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: Q4 Highlights
Definitive agreement to sell SubCom business to Cerberus Capital Management SubCom reported in Discontinued Operations as reflected in Q4 and FY18 results Expect proceeds to be returned to shareholders through share repurchase Delivered another quarter of above market growth with double digit Adjust
Slide 3: Full Year Highlights & Guidance
Sales up 15% and Adjusted EPS up 26% Y/Y from continuing operations Delivered strong performance ahead of our business model Sales of $14B, up 15% Y/Y and up 9% organically, well ahead of the market Transportation grew double digits organically with content growth driving significant performance abo
Slide 4: Segment Orders Summary
Reported FY17 FY18 FY18 Q4 Y/Y Growth Q4 Q3 Q4 Reported Organic Transportation 1,918 2,188 2,033 6% 4% Industrial 951 1,102 980 3% 3% Communications 437 476 452 4% 4% Total TE 3,306 3,766 3,465 5% 4% Book to Bill 1.02 1.05 0.99 Segment Orders Summary ($ in millions) 5 Q4 orders growth in North Ameri
Slide 5: Transportation Solutions Q4 Business Performance
Y/Y Growth Rates Reported Organic Automotive $1,463 8% 6% Commercial Transportation 312 14% 15% Sensors 237 8% 10% Transportation Solutions $2,012 9% 8% $ in Millions Q4 Sales Q4 Business Performance Reported Up 9% Organic Up 8% Y/Y Growth Rates Reported Organic Orders $2,033 6% 4% Q4 Adjusted Opera
Slide 6: Industrial Solutions Q4 Business Performance
Y/Y Growth Rates Reported Organic Industrial Equipment $514 5% 4% Aerospace, Defense and Marine 310 9% 9% Energy 190 6% 8% Industrial Solutions $1,014 6% 6% $ in Millions Q4 Sales Industrial Equipment organic growth driven primarily by medical applications with slower growth in factory automation AD
Slide 7: Communications Solutions Q4 Business Performance
Y/Y Growth Rates Reported Organic Data & Devices $294 15% 17% Appliances 189 4% 5% Communications Solutions $483 11% 12% $ in Millions Q4 Sales Data & Devices organic growth across all regions driven by high speed connectivity in the data center and content growth from electronification trends Appli
Slide 8: Q4 Financial Summary
*Represents Diluted Earnings Per Share from Continuing Operations **Q4 FY18 includes a $1,222 million net income tax benefit associated with the tax impacts of certain intercompany transactions including an increase to the valuation allowance. Adjusted Operating Income, Adjusted Operating Margin and
Slide 9: Q4 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. Q4 Operating Metrics 10 A
Slide 10: FY18 Summary
FY18 Summary 11 Transportation Solutions Organic Up 11%* Sales Adjusted Operating Margin Communications Solutions Organic Up 11%* Sales Organic Up 9%* Sales TE Connectivity $ in Millions *Represents FY18 organic growth over the prior year. Organic Net Sales Growth and Adjusted Operating Margin are n
Slide 11: Q1 Outlook
Guidance* Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $3.33B to $3.43B Adjusted EPS $1.25 to $1.29 Sales up 1% Y/Y; Expect organic growth of 3% Y/Y Adjusted EPS down 11% Y/Y at the midpoint FX headwind impacting sales by $75M Y/Y and Adjust
Slide 12: FY19 Outlook
Expect all segments to contribute to 3% organic growth Sales of $13.9B to $14.3B Adjusted EPS of $5.60 to $5.80 Sales up 1% Y/Y; Organic growth of 3% Y/Y Adjusted EPS up high-single digits excluding negative headwinds from: FX impacting Sales by $400M and Adjusted EPS by $0.16 Tax impacting Adjusted
Slide 13: FY19 Outlook
FY19 Outlook Guidance* Highlights Transportation Solutions Up Low Single Digits Up Mid Single Digits Organic Industrial Solutions Up Low Single Digits Up Low Single Digits Organic ommunications Solutions Up Low Single Digits c Sc Up Low Single Digits Organic Sales of $13.9B to $14.3B TE Connectivity
Slide 14: 8K Recast Summary
8K Recast Summary 15 December 30, March 31, June 30, September 29, December 29, March 30, June 29, September 28, September 30, September 29, September 28, 2016 2017 2017 2017 2017 2018 2018 2018 2016 (2) 2017 2018 (in millions) Net Sales: Transportation Solutions 1,675 $ 1,755 $ 1,765 $ 1,844 $ 2,03
Slide 15: Q4 2018 Sales and Adjusted EPS Bridge
Y/Y Q4 2018 16 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q4 2017 Results $3,235 $1.13 Operational Performance 315 0.27 FX Impact (41) (0.01) Tax Rate Impact - (0.04) Q4 2018 Results $3,509 $1.35
Slide 16: FY 2018 Sales and Adjusted EPS Bridge
Y/Y FY 2018 17 Sales (in millions) Adjusted EPS 2017 Results $12,185 $4.46 Operational Performance 1,367 1.08 FX Benefit 436 0.19 Tax Rate Impact - (0.12) 2018 Results $13,988 $5.61 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation.
