Te Connectivity Plc · NYSE:TEL
Te Connectivity — Investor Day (November 2013)
82 slides from Te Connectivity's investor day presentation, Nov 19, 2013
Slide 1: Every Connection Counts
EVERY CONNECTION COUNTS
Slide 2: Forward-Looking Statements and Non-GAAP Measures
page 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 subject to risks, uncertainty and changes in c
Slide 3: TE Brand Video
TE BRAND VIDEO www.everyconnectioncounts.com page 3
Slide 4: The World Leader Enabling Connectivity
THE WORLD LEADER ENABLING CONNECTIVITY page 4 billion connectivity market ~$100 billion In sales $13.3 14% adjusted operating margin 10% adjusted net income margin billion free cash flow $1.5 CONSUMER NETWORKS INDUSTRIAL TRANSPORTATION Figures represent FY13 results. Adjusted Operating Margin, Adjus
Slide 5: Agenda
AGENDA Tom Lynch Chairman and CEO Accelerating Sales & Earning Growth Terrence Curtin President, Industrial Solutions Solutions for Harsh Environments James O’Toole President, Consumer Solutions Building Momentum in Consumer Solutions Tom Lynch Chairman and CEO Capitalizing on the Broadband Revoluti
Slide 6: Unmatched Connectivity Portfolio
page 6 UNMATCHED CONNECTIVITY PORTFOLIO Fiber Optics Relays #1 Connectors Antennas Sealing & Protecting Sensors Precision Wires & Cables Harsh Environments #1 #1 Top 5 Top 5 Top 10 #1 Top 3
Slide 7: Consistent Execution of Our Strategy
CONSISTENT EXECUTION OF OUR STRATEGY page 7 Positioning TE for consistent double-digit earnings growth Portfolio focus Harsh environments Invest in innovation Leadership in China Vertical markets Driving operational excellence through TEOA Balanced footprint Consistent dividend growth and balanced u
Slide 8: Focused Connectivity Portfolio
FOCUSED CONNECTIVITY PORTFOLIO $3.1B $3.0B $1.7B Automotive Industrial Transportation Aerospace & Defense Oil & Gas Industrial Equipment Energy Telecom Enterprise DataComm Subcom Appliances Consumer Devices Circuit Protection $5.5B Positioned for Consistent Double-Digit Earnings Growth page 8 CONSUM
Slide 9: Investing in Innovation
INVESTING IN INNOVATION page 10 engineers ~7,000 patents 18,000+ $675 million RD&E investment in FY13 (5% of revenue) three consecutive years(1) Top 100 Global Innovator Leading the industry in innovation (1) Source: Thomson Reuters
Slide 10: Driving Operational Excellence Through TEOA
Extraordinary customer experience NPS doubled in 5 years Quality improved by 30% On-time delivery near 90% Highly-engaged employees Safety Empowerment Accelerating productivity improvement 15% adj. operating margins expected at $14 billion in sales DRIVING OPERATIONAL EXCELLENCE THROUGH TEOA page 11
Slide 11: Consistent Dividend Growth and Balanced Use of Capital
CONSISTENT DIVIDEND GROWTH AND BALANCED USE OF CAPITAL Dividends per Share page 12 $0.64 $0.68 Share Repurchases $3.8 billion Acquisitions $3.4 billion Dividends $1.9 billion Expect to return ~2/3 of free cash flow to shareholders
Slide 12: Positioned to Accelerate Growth
POSITIONED TO ACCELERATE GROWTH billion $0.7 Very strong position in a market with attractive growth drivers Strong position in a recovering market with GDP-plus growth potential Well positioned in a cyclical, but improving market Strong in Appliances Selective in Consumer Devices CONSUMER SOLUTIONS
Slide 13: Industrial Solutions - Terrence Curtin
INDUSTRIAL SOLUTIONS TERRENCE CURTIN
Slide 14: Industrial Solutions
page 15 INDUSTRIAL SOLUTIONS billion In sales in FY13 $3 billion Market $35 Energy Industrial Equipment Where failure is not an option Aerospace, Defense, Oil & Gas 34% 39% 27% 4-6% ~9% TE MARKET SHARE Key Trends Urbanization Green Connected Safe LONG-TERM GROWTH RATE
