泰科電子 (TEL) 2020 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the TE Connectivity Fourth Quarter Earnings Conference Call for Fiscal Year 2020. (Operator Instructions) As a reminder, today's call is being recorded.

女士們、先生們，感謝大家的支持，並歡迎參加 TE Con​​nectivity 2020 財年第四季度收益電話會議。（操作員說明）謹此提醒，今天的通話正在錄音。

I would now like to turn the conference over to our host, Vice President of Investor Relations, Sujal Shah. Please go ahead.

現在我想將會議交給我們的東道主、投資者關係副總裁 Sujal Shah。請繼續。

Good morning, and thank you for joining our conference call to discuss TE Connectivity's Fourth Quarter and Full Year 2020 results. With me today are Chief Executive Officer, Terrence Curtin; and Chief Financial Officer, Heath Mitts.

早上好，感謝您參加我們的電話會議，討論 TE Con​​nectivity 的 2020 年第四季度和全年業績。今天與我在一起的有首席執行官泰倫斯·科廷 (Terrence Curtin)；首席財務官希思·米茨 (Heath Mitts)。

During this call, we will be providing certain forward-looking information, and we ask you to review the forward-looking cautionary statements included in today's press release. In addition, we will use certain non-GAAP measures in our discussion this morning, and we ask you to review the sections of our press release and the accompanying slide presentation that address the use of these items. The press release and related tables, along with the slide presentation can be found on the Investor Relations portion of our website at te.com. Due to the large number of participants on the Q&A portion of today's call, we're asking everyone to limit themselves to 1 question to make sure we can give everyone an opportunity to ask questions during the allotted time. We're willing to take follow-up questions but ask that you rejoin the queue if you have a second question.

在本次電話會議中，我們將提供某些前瞻性信息，我們請您查看今天新聞稿中包含的前瞻性警示聲明。此外，我們將在今天早上的討論中使用某些非公認會計準則衡量標準，我們請您查看我們的新聞稿以及隨附的幻燈片演示文稿中涉及這些項目使用的部分。新聞稿和相關表格以及幻燈片演示文稿可在我們網站 te.com 的投資者關係部分找到。由於今天電話問答部分的參與者人數眾多，我們要求每個人只提出 1 個問題，以確保我們可以讓每個人都有機會在規定的時間內提問。我們願意回答後續問題，但如果您還有第二個問題，請您重新加入隊列。

Now let me turn the call over to Terrence for opening comments.

現在讓我將電話轉給特倫斯以徵求開場評論。

Thanks, Sujal, and thank you, everyone, for joining us today to cover our results of the fourth quarter as well as our expectations for our first quarter of fiscal 2021.

謝謝 Sujal，也謝謝大家今天加入我們，報導我們第四季度的業績以及我們對 2021 財年第一季度的預期。

Before I get into the slides, I do want to frame out some key points about today's call. First off, I am very pleased with our execution in the fourth quarter, where we delivered sequential sales growth of 28%, which was above our expectations and adjusted earnings per share of $1.16. Our top line benefited from a better-than-expected recovery in automotive production, coupled with our leading position in this market. Adjusted operating margins expanded sequentially by over 500 basis points, while we also executed on our inventory reduction plans that we discussed with you last quarter. And while we're still in a market where we're being impacted by COVID-related weakness and it has challenged our business model on margins and EPS, I also believe we successfully executed on a number of the key elements of our business model, including strong free cash flow as well as content growth that helped offset weakness we had in key markets. And I'll come back to this in a moment and get into a little bit more detail into that.

在開始播放幻燈片之前，我確實想列出有關今天電話會議的一些要點。首先，我對我們第四季度的執行情況感到非常滿意，我們的銷售額環比增長了 28%，超出了我們的預期，調整後每股收益為 1.16 美元。我們的營收受益於汽車生產的複蘇好於預期，以及我們在該市場的領先地位。調整後的營業利潤率連續擴大超過 500 個基點，同時我們還執行了上季度與您討論的庫存削減計劃。雖然我們仍然處於一個受到新冠疫情相關疲軟影響的市場，並且它在利潤率和每股收益方面對我們的業務模式提出了挑戰，但我也相信我們成功地執行了我們業務模式的許多關鍵要素，包括強勁的自由現金流以及內容增長，這有助於抵消我們在關鍵市場的疲軟。我稍後會回到這個話題並更詳細地討論這一點。

The other thing is that we are pleased to see a faster recovery in certain markets as evidenced in our orders. But I do want to highlight that the visibility on the shape and the slope of the longer-term recovery still remains limited. And lastly, as we look into our first quarter, we are expecting sales to be roughly flat to the first quarter of fiscal 2019, but with adjusted operating margin and earnings per share expansion, both year-over-year and on a sequential basis. And for the first quarter, which Heath and I will talk about, we are expecting sales and adjusted earnings per share of approximately $3.2 billion and $1.25, respectively.

另一件事是，我們很高興看到某些市場的更快復甦，正如我們的訂單所證明的那樣。但我確實想強調，長期復甦的形狀和斜率的可見度仍然有限​​。最後，當我們展望第一季度時，我們預計銷售額將與 2019 財年第一季度大致持平，但調整後的營業利潤率和每股收益將同比和環比增長。對於希思和我將討論的第一季度，我們預計銷售額和調整後每股收益分別約為 32 億美元和 1.25 美元。

Now while the challenges that we've experienced associated with COVID impacted the second half of our year, I am pleased that we demonstrated key element of our business model in fiscal 2020. We are benefiting from the active management of our portfolio over the years and the actions that we've taken to optimize our cost structure. And before we get into slides, again, I just want to give a few examples of what stood out to us during the year.

現在，雖然我們經歷的與新冠肺炎相關的挑戰影響了下半年，但我很高興我們在 2020 財年展示了我們業務模式的關鍵要素。我們受益於多年來對我們投資組合的積極管理以及我​​們為優化成本結構而採取的行動。在我們開始幻燈片之前，我只想舉幾個例子來說明這一年中對我們來說最突出的事情。

First of all, despite the market headwinds, we benefited from the secular trends across the business that we've positioned the company around. And this is evident in automotive, where we delivered 6 bp points of outgrowth versus the auto market in 2020, which reinforce our ability to generate content growth in both a growing and production or a declining production environment. And it's also important to remember that China is the largest auto production market in the world, and we benefited from increased volumes in our leading position in this region as it's recovered.

首先，儘管市場存在逆風，但我們仍受益於我們為公司定位的整個業務的長期趨勢。這在汽車領域尤為明顯，2020 年我們在汽車市場上實現了 6 個基點的增長，這增強了我們在增長和生產或下降的生產環境中實現內容增長的能力。同樣重要的是要記住，中國是世界上最大的汽車生產市場，隨著該地區的複蘇，我們受益於我們在該地區領先地位的增加。

Another highlight is our communications segment that remained resilient through the downturn and delivered strong growth both year-over-year and sequentially in the second half, driven by the build-out of data center capability. We also saw margin expansion with the segment delivering adjusted operating margins at its mid-teens target level for the year. And lastly, the foundation of our business model is the cash-generative nature of our businesses. We once again demonstrated this in fiscal '20 with $1.5 billion of free cash flow and this represents 104% conversion to net income.

另一個亮點是我們的通信部門在經濟低迷時期保持彈性，並在數據中心能力建設的推動下，下半年實現了同比和環比的強勁增長。我們還看到了利潤率的擴張，該部門調整後的營業利潤率達到了今年的中雙位數目標水平。最後，我們商業模式的基礎是我們業務的現金生成性質。我們在 20 財年以 15 億美元的自由現金流再次證明了這一點，這意味著 104% 轉化為淨利潤。

With this as a backdrop, I do want to take a moment to provide some perspective on our business and markets relative to our last earnings call 90 days ago. Last quarter, we said that the third quarter would be the low point of the downturn. This is now confirmed with 40% improvement in sequential orders in the fourth quarter, along with sequential revenue and EPS growth, both in the fourth quarter as well as what we expect into the first quarter. As we look into the first quarter, the business is returning to prior year levels with expansion of adjusted margin and earnings per share. And while auto production has come back a little bit stronger than we expected, we are still well below 2019 production levels of 88 million units on an annual basis. And we still believe the shape of the recovery will continue to be gradual and dependent on the global consumer. Over 19 million vehicles were produced in the fourth quarter, and we expect sequential improvement in auto production in the first quarter to 21 million units. In our other 2 segments, the industrial and communications segments, we do expect them to be down sequentially with some pockets of weakness like we have in commercial aerospace.

在此背景下，我確實想花點時間就 90 天前的上次財報電話會議對我們的業務和市場提供一些看法。上個季度，我們說過第三季度將是經濟低迷的最低點。現在，第四季度訂單連續增長 40%、第四季度收入和每股收益連續增長以及我們對第一季度的預期都證實了這一點。當我們展望第一季度時，隨著調整後利潤率和每股收益的擴大，該業務正在恢復到去年的水平。儘管汽車產量的回升略強於我們的預期，但仍遠低於 2019 年 8800 萬輛的年產量水平。我們仍然相信復甦的形式將繼續漸進並取決於全球消費者。第四季度汽車產量超過 1900 萬輛，我們預計第一季度汽車產量將環比改善至 2100 萬輛。在我們的其他兩個領域，即工業和通信領域，我們確實預計它們將連續下降，並出現一些弱點，就像我們在商業航空航天領域一樣。

So with that, let me get into the slides. And if you could please turn to Slide 3, I'll provide some additional details for the fourth quarter and the full year as well as our expectations for 2021 first quarter. Quarter 4 sales of $3.26 billion were better than our expectations and up 28% sequentially. Transportation sales were up approximately 50% sequentially, driven by the recovery in our auto sales, which were up 68%. Industrial sales were up 11% sequentially with growth across all businesses. And in our communications segment, sales were up slightly sequentially and up 12% year-over-year. During the quarter, we saw orders of approximately $3.35 billion and a book-to-bill ratio of 1.03, which I'll add more color on when I talk to that slide in a moment.

接下來，讓我開始播放幻燈片。如果您可以轉到幻燈片 3，我將提供第四季度和全年的一些其他詳細信息以及我們對 2021 年第一季度的預期。第 4 季度銷售額為 32.6 億美元，好於我們的預期，比上一季度增長 28%。在汽車銷售復甦的推動下，交通運輸銷售環比增長了約 50%，汽車銷售增長了 68%。隨著所有業務的增長，工業銷售額環比增長 11%。在我們的通信領域，銷售額環比略有增長，同比增長 12%。本季度，我們的訂單約為 33.5 億美元，訂單出貨比為 1.03，稍後我會在談到這張幻燈片時對此進行更多說明。

Adjusted earnings per share was $1.16, and adjusted operating margins were up 500 basis points sequentially to 14.5%. As we mentioned at the onset of COVID, we kept inventory levels relatively high to ensure we can meet commitments to our customers through a period of supply chain volatility. During the quarter, we drove a significant reduction in inventory in TE, primarily in the transportation segment with some reduction in industrial as well. This helped our free cash flow, but did impact our margins negatively, both at the company level and in the transportation segment. In the fourth quarter, free cash flow was approximately $650 million. And we returned $1.1 billion to shareholders during the year, including approximately $625 million of dividends and $500 million of share buybacks.