Slide 17: Q1 2019 Guidance Bridge
Y/Y Q1 2019 18 Sales (in millions) Adjusted EPS Q1 2018 Results $3,336 $1.42 Operational Performance 114 (0.04) Non-operational Items - (0.06) FX Impact (75) (0.04) Tax Rate Impact - (0.01) Q1 2019 Guidance $3,375 $1.27 Guidance Range: Sales of $3.33B - $3.43B Adjusted EPS of $1.25 – $1.29 Adjusted
Slide 18: FY 2019 Guidance Bridge
Y/Y FY 2019 19 Sales (in millions) Adjusted EPS 2018 Results $13,988 $5.61 Operational Performance 512 0.39 FX Impact (400) (0.16) Tax Rate Impact - (0.14) 2019 Guidance $14,100 $5.70 Guidance Range Sales of $13.9B - $14.3B Adjusted EPS of $5.60 - $5.80 New acquisitions minimally accretive in first
Slide 19: Q4 Balance Sheet & Cash Flow Summary
($ in Millions) Q4 2017 Q4 2018 Beginning Cash Balance $755 $770 Free Cash Flow 664 670 Dividends (141) (153) Share repurchases (238) (268) Acquisition (173) (153) Net increase (decrease) in Debt 332 (1) Other 19 (17) Ending Cash Balance $1,218 $848 Total Debt $4,344 $4,000 ($ in Millions) Q4 2017 Q
Slide 20: Q4 Balance Sheet & Cash Flow Summary
Q4 Balance Sheet & Cash Flow Summary (Sin mions) 062017 a62018 © Sntons) Cash from Continuing Operations $838 © $922 Beginning Cash Balance Free Cash Flow Capital expencitures, net (235) (58) Dividends Cash paid pursuant to collateral requirements Felated to cross currency swaps GO) © share repurcha
Slide 21: Non-GAAP Measures Descriptions
22 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 22: Non-GAAP Measure Definitions
23 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 23: Segment Summary
24 Segment Summary Net Sales Net Sales Net Sales Net Sales Transportation Solutions 2,012 $ 1,844 $ 8,290 $ 7,039 $ Industrial Solutions 1,014 954 3,856 3,507 Communications Solutions 483 437 1,842 1,639 Total 3,509 $ 3,235 $ 13,988 $ 12,185 $ Operating Operating Operating Operating Operating Operat
Slide 24: Net Sales Growth – Q4 vs. Q4
Reconciliation of Net Sales Growth – Q4 18 vs. Q4 17 25 Translation (2) Acquisitions Transportation Solutions (3) : Automotive 113 $ 8.4% 77 $ 5.8% (20) $ 56 $ Commercial transportation 38 13.9 40 14.6 (2) - Sensors 17 7.7 21 9.5 (4) - Total 168 9.1 138 7.5 (26) 56 Industrial Solutions (3) : Industr
Slide 25: Net Sales Growth – FY18 vs. FY17
Reconciliation of Net Sales Growth – FY18 vs. FY17 26 Translation (2) Acquisitions Transportation Solutions (3) : Automotive 864 $ 16.5% 434 $ 8.2% 213 $ 217 $ Commercial transportation 283 28.4 233 23.2 50 - Sensors 104 12.8 72 8.9 32 - Total 1,251 17.8 739 10.5 295 217 Industrial Solutions (3) : I
Slide 26: Reconciliation: Quarter Ended December 29, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 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 417 $ 5 $ 4 $ - $ 42
Slide 27: Reconciliation: Quarter Ended March 30, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 30, 2018 28 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 28: Reconciliation: Quarter Ended June 29, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 29, 2018 29 Acquisition Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 393 $ 2 $ 11 $ 406 $ Industrial Soluti
Slide 29: Reconciliation: Quarter Ended September 28, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 28, 2018 30 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 30: Reconciliation: Year Ended September 28, 2018
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 28, 2018 31 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 31: Reconciliation: Quarter Ended December 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 30, 2016 32 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 345 $ 1 $ 24 $ - $ 3
