Slide 1: TE Connectivity Fourth Quarter 2023 Earnings
TE Connectivity Fourth Quarter 2023 Earnings November 1, 2023 EVERY CONNECTION COUNTS
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial 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 a
Slide 3: Earnings Highlights
Earnings Highlights Q4 Sales in line with Expectations & Adjusted EPS Exceeded Guidance • Sales of $4.0B, ~flat Y/Y on a reported basis, with organic growth in Transportation • Orders of $3.9B; with sequential growth in Transportation and Communications • Adjusted Operating Margins of 17.3%, with Ad
Slide 4: Segment Orders Summary
Segment Orders Summary ($ in millions) Reported FY22 FY23 FY23 Q4 Growth * * Q4 Q3 Q4 Y/Y Q/Q • Transportation orders growth Transportation 2,327 2,374 2,418 4% 2% Y/Y and sequentially reflecting ongoing stable demand • Industrial order patterns Industrial 1,172 1,183 1,058 (10)% (11)% reflecting se
Slide 5: Transportation Solutions
Transportation Solutions $ in Millions Q4 Sales Q4 Business Performance Reported Y/Y Growth Rates Reported Organic Up 6% Automotive $1,760 10% 9% $2,267 $2,413 Commercial Organic 369 (6)% (7)% Transportation Up 5% Sensors 284 3% 0% Q4 2022 Q4 2023 Transportation $2,413 6% 5% Solutions Q4 Adjusted Op
Slide 6: Industrial Solutions
Industrial Solutions $ in Millions Q4 Sales Q4 Business Performance Reported Y/Y Growth Rates Reported Organic ~Flat Industrial Equipment $388 (19)% (21)% $1,159 Aerospace, Defense Organic $1,160 323 10% 14% and Marine Down 1% Energy 231 11% 6% Q4 2022 Q4 2023 Medical 217 20% 19% Industrial Solution
Slide 7: Communications Solutions
Communications Solutions $ in Millions Q4 Sales Q4 Business Performance Reported Y/Y Growth Rates Reported Organic Down 26% Data & Devices $293 (28)% (28)% Organic $626 Appliances 170 (23)% (23)% $463 Down 27% Communications $463 (26)% (27)% Solutions Q4 2022 Q4 2023 Q4 Adjusted Operating Margin • D
Slide 8: Q4 Financial Summary
Q4 Financial Summary ($ in Millions, except per share amounts) Q4 FY22 Q4 FY23 Net Sales $ 4,053* $ 4,035 Operating Income $ 660 $ 635 Operating Margin 15.1% 15.7% Acquisition-Related Charges 15 7 Restructuring & Other Charges, Net 82 57 Impact of the 14th Week (54) - Adjusted Operating Income $ 703
Slide 9: Financial Performance
Financial Performance Sales FY23 Adjusted Operating Margin Progression $ in Millions $225* ($587)* +120bps Industrial $851* Communications ($430) Transportation FX 17.3% 16.7% 16.1% $15,975 $16,034 1H FY23 2H FY23 FY23 FY22 FY23 FY23 Adjusted EPS Progression Free Cash Flow $ in Millions $7.20 $6.74
Slide 10: Additional Information
Additional Information EVERY CONNECTION COUNTS
Slide 11: Y/Y Q4 2023 Sales and Adjusted EPS
Y/Y Q4 2023 Sales Adjusted EPS (in millions) Q4 2022 Results (13 week)* $4,053 $1.75 Operational Performance (69) 0.05 FX Impact 51 (0.03) Tax Rate Impact - 0.01 Q4 2023 Results $4,035 $1.78 * Q4 FY22 13-week view does not include the impact of the additional week which contributed sales of $306M an
Slide 12: FY 2023 1H/2H
FY 2023 1H/2H Adjusted Sales Operating Adjusted EPS (in millions) Margin 2023 1H Results $8,001 16.1% $3.17 Operational Performance (44) 0.30 FX Impact 76 0.04 Tax Rate Impact - 0.04 2023 2H Results $8,033 17.3% $3.55 FY23 Y/Y FX Headwind of $430M to Sales & $0.45 to Adjusted EPS when comparing to a
Slide 13: Y/Y Q1 2024 Sales and Adjusted EPS
Y/Y Q1 2024 Sales Adjusted EPS (in millions) Q1 2023 Results $3,841 $1.53 Operational Performance (8) 0.20 FX Impact 17 (0.02) Tax Rate Impact - (0.01) Q1 2024 Results $3,850 $1.70 Expect Strong EPS Expansion on Flat Sales Driven by Improving Operational Performance 13 Adjusted Earnings Per Share is
Slide 14: Balance Sheet & Cash Flow Summary
Balance Sheet & Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash and Debt ($ in Millions) FY22 FY23 ($ in Millions) FY22 FY23 Beginning Cash Balance $1,203 $1,088 Cash from Operating Activities $2,468 $3,132 Free Cash Flow 1,783 2,404 (662) (728) Capital expenditures, net Dividen
Slide 15: Appendix
Appendix EVERY CONNECTION COUNTS
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial m
Slide 17: Non-GAAP Financial Measures (cont.)
