Allegro Microsystems, Inc. · NASDAQ:ALGM
Allegro Microsystems — Investor Day (February 2026)
94 slides from Allegro Microsystems's investor day presentation, February 2026
Slide 1: Sensing and Power Reimagined – Analyst Day 2026
New image that dials up robotics Sensing and Power Reimagined Analyst Day 2026 Public
Slide 2: Welcome
Analyst Day Overview Welcome 2
Slide 3: 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-looking stat
Slide 4: Allegro Reimagined
Leadership Perspective Allegro Reimagined 4
Slide 5: Agenda
Agenda Welcome and Opening Mike Doogue, President & CEO Automotive Troy Coleman, Senior Vice President, General Manager, Products Industrial Mark Gill, Vice President, Corporate Strategy Go to Market Rick Madormo, Senior Vice President, Worldwide Sales Financial Derek D'Antilio, Executive Vice Presi
Slide 6: Key Takeaways
Key Takeaways Differentiated & durable ALGM technology: #1 in Magnetic Sensing, leading-edge Power ICs Mid-teens sales growth from content expansion and share gains in high growth xEV, ADAS, AI Data Center, & Robotics markets Extending Magnetic Sensing share with TMR Share gains in Power ICs led by
Slide 7: Allegro Re-Imagined: Unique Technology Intersects with High Growth Markets
Allegro Re-Imagined: Unique Technology Intersects with High Growth Markets Enhanced R&D alignment to megatrends creates a powerful sales & margin growth engine Differentiated Technology Automotive Growth Industrial Growth xEV and ADAS AI Data Center, and Robotics Precision sensing TMR & GMR Efficien
Slide 8: One Year Later: Accelerated Actions Driving Enhanced ALGM Value Creation
One Year Later: Accelerated Actions Driving Enhanced ALGM Value Creation Impactful strategic pivots unlock faster sales growth, higher margins, and significant value creation Strategic Dollar Superior Create New Leaders to Focus Content & Profitability Vectors of Accelerate Share Gains Value Change
Slide 9: Full Team Focus on Financial Excellence and Significant Value Creation
Full Team Focus on Financial Excellence and Significant Value Creation Mid-Teens sales growth, our return to >55% gross margin, a similar OPEX envelope, and FCF of 20%-25% of sales 3-5 Year Target Model¹ New Mid-Teens Accelerated Sales Growth Sales growth Growth Gross margin²,³ >55% Gross Margin Exp
Slide 10: That's our story in 4 slides
That’s our story in 4 slides. But there is so much more to share… 10
Slide 11: A Leader in Innovative Sensor & Power ICs for Secular Growth Markets
A Leader in Innovative Sensor & Power ICs for Secular Growth Markets Enabling electromechanical systems to sense, move & manage power with efficiency & precision What We Do Sales By Product¹ Faster, higher accuracy, robust magnetic sensors • Detect position or motion of a motor / actuator / object E
Slide 12: We are Leaders in High Growth Automotive & Industrial Markets
We are Leaders in High Growth Automotive & Industrial Markets Our products are aligned to high growth secular trends Automotive Industrial & Other Sales By End Market¹ Focus Auto: xEV and ADAS Focus Industrial: Data Centers and Robotics Industrial & Other 28% xEV ADAS Data Center Automation & Roboti
Slide 13: An Even Brighter Future: Enhanced Growth Through Stronger Alignment to Megatrends
An Even Brighter Future: Enhanced Growth Through Stronger Alignment to Megatrends Megatrends fuel strong market growth & rapidly expanding Allegro dollar content Automation AI ELECTRIFICATION AUTOMATION AI ADVANCED ROBOTICS xEV & Energy Infrastructure ADAS & Robotics Data Centers Humanoids 13
Slide 14: Focus Markets are a Foundational Tailwind for Mid-Teens Sales Growth
Focus Markets are a Foundational Tailwind for Mid-Teens Sales Growth Secular growth fueled by 21% CAGR¹ in focus markets & applications with significant dollar content expansion Automotive & Industrial SAM² FY31 Financials $7.8B SAM² ADAS $8.4B $5.3B $13.7B $5.9B Focus areas Other Total Data Center
Slide 15: New Strategies & Focus Drive Share Gains to Support Mid-Teens Sales Growth
New Strategies & Focus Drive Share Gains to Support Mid-Teens Sales Growth Executing on innovations, driving outsized growth potential in >20% CAGR¹ focus markets and applications Innovation & Action Drive ALGM Mid-Teens Sales Growth Growth-oriented, individual sales Higher Growth DISRUPTIVE NEW tea
Slide 16: Accelerating Dollar Content Growth Across xEV Power and ADAS Systems
