Te Connectivity Plc · NYSE:TEL
Te Connectivity — Investor Day (December 2017)
74 slides from Te Connectivity's investor day presentation, Dec 13, 2017
Slide 1: 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 2: The Opportunity Has Never Been Greater
THE OPPORTUNITY HAS NEVER BEEN GREATER We’ve built a portfolio with competitive advantage. The key elements to driving exciting shareholder value are in place. TERRENCE CURTIN, CEO
Slide 3: Investor Day Agenda & Key Presenter Messages
INVESTOR DAY AGENDA & KEY PRESENTER MESSAGES TRANSPORTATION Steve Merkt Global leadership position Content drives growth above vehicle production Auto sensors design wins propel future growth INDUSTRIAL Kevin Rock Levers to drive operating margins to high teens Content growth in Factory Automation &
Slide 4: Solid Foundation Established Over the Past Decade
SOLID FOUNDATION ESTABLISHED OVER THE PAST DECADE PORTFOLIO SHAPING ADJUSTED EBITDA MARGIN EXPANSION TOTAL SHAREHOLDER RETURN 50% revenue generated by harsh applications 360% versus 175% for the S&P 500 22% TO driven by gross margin expansion 80% TO 5 Adjusted EBITDA Margin is a non-GAAP financial m
Slide 5: The Company You Know, With a Stronger Future
THE COMPANY YOU KNOW, WITH A STRONGER FUTURE Serving large, attractive markets Providing value to customers Benefiting from the secular trend of content growth across segments Strong differentiation: Global presence, broad portfolio, engineered solutions Levers to expand margins, increased focus on
Slide 6: An Industrial Technology Leader Connecting the World
AN INDUSTRIAL TECHNOLOGY LEADER CONNECTING THE WORLD
Slide 7: Our Purpose: To Create a Future That Is Safer, Sustainable, Productive, Connected
OUR PURPOSE: TO CREATE A FUTURE THAT IS SAFER SUSTAINABLE PRODUCTIVE CONNECTED Interventional Medical Applications Electric Vehicles Smart Factories Data Centers WE HAVE THE ESSENTIAL TECHNOLOGY IN ENVIRONMENTS WHERE FAILURE IS NOT AN OPTION
Slide 8: We Built a Portfolio with Clear Competitive Advantages
WE BUILT A PORTFOLIO WITH CLEAR COMPETITIVE ADVANTAGES Businesses focused on Cash Businesses focused on Growth FY10 FY17 Portfolio focused on highly engineered custom products Capability to influence our customers’ roadmaps with integrated solutions Technology to address harsh environment applicatio
Slide 9: Where We Are Winning
WHERE WE ARE WINNING FY17 SubCom Appliances Data and Devices Energy / Utilities Medical Industrial Equipment Aerospace, Defense and Marine Sensors Commercial Transportation Automotive END MARKET TRENDS EV adoption globally, driven by OEM & Government initiatives Safer, more autonomous vehicles Heavy
Slide 10: Global Presence, Local Support for Our Global Customers
GLOBAL PRESENCE LOCAL SUPPORT FOR OUR GLOBAL CUSTOMERS 2,100 ENGINEERS IN THE US ENGINEERS IN ASIA 2,400 2,500 ENGINEERS IN EUROPE ENGINEERING ENGINEERING INTIMACY 20 1 4K 7K ENGINEERING CENTERS OF EXCELLENCE PATENTS ENGINEERS WHY CUSTOMERS CHOOSE US SUPPLY CHAIN MANUFACTURING SCALE Leverage core co
Slide 11: We're Accelerating Growth and Profitability
WE’RE ACCELERATING GROWTH AND PROFITABILITY
Slide 12: The Levers of Our Business Model
THE LEVERS OF OUR BUSINESS MODEL TOP LINE BOTTOM LINE ORGANIC REVENUE GROWTH EPS GROWTH +4-6% Pulling the levers for double-digit gains LOWER OPERATING EXPENSES Reduce SG&A by 100 basis points MARGIN EXPANSION M&A BALANCED CAPITAL STRATEGY Adding >100 basis points of growth annually Strategic M&A, S
Slide 13: Secular Trends in Our Markets
SECULAR TRENDS IN OUR MARKETS Transportation Solutions Industrial Solutions Communications Solutions SAFER SUSTAINABLE PRODUCTIVE CONNECTED Content consistently exceeds production Electric Vehicle adoption Connected Car evolution Auto Sensor designs propelling future growth Interventional Medical gr
Slide 14: The Levers of Our Business Model
THE LEVERS OF OUR BUSINESS MODEL TOP LINE BOTTOM LINE ORGANIC REVENUE GROWTH EPS GROWTH +4-6% Pulling the levers for double-digit gains LOWER OPERATING EXPENSES Reduce SG&A by 100 basis points MARGIN EXPANSION M&A BALANCED CAPITAL STRATEGY Adding >100 basis points of growth annually Strategic M&A, S
Slide 15: We're an Industrial Technology Leader Connecting the World
WE’RE AN INDUSTRIAL TECHNOLOGY LEADER CONNECTING THE WORLD We’ve built a portfolio with competitive advantage. The key elements to driving exciting shareholder value are in place. Our opportunity has never been greater.