Slide 32: Reconciliation: Quarter Ended March 31, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 31, 2017 33 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 301 $ - $ 34 $ - $ 335
Slide 33: Reconciliation: Quarter Ended June 30, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 30, 2017 34 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 330 $ 1 $ 4 $ - $ 335 $
Slide 34: Reconciliation: Quarter Ended September 29, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 29, 2017 35 Restructuring Acquisition and Other Related Charges Adjusted U.S. GAAP Charges (1) (Credits), Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 318 $ 1 $ 7 $ 326 $ Ind
Slide 35: Reconciliation: Year Ended September 29, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 29, 2017 36 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 1,294 $ 3 $ 69 $ - $ 1
Slide 36: FY16 Impact of Additional Week
FY16 Impact of Additional Week 37 Adjustment Adjustment Adjustment 53 Weeks Impact of 52 Weeks 53 Weeks Impact of 52 Weeks 53 Weeks Impact of 52 Weeks U.S. GAAP 53rd Week (Non-GAAP) (1)(2) U.S. GAAP 53rd Week (Non-GAAP) (1)(2) (Non-GAAP) (2) 53rd Week (Non-GAAP) (1)(2) Net Sales: Transportation Solu
Slide 37: Net Sales Growth – FY17 vs. FY16
Reconciliation of Net Sales Growth – FY17 vs. FY16 38 Acquisitions Translation (2) (Divestiture) Transportation Solutions (3) : Automotive 316 $ 6.4% 349 $ 7.1% (33) $ - $ Commercial Transportation 172 20.8 181 21.9 (9) - Sensors 48 6.3 23 3.0 (5) 30 Total 536 8.2 553 8.5 (47) 30 Industrial Solution
Slide 38: Reconciliation: Year Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 20161 39 Restructuring Acquisition and Other Related Charges Tax Adjusted U.S. GAAP Charges (2)(3) (Credits), Net (3) Items (4) (Non-GAAP) (5) Operating Income: Transportation Solutions 1,209 $
Slide 39: Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage 40 September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Net Sales 3,509 $ 3,235 $ 13,988 $ 12,185 $ Cost of Sales 2,327 2,168 9,243 8,002 Gross Margin 1,182 1,067 4,745 4,183 Gross Margin Percentage 33.7% 33.0% 33.9% 34.
Slide 40: Free Cash Flow
Reconciliation of Free Cash Flow 41 September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Net cash provided by operating activities: Net cash provided by continuing operating activities 922 $ 838 $ 2,301 $ 2,273 $ Net cash provided by discontinued operating activities 2 35 150
Slide 41: Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA Margin 42 September 28, September 29, 2018 2017 Net Income 1,661 $ 434 $ (Income) loss from discontinued operations 13 (45) Income tax expense (benefit) (1,128) 62 Other expense, net 1 11 Interest expense 27 35 Interest income (4) (6) Operating Income 570 491 Acquis
Slide 42: Adjusted Return on Invested Capital (ROIC)
Adjusted Return on Invested Capital (ROIC) 43 September 28, September 29, September 30, 2018 2017 2016 Operating income 2,331 $ 1,876 $ Acquisition related charges 22 11 Restructuring and other charges, net 126 147 Adjusted Operating Income (1) 2,479 2,034 Amortization expense 180 169 Adjustments (2
Slide 43: Forward-Looking GAAP to Non-GAAP Reconciliation
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 44 Outlook for Quarter Ending December 28, Outlook for 2018 (1) Fiscal 2019 (1) Diluted earnings per share from continuing operations (GAAP) $1.09 - $1.13 $5.20 - $5.40 Restructuring and other ch
Slide 44: Forward-Looking GAAP to Non-GAAP Reconciliation
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures Outlook for Quarter Ending December 28, Outlook for 2018: Fiscal 2019 ° Diluted earnings per share from continuing operations (GAAP) SLO-SLIS. ~ $520-$5.40 Restructuring and other charges, net 01