TycoTyco ElectronicsElectronics

AnalystsAnalysts PresentationPresentation Shanghai,Shanghai, PRCPRC JuergenJuergen GromerGromer President,President, TycoTyco ElectronicsElectronics May 26, 2004 AnalystAnalyst MeetingMeeting -- ShanghaiShanghai May 26, 2004 at Tyco Electronics Agenda

8:30 – 9:15 Tyco Electronics Presentation J. Gromer President, Tyco Electronics

9:15 – 10:00 Plant Overview & China Mfg. M. Okamoto VP Global Communications, Computer and Consumer Electronics 10:00 – 10:15 Q & A

10:15 – 11:00 Plant Tour Telco Outside Plant / Energy Site M. Okamoto 11:00 – 11:15 Transfer to CC&CE Plant Site

11:15 – 12:00 Plant Tour CC&CE Plant - M. Okamoto 2 ForwardForward LookingLooking StatementStatement This presentation and/or the accompanying presentation materials may contain certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained herein that are not clearly historical in nature are forward looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. The forward- looking statements in this presentation and/or accompanying presentation material include statements addressing the following subjects: future financial condition and operating results. Economic, business, competitive and/or regulatory factors affecting Tyco's businesses are examples of factors, among others, that could cause actual results to differ materially from those described in the forward-looking statements. Where we have used non-GAAP financial measures, reconciliations to the most comparable GAAP measure are provided, along with a disclosure on the usefulness of the non-GAAP measure.

3 SegmentSegment OverviewOverview **

ElectronicsElectronics SegmentSegment 2003 Revenue $10.5 billion 54 Countries

Electronic Components Telecommunications 2003 Revenue $10.4 billion 2003 Revenue $140 million 80,000 Employees 475 Employees

X Designs, X Designs, manufactures and manufactures and installs undersea markets a broad range telecommunication of electronic, systems electrical, and electro- optic passive and X Services and maintains undersea active devices telecommunication systems

4 * Restated for classification changes as described in 8-K dated March 2004 UnparalleledUnparalleled BrandsBrands

5 LargestLargest GlobalGlobal SalesSales ForceForce inin thethe IndustryIndustry

80,000 Employees 5,200 Sales & Marketing 7,000 Engineering

6 WorldWorld ClassClass CustomersCustomers Computer & Telecommunications Consumer Automotive Industrial & Distribution Electronics Commercial

3Com Dell BMW ABB Anixter Alcatel HP/Compaq DaimlerChrysler/ Agilent Arrow Bell South IBM Mitsubishi Airbus Avnet/Kent BT Matsushita Ford Boeing Eurodis China Telecom Philips GM/Fiat ConEd Future Cisco Sony Honda Electrolux Sonepar Deutsche Telekom Sun MicroSystems Porsche GE TTI Ericsson Toshiba PSA Hitachi Lucent Technologies Renault/Nissan InvensyInvensys Motorola Toyota Mitsubishi Nokia VW Raytheon Nortel Bosch Rockwell NTT Conti Temic RWE Siemens Delphi Samsung Telefonica Denso Schneider Group Verizon Dräxlmaier Siemens Hitachi Toshiba Lear UTC EMS EMS Leoni Whirlpool Motorola Celestica Siemens/VDO Flextronics Sumitomo SCI TRW Solectron Valeo Jabil Visteon Yazaki7 AcceleratingAccelerating Performance:Performance: OperationalOperational ExcellenceExcellence

Process Delivery Efficiency Delivery

Product Plant Migration Consolidation

Material Cost Strategic Customer Substitution Reduction Sourcing Satisfaction

Design Headcount Improvements Reductions Six Quality Sigma

8 TotalTotal CostCost OverviewOverview

PercentPercent ofof SalesSales

Direct Labor Operating 14% Income 15% Amortization 1% Cost of G&A 4% Goods Sold Engineering 4% 69%

