#1EMERSON TM Emerson 2023 Q3 Earnings August 2, 2023#2Safe 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 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. Endnotes Please refer to endnotes for the definition of certain terms used in this presentation. 2 EMERSON#3Exceptional Q3 Performance And Attractive Value Creation Opportunities KEY Q3 MESSAGES Resilient End Market Demand 3% orders growth - process and hybrid markets continue to exhibit resilient demand; softening discrete demand Strong Performance Excellent execution: 14% underlying sales growth, 59% operating leverage¹, 40% adjusted EPS growth Significant Progress in Portfolio Evolution, Innovation and Growth Programs Closed Copeland transaction and won several key projects in our organic growth platforms VALUE DRIVERS ACCELERATING Secular Growth Drivers Differentiated portfolio in rapidly growing energy transition, industrial software, and priority hybrid & discrete markets Innovation Opportunities Wave of new products focused on solving customers' sustainability and digital challenges Portfolio Evolution Driving Synergies Realizing synergies from inorganic investments and recognizing value from cohesive, diversified portfolio $ Updated Guidance to Reflect Strong Execution Exceptional operational performance provides confidence to increase outlook for 2023 1 Excluding AspenTech 3 Operational Excellence Top-quartile performance and execution driven by Emerson Management System EMERSON#4Underlying Orders 2023 Q3 Summary Results Prior Guidance 3% Underlying Sales Growth 14% 10% - 12% Comments High-single-digit growth in process and hybrid partially offset by discrete and other Both business groups up double digits Americas up 11%; Europe up 13%; Asia, Middle East & Africa up 20% Operating Leverage¹ 59% Mid-to-High 40s Strong operational performance supported by price-cost and mix tailwinds Adjusted EPS $1.29 $1.07 - $1.11 Free Cash Flow $769M 1 Excluding AspenTech 4 $0.20 above May guidance midpoint including $0.02 of interest from the Copeland note receivable Strong free cash flow performance Up 83% YoY and up 47% YTD EMERSON#5Continued Progress On Strategic Priorities COPELAND (Previously Climate Technologies) Transaction Closed May 31, 2023 Upfront Cash Expected Future Proceeds¹ $1.7B 40% common equity ownership $9.7B + ~$8B after-tax $2.25B Copeland note receivable Net Debt / Adjusted EBITDA 1.1x 1.0x 1.8x <2x • Net cash position 2020 Reported 2021 Reported 2022 Reported Current Post-NI Expectation 1 Transaction value 5 2022 ESG REPORT Released June 13, 2023 EMERSON. ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT Report Highlights • • 42% reduction in GHG emissions intensity from 2018 baseline, surpassing original 20% target 6 years ahead of schedule A-score from CDP Deep-dive on "Greening By" solutions to help customers decarbonize operations EMERSON#6Innovation Engine Creating New Products Aligned To Customer Demand aspenONE v14 New AspenTech software offers improved sustainability offerings and artificial intelligence 100+ sustainability models Carbon emissions management • Commercialization of hydrogen and bioprocesses ⚫ Artificial intelligence guiding users to achieve optimal operation Daspentech AMS Device Data Management Enhanced software offering progresses users ability to access intelligent device data New Data Server allows for secure extension of intelligent device data to outside systems AspenTech solutions, like Mtell, easily able to access data for advanced analytics OVATION™ Ovation Green Integrated renewables software platform for solar, wind, hydro, hydrogen, etc. assets • • Dedicated renewable power software platform Clear view of renewables assets - solar, wind, hydro, hydrogen, etc. Integrated portfolio of data-driven asset control and management Non-Contacting Radar Device ROSEMOUNT™ Easy-to-use, Bluetooth-enabled, versatile radar level transmitter Simplified commissioning, operation and