1. Third Quarter 2008
Earnings Conference Call
August 5, 2008
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.
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. Third Quarter 2008 Highlights
Third quarter sales up 14% to $6.6 billion with increases in 4 of 5 business

segments
Underlying sales* growth of 7%, led by strong international growth, and solid U.S.
–
sales
Operating profit margin* improved 30 basis points to 16.6%

Earnings Per Share from continuing operations of $0.82, up 15% compared to

$0.71 in the prior year quarter
Operating cash flow of $827 million and free cash flow* of $672 million

Order growth of +10% to +15% in the quarter, with approx. +5% currency

impact
Balance sheet remains strong

Average Days-In-The-Cash-Cycle decreased to 65 days from 67 days
–
Trade Working Capital as a % of sales sequentially improves from 18.7% in second
–
quarter to 17.7% in third quarter
Operating Cash Flow to Total Debt solid at 64%
–
First Half Momentum Continues Into Third Quarter
Strong Nine Month Performance
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3. Emerson
Third Quarter Results
2007 2008
($Mil excl. EPS)
Up 14%

Sales $5,772 $6,568 Increases in 4 of 5 business segments
•
Process Mgmt. up +18%, Network Power up +26%,
•
Industrial Automation up +16%
Underlying* up 7%; FX +5 pts; Acq/Div +2 pts
•
Up 16%

Operating Profit* $941 $1,092
30 basis point improvement driven by cost
•
OP%* 16.3% 16.6%
containment programs and volume leverage
Up 13%

Earnings - Continuing Ops. $573 $647
Earnings% 9.9% 9.8%
Repurchased 4.6M shares for $249M in the qtr. -

Dil. Avg. Shares 802.1 787.8 Returning strong cash flow to shareholders
EPS – Continuing Ops. Up 15%
$0.71 $0.82 
($36M) impairment charge relating to the

Discontinued Ops. $0.01 ($0.04)
European appliance motor & pump business
EPS $0.72 $0.78 • Entered a definitive agreement to sell business
Sale of the European Appliance Motor & Pump
Business Expected to Close in Fiscal Year 2008
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4. Underlying Sales Analysis
Third Quarter Results
United States 4%
Europe 3%
Asia 16%
Latin America 16% Emerging Markets
were up 17%
Canada 11%
Middle East/Africa 15%
Total International 10%
Underlying Sales* +7%
Currency 5 pts
Acquisitions/Divestitures 2 pts
Consolidated Sales +14%
Emerging Market Growth Led International
Sales Expansion – up 17%
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5. Emerson
Third Quarter Detail
($Mil) 2007 2008
Up 15%

Gross Profit $2,095 $2,413
driven by cost
Improvement
GP% 36.3% 36.7%
containment programs and
SG&A% 20.0% 20.1% volume leverage
Up 16%
Operating Profit* $941 $1,092 
OP%* 16.3% 16.6%
$18M increase relating to fx

- Other Deductions, Net $58 $100 transactions, $9M charge related to
the appliance control business, as
- Interest Expense, Net $61 $46
we evaluate potential sale
Up 15%
Pretax Earnings $822 $946 
Earnings% 14.2% 14.4%
- Taxes $249 $299
Full Year rate expected to

- Tax Rate 30.3% 31.7%
be approx. 32%
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6. Third Quarter Cash Flow & Balance Sheet
($Mil) 2007 2008
Down 8% in Q3, versus an

Operating Cash Flow $899 $827 extremely strong Q3 2007
Up 13% year-to-date

Capital Expenditures ($144) ($155)
Down 11% in Q3
Free Cash Flow* $755 $672 
Up 14% year-to-date

FCF/Net Earnings cont.ops.*
104%
Cash Flow/Total Debt 61.1% 64.4% conversion in Q3
Inventories $2,309 $2,562
Receivables $4,083 $4,663
Sequential improvement in

Payables ($2,247) ($2,563)
ratio from 18.7% in 2nd Qtr.
Trade WC $4,145 $4,662
TWC % to sales 17.6% 17.7%
Over 70% of Operating Cash Flow Returned to
Shareholders Year-to-Date
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7. Business Segment Earnings
Third Quarter Results
($Mil) 2007 2008
Up 14%
Business Segment EBIT* $925 $1,051 
Margin* 15.6% 15.5%
Diff. In Accounting Methods $56 $62 Up $6 million

Up $23 million

Corporate & Other ($98) ($121) commodity hedging mark-
$11M
to-market
$12M environmental costs and
other items
Down $15 million, driven by
Interest Expense, Net ($61) ($46) 
lower interest rates
Up 15%
Pretax Earnings $822 $946 
14.2% 14.4%
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8. Process Management
Third Quarter Results
($Mil) 2007 2008
Up 18%

Sales $ 1,471 $1,731
Underlying* +13%; FX +6 pts; Div/Acq. -1 pt.
–
U.S. up 12%, Asia up 21%, Europe up 5%,
•
Middle East/Africa up 14%
Strength across all parts of this business –
–
systems, valves and measurement
EBIT $269 $346 Up 29%

Margin 18.3% 20.0% Leverage on higher sales volumes
–
$11M litigation charge in Q3 2007
–
Restructuring $2 $4
EBIT Excl. Rest.* $271 $350
Margin* 18.5% 20.2%
Order growth continues to be strong at +15% in the quarter
TopWorx business acquired in July --Provides valve control
and positioning sensing solutions (~ $40M Annual Sales)
Continued Strong Investments Made in Technology and
Global Infrastructure—For Future Benefits
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9. Industrial Automation
Third Quarter Results
($Mil) 2007 2008
Sales $1,095 $1,271 Up 16%

