Te Connectivity Plc · NYSE:TEL
Te Connectivity — Investor Day (November 2013)
83 slides from Te Connectivity's investor day presentation, Nov 19, 2013
Slide 1: 2013 Investor Meeting
EVERY CONNECTION COUNTS
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 subj
Slide 3: TE Brand Video
TE BRAND VIDEO www.everyconnectioncounts.com page 3
Slide 4: The World Leader Enabling Connectivity
THE WORLD LEADER ENABLING CONNECTIVITY ~$100 billion connectivity market TRANSPORTATION INDUSTRIAL $13.3 billion In sales 14% adjusted operating margin 10% adjusted net income margin NETWORKS CONSUMER $1.5 billion free cash flow Figures represent FY13 results. page 4 Adjusted Operating Margin, Adjus
Slide 5: Agenda
AGENDA Tom Lynch Accelerating Sales & Earning Growth Chairman and CEO Terrence Curtin Solutions for Harsh Environments President, Industrial Solutions James O’Toole Building Momentum in Consumer Solutions President, Consumer Solutions Tom Lynch Capitalizing on the Broadband Revolution Chairman and C
Slide 6: Unmatched Connectivity Portfolio
UNMATCHED CONNECTIVITY PORTFOLIO Top 3 Relays Fiber #1 Optics Top 5 #1 #1 Connectors Antennas Sealing & Protecting Top 10 Sensors Top 5 Precision Wires #1 & Cables Harsh Environments page 6
Slide 7: Consistent Execution of Our Strategy
CONSISTENT EXECUTION OF OUR STRATEGY Portfolio focus Driving operational excellence through TEOA Harsh environments Balanced footprint Invest in innovation Consistent dividend Leadership in China growth and balanced use Vertical markets of capital Positioning TE for consistent double
Slide 8: Focused Connectivity Portfolio
FOCUSED CONNECTIVITY PORTFOLIO $5.5B $3.0B $3.1B $1.7B TRANSPORTATION INDUSTRIAL NETWORK CONSUMER SOLUTIONS SOLUTIONS SOLUTIONS SOLUTIONS Automotive Aerospace & Telecom Appliances Industrial Defense Enterprise Consumer Transportation Oil & Gas DataComm Devices Industrial Subcom Circuit Equipment Pro
Slide 9: Global Scale and Strength
GLOBAL SCALE AND STRENGTH $4.4B $2.2B $2.3B $4.4B AMERICAS CHINA ASIA (excluding China) EMEA 10 design centers 3 design centers 3 design centers 5 design centers 38 mfg. sites 16 mfg. sites 12 mfg. sites 33 mfg. sites 2,375 engineers 1,880 engineers 950 engineers 1,700 engineers page 9 $ reflect FY1
Slide 10: Investing in Innovation
INVESTING IN INNOVATION ~7,000 engineers 18,000+ patents million RD&E $675 investment in FY13 (5% of revenue) Top 100 Global Innovator three consecutive years(1) Leading the industry in innovation page 10 (1) Source: Thomson Reuters
Slide 11: Driving Operational Excellence Through TEOA
DRIVING OPERATIONAL EXCELLENCE THROUGH TEOA Extraordinary customer experience • NPS doubled in 5 years • Quality improved by 30% • On-time delivery near 90% Highly-engaged employees • Safety • Empowerment Accelerating productivity improvement • 15% adj. operating margins expected at $14 billion in s
Slide 12: Consistent Dividend Growth and Balanced Use of Capital
CONSISTENT DIVIDEND GROWTH AND BALANCED USE OF CAPITAL Dividends per Share $1.00 $0.92 Share $0.90 Repurchases $0.78 $3.8 billion $0.80 63% Acquisitions $0.68 $3.4 billion $0.64 $0.70 $0.60 Dividends $0.50 $1.9 billion $0.40 FY10 FY11 FY12 FY13 Expect to return ~2/3 of free cash flow to shareholders
Slide 13: Positioned to Accelerate Growth
POSITIONED TO ACCELERATE GROWTH TRANSPORTATION INDUSTRIAL NETWORK CONSUMER SOLUTIONS SOLUTIONS SOLUTIONS SOLUTIONS Very strong Strong position Well positioned Strong in position in a in a recovering in a cyclical, Appliances market with market with but improving attractive GDP-plus market Selective
Slide 14: Industrial Solutions
INDUSTRIAL SOLUTIONS TERRENCE CURTIN
