Charles A. Peters Senior Executive Vice President February 6, 2009

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.

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.

Growth Initiatives

Platform Management

Build distinctive capabilities

Anticipate global trends

Foundation Technology Engineering

Customer Support

Resources

Customer Insight Innovation

Information Access

Emerging Markets Efficient Energy Power Generation Datacenter Infrast. PlantWeb Service & Solutions Telecom Solutions Marquee Accounts

? ?

? Marine

Embedded Computing Network Power

Appliance and Tools Process Management Industrial Automation Climate Technologies

X

Wireless?

Intelligent Home? Smart Automation?

Efficient Power

Respect competitive balance

Disciplined processes - information

Deliver on customers needs

Align with macro trends

Provide solutions

Create new platforms

Strong management practices deliver consistent growth and sustain price realization – expanding value

Tactics and targets

Research capacity

Tools and databases

Growth initiatives

Broad lifecycle models

Acquisitions

This slide has been omitted

Wholesale Price Index G7 Industrial Prod. Index Emerson Price Increase

Recession Recession Recession

Emerson price disciplines will attempt to offset downward pressure of likely material deflation

+ + + + ≈ ≈ – – – – – + + + + ? Inflation Emerson Price

Price Quotes/Agreements Peer Comparisons Enforce Policies Approval Workflow

PriceConsoleProfitAnalyzer DealManager

• Historical transaction data • Prices, guidance, policies • Contracts, agreements, quotes

PriceDatamart

Historical Tracking Performance Assessment Opportunity Identification

Setting List Price Change Negotiation Setting Guidelines

Dashboards

Data Access

Analytics

Robust Worksheet Interface Proposals

Analysis of Price Potential and Importance Improves Decisions

Unique maps for all divisions Increasing Importance

Incr

easi

ng P

rice

Pote

ntia

l

Increase scrutiny

Add autonomy

Invest

Deeper segmentation supports list price, quoting and portfolio investment decisions

Global Price Data Warehouse

Visual Data Mining Tools

Parameters Parameters

Project Status P&L

Analytical Database

Quote Database

Analytical Database Quote Database

Sale

s In

vo

ice P

rice

Extended Discount %

Expedited Order Discount Distribution

Expedited Orders by Type of Business Distribution of Discounts

Unapproved deals

Analytics and better visibility allow management to scrutinize

more transactions

Quote Submission

Inbox Approval Workflow

Deal Approval

Approval 1

Floor Price

50%

60%

Multiplier

Historical Projects

1.0

0.8

0.6

0.4

0.2

0.0

Variable Cost

Target Multiplier

Win Probability

%

List Price

Current Agreements

30% 20%

Approval 2 70%

80%

40%

Gross Margin

66%

33%

Project Size ($000) 10 100 1000 20 50 200 500 2000

<25%

>25%

Median

Win Loss Open Quote

Vendavo Live

Division 1 Division 2

Months Relative to Launch

∆ Price Realized ∆ List Price Change

Eliminate leakage Manage quotes Savvy discounting Enforce authority

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11

Emerson Research Projects

Increased research capacity and breadth – at best costs

21 30

40

60

90

Comprehensive

Qualitative

Quantitative

Comprehensive Qualitative Quantitative

China

“New to the World” and “New to the Business” expand to 30+% of new product portfolio

% of New Product Sales

New to the World

New to the Business

Major Revisions

Minor Revisions

Opportunities Implications Megatrends

Environment

Developing World

Increasing Wealth

Aging

Connectivity

Safety / Security

Mobility

Resource Scarcity

Quality air/water Emissions

Infrastructure Urbanization

Purchasing power

Healthcare Workforce automation

Wireless Network infrastructure

Monitoring

Transportation

Energy capacity Renewable sources

Processing Monitoring Efficiency

Power & Water Roads Retail footprint

Vehicles Appliances Climate system Homes

Healthcare/Workplace information Productivity solutions

Network bandwidth Information applications

Sensing Tracking

Vehicles Roads Retail footprint

Refining Gas Wind Solar Power & Water Efficiency

Prevented Annual Output M Tons CO2e Potential Emerson role

Emerson realized

550 ppm 450 ppm 400 ppm

2030 CO2e Emissions Reduction Targets

32,000 M 40,000 M 25,000 M

2030 Projected

Emerson Emissions

Residential HVAC

Plant Web

Data Centers

Power Gen

Commercial HVAC Disposers Refriger-

ation

700 ppm 58,000 M

Source: The McKinsey Quarterly, 2007 Number 1

Current

45,000 M Tons

385 ppm

Scroll Compressors

Optimized Ductwork

Programmable Thermostats

Variable Speed Blowers

Key improvements System efficiency:

8 13 SEER Refrigerant conversion:

R12 (GWP=8500) R410A (GWP=2088)

Installation verification: 0% 20% Leak Reduction

Programmable thermostats: 0% 50% Penetration

US Rest of World # Households with HVAC Systems 80M 35+M Tons CO2 Reduction – Current 14M 8M Potential Tons CO2 Reduction – 2030 15+M 55+M

