8bf3eed2514eb12965d2ee3b059229249ba1a791d79ef4f5e8bb46197b3ea378

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

fdb0e7f017d40749b2a572937bcf28cc25363dc74bafd04a5b5318ea898feea5

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

539e34f041b81a322c6c9f8f50431ad5071609e176eaead25b81383294bf7676

| Geographical Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| United States (USD million) | **1,052.3**  **[0001558370-23-007328_aph-20230331x10q.htm:23]**  | N/A | **1,138.4**  **[0001558370-23-016952_aph-20230930x10q.htm:28]**  | **4,405.4** (Full Year)  **[0001558370-24-000866_aph-20231231x10k.htm:138]**  | **1,113.1**  **[0001558370-24-005928_aph-20240331x10q.htm:24]**  | **1,256.0**  **[0001558370-24-010246_aph-20240630x10q.htm:29]**  | **1,411.7**  **[0001558370-24-013696_aph-20240930x10q.htm:32]**  |
| China (USD million) | **619.1**  **[0001558370-23-007328_aph-20230331x10q.htm:23]**  | N/A | **753.7**  **[0001558370-23-016952_aph-20230930x10q.htm:28]**  | **2,884.0** (Full Year)  **[0001558370-24-000866_aph-20231231x10k.htm:138]**  | **670.4**  **[0001558370-24-005928_aph-20240331x10q.htm:24]**  | **758.2**  **[0001558370-24-010246_aph-20240630x10q.htm:29]**  | **950.6**  **[0001558370-24-013696_aph-20240930x10q.htm:32]**  |
| Other Foreign Locations (USD million) | **1,302.6**  **[0001558370-23-007328_aph-20230331x10q.htm:23]**  | N/A | **1,307.1**  **[0001558370-23-016952_aph-20230930x10q.htm:28]**  | **5,265.3** (Full Year)  **[0001558370-24-000866_aph-20231231x10k.htm:138]**  | **1,472.8**  **[0001558370-24-005928_aph-20240331x10q.htm:24]**  | **1,595.5**  **[0001558370-24-010246_aph-20240630x10q.htm:29]**  | **1,676.5**  **[0001558370-24-013696_aph-20240930x10q.htm:32]**  |

addc8055aa3f66b86346bf35c36222eb07490dfd7d05c10bec7c40d289c99bba

Amphenol Corporation is a leading global designer, manufacturer, and marketer of electrical, electronic, and fiber optic connectors and interconnect systems, antennas, sensors, and sensor-based products, as well as coaxial and high-speed specialty cable **[0001558370-24-000866_aph-20231231x10k.htm:41]** **[0001558370-24-000866_aph-20231231x10k.htm:85]**. The company operates through three main business segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems **[0001558370-24-000866_aph-20231231x10k.htm:41]** **[0001558370-24-000866_aph-20231231x10k.htm:136]** **[0001558370-24-000866_aph-20231231x10k.htm:85]**. Amphenol serves a diverse set of end markets, including automotive, broadband communications, commercial aerospace, defense, industrial, information technology, and mobile networks **[0001558370-24-000866_aph-20231231x10k.htm:4]** **[0001558370-24-000866_aph-20231231x10k.htm:41]**.

1. **Communications Solutions** - Offers a range of connector and interconnect systems, including high-speed, radio frequency, power, and fiber optic products, along with antennas for markets such as information technology, mobile devices, and broadband communications **[0001558370-24-000866_aph-20231231x10k.htm:41]** **[0001558370-24-000866_aph-20231231x10k.htm:136]** **[0001558370-24-000866_aph-20231231x10k.htm:85]**.
2. **Interconnect and Sensor Systems** - Provides sensors, sensor-based systems, connectors, and value-add interconnect systems for automotive, industrial, and aerospace markets **[0001558370-24-000866_aph-20231231x10k.htm:41]** **[0001558370-24-000866_aph-20231231x10k.htm:136]** **[0001558370-24-000866_aph-20231231x10k.htm:85]**.
3. **Harsh Environment Solutions** - Focuses on ruggedized interconnect products for industrial, defense, commercial aerospace, automotive, mobile networks, and information technology and data communications markets **[0001558370-24-000866_aph-20231231x10k.htm:41]** **[0001558370-24-000866_aph-20231231x10k.htm:136]** **[0001558370-24-000866_aph-20231231x10k.htm:85]**.

b5c0214b461befa0c278cd522826d30d22fd7077ebf1a584075a76003eb1e2dd

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Harsh Environment Solutions | **795**  **[APH_3165674_0]**  | **854.2**  **[APH_3247423_0]**  | **889**  **[APH_3383253_0]**  | **887.3**  **[0001558370-23-016952_aph-20230930x10q.htm:26]** **[0001558370-23-016952_aph-20230930x10q.htm:35]**  | **900**  **[APH_3370690_0]**  | **916**  **[APH_3380456_1]**  | **1,046**  **[0001558370-24-010246_aph-20240630x10q.htm:27]**  | **1,194**  **[APH_3403392_0]**  |
| Communications Solutions | **1,436**  **[APH_3165674_0]**  | **1,126.7**  **[APH_3247423_0]**  | **1,162**  **[APH_3383253_0]**  | **1,279.2**  **[0001558370-23-016952_aph-20230930x10q.htm:26]** **[0001558370-23-016952_aph-20230930x10q.htm:35]**  | **1,345**  **[APH_3370690_0]**  | **1,265.7**  **[APH_3380456_1]**  | **1,445**  **[APH_3394130_0]**  | **1,685**  **[APH_3403392_0]**  |
| Interconnect and Sensor Systems | **1,008**  **[APH_3165674_1]**  | **993.1**  **[APH_3247423_0]**  | **1,003**  **[APH_3383253_0]**  | **1,032.7**  **[0001558370-23-016952_aph-20230930x10q.htm:26]** **[0001558370-23-016952_aph-20230930x10q.htm:35]**  | **1,082**  **[APH_3370690_1]**  | **1,074.6**  **[APH_3380456_1]**  | **1,119**  **[APH_3394130_0]**  | **1,160**  **[APH_3403392_0]**  |
| Total Net Sales | N/A | **2,974.0**  **[APH_3247423_0]**  | N/A | **3,199.2**  **[0001558370-23-016952_aph-20230930x10q.htm:26]** **[0001558370-23-016952_aph-20230930x10q.htm:35]**  | **3,327**  **[APH_3370690_0]**  | **3,256.3**  **[APH_3380456_1]**  | **3,610**  **[APH_3394130_0]**  | **4,039**  **[APH_3403392_0]**  |

31c1d04b1e5cade6c4cf674dadd81b1e7fc372891716b7056a23d9f97c962f1b

f1b2abec30196c56eda097337d02be4863c05aa355b39aa06ef0526704919d28

1. Despite your strong overall operating margins reaching a record 21.9% in the third quarter  **[APH_3403392_0]** , the margin improvement was not significantly contributed by the CIT acquisition, which is still on its journey to reach company average margins  **[APH_3403392_12]** ; can you provide more specifics on the timeline and actions planned to bring CIT's margins up to par, and what risks might prevent you from achieving this?