Accelerating Dollar Content Growth Across xEV Power and ADAS Systems Winning more sockets today and unlocking significant additional IC content in next generation architectures xEV ADAS >3x¹ 2x-3x¹ Opportunity Opportunity New products delivering improved control, Expanding from steering into braking
Slide 17: Accelerating Dollar Content Growth Across AI Data Centers and Robotics
Accelerating Dollar Content Growth Across AI Data Centers and Robotics AI compute and robotics advancements are reshaping industries and expanding ALGM content Data Center Robotics >10x¹ 10x-30x¹ Opportunity Surge Opportunity Increased cooling and power demands Integrated ICs designed in for reliabl
Slide 18: Differentiated Technology & Products Drive Outsized Growth & Share Potential
Differentiated Technology & Products Drive Outsized Growth & Share Potential We have a proven track record of leveraging differentiated & durable IP to deliver rapid business growth TMR XtremeSense >$1.0B Isolated Gate $3.0B Tunneling SAM¹ Drivers (IGD) SAM¹ Magnetoresistance Higher Higher Lower 50%
Slide 19: R&D Investments Re-Allocated to Accelerate Sales & Margin Growth
R&D Investments Re-Allocated to Accelerate Sales & Margin Growth Delivering faster sales growth within the same R&D spending envelope 15-17% Increased R&D investment in high Cost Innovation growth focus areas: xEV, ADAS, data Focus Industrial OF SALES center, and robotics ___________________________
Slide 20: We are Embracing AI to Enhance Almost Everything We Do
We are Embracing AI to Enhance Almost Everything We Do Enhance the product Improve factory yields Embed edge AI development process and efficiencies processing into intelligent sensor ICs 20
Slide 21: Strategic Execution Poised to Deliver Mid-Teens Sales Growth for Allegro
Strategic Execution Poised to Deliver Mid-Teens Sales Growth for Allegro Significant sales growth in focus areas and continued growth in other areas nets out to mid-teens sales growth Allegro Sales Outlook¹ Focus Areas Other Areas F 2 e F 2 F 2 F F 2 Market Drivers xEV, ADAS, AI Data Center +Robotic
Slide 22: Our Experienced and Proven Leadership Team Drives a Brighter Future
Our Experienced and Proven Leadership Team Drives a Brighter Future SHARON BRIANSKY TROY COLEMAN MARK GILL JAMIE HAAS ERIN HAGEN Senior Vice President Senior Vice President Vice President Vice President Senior Vice President General Counsel and General Manager, Corporate Strategy Chief Technology Ch
Slide 23: Key Takeaways
Key Takeaways Differentiated & durable ALGM technology: #1 in Magnetic Sensing, leading-edge Power ICs Mid-teens sales growth from content expansion and share gains in high growth xEV, ADAS, AI Data Center, & Robotics markets Extending Magnetic Sensing share with TMR Share gains in Power ICs led by
Slide 24: Automotive: xEV & ADAS Content Fuel Automotive Growth
Automotive xEV & ADAS Content Fuel Automotive Growth 24
Slide 25: Agenda
Agenda Accelerated Auto growth as xEV and ADAS dollar content opportunity expands 2x to 3x Allegro’s competitive edge in technology and innovation drives share gains Allegro’s new product investments are already addressing a shift in vehicle architectures 25
Slide 26: Over Years of Automotive Innovation
Over 30 Years of Automotive Innovation Broadly trusted by our customers for quality, reliability, efficiency, and performance xEV Battery management DC-DC converter ADAS Electrohydraulic braking (EHB) Electromechanical braking (EMB) Powertrain Heat pump On-board charger Advanced Electronic parking b
Slide 27: Shift to xEV and ADAS Fuels Content Opportunity Expansion
Shift to xEV and ADAS xEV Growth¹ and ADAS Adoption² Fuels Content Outpace vehicle production growth Opportunity Expansion and Sales Growth Driving sales growth well beyond vehicle production volume Rapid hybrid and battery electric adoption accelerates demand _______________________________________
Slide 28: Allegro's Focus Automotive Markets Offer $4.9B SAM Growing at 18% CAGR
Allegro’s Focus Automotive Markets Offer $4. B SAM¹ Growing at an % CAGR² Electrification and driving automation fueling Allegro's growth opportunity Focus Auto FY31 Market Opportunity $7.8B SAM¹, 8% CAGR² xEV SAM¹ ADAS SAM¹ Focus Auto $3.4B ____________________________________________________ $1.5B
Slide 29: Allegro Content Opportunity Per Vehicle is Structurally Increasing
Allegro Content Opportunity Per Vehicle is Structurally Increasing xEV and ADAS content expansion drives IC growth FY21 FY26e FY31e ICE, ADAS, and SCC xEV, ADAS, and SCC xEV, ADAS, SCC, 48V, Zonal ~$40 ~$60 ~$100 per vehicle¹ per vehicle¹ per vehicle¹ 29 1 Third-party data and internal estimates.
