Ed Monser Chief Operating Officer 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.

Strategic Imperatives Actions

Strengthen Business Platforms

- Major Growth Initiatives will help keep us within the 5-7% zone – we have refreshed the list of growth initiatives to optimize the growth of the company.

- Service and Solutions Growth - Acquisitions will be key – we must look outside our

current served market to grow – Adjacent Space. - We are changing the mix of our business – in the

right way. - Our Business Platforms are being valued globally –

we are starting to look like one integrated company.

Pursue Technology Leadership

- Develop more game-changing products and technologies through efficient Portfolio Management and proper allocation of resources.

- Now is the time to invest in technology for a competitive advantage!

- Develop a strong offering of Responsible and Efficient Energy Products and Solutions.

- Customer involvement throughout the entire process.

Executing These Four Strategic Imperatives Will Be Key in the 2009 and 2010 Recessionary Periods to Drive a Strong, Outperforming, Recovery

Strategic Imperatives Actions

Globalize Assets - Take care of mature markets, but emerging markets play an ever increasing role in our success.

- Our geographic mix presence allows continued growth.

- Reposition assets to drive profitability improvements and to better serve our customers.

Drive Business Efficiency

- Price actions must stay ahead of material inflation. - Fix the complexity crisis – kill products and purge

data. - We must improve on-time delivery performance to

exceed customer expectations. - Continue to improve Trade Working Capital, generate

strong Operating Cash Flow, and manage Capital Expenditures.

- ROTC improvement will continue to be a key indicator of success.

Executing These Four Strategic Imperatives Will Be Key in the 2009 and 2010 Recessionary Periods to Drive a Strong, Outperforming, Recovery

  Operating Performance

  Regionalization of Business –  Labor/Restructuring

–  Supply Chain

–  Customer Support/Shared Services

–  Engineering

  Operating Performance Targets

Actions Yielded 2.3% Points Of Improvement Since 2003

17.0%+

15.9%

15.0%

16.4%

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Need to Continue to Improve Capital Efficiency – Trade Working Capital Needs Be <15% and We Still Have Opportunities to Improve Fixed Assets

US$B % to Sales

TWC % to Sales

Fixed Assets % to Sales

17.9%

14.1% 15.0%

11.5%

US$B

10.4%

21.8%

Free Cash Flow

18%-20% ROTC

$2.5-2.7B

11.0-11.5%

% to Sales

  Operating Performance

  Regionalization of Business –  Labor/Restructuring

–  Supply Chain

–  Customer Support/Shared Services

–  Engineering

  Operating Performance Targets

US & Canada

Mexico & Latin America

Europe

Middle East & Africa

Asia Pacific

2003 2006 2008

Sales $8.2B $11.3B $12.2B Employees 41K 44K 42K Locations 142 118 100

2003 2006 2008 Sales $2.8B $3.9B $5.7B Employees 22K 24K 24K Locations 70 80 70

2003 2006 2008 Sales $0.5B $0.9B $1.2B Employees 18K 21K 22K Locations 36 37 37

2003 2006 2008 Sales $0.4B $0.7B $1.2B Employees 0.6K 0.5K 0.7K Locations 2 2 2

2003 2006 2008 Sales $1.7B $2.9B $4.5B Employees 25K 46K 52K Locations 40 38 46

2003 2006 2008 Total Sales $13.6B $19.7B $24.8B Total Employees 107K 136K 141K Total Locations 290 275 255

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  Global and Regional Mode Teams –  Development of the Global Strategies by Mode, Competitive Tension

and the Selection and Performance of the Carrier Base

  Intercontinental Ocean and Air Programs –  Operational Movement of Intercontinental Freight

  North America Trucking Program –  Canada, US and Mexico –  Operational Movement of Domestic Freight

  Digitizing of the Supply Chain Electronic Connectivity Between Emerson/Trading Partners –  Electronic System to System Transactional Data for Operating

Programs –  Audit Payment of Freight Bills

  48 Divisions Participating in the Program –  Savings Increased from $0.9M to $13.0M Since 2004 –  Transit Times have Improved from 36 Days to 24 Days –  Container Utilization has Increased from 60% to 91%

Total Ocean Savings Average Ocean Transit Times - Asia To United States

$M

Days

Program Expands to Air Freight in 2009

  Global and Regional Mode Teams –  Development of the Global Strategies by Mode, Competitive Tension

and the Selection and Performance of the Carrier Base

  Intercontinental Ocean and Air Programs –  Operational Movement of Intercontinental Freight

