helping our customers address the world’s most critical needs€¦ · our business objective to...
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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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