Allegro Microsystems, Inc. · NASDAQ:ALGM
Allegro Microsystems — Shareholder Meeting (August 2023)
28 slides from Allegro Microsystems's shareholder meeting presentation, Aug 8, 2023
Slide 1: Investor Presentation
August 8, 2023 INVESTOR PRESENTATION
Slide 2: Forward-looking statements
Forward - looking statements This presentation and the accompanying oral remarks contain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . We intend such forward - looking statements to be covered by the safe harbor provisions for forward - loo
Slide 3: Allegro is a global leader in Sensing and Power IC solutions
3 Allegro is a global leader in Sensing and Power IC solutions Magnetic Sensing 61% Power 39% Sales by Product 1 #1 in Magnetic Sensor 2 & Leader in Power ICs Market leading technology & portfolio Aligned to high growth markets with secular trends Sales by Market 1 $1.0B TTM Sales + 30 % YoY Strong
Slide 4: Our recent financial results and outlook
• Q1FY24 ▪ 28% Sales growth y/y ▪ E - mobility Sales growth of 58% y/y to 48% Auto ▪ Industrial Sales growth of 70% y/y ▪ 63% EPS growth y/y 1 Refer to Non - GAAP Gross Margin, Opex , Operating Income, and EPS reconciliations in the Appendix . $0.20 $0.19 $0.21 $0.24 $0.31 $0.35 $0.37 $0.39 Q2 FY22
Slide 5: We are moving the world to a safer and more sustainable future
We are moving the world to a safer and more sustainable future Leadership in Magnetic Sensing & Power ICs Innovation with P urpose Attractive financial profile Highly focused market presence New image 5
Slide 6: Automotive first technology drives leadership in Sensing & Power
Automotive first technology drives leadership in Sensing & Power 6 • #1 in the Market 1 • Accurate, high speed Current Sensors make power systems smaller and more efficient • Speed & Position Sensors reliably and accurately measure linear or rotary position and velocity • Motor Drivers spin motors a
Slide 7: We win as cars electrify, clean energy expands, the world automates
We win as… Cars Electrify Clean energy Expands The world Automates 7
Slide 8: Market strategies deliver long-term sustainable growth in $14B+ market
8 Our market strategies, coupled with our technology expertise, deliver long - term sustainable growth in $14B+ market 1 SAM is calculated using third - party data and internal estimates for FY28. 2 CAGR is calculated using third - party data and internal estimates for FY23 - FY28. 4.8 9.3 FY2023e F
Slide 9: Well-diversified globally with leading OEMs and distributors
We are well - diversified globally with leading OEMs and distributors 1 Based on TTM sales as a percent of total for the quarter ended June 30, 2023. 2 Historial Sanken sales classified as Distribution for purposes of TTM following termination of Sanken Distribution Agreement effective March 31, 202
Slide 10: Our ESG initiatives are integral to our strategy
Our ESG initiatives are integral to our strategy 10 Issued Inaugural ESG Report July 2023 We are moving the world to a safer and more sustainable future • Minimize our impact on the planet • Engage our supply chain to advance sustainability • Build a diverse & innovative workforce • Cultivate opport
Slide 11: Well-positioned to outgrow large and expanding target markets
Industrial • Leverage auto grade technology • Focused on Clean Energy & Automation • Allegro’s Industrial SAM CAGR of 13% 2 Other • Leverage products in adjacent markets • Consumer & Computer • Growth ~GDP Automotive • Automotive first • Tied to secular megatrends in e - Mobility • e - Mobility SAM
Slide 12: Best-in-class Target Financial Model
Gross margin Operating margin Expansion through product differentiation, supply chain optimization, and volume leverage Sustained profitable growth >58% >32% Sales growth Focus on faster growing markets and content expansion Low double - digit Y - o - Y growth Operating expenses Continued focused R&
Slide 13: Maintain Strong & Flexible Balance Sheet
Maintain Strong & Flexible Balance Sheet Our investment and capital allocation strategy • Deliver strong and growing cash flow • Retain financial flexibility to pursue growth opportunities • Maintain strong balance sheet and adequate liquidity Investment in Organic Growth • Investments in R&D and ca
Slide 14: Accelerating Allegro's innovation in TMR Sensing technology
Accelerating Allegro’s innovation in TMR Sensing technology Allegro MicroSystems (“Allegro”) to acquire Crocus Technology (“Crocus”) 14
Slide 15: Acquisition accelerates roadmap & momentum in e-Mobility & Clean Energy
15 Acquisition accelerates roadmap & momentum in e - Mobility & Clean Energy Best - in - class, innovative TMR technology for Magnetic Sensor ICs Transaction well - aligned with M&A strategy articulated at Analyst Day Highly complementary to Allegro’s products and technology supported by more than 2
Slide 16: TMR is the fastest-growing technology of the >$5B Magnetic Sensing market
16 TMR represents the fastest - growing technology of the >$5B Magnetic Sensing market Automotive & Industrial applications to drive TMR market growth TMR is an ideal fit for high growth Automotive & Industrial applications requiring greater accuracy and speed xEV ADAS SiC / GaN Automation Clean Ene
Slide 17: TMR technology provides the highest accuracy, highest speed Magnetic Sensor ICs
17 TMR technology provides the highest accuracy, highest speed Magnetic Sensor ICs available in the market today TMR technology to lead the high - performance Magnetic Sensing market of the future Hall Effect and TMR bring value to market Hall Effect AMR GMR TMR ▪ Leading sensing technology with maj
Slide 18: Transaction summary
18 ▪ $420 million total purchase price ▪ All - cash consideration ▪ Cash on hand and new debt issuance ▪ Subject to customary regulatory approvals and closing conditions ▪ Expected to close before the end of calendar year 2023 Transaction summary Purchase price Financing Financial impact Closing ▪ A
Slide 19: Reconciliations
19 Annual Shareholder Meeting Company Presentation August 2021 GAAP to Non - GAAP Reconciliations
Slide 20: Gross Profit Reconciliations
($ in millions) Fiscal Qtr ended September 23, 2022 (F2Q’23) Fiscal Qtr ended December 23, 2022 (F3Q’23) Fiscal Qtr ended March 31, 2023 (F4Q’23) Fiscal Qtr ended June 30, 2023 (F1Q’24) TTM ended June 30, 2023 Total N et S ales $237.7 $248.8 $269.4 $278.3 $1,034.2 Cost of goods sold 105.6 106.2 116.
