Slide 1: Q4 2011 Earnings Call
Q4 2011 Earnings Call November 3, 2011
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 United States Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and
Slide 3: Q4 and Full Year Results
Q4 and Full Year Results Fourth Quarter Sales of $3.9 billion – up 25% versus prior year; up 2% organically Continued strength in Transportation and Network Solutions segments Adjusted EPS of $0.89 – up 24% versus prior year $0.81 excluding additional week, up 13% versus prior year Free Cash Flow of
Slide 4: Q4 Revenue Summary
Q4 Revenue Summary ($ in Millions) $ 1,535 Segment Q4 FY11 Q3 FY11 Q4 FY10 Y/Y Change Q/Q Change Transportation Solutions $1,426 $1,208 27% 8% Communications & Industrial Solutions 1,343 1,297 1,315 2% 4% Network Solutions 1,033 1,006 614 68% 3% Total $3,911 $3,729 $3,137 25% 5% Consumer vs. Industr
Slide 5: Transportation Solutions
Transportation Solutions Automotive Organic sales growth by region EMEA up 14% Asia up 12%, China up 22% Americas up 12% Benefit of re-stocking from Japan Share gains ($ in Millions) Aerospace, Defense & Marine Strong growth in commercial aerospace and oil & gas markets Military stable as growth in
Slide 6: Communications & Industrial Solutions
Q4 Q4 Actual Organic FY11 FY10 Growth Growth Industrial $ 420 $ 390 8% (5)% Data Communications 263 276 (5)% (14)% Appliance 208 198 5% (6)% Consumer Devices 204 215 (5)% (13)% Computer 130 124 5% (3)% Touch Solutions 118 112 5% (6)% Communications & Industrial Solutions $ 1,343 $ 1,315 2% (8)% Cons
Slide 7: Network Solutions
Network Solutions ($ in Millions) Organic sales growth is a non-GAAP measure; see Appendix for description and reconciliation. Energy Global distribution, transmission and power generation investment and share gains drive growth Subsea Communications FY11 revenue in line with expectations Bookings o
Slide 8: Q4 Financial Summary
Q4 Financial Summary ($ in Millions, except per share amounts) Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP measures; see Appendix for description and reconciliation. Q4 FY11 Q4 FY11 Q3 FY11 Q4 FY10 13 weeks 14 weeks Net Sales $ 3,634 $ 3,911 $ 3,729 $ 3,137 Ope
Slide 9: Q4 Operating Results
Q4 Operating Results Adjusted Gross Margin Performance Benefit of price actions offsetting metal inflation in Q4 Expect Q1 adjusted gross margin of ~30.5%; down sequentially due to volume decline Operating Expense Performance Expect Q1 RD&E of ~5.5% and SG&A of ~12.5% as percent of sales Adjusted Gr
Slide 10: Q4 Other Items
Q4 Other Items Net Interest Expense Expect ~$34 million in Q1 Other Income, Net Relates to Tax Sharing Agreement Expect ~$13 million in Q1 Income Taxes on Adjusted Income Expect 26% adjusted tax rate for Q1 Adjusted Other Income, Adjusted Income Tax Expense and Adjusted Effective Tax Rate are non-GA
Slide 11: Q4 Free Cash Flow and Working Capital
Q4 Free Cash Flow and Working Capital Capital spending of ~4% of sales in FY11 Expect spending of 4 to 5% of sales in FY12 Net payment of $129 million related to partial settlement of pre-separation tax matters ADC related spending (including ADC restructuring) Q4 cash spending of $28 million; $92 m
Slide 12: Q4 Liquidity and Cash
Q4 Liquidity and Cash ($ in Millions) Dividends $0.18 per share paid in September Board of Directors approved a recommendation to increase dividend by 17% Share Repurchases Repurchased ~10 million shares in Q4 FY11 Net payment of $129 million related to partial settlement of pre-separation tax matte
Slide 13: Q4 Orders Summary
Q4 Orders Summary ($ in Millions) Segment Q4 FY11 Q3 FY11 Q4 FY10 Y/Y Change Q/Q Change Transportation Solutions $ 1,554 $ 1,433 $ 1,221 27% 8% Book to Bill 1.01 1.00 1.01 Communications & Industrial Solutions 1,161 1,292 1,244 (7)% (10)% Book to Bill 0.86 1.00 0.95 Network Solutions Excl. Subsea Co
Slide 14: Q1 & FY12 Outlook
Q1 & FY12 Outlook^ $3,500 to $3,400 ^ ($ in Millions, except per share amounts) Sales $3,400 to $3,500 Growth vs Prior Year: Actual 6% 9% Organic* -1% 2% Adjusted EPS* $0.68 to $0.72 Growth vs Prior Year -7% -1% ($ in Millions, except per share amounts) Sales $14,300 to $14,900 Growth vs Prior Year:
Slide 15: Q&A
Q&A page 15/ November, 2011
Slide 16: Appendix
Appendix page 16/ November, 2011
Slide 17: 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 Income Tax Rate,” ”Adjusted Income from Continuing Operati
