Te Connectivity Plc · NYSE:TEL

Te Connectivity — Bernstein's 35th Annual Strategic Decisions Conference 2019

17 slides from Te Connectivity's conference presentation, May 30, 2019

  1. Slide 1: TE Connectivity Presentation

    TE Connectivity Presentation May 2019

  2. Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures

    Forward-Looking Statements and Non-GAAP Financial 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 a

  3. Slide 3: TE Connectivity

    TE CONNECTIVITY INDUSTRIAL TECHNOLOGY COMPANY CREATING A SAFER, SUSTAINABLE, PRODUCTIVE AND CONNECTED FUTURE WORLD LEADER in connectivity and sensor solutions with the broadest range of technologies Highly engineered products and integrated solutions perform in Commercial harsh environments where fa

  4. Slide 4: Growth Driven by Secular Trends

    GROWTH DRIVEN BY SECULAR TRENDS END MARKET TRENDS FACTORY AUTOMATION CONTENT GROWTH EXAMPLE EV adoption globally, driven by OEM Relays & Government initiatives Motor sensors Safer, more autonomous vehicles Board connectivity Heavy truck content driven by regulatory Content increase 5x New content: r

  5. Slide 5: The Levers of Our Business Model

    THE LEVERS OF OUR BUSINESS MODEL TOP LINE MARGIN EXPANSION BOTTOM LINE ORGANIC REVENUE LOWER OPERATING EPS GROWTH EXPENSES GROWTH + 4-6 % Reduce SG&A by Pulling the levers for 100 basis points double-digit gains M&A IMPROVED OPERATING BALANCED CAPITAL MARGINS STRATEGY Adding >100 basis points Expand

  6. Slide 6: Business Model Performance Through the Cycle

    BUSINESS MODEL PERFORMANCE THROUGH THE CYCLE ▪ Transportation Target Adjusted Operating 4% 13% Margins of ~20% Average 4 Year 4 Year Organic Growth CAGR ▪ Industrial continues migration to high ADJUSTED REVENUE EARNINGS teens Adjusted Operating Margins $ Billions PER SHARE ▪ Communications target mi

  7. Slide 7: Capital Strategy: Balanced Deployment

    CAPITAL STRATEGY: BALANCED DEPLOYMENT MAJOR CAPITAL DEPLOYMENT** DIVIDENDS PER SHARE FY08 through FY18 $1.80 $1.68 $1.54 Share $1.40 Repurchases Acquisitions* $1.24 $7.7B $7.6B $1.08 ~2/3 ~1/3 $0.92 $0.78 $0.64 $0.68 BNS Proceeds $2B Dividends $4.5B FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

  8. Slide 8: Appendix

    Appendix

  9. Slide 9: Non-GAAP Financial Measures

    Non-GAAP Financial 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 m

  10. Slide 10: Non-GAAP Financial Measures (cont.)

    Non-GAAP Financial Measures (cont.) • Net Sales Excluding the Impact of the Additional Week, Net Sales Growth Excluding the Impact of the Additional Week, Organic Net Sales Growth Excluding the Impact of the Additional Week, Adjusted Operating Income Excluding the Impact of the Additional Week, Adju

  11. Slide 11: Reconciliation of Non-GAAP Measures for Year Ended September 28, 2018

    Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 28, 2018 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

  12. Slide 12: Reconciliation of Non-GAAP Measures for Year Ended September 30, 2016

    Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2016 (1) Adjustments Restructuring Acquisition and O ther Related Charges Tax Adjusted U.S. GAAP Charges (2)(3) (Credits), Net (3) Items (4) (Non-GAAP) (5) ($ in millions, except per share data)

  13. Slide 13: Reconciliation of Non-GAAP Measures for Year Ended September 25, 2015

    Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2015 (1) Adjustments Acquisition Restructuring Related and O ther Tax Adjusted U.S. GAAP Charges (2)(3) Charges, Net (3) Items (4) (Non-GAAP) (5) ($ in millions, except per share data) Operating

  14. Slide 14: Impact of Additional Week in FY16 including Net Sales Growth to FY17

    Impact of Additional Week in FY16 including Net Sales Growth to FY17 Change in Net Sales for Fiscal 2017 Change in O rganic Net Sales for Fiscal 2017 Fiscal 2016 versus Net Sales for Fiscal 2016 versus O rganic Net Sales for Fiscal 2016 (2) Adjustment Adjustment Adjustment 53 Weeks Impact of 52 Week

  15. Slide 15: Impact of Additional Week in FY16 including Net Sales Growth from FY15

    Impact of Additional Week in FY16 including Net Sales Growth from FY15 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 We

  16. Slide 16: Reconciliation of Net Sales Growth

    Reconciliation of Net Sales Growth Change in Net Sales for the Year Ended September 28, 2018 versus Net Sales for the Year Ended September 29, 2017 Net O rganic Net Sales Growth Sales Growth (1) Translation (2) Acquisitions ($ in millions) $ 1,803 14.8% $ 1,118 9.2% $ 436 $ 249 Change in Net Sales f

  17. Slide 17: Reconciliation of Forward-Looking Non-GAAP Financial Measures

    Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures O utlook for Fiscal 2019 (1) Diluted earnings per share from continuing operations (GAAP) $4.88 - $4.98 Restructuring and other charges, net 0.55 Acquisition related charges 0.08 Tax items 0.04 A

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