Slide 1: TE Connectivity Third Quarter 2022 Earnings
TE Connectivity Third Quarter 2022 Earnings July 27, 2022 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 Record Sales & Adjusted EPS driven by strong operational performance • Sales of $4.1B, up 7% reported & 11% organically Y/Y, with organic growth across all businesses • Transportation up 8% organically Y/Y, driven by Auto & Commercial Transportation • Industrial up 13% organicall
Slide 4: Segment Orders Summary
Segment Orders Summary ($ in millions) Reported FY21 FY22 FY22 Q3 Growth • Orders reflect strong Q3 Q2 Q3 Y/Y Q/Q customer demand and supply chain volatility Transportation 2,562 2,549 2,303 (10)% (10)% • Backlog up ~20% versus Q3 FY21 • Transportation book to bill of Industrial 1,218 1,309 1,320 9%
Slide 5: Transportation Solutions
Transportation Solutions $ in Millions Q3 Sales Q3 Business Performance Reported Y/Y Growth Rates Reported Organic Up 2% Automotive $1,629 2% 9% $2,265 $2,300 Commercial Organic 400 5% 10% Transportation Up 8% Sensors 271 (4)% 2% Q3 2021 Q3 2022 Transportation $2,300 2% 8% Solutions Q3 Adjusted Oper
Slide 6: Industrial Solutions
Industrial Solutions $ in Millions Q3 Sales Q3 Business Performance Reported Y/Y Growth Rates Reported Organic Up 13% Industrial Equipment $479 27% 19% $1,134 Aerospace, Defense Organic $1,002 271 4% 9% and Marine Up 13% Energy 207 11% 17% Q3 2021 Q3 2022 Medical 177 (1)% 1% Industrial Solutions $1,
Slide 7: Communications Solutions
Communications Solutions $ in Millions Q3 Sales Q3 Business Performance Reported Y/Y Growth Rates Reported Organic Up 15% Data & Devices $417 27% 26% $578 $663 Appliances 246 (1)% 2% Organic Up 16% Communications $663 15% 16% Solutions Q3 2021 Q3 2022 Q3 Adjusted Operating Margin • Data & Devices ou
Slide 8: Q3 Financial Summary
Q3 Financial Summary ($ in Millions, except per share amounts) Q3 FY21 Q3 FY22 Net Sales $ 3,845 $ 4,097 Operating Income $ 714 $ 719 Operating Margin 18.6% 17.5% Acquisition-Related Charges 9 12 Restructuring & Other Charges, Net 11 30 Adjusted Operating Income $ 734 $ 761 Adjusted Operating Margin
Slide 9: Q3 Financial Performance
Q3 Financial Performance Sales Adjusted Operating Margin $ in Millions $3,845 $4,007 $4,097 19.1% 18.4% 18.6% Q3 2021 Q2 2022 Q3 2022 Q3 2021 Q2 2022 Q3 2022 Adjusted EBITDA 24.6% 23.2% 23.6% Margin Adjusted EPS Free Cash Flow $ in Millions FCF reflecting planned inventory build $1,545 $1.79 $1.81 $
Slide 10: Additional Information
Additional Information EVERY CONNECTION COUNTS
Slide 11: Y/Y Q3 2022 Sales and Adjusted EPS
Y/Y Q3 2022 Sales Adjusted EPS (in millions) Q3 2021 Results $3,845 $1.79 Operational Performance 488 0.17 FX Impact (236) (0.07) Tax Rate Impact - (0.03) Q3 2022 Results $4,097 $1.86 11 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation.
Slide 12: Y/Y Q4 2022 Sales and Adjusted EPS Guidance
Y/Y Q4 2022 Sales Adjusted EPS (in millions) Q4 2021 Results $3,818 $1.69 Operational Performance 657 0.27 FX Impact (275) (0.11) Tax Rate Impact - 0.00 Q4 2022 Guidance (14 weeks)* $4,200 $1.85 *Q4 includes an extra week which contributes ~$250M to Sales and ~$0.10 to Adjusted EPS 12 Adjusted EPS i
Slide 13: Q3 Balance Sheet & Cash Flow Summary
Q3 Balance Sheet & Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash & Debt ($ in Millions) Q3 2021 Q3 2022 ($ in Millions) Q3 2021 Q3 2022 Cash from Operating Activities $682 $579 Beginning Cash Balance $1,748 $749 Free Cash Flow 539 423 Capital expenditures, net (143) (170) Divi
Slide 14: Appendix
Appendix EVERY CONNECTION COUNTS
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial m
Slide 16: Non-GAAP Financial Measures (cont.)