Slide 30: xEV Powertrain
Growth story xEV Powertrain 30
Slide 31: Allegro xEV Powertrain Content Grows 3x in Future Vehicles
Allegro xEV Powertrain Content Grows 3x1 in Future Vehicles Current sensors, isolated gate driver, and motor driver innovations deliver on energy efficiency Int. Combustion Hybrid Electric Battery Electric Engine Vehicle Vehicle Vehicle 12V 12V & 48V & 400V 48V & 800V Position Sensors Speed Sensors
Slide 32: Why Allegro Wins in xEV Powertrain
Why Allegro Wins in xEV Powertrain Advanced sensors and drivers cut cost and boost efficiency in Hybrid and Battery Electric Powertrains XTREMESENSE Current Sensors TMR TECHNOLOGY HIGHEST BANDWIDTH TMR current sensors accelerate next-gen 10MHz SiC/GaN power Faster response architectures ____________
Slide 33: ADAS
ALLEGRO :: Ticrosystems
Slide 34: Allegro ADAS Content Grows 2x-3x with ADAS Evolution
Allegro ADAS Content Grows 2x-3x¹ with ADAS Evolution Shift to Steer-by-wire and electromechanical braking driving ADAS content expansion Electrohydraulic Electromechanical Corner Modules Braking + Electric Braking + Steer- Steering + Braking Power Steering by-Wire + Inverter 12V 12V + 48V 48V Posit
Slide 35: Why Allegro Wins in ADAS Systems
Why Allegro Wins in ADAS Systems Sensing and Power innovations engineered for fail-safe performance in safety-critical systems XTREMESENSE T M TMR TECHNOLOGY Angle and Torque Sensors Better steering feel 20x with fail-safe performance Lower noise _____________________________________________________
Slide 36: New Vehicle Architectures
Growth story New Vehicle Architectures 36
Slide 37: Allegro Leading the Shift to True 48V Electrical Architecture
Allegro Leading the Shift to True 48V Electrical Architecture Catalyst for Allegro’s power IC leadership opening new opportunities 48V Architecture Allegro’s Leadership Advantage over 12V in 48V 48V 12V 4x Lower Robust Process Technology current required Automotive qualified 120V wafer process for r
Slide 38: Customer Testimonials
Customer Testimonials We have earned the trust of our most valuable customers Fail Safe Performance Supply Chain Resilience Accuracy with High Speed For our new ADAS platform, Allegro’s outstanding supply chain Allegro’s current sensor portfolio Allegro’s position sensor was the resilience was criti
Slide 39: New System Architectures and Widespread Adoption Increase Content Opportunity
New System Architectures and Widespread Adoption Increase Content Opportunity Allegro’s auto grade technology and reliability are critical to the systems of the future Automotive SAM¹ Financials $7.8B SAM¹ ADAS $4.9B $2.9B $7.8B Focus areas Other Total xEV FY26-FY31 SAM CAGR 18% -1% 8% Focus areas O
Slide 40: Technology and Strategies to Deliver Greater than 10% Auto Sales Growth
Technology and Strategies to Deliver Greater than 10% Auto Sales Growth Significant sales growth in ADAS & xEV and continued growth in Other Auto Allegro Automotive Sales Outlook¹ Focus Automotive Other Automotive F 2 e F 2 F 2 F F 2 Market Drivers xEV, ADAS +48V, +Advanced ADAS Systems Product Driv
Slide 41: Key Takeaways
Key Takeaways Accelerated Auto growth as xEV and ADAS dollar content opportunity expands 2x to 3x Allegro’s competitive edge in technology and innovation drives share gains Allegro new product investments are already addressing a shift in vehicle architectures 41
Slide 42: Industrial: Accelerated Growth, Elevated Margins
Industrial Accelerated Growth Elevated Margins 42
Slide 43: Agenda
Agenda Redefining Focus Industrial to AI Data Center and Robotics Accelerating our opportunities in Focus areas Industrial markets to drive high-teens sales growth at elevated margins 43
Slide 44: Megatrends Accelerate Industrial Growth
Megatrends Accelerate Industrial Growth ELECTRIFICATION AUTOMATION AI 44
Slide 45: Allegro's Focus Industrial Markets Offer $3.5B SAM Growing at 27% CAGR
