TE Connectivity : Q2 2021 TE Connectivity Ltd. Earnings Conference Call

TE Connectivity

Second Quarter

2021 Earnings

April 21, 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

Strong Q2 results above guidance with double digit Sales growth and Record Adjusted EPS

• Sales of $3.7B, up 17% on a reported basis and 11% organically Y/Y
• • Transportation up 15% organically Y/Y, with double-digit growth in all businesses
  • Industrial down 4% organically Y/Y, driven by weakness in Comm Air as expected
  • Communications up 29% organically Y/Y, with double-digit growth in both businesses
• Orders of $4.6B, up 36% Y/Y. Book to bill of 1.22
• Adjusted Operating Margins up 80bps Y/Y to 17%
• Record quarterly Adjusted EPS of $1.57, up 22% Y/Y driven by operational performance
• Q2 Free Cash Flow of $477M with ~$340M returned to shareholders
• • Year to date free cash flow of ~$1B, a record for the first half

Q3 Guidance reflecting significant Y/Y growth and similar performance to Q2

• Q3 sales and Adjusted EPS expected to be similar to Q2 levels
• • Sales of ~$3.7B compared to $2.5B in prior year
  • Adjusted EPS of ~$1.57 versus $0.59 in prior year

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	FY21	FY21	Q2 Growth
	Q2	Q1	Q2	Y/Y	Q/Q
Transportation	1,849	2,537	2,766	50%	9%
Industrial	1,051	956	1,126	7%	18%
Communications	467	556	678	45%	22%
Total TE	3,367	4,049	4,570	36%	13%
Book to Bill	1.05	1.15	1.22

• Transportation and Communications orders strength reflecting market growth in all regions and supply chain replenishment
• Industrial Y/Y growth driven by increases in Industrial Equipment, with stabilization in Commercial Aerospace and Medical

Orders Reflect Ongoing Economic Recovery and Supply Chain Replenishment

4

Transportation Solutions

$ in Millions

		Q2 Sales
Reported
Up 23%
						$2,287
Organic			$1,857
Up 15%
			Q2 2020				Q2 2021

Q2 Adjusted Operating Margin

Adjusted Operating					18.1%
17.3%
Margin expansion on
higher volumes
			Q2 2020				Q2 2021
Adjusted EBITDA Margin	23.6%	23.7%

Q2 Business Performance

Y/Y Growth Rates		Reported	Organic
Automotive	$1,630	19%	14%
Commercial	382	30%	25%
Transportation
Sensors	275	39%	13%
Transportation	$2,287	23%	15%
Solutions

• Automotive organic sales growth of 14% with growth in all regions, YTD content outperformance as expected
• Commercial Transportation organic growth driven by market growth and content gains due to stricter emissions standards
• Sensors organic growth in all markets; 39% reported growth includes the First Sensor acquisition

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