maintenance Suitable for a range of applications from chemical to life sciences Smart Meter Verification to easily verify the health of the device Built-in historian to store process data and insights 6 EMERSON#7Strategic Project Funnel Is Robust And Continues To Shift Toward Growth Platforms NOVEMBER 2022 Carbon Capture Clean Fuels Sustainability & Decarbonization: $1.7B Energy Transition: $3.5B Growth Platforms: $3.7B AUGUST 2023 EV Battery Carbon Capture Clean Fuels Sustainability & Decarbonization: $2.8B Energy Transition: $4.9B Growth Platforms: $6.2B Hydrogen Renewables Nuclear $7.1B LNG Traditional Energy Chemical Traditional Power Life Sciences / Metals & Mining 1 Life sciences and metals & mining funnel increased ~$1B due to change in criteria 7 Hydrogen Renewables Nuclear $9.7B Traditional Energy Organic Growth: 23% Criteria Changes¹: +$1B Chemical Traditional Power Life Sciences LNG Metals & Mining EMERSON#8Emerson Awarded In Pursuit Continuing To Win New Business As A Trusted LNG Partner Globally $10M Automation Project Scope (per 1 MTPA of liquefaction) -50% Win Percentage $1B+ Active Project Pursuit Funnel 3 Projects Awarded to Emerson in 2023 Q3 00 8 Recent Wins BECHTEL ENERGY / SEMPRA INFRASTRUCTURE Port Arthur LNG Emerson awarded automation content for large-scale LNG facility EMERSON#9Recent Project Wins Demonstrate Emerson's Differentiated Leadership Throughout The Battery Value Chain 80 LITHIUM / COPPER 88 MINING LITHIUM REFINING/ CATHODE PRODUCTION Differentiated Technology ус 永 aspentech DELTAV PACSYSTEMS Differentiated Technology MM aspentech DELTAV & BATTERY MANUFACTURING Differentiated Technology MOVICON PACSYSTEMS ROSEMOUNT™ FISHER MICRO MOTION CLARKSON™ Recent Wins GANFENG LITHIUM Andes Project CODELCO Andina Copper Project ROSEMOUNT™ FISHER™ MICRO MOTION Recent Wins One of the Top Global Electric Vehicle Manufacturers AVENTICS BRANSON™ Recent Wins Large German Electric Vehicle Manufacturer 9 EMERSON#102023 Q3 Performance Summary SALES ADJUSTED SEGMENT EBITA ADJUSTED EPS $1.29 FREE CASH FLOW $3.9B 26.9% $769M $3.5B 23.2% $0.92 2022 14% Underlying 2023 2022 370 bps 2023 2022 40% 2023 $420M 2022 肉 83% 2023 All world areas and both business groups up double digits Backlog of $6.9B, flat from prior quarter 1 Excluding AspenTech Operating leverage (excluding AspenTech): 59% Strong price and favorable net material inflation accretive to margins 10 AspenTech contribution to 2023 Q3 EPS: $0.11 Driven by strong sales and continued execution Interest from Copeland note receivable contribution to 2023 Q3 EPS: $0.02 AspenTech contribution to 2023 Q3 free cash flow: $111M Robust YoY earnings growth and working capital improvement 2023 Q3 FCF conversion of adjusted earnings: 97% EMERSON#11$0.92 2022 Q3 To 2023 Q3 Adjusted EPS Bridge $0.02 $0.04 $0.02 $1.29 $0.29 Stock Comp ($0.06) Corp / Pension $0.05 Tax $0.03 40% 2022 Operations Other / Non-Operating Share Count Interest From 2023 Copeland Note Receivable1 1 Included in adjusted EPS post-Copeland transaction close 11 EMERSON#12Resilient Environment And Balanced Future Outlook CURRENT ENVIRONMENT Process / Hybrid Strength Process and hybrid markets continue to exhibit resilient demand - expecting double-digit sales growth in 2023 Discrete Softening Moderation in discrete demand compared against two strong years - expecting low-single-digit to mid-single- digit sales growth in 2023 Supply Chain Improving Supply chain continues to improve; specifically, availability of components Price-Cost Benefits Carryover from strong pricing programs in 2022 and effective inflation management mir 00 KEY GROWTH DRIVERS Energy Transition Leadership Leadership in energy transition markets to drive resilient through-the-cycle growth Nearshoring Opportunities Poised to capture stimulus investments and nearshoring spend in metals & mining, life sciences and battery value chain Software Growth Double-digit ACV growth and further tailwinds from