Slide 1: UBS Global Technology Conference
UBS Global Technology Conference November, 2014 Bob Hau Chief Financial Officer
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures 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 subj
Slide 3: A World Leader in Connectivity
A World Leader in Connectivity Solving connectivity challenges across industries Transportation Solutions Industrial Solutions Network Solutions Consumer Solutions With the broadest range of products Connectors Fiber Optics Circuit Sealing & Wireless Sensors Protection Protection And extensive globa
Slide 4: The Leader in Connectivity Solutions for Harsh Applications
The Leader in Connectivity Solutions for Harsh Applications HIGH/LOW VIBRATION UNDERSEA HIGH VOLTAGE MOISTURE TEMPERATURE ~70% of revenue from harsh environments 4
Slide 5: Positioned To Accelerate Growth
Positioned To Accelerate GROWTH $6.1B $3.3B $2.9B $1.6B TRANSPORTATION INDUSTRIAL NETWORK CONSUMER SOLUTIONS SOLUTIONS SOLUTIONS SOLUTIONS Very strong Strong position Well positioned in Strong in position in a in a recovering a cyclical, but Appliances market with market with GDP- improving market a
Slide 6: TE Is the World Leader in Connectivity With the Broadest Portfolio of Sensors
TE Is the World Leader in Connectivity With the Broadest Portfolio of Sensors TE Connectivity Broadest range of connectivity solutions /// Highly-engineered products /// ~$10B CONNECTOR1 Global scale /// Leadership in harsh environments /// TEOA SALES IN FY14 Measurement Specialties Pressure Positio
Slide 7: If Data, Power, or Signal Moves Through It, TE Connects and Senses It
If Data, Power, or Signal Moves Through It, TE Connects and Senses It AUTOMOTIVE INDUSTRIAL TRANSPORTATION ENERGY NETWORKS AEROSPACE & DEFENSE BROADBAND NETWORKS OIL & GAS EVERY CONNECTION COUNTS APPLIANCES INDUSTRIAL EQUIPMENT MEDICAL CONSUMER EQUIPMENT DEVICE 7
Slide 8: Financial Performance
Financial Performance DOUBLE-DIGIT EPS GROWTH & STRONG CASH GENERATION Target FY12 FY13 FY14 Model Revenue $13.3B $13.3B $13.9B 5-7% organic growth Adj. Gross Margin % 33.8% >34% 32.6% 31.0% Adj. Operating Margin 15.4% >15% 13.2% 14.2% Double- Adj. EPS $2.86 $3.23 $3.79 Digit Growth ~Net Free Cash F
Slide 9: Consistent Dividend Growth and Balanced Use of Capital
Consistent Dividend Growth and Balanced Use of Capital Major Capital Deployment Dividends per Share* FY08 through FY14 $1.08 $1.10 $1.00 $0.92 Share $0.90 Repurchases $0.78 14% CAGR $4.4 billion $0.80 63% Acquisitions $3.9 billion $0.68 $0.70 $0.64 $0.60 $0.50 Dividends $2.3 billion $0.40 FY10 FY11
Slide 10: Driving Shareholder Value
Driving Shareholder Value • Growth drivers in our markets: Deliver 5 – 7% Favorable trends lead to connectivity growth – Green, Data Organic Revenue Growth, Communications, Electronic Content Growth High growth regions • Fuel future growth through RD&E investments of 5% of sales • Strengthen our
Slide 11: Appendix
Appendix
Slide 12: Non-GAAP Measures
Non-GAAP Measures “Organic Sales Growth,” “Adjusted Gross Margin,” “Adjusted Gross Margin Percentage,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted Other Income, Net,” “Adjusted Income Tax Expense,” “Adjusted Effective Tax Rate,” “Adjusted Income from Continuing Operations,” “
Slide 13: Non-GAAP Measures
Non-GAAP Measures We present income tax expense after adjusting for the tax effect of special items including charges related to restructuring and other charges, acquisition related charges, impairment charges, other income or charges, and certain significant special tax items, if any (“Adjusted Inc
Slide 14: Non-GAAP Measures
Non-GAAP Measures “Free Cash Flow” (FCF) is a useful measure of our ability to generate cash. It also is a significant component in our incentive compensation plans. The difference between net cash provided by continuing operating activities (the most comparable GAAP measure) and FCF (the non-GAAP m
Slide 15: Reconciliation of Gross Margin and Gross Margin Percentage
Reconciliation of Gross Margin and Gross Margin Percentage For the Ye ars Ende d Se pte mbe r 26, Se pte mbe r 27, Se pte mbe r 28, 2014 2013 2012 ($ in millions) Net Sales $ 13,912 $ 13,280 $ 13,282 Cost of Sales 9,220 8,951 9,236 Gross Margin 4,692 4,329 4,046 Gross Margin Percentage 33.7% 32.6% 3
Slide 16: Reconciliation of Non-GAAP financial measures for the Year Ended September 28, 2012
Reconciliation of Non-GAAP financial measures for the Year Ended September 28, 2012 Adjustm ents Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Item s (2) (Non-GAAP) (3) ($ in m illions, except per share data) Operating Income $ 1,518 $ 116 $ 114 $ - $ 1,
Slide 17: Reconciliation of Non-GAAP financial measures for the Year Ended September 27, 2013
Reconciliation of Non-GAAP financial measures for the Year Ended September 27, 2013 Adjustm ents Acquisition Restructuring Related and Other Tax Adjusted (1) U.S. GAAP Charges Charges, Net Item s (Non-GAAP) (2) ($ in m illions, except per share data) Operating Income $ 1,556 $ 14 $ 311 $ - $ 1,881 O
Slide 18: Reconciliation of Non-GAAP financial measures for the Year Ended September 26, 2014
Reconciliation of Non-GAAP financial measures for the Year Ended September 26, 2014 Adjustments Acquisition Re structuring Re late d and O ther Tax Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t Items (2) (Non-GAAP) (3) ($ in millions, exce pt pe r share data) Operating Income: Transportation Solut
Slide 19: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Years Ended September 26, September 27, September 28, September 30, September 24, September 25, September 26, 2014 2013 2012 2011 2010 2009 2008 (in millions) Reconciliation to Free Cash Flow: Net cash provided by continuing operating activities $ 2,095 $ 2,0