Emerson reported first quarter 2009 results with sales down 2% to $5.4 billion and earnings per share down 8% to $0.60. Underlying sales were flat overall with strong growth internationally, especially in emerging markets. Operating profit margin declined slightly due to volume deleverage and price/cost pressures. Cash flow was down due to lower earnings and a margin deposit for commodity futures contracts. Business segments saw mixed results with Process Management up but others like Climate Technologies down significantly. Emerson remains well positioned financially and strategically with a global footprint and mix of businesses.

1. First Quarter 2009
Earnings Conference Call
February 3, 2009
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 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.

2. First Quarter 2009 Highlights
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 $43 million, constant and

continuous repositioning efforts
Balance sheet remains strong and flexible

Net Debt to Net Capital ratio at 30%
–
Operating Cash Flow to Total Debt solid at 60%
–
2009 Will Be Tough – But Emerson Is Well-Positioned
and Our Financial Position is Strong
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3. Emerson
First Quarter Results
2008 2009
($Mil excl. EPS)
Down 2%

Sales $5,520 $5,415
Underlying* flat; FX -4 pts; Acq. +2 pts;
•
Process Mgmt. +8%; Network Power +2%
Down 3%
Operating Profit* $826 $803 
Cost reductions and restructuring benefits
•
OP%* 15.0% 14.8%
help offset volume deleverage and price/cost
pressure
Lower incentive compensation and
•
commodity mark-to-market
Down 12%

Earnings - Continuing Ops. $519 $458
Earnings% 9.4% 8.5%
Repurchased 12.8M shares for $431M in the qtr.

Dil. Avg. Shares 796.5 767.9
Down 8%
EPS – Continuing Ops. 
$0.65 $0.60
restructuring in FY09 and lower gains
Higher
versus prior year negatively impact EPS
Discontinued Ops. $0.06 - comparisons by $0.08
EPS $0.71 $0.60
Near-Term Economic Environment Challenging
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4. Underlying Sales Analysis
First Quarter Results
United States (7%)
Europe 4%
Asia 8%
Latin America 16%
Canada 16%
Middle East/Africa 4%
Total International 7%
Underlying Sales* 0%
Currency (4) pts
Acquisitions 2 pts
Consolidated Sales (2%)
A Very Good Quarter Internationally – Especially
in the Emerging Markets Which Increased 10%
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5. Emerson
First Quarter Detail
($Mil) 2008 2009
Down 1%

Gross Profit $2,010 $1,996
Cost reduction benefits drive
•
GP% 36.4% 36.9%
gross margin improvements
SG&A% 21.4% 22.1%
Down 3%
Operating Profit* $826 $803 
OP%* 15.0% 14.8%
(in $M) Q108 Q109 Delta
- Other Deductions, Net $3 $91 
Gains ($64) ($4) $60
- Interest Expense, Net $50 $43 Restructuring $9 $43 $34
Pretax Earnings $773 $669 Down 14%

Earnings% 14.0% 12.3%
- Taxes $254 $211
Expect full year rate of

- Tax Rate 32.8% 31.5%
approx. 31.5%
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6. First Quarter Cash Flow & Balance Sheet
($Mil) 2008 2009
Down 25% in 1st Qtr

Operating Cash Flow $423 $319
First quarter cash flow tends to
•
be lowest of year
Capital Expenditures ($127) ($132) $81M margin deposit for
•
commodity futures contracts.
Free Cash Flow* $296 $187 This negative impact will be gone
by end of year
Balance sheet remains
Cash Flow/Total Debt 63.6% 60.4% 
strong and flexible
Inventories $2,480 $2,470
Continued focus on working

Receivables $4,296 $4,007 capital initiatives
Payables ($2,329) ($2,171)
Will be challenging until

