Attached files

file filename
EX-99.2 - EX-99.2 - TE Connectivity Ltd.tel-20210127xex99d2.htm
8-K - 8-K - TE Connectivity Ltd.tel-20210127x8k.htm

Exhibit 99.1

Graphic

Graphic

te.com

Graphic

TE Connectivity announces first quarter results for fiscal year 2021

Double-digit growth in sales and EPS year over year, exceeding company expectations

SCHAFFHAUSEN, Switzerland – Jan. 27, 2021 – TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal first quarter ended Dec. 25, 2020.

First Quarter Highlights

Net sales were $3.5 billion, up 11% on a reported basis, and 6% on an organic basis year over year.
Orders of approximately $4 billion, up 25% year over year.
GAAP earnings per share (EPS) from continuing operations were $1.13, and adjusted EPS were $1.47, up 21% year over year.
Cash flow from continuing operating activities was $640 million and free cash flow was $529 million, with $286 million returned to shareholders.

“Our strong first quarter performance reflects our global team’s ability to adapt to ongoing dynamic market conditions to deliver double-digit sales and EPS growth that exceeded our expectations,” said TE Connectivity CEO Terrence Curtin. “These results demonstrate the strength and resilience of our portfolio, our employees’ commitment to our customers and the benefit of our leadership position in long-term global growth trends. In particular, our Transportation segment continued to outperform the market due to content growth driven by electric vehicles, along with data connectivity and autonomy trends. Our Communications segment also exhibited strength due to demand in high-speed cloud applications and growth in the appliances market. As we are seeing continued signs of improvement in the majority of our end markets, we expect to deliver continued sales and earnings growth in the second quarter.”

Second Quarter FY21 Outlook

For the second quarter of fiscal 2021, the company expects net sales of approximately $3.5 billion, reflecting an approximate 10% increase on a reported basis and an increase of mid-single digits on an organic basis year over year. GAAP EPS from continuing operations are expected to be approximately $1.38 with adjusted EPS of approximately $1.47, up 14% year over year.

Graphic


Graphic

Information about TE Connectivity's use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

Conference Call and Webcast

The company will hold a conference call today beginning at 8:30 a.m. ET. The dial-in information is provided here:

At TE Connectivity's website: investors.te.com
By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (866) 211-4092, and for international callers, the dial-in number is (647) 689-6620.
A replay of the conference call will be available on TE Connectivity’s investor website at investors.te.com at 11:30 a.m. ET on Jan. 27, 2021.

About TE Connectivity

TE Connectivity Ltd. (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions, proven in the harshest environments, enable advancements in transportation, industrial applications, medical technology, energy, data communications, and the home. With approximately 80,000 employees, including more than 7,500 engineers, working alongside customers in approximately 140 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Twitter.

Non-GAAP Financial Measures

We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or

Graphic


Graphic

decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.

Adjusted Operating Income (Loss) and Adjusted Operating Margin – represent operating income (loss) and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income (loss) and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income (Loss) is a significant component in our incentive compensation plans.

Adjusted Other Income (Expense), Net – represents net other income (expense) (the most comparable GAAP financial measure) before special items including tax sharing income related to adjustments to prior period tax returns and other items, if any.

Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any.

Adjusted Income (Loss) from Continuing Operations – represents income (loss) from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.

Adjusted Earnings (Loss) Per Share – represents diluted earnings (loss) per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.

Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by continuing operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free

Graphic


Graphic

Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by continuing operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including net payments related to pre-separation tax matters and cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.

Forward-Looking Statements

This release 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 release 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

Graphic


Graphic

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.

