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Helping Our Customers Address the World’s Most Critical Needs Company Overview | 2018

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Page 1: Helping Our Customers Address the World’s Most Critical Needs€¦ · Our Business Objective To deliver innovative technologies and solutions that help our customers around the

Helping Our Customers Address the World’s Most Critical Needs

Company Overview | 2018

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Emerson is where technology

and engineering come together

to create solutions for the benefit

of our customers, driven without

compromise for a world in action.

Our Brand Promise

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DAVID N. FARR

Chairman & CEO

The Strength of One Emerson

We have completed our strategic

portfolio repositioning and are now

strongly aligned around the two

platforms that will propel us forward:

Automation Solutions and Commercial

& Residential Solutions.

Today, we see One Emerson – unified in

our efforts and working to address critical

world needs. By concentrating on the most

complex and important challenges facing

our customers, we have the opportunity to

make the world a better place.

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2017 Emerson At-A-Glance

FOUNDED

1890 HEADQUARTERS IN

ST. LOUIS, MO USA

WORLDWIDE

76,500 EMPLOYEES

200 MANUFACTURING LOCATIONS

TWO BUSINESS PLATFORMS

EMERSON AUTOMATION SOLUTIONS

EMERSON COMMERCIAL & RESIDENTIAL SOLUTIONS

RECOGNITION

# 139

2017

FORTUNE 500 AMERICA’S

LARGEST

CORPORATIONS

BY REVENUE

EMERSON EMPLOYEES WERE AWARDED MORE THAN

2,100 PATENTS WORLDWIDE IN 2017

$15.3 BILLION IN GLOBAL SALES

FISCAL YEAR 2017

61 YEARS

CONSECUTIVE

YEARS OF

INCREASED

DIVIDENDS

NYSE:

EMR

Top 50 Employers WOMEN ENGINEERS

MAGAZINE

America’s Best

Employers FORBES MAGAZINE

INNOVATION

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Emerson Global Presence 2017

Latin America

Sales $767 million

Employees 13,000

Locations 25

Asia

Sales $3.3 billion

Employees 24,000

Locations 45 Middle East / Africa

Sales $956 million

Employees 1,500

Locations 5

United States and Canada

Sales $7.9 billion

Employees 23,000

Locations 75

Europe and Russia

Sales $2.4 billion

Employees 15,000

Locations 50

Note: Locations include manufacturing locations only.

Global Sales $15.3 billion Employees 76,500 Locations 200

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Automation Solutions

Commercial & Residential Solutions

Emerson Global Sales 2017 - $15.3 Billion

2017 Sales by Platform

52%

21%

16%

5% 6%

2017 Sales by Geography

Asia

Europe

United States and Canada

Latin America

Middle East /

Africa

62%

38%

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Global

Focus

Emerging

Markets

Regionalization

Strategy

Our Business Objective

To deliver innovative technologies and solutions that help our customers around the world solve their most complex challenges

Emerson International Sales

2017 destination sales outside the US 52%

2017 destination sales in emerging market countries 34%

Sales within North America, Asia and Europe derived from manufacturing, distribution and management within that same region: Asia for Asia, North America for North America, Europe for Europe

>80%

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Core Business Platforms

• Making the greatest use of the world’s valuable resources

• Helping nations move their economies forward in a responsible way

• Enabling the performance and safety of industry when it matters most

• Advancing the industries that are the backbone of daily life

• Ensuring human comfort and health

• Protecting food quality and sustainability

• Advancing energy efficiency and environmental conservation

• Creating sustainable infrastructure

• Continuing momentum at our Helix Innovation Center

We concentrate on the most complex and important challenges facing the world in the process, industrial, commercial and residential markets.

EMERSON AUTOMATION SOLUTIONS EMERSON COMMERCIAL & RESIDENTIAL SOLUTIONS

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Delivering Shareholder Value

$1.92 Dividends Per Share

$2.64 Earnings Per Share*

2017

61 consecutive years of increased dividends

Emerson (NYSE: EMR) is one of the few public companies with 60+ years of increased dividends.

