9 pts) and
at the Operating Profit Level (+1.2 pts)
● Acquired 70+ Companies [$6.0B Annual Sales] and Divested 20+
Companies [$2.5B Annual Sales]
● International Sales Expanded from 38% to 59% of total Emerson
sales
● Actively repositioned our portfolio of businesses into Higher
Growth and More Profitable Markets
– Exited the motors and appliance components businesses
– Built out the Network Power Systems platform

Given the Dynamic Changes in Our Markets, We Are Taking a Serious Look
at Our Businesses and Will Make Value Creating Decisions about Our
Portfolio to Preserve Our Growth and Profitability Profile
33
 2000-2011 Continuous Portfolio Management
Acquisitions
Commercial & Residential
Solutions 8%
Appliance & Tools Climate
22% Technologies
16%
Climate
Technologies 70+ Companies Industrial
16% Automation
$6.0B of Annual Sales 21%
Industrial
Automation
22% Network
Power
20+ Companies 27%
Network Power
21% $2.5B of Annual Sales
Process
Process Management
Management 28%
19%

2000 2011
Divestitures 34
Continuous Monitoring of Our End Markets Has
Revealed Areas of Concern
● As part of the Annual Emerson Planning Process, we Continually Analyze
our end markets and customers’ performance and Discuss the Health of
Our Business Portfolio with The Board
● We believe the market and value creating dynamics in some segments are
Beginning to Erode:
– Customer Failures, Consolidations, Strategy Changes, and significant Asian
competitor impact
– New Products Churn has increased, and technology shifts/transformations
have increased also
– Lack of Consistent Customer Strategies makes it difficult to forge healthy
partnerships – growth and returns
● To Reduce Exposure to end markets with unhealthy dynamics, we will
look to Divest Specific Businesses over the next couple years
● These divestitures will enable us to Maintain The Growth and Profitability
Profile we target as a company, without hurting the value creation
roadmap
We Have Several Businesses Working to Change Their Core
Business Model in Order to Create Value…But, if They Can’t…..
Emerson’s Sales by End Market

This slide has been omitted

36
Emerson Portfolio – Current and Future
Perspective

This slide has been omitted

37
Emerson’s Roadmap to Creating Value

Sales Operating Margin

Underlying Growth Through-the-Cycle

Through-the-Cycle
5 – 7% 15 – 19+%

Free Cash Flow ROTC

10 – 14+% Sales 15 – 25+%

At Emerson’s Annual Strategic Assessment Session with the Board, We

Evaluate Each Business on the Four Levers of the Value Creation Roadmap
38
 We Will Focus on Three Key Growth Initiatives to
Drive 5-7% Underlying Sales Growth
CAGR
8%

7%
2011-2015 Target:
6% 5-7% Growth Emerging
Strategic Markets
5% Portfolio Investments
Management
4%
• Where to invest $23B of cash and
3% stronger balance sheet between
2011 and 2015
2% • Continuous portfolio management
• Pursue acquisitions that align with
1% our value creation strategy
0%
Market Growth, Emerson
No Penetration Gains In the Next Cycle
39
 Our Acquisition Efforts Will Be Tailored to
Strengthening Our Business Platforms
Core Adjacent Geography Opportunistic Technology

Process
Management     
Network Power
Network
Power Systems    
Embedded
Computing & Power
Industrial
Automation     
Climate
Technologies    
Commercial &
Residential Solutions   
For the Next Four Years, Most of Our Acquisition Activity Will be Centered
Around Our Process Management and Industrial Automation Businesses
Building Out Core Platforms in
Process Management and Industrial Automation

This slide has been omitted

42
 We Will Focus on Three Key Growth Initiatives to
Drive 5-7% Underlying Sales Growth
CAGR
8%

7%
2011-2015 Target:
6% 5-7% Growth Emerging
Strategic Markets
5% Portfolio Investments
Management
4%
• We will maintain engineering &
3% development funding levels
• Margin expansion will enable us to
2% invest additional funds in strategic
programs, with a focus on higher
1% growth business models

0%
Market Growth, Emerson
No Penetration Gains In the Next Cycle
43
Emerson is Committed to Investing in Product
and Next Generation Technologies
● Emerson targets ~3.5% of sales annually to fund Core
Engineering and Development
● This investment is critical to ensuring we Continue
Technology Leadership in our core markets
● Our investments in Engineering and Development
continue to yield strong results with Nearly 1,000
Patents awarded in 2011 – ~50% of these patents were
in Asia
Historically, Emerson’s Engineering &
Development Investments Concentrated on New
Products and Engineering Applications

This slide has been omitted

45
Great Technology Innovation at Emerson
Subsea & Downhole Multiphase Flow
Universal Management Gateway Meter & Well Management

Universal
Management
Gateway Downhole
Measurement

Electronic Marshalling &

Single Screw Compressor Characterization Modules (CHARMS)

Local Safety Network

Single Screw

Many I/O
Lines
Controller

46
 We Will Focus on Three Key Growth Initiatives to
Drive 5-7% Underlying Sales Growth
CAGR
8%

7%
2011-2015 Target:
6% 5-7% Growth Emerging
Strategic Markets
5% Portfolio Investments
Management
4%
• We will maintain engineering and
3% development funding levels
• Margin expansion will enable us to
2% invest additional funds in strategic
programs, with a focus on higher
1% growth business models

