Rockwell Automation 2005 Corporate Responsibility Report

A Trusted Partner

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Letter from Keith Nosbusch 3Letter from Bruce Rockwell 5

A Partner of Choice We Make the World More Productive 7

Setting the Standard for Quality and Satisfaction 10Choosing the Best Available Suppliers 12Trust in Every Transaction 14Social Responsibility Principlesof Rockwell Automation 16

An Employer of Choice Creating a Culture of Inclusion 17Professional Development Never Ends 20Protecting Our Most Valued Resource, People 21Safety Policy/Performance 22

A Neighbor of Choice Promoting environmental stewardshipwhile growing the business 25Environmental Policy 26

Environmental Performance 27

Giving with Purpose 30Tell Us What You Think 34Rockwell AutomationCorporate Responsbility At-a-Glance 35

Table of Contents

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Welcome to Rockwell Automation’s fi rst Corporate Responsibility Report. With this report we are transitioning from publishing an annual Environmental, Health and Safety report to a more comprehensive corporate responsibility report that better explains who we are and how we do business.

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T he topics and eff orts you’ll read about – such as ethics, safety and diversity – are not new. Our programs in these areas go back more than 30 years and are fundamental to the values of our organization. What is new is this type of holistic reporting on objectives we address every day in the course of doing business.

Th is type of communication continues to evolve and goes by many names, such as citizenship, social responsibility and sustainability. We view this “fi rst” report as the start of a transition and learning process for our company. We appreciate that stakeholders understand there is more to a company than just fi nancial results and welcome the opportunity for people to have a better understanding of our company, our people and our culture. We embrace this chance to provide some context to our progress and to our challenges.

As a 100-plus year old company, we understand the need to take actions to preserve the future. We’re a resilient company that has evolved and transformed into the global technology leader that we are today. We’ve always been guided by doing the right thing, especially when it comes to our customers.

We are passionate about customer success. Keeping customers at the center of all of our activities positions us as a trusted partner. We work hard to understand the business needs of our customers, develop solutions that respond to those needs, and deliver meaningful benefi ts and value. We deliver value by helping customers achieve faster time to market, lower total cost of ownership, better asset management, and reduced manufacturing business risks. Our value proposition has remained the same: to help our customers be more productive and globally competitive.

We are focused on best practices in the critical areas of corporate governance, ethics and social responsibility. Under the leadership of our Board of Directors, we continue to make sound corporate governance a priority. Th at commitment is refl ected in the

leadership scores we have received from corporate governance rating agencies.

Our corporate culture has always been one of integrity and forthrightness, and we have further demonstrated this with the appointment of a compliance leader whose job is to act as a central point of review and supervision for our business conduct.

Finally, we continue our vigilance in fostering a diverse and inclusive workforce, maintaining a safe workplace, and respecting the environment. Th at includes continuing to take responsibility to remediate the past actions of businesses no longer affi liated with the company.

We take pride in our progress. Th is year we were again accepted as a member of the FTSE4Good Index Series, an index designed to identify companies that are working toward environmental sustainability, developing positive relationships with stakeholders, and upholding and respecting universal human rights. We received the Institute for Supply Management’s Principles of Social Responsibility Recognition Award. And, we’ve been asked to serve on the U.S. Technical Advisory Group on Social Responsibility. Th is panel of experts will serve as the U.S. contingent in developing an international standard that will guide organizations worldwide as they address their social responsibility obligations.

Our success as a company is a result of relationships, working together with our customers, employees and other partners and stakeholders to provide products and services that meet their needs. We appreciate your interest in reading this report. We welcome your input on both the report and the programs it outlines. We continue to learn and adopt best practices in our eff orts and communications on subjects that are integral to the way we do business.

Sincerely,

Keith D. NosbuschChairman and Chief Executive Offi cer

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A History of Corporate Responsibility and Board Involvement

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Rockwell Automation’s commitment to corporate responsibility starts with our Board of Directors. Responsible business practices have been a subject of our company’s dialog and behavior long before it became a mainstream business topic. Our company has been a leader on corporate responsibility ever since our Board established a Social Responsibility Committee in 1976. I am pleased to chair our current Technology, Environmental and Social Responsibility Committee.

A key mission of our Technology, Environmental and Social Responsibility Committee, composed of independent directors, is to encourage, inspire and monitor corporate responsibility practices throughout our company, at all levels of the organization around the world. Th is committee reviews and assesses the company’s policies and practices in the following areas:

• Employee relations, with a particular emphasis on equal employment opportunities and advancement; • Protecting and enhancing the environment and energy resources; • Product integrity and safety;

• Employee health and safety; and • Community and civic relations including our contributions programs.

Th e committee advises the full Board of the company’s progress and recommends, when needed, new or revised policies and practices. In 2005, the committee recommended to the Board, and the Board then adopted, the Social Responsibility Principles of Rockwell Automation (please see page 16). Th e preamble to these principles, which have been implemented worldwide, states: “Rockwell Automation embraces its social responsibility; we are convinced that social responsibility is an important factor to the long-term success of our company.”

Th ank you for taking the time to learn more about our company.

Sincerely,

Bruce M. RockwellChair: Technology, Environmental and Social Responsibility CommitteeRockwell Automation Board of Directors

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A Partner of Choice

WE MAKE THE WORLD MORE PRODUCTIVE

To explain it simply, Rockwell Automation makes

the world more productive. We do that by helping

companies use and protect their most valuable

resources – people, equipment and energy – more

effi ciently and safely. Our success is anchored in the

most innovative, competitive and comprehensive

product and service portfolio in the automation

industry. It consists principally of our power, control

and information solutions, and value-added services.

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Fiscal 2005 was another outstanding year for Rockwell Automation – one marked by increasing evidence that we have the people, fi nancial resources and strategic focus to deliver sustained value to our stakeholders.

Our fi nancial performance tells the story: • Revenues were $5 billion, up 13 percent • Segment operating margin improved 4.0 points at Control Systems and 3.5 points at Power Systems • Earnings per share from continuing operations was $2.77, up 50 percent

Th ese results validate the growth and performance strategy we launched several years ago to transform Rockwell Automation into a global technology leader.

Two fundamental actions drive our business strategy. We are focused on growth by investing in breakthrough technologies, expanding our served markets, and enhancing our market access. And, we are focused on performance, including developing performance-driven skills in our employees around the world.

Delivering Breakthrough Technologies and ServicesWith Logix we are revolutionizing manufacturing by enabling manufacturers to integrate multiple control disciplines – process, discrete, motion, drives and safety control – on a single platform, assuring the diff erent automation technologies work together. Logix also provides seamless connectivity to plant-wide information systems allowing customers to collect and use plant fl oor data to improve manufacturing operations and supply chain processes, and to make faster, more eff ective real-time business decisions.

Working collaboratively with our customers, we continue to invest in new features and capabilities that enhance and extend the functionality of the Logix platform. New in 2005 was the integration of safety applications to meet increased demand for machine safety.

Th e GuardLogix™ safety controller brings together the benefi ts of the Logix platform – common programming environment, common networks and a common control engine – with integrated safety control in an easy-to-use environment. Although safety control has specifi c requirements, users can now program and manage their safety control system using familiar standard control methods. In the past, designers would install hardware in parallel to the standard automation components in order to meet safety standards.

Now with GuardLogix, safety can be integrated into a company’s existing automation infrastructure.

In our power control and conversion businesses, which include drives, industrial components, packaged solutions, systems, mechanical power transmission and motors, we continue to introduce innovative and diff erentiated products. We are a world-class provider for customers in industries such as oil and gas, mining, metals, and water/wastewater, where the goals worldwide are improved performance and energy effi ciency. In a fi ercely competitive global economy, controlling and reducing costs is imperative, and energy is a prime target.

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we are focused on performance

Speaking at Rockwell Automation’s 2005 Automation Fair®, Governor John Engler,President, National Association of Manufacturers, called Rockwell Automation, “a great company which has been a leader in terms of energy innovation and effi ciency.” Engler said energy and effi ciency “is the number-one priority for manufacturers.” Electric motor driven systems account for over 60 percent of commercial electricity usage and represent the largest single electrical end use in the U.S. economy. But between now and 2025, Engler reported we will need 55 percent more electricity than we generate today and consumption of all sources of energy will increase: petroleum by 47 percent; natural gas by 49 percent; coal by 30 percent; and renewable energy by 46 percent.

Solving Energy Challenges for Our CustomersTh e biggest opportunity to conserve power and reduce costs is by using more effi cient electrical and mechanical systems. Rockwell Automation manufactures Reliance Electric® and Allen-Bradley® brand lines of premium effi cient electric motors andvariable speed drives, and DODGE® brand energy effi cient gearing. By running this equipment together, users can reduce overall energy consumption by an average of 33 percent. Th is benefi ts the environment by reducing the use of natural resources, and benefi ts our customers by reducing energy costs and, in some countries, energy tax levies.

