Slide 1: TE Connectivity Fourth Quarter 2021 Earnings
EVERY CONNECTION COUNTS TE Connectivity Fourth Quarter 2021 Earnings October 27, 2021
Slide 2: Forward-Looking Statements
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 subject to risks, uncertainty and changes in circumstanc
Slide 3: Earnings Highlights
Earnings Highlights Strong Q4 Sales & Adjusted EPS above expectations despite broader supply challenges • Sales of $3.8B, up 17% Y/Y; Adjusted EPS of $1.69, up 46% Y/Y • Strong order levels of $4.1B; book to bill of 1.08 • Adjusted Operating Margins of 18.5%, with strong operational performance in a
Slide 4: Strong Orders Growth Y/Y with 1.08 Book to Bill
Reported FY20 FY21 FY21 Q4 Growth Q4 Q3 Q4 Y/Y Q/Q Transportation 2,124 2,562 2,349 11% (8)% Industrial 799 1,218 1,140 43% (6)% Communications 425 755 647 52% (14)% Total TE 3,348 4,535 4,136 24% (9)% Book to Bill 1.03 1.18 1.08 Segment Orders Summary ($ in millions) 4 • Y/Y orders growth in all se
Slide 5: Transportation Solutions
Transportation Solutions $1,865 $2,198 Q4 2020 Q4 2021 • Automotive growth despite production declines. Continue to benefit from content trends of electronification and electric vehicle adoption • Commercial Transportation strong market outperformance with growth across all regions and market vertic
Slide 6: Industrial Solutions
Industrial Solutions $959 $1,017 Q4 2020 Q4 2021 Y/Y Growth Rates Reported Organic Industrial Equipment $386 33% 32% Aerospace, Defense and Marine 258 (17)% (18)% Energy 194 3% 8% Medical 179 5% 5% Industrial Solutions $1,017 6% 6% Margin expansion driven by strong operational performance 13.9% 15.9
Slide 7: Communications Solutions
$437 $603 Q4 2020 Q4 2021 Reported Up 38% Organic Up 36% Y/Y Growth Rates Reported Organic Data & Devices $357 37% 36% Appliances 246 39% 36% Communications Solutions $603 38% 36% •Data & Devices performance continues to be driven by content growth and share gains in high-speed cloud applications •
Slide 8: Q4 Financial Summary
Q4 Financial Summary ($ in Millions, except per share amounts) Q4 FY20 Q4 FY21 Net Sales $ 3,261 $ 3,818 Operating Income $ 347 $ 660 Operating Margin 10.6% 17.3% Acquisition-Related Charges 13 8 Restructuring & Other Charges, Net 113 38 Adjusted Operating Income $ 473 $ 706 Adjusted Operating Margi
Slide 9: Financial Performance
Financial Performance Adjusted Operating Margin, Adjusted EPS, Adjusted EBITDA Margin and Free Cash Flow are non-GAAP financial measures: see Appendix for descriptions and reconciliations. Sales Adjusted Operating Margin Free Cash Flow Adjusted EPS Demonstrating the Strength and Diversity of Our Por
Slide 10: Additional Information
EVERY CONNECTION COUNTS Additional Information
Slide 11: Q4 2021 Y/Y Sales and Adjusted EPS Bridge
Y/Y Q4 2021 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q4 2020 Results $3,261 $1.16 Operational Performance 506 0.60 FX Impact 51 - Tax Rate Impact -(0.07) Q4 2021 Results $3,818 $1.69 11
Slide 12: FY 2021 Y/Y Sales and Adjusted EPS Bridge
Y/Y FY 2021 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS 2020 Results $12,172 $4.26 Operational Performance 2,307 2.26 FX Impact 444 0.14 Tax Rate Impact -(0.15) 2021 Results $14,923 $6.51 12
Slide 13: Q1 2022 Y/Y Sales and Adjusted EPS Bridge
Y/Y Q1 2022 Adjusted EPS is a non-GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q1 2021 Results $3,522 $1.47 Operational Performance 197 0.10 FX Impact (19) 0.01 Tax Rate Impact - 0.02 Q1 2022 Guidance $3,700 $1.60 13
Slide 14: Free Cash Flow and Working Capital; Liquidity, Cash and Debt
($ in Millions) FY20 FY21 Beginning Cash Balance $927 $945 Free Cash Flow 1,482 2,081 Dividends (625) (647) Share repurchases (523) (831) Net increase (decrease) in debt 22 (47) Acquisition of businesses, net of cash acquired (339) (423) Other 1 125 Ending Cash Balance $945 $1,203 Total Debt $4,146
Slide 15: Appendix
EVERY CONNECTION COUNTS Appendix
Slide 16: Non-GAAP Financial Measures