0%
Market Growth, Emerson
No Penetration Gains In the Next Cycle
47
To Drive Even Higher Growth, Emerson Will Inject
Corporate Strategic Investments into Global
Customer Centric Programs
● Margin Expansion enables Emerson to increase
investments in strategic programs that fund
development of new technologies – new ideas – new
markets
● Emerson created a Strategic Investment Program [A12,
A13, A14, etc.] focused on Higher-Growth Business
Models which we intend to expand as we increase
margins
Continued Margin Expansion Will Enable Us to
Invest in Strategic Growth Programs
Gross Margin
45%
• We have runway to
40+%
39.6% 39.5% ~40%
improve gross
40% profit and
37.4% 37.6% 37.6%
operating profit
35% margins
2007 2008 2009 2010 2011 2012E 2015F
• The increased
Operating Profit Margin* profitability will
enable Emerson to
20% 19+%
invest for growth
17.5% ~18%
16.4% 16.9% 16.7% while maintaining
15.6%
15% high earnings
levels

10%
2007 2008 2009 2010 2011 2012E 2015F

49
 Using Emerson’s Strong Profitability and Cash
Generation to Reinvest for Accelerated Growth

5 Year Cumulative:
$200 - $250M

Climate Industrial Network

Technologies Automation Power

Commercial & Process

Residential Solutions Management

Operating Profit* $ ● Increasing Customer

Facing People/Engineers People
● Accelerating Technology
Investment New Products

● Expanding Services and Facility & Capacity

2011 2015T 2015T Solutions
OP%* 17.5% 19+%
50
 Future Spending Will Focus on Programs That
Increase Emerson’s Strategic Value to Customers

Level of Customer
Engagement
Enriched
Business
Model
Services &
Solutions

Emerging
Historical Markets
E&D Investments
Application

Product Expanding
Technologies Emerson’s Value
Market
within Our
Analysis Served Markets

Strategic
Value

51
Incrementally, We Are Investing $60M to Fund
New Products & Services That Raise Emerson’s
Value to Our Customers – 2011 & 2012 Combined

This slide has been omitted

52
Strategic Investment Programs Have Put New
Talent in Emerging Markets

This slide has been omitted

53
 We Continue to Expand Our Service Footprint and
People to Better Serve Our Customers Around the
World
Process
Process Network Climate
Management
Management Power Systems Technologies

Current 370+ locations 265+ locations 15+ locations

2280+ personnel 2860+ personnel 190+ personnel
Footprint 500+ tech support
Saudi Arabia, Russia (3), Nigeria, Kenya, Ghana, Saudi Arabia (2), Egypt,
Future Poland, Turkey, Hungary, Uganda, Senegal, Turkey Thailand, Indonesia,
Germany, Spain, Italy, Malaysia, Philippines
Expansion Brazil (2), China (2),
Australia (3), Korea
• Quick ship & repair • Installation, • Design Services
• Online/offline system commissioning and • New Facility Startup
upgrades project management • ProAct Facility
Capability • Diagnostics & preventive • Multi-vendor UPS Monitoring
maintenance servicing • Retrofit Projects –
• Instrument calibration • Engineering services Energy Reduction

16% Services and 20% Services and 2% Services and

Solutions Revenue Solutions Revenue Solutions Revenue
54
Emerson Process Management is Developing a
Suite of Technologies That Together Form A
Wellhead Optimization Solution
Customer Challenges Wellhead Solutions Delivers
1. Increase Production 1. Applications for Production Optimization
2. Reduce Operating Costs 2. Data Communication and AMS Integration
3. Reduce Time to First Oil 3. WirelessHART Integration

SCADA Hardware and Software Solution for Oil & Gas Production
Field Enterprise
Applications Field Control
Devices Systems

Open
Enterprise
SCADA

Level

Pressure

Wellhead RTU
Lift

Wellhead Solutions Investment Delivers $100M+ Sales in 5th Year

55
Emerson’s Enriched Business Models are
Increasing Presence – Climate Technologies

5,000+ Stores Monitored

Plus Millions of Dollars of
Pull-Through Product

ProAct Software Suite

ProAct Leads the Global

Trend in Efficient Facility
Management by Saving
Retailers up to 20% in Annual
Operating Costs

56
 We Will Focus on Three Key Growth Initiatives to
Drive 5-7% Underlying Sales Growth
CAGR
8%

7%
2011-2015 Target:
6% 5-7% Growth Emerging
Strategic Markets
5% Portfolio Investments
Management
4%

3%
• Sales growth and investments
2% follow emerging market trends
• Mid-tier product and market
1% development

0%
Market Growth, Emerson
No Penetration Gains In the Next Cycle
57
 We Continue to Increase Our International and
Emerging Markets Presence
Gross Fixed Investment Emerson Sales
100%

55%
75% 51% 47% Mature
65%

81%
92%
50%

25% 53% 45%

49% Emerging 35%
19%
8%
0%
1991 2001 2011 2015T 1991 2001 2011 2015T
Twenty Years Ago, Our Sales Mix Did Not Reflect Global Investment Patterns.
By 2015, Our Emerging Market Sales Will Closely Match Regional Investment.
Source: IHS Global Insight and Emerson assessment 58
 Emerson’s Top 5 Countries Drove Emerging
Market Sales Over the Last Decade
Emerson Emerging $15B
Market Sales
Other Emerging
$6 Markets
$8.6B

$3.4 Top 5 Countries

$4.5B Brazil, Russia,
$9 India, China,
$2.0
$5.2 Mexico
$2.5

2006 2011 2015T

55% 60% 60%

Emerson Focused on Growth within Our Top 5 Markets to Gain a Strong

Foothold. Now We Must Invest in the Next Tier Markets in the Same Way.
59
 Gross Fixed Investment Growth
– Top 5 Countries and Other Emerging Markets
Emerging Market
$8T Top 5 Countries Gross Fixed Investment
Other Emerging Markets $6.0T
$6T
$5.0T