Underlying* up 8%; FX +8 pts
–
U.S. up 11%, Asia up 16%, Europe up 4%
•
Up 15%

EBIT $161 $186
Margin 14.7% 14.6% Margin down 10 basis points
–
Price actions offset higher material inflation
–
Restructuring $5 $5
EBIT Excl. Rest.* $166 $191
Margin* 15.1% 15.1%
Strong growth in power generating alternator, fluid automation
and industrial equipment businesses
Order growth of +20% during the quarter – fundamentals remain strong
Global Demand for Power and Strength in the Oil and
Gas Market Drive Growth in Alternators
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10. Network Power
Third Quarter Results
($Mil) 2007 2008
Up 26%

Sales $1,322 $1,672
Underlying* up 10%; Acq +12 pts; FX +4 pts
–
U.S. up 10%, Asia up 13%, Europe up 3%
•
Strength across power systems, precision
–
cooling and telecommunications businesses
Order trend is on target for normal cycle
–
EBIT $178 $212 Up 19%

Margin 13.4% 12.7% Sales volume leverage and cost reductions
–
drive margin improvement in core business
Restructuring $5 $8
Acquisitions had dilutive impact of approx.
–
EBIT Excl. Rest.* $183 $220
150 basis points
Margin* 13.7% 13.1%
“Central Office In A Box” concept debuted at industry trade event --
provides modular approach allowing telecom companies to provide
wireless and broadband services quickly and economically
Strong Global Footprint and Market-Leading
Technologies Provide Momentum for Growth
10

11. Climate Technologies
Third Quarter Results
($Mil) 2007 2008
Up 4%

Sales $1,043 $1,087 Underlying* up 1%; FX +3 pts
–
U.S. down 1%, Europe down 6%, Asia up 14%
•
Continued penetration gains in the U.S.
–
water-heater controls business
Current U.S. orders have increased due to
–
hot / humid weather
EBIT $174 $169 Down 3%

Margin 16.6% 15.5% Margin down 110 basis points
–
Significant commodity inflation more than
–
Restructuring $2 $5
offset pricing increases (issue being
EBIT Excl. Rest.* $176 $174
worked), higher restructuring costs
Margin* 16.9% 15.9%
Upcoming regulation changes provide good growth opportunities
Order trends of +5% to +10% in the quarter, warmer weather across U.S.
Demand for Energy Responsible Products Will
Continue to Benefit Climate Technologies Products and
Services
11

12. Appliance and Tools
Third Quarter Results
($Mil) 2007 2008
Down 1%
Sales $1,005 $998 
Underlying* down 1%; Divestiture -1 pt;
–
FX +1 pt
U.S. down 3%, Europe down 4%, Asia up 41%
•
Down 4%

EBIT $143 $138
Margin 14.3% 13.8% $9M charge relating to the appliance control
–
business as we evaluate potential sale
Restructuring $4 $2
Benefits from cost reduction efforts were
–
EBIT Excl. Rest.* $147 $140 offset by volume deleverage
Margin* 14.7% 14.0%
Pricing actions offset by significant material
–
inflation
Tough market conditions continued in consumer-related businesses
Professional tools and hermetic motors showed strong growth
Exploring Alternatives Relative to the
Appliance Control Business
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13. Summary and Outlook
Strong third quarter

Underlying sales* growth of 7%
–
Operating profit margin* improvement of 30 basis points
–
Strong year-to-date cash flow performance
–
Order trends continue to show strength, +10% to +15% in the quarter
–
Solid results for the first 9 months of fiscal 2008 provide strong foundation for

another great year for Emerson
Expect Full Year Underlying Sales Growth* of approximately 6% and Reported

Sales Growth of 11% to 13%
Excellent Operating Margin* improvement driven by new products, aggressive

restructuring and emerging market growth—expect Fiscal Year 2008
Operating Margin* of 16.2% to 16.4%
Expect Full Year Earnings per Share from continuing operations in the range

of $3.05 to $3.10, 15 to 17 percent growth over 2007
Targeting Full Year Operating Cash Flow of $3.3 billion, Capital Expenditures

of $0.8 billion and Free Cash Flow* of $2.5 billion – 100+% coverage
Expect 2008 Return on Total Capital of 21%

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14. Emerson Business Summary
Reconciliation of Non-GAAP Financial
Measures
Expected FY 2008 Sales Growth %
Underlying Sales * ~ 6%
Currency / Acq. / Div. ~ 6 pts
Total Sales ~ 11 to 13%
Q3 2008
Operating Cash Flow $827
Capital Expenditures (155)
2008E
Free Cash Flow* $672
~$ 4,000 -$4,060
Operating Profit *
16.2%-16.4%
% Sales *
Net Earnings Cont. Ops. $647
Interest Expense and
~(470)
Other Deductions, Net
~$3,530 – 3,590
% of Net Earnings Cont. Ops. Pretax Earnings
14.2% - 14.4%
% Sales
Operating Cash Flow 128%
Capital Expenditures (24%)
Free Cash Flow* 104%
This information reconciles non-GAAP measures with the most
directly comparable GAAP measure ($M)
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