Tyco Electronics Investor Meeting

1

Tyco Electronics Investor MeetingTyco Electronics Investor Meeting

June 19, 2007June 19, 2007

AgendaAgenda

• Overview / Strategic Priorities Tom Lynch, CEO

• Financial Overview Terrence Curtin, CFO

• Business Segment Overviews

– Electronic Components Tom Lynch, CEO

– Network Solutions Alan Clarke, President

– Wireless Systems Chuck Dougherty, President

• Wrap-Up / Q&A All

• Overview / Strategic Priorities Tom Lynch, CEO

• Financial Overview Terrence Curtin, CFO

• Business Segment Overviews

– Electronic Components Tom Lynch, CEO

– Network Solutions Alan Clarke, President

– Wireless Systems Chuck Dougherty, President

• Wrap-Up / Q&A All

2

This presentation contains certain “forward-looking statements” within the meaning of the United States 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 or achievements to differ materially from anticipated results, performance 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.

The forward-looking statements in this presentation may include statements addressing the following subjects: future financial condition and operating results, economic, business, competitive and/or regulatory factors affecting Tyco Electronics’ business. In addition, Tyco Electronics’ historical and pro forma combined financial information is not necessarily representative of the results it would have achieved as an independent, publicly-traded company and may not be a reliable indicator of its future results. Tyco Electronics is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. More detailed information about these and other factors is set forth in the information statement included in the Tyco Electronics Ltd. Form 8-K filing of June 8, 2007.

Where we have used non-GAAP financial measures, reconciliations to the most comparable GAAP measure is provided, along with a disclosure on the usefulness of the non-GAAP measure, in the Appendix section of this presentation.

Forward-Looking Statement / Non-GAAP MeasuresForward-Looking Statement / Non-GAAP Measures

Tyco Electronics OverviewTyco Electronics Overview

• A leading global provider of engineered electronic components, network infrastructure solutions and wireless systems

• Global leader in attractive, growing industries• Diverse customer base and industry base• Global reach and scale• Established track record of innovation leadership• Strong cash flow generation and financial flexibility• Growth and margin improvement opportunities



3

Major AcquisitionsMajor Acquisitions

OEM Business

Long-standing customer relationships

Market leaders

Broad product breadth

Primary technologies:– Contact physics – Materials science– RF microwave

Long-standing customer relationships

Market leaders

Broad product breadth

Primary technologies:– Contact physics – Materials science– RF microwave

Electromechanical Components Division

Formed Through the Acquisition of Industry LeadersFormed Through the Acquisition of Industry Leaders

Market dynamics should continue to drive above-GDP growthMarket dynamics should continue to drive above-GDP growth

Market DriversMarket Drivers

• Electronic feature growth in all industries

• Miniaturization and higher data-speed requirements

• Broadband and wireless proliferation

• Upgrade of global energy networks

• Electronic feature growth in all industries

• Miniaturization and higher data-speed requirements

• Broadband and wireless proliferation

• Upgrade of global energy networks

“Dot Com”Bubble

&Bust

26 Year historical CAGR = 6.1%26 Year historical CAGR = 6.1%

Source: 2007 Connector Market Handbook, Bishop and Associates, Inc.

World Connector Market Sales Growth:1980-2006

World Connector Market Sales Growth:1980-2006

100

150

200

250

300

350

400

450

500

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

Gro

wth

Inde

x (1

980=

100)

100

150

200

250

300

350

400

450

500

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

Gro

wth

Inde

x (1

980=

100)

4

Leadership positions in $55-60 billion total served marketLeadership positions in $55-60 billion total served market

Innovation Drives Leading Global Market PositionsInnovation Drives Leading Global Market Positions

• World’s leading passive components supplier• Significant player in all markets and product areas• Approximately 70% of sales are from products that are # 1 in the

industry

• World’s leading passive components supplier• Significant player in all markets and product areas• Approximately 70% of sales are from products that are # 1 in the

industry

* Source: Bishop & Associates and management estimates; actual market position could differ materially$ Billions

2006Product Family Revenue

Relays $0.8Wireless Private Networks $0.3Circuit Protection $0.5Fiber Optic Interconnects $0.3

# 1 Market Position # 1 Market Position # 2 or # 3 Market Position # 2 or # 3 Market Position 2006

Product Family Revenue

Connectors/ Cable Assemblies $7.3Heat Shrink Tubing $0.6Touchscreens $0.3Undersea Telecom Systems $0.3Total $8.5

Computer11 %

Computer11 %

Automotive29%

Automotive29%

Telecommunications17 %

Telecommunications17 %

Aerospace & Defense 5%Aerospace & Defense 5%

Household Appliance 5%Household Appliance 5%

Power Utilities 6%Power Utilities 6%

Consumer Electronics 2%Consumer Electronics 2%

Other 13%Other 13% Instrumentation 2%Instrumentation 2%Commercial & Building Equipment 2%Commercial & Building Equipment 2%

Industrial Machinery 4%Industrial Machinery 4%Building Networks 4%Building Networks 4%

2006 Sales by Industry2006 Sales by Industry

Broad Industry Diversification…Broad Industry Diversification…

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Top 25 customers account for less than 30% of total salesTop 25 customers account for less than 30% of total sales

Top Customers

…Diverse Customer Base…Diverse Customer Base

Asia ex-China16%

China11%

Europe34%

Americas39%

Asia ex-China16%

China11%

Europe34%

Americas39%

2006 Sales by Geography2006 Sales by Geography

Asia Total27%

Global Reach and ScaleGlobal Reach and Scale

• Balanced geographic presence• Located near our customers

– 8,000+ engineers inglobal design centers

– 5,000+ salespeople servingcustomers in 150+ countries

– Manufacturing in 25 countries

• Significant presence in China– $1.5 billion of local sales and

$0.7 billion of exports– 34,000 employees– 16 manufacturing facilities

• Balanced geographic presence• Located near our customers

– 8,000+ engineers inglobal design centers

– 5,000+ salespeople servingcustomers in 150+ countries

– Manufacturing in 25 countries

• Significant presence in China– $1.5 billion of local sales and

$0.7 billion of exports– 34,000 employees– 16 manufacturing facilities

6

Investing for Technology LeadershipInvesting for Technology Leadership

• Over $600M of annual RD&E investment (~5% of sales)

• Products introduced in last 3 years accounted for 38% of sales in 2006

• 8,000+ engineers globally• 17,000+ patents issued

or pending• Added 200+ engineers

in emerging markets in 2006, up ~25% over prior year

• Over $600M of annual RD&E investment (~5% of sales)