# # #

Contacts:

Media Relations:

Investor Relations:

Fernando Vivanco

Sujal Shah

TE Connectivity

TE Connectivity

610-893-9756

610-893-9790

Fernando.Vivanco@te.com

Sujal.Shah@te.com

Graphic


TE CONNECTIVITY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

December 25,

December 27,

2020

  

2019

(in millions, except per share data)

Net sales

$

3,522

$

3,168

Cost of sales

2,376

2,138

Gross margin

1,146

1,030

Selling, general, and administrative expenses

361

367

Research, development, and engineering expenses

162

161

Acquisition and integration costs

8

7

Restructuring and other charges, net

167

24

Operating income

448

471

Interest income

3

6

Interest expense

(15)

(12)

Other income (expense), net

(1)

5

Income from continuing operations before income taxes

435

470

Income tax expense

(60)

(447)

Income from continuing operations

375

23

Income from discontinued operations, net of income taxes

6

3

Net income

$

381

$

26

Basic earnings per share:

Income from continuing operations

$

1.13

$

0.07

Income from discontinued operations

0.02

0.01

Net income

1.15

0.08

Diluted earnings per share:

Income from continuing operations

$

1.13

$

0.07

Income from discontinued operations

0.02

0.01

Net income

1.14

0.08

Weighted-average number of shares outstanding:

Basic

331

335

Diluted

333

337


TE CONNECTIVITY LTD.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

December 25,

September 25,

2020

2020

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

$

1,098

$

945

Accounts receivable, net of allowance for doubtful accounts of $33 and $29, respectively

2,640

2,377

Inventories

2,066

1,950

Prepaid expenses and other current assets

677

512

Total current assets

6,481

5,784

Property, plant, and equipment, net

3,768

3,650

Goodwill

5,387

5,224

Intangible assets, net

1,613

1,593

Deferred income taxes

2,198

2,178

Other assets

819

813

Total assets

$

20,266

$

19,242

Liabilities, redeemable noncontrolling interests, and shareholders' equity

Current liabilities:

Short-term debt

$

685

$

694

Accounts payable

1,629

1,276

Accrued and other current liabilities

1,769

1,720

Total current liabilities

4,083

3,690

Long-term debt

3,516

3,452

Long-term pension and postretirement liabilities

1,329

1,336

Deferred income taxes

144

143

Income taxes

266

252

Other liabilities

949

874

Total liabilities

10,287

9,747

Commitments and contingencies

Redeemable noncontrolling interests

118

112

Shareholders' equity:

Common shares, CHF 0.57 par value, 338,953,381 shares authorized and issued, respectively

149

149

Accumulated earnings

10,672

10,348

Treasury shares, at cost, 7,836,597 and 8,295,878 shares, respectively

(655)

(669)

Accumulated other comprehensive loss

(305)

(445)

Total shareholders' equity

9,861

9,383

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

$

20,266

$

19,242


TE CONNECTIVITY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

December 25,

December 27,

2020

2019

(in millions)

Cash flows from operating activities:

Net income

$

381

$

26

Income from discontinued operations, net of income taxes

(6)

(3)

Income from continuing operations

375

23

Adjustments to reconcile income from continuing operations to net cash provided by operating activities:

Depreciation and amortization

187

174

Deferred income taxes

(42)

394

Non-cash lease cost

30

27

Provision for losses on accounts receivable and inventories

6

20

Share-based compensation expense

19

22

Other

21

10

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:

Accounts receivable, net

(299)

(24)

Inventories

(145)

(176)

Prepaid expenses and other current assets

(87)

(23)

Accounts payable

349

94

Accrued and other current liabilities

88

(185)

Income taxes

17

10

Other

121

45

Net cash provided by operating activities

640

411

Cash flows from investing activities:

Capital expenditures

(142)

(176)

Proceeds from sale of property, plant, and equipment

1

2

Acquisition of businesses, net of cash acquired

(107)

(115)

Other

2

Net cash used in investing activities

(246)

(289)

Cash flows from financing activities:

Net decrease in commercial paper

(9)

Repayment of debt

(30)

Proceeds from exercise of share options

75

14

Repurchase of common shares

(119)

(139)

Payment of common share dividends to shareholders

(159)

(154)

Other

(19)

(26)

Net cash used in financing activities

(252)

(314)

Effect of currency translation on cash

11

7

Net increase (decrease) in cash, cash equivalents, and restricted cash

153

(185)

Cash, cash equivalents, and restricted cash at beginning of period

945

927

Cash, cash equivalents, and restricted cash at end of period

$

1,098

$

742

Supplemental cash flow information:

Interest paid on debt, net

$

4

$

4

Income taxes paid, net of refunds

85

43


TE CONNECTIVITY LTD.

