Slide 1: Q4 2013 Earnings Call
Q4 2013 Earnings Call October 30, 2013
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 circumst
Slide 3: Summary: Strong Finish to the Fiscal Year
Summary Organic Sales Growth, Adjusted EPS, Adjusted Operating Margin, and Free Cash Flow are non-GAAP measures; see Appendix for description and reconciliation. Q4 Results Sales of $3.43 billion; up 3% organically versus prior year Adjusted EPS of $0.93 up 22% versus prior year Adjusted Operating M
Slide 4: Q4 Revenue Summary
Q4 Revenue Summary Organic Sales Growth is a non-GAAP measure; see Appendix for description and reconciliation. ($ in Millions) page 4 Sales in-line with guidance / October 2013 3% (5)% 2% (1)% 10%
Slide 5: Transportation Solutions Q4 Summary
Transportation Solutions Q4 Summary Double digit organic revenue growth on global vehicle production growth of ~4% Sales strength in all regions Continued strength in commercial vehicle market, driven by North American and European heavy truck markets Organic Sales Growth, Adjusted Operating Income,
Slide 6: Industrial Solutions Q4 Summary
Industrial Solutions Q4 Summary Industrial markets gradually improving with sales up in EMEA and Asia Commercial aero markets remain strong, offsetting weaker military demand Energy market still weak particularly in EMEA and China Organic Sales Growth, Adjusted Operating Income, and Adjusted Operati
Slide 7: Network Solutions Q4 Summary
Network Solutions Q4 Summary Telecom market gradually improving as fiber demand continues to increase globally DataComm decline due to Magnetics divestiture and decreased demand for legacy products Subsea Communications project activity robust, however funding remains slow ($ in Millions) Organic Sa
Slide 8: Consumer Solutions Q4 Summary
Consumer Solutions Q4 Summary Consumer devices decline driven by double digit PC decline and customer delays in smartphones and tablets Appliances growth driven by increasing residential housing demand; led by U.S. and Asia Organic Sales Growth, Adjusted Operating Income, and Adjusted Operating Marg
Slide 9: 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. page 9 / October 2013 $ 0.76 (0.27) 0.03 0.07 $ 0.93 13.5% 11.9% $ 454 14 39 $ 401 $ 3,364 Q4 F
Slide 10: Q4 Operating Results & Other Items
Q4 Operating Results & Other Items ($ in Millions) Adjusted Gross Margin Percentage, Adjusted Other Income, Adjusted Income Tax Expense and Adjusted Effective Tax Rate are non-GAAP measures; see Appendix for description and reconciliation. Adjusted Gross Margin Percentage Operating Expenses Other It
Slide 11: Q4 Balance Sheet and Cash Flow Summary
Q4 Balance Sheet and Cash Flow Summary Free Cash Flow is a non-GAAP measure; see Appendix for description and reconciliation. Liquidity, Cash & Debt Free Cash Flow and Working Capital page 11 / October 2013 ($ in Millions) Q4 FY13 Q4 FY12 Cash from Continuing Operations 595 $ 714 $ Capital expenditu
Slide 12: Q1 Outlook
Q1 Outlook^ ^ Assumes foreign exchange rates and commodity prices that are consistent with current levels. * Organic Sales Growth and Adjusted EPS are non-GAAP measures; see Appendix for description. Transportation Solutions Revenues up ~10% vs. prior year Global auto production expected to be up ~3
Slide 13: FY14 Outlook
FY14 Outlook^ ^ Assumes foreign exchange rates and commodity prices that are consistent with current levels. * Organic Sales Growth and Adjusted EPS are non-GAAP measures; see Appendix for description. Guidance mid-point: Revenue up 5% and ~13% Adjusted EPS growth versus prior year Transportation So
Slide 14: Q&A
Q&A page 14
Slide 15: Appendix
Appendix page 15
Slide 16: 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 Tax Rate,” ”Adjusted Income from Continuing Operations,” “
Slide 17: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) We present income tax expense 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 significant special tax items, if any (“Adju
Slide 18: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) “Free Cash Flow” (FCF) is a useful measure of our ability to generate cash. It also is a significant component in our incentive compensation plans. The difference between net cash provided by continuing operating activities (the most comparable GAAP measure) and FCF (the no
Slide 19: Reconciliation of Net Sales Growth – Q4 vs. Q4
Reconciliation of Net Sales Growth– Q4 13 vs. Q4 12 page 19 / October 2013 Translation (2) Divestiture Transportation Solutions (3) : Automotive 122 $ 9.5 % (3) $ - $ 119 $ 9.3 % 100 % Total 122 9.5 (3) - 119 9.3 100 % Network Solutions (3) : Telecom Networks 4 1.1 (1) - 3 0.9 43 Data Communications
Slide 20: Reconciliation of Net Sales Growth – Q4 vs. Q3
Reconciliation of Net Sales Growth– Q4 13 vs. Q3 13 page 20 / October 2013 Translation (2) Transportation Solutions (3) : Automotive (40) $ (2.8) % - $ (40) $ (2.8) % 100 % Total (40) (2.8) - (40) (2.8) 100 % Network Solutions (3) : Telecom Networks - - (3) (3) (0.9) 43 Data Communications 5 2.4 - 5
Slide 21: Reconciliation of Net Sales Growth by Segment and Geography
Reconciliation of Net Sales Growth by Segment and Geography – Q4 13 vs. Q4 12 page 21 / October 2013 Translation (2) Divestiture Transportation Solutions : Americas 39 $ 12.8 % (5) $ - $ 34 $ 11.3 % EMEA 39 7.5 27 - 66 12.8 Asia-Pacific 44 9.6 (25) - 19 4.1 Total 122 9.5 (3) - 119 9.3 Network Soluti
Slide 22: Non-GAAP Reconciliation, Quarter Ended September 27, 2013
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 27, 2013 page 22 / October 2013 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 257 $ 2
Slide 23: Non-GAAP Reconciliation, Quarter Ended September 28, 2012
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 28, 2012 page 23 / October 2013 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 196
Slide 24: Non-GAAP Reconciliation, Quarter Ended December 28, 2012
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 28, 2012 page 24 / October 2013 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 192 $ 3
Slide 25: Non-GAAP Reconciliation, Year Ended September 27, 2013
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2013 page 25 / October 2013 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Items (1) (Non-GAAP) (2) Operating Income: Transportation Solutions 972 $ 7 $
Slide 26: Non-GAAP Reconciliation, Year Ended September 28, 2012
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 28, 2012 page 26 / October 2013 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 754 $
Slide 27: Reconciliation of Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage page 27 / October 2013 For the Quarters Ended June 29, September 28, December 28, March 29, June 28, September 27, 2012 2012 2012 2013 2013 2013 ($ in millions) Net sales 3,499 $ 3,364 $ 3,134 $ 3,265 $ 3,449 $ 3,432 $ Cost of sales 2,481 2,30
Slide 28: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow page 28 / October 2013 For the Years Ended September 27, September 28, 2013 2012 (in millions) Reconciliation of Free Cash Flow: Net cash provided by continuing operating activities 2,048 $ 1,888 $ Capital expenditures, net (576) (510) Pre-separation tax payments, ne
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