Slide 16: Transportation Solutions
TRANSPORTATION SOLUTIONS STEVE MERKT, PRESIDENT
Slide 17: Transportation Solutions
TRANSPORTATION SOLUTIONS 72.5M CONNECTED cars sold by 2023 95% of trucks with cleaner engine by 2025 (EU6) UP TO 50% of new cars sold with electrified powertrain by 2030 >$250 Available sensor content in average vehicle billion In sales in FY17 $7.0 Mid – High SINGLE DIGIT LONG TERM ORGANIC GROWTH R
Slide 18: Our Global Leadership Position in Automotive
OUR GLOBAL LEADERSHIP POSITION IN AUTOMOTIVE CONTENT PER VEHICLE (CPV) 45% ~$50 $22 TODAY 40% ~$75 ASIA EMEA AMERICAS % OF TE AUTO REVENUE GLOBAL 15% ~$55 ~$62 100% LONG TERM PRODUCTION GROWTH ~2% ~1% ~2% ~2% $1B business Partnering with ~50 OEMs CPV has doubled over past 5 years AUTOMOTIVE GROWTH D
Slide 19: Key Drivers of Electronic Content Growth
KEY DRIVERS OF ELECTRONIC CONTENT GROWTH ~6% TE content CAGR over the next 5 years * Includes Sensors. Content per vehicle may vary based upon foreign currency exchange rates $50 $27 $7 YESTERDAY 5 YEARS AGO INTEGRATED SOLUTIONS RELIABILITY MINIATURIZATION TE CAPABILITIES $84 5 YEARS FROM NOW CONNEC
Slide 20: TE Enables Next Level Driving Automation
LEVEL 0 LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 NO AUTOMATION DRIVER ASSISTANCE PARTIAL AUTOMATION CONDITIONAL AUTOMATION HIGH AUTOMATION FULL AUTOMATION Driver controls it all Increased need for sensors and data connectivity 3 GB / second communications between driver assistance systems Ethernet co
Slide 21: Trends Supporting Electric Vehicle Production Growth
TRENDS SUPPORTING ELECTRIC VEHICLE PRODUCTION GROWTH Consumer incentives Environmental concerns / emissions Phasing out diesel engines Quotas and combustion engine bans GOVERNMENT FACTORS OEM shifting roadmap to Hybrid / EV Increasing range Declining battery prices Greater charging infrastructure CO
Slide 22: China Will Be a Major Driver for EV
CHINA WILL BE A MAJOR DRIVER FOR EV Consumer purchase incentives Local mandates to offer EVs Easy to acquire license plates Government wants to establish Chinese OEMs as global leader STRONG PUSH FROM GOVERNMENT Small share can represent high volumes Many cities with strong demand Emerging middle cl
Slide 23: The Powertrain Revolution
UP TO 50% New cars sold with electrified powertrains in 2030. 1x 1.5x 2x ICE Hybrid EV SUSTAINABLE THE POWERTRAIN REVOLUTION IN-VEHICLE TECHNOLOGIES BATTERY TECHNOLOGIES CHARGING SOLUTIONS INFRASTRUCTURE SOLUTIONS
Slide 24: TE Is Winning Globally with EV OEMs
TE IS WINNING GLOBALLY WITH EV OEMS Tesla Model 3 EXPANDING OUR TECHNICAL EXPERTISE NIO New Energy Vehicle EXPANDING OUR CONTENT & OUR CUSTOMER BASE CPV $500+ CPV $100+ CPV SUSTAINABLE $120 TE EV AVERAGE
Slide 25: Uniquely Positioned to Deliver End to End Solutions for Electric Vehicles
CHARGING CABLES & INLETS TEMPERATURE SENSORS CONNECTORS CABLES CURRENT SENSORS E-MOTORS MULTI-COIL RESOLVER RESOLVER ROTARY POSITION SENSOR TEMPERATURE SENSOR CABLE ASSEMBLY CONNECTORS BATTERY PERFORMANCE BATTERY DISCONNECT UNIT HIGH VOLTAGE CONNECTORS RELAYS & CONTACTORS RESISTORS UNIQUELY POSITION
Slide 26: TE Integrated Solutions for EV Batteries
TE INTEGRATED SOLUTIONS FOR EV BATTERIES BATTERY DISCONNECT UNIT SERVICE DISCONNECT CONNECTION ASSEMBLY CONNECTOR CONTACTORS RESISTORS & SENSORS (THERMAL & CURRENT) INTEGRATED CELL CONNECTION SYSTEM SENSORS (THERMAL & CURRENT) CONNECTOR TRADITIONAL Connector Only Content $20 INTEGRATED Content $200
Slide 27: TE Enables Vehicle Safety