1956 * 2017 earnings per share exclude a loss from discontinued operations of $0.19 and

Valves & Controls first year acquisition accounting charges of $0.10.

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2 Business Platforms 1 Emerson

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Improving Process and Industrial Manufacturing Performance with Measurable Results

Emerson Automation Solutions

Industries Served include

Oil and Gas/Refining

Chemical

Power

Food and Beverage

Metals and Mining

Water and Wastewater

Life Sciences

Automotive

Electronics

Core Expertise & Key Brands

Industrial Internet of Things

• Plantweb

Systems and Asset Management

• DeltaV

• Ovation

Measurement Instrumentation

• Rosemount

• Micro Motion

Solenoids and Pneumatics

• ASCO

Valves, Actuators and Regulators

• Bettis

• Crosby

• Fisher

Precision Welding

• Branson

Electrical and Lighting

• Appleton

Industry Services and Solutions

• Keystone

• KTM

• Vanessa

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Asia

Europe

United States and Canada

Latin America

Middle East / Africa

44%

23%

20%

5% 8%

Sales

$9.4 billion

Emerson Automation Solutions

Sales by Geography

2016 At-A-Glance

2017 At-A-Glance

Employees

~48,500

Customers include

Amgen, BASF, BP, Cargill, Dow,

Duke Energy, Medtronic, Nestle,

Novo Nordisk, Reliance

Industries, Sasol, Saudi Aramco,

Shell, Sinopec, Tesla

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Emerson Automation Solutions Enabling Top Quartile Results

Plantweb Digital Ecosystem

Our Plantweb digital ecosystem provides a robust portfolio of hardware, software,

intelligent devices and services for securely implementing the Industrial Internet of Things,

with measurable business performance improvement.

Our technology- and engineering-based

program is designed to help industrial

companies achieve Top Quartile performance

and recover more than $1 trillion* in

operational losses globally.

Operational Certainty

We combine innovative technology and

engineering to improve capital efficiency

and boost project schedule reliability—

helping to address the billions of dollars

lost due to project excesses each year.

Project Certainty

*Emerson internal estimate

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Our Brands include

Copeland

InSinkErator

ProAct

RIDGID

Sensi

Improving the Quality of People's Lives Around the World

Emerson Commercial & Residential Solutions

Industries Served include

Construction

Commercial Buildings

Food Retail

Food Service

Transportation

Contractor

Homeowners

Core Expertise

Heating, Air Conditioning and

Refrigeration

Human Comfort

Cold Chain

Monitoring Systems and Facility

Controls

Food Waste Solutions

Home Repair and Maintenance

Construction and Plumbing Tools

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Sales

$5.9 billion

Emerson Commercial & Residential Solutions

Sales by Geography

2016 At-A-Glance

Asia

Middle East / Africa 4%

2017 At-A-Glance

Employees

~26,500

Customers include

Amazon, Daikin-Goodman,

The Home Depot, Ingersoll-Rand,

Johnson Controls, Lennox, Lowe’s,

Midea, United Refrigeration,

United Technologies, Wolseley,

W.W. Grainger

Europe United States

and Canada

Latin America

64%

18%

9%

5%

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Copeland Scroll

modulated compressors

can help to reduce

energy consumption by

one-third or more in air-

conditioning units.

Energy

Efficiency

Emerson Commercial & Residential Solutions: Key Initiatives

Emerson’s top-rated

Sensi Wi-Fi

Programmable

Thermostat enables

homeowners to control

their environment,

with the smartphone

anywhere in the world.

Home

Comfort

Our scroll compressor

heating technology

enables homes in China

to use heat pumps

instead of burning coal;

and our Grind2Energy

system turns food waste

into energy.