For example, variable speed drives save energy by allowing customers to adjust the output speed of their electric motors to suit their processes. In the case of centrifugal devices like pumps or fans, a motor whose speed is matched to the process fl ow requirement will use less energy than a motor running at full speed.

During the past twenty years, the electric power industry in China grew at a record pace to meet the demands of its large residential base and an ever-growing industrial sector. Th e country is now

the world’s second largest producer of electricity. Th is growth has required higher standards for more effi cient, cleaner energy production. Th is is especially true for coal-fi red plants, which account for nearly 75 percent of the country’s power generation.

Th e Tianjin Junliangcheng Power Plant, a coal-fi red plant located in northern China, faced a specifi c government stipulation requiring certain electric generators to conform to new environmental emission standards within fi ve years. Junliangcheng Power turned to Beijing-based original equipment manufacturer Zhongneng Great Wall Control Company for a solution. Zhongneng Control is particularly focused on helping its energy industry customers produce power safely and reliably with control solutions that lower energy consumption and reduce emissions. Zhongneng Control selected Allen-Bradley variable speed drives as the key component of their solution. As a result, Tianjin Junliangcheng Power increased its energy savings by 40 percent, and decreased its fuel needs and the related resulting emissions.

Aside from our products, our growing portfolio of value-added services and solutions delivery capabilities help our customers optimize

The Tianjin Junliangcheng Power Plant reduced energy consumption by more than 40 percent from using Rockwell Automation products

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manufacturing, improve plant uptime and reduce time to market. Th ese services include energy audit and consulting, and our Power and Energy Management Solutions (PEMS). PEMS works with industrial customers to manage their energy usage and maximize their energy productivity. Th ey help companies build infrastructure that shows how, when and where they use energy, and how to implement and verify energy-saving initiatives.

Expanding Industry and Global ReachEnhancing our product, services and technology leadership adds to our capabilities while our vertical industry and globalization initiatives give us access to a larger, more diverse set of potential customers.We are investing in developing in-depth, industry-specifi c application expertise to better anticipate and address our customers’ unique manufacturing problems and business needs. As a result, we are closer to our customers’ core value-added processes and are better able to apply our innovation to diff erentiate their products and improve their competitiveness.

During 2005, we created industry-specifi c expertise staff ed with dedicated sales resources, and developed targeted applications to solve problems unique to these industries. We are developing this expertise across many industries, with a focus on the food, beverage and brewing, consumer goods, automotive, and life sciences industries.

Our global market expansion continues. Our expanding presence in key developing markets, including China, India, Latin America, and Central and Eastern Europe, is important to our growth and we are seeing signifi cant progress in all of these markets.

Revenues outside the U.S. now exceed 38 percent of our total sales. During 2005, we experienced strong revenue growth in the Asia Pacifi c and

Latin American regions while revenues in Europe were fl at in a diffi cult economic environment. Looking forward, we plan to earn 50 percent of our revenues from sales outside the United States by 2010. We are committed to the continued globalization of our business model and diversifi cation of our customer base.

SETTING THE STANDARD FOR QUALITY AND SATISFACTIONWe are dedicated to enhancing our customers’ success worldwide with products, services, knowledge and responsiveness that set industry standards for quality and value. We believe quality is a product, system, or service that is defect-free, compromise-free, on-time, includes planned features promised to the customer, and is fully supported. If any of these elements is absent, then it’s not quality.

Industry-specifi c expertise in such fi elds as life sciences and automotive allow us to develop targeted solutions unique to our customers’ businesses

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Our quality strategy goes above and beyond regulatory compliance. Company leadership establishes quality objectives each year based upon historical data, best of breed benchmarking and customer survey information.

Fift een years ago, the fi rst Rockwell Automation facility was certifi ed under ISO 9001, the worldwide standard for quality. Today, more than 67 facilities companywide have achieved certifi cation. In 2001, we became one of the fi rst companies registered under the new ISO 9001:2000 standard. More than 95 percent of our company’s products are manufactured in ISO 9001:2000 certifi ed facilities.Our approach to delivering quality looks at the entire “value stream” starting with customer requirements through product design, manufacturing, distribution and support.

Every product has a quality plan that includes rigorous testing to make sure our products are designed for manufacturability, reliability and safety. We place a major emphasis on HALT or Highly Accelerated Life Testing. We want to know up front how long a product will last, what possible weaknesses lead to “point of failure,” and what we can do to extend that product’s useful life. Our laboratories not only “shake, rattle and roll” our products, but also subject them to extreme tests in temperature, humidity and voltage. Basically, we test them until they break. Th en we determine the issues and redesign.

For example, a major tire manufacturer was frequently replacing servo motors (motors used for precise positioning) in a particular application. Investigation revealed the application subjected the motor to a signifi cant shock every 30 seconds, well beyond the motor rating. Using HALT testing, Rockwell Automation engineers simulated this extreme condition and identifi ed changes necessary to meet the application requirements. Th e result was not only a new motor that worked in the demanding application, but a more robust design for all customers.

Award-winning Support for our CustomersOur commitment to customer satisfaction continues long aft er our products leave our facilities. Award-winning support teams are available by phone, by web and in local fi eld offi ces. All fi ve of our worldwide Technical Support Centers are certifi ed under the Support Center Practices (SCP) program, an internationally recognized standard created by the Service & Support Professionals Association

QUALITY POLICYRockwell Automation is committed to a global quality system

focused on customer solutions. We achieve this through

superior products and services, rapid customer support,

technical expertise, supplier partnerships, and industry

leadership. Our quality and business objectives are designed

to challenge the organization through continual improvement,

innovation, and a passion for results.

ABOUT OUR QUALITY POLICYAt Rockwell Automation our focus is on customer solutions– Enhanced customer satisfaction– Rapid customer support

We establish quality and business objectives

that show our commitment to Quality through– Production of superior products and services– Industry leadership– Compliance with the requirements of our

Quality Management System

We ensure continual improvement by – Establishing and reviewing quality objectives– Measuring the effectiveness of our

Quality Management System

OURCORNERSTONES OF QUALITY

People

ManagementLeadership

QualitySystem

Information& Analysis

CustomerFocus

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our commitment to customer satisfaction continues long after our products leave our facilities

and a consortium of high-tech companies. Rockwell Automation was the fi rst company exclusively focused on automation to achieve SCP certifi cation. Each of our centers has been certifi ed for three or more years with our Cleveland, Ohio facility in its eighth year of certifi cation.

New in 2006 is an automatic escalation process that helps assure the right support individuals are involved with the appropriate sense of urgency. If a call can’t be resolved in a fi xed amount of time, then that call is automatically “bumped” to the next supervisor and so on until the issue is resolved.

Th is new call escalation process responds to an opportunity our customers identifi ed as an area for improvement. We conduct annual customer satisfaction surveys to measure what is most important to our customers and if we’re meeting expectations. Th e survey addresses 20 attributes and the fi ndings are widely discussed, distributed and acted upon within the company. Even though product quality and reliability remain top attributes, we know we can do better as we pursue continuously improving quality and service.

Perhaps there is no better indicator of meeting your customers’ expectations and loyalty than when customers recommend your products and services to someone they know. In recommending you, they are putting their reputation on the line. Our 2004 Customer Satisfaction Survey included the question Would you recommend Rockwell Automation to others? Among our end-customers, 97 percent said yes. We are hard at work on the remaining 3 percent.

CHOOSING THE BEST AVAILABLE SUPPLIERSAs a customer, we want to make sure we have the best available base of suppliers to choose from. Th at’s why a diverse supplier base is so important. Adding diverse suppliers gives us access to additional sources of experience and expertise, while producing healthy competition and contributing to the economic growth of the communities where we do business.

With a diverse supply chain we’re meeting more suppliers like Production Stamping Corporation, a Milwaukee, Wisconsin-based African-American fi rm to which we awarded a contract for metal stamping parts in early 2006 and will be our supplier of choice for more than a dozen parts.

Production Stamping Corporation is our supplier of choice for more than a dozen parts. Our spend with African-American suppliers jumped from $49 thousand in 2004 to $4 million currently.

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Our aggressive pursuit of a diverse supplier base is producing signifi cant results. We have increased our minority business spend from $8 million in 2004 to an expected $25 million by year-end 2006. Of that, our spend with African-American businesses jumped from $49 thousand in 2004 to $4 million currently and our Small Disadvantaged spend increased from $150 thousand to $4.2 million over the same time frame. Our women-owned spend has dropped in the past two years, the result of one of our women-owned suppliers selling her business. We are working hard to fi nd new women-owned suppliers.