$4T
$3.0T $3.0T
$2.5T
$2.0T
$2T

$0T
2006 2011 2015F

Growth in Top 5 Will Slow in the Long-Term While Growth in Other Emerging
Markets Will Increase – Emerson Must Invest in New Markets to Maintain Growth
Source: IHS Global Insight and Emerson assessment 60
 Emerson Has a Lot of Runway for Growth in Our
Next Ten Emerging Markets
Mature Top 5 Next 10
Emerson
$1.8T Relevant
GFI $2.6T $0.4T
23%
52% 31%

2011 GFI: $7.7T 2011 GFI: $5.0T 2011 GFI: $1.3T

North America Brazil South Korea Colombia
Western Europe Russia Poland Thailand
Japan India Turkey Saudi Arabia
Australia China Singapore Malaysia
New Zealand Mexico Indonesia Argentina

Emerson Will Focus Time and Money on the Next 10 Emerging Markets
Over the Next Decade to Penetrate These Market Opportunities
Source: IHS Global Insight and Emerson assessment 61
We Spent the Last Decade Establishing a Strong
Presence in Our Top Five Emerging Markets

This slide has been omitted

62
 Our Past Investments in Emerging Markets are
Continuing to Pay Off with Strong Sales Growth

2011 –– 2011E
2006 2015F
2006 2011 2015F CAGR
CAGR
Mature Markets $14.1B $15.6B $18-20B 4-6%
Emerging Markets $4.5B $8.6B $13-15B 11-15%
Total Emerson Sales $18.6B $24.2B $31-35B 5-7%

Δ Mature Markets $1.5B $2.4-4.4B

Δ Emerging Markets $4.1B $4.4-6.4B

~75% of Growth Over the Last Five Years For the Next Four Years Emerging
has Come from Emerging Markets Markets will Represent ~60% of Growth
63
2015T Emerging Market Sales

This slide has been omitted

64
 We Will Focus on Three Key Growth Initiatives to
Drive 5-7% Underlying Sales Growth
CAGR
8%

7%
2011-2015 Target:
6% 5-7% Growth Emerging
Strategic Markets
5% Portfolio Investments
Management
4%

3%
• Sales growth and investments
2% follow emerging market trends
• Mid-tier product and market
1% development

0%
Market Growth, Emerson
No Penetration Gains In the Next Cycle
65
 Mid-Tier Markets in China, Russia and India Offer
a Profitable Opportunity for Emerson: At Good
Margins
Emerson’s Global
Served Market
$128B
$11B
- Global Customers
1
9 T High
- Global Suppliers
- UL & IEC Specifications
India 
9 o 2
0 d 0
a
High - High Technology Russia

1
y - Regional Customers
5
- Regional Suppliers
Mid
Mid - Local Specifications
- Local Design
China

- Local Manufacturing

- Low Value Mid-Tier Market

Low - Cost Focus
Our China profitability is in
- Low Innovation line with our global average
- Low Tech – We see no dilution from
mid-tier products
66
Emerson’s Mid-Tier Market Sales Approached the
Billion Dollar Mark in 2011

This slide has been omitted

67
Emerson Already Has a Robust Offering of Mid-
Tier Products – Even More Will Roll Out Over the
Next 3 Years

This slide has been omitted

68
Emerson Global Design & Development Centers
and Global Application Engineering Centers

Mohali

Delhi
• Facilities: 5
• Engineers: ~2,600
• Business Groups:
Pune • Process Management
• Network Power
Hyderabad • Industrial Automation
• Climate Technologies
• Commercial & Residential
Chennai Solutions

India
69
Emerson Global Design & Development Centers
and Global Application Engineering Centers

Beijing
• Locations: 9
Tianjin
Qingdao • Facilities: 19
Xi’an
Chengdu
Suzhou • Engineers: ~2,800
Nanjing
Shanghai • Business Groups:
• Process Management
• Network Power
Shenzhen • Industrial Automation
• Climate Technologies
• Commercial & Residential
Solutions

China
70
Creating Long Term Value at Emerson
Share Repurchase
OP$ $3B
Growth
Acquisitions
$5B
$5-6B
Drives
Margin
EPS ROTC
Improvement
10-13% Target 15-25%
15-19+% OP
CAGR

Underlying
Sales
Operating Capital Efficiency
Growth • Trade Working Capital –
5-7% <12% of sales
CAGR • Capital Spending – ~3% of sales
Drives FCF Target
10-14% of Sales

71
Emerson Must Focus on Sales Opportunities in
Order to Drive Growth in a Slowing Economy
Sales We continue to drive towards 5-7% underlying sales
Growth growth through-the-cycle. To do this in a slowing economy
will require even more focused effort on growth initiatives
5-7% • 2010 – 2015T Remains 7-8%
Margin Emerson has a proven track record of continuous margin
Improvement improvements. Our goal is now 19+% – to reinvest for
faster growth
15-19+% OP
Compared to the plan laid out in February 2011, Emerson
Acquisitions now plans to increase acquisition spend in the next four
$5-6B years. In addition, we will divest more businesses.

