Organizing for Growth

Tom Lynch
Villanova Executive MBA Alumni Program
April 23, 2010
TE Overview
O i
 Is a World Leader Enabling Connectivity
Serving Large Attractive Markets
Consumer Industrial and Infrastructure

Transportation
p Consumer Communications Energy
gy Industrial Aerospace Medical
Products Equipment & Defense

With A Wealth of Technology Platforms

Connectors Fiber Optics Touch Systems Circuit Sealing & Wireless Precision
Protection Protection Wire & Cable
And Extensive Global Resources
150 Countries 97
7,000 Engineers 5,000 Salespeople Manufacturing Sites
Close to our Customers Advising our Customers Served Serving Every Region

~ $3B Revenue in Q1 FY 2010

Page 3
 Strategic Priorities: 2007 to 2009

Focus the Company

p y

• Reshape the portfolio  Original 2010

Financial Goals
• Streamline the footprint  • Organic Growth of 5 –
7%
• Reinvigorate innovation  • Revenue of $16 – 17B
• 15% Operating Margin
• Improve productivity 

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 Strategic Priorities: 2010 and Beyond
Accelerating Growth
• Leverage technology
Financial Goals
across the company
• 8 – 10% A
Annuall G
Growth
th
• Increase investment
• 12% Operating Margin at
in R&D $12B Revenue
• 15% Operating Margin at
• Reinvigorate the $14 – 15B Revenue
channel
• Strategic acquisitions

While Continuing To Strengthen Our Operating Performance

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 Market Leadership
Electronic Components
Automotive
$2.8B Sales | 4-6% Growth
• Automotive
• Commercial Vehicles
Motor Vehicle Connectivity
Communications &
Industrial Solutions
$3.2B Sales | 6-8% Growth
• Datacom Equipment
• Computers
• Consumer Devices
• Industrial Equipment
• Appliances
Connectivity In and To Devices

Network Solutions Undersea Specialty Products

$1.4B Sales | 8-10% Growth
$1.7B Sales | 6-8% Growth Telecommunications • Aerospace, Defense
• Energy Systems $1.2B Sales | Cyclical
& Marine
• Communication Service • Turnkey Fiber Optic Systems • Touch Systems
Providers • Oil & Gas Systems
y • Medical Equipment
• Enterprise Networks • Circuit Protection
Network Connectivity Beyond Traditional Connectivity
Sales are FY09 Actual, Growth rates are long-term organic growth rates; see Appendix for description of organic sales growth

Significant Growth Opportunities

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Strong Global Presence

FY09 Sales
• N.A. $3.5B
• S.A. $.3B
• Europe $3.5B
• India $.1B
$ 1B
• Asia $3B
- China $1.5B

17 major design centers in Centers of Innovation

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Accelerated Growth

How do we expand the

growth rate in what may
be a slower growth
environment?

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Organizing
g g for Accelerated Growth

What
at We’ve
e e Done
o e So Far:
a
• Organized around global vertical markets
• Improved product development
productivity
• Strengthened talent in China
• Extended product and technology
roadmap planning to 5 – 10 years

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Organizing
g g for Accelerated Growth

Newer Areas of Emphasis:

• Accelerate design and sourcing in emerging
markets
• Double investment in advanced development
• Commit to open innovation
• Optimize Go-To-Market Channels
• Increase investment where we are strong: US,
Japan, Germany
• Seek p
partners in emerging
g g markets

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