Te Connectivity Plc · NYSE:TEL
Te Connectivity — Investor Presentation (June 2017)
18 slides from Te Connectivity's investor presentation, Jun 1, 2017
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: TE Connectivity is an Industrial Technology Company
TE CONNECTIVITY IS AN INDUSTRIAL TECHNOLOGY COMPANY CREATING A SAFER, SUSTAINABLE, PRODUCTIVE AND CONNECTED FUTURE 3 Automotive Sensors Commercial Transportation Aerospace & Defense Oil & Gas Industrial Equipment Medical Energy Data & Devices Appliances Subsea Communications WORLD LEADER in connecti
Slide 3: Successful Portfolio Transformation
1 2016 revenue flow through versus 2010 Adjusted Operating Margin and Adjusted Earnings Per Share are non-GAAP measures; See Appendix for descriptions and reconciliations Successful Portfolio Transformation 2010 2011 2012 2013 2014 2015 2016 4 Fy16 Adjusted Operating Margin HARSH REVENUE UP TO 80% ~
Slide 4: Positioned for Above-Market Growth
Positioned for Above-Market Growth 2014 5 Portfolio is TRANSFORMED and FIRING on all cylinders GROWTH in Industrial and Communications with MARGIN EXPANSION initiatives Expect to OUTGROW our markets due to secular trend of CONTENT growth CONSISTENT capital strategy with FOCUSED M&A
Slide 5: Content Growth is a Secular Trend Across Our Businesses
Content Growth is a Secular Trend Across Our Businesses $6.5B $2.5B $3.2B TRANSPORTATION SOLUTIONS FISCAL 2016 SALES SECULAR GROWTH DRIVERS INDUSTRIAL SOLUTIONS COMMUNICATIONS SOLUTIONS 6 4-6% AUTO CONTENT GROWTH PER YEAR ADAS/ Safety Emissions & Infotainment Sensor Expansion Smart Factory New Aircr
Slide 6: Track Record of Improving Performance
Dividends Paid Per Share Track Record of Improving Performance $ in billions except per share amounts Net Sales 11% VS. FY13 Organic Sales Growth, Adjusted Operating Margin and Adjusted Earnings Per Share are non-GAAP measures; See Appendix for descriptions and reconciliations Adjusted Earnings Per
Slide 7: Positioned for Revenue Growth & Margin Expansion
Adjusted Operating Margin and Free Cash Flow are non-GAAP measures; See Appendix for description. Positioned for Revenue Growth & Margin Expansion Strong Track Record of Profitability Improvement and Capital Allocation Portfolio Transformation 80% HARSH REVENUE UP TO From 60% in 2010 Capital Allocat
Slide 8: Focused Portfolio Positioned for Growth
Focused Portfolio Positioned for Growth Strong Track Record of Profitability Improvement and Capital Allocation V) Capital Allocation & Profitability Improvement Positioned for Revenue Growth & Margin Expansion ~16% Fy16aduusTED OPERATING MARGIN +21 0bps Faom2010 + World leader in connectivity and s
Slide 9: Non-GAAP Measures
Non-GAAP Measures 10 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 measures
Slide 10: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) 11 Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition related charges, tax sharing income related to adjustments t
Slide 11: Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 12 Outlook for Quarter Ending June 30, 2017 (1) Diluted earnings per share from continuing operations (GAAP) $1.08 - $1.12 Restructuring and other charges, net 0.05 Acquisition related charges 0.
Slide 12: Net Sales Growth
Reconciliation of Net Sales Growth 13 Acquisitions Translation (2) (Divestiture) Change in Net Sales for Fiscal 2016 versus Net Sales for Fiscal 2015 Transportation Solutions 152 $ 2.4% 310 $ 4.9% (174) $ 16 $ Industrial Solutions 36 1.1 (89) (2.8) (63) 188 Communications Solutions (183) (6.8) (43)
Slide 13: Non-GAAP to GAAP Financial Measures for Year Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2016 14 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 14: Impact of Additional Week for Fiscal 2016
15 Impact of Additional Week for Fiscal 2016 Adjustment Adjustment Adjustment 53 Weeks Impact of 52 Weeks 53 Weeks Impact of 52 Weeks 53 Weeks Impact of 52 Weeks U.S. GAAP 53rd Week (Non-GAAP) (1)(2) U.S. GAAP 53rd Week (Non-GAAP) (1)(2) (Non-GAAP) (2) 53rd Week (Non-GAAP) (1)(2) Net Sales: Transpor
Slide 15: Non-GAAP to GAAP Financial Measures for Year Ended September 25, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2015 16 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 1,193 $ 61 $ 39 $ -
Slide 16: Non-GAAP to GAAP Financial Measures for Year Ended September 27, 2013
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2013 17 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 934 $ 7 $ 39 $ - $ 980
Slide 17: Non-GAAP to GAAP Financial Measures for Year Ended September 24, 2010
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 24, 2010 (1) 18 Restructuring and Other Tax Other Items, Adjusted U.S. GAAP Charges, Net (2) Items (3) Net (4) (Non-GAAP) (5) Net Sales 12,070 $ - $ - $ - $ 12,070 $ Operating Income 1,516 $ 134 $ -
Slide 18: Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 24, 2010 “) Tx Other tems, US.GAAP_ Charges Net ® ems Nai? on Gaary® (Sl lions except pe share data) Net Sates Operating Income Operating Margin Other Income, Net ‘Income Tax Expense say os 30) Se o