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: Q1 2016 Summary
Performing well in a challenging macro environment Sales above the midpoint of Guidance, down 7% Y/Y and down 2% organically to $2.83B Adjusted EPS of $0.84, above the high end of Guidance, down 6% Y/Y and flat at constant currency Results above Guidance driven by Transportation and SubCom FX headwi
Slide 3: Segment Orders Summary
FY15 FY16 Q1 Q4 Q1 Transportation 1,668 1,480 1,583 Industrial 818 720 728 Communications Ex SubCom 515 448 408 Total TE Ex SubCom 3,001 2,648 2,719 Total TE Ex SubCom @ Constant Currency 2,846 2,653 2,758 Book to Bill Ex SubCom 1.03 0.95 1.04 Segment Orders Summary ($ in millions) 4 Stabilization i
Slide 4: Transportation Solutions
Y/Y Growth Rates Actual Organic Automotive $1,141 (7)% 1% Commercial Transportation 185 (11)% (5)% Sensors 181 1% 9% Transportation Solutions $1,507 (7)% 1% $ in Millions Sales TE Automotive sales performance driven by strength in EMEA and North America offsetting weakness in China Commercial Transp
Slide 5: Industrial Solutions
Y/Y Growth Rates Actual Organic Industrial Equipment $289 (7)% (7)% Aerospace & Defense 218 (6)% (3)% Oil and Gas 34 (44)% (44)% Energy 168 (7)% 4% Industrial Solutions $709 (10)% (6)% $ in Millions Sales EMEA strength driven by Energy and Industrial Equipment; North America and China impacted by co
Slide 6: Communications Solutions
Y/Y Growth Rates Actual Organic SubCom $222 66% 66% Appliances 131 (17)% (13)% Data & Devices 264 (27)% (25)% Communications Solutions $617 (6)% (3)% $ in Millions Sales SubCom upside driven by an early program completion; multiple programs remain in force Appliances impacted by significant weakness
Slide 7: Q1 Financial Summary
Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP measures; see Appendix for description and reconciliation. ($ in Millions, except per share amounts) Q1 FY15 Q1 FY16 Net Sales $ 3,049 $ 2,833 Operating Income $ 425 $ 398 Acquisition Related Charges 51 6 Restructurin
Slide 8: TE Operating Advantage (TEOA)
$ 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 measures; See Appendix for description and reconciliation. TE Operating Advantage (TEOA) 9 Adjus
Slide 9: Q2 Guidance
Guidance* Continued China weakness and supply chain adjustments impacting Q2 sales Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $2.88B to $3.08B Adjusted EPS $0.84 to $0.92 Sales down 3% and down 1% organic Y/Y at midpoint Sales impacted by
Slide 10: FY16 Outlook
Sales Up 4% Organically, with 15% Adjusted EPS Growth Y/Y in Constant Currency Sales of $11.9B - $12.7B Adjusted EPS of $3.80 - $4.20 Sales up 1% at midpoint, up 4% organic at midpoint FX impacting sales by ~$344M Y/Y Adjusted EPS up 11% at midpoint, with ~$0.13 FX headwind Includes a 53rd week, whi
Slide 11: FY16 Outlook
FY16 Outlook Guidance* Highlights Transportation Solutions Up Mid Single Digits Up High Single Digits Organic Industrial Solutions Flat Y/Y Up Low Single Digits Organic Communication Solutions Down High Single Digits Down Low Single Digits Organic Sales of $11.9B - $12.7B Adjusted EPS of $3.80 - $4.
Slide 12: Q1 2016 Sales and Adjusted EPS Bridge
Y/Y Q1 2016 13 Sales (in millions) Adjusted EPS Q1 2015 Results (Recast in March 23, 2015 Form 8-K) $3,049 $0.89 FX Impact (184) (0.05) Operational Performance (32) - Q1 2016 Results $2,833 $0.84 Adjusted EPS is a non-GAAP measure; See Appendix for description and reconciliation.
