Slide 1: Tyco Electronics and ADC: Creating A Leading Global Provider of Broadband Connectivity
Tyco Electronics and ADC: Creating A Leading Global Provider of Broadband Connectivity July 13, 2010
Slide 2: Forward-Looking Statements / Non-GAAP Measures / Additional Information and Where To Find It
Forward-Looking Statements / Non-GAAP Measures / Additional Information and Where To Find It Page 2 This presentation contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management’s cur
Slide 3: Acquisition of ADC Creates a World Leader in Broadband Connectivity The combination of Tyco
Acquisition of ADC Creates a World Leader in Broadband Connectivity The combination of Tyco Electronics and ADC creates a world leading product range in broadband network connectivity enabling every connection point in the network. Data traffic continues to grow, and is expected to quadruple over th
Slide 4: Acquisition Will Be a Significant Contributor to TE Earnings Growth Expected to be accretive
Acquisition Will Be a Significant Contributor to TE Earnings Growth Expected to be accretive to earnings by ~$0.14 per share in year 1, excluding acquisition-related costs Significant cost synergies Expect ADC to achieve company target operating margin of 15% in year 3 Continue to maintain a strong
Slide 5: A Full Range of Broadband Connectivity Products and Services Page 5 Data Center &
A Full Range of Broadband Connectivity Products and Services Page 5 Data Center & Enterprise Networks Fiber & Copper Infrastructure Central Office Source: Company web-site, team analysis Copper Connectivity Fiber Management Cat 6A Cabling Shielded Unshielded Optical Distribution Frames NA ROW Splitt
Slide 6: Creating Strong Leadership Positions in All of Our Connectivity Businesses Leverage technology across the
Creating Strong Leadership Positions in All of Our Connectivity Businesses Leverage technology across the company Increase investment in R&D Reinvigorate the channel Strategic acquisitions Page 6 Accelerating Growth 8 – 10% Annual Growth 15%+ Operating Margins* Free Cash Flow Approximates Net Income
Slide 7: Transaction Summary Page PRICE: $12.75 per share; $1.25B enterprise value CONSIDERATION: All-cash offer TRANSACTION
Transaction Summary Page 7 PRICE: $12.75 per share; $1.25B enterprise value CONSIDERATION: All-cash offer TRANSACTION STRUCTURE: Tender offer followed by merger ACCRETION: Accretive to earnings by ~$0.14 per share, excluding acquisition-related costs, in year 1; expect performance at target operatin
Slide 8: Q3 FY10 Preliminary Results Sales increase of 23% versus prior year, up 4% sequentially
Q3 FY10 Preliminary Results Sales increase of 23% versus prior year, up 4% sequentially Organic sales growth of 24% versus prior year, up 7% sequentially* Industrial/ Infrastructure markets up 13% sequentially excluding Subsea Communications Consumer markets up 6% sequentially Subsea Communications
Slide 9: A Compelling Acquisition A great fit as we continue to execute our strategy to
A Compelling Acquisition A great fit as we continue to execute our strategy to create leadership positions in all our connectivity businesses The combination creates an industry leader with the scope and geographic scale to help customers deliver needed capacity Expected to be accretive to earnings
Slide 10: Q & A
Q & A
Slide 11: Appendix
Appendix
Slide 12: Non-GAAP Measures “Organic Sales Growth,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted Diluted…
Non-GAAP Measures “Organic Sales Growth,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted Diluted Earnings Per Share,” and “Free Cash Flow” (FCF) are non-GAAP measures and should not be considered replacements for GAAP* results. “Organic Sales Growth” is a useful measure used by
Slide 13: Non-GAAP Measures (cont.) “Free Cash Flow” (FCF) is a useful measure of the company’s
Non-GAAP Measures (cont.) “Free Cash Flow” (FCF) is a useful measure of the company’s cash generation which is free from any significant existing obligation. The difference between cash flows from operating activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly