EX-99.2 3 tel-20220727xex99d2.htm EX-99.2
Exhibit 99.2

| EVERY CONNECTION COUNTS TE Connectivity Third Quarter 2022 Earnings July 27, 2022

| Forward - Looking Statements and Non - GAAP Financial Measures 2 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 ant ici pated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature a re 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 ob ligation to do so) our forward - looking statements whether as a result of new information, future events or otherwise, except to the extent requ ired by law. The forward - looking statements in this presentation include statements addressing our future financial condition and operating r esults, and the impact on our operations resulting from the coronavirus disease 2019 (“COVID - 19”). Examples of factors that could cause actu al results to differ materially from those described in the forward - looking statements include, among others, the extent, severity and dura tion of COVID - 19 negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions aff ect ing demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign curre ncy exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we opera te, including continuing military conflict between Russia and Ukraine resulting from Russia’s invasion of Ukraine or escalating tensions in su rrounding countries; developments in the credit markets; future goodwill impairment; compliance with current and future environmental a nd other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation, including the eff ect s of Swiss tax reform. In addition, the extent to which COVID - 19 will impact our business and our financial results will depend on future devel opments, which are highly uncertain and cannot be predicted. Such developments may include the geographic spread of the virus, the sev eri ty 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 glo bal economy and local economies in which we operate. More detailed information about these and other factors is set forth in TE Connectivity Lt d.'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 o n 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.

| 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 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 3

| 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 Segment Orders Summary ($ in millions) 4 • 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

| Transportation Solutions $2,265 $2,300 Q3 2021 Q3 2022 • 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 Y/Y Growth Rates Reported Organic Automotive $1,629 2% 9% Commercial Transportation 400 5% 10% Sensors 271 (4)% 2% Transportation Solutions $2,300 2% 8% Q3 Sales Q3 Business Performance Q3 Adjusted Operating Margin $ in Millions Reported Up 2% Organic Up 8% Margin performance impacted by inflationary pressures and timing of pricing actions Adjusted EBITDA Margin 25.9% 23.2% 5 Organic Net Sales Growth (Decline), Adjusted Operating Margin and Adjusted EBITDA Margin are non - GAAP financial measures: see Ap pendix for descriptions and reconciliations 19.4% 17.3% Q3 2021 Q3 2022

| Industrial Solutions $1,002 $1,134 Q3 2021 Q3 2022 Y/Y Growth Rates Reported Organic Industrial Equipment $479 27% 19% Aerospace , Defense and Marine 271 4% 9% Energy 207 11% 17% Medical 177 (1)% 1% Industrial Solutions $1,134 13% 13% Margin expansion driven by higher volume and strong operational performance 15.8% 16.8% Q3 2021 Q3 2022 Adjusted EBITDA Margin 20.6% 20.9% • Industrial Equipment double - digit growth in all regions, with continued benefits from factory automation applications • AD&M organic growth driven by market improvement in Commercial Aerospace • Energy organic growth driven by renewable applications • Medical organic growth with increase in interventional procedures $ in Millions Q3 Sales Q3 Business Performance Q3 Adjusted Operating Margin Reported Up 13% Organic Up 13% 6 Organic Net Sales Growth (Decline), Adjusted Operating Margin and Adjusted EBITDA Margin are non - GAAP financial measures: see Ap pendix for descriptions and reconciliations

| $578 $663 Q3 2021 Q3 2022 Reported Up 15% Organic Up 16% Y/Y Growth Rates Reported Organic Data & Devices $417 27% 26% Appliances 246 (1)% 2% Communications Solutions $663 15% 16% • Dat a & Devices outperformance driven by content growth and share gains, including AI applications enabling improved data center energy efficiency • Appliances growth in North America and Europe partially offset by expected declines in China. C ontinue to generate market outperformance due to share gains 23.5% 26.2% Q3 2021 Q3 2022 Margin performance driven by continued strong operational execution and higher volumes Organic Net Sales Growth (Decline), Adjusted Operating Margin and Adjusted EBITDA Margin are non - GAAP financial measures: see Ap pendix for descriptions and reconciliations Communications Solutions Q3 Sales Q3 Adjusted Operating Margin Q3 Business Performance $ in Millions Adjusted EBITDA Margin 26.3% 29.4% 7