Improved Refrigerants

Expansion Valves

Improving Data Center Energy Efficiency

Current Efficiency Trend

Best Practices

Annual Usage Billion kWh

Power Supply Efficiency 88%+ Reduction in Power Input per Unit Cooling Capacity 25%-45% Tons CO2 Reduction – Current 10M Potential Tons CO2 Reduction – 2030 35M

Integrated Rack

Precision Cooling

Enterprise Monitoring System

Uninterruptible Power Systems

Generator

Automatic Transfer Switches

Key improvements Thermal efficiencies upgrades

through added instrumentation and optimization

• 3%+ incremental advances Advancing supercritical and

nuclear capabilities

MW of Installed Power Plant Controls 750,000 Number of Supercritical Plants 400+ Tons CO2 Reduction – Current 21M Potential Tons CO2 Reduction – 2030 30+M

Monitoring

Data Acquisition

Predictive Intelligence Adaptable Platform

Reducing Emissions Through Household Disposer Use

Sewage System Natural Fertilizer

Methane

Landfill

Power Generation

US Rest of World # Households 111M 1,000+ M Current Disposer Penetration 50% ≈ 1% Tons CO2 Reduction – Current 3M - Potential Tons CO2 Reduction – 2030 10M 10+M

Garbage Truck Fertilizer Plant Power Generation

CO2 CO2 CO2

Process Management

Network Power

Industrial Automation

Climate Technologies

Embedded Computing & Power

Appliance & Tools

Solution Sales as % of Total Sales

PlantWeb Wireless Measurement Skids

Main Automation Contractor Datacenter Telecom Sites

Joining Automation

Electro-mechanical Packages

Retail Solutions

Residential HVAC

Residential Storage

Vision Systems

Value Offering Architecture

Selling Skills

Technology Approach Delivery

Broad – multi-division

Deep

Unique – comparitive advantage

Lever value add

Understand Create bundles

Lifecycle cost

Customer chain

Leverage points

Benchmarks

Customer advocates

Business models

Multi- function

Lengthy cycles

Gain acceptance

Architect

Intelligent system

Middleware

User interfaces

Knowledge management

Tailor to customer

Integrated platform

Coordinate internal – external expertise

Perpetuate engagement

1x

2x

3x

4x

5x Value Level

Controllers

Sensors

Machines

Delta V I/O

Diagnostics

Archiving

Analytics

Backup

Monitoring

Visibility

Silo-based

products

Product bundling

Combine advice & service

Custom products on needs

Enhance customer process

Fully integrated partners

Products Solution Selling Specifications Knowledge and model

Technologists Price focus Quotas Narrow task

vs. Benchmarks Collective value Lifecycle Find leverage Tailored

1 1 1

Interfaces Portal Mail

Common Emerson Middleware Platform

Applications

Data In

Backup

Security Mobile

Protocols Connectivity

Networking

Telecom Offices

Datacenter Retail Solutions

Residential HVAC

Automation Bundles

Residential Storage Vision Systems

Telecom Sites

Monitoring & Alarm

Transactional

Design

Configuration Mgmt.

Metrics

Remote Assessment

OEM

Haerbin

Changchun

Shenyang

Tianjin Beijing

Shijiazhuang Taiyuan

Huhehaote

Shanghai

Fuzhou

Hangzhou

Nanjing Hefei

Wulumuqi

Lanzhou Xian

Chengdu Chongqing

Guizhou

Kunming

Zhengzhou

Wuhan

Changsha Nanchang

Guangzhou

Shenzhen

Jinan

Nanning

Haikou

Typical City Office • Network design • Project management

• Technical support • Relationship management

Headquarters • Supply chain • Application development

• Product development

• Research and innovation

Supporting key customers in the China telecom industry through network of city offices

Back Office • Monitoring

Industrial Automation

Network Power Systems Emb. C&P

Process Management

Climate Technologies

Appliance & Tools

United States

Europe

Asia

MEA Latin America ROW

We are fundamentally stronger as we go into this downturn as we have shifted our focus to high-growth areas

Marine

Asset Management

Global $2+B market; growing at 6%

2008 Sales ~$240M

Embedded Computing

Telecom Rack

Telecom Systems

System “Blade”

Processing Module

2008 Sales ~$450M

Medical Imaging

Factory Automation Defense Telecom

Global $8+B market; growing at 11%

  Manage price –  Through deflationary period –  Tools to enhance visibility and control

  Research for customer insight –  Globalize capability –  Feed innovation for truly ‘new’ progress

  Align with trends –  Environmental

•  Efficiency •  Emissions control

  Build solutions presence –  Expand footprint across all businesses –  Enrich skills

  Improve portfolio mix –  Business platforms –  Geography

Advancing capabilities combined with post-2010 global economic rebound create

strong growth and value foundation