Te Connectivity Plc · NYSE:TEL
Te Connectivity — UBS Global Technology Conference 2015
18 slides from Te Connectivity's conference presentation, November 2015
Slide 1: UBS Global Technology Conference
UBS Global Technology Conference November, 2015 Bob Hau Chief Financial Officer
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures 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 are subject
Slide 3: TE is the World Leader in Connectivity & Sensor Solutions
TE is the World Leader in Connectivity & Sensor Solutions Commercial Transportation Automotive Aerospace & Defense Energy Subsea Communications Medical Oil & Gas Data & Devices Industrial Equipment Appliances $170 BILLION Connectivity and $12+ BILLION TE Annual Sensor Market Revenue Our highly engin
Slide 4: Safe, Green, & Connected Mega Trends Driving Strong Secular Growth
Safe, Green, & Connected Mega Trends Driving Strong Secular Growth Today by 2020 12 BILLION total connected devices 25 BILLION total connected devices Source: Gartner Group Automotive – Electronification driving 4-6% TE content growth/year Sensors – Automotive content opportunity doubles from an ave
Slide 5: Strategy Focused on Expanding Leadership in Harsh Connectivity & Sensing
Strategy Focused on Expanding Leadership in Harsh Connectivity & Sensing Fiscal 2015 Sales TRANSPORTATION SOLUTIONS $6.3B INDUSTRIAL SOLUTIONS Strategic Acquisitions $3.2B • Deutsch – leader in industrial transportation, aerospace, defense • Seacon – leader in oil & gas • Measurement Specialties & A
Slide 6: Multiple Growth Drivers Across our Harsh Portfolio
Multiple Growth Drivers Across our Harsh Portfolio LEADER IN HARSH ENVIRONMENTS High pressure Vibration High-voltage • Connectivity scale opens sensor opportunities Moisture • Unmatched product range High/Low • Major presence in every region HARSH Temperature REVENUE • Integrated functionality UP TO
Slide 7: Track Record of Consistent, Strong Operating Performance
Track Record of Consistent, Strong Operating Performance $ in billions except per share amounts Net Sales Adjusted Earnings Per Share 7% Harsh Sales 13% 29% VS. FY13 VS. FY13 VS. FY13 $12.2 $3.60 $12.0 $3.31 $11.4 $2.79 FY13 FY14 FY15 FY13 FY14 FY15 Adjusted Gross Margin Percentage Adjusted Operatin
Slide 8: Consistent Dividend Growth and Balanced Use of Capital
Consistent Dividend Growth and Balanced Use of Capital Major Capital Deployment** Dividends Per Share*** FY08 through FY15 $ 1.30 $1.24 $ 1.20 $1.08 $ 1.10 $ 1.00 $0.92 16% CAGR $ 0.90 Share $0.78 $ 0.80 Repurchases Acquisitions* $0.68 $ 0.70 $5.4 billion $5.8 billion $ 0.60 $ 0.50 $ 0.40 FY11 FY12
Slide 9: Driving Long Term Shareholder Value
Driving Long Term Shareholder Value • World leader in connectivity and sensor solutions Deliver 5 – 7% • 80% of revenue from harsh environment applications Long-Term Organic • Benefit from megatrends of safe, green, and connected Revenue Growth • Secular trend of electronic content growth across bus
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Measures
Non-GAAP Measures “Organic Sales Growth,” “Adjusted Gross Margin,” “Adjusted Gross Margin Percentage,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted Other Income, Net,” “Adjusted Income Tax Expense,” “Adjusted Effective Tax Rate,” ”Adjusted Income from Continuing Operations,” “
Slide 12: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) Adjusted Income Tax Expense – represents income tax expense (the most comparable GAAP measure) after adjusting for the tax effect of special items including charges related to restructuring and other charges, acquisition related charges, impairment charges, other income or
Slide 13: Reconciliation of Gross Margin and Gross Margin Percentage
Reconciliation of Gross Margin and Gross Margin Percentage For the Years Ended September 25, September 26, September 27, 2015 2014 2012 ($ in millions) Net Sales $ 12,233 $ 11,973 $ 11,390 Cost of Sales 8,146 8,001 7,739 Gross Margin 4,087 3,972 3,651 Gross Margin Percentage 33.4% 33.2% 32.1% Acquis
Slide 14: Reconciliation of Non-GAAP Financial Measures for the Year Ended September 27, 2013
Reconciliation of Non-GAAP Financial Measures for the Year Ended September 27, 2013 Adjustments Acquisition Restructuring Related and O ther Tax Adjusted U.S. GAAP Charges Charges, Net Items (1) (Non-GAAP) (2) ($ in millions, except per share data) Operating Income: Transportation Solutions $ 934 $
Slide 15: Reconciliation of Non-GAAP Financial Measures for the Year Ended September 26, 2014
Reconciliation of Non-GAAP Financial Measures for the Year Ended September 26, 2014 Adjustments Acquisition Restructuring Related and O ther Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) ($ in millions, except per share data) Operating Income: Transportation Solutions $ 1,
Slide 16: Reconciliation of Non-GAAP Financial Measures for the Year Ended September 25, 2015
Reconciliation of Non-GAAP Financial Measures for the Year Ended September 25, 2015 Adjustments Acquisition Restructuring Related and O ther Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) ($ in millions, except per share data) Operating Income: Transportation Solutions $ 1,
Slide 17: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Year Ended September 25, 2015 Net cash provided by continuing operating activities $ 1,619 Capital expenditures, net (583) Payments (receipts) related to pre-separation U.S. tax matters, net 40 Free cash flow (1) $ 1,076 (1) See description of non-GAAP measur
Slide 18: Every Connection Counts
EVERY CONNECTION COUNTS www.TE.com
TE Connectivity — UBS Global Technology Conference 2015 on 6ix