Slide 1: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures 2 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 subje
Slide 2: Q3 Highlights
Record Q3 performance and exceeded Guidance; Raising FY17 Guidance 8% organic growth year-over-year Sales of $3.4B, with organic growth across all segments and regions Transportation grew 8% organically as content growth continues to drive market outperformance Organic growth of 5% in Industrial dri
Slide 3: Segment Orders Summary
Reported FY16 FY17 FY17 Q3 Y/Y Growth Q3 Q2 Q3 Reported Organic Transportation 1,659 1,811 1,887 14% 15% Industrial 875 927 951 9% 6% Communications Ex SubCom* 393 446 432 10% 12% Total TE Ex SubCom* 2,927 3,184 3,270 12% 12% Book to Bill Ex SubCom* 1.01 1.06 1.06 Segment Orders Summary ($ in millio
Slide 4: Transportation Solutions
Y/Y Growth Rates Reported Organic Automotive $1,294 4% 6% Commercial Transportation 262 21% 23% Sensors 209 10% 7% Transportation Solutions $1,765 7% 8% $ in Millions Sales Automotive sales significantly above production of 1% driven by content expansion and growth in all regions Commercial Transpor
Slide 5: Industrial Solutions
Y/Y Growth Rates Reported Organic Industrial Equipment $456 15% 10% Aerospace, Defense and Marine 271 (2)% (1)% Energy 178 -% 2% Industrial Solutions $905 7% 5% $ in Millions Sales Industrial Equipment organic growth driven by factory automation and medical applications Organic decline in AD&M drive
Slide 6: Communications Solutions
Y/Y Growth Rates Reported Organic Data & Devices $245 4% 6% Appliances 181 12% 14% SubCom 271 22% 22% Communications Solutions $697 12% 14% $ in Millions Sales Data & Devices growth driven primarily by high speed programs with cloud infrastructure customers Data & Devices portfolio transformation an
Slide 7: Q3 Financial Summary
Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP measures; see Appendix for description. *Represents Diluted Earnings Per Share from Continuing Operations ($ in Millions, except per share amounts) Q3 FY16 Q3 FY17 Net Sales $ 3,121 $ 3,367 Operating Income $ 452 $ 53
Slide 8: Q3 Operating Metrics
$ in Millions Adjusted Gross Margin Percentage Adjusted Operating Margin Free Cash Flow Adjusted Gross Margin Percentage, Free Cash Flow, Adjusted Operating Margin and Adjusted EBITDA Margin are non-GAAP measures; See Appendix for description and reconciliation. Q3 Operating Metrics 9 Adjusted EBITD
Slide 9: Q4 Outlook
Guidance* Mid Single Digit Organic Growth Across Segments Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $3.2B to $3.3B Adjusted EPS $1.14 to $1.16 Sales up 5% Y/Y and up 4% organically at midpoint Minimal impact from FX Adjusted EPS up slight
Slide 10: FY17 Outlook: Raising Guidance
Raising Guidance: 7% organic growth and Adjusted EPS up 20% Y/Y Sales of $12.85B to $12.95B Adjusted EPS of $4.72 to $4.74 Sales up 8% Y/Y; Expect organic growth of 7% Y/Y (up from 6% in Prior Guidance) Adjusted EPS up 20% Y/Y at midpoint FX headwind impacting sales by ~$125M Y/Y and Adjusted EPS by
Slide 11: FY17 Outlook
FY17 Outlook® vs 52 week prior year Guidance Highlights umm Up High Single Digits g Up High Single Digits Organic Industrial Solutio Up High Single Digits Up Low Single Digits Organic Up Mid Single Digits Up High Single Digits Organic Sales of $12.85B to $12.95B Adjusted EPS of $4.72 to $4.74 Expect
Slide 12: Q3 2017 Sales and Adjusted EPS Bridge Y/Y
Y/Y Q3 2017 13 Adjusted EPS is a non-GAAP measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q3 2016 Results $3,121 $1.08 Operational Performance 260 0.16 Acquisitions / Divestitures, net 37 0.02 Tax Rate Impact - 0.01 FX Impact (51) (0.03) Q3 2017 Results $3,
