TE Operating Advantage TEOA A standard set of

TE Operating Advantage (TEOA) A standard set of tools and a proven methodology Key performance indicators (“metrics”) A star assessment and evaluation system A training program, with a “learn-by-doing” approach A leadership and management development program Information is TE Connectivity Confidential & Proprietary Do Not Reproduce or Distribute April 2012

Why TEOA in Procurement? Customers Demand It The customer demands continuous improvement in our quality, price and delivery “and service” Competition Is Relentless We have to outperform aggressive global competitors that are improving their businesses every day 20 x 15 Requires It TE must have the most effective and cost efficient operations to reach $20 billion in sales by 2015 Global Procurement: • Influences all four customer demands • Major driver in lead times and cost Procurement Transformation Necessary to enable 20 X 15 Information is TE Connectivity Confidential & Proprietary Do Not Reproduce or Distribute April 2012

Collaboration Anchored by TEOA Operations Engineering Value Analysis: Rationalization Substitutions TE Specs Value Analysis: Scrap Reduction Process Improvement Finance validates the #’s Commercial Technical Operational One Shared Target : Competitive Sourcing: LCC / localization Make or buy Productivity Engineering Procurement Operations Other Functional Areas Idea generation Implementation Value Engineering: GMSS Benchmarking Teardown Competitive Sourcing: LCC / localization Optimization Make or buy Procurement Supported by TEOA Enablers and ONE TE Voice to Suppliers Information is TE Connectivity Confidential & Proprietary Do Not Reproduce or Distribute April 2012