#1Investor Presentation Fiscal Third Quarter 2024 MICROCHIP A Leading Provider of Smart, Connected and Secure Embedded Solutions#2SAFE 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, industry trends, end markets, our financial model, our business model, Microchip 3.0, market megatrends, performance in industry cycles, through margins, strong cash generation, capital return strategy including debt paydown, dividend growth, and buybacks and our winning formula. These 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 uncertainty, fluctuations or weakness in the U.S. and world economies (including China) due to changes in interest rates, high inflation or the impact of the COVID-19 pandemic (including lock-downs in China), 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 (including the military conflicts in Ukraine-Russia and the Middle East), further changes in demand or market acceptance of our products and the products of our customers and our ability to meet any increases in market demand or customer requests to reschedule or cancel orders; the mix of inventory we hold, our ability to satisfy any short-term orders from our inventory and our ability to effectively manage our inventory levels; the impact that the CHIPS Act will have on increasing manufacturing capacity in our industry by providing incentives for us, our competitors and foundries to build new wafer manufacturing facilities or expand existing facilities; the amount and timing of any incentives we may receive under the CHIPS Act, the impact of current and future changes in U.S. corporate tax laws (including the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017), foreign currency effects on our business; changes in utilization of our manufacturing capacity and our ability to effectively manage and expand our production levels to meet any increases in market demand or any customer requests to reschedule or cancel orders; the impact of inflation on our business; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; our ability to realize the expected benefits of our long-term supply assurance program; changes or fluctuations in customer order patterns and seasonality; our ability to effectively manage our supply of wafers from third party wafer foundries to meet any decreases or increases in our needs and the cost of such wafers, our ability to obtain additional capacity from our suppliers to increase production to meet any future increases in market demand; 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 or strategic transactions we may make; the costs and outcome of any current or future litigation or other matters involving our acquisitions (including the acquired business, intellectual property, customers, or other issues); the costs and outcome of any current or future tax audit or investigation regarding our business or our acquired businesses; 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. You 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-GAAP Financial Measures: In this presentation, we have included certain non-GAAP financial information, including for example, adjusted EBITDA, non-GAAP gross profit margin and operating profit margin and adjusted free cash flow. Our non-GAAP results exclude the effect, where applicable, of share-based compensation, COVID-19 shelter in place restrictions on manufacturing activities, manufacturing excursion, expenses related to our acquisition activities (including intangible asset amortization, 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 equity investments. For the third quarters of fiscal 2024 and fiscal 2023, our non-GAAP income tax expense is presented based on projected cash taxes for the applicable fiscal year, excluding transition tax payments under the Tax Cuts and Jobs Act. 