Our goal is to increase our overall minority business spend by 0.5 percentage points of our total supplier spend each year by proactively fi nding diverse suppliers to add to our preferred vendors lists for both direct and indirect purchases. Th at means for 2006 our goal, which we have already exceeded, is at least a $4 million increase.

We want to make sure that every preferred supplier list for the commodity materials that go into our products, our “direct spend”, has a qualifi ed MBE (Minority Business Enterprise) supplier. Some of our new 2005 direct spend MBE awards included Sigma Electric Manufacturing Corporation for cast lugs, Access Electronics, Inc. for cable assemblies and Custom Magnetics, Inc. for magnetics.

Additionally, we see huge potential for increasing our “indirect” purchases on such needs as engineering, travel, insurance and others. In 2005, our new indirect spend suppliers included Faison Offi ce Products Company for offi ce supplies, and Amin and Turocy LLP for legal services. We also added new suppliers for such needs as leasing, payroll and staffi ng.

Supplier Diversity Ambassadors Key to our SuccessOur growing Supplier Diversity Ambassador program is what drives our progress. In each of our major U.S. facilities, one to two employees volunteer to serve as ambassadors. Th ey participate in Regional Minority Councils, provide supplier mentoring, attend local minority trade fairs and educate colleagues on diversity issues.

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2004 *20062005

2004 *20062005

2004 *20062005

African-American

*Projected

Hispanic American

Native American

Total

Asian-Pacific American

Asian-Indian American $4.5$3.4$1.9

$5.1$3.6 $3.6

$3.1$3.0$0.7

$8M(0.8%)

$16M(1.5%)

$25M(2.5%)

$2.5$2.2 $2.9

$10.0$3.3

In millions

MINORITY BUSINESS SPEND

U.S. MANUFACTURINGCOMPANY AVERAGE — 1.7%

We also sponsor major events such as the 2005 United States Hispanic Chamber of Commerce Convention. Th at’s where we met one of our new machining suppliers, Manufacturing Outsourcing Services, a Hispanic-American fi rm located in Nogales, Arizona.

We believe our Supplier Diversity Program can be a competitive diff erentiator for us as our customers strive to meet their internal diversity goals. We meet with customers, such as major pharmaceutical, beverage and automotive companies, to better understand their requirements and report regularly on our progress. And, as a commercial supplier to the United States government, we work closely with regional Small Business Administration offi ces to meet small business spending goals.

In turn, we encourage our prime suppliers to develop a supplier diversity process and to report their progress to us through our formal Tier II supplier diversity reporting program, which we will fully implement this year.

Our supplier diversity eff orts have been recognized by numerous organizations including regional business councils, chambers of commerce and the Institute for Supply Management, which in 2005 awarded Rockwell Automation the ISM Principles of Social Responsibility Award.

TRUST IN EVERY TRANSACTIONIt is critical that our suppliers, customers, employees, and investors trust us. Th ey should, because honesty, fairness, quality and responsiveness are our guiding principles; and integrity is an underlying value in every business transaction. Our commitment to responsible business practices is absolute. We require our employees, offi cers and directors to behave with integrity in all interactions with all of our stakeholders.

Rockwell Automation was one of the fi rst companies to develop a formal ethics program – we did it back in the 1980’s. In fact, ours was a model others followed. What quite frankly began as an aerospace and defense contractor’s reaction to government concerns became ensconced as part of our company culture, and that culture remains even though we have long since exited the aerospace and defense industries.

Th e core of our ethics program is our Standards of Business Conduct and Confl icts of Interest policies. Each employee, whether in Milwaukee, Milan or Beijing, must certify annually that he or she has no knowledge of any undisclosed ethics or confl ict of interest violation. Each employee must also complete an annual training course on these policies. Th is fact-based scenario training is updated each year to refl ect current business issues employees may face. In addition to this annual training, every new employee receives similar instruction. We surveyed our employees this year about the training to gather feedback so we can continue to improve the program.

Employees can report concerns about actual or potential Standards of Business Conduct violations to our Ombudsman by a toll-free “hot line”, e-mail, or letter, and can request to remain anonymous. Th e Ombudsman investigates all concerns that he is not able to resolve to the employee’s satisfaction even if the employee does not allege a standards violation. He also acts as a source of advice and information for employees.

Rockwell Automation was one of the fi rst companies to develop a formal ethics program back in the 1980’s

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Our Business Standards Compliance Committee meets quarterly to review all reports of violations of the company’s Standards of Business Conduct that are reported either to the Ombudsman or directly to the Committee by managers who are required by company policy to report all actual or suspected standards violations. Th e Ombudsman also reports to the company’s Board of Directors Audit Committee at each of their meetings about any signifi cant standards issues.

At the Board level, Rockwell Automation’s Corporate Governance program is ranked among the best. As of July 1, 2005, our overall Governance Metrics International (GMI) rating was a nine out of a possible ten and we received a ten in the Financial Disclosure and Internal Controls categories. Our Institutional Shareholder Services Corporate Governance Quotient as of April 1, 2006 was better than 85 percent of S&P 500 companies and 98 percent of Capital Goods companies.

With the exception of Keith Nosbusch, Chairman and Chief Executive Offi cer of the company, and Don Davis, former Chairman and CEO, we have an independent Board of Directors. Our four standing Board committees consist solely of independent directors. Each of our directors has a stock ownership requirement. As such, their interests are aligned with those of all shareowners.

Th e Board Composition and Governance Committee is responsible for considering and recommending to the Board qualifi ed candidates for election as directors and to review corporate governance matters. Th e Committee annually evaluates and reports to the Board on the performance of the Board of Directors. You can fi nd more information about our Corporate Governance guidelines and related topics on our web site at http://www.rockwellautomation.com/investors/corpgov.html.

Taking a Holistic Approach to ComplianceRockwell Automation strives for excellence in meeting or exceeding all areas of regulatory compliance, including how we deal with our employees, how we make and sell our products, and how we account for our profi ts. It’s more than following rules; it’s about doing what is right. In early 2005, we created a Global Compliance organization and appointed a Compliance Offi cer to take a more holistic and integrated view of the company’s compliance eff orts. Th e Global Compliance Offi cer is responsible for implementing consistent compliance standards and metrics; communication, training and documentation; and best practices across the company.

One of the fi rst accomplishments of this organization was to create a Global Compliance Metrics Dashboard to monitor and report quarterly on our compliance with regulations concerning environment, safety, ethics, labor and employment, securities law, import/export, antitrust and Foreign Corrupt Practices Act. Measuring these regulatory compliance metrics provides early indicators of any compliance issues that may need attention. Performance goals, internal audits and employee training are also critical elements of our compliance strategy and we’ll review progress in some specifi c areas later in this report.

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it’s more than following rules; it’s about doing what is right

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SOCIAL RESPONSIBILITY PRINCIPLES OF ROCKWELL AUTOMATIONPREAMBLERockwell Automation embraces its social responsibility; we are convinced that social responsibility is an important factor for the long-term success of our company. Heeding this responsibility, however, requires that we be competitive and remain so in the long-term. The following principles have been implemented by Rockwell Automation worldwide. In establishing them, we have taken into account diversity in culture and social values.

HUMAN RIGHTS Rockwell Automation respects and supports the dignity of all workers and compliance with internationally accepted human rights.

FORCED LABORRockwell Automation condemns all forms of forced and compulsory labor.

CHILD LABORRockwell Automation supports the effective abolition of exploitative child labor. Children must not be inhibited in their development; their health and safety must not be adversely affected; and their dignity must be respected.

EQUAL EMPLOYMENT OPPORTUNITIESRockwell Automation undertakes to uphold equal employment opportunities and to refrain from employment discrimination in any form unless national law expressly provides for selection according to specifi c criteria. Employment discrimination based on gender, race, disability, national origin, religion, age or sexual orientation is not acceptable.

SEXUAL HARASSMENTRockwell Automation does not allow behavior, including gestures, language and physical contact, that is sexually coercive, threatening, abusive or exploitative.

ETHICSIt is the policy of Rockwell Automation, as set forth in detail in Corporate Policy A-08, “Standards of Business Conduct”, to conduct its business in accordance with all applicable laws of the jurisdictions in which the Company operates and in accordance with ethical standards of business conduct. In particular, Rockwell Automation policy prohibits bribes, kickbacks or other illegal payments. Rockwell Automation maintains a vigorous and effective ethics program.

RELATIONS WITH EMPLOYEESRockwell Automation acknowledges the right of its employees to form trade unions and to bargain collectively, subject to national statutory regulations and existing agreements. Groups of employees may communicate with management even in those countries in which freedom of association is not protected by law. Rockwell Automation will deal with employees, employee representatives and trade unions constructively. Even where there is disagreement, we will always aim to work out a solution that permits constructive cooperation in the long term.