Slide 15: Industrial Solutions
INDUSTRIAL SOLUTIONS $3 billion In sales in FY13 Aerospace, Defense, Oil & Gas 34% $35 billion Market ~9% TE MARKET SHARE 4-6% LONG-TERM Industrial Equipment 39% GROWTH RATE Key Trends • Urbanization • Green Energy 27% • Connected • Safe Where failure is not an option page 15
Slide 16: Attractive Market Characteristics
ATTRACTIVE MARKET CHARACTERISTICS Sales by Region Urbanization, safe, green and connected trends driving growth APAC 17% Leader in diverse harsh Americas environment applications 41% Globally-positioned EMEA 42% • FY13 sales of $0.5 billion in emerging markets Deep channel network Channel OEM Focuse
Slide 17: Aerospace, Defense, Oil & Gas
AEROSPACE, DEFENSE, OIL & GAS billion $1.0 In sales in FY13 Commercial Air 38% billion $6 Market TE MARKET 17% SHARE Defense 45% Market leader in Aerospace & Defense • Innovations that reduce weight, increase power, bandwidth and speed • Strengthened position with DEUTSCH Oil & Gas 17% • Most comple
Slide 18: Innovations Driving Growth
INNOVATIONS DRIVING GROWTH Interconnect High Performance Wire and Protection Relay and Power Solutions Integrated and Composite Solutions Most complete range of connectivity products page 18
Slide 19: Industrial Equipment
INDUSTRIAL EQUIPMENT $1.2 billion In sales in FY13 Automation & Control 48% $16 billion Market Intelligent Buildings 25% 8% TE MARKET SHARE Leading position as supplier to over 90% of large Industrial OEMs Medical 20% • Increased global factory automation is driving more electronic content • Urbaniz
Slide 20: Innovations Driving Growth
INNOVATIONS DRIVING GROWTH Interconnect Relays Cable Assemblies Integrated Solutions Broad range of connectivity solutions page 20
Slide 21: Energy
ENERGY $0.8 billion In sales in FY13 Emerging Markets 30% FY13 billion $13 Sales Developed Market Countries 70% 6% TE MARKET SHARE Leading supplier to >90% of major global energy utilities • Presence in almost every country Strong growth drivers Generation Transmission • Urbanization • Alternative e
Slide 22: Innovations Driving Growth
INNOVATIONS DRIVING GROWTH Cable Accessories Connectors & Fittings Surge Arresters Insulators Full range of solutions for medium to ultra-high voltages page 22
Slide 23: Summary
SUMMARY End markets have stabilized and are beginning to recover Vertical market focus beginning to show benefits We expect to grow 1.5x to 2x GDP • Strong geographic position • Deep channel network • Innovation investments leveraged for high-growth markets Bolt-on acquisitions to further strengthen
Slide 24: Consumer Solutions
CONSUMER SOLUTIONS JAMES O’TOOLE
Slide 25: Consumer Solutions
CONSUMER SOLUTIONS $1.7 billion In sales in FY13 Appliances 41% $19 billion Market 9% TE MARKET SHARE Consumer Devices 45% 3-5% LONG-TERM GROWTH RATE Circuit Protection 14% page 25
Slide 26: Transforming the Business
TRANSFORMING THE BUSINESS Rebuilt management team Headquartered businesses in China Focused the product portfolio Connectors Cables Organized in vertical markets Strengthening customer strategy & relationships Investing in next generation technology leadership Circuit Protection Antennas Aggressive
Slide 27: Appliances
APPLIANCES Deep relationships with all major $0.7 billion In sales in FY13 OEMs in every region Most complete range of products Innovations that improve safety, connectivity and customer supply $3 billion Market chains Operational excellence Asia (ex. #1 22% Americas 32% China) 15% China TE MARKET 2
Slide 28: Consumer Devices