Non-GAAP Financial Measures (cont.) • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, tax s
Slide 18: Segment Summary
Segment Summary For the Q uarte rs Ende d For the Ye ars Ende d Se pte mbe r 29, Se pte mbe r 30, Se pte mbe r 29, Se pte mbe r 30, 2023 2022 2023 2022 ($ in millions) Ne t Sale s Ne t Sale s Ne t Sale s Ne t Sale s Transportation Solutions $ 2,413 $ 2,447 $ 9,588 $ 9,219 Industrial Solutions 1,159
Slide 19: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth Change in Ne t Sale s for the Q uarte r Ende d Se pte mbe r 29, 2023 ve rsus Ne t Sale s for the Q uarte r Ende d Se pte mbe r 30, 2022 Ne t Sale s O rganic Ne t Sale s Acquisitions/ Growth (De cline ) Growth (De cline ) (1) Translation (2) (Dive stiture ) ($ in mi
Slide 20: Non-GAAP to GAAP Reconciliation, Quarter Ended September 29, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 29, 2023 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) Tax Ite ms (2) (Non-GAAP) (3) ($ in millions, e xce pt pe r share data)
Slide 21: Non-GAAP to GAAP Reconciliation, Quarter Ended September 30, 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 30, 2022 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) (2) U.S. GAAP Charge s Charge s, Ne t Tax Ite ms (Non-GAAP) (3) ($ in millions, e xce pt pe r share data)
Slide 22: Non-GAAP to GAAP Reconciliation, Year Ended September 29, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 29, 2023 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) Tax Ite ms (2) (Non-GAAP) (3) ($ in millions, e xce pt pe r share data) Op
Slide 23: Non-GAAP to GAAP Reconciliation, Year Ended September 30, 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2022 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1)(2) (3) U.S. GAAP Charge s Charge s, Ne t Tax Ite ms (Non-GAAP) (4) ($ in millions, e xce pt pe r share data)
Slide 24: Non-GAAP to GAAP Reconciliation, Quarter Ended December 30, 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 30, 2022 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating incom
Slide 25: Non-GAAP to GAAP Reconciliation, Six Months Ended March 31, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 31, 2023 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating incom
Slide 26: Non-GAAP to GAAP Reconciliation, Quarter Ended June 30, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 30, 2023 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) U.S. GAAP Charge s Charge s, Ne t (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating income: T
Slide 27: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Q uarte rs Ende d For the Ye ars Ende d Se pte mbe r 29, Se pte mbe r 30, Se pte mbe r 29, Se pte mbe r 30, 2023 2022 2023 2022 (in millions) Net cash provided by operating activities $ 1,138 $ 944 $ 3,132 $ 2,468 Net cash used in investing activities (195) (
Slide 28: Free Cash Flow Conversion
Free Cash Flow Conversion For the Ye ar Ende d Se pte mbe r 29, 2023 ($ in millions) Free cash flow (1) $ 2,404 Adjusted income from continuing operations (1) $ 2,137 Free cash flow conversion (1) 112.5 % (1) See description of non-GAAP financial measures. 28
Slide 29: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Q uarte rs Ende d For the Ye ars Ende d Se pte mbe r 29, Se pte mbe r 30, Se pte mbe r 29, Se pte mbe r 30, 2023 2022 2023 2022 ($ in millions) Net income $ 552 $ 708 $ 1,910 $ 2,428 (Income) loss from discontinued operations 1 — (
Slide 30: Adjusted EBITDA and Margin by Segment - QTD
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment - QTD For the Q uarte rs Ende d Se pte mbe r 29, 2023 Se pte mbe r 30, 2022 Transportation Industrial Communications Transportation Industrial Communications Solutions Solutions Solutions Total Solutions Solutions Solutions Tota
Slide 31: Adjusted EBITDA and Margin by Segment - YTD
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment - YTD For the Ye ars Ende d Se pte mbe r 29, 2023 Se pte mbe r 30, 2022 Transportation Industrial Communications Transportation Industrial Communications Solutions Solutions Solutions Total Solutions Solutions Solutions Total ($
Slide 32: Impact of Additional Week on Net Sales - QTD
Impact of Additional Week on Net Sales - QTD Change in Ne t Sale s for the Q uarte r Ende d Change in O rganic Ne t Sale s for the Q uarte r Ende d Se pte mbe r 29, 2023 ve rsus Ne t Sale s for the Se pte mbe r 29, 2023 ve rsus O rganic Ne t Sale s for the For the Q uarte r Ende d Se pte mbe r 30, 2
Slide 33: Impact of Additional Week on Net Sales - YTD
Impact of Additional Week on Net Sales - YTD Change in Ne t Sale s for Fiscal 2023 Change in O rganic Ne t Sale s for Fiscal 2023 Fiscal 2022 ve rsus Ne t Sale s for Fiscal 2022 ve rsus O rganic Ne t Sale s for Fiscal 2022 Adjustme nt Adjustme nt Adjustme nt 53 We e ks Impact of 52 We e ks 53 We e k
Slide 34: Impact of Additional Week - QTD
Impact of Additional Week - QTD Adjustme nts Adjustme nt Acquisition- Re structuring 14 We e ks 13 We e ks Re late d and O the r Adjuste d Impact of Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) Tax Ite ms (2) (Non-GAAP) (3) 14th We e k (Non-GAAP) (3)(4) ($ in millions, e xce pt pe r share dat
Slide 35: Impact of Additional Week - YTD
Impact of Additional Week - YTD Adjustme nts Adjustme nt Acquisition- Re structuring 53 We e ks 52 We e ks Re late d and O the r Adjuste d Impact of Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1)(2) Tax Ite ms (3) (Non-GAAP) (4) 53rd We e k (Non-GAAP) (4)(5) ($ in millions, e xce pt pe r share
Slide 36: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures O utlook for Q uarte r Ending De ce mbe r 29, O utlook for 2023 (1) Fiscal 2024 (1) Diluted earnings per share from continuing operations $ 1.59 Restructuring and other charges, net 0.10 Acquisit