ANNUAL REPORT Making a Measurable Impact... GAAP EPS (a) Sales $3,500 $12 $ In Millions $3,164 $10.73 $ Per Share $3,000 $2,902 $2,604 $10 $9.01 $2,394 $2,500 $2,339 $2,298 $2,127 $2,150 $8 $1,942 $6.26 $2,000 $5.75 $1,644 $6 $5.44 $5.37 $4.87 $1,500 $4.33 $3.81 $ Per$ Share $4 $3.25 $ In Millions $1,000 $2 $500 $0 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year Year (a) Represents total GAAP earnings per diluted share for 2013 through 2019 and GAAP EPS from continuing operations for 2010 through 2012. Financial Highlights Selected Consolidated Financial Data (In millions, except per share data) Summary Financial Information 2019 2018 2017 2016 2015 Sales $3,163.6 $2,901.8 $2,603.8 $2,149.9 $2,298.1 Net income attributable 402.3 333.8 227.2 190.9 195.8 to Teledyne Diluted earnings per 10.73 9.01 6.26 5.37 5.44 common share Weighted average diluted 37.5 37.0 36.3 35.5 36.0 common shares outstanding Summary Balance Sheet Data 2019 2018 2017 2016 2015 Cash and cash equivalents $199.5 $142.5 $70.9 $98.6 $85.1 Total assets 4,579.8 3,809.3 3,846.4 2,774.4 2,717.1 Long-term debt 750.0 610.1 1,063.9 509.7 754.1 Total equity 2,714.7 2,229.7 1,947.3 1,554.4 1,344.1 See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Notes to Consolidated Financial Statements” in the 2019 Form 10-K for additional information regarding Teledyne Technologies Incorporated’s financial data. 2 Teledyne Technologies 2019 Annual Report 2019 Sales by Segment Instrumentation • Instrumentation Test and measurement, monitoring and control instrumentation, and power and communications connectivity devices for marine, 12% environmental, electronics and other applications Digital Imaging • Digital Imaging 35% High performance sensors, cameras and systems within the visible, infrared, ultraviolet and X-ray spectra, used in industrial, government 22% and medical applications Aerospace & • Aerospace and Defense Electronics Defense Sophisticated electronic components, subsystems and communications Electronics products, including defense electronics, commercial avionics and harsh Engineered environment interconnects 31% Systems • Engineered Systems Innovative systems engineering, manufacturing and specialized products for government, space, energy and industrial customers Cumulative Total Stockholder Return The graph set forth below shows the cumulative total The graph assumes $100 was invested on December 26, 12/28/14 01/03/16 01/01/17 12/31/17 12/30/18 12/29/19 Teledyne Technologiesstockholder return (i.e. price change plus100 reinvestment85 118 2014.173 194 332 Russell 2000 of dividends) on our common stock for100 the five95 fiscal115 In accordance132 116 with the147 rules of the SEC, this S&P 1500 Industrialsyears ending December 29, 2019, as 100compared96 to the116 presentation140 120 is not incorporated158 by reference into any Russell 1000 Standard & Poor’s 500 Composite Index,100 the 100Russell 112 of our136 registration128 statements170 under the Securities Act S&P 500 Composite1000 Index, the Russell 2000 Index and100 the Standard100 112& of 1933.136 129 172 Poor’s 1500 Industrials Index. 350 300 250 200 150 100 50 0 12/28/14 01/03/16 01/01/17 12/31/17 12/30/18 12/29/19 12/28/14 01/03/16 01/01/17 12/31/17 12/30/18 12/29/19 • Teledyne Technologies 100 85 118 173 194 332 • Russell 2000 100 95 115 132 116 147 • S&P 1500 Industrials 100 96 116 140 120 158 • Russell 1000 100 100 112 136 128 170 • S&P 500 Composite 100 100 112 136 129 172 3 Letter to Stockholders Making a Measurable Impact— 2019 WAS ANOTHER RECORD YEAR FOR TELEDYNE: in earnings and cash flow. In 2019, we deployed full-year sales, earnings, operating margin and cash $484.0 million on complementary acquisitions flow were all-time records. within our Environmental Instrumentation and Digital Imaging businesses. Furthermore, in early Total year sales for 2019 were $3,163.6 million, 2020, we acquired OakGate Technology, our third compared with $2,901.8 million for 2018, an increase bolt-on acquisition for Teledyne LeCroy. of 9.0%. Net income was $402.3 million ($10.73 per diluted share) for fiscal year 2019, compared with While we remain committed to consistent financial $333.8 million ($9.01 per diluted share) for fiscal year performance, our businesses also continue to focus 2018, an increase of 20.5%. on developing solutions to address sustainability and climate challenges facing humanity today. While we have increased our emphasis on margin improvement, we continue our proven strategy of disciplined capital deployment for compound growth 4 Teledyne Technologies 2019 Annual Report Ethics and Social Responsibility Teledyne continuously operates within our Code of Ethical Business Conduct. We firmly believe that improvement is possible only if we measure our performance and constantly raise our standards through ethically-oriented practices, including our contributions and commitment to having a positive measurable impact on humanity. 