Microchip Technology Incorporated · NASDAQ:MCHP
Microchip Technology — Merger or Acquisition (March 2018)
23 slides from Microchip Technology's merger presentation, Mar 1, 2018
Slide 1: Schedule 14A Soliciting Material - Microsemi Corporation
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant ☐ Filed by a
Slide 2: Schedule 14A filing fee information
(3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: ☐ Fee paid previously with pr
Slide 3: Analyst and Investor Day notice on Microsemi acquisition
On March 1, 2018, Microchip Technology Incorporated will hold an Analyst and Investor Day Conference at which Microchip’s pending acquisition of Microsemi Corporation and other matters will be discussed. A copy of the presentation slides from the conference that relate to the pending acquisition of
Slide 4: Microchip: Leading Provider of Microcontroller, Mixed-Signal, Analog & Flash-IP Solutions
MICROCHIP A Leading Provider of Microcontroller, Mixed-Signal, Analog & Flash-IP Solutions Steve Sanghi Chief Executive Officer 2018
Slide 5: Forward-looking statements and additional information
atements litigation ecto rs an dregarding orexother ecutive matters the officers future involving ofinancial f M icroch intellectu performance ip is also al property, included o f thecustomers, co in mpany Microchip's oorr future other proxy issues; events, statement disruptions inclu ding for its o
Slide 6: Microsemi overview
A, Wireles s, Timing , Analog and Mixed-Signal p ro ducts Leaders hip in Defense, Aerospace, Data Center an d Co mmunication markets – ~ 80% of revenue Markets where Microchip h as less penetratio n FY2 017 (9/3 0/201 7) revenue of ~$1.8B 64% no n-GAAP g ros s margin ; 31.9 % non-GAAP operating marg
Slide 7: Transaction rationale and benefits
munications markets Expands o ur Ethernet portfolio to serve Ind ustrial IoT , Enterprise and Carrier markets Ad ds specialized Microcontrollers to serv e the Enterprise Storage and Optical Networking markets Extends Microchip’s p ortfolio of Timing, Lo w Po wer Wireless, An alog Power and M ixed Si
Slide 8: Expanded portfolio and addressable market
d p ortfolio Specialized so lutions >$32 bn Source: Gartner/Dataquest reports and Microchip and Micros emi management es timates
Slide 9: End market diversification of combined company
e 2% Indu strial 1 1% Computing 20 % Commun ications 31% Other 9% Aerospace & Defens e 2 9% Microchip Microsemi Industrial 27% Compu ting 12% Communicatio ns 13% Other 3 % Aeros pace & Defense 11% Comb ined Auto motive 17% Consu mer 16% $3.9 bn $1.8 bn $5.7 bn Note: Reflects non -GAAP financials and
Slide 10: Combined capabilities by end market
iscrete Power mg mt. COMBINED CAPABILITIES Industrial 27% Automo tive 17 % Cons umer 16% Communication 13% Computing 12% A&D 11% En terp rise storage FPGA
Slide 11: Combined financial profile and long term model
mber 20 17 quarter. Revenue and op eratin g income d ollars are b as ed on December 20 17 quarter res ults which were annu alized by mu ltiplying the December quarter nu mbers by fou r. Microchip M icrosemi Microchip + M icros emi Lo ng Term M odel Revenue ($M ) $ 3,977 $ 1,875 $5,852 Gro ss Margin
Slide 12: EPS accretion and synergy targets
rm: Targetin g 18% growth in non-GAAP EPS from FY18 to FY 19 with accretion from Microsemi (as sumes June 2018 close) Microsemi ad ds ~75 cen ts of no n-GAAP EPS accretion annu alized ru n rate in the first year after close Long term: 3rd year after close (FY2021), we expect: $3 00M in syn ergy from
Slide 13: Transaction financing and timing
1/2 017 $6 8.78 per share in cash to Microsemi sto ckh olders Transaction is being fu nded throu gh a co mbination of: $1.6 B of cash from combined company balance sheets $0.6 B of cash brid ge loan that will build on the combined companies balance sheet fro m 12 /31/17 throu gh the clos e $ 3B from
Slide 14: Another compelling transaction
ns e, Aerosp ace, Data Center and Communicatio n markets complements Microchip’s strength in Indus trial, Automotive and Consumer mark ets Micros emi adds further op eratio nal and custo mer scale in a co nsolidating indu stry The transactio n creates significant stockhold er valu e from strong non
Slide 15: Thank You
2018 MICROCHIP Thank You! o. SMART | CONNECTED | SECURE
Slide 16: Microsemi solutions by end market
Ethernet Solutions Discretes & Power Modules Po wer M anagement Security Techno logy Sensor Interfaces Software & IPs Power over Ethernet (PoE) RFIC/MMIC Audio Processin g Timing & Sync. Storag e Contro llers & Switch es Precision Clock s Voice Line Circuits Leading Pro vider of Semiconducto r Solut
Slide 17: Microsemi Innovation
MICROCHIP Microsemi Innovation <> Microsemi Power Matters.” 2018
Slide 18: Strengthens our industrial market offering
g Automation Mo tor Co ntrol IIoT Au tomo tive Ethernet in th e car Medical Key Indus trial Applications PoE Buildin g Auto matio n IP security cameras Stren gthens Ou r In dustrial Mark et Offering
Slide 19: Access infrastructure from core to last mile
A, Clocks, PHY, Carrier Ethernet Access Infrastructu re Carrier Ethernet, PHY, FPGA, RPF, 1 588, M idsp an, Clo ck s, PON Broadband/ Resid ential Voice, TW, WiFi Wireless / Microwave Backhaul Sync,15 88, FPGA, Ethernet, PHY Enterprise Eth ernet, PoE, Clocks , FPGA Datacenter Interconnect (DCI) OTN,
Slide 20: Industry's only complete 1588 system solution
and ICs Diod es Rectifiers & Bridg es Optical Drivers (Insid e Fib er M odules) Software M ed ia PoE Drivers Signal Interface Signal Integrity PHY Switching / Ro utin g Ethernet Switch SoC FPGAs Clock M gmt & Network Sync Discretes & Mod ules Timing Layer 1 Phys ical Interface Layer 2 Switching and
Slide 21: Leading data center applications use Microsemi solutions
Storag e Rack Scale Architecture E thern et Switching Data Protection & Security Network Timing Data Center Power Data Cen ter Interconn ect Serv ers Custom ASIC Leadin g Data Center Applications u se Microsemi So lutions
Slide 22: Storage leadership and technology innovation
#1 in Dens ity / Port Co unt # 1 in Flash Contro llers Market Ado ptio n & Success Techn ology & Inno vation 1st Controller Based Encryption 1s t 24 Port SAS Con troller 1st PCIe Gen 3 RAID Controller 1st NVM e Flash Controller 1st PCIe Sto rage Switch Adaptec™ Hig hest SAS/SATA p ort density and pe
Slide 23: Microsemi enterprise reference design
AN Microsemi Enterprise -ROCHIP Reference Design ‘ diagram of VSC7448/VSC7449 ged 48+4portswitch [7448 supports up to BOG configurations © g 40+ 1Ge4s10G of 4841G03e10G ‘ 7449 supports up to 880 Configurators. eG 4821604. 100 Optional external CPU system + Rome Memon + vVscss22 bloek 12-PoRT PHY vsc
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