Annual Investor Conference Craig Arnold, President and Chief Operating Officer February 26, 2016 © 2016 Eaton. All Rights Reserved.. Key themes for today • Aligned and experienced leadership team with new 5 year goals • Breadth and depth to lead and deliver results • Track record of success • Driving organic growth with a renewed focus • Delivering superior value, building channel and services, and innovating • Reducing structural costs in a slower growth environment • $400M restructuring program in place with a robust pipeline of future opportunities • Focus on operational excellence expected to deliver margin expansion • Generating strong cash and efficiently allocating capital • Providing 5% - 6% return to shareholders through dividends and share repurchases • $3B repurchase plan from 2015 - 2018 • Optionality to re-enter M&A market • Optimizing mix of served markets, product lines, and businesses • We have discrete criteria against which we evaluate our businesses © 2016 Eaton. All Rights Reserved.. 2 Delivering near-term results with significant upside • 100+ year old company with strong values and well defined management processes 1 • Led by an experienced and aligned management team • A leader in power management serving diverse markets 2 • Our strategy has served us well and the company is stronger than ever • Introducing our 2015-2020 goals, an enhanced strategic 3 direction, and a clear set of priorities © 2016 Eaton. All Rights Reserved.. 3 We are a company with a 100+ year history of adapting to change… 1930 1958 1994 1999 2005-2008 Enter the engine Enter the Expand Grow fluid power Aerospace business valve space medium- and electrical and aerospace doubles with acquisitions of through purchase heavy-duty business by through Aeroquip- Cobham Aerospace Fluid & of Wilcox-Rich transmission acquiring Vickers Air Division, PerkinElmer market by Westinghouse acquisition Aerospace Division, and acquiring Fuller DCBU Argo-Tech Manufacturing 2016 A leading power 1911 management Joseph Eaton company with strong and Viggo businesses in 2008 Torbensen begin attractive global Expand electrical manufacturing 1978 1997 2000 markets business through 2012 truck axles Acquire Cutler- Divest Exit Moeller and Hammer, establishing truck axle semiconductor Phoenixtec Acquire 1937 an electrical business business business with acquisitions Cooper Open first while also expanding Axcelis spin-off international plant Industries aerospace in Canada We have always been and will remain a values-based company © 2016 Eaton. All Rights Reserved.. 4 …and have high standards for those we recruit, develop, and promote We recruit leaders who are… And accelerate their development by… • Ethical…Play by the rules • Deploying a consistent Eaton leadership model • Passionate…Share our vision of being the most admired, of being the best • Providing a diverse set of operational and functional leadership experiences • Accountable…Hold self and others accountable for doing what they say • Delivering intensive training at key stages of career progression • Learners…Strong desire to improve and help others • Managing functional colleges within Eaton University • Make good decisions…proven track record of performance • Expecting leaders to teach leaders © 2016 Eaton. All Rights Reserved.. 5 Which yields an experienced and effective leadership team… Craig Arnold Rick Fearon Revathi Advaithi Uday Yadav Industrial COO President and COO CFO Electrical COO • 16 years at Eaton • 15 years at Eaton • 13 years at Eaton • 14 years at Eaton • President, Aerospace • Member of Eaton board • Member of Eaton board • President, Electrical • Director Medtronic plc • Lead Director PolyOne Americas • EVP, Eaton Business System • President, Hydraulics APAC • COO, Industrial Sector • 6 years at Transamerica • President, Electrical APAC (based in China) • CEO, Fluid Power Group as SVP Corporate (based in China) • VP, Supply Chain, Fluid Development • VP/GM, Electrical • 17 years at General Electric Power Group • 5 years at NatSteel in Components Division • President of Lighting, • Managing Director, Eaton India Singapore as Chairman • 6 years at Honeywell Europe • 6 years at Lucas Engineering and NatSteel Chemicals & VP • VP, Honeywell • President of Appliances, Systems Consulting based Corporate Development Field Solutions Asia © 2016 Eaton. All Rights Reserved.. in Europe 6 …with depth in both the Electrical and Industrial sectors Jim McGill Frank Campbell Brian Brickhouse President, President, President, Electrical - Americas Electrical and Eaton - EMEA Electrical - APAC • 38 years at Eaton(1) • 31 years at Eaton(1) • 30 years at Eaton(1) • President, Electrical • President, Electrical EMEA • President, Power Quality Division Products Americas • SVP, Electrical Sales • SVP/GM, Distributed PQ Division • President, Electrical APAC and Marketing • SVP, Critical Power • President, Eaton APAC • VP/GM, Electrical Assemblies Solutions Division • EVP, Eaton Business System • VP/GM, Electrical • Powerware Commercial • EVP, Human Resources Commercial Facilities integration leader Curt Hutchins Nanda Kumar Ken Davis President, Hydraulics President, Aerospace President, Vehicle • 12 years at Eaton • 25 years at Eaton • 30 years at Eaton • President, Heavy Duty • EVP, Eaton Business System • President, Vehicle Group Americas Transmission business • President, Vehicle EMEA • President, Light and Medium- • President, Eaton APAC • SVP/GM, Valvetrain Duty Transmission • 16 years in consumer products • VP/GM, Specialty Controls and • VP/GM, Clutch Division and aerospace industries Valve Actuation These 10 leaders have over 200 years of combined Eaton experience (1) Incudes tenure at companies acquired by Eaton © 2016 Eaton. All Rights Reserved.. 7 Our leaders drive deployment of the Eaton Business System, the foundation of the company… • Based on a belief in standard processes and measurements • Provides a teachable point of view • Ensures the transfer of best practices across the organization • Encourages continuous learning and improvement • Engages all functions, regions, and businesses EBS is working and will continue to be integral to how we run the business © 2016 Eaton. All Rights Reserved.. 8 …and the way we leverage our scale for a competitive advantage Plan •Business strategy •Annual goal setting •People development Execute Learn • ProLaunch •Eaton University • Lean and Six Sigma •Eaton Resource Groups • Value pricing tools •Expert Locator • Acquisition •Transferable practices Integration Framework Assess •EBE business evaluation •OpA plant evaluation •MESH EHS assessment •Customer surveys © 2016 Eaton. All Rights Reserved.. 9 Delivering near-term results with significant upside • 100+ year old company with strong values and well defined management processes 1 • Led by an experienced and aligned management team • A leader in power management serving diverse markets 2 • Our strategy has served us well and the company is stronger than ever • Introducing our 2015-2020 goals, an enhanced strategic 3 direction, and a clear set of priorities © 2016 Eaton. All Rights Reserved.. 10