AI and sustainability 12 EMERSON#132023 Continuing Operations Guidance Original Guidance (October 31, 2022) Prior Guidance (May 3, 2023) Current Guidance Net Sales Growth 7% -9% 9% - 10.5% ~10.5% Underlying Sales Growth 6.5% -8.5% 8.5% - 10% ~10% Operating Leverage¹ Mid-to-High 30s Low-to-Mid 40s -50% Adjusted EPS $4.00 - $4.15 > $4.15 - $4.25 $4.40 - $4.45 Free Cash Flow 1 Excluding AspenTech ~$2.2B $2.2B- $2.3B 13 DETAILS AspenTech contribution: 2023 Adjusted EPS: ~$0.25 2023 Free Cash Flow: ~$0.3B Current guidance now includes ~$0.06 impact of interest from the Copeland note receivable Excludes interest on undeployed proceeds and impact from 40% minority ownership in Copeland $2B share repurchase complete; $1.2B of dividend payments Tax rate: ~22.0% EMERSON#14Appendix#15Endnotes Operating Leverage, or Incremental Margins, throughout the presentation is defined as the ratio of the change in adjusted segment EBITA for the current period less the prior period, divided by the change in the net sales for the current period less the prior period. Emerson Less: AspenTech Emerson (excluding AspenTech) 2022 Q3 Net Sales Adjusted Segment EBITA $3,465M $239M $806M $3,226 A $129M $677M B 2023 Q3 Net Sales Adjusted Segment EBITA $3,946M $320M $1,060 $148 $3,626M C $912 D Operating Leverage (excluding AspenTech) = (D - B) (C - A) ($912M - $677M) ($3,626M - $3,226M) 59% Free Cash Flow Conversion throughout the presentation is defined as the ratio of free cash flow to adjusted net earnings (prior to non-controlling interests in subsidiaries). Free Cash Flow Free Cash Flow Conversion = Adjusted Net Earnings (Pre-Non-Controlling Interest) $769M $792M = 97% 15 EMERSON#162023 Industry Outlook PROCESS > DD Underlying Sales > HYBRID > ALDD Underlying Sales > Energy transition spend continues to accelerate LNG momentum in North America and Middle East Power & renewables demand momentum in U.S. Reshoring trends driving life sciences activity Lithium and battery metals driving investment in Australia, U.S., Mexico and Southern Cone Battery manufacturing investments in U.S. and Asia DISCRETE & OTHER > LSD- MSD Underlying Sales > Factory automation demand slowing 16 Commercial markets facing tough comparisons EMERSON#17Stock Compensation Pension Copeland Equity Loss Corporate & Other - GAAP Corporate Restructuring and Related Costs Acquisition / Divestiture Fees NI Investment Gain Russia Business Exit Corporate And Other Items (in millions) 2023 Q3 ($56) 2023 Expectations ~($250) -$165 $42 ($61) ~($135) ($43) ~($185) $1 ~$12 $38 -$60 ($12) -($47) $47 AspenTech Micromine Purchase Price Hedge Adjusted Corporate & Other - Non-GAAP Interest Income / (Expense) - GAAP Interest Income on Undeployed Proceeds Adjusted Interest Expense - Non-GAAP Average Diluted Share Count ($3) ($19) ($24) ~($135) -$0 ~($145) ~($145) $0 ($35) ($35) 574.0 ~577 17) EMERSON#182023 Continuing Operations GAAP EPS TO Adjusted EPS Guidance GAAP EPS Amortization of Intangibles Restructuring and Related Costs Russia Exit Costs 2023 $3.54 - $3.59 ~$0.61 -$0.16 AspenTech Micromine Purchase Price Hedge $0.08 Acquisition / Divestiture Fees NI Investment Gain Interest Income on Undeployed Proceeds Copeland Equity Loss Adjusted EPS 18 ($0.02) ~$0.10 ~($0.07) ~($0.19) ~$0.19 $4.40 - $4.45 EMERSON#19AspenTech Contribution To Emerson 2023 Q3 Adjusted EBITA AspenTech Reported Financials (Millions) Sales Net income Emerson Reported AspenTech Segment 2023 Q3 (Millions) 2023 Q3 $320 AspenTech sales $320 $27 AspenTech segment earnings (EBIT) $27 Income taxes (benefit) ($4) Restructuring Income before income taxes $23 Amortization of intangibles Interest income ($13) Segment EBITA % of sales $121 $148 46.1% Stock compensation $21 Emerson Corporate Micromine purchase price hedge ($3) (Millions) 2023 Q3 Other ($1) Interest income ($13) Segment EBIT $27 Stock compensation $21 Micromine purchase price hedge ($3) Other ($1) 19 EMERSON#202023 Q3 $320 $27 ($3) AspenTech