Microchip Technology Incorporated · NASDAQ:MCHP
Microchip Technology — J.P.Morgan Automotive Investor Conference 2020
16 slides from Microchip Technology's conference presentation, Aug 12, 2020
Slide 1: J.P.Morgan Automotive Investor Conference 2020
J.P.Morgan Automotive Investor Conference 2020 A Leading Provider of Smart, Connected and Secure Embedded Control Solutions Ganesh Moorthy, President and COO Eric Bjornholt, Senior Vice President and CFO August 12, 2020
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: Q1FY21 Business Results and Q2FY21 Guidance
Q1FY21 Business Results and Q2FY21 Guidance* • Q1FY21 net sales of $1.310 billion, down 1.3% sequentially and down 1.0% from a year ago quarter • Q1FY21 Non-GAAP gross margin of 61.7%, operating margin of 38.6% and diluted EPS of $1.56 • Q2FY21 net sales guidance of flat to down 8% sequentially with
Slide 4: Financial Results, Guidance and Long-Term Model
Financial Results, Guidance and Long-Term Model* Actual Results Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Net Sales $844.0 $873.8 $881.2 $902.7 $972.1 $1012.1 $994.2 $1002.3 $1216.8 $1513.3 $1416.0 $1329.8 $1322.6 $1337.8 $
Slide 5: Corporate Snapshot
Corporate Snapshot Leading Total Systems Solutions Provider: • High-performance standard and specialized • Clock and Timing solutions Microcontrollers, Digital Signal Controllers and • Wireless and Wired Connectivity solutions Microprocessors • FPGA solutions • Mixed-Signal, Analog, Interface and Se
Slide 6: Annual Growth
Annual Growth End Market Demand 6000 119 consecutive quarters of non-GAAP profitability! 5000 4000 $ Million 3000 2000 1000 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 RR* MCU Analog FPGA LMO 6 6 *
Slide 7: Revenue By End Market
Revenue By End Market* 12% 28% Industrial 13% Data Center & Computing Automotive Communication 14% Consumer 18% Aerospace & Defense 15% * End market diversification based on management estimates for the fiscal year ending March 31, 2020 7 Microchip Proprietary and Confidential
Slide 8: Market Megatrends
Market Megatrends Converging in the Car of Tomorrow 8
Slide 9: Market Megatrends
Market Megatrends Industrial 5G Data Center IoT & Computing Data Automotive Centers Communications Electric Vehicle Aerospace & Defense AI/Machine Learning Consumer ADAS/Autonomous Driving 9
Slide 10: Market Megatrends… go hand in hand with the automotive future
Market Megatrends… … go hand in hand with the automotive future Connected & Secure Automated Electrified One hour per day in the vehicle > 1 Million fatalities globally CO2 emission regulations, & enabling features – revenue through road traffic, driver “green“ consumer conciousness potential conven
Slide 11: Automotive Market - COVID-19 Impact
Automotive Market - COVID-19 Impact 11
Slide 12: Automotive Market – Monthly Production in Units
Automotive Market – Monthy Production in Units • 1H’2020 production disrupted significantly by Covid-19 Pandemic related shut-downs • Global car production dropped by ~30% in CQ2’20 as compared to CQ2’19 • China production recovered in CQ2’20 with sequential and YoY growth during each month Source:
Slide 13: Automotive Market – Monthly Sales in Units
Automotive Market – Monthly Sales in Units • 1.6M more cars sold than produced in 1H‘2020 – helps 2H‘2020 production • China sales recovered with sequential and YoY growth during each month of CQ2’20 • Americas, Europe and Japan sales recovered in June 2020 to ~70% of June 2019 Source: Marklines 202
Slide 14: Summary
14 Summary IN MicrocHiP
Slide 15: Summary
Summary • Microchip is effectively navigating the COVID-19 challenges • 38.6% non GAAP operating margin in FQ1’2021 • Paid down $2.62B of debt over the last 8 quarters • Microchip’s market segments are well aligned with Six Global Megatrends • The three Automotive Megatrends: Connected & Secure, Aut
Slide 16: Thank You
16 Thank You IN MicrocHiP
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