2. You've indicated elevated capital expenditures in the third quarter and expect continued elevated levels in the fourth quarter to support growth in the IT datacom and defense markets  **[APH_3403392_0]** ; given the potential for demand volatility in these markets, how are you mitigating the risk of overinvestment, and what return on investment are you targeting for these capital projects?

3. With a strong book-to-bill ratio of 1.09:1 driven by large orders in IT datacom, defense, and commercial air, and acknowledging that some of these orders have a longer aperture to provide assurance for capital investments  **[APH_3403392_9]** ; how confident are you in the stability of these orders, and what mechanisms are in place to protect against potential order cancellations or delays?

4. While IT datacom saw exceptional growth of 60% year-over-year driven by AI-related demand  **[APH_3403392_2]** , how are you addressing the potential concentration risk if this demand slows down, and what strategies are in place to diversify your revenue streams within this segment?

5. Given the expected decline in automotive sales in the fourth quarter and only mid-single-digit growth for the full year 2024  **[APH_3403392_1]** , can you elaborate on the challenges you're facing in this market, particularly in Europe where sales declined, and what specific initiatives are you implementing to reinvigorate growth in the automotive segment?

e8fe862e97b2d7f878f04db75c880db02c6860b114a9c674fd8dd3cc439c1c20

- **Amphenol's strong performance in the defense market**, with sales growing **16% year-over-year in the fourth quarter**, is driven by broad-based demand across applications like space, ground vehicles, avionics, airframe, and communications. This positions the company to capitalize on increased global defense spending, especially in Europe.
- **Significant growth in the IT datacom market**, with sales increasing by **76% year-over-year in the fourth quarter** and **57% for the full year**, is driven by accelerating demand for AI-related applications. Amphenol's investments and strong design-in positions on next-generation IT systems enable the company to capitalize on the AI revolution.
- **Amphenol's decentralized and agile organizational structure** allows for superior execution and responsiveness to customer needs. This flexibility enables the company to effectively manage risks such as tariffs and supply chain challenges, and to outperform in markets like automotive and mobile devices by capturing more than its fair share of opportunities.

bff155512c56e9886e615f27f7412e261a1ab8ea38f72ea71f5fcd7ddadbe8de

- The company's recent acquisitions are **dilutive to margins**, with the CEO noting that margins of acquired companies are still below the company average and dilutive to conversion margins.  **[APH_3413016_16]**
- The **Industrial market recovery is uncertain**, particularly in Europe where demand remains uncertain, making it **too early to call a full recovery**.  **[APH_3413016_12]**
- There are **potential risks from trade policies and tariffs**, as the company needs to manage through potential policies, indicating exposure to **trade risks**.  **[APH_3413016_14]**

22ad3e3d050ad39dfc15e6f438565c07adda0ff2a91ba0d01fc48e70a10b1994

1. **AI Growth Durability**  
   **Q:** Is AI growth durable, and how do orders convert to revenue?  
   **A:** Management is very pleased with their position in next-generation AI systems, working with players across the stack. The breadth and strength of their products create a durable position, as performance improvements are a one-way ratchet. While they won't win everything, their leading position in high-speed and power products puts them in a position to gain more than their fair share of opportunities. They are deeply partnering with customers to enable generational changes, whether in performance, power efficiency, or complexity.  **[APH_3413016_10]** 

2. **AI Supply Constraints**  
   **Q:** Are there any supply or yield issues affecting AI product ramp-up?  
   **A:** Management emphasizes that customers choose Amphenol not only for high-quality products but also for confidence in their execution. Their decentralized entrepreneurial organization allows for agility and real-time reaction to meet customer demands. The AI ramp-ups are significant and challenging, but the team is managing effectively without apparent supply constraints, and they are proud of the team's performance on these programs.  **[APH_3413016_11]** 

3. **Communication Margins and AI Impact**  
   **Q:** Are the improved margins in Communication Solutions sustainable as AI mix increases?  
   **A:** The company is proud of their overall profitability, with operating margins at **22.4%**. The Communication Solutions division grew significantly, driven by IT datacom and AI, which led to strong conversion rates in the low **30%**. Margin improvement is attributed to disciplined cost control and operational execution rather than AI specifically. The company's agility enables them to drive strong conversion margins as they grow.  **[APH_3413016_13]** 

4. **Tariffs and Trade Policies**  
   **Q:** How is the company planning for potential tariffs under President Trump?  
   **A:** Management is closely monitoring global developments. They have successfully mitigated tariff impacts in the past, notably in 2017, through various measures enabled by their agile, decentralized organization. They produce products close to where customers buy them and empower general managers to manage through trade policies. With nearly **300 facilities in over 40 countries**, they are confident in their ability to adapt to any new policies.  **[APH_3413016_14]** 

5. **Defense Market Growth**  
   **Q:** What's driving growth in defense beyond increased military budgets?  
   **A:** The defense business grew **9%** organically last quarter and over the full year, driven by broad-based growth across areas like space, vehicles (especially in Europe), airframes, and communications. Increased investments by various countries, particularly in Europe, and a shift towards next-generation electronics, where Amphenol is well-positioned, are fueling this growth.  **[APH_3413016_17]** 

6. **Industrial Market Improvement**  
   **Q:** Where are you seeing improvements in the industrial end market?  
   **A:** For the first time in seven quarters, the industrial market grew **6%** organically. Strength was observed in medical, rail mass transit, alternative energy, and industrial instrumentation, including equipment for semiconductor manufacturing. Growth could have been better if not for sales moderation in Europe. While cautious about calling a full recovery due to uncertainty in Europe, there's increased confidence entering 2025 with strength in Asia and North America.  **[APH_3413016_12]** 

7. **Acquisitions and Margin Impact**  
   **Q:** Can you update on acquisition integration and margin improvements?  
   **A:** Despite the dilutive impact of acquisitions on margins, the company achieved strong conversion margins: mid-**20%** year-over-year and **30%** sequentially. The largest acquisition, CIT, is progressing well but still operates below company average margins, making it dilutive to conversion margins but accretive to EPS. Management is optimistic that over time, margins will reach company averages.  **[APH_3413016_16]** 

8. **Auto Market and EV Impact**  
   **Q:** Does higher EV production reduce your automotive market opportunity?  
   **A:** Both EVs and ICE vehicles have increasing electronic content, creating significant opportunities. EVs convert mechanical systems to electronic, while ICE vehicles incorporate more electronics for fuel efficiency. The company's automotive business is drivetrain-agnostic, focusing on the expansion of electronics in vehicles, which continues to drive robust opportunities.  **[APH_3413016_20]** 

9. **Outperformance in Auto and Mobile Markets**  
   **Q:** Is your outperformance in auto and mobile markets typical?  
   **A:** The company has consistently outperformed in these markets due to the increasing electronics content in cars and mobile devices. They have secured more than their fair share in areas like next-gen drivetrains, safety, and communications in automotive. In mobile devices, their broad product offerings and ability to execute for customers have enabled them to gain market share. This performance is a continuation of past success rather than something unique to 2024.  **[APH_3413016_19]** 

