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Organizing for Growth

Tom Lynch

Villanova Executive MBA Alumni Program

April 23, 2010

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verv ew

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Is a World Leader Enabling Connectivity

ConsumerConsumer Industrial and InfrastructureIndustrial and Infrastructure

Serving Large Attractive Markets

Trans ortation EnerConsumer Industrial Aerospace MedicalProducts Equipment & Defense

With A Wealth of Technology Platforms

Connectors Fiber Optics Touch Systems CircuitProtection

WirelessSealing &Protection

PrecisionWire & Cable

97Manufacturing SitesServing Every Region

7,000 EngineersClose to our Customers

150 CountriesServed

5,000 SalespeopleAdvising our Customers

And Extensive Global Resources

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~ $3B Revenue in Q1 FY 2010

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Strategic Priorities: 2007 to 2009

Focus the Com an

Reshape the portfolio Original 2010

Streamline the footprint

Organic Growth of 5

Reinvigorate innovation Revenue of $16 17B 15% Operating Margin

Improve productivity

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Strategic Priorities: 2010 and BeyondAccelerating Growth

Leverage technologyacross the company

Financial Goals

Increase investment

in R&D

nnua row

12% Operating Margin at

$12B Revenue

Reinvigorate thechannel

15% Operating Margin at$14 15B Revenue

Strategic acquisitions

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While Continuing To Strengthen Our Operating PerformanceWhile Continuing To Strengthen Our Operating Performance

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Market LeadershipElectronic Components

Communications &Automotive

$3.2B Sales | 6-8% Growth

Datacom Equipment Computers

Consumer Devices

Automotive

Commercial Vehicles

$2.8B Sales | 4-6% Growth

Motor Vehicle Connectivity Connectivity In and To Devices

Appliances

Telecommunications

$1.2B Sales | Cyclical

Turnkey Fiber Optic Systems

Oil & Gas S stems

e wor o u ons$1.7B Sales | 6-8% Growth

Energy Systems

Communication Service

$1.4B Sales | 8-10% Growth

Aerospace, Defense

& Marine

Touch Systems

Beyond Traditional ConnectivityNetwork Connectivity

Sales are FY09 Actual, Growth rates are long-term organic growth rates; see Appendix for description of organic sales growth

Enterprise Networks

Circuit Protection

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Significant Growth Opportunities

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Strong Global PresenceStrong Global Presence

N.A. $3.5B

S.A. $.3B

Europe $3.5B .

Asia $3B

- China $1.5B

17 major design centers in Centers of Innovation

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Accelerated GrowthAccelerated Growth

How do we expand theHow do we expand the

be a slower growthbe a slower growthenvironment?environment?

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Or anizin for Accelerated GrowthOr anizin for Accelerated Growth

What Weve Done So Far:

Organized around global vertical markets

Improved product development

productivity Strengthened talent in China

roadmap planning to 5 10 years

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Or anizin for Accelerated GrowthOr anizin for Accelerated Growth

Newer Areas of Emphasis:

Accelerate design and sourcing in emergingmarkets

Double investment in advanced development

Commit to open innovation

Optimize Go-To-Market Channels

Increase investment where we are stron : USJapan, Germany

Seek artners in emer in markets

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