TE ENABLES VEHICLE SAFETY IMPACT SENSORS SENSES THE CRASH WEIGHT SENSORS MEASURES SEAT WEIGHT TO CLASSIFY AIRBAG DEPLOYMENT BATTERY DISCONNECT PREVENTS ELECTROCUTION & FIRES SMART ANTENNA TECHNOLOGY AUTONOMOUSLY CALLS EMERGENCY RESPONDERS CONNECTOR SYSTEMS/ARCHITECTURE TRIGGERS AIRBAGS AND ANIT-LOCK
Slide 28: Sensors: Portfolio Positioned for Growth
SENSORS: PORTFOLIO POSITIONED FOR GROWTH AUTO DESIGN WINS PROPELLING STRONG GROWTH INDUSTRIAL COMMERCIAL TRANSPORTATION AUTOMOTIVE INDUSTRIAL COMMERCIAL TRANSPORTATION AUTOMOTIVE $1.2B AUTO DESIGN WINS (TERP) FY16 & FY17 POSITION PRESSURE SPEED HUMIDITY TEMPERATURE QUALITY Organic Growth HIGH-SINGLE
Slide 29: Transportation Solutions Summary
TRANSPORTATION SOLUTIONS Market leader with global position and engineering expertise Consistently demonstrating above market growth Content growth driven by sustainable, connected and safe trends In a leadership position to capitalize on electric vehicle adoption Emissions standards driving electro
Slide 30: Industrial Solutions
INDUSTRIAL SOLUTIONS KEVIN ROCK, PRESIDENT
Slide 31: Industrial Solutions
INDUSTRIAL SOLUTIONS 5% growth in global AIR TRAVELERS 15% TAVR market growth (Aortic Valve Replacement) 16% Mid Single Digit LONG-TERM ORGANIC GROWTH RATE High Teens TARGET ADJUSTED OPERATING MARGIN billion In sales in FY17 $3.5 billion Market $38 KEY TRENDS DIGITAL CONNECTED FACTORIES AGING DEMOGR
Slide 32: Driving Operating Margins to the High Teens
TOP LINE DRIVERS DRIVING OPERATING MARGINS TO THE HIGH TEENS Footprint consolidation Productivity enhancement with TEOA SG&A expense reduction Market growth accelerating in Industrial end markets Content driving growth above markets in Medical, Commercial Air and Factory Automation OPERATIONAL DRIVE
Slide 33: Factory Automation Growth
FACTORY AUTOMATION GROWTH SERVO DRIVE PLC ROBOTICS FOCUSED APPLICATION MARKET CAGR FY17-22 TOP 4 APPLICATIONS CAPEX investment rate > GDP China and developing market automation On-shoring in Americas Falling cost of computing & bandwidth Digital convergence & open standards Miniaturization More Auto
Slide 34: Content Growth in Existing Factories
CONTENT GROWTH IN EXISTING FACTORIES ~25%+ Increase in Available Content Ethernet Communication Electronic Drive System Integrated Safety System Information Management System Embedded Sensors Robotics Hydraulic Electronic Connectivity and remote access Robotics Safety enhancements Retrofit / upgrade
Slide 35: TE Win with Major Robot Manufacturer
TE WIN WITH MAJOR ROBOT MANUFACTURER Safety enhancements Increased capability / motion Sensors and data capture Connectivity and remote access TAM expansion with acquisitions CONTENT INCREASE DRIVEN BY: $20 $170 YESTERDAY TODAY 8X Increase in Content Per Robot DATA CONNECTOR DATA CONNECTOR DATA CONN
Slide 36: Medical Overview
MEDICAL OVERVIEW Portfolio mix shifting towards the more attractive Interventional and Surgical segments Ablation TRENDS DRIVING INTERVENTIONAL GROWTH 2017 2022 2012 Aging population Reducing hospital stay Shorter patient recovery Cost effective treatments PATIENT CABLES SURGICAL INTERVENTIONAL 7% M
Slide 37: Our Medical Strategy
OUR MEDICAL STRATEGY Partner of choice to customers in designing & building medical devices that save lives Build on our leadership position in Interventional and Surgical applications Organic growth in the high single digits, higher than medical market average Expand portfolio with M&A opportunitie
Slide 38: Content Drives Commercial Aerospace Growth
