Total Societal Impact: The Strategic Imperative for

Leaders

Ed Monser

President of Emerson

Monday, 19th February, 2018

22

Emerson’s Values Guide How We Do Business

Our Values Are an Important Driver to Our Success

INTEGRITY

We are uncompromising in our honest and ethical behavior,

which creates trusting relationships with one another,

customers, suppliers, and communities.

SAFETY & QUALITY

We are unwavering in our commitment to the

highest standards of safety and quality for ourselves

and our customers.

CUSTOMER FOCUS

We actively listen to our customers to deeply understand

their needs and deliver the unique solutions that ensure

their success.

SUPPORT OUR PEOPLE

We attract, develop, and retain exceptional people in

an inclusive work environment, where all employees can

reach their greatest potential.

CONTINUOUS IMPROVEMENT

We constantly strive for improvement in all aspects of our

business, guided by metrics, feedback, and our disciplined

management process.

COLLABORATION

We work seamlessly across geographies, platforms,

business units, and functions to fully leverage our unmatched

breadth and expertise.

INNOVATION

We passionately pursue new technologies, capabilities, and

approaches to drive tangible value for our customers.

3

Core Business Platforms

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

• Helping nations move their economies forwardin a responsible way

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

• Advancing the industries that are the backbone of daily life

• Ensuring human comfort and health

• Protecting food quality and sustainability

• Advancing energy efficiency and environmental conservation

• Creating sustainable infrastructure

EMERSON AUTOMATION SOLUTIONS EMERSON COMMERCIAL & RESIDENTIAL SOLUTIONS

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

44

Emerson’s Presence in India

Our Manufacturing Presence in India Is a Key to Supporting the Region’s Needs

Engineering Centers

Manufacturing Locations

Head Office

6,600+

EMERSON EMPLOYEES

––––––––––––––––––––

––––––––––––––––––––

WORK IN INDIA

51–––––––––––––––

TOTAL LOCATIONS;

INCLUDING

MANUFACTURING,

ENGINEERINGS, AND SALES

4,000+–––––––––––––

EMERSON

ENGINEERS

IN INDIA

$1,700–––––––––––

$90IN INVESTMENT 2012-2017

––––––––––––––––––

NEW FACILITY IN 2019

$85M TOTAL EMERSON INVESTMENT

––––––––––––––––––––MANUFACTURING CENTER OF EXCELLENCE

34,000 SQM OF MANUFACTURING

Emerson’s Major Facilities

in India

Chakan – New Facility in 2019

MILLION–––––––––––––

THOUSAND

CONTRIBUTED

TO CHARITIES

IN 2017

–––––––––––––Mumbai

Mohali

NoidaGurgaon

Baroda

Pune

Chennai

Coimbatore

Atit

55

Emerson Philanthropy & Employee Volunteerism in India

Emerson Has a Corporate CSR Program That Consolidates Business Unit Contributions and Supports Local, Impactful Initiatives

NGO: Purkal Youth Develop. Society

• Funding for their expenses for

classes 1st, 6th, 9th, 10th & 11th

and to furnish the Girls Hostel

NGO: SOS Children’s Villages

• Funding to ‘Enable children through

employment linked education’ for

1000 students across 32 villages

NGO: Agastya Int’l Foundation

• Funding for Pune and Pilani Science

Ecosystem to bring science

education to government schools

NGO: Masoom

• Funding to conduct short term skill

development courses for 200

students

Our Contributions Focus on Supporting:• Education

• Women

• Socially backward individuals

• Economically backward individuals

• Rural development

NGO: Lend-A-Hand-India

• Funding to conduct short term skill

development courses for 30 schools

6

Emerson Automation Solutions Top Quartile Initiatives

Plantweb

Our Plantweb digital ecosystem provides a robust portfolio of hardware, software, intelligent devices and services for securely implementing the

Industrial Internet of Things, with measurable business performance improvement.

Our technology- and engineering-based program is designed to

help industrial companies achieve Top Quartile performance and

recover more than $1 trillion* in operational losses globally.

Operational Certainty

We combine innovative technology and engineering to

improve capital efficiency and boost project schedule

reliability—helping to address the billions of dollars lost due

to project excesses each year.

Project Certainty

*Emerson internal estimate

7

Sources: Refining and Petrochemical Benchmarks,

API, Solomon, OSHA, IHS Markit and Company Reports

Safety

Production

Industry Benchmarks Reveal Significant Business Improvement Opportunities From Average to Top Quartile Performers

4% higher availability

Half the

maintenance

costs

3X fewer

recordables and process

incidents

20% lower operating costs

Reliability

Emissions

Process

Incidents

4th 1stQuartiles

Utilization

4th 1stQuartiles

Energy Use

CO2 Emissions

4th 1stQuartiles

Availability

Maintenance

4th 1stQuartiles

30% lower emissions

30% less energy use

Operating Costs

Recordables

10% higher Utilization Rate

Our Goal

is for each of our customers to achieve

Top

Quartile

PerformanceBy using our devices

and systems

8

Shell’s Prelude Project Is an Industry First and Utilizes Our Automation Technology for Safety, Reliability, and Production

