Slide 1: Q4 2013 Earnings Call
Q4 2013 Earnings Call October 30, 2013
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 U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subj
Slide 3: Summary
Summary 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 Margin of 15.7%, up 220 basis points versus prior year • Free Cash Flow of $412 million; returned $313 million to shareholders • Book-to-Bill of 0.98
Slide 4: Q4 Revenue Summary
Q4 Revenue Summary ($ in Millions) Actual Organic Segment Q4 FY13 Q4 FY12 Growth Growth Transportation Solutions $1,398 $1,279 9% 10% Network Solutions 804 838 (4%) (1)% Industrial Solutions 792 777 2% 2% Consumer Solutions 438 470 (7%) (5)% Total $3,432 $3,364 2% 3% Sales in-line with guidance page
Slide 5: Transportation Solutions Q4 Summary
Transportation Solutions Q4 Summary ($ in Millions) Growth Rates Actual Organic Sales by Business Growth Rates Sales $1,398 9% 10% Actual Organic Orders $1,405 14% 14% Automotive $1,398 9% 10% Book to Bill 1.01 Transportation Solutions $1,398 9% 10% Adj. Operating Income $268 30% Adj. Operating Marg
Slide 6: Industrial Solutions Q4 Summary
Industrial Solutions Q4 Summary ($ in Millions) Growth Rates Actual Organic Sales by Business Growth Rates Actual Organic Sales $792 2% 2% Industrial $318 4% 4% Orders $764 10% 10% Aerospace, Defense, & Marine 266 4% 3% Book to Bill 0.96 Energy 208 (2)% (3)% Adj. Operating Income $135 13% Industrial
Slide 7: Network Solutions Q4 Summary
Network Solutions Q4 Summary Growth Rates ($ in Millions) Actual Organic Sales By Business Growth Rates Actual Organic Sales $804 (4)% (1)% Telecom Networks $345 1% 1% Orders $680 (17)% (14)% Data Communications 195 (13)% (4)% Orders ex SubCom $644 (6)% (2)% Enterprise Networks 161 (1)% 1% Book to B
Slide 8: Consumer Solutions Q4 Summary
Consumer Solutions Q4 Summary ($ in Millions) Growth Rates Sales by Business Growth Rates Actual Organic Actual Organic Sales $438 (7)% (5)% Consumer Devices $250 (15)% (13)% Orders $436 -% 1% Appliances 188 7% 7% Book to Bill 1.00 Consumer Solutions $438 (7)% (5)% Adj. Operating Income $54 17% Adj.
Slide 9: Q4 Financial Summary
Q4 Financial Summary ($ in Millions, except per share amounts) Q4 FY13 Q4 FY12 Net Sales $ 3,432 $ 3,364 Operating Income $ 465 $ 401 Restructuring & Other Charges, net 71 39 Acquisition Related Charges 3 14 Adjusted Operating Income $ 539 $ 454 Operating Margin 13.5% 11.9% Adjusted Operating Margin
Slide 10: Q4 Operating Results & Other Items
Q4 Operating Results & Other Items Adjusted Gross Margin Percentage Other Items 36% 34% ($ in Millions) Q4 FY13 Q4 FY12 32% 30% Interest Expense, Net $ (30) $ (40) 28% Q3 Q4 Q1 Q2 Q3 Q4 Adjusted Other Income, Net $ 7 $ 12 FY 12 FY 12 FY 13 FY 13 FY 13 FY 13 S eries1 31.0% 31.8% 31.6% 32.2% 32.8% 33.
Slide 11: Q4 Balance Sheet and Cash Flow Summary
Q4 Balance Sheet and Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash & Debt Liquidity Summary ($ in Millions) Q4 FY13 Q4 FY12 ($ in Millions) Q4 FY13 Q4 FY12 Cash from Continuing Operations $ 595 $ 714 Beginning Cash Balance $ 1,262 $ 1,302 Capital expenditures, net (183) (138)
Slide 12: Q1 Outlook
Q1 Outlook^ ($ in Millions, except per share amounts) Sales $3,225 to $3,325 Y/Y Growth Actual 3% 6% Organic* 4% 7% Adjusted EPS* $0.74 to $0.78 Y/Y Growth 14% 20% Transportation Solutions Industrial Solutions Revenues up ~10% vs. prior year Up mid-to-high single digits vs. prior year Global auto pr
Slide 13: FY14 Outlook
FY14 Outlook^ ($ in Millions, except per share amounts) Sales $13,650 to $14,150 Y/Y Growth Actual 3% 7% Organic* 3% 7% Adjusted EPS* $3.50 to $3.80 Y/Y Growth 8% 18% Transportation Solutions – up mid-to-high single digits Industrial Solutions – up mid single digits Global auto production expected t
Slide 14: Q&A
Q&A page 14
Slide 15: Appendix
page 15 Appendix =TE
Slide 16: Non-GAAP Measures
Non-GAAP Measures “Organic Sales Growth,” “Adjusted Gross Margin,” “Adjusted Gross Margin Percentage,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted Other Income, Net,” “Adjusted Income Tax Expense,” “Adjusted Effective Tax Rate,” ”Adjusted Income from Continuing Operations,” “
Slide 17: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) We present income tax expense after adjusting for the tax effect of special items including charges related to restructuring and other charges, acquisition related charges, impairment charges, other income or charges, and certain significant special tax items, if any (“Adju
Slide 18: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) “Free Cash Flow” (FCF) is a useful measure of our ability to generate cash. It also is a significant component in our incentive compensation plans. The difference between net cash provided by continuing operating activities (the most comparable GAAP measure) and FCF (the no
Slide 19: Reconciliation of Net Sales Growth– Q4 13 vs. Q4 12
Reconciliation of Net Sales Growth– Q4 13 vs. Q4 12 Percentage of Segm ent's Total Change in Net Sales for the Quarter Ended Septem ber 27, 2013 Net Sales for the versus Net Sales for the Quarter Ended Septem ber 28, 2012 Quarter Ended Organic (1) Translation (2) Divestiture Total Septem ber 27, 201
Slide 20: Reconciliation of Net Sales Growth– Q4 13 vs. Q3 13
Reconciliation of Net Sales Growth– Q4 13 vs. Q3 13 Percentage of Segm ent's Total Change in Net Sales for the Quarter Ended Septem ber 27, 2013 Net Sales for the versus Net Sales for the Quarter Ended June 28, 2013 Quarter Ended Organic (1) Translation (2) Total Septem ber 27, 2013 ($ in m illions)
Slide 21: Reconciliation of Net Sales Growth by Segment and Geography – Q4 13 vs. Q4 12
Reconciliation of Net Sales Growth by Segment and Geography – Q4 13 vs. Q4 12 Change in Net Sales for the Quarter Ended September 27, 2013 versus Net Sales for the Quarter Ended September 28, 2012 Organic (1) Translation (2) Divestiture Total ($ in millions) Transportation Solutions: Americas $ 39 1
Slide 22: Reconciliation of Non-GAAP Measures, Quarter Ended September 27, 2013
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 27, 2013 Adjustm ents Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Item s (1) (Non-GAAP) (2) ($ in m illions, except per share data) Operating Income: T
Slide 23: Reconciliation of Non-GAAP Measures, Quarter Ended September 28, 2012
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 28, 2012 Adjustments Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) ($ in millions, except per share data) Operating Income:
Slide 24: Reconciliation of Non-GAAP Measures, Quarter Ended December 28, 2012
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 28, 2012 Adjustm ents Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Item s (1) (Non-GAAP) (2) ($ in m illions, except per share data) Operating Income: Tr
Slide 25: Reconciliation of Non-GAAP Measures, Year Ended September 27, 2013
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2013 Adjustm ents Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges Charges, Net Item s (1) (Non-GAAP) (2) ($ in m illions, except per share data) Operating Income: Tran
Slide 26: Reconciliation of Non-GAAP Measures, Year Ended September 28, 2012
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 28, 2012 Adjustments Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) ($ in millions, except per share data) Operating Income: Tra
Slide 27: Reconciliation of Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage For the Quarters Ended June 29, Septem ber 28, Decem ber 28, March 29, June 28, Septem ber 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 2,300 2,145 2,213 2,317
Slide 28: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Years Ended Septem ber 27, Septem ber 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, net 28 19 Payments rela
Slide 29: Every Connection Counts
EVERY CONNECTION COUNTS