Non-GAAP Financial Measures (cont.) • Adjusted EBITDA and Adjusted EBITDA Margin - represent net income and net income as a percentage of net sales, respectively, (the most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as
Slide 17: Segment Summary
Segment Summary For the Q uarters Ended For the Nine Months Ended June 24, June 25, June 24, June 25, 2022 2021 2022 2021 ($ in millions) Net Sales Net Sales Net Sales Net Sales Transportation Solutions $ 2,300 $ 2,265 $ 6,772 $ 6,776 Industrial Solutions 1,134 1,002 3,268 2,827 Communications Solut
Slide 18: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth C hange in Ne t Sale s for the Q uarte r Ende d June 24, 2022 ve rsus Ne t Sale s for the Q uarte r Ende d June 25, 2021 Ne t Sale s O rganic Ne t Sale s Acquisitions/ Growth (De cline ) Growth (1) Translation (2) (Dive stiture ) ($ in millions) Transportation Solu
Slide 19: Non-GAAP Reconciliation for Quarter Ended June 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 24, 2022 Adjustments Acquisition- Restructuring Related and O ther Adjusted U.S. GAAP Charges (1) Charges, Net (1)(2) Tax Items (3) (Non-GAAP) (4) ($ in millions, except per share data) Operating inco
Slide 20: Non-GAAP Reconciliation for Quarter Ended June 2021
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 25, 2021 Adjustments Acquisition- Restructuring Related and O ther Adjusted (1) (1) U.S. GAAP Charges Charges, Net (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportatio
Slide 21: Non-GAAP Reconciliation for Quarter Ended March 2021
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 25, 2021 Adjustments Acquisition- Restructuring Related and O ther Adjusted U.S. GAAP Charges (1) Charges, Net (1) Tax Items (2) (Non-GAAP) (3) ($ in millions, except per share data) Operating income
Slide 22: Non-GAAP Reconciliation for Nine Months Ended June 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 24, 2022 Adjustments Acquisition- Restructuring Related and O ther Adjusted U.S. GAAP Charges (1) Charges, Net (1)(2) Tax Items (3) (Non-GAAP) (4) ($ in millions, except per share data) Operating
Slide 23: Non-GAAP Reconciliation for Nine Months Ended June 2021
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 25, 2021 Adjustments Acquisition- Restructuring Related and O ther Adjusted (1) (1) (2) U.S. GAAP Charges Charges, Net Tax Items (Non-GAAP) (3) ($ in millions, except per share data) Operating inc
Slide 24: Non-GAAP Reconciliation for Quarter Ended September 2021
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 24, 2021 Adjustments Acquisition- Restructuring Related and O ther Adjusted U.S. GAAP Charges (1) Charges, Net (1) O ther Items (1)(2) Tax Items (3) (Non-GAAP) (4) ($ in millions, except per shar
Slide 25: Non-GAAP Reconciliation for Year Ended September 2021
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 24, 2021 Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) Other Items (1)(2) Tax Items (3) (Non-GAAP) (4) ($ in millions, except per share dat
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Q uarters Ended For the Nine Months Ended June 24, June 25, June 24, June 25, 2022 2021 2022 2021 (in millions) Net cash provided by operating activities $ 579 $ 682 $ 1,524 $ 1,902 Net cash used in investing activities (185) (174) (568) (497) Net cash used i
Slide 27: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Q uarters Ended June 24, March 25, June 25, 2022 2022 2021 ($ in millions) Net income $ 594 $ 560 $ 580 (Income) loss from discontinued operations (2) — 1 Income tax expense 116 136 124 Other income, net (4) (5) (2) Interest expens
Slide 28: 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 uarter Ending September 30, O utlook for (1) 2022 Fiscal 2022 (1) Diluted earnings per share from continuing operations $ 1.79 $ 7.04 Restructuring and other charges, net 0.16 0.34