WORKING CONDITIONSRockwell Automation opposes all exploitative working conditions. Workers should be able to communicate with management about working conditions without fear of reprisal, intimidation or harassment.

PROTECTION OF HEALTHRockwell Automation is committed to demonstrating the highest standards of Safety and Health Management. We believe that these are core values and an integral part of all operations. Rockwell Automation ensures health and safety at the workplace to a level no less than required by national legislation and supports the continuous improvement of working conditions. In particular, Rockwell Automation has procedures and systems in place to manage, track and report occupational injury and illness, to provide necessary medical treatment, to investigate cases and implement corrective actions to eliminate their causes, and to facilitate the return of workers to work.

COMPENSATIONRockwell Automation is committed to compensating our employees in each job market so that they can, at a minimum, meet their basic needs, and ensures that it meets all legally established minimum wage requirements.

WORKING HOURSRockwell Automation ensures that it meets all legally established national provisions and agreements regarding working hours.

TRAINING Rockwell Automation supports training of employees with the aim of good performance and high quality work.

DISCIPLINARY PRACTICESRockwell Automation prohibits the use of corporal punishment, mental or physical coercion, and verbal abuse.

THE ENVIRONMENTRockwell Automation is committed to demonstrating the highest standard of Global Environmental, Safety and Health Management. We believe that these are core values and an integral part of all operations. Our policy is to demonstrate leadership and go beyond strict regulatory compliance by acting in the best interest of the communities in which we live and work while exhibiting environmental stewardship. We are committed to the continual improvement of our environmental management system and performance including resource conservation and pollution prevention. In particular, it is the policy of Rockwell Automation to comply with all applicable environment, safety and health regulations; where regulations do not exist, or are not protective, facilities will follow standards based on United States models.

FAIR COMPETITIONHonesty and fairness have always been guiding principles at Rockwell Automation, and integrity an underlying value in all our business transactions. These principles are set forth in detail in Rockwell Automation Corporate Policy A-08, “Standards of Business Conduct.” In particular, Rockwell Automation is committed to respecting intellectual and other property rights, and to not offering, paying or accepting bribes.

COMMUNITY & CHARITABLE ACTIVITIESRockwell Automation embraces its long tradition of giving to the communities in which we work and live. Our Company makes contributions to numerous civic and charitable organizations, and encourages our employees to become involved in such organizations.

SUPPLIERSRockwell Automation supports and encourages its suppliers to introduce and implement equivalent principles in their own companies. Rockwell Automation regards the above as a favorable basis for enduring business relations.

IMPLEMENTATION PROCEDUREThese principles are binding upon Rockwell Automation throughout the world. These principles will be implemented and enforced pursuant to the Implementing Procedure of Corporate Policy A-08, “Standards of Business Conduct.” These principles will be made available to all employees and their representatives in an appropriate form. The senior managers of each business are responsible, along with the Company’s Business Standards Compliance Committee for ensuring compliance with these principles; they will take appropriate measures in respect of implementation. Business partners, customers and employees can utilize the same mechanisms for bringing concerns implicating these principles to the attention of the Company as set forth in Corporate Policy A-08 for concerns regarding the Company’s standards of business conduct. As stated in Corporate Policy A-08, any complaint brought to the Company’s attention shall not result in adverse consequences for the complainant. Corporate Audit will examine compliance with these principles in its reviews and will include them in the audit criteria. In addition, the Company’s Ombudsman’s Offi ce, which has already established a general open line, shall accept allegations of non-compliance with these principles as well as allegations of other conduct that violates the Company’s standards of business conduct. The Ombudsman’s Offi ce will report any violations of these principles and the actions taken to correct any such violations to the Company’s Business Standards Compliance Committee, which will review whether the responsive actions taken were appropriate.

An Employer of Choice

CREATING A CULTURE OF INCLUSION

Rockwell Automation’s richest resource is our diverse and talented work force, made up of over 21,000 employees in 80 countries around the globe. Cultivating an inclusive environment that respects and encourages diverse views and ideas does more than create a supportive and rewarding workplace – it is vital to our company’s success. Simply put, more ideas mean more possible solutions, for our company and our customers. Proactive initiatives that began in the 1970’s as compliance-driven have evolved to a global strategy. We call it our Culture of Inclusion.

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A Culture of Inclusion is a work environment that values and promotes diversity and allows everyone – regardless of background, nationality, beliefs, race, age or gender – to contribute to the company while growing personally and professionally.

Creating a Culture of Inclusion didn’t just develop as a human resources strategy. It is a business strategy necessary for a company that wants to earn half of its revenues outside of the U.S. To be successful for our customers, we need to have the right people, with the right skills, in the right places, at the right times. Building a strong, committed workforce is critical for ensuring outstanding leadership in an increasingly competitive global marketplace.

Women, U.S. minorities and non-U.S. citizens make up 13 percent of our corporate offi cers and 24 percent of our senior executives. We expect these percentages to grow as we continue to build our global workforce and cultivate an inclusive environment. We are focused on the essential requirements for developing a successful, diverse workforce including:

• A strong leadership committed to diversity and held accountable for results • Th e drive to attract and retain the most qualifi ed workforce in our industry by fully tapping into all sources of talent • An environment and culture where all employees can contribute to the success of our business

Each year we set meaningful, proactive goals. We monitor progress through quarterly reporting, semi-annual reviews, self-assessments and peer reviews. On a yearly basis, we present a diversity management review to our Board of Directors, which plays a key role in holding management accountable for improving our diversity results. We take corrective action if we appear off track. We continuously analyze our data and identify emerging opportunities to fi ne-tune our recruitment, selection and retention eff orts.

Efforts Focus on Recruitment and RetentionWe believe building a diverse workforce starts at entry-level positions and have met or exceeded company goals for hiring qualifi ed women and minorities at colleges and universities. Th is strategy, implemented through a dedicated University Relations program, helps build a pipeline of diverse talent who will develop into future leaders. We’ve identifi ed a group of highly-regarded schools that produce graduates with the talent necessary to meet our business needs. We assign employees as Campus Executives and Managers who spend between 40 to 60 hours a year as the primary liaisons with university leadership, diversity organizations and students.

2002 2003 2004 2005

2003 2004 2005

22,028 21,334 20,976 21,437

U.S.

Non - U.S.

Total

12.6 12.9 14Total

MINORITY (%)

Management

Professional

Other

5.7 5.6 6.5

9.5 9.8 10.8

18.3 19 20.5

2003 2004 2005

31.9 31.9 31Total

FEMALE (%)

Management 17.1 17.4 17.7

Professional 17.2 17.8 18

Other 41.7 40.8 38.9

7,046 6,825 6,938 7,737

14,982 14,509 14,038 13,700

TOTAL EMPLOYEES

U.S. RACE/GENDER REPRESENTATION

18

We are committed to including at least one qualifi ed woman and/or minority on every interview slate for externally-fi lled management, professional and sales positions as part of our Diverse Candidate Slate goal. We monitor recruitment sources for eff ectiveness and we continually seek the most viable ways to hire qualifi ed women and minorities. We also have proactive goals, which we have exceeded, for internally hiring and promoting minority and women employees into management positions. Metrics and regulatory agency feedback indicate our progress. In 2005, we received the Offi ce of Federal Contract Compliance’s letter of compliance for Corporate Management Review. Th is letter and action acknowledges our commitment to building a diverse workforce in management and feeder positions.

Retention eff orts are also a priority. With the U.S. Labor Department’s “quit rate” reaching a four-year high and 76 million Baby Boomers approaching retirement, employee retention has never been more important for today’s companies. For the past three years, we have studied the voluntary turnover of our professional, sales and management employees, including monitoring trends by race and gender.

We use an objective third-party organization to interview recently departed employees. We analyze the interview results to identify areas of concern, formulate programs and initiatives to address those issues, and evaluate the success of those programs by continuing to monitor data trends. Our turnover rates are lower than industry averages and we have found the reasons why minorities, women and

non-minorities leave the company are all basically the same. By continuing to better understand why our employees leave the company we can identify opportunities to improve our retention eff orts.

Networking Around the World“Employee networks” are an important and eff ective strategy to promote employee involvement, retention and career advancement. Th ese are voluntary groups organized around a particular shared interest or dimension of members such as ethnicity or gender.

Our employee networks in the U.S. continue to expand and now include the Advance – Young Professionals, African American Professional Network, Hispanic Resource Group and the Professional Women’s Council. Th rough these groups, members network and mentor others, share information, and promote cultural awareness throughout the company.

