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: Q4 Highlights
Record Q4 performance above Guidance with double digit revenue and EPS growth Sales of $3.5B, up 12% Y/Y and up 9% organically Organic growth across all segments and regions Transportation grew 13% organically as content growth continues to drive market outperformance Organic growth of 6% in Industr
Slide 3: FY17 Highlights
Sales up 9% and Adjusted EPS up 22% year on year Continued strong execution with growth above market Sales of $13.1B, up 9% Y/Y and up 8% organically Double digit organic growth in Transportation with content growth driving significant performance above market Industrial Solutions grew 4% organicall
Slide 4: Segment Orders Summary
Reported FY16 FY17 FY17 Q4 Y/Y Growth** Q4** Q3 Q4 Reported Organic Transportation 1,704 1,887 1,918 13% 11% Industrial 830 951 951 15% 8% Communications Ex SubCom* 412 432 437 6% 6% Total TE Ex SubCom* 2,946 3,270 3,306 12% 10% Book to Bill Ex SubCom* 1.03 1.06 1.02 Segment Orders Summary ($ in mil
Slide 5: Transportation Solutions
Y/Y Growth Rates Reported Organic Automotive $1,350 12% 10% Commercial Transportation 274 37% 37% Sensors 220 12% 9% Transportation Solutions $1,844 15% 13% $ in Millions Sales Business Performance Reported Up 15% Organic Up 13% Y/Y Growth Rates Reported Organic Orders $1,918 13% 11% Adjusted Operat
Slide 6: Industrial Solutions
Y/Y Growth Rates Reported Organic Industrial Equipment $490 24% 13% Aerospace, Defense and Marine 284 2% 1% Energy 180 -% (2)% Industrial Solutions $954 12% 6% $ in Millions Sales Industrial Equipment organic growth across all regions driven by factory automation and medical applications AD&M perfor
Slide 7: Communications Solutions
Y/Y Growth Rates Reported Organic Data & Devices $254 5% 6% Appliances 182 10% 10% SubCom 222 (3)% (3)% Communications Solutions $658 4% 4% $ in Millions Sales Data & Devices growth driven by strength in Asia Portfolio transformation and footprint optimization favorably impact operating margins Doub
Slide 8: FY17 Summary
FY17 Summary 9 Transportation Solutions Organic Up 11% Sales Adjusted Operating Margin Communications Solutions Organic Up 7% Sales Organic Up 4% Sales Industrial Solutions Organic Up 8% Sales TE Connectivity $ in Millions Note: Amounts and comments exclude an additional week in FY16. Net Sales Excl
Slide 9: Q4 Financial Summary
Net Sales Excluding the Impact of the Additional Week, Adjusted Operating Income, Adjusted Operating Income Excluding the Impact of the Additional Week, Adjusted Operating Margin, Adjusted Operating Margin Excluding the Impact of the Additional Week, Adjusted EPS and Adjusted EPS Excluding the Impac
Slide 10: Operating Metrics
$ in Millions Adjusted Gross Margin Percentage Adjusted Operating Margin Free Cash Flow Note: Adjusted Gross Margin Percentage, Adjusted Operating Margin and Adjusted EBITDA Margin exclude an additional week in FY16. Adjusted Gross Margin Percentage, Adjusted Gross Margin Percentage Excluding the Im
Slide 11: Q1 Outlook Guidance
Guidance* Strong start to FY18 with organic growth of 5% and 9% Adjusted EPS growth Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $3.35B to $3.45B Adjusted EPS $1.23 to $1.27 Sales up 10% Y/Y; Expect organic growth of 5% Y/Y Adjusted EPS up 9
Slide 12: FY18 Outlook Guidance
4% organic growth and Adjusted EPS up 8% Y/Y Sales of $13.7B to $14.1B Adjusted EPS of $5.13 to $5.33 Sales up 6% Y/Y; Expect organic growth of 4% Y/Y Adjusted EPS up 8% Y/Y at midpoint FX tailwind benefiting sales by ~$130M Y/Y and Adjusted EPS by $0.05 Y/Y Y/Y tax rate negatively impacts Adjusted
Slide 13: FY18 Outlook
FY18 Outlook Guidance* Highlights Up High Single Digits Up Mid Single Digits Organic Industrial Solutio Up Mid Single Digits Up Mid Single Digits Organic Up Low Single Digits Up Low Single Digits Organic Sales of $13.7B to $14.1B Adjusted EPS of $5.13 to $5.33 + Expect organic Auto growth of mid-sin
Slide 14: Q4 2017 Sales and Adjusted EPS Bridge
Y/Y Q4 2017 15 Sales (in millions) Adjusted EPS Q4 2016 Results (13 weeks) $3,094 $1.14 Operational Performance 286 0.14 Acquisitions / Divestitures, net* 35 0.03 Tax Rate Impact - (0.08) FX Impact 41 0.02 Q4 2017 Results $3,456 $1.25 * The impact of Acquisitions and Divestitures is shown until one
Slide 15: FY 2017 Sales and Adjusted EPS Bridge
Y/Y FY 2017 16 1H 2H FY17 Sales (in millions) Adjusted EPS Sales (in millions) Adjusted EPS Sales (in millions) Adjusted EPS 2016 Results – 52 Weeks $5,785 $1.74 $6,215 $2.21 $12,000 $3.95 Operational Performance 429 0.36 545 0.29 974 0.65 Acquisitions / Divestitures, net* 146 0.05 76 0.05 222 0.10
Slide 16: Q1 2018 Sales and Adjusted EPS Bridge
Y/Y Q1 2018 17 Sales (in millions) Adjusted EPS Q1 2017 Results $3,063 $1.15 Operational Performance 231 0.06 FX Impact 86 0.03 Tax Rate Impact - 0.01 Q1 2018 Guidance $3,380 $1.25 Guidance Range: Sales of $3.35B - $3.45B Adjusted EPS of $1.23 – $1.27 New acquisitions minimally accretive in first ye
Slide 17: FY 2018 Sales and Adjusted EPS Bridge
Y/Y FY 2018 18 Sales (in millions) Adjusted EPS 2017 Results $13,113 $4.83 Operational Performance 657 0.39 FX Impact 130 0.05 Share Repurchase / Interest - 0.13 Tax Rate Impact - (0.17) 2018 Guidance $13,900 $5.23 Guidance Range Sales of $13.7B - $14.1B Adjusted EPS of $5.13 - $5.33 Adjusted EPS is
Slide 18: Free Cash Flow and Working Capital; Liquidity
($ in Millions) Q4 2016 Q4 2017 Beginning Cash Balance $694 $755 Free Cash Flow 604 691 Dividends (132) (141) Share repurchases (130) (238) Acquisitions and Divestiture, net (335) (173) Net Increase in Debt 32 332 Other (86) (8) Ending Cash Balance $647 $1,218 Total Debt $4,070 $4,344 ($ in Millions
Slide 19: Impact of Additional Week in Q4 FY16
Impact of Additional Week in Q4 FY16 20 Q4 2016 Q4 2017 Based on comparable 13 week basis Q4 Sales Impact of 14th Week Sales (Normalized) Q4 Sales Reported Growth Organic Growth Automotive $1,311 $(102) $1,209 $1,350 12% 10% Commercial Transportation 215 (15) 200 274 37% 37% Sensors 210 (13) 197 220
Slide 20: Impact of Additional Week in Q4 FY16
Impact of Additional Week in Q4 FY16 Q4 2016 Q4 2017 Automotive $1,314 $(102) $1,209 $1,350 12% 10% Commercial Transportation 215 (15) 200 214 37% 37% Sensors 210 (13) 197 220 12% 9% Transportation Solutions 1,736 (130) 1,606 1,844 15% 13% Industrial Equipment 427 (32) 395 490 24% 13% Aerospace, Def
Slide 21: Non-GAAP Financial Measures
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 Financial Measures (continued)
23 Adjusted Earnings Per Share Excluding the Impact of Changes in the Adjusted Effective Tax Rate – represents Adjusted Earnings Per Share calculated by applying the prior period Adjusted Effective Tax Rate to the current period. We believe this measure provides useful information regarding our Adju
Slide 23: Segment Summary
24 Segment Summary Net Sales Net Sales Net Sales Net Sales Transportation Solutions 1,844 $ 1,736 $ 7,039 $ 6,503 $ Industrial Solutions 954 919 3,507 3,215 Communications Solutions 658 677 2,567 2,520 Total 3,456 $ 3,332 $ 13,113 $ 12,238 $ Operating Operating Operating Operating Operating Operatin
Slide 24: Net Sales Growth – Q4 vs. Q4
Reconciliation of Net Sales Growth – Q4 17 vs. Q4 16 25 Translation (2) Acquisitions Transportation Solutions (3) : Automotive 39 $ 3.0% 19 $ 1.5% 20 $ - $ Commercial transportation 59 27.4 58 26.9 1 - Sensors 10 4.8 5 2.2 5 - Total 108 6.2 82 4.7 26 - Industrial Solutions (3) : Industrial equipment
Slide 25: Net Sales Growth – FY vs. FY
Reconciliation of Net Sales Growth – FY 17 vs. FY 16 26 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 Soluti
Slide 26: Non-GAAP to GAAP, Quarter Ended September 29, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 29, 2017 27 Restructuring Acquisition and Other Related Charges Adjusted U.S. GAAP Charges (1) (Credits), Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 328 $ 1 $ 7 $ 336 $ Ind
Slide 27: Non-GAAP to GAAP, Quarter Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 30, 2016 28 Restructuring Acquisition and Other Related Charges Adjusted U.S. GAAP Charges (1) (Credits), Net (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 344 $ 3 $ (6) $ 341 $ I