Slide 13: Q4 2017 Sales and Adjusted EPS Bridge Y/Y
Y/Y Q4 2017 14 Net Sales Excluding the Impact of the Additional Week, Adjusted Earnings Per Share Excluding the Impact of the Additional Week, and Adjusted EPS are non-GAAP measures; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q4 2016 Results – 13 weeks $3,094 $
Slide 14: FY 2017 Sales and Adjusted EPS Bridge Y/Y
Y/Y FY 2017 15 1H 2H FY17 Sales (in millions) Adjusted EPS Sales (in millions) Adjusted EPS Sales (in millions) Adjusted EPS 2016 – 52 Weeks $5,785 $1.74 $6,215 $2.21 $12,000 $3.95 Operational Performance 429 0.36 379 0.23 808 0.59 Acquisitions / Divestitures, net* 146 0.05 70 0.04 216 0.09 Share Re
Slide 15: Q3 Balance Sheet & Cash Flow Summary
($ in Millions) Q3 2016 Q3 2017 Beginning Cash Balance $1,150 $773 Free Cash Flow 589 408 Dividends (132) (142) Share repurchases (134) (178) Acquisitions and Divestiture, net (923) (73) Net Increase in Commercial Paper 150 - Other (6) (33) Ending Cash Balance $694 $755 Total Debt $4,036 $3,991 ($ i
Slide 16: Q3 Balance Sheet & Cash Flow Summary
Q3 Balance Sheet & Cash Flow Summary (Sinton 032016 032017 Cash from Continuing Operations $715 $524 Capital expenditures, net Roy) Cash paid pursuant to collateral requirements related to cross currency swaps - os Pre-separation and BNS related tax 2 08) payments (receipts), net Free Cash Flow $589
Slide 17: Non-GAAP Measures Description
18 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 18: Non-GAAP Measures Definitions
19 Adjusted Earnings Per Share Excluding the Impact of Changes in the Adjusted Effective Tax Rate – represents Adjusted Earnings Per Share calculated by applying the prior period Adjusted Effective Tax Rate to the current period. We believe this measure provides useful information regarding our Adju
Slide 19: Segment Summary
20 Segment Summary Net Sales Net Sales Net Sales Net Sales Transportation Solutions 1,765 $ 1,652 $ 5,195 $ 4,767 $ Industrial Solutions 905 849 2,553 2,296 Communications Solutions 697 620 1,909 1,843 Total 3,367 $ 3,121 $ 9,657 $ 8,906 $ Operating Operating Operating Operating Operating Operating
Slide 20: Net Sales Growth – Q3 vs. Q3
Reconciliation of Net Sales Growth – Q3 17 vs. Q3 16 21 Translation (2) Acquisitions Transportation Solutions (3) : Automotive 49 $ 3.9% 70 $ 5.6% (21) $ - $ Commercial transportation 45 20.7 50 23.1 (5) - Sensors 19 10.0 14 7.2 (4) 9 Total 113 6.8 134 8.1 (30) 9 Industrial Solutions (3) : Industria
Slide 21: Net Sales Growth by Region – Q3 vs. Q3
Reconciliation of Net Sales Growth by Region – Q3 17 vs. Q3 16 22 Translation (2) Acquisitions Americas 100 $ 9.3% 94 $ 8.8% 1 $ 5 $ EMEA 63 5.9 62 5.6 (30) 31 Asia–Pacific 83 8.5 104 10.6 (22) 1 Total 246 $ 7.9% 260 $ 8.3% (51) $ 37 $ ($ in millions) (1) Organic net sales growth is a non-GAAP finan
Slide 22: Reconciliation to GAAP: Quarter Ended June 30, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 30, 2017 23 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 328 $ 1 $ 3 $ - $ 332 $
Slide 23: Reconciliation to GAAP: Quarter Ended March 31, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 31, 2017 24 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 300 $ - $ 33 $ - $ 333
Slide 24: Reconciliation to GAAP: Quarter Ended June 24, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 24, 2016 25 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 297 $ 2 $ 21 $ - $ 32
Slide 25: Reconciliation to GAAP: Six Months Ended March 31, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 31, 2017 26 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 643 $ 1 $ 57 $ - $ 7
