#1TE Connectivity Third Quarter 2023 Earnings July 26, 2023 EVERY CONNECTION COUNTS TE connectivity#2STE connectivity 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. 30, 2022 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#3STE connectivity Earnings Highlights Q3 Sales in line with Expectations & Adjusted EPS Exceeding Guidance • • • Sales of $4.0B, with Y/Y organic growth in the Transportation and Industrial Segments Transportation up 7% organically Y/Y, with growth in all businesses . • Industrial up 2% organically Y/Y, with growth in AD&M, Medical, and Energy Communications down 37% organically Y/Y, due to expected market weakness Orders of $4.0B, flat sequentially, indicating stability Adjusted Operating Margins of 17.3%, Adjusted EPS of $1.77 • Expanded margins 130bps sequentially driven by the Transportation & Industrial segments Strong Free Cash Flow generation of ~$1.5B YTD, up ~40% Y/Y; ~$1.2B returned to shareholders Connecting Our World report issued, with commitments to the Science Based Targets Initiative Q4 Guidance • - Expect Q4 Sales of $4.0B and Adjusted EPS ~$1.75 • Sales & EPS expected to be similar to Q3 levels, with Y/Y Sales growth in the Transportation & Industrial Segments 3 Q4 sales comparisons to prior year exclude the impact of an additional week in the fourth quarter of fiscal 2022 which contributed sales of $306 million Organic Net Sales Growth (Decline), Adjusted EPS, Adjusted Operating Margin and Free Cash Flow are non-GAAP financial measures; see Appendix for descriptions and reconciliations#4Segment Orders Summary ($ in millions) 4 Reported FY22 FY23 FY23 Q3 Growth Q3 Q2 Q3 Y/Y Q/Q STE connectivity Transportation 2,303 2,412 2,374 3% (2)% Transportation book to bill of 0.98, reflecting ongoing stable demand Industrial 1,312 1,193 1,183 (10)% (1)% Communications 582 388 407 (30)% 5% Total TE 4,197 3,993 3,964 (6)% (1)% Industrial book to bill of 1.04, reflecting ongoing strength in AD&M, Energy and Medical end markets Communications book to bill of 0.96, with continued consumption of inventory across our customers' supply chain, offset by new orders for Al applications Book to Bill 1.02 0.96 0.99 Order Patterns Reflecting Overall Stability in All Segments#5$ in Millions Q3 Sales Reported Up 6% Organic Up 7% Transportation Solutions STE connectivity Q3 Business Performance Y/Y Growth Rates Reported Organic Automotive $1,747 7% 9% $2,300 $2,433 Commercial 403 1% 2% Transportation Sensors 283 4% 4% Q3 2022 Q3 2023 Transportation Solutions $2,433 6% 7% Q3 Adjusted Operating Margin Margins reflecting strong operational performance along 18.6% 17.3% with benefit of price increases Q3 2022 Q3 2023 Adjusted EBITDA Margin 23.2% 23.5% LO 5 Automotive organic growth across all regions. Strong performance continues to be driven by our leading position in electric vehicles along with electronification trends Commercial Transportation organic growth in Asia and Europe, partially offset by declines in North America Sensors organic growth driven by automotive applications Organic Net Sales Growth (Decline), Adjusted Operating Margin and Adjusted EBITDA Margin are non-GAAP financial measures; see Appendix for descriptions and reconciliations#674. 