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: Q4 Highlights
Strong quarter with record adjusted EPS and free cash flow Sales of $3.3B in line with guidance Adjusted EPS of $1.27, above the high end of guidance Excluding the additional week in Q4, year-over-year sales were up 2% organically and adjusted EPS were up 27% to $1.14, a new record Orders growth bot
Slide 3: FY16 Highlights
Delivered solid performance in a challenging economic environment Sales of $12.24B, flat Y/Y and up 2% organically Delivered mid-single digit organic growth in Transportation Industrial Solutions showed sequential 2H growth following 1H supply chain corrections SubCom grew 25% Y/Y, with a current ba
Slide 4: Segment Orders Summary
FY15 FY16 FY16 FY16 Q4 Q3 Q4 14 Week Q4 13 Week Transportation 1,480 1,659 1,854 1,704 Industrial 720 879 888 832 Communications Ex SubCom 448 399 447 416 Total TE Ex SubCom 2,648 2,937 3,189 2,952 Book to Bill Ex SubCom 0.95 1.01 1.03 1.03 Segment Orders Summary ($ in millions) 5 Transportation Y/Y
Slide 5: Transportation Solutions
Y/Y Growth Rates Actual 14 Week Organic 13 Week Organic Automotive $1,311 16% 15% 6% Commercial Transportation 215 13% 12% 4% Sensors 210 11% 4% (2)% Transportation Solutions $1,736 15% 13% 5% $ in Millions Sales Automotive organic sales growth driven by Asia and Europe Commercial Transportation org
Slide 6: Industrial Solutions
Y/Y Growth Rates Actual 14 Week Organic 13 Week Organic Industrial Equipment $427 25% 1% (7)% Aerospace & Defense 269 14% 13% 6% Oil and Gas 30 (25)% (23)% (27)% Energy 193 12% 13% 6% Industrial Solutions $919 16% 6% (2)% $ in Millions Sales Industrial Equipment growth includes the Creganna acquisit
Slide 7: Communications Solutions
Y/Y Growth Rates Actual 14 Week Organic 13 Week Organic SubCom $239 18% 18% 13% Appliances 176 11% 10% 3% Data & Devices 262 (19)% (6)% (13)% Communications Solutions $677 (1)% 6% (1)% $ in Millions Sales SubCom remains robust with $1B of backlog Appliances growth driven by strength in Asia Data & D
Slide 8: Q4 Financial Summary
Net Sales Excluding the Impact of the Additional Week, Adjusted Operating Income, Adjusted Operating Income Excluding the Impact of the Additional Week, Adjusted Operating Margin, Adjusted Operating Margin Excluding the Impact of the Additional Week, Adjusted EPS and Adjusted EPS Excluding the Impac
Slide 9: Q4 Operating Metrics
$ 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. Q4 Operating Metrics 10 Adjusted EBIT
Slide 10: Q1 Outlook
Guidance* Strong sales and Adjusted EPS growth Y/Y Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $2.95B to $3.05B Adjusted EPS $0.98 to $1.02 Sales up 6% Y/Y and up 3% organically at midpoint Adjusted EPS up 19% at the midpoint Up Mid Single
Slide 11: FY17 Outlook
Sales Up 5% with double digit Adjusted EPS growth Y/Y Sales of $12.3B - $12.9B Adjusted EPS of $4.19 - $4.49 Sales up 5% Y/Y and up 3% organically at midpoint Adjusted EPS up 10% at midpoint vs. 52 week FY16 at $3.95 Up Mid Single Digits Up Mid Single Digits Organic Flat Y/Y Up Low Single Digits Org
Slide 12: FY17 Outlook vs 52 week prior year
FY17 Outlook® vs 52 week prior year Transportation Industrial Solutions mmunications Solutions TE Connectivity 12 Ripe ES sn Aduaed EPS Exc Guidance* Highlights Up Mid Single Digits Up Mid Single Digits Organic Up Low Double Digits Up Low Single Digits Organic Flat Y/Y Up Low Single Digits Organic S
Slide 13: Q4 FY16 Impact of Additional Week
Q4 FY16 Impact of Additional Week 14 Q4 13 Week Q4 Sales Impact of 14th Week Sales (Normalized) Actual Growth Organic Growth Automotive $1,311 $(102) $1,209 7.2% 6.3% Commercial Transportation 215 (15) 200 5.3 4.2 Sensors 210 (13) 197 3.7 (2.3) Transportation Solutions 1,736 (130) 1,606 6.5 4.9 Indu
