Emerson Electric : Q1 EARNINGS PRESENTATION

Emerson 2023 Q1 Earnings

February 8, 2023

Safe Harbor Statement

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 Company's ability to successfully complete on the terms and conditions contemplated, and the financial impact of, the proposed Climate Technologies transaction, the potential National Instruments transaction, the scope, duration and ultimate impacts of the COVID-19 pandemic and the Russia-Ukraine conflict, as well as economic and currency conditions, market demand, including related to the pandemic and oil and gas price declines and volatility, 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.

Non-GAAP Measures

In this presentation we will discuss some non-GAAP measures 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 Investors.

Continuing Operations

All financial metrics in this presentation are on a continuing operations basis, unless otherwise noted. Please refer to the endnotes for more detail.

Endnotes

Please refer to endnotes for the definition of certain terms used in this presentation.

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2023 Q1 Summary

Results

Underlying Orders

5%

Underlying Sales Growth

6%

Operating Leverage1

40%

Adjusted EPS

$0.78

Share Repurchase

$2B

Guidance

Comments

Underlying orders as expected with broad strength partially offset by Safety & Productivity orders down double digits

6% - 8%		Underlying sales within expected range led by Americas and
	Software and Control, partially offset by China shutdowns
Mid-to-High 30s		Strong execution drove operating leverage above
	expectations
$0.85 - $0.89		Strong operational performance impacted unfavorably by:
	• Stock compensation ($0.08) versus expectations
		• FX ($0.06) versus expectations
~$2B for the year		Share repurchase completed in Q1

1 Excluding AspenTech

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Immediate Progress On Our Value Creation Priorities

INNOVATION /

OPERATIONAL EXCELLENCE

State-of-the-art innovation and

manufacturing hub in Saudi Arabia

ENERGY TRANSITION

NEOM Green Hydrogen Company

Emerson to provide automation solutions for world's

largest green hydrogen production facility

INDUSTRIAL SOFTWARE

Ras Laffan Chemical Complex

Emerson and AspenTech selected for largest ethane facility in the Middle East

PRIORITY HYBRID & DISCRETE MARKETS

FUJIFILM Diosynth Biotechnologies

Emerson control and software selected for one of the largest CDMOs in Europe

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2023 Q1 Performance Summary

SALES
$3.2B	$3.4B
6% Underlying
2022	2023

4 pt headwind from FX; AspenTech contributed 5 pts

Led by double-digit growth in the Americas

Backlog1 of $6.6B, up $0.7B from prior quarter

ADJUSTED SEGMENT

	EBITA
21.4%	22.7%
		130 bps
2022		2023

Operating leverage (excluding AspenTech): 40%

Positive mix with North America strength

ADJUSTED EPS

$0.79	$0.78
	1%
2022	2023

$0.15 contributed from operations

$0.09 unfavorable impact from stock compensation based on Q1 stock price increase of 31%

$0.09 unfavorable impact from FX

FREE CASH FLOW

$304M
	$243M
	20%
2022	2023

Impacted by trade working capital

Continue to expect full year free cash flow conversion of ~100%

1 Excluding AspenTech

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