Slide 1: Q1 2014 Earnings Call
Q1 2014 Earnings Call January 22, 2014
Slide 2: Forward-Looking Statements
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 subject to risks, uncertainty and changes in circumst
Slide 3: Summary: Strong Start to the Fiscal Year
Summary Organic Sales Growth, Adjusted EPS, Adjusted Operating Margin, and Free Cash Flow are non-GAAP measures; see Appendix for description and reconciliation. Sales of $3.33 billion; up 7% organically versus prior year Adjusted EPS of $0.82, a Q1 record and up 26% versus prior year Adjusted Opera
Slide 4: Q1 Revenue Summary
Q1 Revenue Summary Organic Sales Growth is a non-GAAP measure; see Appendix for description and reconciliation. ($ in Millions) page 4 7 Percent Organic Growth / January 2014 Actual Organic Segment Q1 FY14 Q1 FY13 Growth Growth Transportation Solutions $1,440 $1,264 14% 14% Industrial Solutions 763
Slide 5: Transportation Solutions Q1 Summary
Transportation Solutions Q1 Summary Organic Sales Growth, Adjusted Operating Income, and Adjusted Operating Margin are non-GAAP measures; see Appendix for description and reconciliation. page 5 ($ in Millions) / January 2014 Revenue up 14%; global vehicle production up ~4% Double-digit sales increas
Slide 6: Industrial Solutions Q1 Summary
Industrial Solutions Q1 Summary Organic Sales Growth, Adjusted Operating Income, and Adjusted Operating Margin are non-GAAP measures; see Appendix for description and reconciliation. page 6 ($ in Millions) / January 2014 Increasing demand for Industrial equipment due to improving economic conditions
Slide 7: Network Solutions Q1 Summary
Network Solutions Q1 Summary ($ in Millions) Organic Sales Growth, Adjusted Operating Income, and Adjusted Operating Margin are non-GAAP measures; see Appendix for description and reconciliation. page 7 / January 2014 Telecom Networks growth driven by fiber growth in EMEA and South America Data Comm
Slide 8: Q1 Financial Summary
Q1 Financial Summary ($ in Millions, except per share amounts) Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP measures; see Appendix for description and reconciliation. page 9 / January 2014 $ 0.65 $ 0.82 (0.16) (0.04) 0.01 - 0.15 0.01 $ 0.65 $ 0.85 12.4% 14.6% 9.
Slide 9: Q1 Operating Results & Other Items
Q1 Operating Results & Other Items ($ in Millions) Adjusted Other Income, Adjusted Income Tax Expense and Adjusted Effective Tax Rate are non-GAAP measures; see Appendix for description and reconciliation. Gross Margin Percentage Operating Expenses Other Items page 10 / January 2014 Q1 FY13 Q2 FY13
Slide 10: Q1 Balance Sheet and Cash Flow Summary
Q1 Balance Sheet and Cash Flow Summary Free Cash Flow is a non-GAAP measure; see Appendix for description. Liquidity, Cash & Debt Free Cash Flow and Working Capital page 11 / January 2014 ($ in Millions) Q1 FY14 Q1 FY13 Cash from Continuing Operations 387 $ 393 $ Capital expenditures, net (121) (124
Slide 11: Q2 Outlook
Q2 Outlook^ ^ Assumes foreign exchange rates and commodity prices that are consistent with current levels. * Organic Sales Growth and Adjusted EPS are non-GAAP measures; see Appendix for description. Transportation Solutions Revenue up 10-12% vs. prior year Global auto production expected to be up ~
Slide 12: FY14 Outlook
FY14 Outlook^ ^ Assumes foreign exchange rates and commodity prices that are consistent with current levels. * Organic Sales Growth and Adjusted EPS are non-GAAP measures; see Appendix for description. Raised mid-point of adjusted EPS guidance $0.10 to $3.75 Transportation Solutions – up ~10% vs. pr
Slide 13: Q&A
Q&A page 14 / January 2014
Slide 14: Appendix
Appendix page 15 / January 2014
Slide 15: Non-GAAP Measures
Non-GAAP Measures “Organic Sales Growth,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted Other Income, Net,” “Adjusted Income Tax Expense,” “Adjusted Effective Tax Rate,” ”Adjusted Income from Continuing Operations,” “Adjusted Earnings Per Share,” and “Free Cash Flow” (FCF) are
Slide 16: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) We present income from continuing operations attributable to TE Connectivity Ltd. before special items including charges or income related to legal settlements and reserves, restructuring and other charges, acquisition related charges, impairment charges, tax sharing income
Slide 17: Reconciliation of Net Sales Growth – Q1 vs. Q1
Reconciliation of Net Sales Growth– Q1 14 vs. Q1 13 page 18 / January 2014 Translation (2) Divestitures Transportation Solutions (3) : Automotive 176 $ 13.9 % - $ - $ 176 $ 13.9 % 100 % Total 176 13.9 - - 176 13.9 100 % Industrial Solutions (3) : Industrial Equipment 28 9.5 (1) - 27 9.2 42 Aerospace
Slide 18: Reconciliation of Net Sales Growth by Segment and Geography
Reconciliation of Net Sales Growth by Segment and Geography – Q1 14 vs. Q1 13 page 19 / January 2014 Translation (2) Divestitures Transportation Solutions : EMEA 54 $ 10.8 % 26 $ - $ 80 $ 15.9 % Asia–Pacific 78 16.9 (20) - 58 12.5 Americas 44 14.9 (6) - 38 12.9 Total 176 13.9 - - 176 13.9 Industrial
Slide 19: Reconciliation of Non-GAAP Measures, Quarter Ended December 27, 2013
page 20 / January 2014 Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 27, 2013 Restructuring and Other Tax Adjusted U.S. GAAP Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 296 $ 1 $ - $ 297 $ Industrial Solut
Slide 20: Reconciliation of Non-GAAP Measures, Quarter Ended December 28, 2012
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 28, 2012 page 21 / January 2014 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 192 $ 3
Slide 21: Reconciliation of Non-GAAP Measures, Quarter Ended March 29, 2013
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 29, 2013 page 22 / January 2014 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 241 $ 1 $ 1
Slide 22: Reconciliation of Non-GAAP Measures, Year Ended September 27, 2013
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2013 page 23 / January 2014 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 972 $ 7 $
Slide 23: Realignment of Certain Businesses – Impact to Net Sales
Realignment of Certain Businesses – Impact to Net Sales page 24 / January 2014 For the Quarters Ended For the Years Ended September 27, June 28, March 29, December 28, September 28, June 29, March 30, December 30, September 27, September 28, Segment and Industry End Markets 2013 2013 2013 2012 2012
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