Slide 18: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) We have presented effective income tax rate after adjusting for the tax effect of special items including charges related to restructuring and other charges, acquisition related charges, and certain significant special tax items (“Adjusted Effective Tax Rate”). We present A
Slide 19: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) The limitation associated with using FCF is that it subtracts cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and that therefore may imply that there is less or more cash that is available for the company's programs than t
Slide 20: Net Sales Growth Reconciliation – Q4 vs. Q4
Net Sales Growth Reconciliation – Q4 11 vs. Q4 10 Translation (2) Impact of 14th Week (3) Acquisition (Divestiture) Transportation Solutions (4) : Automotive 131 $ 12.7 % 83 $ 102 $ (18) $ 298 $ 28.6 % 87 % Aerospace, Defense, and Marine 13 7.9 6 10 - 29 17.4 13 Total 144 12.0 89 112 (18) 327 27.1 1
Slide 21: Net Sales Growth Reconciliation – Q4 vs. Q3
Net Sales Growth Reconciliation – Q4 11 vs. Q3 11 Translation (2) Impact of 14th Week (3) Acquisition Transportation Solutions (4) : Automotive 2 $ 0.2 % (4) $ 102 $ - $ 100 $ 8.1 % 87 % Aerospace, Defense, and Marine - (0.1) (1) 10 - 9 4.8 13 Total 2 0.1 (5) 112 - 109 7.6 100 % Communications and I
Slide 22: Net Sales Growth Reconciliation – FY vs. FY
Net Sales Growth Reconciliation – FY 11 vs. FY 10 Translation (2) Impact of 53rd Week (3) Acquisition (Divestitures) Transportation Solutions (4) : Automotive 562 $ 13.5 % 169 $ 102 $ (82) $ 751 $ 18.0 % 88 % Aerospace, Defense, and Marine 59 9.5 10 10 - 79 12.7 12 Total 621 13.0 179 112 (82) 830 17
Slide 23: Reconciliation for Quarter Ended September 30, 2011
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 30, 2011 Acquisition Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (Non-GAAP) (2) Operating Income: Transportation Solutions 237 $ - $ 4 $ 241 $ Communications and I
Slide 24: Reconciliation for Quarter Ended September 24, 2010
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 24, 2010 Acquisition Restructuring and Integration and Other Tax Adjusted U.S. GAAP Costs Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 108 $ - $ 51 $ - $ 159 $
Slide 25: Reconciliation for Year Ended September 30, 2011
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2011 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 848 $ - $ (14) $ - $ 834 $ Co
Slide 26: Reconciliation for Year Ended September 24, 2010
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 24, 2010 Restructuring and Other Tax Other Items, Adjusted U.S. GAAP Charges, Net (1) Items (2) Net (3) (Non-GAAP) (4) Operating Income: Transportation Solutions 515 $ 94 $ - $ - $ 609 $ Communicati
Slide 27: Reconciliation for Quarter Ended December 24, 2010
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 24, 2010 Acquisition Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (Non-GAAP) (2) Operating Income: Transportation Solutions 189 $ - $ 1 $ 190 $ Communications and In
Slide 28: Reconciliation for Quarter Ended June 24, 2011
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 24, 2011 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 211 $ - $ (13) $ - $ 198 $ Comm
Slide 29: Gross Margin & Gross Margin Percentage Reconciliation
Gross Margin & Gross Margin Percentage Reconciliation September 26, September 25, September 24, September 30, December 24, March 25, June 24, September 30, 2008 2009 2010 2011 2010 2011 2011 2011 ($ in millions) Net sales 14,373 $ 10,256 $ 12,070 $ 14,312 $ 3,200 $ 3,472 $ 3,729 $ 3,911 $ Cost of sa
Slide 30: Reconciliation for 13 Week Quarter Ended September 30, 2011
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the 13 Week Quarter Ended September 30, 2011 Adjustment Acquisition Restructuring 14 Weeks 13 Weeks 14 Weeks Related and Other Adjusted Impact of Adjusted U.S. GAAP Charges (1) Charges, Net (Non-GAAP) (2) 14th Week (Non-GAA
Slide 31: Reconciliation for 52 Week Year Ended September 30, 2011
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the 52 Week Year Ended September 30, 2011 Adjustment Acquisition Restructuring 53 Weeks 52 Weeks 53 Weeks Related and Other Adjusted Impact of Adjusted U.S. GAAP Charges (1) Charges, Net Tax Items (2) (Non-GAAP) (3) 53rd We