Eaton Supplier Meeting

Eaton Supplier Meeting Brad Morton March 29, 2011 2011 Eaton Corporation. All rights reserved.

Agenda Industrial Sector Overview Our Four Businesses 2 2

Each of our businesses offer compelling power management solutions Aerospace 2010 Sales $1.5B Hydraulic, fuel, pneumatic, and electrical products that deliver safe and efficient solutions for aircraft Hydraulics 2010 Sales $2.3B Hydraulic motion and control products that efficiently solve the world s most demanding needs for power Truck 2010 Sales $2.0B Manual and automated transmissions that efficiently and safely allow power to be transferred from the engine to wheel Automotive 2010 Sales $1.5B Engine air management, traction control, and fluid products that improve fuel economy, emissions and safety 3 3

Market diversification contributes to company balance Aerospace Business Jets Civil Rotorcraft Commercial Aftermarket Commercial Transports General Aviation Military Aftermarket Military Fighters Military Rotorcraft Other Aerospace Regional Jets Hydraulics Agriculture Construction Energy Filtration Industrial Machines Material Handling Mobile Truck, Bus, Engine Other Mobile Other Stationary Processing Sports and Leisure Truck Agriculture Clutch Heavy Duty Transmission Light / Medium Duty Transmission Automotive Alternative Markets Asian Brands Europe and South America Brands NAFTA / Detroit 3 Continue to focus on higher growth markets 4 4

Our sales have grown and our business mix has changed since 2002 2002 Sales $5.0B 2010 Sales $7.3B Aerospace 14.3% Automotive 38.0% Aerospace 20.5% Automotive 20.5% Hydraulics 24.4% Truck 23.4% Hydraulics 27.5% Truck 31.5% 5 5

We are investing in key growth drivers Emerging Markets New Products Energy Efficiency Realizing benefits of local investments Winning local customers and programs Serving global customers Creating strategic alliances Sales to Emerging Markets CAGR 17% Committed to new product development and organic growth Variable Displacement Ring Pump Laser Clad Coating UltraShift PLUS Automated Transmission Variable Valve Lifters Continue to invest in energy markets, fuel efficiency and safety 5,000 PSI hydraulic systems for Aircraft Hybrid Vehicles High performance valves Supercharger 2002 2004 2006 2008 2010 6 6

and acquisitions will continue to be a source of our growth Acquired 18 companies since 2002 We focus on acquisitions that offer differentiated technologies with the ability to perform in the high growth segments Our acquisition strategy has made us a better-balanced company in terms of geography, end markets, and business cycle Our integration process maximizes business results with minimum disruption Acquisitions Since 2002 Argo-Tech Corporation Integrated Hydraulics PerkiElmer Arrow Hose & Tubing Cobham Fuel/Air Business Ronninger-Petter Mechanical Products Synflex Kirloskar Engine Valves Hayward Filtration Saturn Fuel Components Winner Hydraulics Tractech Holdings GKN / Walterscheid Morestana Boston Weatherhead Tuthill Couplings Pigozzi ~$1.4B revenue from acquisitions since 2002 7 7

Agenda Industrial Sector Overview Our Four Businesses 8 8

Our Aerospace business is well balanced across markets and channels 2010 sales were $1.5B Brands Eaton Aeroquip Argo-Tech Tedeco Vickers Fuel Systems Product Mix Conveyance Systems Distinctive Capabilities Technology leadership at component level Systems integration Program management Manufacturing excellence Electrical, Sensing & Controls Hydraulics Systems 9 9

Eaton has significant shipset content Aerial Refueling Pumps Hoses Refuel Valves Refuel Adapters Conveyance Airframe Fuel Systems Transfer Pumps Engine Feed Pumps Fuel Manifolds Valves Air / Fuel Pressure Regulators Engine Fuel System Main Engine Fuel Pumps Engine Lube & Scavenge Pumps Distribution Reservoirs Actuators Valves Flight Controls Stabilizer Trim Flap / Slat Systems Power Generation Engine Driven Pumps Power Transfer Units Hydraulic Power Packs Hydraulic Driven Generators Fluid Conveyance Hoses & Tubes Fittings & Couplings Conveyance Systems Electrical Distribution Circuit Breakers Relays Power Distribution Units Electrical Control Cockpit Switches Overhead Cockpit Panels Landing Gear Systems Nose Wheel Steering Braking & Parking Brakes Fuel Conveyance Tubes & Fittings Couplings Ducts Utility Actuation Passenger Doors Weapons Bay Doors Air Conveyance ECS Tubes & Ducts High Pressure / Temp Ducts Valves Couplings & Connectors Engine Build Up High Pressure Ducting Tubing Engine Fluid Accessories Flight Controls Speed Brakes Spoilers Hydraulic Motors 10 10

Our Hydraulics business has product breadth and serves diverse end markets 2010 sales were $2.3B Brands Eaton Hydro-Line Aeroquip Synflex Boston Vickers Char-Lynn Weatherhead Product Mix Golf Grip Filtration Distinctive Capabilities Leading technologies Rapid response Manufacturing excellence Global footprint Fluid Conveyance Power & Motion Control 11 11

With broad content in applications Mobile Stationary Joystick Controls Manifold & SICV Filtration Pitch System Cylinders Filters Braking System Accumulators Motors Pumps Hose, Fittings & Hose Assemblies Gear Pumps Hose and Hydraulic Connectors Valve Controls Mini-Excavator Wind Turbine 12 12

Our Truck business serves diverse markets with leading technology 2010 sales were $2.0B Brands Eaton Fuller Roadranger Agriculture Transmissions Clutch Product Mix Heavy Duty Transmissions Distinctive Capabilities Leading technologies Manufacturing excellence Economies of scale Global footprint Medium/Light Duty Transmissions 13 13

Truck products for commercial vehicles Manual and Automated Transmissions Hybrid Power Systems Manual and Automated Clutches Engine Valvetrain Components Air and Fluid Conveyance 14 14

An Automotive business positioned to win in fuel efficiency and emission solutions 2010 sales were $1.5B Brands All products branded Eaton Fuel Emissions / Powertrain Controls Product Mix Plastics Valvetrain Torque Controls Distinctive Capabilities Leading technology Manufacturing excellence Global footprint Supercharger Fluid Connectors 15 15

With industry-leading energy, emissions, and safety content in major platforms Plastic Engine Components Superchargers Spoilers Engine Controls Fluid Conveyance Valve Actuation Valves Transmission Controls Differentials Fuel Emissions 16 16

In summary Eaton is a healthy growing company Our business philosophy is consistent with our mutual success Suppliers are important to achieve our strategic imperatives Leading in key products and technologies Becoming a world-class manufacturing company Creating a learning culture Globalizing our business Building superior organizational capability Strategic suppliers are key to our success, today and tomorrow Together, we are well positioned for global growth 17 17

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