TE Connectivity : Q1 2021 TE Connectivity Ltd. Earnings Conference Call

TE Connectivity

First Quarter

2021 Earnings

January 27, 2021

EVERY CONNECTION COUNTS

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 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 identify 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 the impact on our operations resulting from the coronavirus disease 2019 ("COVID-19"). Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of COVID- 19 negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; 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; and the possible effects on us of changes in tax laws, tax treaties and other legislation, including the effects of Swiss tax reform. In addition, the extent to which COVID-19 will impact our business and our financial results will depend on future developments, which are highly uncertain and cannot be predicted. Such developments may include the geographic spread of the virus, the severity of the virus, the duration of the outbreak, the impact on our suppliers' and customers' supply chains, the actions that may be taken by various governmental authorities in response to the outbreak in jurisdictions in which we operate, and the possible impact on the global economy and local economies in which we operate. More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept. 25, 2020 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 Financial 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 financial measure, in this presentation.

2

Earnings Highlights

Q1 Results exceeded guidance with double digit growth in Sales and EPS

• Sales of $3.5B, up 11% on a reported basis and 6% organically Y/Y
• • Transportation up 12% organically Y/Y, with growth in all businesses
  • Industrial down 8% organically Y/Y, driven by weakness in Comm Air
  • Communications up 12% organically Y/Y, with growth in Appliances and Data & Devices
• Orders of ~$4B, up 25% Y/Y. Book to bill of 1.15
• Adjusted Operating Margins of 17.7%, up ~190bps Y/Y
• Adjusted EPS of $1.47, up 21% Y/Y driven by strong operational performance
• Record Q1 Free Cash Flow of ~$530M with ~$285M returned to shareholders
• Continuing to demonstrate the strength of our portfolio and content benefit from secular trends

Q2 Guidance reflects double digit Sales and Adjusted EPS growth Y/Y

• Expect sales of ~$3.5B, up ~10% reported and mid-single digits organically Y/Y
• • Y/Y increases in Transportation and Communications, partially offset by declines in Industrial
• Adjusted EPS of ~$1.47, up 14% Y/Y with Adjusted Operating Margin expansion

3	Organic Net Sales Growth (Decline), Adjusted EPS, Adjusted Operating Margin and Free Cash Flow are non-GAAP financial measures; see Appendix for descriptions and reconciliations

Segment Orders Summary

($ in millions)

Reported	FY20	FY20	FY21	Q1 Growth
	Q1	Q4	Q1	Y/Y	Q/Q
Transportation	1,867	2,124	2,537	36%	19%
Industrial	965	799	956	(1%)	20%
Communications	409	425	556	36%	31%
Total TE	3,241	3,348	4,049	25%	21%
Book to Bill	1.02	1.03	1.15

• Transportation Y/Y growth driven by all businesses and regions
• Industrial Y/Y decline driven by Comm Air weakness partially offset by increases in Industrial Equipment and Energy
• Communications Y/Y growth driven by Appliances and Data & Devices increases in all regions
• Sequential orders growth across all businesses in each Segment

Orders Reflecting Benefit of Market Improvements

4