調整後每股收益為 1.16 美元，調整後營業利潤率環比上升 500 個基點，達到 14.5%。正如我們在新冠疫情爆發時提到的，我們將庫存水平保持在相對較高的水平，以確保我們能夠在供應鏈波動時期履行對客戶的承諾。本季度，我們推動 TE 的庫存大幅減少，主要是在運輸領域，工業領域也有一定程度的減少。這有助於我們的自由現金流，但確實對我們的利潤產生了負面影響，無論是在公司層面還是在運輸領域。第四季度自由現金流約為6.5億美元。我們在這一年中向股東返還了 11 億美元，其中包括約 6.25 億美元的股息和 5 億美元的股票回購。

When we look to the full year of 2020, sales were $12.2 billion, and they were down 10% year-over-year on both a reported and organic basis due to the impacts of COVID on our markets. Adjusted operating margins were 14.2% with adjusted EPS of $4.26. While transportation and industrial were impacted by the market weakness, our communications segment grew 15% organically from the first half to the second half, demonstrating the diversity of our portfolio. I am also pleased that we didn't hit this downturn flat-footed. Prior to the onset of COVID, we began executing on cost reduction and footprint consolidation plans in the transportation and industrial segments to get to the target margins we've been discussing with you. As we look forward, we do expect quarter 1 sales of $3.2 billion, which is up 1% year-over-year on a reported basis and adjusted earnings per share of $1.25, up 3% year-over-year, which is an expansion in both adjusted operating margins and EPS in the first quarter.

展望 2020 年全年，銷售額為 122 億美元，由於新冠疫情對我們市場的影響，報告銷售額和有機銷售額均同比下降 10%。調整後營業利潤率為 14.2%，調整後每股收益為 4.26 美元。雖然運輸和工業受到市場疲軟的影響，但我們的通信業務從上半年到下半年有機增長了 15%，體現了我們投資組合的多樣性。我也很高興我們沒有在這次經濟低迷時期措手不及。在新冠疫情爆發之前，我們開始在運輸和工業領域執行成本削減和足跡整合計劃，以實現我們一直在與您討論的目標利潤。展望未來，我們預計第一季度銷售額將達到 32 億美元，按報告數據同比增長 1%，調整後每股收益為 1.25 美元，同比增長 3%，這是一個擴張第一季度調整後營業利潤率和每股收益。

So if you could, I would appreciate if you turn to Slide 4, and let me talk about orders across the businesses as well as geographically. For the fourth quarter, our orders were over $3.3 billion and our book-to-bill improved to 1.03, as I mentioned earlier. On a year-over-year basis, transportation orders grew 12%, driven by auto, but we did also see growth in our commercial transportation and sensors orders as well. Industrial declines year-over-year were primarily driven by the ongoing weakness in commercial aerospace. And in communications, our growth was 13%, driven by the appliances business unit as that market recovers globally post-COVID. Our book-to-bill was above 1 in transportation and below 1 in our other segments, supporting our sequential revenue growth in quarter 1 in our transportation segment and the declines we expect sequentially in industrial and communications.

因此，如果可以的話，請轉到幻燈片 4，讓我談談跨業務和跨地域的訂單，我將不勝感激。正如我之前提到的，第四季度我們的訂單超過 33 億美元，訂單出貨比提高到 1.03。在汽車的推動下，運輸訂單同比增長了 12%，但我們的商業運輸和傳感器訂單也出現了增長。工業同比下降主要是由於商業航空航天領域的持續疲軟所致。在通信領域，隨著家電業務部門在新冠疫情后全球市場的複蘇，我們的增長達到了 13%。我們的運輸部門的訂單出貨比高於 1，而其他部門的訂單出貨比低於 1，這支持了我們運輸部門第一季度收入的環比增長以及我們預計工業和通信部門的環比下降。

So let me add some color on orders from a geographic perspective. For the second consecutive quarter, we saw an increase of orders in China, which were up nearly 25% year-over-year in the fourth quarter with growth in each of our segments, but particularly strength in transportation. We saw approximately 8% year-over-year growth in our orders in Europe and this was also primarily driven by transportation. And in North America, our orders declined 8% year-over-year, primarily driven by the industrial segment and weakness in the comm air market.

因此，讓我從地理角度為訂單添加一些顏色。我們在中國的訂單連續第二個季度增長，第四季度同比增長近 25%，我們各個細分市場都在增長，尤其是運輸領域的強勁增長。我們在歐洲的訂單同比增長約 8%，這主要是由運輸推動的。在北美，我們的訂單同比下降 8%，這主要是受到工業領域和通信航空市場疲軟的推動。

So with that as a backdrop of orders, let me get into the segment results, and they'll be on Slides 5 through 7, and I'll hit the high points that will be on the slides as I go through the segments.

因此，以訂單為背景，讓我進入細分結果，它們將出現在幻燈片 5 到 7 上，當我瀏覽這些細分時，我將觸及幻燈片上的要點。

So let me start with transportation. Transportation sales were down 6% organically year-over-year with declines in each of our business, as you can see on the slide. In auto, sales were down 4% organically, driven by global auto production declines. Even with the dynamic changes in the auto market due to COVID in 2020, we generated 6 points of content growth for the full year. And that just proves our continued outperformance versus the weaker market. I would ask you to keep in mind that content growth can vary quarter-by-quarter, but we continue to expect 4% to 6% content growth in auto over the long term. And when you look at 2020, the production of internal combustion vehicles dropped nearly 20% this year. But we did benefit from the increase in hybrid and electric vehicle production, that was up 13% in our fiscal year.

那麼讓我從交通開始吧。正如您在幻燈片中看到的那樣，運輸銷售額同比有機下降 6%，我們每項業務均出現下滑。在汽車領域，由於全球汽車產量下降，銷量自然下降了 4%。即使 2020 年汽車市場因新冠疫情而發生動態變化，我們全年的內容增長仍達到了 6 個百分點。這恰恰證明了我們相對於疲軟的市場的持續表現。我請您記住，內容增長可能會因季度而異，但我們仍然預計汽車行業的長期內容增長為 4% 至 6%。展望2020年，今年內燃機汽車的產量下降了近20%。但我們確實受益於混合動力和電動汽車產量的增長，本財年增長了 13%。

When you look at hybrid and electric vehicle production, it now represents 10% of the total global auto production. And we expect that EV and HEV production to reach approximately 20 million units in the next 5 years. Our customers' plans remain on track for full battery electric and hybrid electric vehicles, and there's even been some acceleration of road maps as OEMs respond to increased demand and a more stringent regulatory environment in certain parts of the world. We are a leading provider of technology and products to our customers as they move to more sustainable hybrid and electric platforms. In sensors, we saw 10% growth year-on-year due to the revenue contribution from the first sensor acquisition. And on an organic basis, sales increased 9% sequentially, as we expected, with our year-over-year performance being impacted by the market volatility. We continue to grow our design win pipeline and auto applications and expect growth as these platforms increase in volume.

如果你看看混合動力和電動汽車的產量，它現在佔全球汽車總產量的 10%。我們預計未來5年EV和HEV產量將達到約2000萬輛。我們客戶的全電池電動和混合動力電動汽車計劃仍在按計劃進行，隨著原始設備製造商應對世界某些地區不斷增長的需求和更嚴格的監管環境，路線圖甚至有所加快。我們是領先的技術和產品供應商，為客戶轉向更可持續的混合動力和電動平台。在傳感器方面，由於首次收購傳感器帶來的收入貢獻，我們看到同比增長 10%。在有機基礎上，銷售額環比增長了 9%，正如我們預期的那樣，我們的同比業績受到市場波動的影響。我們將繼續發展我們的設計贏得管道和汽車應用程序，並預計隨著這些平台數量的增加而增長。

Adjusted operating margins for the transportation segment declined year-over-year as a result of the planned inventory work down in the quarter that I mentioned earlier. We expect significant sequential adjusted margin expansion in the transportation segment in the first quarter, which will be the driver of the company's margin expansion, both sequentially and year-over-year in the first quarter.

由於我之前提到的季度計劃庫存工作減少，運輸部門的調整後營業利潤率同比下降。我們預計第一季度運輸部門調整後的利潤率將出現大幅環比擴張，這將成為該公司第一季度利潤率環比和同比擴張的推動力。

Let me turn to the industrial segment. In this segment, sales declined 6% organically year-over-year, and our adjusted operating margins were approximately 14%, and impacted by the lower volumes as well as some of the inventory work down. We remain on track with our long-term margin expansion plans in this segment and we remain focused on driving adjusted operating margins into the high teens. During the quarter, the segment continued to be impacted by the decline in the commercial aerospace market with our aerospace, defense and marine business declining 13% organically. We do expect the comm air weakness to continue into early 2021 as the market is still in the process of bottoming.

讓我談談工業領域。在該細分市場中，銷售額同比有機下降 6%，調整後的營業利潤率約為 14%，這是受到銷量下降以及部分庫存減少的影響。我們仍按計劃實施該領域的長期利潤擴張計劃，並繼續專注於將調整後的營業利潤率推至高位。本季度，該部門繼續受到商業航空航天市場下滑的影響，我們的航空航天、國防和船舶業務有機下降了 13%。我們確實預計，由於市場仍處於觸底過程，通信空氣的疲軟將持續到 2021 年初。

In our industrial equipment business, our revenue was down 2% organically and better than we expected, with declines in Europe being partially offset by growth in Asia. We continue to see weakness in our medical business with ongoing delays in elective procedures caused by COVID. We believe this is a short-term dynamic in our medical business as consistent with what our customers are seeing, and we expect this market to return to strong growth as elective procedures start to increase.

在我們的工業設備業務中，我們的收入有機下降了 2%，好於我們的預期，其中歐洲的下降被亞洲的增長部分抵消。我們的醫療業務繼續疲軟，因新冠肺炎導致擇期手術持續延誤。我們相信，這是我們醫療業務的短期動態，與我們的客戶所看到的一致，我們預計隨著選擇性手術開始增加，該市場將恢復強勁增長。

Turning now to communications. Our sales grew 11% organically year-over-year with growth in both data and devices as well as appliances. We continue to benefit from the recovery in China and Asia more broadly, which represents over half of our sales in this segment. Data and devices grew 7% organically year-over-year due to our strong position that we've built in high-speed solutions and cloud applications. Appliances grew 18% organically year-over-year with growth across all regions and benefits from an improved housing market as well as supply chain replenishment. Our communications team performed very well and adjusted operating margins grew to over 21% in the fourth quarter. This strong performance is a result of the multiyear transformation of our portfolio and reduction in our cost structure and manufacturing footprint. Adjusted operating margins for the segment for the full year were 16%, which is in line with our target, and we continue to expect mid-teens operating margins long-term in this segment.

現在轉向通信。隨著數據和設備以及電器的增長，我們的銷售額同比有機增長 11%。我們繼續受益於中國和亞洲更廣泛的複蘇，這占我們在該領域銷售額的一半以上。由於我們在高速解決方案和雲應用程序方面建立的強大地位，數據和設備同比有機增長 7%。家電業務同比有機增長 18%，所有地區均實現增長，並受益於住房市場的改善以及供應鏈的補充。我們的傳播團隊表現非常出色，第四季度調整後的營業利潤率增長至 21% 以上。這種強勁的業績是我們產品組合多年轉型以及成本結構和製造足跡減少的結果。該部門全年調整後營業利潤率為 16%，符合我們的目標，我們繼續預計該部門的長期營業利潤率將達到 15% 左右。

So with this overview of segment performance, let me turn it over to Heath, who'll get into more details on the financials as well as our quarter 1 expectations.