Slide 26: Reconciliation to GAAP: Nine Months Ended June 30, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 30, 2017 27 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 971 $ 2 $ 60 $ - $ 1
Slide 27: Reconciliation to GAAP: Six Months Ended March 25, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 25, 2016 28 Restructuring Acquisition and Other Related Charges Tax Adjusted U.S. GAAP Charges (1) (Credits), Net (1)(2) Items (3) (Non-GAAP) (4) Operating Income: Transportation Solutions 550 $ 4
Slide 28: Reconciliation to GAAP: Nine Months Ended June 24, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 24, 2016 29 Restructuring Acquisition and Other Related Charges Tax Adjusted U.S. GAAP Charges (1)(2) (Credits), Net (2) Items (3) (Non-GAAP) (4) Operating Income: Transportation Solutions 847 $ 6
Slide 29: Reconciliation to GAAP: Quarter Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 30, 2016 30 Restructuring Acquisition and Other Related Charges Adjusted U.S. GAAP Charges (1) (Credits), Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 344 $ 3 $ (6) $ 341 $ I
Slide 30: Impact of Additional Week for Q4 2016
Impact of Additional Week for Q4 2016 31 Adjustment Adjustment Adjustment 14 Weeks Impact of 13 Weeks 14 Weeks Impact of 13 Weeks 14 Weeks Impact of 13 Weeks U.S. GAAP 14th Week (Non-GAAP) (1)(2) U.S. GAAP 14th Week (Non-GAAP) (1)(2) (Non-GAAP) (2) 14th Week (Non-GAAP) (1)(2) Net Sales: Transportati
Slide 31: Reconciliation to GAAP: Year Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2016 32 Restructuring Acquisition and Other Related Charges Tax Adjusted U.S. GAAP Charges (1)(2) (Credits), Net (2) Items (3) (Non-GAAP) (4) Operating Income: Transportation Solutions 1,191 $ 9
Slide 32: Impact of Additional Week for Fiscal 2016
33 Impact of Additional Week for Fiscal 2016 Adjustment Adjustment Adjustment 53 Weeks Impact of 52 Weeks 53 Weeks Impact of 52 Weeks 53 Weeks Impact of 52 Weeks U.S. GAAP 53rd Week (Non-GAAP) (1)(2) U.S. GAAP 53rd Week (Non-GAAP) (1)(2) (Non-GAAP) (2) 53rd Week (Non-GAAP) (1)(2) Net Sales: Transpor
Slide 33: Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage 34 June 30, June 24, 2017 2016 Net Sales 3,367 $ 3,121 $ Cost of Sales 2,229 2,099 Gross Margin 1,138 1,022 Gross Margin Percentage 33.8% 32.7% Acquisition Related Charges 3 7 Adjusted Gross Margin (1) 1,141 $ 1,029 $ Adjusted Gross Margin Per
Slide 34: Free Cash Flow
Reconciliation of Free Cash Flow 35 June 30, June 24, June 30, June 24, 2017 2016 2017 2016 Net cash provided by operating activities: Net cash provided by continuing operating activities 524 $ 715 $ 1,449 $ 1,262 $ Net cash provided by (used in) discontinued operating activities (1) 3 (1) 1 523 718
Slide 35: Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA Margin 36 June 30, June 24, 2017 2016 Net Income 435 $ 839 $ Income from discontinued operations (3) (48) Income tax expense (benefit) 71 (1,019) Other expense, net 4 651 Interest expense 32 31 Interest (income) (3) (2) Operating Income 536 452 Acquisition related c
Slide 36: Forward-Looking to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 37 Outlook for Quarter Ending September 29, Outlook for 2017 (1) Fiscal 2017 (1) Diluted earnings per share from continuing operations (GAAP) $1.07 - $1.09 $4.54 - 4.56 Restructuring and other ch
Slide 37: Forward-Looking to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures Ottook for ‘Quarter Bading September 29, Diluted earnings per share from continuing operations (GAAP) S107 S109 Restructuring and other ‘Acquistion related charges Taxitems tes, net Adjusted dilu