113 67 100 Industrial Solutions $ in Millions Q3 Sales CO 6 Reported Up 1% Organic Up 2% STE connectivity Q3 Business Performance Y/Y Growth Rates Reported Organic Industrial Equipment $423 (10)% (10)% $1,126 $1,141 Aerospace, Defense 293 8% 13% and Marine Energy 230 11% 8% Q3 2022 Q3 2023 Medical 195 10% 11% Industrial Solutions $1,141 1% 2% Q3 Adjusted Operating Margin Margins reflect expected volume 16.5% 15.8% decline in Industrial Equipment business Q3 2022 Q3 2023 Adjusted EBITDA Margin 20.7% 20.7% . Industrial Equipment decline driven by inventory digestion in the distribution channel AD&M organic growth reflects ongoing market improvement in Commercial Aerospace Energy organic growth across all regions, with continued momentum in renewable applications Medical organic growth with increases in interventional procedures Organic Net Sales Growth (Decline), Adjusted Operating Margin and Adjusted EBITDA Margin are non-GAAP financial measures; see Appendix for descriptions and reconciliations#77 $ in Millions Q3 Sales Communications Solutions Q3 Business Performance TE connectivity Reported Down 37% Y/Y Growth Rates Reported Organic Data & Devices $252 (41)% (41)% $671 Organic Appliances 172 (30)% (29)% $424 Down 37% Communications $424 (37)% (37)% Solutions Q3 2022 Q3 2023 Q3 Adjusted Operating Margin Margin impacted 26.5% by lower volume 14.2% Adjusted EBITDA Margin Q3 2022 Q3 2023 29.7% 19.8% • Data & Devices decline driven by ongoing consumption of inventory across our customers' supply chain Appliances impacted by market weakness in all regions Organic Net Sales Growth (Decline), Adjusted Operating Margin and Adjusted EBITDA Margin are non-GAAP financial measures; see Appendix for descriptions and reconciliations#8Q3 Financial Summary 8 ($ in Millions, except per share amounts) Net Sales Operating Income Operating Margin Acquisition-Related Charges Restructuring & Other Charges, Net* Adjusted Operating Income Adjusted Operating Margin Earnings Per Share** Acquisition-Related Charges Restructuring & Other Charges, Net Tax Items Adjusted EPS * Net restructuring charges represent $42M of the $53M in Q3 FY23 STE connectivity Q3 FY22 Q3 FY23 4,097 $ 3,998 719 630 17.5% 15.8% 12 9 30 53 761 692 18.6% 17.3% 1.83 1.67 0.03 0.02 0.07 0.08 (0.06) 1.86 SA $ 1.77 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 descriptions and reconciliations#9Q3 Financial Performance $ in Millions Sales Adjusted Operating Margin $4,097 $4,160 $3,998 18.6% 17.3% 16.0% Q3 2022 Q2 2023 Q3 2023 Q3 2022 Q2 2023 Q3 2023 Adjusted EBITDA 23.6% 20.9% 22.3% Margin $1.86 Adjusted EPS $1.77 $1.65 Q3 2022 Q2 2023 Q3 2023 $ in Millions Free Cash Flow TE connectivity +40% Y/Y $1,459 $1,038 ~$1.2B returned to shareholders YTD YTD 2022 YTD 2023 Sequential Growth in Margins & EPS Driven by Strong Operational Performance 9 Adjusted Operating Margin, Adjusted EPS, Adjusted EBITDA Margin and Free Cash Flow are non-GAAP financial measures; see Appendix for descriptions and reconciliations#10Additional Information EVERY CONNECTION COUNTS#11Y/Y Q3 2023 11 STE connectivity Sales (in millions) Adjusted EPS Q3 2022 Results Operational Performance FX Impact Tax Rate Impact $4,097 $1.86 (57) (0.06) (42) (0.05) 0.02 Q3 2023 Results $3,998 $1.77 Adjusted EPS is a non-GAAP financial measure; see Appendix for description and reconciliation#12Y/Y Q4 2023 STE connectivity Q4 2022 Results (13 weeks)* Operational Performance FX Impact Tax Rate Impact Q4 2023 Guidance Sales (in millions) Adjusted EPS $4,053 $1.75 (121) 0.01 68 (0.02) 0.01 $4,000 $1.75 Note: Q4 FY22 13 week does not include the impact of the additional week which contributed sales of $306M and Adjusted EPS of $0.13 12 Adjusted EPS, Net Sales Excluding the Impact of the Additional Week, and Adjusted EPS Excluding the Impact of the Additional Week are non-GAAP financial measures; see Appendix for descriptions and reconciliations#13STE connectivity Q3 Balance Sheet & Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash & Debt ($ in Millions) Q3 2022 Q3 2023 ($ in Millions) Cash from Operating Activities $579 $779 Beginning Cash Balance Free Cash Flow Capital expenditures, net (170) (165) Dividends Cash paid pursuant to collateral requirements related to cross-currency swap contracts 14 Share repurchases Net increase in debt Q3 2022 Q3 2023 $749 $905 423 614 (180) (186) (378) (208) 237 3 Free Cash Flow $423 $614 Acquisition of business, net of cash acquired (14) Other (17) 3 Ending Cash Balance $820 $1,131 A/R $3,132 $2,998 Days Sales Outstanding* 69 68 Total Debt $4,202 $4,206 Inventory Days on Hand* $3,028 $2,801 96 90 Accounts Payable Days Outstanding* 13 33 $1,917 $1,616 62 55 Free Cash Flow is a non-GAAP financial measure; see Appendix for description and reconciliation Adjusted to exclude the impact of acquisitions#14Appendix EVERY CONNECTION COUNTS#15TE connectivity 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 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 and Adjusted Operating Margin - represent operating income 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 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 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 from Continuing Operations - represents income 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 Per Share - represents diluted earnings 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. 15#16Non-GAAP Financial Measures (cont.) TE connectivity Adjusted EBITDA and Adjusted EBITDA Margin - represent net income and net income as a percentage of net sales, respectively, (the most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net other income (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. Net Sales Excluding the Impact of the Additional Week, Net Sales Growth (Decline) Excluding the Impact of the Additional Week, Organic Net Sales Growth (Decline) Excluding the Impact of the Additional Week, and Adjusted Earnings Per Share Excluding the Impact of the Additional Week - represent certain GAAP and non-GAAP financial measures excluding the impact of the additional week in the fourth quarter of the fiscal year for fiscal years which are 53 weeks in length. Free Cash Flow (FCF) - is a useful measure of our ability to generate cash. The difference between net cash provided by 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 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 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. Free Cash Flow Conversion - represents the ratio of Free Cash Flow to Adjusted Income from Continuing Operations. We use Free Cash Flow Conversion as an indicator of our ability to convert earnings to cash. 16#17Segment Summary June 30, 2023 For the Quarters Ended For the Nine Months Ended June 24, 2022 June 30, 2023 June 24, 2022 ($ in millions) Net Sales Net Sales $ 7,175 $ 6,772 3,392 3,246 1,432 1,904 $ 11,999 $ 11,922 Net Sales Net Sales Transportation Solutions $ 2,433 $ 2,300 Industrial Solutions 1,141 1,126 Communications Solutions 424 671 Total $ 3,998 $ 4,097 TE connectivity Operating Operating Operating Operating Operating Operating Operating Operating Income Margin Income Margin Income Margin Income Margin Transportation Solutions $ 425 17.5 % $ 383 16.7 % $ 1,040 14.5 % $ 1,187 17.5 % Industrial Solutions 150 13.1 165 14.7 440 13.0 430 13.2 Communications Solutions 55 13.0 171 25.5 189 13.2 479 25.2 Total $ 630 15.8 % $ 719 17.5 % $ 1,669 13.9 % $ 2,096 17.6 % Adjusted Operating Income Adjusted Operating (1) (1) Margin Adjusted Operating Income Adjusted Operating (1) (1) Margin Adjusted Operating Income Adjusted Operating Adjusted Operating (1) Margin (1) (1) Income Adjusted Operating Margin (1) Transportation Solutions 452 18.6 % $ 397 17.3 % $ 1,221 17.0 % $ 1,211 17.9 % Industrial Solutions 180 15.8 186 16.5 529 15.6 501 15.4 Communications Solutions 60 14.2 178 26.5 228 15.9 497 26.1 Total $ 692 17.3 % $ 761 18.6 % $ 1,978 16.5 % $ 2,209 18.5 % (¹) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. 