Te Connectivity Plc · NYSE:TEL
Te Connectivity — Merger or Acquisition (February 2016)
13 slides from Te Connectivity's merger presentation, Feb 2, 2016
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: Our Connected World
$170 BILLION Our Connected World TE is the World Leader in Connectivity & Sensor Solutions CONNECTIVITY AND SENSOR MARKET 12+ TE ANNUAL REVENUE Aerospace & Defense Appliances Commercial Transportation Automotive Data & Devices Industrial Equipment Subsea Communications Energy Oil & Gas BILLION Our h
Slide 3: Expanding Our Harsh Environment Leadership
Expanding Our Harsh Environment Leadership 4 High quality and extreme reliability demands Product failure is not an option Excellence in complex engineering and manufacturing Proven application know-how, system-level solutions Rigid regulatory certifications BUILDING OUR HARSH ENVIRONMENT PLATFORMS
Slide 4: Compelling Strategic Rationale
Expands TE’s harsh environment leadership Complements TE’s strengths, product portfolio and capabilities Establishes TE as a leader in the attractive space of minimally invasive interventional products Boosts revenue growth and adjusted EBITDA margins Compelling Strategic Rationale 5 CREATES LEADING
Slide 5: Attractiveness of the $3B Interventional Market
Favorable demographics with aging population Increasing demand for minimally invasive procedures Focus on reducing hospital stay and related costs Expected market growth rates of 7% Secular growth trends of healthcare spending & outsourcing Increased access to healthcare in emerging markets OEMs rel
Slide 6: Creganna Medical Overview
Creganna Medical Overview 7 Leading designer and manufacturer of minimally invasive Interventional devices ~$250M FY 2015 revenue with high single-digit growth; 24% EBITDA margins Strategic supplier to the Top Interventional OEMs Global customer base: ~40% of revenue outside the U.S. Industry-leadin
Slide 7: TE Becomes the Broadest Solution Provider
BRINGS COMPLEMENTARY STRENGTHS ENABLES TE TO ADDRESS > 90% OF THE CONTENT IN INTERVENTIONAL DEVICES TE Becomes the Broadest Solution Provider 8 Well positioned to serve the leading medical device OEMs driving advanced Interventional therapies Creganna strength TE strength Laser-cut Metal hypotubes W
Slide 8: Transaction highlights
Transaction highlights 9 Transaction Value Financial Impact Timing Revenue and Cost Synergies Capital $895M purchase price Approximately 12x expected FY16 EBITDA post run rate synergies Cross-selling revenue synergy opportunities Significant cost savings through application of TEOA & tax synergies E
Slide 9: Summary
Summary 10 Furthers TE’s strategy to expand our leadership in attractive harsh environment applications Establishes TE as a leading supplier in a fast-growing segment of the medical device market Leverages TE’s strengths in engineering, manufacturing and portfolio breadth Acquisition will be accreti
Slide 10: Non-GAAP Measures
Non-GAAP Measures 12 ”Adjusted Operating Income”, “Adjusted Operating Margin,” “Adjusted Earnings Per Share,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “EBITDA,” and “Free Cash Flow” are non-GAAP measures and should not be considered replacements for results in accordance with accounting principl
Slide 11: Non-GAAP Measures, continued
Non-GAAP Measures, continued Adjusted EBITDA and Adjusted EBITDA Margin - represent net income and net income as a percentage of net sales (the most comparable GAAP measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net other income, inc
Slide 12: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA 14 September 25, September 24, 2015 2010 (1) Net Income 2,420 $ 1,103 $ Minority interest - 6 Income from discontinued operations (1,182) (44) Income tax expense 337 493 Other (income) expense, net 55 (177) Interest expense 136 155 Interest income (17)
Slide 13: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA ph Net Income s Minority interest Income from discontinued operations Income taxexpense ‘Other (income) expense, net Interest expense Interest income 1) Operating Income 5 LW S156 Acquisition related charges 4 8 Restructuring and other charges, net”) 4
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