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. Certain supplemental information and reconciliations are available on our website at www.microchip.com/investors under the heading "Supplemental Financial Information". MICROCHIP#3Corporate Overview Leading Total Systems Solutions Provider High-performance standard and specialized Mixed-Signal Microcontroller, Digital Signal Controller and Microprocessor solutions Mixed-Signal, Analog, Interface and Security solutions Clock and Timing solutions SMART | CONNECTED | SECURE Wireless and Wired Connectivity solutions FPGA solutions • Non-volatile EEPROM and Flash Memory solutions Flash IP solutions $7.6 Billion in FY24 net sales Elite long-term non-GAAP profitability & returns Diversified and resilient business model Durable end markets Solid track-record of shareholder value creation 3 * FY24 represents actual results for the first three quarters plus the mid-point of Q4 guidance MICROCHIP#4Revenue By End Market FY22 Durable End Markets 11% 17% 14% 18% Industrial ■Communication *Based on Microchip estimates 40% 12% 11% 17% FY23 19% Data Center & Computing Automotive ■Consumer Appliance 41% MICROCHIP#5$ Million Net Sales Growth 10,000 9,000 133 consecutive quarters of Non-GAAP profitability! 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 15.5% CAGR 0 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FYOO FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 MMCU Analog Other 5 * FY24 represents actual results for the first three quarters plus the mid-point of Q4 guidance MICROCHIP#6Third Quarter FY2024 Revenue Mix Net Sales by Product Line Net Sales by Geography 9 Other 19% Europe 23% Mixed Americas Analog 25% Signal MCUs 56% 29% Asia 48% Net Sales by Channel Direct 56% Distribution 44% Organic growth efforts focused on TSS and Megatrends Synergistic product portfolio empowers disruptive growth trends ➤ Diversified product portfolio with long process technology and life cycles Customer driven obsolescence policy create high-quality revenue streams MICROCHIP#7Fiscal 3rd Quarter 2024 Results (non-GAAP) Revenue of $1.77 billion; declined 21.7% QoQ and 18.6% YoY Gross margin of 63.8%; TTM gross margin of 67.3% ➤ Operating margin of 41.2%; TTM operating margin of 46.6% Earnings per share of $1.08; TTM EPS of $5.99 Reduced total debt by $392 million - – Cumulatively paid down ~$7.1 billion of debt over the last 22 quarters Adj. TTM EBITDA of $4.26 billion representing 49.9% of TTM revenue Achieved net debt to adj. EBITDA ratio of 1.27 Total cash return of $352 million - Share repurchases of $114.6 million and Dividends of $237.4 million Announced record dividend of 45.0 cents per share for Q4FY24 and planned share repurchases of $386.8 million 7 **Adjusted EBITDA is as defined in the Company's Amended and Restated Credit Agreement dated as of December 16, 2021. MICROCHIP#8Fiscal 4th Quarter 2024 Guidance (non-GAAP)* Q3 FY24 Actual Q4 FY24 Guide @ mid-point Long Term Model $1,765.7 $1,325.0 Revenue ($ Million) Gross Margins 63.8% 60.3% 67.5% to 68.5% Operating Expenses 22.5% 28.8% 22.5% to 23.5% Operating Margins 41.2% 31.5% 44% to 46% Earnings per share $1.08 $0.57** *Represents guidance provided on February 01, 2024 **Includes increase in cash tax rate in FY24 8 Additional guidance metrics can be found in the Q3 FY2024 earning release. Click here MICROCHIP#9Semi Industry Sales YoY Growth Through Cycles Semi Industry Sales Y/Y Growth Rates 35% 30% 25% 20% 15% 10% 5% 3.2% 0% -5% -2.8% -10% -15% -9.0% 31.8% 21.6% 13.7% 26.2% Дала 4.0% -2.7% 9.9% 4.8% -2.0% -1.1% -12.0% 6.8% 3.2% -9.4% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -Semi Sales Y/Y % Chg. Semi Sales Y/Y Growth is sourced from SIA 9 CY2023 est. annual global sales is based on World Semiconductor Trade Statistics Organization (WSTS) industry forecast MICROCHIP#1010 Semi Industry Sales Y/Y Growth Rates Strong Cash Generation Through Cycles 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% 12.3% $3,150 $2,650 ADJ. FCF* CAGR since 2007 $2,150 $1,650 $1,150 $650 $150 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adj. MCHP FCF -Semi Sales Y/Y % Chg. - Semi Sales Y/Y Growth is sourced from SIA *Microchip adj. free cash flow (adj. FCF) is based on fiscal year ending March 31. Adj. FCF is defined as cash flow from operations less (capital expenditures + cash collected/paid under long-term supply arrangements). - Run rate for FY24 Adj. FCF represents (actual results for the first three quarters)/3 * 4 MICROCHIP Adj. Microchip Free Cash Flow* ($ in millions)#1111 Semi Industry Sales Y/Y Growth Rates Resilient Profitability Through Cycles 35% 