因此，在對部門業績的概述之後，讓我將其交給 Heath，他將詳細介紹財務狀況以及我們第一季度的預期。

Thank you, Terrence, and good morning, everyone. Please turn to Slide 8, where I will provide more details on the Q4 financials. Adjusted operating income was $473 million with an adjusted operating margin of 14.5%. GAAP operating income was $347 million, and included $113 million of restructuring and other charges and $13 million of acquisition-related charges. For the full year, restructuring charges were $257 million. And I expect restructuring charges of approximately $200 million in fiscal '21 as we continue to optimize our manufacturing footprint and improve the cost structure of the organization. Adjusted EPS was $1.16 and GAAP EPS was $0.69 for the quarter and included a noncash tax-related charge of $0.17 related to an increase of the valuation allowance for certain deferred tax assets. We also had restructuring, acquisition and other charges of $0.31. The adjusted effective tax rate in Q4 and the full year was approximately 17%. And for FY '21, we expect an adjusted effective tax rate around 19%, but it's important to note here that our cash tax rate will still be well below that in the mid-teens.

謝謝你，特倫斯，大家早上好。請參閱幻燈片 8，我將在其中提供有關第四季度財務狀況的更多詳細信息。調整後營業收入為 4.73 億美元，調整後營業利潤率為 14.5%。GAAP 營業收入為 3.47 億美元，其中包括 1.13 億美元的重組和其他費用以及 1,300 萬美元的收購相關費用。全年重組費用為 2.57 億美元。隨著我們繼續優化製造足跡並改善組織的成本結構，我預計 21 財年的重組費用約為 2 億美元。本季度調整後每股收益為 1.16 美元，公認會計原則每股收益為 0.69 美元，其中包括與某些遞延稅資產估值備抵增加相關的 0.17 美元非現金稅收相關費用。我們還有 0.31 美元的重組、收購和其他費用。第四季度和全年調整後的有效稅率約為17%。對於 21 財年，我們預計調整後的有效稅率約為 19%，但值得注意的是，我們的現金稅率仍將遠低於十幾歲左右。

Turning to Slide 9. Sales of $3.3 billion were down 1% on a reported basis and down 4% on an organic basis year-over-year. Currency exchange rates positively impacted sales by $39 million versus the prior year. And at current levels, currency will be a $55 million tailwind in Q1. Now adjusted operating margins were 14.5% and expanded 510 basis points sequentially, as mentioned earlier. And while we anticipated pressure to our operating margin performance due to the planned inventory reduction we highlighted last quarter, I am pleased that we reduced inventory by nearly $300 million in the quarter. Just as a point of reference, our inventory overall came down 12% from the June quarter to the September quarter. And as you can imagine, that had a couple hundred basis points of pressure to our margins as we kept the inventory right-sized. But I feel good about the impact it had on our cash flows.

轉向幻燈片 9。報告銷售額為 33 億美元，同比下降 1%，有機銷售額同比下降 4%。與上一年相比，貨幣匯率對銷售額產生了 3,900 萬美元的積極影響。按照目前的水平，貨幣將成為第一季度 5500 萬美元的推動力。如前所述，目前調整後的營業利潤率為 14.5%，比上一季度擴大了 510 個基點。雖然我們預計由於上季度我們強調的計劃庫存減少會給我們的營業利潤率帶來壓力，但我很高興我們在本季度減少了近 3 億美元的庫存。作為參考，我們的庫存總量從 6 月份季度到 9 月份季度下降了 12%。正如你可以想像的那樣，當我們保持適當的庫存規模時，這對我們的利潤率造成了幾百個基點的壓力。但我對它對我們現金流的影響感到滿意。

The inventory reduction primarily impacted the transportation segment, but we also had some impact in the industrial segment. We continue to execute on our footprint consolidation plans and pursue additional opportunities to drive cost reduction. We remain committed to our business model margin expansion goals, and we expect volume growth combined with our restructuring plans over time to drive adjusted operating margins in transportation to 20%, industrial to the high teens and communications consistently in the mid-teens.

庫存減少主要影響的是交通運輸領域，但我們也對工業領域產生了一些影響。我們繼續執行我們的足跡整合計劃，並尋求更多機會來推動成本降低。我們仍然致力於我們的業務模式利潤率擴張目標，我們預計隨著時間的推移，銷量增長與我們的重組計劃相結合，將推動運輸業的調整後營業利潤率達到 20%，工業利潤率達到高十幾%，通信業的調整後營業利潤始終保持在十幾%。

For the quarter, cash from continuing operating activities was $719 million. Free cash flow was approximately $650 million for the quarter. For the full year, free cash flow was approximately $1.5 billion, which represents 104% cash conversion. For fiscal '21, we expect free cash flow conversion to again be strong at approximately 100%.

本季度持續經營活動產生的現金為 7.19 億美元。本季度自由現金流約為 6.5 億美元。全年自由現金流約為 15 億美元，現金轉化率為 104%。對於 21 財年，我們預計自由現金流轉換將再次強勁，約為 100%。

Looking back on our performance in fiscal '20 and the extreme volatility we saw in our end markets, our cash flow and capital structure performed in line with our expectations. We maintained a strong liquidity position and generated strong free cash flow in each quarter of this year. We maintained a balanced capital strategy, returning capital to shareholders and remaining active in M&A with the acquisition of our first sensor. During the year, we spent $505 million on share repurchases, buying back 6.5 million in shares. At the same time, we continue to invest for future growth through R&D and capital spending initiatives and we're able to gain share with key customers through our robustness we showed in our manufacturing operations. Going forward, we remain committed to our balanced capital deployment strategy and expect to return 2/3 of free cash flow to shareholders while supporting our inorganic growth initiatives.

回顧我們 20 財年的業績以及我們在終端市場看到的極端波動，我們的現金流和資本結構的表現符合我們的預期。我們保持了強勁的流動性狀況，並在今年每個季度產生了強勁的自由現金流。我們保持平衡的資本策略，向股東返還資本，並通過收購我們的第一個傳感器保持積極的併購活動。年內，我們花費了 5.05 億美元用於股票回購，回購了 650 萬股股票。與此同時，我們繼續通過研發和資本支出計劃投資​​於未來的增長，並且我們能夠通過我們在製造業務中表現出的穩健性來贏得主要客戶的份額。展望未來，我們仍然致力於平衡資本配置戰略，並預計將 2/3 的自由現金流返還給股東，同時支持我們的無機增長計劃。

Please turn to Slide 10 to discuss our expectations going forward. For Q1, we are expecting sales of approximately $3.2 billion up 1% on a reported basis and down 2% organically on a year-over-year basis. Sequentially, we are expecting organic growth in transportation to be offset by modest declines in both industrial and communications. On a year-on-year basis, for the first quarter, we expect transportation to be essentially flat organically, communications to grow mid-single digits and industrial to be down mid- to high-single digits. Adjusted EPS is expected to be approximately $1.25, up 3% year-over-year. And for the first quarter, we are expecting significant growth in adjusted operating margins from the fourth quarter levels.

請參閱幻燈片 10 來討論我們對未來的期望。對於第一季度，我們預計銷售額約為 32 億美元，按報告計算增長 1%，同比有機下降 2%。因此，我們預計交通運輸業的有機增長將被工業和通信業的小幅下滑所抵消。與去年同期相比，我們預計第一季度交通運輸將基本持平，通信將實現中個位數增長，工業將出現中個位數到高個位數的下降。調整後每股收益預計約為 1.25 美元，同比增長 3%。對於第一季度，我們預計調整後的營業利潤率將較第四季度的水平大幅增長。

As Terrence mentioned, we are still dealing with low visibility, and it is difficult to predict the shape and slope of the recovery in different end markets and geographies as the world continues to deal with COVID. We do want to share some of our key market assumptions as we plan the business. We expect global auto production to be approximately 21 million units in the first quarter, up sequentially from Q4, but still below prior year levels. Due to the December quarter being the strongest production level of the year in China, we are expecting Q1 to be the high point of global auto production for our fiscal year. We continue to expect strong content growth of 4% to 6%, enabling us to continue outperforming the auto market.

正如泰倫斯提到的，我們仍然面臨著低能見度的問題，隨著世界繼續應對新冠疫情，很難預測不同終端市場和地區的複蘇形狀和斜率。我們確實希望在規劃業務時分享一些關鍵的市場假設。我們預計第一季度全球汽車產量約為 2100 萬輛，環比第四季度有所增長，但仍低於去年同期水平。由於12月季度是中國今年最強勁的生產水平，我們預計第一季度將成為本財年全球汽車產量的高點。我們仍然預計內容將強勁增長 4% 至 6%，使我們能夠繼續跑贏汽車市場。

In industrial, we continue to expect commercial aerospace market to stay weak, declining over 20% for the second consecutive year. And we do -- but we do expect our medical business to improve as we move through the year.

在工業方面，我們繼續預計商業航空市場將保持疲軟，連續第二年下降超過 20%。我們確實如此，但我們確實希望隨著這一年的發展，我們的醫療業務將會有所改善。

In communications, we expect continued increases in cloud provider spending, driven by the growth in online activities and our data and device business plays directly into this favorable trend.

在通信領域，我們預計，在在線活動增長的推動下，雲提供商支出將持續增長，而我們的數據和設備業務將直接推動這一有利趨勢。

So I've already summarized some of our financial assumptions for the fiscal year on this slide, but they are there for easy reference for you.

因此，我已經在這張幻燈片上總結了我們本財年的一些財務假設，但它們僅供您參考。

So now let's open it up for questions.

現在讓我們開放提問。

(Operator Instructions) Your first question is coming from Wamsi Mohan with Bank of America.

（操作員說明）您的第一個問題來自美國銀行的 Wamsi Mohan。

Heath, I was wondering if you could clarify some of the moving pieces on transport margins. Your transport revenues were almost flat on a year-on-year basis, but you had big negative leverage. How much of that was the inventory issue that you were addressing earlier? And can you clarify what the inventory levels are now? And if there's going to be any residual impact to margins in fiscal 1Q? And just as a point of clarification on the comment on reaching the high point of production in the December quarter. I don't think you're suggesting that also implies peak EPS in fiscal 1Q, but I was just hoping you could clarify that as well?

希思，我想知道您是否可以澄清運輸利潤方面的一些變化。你們的運輸收入同比幾乎持平，但你們的負槓桿率很大。其中有多少是您之前解決的庫存問題？您能否澄清一下現在的庫存水平是多少？第一財季的利潤率是否會受到任何殘餘影響？正如對 12 月份季度達到生產高點的評論的澄清。我不認為你建議這也意味著第一財季的每股收益峰值，但我只是希望你也能澄清這一點？

Thanks, Wamsi and let me try to tackle those here. Certainly, that inventory reduction, more than 2/3 of it or so from the total was in transportation, and that was really the driver of our transportation margins being close to the 13% level. So we would expect, as we move forward, inventory is now in the right place in terms of what we need to see moving forward. And I would expect the Q1 numbers to tick up significantly at the transportation level. And as Terrence noted earlier, that will flow through nicely to the overall performance for margins in our first quarter.

