TE Connectivity Ltd. (Formerly Tyco Electronics Ltd.) Business Report FY ended Sep. 2020

Financial Overview

(in million USD)

	FY ended Sep. 25, 2020	FY ended Sep. 27, 2019	Rate of change (%)	Factors
Overall
Net Sales	12,172	13,448	(9.5)	1)
Operating Income	537	1,978	(72.9)	-
Transportation Solutions Segment
Net Sales	6,845	7,821	(12.5)	2)
Operating Income	(93)	1,226		-

Factors
1) Net Sales
-The Company’s net sales in the fiscal year ended September 25, 2020 decreased by 9.5% to USD 12,172 million. The decrease in sales was primarily due to declines across all of the Company’s operating segments, especially in the Transportation Solutions segment. The Covid-19 pandemic also contributed to the decrease in sales. The Company’s organic sales decreased by 9.9% from the previous year.

2) Transportation Solutions segment sales
-Net sales in the Transportation Solutions segment decreased by 12.5% in the fiscal year ending September 25, 2020 to USD 6,845 million. Organic sales in the segment declined by 13.5%, while foreign currency exchange effects further decreased by sales by 0.9%. These declines were partially offset by a gain of 1.9% from acquisitions. In the automotive end market, the Company’s organic net sales decreased due to a decline in global automotive production, through the Company did achieve content gains in the market, partially offsetting some of the losses.

Acquisitions

-The Company completed its public takeover of First Sensor AG. The Company now holds 71.87% of First Sensor’s total shares. First Sensor is a global developer and manufacturer of sensor technology with expertise in chip design, production, and microelectronic packaging. First Sensor develops and produces standard and customer-specific solutions in photonics, pressure and advanced electronics. With the takeover, the Company will be able to offer an even broader product base, including innovative, market-leading sensors, connectors and systems plus best-in-class capabilities, to support its growth strategy. First Sensor also provides a market expansion opportunity with optical sensing applications for industrial, heavy truck and automotive applications. (From a press release on March 12, 2020)

R&D Expenditure

(in million USD)

	FY ended Sep. 25, 2020	FY ended Sep. 27, 2019	FY ended Sep. 28, 2018
Overall	539	572	606

Product Development

TSYS03 micro-digital temperature sensor
-The Company’s subsidiary, Tyco Electronics Japan G.K., released a new TSYS03 micro-digital temperature sensor. The TSYS03 has two models, a compact model (2.5 mm x 2.5 mm) and a small model (1.5 mm x 1.5 mm). It features strong low-temperature reactivity and quick temperature readings. Tyco Electronics Japan has also increased the maximum power supply voltage to 5.5 volts. Customers will be able to add multiple I2C synchronous communication addresses. The company expects the TSYS03 to be used for automotive, industrial, and medical applications. (From an article in the Nikkan Jidosha Shimbun on June 30, 2020)

Capital Expenditure

(in million USD)

	FY ended Sep. 25, 2020	FY ended Sep. 27, 2019	FY ended Sep. 28, 2018
Overall	560	749	935
-Transportation Solutions	365	530	711

Investments outside Switzerland

<Brazil>
-The Company invested USD 4 million to begin producing four new terminal families at its Bragança Paulista facility and for the local Brazilian market and for foreign markets, including the U.S. The terminals will be used for light and heavy vehicles in the automotive industry. The Bragança Paulista facility was prepared with new machinery and tools imported from Europe, including five progressive dies and four fast presses with peripherals such as laser welding and vision systems. At the end of 2019, the Company opened an on-site laboratory to reinforce local development plans and the production of automotive solutions. (From multiple sources on July 28, 2020)