Share In the long-term, Emerson will decrease share

Repurchase repurchasing and deliver cash to shareholders in the form
$3B of dividends – ~$600M Annually

Emerson continues to drive high levels of ROTC

ROTC
Target 15-25%
72
Fiscal 2012 Emerson Guidance
% Change % Change
2011 2010-11 2012 Forecast 2011-12
Sales $24.2B 15.1% $24.8 to $25.3B 2% to 4%
Operating Profit* $4.2B 20.5% $4.4 to $4.6B 4% to 8%
Operating Margin* 17.5% ~18% ~50 bps
Pretax 15.0% ~15.5% ~50 bps
EPS $3.27 $3.45 to $3.60 6% to 10%
DPS $1.38 $1.60 16%
Operating Cash Flow $3.2B ~$3.5B ~8%
Capital Expenditures $647M ~$700M ~2.8% of Sales
Assumptions:
Gross Fixed Investment (GFI)
• Underlying* sales growth: 4% to 6%
2011-2012 Change • Currency ~$(400)M ~(2)pts
US 3% to 5% • Euro to US$ exchange rate: $1.30
Western Europe (1)% to (2)% • Restructuring cost: ~$125M
• Pension expense: Unfavorable $25M; Cash Funding $160M
Eastern Europe 5% to 6%
• Share repurchase: $500-600M
Japan 4% to 5% • Price/cost: favorable
China 8% to 10%
India 3% to 4%
Latin America 5% to 6%
 Process Management Summary
2009-11 2011 Sales by Product
2009 2010 2011 CAGR
Systems,
Sales $6.1B $6.0B $7.0B 7% Solutions, &
24% Services
Earnings $1.1B $1.1B $1.4B 15%
46%
% of Sales 17.3% 18.1% 20.0%
Restructuring $55M $35M $11M Valves &
Measurement 30% Regulators
ROTC 22% 22% 27% Devices

Major Markets Served % Sales 2011 Sales by Geography

Oil & Gas 39% Latin America
Middle East/ 7%
Chemicals 15% Africa United States
9%
Power, Utilities 14% & Canada
38%
Refining 9% 22%
Other 23% Europe
24%
Asia
75
Process Management – Key Messages
 Process industry Investments Are at an All-time High with a positive
outlook
– EPC (Engineer, Produce, Construct) company backlogs are at an all-time high
– Current market forecast shows continuing strength for 12-24 months
– Emerson Process Management Orders are far exceeding 2008 peak levels
 We are Uniquely Positioned Among Competitors and Extending Our Lead
– Process Management has the Most Complete Process Automation Offering
– Increased resources and facilities Local to Customers enable us to capture
opportunities in growth markets
– We solve customers’ toughest problems using innovative technology combined
with the Expertise of our Global Engineering and Service Teams
 Customers are committing to Emerson as their Automation Partner
– We are the Trusted Name for project design, execution, and lifecycle support –
“When It’s Never Been Done Before”
 We are the Technology Innovation Leader
– DeltaV with CHARM technology is transforming control systems and is
recognized as the new industry best practice
– We are #1 in wireless field devices with 7,100 smart wireless networks installed,
proven to improve plant safety, reliability and performance – booked ~$280M
through Q1 2012
76
We are the Clear Leader in Served Markets.
A Very Tight Three Horse Race Exists in the
Total Process Automation Market

This slide has been omitted

77
 We Continue to Invest in Expanding Our Global
Footprint
Europe
North America • Service: Russia, Turkey, Hungary
• Technology Center: Austin, TX • Manufacturing: Russia, Turkey, Hungary
• Oil & Gas HQ: Houston, TX • Engineering: Romania
• Manufacturing: Houston, TX

Middle East
• Service: Saudi, Iraq, UAE, Qatar
• Manufacturing: Saudi, UAE Asia
• Engineering: UAE • Service: India, China, Malaysia
• Manufacturing: India, China
Latin America • Engineering: India, China
• Service: Brazil, Mexico
• Manufacturing: Brazil Africa
• Service: South Africa
Added 2,200 Personnel in 2011 Local to Our Customers
78
Our GAAP Orders Continue to Show Strength

This slide has been omitted

79
Emerging Markets Continue to Drive Growth

This slide has been omitted

80
Emerson Process Management Continues to
Lead the Industry in Innovation
DeltaV with CHARMs Flame & Gas Detectors
DeltaV with CHARMs Flame & Gas Detection
• ~60% of new systems • Protects health &
include CHARM safety
technology • Full line of flame
• Hardwired dependencies detectors,
eliminated combustible and toxic
• Allows easy, cost gas sensors
effective design changes

Wireless Acoustic Transmitter Wireless

2x Size Corrosion
of an Aircraft CarrierMonitor

Steam Trap Monitoring Corrosion Monitoring

• >$4M annual energy • Protects asset life in
saving for typical pipes & vessels
petrochemical plant
Pressure Relief Valve
Monitoring
• Reduces fines & safety
situations
81
Acquisition Process is Integral to
Delivering Our Strategic Direction
Problem Solving

Geographic
Industry Solutions Adjacent Space
Expansion

Build on existing Increase presence Create new value

strengths to create and capabilities in targeted to Process
industry-targeted emerging markets customer base and
solutions close to customers leverage account
anticipating market relationships
trends

