Bank of America Merrill Lynch Global Industrials & EU Autos Conference 2015 Richard H. Fearon – Vice Chairman and Chief Financial and Planning Officer March 17, 2015

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Forward Looking Statements and NonGAAP Financial Information The information provided today will include forward-looking statements relating to our goals and estimates for future years, including statements about acquisition synergies, capital expenditures, operating earnings per share, cash flow, segment margins, our worldwide markets, our anticipated effective income tax rate 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.

© 2015 Eaton. All Rights Reserved..

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Eaton – A Power Management Leader • Power management strategy is working • Leading Electrical franchise with a successful Cooper integration nearing completion • Industrial businesses are well positioned for growth • Strong margin, cash flow and attractive capital deployment alternatives strengthen prospects • Outlook

© 2015 Eaton. All Rights Reserved..

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Eaton is a premier power management company… We are uniquely positioned to provide reliable, efficient, safe and sustainable power management solutions for critical markets Cities & Buildings

Infrastructure

Energy & Utilities

Information Technology

Electrical

Industrial & Machinery

Fluid

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Transportation

Mechanical

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…consisting of leading global power management businesses 2014 Sales % of Sales

Electrical Sector $7.3B

Products

32% Providing comprehensive solutions from generation to the end user

Systems & Services

$6.5B

29%

Hydraulics

$3.0B

13%

Aerospace

$1.9B

8%

Serving global OEMs, airlines and governments

18%

Delivering solutions to the global commercial vehicle and passenger car markets

Industrial Sector

Vehicle

$4.0B $22.6B total

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Bringing a broad product portfolio to diverse global end markets

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We have aggressively executed our strategy Goals

Strategy

Actions Since 2000

• Invested $5.5 billion in research & development • Higher earnings growth

• Change the business mix

• Reduced volatility

• Upgrade the talent

• Maintain high return on capital

• Run the business better with EBS

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• Deployed $20 billion of capital to acquire 66 businesses, markedly changing the mix • Divested businesses with sales of over $1.5 billion

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Our strategy has resulted in a balanced business that serves diverse markets Electrical

61%

Segment

Early

Cycle

Aerospace

Vehicle

13%

8%

18%

Late

Mid

31%

No

29%

29%

Int’l Developed

USA

Country

Hydraulics

11%

Int’l Emerging

52% 25%

23%

End Market

© 2015 Eaton. All Rights Reserved..

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Over the last decade we have driven strong growth… Sales ($B)

Cash from Operations ($B) $3.0

$25

Operating EPS ($) $5.00

$2.5 $20

$2.0

Mix

$15

$4.00

$3.00 $1.5

$5

$2.00

Performance

$10

$1.0

$1.00 $0.5

$0

$0.0 2004

2014

$0.00 2004

2014

2004

2014

Note: Cash from Operations and Operating EPS exclude Q2 2014 litigation settlements and gain from Aerospace divestitures

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…and with the addition of Cooper, we have a less volatile earnings stream EBIT Margin Range

EBIT Growth Volatility

2004-2014

2004-2012

12%

0.4

8%

6%

Volatility of Earnings

10% 0.3

0.2

4%

2%

0.1

0% 0.0 Eaton Stand Alone

PF Eaton and Cooper

Among the most stable in our peer group Notes: Eaton Pro Forma includes Cooper results prior to the acquisition Volatility of earnings is standard deviation of YoY EBIT growth data from Capital IQ © 2015 Eaton. All Rights Reserved..

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We have grown our dividend at a rapid rate… Dividends per Share $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2005

2006

2007

2008

2009

2010

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2011

2012

2013

2014

2015e

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…and continue to aggressively return cash to our shareholders Dividend Yield vs. Peers

Total Cash Returned to Shareholders in 2014 ($M)

2014 Share Repurchases ($M)

as of 3/6/2015

4%

$400

$2,000 $326

3%

$1,600

$300 $225

2%

$650

$1,579

Share Repurchases

Total

$1,200 $929

$200 $800

1%

$99 $100

$400

ABBN SIE EMR ETN SU ROK DOV LR UTX PH HON ITW IR DHR

0%

$0 $0

Dividends Q2:14

Q3:14

Q4:14

In 2014 we returned ~$1.6B to shareholders or 4.4% of our market cap at the beginning of the year

