Emerson Electric : Overview the overinfographic

MAY 2024

LEADING THE FUTURE OF AUTOMATION

Emerson (NYSE: EMR) is a global technology and software company with 74,000 employees providing innovative solutions for the world's essential industries

Company Profile*

$17B IN SALES IN 2023

GEOGRAPHY

END-MARKET

SEGMENTS

Energy

6%

Software & Control

20%

Americas

16%

AspenTech

21%

Discrete

24% 10%

Test & Measurement

50%

Asia, Middle

17%

Chemical

15%

Control Systems & Software

East & Africa

17%

Power & Renewables

21%

Intelligent Devices

30%

Europe

8%

12%

Hybrid

16%

8%

Safety & Productivity

9%

General Industries

Discrete Automation

Measurement & Analytical

Other

Final Control

>50% Margin

~25%

EBITA Margin ~13% of Sales

>60% Revenue

~$150B Base

Gross Profit

Adj. Segment

Software %

MRO / Recurring

Installed

*Represents post-acquisition 2023 Emerson including NI

For complete information regarding our financials, see our periodic filings

Leading Automation Portfolio

Differentiated by complete and comprehensive offering

			OPTIMIZE
			AI Powered Analytics
			Modeling &
			for performance optimization
	OPTIMIZE		DECIDE
		Automation Systems
			for intuitive and automated decisions
SEE	DECIDE	ACT	SEE
Measurement
Sensing &
			to optimize insight and decision making

ACT

Precision Control

to ensure safe, responsive operations

SOFTWARE

CONTROL

INTELLIGENTDEVICES

Balanced Capital Allocation

Invest in organic growth opportunities and innovation

Strategic M&A to strengthen automation portfolio and diversify end markets

Share repurchase to offset dilution and/or opportunistic

Dividend increase a priority

Recognized ESG Leader

MSCI 2023	-	CDP 2023
A Rating
A	Climate Score

Emerson is accelerating decarbonization through innovation that helps our customers realize a net zero future.

Learn more about our sustainability progress:

Value Creation Priorities and Framework

Clear framework to create value and deliver strong financial performance

ORGANIC GROWTH

Accelerating innovation and aligning with secular growth trends

PORTFOLIO MANAGEMENT

Transforming to a cohesive, higher-growth and higher-margin automation portfolio

OPERATIONAL EXCELLENCE

Maintaining a tradition of operational excellence to deliver margin and cash performance

4 - 7%	~35%+
Through-The-Cycle	Incremental Margins
Organic Growth
Double-Digit	15-18%
Adjusted EPS Growth	Free Cash Flow Margin

DIGITAL TRANSFORMATION

UNDERPINNED BY SECULAR GROWTH TRENDS

ENERGY SECURITY		SUSTAINABILITY &
& AFFORDABILITY		DECARBONIZATION

NEARSHORING

Organic Growth

INNOVATION

Strong legacy of innovation. Focused on four disruptive technologies:

Disruptive	Software-Defined Automation
Measurement Technologies	Systems
High-margin core products with reoccurring	Dramatic shift to software-defined
revenue elements	enterprise operations platform
Self-Optimizing Asset Software	Sustainability
High-value recurring software that	Sustainability technology solutions to help
transforms enterprise asset management	customers address the dual challenge

OUR GROWTH PLATFORMS

ENERGY TRANSITION

LNG, Nuclear, Hydrogen, Clean Fuels,

Renewables, Carbon Capture

INDUSTRIAL SOFTWARE

AspenTech, NI, DeltaV

7% of Sales to Innovation Spend in 2023	PRIORITYDISCRETE&HYBRIDMARKETS
Factory Automation, Life Sciences, Metals & Mining

Delivering Excellence

Gross Margin

Adj. Segment EBITA Margin

LEVERAGING EMERSON MANAGEMENT SYSTEM TO CONTINUE DELIVERING PEER LEADING MARGINS

		49.0%
	45.7%
44.3%
2021	2022	2023	2024E

		25.0%
	22.8%
20.5%
2021	2022	2023	2024E

Portfolio Excellence Highlight: Test & Measurement

GROWTH DRIVERS

UPDATED TARGETS

Plays in Predominantly Discrete End Markets*

SEMICONDUCTORS

$185M

Transportation 19%

23% Semis

in Cost Synergies

ELECTRIC /

& Electronics

by Year 3

AUTONOMOUS VEHICLES

31%

COGNITIVE SYSTEMS /

Aerospace, Defense

31% Portfolio

NEW SPACE

Adjusted Segment EBITA

& Government 27%

by Year 5

(Other)

*Based on 2023 Emerson fical year basis

INVESTOR CONTACT	TO LEARN MORE, VISIT
Colleen Mettler
emerson.com/en-us/investors
VP Investor Relations
[e-mail]

Forward Looking and Cautionary Statements:

Statements in this presentation and our commentary and responses to questions that are not strictly historical may be "forward- looking" statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Reconciliation of Non-GAAP Measures:

This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts)

Adjusted Segment EBITA	2021	2022	2023
Net Sales	$12,932	$13,804	$15,165
Pretax earnings (GAAP)	1,762	2,432	2,726
Pretax earnings margin (GAAP)	13.6%	17.6%	18.0%
Corporate items and interest expense, net	442	186	312
Amortization of Intangibles	304	430	678
Restructuring and related costs	151	99	78
Adjusted segment EBITA (non-GAAP)	$2,659	$3,147	$3,794
Adjusted segment EBITA margin	20.5%	22.8%	25.0%
(non-GAAP)
Impact of NI Acquisition			~ -
Post-Acquisition adjusted total business segment EBITA margin (non-			~25%
GAAP)

Emerson Sales in Addition to Annualized Emerson Basis NI	FY23
FY23 Sales (GAAP)	~$15B
NI	~$2B
Emerson as-reported in addition to an annualized NI on an Emerson basis	~$17B

Emerson Post-Acquisitions Gross Profit Margin	FY23
Emerson gross profit margin (GAAP)	49%
NI impact on gross profit margin (GAAP)	>1%
Emerson post-acquisitions gross profit margin (GAAP)	>50%