Allegro’s Focus Industrial Markets Offer $ .5B SAM¹ Growing at 27% CAGR² Allegro delivers innovation, quality, world-wide presence, and customer intimacy Focus Industrial FY31 Market Opportunity $5.9B SAM¹ at 17% CAGR² SAM¹ SAM¹ Focus Industrial $1.7B ________________________________________________
Slide 46: AI Server Power & Cooling Accelerates our Industrial Momentum
AI Data Center AI Server Power & Cooling Accelerates our Industrial Momentum 46
Slide 47: AI Data Center Market Opportunity = $1.7B Growing at >20% CAGR
AI Data Center Market Opportunity = $1.7B¹ Growing at >20% CAGR² More fans in the data center, and a strong ramp in current sensor and isolated gate driver adoption Data Center AI Data Center AI / Hyperscaler 2023 2025 2028 12V 12V & 48V 48V & 800V Motor Drivers Motor Drivers Current Sensors Motor D
Slide 48: Improving Efficiency and Safety for AI Data Centers
Improving Efficiency and Safety for AI Data Centers Power delivery and cooling present significant opportunities for key Allegro technologies Motor Drivers Algorithms deliver low noise, power efficient cooling for Power Supply and GPUs, for both air and liquid cooled systems ________________________
Slide 49: Robotics Accelerate the Next Decade of Growth
Robotics Robotics Accelerate the Next Decade of Growth 49
Slide 50: Advent of AI Drives 30-fold Content Growth in Robotics
Advent of AI Drives 30-fold¹ Content Growth in Robotics Household and factory automation opportunity $400M¹ within our target $1.8B SAM¹ Household Robot Factory Robot Humanoid Robot 2023 2026 2030 12V 12V & 48V 48V+ Current Sensors Position Sensors Current Sensors Position Sensors Current Sensors Po
Slide 51: Humanoid Robotics Market Opportunity = $1.4B Growing at >30% CAGR
Humanoid Robotics Market Opportunity = $1.4B¹ Growing at >30% CAGR² Improving accuracy, utility, and efficiency Position Sensors >14-bit high-resolution feedback for robotic actuation Tiny TMR sensors for small joints Inductive sensors in larger joints Surface touch sensing delivers ultimate force s
Slide 52: Closing the Technology Gap on Force & Torque Sensing
Closing the Technology Gap on Force & Torque Sensing Innovative technology based on quantum tunneling – the “TMR of Strain Gauges” Strain-sensitive flexible substrate is highly applicable for: 6-axis force and torque sensors in large joints 3-axis force for small joints and finger pads _____________
Slide 53: Maximizing Higher-Margin Growth Across a Broad Customer Base
Other Industrial Maximizing Higher-Margin Growth Across a Broad Customer Base 53
Slide 54: Energy Infrastructure Market Opportunity = $900M Growing at 7% CAGR
Energy Infrastructure Market Opportunity = $900M¹ Growing at 7% CAGR² Improving efficiency and safety in clean energy, EV charging, and power grid applications Hall and TMR Current Sensors Highest industry bandwidth at 5MHz and 10MHz increases efficiency & power density _____________________________
Slide 55: Other Industrial Market Opportunity = $1.5B and Growing at 9% CAGR
Other Industrial Market Opportunity = $1.5B¹ and Growing at 9% CAGR² Improving efficiency, battery life, reliability, and safety Personal Mobility Reuse robust automotive current and position sensor portfolios, “contactless” reliable sensing Medical & Portable Devices Low power and high precision TM
Slide 56: Industrial Opportunities Maximize Profitable Growth for Allegro
Industrial Opportunities Maximize Profitable Growth for Allegro High return-on investment with elevated gross margins Industrial SAM¹ Financials $5.9B SAM¹ $3.5B $2.4B $5.9B Data Center Focus areas Other Total Robotics & Automation FY26-FY31 SAM CAGR 27% 8% 17% Focus areas Other Total Other Industri
Slide 57: Customer Testimonials
Customer Testimonials Cooling with Signal Integrity Stability with Efficiency System Size Reduction with We chose Allegro’s motor driver Allegro's TMR current sensor Ease solution to stay ahead in the technology is a breakthrough. It For our industrial automation competitive data center liquid deliv
Slide 58: Optimized Strategies Deliver a High-Teens Sales CAGR with Accretive Margins
