Slide 1: 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 Reform Act of 1995. These statements are based on management’s current expectations and
Slide 2: Q2 Highlights
Results above guidance driven by strong performance in the Industrial and Communication Segments Sales of $3.4B, down 4% on a reported basis and down 1% organically Y/Y Transportation down 3% organically, in line with guidance, driven by Auto production declines Industrial grew 5% organically, ahead
Slide 3: Segment Orders Summary
Reported FY18 FY19 FY19 Q2 Y/Y Growth Q2 Q1 Q2 Reported Organic Transportation 2,139 1,916 1,949 (9)% (4)% Industrial 1,048 1,001 1,067 2% 3% Communications 492 403 441 (10)% (7)% Total TE 3,679 3,320 3,457 (6)% (3)% Book to Bill 1.03 0.99 1.01 Segment Orders Summary ($ in millions) 4 Q2 orders as e
Slide 4: Transportation Solutions
Y/Y Growth Rates Reported Organic Automotive $1,425 (9)% (5)% Commercial Transportation 324 (3)% 2% Sensors 222 (4)% 1% Transportation Solutions $1,971 (8)% (3)% $ in Millions Q2 Sales Q2 Business Performance Reported Down 8% Organic Down 3% Q2 Adjusted Operating Margin Transportation Solutions 5 Ad
Slide 5: Industrial Solutions
Y/Y Growth Rates Reported Organic Aerospace, Defense and Marine $331 11% 13% Industrial Equipment 502 1% 1% Energy 174 (2)% 4% Industrial Solutions $1,007 4% 5% $ in Millions Q2 Sales AD&M up double digits organically; strong growth ahead of market driven by new program ramps across the business Ind
Slide 6: Communications Solutions
Y/Y Growth Rates Reported Organic Data & Devices $251 (3)% 0% Appliances 183 (8)% (4)% Communications Solutions $434 (5)% (2)% $ in Millions Q2 Sales Data & Devices flat organically, with underlying growth in data center applications offset by declines of product sales in Asia Appliances impacted by
Slide 7: Q2 Financial Summary
*Represents Diluted Earnings Per Share from Continuing Operations **Includes income tax expense associated with the tax impacts of certain legal entity restructurings and intercompany transactions. Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP financial measures;
Slide 8: Q2 Financial Performance
$ in Millions Sales Adjusted EPS Adjusted Operating Margin Free Cash Flow, Adjusted Operating Margin and Adjusted Earnings Per Share are non-GAAP financial measures; see Appendix for descriptions and reconciliations. Q2 Financial Performance 9 Free Cash Flow Q2 FY19 FX headwind of $154M Y/Y 17.7% 16
Slide 9: Q3 Outlook
Guidance* Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $3.4B to $3.5B Adjusted EPS $1.41 to $1.45 Sales down 4% reported and 1% organic Y/Y Adjusted EPS up $.01 Y/Y at the midpoint FX headwind impacting sales by $120M Y/Y and Adjusted EPS by
Slide 10: FY19 Outlook
Demonstrating resiliency in weaker markets Sales of $13.55B to $13.75B Adjusted EPS of $5.55 to $5.65 Sales down 2% reported and flat organic Y/Y Adjusted EPS up low-single digits excluding headwind from: FX impacting Sales by ~$400M and Adjusted EPS by $0.16 Down Low Single Digits Flat Organic Down
Slide 11: FY19 Outlook
FY19 Outlook Guidance* Highlights Transportation Down Low Single Digits Flat Organic Industrial Solutions Up Low Single Digits Up Low Single Digits Organic mmunications Down Low Single Digits Solutions Down Low Single Digits Organic Sales of $13.55B to $13.75B Adjusted EPS of $5.55 to $5.65 TE Conne
Slide 12: Q2 2019 Sales and Adjusted EPS Bridge
Y/Y Q2 2019 13 Sales (in millions) Adjusted EPS Q2 2018 Results $3,562 $1.42 Operational Performance 4 0.03 FX Impact (154) (0.06) Tax Rate Impact - 0.03 Q2 2019 Results $3,412 $1.42 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation.