Solve Customers’ Toughest Problems with Our Proactive

People and Perceptive Technology
82
 Process Management – Outlook: Reach $8B
• Process industry investments are at an All-time High and we
are well positioned to excel during this growth period
• Our product offering, resources, and facilities Position Us
Uniquely to Widen Our Lead
• An increasing number of customers are committing to
Emerson as their Automation Partner of Choice
• Our Innovative Technology continues to pave the way and
transform the industry
2011 2012E
Underlying Sales Growth* 14% 12% to 13%
Reported Sales Growth 16% 10% to 11%
EBIT Margin 20.0% 20.2% to 20.5%
Restructuring $11M ~$25M
83
 Climate Technologies Summary
2009-11 2011 Sales by Product
2009 2010 2011 CAGR Other
Flow
Sales $3.2B $3.8B $4.0B 12% 8% Controls
5% Temperature
Earnings $411M $691M $709M 31% 6% Sensors
% of Sales 12.9% 18.2% 17.8% 7% Temperature
Controls &
Compressors 74% Electronics
Restructuring $48M $13M $11M
ROTC 22% 35% 35%

Major Markets Served % Sales 2011 Sales by Geography

Residential HVAC 42% Latin America Middle East / Africa

Refrigeration 28% 6%4%

Europe
Commercial HVAC 22% 13%
Solutions & Services 8%
54%
Asia
23%
United States
& Canada

85
Emerson Climate Technologies – Key Messages
– Maintain Investments for Growth
 Key markets (China, W. Europe & U.S. Residential) are
struggling in the first half of the year. Pace of recovery is
uneven and not real clear

P Price recovery and Cost Reduction drive profit improvement

in the second half

 Continued Global Investments in technology are paying off

 Expanding Distribution and Mid-Tier Offerings in emerging

markets

P Acquisitions Driving Strong Growth in Industrial Markets and

electronics

 Leading the market shift to Electronics based platforms

 Robust Facility Management Capabilities drive relevance in

retail space
86
2012 Will be a Challenging Year, but We are Still
Investing for Future Growth
● We have made a step function improvement in profitability
through enhanced products and restructuring actions
Enhanced Products
● Successfully transitioned markets to scroll technology
● Higher value products like digital scroll, variable speed and
electronics
Rebalancing Operations
● Strong global footprint as a result of past restructuring
● Investing in scroll machining in Asia to optimize supply
chain delivery
● Expanding commercial scroll capacity in U.S. and Europe

Our Engineering and Manufacturing Footprints are Optimized to

Meet Global Customer Demands and Flexibility
87
Global Engineering and Technology
Capabilities to Serve Our Customers

Expanding
Sales Force

Global Engineering Centers

Our Ability to Manufacture and Service Multiple Products in Each

Region Provides a Competitive Advantage
88
Global Refrigeration End Markets Continue
to Grow

This slide has been omitted

89
 Long-Term Market Fundamentals
Remain Solid and Our Strategy Unchanged
Emerson Scroll Sales ($B) Strategy
$4
• Refresh and Extend Platforms
$3.3B
$3 Through New Products
• Differentiate Through On-Board
$2
CoreSense Electronics
$1 • Value Added Modulation
• Optimized and Cost Reduced
$0
1992 1996 2000 2004 2008 2012E 2016
Platforms
2015T

Key Activities
• Expand Variable Speed to Europe and Asian Markets
• Leverage Scroll into Large Refrigeration Applications
• Grow Digital Scroll into New Applications
We are Migrating Towards Electronics On-Board Our Scroll
Compressor Platforms
90
Reinvesting in New Scroll Products
to Meet Market Needs
Residential Air Conditioning Commercial Scroll

• Targets Higher
Efficiency Applications • On-Board Electronics
• Smart Scroll with • Cost Reduced
CoreSense Diagnostics • Best In Class
• Meets 2015 Regional Efficiency
Standards Needs

Residential Heating Stationary Refrigeration

• On-Board Electronics
• Up to ~30% Greater • ~7% Efficiency Increase
Efficiency
• Significant Cost
• Superior Comfort Reduction
And Energy Savings

New Products Drive Improved Performance/Value and Maintain

Our Leadership Position
91
 Our Electronics Strategy is to Lead the Market
Transition to Communications
Discrete System Enterprise

• CoreSense Provides IP • Allows for Integrated, • Enable Enriched

Rich Capabilities Flexible Solutions Business Models

• New Refrigeration Scroll • Control, Protect, and • Provide Rich Data for
and High Efficiency Connect Are Key Control and Software
Residential Scroll are Capabilities Algorithms
100% CoreSense
Global Platforms Will Drive Our Operational Efficiency and
Enable this Vision
92
 Climate Technologies – Outlook: Flat Sales
• Key global markets struggling in the first half of the
year. Pace of Recovery is Uneven and Not Real Clear
• Global Investments in technology are paying off
• Leading the market shift to Electronics Based Solutions
• Expanding Distribution and Mid-Tier Offerings in
emerging markets
• Robust Facility Management Capabilities drive
solutions in retail space
2011 2012E
Underlying Sales Growth* 3% (1%) to 2%
Reported Sales Growth 5% (2%) to 1%
EBIT Margin 17.8% 17.8% to 18.2%
Restructuring $11M ~$15M
93
 Industrial Automation Summary
2009-11 2011 Sales by Product
2009 2010 2011 CAGR Industrial
Equipment Power
Power
Sales $4.2B $4.3B $5.3B 13% Distribution Generation
6%
Earnings $470M $591M $830M 33% 9% 22%
% of Sales 11.3% 13.8% 15.7% Fluid
Automation 16%
Restructuring $47M $48M $32M
ROTC 13% 15% 21% 12% 35%
Mechanical Motors &
Power Trans. Drives
Major Markets Served % Sales
2011 Sales by Geography
Commercial / Industrial 19% Middle East /
Africa
HVAC 14% United
Asia 4% States &
Power, Energy, & Utilities 14% 16% Canada
Latin
Building & Construction 8% America 3% 39%
Other 45%
38%
Europe
95
Industrial Automation – Key Messages
● Emerging Markets will continue to be the major source of growth:
doubling sales every five years since 2001
● Power Generation Remains the Fastest Growing Segment of the
business; Strong partnership with Caterpillar continues
● New generation drives products to achieve Clear Technology
Leadership
● Restructuring Efforts of the past two years has delivered record
margin in 2011. Continued rebalancing will actively continue in
Europe in the context of a slowing economy – drive record margins
● Selectively participating in Renewable Energy Opportunities (wind
and solar).
● Europe Uncertainty has impacted the business. Europe industrial
business could be flat at best or down
● Tough Year over Year Sales Comparisons
96
 Industrial Automation World Market Summary:
Our Markets Continue to Grow Faster than GFI
Index Global Growth Index
Segment 2012 Outlook Value

