MFS Investment Management Microchip Visit May 9, 2011

Nasdaq OMX 30th International Investor Program

Nawaz Sharif, Vice President, European Finance and IR

©December 2013 Today’s Agenda

 Microchip’s business characteristics 1. Consistent growth 2. Perennial market share gains 3. 32-bit MCU positioned for growth 4. High margin business model 5. Shareholder friendly with consistently increasing dividends and free cash flow  Current business conditions  Opportunity for significant accretion as margins expand towards updated business model

©©December© May December 2013 2013 2013 2 Microchip Characteristics

1. Consistent growth 2. Perennial market share gains 3. 32-bit MCU positioned for growth 4. High margin business model 5. Shareholder friendly with consistently increasing dividends and free cash flow

©©December© May December 2013 2013 2013 3 Annual Net Sales Growth

2000 1900 1800 • 92 consecutive quarters of profitability 1700 1600 1500 1400

1300 1200 1100 1000

$ Million $ 900 800 700 600 500 400 300 200 100 0 FY 93 FY 94 FY 95 FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 RR ©©December© May December 2013 2013 2013 4 MCU Sales Growth

1300

1200

1100

1000

900

800

700

$ Million $ 600

500

400

300

200

100

0 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 ©©December© May December 2013 2013 2013 5 RR Analog Yearly Revenue (k$)

$400,000

$350,000

$300,000

$250,000

$200,000

$150,000

$100,000 FQ2 FQ2 $50,000

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

©©December© May December 2013 2013 2013 6 Microchip Characteristics

©©December© May December 2013 2013 2013 7 Total MCU (8/16/32) Market Share %

8 % 6

Q312 Q112 Q113

CY94 CY96 CY98 CY00 CY02 CY04 CY06 CY08 CY10

©December© December 2013 2013 8 PIC32 State of the Union

©December 2013 Growing Product Portfolio

250 Tipping Point 190

200

150 100

100

66 76

50 46 34 18

0 CY081 CY092 CY103 CY114 CY125 CY136 CY147

©December© December 2013 2013 10 PIC32 family Highest 32-bit MCU Performance

“[The PIC32MZ] is also faster than any MIPS32ARM-®based M4K MCU® chip running at the same 3.28 frequency.. You see, there’s more than one embedded-RISC architecture out there. It’s Renesas – RX62Nalso got better code density....Take that, 3.12 Cambridge University!” ST – STM32 Cortex™ -M4 2.98 EE Journal, Editor Jim Turley

Freescale – Kinetis Cortex™-M4 2.97

TI – Stellaris Cortex™“The PIC32MZ-M3 crunches1.92 at a whopping 330 DMIPS at 200MHz, easily beating any popular competitor NXP – LPC17xx in Cortex™ its price class-M3 .” 1.76

Microcontroller.com,CoreMark™ is an independent/public Editor benchmark Bill Giovino for core performance CoreMark™ is a trademark of The Embedded Microprocessor Benchmark Consortium www.coremark.org (EMBC®) PIC32 estimate configured for zero wait state Flash performance MIPS32 ISA ©December© December 2013 2013 11 PIC32 Code Density Best in Class

140% Lower is better 120% 17% better code density 100%

80%

60%

40%

20%

0% PIC32 Compiler IAR CORTEX-M3 IAR CORTEX-M4 C32 v2.01 (Thumb-2) (Thumb-2) (MIPS32) 1.25 DMIPS/MHz 1.25 DMIPS/MHz 1.65 DMIPS/MHz > 30% higher performance & 17% better code density! ©December 2013 12 Framework that Simplifies Software Development

 Comprehensive Development Environment  Direct Resale by Microchip  First Line of Support“I think the story with MPLAB®  ComprehensiveHarmony Web is, Portal ‘What do you do after you integrate everything into the MCU? You  Saves development time: integrate the ecosystem.” ~20%-40%

UBM Tech - Electronics, VP and Brand Director Patrick Mannion

©December© December 2013 2013 13 32-bit Revenue

FQ2 FQ2 FQ2 YTD FQ2 YTD YTD YTD FQ3YTD FQ3YTD FQ3 FQ3

FY09 FY10 FY11 FY12 FY13 FY14 ©December© December 2013 2013 14 PIC32 Gaining Market Recognition…

