Eaton Investor Update September Eaton. All rights reserved.

Eaton Investor Update September 2013

Forward-looking statements and non-gaap financial information The information provided today will include forward-looking statements relating to our goals and estimates for future years, including statements about expected sales, acquisition synergies, operating earnings per share, cash flow, segment margins, our worldwide markets, our anticipated effective income tax rate, the tax treatment of our dividends and others. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside the company s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: unanticipated changes in the markets for the company s business segments; unanticipated downturns in business relationships with customers or their purchases from us; competitive pressures on sales and pricing; increases in the cost of material and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions or realizing expected synergies from the Cooper acquisition; new laws and governmental regulations; interest rate changes; changes in currency exchange rates; stock market fluctuations; and unanticipated deterioration of economic and financial conditions in the United States and around the world. We do not assume any obligation to update these forward-looking statements. This presentation includes certain non-gaap measures as defined by SEC rules. A reconciliation of those measures to the most directly comparable GAAP equivalent is provided in the investor relations section of our website at www.eaton.com and is contained in your packet. 2

Eaton A Power Management Company A balanced power management company Cooper acquisition transforms the Electrical Sector Creating consistent and profitable growth across our Industrial Sector Summary and guidance 3

Eaton is a global leader in power management Electrical Fluid Mechanical Cities & Buildings Information Technology Energy & Utilities Industrial & Machinery Infrastructure Transportation Uniquely positioned to provide safe, reliable, efficient and sustainable power management solutions for our global customers 4

Our targeted mix shift has resulted in exposure to high-growth markets and powerful megatrends 60 Percentage increase in global demand for energy in buildings projected by 2050 600 Percentage increase in the global LED lighting market projected by 2020, a CAGR of ~25% 70 Percentage increase in liquid petroleum demand in Non-OECD nations expected by 2040 70 Percentage increase in food production by 2050 necessary to feed a global population of 9.1 billion people 150 Percentage increase in annual distances travelled by commercial aviation expected by 2030 25 Percentage increase in fuel economy necessary by model year 2018 to meet the first ever U.S. emissions standards for heavy-duty trucks 5

In 2012, we completed the transformational acquisition of Cooper Industries Grows the global scale of our electrical business Improves our breadth of products with virtually no overlap Increases leverage to global megatrends: energy efficiency, utility grid upgrade, industrial safety Brings our overall portfolio to $21.8 B in revenue, based on combined 2012 revenues Combined company has 102,000 employees with sales in 175 countries Founded 1833 2012 Sales $5.9 B 29,000 Employees Manufacturing in 23 countries Sales in over 100 countries 6

With the completion of the Cooper acquisition, we have resegmented the businesses Electrical Sector Electrical Products Legacy Eaton: Non-residential & Residential Products Industrial Controls Single Phase Power Quality Legacy Cooper: Bussmann Lighting B-Line Wiring Devices Safety 2012 Sales by Sector Pro-forma, including Cooper $8.6 B $13.2 B Industrial Sector Hydraulics Aerospace Electrical Systems & Services Legacy Eaton: Power Distribution & Assemblies Three Phase Power Quality Software & Services Legacy Cooper: Power Systems Crouse-Hinds Total Sales $21.8 B Vehicle Truck and Automotive Drivetrain and Powertrain Systems 7

We have achieved a powerful business mix that is geographically balanced Pro-forma 2012 Sales by Business* Pro-forma 2012 Sales by Geography* 18% 23% 8% 60% 50% 14% 27% Electrical Hydraulics U.S. International Developed Aerospace Vehicle International Emerging *2012 Pro-forma data,including Cooper 8

and built a portfolio of businesses that are well balanced across the business cycle 2012 Global Sales by Cycle 14% 11% No Cycle $2.4 B Electrical Service Defense Filtration Aerospace Aftermarket 24% 30% 31% 29% Late Cycle $6.5 B Commercial Aerospace Utilities Nonres. Construction Large Data Centers 31% 30% Mid-Cycle $6.4 B Hydraulics Industrial Controls Medium Duty Truck Mid-sized Data Centers Pro-forma, excluding Cooper Pro-forma, including Cooper Early Cycle $6.5 B Residential Construction 1-Phase Power Quality Heavy Duty Truck Automotive 9

