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RECONCILIATION OF NON-GAAP

FINANCIAL MEASURES

2009 2010 2011E

Underlying sales:

Underlying sales (non-GAAP) (13)% (1)% 7 - 10%

Foreign currency translation (3)% 2 % 2%

Acquisitions 1 % 4 % 3%

Net sales (15)% 5 % 12 - 15%

Operating profit (non-GAAP) $3,144 3,509 4,035 - 4,210

Operating profit margin %

(non-GAAP) 15.6% 16.7% 17.2 - 17.5%

Interest expense and

other deductions, net 694 630 670 - 700

Pretax earnings $2,450 2,879 3,335 - 3,540

Pretax earnings margin % 12.2% 13.7% 14.2 - 14.7%

COMPARISON OF FIVE-YEAR

CUMULATIVE SHAREHOLDER RETURN

SEPT SEPT SEPT SEPT SEPT SEPT

2005 2006 2007 2008 2009 2010 CAGR

Emerson 100 119 155 122 124 168 10.9%

S&P 500 Index 100 111 129 101 94 103 0.6%

Dow Jones

US Electrical

Components

& Equipment Index 100 115 137 103 106 122 4.1%

$100 invested on 9/30/05 in stock or index, including reinvestment of

dividends. Fiscal year ending September 30.

Safe Harbor Statement

This Annual Report contains various forward-looking

statements and includes assumptions concerning

Emerson’s operations, future results and prospects.

These forward-looking statements are based on current

expectations, are subject to risk and uncertainties, and

Emerson undertakes no obligation to update any such

statements to reﬂect later developments. In connection

with the “safe harbor” provisions of the Private Securi-

ties Litigation Reform Act of 1995, Emerson provides the

following cautionary statement identifying important

economic, political and technological factors, among

others, changes in which could cause the actual results

or events to differ materially from those set forth in or

implied by the forward-looking statements and related

assumptions.

Such factors include, but are not limited to, the following:

(i) current and future business environment, including

interest rates, currency exchange rates and capital and

consumer spending; (ii) potential volatility of the end

markets served; (iii) competitive factors and competitor

responses to Emerson initiatives; (iv) development and

market introduction of anticipated new products; (v)

availability of raw materials and purchased components;

(vi) U.S. and foreign government laws and regula-

tions, including taxes and restrictions; (vii) outcome of

pending and future litigation, including environmental

compliance; (viii) stability of governments and business

conditions in foreign countries, including emerging econ-

omies, which could result in nationalization of facilities

or disruption of operations; (ix) penetration of emerging

economies; (x) favorable environment for acquisitions,

domestic and foreign, including regulatory requirements

and market values of candidates; (xi) integration of acqui-

sitions; (xii) favorable access to capital markets; and (xiii)

execution of cost-reduction efforts.

; Emerson; Emerson Network Power; Emerson

Industrial Automation; Emerson Process Management; Emerson

Climate Technologies; Emerson Tools and Storage; Emerson

Appliance and Tools; Avocent; Business-Critical Continuity; Chloride;

Copeland Scroll; Trellis; and their related designs and logotypes are

trademarks, service marks and/or trade names of Emerson, its

subsidiaries, afﬁliates, investments or joint ventures.

Chevron and its related designs and logotypes used within this

Annual Report are the trademarks, service marks and/or trade

names of their owner, and are not owned by or afﬁliated

with Emerson.

2005 2010

_$250

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