2020 and Beyond As we completed our 20th year as a public company, we believe that we have the capability and commitment to continue the path that we have set out as we move into this new decade. Teledyne continues to benefit from our balanced portfolio of common technologies serving different, complementary markets. We begin 2020 with the largest backlog in the company’s history, and we remain optimistic about Teledyne’s future. Our broad range of precision measurement We thank all of our employees, as well as our Board technologies for environmental monitoring and of Directors, for their contributions to Teledyne’s climate research is unique in the world. Our sensors success. We also thank our stockholders for their and instruments are deployed everywhere, from pole continued loyalty and support. to pole, in space, on aircraft and drones, on land, on the sea surface, in the water column, and on the Kind regards, seafloor. They operate around the clock, measuring greenhouse gases from space, precisely monitoring air and water quality throughout the world, and are continuously profiling all of Earth’s oceans. Al Pichelli Applications of our instruments provide scientists President and Chief Executive Officer information that spans time from the origin of the Universe to providing real-time data regarding air pollution and dangerous storms, such as time- critical warning of hurricanes and tsunamis. Robert Mehrabian In the following sections, we provide additional Executive Chairman information of our contributions to global environmental and climate science. February 24, 2020 5 Credit: NASA Credit: 6 Teledyne Technologies 2019 Annual Report Making a Measurable Impact Helping Humanity Environment Space Ninety percent of the world’s population is exposed Teledyne’s contributions to space exploration through to air pollution above acceptable limits. Teledyne is our visible and infrared sensors have advanced a global leader in breakthrough design, production our scientific understanding of the formation and and distribution of sophisticated air quality instruments evolution of the Universe, solar system, planets and that measure hazardous gases and particulate matter moons and how humankind’s actions affect Earth’s in real-time. climate, atmosphere, oceans and land. • We provide sophisticated water samplers and flowmeters to monitor wastewater, irrigation flow, storm water, industrial discharge, construction Business site run-off and municipal wastewater collection, • We operate within a Code of Ethical Business treatment and reuse. Conduct with four key pillars: Integrity, Respect, • Every second of every day, our hazardous gas Responsibility and Citizenship. Teledyne has a zero detection monitors are making industrial workplaces tolerance policy when it comes to violating the safer around the world. Code. • We build precision air quality instruments that • Our Board of Directors and its committees regularly measure common air pollutants and particulate review matters related to compliance with matter (NOx, SO2, ozone, PM10 and PM2.5) that are environmental laws and the health and safety of considered hazardous to human health and the employees. We continually evaluate our policies environment. Our instruments enable government and practices and monitor our efforts in areas of agencies around the world to detect and monitor legal and social responsibility, diversity and the quality of the air we breathe in real-time to sustainability. assess their compliance with air quality regulations • We have made progress in our efforts to promote and ultimately reduce air pollution. diversity and inclusion. Today, approximately one-third of our executive management team, as Ocean well as our Board of Directors, are women. The ocean covers over 70% of the Earth’s surface, holds 97% of its water, produces more than half the Community world's oxygen, and stores 50 times more carbon • We invest in projects to develop and secure dioxide than Earth’s atmosphere. Changes in the tomorrow’s long-term energy sources. ocean affect weather patterns, climate, and food • Teledyne businesses around the world support security. Despite its vital importance, more than 80% local charities and participate in volunteer of our ocean is unmapped and unexplored. opportunities to help those in need. • Our floats, gliders and instruments assist climate • Teledyne’s products enhance the reliability and research by providing access to accurate data, safety of global transportation and protect the including subsurface temperatures and velocities security of our nation, our military and our allies. of currents throughout the world’s oceans. On a • We partner with local universities to provide shorter timescale, scientists are employing our mentor and internship programs, especially for instruments to provide essential inputs for Science, Technology, Engineering and Math (STEM) computer models of dangerous storms, providing students.