17#18Reconciliation of Net Sales Growth Change in Net Sales for the Quarter Ended June 30, 2023 versus Net Sales for the Quarter Ended June 24, 2022 Transportation Solutions (3): Net Sales Growth (Decline) Organic Net Sales Growth (Decline) (1) ($ in millions) Translation (2) Acquisitions/ (Divestiture) Automotive Commercial transportation $ 118 7.2 % $ 143 8.8 % $ (25) S 3 0.8 9 2.1 (6) Sensors 12 4.4 11 4.1 1 Total 133 5.8 163 7.1 (30) Industrial Solutions (3). Industrial equipment (48) (10.2) (46) (9.8) (2) Aerospace, defense, and marine 22 8.1 35 13.2 1 Energy 23 11.1 16 8.0 (3) Medical 18 10.2 19 10.8 (1) |$༅ | (14) 10 Total 15 1.3 24 2.2 (5) (4) Communications Solutions (3). Data and devices Appliances Total Total (173) (40.7) (174) (41.2) (4) 5 (74) (30.1) (71) (28.9) (3) (247) (36.8) (245) (36.7) (7) 5 S (99) (2.4) % $ (58) (1.4) % S (42) S Change in Net Sales for the Nine Months Ended June 30, 2023 versus Net Sales for the Nine Months Ended June 24, 2022 Transportation Solutions (3). Automotive Commercial transportation Sensors Total Net Sales. Growth (Decline) Organic Net Sales Growth (Decline) (S in millions) (1) Translation $ 389 8.1 % $ 651 13.5 % $ (262) $ (3) (0.3) 42 3.6 (45) 17 2.1 41 5.1 (24) 403 6.0 734 10.8 (331) Acquisitions/ (Divestiture) Industrial Solutions (3); Industrial equipment (73) Aerospace, defense, and marine Energy Medical 65 ེ་ཁ་ (5.2) (17) (1.2) (56) 10.5 118 15.2 (17) (20) 12.6 82 14.2 (24) 15 12.9 68 13.6 (3) Total 146 4.5 251 7.7 (100) Communications Solutions (3). Data and devices (304) (25.9) (294) (25.1) (28) Appliances (168) (23.0) (145) (19.8) (23) Total (472) (24.8) (439) (23.1) (51) །ཤ རྦ །། Total 77 0.6 % S 546 4.6 % $ (482) $ 13 18 (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. STE connectivity#19Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 30, 2023 STE connectivity 19 Adjustments Acquisition- Restructuring U.S. GAAP (1) Related and Other Charges Charges, Net (¹) ($ in millions, except per share data) Adjusted (Non-GAAP) (2) Operating income: Transportation Solutions $ 425 $ $ 27 $ 452 Industrial Solutions 150 8 22 180 Communications Solutions 55 1 4 60 Total $ 630 $ 9 $ 53 $ 692 Operating margin Other expense, net $ Income tax expense Effective tax rate 15.8 % $ (96) 15.4 % $ $ 17.3 % (27) $ (125) 18.2 % Income from continuing operations $ 528 $ 7 $ 26 $ 561 Diluted earnings per share from continuing operations $ 1.67 $ 0.02 $ 0.08 $ 1.77 (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) See description of non-GAAP financial measures.#20Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 24, 2022 STE connectivity Operating income: Acquisition- U.S. GAAP Related Charges (1) Adjustments Restructuring and Other Charges, Net (1)(2) Tax Items ($ in millions, except per share data) Adjusted (3) (Non-GAAP) (4) Transportation Solutions $ 383 $ 5 $ 9 $ $ 397 Industrial Solutions 165 6 15 186 Communications Solutions 171 1 6 178 Total 719 $ 12 $ 30 $ $ 761 Operating margin 17.5 % 18.6 % Other income, net $ 4 $ $ $ $ 4 Income tax expense $ (116) $ (3) $ $ (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 (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 $26 million recorded in net restructuring and other charges and $4 million recorded in cost of sales. (3) Includes a $21 million income tax benefit related to the tax impacts of an intercompany transaction. 