From the Chairman

Eaton cares about "doing business right" in meeting the needs of our global customers, employees and communities. How we get our results at Eaton is just as important as the results themselves.

In today's global marketplace, few commitments could be more important. It drives us to design and manufacture innovative products that benefit both our customers and the environment. It enables us to attract outstanding people who wish to work for a company that lives its values. It helps us build a more profitable business, while building the respect and trust of key stakeholders all over the world.

Importantly, in doing business right, we are committed to operating sustainable businesses. Companies that master sustainability - and leverage it as a competitive advantage - will emerge as the leaders in the coming decade. Throughout our company, Eaton people are developing solutions that drive sustainable growth, such as efficiently using and conserving global resources, developing energy-efficient products, and protecting the environment and the health and safety of our employees and communities.

Eaton is working to apply sustainability beyond complying with government regulations. Sustainability is designed into our products and production processes right from the start at our innovation centers around the world. And we are committed to being a global leader in protecting the environment, our people and our communities everywhere we operate through four key initiatives:

• Continuously improving our environmental, health and safety (EHS) performance worldwide, including the reduction of greenhouse gas (GHG) emissions.
   
• Increasing the transparency of our efforts through public reporting of key data.
   
• Operating sustainable businesses.
   
• Making Environment, Health and Safety a value-added process for all stakeholders.

Our commitment to sustainability extends to innovative products and services that help our customers manage electrical, hydraulic and mechanical power more efficiently, and improve environmental performance. These include hybrid electric and hydraulic powertrains that boost fuel economy and reduce particulate and GHG emissions in trucks, buses and service vehicles; electrical power control systems for the efficient use of electric power; high-pressure hydraulic aircraft systems that reduce weight and improve fuel efficiency; automotive superchargers for enhanced fuel efficiency; and many others.

Every day, Eaton employees around the world make individual decisions that strengthen our reputation and commitment to sustainability, and send an important and consistent message to our partners about doing business right - everywhere we do business. This demonstration of our core values is as fundamental to Eaton as our name, and will continue to be one of the strongest ways we differentiate our company to our many stakeholders around the world.

Alexander M. Cutler
Chairman and Chief Executive Officer