Slide 13: Q3 2019 Sales and Adjusted EPS Bridge
Y/Y Q3 2019 14 Sales (in millions) Adjusted EPS Q3 2018 Results $3,581 $1.42 Operational Performance (11) 0.09 FX Impact (120) (0.06) Tax Rate Impact - (0.02) Q3 2019 Guidance $3,450 $1.43 Guidance Range: Sales of $3.4B - $3.5B Adjusted EPS of $1.41 – $1.45 Adjusted EPS is a non-GAAP financial measu
Slide 14: FY 2019 Sales and Adjusted EPS Bridge
Y/Y FY 2019 15 Guidance Range Sales of $13.55B - $13.75B Adjusted EPS of $5.55 - $5.65 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS 2018 Results $13,988 $5.61 Operational Performance 62 0.18 FX Impact (400) (0.16) Tax
Slide 15: Q2 Balance Sheet & Cash Flow Summary
($ in Millions) Q2 2018 Q2 2019 Beginning Cash Balance $704 $505 Free Cash Flow 223 344 Dividends (140) (149) Share repurchases (214) (220) Net increase (decrease) in debt (16) 27 Other 2 58 Ending Cash Balance $559 $565 Total Debt $4,010 $3,982 A/R $2,528 $2,463 Days Sales Outstanding* 64 65 Invent
Slide 16: Q2 Balance Sheet & Cash Flow Summary
Q2 Balance Sheet & Cash Flow Summary (Sinton 22018 Cash from Continuing Operations $362 Capital expenditures, net (198) Cash (collected) paid pursuant to collateral al requirements related to cross-currency swaps, Pre-separation tax receipts, net ® Free Cash Flow $223 AR $2,528 Days Sales Outstandin
Slide 17: Description of Non-GAAP Measures
18 Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financia
Slide 18: Description of Non-GAAP Measures
19 Adjusted EBITDA and Adjusted EBITDA Margin - represent net income and net income as a percentage of net sales, respectively, (the most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net other income, inco
Slide 19: Segment Summary
20 Segment Summary Net Sales Net Sales Net Sales Net Sales Transportation Solutions 1,971 $ 2,134 $ 3,957 $ 4,166 $ Industrial Solutions 1,007 972 1,935 1,854 Communications Solutions 434 456 867 878 Total 3,412 $ 3,562 $ 6,759 $ 6,898 $ Operating Operating Operating Operating Operating Operating Op
Slide 20: Net Sales Growth Q2 vs. Q2
Reconciliation of Net Sales Growth – Q2 19 vs. Q2 18 21 Translation (2) Acquisition Transportation Solutions (3) : Automotive (146) $ (9.3)% (70) $ (4.6)% (76) $ - $ Commercial transportation (9) (2.7) 6 1.6 (15) - Sensors (8) (3.5) 2 1.0 (10) - Total (163) (7.6) (62) (2.9) (101) - Industrial Soluti
Slide 21: Reconciliation: Quarter Ended March 29, 2019
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 29, 2019 22 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating income: Transportation Solutions 316 $ 4 $ 24 $ - $ 344
Slide 22: Reconciliation: Quarter Ended March 30, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 30, 2018 23 Restructuring Acquisition and Other Related Charges Adjusted U.S. GAAP Charges (1) (Credits), Net (1) (Non-GAAP) (2) Operating income: Transportation Solutions 427 $ 2 $ (2) $ 427 $ Indus
Slide 23: Reconciliation: Six Months Ended March 29, 2019
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 29, 2019 24 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating income: Transportation Solutions 648 $ 7 $ 45 $ - $ 7
Slide 24: Reconciliation: Six Months Ended March 30, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 30, 2018 25 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating income: Transportation Solutions 844 $ 7 $ 2 $ - $ 85
Slide 25: Reconciliation: Quarter Ended June 29, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 29, 2018 26 Acquisition Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) (Non-GAAP) (2) Operating income: Transportation Solutions 393 $ 2 $ 11 $ 406 $ Industrial Soluti
Slide 26: Reconciliation: Quarter Ended December 28, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 28, 2018 27 Acquisition Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) (Non-GAAP) (2) Operating income: Transportation Solutions 332 $ 3 $ 21 $ 356 $ Industrial So
Slide 27: Reconciliation: Year Ended September 28, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 28, 2018 28 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating income: Transportation Solutions 1,578 $ 12 $ 33 $ - $
Slide 28: Free Cash Flow
Reconciliation of Free Cash Flow 29 March 29, March 28, March 29, March 28, 2019 2018 2019 2018 Net cash provided by operating activities: Net cash provided by continuing operating activities 555 $ 362 $ 883 $ 645 $ Net cash provided by (used in) discontinued operating activities 1 15 (30) 82 556 37
Slide 29: Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA Margin 30 March 29, March 30, 2019 2018 Net income 439 $ 490 $ Income from discontinued operations, net of income taxes (10) - Income tax expense 91 108 Other income, net (1) (1) Interest expense 15 28 Interest income (4) (4) Operating income 530 621 Acquisition rel
Slide 30: Adjusted Return on Invested Capital (ROIC)
Adjusted Return on Invested Capital (ROIC) 31 March 29, December 28, September 28, June 29, March 30, December 29, September 29, June 30, 2019 2018 2018 2018 2018 2017 2017 2017 Operating income 530 $ 484 $ 570 $ 554 $ 621 $ 586 $ 491 $ 486 $ Acquisition related charges 9 6 5 5 5 7 1 4 Restructuring
Slide 31: Reconciliation to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures Oattook for Quarter Ending June 28, Outlook for 20198" Fiscal 2019 0 Dilutedearnings per share from continuing operations (GAAP) SLB-STIT SANS S498 Resinucturing and other charges, net 026 035 Ac