Contribution To Emerson 2023 Q3 GAAP EPS And Adjusted EPS AspenTech Reported Financials (Millions) Sales Net income Interim tax reporting / other Emerson EPS Contribution (Millions, except per share) 2023 Q3 Sales $320 Net earnings $24 Non-controlling interest¹ ($10) Net earnings common stockholders $24 Net earnings common stockholders $14 Shares 574 GAAP net earnings common stockholders / EPS $14 $0.02 56% add-back (consistent with common ownership stake) of reconciling items - after-tax Amortization of intangibles $53 $0.09 Micromine purchase price hedge ($1) ($0.00) Adjusted net earnings common stockholders / adjusted EPS $66 $0.11 1 Due to AspenTech share repurchase, Emerson now holds 56% of outstanding shares 20 EMERSON#21AspenTech Contribution To Emerson 2023 Q3 Earnings From Continuous (Millions) Pre-Tax Earnings Income Taxes Operations Non- Controlling Interest¹ Net Earnings Common Stockholders Diluted Earnings Per Share AspenTech company reported $23 ($4) $27 Interim tax reporting / other ($1) $2 ($3) AspenTech consolidation in Emerson $22 ($2) $24 $10 $14 $0.02 Amortization of intangibles $121 $26 $95 $42 $53 $0.09 Micromine purchase price hedge ($3) ($1) ($2) ($1) ($1) $0.00 Adjusted $140 $23 $117 $51 $66 $0.11 Interest income ($13) Stock compensation $21 Adjusted Segment EBITA $148 1 Due to AspenTech share repurchase, Emerson now holds 56% of outstanding shares 21 EMERSON#22Underlying Sales Change Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) August Guidance FY23E Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) Divestitures Underlying (non-GAAP) Q3 FY23 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) Divestitures Underlying (non-GAAP) Total Business Segment Adjusted EBITA / EBITA Margin Pretax earnings / margin (GAAP) Corporate items and interest expense, net Total Business Segment EBITA / margin Amortization of intangibles and restructuring and related costs Adjusted total business segment EBITA / margin (non-GAAP) Adjusted Business Segment EBITA Leverage Pretax margin leverage Corporate items and interest expense, net / amortization / restructuring / acquisitions Adjusted business segment EBITA leverage, excluding AspenTech (non-GAAP) References to underlying orders and underlying sales in this presentation exclude the impact of acquisitions, divestitures and currency translation Q3 FY23 14% ~1% ~(2)% ~1% 14% -10.5% -1.5% ~(2.5)% -0.5% May Guidance Q3 FY23E 10.5 - 12.5% ~0.5% ~(1.5)% -0.5% May Guidance FY23E October Guidance FY23E 9% -10.5% ~1.5% 7% -9% -10% 10% -12% ~(2.5)% -0.5% 8.5% - 10% ~3.5% ~(4)% - % 6.5% - 8.5% Intelligent Software and Devices Control 11% 22% 1% 0% -% (4)% 1% 1% 13% 19% Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Change $378 $761 10.9% 279 118 8.1% 19.3% 3.0% $657 $879 19.0% 22.3% 840 bps (510) bps 330 bps 149 $806 181 $1,060 4.2% 4.6% 40 bps 23.2% 26.9% 370 bps May Guidance August Guidance May Guidance Q3 FY23 Q3 FY23E FY23E 80% ~ Mid High 70s -15% (21)% ~ (30)s -35% 59% ~ Mid-High 40s -50% FY23E Mid-to-high teens ~Mid 20s ~Low Mid 40s October Guidance FY23E Low-to-mid teens ~Mid 20s - Mid-High 30s 22 EMERSON#23Earnings Per Share Earnings per share (GAAP) Amortization of intangibles Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Restructuring and related costs Acquisition / divestiture costs National Instruments investment gain Interest income on undeployed proceeds Copeland equity method investment loss Russia business exit Adjusted earnings per share (non-GAAP) Earnings Per Share Earnings per share (GAAP) Amortization of intangibles Restructuring and related costs Acquisition/divestiture fees Interest on note receivable from Climate Technologies Interest income on undeployed proceeds Copeland equity method investment loss Adjusted earnings per share (non-GAAP) References to underlying orders and underlying sales in this presentation exclude the impact of acquisitions, divestitures and currency translation Q3 