• Products introduced in last 3 years accounted for 38% of sales in 2006

• 8,000+ engineers globally• 17,000+ patents issued

or pending• Added 200+ engineers

in emerging markets in 2006, up ~25% over prior year

$528

$602

$637$650+

$400

$450

$500

$550

$600

$650

$ m

illio

ns

2004 2005 2006 2007E

$528

$602

$637$650+

$400

$450

$500

$550

$600

$650

$ m

illio

ns

2004 2005 2006 2007E

Research, Development &Engineering

Research, Development &Engineering

$1,068 $1,100$1,122

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2004 2005 2006

$1,068 $1,100$1,122

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2004 2005 2006

• Fund organic growth– R&D, engineering

– Emerging / high-growth markets

– State of NY wireless project

• Accelerate productivity improvements

– Footprint simplification

• Strategic acquisitions

• Return capital to shareholders

• Fund organic growth– R&D, engineering

– Emerging / high-growth markets

– State of NY wireless project

• Accelerate productivity improvements

– Footprint simplification

• Strategic acquisitions

• Return capital to shareholders

Primary Uses of CashPrimary Uses of CashFree Cash Flow*Free Cash Flow*

$ millions*Free cash flow is a non-GAAP measure, see Appendix for reconciliation

Our Strong Cash Flow Gives Us Flexibility and ChoicesOur Strong Cash Flow Gives Us Flexibility and Choices

• Stable capital requirements– Cap Ex 4-5% of sales

• Strong balance sheet

• Stable capital requirements– Cap Ex 4-5% of sales

• Strong balance sheet

7

2006 Sales$12.8 Billion

Electronic Components

73%

NetworkSolutions

14%

Other6%

WirelessSystems

7%

Organized in Four Business SegmentsOrganized in Four Business Segments

* See Appendix for reconciliation to GAAP operating income

2006 Operating Income$1.7 Billion *


81%

NetworkSolutions

15%

Other(1.0)%

WirelessSystems

5%

Management team averages over 20 years of electronics industry experienceManagement team averages over 20 years of electronics industry experience

David Coughlan

Kevin Rock

Steven O’Neil

Jorge Cervantes

Minoru Okamoto

Shu Ebe

Chuck Dougherty

Alan Clarke

Tom Lynch

Name

SVP, Tyco Telecommunications

SVP, Aerospace & Defense

SVP, Energy

SVP, Industrial & Commercial

SVP, Communications, Computer & Consumer Electronics

SVP, Automotive

President, Wireless Systems

President, Network Solutions

Chief Executive Officer

Position

14

24

15

29

29

5

25

25

24

Years of Industry Experience

Experienced Operating Management TeamExperienced Operating Management Team

8

* Free cash flow and organic revenue growth are non-GAAP measures; see Appendix for description of these items

** Before dividends and cash outflows to build the State of New York wireless network

Three-Year ObjectivesThree-Year Objectives

• Organic revenue growth* of 5-7%• Operating margins above 15%• Free cash flow* approximately equal to

net income**

• Organic revenue growth* of 5-7%• Operating margins above 15%• Free cash flow* approximately equal to

net income**

Strategic PrioritiesStrategic Priorities

• Focus the portfolio• Achieve organic growth of 5 to 7%

– Accelerate growth in under-penetrated markets– Enhance leadership position in emerging markets

• Improve margins by streamlining operations and improving productivity

• Target acquisitions to accelerate sales and income growth

• Focus the portfolio• Achieve organic growth of 5 to 7%

– Accelerate growth in under-penetrated markets– Enhance leadership position in emerging markets


• Target acquisitions to accelerate sales and income growth

9

Focus the PortfolioFocus the Portfolio

• Up to 15% of current sales are underperforming / non-strategic

– Subscale market positions in less attractive markets– Low-margin product lines within good businesses/markets– Power Systems divestiture under way

• Began streamlining portfolio 3 years ago– Sold electrical contracting business in fiscal 2004– Sold Tyco Global Network (TGN) in fiscal 2005– Sold printed circuit board business in fiscal 2007

• Plan to complete process within first 2 years after separation

• Up to 15% of current sales are underperforming / non-strategic

– Subscale market positions in less attractive markets– Low-margin product lines within good businesses/markets– Power Systems divestiture under way

• Began streamlining portfolio 3 years ago– Sold electrical contracting business in fiscal 2004– Sold Tyco Global Network (TGN) in fiscal 2005– Sold printed circuit board business in fiscal 2007

• Plan to complete process within first 2 years after separation

Our goal is to gain share and accelerate growth in these marketsOur goal is to gain share and accelerate growth in these markets

Accelerate Growth in Underpenetrated MarketsAccelerate Growth in Underpenetrated Markets

• Solid growth markets with good profitability• We have a presence in these markets but we are

not always the leader

• Solid growth markets with good profitability• We have a presence in these markets but we are

not always the leader

20062006 MarketMarket(in $ billions)(in $ billions) RevenueRevenue Position*Position*

Energy SystemsEnergy Systems 0.80.8$$ 11Aerospace & DefenseAerospace & Defense 0.70.7$$ 22Industrial MachineryIndustrial Machinery 0.50.5$$ 11Public SafetyPublic Safety 0.40.4$$ 22Consumer ElectronicsConsumer Electronics 0.20.2$$ 33Mobile PhonesMobile Phones 0.20.2$$ 33MedicalMedical 0.20.2$$ 33

* Market position is based on management estimates; actual market position could differ materially

10

Enhance Leadership Position in Emerging MarketsEnhance Leadership Position in Emerging Markets• Significant presence in emerging markets but

opportunities for additional penetration• Low-cost production and sourcing• Existing customer migration and rapidly growing local

customer base

• Significant presence in emerging markets but opportunities for additional penetration

• Low-cost production and sourcing• Existing customer migration and rapidly growing local

customer base

* As of September 30, 2006

20032003 20062006 3-Year3-Year Number ofNumber of(in $ billions)(in $ billions) RevenueRevenue RevenueRevenue CAGRCAGR Employees*Employees*ChinaChina 0.70.7$$ 1.51.5$$ 31%31% 33,81433,814

Eastern EuropeEastern Europe 0.30.3$$ 0.80.8$$ 42%42% 6,0946,094

IndiaIndia 0.10.1$$ 0.20.2$$ 32%32% 3,3963,396

Investment of up to $400 million through 2010Investment of up to $400 million through 2010

Improve Margins by Streamlining Operations and Improving ProductivityImprove Margins by Streamlining Operations and Improving Productivity

• Accelerate manufacturing footprint reduction

• Expand low-cost capacity• Leverage procurement scale

more effectively• Improve operating leverage• Simplify our supply chain• Reduce inventory

• Accelerate manufacturing footprint reduction

• Expand low-cost capacity• Leverage procurement scale

more effectively• Improve operating leverage• Simplify our supply chain• Reduce inventory 20%

