Slide 1: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial 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
Slide 2: Q1 Highlights
Delivered revenue and EPS in line with guidance in a softening market environment Sales of $3.35B, flat Y/Y on a reported basis and up 2% organically Transportation flat organically with Auto outperforming declining production, reflecting global content growth Industrial grew 5% organically driven b
Slide 3: Segment Orders Summary
Reported FY18 FY18 FY19 Q1 Y/Y Growth Q1 Q4 Q1 Reported Organic Transportation 2,129 2,033 1,916 (10)% (8)% Industrial 942 980 1,001 6% 6% Communications 454 452 403 (11)% (10)% Total TE 3,525 3,465 3,320 (6)% (4)% Book to Bill 1.06 0.99 0.99 Segment Orders Summary ($ in millions) 4 Q1 orders declin
Slide 4: Transportation Solutions Q1 Business Performance
Y/Y Growth Rates Reported Organic Automotive $1,469 (3)% (1)% Commercial Transportation 297 (1)% 2% Sensors 220 2% 4% Transportation Solutions $1,986 (2)% 0% $ in Millions Q1 Sales Q1 Business Performance Reported Down 2% Organic Flat Y/Y Growth Rates Reported Organic Orders $1,916 (10)% (8)% Q1 Adj
Slide 5: Industrial Solutions Q1 Business Performance
Y/Y Growth Rates Reported Organic Aerospace, Defense and Marine $285 12% 13% Industrial Equipment 483 3% (1)% Energy 160 2% 6% Industrial Solutions $928 5% 5% $ in Millions Q1 Sales AD&M double digit organic growth across Commercial Aerospace, Defense, and Oil & Gas Industrial Equipment down slightl
Slide 6: Communications Solutions Q1 Business Performance
Y/Y Growth Rates Reported Organic Data & Devices $257 8% 9% Appliances 176 (4)% (2)% Communications Solutions $433 3% 5% $ in Millions Q1 Sales Data & Devices organic growth driven by high speed connectivity in the data center Appliances impacted by softness in the Asia market, partially offset by g
Slide 7: Q1 Financial Summary
*Represents Diluted Earnings (Loss) Per Share from Continuing Operations ** Q1 FY18 includes $567 million of income tax expense related to the tax impacts of the Tax Cuts and Jobs Act and a $61 million income tax benefit related to certain legal entity restructurings Adjusted Operating Income, Adjus
Slide 8: Q1 Financial Performance
$ in Millions Sales Adjusted EPS Adjusted Operating Margin Organic Net Sales Growth, Free Cash Flow, Adjusted Operating Margin and Adjusted Earnings Per Share are non-GAAP financial measures; see Appendix for descriptions and reconciliations. Q1 Financial Performance 9 Free Cash Flow Q1 FY19 Sales u
Slide 9: Q2 Outlook
Guidance* Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $3.3B to $3.4B Adjusted EPS $1.25 to $1.29 Sales down 6% reported and 2% organic Y/Y Adjusted EPS down 11% Y/Y at the midpoint FX headwind impacting sales by $155M Y/Y and Adjusted EPS b
Slide 10: FY19 Outlook
Demonstrating resiliency in weaker markets Sales of $13.45B to $13.85B Adjusted EPS of $5.35 to $5.55 Sales down 2% reported and flat organic Y/Y Adjusted EPS up low-single digits excluding headwinds from: FX impacting Sales by ~$375M and Adjusted EPS by $0.16 Tax impacting Adjusted EPS by $0.09 Dow
Slide 11: FY19 Outlook
FY19 Outlook Transportation Guidance* Highlights Down Low Single Digits Flat Organic solutions Industrial Up Low Single Digits c Se a " Up Low Single Digits Organic Sets, Down Mid Single Digits olutions Down Low Single Digits Organic Sales of $13.45B to $13.85B Adjusted EPS of $5.35 to $5. E Connect
Slide 12: Q1 2019 Sales and Adjusted EPS Bridge
Y/Y Q1 2019 13 Sales (in millions) Adjusted EPS Q1 2018 Results $3,336 $1.42 Operational Performance 84 (0.02) Non-operational Items - (0.06) FX Impact (73) (0.03) Tax Rate Impact - (0.02) Q1 2019 Results $3,347 $1.29 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and rec
Slide 13: Q2 2019 Sales and Adjusted EPS Bridge
Y/Y Q2 2019 14 Sales (in millions) Adjusted EPS Q2 2018 Results $3,562 $1.42 Operational Performance (57) (0.11) FX Impact (155) (0.05) Tax Rate Impact - 0.01 Q2 2019 Guidance $3,350 $1.27 Guidance Range: Sales of $3.3B - $3.4B Adjusted EPS of $1.25 – $1.29 Adjusted EPS is a non-GAAP financial measu
Slide 14: FY 2019 Sales and Adjusted EPS Bridge
Y/Y FY 2019 15 Sales (in millions) Adjusted EPS 2018 Results $13,988 $5.61 Operational Performance 37 0.09 FX Impact (375) (0.16) Tax Rate Impact - (0.09) 2019 Guidance $13,650 $5.45 Guidance Range Sales of $13.45B - $13.85B Adjusted EPS of $5.35 - $5.55 Adjusted EPS is a non-GAAP financial measure;