Slide 28: Non-GAAP to GAAP, Year Ended September 29, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 29, 2017 29 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 1,299 $ 3 $ 67 $ - $ 1
Slide 29: Non-GAAP to GAAP, Year Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2016 30 Restructuring Acquisition and Other Related Charges Tax Adjusted U.S. GAAP Charges (1)(2) (Credits), Net (2) Items (3) (Non-GAAP) (4) Operating Income: Transportation Solutions 1,191 $ 9
Slide 30: Non-GAAP to GAAP, Six Months Ended March 31, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 31, 2017 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 643 $ 1 $ 57 $ - $ 7
Slide 31: Non-GAAP to GAAP, Quarter Ended June 30, 2017
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 30, 2017 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 328 $ 1 $ 3 $ - $ 332 $
Slide 32: Non-GAAP to GAAP, Six Months Ended March 25, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 25, 2016 33 Restructuring Acquisition and Other Related Charges Tax Adjusted U.S. GAAP Charges (1) (Credits), Net (1)(2) Items (3) (Non-GAAP) (4) Operating Income: Transportation Solutions 550 $ 4
Slide 33: Non-GAAP to GAAP, Quarter Ended June 24, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 24, 2016 34 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1)(2) Charges, Net (2) Items (3) (Non-GAAP) (4) Operating Income: Transportation Solutions 297 $ 2 $ 21 $ - $ 32
Slide 34: Non-GAAP to GAAP, Quarter Ended December 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 30, 2016 35 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 343 $ 1 $ 24 $ - $ 3
Slide 35: Impact of Additional Week for Q4 2016
Impact of Additional Week for Q4 2016 36 Adjustment Adjustment Adjustment 14 Weeks Impact of 13 Weeks 14 Weeks Impact of 13 Weeks 14 Weeks Impact of 13 Weeks U.S. GAAP 14th Week (Non-GAAP) (1)(2) U.S. GAAP 14th Week (Non-GAAP) (1)(2) (Non-GAAP) (2) 14th Week (Non-GAAP) (1)(2) Net Sales: Transportati
Slide 36: Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage 38 September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Net Sales 3,456 $ 3,332 $ 13,113 $ 12,238 $ Cost of Sales 2,317 2,228 8,663 8,205 Gross Margin 1,139 1,104 4,450 4,033 Gross Margin Percentage 33.0% 33.1% 33.9% 33.
Slide 37: Free Cash Flow
Reconciliation of Free Cash Flow 39 September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Net cash provided by operating activities: Net cash provided by continuing operating activities 873 $ 782 $ 2,322 $ 2,044 $ Net cash used in discontinued operating activities - (98) (1) (9
Slide 38: Adjusted EBITDA Margin for Q4
Reconciliation of Adjusted EBITDA Margin for Q4 40 September 29, September 30, 2017 2016 Net Income 434 $ 437 $ Income from discontinued operations (5) - Income tax expense 91 52 Other expense, net 3 1 Interest expense 35 34 Interest income (6) (7) Operating Income 552 517 Acquisition related charge
Slide 39: Adjusted EBITDA Margin for Full Year
Reconciliation of Adjusted EBITDA Margin for Full Year 41 September 29, September 30, 2017 2016 Net Income 1,683 $ 2,009 $ Income from discontinued operations (10) (68) Income tax expense (benefit) 255 (779) Other expense, net 9 632 Interest expense 130 127 Interest income (20) (19) Operating Income
Slide 40: Adjusted Return on Invested Capital (ROIC)
Adjusted Return on Invested Capital (ROIC) 42 September 29, September 30, September 25, 2017 2016 2015 Operating income 2,047 $ 1,902 $ Acquisition related charges 11 32 Restructuring and other charges, net 148 2 Adjusted Operating Income (1) 2,206 1,936 Adjusted amortization expense (2) 164 144 Adj
Slide 41: Forward-Looking Non-GAAP to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 43 Outlook for Quarter Ending December 29, Outlook for 2017 (1) Fiscal 2018 (1) Diluted earnings per share from continuing operations (GAAP) $1.12 - $1.16 $4.78 - $4.98 Restructuring and other ch
Slide 42: Forward-Looking Non-GAAP to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 43 ‘Quarter Ending Dec wre from continuing operations (GAAP) SL2-SI16 010 oot Diluted earnings pe Restructuring and other charges, net Acquistion related cha Adjusted diluted ear per share from c