Financial Overview

(in million USD)

	FY2009	FY2008	Rate of change (%)	Factors
Overall
Net Sales	10,256	14,373	(28.6)	1)
Income from operations	(3,474)	1,663	-
Net income	(3,256)	1,782	-
Electronic Components Segment
Net Sales	5,961	9,277	(35.7)	2)
Income from operations	(3,716)	978	-	-

Factors
1)
<Key Emerging Markets>
-The Company generated $1.4 billion of net sales in China, $0.7 billion of net sales in Eastern Europe, and $0.2 billion of net sales in each of India and Brazil.

2)
Electronic Components Segment
-The weakening of certain foreign currencies negatively affected net sales by $287 million, or 3.1%, in fiscal 2009 as compared to fiscal 2008.

-In the automotive market, organic net sales decreased 33.1% in fiscal 2009 as compared to fiscal 2008. The decrease was broad-based and resulted from declines of 36.8% in North America region, 36.9% in the Europe/Middle East/Africa region, and 25.6% in the Asia-Pacific region that were driven by reductions in production by automotive manufacturers as well as inventory reductions throughout the automotive supply chain.

-Sales at the automotive market accounted for 46% of the Electronic Components Segment.

Business Restructuring

<China>
-The Company announced that the Company will transfer all the operations for automotive relay production in China from its Shenzhen Plant at the Shenzhen Special Economic Zone, Guangdong Province to its Suzhou Plant, Jiangsu Province by the end of 2009. Although the Suzhou Plant is an automotive exclusive plant which manufactures connectors, sensors and other components for automobiles, relays for all the industries have been produced only at the Shenzhen Plant and delivered to each plant from there. The Company has decided to establish the Suzhou Plant as 100% exclusive to the auto industry so that the distribution cost between Shenzhen and Suzhou should be cut and its automotive products will be priced lower. (From an article in the Nikkan Jidosha Shimbun on Mar. 13, 2009)

<Japan>
-The Company announced that the Company will consolidate four Japan-based subsidiaries, including Tyco Electronics AMP, the largest supplier of connectors for automobiles, to form a new company "Tyco Electronics Japan LLC (TE Japan)" as of September 27, 2009. Consolidation is aimed at improving efficiency in operations and enhancing corporate awareness and synergy effects through integration of products and development and sales functions each of four companies owns. TE Japan will be established with TE AMP as a surviving company and with other three companies dissolved, which are TE Raychem of circuit protection devices and high polymer chemistry, TE EC of relays and TE M/A COM of radio frequency semiconductor products. The new company will be capitalized at 17.3 billion yen. (From an article in the Nikkan Jidosha Shimbun on Sep. 2, 2009)

R&D Structure

-The Company employs approx. 7,000 engineers dedicated to product research, development, and engineering.

R&D Expenditure

(in million USD)

	FY2009	FY2008	FY2007
Overall	439	482	428
-Electronic Components	291	325	293
-Others	148	157	135

-It's new products, including product extensions, introduced during the previous three years comprised approximately 31% of the Company's net sales for fiscal 2009.

Capital Expenditure

(in million USD)

	FY2009	FY2008	FY2007
Total	328	610	863

-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 manufacturing rationalization plan, it expects to incur restructuring charges of approximately $350 million through 2011 related to current as well as future restructuring actions.