Project Prelude

FIRST OF ITS KIND

New Floating LNG technology; design began in 2010

Operates 200+km from the nearest land

MINIMIZE CAPEX & OPERATING COSTS

Complex design – aim to minimize cabling

5x more expensive to host an employee on-site

Maintenance analytics required

Profitable through oil price cycles

SAFETY & RELIABILITY

Designed to minimize human capital

Operational life designed for 25 years

Project Prelude Was Built in South KoreaConstruction Began in 2015

An Ambitious Project Utilizing Innovative Technology

Prelude Is Located 200+ km from Australia

Source: Shell

99

We Provided a Comprehensive Solution of Innovative Automation Technology in Order to Build Project Prelude

Emerson’s Technology Prelude

Project Prelude Contains 9,000 Emerson Devices to Collect Data and Automate Processes

A single integrated system architecture to

maximize remote monitoring capabilities

Extensive pre-testing and inspections on-site

to avoid project cost, carry-over work and

schedule overruns

Proactive maintenance program enabled by

real-time diagnostics and remote

equipment monitoring Project Prelude Shipped in June, 2017

and Arrived in Australian Waters in July

10

Our Ovation Virtual Power Plant Solves Customers’ Operational, Lifecycle, and Compliance Issues

BREAKTHROUGH TECHNOLOGY

Five years of software development

3.5 million lines of new software code

Multiple US patents granted

POWERFUL SIMULATION

Complete working model of existing power plant operating in parallel

Supports “faster-than” or “slower-than” real-time execution

Mirrors actual plant behavior high accuracy

Minimizes human error

TRANSFERABLE KNOWLEDGE

Operator training

Engineering development

Analytics

VIRTUAL+

PHYSICAL

11

Our Global Engineering Center in Noida Is a World-Class Engineering Facility Empowering Global Technology

Established, July 1997

GLOBAL ENGINEERING

Completed 800 projects in 50 countries

300 plus Engineers in Noida

Focused on Power and Water Industry automation

BEST-IN-CLASS

ISO 9001:2015 certified

Emerson safety award for eight consecutive years

All Power and Water Control Solutions tested at the center

Expertise in Digital Twin Simulation and CyberSecurity

SUITE OF CAPABILITIES

Product design and development

Project management and field engineering

Customer training

1212

The Ovation Virtual Power Plant Enables the Working Environment of the Future

Emerson Is Collaborating With a Large North American Utility to Host Its Entire Fleet in the Cloud

Emerson-Ovation’s Digital Twin

13

Digital Transformation Addresses the Challenges of 4D Operations

Dull

Routine reporting processes

Outdated operating procedures

Dirty Unnecessary equipment repairs & rework

Required physical observations of plant/field equipment

Dangerous

Hazardous area exposure via routine, manual data collection rounds and unnecessary work

Distant Non-productive (travel, wait, etc.) time

Contingency time (scheduling & collaboration bottlenecks)

EngagedElevate roles from routine monitoring to responsibility for business metrics with optimization tools

CleanEliminate unnecessary field work through use of predictive tools and practices

SafeMitigate exposure to personnel in hazardous areas through elimination of routine data collection rounds

DesirableUse remote collaboration to optimize project execution/test and resolve operational problems

14

Digital Transformation Changes the Role of Core Production Workers

FUTURE

CURRENT

“In many cases we redeploy the workforce into doing more intelligent tasks...the integrity, quality, andproductivity of the process is improved by them doing more intelligent tasks.”

- CTO, Integrated O&G

Routine Physical

Collecting Data

Routine Data Reporting

Control System Engineer

Process Engineer

Instrument Technician

Control Room Operator

Unit Maintenance Technician

Source: Harris Insights & Analytics Digital

Workforce Study (2017)Source: Human Centered Design Personas, Customer Proven Results & Emerson Analysis

Control System Engineer

Process Engineer

Instrument Technician

Control Room Operator

Unit Maintenance Technician

Non-Routine Physical

Interpersonal Collaboration

Analytical Expertise

1515

The Next Era of Value Creation Will Be Enabled by Digital Transformation

Emerson Innovations and the Digital Transformation Will Change How Employees Work. This Will Require Upskilling the Industry’s Workforce and Enabling Workforce Productivity

With New Technologies

Automated Workflow

Decision Support

Workforce Upskilling

Mobility

Change Management

Workforce

Productivity

Adoption of

Best-In-Class

Behaviors 5 ESSENTIAL COMPETENCIES

OF DIGITAL TRANSFORMATIONIncremental

Continuous

Improvement

FutureHistoric Business Practices

1616

Digitalization Is Powering a Shift in Workforce Productivity

Digital Transformation Enables & Requires Organizational Transformation

5 ESSENTIAL COMPETENCIES

OF DIGITAL TRANSFORMATION

Decision

Support

Automated

Workflows

Mobility Workforce

Upskilling

Change

Management

Eliminate repetitive

tasks and

streamline

standard

operations

Leverage

analytics and

embedded

expertise

Enable workers

to acquire

knowledge &

experience

faster

Secure,

on-demand

access to

information and

expertise

Accelerate the adoption of operational best practices

17

Key Messages

• Emerson has a long history in the process automation industry and is

poised for continued technology and market leadership.

• India is a strategic partner in Emerson’s regional engineering

excellence and manufacturing goals.

• Future of Automation: More sensing, data, operations software,

consulting, virtualization, and connected services – leading to safer,

more reliable, more environmentally friendly plants and working

conditions.

• More automation enables an empowered, highly intelligent workforce,

which will require new skills and will increase overall quality of life.