Slide 21: Gross Profit Reconciliations
($ in millions) Fiscal Qtr ended September 24, 2021 (F2Q’22) Fiscal Qtr ended December 24, 2021 (F3Q’22) Fiscal Qtr ended March 25, 2022 (F4Q’22) Fiscal Qtr ended June 24, 2022 (F1Q’23) Total N et S ales $193.6 $186.6 $200.3 $217.8 Cost of goods sold 91.1 85.5 90.7 99.4 Gross P rofit (GAAP) $102.5 $
Slide 22: Operating Expenses Reconciliations
($ in millions) Fiscal Qtr ended September 23, 2022 (F2Q’23) Fiscal Qtr ended December 23, 2022 (F3Q’23) Fiscal Qtr ended March 31, 2023 (F4Q’23) Fiscal Qtr ended June 30, 2023 (F1Q’24) TTM ended June 30, 2023 Operating Expenses (GAAP) $72.2 $77.0 $90.0 $87.2 $326.3 Research and Development Expenses
Slide 23: Operating Expenses Reconciliations
($ in millions) Fiscal Qtr ended September 24, 2021 (F2Q’22) Fiscal Qtr ended December 24, 2021 (F3Q’22) Fiscal Qtr ended March 25, 2022 (F4Q’22) Fiscal Qtr ended June 24, 2022 (F1Q’23) Operating Expenses (GAAP) $64.0 $65.6 $79.4 $103.6 Research and Development Expenses (GAAP) 29.6 30.3 32.4 33.9 Tr
Slide 24: Operating Income Reconciliations
($ in millions) Fiscal Qtr ended September 23, 2022 (F2Q’23) Fiscal Qtr ended December 23, 2022 (F3Q’23) Fiscal Qtr ended March 31, 2023 (F4Q’23) Fiscal Qtr ended June 30, 2023 (F1Q’24) TTM ended June 30, 2023 Operating Income (GAAP) $59.8 $65.6 $63.1 $70.7 $259.3 Transaction - related costs (2.2) —
Slide 25: Operating Income Reconciliations
($ in millions) Fiscal Qtr ended September 24, 2021 (F2Q’22) Fiscal Qtr ended December 24, 2021 (F3Q’22) Fiscal Qtr ended March 25, 2022 (F4Q’22) Fiscal Qtr ended June 24, 2022 (F1Q’23) Operating Income (GAAP) $38.6 $35.6 $30.2 $14.7 Transaction - related costs 0.3 (1.6) 0.5 1.6 Purchased intangible
Slide 26: Earnings per Share Reconciliations
($ in millions) Fiscal Qtr ended September 23, 2022 (F2Q’23) Fiscal Qtr ended December 23, 2022 (F3Q’23) Fiscal Qtr ended March 31, 2023 (F4Q’23) Fiscal Qtr ended June 30, 2023 (F1Q’24) TTM ended June 30, 2023 Net Income (GAAP) $50.6 $64.6 $62.0 $60.9 $238.1 Diluted Earnings per Share (GAAP) $0.26 $
Slide 27: Earnings per Share Reconciliations
($ in millions) Fiscal Qtr ended September 24, 2021 (F2Q’22) Fiscal Qtr ended December 24, 2021 (F3Q’22) Fiscal Qtr ended March 25, 2022 (F4Q’22) Fiscal Qtr ended June 24, 2022 (F1Q’23) Net Income (GAAP) $33.2 $33.0 $25.7 $10.3 Diluted Earnings per Share (GAAP) $0.17 $0.17 $0.13 $0.05 Transaction -
Slide 28: Thank you
28 Annual Shareholder Meeting Company Presentation August 2021 Thank you
Allegro MicroSystems — Shareholder Meeting (August 2023) on 6ix