Trade WC $4,447 $4,306 April / May as we reduce
capacity to real underlying
TWC % to sales 19.7% 19.9%
demand
In January 2009, Issued $500M in 10-Year Term
Debt at 4.875%
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7. Business Segment Earnings
First Quarter Results
($Mil) 2008 2009
Down 13%

Business Segment EBIT* $843 $736 Volume deleverage and price/cost
•
Margin 14.9% 13.3% pressures
Dilution from acquisitions
•
Benefits from cost reductions and
•
price initiatives
Down $3 million

Diff. In Accounting Methods $53 $50
FY09 lower incentive comp.
Corporate & Other ($73) ($74) 
and mark-to-market offset by
one-time gains in FY08
Down $7 million, lower rates &
Interest Expense, Net ($50) ($43) 
cash generation
Down 14%
Pretax Earnings $773 $669 
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8. Process Management
First Quarter Results
($Mil) 2008 2009
Up 8%

Sales $1,436 $1,553
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%
EBIT $258 $302 
Margin 18.0% 19.4% Margin increase driven by leverage on higher
–
sales and cost reduction programs which offset
Restructuring $1 $2 inflationary pressures, and strong new product
EBIT Excl. Rest.* $259 $304 sales mix
Margin* 18.1% 19.5% Continued investments in next generation
–
technologies will position us for 2011 and 2012
Opened state-of-the-art Asia Flow Technology Center in Nanjing, China
Industry leadership continues – 25 first-place awards in Control magazine’s
Readers’ Choice awards, including first place in Wireless Infrastructure
Long-term Market Fundamentals are Strong
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9. Industrial Automation
First Quarter Results
($Mil) 2008 2009
Down 2%

Sales $1,125 $1,103
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%
EBIT $171 $153 
Margin 15.2% 13.9% Price increases did not offset volatile
–
material costs and other inflation
Restructuring $3 $3
Negative mix impact
–
EBIT Excl. Rest.* $174 $156
Margin* 15.4% 14.2%
Global capital goods markets slowing
Participation in energy saving products and solutions provides
good business growth opportunities
System Plast Acquisition Strengthens Position in Global
Material Handling Market
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10. Network Power
First Quarter Results
($Mil) 2008 2009
Up 2%
Sales $1,406 $1,435 
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.
–
EBIT $180 $149 Down 17%

Margin 12.8% 10.4% Unfavorable mix and dilution from
–
acquisitions of 200 basis points, including
Restructuring $3 $20
related restructuring.
EBIT Excl. Rest.* $183 $169
Margin* 13.0% 11.8%
China Power Systems business remains strong
Significantly lowered the fixed cost base of this business versus prior
downturn—we are taking necessary actions to stay ahead of economic
downdraft
Restructuring Efforts Will Position Business for
Strong Recovery
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11. Climate Technologies
First Quarter Results
($Mil) 2008 2009
Down 10%

Sales $766 $692 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%
EBIT $102 $53 
Margin 13.4% 7.7% Volume deleverage, volatile commodity
–
inflation, increased restructuring and
Restructuring $1 $14
negative fx transactions due to the stronger
EBIT Excl. Rest.* $103 $67 U.S. dollar
Margin* 13.5% 9.7%
European Union qualifies heat pumps as renewable energy
Demand for energy responsible solutions will continue to benefit
Climate Technologies -- the U.S. R410A refrigerant transition is a benefit
later in 2009
Penetration Gains Achieved in the Global
Refrigeration Transport Market
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12. Appliance and Tools
First Quarter Results
($Mil) 2008 2009
Down 17%

Sales $932 $771
Underlying* down 16%; FX -1 pt
–
U.S. down 19%, Europe down 18%,
–
Asia up 15%
EBIT $132 $79 Down 40%

Margin 14.1% 10.2% Deleverage on lower sales volume
–
Pricing actions substantially offset by
–
Restructuring $1 $4
material and other inflation
EBIT Excl. Rest.* $133 $83
Margin* 14.3% 10.7%
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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13. 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
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