Optimized Strategies Deliver a High-Teens Sales CAGR² with Accretive Margins We are accelerating sales & gross margin across Industrial Markets Allegro Industrial Sales Outlook¹ Focus Industrial Other Industrial F 2 e F 2 F 2 F F 2 Market Drivers AI / Data Center +Robotics +Isolated Gate Drivers, Pr
Slide 59: Takeaways
Takeaways Redefining Focus Industrial to AI / Data Center and Robotics Accelerating our opportunities in Focus areas Industrial markets to drive high-teens sales growth at elevated margins 59
Slide 60: Sales: Driving Allegro's Next Era of Growth
Sales riving Allegro’s Next Era of Growth 60
Slide 61: Agenda
Agenda Changes to our sales org and structure to accelerate sales growth Applying our differentiated technology to high-growth markets fueled by key megatrends Continued strong momentum in China fuels growth and success Sales pipeline exceeds mid-teens CAGR, supporting our targeted growth rate 61
Slide 62: Our Strategy is Centered on Customer Intimacy
Our Strategy is Centered on Customer Intimacy The success of our leading ICs is built on close collaboration with our customers. Customer intimacy and custom- tailored innovations result in durable and “sticky” products. 62
Slide 63: Our customers are not organized by geography, why should we be?
Our customers are not organized by geography, why should we be? 63
Slide 64: Go to Market Strategy
Go to Market Strategy Customer needs influence our product roadmaps, creating cycles of innovation. Re-organized our sales force and have dedicated salespeople & field application engineers (FAEs) using the proven playbook in Industrial markets that defines our success in Auto. Maintaining our focus
Slide 65: Accelerating Broad Market Growth via Distribution Partnerships
Accelerating Broad Market Growth via Distribution Partnerships Deep Global Leveraging Specialty Focused Selling into Partnerships Distributors the Broad Market Differentiated sales and design support Differentiated products 65
Slide 66: Applying our Technology to High Growth Megatrends
Applying our Technology to High Growth Megatrends Sales re-organization leverages our strength across markets to unlock mid-teens sales growth Precision Sensing Data Center Growth Electrification is Demand is Rising Requires Reliability Driving Sustainability Precision position and current More fan
Slide 67: Building From a Well-Balanced Geographical and Channel Footprint
Building From a Well-Balanced Geographical and Channel Footprint TTM¹ Sales by Geography Europe Americas 13% 16% Enabled by a network of regional sales and technology centers ________________________________________________________________ No end customer accounts for more than 10% of total sales __
Slide 68: Continued Strong Momentum in China Fuels Growth
Continued Strong Momentum in China Fuels Growth FY25-F 2 T China design win growth > 5%², fueled by differentiated current / position sensors & motor driver ICs TTM¹ Sales by Geography Highly Sticky Automotive Business Long term Design Wins in safety critical applications Proprietary Patented Techn
Slide 69: China's Investment Strategies Align to Our Strengths
China’s Investment Strategies Align to Our Strengths Aligned growth strategies with the supply chain to serve it Automotive Industrial 48V Expansion Expansion Proliferation in ADAS & xEV in data center & robotics across industrial & automotive 69
Slide 70: Winning in China: Our 'China-for-China' Strategy
Winning in China: Our 'China-for-China' Strategy OUR ‘C INA FOR C INA’ STRAT G IS BUILT ON X CUTING T R COR PILLARS Local Local Local Supply Innovation & Partnerships Chain Support Local team is co- Deeply embedded in Shipping from OSAT developing solutions the local ecosystem partners in FY26 and a
Slide 71: Sales Pipeline Exceeds Mid-Teens Growth Rate
Sales Pipeline Exceeds Mid-Teens Growth Rate Sales Pipeline1 $B $ . $2.5 $2. $ .5 $ . $.5 $. F 2 2 ² F 2 27 F 2 2 F 2 2 F 2 F 2 Sales Pipeline Mid-Teens Sales Growth 71 1. Internal data as of January 8, 2026. 2. Projected closed-won business based on internal data.
