Te Connectivity Plc · NYSE:TEL

Te Connectivity — Sanford C. Bernstein Strategic Decisions Conference 2016

21 slides from Te Connectivity's conference presentation, June 2016

  1. Slide 1: Sanford C. Bernstein Strategic Decisions Conference

    Sanford C. Bernstein Strategic Decisions Conference June, 2016 Tom Lynch Chief Executive Officer

  2. 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

  3. Slide 3: TE at a Glance

    TE AT A GLANCE TECHNOLOGY COMPANY DRIVING THE CONNECTED FUTURE TE Connectivity is the world leader in connectivity and TE serves a sensor solutions with the broadest range of technologies $ BILLION TE’s highly engineered products and integrated solutions 170 MARKET growing 2x annual GDP growth1 perf

  4. Slide 4: TE Products & Capabilities: Key Enablers of Our Connected World

    TE Products & Capabilities Key Enablers of Our Connected World Custom Intellectual Designs Property System Level Manufacturing Engineered Integration Solutions Expertise Products SEALING PRECISION WIRE CONNECTORS SENSORS RELAYS & PROTECTING & CABLE

  5. Slide 5: Our Successful Portfolio Transformation

    Our Successful Portfolio Transformation ACQUIRED COMPANIES* HARSH REVENUE UP TO 80% $670M $150M $640M $300M FY15 ADJUSTED OPERATING 2010 2011 2012 2013 2014 2015 2016 MARGIN DIVESTED ASSETS* >16% HARSH REVENUE ELO Touch Systems FY15 60% Transpower Broadband Network Solutions Circuit Protection ADJUS

  6. Slide 6: Electronic Content Growth is a Secular Trend Across Our Businesses

    Electronic Content Growth is a Secular Trend Across Our Businesses FISCAL 2015 SALES SECULAR GROWTH DRIVERS ADAS/ Emissions & Sensor TRANSPORTATION Safety Infotainment Expansion SOLUTIONS • Auto content growth 4-6% per year $6.3B • Sensors double the auto opportunity from $200 to $400 per vehicle Di

  7. Slide 7: Driving Integrated Solutions: Auto

    Driving Integrated Solutions: Auto Next Generation Integrated Transmission Assembly ADDS $20 CONTENT PER VEHICLE Connectors Sensors Terminals Plugs

  8. Slide 8: Driving Integrated Solutions: Aerospace

    Driving Integrated Solutions: Aerospace 40% INCREASE IN ELECTRONIC CONTENT MiniMRP Electronics Total System Solution Smart Connectivity 33,000 ASSEMBLIES Integration Kitting Connectors Box 8,000 CONNECTORS

  9. Slide 9: Driving Integrated Solutions: Medical

    Driving Integrated Solutions: Medical Fine Wire prep for Integration of Fine Wire CONTENT termination to Sensor into catheter body PER AVG DEVICE UP 10x TO $100 SENSOR CATHETER HANDLE Molding, Custom Single Use Interconnect devices Connectors Miniature MEMS Pressure Sensor • Increasing demand for mi

  10. Slide 10: Track Record of Consistent, Strong Operating Performance

    Track Record of Consistent, Strong Operating Performance $ in billions except per share amounts Net Sales Adjusted Earnings Per Share 7% Harsh Sales 13% 29% VS. FY13 VS. FY13 VS. FY13 $12.2 $3.60 $12.0 $3.31 $11.4 $2.79 FY13 FY14 FY15 FY13 FY14 FY15 Adjusted Gross Margin Percentage Adjusted Operatin

  11. Slide 11: Consistent Dividend Growth and Balanced Use of Capital

    Consistent Dividend Growth and Balanced Use of Capital Major Capital Deployment** FY08 through FY15 Dividends Per Share*** $ 1.30 $1.24 $ 1.20 $1.08 $ 1.10 Share $ 1.00 Repurchases Acquisitions* $0.92 16% CAGR $5.4 billion $5.8 billion $ 0.90 $0.78 $ 0.80 $0.68 $ 0.70 $ 0.60 Dividends $2.8 billion $

  12. Slide 12: Focused Portfolio Positioned for Growth

    Focused Portfolio Positioned for Growth Strong Track Record of Profitability Positioned for Improvement and Capital Allocation Revenue Growth & Margin Expansion Capital Allocation • World leader in connectivity and sensor solutions & Profitability • Benefit from megatrends of safe, Portfolio Improve

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: 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,” “Ad

  15. Slide 15: Non-GAAP Measures (cont.)

    Non-GAAP Measures (cont.) 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 or

  16. Slide 16: Reconciliation of Gross Margin and Gross Margin Percentage

    Reconciliation of Gross Margin and Gross Margin Percentage For the Ye ars Ende d Se pte mbe r 25, Se pte mbe r 26, Se pte mbe r 27, 2015 2014 2012 2013 ($ in millions) Net Sales $ 12,233 $ 11,973 $ 11,390 Cost of Sales 8,146 8,001 7,739 Gross Margin 4,087 3,972 3,651 Gross Margin Percentage 33.4% 33

  17. Slide 17: Reconciliation of Net Income to Adjusted EBITDA

    Reconciliation of Net Income to Adjusted EBITDA For the Ye ar Ende d Se pte mbe r 25, 2015 ($ in millions) Net Income $ 2,420 Income from discontinued operations (1,182) Income tax expense 337 Other (income) expense, net 55 Interest expense 136 Interest income (17) Operating Income $ 1,749 Acquisiti

  18. Slide 18: Reconciliation of Non-GAAP Financial Measures for the Year Ended September 24, 2010

    Reconciliation of Non-GAAP Financial Measures for the Year Ended September 24, 2010 Adjustments Re structuring and O ther Tax O ther Items, Adjuste d U.S. GAAP Charge s, Net (2) Items (3) Net (4) (Non-GAAP) (5) ($ in millions, except pe r share data) Net Sales $ 12,070 $ - $ - $ - $ 12,070 Operating

  19. Slide 19: Reconciliation of Non-GAAP Financial Measures for the Year Ended September 27, 2013

    Reconciliation of Non-GAAP Financial Measures for the Year Ended September 27, 2013 Adjustme nts Acquisition Re structuring Re late d and O the r Tax Adjuste d U.S. GAAP Charge s Charge s, Ne t Ite ms (1) (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating Income: Transportation Solut

  20. Slide 20: Reconciliation of Non-GAAP Financial Measures for the Year Ended September 26, 2014

    Reconciliation of Non-GAAP Financial Measures for the Year Ended September 26, 2014 Adjustme nts Acquisition Re structuring Re late d and O the r Tax Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t Ite ms (2) (Non-GAAP) (3) ($ in millions, e xce pt pe r share data) Operating Income: Transportation S

  21. Slide 21: Reconciliation of Non-GAAP Financial Measures for the Year Ended September 25, 2015

    Reconciliation of Non-GAAP Financial Measures for the Year Ended September 25, 2015 Adjustme nts Acquisition Restructuring Related and O the r Tax Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t Ite ms (2) (Non-GAAP) (3) ($ in millions, except pe r share data) Operating Income: Transportation Soluti

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