Slide 15: Q1 Balance Sheet & Cash Flow Summary
($ in Millions) Q1 2018 Q1 2019 Beginning Cash Balance $1,218 $848 Free Cash Flow 64 69 Dividends (141) (150) Share repurchases (167) (519) Proceeds from sale of discontinued operation, net - 288 Net decrease in debt (348) (28) Other 78 (3) Ending Cash Balance $704 $505 Total Debt $4,005 $3,967 ($ i
Slide 16: Q1 Balance Sheet & Cash Flow Summary
Q1 Balance Sheet & Cash Flow Summary (Sn ans) at 2018 at 2019 (Sin aions) Cash from Continuing Operations $283 $328 Beginning Cash Balance Free Cash Flow Capital expencitures, net sr) 08) Dividends Cash (collected) paid pursuant to collateral requirements related to cross currency swaps 18 (60) ‘Sha
Slide 17: Non-GAAP Financial 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 18: Non-GAAP Measure Definitions
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 19: Segment Summary
20 Segment Summary Net Sales Net Sales Transportation Solutions 1,986 $ 2,032 $ Industrial Solutions 928 882 Communications Solutions 433 422 Total 3,347 $ 3,336 $ Operating Operating Operating Operating Income Margin Income Margin Transportation Solutions 332 $ 16.7% 417 $ 20.5% Industrial Solution
Slide 20: Reconciliation of Net Sales Growth – Q1 vs. Q1
Reconciliation of Net Sales Growth – Q1 19 vs. Q1 18 21 Translation (2) Acquisition Transportation Solutions (3) : Automotive (48) $ (3.2)% (9) $ (0.6)% (39) $ - $ Commercial transportation (3) (1.0) 5 1.7 (8) - Sensors 5 2.3 8 3.8 (3) - Total (46) (2.3) 4 0.2 (50) - Industrial Solutions (3) : Indus
Slide 21: Reconciliation for Quarter Ended December 28, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 28, 2018 22 Acquisition Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 332 $ 3 $ 21 $ 356 $ Industrial So
Slide 22: Reconciliation for Quarter Ended December 29, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 29, 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 417 $ 5 $ 4 $ - $ 42
Slide 23: Reconciliation for Quarter Ended September 28, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 28, 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 341 $ 3 $ 20 $ - $
Slide 24: Reconciliation for Quarter Ended March 30, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 30, 2018 25 Restructuring Acquisition and Other Related Charges Adjusted U.S. GAAP Charges (1) (Credits), Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 427 $ 2 $ (2) $ 427 $ Indus
Slide 25: Reconciliation for Year Ended September 28, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 28, 2018 26 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 1,578 $ 12 $ 33 $ - $
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow 27 December 28, December 29, September 28, 2018 2017 2018 Net cash provided by operating activities: Net cash provided by continuing operating activities 328 $ 283 $ 922 $ Net cash provided by (used in) discontinued operating activities (31) 67 2 297 350 924 Net cash
Slide 27: Reconciliation of Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA Margin 28 December 28, December 29, 2018 2017 Net Income (Loss) 276 $ (40) $ Loss from discontinued operations 107 7 Income tax expense 78 599 Other (income) expense, net 1 (2) Interest expense 27 26 Interest income (5) (4) Operating Income 484 586 Acquisition relat
Slide 28: Adjusted Return on Invested Capital (ROIC)
Adjusted Return on Invested Capital (ROIC) 29 December 28, September 28, June 29, March 30, December 29, September 29, June 30, March 31, 2018 2018 2018 2018 2017 2017 2017 2017 Operating income 484 $ 570 $ 554 $ 621 $ 586 $ 491 $ 486 $ 435 $ Acquisition related charges 6 5 5 5 7 1 4 3 Restructuring
Slide 29: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 30 Outlook for Quarter Ending March 29, Outlook for 2019 (1) Fiscal 2019 (1) Diluted earnings per share from continuing operations (GAAP) $1.13 - $1.17 $4.94 - $5.14 Restructuring and other charg
Slide 30: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures Outlook for Quarter Ending Mareh 29, 2019 Diluted earnings per share from continuing operations (GAAP) SLIB-SLIT Restructuring and other charges, net 0.10 Acquisition related charges 02 Adjusted