On a global scale, we off er employees international rotations that place them in a hands-on, immersed environment. Th ey learn how to adapt their skills and style to our customers’ geographic markets, business practices and social customs. We hold Global Universities where colleagues and customers from another region share perspectives and needs. Our GlobeSmart web tool, introduced in 2000, was cited in the 2005 Catalyst Member Benchmarking Report as a best practice for promoting global diversity. Th is website provides employees with information on cultures in more than 80 countries. One of its features, Peer Notes, provides employees access to experiences documented by their colleagues who’ve traveled on international assignments.

Employee networks provide networking and mentoring opportunities

19

We have proactive goals for internally hiring and promoting minority and women employees into management positions

Rockwell Automation’s capabilities may be global, but our customer support and work environments must be local, respecting the culture and business practices of our geographic markets.

PROFESSIONAL DEVELOPMENT NEVER ENDSProviding an environment where employees can develop and grow personally and professionally is critical to attracting, developing and retaining highly-skilled people and building world-class leadership talent. To do that, we recognize that development is an ongoing process and we have to encourage continuous learning at all levels of the company. We off er many tools and programs tailored to employee needs at diff erent stages of their career from sales trainee to leadership development programs.

Employees create annual professional skills development plans specifi c to their individual and company goals so their career growth is closely related to company growth, and they get the tools and instruction needed to make them successful.Our career development website provides tools and guidance for self-directed career growth. Using our Virtual Learning Center, employees can identify competencies critical to each position in the company and select from over 400 courses to design a personal learning curriculum for developing essential skills. Each of our business units also has business-specifi c training programs. And, we provide off -site learning opportunities and tuition reimbursement.

In 2005, we introduced our Personal Leadership Eff ectiveness training program designed to foster the cultural behaviors needed in a customer-driven organization like ours – such as a relentless pursuit of excellence, innovation and speed. To date, nearly 10,000 employees have completed the program, which includes classes on such topics as Risk Taking and Decision Analysis, and Optimizing Performance During Change.

Our Rockwell Automation Leadership Institute is a global program that has expanded from a sole focus on experienced high-potential employees to one that now includes teaching leadership skills to early career managers and supervisors. Recognizing that technical and operational skills may develop faster earlier in employees’ careers, our programs for newer managers and supervisors emphasize interpersonal and organizational skills.

Rockwell Automation offers training programs worldwide for employees at all stages of their career from entry level to executive

20

We held 16 Leadership Institute programs worldwide with a total of 375 participants in 2005. Th ese programs last from four days to two weeks, and our programs for experienced and senior managers include world class faculty selected from leading organizations and educational institutions. We are expanding the number of programs and locations in 2006.

With employees ultimately driving the success of our company, we want our employees to realize that their development as professionals and as leaders never ends. Th e employees who are fulfi lled and challenged by their work are those who engage in life-long learning.

PROTECTING OUR MOST VALUED RESOURCE, PEOPLEWhen employees are your most important resource, their health and safety matters most. We operate all our locations in a manner that recognizes safety as fundamental to being the best place to work. Continuous improvement of our health and safety performance is an ongoing commitment. We implement best practices and set policies and procedures more demanding than regulations.

We have a comprehensive internal audit program and we report results to leadership quarterly as part of the company’s Global Compliance Metrics Dashboard. Th ese audits review safety policies, procedures, programs and systems; verify compliance with all laws and company policies and procedures; and note the application of management and engineering practices. In 2005, Rockwell Automation conducted 42 safety audits worldwide. We also received seven visits from safety regulatory agencies. At one U.S. site, we received a notice of violation of the U.S. Occupational Safety and Health Administration’s (OSHA) machine guarding standards and a $975 fi ne. We promptly resolved the issue.

We use three metrics to monitor and report our safety performance. Recordable Cases per 100

employees measures the number of work-related injuries and illnesses that required more than minor fi rst aid treatment, such as stitches, prescription medicine or physical therapy. We introduced this internal metric in 2003 so we can have better insight into the causes of both minor and severe incidents.

Lost Work Day Cases per 100 employees tracks those recordable incidents that resulted in an employee losing a full day of work aft er the initial day of injury. Lost Work Days per 100 employees is the actual number of days employees are away from work and measures the severity of workplace injuries and illnesses. We measure all three metrics on a rolling 12-month average.

As of December 31, 2005, Rockwell Automation worldwide safety performance was 1.57 recordable cases and 0.26 lost work day cases per 100 employees. Th e lost work day rate was 4.19, staying within our 5.0 goal. Th ese are outstanding accomplishments considering the signifi cant increase in business the company had during 2005. So while our manufacturing and customer demands increased, our safety incidents did not.

Our internal safety recordkeeping criteria are based on OSHA guidelines for injury and illness reporting. Our recordkeeping requirements vary slightly as they are designed to refl ect the needs of a corporation operating globally. International injury and illness recordkeeping diff ers dramatically across cultures, and by using these metrics, we level the requirements across our facilities.

Local and state organizations have recognized many of our locations for their outstanding safety performance. Th e North Carolina Department of Labor has recognized our plants in Asheville, Marion and Shelby for their safety achievements including awarding the Marion plant with its sixth consecutive Certifi cate of Safety Achievement. Th at plant has worked more than three years without a lost-time incident.

21

SAFETY POLICYRockwell Automation is committed to complying with safety regulations and to

demonstrating the highest standard of occupational safety and health performance.

The safety and health of our employees is a primary business and employee

concern and is managed in conjunction with production, development, quality,

environment and distribution of our products and services. Safety is an integral

part of our operations and is the responsibility of all employees. We establish

and monitor safety objectives and targets to drive continual improvement.

22

2003

2004

2005

1.5

ACTUAL GOAL

ACTUAL GOAL

ACTUAL GOAL

0.00

2.00

4.00

1.571.762.21

2001

2002

2003

2004

2005

5.0

0

5

10

6.35 4.88 7.83 8.81 4.19

2001

2002

2003

2004

2005

0.5

0.00

0.20

0.40

0.60

.26.28.38

.31.27

RECORDABLE CASESPER 100 EMPLOYEES

LOST WORK DAY CASESPER 100 EMPLOYEES

LOST WORK DAYSPER 100 EMPLOYEES

FY05 ROCKWELL AUTOMATION SAFETY PERFORMANCEWhile manufacturing and customer demands increased in 2005, our safety incidents did not.

Th e Asheville plant received its third consecutive Certifi cate of Safety Achievement. And, our Gainesville, Georgia plant received the state’s Award of Excellence for the fi ft h year in a row. Th at plant has worked three million hours without a lost-time incident.

Th e Greater Cleveland Safety Council gave our Twinsburg, Ohio facility fi ve safety awards for its local safety council participation and safety performance. Th e Ohio Bureau of Workers’ Compensation recognized our Warrensville Heights, Ohio facility for working at least 500,000 hours without a lost work day incident and having no lost work days during 2005. And, all four of our Wisconsin plants – Ladysmith, Mequon, Milwaukee and Richland Center – were recognized by the Wisconsin Safety Council for excellent safety performance as demonstrated by exceptionally low injury rates.

Seven of our facilities have also achieved OHSAS 18000 (Occupational Health and Safety Assessment Series) certifi cation. OSHAS certifi cation is modeled aft er the success of the ISO quality and environmental standards programs and means a facility meets a series of exceptional safety management standards. Of these sites, our Dublin, Georgia location is also certifi ed by the OSHA Voluntary Protection Program at the Star level.

Eff ective safety programs do more than protect our employees. An accident-free workplace increases productivity and reduces costs. Over the past fi ve years we’ve signifi cantly reduced our workers’ compensations costs and claims. In 2001, Rockwell Automation reached a milestone with 975 workers compensation claims. Th is was the fi rst time in recent history that we had fewer than 1,000 workers compensation claims in a fi scal year. By 2005 the number of workers compensation claims decreased to 426.

Employee Involvement Fundamental to a Safe WorkplaceOur senior executives provide strong support and leadership for safety programs with managers and employees actively involved in program development, hazard assessments, communications, inspections, training and incident investigations. Employee awareness, ownership and involvement are critical to safety performance. In addition to extensive online and classroom training, we update and continuously educate employees through e-mail, informal employee meetings, internal web sites, newsletters and safety bulletins.

Many of our facilities worldwide have active safety committees that include management and employee representatives. Th ese committees perform incident

23

A number of Rockwell Automation facilities offer wellness programs

An accident-free workplace increases productivity and reduces costs

investigations, address issues brought to their attention by employees, inspect work areas and conduct safety awareness displays.

Employee wellness and injury prevention programs contribute to our improving safety performance. Employees at all levels of the organization, whether sitting at a desk or standing at a machine, receive ergonomics training, while individual facilities conduct factory and offi ce work site evaluations.

Our post-off er fi tness screening process is expanding to more facilities. Th is screening ensures new hires and internal transferees are physically capable of performing the work required and that they don’t have any health conditions that put them at risk. Finally, a number of our facilities off er wellness programs.