30% 25% MCHP LT Non-GAAP Gross Margin Target* 70% - 68% 67.8% 66% 65.8% 20% 64% 62.0% 62.8% 15% 62% 60.4% 60.9% 60.1% 58.8% 61.1% 61.9% 10% 60% 58.1% 57.4% 5% 57.9% 58.8% 58% 58.2% 57.2% 57.6% 0% -5% -10% -15% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 56% 54% 52% 50% -Semi Sales Y/Y % Chg. MCHP NG Gross Margin *Long-term target range 67.5% to 68.5% - MCHP's non-GAAP gross margin % is based on fiscal year ending March 31. Non-GAAP gross margin for 2023, represents actual results for the first 3 quarters + midpoint of Q4FY24 guidance - Semi sales Y/Y growth is sourced from SIA Microchip NG Gross Margin % MICROCHIP#1212 Semi Industry Sales Y/Y Growth Rates Improving Efficiency Through Cycles 35% 30% 25% 20% 36.1% 15% 10% 5% 0% -5% -10% -15% 50% MCHP LT Non-GAAP Operating Margin Target* 46.9% 45% 43.6% 40% 35.9% 39.6% 38.7% 35% 32.3% 36.2% 34.9% 30.2% 30.3% 28.6% 31.8% 31.0% 37.1% 32.4% 31.6% 30% 25% 20% 15% 10% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -Semi Sales Y/Y % Chg. ―MCHP NG Operating Margin *Long-term target range 44% to 46% - MCHP's non-GAAP operating margin % is based on fiscal year ending March 31. Non-GAAP operating margin for 2023, represents actual results for the first 3 quarters + midpoint of Q4FY24 guidance - Semi sales Y/Y growth is sourced from SIA MICROCHIP Microchip NG Operating Margin %#1313 Microchip Organic Growth Strategy Focus on Total System Solutions (TSS) - - Diversified portfolio of Smart, Connected and Secure Solutions Software, firmware, reference designs to speed customer's time to market Provide solutions in Megatrend growth areas - Drives growth ≥ 2X corporate growth Empowering innovation which enhances the human experience by delivering smart, connected and secure solutions MICROCHIP#14Empowering Innovation In Diverse, Durable Markets Consumer Sustainability Automotive Defense 14 Industrial 53 01 03 030 Space Medical Data Center Communication Infrastructure Aviation MICROCHIP#1515 Providing Total System Solutions Portfolio of Hardware, Software and Services Power Management RFICS MMICS Sensors Digital Potentiometer Precision Voltage Reference Encryption & Security DC-DC Converters Supervisors & Ref. LDOS, Battery Mgt. Discretes & Modules High Voltage I/Os Amplifiers Filters A/D Voice & Audio Processing Touch Sensing • Proximity/3D • Buttons/Slider • Touch Screen Timing ⚫ Oscillators • Clock Generators ⚫Clock Buffers Network Sync Memory ⚫EEPROM • Serial Flash Motor Drivers Power Drivers Microcontrollers Microprocessors • Serial SRAM FPGA/ SoCs D/A LED Drivers Storage PCleⓇ Switches • Adapters • Controllers Optical Networking USB • Smart Hubs • Switches • Transceivers • Bridges Auto/Industrial Communication • MOSTⓇ • RS232/485 •CAN/LIN Wireless • Wi-Fi® • Bluetooth® • LoRa® Ethernet • Switches •Controllers ⚫ EtherCAT® ⚫ PHYS • ZigBee®/MiWi™ • PoE Smoke Detector & Piezoelectric Horn Drivers MICROCHIP#1616 Market Megatrends Industrial Computing 5G 5G AI/ML loT IoT/Edge Computing AI/ML Data Centers Automotive C Communications Consumer 20 * E-Mobility SMART | CONNECTED | SECURE Sustainability AI/ML (C ADAS/Autonomous Driving MICROCHIP#17Consistent, Disciplined and Balanced Capital Return Strategy Debt Paydown - Actively reducing debt post 2018 M&A activity - Current leverage ratio of 1.27x Adjusted Free Cash Flow (FCF)* Generation 17 Since FY2019 ~$12.1 Billion $7.1 Billion Dividends Paid ~$3.0 Billion Shares Repurchased ~$2.0 Billion - - - - 86 consecutive quarters of dividends paid Growing meaningfully every quarter Active formulaic $4B share buyback program Total expected cash return in FY2024 of $1.9 billion, representing 15.4% year-over- year growth ACCELERATING CASH RETURNS; TARGETING 100% OF FREE CASH FLOW IN ~4 QUARTERS *Adj. FCF is defined as cash flow from operations less (capital expenditures + cash collected/paid under long-term supply arrangements) MICROCHIP#1818 Environmental Stewardship Waste Reduction Water Management and Reuse Energy Consumption GHG Emissions NET ZERO BY 2040 Click Here for Microchip's 2022 Sustainability Report MICROCHIP#19SMART CONNECTED SECURE Follow us @microchiptechnology in X Ο MICROCHIP A Leading Provider of Smart, Connected and Secure Embedded Control Solutions.