Te Connectivity Plc · NYSE:TEL
Te Connectivity — Merger or Acquisition (February 2016)
14 slides from Te Connectivity's merger presentation, Feb 2, 2016
Slide 1: TE Connectivity Acquires Creganna Medical
Investor Presentation February 2, 2016 TE CONNECTIVITY ACQUIRES CREGANNA MEDICAL
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 subject
Slide 3: Our Connected World
Our Connected World TE is the World Leader in Connectivity & Sensor Solutions $170 BILLION CONNECTIVITY AND 12+ BILLION TE ANNUAL REVENUE SENSOR MARKET Our highly engineered solutions are key enablers of the connected world 3
Slide 4: Expanding Our Harsh Environment Leadership
Expanding Our Harsh Environment Leadership HARSH REVENUE UP TO FROM 60% IN 2010 80% $670M $150M $640M >16% ADJUSTED OPERATING MARGIN +260bps FROM 2010 >21% ADJUSTED 2010 2011 2012 2013 2014 2015 EBITDA MARGIN +320bps FROM 2010 CHARACTERISTICS REQUIREMENTS • High quality and extreme reliability deman
Slide 5: Compelling Strategic Rationale
Compelling Strategic Rationale Establishes TE as a leader Expands TE’s harsh in the attractive space of environment minimally invasive leadership interventional products Complements TE’s Boosts revenue strengths, product growth and portfolio and capabilities adjusted EBITDA margins CREATES LEADING S
Slide 6: Attractiveness of the $3B Interventional Market
Attractiveness of the $3B Interventional Market FAVORABLE • Favorable demographics with aging population MARKET • Increasing demand for minimally invasive procedures DYNAMICS • Focus on reducing hospital stay and related costs ATTRACTIVE • Expected market growth rates of 7% GROWTH • Secular growth t
Slide 7: Creganna Medical Overview
Creganna Medical Overview Leading designer and manufacturer of minimally invasive Interventional devices Attractive ~$250M FY 2015 revenue with high single-digit growth; 24% EBITDA margins asset in a Strategic supplier to the Top Interventional OEMs FAST- GROWING Global customer base: ~40% o
Slide 8: TE Becomes the Broadest Solution Provider
TE Becomes the Broadest Solution Provider BRINGS COMPLEMENTARY ENABLES TE TO ADDRESS > 90% OF THE CONTENT STRENGTHS IN INTERVENTIONAL DEVICES Creganna TE strength strength Laser-cut Metal hypotubes Wire & coil Medical balloons Braided shafts Handles and deployment system Heat shrink tube
Slide 9: Transaction highlights
Transaction highlights • $895M purchase price Transaction • Approximately 12x expected FY16 EBITDA post run rate synergies Value Revenue • Cross-selling revenue synergy opportunities and Cost • Significant cost savings through application of TEOA & tax synergies Synergies Financial • Expected to be
Slide 10: Summary
Summary • Furthers TE’s strategy to expand our leadership in attractive harsh environment applications • Establishes TE as a leading supplier in a fast-growing segment of the medical device market • Leverages TE’s strengths in engineering, manufacturing and portfolio breadth • Acquisition will be ac
Slide 11: Appendix
Appendix 11 TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
Slide 12: Non-GAAP Measures
Non-GAAP Measures ”Adjusted Operating Income”, “Adjusted Operating Margin,” “Adjusted Earnings Per Share,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “EBITDA,” and “Free Cash Flow” are non-GAAP measures and should not be considered replacements for results in accordance with accounting principles
Slide 13: Non-GAAP Measures, continued
Non-GAAP Measures, continued Adjusted EBITDA and Adjusted EBITDA Margin - represent net income and net income as a percentage of net sales (the most comparable GAAP measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net other income, inc
Slide 14: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA For the Years Ended September 25, September 24, 2015 2010 (1) ($ in millions) Net Income $ 2,420 $ 1,103 Minority interest - 6 Income from discontinued operations (1,182) (44) Income tax expense 337 493 Other (income) expense, net 55 (177) Interest exp
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