Steve Sanghi, CEO
Eric Bjornholt, CFO ©March 2017
2 ©March 2017
0100200300400500600700800900
1000110012001300140015001600170018001900200021002200230024002500260027002800290030003100320033003400350036003700380039004000
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
MCU Analog Memory Licensing MMO
Annual Net Sales Growth
$ M
illi
on
RR
105 consecutive quarters of profitability!
3 ©March 2017
Multiple Growth Drivers
1. Microcontroller market growth and share gains
2. Analog growth and attach opportunity
3. Wireless/IoT/Connectivity
4. Automotive networking, car access and electronics
5. Security
6. Technology licensing
4 ©March 2017
Total MCU (8/16/32) Market Share %
0
2
4
6
8
10
12
14
16
CY
94
CY
95
CY
96
CY
97
CY
98
CY
99
CY
00
CY
01
CY
02
CY
03
CY
04
CY
05
CY
06
CY
07
CY
08
CY
09
CY
10
CY
11
CY
12
CY
13
CY
14
CY
15
CQ
216
%
CQ2 16 includes Atmel
5 ©March 2017
Analog Yearly Revenue (k$)
$0$50,000
$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$550,000$600,000$650,000$700,000$750,000$800,000$850,000$900,000$950,000
$1,000,000
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
RR
6 ©March 2017
2008 2009 2010 2011 2012 2013 2014
Expanding Our Solutions
Through Acquisitions
Hampshire Touch Screen
Controllers
Security & Life
Safety ASICs
Low-Power
Embedded
Wi-Fi®
High-Density Flash
& IP
Motor Drive
Products
Development Tools
Compiler
Assembly & Test
Capacity
Expansion
LSS High-Speed
ADCs
3D Gesture Capture
& Proximity Detect
Bluetooth® &
Embedded Wi-Fi®
MOST®, USB,
Ethernet, Wireless Audio
& PC Controllers
Non-volatile
Memory IP
Equalizer &
Coaxial
Transceiver
Products
High-Voltage Analog &
Mixed-Signal Products
Bluetooth®
Low Energy
2015
Analog, mixed-signal,
timing & power
management
HI-TECH
ZeroG
Advanced Silicon Roving Networks
Novocell
Supertex
Micrel
R&E
International
SST
MMT
Ident
SMSC
EqcoLogic
ISSC
2016
Microcontrollers,
Wireless, Touch,
Automotive,
Security
& Memory
Atmel
7 ©March 2017
Automotive Water Pump
3x MOSFET
pairs
3 phase
BLDC
Motor
Micrel
Classic
Microchip
Atmel
MIC2920A
LDO
MIC28512/3
Sw. Reg
MIC4605 x 3
85V MOSFET
Driver
ATA663211
LIN
Transceiver
dsPIC33EP6
4MC504
MCU
MCP6L04
Op Amp
MCP1700
LDO
24LC16B
Serial EE
8
Router
3G module
12V
Micrel
Classic
Microchip
Atmel
MIC4576
Sw. Reg
MIC69101
(1.8V)
LDO
MIC69101
(3.3V)
LDO
KSZ8081
Ethernet PHY
KSZ8995
Ethernet Sw.
AT91SAM9
G20B
MPU
9 ©March 2017
Alarm Panel Uplink
Micrel
Classic
Microchip
Atmel
MIC2128
Controller
MIC4723
Sw. Reg
MIC4723
Sw. Reg
MIC2875
Boost Sw. Reg
MIC95410
Load Switch
MIC5353
LDO
MIC94355
Ripple Blocker
MIC2039
Load Switch
MIC2039
Load Switch
MIC2039
Load Switch
MIC2039
Load Switch
MIC2039
Load Switch
MCP73833
Batt. Charger
MIC6143
Op Amp
MCP23017
I/O Expander
SMSC
USB4604
USB Hub
10 ©March 2017
PC Dock
Micrel
Classic
Microchip
Atmel
UCS3205 USBPD
Power Switch
MIC261201
Sw Reg
PIC32
USBC Manager & Bridge
SMSC
UPD350
Type C
Controller
20V Vin ECC508
Authentication
20
V V
in
USB5826
USB3.1 6 Port Controller/Hub
UPD360 Type
C Controller
MIC2033
Load Switch
UPD360
Type
C Controller
MIC2033
Load Switch
USB5744
4 Port USB Controller/Hub
MIC2033
Load Switch
MIC2033
Load Switch
MIC2033
Load Switch
USB 3.0
Type-A
USB 3.0
Type-A
USB 3.0
Type-A
USB 3.0
Type-A
USB 2.0
Type-A
Type-C
Type-C Type-C
DP-Hub
11 ©March 2017
Display Module
PIC32MZ2048EFG100
Host
LCD Display
w/ ITO Layer
I2C/SPI/USB I2C/SPI/USB I2C/SPI/U
SB
EBI/PMP Parallel
RGB
SQI GPIO GPIO I2C
GPIO GPIO
mXT337TPTP
PCAP Touch
Controller
I2C
LCC FIRMWARE
RX lines
Analog
Driver
INT SYNC
Vsync
Hsync
Pclk
SQ
I
SST26VF016B
SQI Flash
Font Storage
MIC2293-15YML
Backlight
Controller
PW
M
DSC1001
MEM’s 24MHz
Oscillator
Micrel
SST
Classic
Microchip
Atmel
MIC94300YMT
Ripple Blocker
3.3V
Power
12 ©March 2017
Summary of Accretion from Atmel Transaction
Atmel Accretion Forecast FY17 FY18 FY19
Initial accretion forecast
(w/share buyback)
$ 0.33
$ 0.66
$ 0.90
Accretion forecast
(w/o share buyback)
$ 0.25
$ 0.53
$ 0.75
August 2016 accretion forecast $ 0.40 $ 0.53 $ 0.75
November 2016 accretion forecast $ 0.50 $ 0.70 $ 0.90
February 2017 accretion forecast $ 0.64 $ 0.90 $ 1.00
February 2017 accretion forecast without share buy-back is better
than the initial accretion forecast from April 2016 with share buy-back.
13 ©March 2017
Business Update Microchip exceeded the high end of its non GAAP net sales and
EPS guidance for FQ3 2017.
Net sales for Q4FY17 expected to be down 0.5% to up 2.5%
sequentially.
Non GAAP EPS for Q4FY17 expected to be between $1.02 to $1.10
per share.
Atmel non-GAAP EPS accretion targets have been increased for
the current fiscal year and the next two fiscal years.
Net Debt/EBITDA leverage reduction ahead of schedule and
targeted to be under 2.1 by March 2017
Long-term non-GAAP financial model is now 60% gross margin,
24% operating expenses and 36% operating profit.