Presentation of 2021 Investor and Analyst Day.110821.pdf

2021 Investor & Analyst Day

Empowering Innovation & Delivering Stakeholder Results November 8th, 2021

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 or future events, including our vision, strategy, growth, market trends, expected revenue from industry megatrends, market size, share dilution from convertible debt repurchases, Microchip 3.0 and the financials targets related thereto, our long-term financial model, our capital allocation strategy, estimated dividend payments, growth strategy, capacity growth plans and targets and inventory targets. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: any continued economic uncertainty due to the impact of the COVID-19 pandemic, actions taken or which may be taken by the Biden administration or the U.S. Congress, monetary policy, political, geopolitical, trade or other issues in the U.S. or internationally, any further unexpected fluctuations or weakness in the U.S. and global economies (including China), changes in demand or market acceptance of our products and the products of our customers and our ability to meet any continued increases in market demand; the impact of current and future changes in U.S. corporate tax laws (including the Tax Cuts and Jobs Act of 2017) including the impact of such tax laws on the payment of dividends, foreign currency effects on our business; the mix of inventory we hold and our ability to satisfy short-term orders from our inventory; changes in utilization of our manufacturing capacity and our ability to effectively manage and expand our production levels to meet any continued increases in market demand; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; changes or fluctuations in customer order patterns and seasonality; our ability to obtain a sufficient supply of wafers from third party wafer foundries to meet our increasing needs and the cost of such wafers, our ability to obtain additional capacity from our suppliers to increase production to meet any continued increases in market demand; our ability to realize the expected benefits of our preferred supply program; our ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of our acquisitions; the impact of any future significant acquisitions that we may make; the costs and outcome of any current or future litigation or other matters involving our Microsemi acquisition, the Microsemi business, intellectual property, customers, or other issues; the costs and outcome of any current or future tax audit or investigation regarding our business or the business of Microsemi, our actual average stock price in future quarters and the impact such price will have on our share count; fluctuations in our stock price and trading volume which could impact the number of shares we acquire under our share repurchase program and the timing of such repurchases; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns (including the COVID-19 pandemic) or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip's website (www.microchip.com) or the SEC's website (www.sec.gov) or from commercial document retrieval services. Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after the date of this presentation, or to reflect the occurrence of unanticipated events.

Use of Non-GAAPFinancial Measures: In this presentation, we have included certain non-GAAP financial information, including adjusted EBITDA, non-GAAP gross profit, non-GAAP operating profit and free cash flow. Our non-GAAP results exclude, where applicable, the effect of share-based compensation, COVID-19shelter-in-place restrictions on manufacturing activities, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, excess capacity charges to normalize acquired inventory levels, severance and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to our Microsemi acquisition), professional services associated with certain legal matters, IT security remediation costs, non-cash interest expense on our convertible debentures, losses on the settlement of debt, and gains and losses related to available-for-sale investments. Our determination of our non-GAAP measures might not be the same as similarly titled measures used by other companies, and it should not be construed as a substitute for amounts determined in accordance with GAAP. There are limitations associated with using non-GAAP measures, including that they exclude financial information that some may consider important in evaluating our performance. Management compensates for this by presenting information on both a GAAP and non-GAAP basis for investors and providing reconciliations of the GAAP and non-GAAP results. Non-GAAP measures should not be considered in isolation or as an alternative to net income, cash from operations or other measures of profitability, liquidity or performance under GAAP. These non-GAAP and GAAP results and reconciliations are included in the appendix to this presentation. Certain supplemental information and reconciliations are available on our website at www.microchip.com/investorsunder the heading "Supplemental Financial Information".

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Agenda

• Overview and Value Proposition
• Capital Return Strategy
• Business Growth Strategy
• Enabling Our Business Growth
• Summary
• Q&A

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Overview and Value Proposition

Eric Bjornholt, SVP & CFO Ganesh Moorthy, President & CEO

Corporate Overview

Leading Total Systems Solutions Provider:

• High-performancestandard and specialized Microcontroller, Digital Signal Controller and Microprocessor solutions
• Mixed-Signal,Analog, Interface and Security solutions

• Clock and Timing solutions
• Wireless and Wired Connectivity solutions
• FPGA solutions
• Non-volatileEEPROM and Flash Memory solutions
• Flash IP solutions

$6.4 Billion Revenue	Headquartered near	~20,000	120,000+
Run-rate for FY2022*	Phoenix in Chandler, AZ	Employees	Customers

5 * Run rate for FY22 represents actual results for the first two quarters * 2