| Q3 Financial Summary ($ in Millions, except per share amounts) Q3 FY21 Q3 FY22 Net Sales $ 3,845 $ 4,097 Operating Income $ 714 $ 719 Operating Margin 18.6% 17.5% Acquisition - Related Charges 9 12 Restructuring & Other Charges, Net 11 30 Adjusted Operating Income $ 734 $ 761 Adjusted Operating Margin 19.1% 18.6% Earnings Per Share* $ 1.74 $ 1.83 Acquisition - Related Charges 0.02 0.03 Restructuring & Other Charges, Net 0.02 0.07 Tax Items - (0.06) Adjusted EPS $ 1.79 $ 1.86 * Represents Diluted Earnings Per Share from Continuing Operations. . Adjusted Operating Income, Adjusted Operating Margin and Adjusted EPS are non - GAAP financial measures; see Appendix for descript ions and reconciliations. 8

| Q3 Financial Performance $3,845 $4,007 $4,097 Q3 2021 Q2 2022 Q3 2022 $1.79 $1.81 $1.86 Q3 2021 Q2 2022 Q3 2022 Adjusted EBITDA Margin 24.6% 23.2% 23.6% 19.1% 18.4% 18.6% Q3 2021 Q2 2022 Q3 2022 Adjusted Operating Margin, Adjusted EPS, Adjusted EBITDA Margin and Free Cash Flow are non - GAAP financial measures: see Appendix for descriptions and reconciliations. Sales Adjusted Operating Margin Free Cash Flow Adjusted EPS Results Reflect Strong Execution and Diversity of Our Portfolio 9 $1,545 $1,038 YTD 2021 YTD 2022 $ in Millions $ in Millions FCF reflecting planned inventory build ~$1.6B returned to shareholders YTD

| EVERY CONNECTION COUNTS Additional Information

| Y/Y Q3 2022 Adjusted EPS is a non - GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q3 2021 Results $3,845 $1.79 Operational Performance 488 0.17 FX Impact (236) (0.07) Tax Rate Impact - (0.03) Q3 2022 Results $4,097 $1.86 11

| Y/Y Q4 2022 Adjusted EPS is a non - GAAP financial measure; See Appendix for description and reconciliation. Sales (in millions) Adjusted EPS Q4 2021 Results $3,818 $1.69 Operational Performance 657 0.27 FX Impact (275) (0.11) Tax Rate Impact - 0.00 Q4 2022 Guidance (14 weeks)* $4,200 $1.85 12 *Q4 includes an extra week which contributes ~$250M to Sales and ~$0.10 to Adjusted EPS

| ($ in Millions) Q3 2021 Q3 2022 Beginning Cash Balance $1,748 $749 Free Cash Flow 539 423 Dividends (165) (180) Share repurchases (259) (378) Net increase (decrease) in debt (426) 237 Acquisition of businesses, net of cash acquired (19) (14) Other (2) (17) Ending Cash Balance $1,416 $820 Total Debt $4,134 $4,202 A/R $2,985 $3,132 Days Sales Outstanding* 70 69 Inventory $2,392 $3,028 Days on Hand* 81 96 Accounts Payable $1,938 $1,917 Days Outstanding* 68 62 Free Cash Flow and Working Capital Liquidity, Cash & Debt ($ in Millions) Q3 2021 Q3 2022 Cash from Operating Activities $682 $579 Capital expenditures, net Cash paid pursuant to collateral requirements related to cross - currency swap contracts (143) - (170) 14 Free Cash Flow $539 $423 Free Cash Flow is a non - GAAP financial measure, see Appendix for description and reconciliation * Adjusted to exclude the impact of acquisitions Q3 Balance Sheet & Cash Flow Summary 13

| EVERY CONNECTION COUNTS Appendix

| 15 Non - GAAP Financial Measures We present non - GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financ ial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non - GAAP financial measures provide supplem ental 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 be lie ve 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 th at 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 incr eas e or 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) excludin g the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Gro wth (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 fo rei gn 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 sig nif icant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the mo st comparable GAAP financial measures) before special items including restructuring and other charges, acquisition - related charges, impairment of goodwill, a nd other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating p erf ormance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant c omp onent 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 cha rge s, acquisition - related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial me asure) 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 Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financi al measure) before special items including restructuring and other charges, acquisition - related charges, impairment of goodwill, tax sharing income related to ad justments 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. T his measure is a significant component in our incentive compensation plans.