Our transformed portfolio is better positioned to withstand market contractions Peak-to-trough market decline in a typical recession Old Eaton New Eaton -4% -10% 60% reduction in peak-to-trough market decline Reflects an average market decline in the 1981-1982, 1990-1991, and 2000 2001 recessions 10

Even during more severe recessions such as 2008, Eaton s EBIT volatility is now expected to be lower 125% 75% EBIT Volatility 2007-2011 >125% Volatility Sequential Quarterly Percent Change in EBIT 25% -25% -75% Eaton (stand- alone) Eaton (plus Cooper) 1.17 0.36-125% <-125% 2007 2008 2009 2010 2011 PDI Range 0.14 to 0.60 Eaton Eaton plus Cooper Volatility = Standard deviation of sequential quarterly EBIT change; PDI peers include MMM, DHR, 2013 DOV, Eaton. All EMR, rights reserved. GE, ITW, and UTX 11

Since embarking on our strategy in 2000, we have fundamentally improved the business 2000 2012 Change Sales $8.3B $21.8B pf 2.6x Market capitalization (as of 12/31) $5.5B $25.1B 4.6x Segment margins 9.8% 14.1%* 430 bps Free cash flow $0.13B $1.08B 8.1x Strategic Imperatives Improve size Improve performance Elec / Hyd / Aero sales % of total Emerging market sales % of sales $4.7B 56% $0.8B 10% $17.9B pf 82% $5.0B pf 23% 3.8x a 6.3x Improve consistency Note: pro-forma 2012 sales metrics include Cooper full-year results. * 2012 segment margins adjusted for $50M restructuring 12

Our shareholder returns have been strong Return Index 600 500 Cumulative Shareholder Returns 2000 Aug 31, 2013 CAGR* 14.2% 400 300 11.2% 200 100 3.7% 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 August 31, 2013 Eaton S&P 500 Peer Group** Note ** Peer Group represents an equal weighted index of DHR, DOV, EMR, ITW, UTX, ABB, HON, IR, PH, SIE, LR, ROK, SU *CAGR = Calculated using the End Point Methodology Source Data: Capital IQ 13

Our dividend yield has been a major driver of our strong shareholder returns Total Shareholder Returns 2000 August 31, 2013 Dividend Yield As of August 31, 2013* 6x 4% 5x 4x 2.0x 5.3x 4% 3% 3% 3x 2% 2x 1x 3.3x 2% 1% 0x Share Appreciation Dividends Total Shareholder Returns 1% 0% SI ABB SU LR EMR ETN ROK UTX ITW HON PH DOV IR DHR * Eaton dividend yield reflects $0.42/share dividend 14

and our dividend policy of growing future dividends in line with earnings growth remains unchanged Our dividend has grown at 14% CAGR since 2003 $2.00 Dividends Per Share We announced a 10.5% increase in our quarterly dividend in February 2013 We expect the return of capital treatment of our dividends to continue over the medium term $1.50 $1.00 $0.50 $0.00 2000 2002 2004 2006 2008 2010 2012 2013e 15

The acquisition of Cooper is transformational for our business Largest acquisition in Eaton s 102-year history Broad set of complementary electrical products and solutions Significant synergies with little overlap Expansion across the entire power system Upstream into power solutions encompassing primary and secondary distribution, grid automation and smart grid Downstream into lighting, lighting controls and wiring devices * Cooper 2012 results on a stand-alone basis 17

Cooper has a wide range of complementary electrical businesses Power Systems Lighting Distribution grid protection & automation Broad lighting packages for indoor & outdoor use Crouse-Hinds Global leader in electrical solutions for harsh & hazardous environments Bussmann Global leader in circuit protection B-Line Safety Leading European provider of emergency lighting, notification & video security Global provider of structural systems & wire management solutions Wiring Devices Electrical devices for commercial & residential power distribution 18

Cooper is positioned to capitalize on similar global trends as historic Eaton business Global Opportunity Eaton Cooper Utility Grid Upgrades $1.8T in grid upgrades over the next two decades Reliability Mission critical applications growing as a share of total consumption Alternative Energy Safety / Protection Energy Efficiency Renewables share of generation to double by 2025 Increasing emphasis on electrical safety $100B building energy efficiency market by 2017 LED Lighting Over 60% of all lighting by 2020 19

