Q1 2016 Earnings January 20, 2016 Forward-Looking Statements and - PowerPoint PPT Presentation

Q1 2016 Earnings January 20, 2016

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 Ref orm Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identi fy forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this presentation include statements addressing our future financial condition and operating results and our planned sale of the Circuit Protection Devices business. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, business, economic, competitive and regulatory risks, such as conditions affecting demand for products, particularly in the automotive and data and devices industries; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; the possible effects on us of changes in tax laws, tax treaties and other legislation; the risk that we do not realize the anticipated benefits from the sale of the Broadband Network Solutions business; the risk that the sale of the Circuit Protection Devices business may not be consummated, or if consummated, we do not realize the anticipated benefits from such transaction; and the risk that the conditions precedent to our proposed tax litigation settlement with the IRS relating to our intercompany debt dispute are not met and the intercompany debt dispute is not settled. More detailed information about these and other factors is set forth in our Annual Report on Form 10-K for the fiscal year ended Sept. 25, 2015 as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8- K, and other reports filed by us with the U.S. Securities and Exchange Commission. Non-GAAP Measures Where we have used non-GAAP financial measures, reconciliations to the most comparable GAAP measure are provided, along with a disclosure on the usefulness of the non-GAAP measure, in this presentation. 2

Q1 2016 Summary Performing well in a challenging macro environment • Sales above the midpoint of Guidance, down 7% Y/Y and down 2% organically to $2.83B • Adjusted EPS of $0.84, above the high end of Guidance, down 6% Y/Y and flat at constant currency • Results above Guidance driven by Transportation and SubCom • FX headwinds Y/Y: $184M sales and $0.05 EPS • Returned $1.4B to shareholders including $1.3B in share buybacks • Free cash flow of $237M • Excluding SubCom, Book-to-Bill of 1.04 and orders increased 3% sequentially Business highlights • Continued strong performance in Transportation with sales above expectations • Industrial remains sluggish with inventory corrections continuing to impact end markets • Continued execution of our harsh strategy • Last year’s acquisitions in the sensors and medical markets gaining momentum • Announced the sale of the Circuit Protection business; on track to close in Q2 Organic Sales Growth, Adjusted EPS, Adjusted EPS in Constant Currency and Free Cash Flow are non-GAAP measures; see Appendix for description 3 and reconciliation.

Segment Orders Summary ($ in millions) FY15 FY16 Q1 Q4 Q1 • Q1 3% sequential growth in orders driven by Transportation Transportation 1,668 1,480 1,583 • Industrial orders stabilizing; Slightly better than Industrial 818 720 728 expected OEM orders more than offset weaker distribution orders Communications 515 448 408 Ex SubCom • Book to bill of 1.04 with all segments exceeding 1.0 Total TE 3,001 2,648 2,719 Ex SubCom Total TE Ex SubCom 2,846 2,653 2,758 @ Constant Currency Book to Bill 1.03 0.95 1.04 Ex SubCom Stabilization in order trends with strong book to bill 4

Transportation Solutions $ in Millions Sales Business Performance Actual Y/Y Growth Rates Actual Organic Down 7% Automotive $1,141 (7)% 1% $1,612 $1,507 Commercial Organic 185 (11)% (5)% Transportation Up 1% Q1 2015 Q1 2016 * Sensors 181 1% 9% Transportation Actual Organic $1,507 (7)% 1% Solutions Orders $1,583 (5)% 3% • TE Automotive sales performance driven by strength in Adjusted Operating Margin EMEA and North America offsetting weakness in China • Commercial Transportation impacted by continued Adjusted Operating weakness in global construction and agriculture markets and Income the North America heavy truck markets $280M, • Sensors momentum in automotive across multiple Down 17% 20.9% applications; Acquisition rationale playing out as expected 18.6% • Adjusted Operating Margin above Guidance expectations; Y/Y impacted by product mix and investment for growth Q1 2015 Q1 2016 5 * FY16 Sensors includes an extra 2 weeks of sales due to the timing of the Measurement Specialties acquisition in FY15 (Closed October 9 th , 2014) Organic Sales Growth, Adjusted Operating Income and Adjusted Operating Margin are non-GAAP measures; see Appendix for description and reconciliation.

Industrial Solutions $ in Millions Sales Business Performance Actual Y/Y Growth Rates Actual Organic Down 10% Industrial Equipment $289 (7)% (7)% $784 $709 Aerospace & Organic 218 (6)% (3)% Defense Down 6% Q1 2015 Q1 2016 Oil and Gas 34 (44)% (44)% Energy 168 (7)% 4% Actual Organic Industrial Solutions $709 (10)% (6)% Orders $728 (11)% (8)% • Adjusted Operating Margin EMEA strength driven by Energy and Industrial Equipment; North America and China impacted by Adjusted Operating corrections in the supply chain Income • Distribution channel driving Y/Y declines; OEM business $78M, performance as expected 12.5% • Down 20% Oil and Gas market remains weak 11.0% • Adjusted Operating Margin down Y/Y as expected with declines in Oil and Gas business Q1 2015 Q1 2016 6 Organic Sales Growth, Adjusted Operating Income and Adjusted Operating Margin are non-GAAP measures; see Appendix for description and reconciliation.

Communications Solutions $ in Millions Sales Business Performance Actual Y/Y Growth Rates Actual Organic Down 6% SubCom $222 66% 66% $653 $617 Appliances 131 (17)% (13)% Organic Data & Devices 264 (27)% (25)% Down 3% Q1 2015 Q1 2016 Communications $617 (6)% (3)% Solutions Actual Organic Orders ex SubCom $408 (21)% (18)% • SubCom upside driven by an early program completion; multiple programs remain in force Adjusted Operating Margin • Appliances impacted by significant weakness in Asia and supply chain corrections in the Americas Adjusted Operating Income • Data & Devices decline Y/Y due to product exits, $86M, sluggish market in China and inventory corrections 13.9% Up 30% • Adjusted Operating Margin in line with expectations 10.1% excluding the impact of the early SubCom program completion Q1 2015 Q1 2016 7 Organic Sales Growth, Adjusted Operating Income and Adjusted Operating Margin are non-GAAP measures; see Appendix for description and reconciliation.

Q1 Financial Summary Q1 FY15 Q1 FY16 ($ in Millions, except per share amounts) Net Sales $ 3,049 $ 2,833 Operating Income $ 425 $ 398 Acquisition Related Charges 51 6 Restructuring & Other Charges, net 25 40 Adjusted Operating Income $ 501 $ 444 Operating Margin 13.9% 14.0% Adjusted Operating Margin 16.4% 15.7% GAAP Earnings Per Share $ 1.05 $ 0.83 Acquisition Related Charges 0.09 0.01 Restructuring & Other Charges, net 0.06 0.07 Tax Items (0.31) (0.07) Adjusted EPS $ 0.89 $ 0.84 Adjusted EPS decline driven by foreign currency headwinds of $0.05 Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP measures; see Appendix for description and reconciliation. 8

TE Operating Advantage (TEOA) $ in Millions Adjusted Gross Margin Percentage Free Cash Flow 34.3% $237 33.4% $79 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Adjusted Operating Margin Adjusted EBITDA Margin 16.4% 15.7% 21.4% 20.8% Q1 2015 Q1 2016 Q1 2015 Q1 2016 Adjusted Margin resiliency in a challenging macro environment 9 Adjusted Gross Margin Percentage, Free Cash Flow, Adjusted Operating Margin and Adjusted EBITDA Margin are non-GAAP measures; See Appendix for description and reconciliation.