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Over the long-run, we have generated outstanding returns for our shareholders 2000 – Feb. 2015 CAGR* Return Index

Cumulative Shareholder Returns

700 13.8%

600 500

11.5%

400 300 5.4%

200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Eaton Note –

S&P 500

Feb 2015

Peer Group**

** Peer Group represents an equal weighted index of ABB, DHR, DOV, EMR, HON, IR, ITW, LR, PH, ROK, SIE, SU, UTX *CAGR = Calculated using the End Point Methodology Source Data: Capital IQ, Eaton analysis © 2015 Eaton. All Rights Reserved..

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Eaton – A Power Management Leader • Power management strategy is working • Leading Electrical franchise with a successful Cooper integration nearing completion • Industrial businesses are well positioned for growth • Strong margin, cash flow and attractive capital deployment alternatives strengthen prospects • Outlook

© 2015 Eaton. All Rights Reserved..

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Our Electrical businesses deliver solutions for the entire power system

Data Centers

Industrial

Utility

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Commercial / Resi

Machinery

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Our Electrical businesses are balanced both geographically and across key end markets Electrical End Market Mix 2014 Sales $13.7B

Electrical Geographic Mix 2014 Sales $13.7B

Resi 9%

Industrial 23%

Utility 12%

Non-U.S. 45% U.S. 55%

Data Center / IT 15%

Machine Builders 11%

Commercial & Institutional / Gov’t 30%

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The successful integration of Cooper continues to drive significant earnings growth 500

+$115M $475

Synergy profit ($M)

Integration Update 400 +$150M

$360

• The Cooper integration is nearing completion in 2015

300 200 100

• We are close to capturing all sales and cost-out synergies

+$95M $210 $115

0 2013

2014

2015

2016

• By January 2016, we will have fulfilled our commitment to pay down the acquisition debt

Profits from Revenue Synergies Cost Synergies © 2015 Eaton. All Rights Reserved..

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Cost synergies come from five main areas and are approaching mature levels EBS Plant & Distribution

Rationalization projects on-schedule

Application of EBS Tools

Implementation of tools proceeding per plan

Supply Chain Leveraging Eaton’s Economies of Scale Infrastructure

Leveraging common spend Consolidating indirect spend

Successful disposition of excess properties

Operating SG&A actions ahead of plan

Office consolidation projects complete

Corporate Cost Reduction

All actions completed IT and data center migrations ahead of schedule

Leveraging distribution footprint to reduce freight costs

60% complete

70% complete

70% complete

90% complete

100% complete

Note: percentages indicate cost synergies completed. Balance of work is underway and will be finished by year end. © 2015 Eaton. All Rights Reserved..

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Sales synergies come from four main areas

Boost Channel Sales

Larger Package to Common Customers

Service Business

Completed the rollout of a new distributor program to channel partners (EDAP)

Implemented integrated selling organizations on a global basis

Coupled service offers to all Industrial, Commercial and Utility quotations and projects

Launched new channel web portal tools (MyEaton)

Added resources to focus on global accounts and key EPC firms

Rolled out a service channel module to key distributors

75% of total 2016 sales synergies

Geographic Expansion Integrated selling, service, and channel activities in key regions

Enhanced and expanded Eaton Tech Days in Asia, Africa, and the Middle East

25% of total 2016 sales synergies

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Eaton – A Power Management Leader • Power management strategy is working • Leading Electrical franchise with a successful Cooper integration nearing completion • Industrial businesses are well positioned for growth • Strong margin, cash flow and attractive capital deployment alternatives strengthen prospects • Outlook

© 2015 Eaton. All Rights Reserved..