  North America Trucking Program –  Canada, US and Mexico –  Operational Movement of Domestic Freight

  Digitizing of the Supply Chain Electronic Connectivity Between Emerson/Trading Partners –  Electronic System to System Transactional Data for Operating

Programs –  Audit Payment of Freight Bills

  Automates the Domestic Load Tendering Process   Reduced Leakage of eSourcing Savings by 28% in 2008

Emerson Contract Load Control Center (Schneider Logistics)

Shipper

Portal

1 2 3 4 5

Emerson Routing Guide

Emerson Managed eSourcing Event

Reduces Ethical Concerns and Provides Valuable Data for

On-Boarding

13 Divisions Participating in 2008

  Global and Regional Mode Teams –  Development of the Global Strategies by Mode, Competitive Tension

and the Selection and Performance of the Carrier Base

  Intercontinental Ocean and Air Programs –  Operational Movement of Intercontinental Freight

  North America Trucking Program –  Canada, US and Mexico –  Operational Movement of Domestic Freight

  Digitizing of the Supply Chain Electronic Connectivity Between Emerson/Trading Partners –  Electronic System to System Transactional Data for Operating

Programs –  Audit Payment of Freight Bills

2007 Pilot in Laredo Provided Proof of Concept

Targeted 10%+ Cost Savings Reduce Transit Times by 20% Optimize Freight and Increase Utilization Provide Visibility by Part Number Reduce Inventory by +10%

Ensure Trade Compliance/ Ethics

Establishes a Reliable Logistics Network

Across the Southern Border            

2009-2010: Complete Laredo, McAllen, El Paso and Calexico

Cluj ~60

India 1272

Mexico City ~140

Dubai ~320

Pune ~1,300

Xi’an ~130

Buenos Aires ~70

Future Shared Services Locations

Sao Paulo

Calgary

Toronto New Delhi

Manila ~2,700

Regionalization of Non-Customer Facing Positions Allows for Highly Skilled Labor at Very Competitive Costs

Employees

29

124

228

Employees

IT Marketing Finance/ Accounting Admin./Logistics

IT Marketing Finance/ Accounting Admin./Logistics

8

59

149

Employees

2,054

IT Marketing Finance/ Accounting Admin./Logistics

Employees

2,713

2,985

Customer Service

80,000 sq ft of Office Space/ 50,000 sq ft Manufacturing & Warehouse Space

Opened in January 2009

Dubai Facility Provides Middle East and Africa Customers with Faster Service and Lower Cost Advantages

Climate Technologies

Process Management

High Cost Best Cost

7,200

8,500

5,000

Number of Engineers

51%

49%

70%

30%

57%

43%

Engineering Investment $M

Engineering Site Multifunctional Engineering/Manufacturing Site

Key Global Engineering and Design Sites

St. Louis, MO 300

Austin, TX 200 Marshalltown, IA 200

Sidney, OH 300

Columbus, OH 200

Chanhassen, MN 200

Manila, Philippines 700

Shenzhen, China 1500

Pune, India 550

Suzhou, China

200

Cluj, Romania

80

Xi’an, China

70

We are Using the Economic Downturn to Focus on Getting Strategic Investments Done – We’ll be Ready to Grow as Markets Return

Sales $M Engineers +21%

Engineers +26% Sales

+32% Engineers

+38% Sales

+74% Engineers

+26% Sales

2003 Engineers 2008 Engineers

2003 Sales 2008 Sales

Add Resources to Drive Future Sales to 5-7% Underlying Growth Improve Productivity and Operational Costs to Achieve 17%+ OP

Restructuring People and Facilities to

Align with Market Demand

Best Cost Production 39% to 68% since 2000

Implementing Global Supply Chain Projects

to Realize Savings Best Cost Sourcing

18% to 43% since 2000

Investing in Regional Centers to Develop

New Products >4,000 Best Cost Engineers

Adding 100+ in 2009T

Developing Regional Shared Services for Highly Productive Customer Support 7 Sites/~4,700 People 4 New Sites in 2009T

  Operating Performance

  Regionalization of Business –  Labor/Restructuring

–  Supply Chain

–  Customer Support/Shared Services

–  Engineering

  Operating Performance Targets

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