Slide 15: Attractive Market Characteristics
page 16 ATTRACTIVE MARKET CHARACTERISTICS Urbanization, safe, green and connected trends driving growth Leader in diverse harsh environment applications Globally-positioned FY13 sales of $0.5 billion in emerging markets Deep channel network Focused to grow faster than the market Bolt-on M&A is a pri
Slide 16: Aerospace, Defense, Oil & Gas
AEROSPACE, DEFENSE, OIL & GAS page 17 Market leader in Aerospace & Defense Innovations that reduce weight, increase power, bandwidth and speed Strengthened position with DEUTSCH Most complete range of products Expand in high-growth offshore Oil & Gas markets TE MARKET SHARE 17% Commercial Air Oil &
Slide 17: High Performance Wire and Protection: Innovations Driving Growth
High Performance Wire and Protection page 18 INNOVATIONS DRIVING GROWTH Most complete range of connectivity products Relay and Power Solutions Interconnect Integrated and Composite Solutions
Slide 18: Industrial Equipment
INDUSTRIAL EQUIPMENT page 19 Leading position as supplier to over 90% of large Industrial OEMs Increased global factory automation is driving more electronic content Urbanization of emerging markets Deep and broad channel network Leveraging our strong position in developing countries TE MARKET SHARE
Slide 19: Innovations Driving Growth
page 20 INNOVATIONS DRIVING GROWTH Broad range of connectivity solutions Relays Cable Assemblies Integrated Solutions Interconnect
Slide 20: Energy
ENERGY page 21 Leading supplier to >90% of major global energy utilities Presence in almost every country Strong growth drivers Urbanization Alternative energy – emerging markets Aging infrastructure – developed markets Investment in ultra-high voltage to connect renewables and cater to increased po
Slide 21: Innovations Driving Growth
page 22 INNOVATIONS DRIVING GROWTH Full range of solutions for medium to ultra-high voltages Connectors & Fittings Cable Accessories Insulators Surge Arresters
Slide 22: Summary
page 23 SUMMARY End markets have stabilized and are beginning to recover Vertical market focus beginning to show benefits We expect to grow 1.5x to 2x GDP Strong geographic position Deep channel network Innovation investments leveraged for high-growth markets Bolt-on acquisitions to further strength
Slide 23: Consumer Solutions - James O'Toole
CONSUMER SOLUTIONS JAMES O’TOOLE
Slide 24: Consumer Solutions
page 25 CONSUMER SOLUTIONS billion In sales in FY13 $1.7 billion Market $19 TE MARKET SHARE 9% Appliances 41% Circuit Protection 14% Consumer Devices 45% LONG-TERM GROWTH RATE 3-5%
Slide 25: Transforming the Business
page 26 TRANSFORMING THE BUSINESS Rebuilt management team Headquartered businesses in China Focused the product portfolio Organized in vertical markets Strengthening customer strategy & relationships Investing in next generation technology leadership Aggressive cost reductions and implementation of
Slide 26: Appliances
APPLIANCES page 27 Deep relationships with all major OEMs in every region Most complete range of products Innovations that improve safety, connectivity and customer supply chains Operational excellence billion In sales in FY13 $0.7 billion Market $3 22% TE MARKET SHARE #1
Slide 27: Consumer Devices
CONSUMER DEVICES Building momentum with market leaders Grow share in tablets and smartphones Broaden product wins with Chinese OEMs Focus product portfolio Leverage TE’s broad technology base Aggressive cost reductions and implementation of TEOA page 28 billion In sales in FY13 $0.8 billion Market $
Slide 28: Circuit Protection