謝謝，Wamsi，讓我嘗試解決這些問題。當然，庫存減少，其中超過 2/3 左右的庫存來自於運輸，這確實是我們的運輸利潤率接近 13% 水平的驅動因素。因此，我們預計，隨著我們的前進，庫存現在處於我們未來需要的正確位置。我預計第一季度交通運輸方面的數字將顯著上升。正如泰倫斯之前指出的那樣，這將很好地影響我們第一季度的整體利潤表現。

In terms of the comments around the Q1, we're trying to highlight that the 21 million vehicle auto production number in Q1, we anticipate that 21 million to be the high point in the year. That does not mean that, that's going to be necessarily the high point of TE's revenue or EPS for the year, okay? And we've got other businesses in the portfolio and some do have some seasonality element to it, in addition to some of the medical recovery that we would anticipate more in the second half of our fiscal year. And obviously, we're actively engaged in a lot of cost reductions. We've got pretty significant heavy lifting this year with some plants coming offline. The timing of those will be staggered throughout the year. But as you can imagine, as the year progresses, certainly, we start to benefit more and more from exiting those costs. So hopefully, that clarifies your question.

就第一季度的評論而言，我們試圖強調第一季度汽車產量為 2100 萬輛，我們預計 2100 萬輛將成為今年的最高點。這並不意味著這一定是 TE 今年收入或每股收益的最高點，好嗎？我們的投資組合中還有其他業務，其中一些確實有一些季節性因素，此外還有我們預計在本財年下半年會出現更多的醫療復甦。顯然，我們正在積極致力於降低成本。今年我們的工作量相當大，一些工廠已經停產。這些活動的時間將在全年錯開。但正如你可以想像的那樣，隨著時間的推移，我們當然開始從取消這些成本中受益越來越多。希望這能澄清你的問題。

Our next question comes from the line of Amit Daryanani with Evercore.

我們的下一個問題來自 Amit Daryanani 和 Evercore 的對話。

I was hoping, Terrence, maybe you could talk a little bit about content growth and how do you see that stacking up in fiscal '21, especially on the EV market in a scenario where there are more type of fuel efficiency and emission standard requirements, especially in the U.S. What could that do to that content growth number that you guys have in fiscal '21?

我希望泰倫斯，也許你可以談談內容增長，以及你如何看待 21 財年的內容增長，特別是在電動汽車市場上，在存在更多類型的燃油效率和排放標準要求的情況下，尤其是在美國，這會對你們 21 財年的內容增長數字產生什麼影響？

Yes. Certainly. And I don't -- I think 2020 clearly solidified where we sort of say 4% to 6%. There is an element of where does the consumer go to buy as well as the government programs helping. One of the things that have been very nice, and I mentioned in the comments, is you see EV production and car sales really increase last year, double-digit in what's a really tough economy. And it was more in Europe than it actually was where it's been in Asia. And we still view that Asia and Europe will be the leading areas where you get adoption. Like we've always said, is you do typically mean where you need -- where EVs are still less penetrated, you do need some government health to basically make sure as that scales. And the U.S. is still an area that is less penetrated than the others and have less regulation. So anything that helps EV penetration and increased penetration helps our growth. And a chunk of our content is driven by the EV growth this past year being in the double digits and we're bullish on EV. And certainly, we've been investing to make sure we help scale that architecture globally. And what's nice is it looks like the bigger adoption is going to be in Europe and Asia, which is our strongest market positions.

是的。當然。我不認為——我認為 2020 年明顯穩定在 4% 到 6% 的水平。消費者去哪裡購買以及政府計劃的幫助是一個因素。我在評論中提到的一件非常好的事情是，去年電動汽車的產量和汽車銷量確實增長了，在經濟非常困難的情況下實現了兩位數的增長。歐洲的情況比亞洲的實際情況要多。我們仍然認為亞洲和歐洲將是您採用的主要地區。就像我們一直說的那樣，你通常指的是你需要的地方——電動汽車滲透率仍然較低的地方，你確實需要一些政府的健康來基本上確保這種規模的擴大。而且美國仍然是一個滲透率低於其他國家且監管較少的地區。因此，任何有助於電動汽車普及和提高普及率的事情都有助於我們的增長。我們的大部分內容是由去年電動汽車以兩位數增長推動的，我們看好電動汽車。當然，我們一直在投資，以確保我們幫助在全球範圍內擴展該架構。令人高興的是，歐洲和亞洲似乎將有更大的採用率，這是我們最強大的市場地位。

Your next question comes from the line of Mark Delaney with Goldman Sachs.

你的下一個問題來自高盛的馬克·德萊尼（Mark Delaney）。

Hello, Mark. Are you on? All right. It looks like we're having an issue. Could we go to the next question, please? We'll come back to Mark.

你好，馬克。在嘛？好的。看來我們遇到了問題。我們可以進入下一個問題嗎？我們會回到馬克。

Your next question comes from the line of Craig Hettenbach with Morgan Stanley.

您的下一個問題來自摩根士丹利的 Craig Hettenbach。

A question for Terrence. If I look at your December quarter, it looks a bit above typical seasonality. I know this is a very unusual year in terms of what's played out up to date. But just curious to get your context in terms of what you're seeing for December versus what you typically see and any puts and takes by the end markets there?

問特倫斯一個問題。如果我看看你們 12 月份的季度，它看起來有點高於典型的季節性。我知道就目前的情況而言，今年是非常不尋常的一年。但只是想了解您所看到的 12 月份情況與您通常看到的情況以及終端市場的任何看跌期權和看跌期權的情況？

Yes. Let me spend a little time on it. And the first thing I would say is, and Heath talked about it, so that we're all aligned, auto production typically in the December quarter is the strongest quarter of the year, global auto production. And that's really driven by China being the largest car producing country in the planet. And as they've taken that position, the December quarter is typically the strongest in China. And that's why we believe the first quarter can be probably the strongest for the year. But as we look across the portfolio, you take areas like industrial transportation, there are areas that have been hit hard by COVID. We did see sequential improvement. We did benefit from China strength, but our global position is also driving great content in places like India and Europe that we think can be a growth driver as we go into next year, even though China may have some market anniversarying. That becomes a little bit tougher.

是的。讓我花一點時間在上面。我要說的第一件事是，Heath 談到了這一點，以便我們都保持一致，通常在 12 月季度的汽車生產是一年中全球汽車生產最強勁的季度。這實際上是由中國作為全球最大的汽車生產國推動的。由於他們採取了這一立場，12 月份的季度通常是中國最強勁的。這就是為什麼我們相信第一季度可能是今年最強勁的季度。但當我們縱觀整個投資組合時，你會發現工業運輸等領域受到了新冠疫情的嚴重打擊。我們確實看到了連續的改進。我們確實受益於中國的實力，但我們的全球地位也在印度和歐洲等地推動了優質內容的發展，我們認為這些內容可以成為我們明年的增長動力，儘管中國可能會有一些市場週年慶。這變得有點困難。

In the industrial markets, Craig, comm air, we do expect. We are in the middle of a bottoming process there. We do think that will be a little bit negative as we go into the early part of '21. But we do get excited that the medical business is going to be rebounding back here as elective procedures pick up. And in communications, we talk a lot about our performance this past year. And I think we're going to continue to benefit from -- as our global appliance position, that -- you saw the benefit in revenue as we go into next year and that recovers and certainly rebounds as well as where we've done things secularly in our D&D business, which has been a lot of hard work and we repositioned that. So I do think it's a little bit different than normal seasonality. Seasonality is tough to sort of think about in this environment when our customers are telling us visibility is short. But it's nice to see the recovery coming back a little bit faster than we thought in auto. And we're trying to stay close to our customers or how do we help them as we're all dealing with an environment where visibility is light.

在工業市場，克雷格、通訊空氣，我們確實期待。我們正處於觸底過程之中。我們確實認為，當我們進入 21 世紀初期時，這會有點負面。但我們確實感到興奮的是，隨著擇期手術的增多，醫療業務將反彈回來。在傳播方面，我們談論了很多關於過去一年的表現。我認為我們將繼續受益於我們的全球家電地位，當我們進入明年時，你會看到收入的好處，並且收入會恢復，並且肯定會反彈，就像我們所做的事情一樣長期致力於我們的研發業務，這是一項艱苦的工作，我們對此進行了重新定位。所以我確實認為這與正常的季節性有點不同。當我們的客戶告訴我們能見度很低時，在這種環境下很難考慮季節性。但很高興看到汽車行業的複蘇速度比我們想像的要快一些。我們正在努力與客戶保持密切聯繫，或​​者我們如何幫助他們，因為我們都在處理能見度較低的環境。

Your next question comes from the line of Shawn Harrison with Loop Capital.

您的下一個問題來自 Loop Capital 的 Shawn Harrison。

My congrats on the strong finish to 2020. I wanted to just dig a little bit deeper into margins on a twofold aspect. Number one, do you expect transportation EBIT margins to be back to the year ago level now adjusted for the inventory that came out? And second, how do we think of kind of incremental margins, either across transportation as well as industrial from here knowing that we've had a couple of years of restructuring in hand?

我祝賀 2020 年取得圓滿成功。我想從雙重方面更深入地挖掘利潤。第一，您預計運輸業息稅前利潤率會回到一年前的水平（現在已根據庫存調整）嗎？其次，我們如何看待交通運輸和工業領域的增量利潤，因為我們已經進行了幾年的重組？

Thanks, Shawn. This is Heath. I think you can -- as we look into FY '21, and obviously, we're only guiding this first quarter. We feel pretty confident in our ability to get back to prior year levels in terms of margins for transportation, for sure. In terms of the incrementals, I think it's fair to say at the TE level that thinking about a 30% or 35% flow-through is a fair way to think about it. And that pretty much is consistent down through the segments. Now we used to say kind of 25% to 30%, if you recall, in some of the activities that we've undertaken are allowing us to step up some of that commentary a little bit. So I feel pretty good about that.

謝謝，肖恩。這是希斯。我認為你可以——當我們展望 21 財年時，顯然，我們只是在第一季度提供指導。當然，我們對運輸利潤率恢復到去年水平的能力充滿信心。就增量而言，我認為可以公平地說，在 TE 級別，考慮 30% 或 35% 的流量是一種公平的思考方式。這在各個細分市場中幾乎是一致的。現在我們過去常說 25% 到 30%，如果你還記得的話，在我們開展的一些活動中，我們可以稍微加強一些評論。所以我對此感覺很好。

Now keep in mind that some of the heavy lifting that we're doing on restructuring in some of these plants, if they were -- if these plants are easy to take offline, we would have done that a long time ago. So they are, in many cases, from the time that we announce and take a charge, it can take 12 to 15 months to completely get them offline and exit the costs from those. So we're active. We've seen plants come offline in FY '20. And then in FY '21, we'll see another surge of that. So we're really probably talking FY '22 and so forth before you start to see the more significant step-up incrementally from here. But certainly, at the TS level, we expect margins to improve dramatically in our fiscal first quarter.