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

December 25,

December 27,

2020

2019

(in millions)

Net cash provided by continuing operating activities

$

640

$

411

Excluding:

Cash paid pursuant to collateral requirements related to cross-currency swap contracts

30

6

Capital expenditures, net

(141)

(174)

Free cash flow (1)

$

529

$

243

(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.


TE CONNECTIVITY LTD.

CONSOLIDATED SEGMENT DATA (UNAUDITED)

For the Quarters Ended

December 25,

December 27,

2020

2019

($ in millions)

Net Sales

  

Net Sales

  

Transportation Solutions

$

2,224

$

1,868

Industrial Solutions

873

927

Communications Solutions

425

373

Total

$

3,522

$

3,168

Operating

Operating

Operating

Operating

Income

Margin

Income

Margin

Transportation Solutions

$

308

13.8

%

$

316

16.9

%

Industrial Solutions

76

8.7

115

12.4

Communications Solutions

64

15.1

40

10.7

Total

$

448

12.7

%

$

471

14.9

%

Adjusted

Adjusted

Adjusted

Adjusted

Operating

Operating

Operating

Operating

Income (1)

Margin (1)

Income (1)

Margin (1)

Transportation Solutions

$

431

19.4

%

$

325

17.4

%

Industrial Solutions

118

13.5

132

14.2

Communications Solutions

75

17.6

45

12.1

Total

$

624

17.7

%

$

502

15.8

%

(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.


TE CONNECTIVITY LTD.

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)

Change in Net Sales for the Quarter Ended December 25, 2020

versus Net Sales for the Quarter Ended December 27, 2019

Net Sales

Organic Net Sales

Growth (Decline)

Growth (Decline) (1)

Translation (2)

Acquisitions

($ in millions)

Transportation Solutions (3):

  

  

Automotive

$

224

15.9

%

$

161

11.3

%

$

63

$

Commercial transportation

73

28.3

65

24.9

8

Sensors

59

28.8

7

3.2

5

47

Total

356

19.1

233

12.3

76

47

Industrial Solutions (3):

Aerospace, defense, oil, and gas

(59)

(19.1)

(68)

(22.0)

6

3

Industrial equipment

32

12.2

21

7.7

11

Medical

(23)

(12.8)

(24)

(13.4)

1

Energy

(4)

(2.3)

(7)

(3.7)

3

Total

(54)

(5.8)

(78)

(8.4)

21

3

Communications Solutions (3):

Data and devices

15

6.8

10

4.7

5

Appliances

37

24.0

33

21.1

4

Total

52

13.9

43

11.5

9

Total

$

354

11.2

%

$

198

6.2

%

$

106

$

50

(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

(3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary.


TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended December 25, 2020

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

308

$

5

$

118

$

$

431

Industrial Solutions

76

4

38

118

Communications Solutions

64

11

75

Total

$

448

$

9

$

167

$

$

624

Operating margin

12.7

%

17.7

%

Other expense, net

$

(1)

$

$

$

$

(1)

Income tax expense

$

(60)

$

(2)

$

(32)

$

(29)

$

(123)

Effective tax rate

13.8

%

20.1

%

Income from continuing operations

$

375

$

7

$

135

$

(29)

$

488

Diluted earnings per share from continuing operations

$

1.13

$

0.02

$

0.41

$

(0.09)

$

1.47

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Income tax benefits related to an Internal Revenue Service approved change in the tax method of depreciating or amortizing certain assets.

(3) See description of non-GAAP financial measures.


TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended December 27, 2019

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

316

$

5

$

4

$

$

325

Industrial Solutions

115

2

15

132

Communications Solutions

40

5

45

Total

$

471

$

7

$

24

$

$

502

Operating margin

14.9

%

15.8

%

Other income, net

$

5

$

$

$

$

5

Income tax expense

$

(447)

$

(1)

$

$

355

$

(93)

Effective tax rate

95.1

%

18.6

%

Income from continuing operations

$

23

$

6

$

24

$

355

$

408

Diluted earnings per share from continuing operations

$

0.07

$

0.02

$

0.07

$

1.05

$

1.21

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Income tax expense related to the tax impacts of certain measures of Swiss tax reform.

(3) See description of non-GAAP financial measures.


TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 27, 2020

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Impairment

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

of Goodwill (1)

Tax Items (2)

(Non-GAAP) (4)

($ in millions, except per share data)

Operating income (loss):

Transportation Solutions

$

(606)

$

10

$

18

$

900

$

$

322

Industrial Solutions

142

2

1

145

Communications Solutions

49

3

52

Total

$

(415)

$

12

$

22

$

900

$

$

519

Operating margin

(13.0)

%

16.2

%

Other income, net

$

11

$

$

$

$

(8)

$

3

Income tax expense

$

(42)

$

(2)

$

(4)

$

(4)

$

(31)

$

(83)

Effective tax rate

(10.2)

%

16.1

%

Income (loss) from continuing operations

$

(452)

$

10

$

18

$

896

$

(39)

$

433

Diluted earnings (loss) per share from continuing operations (3)

$

(1.35)

$

0.03

$

0.05

$

2.67

$

(0.12)

$

1.29

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Includes an income tax benefit related to pre-separation tax matters and the termination of the tax sharing agreement with Tyco International and Covidien, as well as the related impact to net other income.

(3) U.S. GAAP diluted shares excludes one million of nonvested share awards and options outstanding as the inclusion of these securities would have been antidilutive because of our loss during the period. Such amounts are included in adjusted (non-GAAP) diluted shares.

(4) See description of non-GAAP financial measures.


TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 25, 2020

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Impairment

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

of Goodwill (1)

Tax Items (2)

(Non-GAAP) (4)

($ in millions, except per share data)

Operating income (loss):

Transportation Solutions

$

(93)

$

32

$

113

$

900

$

$

952

Industrial Solutions

412

8

102

522

Communications Solutions

218

42

260

Total

$

537

$

40

$

257

$

900

$

$

1,734

Operating margin

4.4

%

14.2

%

Other income, net

$

20

$

$

$

$

(8)

$

12

Income tax expense

$

(783)

$

(8)

$

(46)

$

(4)

$

550

$

(291)

Effective tax rate

149.4

%

17.0

%

Income (loss) from continuing operations

$

(259)

$

32

$

211

$

896

$

542

$

1,422

Diluted earnings (loss) per share from continuing operations (3)

$

(0.78)

$

0.10

$

0.63

$

2.68

$

1.62

$

4.26

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Includes $355 million of income tax expense related to the tax impacts of certain measures of Swiss tax reform and $226 million of income tax expense related to increases to the valuation allowance for certain deferred tax assets, partially offset by a $31 million income tax benefit related to pre-separation tax matters and the termination of the tax sharing agreement with Tyco International and Covidien.

(3) U.S. GAAP diluted shares excludes two million of nonvested share awards and options outstanding as the inclusion of these securities would have been antidilutive because of our loss during the period. Such amounts are included in adjusted (non-GAAP) diluted shares.

(4) See description of non-GAAP financial measures.


TE CONNECTIVITY LTD.

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of January 27, 2021

(UNAUDITED)

Outlook for

Quarter Ending

March 26,

2021

Diluted earnings per share from continuing operations

$

1.38

Restructuring and other charges, net

0.07

Acquisition-related charges

0.02

Adjusted diluted earnings per share from continuing operations (1)

$

1.47

(1) See description of non-GAAP financial measures.