Te Connectivity Plc · NYSE:TEL
Te Connectivity — Q3 2020 Earnings Presentation
34 slides from Te Connectivity's earnings presentation, Jul 29, 2020
Slide 1: Third Quarter 2020 Earnings
EVERY CONNECTION COUNTS TE Connectivity Third Quarter 2020 Earnings July 29, 2020
Slide 2: Forward-Looking Statements
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Forward-Looking Statements This presentation contains certain "forward-l
Slide 3: Q3 Summary
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Q3 Summary Sales of $2.5B, better than expectations; Adjusted EPS of $0.
Slide 4: Strong backlog and improving order trends support sequential growth in Q4
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Strong backlog and improving order trends support sequential growth in Q
Slide 5: Q3 to Q4 Sequential Sales Growth
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. $2.5 B Q3 2020 Q4 2020 • Auto production expected to increase ~40% from
Slide 6: Transportation Solutions
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Transportation Solutions $1,968 $1,255 Q3 2019 Q3 2020 • Automotive sale
Slide 7: Industrial Solutions
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Industrial Solutions $1,005 $865 Q3 2019 Q3 2020 Y/Y Growth Rates Report
Slide 8: Communications Solutions
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. $416 $428 Q3 2019 Q3 2020 Reported Up 3% Organic Up 4% Y/Y Growth Rates
Slide 9: Q3 Financial Summary
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Q3 Financial Summary ($ in Millions, except per share amounts) Q3 FY19 Q
Slide 10: Q3 Financial Performance
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Q3 Financial Performance $928 $834 YTD 2019 YTD 2020 $3,389 $3,195 $2,54
Slide 11: Expectations Going Forward
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Expectations Going Forward • Expect Q4 sales to grow ~10% from Q3 low po
Slide 12: Additional Information
EVERY CONNECTION COUNTS Additional Information
Slide 13: Free Cash Flow & Liquidity
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. $64 $69 $243 $223 $344 $311 $443 $515 $280 $670 $688 2018 2019 2020 Q1 Q
Slide 14: Y/Y Q3 2020 Sales and Adjusted EPS
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Y/Y Q3 2020 Adjusted EPS is a non-GAAP financial measure; See Appendix f
Slide 15: Free Cash Flow and Working Capital
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. ($ in Millions) Q3 2019 Q3 2020 Beginning Cash Balance $565 $796 Free Ca
Slide 16: Appendix
EVERY CONNECTION COUNTS Appendix
Slide 17: Non-GAAP Financial Measures
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. 17 Non-GAAP Financial Measures We present non-GAAP performance and liqui
Slide 18: Non-GAAP Financial Measures (continued)
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. 18 • Adjusted EBITDA and Adjusted EBITDA Margin - represent net income (
Slide 19: Segment Summary
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Segment Summary 19 Transportation Solutions $ 1,255 $ 1,968 $ 4,980 $ 5,
Slide 20: Reconciliation of Net Sales Growth
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Net Sales Growth 20 Transportation Solutions (3): Auto
Slide 21: Reconciliation of Non-GAAP Measures, Quarter Ended June 26, 2020
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
Slide 22: Reconciliation of Non-GAAP Measures, Quarter Ended June 28, 2019
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Operating income: Transportation Solutions $ 308 $ 6 $ 53 $ - $ 367 Indu
Slide 23: Reconciliation, Nine Months Ended June 26, 2020
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
Slide 24: Reconciliation, Nine Months Ended June 28, 2019
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
Slide 25: Reconciliation, Quarter Ended March 27, 2020
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
Slide 26: Reconciliation, Quarter Ended September 27, 2019
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
Slide 27: Reconciliation of Non-GAAP Measures, Fiscal 2019
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Acquisition- Related Charges Restructuring and Other and Other Tax Adjus
Slide 28: Reconciliation of Free Cash Flow
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Free Cash Flow 28 Net cash provided by operating activ
Slide 29: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin 29 Net inco
Slide 30: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin 30 Net inco
Slide 31: Adjusted Return on Invested Capital (ROIC)
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Adjusted Return on Invested Capital (ROIC) 31 Operating income (loss) $
Slide 32: Reconciliation of Free Cash Flow
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Free Cash Flow 32 June 26, March 27, December 27, Sept
Slide 33: Ratio of Consolidated Total Debt to Consolidated EBITDA
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Ratio of Consolidated Total Debt to Consolidated EBITDA (as defined in t
Slide 34: Reconciliation of Forward-Looking Non-GAAP Financial Measures
© 2020 TE Connectivity. Confidential & Proprietary. Do not reproduce or distribute externally including non-authorized representatives and distributors. Create a sustainable future by limiting print copies, and recycling paper. Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward