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: Q1 Highlights
Very strong performance reflects benefit of harsh portfolio 7% year-over-year organic growth Sales of $3.1B, with strength in Asia Double digit organic growth in Transportation, with content growth driving market outperformance Strengthening Industrial markets and organic growth in Commercial Air an
Slide 3: Segment Orders Summary
FY16 FY16 FY17 Q1 Q4* 13 Week Q1 Transportation 1,583 1,704 1,775 Industrial 726 829 832 Communications Ex SubCom 406 413 417 Total TE Ex SubCom 2,715 2,946 3,024 Total TE Ex SubCom @ Constant Currency 2,745 2,940 3,082 Book to Bill Ex SubCom 1.04 1.03 1.06 Segment Orders Summary ($ in millions) 4 T
Slide 4: Transportation Solutions
Y/Y Growth Rates Reported Organic Automotive $1,275 12% 13% Commercial Transportation 213 15% 16% Sensors 187 3% (1)% Transportation Solutions $1,675 11% 11% $ in Millions Sales Automotive sales significantly above market driven by content growth and strength in Asia and EMEA Commercial Transportati
Slide 5: Industrial Solutions
Y/Y Growth Rates Reported Organic Industrial Equipment $383 33% 1% Aerospace & Defense 226 4% 4% Oil and Gas 26 (24)% (21)% Energy 160 (5)% (3)% Industrial Solutions $795 12% -% $ in Millions Sales Industrial Equipment organic growth driven by medical and factory automation applications Creganna and
Slide 6: Communications Solutions
Y/Y Growth Rates Reported Organic Data & Devices $231 (13)% 2% Appliances 148 13% 14% SubCom 214 (4)% (4)% Communications Solutions $593 (4)% 3% $ in Millions Sales Data & Devices return to growth with margin expansion from ramps of new high speed programs with cloud infrastructure customers Double
Slide 7: Q1 Financial Summary
Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP measures; see Appendix for description. *Represents Diluted Earnings Per Share from Continuing Operations ($ in Millions, except per share amounts) Q1 FY16 Q1 FY17 Net Sales $ 2,833 $ 3,063 Operating Income $ 398 $ 48
Slide 8: Q1 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. Q1 Operating Metrics 9 Adjusted EBITD
Slide 9: Q2 Outlook
Guidance* 4% organic growth driven by all segments Transportation Solutions Industrial Solutions Communications Solutions TE Connectivity Highlights Sales $3.025B to $3.125B Adjusted EPS $1.05 to $1.09 Sales up 4% Y/Y and up 4% organically at midpoint FX headwind impacting sales by ~$60M Y/Y and Adj
Slide 10: FY17 Outlook
Sales Up 4% Organically, with 15% Adjusted EPS Growth Y/Y in Constant Currency Sales of $12.2B - $12.6B Adjusted EPS of $4.30 - $4.50 Sales up 3% Y/Y; Expect organic growth of 4%, up 100bps from prior Guidance FX headwind impacting sales by ~$300M Y/Y and Adjusted EPS by $0.14 Y/Y Y/Y tax rate benef
Slide 11: FY17 Outlook (Sales Up 4% Organically)
FY17 Outlook® vs 52 week prior year Guidance* Highlights Up Low Single Digits Up Mid Single Digits Organic Industrial Up High Single Digits Up Low Single Digits Organic Solutions Communications Se Flat Up Mid Single Digits Organic Sales of $12.2B - $12.6B Adjusted EPS of $4.30 - $4.50 TE Connectivi
Slide 12: Current vs. Prior Guidance
Current vs. Prior Guidance 13 Adjusted EPS is a non-GAAP measure; See Appendix for description and reconciliation. Q1 FY17 FY17 Sales (in millions) Adjusted EPS Sales (in millions) Adjusted EPS Guidance Provided in November $3,000 $1.00 $12,600 $4.34 Operational Performance 108 0.17 110 0.22 FX Impa
Slide 13: Y/Y Q1 2017 Sales and Adjusted EPS Bridge
Y/Y Q1 2017 14 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 186 0.30 Acquisitions / Divestitures, net 69 0.02 FX Impact (25) (0.01) Q1 2017 Results $3,063 $1.15
Slide 14: Y/Y Q2 2017 Sales and Adjusted EPS Bridge
Y/Y Q2 2017 15 Adjusted EPS is a non-GAAP measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q2 2016 Results $2,952 $0.90 Operational Performance 112 0.17 Acquisitions / Divestitures, net 74 0.03 FX Impact (63) (0.03) Q2 2017 Guidance $3,075 $1.07 Guidance Ran
Slide 15: Y/Y 2017 Sales and Adjusted EPS Bridge
Y/Y 2017 16 Adjusted EPS is a non-GAAP measure; See Appendix for description and reconciliation. 1H 2H FY17 Sales (in millions) Adjusted EPS Sales (in millions) Adjusted EPS Sales (in millions) Adjusted EPS 2016 – 52 Weeks $5,785 $1.74 $6,215 $2.22 $12,000 $3.95 Operational Performance 298 0.28 214
Slide 16: Q1 Balance Sheet & Cash Flow Summary
