Slide 1: TE Connectivity Fourth Quarter 2024 Earnings
TE Connectivity Fourth Quarter 2024 Earnings October 30, 2024 EVERY CONNECTION COUNTS
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements operate, including continuing military conflict in certain parts of the world; This presentation contains certain "forward-looking statements" within the developments in the credit markets; future goodwill impairme
Slide 3: Earnings Highlights
Earnings Highlights Q4 Results Exceeded Guidance Sales of $4.1B, up 1% reported and 2% on an organic basis Y/Y Adjusted Operating Margins of 18.6%, up 130bps Y/Y; record Adjusted EPS of $1.95, up 10% Y/Y Free Cash Flow generation of ~$830M in Q4 with ~$950M returned to shareholders FY24 Record
Slide 4: Segment Orders Summary
Segment Orders Summary ($ in millions) FY23 FY24 FY24 Q4 Growth Reported Q4 Q3 Q4 Y/Y Q/Q Transportation 2,418 2,194 2,206 (9)% 1% Transportation sequential order patterns reflecting stability in global auto production with ongoing weakness in Commercial Transportation Industrial 1,058 1,139 1,055
Slide 5: Transportation Solutions
Transportation Solutions $ in Millions Automotive Q4 SALES Q4 BUSINESS PERFORMANCE Organic growth in Asia offset by softness in North America & Europe Reported Y/Y Growth Reported Organic Rates Down 4% $2,413 $2,311 Commercial Automotive $1,704 (3)% (1)% Transportation Organic Organic decline dr
Slide 6: Industrial Solutions
Industrial Solutions $ in Millions Industrial Equipment Decline driven by continued Q4 SALES Q4 BUSINESS PERFORMANCE weakness in end markets Reported Y/Y Growth AD&M Reported Organic Organic growth reflects Up 2% Rates ongoing market improvement Industrial $1,159 $1,180 $346 (11)% (20)% Equipmen
Slide 7: Communications Solutions
Communications Solutions $ in Millions Data & Devices Q4 SALES Q4 BUSINESS PERFORMANCE Strong Y/Y growth driven by momentum in AI Reported applications Up 25% Y/Y Growth Rates Reported Organic $577 Data & Devices $393 34% 35% $463 Appliances Organic Organic growth driven by Up 26% Appliances 184
Slide 8: Q4 Financial Summary
Q4 Financial Summary ($ in Millions, except per share amounts) Q4 FY23 Q4 FY24 Net Sales $ 4,035 $ 4,068 Operating Income $ 635 $ 651 Operating Margin 15.7% 16.0% Acquisition-Related Charges 7 5 Restructuring & Other Charges, Net 57 99 Adjusted Operating Income $ 699 $ 755 Adjusted Operating Margin
Slide 9: Fiscal 2024 Financial Performance
Fiscal 2024 Financial Performance SALES ADJUSTED OPERATING MARGIN $ in Billions 220bps of Organic sales margin flat Y/Y expansion $16.0 18.9% $15.8 16.7% FY23 FY24 FY23 FY24 ADJUSTED EPS FREE CASH FLOW $ in Millions Up 17% Up 12% Y/Y Y/Y driven by $2,813 $7.56 margin $2,404 $6.74 expansion FY23 FY24
Slide 10: Additional Information
Additional Information EVERY CONNECTION COUNTS
Slide 11: Y/Y Q4 2024 Sales and Adjusted EPS
Y/Y Q4 2024 Sales Adjusted EPS (in millions) Q4 2023 Results $4,035 $1.78 Operational Performance 50 0.24 FX Impact (17) - Tax Rate Impact - (0.07) Q4 2024 Results $4,068 $1.95 11 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 12: Y/Y FY 2024 Sales and Adjusted EPS
Y/Y FY 2024 Sales Adjusted EPS (in millions) 2023 Results $16,034 $6.74 Operational Performance (86) 1.21 FX Impact (103) (0.13) Tax Rate Impact - (0.26) 2024 Results $15,845 $7.56 12 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 13: Y/Y Q1 2025 Sales and Adjusted EPS
Y/Y Q1 2025 Sales Adjusted EPS (in millions) Q1 2024 Results $3,831 $1.84 Operational Performance 37 0.04 FX Impact 32 0.04 Tax Rate Impact - (0.04) Q1 2025 Guidance $3,900 $1.88 13 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 14: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash and Debt ($ in Millions) FY23 FY24 ($ in Millions) FY23 FY24 Cash from Operating Activities $3,132 $3,477 Beginning Cash Balance $1,088 $1,661 Free Cash Flow 2,404 2,813 Capital expenditures, net (728) (664) Divid
Slide 15: Appendix
Appendix EVERY CONNECTION COUNTS
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as Organic Net Sales Growth (Decline) – represents net sales Adjusted Income Tax (Expense) Benefit and Adjusted we believe it is appropriate for investors to consider adjusted growth (decline) (the most comparable
Slide 17: Non-GAAP Financial Measures (cont.)