Slide 72: Industrial Customers Choose Allegro for a Reason
Industrial Customers Choose Allegro for a Reason More focused team, highly differentiated products, more purposeful approach End Market Focused Sales Teams Sharper focus, deeper expertise Collaborate with Channel Partners Accelerating our reach through dedicated support Leverage Portfolio Strength f
Slide 73: Proven Automotive Advantage: Scale, Stability, and Innovation
Proven Automotive Advantage: Scale, Stability, and Innovation Allegro solutions designed in at all Top Global OEMs and Tier-1s Customer Diversity No direct customer >10% of sales Scalable Solutions from ICE to EV Product leadership with reliable ICs & supply chain Three Decades of Automotive Trust D
Slide 74: Earned Trust and Recognition
Earned Trust and Recognition Speed to Market Reliable Collaboration Compact Integration R&D Partnership In the competitive data Allegro has been an For our industrial Our partnership with What center market, accelerating our design time is a critical active, strategic, and reliable partner for us. a
Slide 75: Finance: Business Performance & New Financial Model
Finance Business Performance & New Financial Model 75
Slide 76: Agenda
Agenda Key Financial priorities Our historical financial performance Recap total SAM and end markets Discuss our fabless model and how recent investments pave the way for growth New target financial model and define the path to achieve the model Disciplined capital allocation strategy focused on gro
Slide 77: Key Financial Priorities
Key Financial Priorities TECHNOLOGY & MARKET LEADERSHIP DRIVING VALUE CREATION Use Operating Reinvest FCF for Leverage to Drive Growth or Select Share Accelerate Gross Margin Significant Growth in Repurchases while Sales Growth Expansion Earnings and Free Maintaining a Strong Cash Flow (FCF) Balance
Slide 78: History of Significant Sales and Earnings Growth
History of Significant Sales and Earnings Growth Improved operating efficiency - prepared for sustainable, profitable growth Net Sales History of double-digit $M sales growth 21% CAGR 22% GROWTH ______________________________________________________ INVENTORY CORRECTION Significant operating leverag
Slide 79: Well-Positioned in Large and Growing Markets
Well-Positioned in Large and Growing Markets Served Addressable Market Expected to Grow by 12%, and our Focus Areas Projected to Grow by 21% FY31 Market Opportunity Auto Industrial Total SAM $7.8B SAM¹ $5.9B SAM¹ $13.7B SAM¹ 8% CAGR² 17% CAGR² 12% CAGR² Focus Auto Focus Industrial Focus Areas $4.9B¹
Slide 80: History of Gross and Operating Margin Improvement
History of Gross and Operating Margin Improvement Exiting FY26 at 50% gross margin, on a path to return to historical profitability Gross Margin¹ Operating Margin¹ as % of Sales as % of Sales 55% AVERAGE GROSS MARGIN 24% AVERAGE OPERATING MARGIN INVENTORY INVENTORY CORRECTION CORRECTION Q FY Guidanc
Slide 81: R&D Investments Drive Technology Leadership, Sales Growth, and Cost Innovation
R&D Investments Drive Technology Leadership, Sales Growth, and Cost Innovation SG&A foundation in place to support significant growth R&D², SG&A² & OPEX² $M as % of Sales Aggressive OPEX reallocation to AVERAGE R&D % OF SALES 15% support R&D and sales AVERAGE OPEX % OF SALES 30% Research & Developme
Slide 82: Fabless Business Model
Fabless Business Model Recent investments pave the way for scale, operating leverage, and EPS growth S U P P O R T I N G M U LT I P L E S U P P LY C H A I N L A N E S United States China Global Resilience Rest of China-for- at Scale World China¹ ▪ Multiple Fabs ▪ USA and Taiwan ▪ Local fab for local
Slide 83: Investments Already Made to Accelerate Growth