Selling 7% Materials Freight/Distribution 2% 39% Depreciation 4% Overhead 10%

*A reconciliation to GAAP Operating Income can be found in the Appendix on the Electronics Segment Overview Page 9 ManufacturingManufacturing SitesSites ConsolidationConsolidation 1999 Total = 294 Current Total = 171

38 142 85 26 79 57

7 22 3 6

40% Site Reduction Over 4 Years

10 LowLow CostCost ProductionProduction PlansPlans

Percent of Production in Low Cost Countries

40%

30%

FY03 FY06 ~33% Increase By 2006 11 StrategicStrategic SourcingSourcing InitiativesInitiatives 20042004 EstimatedEstimated MaterialMaterial SpendSpend == $4.1$4.1 BillionBillion

„ One Tyco – Leveraging volume effects both on TE and corporate level (conductor wire, magnet wire, PBL materials, magnets, cores) „ Qualification of lower cost materials and alternative suppliers „ Develop raw materials suppliers in Asia, mainly China „ Global Sourcing – China, Taiwan, India

Targeted 6+ % Savings on Spend

12 StrategicStrategic SourcingSourcing InitiativesInitiatives

„ e-Bidding, e-Auctions, internet solutions

„ Standardization of material & components

„ Early Involvement in specification of material - leverage new activity

„ Renewed focus on indirect spend

„ Reduce spend on capital equipment and spare parts by leveraging volume and sourcing in China and Eastern Europe

13 SupplySupply ChainChain InitiativesInitiatives

ƒ Simplify the Supply Chain – Reduction of warehouses – Reduction of suppliers ƒ Consignment & Just-in-Time Programs ƒ Expand EDI Links with Customers ƒ Increase Direct Drop Shipments ƒ Flexible Manufacturing Processes – Shorter Lead Times

Continuous Improvement in Delivery Performance

14 CustomerCustomer SatisfactionSatisfaction QualityQuality Improve Process Quality (Measured in PPM) Scrap Reduction

Reduction in Number Customer Return of Incidents Material Reduction

Six Sigma15 Focus DesignDesign toto CostCost

ƒ Key Elements for Low Cost Design – Clear Objectives Specs/Schedule/COST – Accurate Design Systems Design to what you need – Multidisciplinary Development Team Elect, Mech, Mfg, Purchasing, Customer – Investment Tooling, Automation, Engineering Talent

Low Cost Is Not Low Tech

16 DesignDesign toto Cost:Cost: AutomotiveAutomotive Fuse/RelayFuse/Relay BoxBox Initial Design Final Design

55 LayersLayers 33

55 CContactontact TypesTypes 22

1212 ScrewsScrews UltrasonicUltrasonic WeldWeld

1111 WireWire BridgesBridges 11

ToolingTooling && FloorFloor spacespace -- 40%40%

Cost Reduction – 25%

17 Products:Products: StrongStrong LeadershipLeadership PositionsPositions Market Product Segments Major Competitors Position Molex, FCI, Delphi, Hon Hai, Amphenol, Methode, Connectors 1 Sumitomo Relays 1 Omron, NEC, Denso, Hella Heat Shrink Tubing / Harnesses 1 Sumitomo, Cannusa, DSG Touchscreens 1 3M, Guzo, Eturbo Touch PolySwitchTM Devices 1 Littelfuse, Bourns, Polytronics Multifunction RF Assemblies 1 REMEC, ST Microwave, Herley, Ball Aerospace Application Tooling 1 KOMAX, JAM Wireless Systems 2 Motorola Fiber Optic Components 2 Agilent, JDS Uniphase, Yazaki Power Systems 3 American Power, Power One, Emerson, Marconi GaAs/Silicon/Passive 3 Motorola, RFMD, Skyworks (Alpha), Watkins-Johnson Components Printed Circuit Boards 10 Sanmina, Compeq Mfg Co, E&E, Merix