FY22 Q3 FY23 Change $0.38 $1.03 171% 0.12 0.15 0.04 0.02 0.09 0.07 (0.02) (0.05) 0.09 0.29 $0.92 $1.29 40% May Guidance Q3 FY23E $0.92 - $0.96 ~0.15 -0.03 ~0.03 ~(0.02) ~(0.04) $1.07 - $1.11 23 EMERSON#24Earnings Per Share Earnings per share (GAAP) Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Amortization of intangibles Restructuring and related costs Russia business exit AspenTech Micromine purchase price hedge Acquisition/divestiture fees & interest on pre-acquisition debt Gain on subordinated interest Investment-related gains National Instruments investment gain Interest income on undeployed proceeds Interest on note receivable from Climate Technologies Copeland equity loss Adjusted earnings per share (non-GAAP) August Guidance Midpoint FY23E FY22 Change May Guidance FY23E October Guidance FY23E $3.54 - $3.59 $3.16 ~13% $3.58 - $3.68 $3.51 - $3.66 ~0.61 0.45 ~0.61 ~0.16 0.14 ~0.12 ~0.61 -0.13 -0.08 0.32 -0.08 ~(0.02) 0.04 ~(0.02) --- ~0.10 0.15 -0.06 (0.60) (0.02) ~(0.07) ~(0.05) ~(0.19) ~(0.17) ~(0.06) ~(0.15) ~(0.10) -0.19 $4.40 - $4.45 $3.64 -22% $4.15 - $4.25 $4.00 - $4.15 Adjusted Earnings from Continuing Operations Q3 FY23 Earnings from continuing operations (GAAP) $603 Interest income on undeployed proceeds Amortization of intangibles Restructuring and related costs Acquisition/divestiture costs National Instruments investment gain Copeland equity method investment loss AspenTech Micromine purchase price hedge Adjusted earnings from continuing operations (non-GAAP) 130 10 36 (9) (27) 51 (2) $792 References to underlying orders and underlying sales in this presentation exclude the impact of acquisitions, divestitures and currency translation 24 EMERSON#25Backlog Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Backlog (GAAP) AspenTech Backlog excluding AspenTech (non-GAAP) Cash Flow Operating cash flow (GAAP) Capital expenditures Free cash flow (non-GAAP) Cash Flow Operating cash flow (GAAP) Capital expenditures Free cash flow (non-GAAP) Free Cash Flow Conversion Operating cash flow conversion (GAAP) Capital expenditures Amortization of intangibles / restructuring and related costs / AspenTech Micromine purchase price hedge / Acquisition and divestiture fees / interest income on undeployed proceeds / Copeland equity method investment loss Adjusted free cash flow conversion (non-GAAP) References to underlying orders and underlying sales in this presentation exclude the impact of acquisitions, divestitures and currency translation June 30, 2023 $8.2 (1.3) $6.9 Q3 FY22 Q3 FY23 Change $479 (59) $420 $842 (73) $769 76% 7% 83% Nine Months Ended June 30, 2022 Nine Months Ended June 30, 2023 Change $1,235 $1,719 (199) $1,036 (194) $1,525 39% 8% 47% Q3 FY23 140% (12)% (31)% 97% 25 August Guidance FY23E $2.5B -$2.6B ~(0.3)B $2.2B-$2.3B May Guidance FY23E ~$2.5B ~(0.3)B ~$2.2B EMERSON#26Reconciliation Of Non-GAAP Measures This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) AspenTech Segment EBITA Margin Business segment EBIT / margin (GAAP) Amortization of intangibles and restructuring and related costs Adjusted business segment EBITA / margin (non-GAAP) AspenTech Cash Flow Contribution Operating cash flow (GAAP) Capital expenditures Free cash flow (non-GAAP) AspenTech EPS Contribution AspenTech EPS (GAAP) Amortization of intangibles AspenTech Micromine purchase price hedge AspenTech adjusted EPS (non-GAAP) Net Debt to EBITDA Net debt / pretax earnings (GAAP) Interest, taxes, depreciation, amortization Net debt / EBITDA Restructuring Net debt / Adjusted EBITDA (non-GAAP) References to underlying orders and underlying sales in this presentation exclude the impact of acquisitions, divestitures and currency translation Q3 FY22 Q3 FY23 $57 72 $129 $27 121 $148 May Guidance FY23E ~$0.3B ~$0.3B August Guidance FY23E ~$(0.08) ~0.35 ~(0.02) -$0.25 2020 2021 2022 Post-NI Expectation 1.8X 1.5X 2.1X <3X (0.6) (0.4) (0.5) <(1) 1.2 1.1 1.6 <2 (0.1) (0.1) 0.2 1.1X 1.0X 1.8X <2X 26 EMERSON