Outside of the company, many of our site safety coordinators participate in safety leadership roles in their communities. For example, our Mayfi eld Heights, Ohio site coordinator is president of the Greater Cleveland Safety Council and a member of the local government’s Emergency Planning Advisory Board. Our Chelmsford, Massachusetts site coordinator is an active member of the Massachusetts Safety Council, and the site coordinator at our Shelby, North Carolina plant serves on the board of the Blue Ridge Safety Council.

As a result of ongoing ergonomic evaluations, we replaced facility drivers with pulsed drivers or we added torque

reaction bars to lower the amount of torque reaction or force Milwaukee employees experienced when using

powered screwdrivers

24

A Neighbor of Choice

PROMOTING ENVIRONMENTAL STEWARDSHIP WHILE GROWING OUR BUSINESS

To be “A Neighbor of Choice” in the communities where we live and work, we act in the best interests of these communities, especially when it comes to protecting the environment.

25

We approach our environmental commitment in the same manner we approach safety. We relentlessly strive to be a proactive leader in environmental management and go beyond rules and regulations.

We look for opportunities to continually improve our environmental management system and performance, including conserving resources and preventing pollution.

Our eff orts center on: • Reducing, minimizing or eliminating waste generation and the release of potentially hazardous materials to the environment; • Preventing negative environmental impacts from company operations; and • Making environmental concerns and resource conservation priority considerations when evaluating new and existing products, process changes, material purchases, business acquisitions and divestitures, and land use decisions

We distribute our Environmental Policy to our employees worldwide in multiple languages and update it as needed.

When the ISO 14001 specifi cation, an international standard for environmental management, was introduced in 1996, we quickly became an industry leader in certifi cation. Today, we have 32 facilities certifi ed under the ISO 14001 standard.

Just as we do with safety, we set annual performance goals and have a comprehensive internal audit program. We report our results to management quarterly. In 2005, we conducted 32 environmental audits. Additionally, we had six inspections by environmental regulatory agencies. We received two notices of violation (NOV) at two U.S. sites. At one site, the NOV was for lower wastewater effl uent pH levels than allowed by the facility’s permit. At the second site, we received a letter of non-compliance for hazardous waste

container infractions. We promptly fi xed these issues.

To measure our environmental performance, our metrics are normalized to total sales, which for fi scal 2005 were $5,003 million, up 13 percent compared to $4,411 million in fi scal 2004. By normalizing our data to sales, we have a consistent benchmark to compare our progress from year to year. For example, for electricity usage, we compare the number of megawatt-hours used per unit of total sales.

Energy conservation is a global practice at Rockwell Automation. Since 2001, our goal has been to reduce energy-related environmental impacts. We focus on reducing energy consumption, installing energy-saving equipment and improving manufacturing processes. Our annual goal is to reduce normalized natural resource consumption – natural gas, liquid fuel and electricity – by 3 percent. We were shy of our liquid fuel goal, reducing use by 2 percent in 2005, but signifi cantly reduced our natural gas and electricity usage by 12 percent, as compared to 2004. While our business had outstanding growth last year resulting in increased production, we used fewer natural resources when normalized to sales. Our actual raw usage of

ENVIRONMENTAL POLICY

Rockwell Automation is

committed to demonstrating

the highest standard

of global environmental

management. Our policy is

to go beyond strict regulatory

compliance and to act in the

interest of the communities in

which we live and work.

We are committed to the

continual improvement

of our environmental

management system

and performance, including

resource conservation and

pollution prevention.

We relentlessly strive

to be the best in all aspects

of environmental management

by fostering a culture of trust,

teamwork, accountability,

partnership and communication

with employees, suppliers,

customers and

outside organizations.

26

FY05 ROCKWELL AUTOMATION ENVIRONMENTAL PERFORMANCEOur metrics are normalized to total sales so we have a consistent benchmark to compare our progress from year to year.

27

2000 2001 2002 2003 2004 2005

2000 2001 2002 2003 2004 2005

Carbon Dioxide(1,000 tons)

278 266 253 250 263 257

2000 2001 2002 2003 2004 2005

In Tons

Liquid Fuels (1,000 gal)

Natural Gas (MMCF)

Electricity2 (MWh)

317

286 309

282243 269

38,945 35,360 34,452 49,54849,620

314

345343

313311

343

257

384

325

434425

312

42,457

SOLID WASTE

INDIRECT CO2

ENERGY USAGE

Energy conservation is a global practice at Rockwell Automation

We recycled or reclaimed 87 percent of our solid waste

Rockwell Automation manufacturing processes do not directly generate Carbon Dioxide emissions

electricity and natural gas held steady, while we had a small increase in liquid fuel use.

Increased business activity led to an increase in solid waste generation aft er a decline for the previous fi ve years. Included in this volume are non-manufacturing related wastes from building and construction activities. But we recycled or reclaimed 87 percent of our solid waste and sent only 10 percent to landfi lls compared to 12 percent the year before. We actively look for opportunities to recover, recycle and reuse both materials and energy. Our hazardous waste generation, which includes cleaning wipes, aerosol cans, batteries, and metal-containing materials, decreased slightly when normalized to sales. We either recycled or incinerated, which eliminates the toxic/hazardous characteristics of the material, nearly 60 percent of that waste.Carbon dioxide emissions, more commonly known as greenhouse gas emissions, are frequently

mentioned in the media. Rockwell Automation’s manufacturing processes do not generate these kinds of emissions. Typically, carbon dioxide generation takes place at utilities, so we measure “Indirect Carbon Dioxide Emissions.” Th is tells us the level of emissions resulting from our energy usage. As we reduce energy consumption, we indirectly reduce the level of carbon dioxide emissions. In 2005, our indirect carbon dioxide emissions resulting from energy consumption decreased 14 percent when normalized to total sales.

Tracking how companies manage chemicals used in their business processes is another method to monitor environmental impact. Th e United States Environmental Protection Agency’s (USEPA) Toxic Release Inventory (TRI) program collects information on more than 650 chemicals that are being used, manufactured, treated, transported or

released into the environment. USEPA compiles this data in an on-line, publicly accessible national computerized database. Businesses and individuals use this information to monitor air emissions, surface water discharges, releases to land, underground injections and transfers to off -site locations.

We use TRI data to monitor chemical use and make informed decisions about chemical management practices. Many of the chemicals we use requiring TRI data reporting are metals such as nickel, copper and lead. In 2005, we recycled more than 98 percent of the 1.3 million pounds of reportable TRI chemicals we generated. For the past fi ve years, we have recycled nearly 100 percent of our TRI reportable chemicals. Th at means more than 5 million pounds of hazardous materials were kept out of landfi lls and from being released into the environment.

Full Compliance with New European DirectivesIn Europe, new environmental regulations took eff ect July 1, 2006 regarding the use of certain hazardous substances in electrical and electronic equipment sold in the region. Rockwell Automation products falling within the scope of the Restriction of Hazardous Substances (RoHS) Directive are fully compliant. Th ese include computer products such as industrial computers, monitors, and accessories. In keeping with our commitment to go beyond compliance, we are changing the materials composition of other products that fall outside the scope of RoHS, and bringing these products into voluntary compliance with the Directive.

We are also fully compliant with the European Waste Electronic and Electrical Equipment (WEEE) Directive. WEEE requires manufacturers to provide environmentally sound options for disposing certain electrical and electronic products. For us, this means we have a collection and recycling process for computer products such as industrial computers, monitors and accessories, and some portable instruments used for data entry/retrieval and program storage.

28

5 million pounds of hazardous materials were kept out of landfi lls

Operating Responsibly Through the Life Cycle of Our Facilities Rockwell Automation works incessantly to act responsibly through the life cycle of each of our facilities. Like many other industries, we face the challenges of legacy sites that may have operated to the legal standards and industrial principles of the time, but do not meet today’s expectations or regulations. Our environmental management experts are bringing these historic sites to full compliance and closure in a timely fashion, even at those sites where our activities were not the cause of the issues. We use the most appropriate technologies available and conduct our remediation work in a timely and eff ective manner. For example, we are engaged in extensive remediation activities at a plant site in Russellville, Kentucky that was operated by a former business before we divested it in 1989.

Today, we fully evaluate the potential environmental impacts of new facilities before construction. We perform due-diligence investigations to evaluate potential site risks before we acquire, divest or lease them. For existing facilities, our corporate environmental team advises business units on the best way to prevent and minimize environmental liabilities.

Leading by Example in Our CommunitiesWe are active in civic organizations that promote environmental stewardship, have been honored for our environmental eff orts, and lead and support many environmental education programs. Many of our employees participate in their community planting and clean up programs.