10. **Industrial Automation in Europe**  
    **Q:** Are you seeing improvement in industrial automation, or is weakness demand-related?  
    **A:** Industrial automation, which is Europe-centric, saw organic sales decline year-over-year but a slight growth quarter-to-quarter in factory automation. Management remains cautious due to ongoing demand moderation in Europe and uncertainties linked to the automotive industry, making recovery timing uncertain.  **[APH_3413016_15]** 

11. **Complexity of AI Connectors**  
    **Q:** How does increasing complexity in AI connectors impact market share and content opportunity?  
    **A:** Complexity benefits Amphenol, as their products are integral in connecting chips within AI systems requiring high-speed, low-latency interconnects with reduced power consumption. They are confident in gaining more than their fair share of the market as investments in AI architectures grow.  **[APH_3413016_9]** 

12. **Below-the-Radar Opportunities**  
    **Q:** What are the below-the-radar opportunities you're excited about?  
    **A:** While not detailing specifics, management is excited about the convergence of technologies such as robotics, next-gen vehicles, consumer devices, IoT, and accelerated computing (AI). This convergence is expected to unlock unforeseen opportunities across industries, which the company is well-positioned to enable.  **[APH_3413016_8]** 

a4decc95161fa2868084f078e6c1991787bab93142f4c76a4b8dd5e6efad79cd

cb85acf7bc04e48592f5675a6fa7425adf076e7618c4c491ae5572bd132f3978

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: Q4 2024 and FY 2024
   - **Guidance**:
     - **Q4 2024**:
       - **Sales**: $3.950 billion to $4.050 billion (19% to 22% increase compared to Q4 2023)  **[APH_3403392_5]** .
       - **Adjusted Diluted EPS**: $0.48 to $0.50 (17% to 22% increase compared to Q4 2023)  **[APH_3403392_5]** .
     - **FY 2024**:
       - **Sales**: $14.855 billion to $14.955 billion (18% to 19% increase compared to 2023)  **[APH_3403392_5]** .
       - **Adjusted Diluted EPS**: $1.82 to $1.84 (21% to 22% increase compared to 2023)  **[APH_3403392_5]** .

### Q2 2024 Earnings Call
   - **Issued Period**: Q2 2024
   - **Guided Period**: Q3 2024
   - **Guidance**:
     - **Sales**: $3.7 billion to $3.8 billion (16% to 19% growth compared to Q3 2023)  **[APH_3394130_6]** .
     - **Adjusted Diluted EPS**: $0.43 to $0.45 (10% to 15% growth compared to Q3 2023)  **[APH_3394130_6]** .
     - **Adjusted Effective Tax Rate**: 24% for Q3 and full year 2024  **[APH_3394130_0]** .
     - **Interest Expense**: Approximately $45 million for Q3  **[APH_3394130_1]** .

### Q1 2024 Earnings Call
   - **Issued Period**: Q1 2024
   - **Guided Period**: Q2 2024
   - **Guidance**:
     - **Sales**: $3.24 billion to $3.30 billion (6% to 8% growth compared to Q2 2023)  **[APH_3380456_7]** .
     - **Adjusted Diluted EPS**: $0.79 to $0.81 (10% to 13% growth compared to Q2 2023)  **[APH_3380456_7]** .

### Q4 2023 Earnings Call
   - **Issued Period**: Q4 2023
   - **Guided Period**: Q1 2024
   - **Guidance**:
     - **Sales**: $3.40 billion to $3.1 billion (2% to 4% growth compared to Q1 2023)  **[APH_3370690_7]** .
     - **Adjusted Diluted EPS**: $0.71 to $0.73 (3% to 6% growth compared to Q1 2023)  **[APH_3370690_7]** .

8e461d6800f8dcec45a8cc8a68cae1744ddab532955445328f86748ef52d3ff8

- Aptiv
- Belden
- Commscope
- Eaton
- Foxconn
- Glenair
- HARTING
- Hirose
- HUBER+SUHNER
- ICT Luxshare
- JAE
- Jonhon
- JST
- Molex
- Phoenix Contact
- Radiall
- Rosenberger
- Sensata
- TE Connectivity
- Yazaki
- 3M

The company competes primarily on the basis of technology innovation, product quality and performance, price, customer service, and delivery time  **[0001558370-24-000866_aph-20231231x10k.htm:11]** .

6464d1e078f798ec4bdbd906a00d71703f1d4f84a976fe097064376b4369d46e

APH Q4 highlights: Defense sales +16% YOY, IT datacom +76% YOY on AI tailwinds. Acquisitions weigh on conversion margins yet drive EPS gains. Uncertain Europe industrial demand clouds outlook. PMs should watch for AI-driven growth, margin improvements.

f9795ed953485bfad65a4c52371aafdd7350a22e0a54a060e134cf2392759af5

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Harsh Environment Solutions

- Connectors and Systems

- Value-Add Products

- Cable

- Other

Communications Solutions

- Antennas

Interconnect and Sensor Systems

- Sensors and Products

Interconnect Products and Assemblies

Cable Products and Solutions

Total Revenue

f9889d0b1c7d62ffabccacb1ddc5af6977211c63fe9c59c82c19be51bd6bf47b

**Quarterly guidance for Q1 2025:**
- **Sales**: $4.0B to $4.1B (year-over-year growth of 23% to 26%)  **[APH_3413016_7]**  (raised from $3.95B to $4.05B with 19% to 22% growth  **[APH_3403392_5]** )  
- **Adjusted Diluted EPS**: $0.49 to $0.51 (year-over-year growth of 23% to 28%)  **[APH_3413016_7]**  (raised from $0.48 to $0.50 with 17% to 22% growth  **[APH_3403392_5]** )  
- **Tax Rate**: 24.5%  **[APH_3413016_1]**  (no prior guidance)  
- **IT Datacom Market Sales**: Expected to grow mid-single digits sequentially  **[APH_3413016_6]**  (no prior guidance)  
- **Mobile Devices Market Sales**: Anticipated to decline mid-30% sequentially  **[APH_3413016_6]**  (no prior guidance)  
- **Automotive Market Sales**: Seasonal moderation expected from Q4 2024 levels  **[APH_3413016_5]**  (no prior guidance)  
- **Industrial Market Sales**: Expected to decline low single digits sequentially  **[APH_3413016_5]**  (no prior guidance)  
- **Defense Market Sales**: Expected to remain roughly at Q4 2024 levels  **[APH_3413016_4]**  (no prior guidance)  
- **Commercial Air Market Sales**: Expected to moderate mid- to high single digits sequentially  **[APH_3413016_5]**  (no prior guidance)  
- **Communications Networks Market Sales**: Expected to decline mid-teens sequentially  **[APH_3413016_7]**  (no prior guidance)  
- **Capital Expenditures**: Expected to remain somewhat elevated  **[APH_3413016_1]**  (no prior guidance)  

