Slide 1: TE Connectivity Fourth Quarter 2022 Earnings
EVERY CONNECTION COUNTS TE Connectivity Fourth Quarter 2022 Earnings November 2, 2022
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward - Looking Statements and Non - GAAP Financial Measures 2 Forward - Looking Statements This presentation contains certain "forward - looking statements" within the meaning of the U.S. Private Securities Litigation Ref orm Act of 1995. These statements are based on management's current expecta
Slide 3: Earnings Highlights
Earnings Highlights Q4 Sales & Adjusted EPS above expectations; double digit organic growth in each segment • Sales of $4.4B, up 14% Y/Y on a reported 14 - week basis • Orders of $4.3B; book to bill of 0.98 • Adjusted Operating Margins of 17.4%, with Adjusted EPS of $1.88, up 11% Y/Y • Generated rec
Slide 4: Segment Orders Summary
Reported FY21 FY22 FY22 Q4 Y/Y Growth Q4 Q3 Q4 * 13 week Reported 13 week Organic Transportation 2,349 2,303 2,510 (1)% 8% Industrial 1,140 1,320 1,258 4% 4% Communications 647 575 504 (27)% (28)% Total TE 4,136 4,197 4,272 (4)% 1% Book to Bill 1.08 1.02 0.98 Segment Orders Summary ($ in millions) 4
Slide 5: Transportation Solutions
Transportation Solutions $2,198 $2,447 Q4 2021 Q4 2022 • Automotive organic growth across all regions. Continue to increase content per vehicle through our global leadership position in electric vehicles • Commercial Transportation growth driven by North America and Europe. Significant market outper
Slide 6: Industrial Solutions
Industrial Solutions $1,017 $1,252 Q4 2021 Q4 2022 Y/Y Growth Rates Reported 14 Week Organic 13 Week Organic Industrial Equipment $521 35% 30% 20% Aerospace , Defense and Marine 313 21% 29% 20% Energy 225 16% 25% 16% Medical 193 8% 10% 3% Industrial Solutions $1,252 23% 25% 16% Margin performance dr
Slide 7: Communications Solutions
$603 $660 Q4 2021 Q4 2022 Reported Up 10% Organic Up 10% • Dat a & Devices outperformance driven by content growth and share gains in high - speed data and AI applications enabling improved data center energy efficiency • Appliances organic decline reflects moderation in end market Note: Comments ba
Slide 8: Q4 Financial Summary
Q4 Financial Summary ($ in Millions, except per share amounts) Q4 FY21 Q4 FY22 Net Sales $ 3,818 $ 4,359 Operating Income $ 660 $ 660 Operating Margin 17.3% 15.1% Acquisition - Related Charges 8 15 Restructuring & Other Charges, Net 38 82 Adjusted Operating Income $ 706 $ 757 Adjusted Operating Marg
Slide 9: Financial Performance
Financial Performance $14,923 $16,281 FY21 FY22 $6.51 $7.33 FY21 FY22 Adjusted EBITDA Margin 23.3% 23.0% 18.1% 18.2% FY21 FY22 Adjusted Operating Margin, Adjusted EPS, Adjusted EBITDA Margin and Free Cash Flow are non - GAAP financial measures: see Appendix for descriptions and reconciliations. Sale
Slide 10: Additional Information
EVERY CONNECTION COUNTS Additional Information
Slide 11: Q4 2022 Sales and Adjusted EPS Bridge
Y/Y Q4 2022 FX includes $10M unfavorable currency impact to sales from acquisitions Adjusted EPS is a non - GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q4 2021 Results $3,818 $1.69 Operational Performance 889 0.26 FX Impact (348) (0.08) T
Slide 12: FY 2022 Sales and Adjusted EPS Bridge
Y/Y FY 2022 FX includes $40M unfavorable currency impact to sales from acquisitions Adjusted EPS is a non - GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS 2021 Results $14,923 $6.51 Operational Performance 2,121 0.95 FX Impact (763) (0.14) T
Slide 13: Q1 2023 Guidance Bridge
Y/Y Q1 2023 Adjusted EPS is a non - GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q1 2022 Results $3,818 $1.76 Operational Performance 332 (0.01) FX Impact (400) (0.19) Tax Rate Impact - (0.06) Q1 2023 Guidance $3,750 $1.50 13
Slide 14: Free Cash Flow and Working Capital; Liquidity, Cash and Debt