25%

30%

35%

40%

45%

50%

2003 2006 3-Year Target20%

25%

30%

35%

40%

45%

50%

2003 2006 3-Year Target

Low-Cost Country Production% of Global Production

Low-Cost Country Production% of Global Production

11

Finance OverviewFinance Overview

June 19, 2007June 19, 2007

Terrence CurtinExecutive Vice President & Chief Financial Officer

Terrence CurtinExecutive Vice President & Chief Financial Officer

Financial OverviewFinancial Overview

• Organic growth profile• Operating leverage• Income tax opportunities• Strong cash flow generation• Solid balance sheet and capital structure

• Organic growth profile• Operating leverage• Income tax opportunities• Strong cash flow generation• Solid balance sheet and capital structure

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Income StatementIncome Statement

Our greatest opportunities are Gross Margins and Income TaxesOur greatest opportunities are Gross Margins and Income Taxes

* See Appendix

Effective Tax Rate – Pro forma 31-34%

Expected Share Count Approx. 500 Million Shares

Effective Tax Rate – Pro forma 31-34%

Expected Share Count Approx. 500 Million Shares

20042004 20052005 20062006SalesSales $11,099$11,099 $11,890$11,890 $12,812$12,812

RD&ERD&E $528$528 $602$602 $637$637% of Sales% of Sales 4.8%4.8% 5.1%5.1% 5.0%5.0%

Gross IncomeGross Income $3,128$3,128 $3,166$3,166 $3,365$3,365% of Sales% of Sales 28.2%28.2% 26.6%26.6% 26.3%26.3%

Selling & MarketingSelling & Marketing $819$819 $831$831 $877$877% of Sales% of Sales 7.4%7.4% 7.0%7.0% 6.8%6.8%

General & AdministrativeGeneral & Administrative $724$724 $676$676 $750$750% of Sales% of Sales 6.5%6.5% 5.7%5.7% 5.9%5.9%

Adjusted Operating Income*Adjusted Operating Income* $1,619$1,619 $1,669$1,669 $1,725$1,725% of Sales% of Sales 14.6%14.6% 14.0%14.0% 13.5%13.5%

Organic Growth ProfileOrganic Growth Profile

6%

7%

14%

73%

% of Rev

7.9%(1.2%)

7.2%

5.4%

9.2%2004

4.5%1.1%

4.0%

11.7%

3.7%2005

5-7%9.4%Total Electronics5%+15.6%Other

8-10%0.1%Wireless Systems

6-8%15.6%Network Solutions

5-7%8.8%Electronic Components

Long-Term2006Organic Growth*

• Electronic feature growth in all industries• Miniaturization and higher data-speed requirements• Broadband and wireless proliferation• Upgrade of global energy networks

• Electronic feature growth in all industries• Miniaturization and higher data-speed requirements• Broadband and wireless proliferation• Upgrade of global energy networks

* Organic revenue growth is a non-GAAP measure. See Appendix.

13

Approximately 1/3 of our Cost of Sales are conversion costsApproximately 1/3 of our Cost of Sales are conversion costs

RD&E 7%RD&E 7%

Depreciation 5%Depreciation 5%

Overhead10%

Overhead10%

Materials 62%Materials 62%Direct Labor 16%Direct Labor 16%

Cost of Sales OverviewCost of Sales Overview

2006 Cost of Sales$9.4 billion

2006 Cost of Sales$9.4 billion

Copper and gold costs have increased from 4% to 8% of Cost of SalesCopper and gold costs have increased from 4% to 8% of Cost of Sales

Operating Income and MarginsOperating Income and Margins

$1.6 $1.7 $1.7

0.0

0.5

1.0

1.5

2.0

2004 2005 2006

$1.6 $1.7 $1.7

0.0

0.5

1.0

1.5

2.0

2004 2005 2006

OI%OI%$billions$billions

*See Appendix for reconciliation to GAAP operating income*See Appendix for reconciliation to GAAP operating income

• Held operating income essentially level due to:– Pricing actions helped

recover ~40% of the raw materials increase

– Operating leverage from volume increases offset remaining headwind

• Operating margin declined due to significant increases in the cost of raw materials

• Held operating income essentially level due to:– Pricing actions helped

recover ~40% of the raw materials increase

– Operating leverage from volume increases offset remaining headwind

• Operating margin declined due to significant increases in the cost of raw materials

Adjusted Operating Income* / Operating Margin*Adjusted Operating Income* / Operating Margin*

14.6%14.6%14.0%14.0%

13.5%13.5%

8%8%

10%10%

12%12%

14%14%

16%16%

18%18%

20042004 20052005 20062006

Cost of Copper & GoldCost of Copper & Gold $342$342 $423$423 $714$714% of COGS% of COGS 4.3%4.3% 4.8%4.8% 7.6%7.6%

Gross Raw Materials Gross Raw Materials IncreaseIncrease ($82)($82) ($98)($98) ($306)($306)

Price ErosionPrice Erosion 4.6%4.6% 4.1%4.1% 2.8%2.8%

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$807 $789$20

$160 $33 $45 $50$13 $17

$0

$200

$400

$600

$800

$1,000

$1,200

1H 2006Income

VolumeLeverage

NetProductivity

Mix Net MetalsImpact

EngineeringInvestment

Restr'g Other 1H 2007Income

$807 $789$20

$160 $33 $45 $50$13 $17

$0

$200

$400

$600

$800

$1,000

$1,200

1H 2006Income

VolumeLeverage

NetProductivity

Mix Net MetalsImpact

EngineeringInvestment

Restr'g Other 1H 2007Income

Operating Income BridgeOperating Income Bridge

First Half of 2007First Half of 2007

Strategic Actions

Portfolio Rationalization Footprint Acceleration

Strategic Actions

Portfolio Rationalization Footprint Acceleration

Financial Impact of Portfolio and Footprint ActionsFinancial Impact of Portfolio and Footprint Actions

• Up to 15% of sales could be exited or divested

• Expect impact on net income to be neutral, excluding one-time gains or losses on divestitures

• Expect to be largely completed in the first 2 years after separation

• Up to 15% of sales could be exited or divested

• Expect impact on net income to be neutral, excluding one-time gains or losses on divestitures

• Expect to be largely completed in the first 2 years after separation

• Expect to spend $70-90 million in 2007 and up to $400 million from 2008 through 2010

• Approximately 75-85% of total cost will be cash

• Payback of 3 years on average

• Expect to spend $70-90 million in 2007 and up to $400 million from 2008 through 2010

• Approximately 75-85% of total cost will be cash

• Payback of 3 years on average

Expected Results• Better operating leverage• Improved productivity• Higher margin sales mix

Expected Results• Better operating leverage• Improved productivity• Higher margin sales mix

Manufacturing Footprint AccelerationManufacturing Footprint AccelerationPortfolio RationalizationPortfolio Rationalization

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Cash Tax Rates should remain significantly lower than Book Tax RatesCash Tax Rates should remain significantly lower than Book Tax Rates

Income TaxesIncome Taxes

Structural tax rate 28 - 30%

Tax sharing agreement 3 - 4%

Initial ETR Guidance 31 - 34%

2004 14%2005 22%2006 23%

Cash Tax Rates*Cash Tax Rates*

Effective Tax RateEffective Tax Rate• Negative tax synergies due to separation

• Significant proportion of income generated in high-tax countries

• Net operating losses (NOLs) lower cash tax rates:

– $3.4 billion in U.S. federal– $1.9 billion non-U.S.