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Our Hydraulics business serves large and diverse end markets 2014 Sales of $3.0B

Market Mix

Business Mix Other

• 65% Mobile Equipment

Construction & Mining

• 35% Stationary Equipment • 50% Direct

Processing

• 50% Through Distribution Why We Like Hydraulics

Material Handling

Agriculture

Manufacturing

• Large $40B global and diverse market

Commercial Vehicles

Energy

• Broad product portfolio • Positioned to outgrow end markets Expected 2015 operating margin of 12.1% to 12.7% © 2015 Eaton. All Rights Reserved..

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Hydraulics is addressing short-term market conditions and is positioned to capitalize on growth opportunities Addressing Softer Markets

Investing in Key Technologies

Growing Aftermarket

•

Market mix: 70% stable, 30% cyclical

•

Launching industry leading technologies

•

$12B market opportunity; 3% CAGR

•

Key actions to improve profitability through cycles

•

Leveraging Eaton’s electrical and hydraulic expertise

•

One third of 2014 sales

•

$18B installed base of Eaton products

•

Business is both profitable and stable

•

Key actions

• • •

•

Investing to grow in stable end markets Improving product mix Reducing fixed costs and optimizing our global footprint 2014 and 2015 restructuring actions

Margins Through the Cycle 13-14%*

15-16%

Current point in the cycle

17%+

•

Targeting new solutions for machine OEM market • •

$4B market; 3% CAGR $720M market opportunity

• • •

Variable Speed Drive Solutions for MOEM

Localizing products Building service capabilities Adding channel partners

Mining in Australia On-site 24/7 service

*Excluding restructuring

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Our Aerospace business is balanced across market segments and diverse platforms 2014 Sales of $1.9B

Market Mix Other OE

Business Mix • 65% Commercial / 35% Military

Military Aftermarket

Commercial OEM

• 65% New Aircraft / 35% Aftermarket Commercial Aftermarket

Why We Like Aerospace • Steady market growth

Military OEM

• Long-cycle industry • Advantageous technology position

Expected 2015 operating margin of 15.1% to 15.7%

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Winning technologies and aftermarket focus will drive profitable growth on both legacy and new platforms Increasing Content on Next Generation Platforms 4x B767

Commercial Transport

B787

7x

•

Driving more than $3B in recent wins

•

Commercial Transport •

UH-60 CH-53K

F-18

Pure Power engine seals improve fuel efficiency and extend life cycle on 777X, a $620M opportunity

•

Military Rotorcraft

2x

•

8x

•

Optimized subsystems to improve engine buildup on A350-1000, a $425M opportunity

Regional Jets Hydraulic system advantages in quality and reliability on E2 jet, a $400M opportunity

Business Jets

•

$4B global market; 2.5% CAGR

•

Aggressive focus on: • •

Military Fighters

F-35

Growing Aftermarket

Launching New Technologies

•

Improving operational performance Dedicated Aftermarket organization Driving modifications and upgrades

Aftermarket Sales 7% CAGR

Falcon Falcon 5X 900

6x ERJ 170/190

Regional Jets E2

Prior platforms

New OE platforms

•

Military Tanker Closed loop system optimizes fuel flow on KC-46A, a $300M opportunity

2014

2018

$120M in outgrowth by 2018 *Photo provided by GE Aviation

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Our Vehicle Group provides targeted solutions for both commercial and passenger markets 2014 Sales of $4.0B

Market Mix Other Ag / Off Highway

Business Mix • Americas: 70%

Pickup and Delivery Passenger

• EMEA: 20%

Vocational

• APAC: 10% Why We Like Vehicle • Regulations create large opportunities for innovation

Line Haul

• Leader in fuel economy and emissions reduction • Positioned to outgrow end markets Expected 2015 operating margin of 17.0% to 17.6% © 2015 Eaton. All Rights Reserved..

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Vehicle Group is focused on four nearterm drivers of market outgrowth Automated Transmissions

Medium Duty Market

• NAFTA heavy-duty market converting to automation

2014 % Automation

Procision Dual Clutch Transmission

2018 % Manual

• Automation growth creates a large market opportunity with 40-50% higher price point than equivalent manual products

• • •

Launching new Medium-duty product Targeted toward Class 6 and 7 markets with improved fuel economy 2014 new business wins of $300M

Engine Technologies • • •

•

Leveraging Alliances

Solutions to help customers meet regulatory requirements Hollow Valves – 10% weight reduction and higher heat tolerance Variable Valve Actuation – improves engine efficiency by adjusting valves for power needs Cylinder Deactivation

• •

Strategic alliances expanding global scope and driving growth Cummins Alliance: SmartAdvantage™ •

• •

© 2015 Eaton. All Rights Reserved..

