Slide 1: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures 2 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: Q3 Highlights
Q3 performance above guidance with double digit sales and adjusted EPS growth Y/Y Sales of $3.8B, up 12% Y/Y and up 6% organically Transportation grew 12% organically, well above market, with growth in all businesses and regions Industrial grew 5% organically with growth across all business and regi
Slide 3: Segment Orders Summary
Reported FY17 FY18 FY18 Q3 Y/Y Growth Q3 Q2 Q3 Reported Organic Transportation 1,887 2,139 2,169 15% 8% Industrial 951 1,048 1,102 16% 12% Communications Ex SubCom* 432 492 476 10% 8% Total TE Ex SubCom* 3,270 3,679 3,747 15% 9% Book to Bill Ex SubCom* 1.06 1.03 1.05 Segment Orders Summary ($ in mil
Slide 4: Transportation Solutions
Y/Y Growth Rates Reported Organic Automotive $1,541 19% 10% Commercial Transportation 335 28% 22% Sensors 236 13% 8% Transportation Solutions $2,112 20% 12% $ in Millions Sales Business Performance Reported Up 20% Organic Up 12% Y/Y Growth Rates Reported Organic Orders $2,169 15% 8% Adjusted Operati
Slide 5: Industrial Solutions
Y/Y Growth Rates Reported Organic Industrial Equipment $506 11% 6% Aerospace, Defense and Marine 295 9% 6% Energy 187 5% 2% Industrial Solutions $988 9% 5% $ in Millions Sales Industrial Equipment organic growth across all regions driven by factory automation and medical applications AD&M organic gr
Slide 6: Communications Solutions
Y/Y Growth Rates Reported Organic Data & Devices $277 13% 11% Appliances 203 12% 9% SubCom 184 (32)% (32)% Communications Solutions $664 (5)% (6)% $ in Millions Sales Data & Devices organic growth across all regions driven by high speed connectivity in the data center and content growth from electro
Slide 7: Q3 Financial Summary
Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP financial measures; see Appendix for descriptions and reconciliations. *Represents Diluted Earnings Per Share from Continuing Operations ($ in Millions, except per share amounts) Q3 FY17 Q3 FY18 Net Sales $ 3,367 $ 3,
Slide 8: Operating Metrics
$ in Millions Adjusted Gross Margin Percentage Adjusted Operating Margin Free Cash Flow Adjusted Gross Margin Percentage, Free Cash Flow, Adjusted Operating Margin and Adjusted EBITDA Margin are non-GAAP financial measures; see Appendix for descriptions and reconciliations. Operating Metrics 9 Adjus
Slide 9: Q4 Outlook
Guidance* Organic growth of 5% with 6% adjusted EPS growth Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $3.59B to $3.69B Adjusted EPS $1.31 to $1.33 Sales up 5% Y/Y; Expect organic growth of 5% Y/Y Adjusted EPS up 6% Y/Y at the midpoint FX h
Slide 10: FY18 Outlook
Fiscal Year Organic growth of 6% and adjusted EPS growth of 15% Sales of $14.58B to $14.68B Adjusted EPS of $5.56 to $5.58 Sales up 12% Y/Y; Organic growth of 6% Y/Y Adjusted EPS up 15% Y/Y at midpoint Generating $0.45 of Adjusted EPS operationally FX tailwind benefiting Adjusted EPS by $0.19 Y/Y of
Slide 11: FY18 Outlook
FY18 Outlook Guidance* Highlights Up High Teens Up Low Double Digits Organic Industrial Up High Single Digits Up Mid Single Digits Organic Solutions Communications Solutions Down Low Single Digits Down Low Single Digits Organic BERRY, Sales of $14.58B to $14.68B iscal Year anic growth of 6% and adju
Slide 12: Q3 2018 Y/Y sales and adjusted EPS bridge
Y/Y Q3 2018 13 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q3 2017 Results $3,367 $1.24 Operational Performance 266 0.13 FX Impact 131 0.06 Tax Rate Impact - - Q3 2018 Results $3,764 $1.43
Slide 13: Q4 2018 Y/Y sales and adjusted EPS bridge
Y/Y Q4 2018 14 Sales (in millions) Adjusted EPS Q4 2017 Results $3,456 $1.25 Operational Performance 229 0.11 FX Impact (49) (0.02) Tax Rate Impact (0.02) Q4 2018 Guidance $3,636 $1.32 Guidance Range: Sales of $3.59B - $3.69B Adjusted EPS of $1.31 – $1.33 New acquisitions minimally accretive in firs
Slide 14: Q3 Balance Sheet & Cash Flow Summary
($ in Millions) Q3 2017 Q3 2018 Beginning Cash Balance $773 $559 Free Cash Flow 408 504 Dividends (142) (154) Share repurchases (178) (230) Acquisition (77) - Other (29) 91 Ending Cash Balance $755 $770 Total Debt $3,991 $4,008 ($ in Millions) Q3 2017 Q3 2018 Cash from Continuing Operations $524 $80
Slide 15: Q3 Balance Sheet & Cash Flow Summary
