TE Connectivity : Q3 2022 TE Connectivity Ltd. Earnings Conference Call

TE Connectivity

Third Quarter

2022 Earnings

July 27, 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, including continuing military conflict between Russia and Ukraine resulting from Russia's invasion of Ukraine or escalating tensions in surrounding countries; 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

Record Sales & Adjusted EPS driven by strong operational performance

• Sales of $4.1B, up 7% reported & 11% organically Y/Y, with organic growth across all businesses
• • Transportation up 8% organically Y/Y, driven by Auto & Commercial Transportation
  • Industrial up 13% organically Y/Y, driven by Industrial Equipment & Energy
  • Communications up 16% organically Y/Y, driven by Data & Devices
• Orders of $4.2B, reflecting continued strong customer demand; book to bill of 1.02
• Adjusted Operating Margins of 18.6%, expansion in the Industrial & Communications Segments
• Adjusted EPS of $1.86, up 4% Y/Y
• YTD Free Cash Flow of ~$1B; ~$1.6B returned to shareholders YTD
• Connecting Our World report published - drove a reduction of 30% in absolute GHG emissions in FY21

Q4 Guidance reflects strong Y/Y Sales growth

• Expect Q4 Sales of ~$4.2B and Adjusted EPS of ~$1.85
• • Sales up 10% reported and 15% organically Y/Y with Adjusted EPS up 9% Y/Y
  • Includes Y/Y FX headwinds of ~$275M to Sales and ~$0.11 to Adjusted EPS
• Fiscal 2022 Sales of ~$16.1B and Adjusted EPS of ~$7.29
• • Sales up 8% reported and 11% organically Y/Y, with Adjusted EPS up 12% Y/Y
  • Y/Y FX headwinds of ~$700M to Sales and ~$0.17 to Adjusted EPS
• Guidance includes an extra week in Q4, representing Sales of ~$250M & Adjusted EPS of ~$0.10

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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	FY22	FY22	Q3 Growth
	Q3	Q2	Q3	Y/Y	Q/Q
Transportation	2,562	2,549	2,303	(10)%	(10)%
Industrial	1,218	1,309	1,320	9%	1%
Communications	755	664	575	(24)%	(13)%
Total TE	4,535	4,522	4,197	(7)%	(7)%
Book to Bill	1.18	1.13	1.02

• Orders reflect strong customer demand and supply chain volatility
• Backlog up ~20% versus Q3 FY21
• Transportation book to bill of 1.0, reflecting more normalized order patterns and increased backlog position
• Industrial Y/Y orders growth across all businesses with a book to bill of 1.16
• Communications orders reflecting a double-digit Y/Y increase in backlog

Orders Reflecting Continued Strong Customer Demand

Along with Backlog Growth Across All Segments

4

Transportation Solutions

$ in Millions

Q3 Sales

Reported

Up 2%

Q3 Business Performance

Y/Y Growth Rates		Reported	Organic
Automotive	$1,629	2%	9%

Organic

$2,265$2,300

Commercial	400	5%	10%
Transportation

Up 8%

Q3 2021

Q3 2022

Q3 Adjusted Operating Margin

Margin performance
impacted by	19.4%
inflationary pressures				17.3%
and timing of pricing
actions
			Q3 2021				Q3 2022
Adjusted EBITDA Margin	25.9%	23.2%

Sensors	271	(4)%	2%
Transportation	$2,300	2%	8%
Solutions

• Automotive organic growth across all regions. Continue to benefit from content outperformance through our global leadership position in electric vehicles
• Commercial Transportation growth driven by North America and Europe, with significant market outperformance in each region
• Sensors organic growth driven by factory automation 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