The combined business is balanced and has substantial platforms for future growth Residential Commercial / Infrastructure Oil & Gas / Other Industrials Utility Machine Builders Data Center/IT Six primary platforms for growth Each >$1B in sales All have global scope Market and channel position substantially enhanced in at least four of the platforms Eaton Electrical Cooper 20

Our expanded capabilities position us to provide solutions across a broad range of end markets Structural Solutions & Wiring Devices Engineering Services Legacy Eaton Legacy Cooper Backup Power Protection Power Distribution & Circuit Protection Control & Automation Solutions for Harsh & Hazardous Environments Lighting & Security Data Centers 21

Our electrical business is geographically balanced between U.S. and international markets Electrical Products Electrical Sector Emerging 20% Emerging 20% U.S. 53% U.S. 48% Int l Developed 32% Electrical Systems & Services Int l Developed 27% Note: full year 2012 Sales for Eaton Electrical and Cooper on a standalone basis Emerging 20% Int l Developed 21% U.S. 59% 22

and our large share of component sales results in higher profitability and less variability Electrical Solutions Mix (Eaton + Cooper)* Services 9% Compnt's 51% Characteristics of Components MRO as well as projects business For internal consumption and for a wide range of external electrical / machinery OEMs Global business with opportunity to leverage technology and scale Systems 40% Characteristics of Systems & Services Projects business with significant influence from end users and specifying consultants Potential to package solutions together for large orders Very large market opportunity requires local and segment intimacy *Based on 2013E Sales 23

The Cooper synergy projections have increased from prior expectations Annual Pre-tax Synergies ($Millions) 2013 2014 2015 2016 Sales synergies 10 35 70 115 Cost-out synergies 80 105 145 175 250 280 290 325 Total Operational Synergies 90 115 180 210 320 350 405 440 Global cash management and resultant tax benefits 160 160 160 160 Acquisition integration costs, pre-tax 90 130 90 120 30-24

Operating synergies will be derived from five main areas EBS Plant & Distribution 133 small / medium plants 64 distribution centers $3.8B in fixed costs High % of fixed overhead in small / medium plants Application of EBS Tools ELSS EQS 6% average improvement in our manufacturing costs on large Electrical acquisitions Supply Chain Economies of Scale $4.8B direct spend $2.3B indirect spend $0.5B logistics 4% average supply chain savings on large Electrical acquisitions Leveraging Eaton s Infrastructure Technology centers in Pune, Shenzhen, Prague Global shared service centers $325M in mature year cost-out savings Corporate Cost Reduction Corporate functions Back office support Data centers 25

and sales synergies will come from four key areas Larger Package to Common Customers Oil & Gas Data Centers Mining Utility Boost Channel Sales Strengthen regional presence Stronger niche presence Service Business Build on strong Global infrastructure Use Lighting to extend Energy Services Deal Enables Geographic Expansion China Mexico Middle East Africa Russia $565M in incremental mature year sales 26

Our Industrial businesses offer compelling power management solutions Hydraulics 2012 Sales $3.0B Hydraulic motion and control products that efficiently solve the world s most demanding needs for power Aerospace 2012 Sales $1.7B Hydraulic, fuel, pneumatic, and electrical products that deliver safe and efficient solutions for aircraft Vehicle 2012 Sales $3.9B Transmissions and engine air management products that efficiently transfer power and improve fuel economy, emissions and safety 28

that are focused on key market drivers Key Market Drivers Growth of emerging markets Eaton s Growth Drivers Expansion in China, India, Brazil and Eastern Europe Increasing customer demands on cost, quality and delivery Investing in technology and product leadership Strategic acquisitions and alliances Cost of fossil fuels New regulations and the need to reduce environmental impact Focus on energy markets, fuel efficiency, reduced emissions and safety 29