Leader in portable battery protection Expanding into higher power solutions New products driving growth Increasing our position in automotive and industrial markets Increasing share with Chinese OEMs page 29 CIRCUIT PROTECTION billion In sales in FY13 $0.2 billion Market $0.5 45% TE MARKET SHARE #1
Slide 29: Summary
page 30 SUMMARY Headquartered in the right place Manufacturing in the right place Building momentum with key customers Strengthening position in Korea and China Product momentum focused in the right place Expect to grow 3-5% over the long term
Slide 30: Break
Break
Slide 31: Network Solutions - Tom Lynch
NETWORK SOLUTIONS TOM LYNCH
Slide 32: Large Market Poised for Growth
page 33 LARGE MARKET POISED FOR GROWTH 13% TE MARKET SHARE Market LONG-TERM GROWTH RATE billion In sales in FY13 $3.1 billion $23 Telecom 42% DataComm 25% Enterprise 20% 4-7% Subcom 13%
Slide 33: Connected Devices Increasing Exponentially
Connected devices increasing EXPONENTIALLY INFORMATION ANYWHERE, ANYTIME MILLIONS OF HOMES Governments are investing in broadband infrastructure, connecting VIDEO ON DEMAND Traffic increase by 2017 3X NEW PLAYERS Driving investment in higher-speed networks page 34
Slide 34: The Fiber Network Is Key
THE FIBER NETWORK IS KEY page 35 FIBER to the TOWER FIBER to the BUSINESS and in the OFFICE FIBER in the DATA CENTER FIBER to the NODE FIBER to SMALL CELLS FIBER to the HOME
Slide 35: TE Fiber Optics
= ed WWW.TEFIBEROPTICS.COM
Slide 36: Subcom Innovations Driving Growth
Subcom INNOVATIONS DRIVING GROWTH Most complete range of connectivity products World Record Undersea Networks High-Speed Networking Reducing Network Operating Costs Reducing Installation Time page 37
Slide 37: Telecom Networks
TELECOM NETWORKS page 38 Leader with every major carrier Most complete connectivity portfolio Strong global presence ADC acquisition fully integrated Markets starting to recover billion In sales in FY13 $1.3 billion Market $8 TE MARKET SHARE 16%
Slide 38: Enterprise Networks
ENTERPRISE NETWORKS page 39 $0.6 Complete copper & fiber product range Strong global footprint Leveraging our Telecom and Data Center capability Data center market accelerating LAN market slowly recovering billion $6 Market TE MARKET SHARE 10% billion In sales in FY13
Slide 39: Data Communications
DATA COMMUNICATIONS page 40 Investing for high-speed leadership First to market with 25G Leveraging TE’s strength in China Aggressively pruning low-end products Making progress with the turnaround billion Market $8 In sales in FY13 billion $0.8 TE MARKET SHARE 10%
Slide 40: Subsea Communications
SUBSEA COMMUNICATIONS page 41 30+ years of fiber transmission leadership >$2 billion of awarded contracts Expanding into adjacent markets Oil & Gas Scientific Lean business with significant operating leverage In sales in FY13 billion $0.4 billion Market $1 TE MARKET SHARE 40%+ Systems 35% Upgrades 3
Slide 41: Summary
World’s leading fiber connectivity product portfolio Telecom demand improving Subcom project activity increasing Aggressive cost reductions and TEOA provide strong operating leverage page 42 Expect to grow 4 - 7% in the long term SUMMARY
Slide 42: Transportation Solutions - Steve Merkt
TRANSPORTATION SOLUTIONS STEVE MERKT
Slide 43: Transportation Solutions
page 44 TRANSPORTATION SOLUTIONS #1 billion In sales in FY13 $5.5 billion Market $17 TE MARKET SHARE IN CONNECTORS 40% LONG-TERM GROWTH RATE 6-8% AUTOMOTIVE AND INDUSTRIAL TRANSPORTATION LEADER
Slide 44: A Strong Attractive Market
page 45 A STRONG ATTRACTIVE MARKET Improved position with operating margins at 10% 3% CAGR In millions 1997 2015 2018 2007 2012 Vehicle Production per year 4-6% Production growth expected 3-4% More electronics driving content growth at Broad-based global product growth with expanded content