20 20 (4) See description of non-GAAP financial measures.#21Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 30, 2023 21 Operating income: U.S. GAAP Adjustments Acquisition- Restructuring and Other (1) Related Charges Charges, Net (1) ($ in millions, except per share data) Adjusted (Non-GAAP) (2) Transportation Solutions $ 1,040 $ 2 $ 179 Industrial Solutions 440 21 $ཅ $ 1,221 68 529 Communications Solutions 189 3 36 228 Total $ 1,669 $ 26 $ 283 $ 1,978 Operating margin 13.9 % Other expense, net $ (13) $ Income tax expense $ (283) Effective tax rate 17.3 % Income from continuing operations Diluted earnings per share from continuing operations 16.5 % $ (13) $ $ (370) 19.0 % $ 1,351 $ 21 $ 201 $ 1,573 $ 4.25 $ 0.07 $ 0.63 $ 4.95 (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) See description of non-GAAP financial measures. TE connectivity#22STE connectivity Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 24, 2022 Acquisition- Related U.S. GAAP (1) Charges Adjustments Restructuring and Other Charges, Net (1)(2) Tax Items (3) Adjusted (Non-GAAP) (4) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,187 $ Industrial Solutions 430 22 12 $ 12 $ $ 1,211 24 47 501 Communications Solutions 479 2 16 497 Total $ 2,096 $ 38 $ 75 $ $ 2,209 Operating margin 17.6 % 18.5 % Other income, net $ 24 $ $ $ $ 13 Income tax expense $ (362) $ (8) $ (18) $ (18) EA (406) Effective tax rate 17.4 % 18.6 % Income from continuing operations S 1,719 $ 30 $ 57 $ (29 $ 1,777 Diluted earnings per share from continuing operations $ 5.26 $ 0.09 $ 0.17 $ (0.09) $ 5.43 22 22 (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) (3) Includes $59 million recorded in net restructuring and other charges and $16 million recorded in cost of sales. Includes a $57 million income tax benefit related to the tax impacts of an intercompany transaction, $27 million of income tax expense related to the write-down of certain deferred tax assets to the lower 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 $11 million to other income pursuant to the indemnification terms of the purchase agreement. (4) See description of non-GAAP financial measures.#23Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 30, 2022 U.S. GAAP Acquisition- Related Charges Adjustments Restructuring and Other (1) Charges, Net (1) Tax Items (2) Adjusted (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 347 $ 4 $ 56 $ $ 407 Industrial Solutions 177 8 19 204 Communications Solutions 136 3 7 146 Total $ 660 $ 15 $ 82 $ $ 757 STE connectivity Operating margin 15.1 % 17.4 % Other income, net $ 4 $ $ $ 4 Income tax (expense) benefit $ 56 $ (3) $ (16) $ (182) $ (145) Effective tax rate (8.6) % 19.4 % Income from continuing operations $ 708 $ 12 $ 66 $ (182) $ 604 Diluted earnings per share from continuing operations $ 2.21 $ 0.04 $ 0.21 $ (0.57) $ 1.88 (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 a $67 million income tax benefit related to the tax impacts of certain intercompany transactions, a $64 million income tax benefit related primarily to a lapse of a statute of limitation, and a $51 million income tax benefit related to the release of a valuation allowance associated primarily with improved current and expected future operating profit and taxable income. See description of non-GAAP financial measures. (3) 23#24Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2022 Acquisition- Related U.S. GAAP Charges (1) Adjustments Restructuring and Other Charges, Net (1)(2) Tax Items ($ in millions, except per share data) (3) Adjusted (Non-GAAP) (4) STE connectivity Operating income: Transportation Solutions $ 1,534 $ 16 $ 68 $ $ 1,618 Industrial Solutions 607 32 66 705 Communications Solutions 615 5 23 643 Total $ 2,756 $ 53 $ 157 $ $ 2,966 16.9 % 18.2 % Operating margin Other income, net $ 28 $ $ $ 17 Income tax expense $ (306) $ (11) $ (34) $ (200) $ (551) Effective tax rate 11.2 % 18.8 % Income from continuing operations $ 2,427 $ 42 $ 123 $ (211) $ 2,381 Diluted earnings per share from continuing operations $ 7.47 $ 0.13 $ 0.38 $ (0.65) $ 7.33 (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 $141 million recorded in net restructuring and other charges and $16 million recorded in cost of sales. (3) Includes a $124 million income tax benefit related to the tax impacts of certain intercompany transactions, a $64 million income tax benefit related primarily to a lapse of a statute of limitation, and a $51 million income tax benefit related to the release of a valuation allowance associated primarily with improved current and expected future operating profit and taxable income. 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 $11 million to other income pursuant to the terms of the purchase agreement. (4) 24 See description of non-GAAP financial measures.#25Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 31, 2023 STE connectivity 25 U.S. GAAP Adjustments Acquisition- Restructuring and Other (1) Related Charges Charges, Net (1) ($ in millions, except per share data) Adjusted (Non-GAAP) (2) Operating income: Transportation Solutions $ 333 $ $ 78 $ 411 Industrial Solutions 134 7 33 174 Communications Solutions 70 1 8 79 Total $ 537 $ 8 $ 119 $ 664 Operating margin 12.9 % 16.0 % Other expense, net $ $ $ $ Income tax expense EA Effective tax rate (100) $ $ (26) $ (127) 19.0 % 19.5 % Income from continuing operations $ 425 $ 7 $ 93 $ 525 Diluted earnings per share from continuing operations $ 1.34 $ 0.02 S 0.29 $ 1.65 (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) See description of non-GAAP financial measures.#26Reconciliation of Free Cash Flow STE connectivity 2023 2022 For the Quarters Ended June 30, June 24, For the Nine Months Ended June 24, 2022 June 30, 2023 (in millions) Net cash provided by operating activities Net cash used in investing activities $ 779 $ 579 $ 1,994 $ 1,524 (169) (185) (573) (568) Net cash used in financing activities (380) (318) (1,386) (1,330) Effect of currency translation on cash (4) (5) 8 Net increase (decrease) in cash, cash equivalents, and restricted cash $ 226 $ 71 $ 43 $ (383) Net cash provided by operating activities $ 779 $ 579 $ 1,994 $ 1,524 Excluding: Cash (collected) paid pursuant to collateral requirements related to cross-currency swap contracts Capital expenditures, net Free cash flow (1) 14 (28) (165) (170) (535) (458) $ 614 $ 423 $ 1,459 $ 1,038 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. 26#27STE Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin June 30, 2023 For the Quarters Ended March 31, 2023 ($ in millions) June 24, 2022 connectivity Net income Income from discontinued operations Income tax expense Other (income) expense, net Interest expense Interest income Operating income Acquisition-related charges Restructuring and other charges, net Adjusted operating income (1) Depreciation and amortization Adjusted EBITDA (1) Net sales Net income as a percentage of net sales Adjusted EBITDA margin (1) $ 528 $ 433 $ (8) 96 100 594 (2) 116 4 4 (4) 20 20 18 (18) (12) (3) $ 630 $ 537 $ 719 9 8 12 53 119 30 692 664 761 200 207 205 $ 892 $ 871 $ 966 $ 3,998 $ 4,160 $ 13.2 % 10.4 % 22.3 % 20.9 % 4,097 14.5 % 23.6 % For the Quarters