4c997e8052009188a9a795af511b4829bbc44b21a925199cc2ba285a577a4a3f

| Name               | Position                                           | Start Date         | Short Bio                                                                                                                                                                                                 |
|--------------------|----------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| R. Adam Norwitt    | President and Chief Executive Officer              | 2009               | R. Adam Norwitt has been with Amphenol for approximately **25 years**. He has served as President since **2007** and CEO since **2009**. Previously, he was COO from 2007 to 2008 and held various other roles  **[0001104659-24-038447_tm242665d2_pre14a.htm:27]** **[0001104659-24-044584_tm242665d4_def14a.htm:27]** .                           |
| Craig A. Lampo     | Senior Vice President and Chief Financial Officer  | 2015               | Craig A. Lampo has been the Senior Vice President and CFO since **2015**. He was Vice President and Controller from 2004 to 2015 and Treasurer from 2004 to 2006. He joined Amphenol after working at Deloitte & Touche and Arthur Andersen  **[0001104659-24-038447_tm242665d2_pre14a.htm:53]** **[0001104659-24-044584_tm242665d4_def14a.htm:53]** . |
| Lance E. D’Amico   | Senior Vice President, Secretary, and General Counsel | 2016               | Lance E. D’Amico has been Secretary and General Counsel since **2016** and Senior Vice President since **2019**. Before Amphenol, he held executive roles at UTi Worldwide Inc and Element K Corporation  **[0001104659-24-044584_tm242665d4_def14a.htm:53]** **[0001104659-24-038447_tm242665d2_pre14a.htm:53]** .                                 |
| William J. Doherty | President, Communications Solutions Division       | 2022               | William J. Doherty has been President of the Communications Solutions Division since **2022**. He previously served as Senior Vice President from 2018 to 2021 and held various other roles since joining Amphenol  **[0001104659-24-044584_tm242665d4_def14a.htm:53]** **[0001104659-24-038447_tm242665d2_pre14a.htm:53]** .                       |
| Luc Walter         | President, Harsh Environment Solutions Division    | 2022               | Luc Walter has been President of the Harsh Environment Solutions Division since **2022**. He was Senior Vice President from 2004 to 2021 and has been with Amphenol for approximately **40 years**  **[0001104659-24-044584_tm242665d4_def14a.htm:54]** **[0001104659-24-038447_tm242665d2_pre14a.htm:54]** .                                       |
| David Silverman    | Senior Vice President, Human Resources             | 2019               | David Silverman has been Senior Vice President, Human Resources since **2019**. He was Vice President, Human Resources from 2014 to 2018 and has been with Amphenol for approximately **17 years**  **[0001104659-24-038447_tm242665d2_pre14a.htm:54]** **[0001104659-24-044584_tm242665d4_def14a.htm:54]** .                                       |
| Peter J. Straub    | President, Interconnect and Sensor Systems Division | January 1, 2024    | Peter J. Straub will be President of the Interconnect and Sensor Systems Division starting **January 1, 2024**. He was Vice President and Group General Manager of the Sensor Technology Group from 2019 through 2023  **[0001104659-24-038447_tm242665d2_pre14a.htm:54]** **[0001104659-24-044584_tm242665d4_def14a.htm:54]** .                     |

839b16402131a82a77cc8ccc427647002febaac02621d5f0825b32af859efae6

| Program Details          | Program 1          | Program 2          |
|--------------------------|--------------------|--------------------|
| Approval Date            | April 27, 2021  **[0001558370-24-013696_aph-20240930x10q.htm:54]** **[0001558370-24-013696_aph-20240930x10q.htm:19]**  | April 23, 2024  **[0001558370-24-013696_aph-20240930x10q.htm:53]** **[0001558370-24-013696_aph-20240930x10q.htm:64]**  |
| End Date/Duration        | April 27, 2024  **[0001558370-24-013696_aph-20240930x10q.htm:54]** **[0001558370-24-013696_aph-20240930x10q.htm:19]**  | April 28, 2027  **[0001558370-24-013696_aph-20240930x10q.htm:53]** **[0001558370-24-013696_aph-20240930x10q.htm:64]**  |
| Total additional amount  | $2,000.0 million  **[0001558370-24-013696_aph-20240930x10q.htm:54]** **[0001558370-24-013696_aph-20240930x10q.htm:19]**  | $2,000.0 million  **[0001558370-24-013696_aph-20240930x10q.htm:53]** **[0001558370-24-013696_aph-20240930x10q.htm:64]**  |
| Remaining authorization amount | $0 million  **[0001558370-24-013696_aph-20240930x10q.htm:54]** **[0001558370-24-013696_aph-20240930x10q.htm:19]**  | $1,669.4 million  **[0001558370-24-013696_aph-20240930x10q.htm:53]** **[0001558370-24-013696_aph-20240930x10q.htm:64]**  |
| Details                  | Completed  **[0001558370-24-013696_aph-20240930x10q.htm:54]** **[0001558370-24-013696_aph-20240930x10q.htm:19]**    | Ongoing  **[0001558370-24-013696_aph-20240930x10q.htm:53]** **[0001558370-24-013696_aph-20240930x10q.htm:64]**      |

2c5caf7101f3311fe00f2f18da847d58ad79dfc8178445ced937d682032c4c7d

United States

China

Other Foreign Locations

International

b2cb21cf1569ccd32a536ad3806e699ffab682f224ee4d6dcb04b2d3c6d589f5

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1997       | Present  | Current auditor   |  **[0001558370-24-000866_aph-20231231x10k.htm:74]**  |

