Q3 2016 Earnings July 20, 2016 Forward-Looking Statements and - PowerPoint PPT Presentation

Q3 2016 Earnings July 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. 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 Creganna Medical's operations will not be successfully integrated into ours; and the risk that revenue opportunities, cost savings and other anticipated synergies from the Creganna Medical acquisition may not be fully realized or may take longer to realize than expected. 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, 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

Earnings Highlights • Record Q3 Adjusted EPS of $1.08, up 20% Y/Y and above the high end of guidance • Sequential increases in revenue of 6% and orders of 7% driven by our harsh environment businesses • Expected Q4 revenue of $3.35B at the mid-point with Adjusted EPS of $1.20 including an extra week • Reiterating full year Adjusted EPS guidance of $4.00, up 11% Y/Y, on slightly reduced revenue of $12.25B at mid point • Generated $589M in free cash flow in Q3 and returned $231M to shareholders • $1B of free cash flow generated year to date • Continued execution of our harsh strategy • Expanding our portfolio with the announced acquisition of Intercontec and closure of Jaquet acquisition • Creganna medical acquisition performing ahead of expectations • Continued momentum in our SubCom business • Over $1B of programs in force with the announcement of the Marea trans-atlantic program 3 Adjusted EPS and Free Cash Flow are non-GAAP measures; see Appendix for description and reconciliation.

Segment Orders Summary ($ in millions) FY15 FY16 FY16 Q3 Q2 Q3 • Transportation orders remain solid Transportation 1,643 1,550 1,659 • Industrial orders continue to grow sequentially with growth Industrial 820 764 879 in OEM and distribution orders as well as the addition of Creganna Communications 469 425 399 Ex SubCom • Communications orders grew sequentially excluding impact Total TE from Circuit Protection 2,932 2,739 2,937 Ex SubCom divestiture Book to Bill 1.01 1.00 1.01 Ex SubCom 4

Transportation Solutions $ in Millions Sales Business Performance Actual Y/Y Growth Rates Actual Organic Up 2% Automotive $1,245 2% 3% $1,652 $1,621 Commercial Organic $217 3% 3% Transportation Up 2% Q3 2015 Q3 2016 Sensors $190 (2)% (2)% Transportation Actual Organic $1,652 2% 2% Solutions Orders $1,659 1% 2% • Automotive organic sales growth driven by China and Adjusted Operating Margin EMEA • Commercial Transportation organic growth driven by Operating margins China and EMEA heavy truck markets, offset by expand 40bps weakness in North America sequentially and in 19.6% 19.4% line with • Sensors decline Y/Y driven by industrial related expectations markets; Strong design win momentum continues Q3 2015 Q3 2016 5 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 Y/Y Growth Rates Actual Organic Actual Up 5% Industrial Equipment $395 14% (7)% $849 Aerospace & Defense 246 5% 4% $806 Organic Oil and Gas 30 (31)% (31)% Down 4% Energy 178 (2)% -% Q3 2015 Q3 2016 Industrial Solutions $849 5% (4)% Actual Organic Orders $879 7% (2)% • Industrial Equipment actual growth driven by Creganna Adjusted Operating Margin • Industrial Equipment organic growth of 4% sequentially; Y/Y declines driven by soft NA and China markets • Delivered growth in both the Commercial Aerospace and Operating margins Defense businesses expand 180bps • 13.5% sequentially in line Oil and Gas related markets remain weak 13.2% with expectations • Energy growth in NA and Europe offsetting declines in Asia • Operating Margin significantly impacted Y/Y due to Oil and Gas Q3 2015 Q3 2016 weakness 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 10% SubCom $223 10% 10% $691 $620 Appliances $162 1% 2% Organic Data & Devices $235 (28)% (17)% Down 4% Q3 2015 Q3 2016 Communications $620 (10)% (4)% Solutions Actual Organic Orders ex SubCom $399 (15)% (6)% • SubCom growth driven by execution of multiple programs in force Adjusted Operating Margin • Appliances grew in Asia and North America; Delivered another quarter of sequential growth Operating margins up • Data & Devices deliver sequential growth in Q3; Y/Y and expand Y/Y decline due to Circuit Protection divestiture and 270bps sequentially 11.1% product exits 10.3% • Adjusted Operating Margin Y/Y growth driven by cost management and low margin product exits Q3 2015 Q3 2016 7 Organic Sales Growth, Adjusted Operating Income and Adjusted Operating Margin are non-GAAP measures; see Appendix for description and reconciliation.

Q3 Financial Summary Q3 FY15 Q3 FY16 ($ in Millions, except per share amounts) Net Sales $ 3,118 $ 3,121 Operating Income $ 469 $ 452 Acquisition Related Charges 10 18 Restructuring & Other Charges, net 18 31 Adjusted Operating Income $ 497 $ 501 Operating Margin 15.0% 14.5% Adjusted Operating Margin 15.9% 16.1% GAAP Earnings Per Share* $ 0.85 $ 2.19 Acquisition Related Charges 0.01 0.04 Restructuring & Other Charges, net 0.04 0.06 Tax Items (0.01) (1.21) Adjusted EPS $ 0.90 $ 1.08 Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non-GAAP measures; see Appendix for description and reconciliation. *Represents Diluted Earnings Per Share from Continuing Operations 8

Operating Metrics $ in Millions Adjusted Gross Margin Percentage Free Cash Flow 33.6% $589 33.0% $391 Q3 2015 Q3 2016 Q3 2015 Q3 2016 Adjusted Operating Margin Adjusted EBITDA Margin 16.1% 20.7% 20.7% 15.9% Q3 2015 Q3 2016 Q3 2015 Q3 2016 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.