Slide 1: Investor Presentation Fiscal Fourth Quarter and Full Year 2024
Investor Presentation Fiscal Fourth Quarter and Full Year 2024 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 Microchip Proprietary and Confidential
Slide 5: Net Sales Growth
Net Sales Growth 10,000 9,000 134 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: Fourth Quarter FY2024 Revenue Mix
Fourth Quarter FY2024 Revenue Mix Net Sales by Product Line Net Sales by Geography Net Sales by Channel Europe Other 24% Direct 23% 53% Mixed Americas Signal 31% MCUs Distribution Analog Asia 52% 47% 25% 45% Organic growth efforts focused on TSS and Megatrends Synergistic product portfolio empow
Slide 7: Fiscal 4th Quarter 2024 Results (non-GAAP)
Fiscal 4 Quarter 2024 Results (non-GAAP) th Revenue of $1.33 billion; declined 24.9% QoQ and 40.6% YoY Gross Profit: $799.6 million (60.3% Gross Margin) Operating Income: $436.0 million (32.9% Operating Margin) Earnings per share of $0.57 Cumulatively paid down ~$6.8 billion of debt over t
Slide 8: Fiscal Year 2024 Results (non-GAAP)
Fiscal Year 2024 Results (non-GAAP) Revenue of $7.63 billion; declined 9.5% YoY ‒ MCU and Analog revenue decreased 10.2% and 15.2% YoY but FPGA revenue was up 22% YoY Gross Profit: $5,025.6 billion (65.8% Gross Margin) Operating Income: $3,349.2 billion (43.9% Operating Margin) Earnings per
Slide 9: Fiscal 1st Quarter 2025 Guidance (non-GAAP)
Fiscal 1st Quarter 2025 Guidance (non-GAAP)* FY24 Q4 FY24 Q1 FY25 Guide Long Term Actual Actual @ mid-point Model Revenue ($ Million) $7.634B $1,325.8 $1,240 Gross Margins 65.8% 60.3% 60.0% 67.5% to 68.5% Operating Expenses 22.0% 27.4% 28.5% 22.5% to 23.5% Operating Margins 43.9% 32.9% 31.5% 44% to
Slide 10: 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 11: Strong Cash Generation Through Cycles
Strong Cash Generation Through Cycles 35% 30% 12.2% $3,150 $2,650 ADJ. FCF* CAGR 25% since 2007 $2,150 20% $1,650 Semi Industry Sales Y/Y Growth Rates 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 12: 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 13: 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 14: 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 15: Empowering Innovation In Diverse, Durable Markets
Empowering Innovation In Diverse, Durable Markets Consumer Industrial Space Sustainability Automotive Medical Data Center Defense Communication Infrastructure Aviation 15
Slide 16: 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 17: Market Megatrends
Market Megatrends Industrial 5G AI/ML IoT/Edge Computing Computing AI/ML Data Centers Automotive E-Mobility Communications Sustainability Consumer AI/ML ADAS/Autonomous Driving 17
Slide 18: Consistent, Disciplined and Balanced Capital Return Strategy
Consistent, Disciplined and Balanced Capital Return Strategy ‒ Continuing to reduce debt after increasing leverage for M&A Debt Paydown ‒ Reduced debt over the last 21 out of 23 quarters Adjusted Free Cash $6.8 Billion ‒ Current leverage ratio of 1.57x Flow (FCF)* ‒ 87 consecutive quarters of Genera
Slide 19: Environmental Stewardship
Environmental Stewardship Waste Water Energy GHG Reduction Management Consumption Emissions and Reuse 19 Click Here for Microchip’s 2022 Sustainability Report
Slide 20: Thank You
THANK YOU A Leading Provider of Smart, Connected and Secure Embedded Control Solutions