Power 250 Textiles

Generation
Motors &
Utilities
Drives 200
Electrical
Mechanical
Power Construction
Transmission GFI
150
Fluid
Automation
Power
Distribution 100
Industrial
Equipment
50
2000 2005 2010 2015T
Source: IHS Global Insight. Indexed to Base Year 2000 97
Sales and Engineering Increases in 2011 Have
Accelerated Our Emerging Market Growth

This slide has been omitted

98
Power Generation
 World Leading Manufacturer of Alternators for diesel and gas
generators with ~30% global participation
– U.S. genset market projected to remain strong

 Returned to 2008 Peak Level in 2011

 Global Manufacturing presence and global product lines (upper-tier
and mid-tier)
 Demand drivers for Distributed Power Expected to Remain Strong
– Emerging markets power needs
– Back-Up power for data centers, telecom, oil & gas and critical
manufacturing processes
 Strong partnership with Caterpillar
– Renewed contract through 2017
– Expecting growth in China following Caterpillar’s announcement in 2011
of major engine manufacturing investments in China and India

99
Power Generation

This slide has been omitted

100
 China: Global Economic Headwinds
Exist But Positioned for Growth
Mining/Infrastructure:
First worldwide sale in
Drives: water-cooled direct drive
13% regional headcount cutter motor application
increase and 4 specific mid-
tier product launches Fluid Controls:
targeting 18% sales CAGR Nuclear Program Manager
leading localization

Customer Facing Resources

445
Wind Pitch Control: +127
Received 20 orders after Industrial Motors:
hiring a dedicated account 318 People devoted entirely to
manager penetrating new regions
Have become sole supplier
on 2.5 MW range
2010 2012E
Oil and Gas:
Breakthrough in Customer’s 1st
Fluid Power: Drilling Rig project for jacking
Fluid Power Specialist equipment
successfully localized products Oil & Gas vessel opportunity has
with an immediate $150K of resulted as a pull-through project
attributable business
101
 Europe: Global Economic Headwinds Exist
But Positioned for Growth
FLUID AUTOMATION PRINTING
Next Generation Electronics Drives from Control
Platform from Asco Numatics: Techniques:
• Process Control and Automation • Demanding
needs met with multiple bus specifications met
protocols while flexible for prima flatbed
configuration (patent) reduces printers from
installation cost Reggiani Macchine
S.p.A.
140

130
ELEVATORS
120 Drives from Control Techniques:
• The renovation of six lifts at Frauenfeld Hospital
in Switzerland has led to improved efficiency
110 and operation with a 30% increase in capacity

100

90

80
2000 2002 2004 2006 2008 2010 2012E

Europe GFI Industrial Automation Europe

102
 Industrial Automation – Outlook: Record
Margins
• Growth will be negatively impacted by Slowing European
Economy, negative currency – and Very Tough Comparisons
• Still expecting Solid Double Digit Growth in Emerging
Markets
• Accelerating Restructuring in Europe with economic
slowdown
• Maintaining Favorable Price / Cost position

2011 2012E
Underlying Sales Growth* 21% 1% to 4%
Reported Sales Growth 23% (1%) to 2%
EBIT Margin 15.7% 16.8% to 17.2%
Restructuring $32M ~$15M
103
 Commercial & Residential Solutions Summary
2009-11 2011 Sales by Product
2009 2010 2011 CAGR
Professional Appliance
Sales $1.7B $1.8B $1.8B 3% Tools Solutions
22%
Earnings $0.3B $0.4B $0.4B 17%
40%
% of Sales 16.0% 20.3% 20.4%
Restructuring $16M $5M $7M
ROTC 19% 25% 27% 38%
Storage
Solutions

Major Markets Served % Sales 2011 Sales by Geography

ROW
Retail 41% Asia
5%
4%
Commercial 29% Europe
7%
Industrial 19%
Healthcare 7%
84%
Residential Construction 4%
United States
& Canada

105
 Business Segment Evolution

2007 2010 2012E

Appliance Tools Professional Appliance
Tools
Components Tools Solutions
18% 23%
24% 26%
37% Appliance 38%

23%
Storage 25%
10% Commercial 37% 39% Storage
Motors Solutions
Appliance Storage
Commercial &
Appliance & Tools Tools & Storage Residential Solutions
• Divested Emerson Appliance • Divested Emerson Heating • Continue to Reposition the
Motors and the U.S. Commercial Products in September 2011 Business Mix towards Higher
and Industrial Motors Business in Growth & Stronger Profitability
September 2010
• Divested Emerson Appliance
Motors Europe business in 2008
106
Primed to Capitalize on Past Aggressive
Restructuring + Current Economic Tailwinds