CONSUMER DEVICES Building momentum with market leaders $0.8 billion In sales in FY13 Grow share in tablets and smartphones Broaden product wins with Chinese OEMs Focus product portfolio $15 billion Market Leverage TE’s broad technology base Aggressive cost reductions and implementation of TEOA FY13
Slide 29: Circuit Protection
CIRCUIT PROTECTION Leader in portable battery protection $0.2 billion In sales in FY13 Expanding into higher power solutions New products driving growth Increasing our position in automotive and industrial markets $0.5 billion Market Increasing share with Chinese OEMs Automotive #1 45% 21% Industria
Slide 30: Summary
SUMMARY Headquartered in the right place Manufacturing in the right place Building momentum with key customers Strengthening position in Korea and China Product momentum focused in the right place Expect to grow 3-5% over the long term page 30
Slide 31: Break
Break
Slide 32: Network Solutions
NETWORK SOLUTIONS TOM LYNCH
Slide 33: Large Market Poised for Growth
LARGE MARKET POISED FOR GROWTH $3.1 billion In sales in FY13 Telecom 42% Enterprise 20% $23 billion Market 13% TE MARKET SHARE DataComm 25% Subcom 13% 4-7% LONG-TERM GROWTH RATE page 33
Slide 34: Information Anywhere, Anytime
INFORMATION ANYWHERE, ANYTIME VIDEO ON 3X DEMAND Traffic increase by 2017 NEW PLAYERS Driving investment in higher-speed networks Connected devices increasing EXPONENTIALLY Governments are investing in broadband MILLIONS infrastructure, connecting OF HOMES page 34
Slide 35: The Fiber Network Is Key
THE FIBER NETWORK IS KEY FIBER to the FIBER to TOWER the BUSINESS FIBER to and in the the HOME OFFICE FIBER to SMALL CELLS FIBER to FIBER in the the NODE DATA page 35 CENTER
Slide 36: www.tefiberoptics.com
WWW.TEFIBEROPTICS.COM
Slide 37: Innovations Driving Growth
INNOVATIONS DRIVING GROWTH Reducing Installation Time Reducing Network Operating Costs High-Speed Networking World Record Undersea Networks Most complete range of connectivity products page 37
Slide 38: Telecom Networks
TELECOM NETWORKS Leader with every major carrier $1.3 billion In sales in FY13 Most complete connectivity portfolio Strong global presence ADC acquisition fully integrated $8 billion Market Markets starting to recover DAS 12% 16% TE MARKET Fiber 62% Copper 26% SHARE page 38
Slide 39: Enterprise Networks
ENTERPRISE NETWORKS Complete copper & fiber product range $0.6 billion In sales in FY13 Strong global footprint Leveraging our Telecom and Data Center capability Data center market accelerating $6 billion Market LAN market slowly recovering APAC EMEA 10% TE MARKET 32% 36% SHARE Americas 32% page 39
Slide 40: Data Communications
DATA COMMUNICATIONS Investing for high-speed leadership $0.8 billion In sales in FY13 • First to market with 25G Leveraging TE’s strength in China Aggressively pruning low-end products $8 billion Market Making progress with the turnaround EMEA 16% China 27% 10% TE MARKET Asia-Pacific Americas 31% (e
Slide 41: Subsea Communications
SUBSEA COMMUNICATIONS 30+ years of fiber transmission leadership >$2 billion of awarded contracts $0.4 billion In sales in FY13 Expanding into adjacent markets • Oil & Gas • Scientific Lean business with significant $1 billion Market operating leverage Other 10% Maintenance 20% 40%+ TE MARKET Upgrad
Slide 42: Summary
SUMMARY World’s leading fiber connectivity product portfolio Telecom demand improving Subcom project activity increasing Aggressive cost reductions and TEOA provide strong operating leverage Expect to grow 4 - 7% in the long term page 42
Slide 43: Transportation Solutions
TRANSPORTATION SOLUTIONS STEVE MERKT
Slide 44: Transportation Solutions