427836754ac2dc6e5c3263ea582cb4e845e22a0796c5b6c4ca007143d869b05d

03a1bd721ac8135911e65e2a5af40da3b5dd01e05f4bd427ace7f0c5c401df48

| Year | Amount Due (in millions) | Debt Type          | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|-------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | $399.9 **[0001558370-24-013696_aph-20240930x10q.htm:7]**               | Senior Notes           | 2.050 **[0001558370-24-013696_aph-20240930x10q.htm:7]**         | 7.3% = (399.9 / 5484.1) * 100 **[0001558370-24-013696_aph-20240930x10q.htm:7]**                                             |
| 2026     | $349.4 **[0001558370-24-013696_aph-20240930x10q.htm:7]**               | Senior Notes           | 4.750 **[0001558370-24-013696_aph-20240930x10q.htm:7]**         | 6.4% = (349.4 / 5484.1) * 100 **[0001558370-24-013696_aph-20240930x10q.htm:7]**                                             |
| 2026     | €500.0 ($556.6)  **[0001558370-24-013696_aph-20240930x10q.htm:7]**   **[0001558370-24-013696_aph-20240930x10q.htm:10]**   | Euro Senior Notes      | 0.750  **[0001558370-24-013696_aph-20240930x10q.htm:7]**   **[0001558370-24-013696_aph-20240930x10q.htm:10]**      | 10.1% = (556.6 / 5484.1) * 100  **[0001558370-24-013696_aph-20240930x10q.htm:7]**   **[0001558370-24-013696_aph-20240930x10q.htm:10]**                                         |
| 2027     | $449.6 **[0001558370-24-013696_aph-20240930x10q.htm:7]**               | Senior Notes           | 5.050 **[0001558370-24-013696_aph-20240930x10q.htm:7]**         | 8.2% = (449.6 / 5484.1) * 100 **[0001558370-24-013696_aph-20240930x10q.htm:7]**                                             |
| 2028     | €500.0 ($556.1)  **[0001558370-24-013696_aph-20240930x10q.htm:7]**   **[0001558370-24-013696_aph-20240930x10q.htm:10]**   | Euro Senior Notes      | 2.000  **[0001558370-24-013696_aph-20240930x10q.htm:7]**   **[0001558370-24-013696_aph-20240930x10q.htm:10]**      | 10.1% = (556.1 / 5484.1) * 100  **[0001558370-24-013696_aph-20240930x10q.htm:7]**   **[0001558370-24-013696_aph-20240930x10q.htm:10]**                                         |
| 2029     | $449.6 **[0001558370-24-013696_aph-20240930x10q.htm:7]**               | Senior Notes           | 5.050 **[0001558370-24-013696_aph-20240930x10q.htm:7]**         | 8.2% = (449.6 / 5484.1) * 100 **[0001558370-24-013696_aph-20240930x10q.htm:7]**                                             |
| 2029     | $499.8 **[0001558370-24-013696_aph-20240930x10q.htm:7]**               | Senior Notes           | 4.350 **[0001558370-24-013696_aph-20240930x10q.htm:7]**         | 9.1% = (499.8 / 5484.1) * 100 **[0001558370-24-013696_aph-20240930x10q.htm:7]**                                             |
| 2030     | $899.6 **[0001558370-24-013696_aph-20240930x10q.htm:7]**               | Senior Notes           | 2.800 **[0001558370-24-013696_aph-20240930x10q.htm:7]**         | 16.4% = (899.6 / 5484.1) * 100 **[0001558370-24-013696_aph-20240930x10q.htm:7]**                                            |
| 2031     | $748.1 **[0001558370-24-013696_aph-20240930x10q.htm:7]**               | Senior Notes           | 2.200 **[0001558370-24-013696_aph-20240930x10q.htm:7]**         | 13.6% = (748.1 / 5484.1) * 100 **[0001558370-24-013696_aph-20240930x10q.htm:7]**                                            |
| 2034     | $599.4 **[0001558370-24-013696_aph-20240930x10q.htm:7]**               | Senior Notes           | 5.250 **[0001558370-24-013696_aph-20240930x10q.htm:7]**         | 10.9% = (599.4 / 5484.1) * 100 **[0001558370-24-013696_aph-20240930x10q.htm:7]**                                            |

79d291415477b1eedd20d1b6d54ce77dd6d62ba676b5217fc46833be7bf9b6d8

1. **AI Impact and Outlook**  
   **Q:** What's driving growth in AI and future prospects?  
   **A:** Amphenol is excited about progress in AI, noting that it's not new to them as they've been working on interconnect architecture for AI for a long time.  **[APH_3370690_9]**  The recent acceleration is due to a "**gold rush**" around AI, and they've been quick to flex capacity to meet urgent demand.  **[APH_3370690_9]**  They see significant investments in AI with real economics behind it and expect long-term opportunities to generate more sales related to AI.  **[APH_3370690_9]** **[APH_3370690_13]** **[APH_3370690_16]**  Although bookings in AI were strong in Q2 and Q3, they moderated in Q4, but this is not surprising.  **[APH_3370690_16]**  They believe AI is significant and are well-positioned to support future demand.  **[APH_3370690_9]** **[APH_3370690_16]** 

2. **Industrial Market Weakness**  
   **Q:** Is the industrial market weakness stabilizing or worsening?  
   **A:** Industrial sales were in line with expectations, but the **book-to-bill** in industrial was weaker, contributing to an overall book-to-bill of **0.95:1**.  **[APH_3370690_8]** **[APH_3370690_17]**  They did not see significant change from prior expectations but noted that bookings were softer than anticipated.  **[APH_3370690_8]**  There's uncertainty about when inventory in the distribution channel will be worked out and demand will return, and it's too early to tell how this will evolve.  **[APH_3370690_8]** 

3. **Pricing Dynamics and Margins**  
   **Q:** What are the pricing trends and margin outlook for 2024?  
   **A:** Pricing has normalized after inflationary adjustments in 2022, with a more balanced price and cost environment in 2023 and into 2024.  **[APH_3370690_10]**  Costs remain elevated but are not increasing at previous rates.  **[APH_3370690_10]**  They do not expect pricing to contribute to growth in 2024 but anticipate maintaining typical operating margins around **25%** in a normal environment.  **[APH_3370690_10]**  They are pleased with **record operating levels** achieved this year.  **[APH_3370690_10]** 

4. **Automotive Market and EV Trends**  
   **Q:** How will slowing EV sales impact Amphenol's growth?  
   **A:** They acknowledge some reports of slowing EV sales in Western markets but highlight that in China, EV adoption continues **unabated**.  **[APH_3370690_14]**  Amphenol benefits from increasing electronics content in vehicles regardless of drivetrain, focusing on interconnect solutions for new electronic systems.  **[APH_3370690_14]**  They do not view this dynamic as a near or medium-term challenge and see continued opportunities as car companies add more electronics to vehicles.  **[APH_3370690_14]** 

5. **Communications Market Outlook and China**  
   **Q:** What is the outlook for communications markets and China?  
   **A:** They see great opportunities across communications markets but find it hard to predict over the next two years.  **[APH_3370690_11]**  In IT datacom, investments in AI are expected to provide opportunities over the coming years.  **[APH_3370690_11]**  Mobile networks are in a low investment period, and it's unclear when increased spending will resume.  **[APH_3370690_11]**  Broadband has good long-term prospects.  **[APH_3370690_11]**  In China, they are happy to see moderating geopolitics and continue to see great opportunities in automotive and industrial markets, benefiting from their local presence.  **[APH_3370690_11]** 

6. **Organic vs. Inorganic Growth Prospects**  
   **Q:** How do you view organic growth versus acquisition growth?  
   **A:** They feel good about organic prospects due to investments in next-generation technologies and supporting customers over recent years.  **[APH_3370690_12]**  Acquisitions are seen as expanded platforms for future organic growth, and they believe all the companies acquired represent opportunities for future growth.  **[APH_3370690_12]** 

7. **M&A Strategy and Gross Margins**  
   **Q:** What's your M&A focus, and how do acquisitions affect margins?  
   **A:** Amphenol continues to see acquisition opportunities across all interconnect products, including sensors, antennas, cables, and assemblies.  **[APH_3370690_15]** **[APH_3370690_18]**  They don't focus on gross margin by product type but are more concerned with operating margins.  **[APH_3370690_18]**  Acquired companies may operate below the corporate average initially, but they see potential for profitability improvements over time, regardless of product type.  **[APH_3370690_18]**  They're disciplined buyers, looking for companies that can elevate profitability to at or above the corporate average.  **[APH_3370690_15]** **[APH_3370690_18]** 

8. **Book-to-Bill Ratio and Order Trends**  
   **Q:** What is the current book-to-bill ratio?  
   **A:** The overall **book-to-bill ratio was 0.95:1** for the quarter, primarily due to softness in the industrial market and a moderation in IT datacom bookings after strong orders in previous quarters.  **[APH_3370690_8]** **[APH_3370690_17]** **[APH_3370690_16]** 

