Slide 1: TE Connectivity First Quarter 2023 Earnings
TE Connectivity First Quarter 2023 Earnings January 25, 2023 EVERY CONNECTION COUNTS
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial 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 a
Slide 3: Earnings Highlights
Earnings Highlights Q1 Sales & Adjusted EPS Exceeded Guidance • Sales of $3.8B, up 1% reported, up 8% organically Y/Y • Transportation up 14% organically Y/Y, primarily driven by Automotive • Industrial up 7% organically Y/Y, with growth in all businesses • Communications down 11% organically Y/Y, w
Slide 4: Segment Orders Summary
Segment Orders Summary ($ in millions) Reported FY22 FY22 FY23 Q1 Growth Q1 Q4 Q1 Y/Y Q/Q (13 week) • Y/Y orders trending as expected, Transportation 2,158 2,327 2,154 0% (7)% impacted by FX, supply chain dynamics, and continued strong backlog level Industrial 1,395 1,172 1,085 (22)% (8)% • Transpor
Slide 5: Transportation Solutions
Transportation Solutions $ in Millions Q1 Sales Q1 Business Performance Reported Y/Y Growth Rates Reported Organic Up 5% Automotive $1,649 9% 20% $2,158 $2,259 Commercial Organic 348 (5)% 3% Transportation Up 14% Sensors 262 (4)% 3% Q1 2022 Q1 2023 Transportation $2,259 5% 14% Solutions Q1 Adjusted
Slide 6: Industrial Solutions
Industrial Solutions $ in Millions Q1 Sales Q1 Business Performance Reported Y/Y Growth Rates Reported Organic Up 1% Industrial Equipment $434 (5)% 3% $1,052 $1,060 Aerospace, Defense Organic 264 9% 14% and Marine Up 7% Energy 189 1% 8% Q1 2022 Q1 2023 Medical 173 4% 5% Industrial Solutions $1,060 1
Slide 7: Communications Solutions
Communications Solutions $ in Millions Q1 Sales Q1 Business Performance Reported Y/Y Growth Rates Reported Organic Down 14% Data & Devices $329 (8)% (6)% Organic $608 $522 Appliances 193 (23)% (18)% Down 11% Communications $522 (14)% (11)% Solutions Q1 2022 Q1 2023 Q1 Adjusted Operating Margin • Dat
Slide 8: Q1 Financial Summary
Q1 Financial Summary ($ in Millions, except per share amounts) Q1 FY22 Q1 FY23 Net Sales $ 3,818 $ 3,841 Operating Income $ 672 $ 502 Operating Margin 17.6% 13.1% Acquisition-Related Charges 16 9 Restructuring & Other Charges, Net 24 111 Adjusted Operating Income $ 712 $ 622 Adjusted Operating Margi
Slide 9: Q1 Financial Performance
Q1 Financial Performance Sales Adjusted Operating Margin $ in Millions $3,818 $3,841 18.6% 16.2% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Adjusted EBITDA 23.8% 21.1% Margin Adjusted EPS Free Cash Flow $ in Millions $1.76 $373 $399 $1.53 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Y/Y Sales & EPS Performance Impacted Pri
Slide 10: Additional Information
Additional Information EVERY CONNECTION COUNTS
Slide 11: Y/Y Q1 2023 Sales and Adjusted EPS
Y/Y Q1 2023 Sales Adjusted EPS (in millions) Q1 2022 Results $3,818 $1.76 Operational Performance 322 0.02 FX Impact (299) (0.21) Tax Rate Impact - (0.04) Q1 2023 Results $3,841 $1.53 11 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation.
Slide 12: Y/Y Q2 2023 Sales and Adjusted EPS Guidance
Y/Y Q2 2023 Sales Adjusted EPS (in millions) Q2 2022 Results $4,007 $1.81 Operational Performance 58 (0.08) FX Impact (165) (0.11) Tax Rate Impact - (0.05) Q2 2023 Guidance $3,900 $1.57 12 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation.
Slide 13: Q1 Balance Sheet & Cash Flow Summary
Q1 Balance Sheet & Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash & Debt ($ in Millions) Q1 2022 Q1 2023 ($ in Millions) Q1 2022 Q1 2023 Cash from Operating Activities $532 $581 Beginning Cash Balance $1,203 $1,088 Free Cash Flow 373 399 Capital expenditures, net (118) (182) Di
Slide 14: Appendix
Appendix EVERY CONNECTION COUNTS
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial m
Slide 16: Non-GAAP Financial Measures (cont.)
Non-GAAP Financial Measures (cont.) • Adjusted EBITDA and Adjusted EBITDA Margin - represent net income and net income as a percentage of net sales, respectively, (the most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as
Slide 17: Segment Summary
Segment Summary For the Q uarte rs Ende d De ce mbe r 30, De ce mbe r 24, 2022 2021 ($ in millions) Ne t Sale s Ne t Sale s Transportation Solutions $ 2,259 $ 2,158 Industrial Solutions 1,060 1,052 Communications Solutions 522 608 Total $ 3,841 $ 3,818 O pe rating O pe rating O pe rating O pe rating
Slide 18: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth Change in Ne t Sale s for the Q uarte r Ende d De ce mbe r 30, 2022 ve rsus Ne t Sale s for the Q uarte r Ende d De ce mbe r 24, 2021 Ne t Sale s O rganic Ne t Sale s Growth (De cline ) Growth (De cline ) (1) Translation (2) Acquisitions ($ in millions) Transportat
Slide 19: Reconciliation of Non-GAAP to GAAP, Quarter Ended December 30, 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 30, 2022 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating incom
Slide 20: Reconciliation of Non-GAAP to GAAP, Quarter Ended December 24, 2021
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 24, 2021 Adjustme nts Re structuring Acquisition- and O the r Re late d Charge s Adjuste d U.S. GAAP Charge s (1) (Cre dits), Ne t (1)(2) Tax Ite ms (3) (Non-GAAP) (4) ($ in millions, e xce pt pe
Slide 21: Reconciliation of Non-GAAP to GAAP, Quarter Ended March 25, 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 25, 2022 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) (2) U.S. GAAP Charge s Charge s, Ne t Tax Ite ms (Non-GAAP) (3) ($ in millions, e xce pt pe r share data) Ope
Slide 22: Reconciliation of Non-GAAP to GAAP, Year Ended September 30, 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2022 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1)(2) (3) U.S. GAAP Charge s Charge s, Ne t Tax Ite ms (Non-GAAP) (4) ($ in millions, e xce pt pe r share data)
Slide 23: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Q uarte rs Ende d De ce mbe r 30, De ce mbe r 24, 2022 2021 (in millions) Net cash provided by operating activities $ 581 $ 532 Net cash used in investing activities (265) (199) Net cash used in financing activities (621) (552) Effect of currency translation
Slide 24: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Q uarte rs Ende d De ce mbe r 30, De ce mbe r 24, 2022 2021 ($ in millions) Net income $ 397 $ 566 Loss from discontinued operations 1 1 Income tax expense 87 110 Other (income) expense, net 5 (15) Interest expense 21 12 Interest i
Slide 25: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures O utlook for Q uarte r Ending March 31, O utlook for 2023 (1) Fiscal 2023 (1) Diluted earnings per share from continuing operations $ 1.44 Restructuring and other charges, net 0.11 Acquisition-re