Slide 1: Investor Presentation Fiscal Fourth Quarter 2025
Investor Presentation Fiscal Fourth 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: Net Sales Growth
Net Sales Growth 138 consecutive quarters of Non-GAAP profitability! 13.0% CAGR $Millions 4
Slide 5: Fourth Quarter FY2025 Revenue Mix
Fourth 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 cycle
Slide 6: Revenue By End Market
Revenue By End Market FY24 Durable End Markets FY25 Microchip Proprietary and Confidential
Slide 7: Revenue By Megatrend
Revenue By Megatrend* Durable End Markets FY24 FY25 5G IoT Data Center EV ADAS Sustainability Other *Based on Microchip Internal estimates 7 For FY2026 replaced 5G with AI/ML and added Networking and Connectivity which includes the ADAS megatrend
Slide 8: Strategic Pivot: Growing Where it Matters
Strategic Pivot: Growing Where it Matters Key Highlights: • Megatrend success leverages TSS strategy to increase products-per- design win • Strategic shift to Megatrend business increasing from 33% to 47% of total revenue • Successfully transitioning to higher-growth market segments • Strong design
Slide 9: Fiscal 4th Quarter 2025 Results (Non-GAAP)
Fiscal 4th Quarter 2025 Results (Non-GAAP) • GAAP Revenue of $970.5 million; declined 5.4% QoQ and 26.8% YoY • Gross Margin of 52.0% • Operating Margin of 14.0% • Diluted Earnings Per Share of $0.11 • Net debt decreased by $1,310.4 million • Adj. TTM EBITDA* of $1,337.2 million • Adj. Free Cash Flow
Slide 10: Fiscal Year 2025 Results (Non-GAAP)
Fiscal Year 2025 Results (Non-GAAP) • GAAP Revenue of $4.402 billion • Gross Margin: $2.510 billion (57.0% Gross Margin) • Operating Margin: $1.078 billion (24.5% Operating Margin) • Diluted Earnings Per Share of $1.31 • Total debt decreased by $356.2 million • Adj. TTM EBITDA* of $1,337.2 million •
Slide 11: Fiscal 1st Quarter 2026 Guidance (Non-GAAP)
Fiscal 1st Quarter 2026 Guidance (Non-GAAP)* Q4 FY25 Q1 FY26 Guide Long Term Actual @ mid-point Model (Through Cycles) GAAP Revenue ($Millions) $970.5 $1,045.0 Industry Gr. Plus Gross Margins 52.0% 53.2% 65.0% Operating Expenses 38.0% 34.1% 25.0% Operating Margins 14.0% 19.1% 40.0% Earnings per shar
Slide 12: 9-Point Strategic Review Update
9-Point Strategic Review Update Inventory Reduction Growth Initiatives Customer Relationships − Strategy review complete − Achieved preferred/approved status at 78% of − Dec 24’: 266 Days Mar 25’: 251 Days clients where our relationship had deteriorated − Target: 130-150 Days − Stronger performance
Slide 13: Empowering Innovation In Diverse, Durable Markets
Empowering Innovation In Diverse, Durable Markets Consumer Industrial Space Sustainability Automotive Medical Data Center Defense Communication Infrastructure Aviation 13
Slide 14: 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 15: Strategic Focus and In-Depth Knowledge
Strategic Focus and In-Depth Knowledge Megatrends End Markets Communications Data Center & Computing Consumer Appliance Industrial Aerospace & Defense Automotive 15 © 2024 Microchip Technology Inc. and its subsidiaries
Slide 16: Addresses a Wide Range of End Markets
Addresses a Wide Range of End Markets Industrial Automotive Consumer Scalable Compute Diverse End Markets Defense Aviation Communications 2k DMIPs 5k DMIPs 26K DMIPs 64bit Embedded Processing TAM ~$5 Billion * Scalable Radiation Performance Satellites Spacecraft Rovers/Landers Multiple Mission Profi
Slide 17: 10BASE-T1S addressing a Wide Range of End Markets
10BASE-T1S addressing a Wide Range of End Markets Scalable Interfaces Industrial Automotive Defense Diverse End PHY MACPHY TRX Markets MII, RMII SPI OA3p First to Market! Significant Growth Opportunity Pre-Programmed MCUs In-cabinet Microphones LED Lighting Diverse LAN8660 LAN8661 LAN8662 Applicatio
Slide 18: Consistent, Disciplined and Balanced Capital Return Strategy
Consistent, Disciplined and Balanced Capital Return Strategy ‒ Reduced debt 22 out of last 27 Debt Paydown quarters ‒ Current leverage ratio of 3.66x Adjusted Free Cash $7.2 billion Flow (FCF)* Generation Dividends Paid ‒ 91 consecutive quarters of FY2019 – Q4 FY2025 dividends paid ~$4.2 billion ~$1
Slide 19: Follow us @microchiptechnology
Follow us @microchiptechnology A Leading Provider of Smart, Connected and Secure Embedded Solutions