Our Hydraulics business serves large and diverse end markets 2012 sales of $3.0B Business Mix 70% Mobile 30% Stationary 50% Direct 50% Distribution Key Business Drivers Better profitability across the business cycle Well positioned in key growth markets Investment in product innovation Emerging markets Acquisitions and alliances Processing Material Handling Other Manufacturing Market Mix Recreation Commercial Vehicles Oil & Gas / Energy Construction Expected 2013 operating margin of 13.5% Agriculture 30

Our two Hydraulics acquisitions in 2012 are a platform for growth in emerging markets Acquisition Rationale: HQ in S. Korea, 2011 sales $189M Expands our portfolio of components for global construction equipment Strengthens our ability to serve local OEMs with best cost manufacturing Delivering for Customers: Eaton has won the main control valves business from Hyundai Heavy Industries for their next generation 5-ton and 8-ton class excavators HQ in Turkey, 2011 sales $335M Expands our rubber, PVC, and thermoplastic industrial hose portfolio Enhances market access to Eastern Europe, Asia, and Africa Eaton has significantly expanded sales in Turkey, Middle East, Baltics, and CIS countries New customers added in 10 countries where Eaton Hydraulics had no prior sales 31

Our Aerospace business has breadth across many markets and platforms 2012 sales of $1.7B Market Mix Business Mix Commercial: 65% Military: 35% Original Equipment: 65% Aftermarket: 35% General Aviation Business Jet Regional Transport Rotorcraft Military Transport Military Fighters Military Rotorcraft Key Business Drivers Strong positions on the right platforms Strength in both aftermarket programs and service Innovation and system solutions Large Transport Other Expected 2013 operating margin of 14% 32

Vehicle is well positioned to serve global OEMs 2012 sales of $3.9B Market Mix Business Mix North America: 50% South America: 20% EMEA: 20% APAC: 10% Passenger Ag / Off Highway Other Line Haul Key Business Drivers Globally diversified business Leveraging fuel economy and emissions reduction Continued growth in emerging markets Pickup and Delivery Vocational Expected 2013 operating margin of 16% 33

Despite slower forecasted global growth, we are targeting 8% revenue growth through the cycle Six Percent + Two Percent Core Revenue Growth ~2x GDP Growth from Acquisitions High Growth End Markets Innovation Emerging Markets 35

We now expect record margins in 2013, with further expansion through 2015 2012 2013E 2015 Target Electrical Products N/A 16.5% 18% Electrical Systems & Service N/A 14.5% 16% Hydraulics 13.0% 13.5% 17% Aerospace 12.4% 14.0% 16% Vehicle 14.6% 16.0% 17% Eaton Consolidated 13.8% 15.25% 17% 36

This will result in substantial cash generation from our transformed business, beginning in 2013 Fundamental shift in levels of cash flow generation, starting in 2013 2012 was an all-time record op. cash flow 2013 is the start of a new era for Eaton $2.5 B $2.6 B $1.7 B 2012 2013e 37

We project market growth of 1% for 2013 2013E Total U.S. 2013E Non U.S. Electrical Products Index 1.5% 3% 0% Electrical Systems & Service Index 1% 1% 1% Hydraulics Index (5)% (5)% (5)% Aerospace Index 3% 1% 5% Vehicle Index 1% (3)% 4% Eaton Consolidated Index 1% 0% 1% Eaton Weightings 50% 50% 38

2013 Outlook Core Revenue Growth $350M Net Acquisition Revenue $6,000M Incremental Margin 33% Tax Rate 7% - 9% Operating EPS Full Year $4.05 $4.25 Q3 $1.05 $1.15 Operating Cash Flow $2.5B $2.6B Free Cash Flow $1.85B $1.95B CAPEX $650M 39

2013 the start of a new era for Eaton We have the balance across our businesses to drive strong earnings growth throughout the economic cycle The transformed company will be higher growth, higher margin We expect revenue growth through the cycle of 8% We have raised our 2015 segment margin goal to 17% Post the Cooper acquisition, Eaton s earnings volatility is near the midpoint of performance for peer diversified industrials The Eaton Business System powers our integrated operating model, and will drive the integration of Cooper Strong EPS accretion from year one; exceeding original estimates Our dividend provides a yield in the top half of our peers, and for U.S. shareholders the majority is expected to be treated as a return of capital over the medium term Performance in 2013 is more dependent on execution than on global growth 40