3-6% better fuel economy

Shaanxi Fast Gear Co., Ltd. joint venture enhances clutch presence in China Nittan joint venture extends our valvetrain reach in Asia

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Eaton – A Power Management Leader • Power management strategy is working • Leading Electrical franchise with a successful Cooper integration nearing completion • Industrial businesses are well positioned for growth • Strong margin, cash flow and attractive capital deployment alternatives strengthen prospects • Outlook

© 2015 Eaton. All Rights Reserved..

26

We expect good margin improvement in 2015, consistent with our long-term trend Segment Operating Margin 20%

+60 bps to +120 bps YoY

18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e Note: Excludes acquisition integration charges © 2015 Eaton. All Rights Reserved..

27

Our cash flow continues to grow rapidly and our cash earnings are strong Cash Earnings Comparison

($B)

Cash from Operations $3

$9

$2

$6

$1

$3

$0

$0

2011

2012

2013

2014*

2015E

2014 Operating EPS

Indicates 2015 guidance range

2015E EBITDA / Share

Notes: Operating EPS excludes Q2 2014 litigation settlements and gain from Aerospace divestitures EBITDA / Share excludes acquisition integration charges

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28

Beginning mid-2015, we expect to have increased cash optionality Significant Cash Generation in Near-Term

Capital Allocation Optionality

Repurchase shares

$4

($B)

…we repurchased $650M (2% of shares outstanding) in 2014

Mid-year 2015 cash optionality

Increase dividend …continue to grow dividends in line with earnings growth

Invest in acquisitions …Cooper expanded our addressable electrical market from ~$125B to ~$195B

$0 Free Cash Flow 2H 2015 through 2016

Dividend Payments

Debt Repayment

Capital optionality © 2015 Eaton. All Rights Reserved..

29

Eaton – A Power Management Leader • Power management strategy is working • Leading Electrical franchise with a successful Cooper integration nearing completion • Industrial businesses are well positioned for growth • Strong margin, cash flow and attractive capital deployment alternatives strengthen prospects • Outlook

© 2015 Eaton. All Rights Reserved..

30

For 2015, organic revenue growth is expected to be 3% - 4% 2015 Organic Revenue Growth

Segment Electrical

3% - 5%

Hydraulics

(2)% - 0%

Aerospace

2% - 4%

Vehicle

5% - 7%

Eaton Consolidated

3% - 4%

© 2015 Eaton. All Rights Reserved..

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2015 Outlook Organic Revenue Growth Forex Segment Margins Corporate pension, interest, and general corporate expenses Tax Rate Operating EPS

3% - 4% (4)%

Elec. Products

17.7% - 18.3%

15.9% - 16.5%

Elec. Systems and Services

14.5% - 15.1%

Hydraulics

12.1% - 12.7%

Aerospace

15.1% - 15.7%

Vehicle

17.0% - 17.6%

$30M - $40M above 2014 levels 9% - 11%

Full Year

$4.75 - $5.05

Q1

$0.95 - $1.05

Operating Cash Flow

$2.7B - $3.1B

Free Cash Flow

$2.0B - $2.4B

CAPEX

2015 Expected Segment Margins

$675M

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Summary Our power management strategy is effective • We are a global power management leader with strong positions in critical markets

Our balance provides stability • Across uneven market conditions, we have produced strong results

We will continue to drive strong earnings growth in a slow growth environment • Our technical vitality and front-end capabilities combined with Cooper synergies are producing results

We are positioned for greater cash redeployment optionality • Growing cash flow and improved cash flow margin provide us with attractive capital allocation alternatives

© 2015 Eaton. All Rights Reserved..

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© 2015 Eaton. All Rights Reserved..

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