Te Connectivity Plc · NYSE:TEL
Te Connectivity — Sanford C. Bernstein Strategic Decisions Conference 2017
18 slides from Te Connectivity's conference presentation, June 2017
Slide 1: Sanford C. Bernstein Strategic Decisions Conference
Sanford C. Bernstein Strategic Decisions Conference June, 2017 Terrence Curtin Chief Executive Officer
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: TE Connectivity is an Industrial Technology Company
TE CONNECTIVITY IS AN INDUSTRIAL TECHNOLOGY COMPANY CREATING A SAFER, SUSTAINABLE, PRODUCTIVE AND CONNECTED FUTURE WORLD LEADER in connectivity and sensor solutions Highly engineered products and integrated solutions perform in harsh environments where failure is not an option Commercial Automotive
Slide 4: Successful Portfolio Transformation
Successful Portfolio Transformation Divestitures of non-harsh businesses Platform and tuck-in acquisitions Product exits in volatile markets Execution of TEOA initiatives 2010 2011 2012 2013 2014 2015 2016 FY10 ADJUSTED FY16 ADJUSTED OPERATING EACH DOLLAR OF REVENUE TODAY GENERATES OPERATING MARGIN
Slide 5: Positioned for Above-Market Growth
Positioned for Above-Market Growth Portfolio is GROWTH in Industrial TRANSFORMED and Communications with and FIRING on MARGIN EXPANSION all cylinders initiatives Expect to CONSISTENT OUTGROW 2014 our capital strategy with markets due FOCUSED M&A to secular trend of CONTENT growth 5
Slide 6: Content Growth is a Secular Trend Across Our Businesses
Content Growth is a Secular Trend Across Our Businesses TRANSPORTATION INDUSTRIAL COMMUNICATIONS SOLUTIONS SOLUTIONS SOLUTIONS FISCAL 2016 SALES $6.5B $3.2B $2.5B ADAS/ Smart IoT Safety Factory Emissions & New Aircraft Growth of Infotainment Designs Cloud SECULAR GROWTH DRIVERS Sensor Medical Smart
Slide 7: Track Record of Improving Performance
Track Record of Improving Performance 3% ORGANIC GROWTH 5 Year Average* 4.5% Excluding D&D product exits Harsh Sales 21% VS. FY13 Adjusted Earnings Per Share 66% VS. FY13 13% CAGR Net Sales 11% VS. FY13 $4.62 $12.2 $12.7 $3.60 $11.4 $2.79 FY13 FY15 FY17 FY13 FY15 FY17 Adjusted Operating Margin Divid
Slide 8: Focused Portfolio Positioned for Growth
Focused Portfolio Positioned for Growth Strong Track Record of Profitability Improvement and Capital Allocation Capital Allocation & Profitability Improvement Positioned for Revenue Growth & Margin Expansion ~16% FY16 ADJUSTED OPERATING MARGIN • World leader in connectivity and sensor solutions +210
Slide 9: Appendix
Appendix 9
Slide 10: Non-GAAP Measures
Non-GAAP Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures pr
Slide 11: Non-GAAP Measures (cont.)
Non-GAAP Measures (cont.) • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition related charges, tax sharing income related to adjustments to
Slide 12: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Adjusted diluted earnings per share from continuing operations (non-GAAP) (2) $1.14 - $ 1.18 Reconciliation Net sales growth (GAAP)of Forward-Looking Non-GAAP Financial Measures 2 - 6% Translation 2 to(Acquisitions) Forward-Looking divestitures, net GAAP Financial Measures (1) Organic net sales grow
Slide 13: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth Net O rganic Net Acquisitions Sales Growth Sales Growth (1) Translation (2) (Divestiture) ($ in millions) Change in Net Sales for Fiscal 2016 versus Net Sales for Fiscal 2015 Transportation Solutions $ 152 2.4% $ 310 4.9% $ (174) $ 16 Industrial Solutions 36 1.1 (8
Slide 14: Reconciliation of Non-GAAP Financial Measures, Year Ended September 30, 2016
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2016 Adjustments Restructuring Acquisition and O ther Related Charges Tax Adjusted U.S. GAAP Charges (1)(2) (Credits), Net (2) Items (3) (Non-GAAP) (4) ($ in millions, except per share data) Ope
Slide 15: Impact of Additional Week for Fiscal 2016
Impact of Additional Week for Fiscal 2016 Change in Net Sales for Fiscal 2016 Change in O rganic Net Sales for Fiscal 2016 Fiscal 2016 versus Net Sales for Fiscal 2015 versus O rganic Net Sales for Fiscal 2015 (2) Adjustment Adjustment Adjustment 53 Weeks Impact of 52 Weeks 53 Weeks Impact of 52 Wee
Slide 16: Reconciliation of Non-GAAP Financial Measures, Year Ended September 25, 2015
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2015 Adjustments Acquisition Restructuring Related and O ther Tax Adjusted U.S. GAAP Charges (1)(2) Charges, Net (2) Items (3) (Non-GAAP) (4) ($ in millions, except per share data) Operating Inc
Slide 17: Reconciliation of Non-GAAP Financial Measures, Year Ended September 27, 2013
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2013 Adjustments Acquisition Restructuring Related and O ther Tax Adjusted U.S. GAAP Charges (1) Charges, Net (1) Items (2) (Non-GAAP) (3) ($ in millions, except per share data) Operating Income
Slide 18: Reconciliation of Non-GAAP Financial Measures, Year Ended September 24, 2010
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 24, 2010 (1) Adjustme nts Re structuring and O the r Tax O the r Ite ms, Adjuste d U.S. GAAP Charge s, Ne t (2) Ite ms (3) Ne t (4) (Non-GAAP) (5) ($ in millions, e xce pt pe r share data) Net Sales
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