現在請記住，我們正在對其中一些工廠的重組進行一些繁重的工作，如果它們很容易離線，我們很久以前就會這樣做。因此，在很多情況下，從我們宣布並收取費用之時起，可能需要 12 到 15 個月的時間才能完全讓它們下線並從中扣除費用。所以我們很活躍。我們已經看到工廠在 20 財年停產。然後在 21 財年，我們將看到這種情況再次激增。因此，在您開始看到從這裡開始逐步實現更重要的進步之前，我們確實可能正在談論 22 財年等。但可以肯定的是，在 TS 層面，我們預計第一財季的利潤率將大幅提高。

Your next question comes from the line of David Kelley with Jefferies.

你的下一個問題來自大衛·凱利和杰弗里斯的對話。

Just wanted to get a feel for some of the opportunities that are front of mind for TE into the new year, with hopefully some continued grant towards normalcy. So could you talk about some of the biggest strategy, the opportunities out there that you see on the horizon, things like whether it's ramping electrification in autos, return to M&A or kind of broad electronification as a content driver?

只是想了解一下 TE 在新的一年中優先考慮的一些機會，希望能繼續獲得一些資助以恢復常態。那麼，您能談談一些最大的戰略嗎？您看到的即將出現的機會，比如汽車電氣化、回歸併購還是廣泛的電子化作為內容驅動力？

Sure. Thanks, David. And let me take that. First of all, it is nice to see the world still in recovery mode, certainly with the uncertainty that's around us due to COVID. But probably the first thing that we're excited about is not only how the portfolio is sort of playing out like we expected in the cycle because it will be impacted by auto cycles due to our great position there, but I would also tell you that dealing with what we've dealt with in 2020 that we do have a clean portfolio versus what we've had in other cycles, I think came true. And honestly, it allows us to play offense around where we make our investments organically as well as if we do want to bring bolt-ons in. And from that viewpoint, I think that's the #1 thing that's nice going through the cycle versus others.

當然。謝謝，大衛。讓我接受一下。首先，很高興看到世界仍處於復蘇模式，當然，由於新冠疫情，我們周圍存在著不確定性。但我們興奮的第一件事可能不僅是投資組合如何像我們在周期中預期的那樣發揮作用，因為由於我們在那裡的良好地位，它將受到汽車週期的影響，但我還要告訴你就我們在 2020 年所處理的問題而言，與其他週期相比，我們確實擁有一個乾淨的投資組合，我認為這是真的。老實說，它使我們能夠在我們進行有機投資的地方以及我們是否確實想引入補充性投資方面發起進攻。從這個角度來看，我認為這是與其他人相比，經歷這個週期的第一件事。

I think we gave you some examples about the content. The #1 content driver for TE is around automotive. It is around electrification. It's also the element, also around data in the car. And that's why we get excited with the 600 basis points we showed last year of outperformance. And we are confident with the wins we have that type of level in our 4% to 6% that we've told you about above production as global production continues to heal. And let's face it, we're still well off, the 90-plus million units of cars produced a few years ago. The other thing that I would tell you is during this downturn, it's given us an opportunity in many ways to really make sure we get closer to our customers. They need to make sure they have the partners with them that are going to be there long term. And I do believe our manufacturing strategy that we've been investing in, which includes the cost actions that Heath talked about, has really been an element of how do we get and continue to move our global manufacturing to be local for local. And it's been a journey. We have a lot of work to do on that. It provides cost, but it also provides service elements. And it does come back to why we feel good that we didn't enter this flat-footed. We understand that we have margin opportunity in transportation and industrial. We've been talking about that. And how do we couple that with the content opportunities, not only in automotive, but in medical and also what we've done in cloud are things that we get really excited about and we have the engineering wins that support that. So as we're all dealing with an uncertain environment, that we have to navigate through and adjust to, but we also have to accept the reality of the opportunities as well as where some markets like comm air, we have to adjust to the reality of that market won't be what it was. And they're the things I think will drive both growth levers from here, but also margin levers. And our capital structure and free cash flow generation allows us to make sure we can be focused on improving the business and growing the business.

我想我們給了你一些關於內容的例子。TE 的第一大內容驅動因素是汽車。它圍繞電氣化。它也是一個元素，也圍繞著汽車中的數據。這就是為什麼我們對去年表現出色的 600 個基點感到興奮。我們對勝利充滿信心，隨著全球產量持續恢復，我們已經將產量控制在 4% 至 6% 的水平。讓我們面對現實吧，我們仍然很富裕，幾年前生產了 90 多萬輛汽車。我要告訴你的另一件事是，在這次經濟低迷時期，它給了我們一個機會，以多種方式真正確保我們更接近客戶。他們需要確保擁有長期合作的合作夥伴。我確實相信我們一直在投資的製造戰略，其中包括希思談到的成本行動，確實是我們如何實現並繼續將我們的全球製造本地化的一個要素。這是一段旅程。我們在這方面還有很多工作要做。它提供了成本，但也提供了服務要素。這確實回到了為什麼我們感覺很好，因為我們沒有進入這個措手不及的狀態。我們知道我們在運輸和工業領域有利潤機會。我們一直在談論這個。我們如何將其與內容機會結合起來，不僅在汽車領域，而且在醫療領域以及我們在雲領域所做的事情都是我們真正感到興奮的事情，並且我們擁有支持這一點的工程勝利。因此，當我們都面臨著一個不確​​定的環境時，我們必須適應並適應這一環境，但我們也必須接受機會的現實，以及像通信航空這樣的一些市場，我們必須適應現實那個市場將不再是原來的樣子。我認為它們既會推動增長槓桿，也會推動利潤槓桿。我們的資本結構和自由現金流生成使我們能夠確保我們能夠專注於改善業務和發展業務。

Your next question comes from the line of Deepa Raghavan with Wells Fargo Securities.

您的下一個問題來自富國銀行證券公司的 Deepa Raghavan。

I have a margin question, too. Q1, year-on-year, how do you think about industrial margins in Q1? I'm assuming we won't see the inventory impact repeat in Q1. So would that grow margins year-on-year in Q1? Also, your leverage in autos should be pretty nice in Q1, just given that auto production, peak volumes, 21 million. But what kind of margin levers do you have post-Q1? And should we expect that margins in TS can grow rest of the year also? I mean, clearly, you've under-earned because of COVID situation in 2021.

我也有一個保證金問題。Q1，與去年同期相比，您如何看待第一季度的工業利潤率？我假設我們不會在第一季度看到庫存影響再次出現。那麼第一季度的利潤率會同比增長嗎？此外，考慮到汽車產量峰值為 2100 萬輛，第一季度汽車行業的槓桿率應該相當不錯。但第一季度後你有什麼樣的保證金槓桿？我們是否應該預期 TS 的利潤率在今年剩餘時間也能增長？我的意思是，很明顯，由於 2021 年的新冠疫情，你的收入不足。

Well, thanks, Deepa, that's -- there's a lot packed into that questions. So let me get at it. The industrial margins, I think the prudent viewpoint on that is that they'll kind of move -- they'll be consistent in Q1 with what you saw in our fiscal fourth quarter that we just completed, albeit on lower revenue, which was expected and there is some seasonality as we move generally through the year within industrial. So I think we're holding our own there in terms of the journey within the industrial margin structure. But from a Q4 to Q1, I think you should expect those to be roughly flat on lower revenue.

嗯，謝謝，迪帕，這些問題包含了很多內容。那麼讓我來看看吧。我認為，謹慎的觀點是，工業利潤率會有所變化——第一季度的工業利潤率將與我們剛剛完成的第四財季的情況保持一致，儘管收入較低，這是預期的當我們在工業領域內普遍經歷一年中的變化時，存在一些季節性。因此，我認為我們在工業利潤結構的進程中保持著自己的地位。但從第四季度到第一季度，我認為您應該預計這些收入將與較低的收入大致持平。

Obviously, your question around auto and then more broadly, TS, the impact that it has. You are correct. I mean we do have some good leverage there. In terms of our Q1 performance, I think we've talked about a few different times here on the call in terms of seeing significant sequential improvement in that. And then as we move throughout the year, the auto was obviously -- gained the benefit of the content, we've seen those -- that activity continue to be strong, but it kind of gets down a little bit to what you think auto production is going to do in the subsequent quarters. That's one element of it. And then obviously, as we layer in some of the restructuring activities, we have several plants that will be coming offline, but you'll see those more impacted late in FY '21 and more pointedly in FY '22. So there are some pieces there, but we feel very good about the actions we've taken to date and what that allows us to do on the incrementals moving forward. And again, we've kind of stepped up our dialogue there from, I'll say, pre-COVID activities in terms of what we think the incrementals could look like.

顯然，你的問題是關於汽車，以及更廣泛的問題，TS，它所產生的影響。你是對的。我的意思是我們確實有一些很好的影響力。就我們第一季度的表現而言，我認為我們已經在電話會議上多次討論過看到顯著的連續改進。然後，隨著我們全年的發展，汽車顯然 - 獲得了內容的好處，我們已經看到了這些 - 活動繼續強勁，但它有點下降到你認為的汽車生產將在接下來的幾個季度進行。這是其中的一個要素。顯然，隨著我們進行一些重組活動，我們有幾家工廠將關閉，但您會看到這些工廠在 21 財年末受到的影響更大，在 22 財年受到的影響更明顯。所以有一些部分，但我們對迄今為止所採取的行動以及這些行動使我們能夠在未來的增量方面做的事情感到非常滿意。再說一次，我想說的是，從我們認為增量可能是什麼樣子的角度來看，我們在新冠疫情之前的活動中加強了對話。

Your next question is from the line of Samik Chatterjee with JPMorgan.

您的下一個問題來自摩根大通的 Samik Chatterjee。

I just wanted to hit the EV content story in a different way and see if I can get some more color here. Particularly when I'm -- you reiterated today, the 4% to 6% content growth in automotive as well as the 20% margin outlook longer term. Why shouldn't I be thinking of, as the EV content story kind of plays out, there being upside pressure on both of those long-term targets, be it content outperformance or be it 20% margin. If kind of what we're seeing in terms of road map acceleration on EVs does play out?

我只是想以不同的方式講述電動汽車內容故事，看看是否可以在這裡獲得更多色彩。特別是當我——你今天重申了汽車領域 4% 到 6% 的內容增長以及 20% 的長期利潤率前景時。為什麼我不應該考慮，隨著電動汽車內容故事的展開，這兩個長期目標都面臨著上行壓力，無論是內容表現出色還是 20% 的利潤率。如果我們在電動汽車路線圖加速方面看到的情況確實發生了？

I think the key that you have is we do have to remember we are on every core today. And certainly, when we think about the 4% to 6%, EV is probably 200 to 300 basis points of that. So when you look at that, when we think about it, it's across our whole portfolio. So we continue to see very strong growth in EV, in high-powered products, but you also have to realize what percentages of global auto production. So I think you will have years and if EV goes quicker and in adoption, you would have us closer to the higher end of our 4% to 6% range, but certainly, adoption will be important.

我認為關鍵是我們必須記住我們今天在每個核心上。當然，當我們考慮 4% 到 6% 時，EV 可能是其中的 200 到 300 個基點。因此，當你看到這一點時，當我們思考它時，它遍及我們的整個投資組合。因此，我們繼續看到電動汽車和高性能產品的強勁增長，但你也必須意識到全球汽車產量的百分比。因此，我認為，如果電動汽車發展得更快並得到廣泛採用，我們將更接近 4% 至 6% 範圍的高端，但當然，採用將很重要。

The other thing I would just say to the margin element, like anything, EV products are things we have to scale. And from that viewpoint, how they scale and how we get volume leverage is going to be very important of whether there would be margin upside potential to our target margins.