9. **Mobile Devices and Potential PC Refresh**  
   **Q:** Any visibility into a PC refresh cycle?  
   **A:** They hope for a refresh cycle, noting that during the pandemic, there was a significant purchase of devices, potentially upsetting the normal replacement cycle.  **[APH_3370690_19]**  If people bought devices in 2020-2021, replacements might occur in **3-5 years**.  **[APH_3370690_19]**  They cannot confirm if a refresh is coming but see great content opportunities as devices become more complex, with higher speeds and more functionality.  **[APH_3370690_19]**  They believe that whenever there's a premium on hardware, it creates opportunities for Amphenol.  **[APH_3370690_19]** 

e39643a3532360f36364f9f9dc83fa42957078c87acdf4c11af2ebe83e19f5db

- **Declining sales in the European automotive market**, with sales in Europe decreasing from prior year, and overall automotive sales only growing by **4% in U.S. dollars** and being **flat organically**.  **[APH_3403392_7]** ,  **[APH_3403392_3]**
- **Weakened trends in the European industrial market**, with management noting that their view of trends in Europe are "probably a little more muted than maybe they were a quarter ago", and observing an "incremental tick down in Europe".  **[APH_3403392_11]**
- **Acknowledgment of inevitable market cycles**, with management stating "we know that business goes in cycles", indicating potential future downturns in currently strong markets like IT datacom and AI, which could adversely impact future performance.  **[APH_3403392_17]**

5b6437ad245367922a53ae0ae76cf44d1e4ad5b40546e680ff9fe5e74443d7a6

1. **AI Products and Growth Potential**  
   **Q:** How does Amphenol participate in AI infrastructure, and how big can this business get?  
   **A:** Amphenol provides critical high-speed, low-latency interconnect products for AI data centers, including cable assemblies, connectors, and fiber optics. Over the past five quarters, this segment has taken hold, contributing to a **28% organic growth** in the IT datacom market from products integrated into AI data centers.  **[APH_3380456_8]**  The company is excited about the revolutionary investments in AI and continues to see favorable growth momentum into the next quarter.  **[APH_3380456_8]** 

2. **CIT Acquisition and Margin Impact**  
   **Q:** What's the opportunity with the CIT acquisition, and how will it affect margins?  
   **A:** The acquisition of CIT brings a complementary business specializing in wire, cable assemblies, and contact technologies.  **[APH_3380456_10]**  Amphenol expects to enhance CIT's performance through low-cost manufacturing and supply chain efficiencies, aiming to improve margins over time.  **[APH_3380456_10]**  While CIT currently operates below Amphenol's average profitability, the company anticipates a slight impact on operating margins in 2024, with plans to bring margins up to the company average in the future.  **[APH_3380456_16]** 

3. **Capital Allocation and M&A Pipeline**  
   **Q:** How will Amphenol manage capital allocation with CIT acquisition and buybacks?  
   **A:** Amphenol maintains a consistent capital deployment strategy, targeting to return about **50%** of free cash flow to shareholders through dividends and share repurchases.  **[APH_3380456_12]**  The balance sheet remains strong with **0.7x net leverage**, providing capacity for continued M&A activities. The M&A pipeline remains robust, and Amphenol has the appetite and capability for acquisitions large and small.  **[APH_3380456_12]** 

4. **Operating Margins and Trajectory**  
   **Q:** How are operating margins expected to trend, especially with CIT?  
   **A:** Amphenol achieved strong **21% operating margins** in Q1, showing outstanding execution.  **[APH_3380456_16]**  Excluding CIT, incremental margins are expected to normalize around **25%** as the year progresses.  **[APH_3380456_16]**  The CIT acquisition will slightly dilute margins in the second half of 2024, but Amphenol plans to improve CIT's margins over time to align with company averages.  **[APH_3380456_16]** 

5. **AI Pricing and Investment Strategy**  
   **Q:** How is pricing evolving in AI products, and what is the investment approach?  
   **A:** Amphenol focuses on delivering maximum value to customers at competitive prices.  **[APH_3380456_11]**  The criticality of interconnects in AI systems allows for value-based pricing. The company is investing in capacity to meet AI market demands, carefully balancing capital expenditures with customer needs through iterative discussions.  **[APH_3380456_18]**  Accountability and wise investment decisions are emphasized in their approach.  **[APH_3380456_18]** 

6. **Book-to-Bill Ratio and Order Strength**  
   **Q:** What drove the positive book-to-bill ratio this quarter?  
   **A:** Amphenol's book-to-bill ratio was a positive **1.03**, a strong figure given their short lead times.  **[APH_3380456_9]**  Strongest bookings came from IT datacom and Commercial Air sectors, while slightly negative book-to-bill was observed in mobile networks and industrial.  **[APH_3380456_9]** 

7. **Auto Market Growth**  
   **Q:** What's driving growth in the automotive market for Amphenol?  
   **A:** Amphenol experienced **17% growth** in the automotive market  **[APH_3380456_13]** , driven by increased electronic content per vehicle rather than overall market growth. The company benefits from electrified drivetrains, high-voltage connectors, sensors, and communications technology in cars. Most products are agnostic to the drivetrain, capitalizing on the trend of more electronics in vehicles.  **[APH_3380456_13]** 

8. **Industrial Market and Destocking**  
   **Q:** What's the status of inventory destocking in the industrial market?  
   **A:** Demand in the industrial market remains muted, impacted by distributor destocking and reduced orders.  **[APH_3380456_14]**  The slowdown is more pronounced in Europe, with lesser effects in parts of Asia and North America.  **[APH_3380456_14]**  Timing of normalization is uncertain as both inventory levels and demand are down.

9. **Competition in AI Connectors**  
   **Q:** Can you comment on competition in AI connectors and potential new entrants?  
   **A:** Amphenol holds a robust position as a leader in high-speed interconnect technology due to long-term investments.  **[APH_3380456_15]**  While acknowledging strong competitors, the company believes barriers to entry are high due to the complexity of products. Amphenol expects to secure more than its fair share in the growing AI market.  **[APH_3380456_15]** 

10. **Capital Expenditures and Scaling**  
    **Q:** How is Amphenol managing CapEx given the customers' large-scale AI plans?  
    **A:** Amphenol is increasing CapEx slightly to support growth in AI and defense markets but remains cautious  **[APH_3380456_14]** **[APH_3380456_18]** . CapEx was less than **3%** last quarter and is expected to stay reasonable.  **[APH_3380456_14]**  Investment decisions are made with significant accountability by general managers, ensuring wise spending aligned with customer demand.  **[APH_3380456_18]** 

bc2c2509df1d415369a051d35021cb65099890e3abdf9d0209adf5fde1647e6c

- **Amphenol's book-to-bill ratio was 0.95:1 in the fourth quarter**, indicating that new orders were less than sales, which may signal a potential decline in future sales.  **[APH_3370690_17]** ,  **[APH_3370690_8]**
- **The industrial market segment is experiencing weaker bookings and a soft book-to-bill ratio**, driven by elevated inventory levels and moderated demand in areas like factory automation and instrumentation. The company is uncertain about when demand will return in this segment.  **[APH_3370690_8]**
- **The CEO expressed caution about predicting growth in key markets**, such as communications (including IT datacom and mobile networks), over the next two years due to uncertainties and dynamic market conditions. **He mentioned that wireless investments are currently in a low period**, and it's difficult to anticipate when they will pick up.  **[APH_3370690_11]**

