2015 Investor Conference Emerson Overview David N. Farr Chairman and Chief Executive Officer February 19, 2015 Non-GAAP Measures In this presentation we will discuss some non-GAAP measures (denoted with an *) in talking about our companys 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. 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 and subsequent reports as filed with the SEC. 2015 Investor Conference Emerson Overview David N. Farr Chairman and Chief Executive Officer February 19, 2015 Non-GAAP Measures In this presentation we will discuss some non-GAAP measures (denoted with an *) in talking about our companys 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. 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 and subsequent reports as filed with the SEC. Investor Conference Agenda Thursday, February 19, 2015 3 TimeTitlePresenter 9:00 10:05amEmerson OverviewDavid Farr 10:05 10:30amInternational Growth / Manufacturing Repositioning in a Stronger U.S. Dollar Environment Ed Monser 10:30 10:55amInternet of Things and EmersonCharlie Peters 10:55 11:15amProcess ManagementSteve Sonnenberg 11:15 11:35amNetwork PowerScott Barbour 11:35 11:55amClimate TechnologiesEd Purvis 11:55 12:30pmQ&A 12:30 1:30pm Lunch Investor Conference Emerson Attendees 4 Corporate David FarrChairman and Chief Executive Officer Ed MonserPresident Frank DellaquilaExecutive Vice President and Chief Financial Officer Ed PurvisChief Operating Officer Charlie PetersSenior Executive Vice President Steve PelchVice President Organization Planning and Development Kathy Button BellVice President and Chief Marketing Officer Kathy McElligottVice President and Chief Information Officer Craig RossmanDirector Investor Relations David BersagliniVice President Planning Operating Management Scott BarbourExecutive Vice President, Network Power Bob SharpExecutive Vice President, Climate Technologies Steve SonnenbergExecutive Vice President, Process Management Emersons 2014 Financial Performance 20131 20141 2013-14 Change Sales $24.7B$24.5B(1%) Underlying Growth*3% GP % 40.3%41.4%+110 bps EBIT % Adjusted* 16.0%16.5%+50 bps Operating Cash Flow$3.6B$3.7B1% Shareholder Payout Ratio63%61% EPS (GAAP)$2.76$3.0310% EPS Adjusted*$3.54$3.756% Dividends per share$1.64$1.725% ROTC Adjusted*19.6%20.2%+60 bps Emerson Continued to Reposition the Company Through Selective Divestitures, Strategic Investments for Long-Term Increased Organic Growth and Higher Levels of Profitability -- At the Same Time Returning Significant Cash to Shareholders5 12014 and 2013 results exclude $508M and $528M ($0.72 and $0.78 per share) of goodwill impairment and income tax charges 2014 Performance 6 2014 Investor DayKey Messages and Takeaways 2014 Performance Capitalize on our proven tools for growth, profit improvement and returned cash to shareholders global penetration, technology innovation, connection to customers and service & solutions Underlying sales growth* of 3% EBIT margin* 16.5% Returned $2.3B to shareholders 20+% return on total capital* Continue build-out of Global Franchises in each of our core segments by utilizing technology to maintain our market leadership Focused on long-term strategic investments to increase organic growth, relevance, value creation and profitability: Invested $110M in strategic investments for long-term value creation Strategically re-evaluate our portfolio of businesses and remix into higher margin, higher growth spaces divestiture cash flow will be returned to shareholders through additional share repurchase Divested Artesyn & Connectivity Solutions Sales: $1.4BAcquired 7 Companies for $1.2B Note: 2014 results exclude a $508M ($0.72 per share) of goodwill impairment charge Emersons 2014 Financial Performance 20131 20141 2013-14 Change Sales $24.7B$24.5B(1%) Underlying Growth*3% GP % 40.3%41.4%+110 bps EBIT % Adjusted* 16.0%16.5%+50 bps Operating Cash Flow$3.6B$3.7B1% Shareholder Payout Ratio63%61% EPS (GAAP)$2.76$3.0310% EPS Adjusted*$3.54$3.756% Dividends per share$1.64$1.725% ROTC Adjusted*19.6%20.2%+60 bps Emerson Continued to Reposition the Company Through Selective Divestitures, Strategic Investments for Long-Term Increased Organic Growth and Higher Levels of Profitability -- At the Same Time Returning Significant Cash to Shareholders7 12014 and 2013 results exclude $508M and $528M ($0.72 and $0.78 per share) of goodwill impairment and income tax charges 2014 Performance by Business2014 Investor DayKey Messages and Takeaways 2014 Performance Process Management Benefit from strong growth in core market Continue to expand served markets with industry leading technology breakthroughs - wireless and pervasive sensing Increased global penetration -- 5 years in a rowNetwork Power Improving core industries to support underlying sales growth -new products launched and have broader industry solutions Continued expansion into critical DCIM market Profitability improvement performance not there yet -- but now accelerating restructuring to get margins improving Industrial Automation Benefit from new technology advancements in discrete automation and generator solutions Expected significant tailwinds from rebounding European economies Hurt by the weak global back-up power market Climate Technologies Accelerate geographic expansion Variable speed and new refrigerant product launches to provide strong incremental growth New product launches happened on time -- invested in global penetration: Increased investments for increased penetration Commercial & Residential Solutions Significant runway to further penetrate core markets -- China and U.S. Execution on the Grind2Energy enriched business model, investing for expanded U.S. disposer household use 8 February 2014 Forecast Actual 20.5-21.0% 4-5%20.9%4% Margin% Underlying Growth %* 10.3-10.6% 1-3%9.0%2% 16.0-16.3% 2-4%16.1%2% 18.5-18.7% 4-6%17.9%6% 22.0-22.2% 3-5%22.1%3% 2015 Outlook: Our Focus Is To Be Better and Execute Better For Shareholders 20141 2015E2 2014-15E Change Sales $24.5B$23.6 24.2B(4%) (1%) Underlying Growth*3 - 5% GP % 41.4%~41.9%+50 bps EBIT % Adjusted* 16.5%~16.8% +30 bps Operating Cash Flow*$3.7B$3.6B $3.7B(3%) 0% Shareholder Payout Ratio61%~102% EPS (GAAP)$3.03$4.50 4.6049 52% EPS Adjusted*$3.75$3.80 3.90 1 4% Dividends per share$1.72$1.889% ROTC Adjusted*20.2%~21.0%+80 bps 9 1 Results exclude a $508M ($0.72 per share) goodwill impairment charge 2 Excludes gain from Power Transmission Solutions (PTS) divestiture (~$0.75) and accelerated restructuring expense (~$0.05);Operating cash flow excludes ~$400Min cash taxes for PTS divestiture [Includes cash from PTS divestiture] Emersons 2015 Key Financial Guidance % Change 20141 2015 Forecast2 2014-15E Sales (GAAP)$24.5B$23.6 $24.2B(4%) (1%) Underlying Growth*3%3 5% Gross Margin41.4%~41.9%+50 bps EBIT Margin Adjusted*16.5%~16.8%+30 bps EPS (GAAP)$3.03$4.50 $4.6049 52% Dividends Per Share$1.72$1.889% Operating Cash Flow*$3.7B$3.6B $3.7B(3%) 0% Cash Returned to Shareholders$2.3B$3.2+B~40% Other assumptions: FX Sales Headwinds ~$1B; impact (4%) (5%) Divested Power Transmission Solutions (PTS) for $1.4B on 1/30/2015 lost annual sales of $605M PTS After-Tax Gain: ~$520M net, EPS ~$0.75 Accelerated Restructuring on Top of Planned $50M: ~$50M, EPS ($0.05) Tax Rate: ~31% Share Repurchase: $2+B (Includes PTS after-tax proceeds) Acquisitions: ~$500M Capital Expenditures: ~$800M Price / Cost: Net favorable -- Slightly negative price and strongly negative net material inflation 10 Global GFI: Fiscal Year 20152014-15 Assumptions% Change U.S.4 5% W.Europe0 1.5% E.Europe/Russia