Slide 14: Y/Y Q4 2016 Sales and Adjusted EPS Bridge
Sales (in millions) Adjusted EPS Q4 2015 Results $2,984 $0.90 FX Benefit 11 0.01 Operational Performance 99 0.23 Q4 2016 Results (13 Weeks) $3,094 $1.14 Additional Week 238 0.13 Q4 2016 Results* $3,332 $1.27 Y/Y Q4 2016 15 Net Sales Excluding the Impact of the Additional Week, Adjusted EPS Excluding
Slide 15: Y/Y 2016 Sales and Adjusted EPS Bridge
Y/Y 2016 16 Sales (in millions) Adjusted EPS 2015 Results $12,233 $3.60 FX Impact (254) (0.07) Operational Performance 21 0.42 2016 Results (52 Weeks) $12,000 $3.95 2016 Growth in Constant Currency - 12% Additional Week 238 0.13 2016 Results* $12,238 $4.08 2016 Growth in Constant Currency 2% 15% Net
Slide 16: Y/Y Q1 2017 Guidance Bridge
Y/Y Q1 2017 17 Adjusted EPS is a non-GAAP measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q1 2016 Results $2,833 $0.84 Operational Performance 82 0.13 Acquisitions / Divestitures, net 64 0.02 FX Benefit 21 0.01 Q1 2017 Guidance $3,000 $1.00 Guidance Range:
Slide 17: Y/Y 2017 Guidance Bridge
Y/Y 2017 18 Net Sales Excluding the Impact of the Additional Week, Adjusted EPS Excluding the Impact of the Additional Week and Adjusted EPS are non-GAAP measures; See Appendix for description and reconciliation. * 53 Week Year Sales (in millions) Adjusted EPS 2016 Results* $12,238 $4.08 Additional
Slide 18: Liquidity Summary
Liquidity Summary ($ in Millions) Q4 2015 Q4 2016 Beginning Cash Balance $701 $694 Free Cash Flow 389 594 Dividends (132) (132) Share repurchases (512) (130) Acquisitions, net of cash acquired 1 (342) Net increase (decrease) in commercial paper (131) 30 Proceeds from sale of discontinued operations,
Slide 19: Q4 Balance Sheet & Cash Flow Summary
Q4 Balance Sheet & Cash Flow Summary (Sin Mons) Cash from Continuing Operations Capital expenditures, net Pre-separation and BNS related tax payments, net Free Cash Flow AIR -$ Days Sales Outstanding Inventory (Excl. CIP) - $ Days on Hand* Accounts Payable - $ Days Outstanding* 242015 $540 (168) 7 $
Slide 20: Non-GAAP Measures
Non-GAAP Measures 21 “Organic Net Sales Growth,” “Organic Net Sales Growth Excluding the Impact of the Additional Week,” “Net Sales Excluding the Impact of the Additional Week,” “Net Sales Growth Excluding the Impact of the Additional Week,” “Net Sales in Constant Currency,” “Adjusted Gross Margin,”
Slide 21: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) 22 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
Slide 22: Segment Summary for the Quarter & Year Ended September 30, 2016
23 Segment Summary for the Quarter & Year Ended September 30, 2016 Operating Adjusted Operating Y/Y Actual Y/Y Organic Margin for the Margin for the September 25, September 30, Sales Sales Quarter Ended Quarter Ended Segment 2015 2016 Growth Growth (1) September 30, 2016 September 30, 2016 (1) Trans
Slide 23: Reconciliation of Net Sales Growth – Q4 vs. Q4
Reconciliation of Net Sales Growth– Q4 16 vs. Q4 15 24 Acquisitions Translation (1) (Divestiture) Transportation Solutions (3) : Automotive 183 $ 16.2 % 11 $ - $ 172 $ 15.3 % 76 % Commercial Transportation 25 13.2 3 - 22 12.1 12 Sensors 20 10.5 (2) 14 8 4.2 12 Total 228 15.1 12 14 202 13.4 100 % Ind
Slide 24: Reconciliation for Quarter Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 30, 2016 25 Restructuring Acquisition and Other Related Charges Adjusted U.S. GAAP Charges (1)(2) (Credits), Net (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 344 $ 3 $ (6) $ 341
