Kathy Button BellAgents of Change in a Social WorldTHE SMART DIFFERENCE

Separating ourselves from the pack and affirming

our leadership.

Bringing our message to the marketplace

and creating momentum.

Discovering and developing our brand identity.

Establishing our presence as a

global player and thought leader.

DEFINING PROMOTING ARRIVING DIFFERENTIATING

PERCENT OF SALES BY GEOGRAPHY

PERCENT OF SALES BY SEGMENT

Middle East & AfricaLatin

America

Europe 22%

Asia 23%

United States & Canada

45%

Commercial & Residential Solutions

Climate Technologies

16%

Industrial Automation

21%Network

Power 27%

Process Management

28%

AT A GLANCE Founded

in 1890

Headquartered in St. Louis, Missouri, USA

$24.2 billion in sales (2011)

Approximately 133,000 employees worldwide

5%5% 8%

#1 Market Position(s)

Longevity Reliability Excellence Management

Bottom-line Rigid Bureaucratic Insular Risk averse Follower Slow

Growth Responsive Customer-focused Initiative

Leader/Innovator Connected

LEVERAGE TRANSFORM INSTILL

A single brand spans a set of offerings that operate only with descriptive offerings

“Source” brand provides the business or product with an aura of credibility

The organization consists of independent stand-alone brands, each with little/no connection to parent

Corporate and Product Brandsworking together

Corporate Brand only

Product Brand only

Source: Interbrand

MASTERBRANDENDORSED

BRANDFREESTANDING

BRAND

Individual business unit or product brands operate under strong family brand. Dual level of communications; leverages credibility of source

OVERBRAND

Sell the Emerson Brand

Sell our industry expertise and solutions

Sell individual products

All three elements must work together in order to achieve marketing objectives

EMERSON

BUSINESS PLATFORM

BUSINESS

Compressors

Controls

Alternators

Fluid Control

Ultrasonic Welding

Food Waste Disposers

Plumbing Tools

Wet/Dry Vacuums

Mobile Point-of-Care Carts

Control Valves

Measurement Devices

Wireless Devices

AC & DC Power Systems

OEM Embedded Power

Precision Cooling Systems

Access & Control (KVM)

Power Switching & Controls

$7.0B $5.3B$6.8B $4.0B $1.8B

Help People Pursue Purpose

Create Value and Earn Attention Through

Content

Seek Participants, Not Targets

Operate in the Now – Available

Wherever People Are

Stay Forever Young – Listen, Learn, and Respond

Source: Digitas

USE ACTIVE BRANDING TO AMPLIFY OUR VOICE We Must Participate in the Larger Conversation

DEFINE PAIN

SOLUTION VISION

SOLUTION VALUE

Marketing

MARKET RESEARCH

IDEA GENERATION

CONCEPT FEASIBILITY

CONCEPT DEVELOPMENT

& PROJECT PLANNING

DESIGN & DEVELOPMENT

RAMP UP

LAUNCH & PRODUCTION

START-UPPRODUCTION

New-to-the-BUSINESS

New-to-the-WORLD

MINOR Revisions

MAJOR Revisions

Design language reflects Emerson’s improving high tech image

E2

iPro

Case Control

Smart Contactor

Terminal Box for Copeland Scroll with P510

Variable Speed Drive

PRINT

PROMOTIONS

CONFERENCES DIRECT MAIL

TRADITIONALMEDIA

INDUSTRYEXPERTS

PEERS

CUSTOMERS

INDUSTRYEXPERTS

CLIENTS

PEERS

SOCIALNETWORKS

COMMUNITYFORUMS

MOBILE

BLOGS WEBSITES

INTERACTIVEADS

SEARCHENGINES

TWITTER/RSS

WEBINARS

PODCAST

DIGITAL

SALES ANDRELATIONSHIP

MANAGERS

BUSINESSNETWORK

BUSINESSNETWORK

PROSPECTSAND

CLIENTS

COMMUNITIES

TRADE SHOWS

BUT B2B firms are not as active in their social media activity.

100%

80%

60%

40%

20%

0%

EXECUTIVE INVOLVEMENT

High

Low

RELEVANT

Yes

No

DEDICATED STAFF

Yes

No

USE OUTSIDE AGENCY

Yes

No

Mashable: State of B2B Social Media Marketing

of B2B firms are using social media, compared to 82% of B2C firms.

engage on a daily basis, compared with 52% of B2C firms.