TRANSPORTATION SOLUTIONS $5.5 #1 billion AUTOMOTIVE AND INDUSTRIAL In sales in FY13 TRANSPORTATION LEADER $17 billion Market TE MARKET 40% SHARE IN CONNECTORS LONG- 6-8% TERM GROWTH RATE page 44
Slide 45: A Strong Attractive Market
A STRONG ATTRACTIVE MARKET More electronics Vehicle Production driving content 3 % growth at CAGR 99 88 4-6% 71 79 In millions 51 53 per year 43 Production 3-4% growth expected 1980 1990 1997 2007 2012 2015 2018 Broad-based global product growth with expanded content page 45
Slide 46: Strength in Every Key Market
STRENGTH IN EVERY KEY MARKET In all major #1 Automotive markets China America Japan North North America #1 #1 #1 #1 Top supplier Korea #1South #1 America to all OEMs EMEA Korea #1 #1 China #1 ~2,400 Japan EMEA #1 Engineers #1 designing and manufacturing close to our customers FY13 Global Production
Slide 47: Electronic Content Accelerating
ELECTRONIC CONTENT ACCELERATING 2010 & Beyond Autonomous Driving 48V Architecture Micromobility Wireless Device Charging Wireless Vehicle Charging Data Cloud Management Rolling Wi-Fi Hotspots Data Connect (tethered / untethered) 2000’s Mobile Multimedia 1990’s ACC Stop&Go Connectorized Device Contro
Slide 48: Significant Opportunity for Accelerated Growth
SIGNIFICANT OPPORTUNITY FOR ACCELERATED GROWTH 2012: $2B 2012: $600M 2012: $600M EMERGING 2020: $5B 2020: $2B 2020: $1.4B OPPORTUNITY Alternative Sensors Infotainment Antennas Power Systems Cable Assembly Lighting Connectors Relays Systems 2012: $200M 2012: $2B 2012: $10B 2012: $1.8B 2020: $600M 202
Slide 49: Innovation Leadership
INNOVATION LEADERSHIP Higher voltage Lighter weight • Aluminum • Miniaturization Sensors Integrated solutions Wireless connectivity page 49
Slide 50: Hybrid & Electric Vehicles
HYBRID & ELECTRIC VEHICLES 2x greater TE content per vehicle 3x Increase in customers with TE’s global reach and best-in-class products Production in millions of units 10.7 2.2 2013 2020 page 50
Slide 51: Industrial Transportation
INDUSTRIAL TRANSPORTATION DEUTSCH acquisition $0.7 billion In sales in FY13 • • Doubled our business Strengthened position Unmatched end-to-end product line Leading solutions for harsh environments $1.5 billion Market Adoption of new emission standards accelerating growth Agriculture 11% RV, Heavy 2
Slide 52: Summary
SUMMARY Capitalize on our leadership position to drive 6 – 8% growth DEUTSCH acquisition exceeding expectations Expanding our solution offerings Aggressively investing in emerging markets Bolt-on acquisitions to further strengthen our position page 52
Slide 53: Financial Overview
FINANCIAL OVERVIEW BOB HAU
Slide 54: FY2014 Outlook
FY2014 OUTLOOK FY13 FY14 SALES (in millions) $13,280 $13,650 to $14,150 Growth vs. Prior Year flat 3% to 7% ADJUSTED EPS $3.23 $3.50 to $3.80 Growth vs. Prior year 13% 8% to 18% FY13 Highlights FY14 Guidance • Strong results in Transportation • Transportation - Up mid-to-high single digits • Industr
Slide 55: TE Financial Objectives
TE FINANCIAL OBJECTIVES LONG TERM ORGANIC SALES GROWTH OF 5 – 7% DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION page 55
Slide 56: TE Financial Objectives
TE FINANCIAL OBJECTIVES LONG TERM ORGANIC • Growth drivers in our SALES GROWTH OF 5 – 7% markets: • Safe, green and connected DOUBLE-DIGIT • Increasing electronic content EARNINGS GROWTH • Additional growth opportunities via bolt-on FREE CASH FLOW M&A APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCAT
Slide 57: Positioned to Accelerate Growth
POSITIONED TO ACCELERATE GROWTH TRANSPORTATION INDUSTRIAL NETWORK CONSUMER SOLUTIONS SOLUTIONS SOLUTIONS SOLUTIONS Very strong Strong position Well positioned Strong in position in a in a recovering in a cyclical, Appliances market with market with but improving attractive GDP-plus market Selective
