Te Connectivity Plc · NYSE:TEL
Te Connectivity — Merger or Acquisition (November 2011)
11 slides from Te Connectivity's merger presentation, Nov 29, 2011
Slide 1: TE Connectivity to Acquire Deutsch
TE Connectivity to Acquire Deutsch November 29, 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 current expectations and are subject to risks, uncertainty and changes in ci
Slide 3: Deutsch Overview
Deutsch Overview Key Metrics Key Products Deutsch is a leading supplier of interconnect products for harsh environments. Segments include industrial transportation, commercial aerospace, military, rail and offshore oil and gas. Deutsch was founded in 1938 and is owned by the Wendel Group. Overview C
Slide 4: Fills Key Product Gaps; Expands Our Portfolio for Harsh Environments
Fills Key Product Gaps Expands Our Portfolio for Harsh Environments TE Segment Transportation Solutions Communications & Industrial Solutions Industry Aerospace & Defense Industrial Transportation Industrial Equipment Application Commercial Aerospace Military Offshore Truck Agriculture Construction
Slide 5: Industrial Transportation Applications
Industrial Transportation Applications Engine Control Unit 1 Engine / Sensor connectors 2 1 2 3 4 Agriculture Vehicles 1 3 4 2 Construction Equipment 1 2 3 4 Heavy Trucks Chassis / in-line connectors 3 Bulkhead connectors 4
Slide 6: Aerospace and Defense Applications
Engine Aerospace and Defense Applications 1 Airframe 2 Avionics 3 Landing gear 4 1 2 4 Commercial Aircraft Military Aircraft 1 2 3 Helicopters Weapon systems 5 1 3 5 2 3
Slide 7: Marine and Offshore Applications
Marine and Offshore Applications Subsea equipment 4 Down-hole 5 1 3 5 2 4 4 1 Seismic 2. Topside 3 Tree
Slide 8: Transaction Summary
Transaction Summary Enterprise Value €1.55 billion ~$2.06 billion at current exchange rates “Effective” net purchase price of ~$1.8 billion (~$250 million of NPV related to tax attributes and synergies) Financing Expect ~50% cash and ~50% new debt Expect to pay off existing TE debt of ~$700 million
Slide 9: Synergies and Expected Accretion
Target Today Organic Sales CAGR Synergies Leverage of combined global supply chain TEOA / Lean Purchasing Optimize go-to-market and G&A Operating Efficiencies Expand Deutsch product sales through TE’s customer base Expand TE’s product sales through Deutsch’s customer base Complementary technologies
Slide 10: Summary
Summary The proposed acquisition of Deutsch and its products for harsh environment applications is complementary to TE’s existing portfolio and expands our capability to offer a complete range of connectivity solutions TE’s customer base, geographic presence, and sales and engineering strength is ex
Slide 11: Non-GAAP Measures
Non-GAAP Measures The forecasted earnings per share amount, as adjusted, that is set forth in this presentation is a non-GAAP (U.S. generally accepted accounting principles) measure and should not be considered a replacement for GAAP results. The company uses diluted earnings per share from continui
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