CONTENT DRIVES COMMERCIAL AEROSPACE GROWTH $420k PER 2022 Widebody $110k Per 2022 narrowbody >15% INCREASE IN AVERAGE Content / Aircraft by 2022 NARROWBODY WIDEBODY A320 NEO B737 MAX C-Series C919 2017 16% 2022 17% 2017 2022 A330 NEO A350 B777X B787 TE Avg. Content per Aircraft Produced (‘000s) $95
Slide 39: Industrial Solutions Summary
INDUSTRIAL SOLUTIONS Content growth trends across businesses Key player in the smart factory evolution Leading position in high growth medical markets Strong growth in content as aircrafts advance Positioned for growth and margin expansion ADJUSTED OPERATING MARGIN EXPANSION OPPORTUNITY TO HIGH TEEN
Slide 40: Communications Solutions
COMMUNICATIONS SOLUTIONS SHAD KROEGER, PRESIDENT
Slide 41: Communications Solutions Segment
COMMUNICATIONS SOLUTIONS SEGMENT 27% datacenter traffic growth reaching 15ZB in 2020 150M 5G global subscribers by 2021 100+ Cable systems to circle the earth 15x 25B Connected devices by 2020 KEY TRENDS HIGH-SPEED SOLUTIONS IOT AND CONNECTED LIFE GROWTH IN ASIA EMERGING APPLICATIONS Low Single Digi
Slide 42: Communications Solutions Transformation
COMMUNICATIONS SOLUTIONS TRANSFORMATION GROW CONTENT REPOSITION PORTFOLIO WIN IN ASIA-PACIFIC WIN WITH HYPERSCALE RATIONALIZE FOOTPRINT STRATEGIC PRIORITIES HYPERSCALE SPENDING US Telco Capex Hyperscale Players REPOSITIONED TO GROWTH MARKETS MIX SHIFT TO ASIA 2011 2017 53% 47% 41% 59% ASIA US/EMEA
Slide 43: Appliances Overview
APPLIANCES OVERVIEW Global portfolio with strong penetration in the fast-growing Asia region and in emerging applications TRENDS DRIVING APPLIANCES GROWTH Safety Efficiency Miniaturization WESTERN WORLD ASIA-PACIFIC EMERGING HOME CONTENT GROWTH DRIVEN BY: Value-add assemblies Integrated solutions Ne
Slide 44: Data and Devices Overview
DATA AND DEVICES OVERVIEW Portfolio shifting to growing high-speed applications with complex technological challenges TRENDS DRIVING DATA AND DEVICES GROWTH Data explosion High-speed Infrastructure shifts e.g. 5G HIGH-SPEED TELECOM, ENTERPRISE CONSUMER HYPERSCALE TRUSTED PARTNER TO LEADING CUSTOMERS
Slide 45: SubCom Market Driven by Hyperscales
SUBCOM MARKET DRIVEN BY HYPERSCALES *Commercial fiber optic cable systems that achieve CIF HYPERSCALE TELCOS 2008 Current Cycle HYPERSCALES REPLACING TRADITIONAL TELCOS REDUCED CYCLICALITY With revenues ranging from $600M to $1B Need for SPEED and BANDWIDTH Require OPTIONALITY on technology Demand f
Slide 46: Communications Solutions Summary
COMMUNICATIONS SOLUTIONS Winning in the markets we serve Well positioned in Asia Strong relationships with customers and partners Extensive portfolio and technology leadership Transformation and operational excellence key contributors to margin expansion Reduced cyclicality in the SubCom market POSI
Slide 47: Mergers & Acquisitions
MERGERS & ACQUISITIONS JEANNE QUIRK, SVP
Slide 48: M&A Market Environment
M&A MARKET ENVIRONMENT Note: 2017 year-to-date data through September. Source: Wall Street investment banks, S&P Capital IQ, Federal Reserve Economic Data. INTEREST RATES AND LEVERAGE GLOBAL M&A MULTIPLES UTILIZE A ROBUST PROCESS INTERNALLY TO CREATE VALUE IN A COMPETITIVE ENVIRONMENT 0.0% 2.0% 4.0%
Slide 49: Strong Deal Eco-System Provides for Robust Pipeline
STRONG DEAL ECO-SYSTEM PROVIDES FOR ROBUST PIPELINE PIPELINE comprised of significant number of targets BUSINESS UNIT RELATIONSHIPS CUSTOMER INFLUENCE INDUSTRY CONSORTIUMS PRIVATE EQUITY & VC RELATIONSHIPS INVESTMENT BANKS (LARGE & SMALL)
Slide 50: M&A Discipline in a Challenging Market
M&A DISCIPLINE IN A CHALLENGING MARKET RESULTS IN STRATEGIC FOCUS ON TRANSPORTATION AND INDUSTRIAL Strong secular trends drive > GDP growth End-market values engineering content Sustainable positions Leverage global go-to-market Improve OI through TEOA Drive SG&A savings through scale Capitalize on
Slide 51: Platforms Create Opportunity for Bolt Ons
PLATFORMS CREATE OPPORTUNITY FOR BOLT ONS 16x 11x CAPITAL DEPLOYED $2.6B $3.5B EBITDA Multiple EBITDA Multiple Sensors and Medical MARKET FOCUS: Bolt On Platform
Slide 52: Established Process for a Platform: TE Interventional Medical
ESTABLISHED PROCESS FOR A PLATFORM CASE STUDY OF TE INTERVENTIONAL MEDICAL IDEA GENERATION STRATEGY DEVELOPMENT TEST STRATEGY IMPLEMENT STRATEGY GROW PLATFORM 2012 2013-2014 2015 2016 2017+ Customer engagement based on TE core capabilities & OEM relationship TE acquires Tests value creation theory S
Slide 53: Mergers and Acquisitions
MERGERS AND ACQUISITIONS TE’s diversified end markets and platform acquisitions provide a large hunting ground in a competitive M&A environment We will look for opportunities: In attractive markets Close to TE’s DNA Where we can add value To provide strong return to shareholders Expect to deploy ~1/
Slide 54: Value Creation
55 VALUE CREATION HEATH MITTS, CFO
Slide 55: What Gets the CFO Excited
WHAT GETS THE CFO EXCITED GROWTH ACROSS PORTFOLIO Organic growth accelerating To Mid Single Digits MARGIN EXPANSION Growth and cost opportunity ROIC Focus on balance between growth and returns CAPITAL DEPLOYMENT Strong cash generation provides flexibility Organic Net Sales Growth is a non-GAAP finan
Slide 56: Mid-High Single Digits Growth: All Segments Contributing
MID - HIGH SINGLE DIGITS GROWTH: ALL SEGMENTS CONTRIBUTING FOCUS Top Line Growth Growth and margin expansion Consistency Cash Flow Generation TE PORTFOLIO POSITIONED FOR 4 – 6% ORGANIC GROWTH TRANSPORTATION INDUSTRIAL COMMUNICATIONS Very strong position in a market with content growth drivers Strong
Slide 57: Margin Expansion: Efficient Expense Model
MARGIN EXPANSION: EFFICIENT EXPENSE MODEL BUSINESS MODEL TARGETED AT REDUCING OPEX TO 16% OF REVENUE WHAT WE ARE DOING Teams formed to address SG&A opportunities Outsourced IT TEOA – leaning our enterprise (Supply chain and overhead) Maintaining R&D at 5% to support growth initiatives Absorbing cost
Slide 58: Margin and EPS Expansion
MARGIN AND EPS EXPANSION WHAT WE’VE DONE Focused the portfolio on growth Exited low margin products Driven TEOA across manufacturing Balanced capital allocation GOING FORWARD: Adjusted Operating Margin Expansion 30-80 bps Mid single digit organic growth Transportation Margins 20% +/- while investing
Slide 59: ROIC: Targeting Mid Teens Adjusted ROIC
ROIC Progression Deployment of Capital ROIC: TARGETING MID TEENS ADJUSTED ROIC Focused investment supporting organic growth Mergers and Acquisitions Value creation Enabling long term growth opportunities ORGANIC: Growing profit > asset base LEVERS TO PULL M&A: Right acquisition at the right price GO
Slide 60: Capital Strategy: Balanced Deployment
CAPITAL STRATEGY: BALANCED DEPLOYMENT DIVIDENDS PER SHARE Share Repurchases $6.8B Acquisitions* $7.4B Dividends $3.9B MAJOR CAPITAL DEPLOYMENT** FY08 through FY17 Denotes dividends paid during the fiscal year. BNS Proceeds $2B FY18 dividends are subject to shareholder approval. Free Cash Flow is a n
Slide 61: TE Business Model
TE BUSINESS MODEL Content enables growth > market Growth from Sensors and Medical platforms M&A in Transportation and Industrial SG&A leverage; Maintaining R&D at 5% of sales Driven by operational excellence and Industrial Solutions Flexibility with strong FCF Balancing deployment of capital Consist