Slide 58: TE Financial Objectives
TE FINANCIAL OBJECTIVES LONG TERM ORGANIC • Improve adjusted operating SALES GROWTH OF 5 – 7% margin to 15%+ • Drive productivity DOUBLE-DIGIT improvement through EARNINGS GROWTH TE Operating Advantage FREE CASH FLOW (TEOA) APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION page 58
Slide 59: Financial Performance
FINANCIAL PERFORMANCE DOUBLE-DIGIT EPS GROWTH & STRONG CASH GENERATION FY14 FY12 FY13 Guidance Target Model Mid-Point Organic Sales Growth -3% -1% 5% 5-7% Adj. Gross Margin % 31.0% 32.6% ~33.5% >34% Adj. Operating Margin 13.2% 14.2% 15.0% >15% Double-Digit Adj. EPS $2.86 $3.23 $3.65 Growth ~Net Free
Slide 60: Improving Gross Margins
IMPROVING GROSS MARGINS >34% ADJ. GROSS MARGIN TARGET VIA VOLUME AND PRODUCTIVITY >34% 32.6% ~33.5% 31.0% FY12 FY13 FY14 Target Material reduced by 200 basis points as a Holding labor and overhead ratios flat despite percent of sales: double-digit emerging market wage inflation • TEOA tools/processe
Slide 61: 15%+ Operating Margins
15%+ OPERATING MARGINS EXPECT 15% ADJ. OPERATING MARGIN AT FY14 GUIDANCE MID-POINT 15%+ 15.0% 14.2% 13.2% FY14 FY12 FY13 Guidance Target Mid-Point Sales $13.3B $13.3B $13.9B >$14B page 61
Slide 62: TE Financial Objectives
TE FINANCIAL OBJECTIVES LONG TERM ORGANIC SALES GROWTH OF 5 – 7% DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW • History of strong free cash APPROXIMATES NET flow generation INCOME • Provides opportunities for BALANCED CAPITAL strategic investments ALLOCATION page 62
Slide 63: Strong Cash Generation
STRONG CASH GENERATION Free Cash Flow and % of Adj. Net Income $ in billions • Working capital is ~20% of 117% 110% sales • Capital expenditures $1.5 expected at 4% to 5% of 103% (1) $1.4 sales • Expect mid-teens cash tax rate as a result of utilizing net $1.3 operating losses FY11 FY12 FY13 Free ca
Slide 64: TE Financial Objectives
TE FINANCIAL OBJECTIVES LONG TERM ORGANIC SALES GROWTH OF 5 – 7% DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME • Return ~2/3 of capital to BALANCED CAPITAL shareholders ALLOCATION • Improve ROIC to >18% page 64
Slide 65: Track Record of Increasing Dividends
TRACK RECORD OF INCREASING DIVIDENDS Dividends per Share $0.92 $1.00 $0.90 $0.78 $0.80 $0.64 $0.68 $0.70 $.0.64 $0.60 $0.50 $0.40 FY10 FY11 FY12 FY13 • $1.9 billion in dividends paid to shareholders since FY08 • Dividend payout ratio target of 25-35% Expect Expect to grow to grow dividends dividends
Slide 66: Capital Deployment
CAPITAL DEPLOYMENT Cash generated since separation Major Capital Deployment • Over $8 billion free cash flow FY08 through FY13 • $1.7 billion from divestitures Debt Share • Levels are appropriate for targeted credit rating Repurchases • Since FY08, ~$800 million used for net debt $3.8 billion reduct
Slide 67: TE Financial Objectives
TE FINANCIAL OBJECTIVES LONG TERM ORGANIC SALES GROWTH OF 5 – 7% DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION page 67
Slide 68: Clear Financial Objectives
CLEAR FINANCIAL OBJECTIVES ~100% ~100% >18% >18% Double- Double- digit Double- Double- digit digit digit 5-7% Organic Sales Adj. EPS Dividend ROIC Free Cash Growth Growth Growth Conversion Increasing shareholder value page 68
Slide 69: Multiple Levers to Drive Strong Performance
MULTIPLE LEVERS TO DRIVE STRONG PERFORMANCE LONG TERM ORGANIC SALES GROWTH OF 5 – 7% • Portfolio with attractive growth drivers DOUBLE-DIGIT • Unmatched product range EARNINGS GROWTH • Strong geographic presence • TEOA FREE CASH FLOW • Attractive tax position APPROXIMATES NET INCOME • Strong cash fl