16 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 financia
Slide 17: Non-GAAP Measure Descriptions
17 • Adjusted EBITDA and Adjusted EBITDA Margin - represent net income (loss) and net income (loss) as a percentage of net sales, respectively, (the most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net ot
Slide 18: Segment Summary
Segment Summary 18 Transportation Solutions $ 2,198 $ 1,865 $ 8,974 $ 6,845 Industrial Solutions 1,017 959 3,844 3,713 Communications Solutions 603 437 2,105 1,614 Total $ 3,818 $ 3,261 $ 14,923 $ 12,172 Transportation Solutions $ 387 17.6 % $ 198 10.6 % $ 1,526 17.0 % $ (93) (1.4) % Industrial Solu
Slide 19: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth 19 Transportation Solutions (3): Automotive $ 184 13.8 % $ 160 11.7 % $ 24 $ — Commercial transportation 106 39.8 103 37.9 3 — Sensors 43 16.3 38 15.4 5 — Total 333 17.9 301 16.0 32 — Industrial Solutions (3): Industrial equipment 96 33.1 91 31.5 5 — Aerospace, def
Slide 20: Reconciliation: Quarter Ended September 24, 2021
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 24, 2021 20 Operating income: Transportation Solutions $ 387 $ 3 $ 5 $ — $ — $ 395 Industrial Solutions 134 4 24 — — 162 Communications Solutions 139 1 9 — — 149 Total $ 660 $ 8 $ 38 $ — $ — $ 70
Slide 21: Reconciliation: Quarter Ended September 25, 2020
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 25, 2020 21 Operating income: Transportation Solutions $ 198 $ 11 $ 36 $ — $ 245 Industrial Solutions 85 2 46 — 133 Communications Solutions 64 — 31 — 95 Total $ 347 $ 13 $ 113 $ — $ 473 Operatin
Slide 22: Reconciliation: Year Ended September 24, 2021
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 24, 2021 22 Operating income: Transportation Solutions $ 1,526 $ 18 $ 135 $ — $ — $ 1,679 Industrial Solutions 469 15 73 — — 557 Communications Solutions 439 1 25 — — 465 Total $ 2,434 $ 34 $ 233 $
Slide 23: Reconciliation: Year Ended September 25, 2020
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2020 23 Operating income (loss): Transportation Solutions $ (93) $ 32 $ 113 $ 900 $ — $ 952 Industrial Solutions 412 8 102 — — 522 Communications Solutions 218 — 42 — — 260 Total $ 537 $ 40 $ 25
Slide 24: Reconciliation: Quarter Ended December 25, 2020
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 25, 2020 24 Operating income: Transportation Solutions $ 308 $ 5 $ 118 $ — $ 431 Industrial Solutions 76 4 38 — 118 Communications Solutions 64 — 11 — 75 Total $ 448 $ 9 $ 167 $ — $ 624 Operating
Slide 25: Reconciliation: Year Ended September 27, 2019
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2019 25 Operating income: Transportation Solutions $ 1,226 $ 31 $ 144 $ - $ 1,401 Industrial Solutions 543 15 63 - 621 Communications Solutions 209 1 48 - 258 Total $ 1,978 $ 47 $ 255 $ - $ 2,28
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow 26 Net cash provided by operating activities Net cash provided by continuing operating activities $ 774 $ 719 $ 2,676 $ 1,991 $ 2,454 Net cash provided by (used in) discontinued operating activities — 1 — 1 (32) 774 720 2,676 1,992 2,422 Net cash used in investing ac
Slide 27: Free Cash Flow Conversion
Free Cash Flow Conversion 27 Free cash flow (1) $ 2,081 Adjusted income from continuing operations (1) $ 2,169 Free cash flow conversion (1) 95.9 % For the Year Ended September 24, 2021 ($ in millions) (1) See description of non-GAAP financial measures.
Slide 28: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin 28 Net income (loss) $ 794 $ 580 $ 230 $ 2,261 $ (241) $ 1,844 (Income) loss from discontinued operations — 1 (2) (6) (18) 102 Income tax expense (benefit) (167) 124 109 123 783 (15) Other (income) expense, net 22 (2) — 17 (20) (2) Interes
Slide 29: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 29 Diluted earnings per share from continuing operations $ 1.50 Restructuring and other charges, net 0.12 Acquisition-related charges 0.03 Tax items (0.05) Adjusted diluted earnings per share fro