Ended June 30, 2023 Transportation Solutions Industrial Solutions Communications June 24, 2022 Solutions Total Transportation Solutions Industrial Solutions Communications Solutions Total ($ in millions) Operating income Acquisition-related charges Restructuring and other charges, net Adjusted operating income $ 425 $ 150 $ 55 $ 630 $ 383 $ 165 $ 171 $ 719 8 1 9 5 6 1 12 27 22 4 53 9 15 6 30 (1) 452 180 60 692 397 186 178 761 Adjusted EBITDA Depreciation and amortization (1) 120 56 24 200 137 47 21 205 $ 572 $ 236 $ 84 $ 892 $ 534 $ 233 $ 199 $ 966 Net sales $ 2,433 $ 1,141 $ 424 $ 3,998 $ 2,300 $ 1,126 $ 671 $ 4,097 Operating margin 17.5 % 13.1 % 13.0 % 15.8 % 16.7 % 14.7 % 25.5 % 17.5 % (1) Adjusted operating margin 18.6 % 15.8 % 14.2 % 17.3 % 17.3 % 16.5 % 26.5 % 18.6 % Adjusted EBITDA margin (1) 23.5 % 20.7 % 19.8 % 22.3 % 23.2 % 20.7 % 29.7 % 23.6 % (1) See description of non-GAAP financial measures. 27#28Impact of Additional Week on Net Sales - QTD STE connectivity 28 For the Quarter Ended September 30, 2022 14 Weeks U.S. GAAP Adjustment Impact of 14th Week 13 Weeks (Non-GAAP) (1)(2) (in millions) (306) $ 4,053 Net Sales 4,359 (1) Excludes the impact of an additional week in the fourth quarter of fiscal 2022. The impact of the additional week was estimated using average sales for the fourth quarter of the fiscal year. (2) See description of non-GAAP financial measures.#29Impact of Additional Week on EPS - QTD STE connectivity Acquisition- Adjustments Restructuring Adjustment 14 Weeks U.S. GAAP Related Charges and Other (1) Charges, Net (1) (2) Tax Items Adjusted (Non-GAAP) (3) Impact of 14th Week 13 Weeks Adjusted (Non-GAAP) (3)(4) Diluted earnings per share from continuing operations $ 2.21 $ 0.04 $ 0.21 $ (0.57) $ 1.88 $ (0.13) $ 1.75 (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 a $67 million income tax benefit related to the tax impacts of certain intercompany transactions, a $64 million income tax benefit related primarily to a lapse of a statute of limitation, and a $51 million income tax benefit related to the release of a valuation allowance associated primarily with improved current and expected future operating profit and taxable income. (3) (4) See description of non-GAAP financial measures. Excludes the impact of an additional week in the fourth quarter of fiscal 2022. The impact of the additional week was estimated using average adjusted earnings per share for the fourth quarter of the fiscal year. 29#3030 30 TE connectivity Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures Outlook for Quarter Ending September 29, Outlook for 2023 (1) Fiscal 2023 (1) Diluted earnings per share from continuing operations Restructuring and other charges, net $ 1.63 0.10 Acquisition-related charges 0.02 Adjusted diluted earnings per share from continuing operations (2) $ 1.75 Net sales growth (decline) (8.2) % Impact of additional week in fiscal 2022 (3) 6.9 Net sales growth (decline) excluding the impact of the additional week in fiscal 2022 Translation (2) (1.3) (1.7) (Acquisitions) divestitures, net 0.2 Organic net sales growth (decline) excluding the impact of the additional week in fiscal 2022 (2) (2.8) % Effective tax rate Effective tax rate adjustments (4) Adjusted effective tax rate (2) 18.7 % 0.3 17.7 % 1.4 19.0 % 19.1 % (1) Outlook is as of July 26, 2023. (2) See description of non-GAAP financial measures. (3) The impact of an additional week in the fourth quarter of fiscal 2022. The impact of the additional week was estimated using average sales for the fourth quarter of the fiscal year. (4) 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.