Financial Overview

(in million USD)

	FY ended Sep. 30, 2014	FY ended Sep. 30, 2013	Rate of change (%)	Factors
Overall
Net Sales	13,912	13,280	4.8	1)
Operating Income	2,045	1,556	31.4	-
Transportation Solutions Segment
Net Sales	6,090	5,485	11.0	2)
Operating Income	1,283	972	32.0	-

Factors
1) Overall Net Sales
-The Company's net sales in the FY ended September 30, 2014 increased 4.8% from the previous FY to USD 13,912 million. Gains in the Transportation Solutions segment and, to a lesser degree, the Industrial Solutions segment were slightly offset by losses in the Network Solutions and Consumer Solution segments. These gains were helped by a positive effect in foreign currency exchange rates but were adversely affected by price erosion.

2) Transportation Solutions Net Sales
-The Transportation Solutions segment's net sales increased 11.0% in the FY ended September 30, 2014 to USD 6,090 million. In the automotive end market, increased demand in China, Japan, and North America, as well as an increased demand for exports in the EMEA region, led to gains that were partially offset by lower demand in other regions. Net sales also increased in the commercial vehicle market due to strength in the North American truck market, and increased demand due to emission standard changes in China and the EMEA region.

Acquisitions

-The Company announced that it has completed the acquisition of American Sensor Technologies, Inc. (AST), a manufacturer of pressure and position sensing solutions. In 2013, AST had revenues of approximately USD 20 million. AST manufactures products for several industries, including the industrial and commercial transportation markets. (From a press release on September 2, 2014)

-The Company announced that it has entered into an agreement to acquire US-based Measurement Specialties, Inc. for approximately USD 1.7 billion. A designer and manufacturer of sensors and sensor-based systems, Measurement Specialties is expected to have revenue of USD 540 million in the current fiscal year. Its lineup of sensors can measure quantities such as pressure, vibration, force, temperature, humidity, ultrasonics, position, and fluid. (From a press release on June 18, 2014)

Outlook for FY ending Sep. 30, 2015

-For the FY ending in September 30, 2015, the Company expects its net sales to be between USD 14.7 billion and USD 15.3 billion, based primarily on sales increases in the Transportation Solutions and Network Solutions segments and less on the sales increase in the Industrial Solutions segment. Growth in the Transportation Solutions segment is expected to surpass the anticipated growth of 2.5% to 3% in global automotive production.

R&D Expenditure

(in million USD)

	FY ended Sep. 30, 2014	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012
Overall	572	576	595
-Transportation Solutions	193	193	181

R&D Structure

-The Company has approximately 7,500 engineers working in product research, development, and engineering.

-In the fiscal year ending September 30, 2014, the Company derived approximately 25% of its sales from new products and product extensions that were introduced within the previous three fiscal years.

Capital Expenditure

(in million USD)

	FY ended Sep. 30, 2014	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012
Overall	673	615	533
-Transportation Solutions	378	325	285

Investment Outside Switzerland

<South Korea>
-Tyco Electronics AMP Korea Ltd., a Korean subsidiary of the Company, announced that it will invest KRW 160 billion (JPY 16 billion) to expand its Gyeongsan plant in Gyeongsangbuk-do, Korea. Tyco Electronics AMP Korea produces electronic components such as sensors and connectors and supplies them to automakers both in and outside of Korea. (From a press release on July 16, 2014)

<Thailand>
-The Company announced its plans to build a new plant in Thailand. Operations for the new plant are expected to begin in spring 2015. The new plant will manufacture automotive connectors primarily for Japanese automakers. Building the plant in Thailand will allow the Company to meet growing demand from automakers in Southeast Asia, and provide the opportunity to expand its customer base. Tyco Electronics Japan G.K., the Japanese subsidiary of the Company, will send dies from its plant in Japan to the new Thailand plant and support the production of parts for Japanese automakers. (From an article in the Nikkan Jidosha Shimbun on February 13, 2014)