Slide 62: TE Is an Industrial Technology Leader Connecting the World
TE IS AN INDUSTRIAL TECHNOLOGY LEADER CONNECTING THE WORLD We’ve built a portfolio with competitive advantage. The key elements to driving exciting shareholder value are in place. Our opportunity has never been greater.
Slide 63: Investor Day Take Aways
INVESTOR DAY TAKE AWAYS TRANSPORTATION Global leadership position Content drives growth above market Auto sensors design wins propel future growth INDUSTRIAL Levers to drive operating margins to high teens Content growth in Factory Automation & CommAir Leading position in fast-growing Medical market
Slide 64: The Levers of Our Business Model
THE LEVERS OF OUR BUSINESS MODEL TOP LINE BOTTOM LINE ORGANIC REVENUE GROWTH EPS GROWTH +4-6% Pulling the levers for double-digit gains LOWER OPERATING EXPENSES Reduce SG&A by 100 basis points MARGIN EXPANSION M&A BALANCED CAPITAL STRATEGY Adding >100 basis points of growth annually Strategic M&A, S
Slide 65: The Opportunity Has Never Been Greater
THE OPPORTUNITY HAS NEVER BEEN GREATER The key elements to driving exciting shareholder value are in place.
Slide 66: The Opportunity Has Never Been Greater
el THE OPPORTUNITY HAS NEVER BEEN GREATER oe The key elements to driving exciting shareholder value are in place.
Slide 67: Non-GAAP Financial Measures
68 Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financia
Slide 68: Adjusted EBITDA and Free Cash Flow Definitions
69 Adjusted EBITDA and Adjusted EBITDA Margin - represent net income and net income as a percentage of net sales, respectively, (the most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net other income, inco
Slide 69: Reconciliation of Non-GAAP Measures, Year Ended September 29, 2017
70 Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 29, 2017 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 1,299 $ 3 $ 67 $ - $ 1
Slide 70: Reconciliation of Non-GAAP Measures, Year Ended September 25, 2015
71 Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2015 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1)(2) Charges, Net (2) Items (3) (Non-GAAP) (4) Operating Income: Transportation Solutions 1,193 $ 61 $ 39 $ -
Slide 71: Reconciliation of Non-GAAP Measures, Year Ended September 27, 2013
72 Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2013 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 934 $ 7 $ 39 $ - $ 980
Slide 72: Reconciliation of Adjusted ROIC
73 Reconciliation of Adjusted Return on Invested Capital (ROIC) September 29, September 30, September 25, September 26, September 27, September 28, 2017 2016 2015 2014 2013 2012 Operating income 2,047 $ 1,749 $ 1,385 $ Acquisition related charges 11 94 14 Restructuring and other charges, net 148 149
Slide 73: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
74 Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Year Ended September 29, 2017 Net Income 1,683 $ Income from discontinued operations (10) Income tax expense 255 Other expense, net 9 Interest expense 130 Interest income (20) Operating Income 2,047 Acquisition related charges 1
Slide 74: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Year Ended September 29, 2017 Cin mitionsy Net income s 1683 Income ffom discontinued operations ao) Income taxewpense 255 Other expense, net 9 Interest expense 130 Interest income fen) Operating Income 207 “Acquisition related cha