Slide 1: Investor Presentation Fiscal First Quarter 2025
Investor Presentation Fiscal First Quarter 2025 A Leading Provider of Smart, Connected and Secure Embedded Solutions
Slide 2: Safe Harbor
SAFE HARBOR Forward Looking Statement Safe Harbor: During the course of this presentation, we will make projections or other forward-looking statements regarding the future financial performance of the company (including our guidance) or future events, including our strategy, growth drivers, industr
Slide 3: Corporate Overview
Corporate Overview Leading Total Systems Solutions Provider • High-performance standard and specialized • Wireless and Wired Connectivity solutions Mixed-Signal Microcontroller, Digital Signal • FPGA solutions Controller and Microprocessor solutions • Non-volatile EEPROM and Flash Memory • Mixed-Sig
Slide 4: Revenue By End Market
Revenue By End Market* FY23 Durable End Markets FY24 12% 11% 11% 10% 41% 43% 17% 18% 19% 18% Industrial Data Center & Computing Automotive Communication Consumer Appliance 4 *Based on Microchip Internal estimates
Slide 5: Net Sales Growth
Net Sales Growth 10,000 9,000 135 consecutive quarters of Non-GAAP profitability! 8,000 7,000 $ Million 6,000 15.5% CAGR 5,000 4,000 3,000 2,000 1,000 0 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY
Slide 6: First Quarter FY2025 Revenue Mix
First Quarter FY2025 Revenue Mix Net Sales by Product Line Net Sales by Geography Net Sales by Channel Europe Other 22% Direct 21% Mixed 53% Americas Signal 30% MCUs Distribution Analog Asia 52% 47% 27% 48% ➢ Organic growth efforts focused on TSS and Megatrends ➢ Synergistic product portfolio empowe
Slide 7: Fiscal 1st Quarter 2025 Results (non-GAAP)
st Fiscal 1 Quarter 2025 Results (non-GAAP) ➢ GAAP Revenue of $1.24 billion; declined 6.4% QoQ and 45.8% YoY ➢ Gross margin of 59.9% ➢ Operating margin of 31.5% ➢ Earnings per share of $0.53 ➢ Total debt increased by $183.6 million ‒ Cumulatively paid down ~$6.6 billion of debt over the last 24 quar
Slide 8: Fiscal 2nd Quarter 2025 Guidance (non-GAAP)
Fiscal 2nd Quarter 2025 Guidance (non-GAAP)* Q1 FY25 Q2 FY25 Guide Long Term Actual @ mid-point Model GAAP Revenue $1,241.3 $1,150.0 ($ Million) Gross Margins 59.9% 59.0% 67.5% to 68.5% Operating Expenses 28.4% 30.5% 22.5% to 23.5% Operating Margins 31.5% 28.5% 44% to 46% Earnings per share $0.53 $0
Slide 9: Semi Industry Sales YoY Growth Through Cycles
Semi Industry Sales YoY Growth Through Cycles 35.0% 31.8% 30.0% 25.0% 26.2% 21.6% 20.0% Semi Industry Sales Y/Y 15.0% Growth Rates 13.7% 10.0% 9.9% 6.8% 5.0% 4.8% 3.2% 3.3% 0.0% 0.4% 1.1% -2.7% -2.7% -0.2% -5.0% -10.0% -9.0% -12.0% -8.2% -15.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 10: Strong Cash Generation Through Cycles
Strong Cash Generation Through Cycles 35% $3,150 30% 12.2% $2,650 ADJ. FCF* CAGR 25% since 2007 $2,150 20% Semi Industry Sales Y/Y Growth Rates $1,650 15% $1,150 10% $650 5% $150 0% -5% -$350 -10% -$850 -15% -$1,350 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 11: Resilient Profitability Through Cycles
Resilient Profitability Through Cycles 35% 70% MCHP LT Non-GAAP Gross Margin Target* 67.8% 30% 68% 65.7% 25% 66% 20% 62.8% 65.8% 64% Semi Industry Sales Y/Y Growth Rates 15% 61.1% 62.0% 62% 60.9% 60.1% 58.8% 61.9% 10% 58.8% 60% 57.9% 58.2% 5% 58% 57.4% 58.1% 57.6% 0% 57.2% 56% -5% 54% -10% 52% -15%