| 16 • Adjusted EBITDA and Adjusted EBITDA Margin - represent net income and net income as a percentage of net sales, respectively, (th e most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net other i nco me (expense), income (loss) from discontinued operations, and special items including restructuring and other charges, acquisition - related charges, impairment of goodwill, and other income or charges, if any. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operatin g 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 ide ntify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and ev alu ate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by 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 act ivi ty is driven by economic financing decisions rather than operating activity. Certain special items, including net payments related to pre - separation tax matters an d 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 lo ng - 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’ discret ion 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 tha t t he 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 acqu isi tions, that are not considered in the calculation of Free Cash Flow. • Free Cash Flow Conversion – represents the ratio of Free Cash Flow to Adjusted Income from Continuing Operations. We use Free Ca sh Flow Conversion as an indicator of our ability to convert earnings to cash. Non - GAAP Financial Measures (cont.)

| Segment Summary 17 Transportation Solutions $ 2,300 $ 2,265 $ 6,772 $ 6,776 Industrial Solutions 1,134 1,002 3,268 2,827 Communications Solutions 663 578 1,882 1,502 Total $ 4,097 $ 3,845 $ 11,922 $ 11,105 Transportation Solutions $ 383 16.7 % $ 433 19.1 % $ 1,187 17.5 % $ 1,139 16.8 % Industrial Solutions 169 14.9 148 14.8 440 13.5 335 11.9 Communications Solutions 167 25.2 133 23.0 469 24.9 300 20.0 Total $ 719 17.5 % $ 714 18.6 % $ 2,096 17.6 % $ 1,774 16.0 % Transportation Solutions $ 397 17.3 % $ 440 19.4 % $ 1,211 17.9 % $ 1,284 18.9 % Industrial Solutions 190 16.8 158 15.8 511 15.6 395 14.0 Communications Solutions 174 26.2 136 23.5 487 25.9 316 21.0 Total $ 761 18.6 % $ 734 19.1 % $ 2,209 18.5 % $ 1,995 18.0 % Operating Margin Operating Margin Operating Margin Adjusted Operating Margin (1) Adjusted Income (1) (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. 2022 2021 ($ in millions) Operating Margin (1) Adjusted Operating Margin (1) Adjusted Operating Income (1) Adjusted Operating Adjusted Operating Net Sales Net Sales Net Sales Income (1) Adjusted Operating Income (1) Income Operating Operating Income Operating Income Adjusted Operating Margin (1) Net Sales Operating Income Operating Margin For the Quarters Ended June 24, June 25, June 24, June 25, 2022 For the Nine Months Ended 2021

| Reconciliation of Net Sales Growth 18 Transportation Solutions (3) : Automotive $ 29 1.8 % $ 148 9.1 % $ (119) $ — Commercial transportation 18 4.7 38 9.8 (20) — Sensors (12) (4.2) 6 1.5 (18) — Total 35 1.5 192 8.3 (157) — Industrial Solutions (3) : Industrial equipment 102 27.1 71 19.1 (30) 61 Aerospace, defense, oil, and gas 11 4.2 22 8.7 (10) (1) Energy 20 10.7 31 16.7 (11) — Medical (1) (0.6) 1 0.6 (2) — Total 132 13.2 125 12.7 (53) 60 Communications Solutions (3) : Data and devices 88 26.7 86 26.2 (11) 13 Appliances (3) (1.2) 6 2.2 (9) — Total 85 14.7 92 15.9 (20) 13 Total $ 252 6.6 % $ 409 10.6 % $ (230) $ 73 Transportation Solutions (3) : Automotive $ (57) (1.2) % $ 137 2.7 % $ (194) $ — Commercial transportation 64 5.8 95 8.6 (31) — Sensors (11) (1.3) 19 2.2 (30) — Total (4) (0.1) 251 3.7 (255) — Industrial Solutions (3) : Industrial equipment 402 39.8 283 27.9 (55) 174 Aerospace, defense, oil, and gas (3) (0.4) 16 2.0 (18) (1) Energy 35 6.4 69 12.7 (23) (11) Medical 7 1.4 12 2.2 (5) — Total 441 15.6 380 13.5 (101) 162 Communications Solutions (3) : Data and devices 310 36.9 295 35.0 (16) 31 Appliances 70 10.6 83 12.4 (13) — Total 380 25.3 378 25.1 (29) 31 Total $ 817 7.4 % $ 1,009 9.0 % $ (385) $ 193 ($ in millions) Translation (2) Acquisitions/ (Divestiture) Growth (Decline) Growth (1) Translation (2) (Divestitures) Change in Net Sales for the Nine Months Ended June 24, 2022 versus Net Sales for the Nine Months Ended June 25, 2021 (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. ($ in millions) Net Sales Growth (Decline) Organic Net Sales Growth (1) Change in Net Sales for the Quarter Ended June 24, 2022 versus Net Sales for the Quarter Ended June 25, 2021 Net Sales Organic Net Sales Acquisitions/

| Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 24, 2022 19 Operating income: Transportation Solutions $ 383 $ 5 $ 9 $ — $ 397 Industrial Solutions 169 6 15 — 190 Communications Solutions 167 1 6 — 174 Total $ 719 $ 12 $ 30 $ — $ 761 Operating margin 17.5 % 18.6 % Other income, net $ 4 $ — $ — $ — $ 4 Income tax expense $ (116) $ (3) $ (6) $ (21) $ (146) Effective tax rate 16.4 % 19.5 % Income from continuing operations $ 592 $ 9 $ 24 $ (21) $ 604 Diluted earnings per share from continuing operations $ 1.83 $ 0.03 $ 0.07 $ (0.06) $ 1.86 and Other Adjusted Related Acquisition- Restructuring Adjustments (4) See description of non-GAAP financial measures. (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. U.S. GAAP Charges (1) (Non-GAAP) (4) Charges, Net (1)(2) Tax Items (3) ($ in millions, except per share data) (3) Includes a $21 million income tax benefit related to the tax impacts of an intercompany transaction. Our estimated annual effective tax rate for fiscal 2022 includes a total income tax benefit of approximately $75 million related to this transaction, with portions recognized in the quarters ended December 24, 2021, March 25, 2022, and June 24, 2022 and the remainder to be recognized in the quarter ending September 30, 2022. (2) Includes $26 million recorded in net restructuring and other charges and $4 million recorded in cost of sales.

| Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 25, 2021 20 Operating income: Transportation Solutions $ 433 $ 5 $ 2 $ 440 Industrial Solutions 148 4 6 158 Communications Solutions 133 — 3 136 Total $ 714 $ 9 $ 11 $ 734 Operating margin 18.6 % 19.1 % Other income, net $ 2 $ — $ — $ 2 Income tax expense $ (124) $ (2) $ (4) $ (130) Effective tax rate 17.6 % 17.9 % Income from continuing operations $ 581 $ 7 $ 7 $ 595 Diluted earnings per share from continuing operations $ 1.74 $ 0.02 $ 0.02 $ 1.79 (Non-GAAP) (2) ($ in millions, except per share data) and Other Charges, Net (1) (2) See description of non-GAAP financial measures. U.S. GAAP Acquisition- Related Charges (1) Adjustments (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. Restructuring Adjusted

| Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 25, 2021 21 Operating income: Transportation Solutions $ 409 $ 4 $ 9 $ — $ 422 Industrial Solutions 148 6 10 — 164 Communications Solutions 148 — 2 — 150 Total $ 705 $ 10 $ 21 $ — $ 736 Operating margin 17.6 % 18.4 % Other income, net $ 5 $ — $ — $ — $ 5 Income tax expense $ (136) $ (2) $ (5) $ 8 $ (135) Effective tax rate 19.5 % 18.6 % Income from continuing operations $ 560 $ 8 $ 16 $ 8 $ 592 Diluted earnings per share from continuing operations $ 1.71 $ 0.02 $ 0.05 $ 0.02 $ 1.81 Acquisition- Restructuring Adjustments ($ in millions, except per share data) (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 $27 million of income tax expense related to the write-down of certain deferred tax assets to the lower corporate tax rate enacted in the canton of Schaffhausen on December 27, 2021. Also includes a $19 million income tax benefit related to the tax impacts of an intercompany transaction. Our estimated annual effective tax rate for fiscal 2022 includes a total income tax benefit of approximately $75 million related to this transaction. (3) See description of non-GAAP financial measures. Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) Tax Items (2) (Non-GAAP) (3)

| Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 24, 2022 22 Operating income: Transportation Solutions $ 1,187 $ 12 $ 12 $ — $ 1,211 Industrial Solutions 440 24 47 — 511 Communications Solutions 469 2 16 — 487 Total $ 2,096 $ 38 $ 75 $ — $ 2,209 Operating margin 17.6 % 18.5 % Other income, net $ 24 $ — $ — $ (11) $ 13 Income tax expense $ (362) $ (8) $ (18) $ (18) $ (406) Effective tax rate 17.4 % 18.6 % Income from continuing operations $ 1,719 $ 30 $ 57 $ (29) $ 1,777 Diluted earnings per share from continuing operations $ 5.26 $ 0.09 $ 0.17 $ (0.09) $ 5.43 ($ in millions, except per share data) (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. (3) Includes a $57 million income tax benefit related to the tax impacts of an intercompany transaction. Our estimated annual effective tax rate for fiscal 2022 includes a total income tax benefit of approximately $75 million related to this transaction, with portions recognized in the quarters ended December 24, 2021, March 25, 2022, and June 24, 2022 and the remainder to be recognized in the quarter ending September 30, 2022. Also includes $27 million of income tax expense related to the write-down of certain deferred tax assets to the lower corporate tax rate enacted in the canton of Schaffhausen, and $12 million of income tax expense related to an income tax audit of an acquired entity, as well as the related impact of $11 million to other income pursuant to the indemnification terms of the purchase agreement. (4) See description of non-GAAP financial measures. Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1)(2) Tax Items (3) (Non-GAAP) (4) (2) Includes $59 million recorded in net restructuring and other charges and $16 million recorded in cost of sales. Adjustments Acquisition- Restructuring

| Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 25, 2021 23 Operating income: Transportation Solutions $ 1,139 $ 15 $ 130 $ — $ 1,284 Industrial Solutions 335 11 49 — 395 Communications Solutions 300 — 16 — 316 Total $ 1,774 $ 26 $ 195 $ — $ 1,995 Operating margin 16.0 % 18.0 % Other income, net $ 5 $ — $ — $ — $ 5 Income tax expense $ (290) $ (6) $ (38) $ (29) $ (363) Effective tax rate 16.6 % 18.4 % Income from continuing operations $ 1,461 $ 20 $ 157 $ (29) $ 1,609 Diluted earnings per share from continuing operations $ 4.39 $ 0.06 $ 0.47 $ (0.09) $ 4.83 (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. ($ in millions, except per share data) U.S. GAAP Charges (1) Charges, Net (1) Tax Items (2) (Non-GAAP) (3) Related and Other Adjusted Acquisition- Restructuring Adjustments

| Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 24, 2021 24 Operating income: Transportation Solutions $ 387 $ 3 $ 5 $ — $ — $ 395 Industrial Solutions 134 4 24 — — 162 Communications Solutions 139 1 9 — — 149 Total $ 660 $ 8 $ 38 $ — $ — $ 706 Operating margin 17.3 % 18.5 % Other income (expense), net $ (22) $ — $ — $ 28 $ — $ 6 Income tax (expense) benefit $ 167 $ (1) $ 3 $ (6) $ (304) $ (141) Effective tax rate (26.6) % 20.1 % Income from continuing operations $ 794 $ 7 $ 41 $ 22 $ (304) $ 560 Diluted earnings per share from continuing operations $ 2.40 $ 0.02 $ 0.12 $ 0.07 $ (0.92) $ 1.69 (3) Represents a $327 million income tax benefit for the net reduction in valuation allowances associated primarily with certain tax planning actions as well as improved current and expected future operating profit and taxable income, and $23 million of income tax expense associated with the tax impacts of an intercompany transaction. Other Items (1)(2) ($ in millions, except per share data) (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. (4) See description of non-GAAP financial measures. U.S. GAAP Charges (1) Charges, Net (1) Tax Items (3) (Non-GAAP) (4) (2) Charge related to the transfer of certain U.S. pension plan liabilities to an insurance company through the purchase of a group annuity contract. Related and Other Adjusted Adjustments Acquisition- Restructuring

| Reconciliation of Non - GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 24, 2021 25 Operating income: Transportation Solutions $ 1,526 $ 18 $ 135 $ — $ — $ 1,679 Industrial Solutions 469 15 73 — — 557 Communications Solutions 439 1 25 — — 465 Total $ 2,434 $ 34 $ 233 $ — $ — $ 2,701 Operating margin 16.3 % 18.1 % Other income (expense), net $ (17) $ — $ — $ 28 $ — $ 11 Income tax expense $ (123) $ (7) $ (35) $ (6) $ (333) $ (504) Effective tax rate 5.2 % 18.9 % Income from continuing operations $ 2,255 $ 27 $ 198 $ 22 $ (333) $ 2,169 Diluted earnings per share from continuing operations $ 6.77 $ 0.08 $ 0.59 $ 0.07 $ (1.00) $ 6.51 Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP Charges (1) Charges, Net (1) Tax Items (3) (Non-GAAP) (4) Other Items (1)(2) (4) See description of non-GAAP financial measures. ($ in millions, except per share data) (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. (3) Represents a $327 million income tax benefit for the net reduction in valuation allowances associated primarily with certain tax planning actions as well as improved current and expected future operating profit and taxable income, $29 million of income tax benefits related to an Internal Revenue Service approved change in the tax method of depreciating or amortizing certain assets, and $23 million of income tax expense associated with the tax impacts of an intercompany transaction. (2) Charge related to the transfer of certain U.S. pension plan liabilities to an insurance company through the purchase of a group annuity contract.