Slide 70: Questions & Answers
Questions & Answers
Slide 71: Appendix
APPENDIX
Slide 72: 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 73: Non-GAAP Measures
NON-GAAP MEASURES We present income tax expense 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 charges, and certain significant special tax items, if any (“Adjusted Inc
Slide 74: Non-GAAP Measures
NON-GAAP MEASURES “Free Cash Flow” (FCF) is a useful measure of our ability to generate cash. It also is a significant component in our incentive compensation plans. The difference between net cash provided by continuing operating activities (the most comparable GAAP measure) and FCF (the non-GAAP m
Slide 75: Reconciliation of Net Sales Growth – FY13 vs. FY12
RECONCILIATION OF NET SALES GROWTH – FY13 VS. FY12 Percentage of Change in Net Sales for the Year Ended Septem ber 27, 2013 Segm ent's Total versus Net Sales for the Year Ended Septem ber 28, 2012 Net Sales for the Acquisition/ Year Ended Organic (1) Translation (2) Divestiture Total Septem ber 27,
Slide 76: Reconciliation of Net Sales Growth – FY12 vs. FY11
RECONCILIATION OF NET SALES GROWTH – FY12 VS. FY11 Percentage of Change in Net Sales for the Year Ended Septem ber 28, 2012 Segm ent's Total versus Net Sales for the Year Ended Septem ber 30, 2011 Net Sales for the Im pact of Year Ended Organic (1) Translation (2) 53rd Week (3) Acquisitions Total Se
Slide 77: Reconciliation of Non-GAAP
RECONCILIATION OF NON-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2013 Adjustm ents Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Item s (1) (Non-GAAP) (2) ($ in m illions, except per share data) Operating Income: Tran
Slide 78: Reconciliation of Non-GAAP
RECONCILIATION OF NON-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 28, 2012 Adjustm ents Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Item s (2) (Non-GAAP) (3) ($ in m illions, except per share data) Operating Income:
Slide 79: Reconciliation of Non-GAAP
RECONCILIATION OF NON-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2011 Adjustm ents Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Item s (2) (Non-GAAP) (3) ($ in m illions, except per share data) Operating Income:
Slide 80: Reconciliation of Gross Margin and Gross Margin Percentage
RECONCILIATION OF GROSS MARGIN AND GROSS MARGIN PERCENTAGE For the Years Ended Septem ber 27, Septem ber 28, 2013 2012 ($ in millions) Net sales $ 13,280 $ 13,282 Cost of sales 8,951 9,236 Gross margin 4,329 4,046 Gross margin percentage 32.6% 30.5% Acquisition Related Charges - 75 Adjusted gross ma
Slide 81: Reconciliation of Free Cash Flow
RECONCILIATION OF FREE CASH FLOW For the Years Ended Septem ber 27, Septem ber 28, Septem ber 30, Septem ber 24, Septem ber 25, Septem ber 26, 2013 2012 2011 2010 2009 2008 (in millions) Reconciliation of Free Cash Flow: Net cash provided by continuing operating activities $ 2,048 $ 1,888 $ 1,722 $
Slide 82: Calculation of Return on Invested Capital
CALCULATION OF RETURN ON INVESTED CAPITAL For the Years Ended Septem ber 27, Septem ber 28, 2013 2012 ($ in m illions) Adjusted Operating Income(1) $ 1,881 $ 1,748 Income Taxes Paid, Net of Refunds (312) (290) 1,569 1,458 Average Invested Capital $ 10,048 $ 9,302 Return on Invested Capital (ROIC) 15
Slide 83: Reconciliation of Non-GAAP
RECONCILIATION OF NON-GAAP Financial Measures to GAAP Financial Measures for the 52 Week Year Ended September 30, 2011 For the Year Ended September 30, 2011 Adjustm ents Adjustm ent Acquisition Restructuring 53 Weeks 52 Weeks 53 Weeks Related and Other Adjusted Im pact of Adjusted U.S. GAAP Charges