我想說的另一件事是利潤因素，就像任何事情一樣，電動汽車產品是我們必須規模化的東西。從這個角度來看，它們如何擴展以及我們如何獲得交易量槓桿對於我們的目標利潤率是否具有利潤率上行潛力將非常重要。

Your next question comes from the line of Mark Delaney with Goldman Sachs.

你的下一個問題來自高盛的馬克·德萊尼（Mark Delaney）。

Apologies for the connection issues I was having before. I was hoping to seek more on the electric vehicle opportunity. And I think the content is about double in an EV for TEL compared to a traditional car. Now that you're seeing a number of EV start-ups come to market, are you seeing a similar type of content opportunity with some of those customers? And then maybe also just talk about any differences on margins and end market share. I mean, as this is an evolving landscape, I mean there'd potentially be the opportunity to do more of a solution sale with new entrants into the industry, but also perhaps they're also looking to bring in nontraditional suppliers. So any kind of comments around not only the content opportunity, but also margins and market share?

對於我之前遇到的連接問題表示歉意。我希望尋求更多有關電動汽車的機會。我認為 TEL 電動汽車的內容大約是傳統汽車的兩倍。既然您看到許多電動汽車初創企業進入市場，您是否在其中一些客戶中看到了類似類型的內容機會？然後也許還只是討論利潤率和最終市場份額方面的差異。我的意思是，由於這是一個不斷發展的格局，我的意思是可能有機會與該行業的新進入者進行更多的解決方案銷售，但也許他們也在尋求引入非傳統供應商。那麼，除了內容機會之外，還有利潤和市場份額方面的評論嗎？

Yes, sure, Mark. And it's a question we get a lot and I'll try to frame it here. In many ways, it comes into not only where we innovate with them, it comes into their strategy about how do they want to make the car. In some cases, we've shared examples where we have $500, $600 on an EV product. It's where they're looking to others to do the assembly and more of the manufacturing form. We have ones that have $200, where we're playing much more like our traditional component players. So I think as that space evolves, I think that's why you see the wide variation. But even on the component side, the component side is where we get and we typically stick to the 2x, the opportunity. We also, when you come into margin, you have to say, where do we bring value and where do we bring our engineering. We are not a contract manufacturer. We do not view ourselves as a Tier 1. So that's not been part of our strategy. So that's why we typically tell you 2x. But I would tell you, the opportunity is not just with new start ups. It's also the strategies of every one of the OEMs as they come up and figure out how they want to assemble the vehicles versus traditional. And in some cases, we do more in other places we play our component role. And either way, it creates opportunity for us that drives the content. And what's really great is because we know the architecture so well and there is existing architecture that goes into electric vehicle, that we get content, not just the high-powered products. That's why we get such content opportunity over the combustion engine as well as the electrical powertrain.

是的，當然，馬克。這是一個我們經常被問到的問題，我將嘗試在這裡列出它。在很多方面，這不僅關係到我們與他們一起創新的地方，還關係到他們想要如何製造汽車的戰略。在某些情況下，我們分享了電動汽車產品價值 500 美元、600 美元的示例。他們希望其他人在這裡進行組裝和更多的製造工作。我們有 200 美元的玩家，我們的玩法更像傳統的組件玩家。所以我認為隨著空間的發展，我認為這就是為什麼你會看到巨大的變化。但即使在組件方面，組件方面也是我們獲得的地方，我們通常會堅持 2x，即機會。我們還，當你談到利潤時，你必須說，我們在哪裡帶來價值，我們在哪裡帶來我們的工程。我們不是合同製造商。我們不認為自己是一級供應商。所以這不是我們戰略的一部分。這就是為什麼我們通常告訴您 2x。但我想告訴你，機會不僅僅存在於新的初創企業。這也是每個原始設備製造商在思考如何與傳統方式組裝車輛時所採取的策略。在某些情況下，我們會在其他地方發揮我們的組成部分作用。無論哪種方式，它都為我們創造了推動內容的機會。真正偉大的是，因為我們非常了解該架構，並且現有架構適用於電動汽車，因此我們獲得了內容，而不僅僅是高性能產品。這就是為什麼我們在內燃機和電動動力系統上獲得了這樣的內容機會。

Your next question comes from the line of Matt Sheerin with Stifel.

你的下一個問題來自 Matt Sheerin 和 Stifel 的對話。

Yes. Terrence, another question on the auto market. You talked about Q1 being a peak largely because of China seasonality. Do you have any thoughts on what the production number looks like for your FY '21? And how you see North America and Europe playing out in terms of their catch-up on production and then also sell-through there?

是的。特倫斯，另一個關於汽車市場的問題。您談到第一季度是高峰主要是因為中國的季節性。您對 21 財年的生產數量有什麼想法嗎？您如何看待北美和歐洲在生產和銷售方面的追趕？

As we look at, Matt, and I know I said it, visibility is limited. And what I'd like to keep it to is probably the latter part of your question on sell-through. And we talked about in other calls. The element is it's good to see production recovering, but the real proof in the pudding is, are people buying cars? And what has been nice if you go in Asia and as that ramps, we had concerns of what was pent-up demand versus ongoing sell-through. And China, as you've seen from the figures, has stayed pretty consistent with the sell-through and the inventory levels in China are at very normalized levels.

正如我們所看到的，馬特，我知道我說過，能見度是有限的。我想保留的可能是你關於銷售問題的後半部分。我們在其他電話中也談到過。關鍵是看到生產恢復是件好事，但布丁中真正的證據是，人們買汽車嗎？如果你去亞洲，那麼隨著亞洲市場的增長，我們會擔心被壓抑的需求與持續的銷售量之間的關係。正如您從數據中看到的，中國的銷售量與中國的庫存水平非常一致，並且處於非常正常的水平。

In North America, certainly, production is ramping. We also see that the demand is nice and inventory levels are at a comfortable spot. The one area where I would say inventory is still elevated is Europe. Some of that, we've also told you is relates to -- with the regulatory changes there between EV and combustion engines, I do think the consumer has been a little bit more cautious on vehicle purchases. So that's the one area that we continue to look at to say, "Hey, we'd like to see inventories work down, we'd like the structures and some of the incentive programs governments have put into place to really do cash for Concur type programs and incent EVs, but we still need to see inventories come down in Europe."

當然，在北美，產量正在增加。我們還看到需求良好，庫存水平處於舒適的水平。我認為庫存仍然較高的地區是歐洲。我們還告訴過您，其中一些與電動汽車和內燃機之間的監管變化有關，我確實認為消費者在購買車輛時更加謹慎。因此，這是我們繼續關注的一個領域，“嘿，我們希望看到庫存下降，我們希望政府實施的結構和一些激勵計劃能夠真正為 Concur 帶來現金”類型計劃和激勵電動汽車，但我們仍然需要看到歐洲的庫存下降。”

Your next question comes from the line of Chris Snyder with UBS.

你的下一個問題來自瑞銀集團的克里斯·斯奈德。

So the company's capital intensity has picked up over the last couple of years, which I assume is largely driven by the scaling of EV capacity. But should CapEx intensity come down as we kind of look out the next couple of years just as this build-out winds down? And then what does this level of investment mean for competitive positioning within the EV market, as it seems like smaller competitors will have trouble matching this level of investment? And could that transition further add to the moat around the business?

因此，該公司的資本密集度在過去幾年中有所上升，我認為這很大程度上是由電動汽車產能擴張推動的。但是，當我們展望未來幾年，隨著這種擴張的結束，資本支出強度是否應該下降？那麼，這種投資水平對於電動汽車市場的競爭定位意味著什麼，因為規模較小的競爭對手似乎很難匹配這種投資水平？這種轉變是否會進一步增強業務的護城河？

Well, thanks, Chris. We did heighten up our -- tick up our CapEx investments. If you go back a couple of years ago, we were running -- we're up north of $900 million. I think you've seen that number certainly come down over the past couple of years. And I would say our viewpoint as we look at FY '21 is consistent. You should probably think about somewhere around that 5% of revenue in terms of our CapEx intensity, certainly no more than that.

嗯，謝謝，克里斯。我們確實加大了資本支出投資。如果你回到幾年前，我們的資金已經超過 9 億美元。我想你已經看到這個數字在過去幾年里肯定有所下降。我想說，我們對 21 財年的看法是一致的。就我們的資本支出強度而言，您可能應該考慮收入的 5% 左右，當然不會超過這個數字。

One of the things we do benefit from is as we were increasing our capacity, and that's both to support the traditional combustion engine customers, but it was heavier weighted towards some of the EV fit up in our factories. Certainly, we're able to now utilize that. That was done under the assumption of significantly higher auto production than what we saw in FY '20 and anticipate in FY '21. But we are able to utilize some of that capacity as we bring some of these plants offline. We talked to you about restructuring dollars to take some of these plants, primarily in Europe, offline. You don't hear us talking about incremental CapEx on the receiving end of where that activity is going to go because that's already in place. And you -- the second part of your question around does this differentiate us versus others. I certainly think it does. I can't give you -- speak on behalf of other companies and what their capital structures are in terms of some of the smaller players. But I can tell you that it is -- there is, particularly on the front end, a fair amount of capital investment, both on the CapEx side as well as on the engineering front to support these customers, particularly as Terrence noted, as it's an evolving area in terms of what actually is going to be produced where and who's going to do what. And I think we're very well positioned. And as you know, to make money in this business, it's all about scale, and it's about having the ability to handle the customers' needs and be able to ramp production at full scale. And that's what we're good at.

我們確實受益的事情之一是我們增加了產能，這既是為了支持傳統的內燃機客戶，但它更側重於我們工廠中安裝的一些電動汽車。當然，我們現在可以利用它。這是在汽車產量顯著高於 20 財年和 21 財年預期的假設下完成的。但當我們關閉其中一些工廠時，我們就能夠利用其中的一些產能。我們與您討論了重組資金以關閉其中一些工廠（主要是在歐洲）的問題。您不會聽到我們談論該活動的接收端的增量資本支出，因為這已經到位。而你——你的問題的第二部分是否使我們與其他人區分開來。我當然認為確實如此。我無法代表其他公司向您講述一些較小企業的資本結構。但我可以告訴你，確實存在——特別是在前端，在資本支出方面以及工程方面都有相當多的資本投資來支持這些客戶，特別是正如特倫斯所指出的那樣，因為它這是一個不斷發展的領域，涉及實際生產什麼、在哪里以及誰將做什麼。我認為我們處於非常有利的位置。如您所知，要在這個行業賺錢，一切都取決於規模，而且取決於是否有能力滿足客戶的需求並能夠全面提高產量。這就是我們所擅長的。

Yes. Heath is exactly right. I mean it is important, while there are start-ups, you still have to get the price points and where the consumer is there and scale is a big advantage. It is something that when you think about scale, there's 2 elements of scale and our business model that, to your point, using your word, moat, are very important. It is the element of how you deploy the engineering resources against where those designs are happening. And then there's a back-end scale, a part of it is how do you make sure that manufacturing, what you design, you bring scale in the automotive business, where the customer wants the supply chain to be. The automotive business is still a just-in-time business. And it's very important that the scale that you bring is where they're selling the vehicles. And in some cases, what starts as maybe they think they're going to penetrate one part of the world. They want to -- may take off in another part of the world, the platform. And how do you bring scale for continuity because it is still an industry that wants to make sure it's quality and that element, and they also want to make sure they can get the product to a cost point, their car, that somebody can afford. So it is the scale element as EV scales. I think it's the biggest opportunity we have, and also one we signed up for, how do we make sure and we bring scale to it.

