TE Connectivity : Q1 2022 TE Connectivity Ltd. Earnings Conference Call

TE Connectivity

First Quarter

2022 Earnings

January 26, 2022

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. 24, 2021 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 Sales up 8% & Adjusted EPS up 20% Y/Y demonstrating diversity of our portfolio and strong operational performance

• Sales of $3.8B, up 8% Y/Y on both a reported and organic basis
• • Transportation better than expected; sales down 2% organically Y/Y due to auto production declines
  • Industrial up 18% organically Y/Y, driven by strong growth in Industrial Equipment & Energy
  • Communications up 40% organically Y/Y, with strong growth in both businesses
• Continued strong orders of $4.3B; book to bill of 1.13
• Adjusted Operating Margins of 18.6%, up 90bps Y/Y driven by Industrial & Communications
• Adjusted EPS of $1.76, up 20% Y/Y and a record for the first quarter
• Q1 Free Cash Flow of ~$370M with ~$410M returned to shareholders
• TE named to Dow Jones Sustainability Index for the 10th consecutive year and ranked in the top 20 of Investor Business Daily's 100 best ESG companies

Q2 Guidance

• Expect Q2 sales of ~$3.8B and Adjusted EPS ~$1.70
• • Sales up 2% on a reported basis and 3% organically Y/Y
  • • Double-digitgrowth in the Industrial and Communications Segments
  • Adjusted EPS of ~$1.70, up 8% Y/Y

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	FY21	FY21	FY22	Q1 Growth
	Q1	Q4	Q1	Y/Y	Q/Q
Transportation	2,537	2,349	2,158	(15)%	(8)%
Industrial	956	1,140	1,402	47%	23%
Communications	556	647	769	38%	19%
Total TE	4,049	4,136	4,329	7%	5%
Book to Bill	1.15	1.08	1.13

• Demand remains healthy in each segment
• Transportation order levels as expected and more closely aligned to market trends
• Industrial orders strengthened with growth across all businesses and regions
• Communications orders growth driven by Data & Devices

Demand Strength Continues with 1.13 Book to Bill

4

Transportation Solutions

$ in Millions

Q1 Sales

Reported

Down 3%

Organic	$2,224	$2,158
Down 2%
		Q1 2021		Q1 2022

Q1 Adjusted Operating Margin

Margin as expected,	19.4%
with declines driven by				18.2%
lower auto production
			Q1 2021				Q1 2022
Adjusted EBITDA Margin	24.9%	24.1%

Q1 Business Performance

Y/Y Growth Rates		Reported	Organic
Automotive	$1,520	(7)%	(6)%
Commercial	365	10%	11%
Transportation
Sensors	273	3%	5%
Transportation	$2,158	(3)%	(2)%
Solutions

• Automotive production declines partially offset by continued benefit from content outperformance due to electronification and electric vehicle adoption
• Commercial Transportation growth driven by North America and Europe, along with increased content in each region
• Sensors growth driven by industrial and transportation applications

5	Organic Net Sales Growth (Decline), Adjusted Operating Margin and Adjusted EBITDA Margin are non-GAAP financial measures: see Appendix for descriptions and reconciliations