42fc554e23e458a479f5074ba0d8058915fd2f4d9729e6d8c0980dd492365d33

- **Amphenol achieved record adjusted operating margins of 21.9% in Q3 2024**, reflecting strong execution and the ability to maximize profitability on strong growth, especially in IT datacom and defense markets.  **[APH_3403392_12]**
- **Strong positioning in the AI-driven IT datacom market**, with a broad customer base across web service providers, OEMs, and chip companies, capturing more than their fair share of AI-related demand.  **[APH_3403392_8]**
- **Resilience and ability to outperform in the automotive market**, with continued content gains in next-generation drivetrains, electronics, antennas, sensors, and capabilities to fulfill offerings on a global basis.  **[APH_3403392_7]**

3fcd6ec8ebb83ad04d6dc0579f610aafbbb11704adbdc124e8af0806b3210eee

- **Amphenol is experiencing significant order growth driven by AI-related demand in the IT datacom market**, resulting in a robust **book-to-bill ratio of 1.12:1**. The company is leveraging its leading high-speed and power interconnect products to capitalize on this opportunity.  **[APH_3394130_7]**
- **Adjusted operating margins reached a record 21.3% in the second quarter**, with contributions from high-growth markets like IT datacom and military. **Amphenol expects to continue margin expansion** as these markets progress.  **[APH_3394130_11]**
- **The pending acquisition of CommScope's mobile networks businesses**, including the former Andrew Corporation, is expected to be **EPS accretive** and enhance Amphenol's position in next-generation wireless networks. The businesses are anticipated to generate approximately **$1.2 billion in revenues with EBITDA margins of approximately 25%** in 2024.  **[APH_3394130_12]**

8d5e3797ebf60284abfc48ed37b1e3d8f9fc8d9f9c224478962ac08a904a533e

- **Slowdown in the automotive market due to reduced production schedules, particularly in Europe.**  **[APH_3394130_14]**
- **Increased capital expenditure required to support AI growth, which could pressure future margins.**  **[APH_3394130_19]**
- **Recent acquisitions are operating below company average profitability, impacting overall margins.**  **[APH_3394130_11]**

35aa60a179a1cb4061d95f7bd3c2b0d6f549e8f523270d45f2ba033e0fcbd2ae

- **The acquisition of Carlisle Interconnect Technologies (CIT) is expected to dilute Amphenol's margins in 2024**, as CIT's profitability is currently below the company's average. Management indicated that improvements will take time to realize, stating that "in 2024, we would expect some impact on the second half from a profitability perspective from them."  **[APH_3380456_16]**  Additionally, they mentioned that "This will not come overnight. There's no doubt about it. That takes time. And we're patient in that respect."  **[APH_3380456_10]**
- **Amphenol is experiencing muted demand and declining orders in the industrial market**, with distributors' orders down and destocking occurring. The CEO noted that "we continue to see the demand in industrial to be somewhat muted. There is no doubt an impact from destocking with distributors. But it's not just destocking. I think distributors orders themselves are also down."  **[APH_3380456_14]**  This softness is particularly evident in Europe and parts of Asia.  **[APH_3380456_14]**
- **Negative book-to-bill ratios in key markets like industrial and mobile networks suggest ongoing weakness**. Management acknowledged that "the 2 places where we saw slightly negative book-to-bill would have been in mobile networks and industrial."  **[APH_3380456_9]**  This indicates potential softness and challenges in these segments, which could impact future sales growth.

799bfb39e89d414c206326e9ddb8e40e2b999a0c9d4baf41ac8ea5b46b38c2cb

- Amphenol achieved **strong operating margins of 21% in Q1 2024**, demonstrating excellent cost management and operational execution even amidst challenging market conditions and acquisitions.  **[APH_3380456_16]**
- The company's **leadership in high-speed interconnect technology** positions it to capitalize on the growing **AI market**, with significant barriers to entry protecting its competitive position.  **[APH_3380456_15]** **[APH_3380456_11]**
- Amphenol is **capitalizing on the increasing electronic content in vehicles**, leveraging its **leadership in RF technology and antennas** to drive growth in the automotive market.  **[APH_3380456_13]**

5c9d6b490ff83055b9104dddf69344e32549805fb5283e94cfeeb9bc719950e4

1. **AI Contribution to Growth**  
   **Q:** How much of growth came from AI vs non-AI?  
   **A:** **More than half** of our year-over-year growth in IT datacom was from AI-related products, with AI contributing similarly to sequential growth. The underlying IT datacom market also showed **very strong growth**.  **[APH_3403392_6]** 

2. **Record Margins and CIT Impact**  
   **Q:** What led to margin strength this quarter, and how is CIT performing?  
   **A:** Operating margins reached a **record high** due to strong execution and maximizing profitability on robust growth. CIT's margins are **still improving** and were not a significant contributor to margin improvement this quarter, but we are confident they will reach company average over time.  **[APH_3403392_12]** 

3. **Elevated CapEx Levels**  
   **Q:** How long will elevated CapEx levels continue?  
   **A:** Elevated CapEx will continue for the **next couple of quarters** to support significant growth in IT datacom and defense markets. We target CapEx at **3%-4% of sales** over the medium and long term, and nothing structurally has changed regarding our capital spending needs.  **[APH_3403392_10]** 

4. **AI Customer Base Breadth**  
   **Q:** Discuss your customer base breadth in AI deployments.  
   **A:** We have an **outstanding breadth** of offerings into AI across the entire stack, working with web service providers, OEMs, and chip companies. This comprehensive approach positions us strongly to capture more than our fair share of AI-related opportunities.  **[APH_3403392_8]** 

5. **Order Visibility and Duration**  
   **Q:** How much visibility do you have around these orders?  
   **A:** We have seen **very strong book-to-bill ratios**, particularly in IT datacom, with some order aperture extending a bit longer to give us comfort in making necessary investments. The vast majority of orders are fulfilled **within a couple of quarters**.  **[APH_3403392_16]** 

6. **Automotive Business Outlook**  
   **Q:** Is the market constraining your automotive growth potential?  
   **A:** Despite dynamic market conditions, we continue to **outperform** by gaining content and enabling new applications. Though Europe faces challenges, we see **robust growth** in Asia and North America, and we are confident in our position to drive growth above market levels.  **[APH_3403392_7]** 

7. **Mobile Devices Market**  
   **Q:** What drives high single-digit growth in mobile devices?  
   **A:** Our team has done a **fabulous job**, with content in products **expanding**. Innovations in connectors, antennas, and mechanisms contribute to growth. However, the market remains **volatile and dynamic**, and we are cautious in forecasting future quarters.  **[APH_3403392_14]** 

8. **Industrial Market Outlook**  
   **Q:** Are there any further green shoots in industrial markets?  
   **A:** We saw some sequential growth, with strong performance in North America and Asia, but Europe has **moderated** due to challenges in demand, particularly tied to the automotive industry. Our team is navigating these dynamics and focusing on opportunities in other geographies.  **[APH_3403392_11]** 

9. **Andrew Acquisition Update**  
   **Q:** Does earlier closing mean no antitrust issues?  
   **A:** We never thought there would be any meaningful antitrust issues, but we're **encouraged** by how the process is going, allowing us to expect closing in the **first quarter** instead of the first half.  **[APH_3403392_13]** 