是的。希斯是完全正確的。我的意思是，這很重要，雖然有初創企業，但你仍然必須了解價格點、消費者所在的位置以及規模是一個很大的優勢。當你考慮規模時，規模和我們的商業模式有兩個要素，對你來說，用你的話來說，護城河，非常重要。它是如何根據這些設計發生的地方部署工程資源的要素。然後是後端規模，其中一部分是如何確保製造、設計、在汽車業務中實現規模化，這是客戶想要的供應鏈所在。汽車業務仍然是一個準時制業務。非常重要的是，你所帶來的規模就是他們銷售車輛的地方。在某些情況下，一開始他們可能認為自己將滲透到世界的某一地區。他們想要——可能會在世界的另一個地方——這個平台上起飛。你如何擴大規模以實現連續性，因為它仍然是一個想要確保其質量和要素的行業，他們還希望確保他們能夠將產品達到人們可以負擔得起的成本點，他們的汽車。所以它是像 EV 尺度一樣的尺度元素。我認為這是我們擁有的最大機會，也是我們簽署的機會，我們如何確保並擴大規模。

Your next question is from the line of William Stein with Truist Securities.

您的下一個問題來自 Truist Securities 的 William Stein。

I'm wondering if you can remind us what the annual pricing negotiations in automotive look like. When they occur? How pricing typically trends through these negotiations? And maybe how the current negotiations, let's say, compare to what you think they do in a typical year. As I recall, during these times and dislocations, there can be sort of unusual discussions around that topic?

我想知道您是否可以提醒我們汽車領域的年度定價談判是什麼樣的。它們什麼時候發生？通過這些談判，定價通常會如何變化？比如說，也許當前的談判與你認為的典型年份的情況相比如何。我記得，在這些時期和混亂的時期，圍繞這個話題可能會有一些不尋常的討論？

Pricing across the portfolio is slight deflation. And auto is typically one that its annual discussions that are based upon volume as well as opportunities. And those discussions typically happen late in the calendar year, early in the following calendar year. So they will be upon us. Certainly, when you think about 2020, there's a lot of volume commitments that weren't made as well as how we're ramping a lot of things. So they are very strategic discussions we have with our customers, also come into -- how are we doing on -- make sure where we invest engineering. And with where the world is, I don't see them being more price deflationary than normal. I think it will be real active discussions that we have as we get in those discussions with our customers.

整個投資組合的定價是輕微通貨緊縮。汽車行業通常是年度討論的焦點，其討論量和機會都基於數量和機會。這些討論通常發生在日曆年末或下一個日曆年年初。所以他們會攻擊我們。當然，當你想到 2020 年時，你會發現有很多銷量承諾以及我們如何推進很多事情都沒有兌現。因此，我們與客戶進行了非常戰略性的討論，也涉及到——我們做得怎麼樣——確定我們在哪裡投資工程。就世界現狀而言，我認為價格通貨緊縮不會比正常情況更嚴重。我認為，當我們與客戶進行討論時，這將是真正積極的討論。

The reason I ask is I recall in the credit crisis, there was also an expectation that you'd see normal price reductions, even though the customers were not meeting volume commitments. So that's sort of where I was headed with that. Do you think we'll see normal deflation this year as we have in other years, even though the volumes might not have been met in the prior year?

我問這個問題的原因是我記得在信貸危機期間，人們還期望看到正常的降價，即使客戶沒有達到產量承諾。這就是我的目標。您認為今年我們會像其他年份一樣看到正常的通貨緊縮嗎，即使去年的數量可能沒有達到？

I think we'll have some deflation because of the automotive market. I'm not sure it will be normal. And then we have to get through those discussions with our customers.

我認為由於汽車市場，我們將會出現一些通貨緊縮。我不確定這是否會正常。然後我們必須與客戶進行這些討論。

Your next question is from the line of Joe Giordano with Cowen.

你的下一個問題來自喬·佐丹奴和考恩。

One thing I just wanted to clarify first, Terrence, You mentioned inventory levels in Europe. Can you just clarify, are you seeing customer demand, like market demand, satisfied out of customer inventory right now? And then my main question is a little bit more high level. You see something like EM coming out with a big new EV platform and plans to spend a lot of money. Can you just talk to me about how, like, that relationship with a customer like that kind of evolves through their kind of planning phase? And how early are you involved with something like that? And how would that be similar or different to like some of the start-ups that Mark mentioned earlier?

我想首先澄清一件事，泰倫斯，你提到了歐洲的庫存水平。您能否澄清一下，您是否看到客戶需求（例如市場需求）目前已超出客戶庫存？我的主要問題是更高層次的問題。你會看到像 EM 這樣的公司推出了一個大型的新電動汽車平台，併計劃花費大量資金。你能和我談談與這樣的客戶的關係是如何通過他們的規劃階段演變的嗎？您多久開始參與類似的事情？這與馬克之前提到的一些初創企業有何相似或不同？

So you have a couple of questions there. So let me take the first one. What's been nice is car registrations have improved in Europe. So when you sit there when I talk about inventory, it's really -- think of it as a dealer lot. It was heavy coming in.

所以你有幾個問題。所以讓我採取第一個。令人高興的是歐洲的汽車登記有所改善。因此，當你坐在那裡，當我談論庫存時，它實際上是——把它想像成一個經銷商批次。進來的時候很重。

Certainly, COVID impacted it and we've talked to you about that. So what I would say is it's really making sure that inventory looks at a more normalized level and sell-through and sell-out get more in line. So that was really my comment around Europe.

當然，新冠疫情對其產生了影響，我們已經與您討論過這一點。所以我想說的是，這確實是在確保庫存處於更加正常化的水平，並且銷售和售空更加一致。這就是我對歐洲的評論。

When you think about a program, and it isn't just one car or one plant, it really starts at the platform level. And those discussions happen as we're in the design element of the electrical architecture or the data architecture. And in some cases, what occurs is they're taking product off a traditional platform that they say, "Hey, it's good enough." That could be interconnect on a light. It doesn't change really between a combustion engine and electrical vehicle and how they actually start working their platforms. And those can take years depending upon where they get to the platform element. And once you're on the platform, back-end spray, how they evolve the platform. And certainly, I think when you talk about EV, when you have a start-up, they're basically starting with a model. Larger companies really have platforms and you are seeing some of our larger customers come out with platforms. You see much more advertisement around the world on it. In some cases, it's due to the regulations that they have to meet, but it's also about where they see the market going. And I think it's pretty consistent with what we laid out. So is it different than how we innovate today? No. But what I would tell you is the urgency and the pace on those platforms have certainly kicked in much faster than the design cycles that you would have had on a traditional evolutionary combustion engine. You do see how they're focused very much on EV. You see how autonomy has taken a little bit of a step back during the downturn, that our customers are very focused on the electric powertrain. And they're also seeing the opportunities of where they are in the world. So you see people very much want to be penetrating China as well as the high-end areas, which some of the vehicles that we talk a lot about are very high-end vehicles.

當你想到一個項目時，它不僅僅是一輛車或一個工廠，它實際上是從平台級別開始的。當我們在電氣架構或數據架構的設計元素中時，這些討論就會發生。在某些情況下，他們會從傳統平台上撤下產品，他們說：“嘿，這已經足夠好了。”這可以在燈上互連。內燃機和電動汽車之間以及它們實際開始工作平台的方式並沒有真正改變。這些可能需要數年時間，具體取決於他們到達平台元素的位置。一旦你進入平台，後端噴霧，他們如何發展平台。當然，我認為當你談論電動汽車時，當你有一家初創公司時，他們基本上是從一個模型開始的。大公司確實擁有平台，您會看到我們的一些大客戶推出了平台。你會在世界各地看到更多的廣告。在某些情況下，這是因為他們必須遵守法規，但也與他們對市場走向的看法有關。我認為這與我們的佈局非常一致。那麼它與我們今天的創新方式有什麼不同嗎？不。但我要告訴你的是，這些平台的緊迫性和節奏肯定比傳統進化內燃機的設計週期要快得多。你確實看到他們非常關注電動汽車。您會看到，在經濟低迷時期，自動駕駛技術有所退步，我們的客戶非常關注電動動力系統。他們也看到了世界各地的機遇。所以你看人們非常想進入中國以及高端領域，我們經常談論的一些車輛都是非常高端的車輛。

Your next question comes from the line of Steven Cox -- excuse me, Steven Fox with Fox Advisors.

你的下一個問題來自史蒂文·考克斯（Steven Cox）——對不起，福克斯顧問公司的史蒂文·福克斯（Steven Fox）。

Terrence, you talked a lot about the EV side. I was wondering if you could just sort of focus on the legacy CO2 side of the business, since it's still so big. Where would you be getting the content growth from there? I assume there is still some content growth. And then just specifically with CO2, how do you manage it as your customers seem to be dramatically increasing their emphasis on the other side of the business?

特倫斯，您談論了很多關於電動汽車方面的內容。我想知道您是否可以專注於業務中遺留的二氧化碳方面，因為它仍然很大。您將從哪裡獲得內容增長？我認為內容仍有一些增長。然後，特別是在二氧化碳方面，當您的客戶似乎大大增加了對業務另一方的重視時，您如何管理它？

Well, it's really 2 factors. You still have electrification that happens on a combustion engine. When you look at TE and you think about TE, other than on the engine, other than where you get into the ECU element, powertrain is not as big of a content element for us as other things, so -- like you have on an EV platform. So where we get content is continued comfort features. Certainly, the data architecture that's being built into a car as you move up the levels, it's going to happen in both, a CO2 engine as well as an electric vehicle. So that element that comes into the data architecture continues to evolve. Certainly, the sensing you have around safety and the features that we all rely on. So while the development of combustion engines aren't as strong as they used to be because people are going to EV, the other features we're getting in the car that do provide -- let me talk to you about when we had done some of our analyst days, 200 or 300 basis points of content above production in a core engine is still occurring. And those programs or as the data architecture puts in, comfort features get added as well as just the whole ECU network evolves, we typically see more contacts being added on a car than less. And the only other thing I would say on the combustion engine is we also see our customers leaning on us more on that legacy electrical architecture because they want their engineers working on, figuring out the electrical platforms.

嗯，這確實是兩個因素。您仍然可以實現內燃機上的電氣化。當您查看 TE 並想到 TE 時，除了發動機、除了 ECU 元素之外，動力總成對我們來說並不像其他內容那麼重要，所以——就像您在電動汽車平台。因此，我們獲得的內容是持續的舒適功能。當然，隨著級別的提升，汽車中內置的數據架構將在二氧化碳發動機和電動汽車中發生。因此，進入數據架構的元素會不斷發展。當然，您對安全的感知以及我們都依賴的功能。因此，雖然由於人們轉向電動汽車，內燃機的發展不像以前那麼強勁，但我們在汽車中獲得的其他功能確實提供了——讓我告訴你我們什麼時候做了一些事情在我們的分析日中，核心引擎的內容超出生產量 200 或 300 個基點的情況仍在發生。這些程序或數據架構的引入、舒適功能的添加以及整個 ECU 網絡的發展，我們通常會看到汽車上添加的觸點數量多於少。關於內燃機，我要說的唯一另一件事是，我們還看到我們的客戶更多地依賴我們的傳統電氣架構，因為他們希望他們的工程師致力於研究電氣平台。

Your next question comes from the line of Jim Suva with Citigroup.