Slide 45: Strength in Every Key Market
STRENGTH IN EVERY KEY MARKET page 46 Engineers ~2,400 In all major Automotive markets #1 Top supplier to all OEMs North America #1 EMEA #1 Korea #1 Japan #1 China #1 designing and manufacturing close to our customers EMEA #1 Korea #1 North America #1 Japan #1 China #1 South #1 America FY13 Global Pr
Slide 46: Electronic Content Accelerating
ELECTRONIC CONTENT ACCELERATING page 47 2010 & Beyond 2000’s 1990’s 1980’s Electronic Gear Control Climate-Control ASC Anti Slip Control ABS Anti-Lock Braking System Telephone Seat Heating Control Automatic Mirror Control Airbags Navigation System CD-changer Xenon Light Telematics RDS/TMC Distribute
Slide 47: Significant Opportunity for Accelerated Growth
Sensors SIGNIFICANT OPPORTUNITY FOR ACCELERATED GROWTH 2012: $2B 2020: $2.5B 2012: $200M 2020: $600M 2012: $600M 2020: $1.4B 2012: $600M 2020: $2B 2012: $2B 2020: $5B 2012: $1.8B 2020: $2.4B 2012: $10B 2020: $15B page 48 Alternative Power Systems Infotainment Antennas Relays Connectors Cable Assembl
Slide 48: Innovation Leadership
page 49 INNOVATION LEADERSHIP Higher voltage Lighter weight Aluminum Miniaturization Sensors Integrated solutions Wireless connectivity
Slide 49: Hybrid & Electric Vehicles
HYBRID & ELECTRIC VEHICLES page 50 greater TE content per vehicle 2x billion Increase in customers with TE’s global reach and best-in-class products 3x Distribution Industrial 2.2 2013 2020 Production in millions of units 10.7
Slide 50: Industrial Transportation
INDUSTRIAL TRANSPORTATION page 51 billion In sales in FY13 $0.7 billion Market $1.5 TE MARKET SHARE 50% Heavy Truck 47% Agriculture 11% RV, 2-wheeler 19% Construction 23% DEUTSCH acquisition Doubled our business Strengthened position Unmatched end-to-end product line Leading solutions for harsh envi
Slide 51: Summary
page 52 SUMMARY Capitalize on our leadership position to drive 6 – 8% growth DEUTSCH acquisition exceeding expectations Expanding our solution offerings Aggressively investing in emerging markets Bolt-on acquisitions to further strengthen our position
Slide 52: Bob Hau - Financial Overview
BOB HAU FINANCIAL OVERVIEW
Slide 53: FY2014 Outlook
Transportation - Up mid-to-high single digits Industrial - Up mid-single digits Networks - About flat Consumer - Up low-single digits Strong results in Transportation Industrial & Telecom improving Free Cash Flow of $1.5 billion Returned to sales growth in Q4 vs. prior year FY13 FY14 SALES (in milli
Slide 54: TE Financial Objectives
page 55 TE FINANCIAL OBJECTIVES LONG TERM ORGANIC SALES GROWTH OF 5 – 7% DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION
Slide 55: TE Financial Objectives: Organic Sales Growth
page 56 TE FINANCIAL OBJECTIVES DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION Growth drivers in our markets: Safe, green and connected Increasing electronic content Additional growth opportunities via bolt-on M&A LONG TERM ORGANIC SALES GROWTH OF 5 –
Slide 56: Positioned to Accelerate Growth
POSITIONED TO ACCELERATE GROWTH billion $0.7 Very strong position in a market with attractive growth drivers Strong position in a recovering market with GDP-plus growth potential Well positioned in a cyclical, but improving market Strong in Appliances Selective in Consumer Devices CONSUMER SOLUTIONS
Slide 57: TE Financial Objectives: Operating Margin
page 58 TE FINANCIAL OBJECTIVES DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION Improve adjusted operating margin to 15%+ Drive productivity improvement through TE Operating Advantage (TEOA) LONG TERM ORGANIC SALES GROWTH OF 5 – 7%
