Tyco Electronics Business Report FY2007

Business Highlights

Financial Overview
(in million
FY2007 FY2006 Rate of


Net Sales 13,460 12,300 9.4% -Strong growth in its international markets coupled with a very strong performance in Undersea Telecommunications segment.

-Net sales by end market :
Automotive 30%
Income from
753 1,448 (48.0%) Adversely impacted by charges primarily related to a class action settelement, footprint restructuring, and its separation from Tyco International

Net income

(554) 1,193 - -
Electronic Components
Net Sales 10,111 9,386 7.7% Strong growth in most of its major international markets, coupled with market share gains in mobile phones and consumer electronics, was partially offset by weakness in U.S housing and automotive markets.

Net sales by end market :
Automotive : 39%
(FY2006 : 38%)
Income from
1,339 1,404 (4.6%) -
Wireless Systems
Net Sales 887 874 1.5% Growth in its public safety and automotive markets offset declines in demand for communications infrastructure active components.
Income from
77 (239) - -

- In FY2007, the Company generated 1.6 billion USD of net sales from China, 937 million USD of net sales in Eastern Europe, and 168 million USD of net sales in India. The Company has been increasing its sales and marketing, engineering, and manufacturing resources in these emerging regions.

Separation from Tyco International
Effective June 29, 2007, the Company was officially separated from Tyco International and bacame an independent company.

The divestiture of Power Systems business was authorized during FY2007.


R&D Structure
The Company employs over 8,000 engineers dedicated to product research, development, and engineering.

R&D Expenditure
(in million USD) FY2007 FY2006 FY2005
Overall 520 467 424
- Electronic Components 341 302 286
- Wireless Systems 99 92 82
- Others 80 73 56

R&D Activities
The Company seeks to continue to increase the percentage of its annual net sales from products launched within the previous year. In FY2007, the Company derived 15% of its net sales from new products launched within the previous year.

Investment Activities

Capital Expenditure

(USD in million) FY2007 FY2006 FY2005
Amount 892 555 476

The Company plans to continue to simplify its global manufacturing footprint, both by migrating facilities from high cost to low cost countries and by consolidating within countries.
With respect to its manfactutring rationalization plan, it expects to incur restructuring charges of approximately 130 million USD in FY2008 and up to 250 million USD from FY2009 through 2010.