Slide 13: Q2 2016 Sales and Adjusted EPS Bridge
Y/Y Q2 2016 14 Sales (in millions) Adjusted EPS Q2 2015 Results $3,082 $0.91 FX Impact (73) (0.03) Operational Performance (29) - Q2 2016 Guidance $2,980 $0.88 Adjusted EPS is a non-GAAP measure; See Appendix for description and reconciliation. Guidance Range Sales $2.88B - $3.08B Adjusted EPS $0.84
Slide 14: 2016 Sales and Adjusted EPS Bridge
Y/Y 2016 15 Sales (in millions) Adjusted EPS 2015 Results $12,233 $3.60 FX Impact (344) (0.13) Operational Performance, Including Share Buyback 411 0.53 2016 Guidance* $12,300 $4.00 Adjusted EPS is a non-GAAP measure; See Appendix for description and reconciliation. * 53 Week Year Guidance Range Sal
Slide 15: Q1 Balance Sheet & Cash Flow Summary
Liquidity Summary ($ in Millions) Q1 2016 Q1 2015 Beginning Cash Balance $3,329 $2,457 Free Cash Flow 237 79 Dividends (127) (118) Share repurchases (1,249) (155) Acquisitions, net of cash required - (1,511) Repayment of long-term debt - (223) Net increase in commercial paper - 270 Proceeds from exe
Slide 16: Q1 Balance Sheet & Cash Flow Summary
Q1 Balance Sheet & Cash Flow Summary (Sinton) Cash from Continuing Operations Capital expenditures, net Tax payments, net Free Cash Flow AR-$ Days Sales Outstanding Inventory (Excl. CIP) - $ Days on Hand* Accounts Payable - $ Days Outstanding* a1 2016 $367 (138) 8 $237 $1,878 61 $1,606 78 $1,108 54
Slide 17: Non-GAAP Measures
Non-GAAP Measures “Organic Sales Growth,” “Sales in Constant Currency,” “Adjusted Gross Margin,” “Adjusted Gross Margin Percentage,” “Adjusted Operating Income,” “Adjusted Operating Income in Constant Currency,” “Adjusted Operating Margin,” “Adjusted Other Income, Net,” “Adjusted Income Tax Expense,
Slide 18: Non-GAAP Measures Definitions
Adjusted Income Tax Expense – represents income tax expense (the most comparable GAAP measure) 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 signi
Slide 19: Segment Summary for the Quarter Ended December 25, 2015
20 Segment Summary for the Quarter Ended December 25, 2015 Operating Adjusted Operating Y/Y Actual Y/Y Organic Margin for the Margin for the December 25, December 26, Sales Sales Quarter Ended Quarter Ended Segment 2015 2014 Growth Growth (1) December 25, 2015 December 25, 2015 (1) Transportation So
Slide 20: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth– Q1 16 vs. Q1 15 21 Translation (2) Acquisitions Transportation Solutions (3) : Automotive 10 $ 0.8 % (93) $ - $ (83) $ (6.8) % 76 % Commercial Transportation (11) (5.2) (13) - (24) (11.5) 12 Sensors 16 9.1 (14) - 2 1.1 12 Total 15 0.9 (120) - (105) (6.5) 100 % Ind
Slide 21: Reconciliation of Non-GAAP Measures, Quarter Ended December 25, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 25, 2015 22 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 261 $ 3 $ 16 $ - $ 280 $ Ind
Slide 22: Reconciliation of Non-GAAP Measures, Quarter Ended December 26, 2014
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 26, 2014 23 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 295 $ 41 $ 1 $ - $ 337 $
Slide 23: Reconciliation of Non-GAAP Measures, Quarter Ended March 27, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 27, 2015 24 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 323 $ 10 $ - $ - $ 333 $ In
Slide 24: Reconciliation of Non-GAAP Measures, Year Ended September 25, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2015 25 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 1,193 $ 61 $ 39 $ - $ 1,29
Slide 25: Reconciliation of Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage 26 December 25, September 25, December 26, 2015 2015 2014 Net Sales 2,833 $ 2,984 $ 3,049 $ Cost of Sales 1,888 2,016 2,029 Gross Margin 945 968 1,020 Gross Margin Percentage 33.4% 32.4% 33.5% Acquisition Related Charges 1 2 27 Adjusted Gross
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow 27 December 25, December 26, 2015 2014 Net cash provided by continuing operating activities 367 $ 205 $ Capital expenditures, net (138) (130) Payments related to pre-separation U.S. tax matters, net 1 4 Payments related to income taxes on the sale of the Broadband Ne
Slide 27: Reconciliation of Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA Margin 28 December 25, December 26, 2015 2014 Net Income 353 $ 472 $ (Income) from discontinued operations (29) (37) Income tax expense (benefit) 58 (109) Other (income) expense, net (8) 70 Interest expense 30 34 Interest income (6) (5) Operating Income 398 $ 425 $
Slide 28: Reconciliation of Forward-Looking Non-GAAP Measures for Q2 2016 and Fiscal 2016
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures for Q2 2016 and Fiscal 2016 29 Outlook for Quarter Ending March 25, Outlook for 2016 Fiscal 2016 Diluted earnings per share from continuing operations Connectivity Ltd. (GAAP) $0.78 - $0.86 $3.66
Slide 29: Impact of Changes in Foreign Currency Exchange Rates
Impact of Changes in Foreign Currency Exchange Rates for Q1 2016, Q2 2016 and Fiscal 2016 30 Adjusted Operating Net Sales Income (1) Adjusted EPS (1) Quarter ended December 26, 2014 3,049 $ 501 $ 0.89 $ Impact of changes in foreign currency exchange rates (184) (2) (30) (0.05) Operational performanc
Slide 30: Impact of Changes in Foreign Currency Exchange Rates
Impact of Changes in Foreign Currency Exchange Rates for Q1 2016, Q2 2016 and Fiscal 2016 Operating Income __Adjusted EPS.) Quarter ended December 26,2014 Ss 300 8 sols 099 Impact of changes in foreign currency exchange rates aasy® Go) 005) Operational performance @ 27 : ‘Quarter ended December 25,2