Slide 1: Investor Presentation Fiscal Third Quarter 2025
Investor Presentation Fiscal Third 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* Durable End Markets FY23 FY24 Industrial Data Center & Computing Automotive Communication Consumer Appliance 4 *Based on Microchip Internal estimates
Slide 5: Net Sales Growth
Net Sales Growth 137 consecutive quarters of Non-GAAP profitability! 15.5% CAGR $Millions 5
Slide 6: Third Quarter FY2025 Revenue Mix
Third Quarter FY2025 Revenue Mix Net Sales by Product Line Net Sales by Geography Net Sales by Channel • Organic growth efforts focused on TSS and Megatrends • Synergistic product portfolio empowers disruptive growth trends • Diversified product portfolio with long process technology and life cycles
Slide 7: Fiscal 3rd Quarter 2025 Results (Non-GAAP)
Fiscal 3rd Quarter 2025 Results (Non-GAAP) • GAAP Revenue of $1.026 billion; declined 11.8% QoQ and 41.9% YoY • Gross margin of 55.4% • Operating margin of 20.5% • Earnings per share of $0.20 • Net debt increased by $33.6 million ‒ Cumulatively paid down ~$6.0 billion of debt over the last 26 quarte
Slide 8: Fiscal 4th Quarter 2025 Guidance (Non-GAAP)
Fiscal 4th Quarter 2025 Guidance (Non-GAAP)* Q3 FY25 Q4 FY25 Actual Mid-point Guidance* GAAP Revenue ($Millions) $1,026.0 $960.0 Gross Margins 55.4% 53.0% Operating Expenses 34.9% 39.1% Operating Margins 20.5% 13.9% Earnings Per Share $0.20 $0.10 *Represents guidance provided on February 6, 2025 Add
Slide 9: 9-Point Strategic Review
9-Point Strategic Review Manufacturing Footprint Inventory Management Growth Initiatives − Fab 2 closure initiated − Inventory days current: 266 (Dec ’24) − Megatrends/TSS review ongoing − Rotating schedules at Fab 4 & 5 − Foundry starts reduced significantly − Backend facilities on reduces schedule
Slide 10: Empowering Innovation In Diverse, Durable Markets
Empowering Innovation In Diverse, Durable Markets Consumer Industrial Space Sustainability Automotive Medical Data Center Defense Communication Infrastructure Aviation 10
Slide 11: Portfolio of Hardware, Software and Services
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 12: 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 Automotive ADAS/Autonomous Driving E-Mobility 12 © 2024 Microchip Technolo
Slide 13: 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 14: 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 15: Consistent, Disciplined and Balanced Capital Return Strategy
Consistent, Disciplined and Balanced Capital Return Strategy ‒ Reduced debt 21 out of last 26 Debt Paydown quarters ‒ Current leverage ratio of 3.78x Adjusted Free Cash $6.0 billion Flow (FCF)* Generation Dividends Paid ‒ 90 consecutive quarters of FY2019 – Q3 FY2025 dividends paid ~$3.9 billion ~$1
Slide 16: Follow us @microchiptechnology
Follow us @microchiptechnology A Leading Provider of Smart, Connected and Secure Embedded Solutions