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The strong financial performance during the fiscal year resulted in strong returns for our shareholders. During the fiscal year our stock price increased over 50 percent, better than twice the rate of the S&P 500. We raised our dividend by 19 percent and returned $1.2 billion in capital to our shareholders in the form of dividends and share repurchases. 

## 2013 WAS A VERY GOOD YEAR FOR TE 

Our strategy has been focused on the following key pillars, each of which is geared toward providing an extraordinary experience for our customers. Our consistent application of this strategy is paying off as we continue to: 

đ ŏ Focus on connectivity solutions for highly engineered applications: Since 2007, we divested approximately 20 percent of our portfolio and made strategic acquisitions to strengthen our position in harsh environment applications. We are now the leader in fiber optic and harsh environment connectivity, have increased revenue by 60 percent in the commercial aerospace market and have doubled our revenue in the industrial transportation market. 

đ ŏ Increase our investment in research, development and engineering (RD&E):  We have nearly 7,000 engineers deployed close to our customers around the world and we have invested approximately $700 million, or about five percent of revenue, in RD&E in fiscal 2013. Our intention is to maintain our leadership position in both product breadth and depth by increasing our investment in RD&E and continuing our commitment to innovation leadership. For the past three years we have been recognized as one of the world’s leading innovators based on the number and quality of our patents. 

đ ŏ Become a lean company:  In 2008, we began a company rollout of lean, which we call the TE Operating Advantage (TEOA). TEOA is now well embedded in the company and has resulted in significant improvements in workplace safety, customer service and margins. 