Non-GAAP Financial Measures (cont.) Adjusted EBITDA and Adjusted EBITDA Margin – property, plant, and equipment. These items are subtracted represent net income and net income as a percentage of net because they represent long-term commitments. In the sales, respectively, (the most comparable GAAP
Slide 18: Segment Summary
Segment Summary For the Quarters Ended For the Years Ended September 27, September 29, September 27, September 29, 2024 2023 2024 2023 ($ in millions) Net Sales Net Sales Net Sales Net Sales Transportation Solutions $ 2,311 $ 2,413 $ 9,398 $ 9,588 Industrial Solutions 1,180 1,159 4,481 4,551 Communi
Slide 19: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth Change in Net Sales for the Quarter Ended September 27, 2024 versus Net Sales for the Quarter Ended September 29, 2023 Net Sales Organic Net Sales Acquisition/ Growth (Decline) Growth (Decline) (1) Translation (2) (Divestiture) ($ in millions) Transportation Soluti
Slide 20: Reconciliation of Non-GAAP Measures, Quarter Ended September 27, 2024
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 27, 2024 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) (2) U.S. GAAP Charge s Charge s, Ne t Tax Ite ms (Non-GAAP) (3) ($ in millions, e xce pt pe r share data)
Slide 21: Reconciliation of Non-GAAP Measures, Quarter Ended September 29, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 29, 2023 Adjustments Acquisition- Restructuring Related and Other Adjusted (1) (1) (2) U.S. GAAP Charges Charges, Net Tax Items (Non-GAAP) (3) ($ in millions, except per share data) Operating inc
Slide 22: Reconciliation of Non-GAAP Measures, Year Ended September 27, 2024
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2024 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) (2) U.S. GAAP Charge s Charge s, Ne t Tax Ite ms (Non-GAAP) (3) ($ in millions, e xce pt pe r share data) Op
Slide 23: Reconciliation of Non-GAAP Measures, Year Ended September 29, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 29, 2023 Adjustments Acquisition- Restructuring Related and Other Adjusted (1) (1) (2) U.S. GAAP Charges Charges, Net Tax Items (Non-GAAP) (3) ($ in millions, except per share data) Operating income
Slide 24: Reconciliation of Non-GAAP Measures, Quarter Ended December 29, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 29, 2023 Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) Tax Items (2) (Non-GAAP) (3) ($ in millions, except per share data) Operating inco
Slide 25: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Quarters Ended For the Years Ended September 27, September 29, September 27, September 29, 2024 2023 2024 2023 (in millions) Net cash provided by operating activities $ 1,042 $ 1,138 $ 3,477 $ 3,132 Net cash used in investing activities (206) (195) (950) (768
Slide 26: Free Cash Flow Conversion
Free Cash Flow Conversion For the Ye ars Ende d Se pte mbe r 27, Se pte mbe r 29, 2024 2023 ($ in millions) Free cash flow (1) $ 2,813 $ 2,404 Adjusted income from continuing operations (1) $ 2,337 $ 2,137 Free cash flow conversion (1) 120.4 % 112.5 % (1) See description of non-GAAP financial measur
Slide 27: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Quarters Ended September 27, September 29, 2024 2023 ($ in millions) Net income $ 276 $ 552 Loss from discontinued operations — 1 Income tax expense 381 81 Other expense, net 5 3 Interest expense 15 19 Interest income (26) (21) Ope
Slide 28: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures O utlook for Q uarte r Ending De ce mbe r 27, O utlook for 2024 (1) Fiscal 2025 (1) Diluted earnings per share from continuing operations $ 1.64 Restructuring and other charges, net 0.23 Acquisit