Environmental

Stewardship

Food Quality

& Safety

Our Cold Chain

expertise and ProAct

apps and services

continually monitor

perishables to assure

quality and integrity at

all points, helping

safeguard the world’s

food supply from farm

to fork.

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Emerson More About Our Company

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Emerson’s Values Guide How We Do Business

Our values are an important driver to our success

INTEGRITY

We are uncompromising in our honest and

ethical behavior, which creates trusting

relationships with one another, customers,

suppliers, and communities.

SAFETY & QUALITY

We are unwavering in our commitment to the

highest standards of safety and quality for

ourselves and our customers.

CUSTOMER FOCUS

We actively listen to our customers to deeply

understand their needs and deliver the unique

solutions that ensure their success.

SUPPORT OUR PEOPLE

We attract, develop, and retain exceptional

people in an inclusive work environment, where

all employees can reach their greatest potential.

CONTINUOUS IMPROVEMENT

We constantly strive for improvement in all

aspects of our business, guided by metrics,

feedback, and our disciplined

management process.

COLLABORATION

We work seamlessly across geographies,

platforms, business units, and functions to fully

leverage our unmatched breadth and expertise.

INNOVATION

We passionately pursue new technologies,

capabilities, and approaches to drive tangible

value for our customers.

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Our most recent Corporate Social

Responsibility Report highlights 2016

initiatives and annual disclosures

related to:

• Environmental Stewardship

• Integrity & Ethics

• Corporate Governance

• People & Workplace

• Supply Chain

• Community Involvement

Corporate Social Responsibility

Our full report is available at

emerson.com/csr

Emerson is committed to operating its businesses responsibly, ethically and as a good corporate citizen in our communities.

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Corporate Philanthropy & Employee Volunteerism

Through our corporate donations and employee volunteers, we are working to improve people’s lives and helping build stronger communities

In 2017, Emerson and its Charitable Trust contributed

$26.8 million to educational institutions and nonprofit organizations across the U.S.

Emerson operates separate charitable-giving programs in China and India

[CATEGORY NAME]

$8.3M (31%)

[CATEGORY NAME]

$8.8M (33%)

[CATEGORY NAME]

$6.2M (23%)

[CATEGORY NAME]

$3.5M (13%)

AREAS OF GIVING

2017

Funded more than 25 STEM-related scholarships, programs or supporting organizations in the United States

Employee volunteer activities around the world included:

• Hosting “We Love STEM Day” events at Emerson facilities and schools

• Collecting and donating money, clothing and food for disadvantaged families and victims of natural disasters, etc.

• Mentoring students, and more

Making a Difference in

Our Communities in 2017

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Strengthening Our Workplace

Emerson is committed to creating a global workplace that encourages diversity and embraces inclusion

RECOGNITIONS America’s Best

Employers 2017 Forbes magazine

Emerson’s actions and initiatives

Emerson Women

in STEM, a company-

recognized employee

resource group with

1,700+ members, provides

support and networking

opportunities for our

female employees globally

Member of “CEO

Action for Diversity &

Inclusion” initiative

Global roll-out of

diversity awareness

and unconscious bias

training to all leadership

teams

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Promoting STEM Education and Careers

Supporting Science, Technology, Engineering and Math (STEM) education to inspire the next generation of engineers and leaders

Our award-winning WeLoveSTEM campaign, launched in 2016, seeks to inspire young people to enter science, technology, engineering and math fields.

Organized by Emerson employees locally, dozens of WeLoveSTEM events have been held around the world. YouTube star Hank Green partners with Emerson to deliver fun, engaging video content on STEM topics.

Emerson and its charitable trust have donated or pledged $9.2 million since 2011 to support STEM-related programs and scholarships at K-12 schools and colleges in the U.S.

Our employees, including senior management, participate in student mentoring and training programs at educational institutions around the world.

WeLoveSTEM Campaign Funding Scholarships, Programs, Mentoring Students

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