Slide 58: Financial Performance
FINANCIAL PERFORMANCE DOUBLE-DIGIT EPS GROWTH & STRONG CASH GENERATION Adj. Gross Margin up 250 basis points from FY12 to FY14 Adj. Operating Margin on track for >15% Strong and consistent free cash flow 13% Adj. EPS Growth in FY13 and FY14 FY12 FY13 FY14 Guidance Mid-Point Target Model Organic Sale
Slide 59: Improving Gross Margins
IMPROVING GROSS MARGINS >34% ADJ. GROSS MARGIN TARGET VIA VOLUME AND PRODUCTIVITY Material reduced by 200 basis points as a percent of sales: TEOA tools/processes Higher level of local sourcing Design changes allow reduced metals usage Holding labor and overhead ratios flat despite double-digit emer
Slide 60: 15%+ Operating Margins
15%+ OPERATING MARGINS EXPECT 15% ADJ. OPERATING MARGIN AT FY14 GUIDANCE MID-POINT $13.3B $13.3B $13.9B >$14B Sales page 61 FY12 FY13 FY14 Guidance Mid-Point Target
Slide 61: TE Financial Objectives: Free Cash Flow
TE FINANCIAL OBJECTIVES DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION page 62 History of strong free cash flow generation Provides opportunities for strategic investments LONG TERM ORGANIC SALES GROWTH OF 5 – 7%
Slide 62: Strong Cash Generation
STRONG CASH GENERATION Free Cash Flow and % of Adj. Net Income Working capital is ~20% of sales Capital expenditures expected at 4% to 5% of sales Expect mid-teens cash tax rate as a result of utilizing net operating losses 117% 110% 103% page 63 (1) (1) Based on 52 week adjusted net income. Adjuste
Slide 63: TE Financial Objectives: Capital Allocation
TE FINANCIAL OBJECTIVES DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION page 64 Return ~2/3 of capital to shareholders Improve ROIC to >18% LONG TERM ORGANIC SALES GROWTH OF 5 – 7%
Slide 64: Expect to Grow Dividends in Line with Earnings
Expect to grow dividends in line with earnings Expect to grow dividends in line with earnings $1.9 billion in dividends paid to shareholders since FY08 Dividend payout ratio target of 25-35% Dividends per Share TRACK RECORD OF INCREASING DIVIDENDS $.0.64 $0.68 13% CAGR page 65 $0.64
Slide 65: Capital Deployment
CAPITAL DEPLOYMENT Cash generated since separation Over $8 billion free cash flow $1.7 billion from divestitures Debt Levels are appropriate for targeted credit rating Since FY08, ~$800 million used for net debt reduction and legacy liability payments Philosophy on uses of cash Expect ~2/3 return to
Slide 66: TE Financial Objectives
page 67 TE FINANCIAL OBJECTIVES DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BALANCED CAPITAL ALLOCATION LONG TERM ORGANIC SALES GROWTH OF 5 – 7%
Slide 67: Clear Financial Objectives
Double- digit >18% ~100% CLEAR FINANCIAL OBJECTIVES Double-digit page 68 Organic Sales Growth Adj. EPS Growth Dividend Growth ROIC Free Cash Conversion 5-7% Double-digit Double-digit >18% ~100% Increasing shareholder value
Slide 68: Multiple Levers to Drive Strong Performance
MULTIPLE LEVERS TO DRIVE STRONG PERFORMANCE Portfolio with attractive growth drivers Unmatched product range Strong geographic presence TEOA Attractive tax position Strong cash flow generation for M&A and capital returns page 69 DOUBLE-DIGIT EARNINGS GROWTH FREE CASH FLOW APPROXIMATES NET INCOME BAL
Slide 69: Questions & Answers
Questions & Answers
Slide 70: Appendix
APPENDIX
Slide 71: Non-GAAP Measures Descriptions
page 72 “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,” “Adjusted E
Slide 72: Adjusted Income Tax Expense Description
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 (“Adjusted Income Tax Expense”).
