Slide 1: Investor Presentation Fiscal Second Quarter 2025
Investor Presentation Fiscal Second Quarter 2025 December 2024 Update 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* FY23 Durable End Markets FY24 12% 11% 11% 10% 41% 43% 17% 18% 19% 18% Industrial Data Center & Computing Automotive Communication Consumer Appliance 4 *Based on Microchip Internal estimates
Slide 5: Net Sales Growth
Net Sales Growth 10,000 9,000 136 consecutive quarters of Non-GAAP profitability! 8,000 7,000 $ Million 6,000 15.5% CAGR 5,000 4,000 3,000 2,000 1,000 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 FY
Slide 6: Second Quarter FY2025 Revenue Mix
Second Quarter FY2025 Revenue Mix Net Sales by Product Line Net Sales by Geography Net Sales by Channel Europe Other 18% Direct 24% Mixed Americas 56% Signal 32% MCUs Distribution Analog 51% Asia 44% 25% 50% ➢ Organic growth efforts focused on TSS and Megatrends ➢ Synergistic product portfolio empow
Slide 7: Fiscal Second Quarter 2025 Results (Non-GAAP)
nd Fiscal 2 Quarter 2025 Results (Non-GAAP) ➢ GAAP Revenue of $1.16 billion; declined 6.2% QoQ and 48.4% YoY ➢ Gross margin of 59.5% ➢ Operating margin of 29.3% ➢ Earnings per share of $0.46 ➢ Total debt increased by $256 million ‒ Cumulatively paid down ~$6.4 billion of debt over the last 25 quarte
Slide 8: Fiscal 3rd Quarter 2025 Guidance (non-GAAP)
Fiscal 3rd Quarter 2025 Guidance (non-GAAP)* December 2024 Q2 FY25 Q3 FY25 Guide Update Actual @ low-end GAAP Revenue $1,163.8 $1,025.0 ($ Million) Gross Margins 59.5% 57.0% Operating Expenses 30.3% 34.8% Operating Margins 29.3% 22.2% Earnings per share $0.46 $0.25* *Represents guidance provided on
Slide 9: Business & Operational Updates - December 2024
Business & Operational Updates - December 2024 Leadership Update • Steve Sanghi confirms commitment as Interim CEO/President with no set timeline for succession Revenue Guidance • December 2024 quarter revenue expected at lower end of guidance (~$1.025B*) due to slower turns orders • Manufacturing R
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: Providing Total System Solutions
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 ADAS/Autonomous Driving E-Mobility Automotive © 2024 Microchip Technology
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 in 21 out of the Debt Paydown last 25 quarters ‒ Current leverage ratio of 2.85x Adjusted Free Cash $6.4 Billion Flow (FCF)* Generation Dividends Paid ‒ 89 consecutive quarters of FY2019 – Q2 FY2025 dividends paid ~$12.6 ~$3
Slide 16: Follow us @microchiptechnology
Follow us @microchiptechnology A Leading Provider of Smart, Connected and Secure Embedded Control Solutions