Our Manchester, New Hampshire plant received the 2005 Governor’s Award for Pollution Prevention. Th is distinction recognizes New Hampshire businesses and organizations that have successfully

reduced or eliminated wastes at the source. Th e plant was honored for a pollution prevention project that signifi cantly reduced the amounts of several chemicals it uses.

Th e Dublin, Georgia facility received the state’s Exceptional Environmental Achievement Award for its pollution reduction and prevention performance, and environmental improvement in manufacturing. Th e award recognizes the facility as a Pollution Prevention Partner with the state.

Our Brookhaven, New York facility conducted a used cell phone drive in an eff ort to keep phones out of landfi lls. Instead, the phones were provided to the elderly for calling 9-1-1. Brookhaven also started a recycling program for employees’ home “technotrash.” Items such as video and audio tapes, digital cameras, DVDs and others are collected and recycled into compact disc cases and formatted diskettes.

Our Marion, North Carolina plant supports the local elementary school system’s mobile science

classroom. And in Canada, we support the Canadian Peregrine Foundation’s Project School Visit program, which is designed to instill a

conservation ethic in Ontario children so they will grow up to

be concerned stewards of the environment.

In Stratford, Ontario, our plant partnered with local environmental organizations to naturalize a parcel of Rockwell Automation land to protect a wildlife habitat. Th e project will include 1200 native trees, fl owers and shrubs, and a walking trail for employees.

The Canadian Peregrine Foundation’s Project School Visit program is designed to instill a

conservation ethic in children

29

GIVING WITH PURPOSETh ere are two recurring messages throughout this report. First, many of the programs Rockwell Automation started years ago in thecourse of business are now viewed by most as corporate and social responsibility eff orts. Second, these programs have value beyond good citizenship. Th ey are good business practices that benefi t not only our stakeholders and communities, but also contribute to our company’s success.

Our corporate giving, administered through the Rockwell Automation Charitable Corporation, and volunteer eff orts exist for the same reasons. In 2005, we contributed more than $5.2 million worldwide in funds and in-kind donations to programs that improve our communities, create jobs, and educate our workforce and customer base of tomorrow. Traditionally we have invested in science, technology, engineering and math (STEM) programs, especially in grades K-12. As a committed, responsible neighbor, we support health and human service organizations, and arts education to enhance the quality of life in communities where our employees live and work. Our employees, in turn, generously donate time and expertise to help others succeed.

During the past 18 months we adopted a more strategic direction to our philanthropy to maximize success and better support the regions where our company is growing. As a global company, that has meant redirecting resources from the U.S. to other parts of the world. We also reduced our number of event sponsorships so we can increase direct support of non-profi t programming. Th ese funding shift s allowed us to increase our support of educational programs from 50 percent of our charitable giving in 2004 to 61 percent in 2005.

Education 61%

Civic 3%

Arts and Culture 8%

Health/Human Services 28%

Education 50%

Civic 5%

Arts and Culture 20%

Health/Human Services 25%

FY05 ROCKWELL AUTOMATION CHARITABLE GIVINGDuring 2005, we increased our support of education programs worldwide and started new efforts targeting middle schools.

30

CHARITABLEGIVING/

2004

CHARITABLEGIVING/

2005

Assessing Needs Brings Sharper Focus Our educational partnerships are designed to build an international pipeline of students who will eventually be candidates for our minority scholarships and advanced technology careers. In the U.S., we reviewed our current partnerships and identifi ed middle school programs as a gap. Studies show that grades six through eight are key years for students, particularly in determining how strong a background they will develop in technical fi elds. Solid preparations in science, technology, and math during these years can open doors to technical fi elds and well-paying careers – especially for young minority and female children – that would otherwise be closed.

Project Lead the Way (PLTW), a national program focused on preparing the future U.S. technical and engineering workforce is one of our new partnerships to meet middle school needs. PLTW has school programs in 38 states. Students participating in PLTW programs consistently score higher than their peers on national reading, science and math exams.

Working with the Milwaukee Public Schools, Rockwell Automation contributed nearly a half a million dollars to fund and develop a three-year program to support three middle schools for a PLTW pre-engineering program. Th ese schools have ongoing relationships with our existing partner high schools and more than 60 percent of their combined student population is Hispanic. We see this fi rst experience with PLTW as a model, and assuming

we see measurable success, we hope to expand this program to other communities where we have a signifi cant business presence.

We have also increased our involvement with FIRST (For Inspiration and Recognition of Science and Technology) by becoming a Platinum Sponsor of this multi-national non-profi t organization. FIRST operates the FIRST Robotics Competition in which teams of high school students sponsored and assisted by local companies and volunteers, design, assemble, and test a robot capable of performing a specifi ed task. In 2006, more than 28,000 students on more than 1,100 teams will participate in 33 regional events. Teams come from Brazil, Canada, Ecuador, Israel, Mexico, the United Kingdom, and almost every U.S. state. Th rough our involvement, we provide in-kind product donations and sponsor regional competitions and teams.

We also sponsor the FIRST LEGO League, considered the “little league” of the FIRST Robotics Competition, for children 9-14 years old. Many of our employees are volunteers for the FIRST programs.

Another new major educational eff ort for Rockwell Automation is our partnership with Discovery World at Pier Wisconsin, where we are donating $2.5 million in funds and in-kind contributions. We are helping to develop a permanent, interactive exhibit that will feature our controls, sensors, systems and engineering. Th e exhibit will support national, state and local education curriculum and profi ciency standards.

From grade school to university, today’s students are tomorrow’s

workforce and customer base

31

In the Asia Pacifi c region, the Ministry of Education in China presented a 2005 “Outstanding Contribution to Education Award” to Rockwell Automation in appreciation of our support of the development of Chinese education. Since 1998, we have provided fi nancial support, equipment, soft ware, scholarships and teaching awards to a number of Chinese universities as part of our University Partnership Program (UPP). Th e UPP aims to build and develop joint labs with leading Chinese universities to provide students with a real world industrial environment and practical hands-on experience.

In addition to providing fi nancial assistance to these universities, Rockwell Automation China provides numerous training and technical education events including a UPP-organized annual Summer Camp that allowed students to work fi rst-hand with advanced Rockwell Automation technology.

Th ere is a famous Chinese saying, “If you are thinking one year ahead, you plant rice; if you thinking ten years ahead, you plant trees; if you are thinking a hundred years ahead, you educate people.” With this in mind, more than 500 of our employees, as well as senior executives from the U.S., partnered with family members and students from the Jiu Long Model Primary School for their 2005 “Planting Trees, Developing People” event. Jui Long Model Primary School’s student population comes from poor families.

Rockwell Automation increased eff orts in India with the start of a new relationship with the PSG College of Technology, one of the foremost institutions founded by the PSG & Sons Charities Trust in 1926. Rockwell Automation Chairman and CEO

Keith Nosbusch toured the college in early 2006 and inaugurated their Integrated Architecture Lab, designed to serve as an education center of excellence teaching the latest in automation technologies.

While in India, Keith had the honor of representing the fi rst automation company to present to the Confederation of Indian Industries (CII) in Coimbatore. CII is a non-government, not-for-profi t, industry-managed organization helping to lead India’s development process.

Looking to South America, we partner with several Brazilian universities to off er industry education support ranging from establishing an on-site Rockwell Automation Training Center to assisting with course and text book development. As part of our partnership with University of Sao Paulo, the largest institution of higher education and research in Brazil, we provide technical training programs, a master’s degree sponsorship program and Ph.D. courses. And, in Europe we have relationships with more than a dozen universities including the University of Vienna, Austria; Technical University in Budapest, Hungary; and Czech Technical University in Prague. We provide these schools funds, build and upgrade labs, and donate equipment.

Keith Nosbusch and Scott Summerville, President Rockwell Automation Asia Pacifi c Region, open a new lab at India’s PSG College of Technology

32

Rockwell Automation provides training and technical education

Taking Care of Our CommunitiesTaking care of the basic needs of our communities is a priority for our company. Annually, we support over 20 United Way campaigns in the U.S. Around the world our employees give generously of their time. Each year we honor three employees with the Good Citizenship Award and donate $1,000 to the charity of their choice. Th is award recognizes the importance of volunteerism to communities.

Alessandro Oliveira works in our Sao Paulo, Brazil offi ce and for the past ten years has been volunteering more than 11 hours a week. He volunteers at Serviço Social Perseverança, which provides support to

children of no-income and low-income families who need healthcare assistance, recreation and education. Alessandro also contributes his time to NGO Amigos do Bem, an organization dedicated to reducing hunger throughout the northeast region of Brazil.

Brian Ashworth of Greenville, South Carolina volunteers for the South Carolina Special Olympics and Camp Hope, a camp for mentally challenged individuals. And, for 19 years, Neal Budahn of Milwaukee, Wisconsin, has volunteered for the Wilson Park Youth Baseball Association. Th is local organization teaches responsibility

and team work to young people ages 5 to 18 through a competitive baseball program.