10. **Managing Cycles and AI Investments**  
    **Q:** Can AI investments scale to other markets, and how do you prepare for slowdowns?  
    **A:** Our culture emphasizes **agility and flexibility**, always looking to expand technologies into new applications. We **maximize performance** during strong cycles and moderate impact during downturns, ensuring stability across market fluctuations.  **[APH_3403392_17]** 

11. **Aerospace Guidance and Strike Impact**  
    **Q:** Does aerospace guidance include strike impact?  
    **A:** Our guidance incorporates all information from customers, including any impacts from ongoing **strikes** in the aerospace market.  **[APH_3403392_11]** 

12. **Organic Orders by Verticals**  
    **Q:** Comment on organic orders and vertical strengths.  
    **A:** We don't specifically discuss organic orders by verticals. Our book-to-bill reflects the total performance, including acquisitions, and we focus on overall execution across all businesses.  **[APH_3403392_15]** 

61e24275fce20e1cb0e9f3012ae4e5c2f144b0d2d24e02c8e27fa862185d3385

- **Amphenol is well-positioned to benefit from increasing electronic content in cars globally**, including strong EV adoption in China, due to its offerings in interconnect, sensor, and antenna solutions.  **[APH_3370690_14]**
- **The company's significant investments and long-term focus on interconnect architectures for AI applications** have positioned them to capitalize on growing demand in the IT datacom market, securing a disproportionate share of orders.  **[APH_3370690_11]** **[APH_3370690_9]**
- **Amphenol's strategic acquisitions across diverse interconnect technologies, including sensors and antennas**, enhance their product offerings and profitability potential, supporting long-term growth.  **[APH_3370690_18]**

e62995a28f8cd4d85422e180334169170fe4f30e6d641b4511b54109f71d179d

1. **AI-Driven Growth**  
   **Q:** How much of order growth was driven by AI?  
   **A:** Management stated that the vast majority of their year-over-year growth of over **$300 million** was driven by AI-related demand, especially in the IT datacom market.  **[APH_3394130_8]**  They are leveraging their leading position in high-speed and power interconnects to win new AI programs and see strong long-term confidence in this area.  **[APH_3394130_7]** 

2. **Andrew Acquisition Rationale**  
   **Q:** Why acquire Andrew now, and what's the outlook?  
   **A:** Management has long admired Andrew's technology and legacy in mobile networks.  **[APH_3394130_9]**  They believe mobile networks are essential for accessing data and expect long-term growth beyond 5G, including future generations like 6G and 7G.  **[APH_3394130_9]**  The timing was right for both companies, and they see strategic value in expanding their presence in mobile networks, which will represent high single digits percentage of sales post-acquisition.  **[APH_3394130_9]** 

3. **Operating Margins Outlook**  
   **Q:** How should we think about operating margins going forward?  
   **A:** Operating margins reached a record **21.3%** in Q2.  **[APH_3394130_10]**  Management expects to continue driving margins up as they grow, aiming for targeted conversion margins of around **25%**.  **[APH_3394130_10]**  While the recent acquisition of CIT may impact margins due to its lower profitability, they remain confident in margin expansion potential.  **[APH_3394130_10]** 

4. **Andrew's Margins and EPS Accretion**  
   **Q:** What are Andrew's margins, and will the deal be EPS accretive?  
   **A:** Andrew operates at high teens operating margins post-acquisition.  **[APH_3394130_11]**  Management expects the deal to be EPS accretive after closing.  **[APH_3394130_11]**  The **25% EBITDA** margin guidance does not include any anticipated synergies, as their approach is not to make significant changes but to help businesses expand margins as part of Amphenol.  **[APH_3394130_11]** 

5. **Industrial Markets Outlook**  
   **Q:** What are you seeing in industrial markets?  
   **A:** Management is encouraged by a positive book-to-bill ratio in the industrial market and meaningful sequential growth in distribution, including high teens sequential growth from distributors.  **[APH_3394130_12]**  They believe the inventory correction is largely behind them and see early signs of momentum, especially in North America and Asia, although Europe remains softer.  **[APH_3394130_12]** 

6. **Automotive Production Slowing**  
   **Q:** Are automotive manufacturers slowing production?  
   **A:** Management noted that some customers, particularly in Europe, have more muted demand expectations for Q3.  **[APH_3394130_14]**  However, the change in volumes is modest, and their guidance reflects only a very slight adjustment.  **[APH_3394130_14]** 

7. **Mobile Devices Growth**  
   **Q:** What's driving the 20% sequential growth in mobile devices?  
   **A:** Mobile devices had a stronger than anticipated Q2, and management expects about **20%** sequential growth in Q3.  **[APH_3394130_15]**  While they consider this a normal outlook tied to the release of new products, they are prepared to capitalize on any increases in demand.  **[APH_3394130_15]** 

8. **Management Bandwidth for M&A**  
   **Q:** Do you have the management bandwidth for all these deals?  
   **A:** Management is confident in their ability to scale the company while maintaining its entrepreneurial culture.  **[APH_3394130_17]**  They have evolved their organization to handle more and larger acquisitions, including creating divisions run by division presidents.  **[APH_3394130_17]**  They believe they have an almost limitless capacity to pursue both organic growth and acquisitions.  **[APH_3394130_17]** 

9. **Acquisition Diligence and Margin Targets**  
   **Q:** How does diligence change for larger acquisitions like CIT and Andrew?  
   **A:** For larger deals, they conduct extensive financial and cultural diligence.  **[APH_3394130_16]**  They ensure management teams are committed to joining Amphenol and are excited about potential growth.  **[APH_3394130_16]**  They have confidence in improving margins over time by exposing acquired companies to Amphenol's practices without making significant changes.  **[APH_3394130_16]** 

10. **AI CapEx and Margins**  
    **Q:** What's the CapEx required to support AI growth, and how are margins?  
    **A:** Management acknowledges the need for continued investments to support the AI revolution.  **[APH_3394130_19]**  They did not provide specific CapEx figures but noted that AI products are margin accretive and comparable to the rest of their portfolio.  **[APH_3394130_19]** 

11. **Industrial Distribution and Destocking**  
    **Q:** Is industrial demand improving, or just the end of destocking?  
    **A:** Management believes that distributors are matching end demand rather than restocking.  **[APH_3394130_20]**  Early signs like a positive book-to-bill ratio and distributor growth indicate potential improvement in industrial markets.  **[APH_3394130_20]** 

12. **Antenna Technology Synergies**  
    **Q:** How will you leverage Andrew's antenna portfolio?  
    **A:** Management sees great value in combining Amphenol's legacy in RF connectors with Andrew's expertise in antenna technology.  **[APH_3394130_18]**  They believe this will create enormous value for customers and are excited about the long-term potential.  **[APH_3394130_18]** 

13. **Closing Timeline on Andrew Acquisition**  
    **Q:** Why will the Andrew acquisition take so long to close?  
    **A:** The longer timeline is due to regulatory processes in many countries where Andrew operates.  **[APH_3394130_13]**  There is nothing unusual beyond that.  **[APH_3394130_13]** 

e3b43885401e29c25c4bcaf2d8c4fc4e589a989f0933a8e8b40cca58e352ff37

Amphenol Corp (APH)

Financials