This slide has been omitted

107
 Residential Businesses Awaiting
Strong Recovery - Apparently on Horizon
2.5 (in millions)

Peak -
2.1M
Optimistic
2.0 Mar 06
1.9M

Conservative
1.5 Current - 1.4M
Trough - 0.6M
0.5M Dec11
Jan09
1.0

0.5
Recovery Not as Strong
as Expected So Far
Housing Starts
0.0
2006 2007 2008 2009 2010 2011 2012E 2013F 2014F 2015F 2016F

Frozen Residential Markets Showing Signs of Thawing

Source: IHS Global Insight 108
 Commercial & Residential Solutions: Growth in
2012!
 Forecast for Non-residential Businesses shows steady, moderate
growth with opportunities to capitalize on pent-up demand for
infrastructure rebuild
 Forecasted Residential Recovery is now appearing to be underway
 Consumer Businesses have stabilized and are positioned for growth
 Focus on Delivering New Innovative Products to meet changing needs
and accelerate growth in key global markets

2011 2012E
Underlying Sales Growth* 5% 5% to 7%
Reported Sales Growth 5% 2% to 4%
EBIT Margin 20.4% 20.8% to 21.1%
Restructuring $7M ~$8M
109
 Network Power Summary
2011 Sales by Product
2009-11
2009 2010 2011 CAGR Other Embedded
OSP Computing &
10% Power
Sales $5.5B $5.8B $6.8B 12% DC Power 4%
7% 24%
Earnings $0.6B $0.8B $0.8B 14% Infrastructure
Mgmt & 9%
% of Sales 10.6% 13.7% 11.1% Monitoring
19%
12% AC Power
Restructuring $118M $25M $20M Precision
Cooling
15%
ROTC 12% 12% 9%
Services &
Solutions
2011 Sales by Geography
Major Markets Served % Sales
Middle East / Africa
Computing 42% Latin America
3%
Communications 30% 6%
United
Service 16% Europe 19% 39% States &
Canada
Industrial 6%
33%
Other 6%
Asia
111
Emerson Network Power – Key Messages
● Despite near term challenges, long term End Market Growth
Remains Solid

– Mature markets will be slower

– Benefit from 4G / LTE telecom technology deployment

– Emerging markets present ample growth opportunities

● The Chloride and Avocent Integrations are on Track,

accelerating in 2012

● The Trellis product launch is Exceeding Expectations and

provides a robust platform for future growth

● Fast and flexible Integrated Solutions with best-in-class

technology enabling key project wins

● Shifting market dynamics in the Embedded Computing and

Power business represent significant challenges
112
Vast Majority of Network Power is in Very Good
Shape and Performing Well

This slide has been omitted

113
Vast Majority of Network Power is in Very Good
Shape and Performing Well

This slide has been omitted

115
Chloride and Avocent Integrations are on
Track and Accelerating in 2012

This slide has been omitted

116
Chloride Product Innovation – AC Power

This slide has been omitted

117
Chloride Product Innovation – Industrial UPS

This slide has been omitted

118
 Infrastructure
Management &
TrellisTM Platform Provides Unique Monitoring

Integrated Data Center Solution

Universal Management Gateway is the
Only Unified Device that Manages both
IT and Facilities Equipment
Data Center Infrastructure
IT Capabilities Facilities Capabilities
Management (DCIM) Solution
Inventory Manager
Data Center Visibility and Control
Virtual Insight

• Device Discovery Universal

Change Planner
• Real-Time Data Management
Collection Gateway Process Manager
• Applications
Scenario Planner
• Scalability
Site Manager

Connects Infrastructure Equipment and Device Energy Insight

Data – Trellis Applications Reveal Insights to
Optimize Performance and Fully Use Emerson’s Power System Manager
Best-in-class Technologies, Driving Incremental
Pull-Through Sales of Network Power Products Cooling System Manager

119
 Infrastructure
Management &
Monitoring

TrellisTM Early Platform Momentum

Prelaunch Success
• 5 Early Adopters
• 30 Betas Already Deployed
• 100% of First Production Run Allocated Emerson’s Trellis hardware and
February 2012 software platform has a uniquely
integrated approach, providing
• Universal Management Gateway
visibility across all IT and facilities
systems, and enabling managers to
optimize their performance while
March 2012 delivering enterprise class
scalability and performance…
• Trellis
Platform
Applications Research Director,
The 451 Group
Future
Waves of Functionality
• Capacity Simulation
• Zone Development Industry Analysts have Embraced
• Alarm Management the Integrated Platform
• Workflow Automation Management Approach
120
Vast Majority of Network Power is in Very Good
Shape and Performing Well

This slide has been omitted

121
Emerson Has a Vast Global Sales and
Service Presence in the Industry

This slide has been omitted

122
 Roadmap to Solutions Service & Solutions

Example: NBN Australia (Telecom)

Roadmap To Service and Solutions
Estimated
50% 10% 40% Revenue (%)
Product Platforms Integration Offerings Services
Project Maintenance Performance
Precision Cooling
Data Center • Consult & • Startup / • Optimize
AC Power
Advise Commissioning • Monitor
• Consulting • Time &
Racks & Accessories Infrastructure • Alarm
Engineering Materials
Mgmt and • Diagnose
KVM & Appliance • Design • Repair &
Monitoring Maintenance • Dispatch
• Project
DC Power Management • Parts • Assessments
Telcom & • Energy Audit • Asset Mgt
Switch & Control Outside Plant
• Site Audit
• Assessments
Renewable Energy
Engineered
Industrial Power Modules