• Goal to reduce effective tax rate by 200-300 bps over next 3 years

• Negative tax synergies due to separation

• Significant proportion of income generated in high-tax countries

• Net operating losses (NOLs) lower cash tax rates:

– $3.4 billion in U.S. federal– $1.9 billion non-U.S.

• Goal to reduce effective tax rate by 200-300 bps over next 3 years

*See Appendix for calculation of cash tax rate*See Appendix for calculation of cash tax rate

Strong and Consistent Cash FlowStrong and Consistent Cash Flow

$1,068 $1,100$1,122

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2004 2005 2006

$1,068 $1,100$1,122

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2004 2005 2006

Free Cash Flow*Free Cash Flow*

* Free cash flow is a non-GAAP measure, see Appendix for reconciliation

• Stable capital expenditures at 4-5% of sales

– New product programs account for approximately 50% of capital expenditures

• State of New York wireless project investment of $500 to $550 million over 5 years

• Dividends - Launch rate of $280 million (20%+ payout ratio)

• Stable capital expenditures at 4-5% of sales

– New product programs account for approximately 50% of capital expenditures

• State of New York wireless project investment of $500 to $550 million over 5 years

• Dividends - Launch rate of $280 million (20%+ payout ratio)

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* See Appendix for Calculation of ROIC

Solid Balance Sheet and Capital StructureSolid Balance Sheet and Capital Structure

• Primary Working Capital– A/R Days – 70 – Inventory Days – 80– Accounts Payable Days – 48

• ROIC – FY2006 *– w/ Goodwill – 8.4%– w/o Goodwill – 16.1%– Approx. 40% of total assets

are Intangibles and Tax Assets

• Total debt of $3.7 billion, Net debt $3.0 billion– Debt to Capital – 25%– Debt to Equity – 33%– Investment Grade Credit

Ratings

• Primary Working Capital– A/R Days – 70 – Inventory Days – 80– Accounts Payable Days – 48

• ROIC – FY2006 *– w/ Goodwill – 8.4%– w/o Goodwill – 16.1%– Approx. 40% of total assets

are Intangibles and Tax Assets

• Total debt of $3.7 billion, Net debt $3.0 billion– Debt to Capital – 25%– Debt to Equity – 33%– Investment Grade Credit

Ratings

11.4Shareholder's Equity23.3Total Liabilities & Shareholder's Equity

11.9 Total Liabilities2.0 Other0.6 Pension Liabilities4.3 Other Current Liabilities1.3 Accounts Payable3.7 Debt

23.3 Total Assets4.4 Other1.7 Tax Assets8.2 Goodwill & Intangibles3.5 PP&E2.2 Inventory2.6 Accounts receivable

$0.7Cash

March 2007 Proforma

SummarySummary

• Organic revenue growth of 5-7%

• Operating margins above 15%

• Free cash flow approximately equal to net income

• Organic revenue growth of 5-7%

• Operating margins above 15%

• Free cash flow approximately equal to net income

3-Year Objectives33--Year ObjectivesYear Objectives

* Before dividends and cash outflows to buildthe State of New York wireless network

• Solid long-term organic growth• Steady margin improvement• Reduce tax rate by 200 to 300 bps• Continued strong cash flow

enables:– Fund innovation– Accelerate productivity

improvements– Target strategic acquisitions– Return capital to shareholders

• Solid long-term organic growth• Steady margin improvement• Reduce tax rate by 200 to 300 bps• Continued strong cash flow

enables:– Fund innovation– Accelerate productivity

improvements– Target strategic acquisitions– Return capital to shareholders

17



73%

NetworkSolutions

14%

Other6%

WirelessSystems

7%





81%

NetworkSolutions

15%

Other(1.0)%

WirelessSystems

5%

Electronic ComponentsElectronic Components

June 19, 2007June 19, 2007

Tom LynchChief Executive OfficerTom LynchChief Executive Officer

18

Sales by IndustrySales by Industry Sales by ProductSales by Product

39%

13%9%

16% 2%

5%

4%

3%2%

7%

Automotive

Computer

Telecommunications

Household Appliance

Industrial Machinery

Aerospace & Defense

Instrumentation

Consumer Electronics

Commercial Bldg & Equip

Other

39%

13%9%

16% 2%

5%

4%

3%2%

7%

Automotive

Computer

Telecommunications

Household Appliance


Aerospace & Defense

Instrumentation

Consumer Electronics

Commercial Bldg & Equip

Other

Electronic Components OverviewElectronic Components Overview

• Global leader in passive components with significant market position in all segments

• 68% of sales from connectors• Sales of $9.4 billion and operating income of $1.4 billion in 2006

• Global leader in passive components with significant market position in all segments

• 68% of sales from connectors• Sales of $9.4 billion and operating income of $1.4 billion in 2006

68%

8%

5%

7%

3%2%

2%1%

4%

Connectors/ Cable Assemblies

Relays

Circuit Protection

Touch Screens

Wire & Cable

Heat Shrink Tubing

Application Tooling

Fiber Optics

Other

68%

8%

5%

7%

3%2%

2%1%

4%

Connectors/ Cable Assemblies

Relays

Circuit Protection

Touch Screens

Wire & Cable

Heat Shrink Tubing

Application Tooling

Fiber Optics

Other

Asia ex-China18%

China14%

EMEA36%Americas

32%

Asia ex-China18%

China14%

EMEA36%Americas

32%

Sales by GeographySales by Geography

Asia Total32%

Strong Global PresenceStrong Global Presence

• Balanced geographic revenue distribution

• Uniquely positioned to service global customers

– 4,000 salespeople– Resident engineers at

76 customers around the world– Design centers in every

major region

• Low-cost manufacturing base– 33 facilities worldwide

• Well established in emerging markets

• Balanced geographic revenue distribution

• Uniquely positioned to service global customers

– 4,000 salespeople– Resident engineers at

76 customers around the world– Design centers in every

major region

• Low-cost manufacturing base– 33 facilities worldwide

• Well established in emerging markets

19

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

20032006

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

20032006

Connector Market Size and Growth Rates*Connector Market Size and Growth Rates*

Source: Bishop & AssociatesPercentages shown are 3 year CAGR

9.2%

11.9%

10.6%15.6%

8.8%15.9%

12.7%

13.3%

14.7%

Solid growth in all end marketsSolid growth in all end markets

Total Connector Market = $40 Billion

Automotive Computer Telecom/ Datacom


Military & Aerospace

Consumer Transportation Non Auto

Medical Other


• Improve margins by streamlining operations andimproving productivity– Footprint reduction– Purchasing scale– Six Sigma and Lean expansion– Logistics simplification