Slide 12: Improving Efficiency Through Cycles
Improving Efficiency Through Cycles 35% 50% 46.9% 30% MCHP LT Non-GAAP Operating Margin Target* 45% 43.5% 25% 39.6% 38.7% 43.9% 40% 20% 37.1% Semi Industry Sales Y/Y Growth Rates 34.9% 35.9% 35% 15% 32.4% 31.6% 36.2% 30.3% 32.3% 10% 31.8% 30% 31.0% 5% 30.2% 28.6% 25% 0% 20% -5% -10% 15% -15% 10% 200
Slide 13: Microchip Organic Growth Strategy
Microchip Organic Growth Strategy ➢ Focus on Total System Solutions (TSS) ‒ Diversified portfolio of Smart, Connected and Secure Solutions ‒ Software, firmware, reference designs to speed customer’s time to market ➢ Provide solutions in Megatrend growth areas ‒ Drives growth ≥ 2X corporate growth Em
Slide 14: Empowering Innovation In Diverse, Durable Markets
Empowering Innovation In Diverse, Durable Markets Consumer Industrial Space Sustainability Automotive Medical Data Center Defense Communication Infrastructure Aviation 14
Slide 15: Providing Total System Solutions
Providing Total System Solutions Portfolio of Hardware, Software and Services Power Management RFICs MMICs DC-DC Converters Encryption Supervisors & Ref. & High Voltage Precision LDOs, Battery Mgt. Digital Security I/Os Voltage Discretes & Modules Potentiometer Reference Motor Sensors Drivers Amplif
Slide 16: Strategic Focus and In-Depth Knowledge
Strategic Focus and In-Depth Knowledge Megatrends Key Industries Industrial loT/Edge Computing Data Centers Data Center & Computing Consumer Appliance 5G EMPOWERING INNOVATION Communications Sustainability Aerospace & Defense ADAS/Autonomous Driving E-Mobility Automotive © 2024 Microchip Technology
Slide 17: Expanding Compute Portfolio with PIC64
Expanding Compute Portfolio with PIC64 8-bit 16-bit 32-bit 64-bit PIC® MCUs PIC® MCUs PIC® MCUs SAM MPUs PIC® MPUs AVR® MCUs dsPIC® DSCs Scalable Processing to Enable the Intelligent Edge Performance levels from 8-to 64-Bits Unified software tool MPLAB®, supports migration across compute landscape a
Slide 18: PIC64 Addresses a Wide Range of End Markets
PIC64 Addresses a Wide Range of End Markets Scalable Compute Diverse End Markets Scalable Radiation Performance Multiple Mission Profiles Rad-Hard Rad-Tolerant Engineering Model EMBEDDED PROCESSING TAM *Source: 2023 Gartner Semiconductor Market Share Report. $4 - $5 Billion* Defined as: Gartner micr
Slide 19: Consistent, Disciplined and Balanced Capital Return Strategy
Consistent, Disciplined and Balanced Capital Return Strategy ‒ Reduced debt over the last 21 Debt Paydown out of 24 quarters ‒ Current leverage ratio of 2.02x Adjusted Free Cash $6.6 Billion Flow (FCF)* ‒ 88 consecutive quarters of Generation Dividends Paid dividends paid FY2019 – Q1 FY2025 ‒ Divide
Slide 20: 2023 Sustainability Report Highlights
2023 Sustainability Report Highlights 20 Click Here for Microchip’s 2022 Sustainability Report
Slide 21: Environmental Stewardship
Environmental Stewardship Waste Water Energy GHG Reduction Management Consumption Emissions and Reuse 21 Click Here for Microchip’s 2022 Sustainability Report
Slide 22: Follow us @microchiptechnology
Follow us @microchiptechnology A Leading Provider of Smart, Connected and Secure Embedded Control Solutions