| Reconciliation of Free Cash Flow 26 Net cash provided by operating activities $ 579 $ 682 $ 1,524 $ 1,902 Net cash used in investing activities (185) (174) (568) (497) Net cash used in financing activities (318) (842) (1,330) (943) Effect of currency translation on cash (5) 2 (9) 9 Net increase (decrease) in cash, cash equivalents, and restricted cash $ 71 $ (332) $ (383) $ 471 Net cash provided by operating activities $ 579 $ 682 $ 1,524 $ 1,902 Excluding: Cash (collected) paid pursuant to collateral requirements related to cross-currency swap contracts 14 — (28) 12 Capital expenditures, net (170) (143) (458) (369) Free cash flow (1) $ 423 $ 539 $ 1,038 $ 1,545 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. 2022 2021 2022 2021 (in millions) For the Quarters Ended June 24, June 25, June 24, June 25, For the Nine Months Ended

| Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin 27 Net income $ 594 $ 560 $ 580 (Income) loss from discontinued operations (2) — 1 Income tax expense 116 136 124 Other income, net (4) (5) (2) Interest expense 18 18 14 Interest income (3) (4) (3) Operating income 719 705 714 Acquisition-related charges 12 10 9 Restructuring and other charges, net 30 21 11 Adjusted operating income (1) 761 736 734 Depreciation and amortization 205 194 210 Adjusted EBITDA (1) $ 966 $ 930 $ 944 Net sales $ 4,097 $ 4,007 $ 3,845 Net income as a percentage of net sales 14.5 % 14.0 % 15.1 % Adjusted EBITDA margin (1) 23.6 % 23.2 % 24.6 % Operating income $ 383 $ 169 $ 167 $ 719 $ 433 $ 148 $ 133 $ 714 Acquisition-related charges 5 6 1 12 5 4 — 9 Restructuring and other charges, net 9 15 6 30 2 6 3 11 Adjusted operating income (1) 397 190 174 761 440 158 136 734 Depreciation and amortization 137 47 21 205 146 48 16 210 Adjusted EBITDA (1) $ 534 $ 237 $ 195 $ 966 $ 586 $ 206 $ 152 $ 944 Net sales $ 2,300 $ 1,134 $ 663 $ 4,097 $ 2,265 $ 1,002 $ 578 $ 3,845 Operating margin 16.7 % 14.9 % 25.2 % 17.5 % 19.1 % 14.8 % 23.0 % 18.6 % Adjusted operating margin (1) 17.3 % 16.8 % 26.2 % 18.6 % 19.4 % 15.8 % 23.5 % 19.1 % Adjusted EBITDA margin (1) 23.2 % 20.9 % 29.4 % 23.6 % 25.9 % 20.6 % 26.3 % 24.6 % June 25, 2021 For the Quarters Ended ($ in millions) ($ in millions) Total Transportation Solutions Industrial Solutions Solutions Solutions Transportation Industrial Solutions (1) See description of non-GAAP financial measures. Communications Solutions Communications For the Quarters Ended June 24, 2022 June 25, 2021 June 24, 2022 March 25, 2022 Total

| Reconciliation of Forward - Looking Non - GAAP Financial Measures to Forward - Looking GAAP Financial Measures 28 Diluted earnings per share from continuing operations $ 1.79 $ 7.04 Restructuring and other charges, net 0.16 0.34 Acquisition-related charges 0.03 0.12 Tax items (0.13) (0.21) Adjusted diluted earnings per share from continuing operations (2) $ 1.85 $ 7.29 Net sales growth 10.0 % 8.0 % Translation 7.0 4.5 (Acquisitions) divestitures, net (2.3) (2.0) Organic net sales growth (2) 14.7 % 10.5 % Effective tax rate 13.5 % 16.5 % Effective tax rate adjustments (3) 6.5 2.5 Adjusted effective tax rate (2) 20.0 % 19.0 % Quarter Ending Outlook for (3) Includes adjustments for special tax items and the tax effect of acquisition-related charges and net restructuring and other charges, calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (1) Outlook is as of July 27, 2022. (2) See description of non-GAAP financial measures. 2022 (1) September 30, Outlook for Fiscal 2022 (1)