Emerson Electric Company · NYSE:EMR
Emerson Electric — Merger or Acquisition (November 2024)
17 slides from Emerson Electric's merger presentation, Nov 5, 2024
Slide 1: Strategic Announcement
Strategic Announcement November 5, 2024 EMERSON | 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication contains forward-looking statements related to Emerson, AspenTech and the proposed acquisition by Emerson of the outstanding shares of common stock of AspenTech that Emerson does not already own. These forward-looking statements are subject to risks, unc
Slide 3: Additional Information and Where To Find It
Additional Information and Where To Find It This communication relates to a proposal that Emerson has made for an acquisition by Emerson of all of the shares of issued and outstanding common stock of AspenTech not already owned by Emerson. In furtherance of this proposal and subject to future develo
Slide 4: Key Strategic Actions to Complete Portfolio Transformation
Key Strategic Actions to Complete Portfolio Transformation • Proposal to acquire remaining shares1 of AspenTech for $240 per share in cash • Accelerates achievement of software-defined automation strategy to provide unparalleled value to customers • Drives the realization of incremental cost synergi
Slide 5: AspenTech
PRODUCT SUITE3 END-MARKET4 AspenTech 8% DGM 4% APM 19% Other 40% Energy & Energy Transition 10% 1% Global, diversified leader specializing in SSE General Industries industrial software for complex environments 3% where it is critical to optimize the asset Hybrid design, operation and maintenance lif
Slide 6: Combination of Emerson and AspenTech Would Accelerate Delivery of Software-Defined Automation Vision
Combination of Emerson and AspenTech Would Accelerate Option 1 Delivery of Software-Defined Automation Vision TODAY Engineering & Operations Asset Enterprise Operations Platform Design Performance Optimization Production Safety Reliability Optimization Software IT Data Lake Cloud Operations Control
Slide 7: Emerson's Enterprise Operations Platform Would Meet Emerging Customer Needs
Emerson’s Enterprise Operations Platform Would Meet Emerging Customer Needs With a Phased Deployment of Expanding Capabilities Enterprise Operations Platform A comprehensive software solution connecting the field, edge, and cloud, to manage and optimize the Market Needs control, production, safety,
Slide 8: Combined Portfolio Would Enable Software Offerings to Seamlessly Integrate
Combined Portfolio Would Enable Software Offerings to Seamlessly Integrate Across Process and Hybrid Industries AspenTech Applications Emerson Applications Engineering / Optimize Production & Asset Performance Modeling & Design Operations Management Process Control Optimization Batch Management Proc
Slide 9: Combination Would Provide Customers With an Unparalleled Enterprise Operations Platform
Combination of Emerson and AspenTech Capabilities Would Provide Customers With an Unparalleled Enterprise Operations Platform Emerson + Automation Automation Automation Non-Traditional Key Capability AspenTech Peer 1 Peer 2 Peer 3 Players1 Unified Data Fabric Integration of Industrial Software Appli
Slide 10: Emerson Shareholders Would Benefit From Significant Synergy Opportunity
Emerson Shareholders Would Benefit From Significant Synergy Opportunity Leveraging Our Integration Playbook Opportunity • Streamline duplicative functions Transaction Expected • Leverage regional best-cost model to Meet Emerson’s • Consolidate facilities Return Thresholds Corporate Costs / G&A • Red
Slide 11: Now Is the Right Time to Proceed With a Buy-In of the Remaining Stake in AspenTech
Accelerates achievement of software- defined automation strategy to provide unparalleled value to customers Now Is the Right Drives the realization of incremental Time to Proceed cost synergies using Emerson’s proven integration playbook With a Buy-In of the Remaining Stake in AspenTech Enhances ope
Slide 12: Safety & Productivity
Safety & GEOGRAPHY 5% END-MARKET 6% 2% Other Productivity Asia, Middle East & Africa 19% Utilities 57% Industrial & Commercial Global manufacturer of professional Europe plumbing and electrical tools as well as wet/dry & commercial vacuums with 4,200 35% Residential employees 76% Americas 2024 FINAN
Slide 13: 2024 Emerson Post-Transactions: An Industrial Technology Leader
2024 Emerson Post-Transactions: An Industrial Technology Leader Delivering Advanced Automation Solutions $16.1B 54.2% $1.4B Net Sales Adjusted Gross Profit ACV1 26.2% >60% 10% Adjusted Segment EBITA MRO / Recurring Revenue ACV Growth YoY GEOGRAPHY SEGMENT SOFTWARE 7% AspenTech Test & 20% Measurement
Slide 14: Appendix
Appendix E M E R S O N | 14
Slide 15: Endnotes
Endnotes Continuing Operations: All financial metrics in this presentation are on a continuing operations basis, unless otherwise noted. Annual Contract Value (ACV): ACV is an estimate of the annual value of our portfolio of term license and software maintenance and support (SMS) contracts, the annu
Slide 16: Reconciliation of Non-GAAP Measures: AspenTech and Safety & Productivity
Reconciliation of Non-GAAP Measures AspenTech and Safety & Productivity This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in billions, except per share amounts) AspenTech Adjusted Segment EBITA Margin FY24 AspenTech segment margin (GAAP) (6.7%) Amo
Slide 17: Reconciliation of Non-GAAP Measures: Emerson (Post-Transactions)
Reconciliation of Non-GAAP Measures Emerson (Post-Transactions1) This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Emerson Post-Transactions Sales FY24 FY24 Sales (GAAP) $17.5B Safety & Productivity Sales (GAA
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