($ in Millions) Q1 2016 Q1 2017 Beginning Cash Balance $3,329 $647 Free Cash Flow 237 218 Dividends (127) (132) Share repurchases (1,249) (93) Proceeds from exercise of share options 34 25 Other (1) - Ending Cash Balance 2,223 665 Total Debt 3,870 4,028 ($ in Millions) Q1 2016 Q1 2017 Cash from Cont
Slide 17: Q1 Balance Sheet & Cash Flow Summary
Q1 Balance Sheet & Cash Flow Summary (Sinton) Q12016 a1 2017 Cash from Continuing Operations $391 $404 Capital expenditures, net (138) (126) Cash collected pursuant to collateral requirements related to cross currency swaps (24) (60) Pre-separation and BNS related tax 8 . payments, net Free Cash Flo
Slide 18: Non-GAAP Measures
Non-GAAP Measures 19 “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 19: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) 20 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 20: Segment Summary for the Quarter Ended December 30, 2016
21 Segment Summary for the Quarter Ended December 30, 2016 Operating Adjusted Operating Y/Y Y/Y Organic Margin for the Margin for the December 25, December 30, Sales Sales Quarter Ended Quarter Ended Segment 2015 2016 Growth Growth (1) December 30, 2016 December 30, 2016 (1) Transportation Solutions
Slide 21: Net Sales Growth – Q1 vs. Q1
Reconciliation of Net Sales Growth– Q1 17 vs. Q1 16 22 Acquisitions Translation (1) (Divestiture) Transportation Solutions (3) : Automotive 134 $ 11.7 % (11) $ - $ 145 $ 12.7 % 76 % Commercial Transportation 28 15.1 (1) - 29 15.7 13 Sensors 6 3.3 (3) 11 (2) (1.1) 11 Total 168 11.1 (15) 11 172 11.4 1
Slide 22: Non-GAAP to GAAP Measures, Quarter Ended December 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 30, 2016 23 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 343 $ 1 $ 24 $ - $ 3
Slide 23: Non-GAAP to GAAP Measures, Quarter Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 30, 2016 24 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 24: Impact of Additional Week for Q4 2016
Impact of Additional Week for Q4 2016 25 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 25: Non-GAAP to GAAP Measures, 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: Non-GAAP to GAAP Measures, Quarter Ended December 25, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 25, 2015 27 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 261 $ 3 $ 16 $ - $ 2
Slide 27: Non-GAAP to GAAP Measures, Year Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2016 28 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 28: Impact of Additional Week for Fiscal 2016
Impact of Additional Week for Fiscal 2016 29 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 29: Non-GAAP to GAAP Measures, Quarter Ended March 25, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 25, 2016 30 Restructuring Acquisition and Other Related Charges Tax Adjusted U.S. GAAP Charges (1) (Credits), Net (1)(2) Items (Non-GAAP) (3) Operating Income: Transportation Solutions 289 $ 1 $ 15 $
Slide 30: Gross Margin & Gross Margin Percentage
Reconciliation of Gross Margin & Gross Margin Percentage 31 December 25, December 30, 2015 2016 Net Sales 2,833 $ 3,063 $ Cost of Sales 1,888 1,998 Gross Margin 945 1,065 Gross Margin Percentage 33.4% 34.8% Acquisition Related Charges 1 1 Adjusted Gross Margin (1) 946 $ 1,066 $ Adjusted Gross Margin
Slide 31: Free Cash Flow
Reconciliation of Free Cash Flow 32 December 25, December 30, 2015 2016 Net cash provided by operating activities: Net cash provided by continuing operating activities 391 $ 404 $ Net cash used in discontinued operating activities (1) - 390 404 Net cash used in investing activities (121) (154) Net c
Slide 32: Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA Margin 33 December 25, December 30, December 28, 2015 2016 2012 Net Income 353 $ 409 $ 277 $ (Income) from discontinued operations (29) (3) (18) Income tax expense (benefit) 58 54 (255) Other (income) expense, net (8) - 226 Interest expense 30 31 36 Interest (income
Slide 33: Forward-Looking Non-GAAP to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 34 Outlook for Outlook for Outlook for the Six Months the Six Months Quarter Ending Ending Ending March 31, March 31, September 29, 2017 (1) 2017 (1) 2017 (1) Diluted earnings per share from cont
Slide 34: Forward-Looking Non-GAAP to Forward-Looking GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures Diluted earnings por share from continuing operations (GAAP) Restrctuing and other charges, not Acquisition related charges Taxitems Adjusted. ° luted earnings per share from continuing operation