First Quarter 2009 Earnings Conference CallFebruary 3, 2009Safe 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 statements 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 call we will discuss some non-GAAP measures (denoted with *) 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 available at our website www.emerson.com under Investor Relations.

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First quarter sales down 2% to $5.4 billion

– Underlying sales* flat, with strong international and emerging market

growth

Operating profit margin* contracted 20 basis points to 14.8%

Earnings Per Share from continuing operations of $0.60, down 8%

compared to $0.65 in the prior year quarter

Operating cash flow of $319 million and free cash flow* of $187 million

Restructuring costs in the quarter of $43 million, constant and

continuous repositioning efforts

Balance sheet remains strong and flexible

– Net Debt to Net Capital ratio at 30%

– Operating Cash Flow to Total Debt solid at 60%

First Quarter 2009 Highlights

2009 Will Be Tough – But Emerson Is Well-Positioned

and Our Financial Position is Strong

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EmersonFirst Quarter Results

($Mil excl. EPS) 2008 2009

Sales $5,520 $5,415

Operating Profit* $826 $803OP%* 15.0% 14.8%

Earnings - Continuing Ops. $519 $458Earnings% 9.4% 8.5%

Dil. Avg. Shares 796.5 767.9

EPS – Continuing Ops. $0.65 $0.60

Discontinued Ops. $0.06 -

EPS $0.71 $0.60

Down 2%• Underlying* flat; FX -4 pts; Acq. +2 pts;

Process Mgmt. +8%; Network Power +2%

Down 3%• Cost reductions and restructuring benefits

help offset volume deleverage and price/cost pressure

• Lower incentive compensation and commodity mark-to-market

Down 12%

Repurchased 12.8M shares for $431M in the qtr.

Down 8%

Higher restructuring in FY09 and lower gains versus prior year negatively impact EPS comparisons by $0.08

Near-Term Economic Environment Challenging

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United States (7%)

Europe 4%

Asia 8%

Latin America 16%

Canada 16%

Middle East/Africa 4%

Total International 7%

Underlying Sales* 0%

Currency (4) pts

Acquisitions 2 pts

Consolidated Sales (2%)

Underlying Sales AnalysisFirst Quarter Results

A Very Good Quarter Internationally – Especially

in the Emerging Markets Which Increased 10%

EmersonFirst Quarter Detail

($Mil) 2008 2009

Gross Profit $2,010 $1,996

GP% 36.4% 36.9%

SG&A% 21.4% 22.1%

Operating Profit* $826 $803

OP%* 15.0% 14.8%

- Other Deductions, Net $3 $91

- Interest Expense, Net $50 $43

Pretax Earnings $773 $669Earnings% 14.0% 12.3%

- Taxes $254 $211

- Tax Rate 32.8% 31.5%

Down 1%

• Cost reduction benefits drive gross margin improvements

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Down 3%

Down 14%

Expect full year rate of approx. 31.5%

(in $M) Q108 Q109 Delta

Gains ($64) ($4) $60

Restructuring $9 $43 $34

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First Quarter Cash Flow & Balance Sheet

($Mil) 2008 2009

Operating Cash Flow $423 $319

Capital Expenditures ($127) ($132)

Free Cash Flow* $296 $187

Cash Flow/Total Debt 63.6% 60.4%

Inventories $2,480 $2,470

Receivables $4,296 $4,007

Payables ($2,329) ($2,171)

Trade WC $4,447 $4,306

TWC % to sales 19.7% 19.9%

Down 25% in 1st Qtr• First quarter cash flow tends to

be lowest of year

• $81M margin deposit for commodity futures contracts. This negative impact will be gone by end of year

Balance sheet remains strong and flexible

Continued focus on working capital initiatives

Will be challenging until April / May as we reduce capacity to real underlying demand

In January 2009, Issued $500M in 10-Year Term

Debt at 4.875%

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Business Segment EarningsFirst Quarter Results

($Mil) 2008 2009

Business Segment EBIT* $843 $736Margin 14.9% 13.3%

Diff. In Accounting Methods $53 $50

Corporate & Other ($73) ($74)

Interest Expense, Net ($50) ($43)

Pretax Earnings $773 $669

Down 13%• Volume deleverage and price/cost

pressures

• Dilution from acquisitions

• Benefits from cost reductions and price initiatives

Down $3 million

FY09 lower incentive comp. and mark-to-market offset by one-time gains in FY08

Down $7 million, lower rates &

cash generation

Down 14%

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Process Management First Quarter Results($Mil) 2008 2009Sales $1,436 $1,553