Slide 25: Reconciliation for Quarter Ended June 24, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 24, 2016 26 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 297 $ 2 $ 21 $ - $ 32
Slide 26: Reconciliation for Quarter Ended September 25, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 25, 2015 27 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 272 $ 5 $ 29 $ -
Slide 27: Impact of Additional Week for Q4 2016
Impact of Additional Week for Q4 2016 28 Adjustment Adjustment Adjustment 14 Weeks Impact of 13 Weeks 14 Weeks Impact of 13 Weeks 14 Weeks Impact of 13 Weeks U.S. GAAP 14th Week (Non-GAAP) (1)(2) U.S. GAAP 14th Week (Non-GAAP) (1)(2) (Non-GAAP) (2) 14th Week (Non-GAAP) (1)(2) Net Sales: Transportati
Slide 28: Reconciliation of Net Sales Growth – 2016 vs. 2015
Reconciliation of Net Sales Growth– 2016 vs. 2015 29 Acquisitions Translation (1) (Divestiture) Transportation Solutions (3) : Automotive 132 $ 2.8 % (134) $ - $ 266 $ 5.6 % 75 % Commercial Transportation 5 0.6 (16) - 21 2.6 13 Sensors 15 2.0 (24) 16 23 3.1 12 Total 152 2.4 (174) 16 310 4.9 100 % In
Slide 29: Reconciliation for Year Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2016 30 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 30: Reconciliation for Year Ended September 25, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2015 31 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 31: Impact of Additional Week for Fiscal 2016
Impact of Additional Week for Fiscal 2016 32 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 32: Reconciliation for Quarter Ended December 25, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 25, 2015 33 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 261 $ 3 $ 16 $ -
Slide 33: Reconciliation of Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage 34 September 25, September 30, September 25, September 30, 2015 2016 2015 2016 Net Sales 2,984 $ 3,332 $ 12,233 $ 12,238 $ Cost of Sales 2,016 2,228 8,146 8,205 Gross Margin 968 1,104 4,087 4,033 Gross Margin Percentage 32.4% 33.1% 33.4% 33.0%
Slide 34: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow 35 September 25, September 30, September 25, September 30, 2015 2016 2015 2016 Net cash provided by operating activities: Net cash provided by continuing operating activities 540 $ 782 $ 1,619 $ 2,019 $ Net cash provided by (used in) discontinued operating activities
Slide 35: Reconciliation of Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA Margin 36 September 25, June 24, September 30, September 25, September 30, 2015 2016 2016 2015 2016 Net income 1,040 $ 839 $ 437 $ 2,420 $ 2,009 $ Income from discontinued operations (904) (48) - (1,182) (68) Income tax expense (benefit) 252 (1,019) 52 337 (779) Oth
Slide 36: Reconciliation of Forward-Looking Non-GAAP Measures for Q1 2017 and Fiscal 2017
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures for Q1 2017 and Fiscal 2017 37 Outlook for Quarter Ending December 30, Outlook for 2016 (1) Fiscal 2017 (1) Diluted earnings per share from continuing operations (GAAP) $0.84 - $0.88 $3.84 - $4.1
Slide 37: Impact of Changes in Foreign Currency Exchange Rates
Impact of Changes in Foreign Currency Exchange Rates for Q4 2016, Fiscal 2016, Q1 2017 and Fiscal 2017 38 Adjusted Operating Net Sales Income (1) Adjusted EPS (1) Quarter ended September 25, 2015 2,984 $ 488 $ 0.90 $ Impact of changes in foreign currency exchange rates 11 4 0.01 Operational performa
Slide 38: Impact of Changes in Foreign Currency Exchange Rates
Impact of Changes in Foreign Currency Exchange Rates for Q4 2016, Fiscal 2016, Q1 2017 and Fiscal 2017 ear ended September 25,2015 Ing of change on cen hangers ear ended Sete 38,2016. $2 wks" arene Seber 30,2016 TE