18 TycoTyco ElectronicsElectronics‘‘ StrenStrenggthth –– ProductProduct Portfolio Portfolio = Product Segment Position

rs Key Product o s d Segment ect ar s n s n o le n e o B o li i t du s b o m C ect ui e ks e ns ds t rc s bl M e s & sem r ro i tic a ac c re s s yst al Ca P s C P S sc in A t it e d C Op ry roni r h le ys r u l te t e c m b a a c re er re & te w u Company er el ir i rin ib i at ec o T Ca R Sm C W P F W B El P To Tyco Amphenol Cannon FCI Foxconn JST Molex Omron Power One Skyworks Teradyne 3M Scale and Diversification19 MarketMarket ShareShare StrategyStrategy

ƒ Excel in High Growth Markets ƒ Leverage Product Portfolio - Increase Market Share for all Products with our Customers

NewNew SalesSales ModelModel

Global Account Sales Increase Sales Management Opportunity Force in High Program Program Growth Regions (GAM) (SOP)

Focus on Focus on Large Focus on Small to Emerging Markets Accounts Medium Accounts

20 GAMGAM andand SOPSOP ProgramsPrograms

ƒ Build & manage a worldwide sales team for each targeted account to sell all products – Includes cross training of product offerings – Establishing communication networks in sales across the globe and business units ƒ Align with customer purchasing organizations to lower their supply base and provide more cost savings by using Tyco – Determine the total sales potential for all products ƒ Establish detailed customer account plans for accountability ƒ Drive program using commission incentives for GAMs driven by total product sales (all business units)

Leverage the Breadth and Size of Tyco Electronics to Gain Market Share

21 HighHigh GrowthGrowth MarketMarket OpportunitiesOpportunities

Eastern Europe Share Potential 5Yr CAGR 10% $1 B 10%-15%

China and India Latin / South America Share Potential 5 Yr CAGR Share Potential 5Yr CAGR 11% $10 B 15%-20% 10% $1 B 5%-10%

Significant Emerging Market Potential 22 WhyWhy IsIs ChinaChina SoSo Important?Important?

„ SignificantSignificant LocalLocal MarketMarket PotentialPotential „ InternationalInternational CustomersCustomers inin ChinaChina RequestRequest LocalLocal SupplySupply „ CostCost CompetitivenessCompetitiveness „ TimeTime toto MarketMarket ThroughThrough Manual/SemiManual/Semi--AutomaticAutomatic AssemblyAssembly EquipmentEquipment „ FlexibilityFlexibility

23 TycoTyco ElectronicsElectronics’’ ChinaChina SalesSales

FY2003 Total Sales $1.3 billion Local Sales: 51% of total Export Sales: 49% of total Industrial & Commercial 27% Telecommunications 20%

Computer & Automotive 9% Consumer Electronics Distribution 38% 6%

24 ChinaChina SalesSales byby ProductProduct SegmentSegment

FY2003 Total Sales $1.3 billion

Cable Assembly 22% Relays 9% Battery Packs $283 M $118 M Polyswitches 6% Wireless 4% Heatshrink Tubing $532 M Power Systems 4% Fiber Optics Cable 4% Magnetics Connectors Printed Circuit Boards 42% 9% Harnesses Other

25 SignificantSignificant OEMOEM andand LocalLocal CustomerCustomer BaseBase –– TopTop CustomersCustomers inin ChinaChina -- 20032003

„ Alcatel Shanghai Bell „GM „ Motorola Inc.

„ Arrow Electronics „ HK Wiring Systems „ Philips Electronics

„ Asustek „ Huawei Technologies „ Quanta

„ Changchun Electric „ Ingram Micro „ Shanghai Donqi

„ Cherry „ Jabil Circuit „ SH PTAC

„ Chun Fat Enterprises „ Kun Shan Hugang Automobile „ Solectron

„ CLP Power Hong Kong Ltd „ Lear „ Sumitomo

„ Compal Electronics „ Lucent Technologies „ Takane Denki

„ Delphi „ Maximax Ltd. „ Tech-Front

„ Flextronics „ Microstar „ USI Electronics (Shenzhen Ltd.)