Slide 73: Free Cash Flow Description
“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 non-GAAP measure) consists m
Slide 74: Reconciliation of Net Sales Growth FY13 vs. FY12
page 75 RECONCILIATION OF NET SALES GROWTH – FY13 VS. FY12 Acquisition/ Translation (2) Divestiture Transportation Solutions (3) : Automotive 251 $ 4.9 % (54) $ 160 $ 357 $ 7.0 % 100 % Total 251 4.9 (54) 160 357 7.0 100 % Network Solutions (3) : Telecom Networks (29) (2.2) (4) - (33) (2.5) 42 Data C
Slide 75: Reconciliation of Net Sales Growth FY12 vs. FY11
page 76 RECONCILIATION OF NET SALES GROWTH – FY12 VS. FY11 Impact of Translation (2) 53rd Week (3) Acquisitions Transportation Solutions (4) : Automotive 325 $ 6.6 % (181) $ (102) $ 174 $ 216 $ 4.4 % 100 % Total 325 6.6 (181) (102) 174 216 4.4 100 % Network Solutions (4) : Telecom Networks (109) (7.
Slide 76: Reconciliation of Non-GAAP Measures, Year Ended Sept 27, 2013
page 77 RECONCILIATION OF NON-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 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 $ 38 $ - $ 1,017
Slide 77: Reconciliation of Non-GAAP Measures, Year Ended Sept 28, 2012
page 78 RECONCILIATION OF NON-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 28, 2012 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 754 $ 67 $ 9 $ - $ 83
Slide 78: Reconciliation of Non-GAAP Measures, Year Ended Sept 30, 2011
page 79 RECONCILIATION OF NON-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2011 Acquisition Restructuring Related and Other Tax Adjusted U.S. GAAP Charges (1) Charges, Net Items (2) (Non-GAAP) (3) Operating Income: Transportation Solutions 729 $ - $ (13) $ - $
Slide 79: Reconciliation of Gross Margin and Gross Margin Percentage
page 80 RECONCILIATION OF GROSS MARGIN AND GROSS MARGIN PERCENTAGE For the Years Ended September 27, September 28, 2013 2012 ($ in millions) Net sales 13,280 $ 13,282 $ Cost of sales 8,951 9,236 Gross margin 4,329 4,046 Gross margin percentage 32.6% 30.5% Acquisition Related Charges - 75 Adjusted gr
Slide 80: Reconciliation of Free Cash Flow
page 81 RECONCILIATION OF FREE CASH FLOW For the Years Ended September 27, September 28, September 30, September 24, September 25, September 26, 2013 2012 2011 2010 2009 2008 (in millions) Reconciliation of Free Cash Flow: Net cash provided by continuing operating activities 2,048 $ 1,888 $ 1,722 $
Slide 81: Calculation of Return on Invested Capital
page 82 CALCULATION OF RETURN ON INVESTED CAPITAL For the Years Ended September 27, September 28, 2013 2012 ($ in millions) Adjusted Operating Income (1) $ 1,881 $ 1,748 Income Taxes Paid, Net of Refunds (312) (290) 1,569 1,458 Average Invested Capital $ 10,048 $ 9,302 Return on Invested Capital (RO
Slide 82: Reconciliation of Non-GAAP Measures, 52 Week Year Ended Sept 30, 2011
page 83 RECONCILIATION OF NON-GAAP Financial Measures to GAAP Financial Measures for the 52 Week Year Ended September 30, 2011 Adjustment Acquisition Restructuring 53 Weeks 52 Weeks 53 Weeks Related and Other Adjusted Impact of Adjusted U.S. GAAP Charges (1) Charges, Net Tax Items (2) (Non-GAAP) (3)