Microchip Technology Incorporated · NASDAQ:MCHP

Microchip Technology — JP Morgan Technology, Media & Telecom Conference 2016

13 slides from Microchip Technology's conference presentation, May 2016

  1. Slide 1: Investor Presentation - JP Morgan Technology, Media & Telecom Conference

    Investor Presentation JP Morgan Technology, Media & Telecom Conference Steve Sanghi, Chairman and CEO ©May 2016

  2. Slide 2: Annual Net Sales Growth

    Annual Net Sales Growth 2500 2400 2300 2200 • 102 consecutive quarters of profitability! 2100 2000 1900 MCU Analog Memory Licensing MMO 1800 1700 $ Million 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 F

  3. Slide 3: Total MCU (8/16/32) Market Share %

    Total MCU (8/16/32) Market Share % % ©May 2016 3

  4. Slide 4: Analog Yearly Revenue (k$)

    Analog Yearly Revenue (k$) $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 ©May 2016 4

  5. Slide 5: Highly Profitable Financial Model

    Highly Profitable Financial Model * Long Term Microchip Atmel Microchip + Atmel Model Revenue ($M) $585.5 $235.0 $820.5 Gross Margin (%) 58.4% 46.5% 55.0% 59% Operating Expense (%) 26.45% 37.0% 29.5% 26% Operating Income ($M) $187.1 $22.5 $209.6 Operating Income (%) 31.95% 9.5% 25.5% 33% * Represent

  6. Slide 6: Synergy and Accretion Expectations

    Synergy and Accretion Expectations  Transaction is expected to be immediately accretive to our non GAAP earnings per share  Short term: Targeting 18% growth in non-GAAP EPS from FY16 to FY17 with accretion from Micrel and Atmel.  Atmel adds ~25 cents in FY 2017  Long term: 3rd year after close (

  7. Slide 7: Attach $ Multiply Team

    MICROCHIP Attach $ Multiply Team

  8. Slide 8: SUPX - SUPX PIC Customer Counts

    SUPX - SUPX PIC 3,500 Customer Counts Record number of customers!!! 3,000 2,500 Supertex Sampling 8X at MCHP 2,000 More than 1000 New Attach Customers added!!!! Supertex Supertex Pic 1,500 1,000 500 - Q315 Q415 Q116 Q216 Q316 ©May 2016 8

  9. Slide 9: MICREL LPS Group Customer Sample Shipments

    MICREL LPS Group Customer Sample Shipments 600 Micrel Sampling 2X and Growing 500 May 8 Deal Announced Switch to MCHP 400 Business systems August 3 Close “Go Live” 300 TOTAL 200 100 0 Feb CY15 Mar CY15 APR CY15 MAY CY15 June CY15 July CY15 Aug CY15 Sept CY15 OCT CY15 NOV CY15 DEC CY15 JAN CY16 FEB C

  10. Slide 10: Fiscal 4th Quarter 2016 Micrel

    Fiscal 4th Quarter 2016 Micrel Qtr ending Qtr ending Qtr ending 9/30/15 12/31/15 3/31/16 Gross Margin % 45.4% 49.5% 53.2% Operating Exp 41.8% 31.9% 30.4% Operating Prof. 3.6% 17.6% 22.8% ©May 2016 10

  11. Slide 11: Core Diversity in Competitive Platforms

    Core Diversity in Competitive Platforms Supplier 8 Bit 16 Bit 32 Bit NXP/Freescale • 68HC05 • 68HC16 • MPCXXX • 68HC08 • 56800/568000 • MCFXXX • 68HC11/12 • MSC8XX • RS08xxx • LPC, Kinetis • LPC900 Renesas • H8 • H16 • M32 • M16 • V850 • 78K • RX • R8C • SH7 • S3 TI • MSP430 • C2000/C28000 • MSP432

  12. Slide 12: MCHP Financial Information Consolidated

    MCHP Financial Information Consolidated Actual Guidance Q1FY17 Long-Term Actual Guidance Model With Mar. 31, 2016 Jun. 30, 2016 Atmel Net Sales ($MM Non-GAAP) $568.4 $799.1 – 841.9 Gross Margin* 58.4% 54.8% - 55.2% ~ 59% Operating Expenses* (% of Sales) 27.0% 29.1% - 29.8% ~ 26% Operating Profit 31.

  13. Slide 13: Thank You!

    MICROCHIP Thank You!

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