Volunteer eff orts for some Rockwell Automation employees this past year took them far away from the comforts of home. As thousands were evacuating the U.S. Gulf Coast to escape Hurricane Katrina, Milwaukee’s Denise Bruneau was part of a caravan heading to the coast to set up shelter for those who would be aff ected by the deadly hurricane. Denise is a member of the Mass Care and Disaster Service Human Resources Team for the American Red Cross. When disaster strikes, the team provides shelter, food and physical and mental health services.

Denise went to Kiln, Mississippi, where she and two other volunteers were responsible for feeding nearly 400 evacuees at a local elementary school turned shelter. Th ere was no electricity, water or communications, and a storm delayed the food caravan. So Denise used whatever she could fi nd in the school’s cafeteria to feed everyone. She was on her feet from 5 a.m. until 1 a.m. every day with little rest or food.

Jeanne Pfeiff er, a Twinsburg, Ohio employee wanted to help immediately following the hurricane, but without rescue training, she was told she couldn’t

NGO Amigos do Bem, an organization dedicated to reducing hunger throughout the northeast region of Brazil, benefi ts from Rockwell Automation’s volunteer efforts

33

Kim Whitt is one of several employees that volunteered to travel

to hurricane-ravaged areas to provide support

go into the region. She got her training and traveled to an area near Biloxi, Mississippi, where she helped build two day care centers and several homes. In addition, she assisted people in fi nding fi rst aid, counseling, tutoring, and even food. At night, she had the same accommodations as many of the residents – a tent.

Kim Whitt of Akron, Ohio and his wife Janet are Red Cross volunteers. Aft er Katrina struck, Janet volunteered at the local phone bank. Kim registered for a program called Shelter Operation Mass Care. Following two weekends of training, Kim left for Birmingham, Alabama with Montgomery as his

fi nal destination. When he arrived in Birmingham, there were no hotels, no transportation and no contact person, so he hitched a ride to Montgomery. Th e next day he found the command center and was dispatched to Mobile where a local church became home for two weeks. Kim worked 20-hour days, providing food and clothing, coordinating mental health counseling and arranging housing.

Th ere was an outpouring of support from our employees for disaster recovery eff orts during the past 18 months. Employees donated over $100,000 of their own funds to hurricane relief eff orts.

Th e company matched those employee gift s with a $100,000 contribution, in addition to an earlier $250,000 donation made to the American Red Cross. We also contributed $250,000 to Tsunami relief eff orts in early 2005 and $50,000 for Pakistan earthquake disaster relief later in the year.

Our global community relations programs will continue to expand in the years ahead through proactive giving in the areas where we have a solid business base. At Rockwell Automation, we understand that “Giving with a Purpose” is the right thing to do for our employees, our communities and our business.

34

Milwaukee’s Denise Bruneau is a member of the Mass Care and Disaster Service Human Resources Team for the American Red Cross

Rockwell Automationemployees donated

over $100,000 of their own funds to disaster

recovery efforts

TELL US WHAT YOU THINKWe want to hear from you. Did you fi nd this report helpful? Do you feel you know us better? Did we provide too little or too much information? Complete the brief survey card inserted in this report or visit http://www.rockwellautomation.com/about_us/reportfeedback.html to complete the survey online. Your feedback will help us determine the content of future issues. In early 2007, we will publish a brief update to this report that provides 2006 metrics. Our plan is to then publish our next full Corporate Responsibility Report in 2008.

Rockwell Automation Corporate Responsibility At-a-Glance

35

Business• Commitment to corporate responsibility starts

with Board of Directors with board establishing a Social Responsibility Committee in 1976.

• We off er the most innovative, competitive and comprehensive product and service portfolio in the automation industry consisting principally of power, control and information solutions, and value-added services.

• Fiscal 2005 revenues were $5 billion with revenues outside the U.S. exceeding 38 percent of total sales.

• Goal is to earn 50 percent of revenues from sales outside the U.S. by 2010.

Quality• More than 67 of facilities companywide are ISO 9001-

certifi ed, the worldwide standard for quality.

• More than 95 percent of our products are manufactured in ISO 9001:2000 certifi ed facilities.

Supplier Diversity• Goal is to increase overall minority business spend by

0.5 percentage points of total supplier spend each year.

• Minority business spend increased from $8 million in 2004 to an expected $25 million by year-end 2006.

• We increased African-American and Small Disadvantaged spend, while women-owned spend dropped.

Ethics• One of the fi rst companies to develop a formal ethics

program back in the 1980’s.

• Core of ethics program is our Standards of Business Conduct and Confl icts of Interest policies.

• Business Standards Compliance Committee meets quarterly to review all reports of violations of the company’s Standards of Business Conduct.

• Ombudsman reports to the company’s Board of Director’s Audit Committee at each meeting about any signifi cant standards issues.

Governance• Corporate Governance program is ranked

among the best.

• As of July 1, 2005, overall Governance Metrics Interna-tional (GMI) rating was a nine out of a possible ten.

• Institutional Shareholder Services Corporate Governance Quotient as of April 1, 2006 was better than 85 percent of S&P 500 companies and 98 percent of Capital Goods companies.

Compliance• Global compliance offi cer leads Global

Compliance Organization.

• We use a Global Compliance Metrics Dashboard to monitor and report quarterly on compliance with regulations concerning environment, safety, ethics, labor and employment, securities law, import/export, antitrust and Foreign Corrupt Practices Act.

• Performance goals, internal audits and employee training are critical elements of compliance strategy.

“Rockwell Automation embraces its social responsibility; we are convinced that social responsibility is an important factor to the long-term success of our company.”

36

Employee• 21,000 employees in 80 countries around the globe.

• Women, U.S. minorities and non-U.S. citizens make up 13 percent of our corporate offi cers and 24 percent of senior executives.

• University Relations Program, Diverse Candidate Slates, and proactive goals for internally hiring and promoting minority and women employees into management positions are key diversity strategies.

• In 2005, we received the Offi ce of Federal Contract Compliance’s letter of compliance for Corporate Management Review.

• Turnover rates are lower than industry averages.

• GlobeSmart web tool was cited in the 2005 Catalyst Member Benchmarking Report as a best practice for promoting global diversity.

Safety• We conducted 42 internal safety audits worldwide.

• We have 7 sites certifi ed to the OHSAS 18000 standard.

• We use three metrics to monitor and report safety performance.

• As of December 31, 2005, worldwide safety performance was:

– Recordable case rate: 1.57 cases per 100 employees

– Lost work day case rate: 0.26 lost work day cases per 100 employees

– Lost work day rate: 4.19 days per 100 employees

• While manufacturing and customer demands increased, safety incidents did not.

Environment• We have 32 facilities certifi ed under the

ISO 14001 standard.

• We conducted 32 internal environmental audits.

• To measure environmental performance, metrics are normalized to total sales.

• Annual goal is to reduce normalized natural resource consumption – natural gas, liquid fuel and electricity – by 3 percent.

• We reduced liquid fuel by use by 2 percent, but signifi cantly reduced natural gas and electricity usage by 12 percent.

• Increased business activity led to an increase in solid waste generation aft er a decline for the previous fi ve years.

• We recycled or reclaimed 87 percent of solid waste.

• Indirect carbon dioxide emissions resulting from energy consumption decreased 14 percent.

• We recycled more than 98 percent of the 1.3 million pounds of reportable TRI chemicals we generated.

• We are fully compliant with new European directives.

Charitable Giving• We contributed more than $5.2 million worldwide

in funds and in-kind donations.

• We increased support of educational programs, our primary focus, from 50 percent of charitable giving in 2004 to 61 percent in 2005.

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38

The printer of this report, Tru-Line Lithographing, Inc. (a member of the Garvey Group), operates an environmentally forward production facility.

This book was printed using Cool White Mohawk paper. This translates into an environmental savings of:

63trees not cut down

2,836 lbs.solid waste not generated

182 lbs.waterborne waste not created

5,542 lbs.atmospheric emissions eliminated

26,729 gallonswater/wastewater fl ow saved

36,222,000 BTUsenergy not consumed

Savings derived from choosing a paperfrom Mohawk’s windpower portfolio:

783 lbs.air emissions (CO2, SO2 and NOX) not generated

The fossil fuel equivalent for this amount of wind energy:

2,891 cubic feetnatural gas

This amount of wind energy is equivalent to:

planting 53 treesornot traveling 874 miles in anaverage automobile

ABOUT THIS REPORT

Publication ESAP-BR001C-EN-P – June 2006 Copyright ©2006 Rockwell Automation, Inc. All Rights Reserved. Printed in USA.Supersedes Publication ESAP-BR001B-EN-E – November 2005