EBIT $258 $302Margin 18.0% 19.4%

Restructuring $1 $2

EBIT Excl. Rest.* $259 $304Margin* 18.1% 19.5%

Up 8%

– Underlying* up 14%; FX -6 pts;

• U.S. up 10%, Asia up 23%, Europe up 12%,

Latin America up 29%

– Continued strength in the worldwide oil and

gas and power markets—but will weaken as

year progresses

Up 17%– Margin increase driven by leverage on higher

sales and cost reduction programs which offset

inflationary pressures, and strong new product

sales mix

– Continued investments in next generation

technologies will position us for 2011 and 2012

Opened state-of-the-art Asia Flow Technology Center in Nanjing, China

Industry leadership continues – 25 first-place awards in Control magazine’s

Readers’ Choice awards, including first place in Wireless Infrastructure

Long-term Market Fundamentals are Strong

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Industrial Automation First Quarter Results($Mil) 2008 2009

Sales $1,125 $1,103

EBIT $171 $153Margin 15.2% 13.9%

Restructuring $3 $3

EBIT Excl. Rest.* $174 $156Margin* 15.4% 14.2%

Down 2%

– Underlying* up 2%; FX -5 pts; Acq. +1 pt.

– U.S. up 1%, Asia up 7%, Europe flat --

but orders show weaker rest of 2009

Down 10%

– Price increases did not offset volatile

material costs and other inflation

– Negative mix impact

Global capital goods markets slowing

Participation in energy saving products and solutions provides

good business growth opportunities

System Plast Acquisition Strengthens Position in Global

Material Handling Market

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Network Power First Quarter Results($Mil) 2008 2009Sales $1,406 $1,435

EBIT $180 $149Margin 12.8% 10.4%

Restructuring $3 $20

EBIT Excl. Rest.* $183 $169Margin* 13.0% 11.8%

Up 2%

– Underlying* flat; FX -4 pts; Acq +6 pts

• U.S. down 9%, Asia up 9%, Europe down 6%

– Slowdown in capital spending patterns,

especially in Embedded Power and

Computing customer base.–

Down 17%

– Unfavorable mix and dilution from

acquisitions of 200 basis points, including

related restructuring.

China Power Systems business remains strong

Significantly lowered the fixed cost base of this business versus prior

downturn—we are taking necessary actions to stay ahead of economic

downdraft

Restructuring Efforts Will Position Business for

Strong Recovery

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Climate TechnologiesFirst Quarter Results($Mil) 2008 2009Sales $766 $692

EBIT $102 $53Margin 13.4% 7.7%

Restructuring $1 $14

EBIT Excl. Rest.* $103 $67Margin* 13.5% 9.7%

Down 10%– Underlying* down 7%; FX -3 pts

• U.S. down 13%, Asia down 21%, Europe up 30%

– U.S. and Asian residential air-conditioning and refrigeration businesses slowed

– Higher heat pump compressor sales in Europe, from low levels in prior year

Down 48%

– Volume deleverage, volatile commodity

inflation, increased restructuring and

negative fx transactions due to the stronger

U.S. dollar

European Union qualifies heat pumps as renewable energy

Demand for energy responsible solutions will continue to benefit

Climate Technologies -- the U.S. R410A refrigerant transition is a benefit

later in 2009

Penetration Gains Achieved in the Global

Refrigeration Transport Market

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Appliance and Tools First Quarter Results($Mil) 2008 2009Sales $932 $771

EBIT $132 $79Margin 14.1% 10.2%

Restructuring $1 $4

EBIT Excl. Rest.* $133 $83

Margin* 14.3% 10.7%

Down 17%

– Underlying* down 16%; FX -1 pt

– U.S. down 19%, Europe down 18%,

Asia up 15%

Down 40%

– Deleverage on lower sales volume

– Pricing actions substantially offset by

material and other inflation

Customers facility shutdowns and inventory reduction programs

negatively impacting segment

U.S. Residential and Consumer Markets Continue

to be Highly Stressed – But Will Turn Fast Off a

Much Lower Base

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Summary and Outlook

Emerson is well positioned as we move through a tough 2009

– Strong Global Footprint

– International sales 54% of total business

– Emerging markets 30% of total business

– Good Mix of Businesses – we have continued to actively manage the portfolio

– We are stepping up Global Best Cost Repositioning and increasing strategic technology and breakthrough Next Generation New Products for strong breakout growth when the global economy recovers.

– Financial Strength to invest internally and do acquisitions where appropriate

Will Review 2009 Expectations and Long-Term Initiatives at Emerson’s Annual Investor Conference on February 6th