• Enhance leadership position in emerging markets– China, Eastern Europe, India

• Accelerate growth in under-penetrated markets– Aerospace & defense– Mobile phones– Consumer electronics

• Focus the product portfolio

• Improve margins by streamlining operations andimproving productivity– Footprint reduction– Purchasing scale– Six Sigma and Lean expansion– Logistics simplification

• Enhance leadership position in emerging markets– China, Eastern Europe, India

• Accelerate growth in under-penetrated markets– Aerospace & defense– Mobile phones– Consumer electronics

• Focus the product portfolio

– Industrial machinery– Medical– Industrial machinery– Medical

20

• Electronic content growth in vehicles– Advanced driver assistance and safety systems– Communications and infotainment systems– Replacement of mechanical systems

(braking, shifting, steering)

• Production migration to Eastern Europe and China• Share gains by European and Japanese

manufacturers; local manufacturers gaining share in China

• Electronic content growth in vehicles– Advanced driver assistance and safety systems– Communications and infotainment systems– Replacement of mechanical systems

(braking, shifting, steering)

• Production migration to Eastern Europe and China• Share gains by European and Japanese

manufacturers; local manufacturers gaining share in China

EMEA53%

EMEA53% North

America21%

North America

21%

Asia Pacific(excl China)

18%


18%

China5%

China5%

South America

3%

South America

3%

Note:“Detroit 3”

17%

Note:“Detroit 3”

17%

• Enhance innovation leadership• Continue share gains in Asia• Strengthen engineering and manufacturing

resources in emerging markets• Improve margins by streamlining operations and

improving productivity

• Enhance innovation leadership• Continue share gains in Asia• Strengthen engineering and manufacturing

resources in emerging markets• Improve margins by streamlining operations and

improving productivity

Key Market - AutomotiveKey Market - Automotive 2006 Sales $3.7 billion2006 Sales $3.7 billion

Market Trends / Growth DriversMarket Trends / Growth Drivers



• Miniaturization and higher data speed requirements• Standardization / commoditization of

low-cost products • Very competitive market

• Miniaturization and higher data speed requirements• Standardization / commoditization of

low-cost products • Very competitive market

• Optimize product portfolio and be more selective on low margin products

• Continue focus on innovation to maximize new product profitability


• Be more active in standards committees

• Optimize product portfolio and be more selective on low margin products

• Continue focus on innovation to maximize new product profitability


• Be more active in standards committees

Key Market - ComputerKey Market - Computer

Market Trends / Growth DriversMarket Trends / Growth Drivers Strategic PrioritiesStrategic Priorities

EMEA9%

EMEA9%Americas

18%Americas

18%


44%


44%China29%

China29%


2006 Sales $1.2 billion2006 Sales $1.2 billion

21

* Management estimates of addressable market for connectors, wire & cable and relays; actual market size could differ materially

Target Market*: $4.4 billionTE 2006 Sales: $0.5 billionEstimated Market Share: 11%’03-’06 TE CAGR 7%

Target Market*: $4.4 billionTE 2006 Sales: $0.5 billionEstimated Market Share: 11%’03-’06 TE CAGR 7%

Accelerate Growth in Underpenetrated Markets Aerospace & DefenseAccelerate Growth in Underpenetrated Markets Aerospace & Defense

• In the midst of a strong cycle• Attractive profitability• Stable manufacturing base – minimal migration• Trend toward higher speeds,

smaller and lighter interconnects

• In the midst of a strong cycle• Attractive profitability• Stable manufacturing base – minimal migration• Trend toward higher speeds,

smaller and lighter interconnects

• Expand product portfolio with internal development and/ or acquisitions

• Improve supply chain• Streamline and simplify operations

• Expand product portfolio with internal development and/ or acquisitions

• Improve supply chain• Streamline and simplify operations

Market DynamicsMarket Dynamics StrategyStrategy

* Management estimates of addressable market for connectors, cable assemblies, antennas; actual market size could differ materially

Mobile PhonesTarget Market*: $1.8 billionTE 2006 Sales: $0.2 billionEstimated Market Share: 11%’03-’06 TE CAGR 42%

Consumer ElectronicsTarget Market*: $1.6 billionTE 2006 Sales: $0.2 billionEstimated Market Share: 10%’03-’06 TE CAGR 16%

Mobile PhonesTarget Market*: $1.8 billionTE 2006 Sales: $0.2 billionEstimated Market Share: 11%’03-’06 TE CAGR 42%

Consumer ElectronicsTarget Market*: $1.6 billionTE 2006 Sales: $0.2 billionEstimated Market Share: 10%’03-’06 TE CAGR 16%

Accelerate Growth in Underpenetrated Markets Mobile Phones & Consumer ElectronicsAccelerate Growth in Underpenetrated Markets Mobile Phones & Consumer Electronics

• Long-term growth expected at 7-10% per year

• New features drive increased electronic component content

• Requirements for smaller, higher density, higher speed and performance

• Long-term growth expected at 7-10% per year

• New features drive increased electronic component content

• Requirements for smaller, higher density, higher speed and performance

• Focus on top 5 players:– Increase resident engineers– Add salespeople

• Expand mobile phone product portfolio• Continue to expand strong China presence• Leverage global customer relationships

• Focus on top 5 players:– Increase resident engineers– Add salespeople

• Expand mobile phone product portfolio• Continue to expand strong China presence• Leverage global customer relationships

Market DynamicsMarket Dynamics StrategyStrategy

22

Example – Top 5 Mobile Phone ManufacturerExample – Top 5 Mobile Phone Manufacturer

• Expanded resident engineering sites to 5 locations close to customers’ R&D centers, added 22 engineers

• Expanded product portfolio to non-connector areas like Antenna(MID, FPC, Stamping), Cable Assembly

• Significantly increase market share in top selling model

• Expanded resident engineering sites to 5 locations close to customers’ R&D centers, added 22 engineers

• Expanded product portfolio to non-connector areas like Antenna(MID, FPC, Stamping), Cable Assembly