PIC32 is #1 in EE Times Ranking Production Customer Ramp Growing Microchip PIC 32-bit (MIPS) 34% STMicro STM32 (ARM) 31% TI Stellaris (ARM) 28% Atmel (AVR32) 23% 1400 NXP LPC (ARM) 21% Atmel AT91xx (ARM) 20% 1200 FreescaleKinetis (Cortex-M4) 16% TI OMAP 16% Arduino 12% 1000 Freescale 68K, ColdFire 12% Freescale i.MX (ARM) 11% 800 Cypress PSOC 5 (ARM) 10% TI C2000 MCUs 10% 600 TI Sitara (ARM) 10% Altera Nios II (soft core) 8% 400 RenesasSuperH, H8SX, M32C, M32R 8% Xilinx MicroBlaze (soft-core) 8% 200 Altera SoC-FPGA (ARM) 7% Intel Atom, Pentium, Celeron, Core 2, Core iX 7% TI Hercules (ARM) 7% 0 Actel/Microsemi ProASIC 3 (ARM) 6% Freescale PowerPC 55xx 6% Energy Micro EFM32 5% Freescale PowerPC 5xx, 6xx 5%

©December© December 2013 2013 15 PIC32 Has a Broad Range of Marquee Customer Adoption

©December© December 2013 2013 1016 PIC32 MCU Platform is Designed into a Broad Range of Applications

Consumer Industrial Security Automotive Security Docking Station Audio Head Engine GPS Tracking Phones Control System Panel

White Goods HVAC Air Graphics Lighting GPS Control Handler Control Photo ID Dashboard Management

Power Bar code Diagnostics Remote Meter Scanner Server Diagnostic Auto Robotic Vacuum Control Diagnostics Cleaner Monitoring

MCU32©December© December Microchip 2013 2013 Confidential 4 17 The State of the Union of the PIC32 Product Line has never been stronger!!!

65 Higher Utilization Richer Product Mix Record  61.5% Long-term 60 GM goal

SST 55 Acquisition

50 (%) Business Fab 4 Production start 45 Worldwide Downturn Financial Crisis 40

Q1FY02 Q2FY02 Q3FY02 Q4FY02 Q1FY03 Q2FY03 Q3FY03 Q4FY03 Q1FY04 Q2FY04 Q3FY04 Q4FY04 Q1FY05 Q2FY05 Q2FY07 Q3FY07 Q4FY07 Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q4FY13 Q1FY14 Q2FY14 Q3FY05 Q4FY05 Q1FY06 Q2FY06 Q3FY06 Q4FY06 Q1FY07 Q2FY12 Q3FY12 Q4FY12 Q1FY12 Q2FY13 Q3FY13

*Excludes share-based compensation and acquisition-related expenses. A reconciliation of our GAAP to non-GAAAP results is available at www.microchip.com. ©©December© May December 2013 2013 2013 20 Microchip Characteristics

$80,000 $0.40

$70,000 $0.35

$60,000 $0.30

$50,000 $0.25

$40,000 $0.20

$30,000 $0.15

$20,000 $0.10

$10,000 $0.05

$0 $0.00

**Q4FY

Q1FY07 Q2FY07 Q3FY07 Q4FY07 Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 **Q4FY11 dividend Total Dividend Dividend per Share accelerated into Q3FY11 ©December© December 2013 2012 22 Topics to Cover

 The Characteristics of Microchip’s Business 1. Consistent growth 2. Perennial market share gains 3. 32-bit MCU positioned for growth 4. High margin business model 5. Shareholder friendly with consistently increasing dividends and free cash flow  Current business conditions  Opportunity for significant accretion as margins expand towards updated business model

 Just yesterday, we narrowed the guidance for net sales and EPS, but kept the mid point of the guidance the same.  December quarter sales are expected to be “seasonally normal”  Bookings activity is steady with backlog filling in for the March quarter  Microchip expects growth in net sales in the March 2014 quarter

Actual Guidance Q3FY14 Actual Guidance Long-Term Sept. 30, 2013 Dec. 31, 2013 Model

Net Sales ($MM Non-GAAP) $492.7 $470.5 – 485.3 Gross Margin* 59.0% 58.8% - 59.2% ~ 61.5% ± .5% Operating Expenses* (% of Sales) 27.2% 27.0% - 27.5% ~ 26.5% ± .5% Operating Profit 31.8% 31.3% - 32.2% ~ 35.0% ± 1.0% EPS (Non-GAAP**) $0.63 $0.58 – 0.62 EPS (GAAP) $0.46 $0.41 – 0.45

* Excludes share-based compensation, acquisition related charges, non-recurring items and adoption of ASC Subtopic 470-20. A reconciliation of our GAAP to non-GAAAP results is available at www.microchip.com.

 Microchip is a consistent revenue grower  Microchip is a perennial market share gainer  Microchip 32-bit MCU strategy is showing impressive results  Microchip has consistently maintained a high margin business model  Microchip is shareholder friendly with consistently increasing dividends and free cash flow  The December quarter is expected to be “seasonally normal”  Investors have an opportunity for significant EPS accretion as margins expand towards the updated long term business model

Thank You!