Only

Guiding Principles of the Digital DialogueLet’s Join the Greater Conversation

Trust

Authentic

Engagement

Interactive

Cultivation

Relevance

Dynamic

Objective

Content

Fast

Intuitive

Integrated

Easily Accessible

Responsive

Experience

Two Way Sharing – Authentic – Transparent GLOBAL CONVERSATION

PAID OWNED EARNED

Like, Share, Comment, Tweet

Optimization of ad campaign

Implement social strategy – Aggregate content showcasing

innovation stories

Create voice for Emerson and reputation of strong

thought leadershipSour

ce: D

igita

s

“Corporate social media will facilitate collaboration and knowledge in very decentralized environments.” – KORN FERRY

Total Visits

2,203

UniqueVisitors

1,440

Total Page Views 9,000

Average Time on Site

Average Number of Pages Viewed

Social Shares

New Visitors Returning

Visitors

of visits of visits

Nearly 75% of All Emerson Mentions Occurred on TwitterEmerson_News Followers Grew by 100% YTD

Media types delineated

Total Emerson MentionsTotal Emerson Mentions 557,394

FisherValves 361

Bill_Morrison 343

EmrsnNPTelecom 265

ASCO_Process 261

Jack Pouchet 248

Steve_Hassell 179

RIDGID_Europe 175

ChristopAmstutz 161

Emerson_DScottBarbour 152

Twitter FollowersRIDGIDtoday 4232

EmersonEmPower 3821

Emerson_News 3557

JimCahill 3067

EmersonClimate 2917

EmersonProcessManagement 2013

EmrsnNPDataCntr 1548

EmersonEmbComputing 1518

CopelandScroll 1508

ClosestMaid 1309

DeltaV 1291

EmersonExchange 945

Rosemount Anlytical 824

RAIhome 757

ASCOValve 586

CT_Emerson 445

Emerson_Charlie 400

InSinkErator 385

MicroMotion 384

Emerson_MX 381

Overall 2012 Mentions = tweet, blog/forum post, article

86,181Blogs

405,218Twitter

29,587Forums

36,408News

UNDERSTANDING THE RISKS

Must first understand the amplifying effect on risk that already exists

Must second understand the new risks that did not previously exist

…There is Direct Legal Risk

• Employment Law• Securities Law• Confidentiality• Data Management• Intellectual Property• International Trade• Idea Submission• Service of Process

• Discovery• Consumer Protection• Commercial Torts• Privacy/Data Security• Third-Party IP• Defamation• Third-party terms• Agency

Emerson’s Guidelines for “Social Behavior”

1. BE TRANSPARENTIdentify who you are and what you do at Emerson in your posts.

2. BE RESPONSIVECheck for postings frequently and try to respond to comments or questions within 24 hours.

3. BE ENGAGINGDialogue is the key. Listen and engage in two-way conversations. And know when to take a conversation offline.

4. BE MINDFULNever reveal confidential or sensitive information. When in doubt, ask first.

Never guess, speculate or offer opinions in areas if you are unsure whether you are right. If you do offer an opinion, make sure it is known that you are only stating your personal opinion.

5. BE ACCURATECheck your facts, properly credit your information sources and follow copyright and “fair use” laws.

6. BE RESPECTFULDo not post anything you wouldn’t want your manager to read.

7. BE WEB SAVVYBe thoughtful about what you publish. Even if you delete it, your post can live online forever.

8. BE AN EXPERTOffer your knowledge to others!

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Creating ChangeTraining an Army of Young Social Networkers

Showcase Our Young, Smart Talent in the Annual Report – Online Annual Report

PROCESS

Leveraging Our “Third Wave” of Young ExecutivesSharing Their Views Through Gateway

New Emerson Careers Website Highlights The Smart Difference

We're going to drive our growth … We can't sit back on our ass and wait for it to come to us.- DAVE FARR (REUTERS, 2012)

$3.27 earnings per share

$1.38 dividends per share

2002 earnings per share is before the $1.12 per share cumulative effect of a change in accounting principle.

$0.01

55 consecutive years of increased dividends ...EMR is one of only a handful of public companies with 50+ years of increased dividends

1956 - 2011