• Significantly increase market share in top selling model

USB Data CableAssy

Full Clip SIMConnector


MID antenna MID antenna MID antenna

SF1608/2411 SF1608/2411 SF1608/2411/3014LF

SPC 3P SMT SPC 5P R/A H=2.75 Leaf Connector 5p

2005 2006 2007

Total Connector Potential / Unit $3.64 $3.61 $3.73

Tyco Electronics Content / Unit $0.98 $1.47 $2.40

USB Data CableAssy



MID antenna MID antenna MID antenna

SF1608/2411 SF1608/2411 SF1608/2411/3014LF

SPC 3P SMT SPC 5P R/A H=2.75 Leaf Connector 5p

2005 2006 2007

Total Connector Potential / Unit $3.64 $3.61 $3.73

Tyco Electronics Content / Unit $0.98 $1.47 $2.40



73%

NetworkSolutions

14%

Other6%

WirelessSystems

7%





81%

NetworkSolutions

15%

Other(1.0)%

WirelessSystems

5%

23

Network SolutionsNetwork Solutions

June 19, 2007June 19, 2007

Alan ClarkePresidentAlan ClarkePresident

Sales by IndustrySales by Industry

Sales by ProductSales by Product

Communication Service Providers31%

Communication Service Providers31%

Building Networks22%

Building Networks22%

Heat Shrink Tubing

23%

Heat Shrink Tubing

23%Wire & Cable 9%Wire & Cable 9%

Racks & Panels 8%Racks & Panels 8%

Fiber Optics 12%Fiber Optics 12%

Other 5%

Other 5%

Connectors/Cable Assemblies

43%

Connectors/Cable Assemblies

43%


EMEA55%

EMEA55%

Americas30%

Americas30%

Asia Pacific15%

Asia Pacific15%

Energy Systems47%

Energy Systems47%

Network Solutions OverviewNetwork Solutions Overview

• Global leader in infrastructure components and solutions for the energy, communication service provider, and building networks markets

• Sales of $1.7 billion and operating income of $0.3 billion in 2006

• Global leader in infrastructure components and solutions for the energy, communication service provider, and building networks markets

• Sales of $1.7 billion and operating income of $0.3 billion in 2006

24

Electrical Network• Generation • Transmission • Distribution

Energy Systems Served MarketEnergy Systems Served Market

OHVT-145C145kV outdoor termination

CSJA24kV cold shrink joint

GelportLow Voltage submersible connector

LumawiseIntelligent lighting system

Communications Service Provider Served MarketCommunications Service Provider Served Market

FOSC 450Gel-Sealed Fiber

Optic Splice Closure

FTerm UMTFiber Aerial TerminalDT Cabinet

Fiber Deployment Cabinet

BT21 CTest Access Shelf

25

Building Networks Served MarketBuilding Networks Served Market

Patch Cords

Patch Panels

SystemCables

Work AreaOutlets

10 Gb/sConnectivity

InfrastructureManagement

CATVCabling

• Broadband rollouts by Telco’s and MSO’s• Build-out of fiber – FTTx• Demand for products that reduce construction

and maintenance costs• Emerging markets – infrastructure build-out

with low-cost products

• Broadband rollouts by Telco’s and MSO’s• Build-out of fiber – FTTx• Demand for products that reduce construction

and maintenance costs• Emerging markets – infrastructure build-out

with low-cost products

Energy Systems • Emerging markets – infrastructure build-out with low-cost, simple-to-install products

• Mature markets – aging grid, deferred maintenance

• Trend toward higher voltages

• Emerging markets – infrastructure build-out with low-cost, simple-to-install products

• Mature markets – aging grid, deferred maintenance

• Trend toward higher voltages

• Demand for increased network speed, capacity and flexibility

• Trend toward higher performance cabling systems incorporating intelligent cable management

• Integration of voice, data, security and building control functions in cabling network solutions

• Demand for increased network speed, capacity and flexibility

• Trend toward higher performance cabling systems incorporating intelligent cable management

• Integration of voice, data, security and building control functions in cabling network solutions

Market Trends / Growth DriversMarket Trends / Growth Drivers Market Size* / Growth Rate*Market Size* / Growth Rate*

* Management estimates; actual market size and growth rates could differ materially

• Market size $3.5 billion• Market growth rates

– Copper (2%)– Fiber 15%

• Market size $3.5 billion• Market growth rates

– Copper (2%)– Fiber 15%

• Market size $3.8 billion• Global commercial construction

market growing ~5%

• Market size $3.8 billion• Global commercial construction

market growing ~5%

• Developing market size $1.9 billion, growing at 10%

• Mature market size $4.9 billion, growing at 4%

• Developing market size $1.9 billion, growing at 10%

• Mature market size $4.9 billion, growing at 4%

Industry Trends / Market DriversIndustry Trends / Market Drivers

Communication Service Providers

Building Networks

26


• Accelerate growth through innovation– Energy Systems – higher performance / lower installation-cost joints,

terminations, connectors, insulators and arrestors– Service Provider – last mile fiber optics network systems and components– Building Networks

• Extend network cabling performance to 10g and higher

• Integrated software and hardware to extend capabilities of Ethernet networks

• Enhance market position in emerging markets– Expand sales, product development and product management

capabilities in China, India and Eastern Europe

• Streamline operations• Focus the product portfolio

• Accelerate growth through innovation– Energy Systems – higher performance / lower installation-cost joints,

terminations, connectors, insulators and arrestors– Service Provider – last mile fiber optics network systems and components– Building Networks

• Extend network cabling performance to 10g and higher

• Integrated software and hardware to extend capabilities of Ethernet networks

• Enhance market position in emerging markets– Expand sales, product development and product management

capabilities in China, India and Eastern Europe

• Streamline operations• Focus the product portfolio



73%

NetworkSolutions

14%

Other6%

WirelessSystems

7%





81%

NetworkSolutions

15%

Other(1.0)%

WirelessSystems

5%

27

Wireless SystemsWireless Systems

June 19, 2007June 19, 2007

Chuck DoughertyPresidentChuck DoughertyPresident

Sales by Served MarketSales by Served Market Sales by GeographySales by Geography

EMEA10%

Americas80%

Asia Pacific10%

Wireless Systems OverviewWireless Systems Overview

• A leading innovator of wireless technology for:– Critical communications systems and equipment– RF / microwave semiconductors, components and subsystems

for commercial applications– Components and subsystems for defense applications

• Sales of $0.9 billion in 2006

• A leading innovator of wireless technology for:– Critical communications systems and equipment– RF / microwave semiconductors, components and subsystems

for commercial applications– Components and subsystems for defense applications

• Sales of $0.9 billion in 2006

Aerospace & Defense

29%

Commercial Products

28%Wireless Networks

43%

28

• Products range from components to subsystems and small systems, including sensors, antennas, power transistors, weapons guidance systems, and IED jamming devices

• Long-term participation on major programs as subcontractor to Prime Contractors

• Products range from components to subsystems and small systems, including sensors, antennas, power transistors, weapons guidance systems, and IED jamming devices

• Long-term participation on major programs as subcontractor to Prime Contractors

Wireless Networks • IP-based critical communications systems, including infrastructureand terminals for public safety, utility and federal markets

• Leader in technology/ product innovation• Awarded largest US public safety contract

(NY State)

• IP-based critical communications systems, including infrastructureand terminals for public safety, utility and federal markets

• Leader in technology/ product innovation• Awarded largest US public safety contract

(NY State)

• RF-based semiconductors (gallium arsenide), components and subassembly solutions