Win of NBN Australia Telecom Demonstrates Our Customers’ Confidence in

Our Ability to Deliver Solutions
123
Emerson wins $100M Order for Service & Solutions

Australia Fiber Optic Plan – Will Expand

Emerson Chosen For:
Best In Class Technology
The First National
Wholesale-Only, Open • Product Platforms Delivered with
Access Broadband Network State of the Art Technology,
Rolling Out to All Quality, Reliability and Efficiency
Brisbane
Perth
Australians
Sydney
Adelaide
Project Management

Melbourne
• Manage Preparation, Civil and
Electrical Works, and
Construction Phases for Multiple
Sites

Fast, Flexible Solution

• Delivering Highly Engineered
Containerized Solutions
• Building Blocks On Global
Service & Solutions Capabilities
Emerson Products in 10 Facilities
across Australia
124
Vast Majority of Network Power is in Very Good
Shape and Performing Well

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125
Telecom Expansion in Emerging Markets - Africa

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126
Vast Majority of Network Power is in Very Good
Shape and Performing Well

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127
Short Term Spending Stall Combined with
Long Term Directional Shift Impacting
Embedded Computing & Power Business

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128
Historical Embedded Computing & Power
Performance

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129
Q1 2011 to Q1 2012
Network Power EBIT Margin Bridge

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130
 Network Power – Outlook: Regain Profitability
● Despite near term challenges, long term End Market Growth Remains
Solid

● The Chloride and Avocent Integrations Are on Track, accelerating in

2012

● The Trellis product launch is Exceeding Expectations and provides a

robust platform for future growth

● Fast and flexible Integrated Solutions with best-in-class technology

enabling key project wins

● Embedded Computing and Power must rebuild their business model,

to respond to shifting market dynamics

2011 2012E
Underlying Sales Growth* 6% 1% to 3%
Reported Sales Growth 17% 0% to 2%
EBIT Margin 11.1% 11.3% to 11.7%
Restructuring $20M ~$62M
131
Investor Conference – Agenda
February 14, 2012
Time Title Presenter
8:30 – 10:30am Strategic Overview D. N. Farr
10:35 – 11:15am Rebalancing Global Operations E. L. Monser
11:15 – 11:45am Competing: Emerson Style C. A. Peters
11:45am Wrap-Up and Q&A
 Reconciliation of Non-GAAP Financial Measures
The following reconciles each non-GAAP measure (denoted with an *) with the most comparable
GAAP measure ($M):

2012E Q4 FY11 Q4 FY10 2011 2010 2009 2008 2007

Operating Profit* ~4,400 - 4,565 1,251 1,019 4,229 3,509 3,144 4,023 3,436
% of sales* ~18% 19.1% 17.4% 17.5% 16.7% 15.6% 16.9% 16.4%
Interest Exp and OD, Net ~(640) (158) (181) (598) (630) (694) (378) (329)
Pretax Earnings ~3,760 - 3,925 1,093 838 3,631 2,879 2,450 3,645 3,107
% of sales ~15.5% 16.7% 14.3% 15.0% 13.7% 12.2% 15.3% 14.8%

2006 2005 2004 2003 2002 2001 2000

Operating Profit* 2,993 2,508 2,156 1,843 1,757 2,116 2,313
% of sales* 16.1% 15.9% 15.3% 14.7% 14.3% 15.3% 16.8%
Interest Exp and OD, Net (298) (358) (360) (473) (232) (565) (303)
Pretax Earnings 2,695 2,150 1,796 1,370 1,525 1,551 2,010
% of sales 14.5% 13.6% 12.8% 10.9% 12.4% 11.2% 14.6%
 Reconciliation of Non-GAAP Financial Measures
The following reconciles each non-GAAP measure (denoted with an *) with the most comparable
GAAP measure ($M):
2012E 2011 2010 Q4 2011

Underlying Sales* +4% - +6% 11% -1% 9%

Currency/Acq/Div ~(2%) 4% 6% 3%
Net Sales +2% - +4% 15% 5% 12%
Commercial &
Process Management Industrial Automation Network Power Climate Technologies Residential Solutions
2012E 2011 2012E 2011 2012E 2011 2012E 2011 2012E 2011

Underlying Sales* +12% - +13% 14% +1% - +4% 21% +1% - +3% 6% (1%) - +2% 3% +5% - +7% 5%
Currency/Acq/Div (2%) 2% (2%) 2% (1%) 11% (1%) 2% (3%) 0%
Net Sales +10% - +11% 16% (1%) - +2% 23% 0% - +2% 17% (2%) - +1% 5% +2% - +4% 5%

2012E 2011 2010 2009 2008 2007 2006

Operating Cash Flow ~3,500 3,233 3,292 3,086 3,293 3,016 2,512
Capital Expenditures ~(700) (647) (524) (531) (714) (681) (601)
Free Cash Flow* ~2,800 2,586 2,768 2,555 2,579 2,335 1,911

Sales(1) ~25,000 24,222 21,039 20,915 24,807 22,572 20,133

% Sales
Operating Cash Flow ~14% 13.3% 15.6% 14.8% 13.3% 13.4% 12.5%
Capital Expenditures ~(3%) -2.7% -2.5% -2.6% -2.9% -3.0% -3.0%
Free Cash Flow* ~11% 10.6% 13.1% 12.2% 10.4% 10.3% 9.5%
(1) Sales as Originally Reported