„ Ford „ Mitac International „ VW

26 InvestmentInvestment inin ChinaChina

$$ USUS CategoryCategory inin MillionsMillions MachineryMachinery && EquipmentEquipment $$ 232232

BuildingsBuildings && LandLand $$ 5656

GrossGross FixedFixed AssetsAssets $288*$288*

*As of 9/30/03. Excludes $16 Million in Hong Kong.

27 TycoTyco ElectronicsElectronics’’ CurrentCurrent ManufacturingManufacturing FootprintFootprint

ZiboZibo (Energy(Energy)) QingdaoQingdao (CC&CE)(CC&CE) ShanghaiShanghai (CC&CE)(CC&CE)

ShanghaiShanghai (Printed(Printed Circuits)Circuits) ShanghaiShanghai WuxiWuxi (Fiber(Fiber OptOptiics)cs) BeijingBeijing (T(Telecoelecomm OSP)OSP) ShanghaiShanghai (GIC/T(GIC/Telecoelecom/m/ CircuCircuiitt ProProttectioectionn /T/TDI)DI) DongGuanDongGuan (CC&CE)(CC&CE) ShanghaiShanghai (Po(Powwerer SySystestemms)s) DongGuanDongGuan ((Magnetics)Magnetics) KunshanKunshan (Circu(Circuitit ProProttectioectionn DeDevviiceces)s) ShenzhenShenzhen (GIC)(GIC) KunshanKunshan (CC&CE)(CC&CE) ShenzhenShenzhen ZuhaiZuhai (Ele(Eleccttronicronic ModuleModuless)) (CC&CE)(CC&CE) GuangdongGuangdong (CC&CE)(CC&CE)

28 ChinaChina ManufacturingManufacturing ProductsProducts && EmployeesEmployees byby FacilityFacility

Facility Products Total Employees

Shanghai - AMP Connectors 1,908 Guandong Connectors, Cable Assemblies 3,047 Quingdao Connectors, Relays 3,198 DongGuan - FAI Cables, Cable Assemblies 2,420 Shenzhen Relays 3,552 Kunshan Circuit Protection, Cable Assemblies 880 DongGuan Transpower Magnetics 5,042 Shanghai - WGQ Fiber Optics 470 Wuxi Telecom Outside Plant 43 Zhuhai Cable Assemblies 386 Shanghai - PCG PC Board Assemblies 140 Zibo Insulators 87 Shanghai - Raychem Heat Shrink Tubing, Battery Packs 879 22,052 300,000 Square Meters of Capacity 300,000 Square Meters of Capacity

29 ChinaChina CostCost ReductionReduction ExampleExample -- MigrationMigration Conversion Cost Comparison Connector Plant US$ 000‘s United Expenses States China

Labor Related $29,700 62% $6,600 35%

Fixed (Depr/Utility/Taxes) 13,900 29% 6,700 36%

Variable - Non Labor 4,100 9% 5,500 29%

Total Conversion Cost $47,700 $18,800

61% Reduction before Freight Cost Impact (approx. 15-20%)

30 ExpectedExpected ProductionProduction MigrationMigration Next 18 Months

$210M

$50M

$60M

$320 Million of Sales31 Value ChinaChina –– ExpectedExpected MarketMarket DevelopmentDevelopment Next Five Years

„ LocalLocal marketmarket growthgrowth ofof 20%20% perper yearyear toto $20$20 billionbillion –– PlusPlus furtherfurther migrationmigration ofof keykey customerscustomers

„ TycoTyco ElectronicsElectronics TargetTarget –– AnnualAnnual growth:growth: 20%20% toto 25%25% perper yearyear –– GrowGrow fromfrom $1.3$1.3 BB $3$3 toto $4$4 BB

32 TycoTyco Electronics:Electronics: ExpansionExpansion PlanPlan inin ChinaChina Global Industrial & ƒ 20,000 m2 Commercial ƒ $8 million of capital ƒ 500 to 1,000 employees

Global ƒ 30,000 m2 Automotive ƒ $20 - $22 million of capital ƒ 2,000 - 3,000 employees

Communications, ƒ 15,000 – 20,000 m2 Computer & ƒ $15 million of capital Consumer Elect. ƒ 3,000 employees