• Serves communications infrastructure, automotive and RFID markets

• RF-based semiconductors (gallium arsenide), components and subassembly solutions

• Serves communications infrastructure, automotive and RFID markets

Business DescriptionBusiness Description Market Trends / DriversMarket Trends / Drivers

* Management estimates; actual market size and growth rates could differ materially

• Increased Department of Defense spending for Force Protection, including IED defeat and Combat ID

• Prime contractors continue as integrators

• “Modest” systems funded seeking faster time to market

• Increased Department of Defense spending for Force Protection, including IED defeat and Combat ID

• Prime contractors continue as integrators

• “Modest” systems funded seeking faster time to market

• Proliferation of wireless devices• Convergence of RF & digital signal

processing• Integration and miniaturization

• Proliferation of wireless devices• Convergence of RF & digital signal

processing• Integration and miniaturization

• ~$6 billion global market growing 5-10%*

• Federal, state and local spending on safety and security

• Increased focus on public safety system interoperability

• ~$6 billion global market growing 5-10%*

• Federal, state and local spending on safety and security

• Increased focus on public safety system interoperability

Industry Trends / Market DriversIndustry Trends / Market Drivers

Aerospace & Defense Solutions

Commercial Products

• Private wireless networks for mission-critical public safety applications

– Infrastructure (network, system)– Equipment (mobile/ portable radios, etc.)– Service / maintenance

• Served markets:– Public safety– Homeland Security– U.S. Federal– Utilities– Transportation and transit

• Other applications:– Broadband high-speed data– Network interoperability

• Private wireless networks for mission-critical public safety applications

– Infrastructure (network, system)– Equipment (mobile/ portable radios, etc.)– Service / maintenance

• Served markets:– Public safety– Homeland Security– U.S. Federal– Utilities– Transportation and transit

• Other applications:– Broadband high-speed data– Network interoperability

Wireless NetworksWireless Networks

29

The Tyco Electronics VIDA Wireless NetworkThe Tyco Electronics VIDA Wireless Network

• Integrated Wireless Network (IWN)– US Federal national network– Partnering with General Dynamics– Significant revenue opportunity

• Integrated Wireless Network (IWN)– US Federal national network– Partnering with General Dynamics– Significant revenue opportunity

Key Programs and Focused Growth AreasKey Programs and Focused Growth Areas

• New York Statewide Wireless Network– Largest public safety contract in North America:

$2B over 20 years, including network maintenance– “Hybrid” network model – for low- and high-density regions;

extremely flexible– Future-ready for new technologies – Broadband, WiMAX,

High-Speed Data– Opportunity to add counties / municipalities onto network

• New York Statewide Wireless Network– Largest public safety contract in North America:

$2B over 20 years, including network maintenance– “Hybrid” network model – for low- and high-density regions;

extremely flexible– Future-ready for new technologies – Broadband, WiMAX,

High-Speed Data– Opportunity to add counties / municipalities onto network

• Commonwealth of Pennsylvania– Statewide system: STARNET; steady increase in users– Supports all state public safety and public service agencies; opportunity

to add counties onto network

• Commonwealth of Pennsylvania– Statewide system: STARNET; steady increase in users– Supports all state public safety and public service agencies; opportunity

to add counties onto network

30


• Accelerate growth in public safety LMR business– Execute on State of New York statewide system – Increase market share in North America– Expand international presence– Develop commercial adjacencies leveraging

technology innovation

• Focus portfolio on key high-growth business segments

• Accelerate growth in public safety LMR business– Execute on State of New York statewide system – Increase market share in North America– Expand international presence– Develop commercial adjacencies leveraging

technology innovation

• Focus portfolio on key high-growth business segments

SummarySummary

June 19, 2007June 19, 2007

Tom LynchChief Executive OfficerTom LynchChief Executive Officer

31

A solid foundation with significant opportunityA solid foundation with significant opportunity

Tyco Electronics SummaryTyco Electronics Summary





AppendixAppendix

32

Operating Income ReconciliationOperating Income ReconciliationAppendix

The company has presented its operating income on an adjusted basis that excludes gain/losses related to divestitures and goodwill impairments. The company utilizes adjusted operating income to assess core operating performance and to provide insight to management in evaluating operating plan execution and underlying market conditions. It is also a significant component in the company’s incentive compensation plans. Adjusted operating income is a useful measure for investors because it better reflects the company’s underlying operating results, trends and the comparability of these results between periods. The difference between adjusted operating income and operating income (the most comparable GAAP measure) consists of the impact of (gains)/losses related to divestitures and goodwill impairments that may mask the underlying operating results and/or business trends. The limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease the company’s reported operating income. This limitation is best addressed by using adjusted operating income in combination with operating income (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease on reported results.

The company has presented its operating income on an adjusted basis that excludes gain/losses related to divestitures and goodwill impairments. The company utilizes adjusted operating income to assess core operating performance and to provide insight to management in evaluating operating plan execution and underlying market conditions. It is also a significant component in the company’s incentive compensation plans. Adjusted operating income is a useful measure for investors because it better reflects the company’s underlying operating results, trends and the comparability of these results between periods. The difference between adjusted operating income and operating income (the most comparable GAAP measure) consists of the impact of (gains)/losses related to divestitures and goodwill impairments that may mask the underlying operating results and/or business trends. The limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease the company’s reported operating income. This limitation is best addressed by using adjusted operating income in combination with operating income (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease on reported results.

20042004 20052005 200620066 mo 6 mo 20072007

GAAP Operating IncomeGAAP Operating Income $1,619$1,619 $1,970$1,970 $1,409$1,409 $789$789

Goodwill ImpairmentGoodwill Impairment -- -- $316$316 --

(Gain) / Loss on Divestitures(Gain) / Loss on Divestitures -- (301)(301) -- --

Adjusted Operating IncomeAdjusted Operating Income $1,619$1,619 $1,669$1,669 $1,725$1,725 $789$789

GAAP Operating MarginGAAP Operating Margin

Adjusted Operating MarginAdjusted Operating Margin 14.6%14.6% 14.0%14.0% 13.5%13.5% 11.8%11.8%

14.6%14.6% 16.6%16.6% 11.0%11.0% 11.8%11.8%

Revenue Reconciliation - 2006Revenue Reconciliation - 2006Appendix

$ 11,8909.4%$ 1,123$ (18)$ (183)7.8%$ 2,812Total Net Revenue73615.6%115(29)(10)10.3%812Other8710.1%120.3%874Wireless Systems

1,52615.6%238(24)14.0%1,740Network Solutions$ 8,7578.8%$ 769$ 11$ (151)7.2%$ 9,386Electronic Components

Net Revenue FY2005

Organic Revenue Growth

Acquisition / Divestiture

Foreign CurrencyNet Revenue

FY2006

Organic net sales growth, which is included in the discussion below, is a non-GAAP financial measure. The difference between reported net sales growth (the most comparable GAAP measure) and organic net sales growth (the non-GAAP measure) consists of the impact from foreign currency exchange rates, acquisitions, and divestitures. Organic net sales growth is a useful measure which we use to measure the underlying results and trends in our business. 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.

