TE Connectivity Ltd.

Overview Key strengths Key risks Global operating scale in the connector industry and broad market exposure support steady free operating cash flow generation. High automotive business concentration at 40%-45% may lead to business volatility and revenue and margin pressures during periods of weak demand. Well positioned for growth in automotive markets given growing electric vehicle exposure and higher content opportunities longer term. Ongoing operating expense restructuring to manage price erosion and optimize manufacturing footprint. Strong liquidity position and low adjusted leverage in the 1.2x-1.4x range expected in fiscal 2023 ending Sept. 30. While the challenging macroenvironment may slow demand, TE Connectivity benefits from portfolio diversity that will help mitigate some softness expected to continue over the next few quarters in

...While broader demand weakening is a risk worth monitoring, we believe TE Connectivity's global scale and automotive and industrial end market exposure will support good cash flow prospects in fiscal 2023 and beyond. While the challenging macroenvironment may slow demand, TE Connectivity benefits from portfolio diversity that will help mitigate some softness expected...

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