您的下一個問題來自花旗集團的 Jim Suva。

If we could take the opportunity maybe to clarify before there's any confusion about the peaking in the December quarter. My memory is that auto production typically generally -- always peaks in December, but people are going to be concerned that it's going to be your peak earnings per share. And I think Heath mentioned that, that's not necessarily the case, but it sounds like there may be some hedging around that. I know you're not giving the full year guidance, but can you just kind of help us think about that because I can sense a lot of people are actually thinking that it's the peak of your earnings per share and a story on that. So if you could maybe walk us through that a little bit?

如果我們能藉此機會，也許可以在對 12 月季度的峰值出現任何混亂之前澄清一下。我的記憶是，汽車產量通常在 12 月達到峰值，但人們會擔心這將是每股收益的峰值。我認為希思提到過，情況不一定如此，但聽起來可能存在一些對沖。我知道您沒有提供全年指導，但您能否幫助我們考慮一下這一點，因為我可以感覺到很多人實際上認為這是您每股收益的峰值以及相關的故事。那麼您是否可以向我們介紹一下？

Yes, Jim, thanks. And you said it right. 21 million units in the December quarter, I think, for the past 5 years has been the peak production globally. So when we look at the 21 million we expect in the first quarter, we do expect that to be the high point, but that doesn't mean it's the high point for EPS, Jim. That's just our auto production estimate. And it's a high point as we look into '21. So like I said during the call, we still think a gradual recovery in our markets is the right way to look at this. Certainly, we'd like that the recovery in auto production is quicker than we expected, and I think like most people expected, but we do also have to realize that the first quarter is typically the high point of auto production in the year due to the effect of China and how China is the largest car producing country on the planet.

是的，吉姆，謝謝。你說得對。我認為，12 月份季度的 2100 萬台產量是過去 5 年來全球產量的峰值。因此，當我們看到第一季度預期的 2100 萬美元時，我們確實預計這將是每股收益的高點，但這並不意味著這是每股收益的高點，吉姆。這只是我們的汽車產量估計。當我們展望 21 世紀時，這是一個高峰。因此，就像我在電話會議中所說的那樣，我們仍然認為市場逐步復甦是看待這一問題的正確方法。當然，我們希望汽車生產的複蘇比我們預期的要快，我認為就像大多數人的預期一樣，但我們也必須意識到，第一季度通常是今年汽車生產的高點，因為中國的影響以及中國如何成為地球上最大的汽車生產國。

Your next question comes from the line of Joseph Spak with RBC Capital Markets.

您的下一個問題來自加拿大皇家銀行資本市場的 Joseph Spak。

This is actually Garrett Klumpar on for Joe. I guess just continuing on the electrification, maybe shifting gears to commercial transportation. I mean, I think historically, you've talked about commercial transportation, CPV growth being a little bit below the 4% to 6% you kind of experience and target in auto. But maybe just update us on kind of where we are on that journey in terms of maybe commercial transportation outgrowth getting closer to the 4% to 6% in auto? What the prospects are for next year, given we're seeing more kind of electric commercial transportation programs come to market? And then kind of what your conversations with customers have been recently around broader electrification within commercial transportation?

這實際上是加勒特·克魯帕為喬代言的。我想只是繼續電氣化，也許會轉向商業運輸。我的意思是，我認為從歷史上看，您談到了商業運輸，CPV 增長略低於您在汽車領域的經驗和目標 4% 到 6%。但也許只是向我們介紹一下我們在這一旅程中的最新進展，即商業交通的增長是否接近汽車行業的 4% 至 6%？鑑於我們看到更多類型的電動商業運輸項目進入市場，明年的前景如何？那麼，您最近與客戶的對話是圍繞商業運輸領域更廣泛的電氣化進行的嗎？

When you look at commercial transportation, it is a very broad market. So you're dealing with agriculture, you're dealing with the construction vehicles. Certainly, you're dealing with truck and bus. And when you look at electrification, you do see it much more on the short-haul delivery. Certainly, you see people on some longer haul experimentation. But at the overall market, when you deal with electrification, the impact won't be as broad as you have in the auto space. That being said, we do see a lot of content, and it's both electrification as well as data autonomy because the features you have in the truck and bus space does have more data uses because you get into fleet management, how they think about their business models. And what's been nice over the years is what our ICT business, which historically would have been probably moving much more with underlying production. We have -- due to EV as well as data, have created content separation. And I think you've seen that this year. We also expect, as you get some of the things that are happening globally. China, we do expect to be a little bit of a headwind, but we do expect other parts of the world to be able to make up for that partly, plus our content is really going to be due to the content opportunity in ICT. I do -- we still do believe it's below the 4% to 6% in the car, but it is something that's going to be a big content driver for that business.

當你觀察商業運輸時，你會發現這是一個非常廣闊的市場。所以你正在處理農業，你正在處理工程車輛。當然，您正在處理卡車和公共汽車。當你觀察電氣化時，你確實會在短途運輸中看到更多。當然，你會看到人們正在進行一些長期的實驗。但在整個市場上，當你處理電氣化時，其影響不會像汽車領域那樣廣泛。話雖這麼說，我們確實看到了很多內容，既涉及電氣化，也涉及數據自治，因為卡車和公共汽車領域的功能確實有更多的數據用途，因為您進入車隊管理，了解他們如何看待自己的業務楷模。多年來，我們的 ICT 業務一直表現出色，從歷史上看，我們的 ICT 業務可能會隨著基礎生產的發展而發展得更多。由於電動汽車和數據，我們已經創建了內容分離。我想你今年已經看到了這一點。我們也期望，當你了解全球正在發生的一些事情時。中國，我們確實預計會遇到一點阻力，但我們確實預計世界其他地區能夠部分彌補這一點，而且我們的內容實際上將歸功於信息通信技術的內容機會。我確實如此——我們仍然相信它低於汽車中的 4% 到 6%，但這將成為該業務的重要內容驅動力。

Your next question comes from the line of Luke Junk with Baird.

你的下一個問題來自盧克·垃圾與貝爾德的對話。

Just hoping you could comment on medical-related puts and takes as we go through another rise in COVID cases. What factors need to align to get this business back on a growth trajectory as you've outlined?

只是希望您能在我們經歷新冠病例再次上升之際對與醫療相關的看跌期權發表評論。需要調整哪些因素才能使該業務重回您所概述的增長軌道？

Yes, when you look at it, realize where we've pointed our business has been very much around interventional procedures. And if you look at our customers, they've been impacted around it, and they've also -- are working off inventory. So when we look there, we still see the procedures that we're very much around being down. We have seen recovery. We would probably say the recovery plus as they work off inventory, you're probably looking more at the latter half of our '21 based upon what we know today, but that could be impacted based upon COVID or any other market developments. But I think we're probably in the middle of it as we speak.

是的，當您看到它時，就會意識到我們所指出的我們的業務很大程度上圍繞著介入手術。如果你看看我們的客戶，他們就受到了影響，而且他們也在減少庫存。因此，當我們查看那裡時，我們仍然看到我們的程序處於關閉狀態。我們已經看到了復甦。我們可能會說，根據我們今天所了解的情況，隨著庫存的恢復，您可能會更多地關注 21 世紀下半年，但這可能會受到新冠疫情或任何其他市場發展的影響。但我認為，就在我們說話的時候，我們可能正處於其中。

Your last question comes from the line of Nik Todorov with Longbow Research.

你的最後一個問題來自 Longbow Research 的 Nik Todorov。

You guys talked about the December quarter out of production peaking at 21 million. I know visibility is limited, but I'm guessing how are you thinking about the low point of auto production into the next fiscal year? Could we get down to 17 million, 18 million vehicles a quarter? I'm just trying to understand how you're thinking about probabilities. And then can you give us just a breakdown of production and growth year-over-year into the December quarter by geography?

你們談到 12 月份季度的產量峰值達到 2100 萬。我知道能見度有限，但我猜你如何看待下一財年汽車產量的低點？我們能否將汽車數量減少到每季度 1700 萬、1800 萬輛？我只是想了解您如何看待概率。那麼您能否向我們提供按地區劃分的 12 月份季度的產量和同比增長情況？

Well, we aren't guiding for the year. And I guess on the first point, I'd ask you to look at third-party resources. On your first part of your question, when we look at the first quarter, though, where we are guiding, there is element that even in the first quarter, at the 21 million units, that will still be down year-on-year versus around 22 million units last year. We see every geography still being down year-on-year, but certainly at a lower rate than we've been experiencing. So as you look through the geographies, even though China continues to go up to its first quarter, we do expect China production to be down year-over-year. And we also expect the other regions of the world. I do think it's important to realize, we like this recovery, but we still -- some of the reasons we highlight where we're at is we're still below where we were at in 2019. And what we're very focused on is how do we make sure we adjust to the world, not only in auto and elsewhere, so the world that's post-COVID, that we're still trying to figure out. So still, it's nice to see the sequential recovery up to the 21 million units versus where we were 2 quarters ago at 12 million. And we'll continue to keep you updated as we go through the year, and we still expect a gradual recovery.

好吧，我們今年不會提供指導。我想對於第一點，我會要求您查看第三方資源。關於你問題的第一部分，不過，當我們審視第一季度時，我們的指導意見是，即使在第一季度，銷量為 2100 萬台，但仍將同比下降。去年銷量約為2200萬台。我們看到每個地區的銷量仍然同比下降，但速度肯定比我們經歷過的要低。因此，縱觀各個地區，儘管中國第一季度的產量繼續增長，但我們確實預計中國的產量將同比下降。我們也期待世界其他地區。我確實認為重要的是要認識到，我們喜歡這種複蘇，但我們仍然強調我們目前的狀況，部分原因是我們仍然低於 2019 年的水平。我們非常關注的是如何確保我們適應這個世界，不僅在汽車領域，而且在其他領域，以及我們仍在努力弄清楚的後新冠時代的世界。儘管如此，很高興看到銷量連續恢復至 2100 萬台，而兩個季度前為 1200 萬台。我們將在這一年中繼續向您通報最新情況，我們仍然期望逐步復甦。

Okay. Thank you. It looks like there's no further questions. So I want to thank everybody for joining us on call this morning. If you have additional questions, please contact Investor Relations at TE. Thank you, and have a nice morning.

好的。謝謝。看來沒有其他問題了。我要感謝大家今天早上加入我們的電話會議。如果您還有其他問題，請聯繫 TE 的投資者關係部。謝謝你，祝你早上愉快。

Ladies and gentlemen, your conference will be available for a replay beginning at 11:30 a.m. Eastern Time today, October 28, 2020, on the Investor Relations portion of TE Connectivity's website. That will conclude your conference call for today.

女士們、先生們，您的會議將於上午 11:30 開始重播。東部時間今天，2020 年 10 月 28 日，在 TE Con​​nectivity 網站的投資者關係部分。今天的電話會議到此結束。