Slide 1: TE Connectivity First Quarter 2024 Earnings
TE Connectivity First Quarter 2024 Earnings January 24, 2024 EVERY CONNECTION COUNTS
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements and military instability in countries in which we operate, including continuing This presentation contains certain "forward-looking statements" within the military conflict in certain parts of the world; developmen
Slide 3: Earnings Highlights
Earnings Highlights 20% Adjusted EPS growth in Q1 on flat Sales Y/Y; Adjusted Operating Margins of 19% Sales of $3.83B, ~flat reported, down 1% organically Y/Y Transportation up 5% organically Y/Y, driven by Automotive Industrial down 5% organically Y/Y, with growth in AD&M, Energy, and Medica
Slide 4: Segment Orders Summary
Segment Orders Summary ($ in millions) FY23 FY23 FY24 Q1 Growth Reported Q1 Q4 Q1 Y/Y Q/Q Transportation 2,154 2,418 2,247 4% (7)% Transportation orders reflecting ongoing stable global production and continued strong backlog position Industrial order patterns supporting continued growth Industr
Slide 5: Transportation Solutions
Transportation Solutions $ in Millions Automotive Q1 SALES Q1 BUSINESS PERFORMANCE Organic growth in Asia & Europe. Strong performance continues to be driven by Reported Y/Y Growth Reported Organic Rates our leading global position in Up 5% EV along with $2,259 $2,373 Automotive $1,776 8% 8% elect
Slide 6: Industrial Solutions
Industrial Solutions $ in Millions Industrial Equipment Q1 SALES Q1 BUSINESS PERFORMANCE Decline driven by ongoing destocking in our Reported Y/Y Growth customers’ supply chain Reported Organic Down 3% Rates AD&M $1,060 $1,025 Industrial $330 (24)% (26)% Organic growth driven by Organic Equipmen
Slide 7: Communications Solutions
Communications Solutions $ in Millions Data & Devices Q1 SALES Q1 BUSINESS PERFORMANCE Decline driven by ongoing destocking Reported across our customers’ Down 17% Y/Y Growth Rates Reported Organic supply chains; continue to see strong momentum in $522 Data & Devices $279 (15)% (15)% Organic $433
Slide 8: Q1 Financial Summary
Q1 Financial Summary ($ in Millions, except per share amounts) Q1 FY23 Q1 FY24 Net Sales $ 3,841 $ 3,831 Operating Income $ 502 $ 698 Operating Margin 13.1% 18.2% Acquisition-Related Charges 9 8 Restructuring & Other Charges, Net 111 25 Adjusted Operating Income $ 622 $ 731 Adjusted Operating Margin
Slide 9: Q1 Financial Performance
Q1 Financial Performance SALES ADJUSTED OPERATING MARGIN $ in Billions 290bps of ~Flat Sales margin Y/Y expansion 19.1% $3.8 $3.8 16.2% Q1 2023 Q1 2024 Q1 2023 Q1 2024 ADJUSTED EPS FREE CASH FLOW $ in Millions ~$600M Up ~20% returned to Y/Y driven by shareholders $570 $1.53 $1.84 margin expansion $3
Slide 10: Additional Information
Additional Information EVERY CONNECTION COUNTS
Slide 11: Y/Y Q1 2024 Sales and Adjusted EPS
Y/Y Q1 2024 Sales Adjusted EPS (in millions) Q1 2023 Results $3,841 $1.53 Operational Performance (54) 0.34 FX Impact 44 0.01 Tax Rate Impact - (0.04) Q1 2024 Results $3,831 $1.84 11 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 12: Y/Y Q2 2024 Sales and Adjusted EPS Guidance
Y/Y Q2 2024 Sales Adjusted EPS (in millions) Q2 2023 Results $4,160 $1.65 Operational Performance (197) 0.25 FX Impact (13) (0.05) Tax Rate Impact - (0.03) Q2 2024 Guidance $3,950 $1.82 12 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 13: Q1 Balance Sheet and Cash Flow Summary
Q1 Balance Sheet and Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash and Debt ($ in Millions) Q1 2023 Q1 2024 ($ in Millions) Q1 2023 Q1 2024 Cash from Operating Activities $581 $719 Beginning Cash Balance $1,088 $1,661 Free Cash Flow 399 570 Capital expenditures, net (182) (149
Slide 14: Appendix
Appendix EVERY CONNECTION COUNTS
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as Organic Net Sales Growth (Decline) – represents net sales Adjusted Income Tax (Expense) Benefit and Adjusted we believe it is appropriate for investors to consider adjusted growth (decline) (the most comparable
Slide 16: Non-GAAP Financial Measures (cont.)
Non-GAAP Financial Measures (cont.) Adjusted EBITDA and Adjusted EBITDA Margin – property, plant, and equipment. These items are subtracted represent net income and net income as a percentage of net because they represent long-term commitments. In the sales, respectively, (the most comparable GAAP
Slide 17: Segment Summary
Segment Summary For the Q uarte rs Ende d De ce mbe r 29, De ce mbe r 30, 2023 2022 ($ in millions) Ne t Sale s Ne t Sale s Transportation Solutions $ 2,373 $ 2,259 Industrial Solutions 1,025 1,060 Communications Solutions 433 522 Total $ 3,831 $ 3,841 O pe rating O pe rating O pe rating O pe rating
Slide 18: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth Change in Ne t Sale s for the Q uarte r Ende d De ce mbe r 29, 2023 ve rsus Ne t Sale s for the Q uarte r Ende d De ce mbe r 30, 2022 Ne t Sale s O rganic Ne t Sale s Acquisition/ (1) (2) Growth (De cline ) Growth (De cline ) Translation (Dive stiture s) ($ in mill
Slide 19: Reconciliation of Non-GAAP Measures, Quarter Ended December 29, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 29, 2023 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) Tax Ite ms (2) (Non-GAAP) (3) ($ in millions, e xce pt pe r share data)
Slide 20: Reconciliation of Non-GAAP Measures, Quarter Ended December 30, 2022
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 30, 2022 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) U.S. GAAP Charge s Charge s, Ne t (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating incom
Slide 21: Reconciliation of Non-GAAP Measures, Quarter Ended March 31, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 31, 2023 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) U.S. GAAP Charge s Charge s, Ne t (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating income:
Slide 22: Reconciliation of Non-GAAP Measures, Year Ended September 29, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 29, 2023 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) (2) U.S. GAAP Charge s Charge s, Ne t Tax Ite ms (Non-GAAP) (3) ($ in millions, e xce pt pe r share data) Op
Slide 23: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Q uarte rs Ende d De ce mbe r 29, De ce mbe r 30, 2023 2022 (in millions) Net cash provided by operating activities $ 719 $ 581 Net cash used in investing activities (468) (265) Net cash used in financing activities (745) (621) Effect of currency translation
Slide 24: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Q uarte rs Ende d De ce mbe r 29, De ce mbe r 30, 2023 2022 ($ in millions) Net income $ 1,803 $ 397 Loss from discontinued operations 1 1 Income tax expense (benefit) (1,105) 87 Other expense, net 3 5 Interest expense 18 21 Intere
Slide 25: 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 Q uarte r Ending March 29, O utlook for (1) 2024 Fiscal 2024 (1) Diluted earnings per share from continuing operations $ 1.75 Restructuring and other charges, net 0.05 Acquisition-re