Investments Already Made to Accelerate Growth Poised for strong return on invested capital and value creation CAPEX $M and as % of Sales Capex 4% • Approximately $400 million 2% invested to support up to $1.2B in sales % • Largely expansion of capacity in % the Philippines % • Continue to optimize m
Slide 84: Target Financial Model
Target Financial Model 3-5 Year Target Model¹ New Automotive targeted to grow >10% led by 18% ADAS and xEV SAM growth. Sales growth Mid-Teens Growth Industrial targeted to grow at high-teens led by 27% Data Center & Robotics SAM growth. Return to above historical average through operating leverage,
Slide 85: Defined Strategies and Actions to Return to >55% Gross Margins
Defined Strategies and Actions to Return to >55% Gross Margins² FY24 INVENTORY 50% 56% GM CORRECTION Q4 Guide³ >1% >55% Operating Leverage • Internal Philippines assembly and test 1%-2% facility 55% 3%-5% Optimize VCM Factory efficiencies incremental GM (60-65%) • Automation, OEE, and cycle time imp
Slide 86: Operating Leverage Leads to Significant Increase in Operating Income
Operating Leverage Leads to Significant Increase in Operating Income² Target Opex growth in-line with inflation with investments in R&D and sales Operating Income² % Operating leverage leads to FY24 29% OI INVENTORY CORRECTION 16% Q4 GUIDE³ significant increase in operating 10%-14% >32% income _____
Slide 87: Investment and Capital Allocation Strategy
Investment and Capital Allocation Strategy¹ • R&D innovation that extends technology leadership and optimizes product cost Investments in Organic Growth • Sales investments in fast-growing markets and regions • Focus on high ROI organic investments • Complementary to our technical expertise M&A with
Slide 88: Key Takeaways
Key Takeaways Differentiated & durable ALGM technology: #1 in Magnetic Sensing, leading-edge Power ICs Mid-teens sales growth from content expansion and share gains in high growth xEV, ADAS, AI Data Center, & Robotics markets Extending Magnetic Sensing share with TMR Share gains in Power ICs led by
Slide 89: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ALGM LISTED NASDAQ 89
Slide 90: GAAP to Non-GAAP Gross Profit and Gross Margin Reconciliations
GAAP to Non- Estimated Fiscal Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended ($ in millions) March 26, 2021 (FY’ ) March 25, 2022 (FY’ ) March 31, 2023 (FY’ ) March 29, 2024 (FY’ ) March 28, 2025 (FY’ ) Year ended March 27, 2026 GAAP Gross Profit (FY’ )² an
Slide 91: GAAP to Non-GAAP Operating Income and Operating Margin Reconciliations
GAAP to Non- Estimated Fiscal Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended ($ in millions) March 26, 2021 (FY’ ) March 25, 2022 (FY’ ) March 31, 2023 (FY’ ) March 29, 2024 (FY’ ) March 28, 2025 (FY’ ) Year ended March 27, 2026 GAAP Operating (FY’ )² Incom
Slide 92: GAAP to Non-GAAP Earnings Per Share Reconciliations
Estimated Fiscal GAAP to Non- ($ in millions, except for shares) Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended Year ended March 26, 2021 March 25, 2022 March 31, 2023 March 29, 2024 March 28, 2025 March 27, 2026 (FY’ ) (FY’ ) (FY’ ) (FY’ ) (FY’ ) GAAP Earn
Slide 93: GAAP to Non-GAAP Operating Expense Reconciliations
Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended Estimated Fiscal ($ in millions) GAAP to Non- March 26, 2021 (FY’ ) March 25, 2022 (FY’ ) March 31, 2023 (FY’ ) March 29, 2024 (FY’ ) March 28, 2025 (FY’ ) Year ended March , (FY’ )2 GAAP GAAP Operating Expense
Slide 94: GAAP to Non-GAAP Free Cash Flow Reconciliations
GAAP to Non-GAAP Estimated Fiscal Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended Fiscal Year ended ($ in millions) March 26, 2021 (FY’ ) March 25, 2022 (FY’ ) March 31, 2023 (FY’ ) March 29, 2024 (FY’ ) March 28, 2025 (FY’ ) Year ended March 27, 2026 Free Cash Flow (FY’ )² R