Q3 Balance Sheet & Cash Flow Summary (Sin ations Cash from Continuing Operations Capital expenditures, net Cash paid (collected) pursuant to collateral requirements related to cross currency swaps Pre-separation tax receipts, net Free Cash Flow AR Days Sales Outstanding" Inventory (Excl. CIP) Days o
Slide 16: Description of Non-GAAP Measures
18 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 financia
Slide 17: Description of Non-GAAP Measures (continued)
19 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 adjusted for net other income, inco
Slide 18: Segment Summary
20 Segment Summary Net Sales Net Sales Net Sales Net Sales Transportation Solutions 2,112 $ 1,765 $ 6,278 $ 5,195 $ Industrial Solutions 988 905 2,842 2,553 Communications Solutions 664 697 1,869 1,909 Total 3,764 $ 3,367 $ 10,989 $ 9,657 $ Operating Operating Operating Operating Operating Operating
Slide 19: Net Sales Growth – Q3 vs. Q3
Reconciliation of Net Sales Growth – Q3 18 vs. Q3 17 21 Translation (2) Acquisitions Transportation Solutions (3) : Automotive 247 $ 19.1% 130 $ 10.0% 63 $ 54 $ Commercial transportation 73 27.9 57 21.9 16 - Sensors 27 12.9 17 8.0 10 - Total 347 19.7 204 11.6 89 54 Industrial Solutions (3) : Industr
Slide 20: GAAP to Non-GAAP Reconciliation, Quarter Ended June 29, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 29, 2018 22 Acquisition Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 394 $ 2 $ 11 $ 407 $ Industrial Soluti
Slide 21: GAAP to Non-GAAP Reconciliation, Quarter Ended June 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 30, 2017 23 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 333 $ 1 $ 3 $ - $ 337 $
Slide 22: GAAP to Non-GAAP Reconciliation, Nine Months Ended June 29, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 29, 2018 24 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 1,242 $ 9 $ 13 $ - $
Slide 23: GAAP to Non-GAAP Reconciliation, Nine Months Ended June 30, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 30, 2017 25 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 986 $ 2 $ 60 $ - $ 1
Slide 24: GAAP to Non-GAAP Reconciliation, Quarter Ended September 29, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 29, 2017 26 Restructuring Acquisition and Other Related Charges Adjusted U.S. GAAP Charges (1) (Credits), Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 321 $ 1 $ 7 $ 329 $ Ind
Slide 25: GAAP to Non-GAAP Reconciliation, Year Ended September 29, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 29, 2017 27 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 26: Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage 28 June 29, June 30, 2018 2017 Net Sales 3,764 $ 3,367 $ Cost of Sales 2,547 2,227 Gross Margin 1,217 1,140 Gross Margin Percentage 32.3% 33.9% Acquisition Related Charges 1 3 Adjusted Gross Margin (1) 1,218 $ 1,143 $ Adjusted Gross Margin Per
Slide 27: Free Cash Flow
Reconciliation of Free Cash Flow 29 June 29, June 30, June 29, June 30, 2018 2017 2018 2017 Net cash provided by operating activities: Net cash provided by continuing operating activities 800 $ 524 $ 1,527 $ 1,449 $ Net cash used in discontinued operating activities - (1) - (1) 800 523 1,527 1,448 N
Slide 28: Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA Margin 30 June 29, June 30, 2018 2017 Net Income 454 $ 435 $ (Income) from discontinued operations - (3) Income tax expense 81 71 Other expense, net 1 12 Interest expense 25 32 Interest (income) (3) (3) Operating Income 558 544 Acquisition related charges 5 4 Restru
Slide 29: Adjusted Return on Invested Capital (ROIC)
Adjusted Return on Invested Capital (ROIC) 31 June 29, March 30, December 29, September 29, June 30, March 31, December 30, September 30, 2018 2018 2017 2017 2017 2017 2016 2016 Operating income 558 $ 624 $ 581 $ 541 $ 544 $ 481 $ 495 $ 529 $ Acquisition related charges 5 5 7 1 4 3 3 4 Restructuring
Slide 30: Forward-Looking to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 32 Outlook for Quarter Ending September 28, Outlook for 2018 (1) Fiscal 2018 (1) Diluted earnings per share from continuing operations (GAAP) $1.23 - $1.25 $3.79 - $3.81 Restructuring and other c
Slide 31: Forward-Looking to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures Outlook for Quarter Fading ‘September28, 2018" Diluted earnings per share from continuing operations (GAAP) 3123-515 Restructusing and othercharges, net 007 Acquisition related charges. oot Netsa