Te Connectivity Plc · NYSE:TEL
Te Connectivity — Investor Presentation (May 2018)
19 slides from Te Connectivity's investor presentation, May 31, 2018
Slide 1: Forward-Looking Statements and Non-GAAP Measures
2 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 subje
Slide 2: Industrial technology company creating a safer, sustainable, productive and connected future
3 INDUSTRIAL TECHNOLOGY COMPANY CREATING A SAFER, SUSTAINABLE, PRODUCTIVE AND CONNECTED FUTURE TE CONNECTIVITY Automotive Sensors Commercial Transportation Data & Devices Appliances Subsea Communications WORLD LEADER in connectivity and sensor solutions with the broadest range of technologies Highly
Slide 3: The company you know, with a stronger future
4 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 o
Slide 4: The levers of our business model
5 THE LEVERS OF OUR BUSINESS MODEL ORGANIC REVENUE GROWTH EPS GROWTH LOWER OPERATING EXPENSES M & A BALANCED CAPITAL STRATEGY Strategic M&A, Share Buybacks, Dividend increases, ROIC in mid-teens, strong FCF IMPROVED OPERATING MARGINS Expand 30-80 basis points annually Organic revenue growth, Operati
Slide 5: Accelerating Growth and Profitability
6 Accelerating Growth and Profitability $ in billions except per share amounts Net Sales 2% 1 Outlook as of April 25, 2018 Note: Amounts and comments exclude the impact of an additional week in fiscal 2016 Net Sales Excluding the Impact of the Additional Week, Organic Net Sales Growth, Organic Net S
Slide 6: Capital Strategy: Balanced Deployment
7 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 1 FY18 represents dividends expected to be paid. Free Cash Flow is a no
Slide 7: 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 8: Non-GAAP performance and liquidity measures
9 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 financial
Slide 9: Free Cash Flow definition
10 Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by continuing operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are usef
Slide 10: Reconciliation to GAAP Financial Measures, Year Ended September 29, 2017
11 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 1,307 $ 3 $ 67 $ - $ 1
Slide 11: Reconciliation to GAAP Financial Measures, Year Ended September 30, 2016
12 Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2016 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 1,219 $ 9
Slide 12: Reconciliation to GAAP Financial Measures, Year Ended September 25, 2015
13 Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2015 Note > Amounts have not been updated to reflect the impact of adoption of Accounting Standards Update No. 2017-07, an update to Accounting Standards Codification 715, Compensation – Reti
Slide 13: Reconciliation to GAAP Financial Measures, Year Ended September 26, 2014
14 Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 26, 2014 Note > Amounts have not been updated to reflect the impact of adoption of Accounting Standards Update No. 2017-07, an update to Accounting Standards Codification 715, Compensation – Reti
Slide 14: Reconciliation to GAAP Financial Measures, Year Ended September 27, 2013
15 Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2013 Note > Amounts have not been updated to reflect the impact of adoption of Accounting Standards Update No. 2017-07, an update to Accounting Standards Codification 715, Compensation – Reti
Slide 15: Reconciliation of Forward-Looking to Forward-Looking GAAP Financial Measures
16 Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures Outlook for Quarter Ending June 29, Outlook for 2018 (1) Fiscal 2018 (1) Diluted earnings per share from continuing operations (GAAP) $1.13 - $1.15 $3.70 - $3.76 Restructuring and other charge
Slide 16: Reconciliation of Net Sales Growth
17 Reconciliation of Net Sales Growth Acquisitions Translation (2) (Divestiture) 875 $ 7.1% 736 $ 6.0% (83) $ 222 $ Acquisitions Translation (2) (Divestiture) 5 $ -% 178 $ 1.5% (254) $ 81 $ Translation (2) Acquisitions 260 $ 2.2% 460 $ 3.8% (909) $ 709 $ Acquisitions Translation (2) (Divestitures) 5
Slide 17: Impact of Additional Week – FY17 vs. FY16
18 Impact of Additional Week – FY17 vs. FY16 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 18: Impact of Additional Week – FY16 vs. FY15
19 Impact of Additional Week – FY16 vs. FY15 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 19: Impact of Additional Week – FY16 vs. FY15
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