We believe organic net sales growth provides useful information to investors because it reflects the underlying growth from the ongoing activities of our business. Furthermore, it provides investors with a view of our operations from management's perspective. We use organic net sales growth to monitor and evaluate performance, as it is an important measure of the underlying results of our operations. Management uses organic net sales growth together with GAAP measures such as net sales growth and operating income in its decision making processes related to the operations of our reporting segments and our overall company. We believe that investors benefit from having access to the same financial measures that management uses in evaluating operations. The discussion and analysis of organic net sales growth in Results of Operations below utilizes organic net sales growth as management does internally. Because organic net sales growth calculations may vary among other companies, organic net sales growth amounts presented below may not be comparable with similarly titled measures of other companies. Organic net sales growth is a non-GAAP financial measure that is not meant to be considered in isolation or as a substitute for GAAP measures. The limitation of this measure is that it excludes items that have an impact on our net sales. This limitation is best addressed by using net sales growth in combination with our U.S. GAAP net sales.

33




$ 11,0994.5%$ 500$$ 2917.1%$ 11,890Total Net Revenue7201.1%882.2%736Other8354.0%3334.3%871Wireless Systems

1,32411.7%1554715.3%1,526Network Solutions$ 8,2203.7%$ 304$$ 2336.5%$ 8,757Electronic Components

Net Revenue FY2004




FY2005




$ 9,7857.9%$ 768$$ 54613.4%$ 11,099Total Net Revenue719-1.2%(9)100.1%720Other7727.2%5678.2%835Wireless Systems

1,1745.4%638712.8%1,324Network Solutions$ 7,1209.2%$ 658$$ 44215.4%$ 8,220Electronic Components

Net Revenue FY2003




FY2004

34

Free Cash FlowFree Cash FlowAppendix

Free cash flow (FCF) is a useful measure of the company’s cash which is free from any significant existing obligation. The difference between cash flows from operating activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash outflows that the company believes are useful to identify. FCF permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation. It is also a significant component in the company’s incentive compensation plans. The difference reflects the impact from:net capital expenditures, voluntary pension contributions.

The impact from voluntary pension contributions is added or subtracted from the GAAP measure because this activity is driven by economic financing decisions rather than operating activity. Capital expenditures are subtracted because they represent long-term commitments.

The limitation associated with using FCF is that it subtracts cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and that therefore may imply that there is less or more cash that is available for the company's programs than the most comparable GAAP measure. This limitation is best addressed by using FCF in combination with the GAAP cash flow numbers.

FCF as presented herein may not be comparable to similarly titled measures reported by other companies. The measure should be used in conjunction with other GAAP financial measures. Investors are urged to read the company’s financial statements as filed with the Securities and ExchangeCommission, as well as the accompanying tables to this press release that show all the elements of the GAAP measures of Cash Flows from Operating Activities, Cash Flows from Investing Activities, Cash Flows from Financing Activities and a reconciliation of the company's total cash and cash equivalents for the period. See the accompanying tables to this press release for a cash flow statement presented in accordance with GAAP and a reconciliation presenting the components of FCF.

Free cash flow (FCF) is a useful measure of the company’s cash which is free from any significant existing obligation. The difference between cash flows from operating activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash outflows that the company believes are useful to identify. FCF permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation. It is also a significant component in the company’s incentive compensation plans. The difference reflects the impact from:net capital expenditures, voluntary pension contributions.

The impact from voluntary pension contributions is added or subtracted from the GAAP measure because this activity is driven by economic financing decisions rather than operating activity. Capital expenditures are subtracted because they represent long-term commitments.

The limitation associated with using FCF is that it subtracts cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and that therefore may imply that there is less or more cash that is available for the company's programs than the most comparable GAAP measure. This limitation is best addressed by using FCF in combination with the GAAP cash flow numbers.

FCF as presented herein may not be comparable to similarly titled measures reported by other companies. The measure should be used in conjunction with other GAAP financial measures. Investors are urged to read the company’s financial statements as filed with the Securities and ExchangeCommission, as well as the accompanying tables to this press release that show all the elements of the GAAP measures of Cash Flows from Operating Activities, Cash Flows from Investing Activities, Cash Flows from Financing Activities and a reconciliation of the company's total cash and cash equivalents for the period. See the accompanying tables to this press release for a cash flow statement presented in accordance with GAAP and a reconciliation presenting the components of FCF.

20042004 20052005 20062006

Cash from Operating ActivitiesCash from Operating Activities 1,2181,218 1,5241,524 1,6701,670Less: Capital Expenditures, netLess: Capital Expenditures, net (380)(380) (448)(448) (548)(548)Less: Voluntary Pension ContributionsLess: Voluntary Pension Contributions 230230 2424 --

Free Cash FlowFree Cash Flow 1,0681,068 1,1001,100 1,1221,122

Return on Invested CapitalReturn on Invested CapitalAppendix

20042004 20052005 20062006Adjusted OIAdjusted OI 1,6191,619 1,6691,669 $1,725$1,725

Interest Expense (net)Interest Expense (net) (311)(311) (250)(250) (208)(208)

Adjusted Pre-tax IncomeAdjusted Pre-tax Income 1,3081,308 1,4191,419 1,5171,517

Cash TaxesCash Taxes (166)(166) (297)(297) (277)(277)

Adjusted Net IncomeAdjusted Net Income 1,1421,142 1,1221,122 1,2401,240

DebtDebt 5,9555,955 4,5114,511 3,6623,662EquityEquity 8,2428,242 9,8429,842 11,16011,160

Invested CapitalInvested Capital 14,19714,197 14,35314,353 14,82214,822

ROICROIC 8.0%8.0% 7.8%7.8% 8.4%8.4%

GoodwillGoodwill 7,4617,461 7,4237,423 7,1357,135

ROIC excluding GoodwillROIC excluding Goodwill 17.0%17.0% 16.2%16.2% 16.1%16.1%

35

Cash Tax Rate ReconciliationCash Tax Rate ReconciliationAppendix

20042004 20052005 20062006GAAP Operating IncomeGAAP Operating Income $1,619$1,619 $1,970$1,970 $1,409$1,409

Interest Expense (net)Interest Expense (net) (311)(311) (250)(250) (208)(208)

Other Expense (net)Other Expense (net) (102)(102) (365)(365) --

Pre-Tax IncomePre-Tax Income $1,206$1,206 $1,355$1,355 $1,201$1,201

Cash Taxes PaidCash Taxes Paid

Cash Tax RateCash Tax Rate 14%14% 22%22% 23%23%

(166)(166) (297)(297) (277)(277)

Documents

Tyco Electronics Investor Meeting