($ in Millions) FY21 FY22 Beginning Cash Balance $945 $1,203 Free Cash Flow 2,081 1,783 Dividends (647) (685) Share repurchases (831) (1,412) Net increase (decrease) in debt (47) 400 Acquisition of businesses, net of cash acquired (423) (220) Other 125 19 Ending Cash Balance $1,203 $1,088 Total Debt
Slide 15: Appendix
EVERY CONNECTION COUNTS Appendix
Slide 16: Non-GAAP Financial Measures
16 Non - GAAP Financial Measures We present non - GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financ ial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non - GAAP f
Slide 17: Non-GAAP Measure Definitions
17 • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financi al measure) before special items including restructuring and other charges, acquisition - related charges, impairment of goodwill, tax sharing income related to ad ju
Slide 18: Segment Summary
Segment Summary 18 Transportation Solutions $ 2,447 $ 2,198 $ 9,219 $ 8,974 Industrial Solutions 1,252 1,017 4,520 3,844 Communications Solutions 660 603 2,542 2,105 Total $ 4,359 $ 3,818 $ 16,281 $ 14,923 Transportation Solutions $ 347 14.2 % $ 387 17.6 % $ 1,534 16.6 % $ 1,526 17.0 % Industrial So
Slide 19: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth 19 Transportation Solutions (3) : Automotive $ 205 13.5 % $ 378 25.2 % $ (173) $ — Commercial transportation 51 13.7 83 22.4 (32) — Sensors (7) (2.3) 15 5.2 (22) — Total 249 11.3 476 21.8 (227) — Industrial Solutions (3) : Industrial equipment 135 35.0 117 30.0 (45
Slide 20: Reconciliation for Quarter Ended September 30, 2022
Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 30, 2022 20
Slide 21: Reconciliation for Quarter Ended September 24, 2021
Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 24, 2021 21 Operating income: Transportation Solutions $ 387 $ 3 $ 5 $ — $ — $ 395 Industrial Solutions 134 4 24 — — 162 Communications Solutions 139 1 9 — — 149 Total $ 660 $ 8 $ 38 $ — $ — $
Slide 22: Reconciliation for Year Ended September 30, 2022
Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2022 22
Slide 23: Reconciliation for Year Ended September 24, 2021
Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 24, 2021 23 Operating income: Transportation Solutions $ 1,526 $ 18 $ 135 $ — $ — $ 1,679 Industrial Solutions 469 15 73 — — 557 Communications Solutions 439 1 25 — — 465 Total $ 2,434 $ 34 $ 233
Slide 24: Reconciliation for Quarter Ended December 24, 2021
Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 24, 2021 24 Operating income: Transportation Solutions $ 395 $ 3 $ (6) $ — $ 392 Industrial Solutions 123 12 22 — 157 Communications Solutions 154 1 8 — 163 Total $ 672 $ 16 $ 24 $ — $ 712 Opera
Slide 25: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow 25 Net cash provided by operating activities $ 944 $ 774 $ 2,468 $ 2,676 Net cash used in investing activities (310) (540) (878) (1,037) Net cash used in financing activities (354) (443) (1,684) (1,386) Effect of currency translation on cash (12) (4) (21) 5 Net incre
Slide 26: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin 26
Slide 27: Adjusted EBITDA Reconciliation by Segment - QTD
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment - QTD 27
Slide 28: Adjusted EBITDA Reconciliation by Segment - YTD
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment - YTD 28
Slide 29: Impact of Additional Week on Net Sales - QTD
Impact of Additional Week on Net Sales - QTD 29
Slide 30: Impact of Additional Week on Net Sales - YTD
Impact of Additional Week on Net Sales - YTD 30
Slide 31: Impact of Additional Week – QTD
Impact of Additional Week – QTD 31
Slide 32: Impact of Additional Week – YTD
Impact of Additional Week – YTD 32
Slide 33: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Reconciliation of Forward - Looking Non - GAAP Financial Measures to Forward - Looking GAAP Financial Measures 33