Shanghai ƒ Additional space of 2,000 – 2,500 m2 Engineering ƒ $4 million of capital Center ƒ 341 additional employees

33 TycoTyco ElectronicsElectronics……

ƒ TheThe TechnologyTechnology LeaderLeader ƒ SolidSolid OrganicOrganic GrowthGrowth OutlookOutlook ƒ SignificantSignificant OperationalOperational ExcellenceExcellence OpportunitiesOpportunities ƒ StrongStrong OperatingOperating LeverageLeverage withwith ImprovingImproving GlobalGlobal EconomyEconomy

34 TycoTyco InternationalInternational ** 20032003 RevenueRevenue 20032003 OperatingOperating IncomeIncome Electronics Electronics Healthcare Healthcare $10.5 $1.242 $8.4 Plastics & $2.104 $1.9 Plastics & $.167 $2.104 Adhesives Adhesives $4.7 $.355 $11.3 Eng Prods $.360 Eng Prods

Fire & Fire & Security Security

$4.2 billion (excl. Corp. Exp.) $36.8$36.8 billionbillion $4.2$4.2 billionbillion (excl. Corp. Exp.) ($3.1($3.1 billionbillion includinincludingg CorporatCorporatee Expenses)Expenses)

* Restated for Classification changes disclosed in 8-K dated 35 March 2004 TycoTyco InternationalInternational ** -- MultiMulti--IndustryIndustry LeadershipLeadership

Electronics Healthcare

#1#1 --CCononnectorsnectors ##11 --WWoundound CCareare #1#1 --HHeateat ShrinkShrink TTuubbiinngg $8.4 #1#1 --VVaascularscular ComprCompressionession #1#1 --CCircuitircuit ProtectioProtectionn DevicesDevices #1#1 --SSharpsharps ContaiContainersners #1#1 --CCableable IdentificatioIdentificationn $10.5 #1#1 --IIncontncontinenceinence CaCarere #1#1 --RRelayelayss #1#1 --EElelectrosurgeryctrosurgery $11.3 $1.9 Plastics & Adhesives $4.7

#1#1 ––IIndustrialndustrial DuctDuct TapeTape #1#1 ––GGarmentarment HangersHangers Fire & Security #1#1 --FFireire PPrrotecotectiontion InstallationInstallation Engineered Products #1#1 --FFireire PPrrotecotectiontion ProductProduct #1#1 --FFireire PPrrotecotectiontion SerServicevice #1#1 --IIndndustrialustrial ProcessProcess ValvesValves #1#1 --SSeecuritycurity #1#1 --WWatateerr UtilityUtility ValveValve ProductsProducts #1#1 --SSteelteel PiPipepe && TTuubbe…e…ElectricalElectrical ConCondduuitit #1#1 --FFireire PPrrotecotectiontion ProductsProducts

2003 Revenue of $36.8 B - Over 2/3 of From #1 Products

* Restated for Classification changes disclosed in 8-K dated 36 March 2004 DiverseDiverse PortfolioPortfolio ofof LeadingLeading BrandsBrands

Electronics Healthcare

Plastics & Adhesives

Engineered Products & Services Fire & Security Services

37 TycoTyco InternationalInternational -- AcceleratingAccelerating PerformancePerformance inin 20042004

¾ Market Leadership in Attractive Industries

¾ Solid Growth Strategies in Every Segment

¾ Significant Operational “Runway”

¾ Strong Cash Flow / Improving Balance Sheet

38 AppendixAppendix

39 ElectronicsElectronics SegmentSegment OverviewOverview **

All data in millions and translated at historical rates 2003 Sales & Operating Income Reconciliation Sales Op. Inc. Op. Inc. %

Components $ 10,356.2 $ 1,522.4 15%

Telecommunications 136.0 ( 43.6) n/a

Impairments / Restructuring - (237.3) n/a

Total Segment $ 10,492.2 $ 1,241.5 12%

* Restated for classification changes as described in 8-K dated March 2004

40