425 1 dp56103_425.htm FORM 425
Filed by Micrel, Incorporated
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company:
Micrel, Incorporated
(Commission File No. 001-34020)
 



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   Presented by: Steve Sanghi President and CEO



 
 
 

 
 
 



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[] Cautionary Statement:
 Statements about the expected timing, financial impact and effects of the
proposed transaction, and other statements in this presentation that are not
historical facts, are forward-looking  statements 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 actual
results to differ materially from such forward looking statements. Such risks
and uncertainties include the actual timing of the closing of the acquisition,
the satisfaction of the conditions to closing in the acquisition agreement, any
termination of the acquisition agreement, the effect of the acquisition on
Microchip's and Micrel's existing relationships with customers, employees and
vendors and on Microchip's and Micrel's respective operating results and
businesses; general economic, industry or political conditions in the U. S.  or
internationally; and the risks described from time to time in SEC reports
including filings on Forms 10-K,   10-Q  and 8-K.   You can obtain copies of
applicable Forms 10-K,   10-Q  and 8-  K and other relevant documents for free
at Microchip's website
(www.   microchip. com),  at Micrel's website (www.   Micrel. com)  or the
SEC's website (www.   sec. gov)  or from commercial document retrieval
services. You are cautioned not to place undue reliance on these
forward-looking  statements, which speak only as of the date such statements
are made. We do not undertake any obligation to publicly update any
forward-looking  statements to reflect events, circumstances or new information
after the date hereof.
[] Additional Information and Where to Find It
 Microchip will file a Registration Statement on Form S-4 that will include a
proxy statement of Micrel in connection with the acquisition transaction.
Investors and security holders are urged to read such document when it becomes
available because it will contain important information about the transaction.
Investors and security holders may obtain free copies of such document (when it
becomes available) and other documents filed with the SEC at the SEC's web site
at www. sec. gov. Microchip, Micrel and their directors and executive officers
may be deemed to be participants in the solicitation of proxies from the
shareholders of Micrel in connection with the acquisition transaction.
Information regarding the special interests of these directors and executive
officers in the transaction will be included in the proxy statement/prospectus
described above. Additional information regarding the directors and executive
officers of Microchip is also included in Microchip's proxy statement for its
2014 Annual Meeting of Stockholders, which was filed with the SEC on July 18,
2014. Additional information regarding the directors and executive officers of
Micrel is also included in Micrel's Annual Report on Form 10-K/A,   which was
filed with the SEC on April 24, 2015. These documents are available free of
charge at the SEC's web site at www. sec. gov and as described above.



 
 
 

 
 
 



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Welcome to Microchip!!!



 
 
 

 
 
 



Corporate Overview

[] Leading provider of:

[] High-performance,  field-programmable   RISC Microcontrollers and Digital
Signal Controllers

[] Mixed-Signal,  Analog and Interface products

[] Wireless and RF products

[] Non-volatile  EEPROM and Flash Memory products

[] Flash IP solutions

[] ~ $2.2   Billion revenue run rate [] ~ 9,500 employees worldwide

[] Headquartered near Phoenix in Chandler, AZ




 
 
 

 
 
 



Annual Net Sales Growth

[] 98 consecutive quarters of profitability

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Worldwide Technical Support Centers

Atlanta Austin Boston Chicago Cleveland Dallas Detroit Kokomo Los Angeles New
York Phoenix San Jose Toronto

Copenhagen Drunen Dublin Haan Karlsruhe London Madrid Milan Munich Padova Paris
Pforzheim Tel Aviv Wels

Bangalore Bangkok Beijing Chengdu Chongqing Hangzhou Hong Kong Hsinchu Kuala
Lumpur New Delhi Penang Pune

Kaohsiung Manila Nanjing Osaka Qingdao Seoul Daegu Shanghai Shenyang Shenzhen
Singapore Taipei Tokyo Wuhan Xiamen Xian Zhuhai

Sao Paulo

Johannesburg

Sydney Melbourne



 
 
 

 
 
 



Global Development Centers

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Worldwide Manufacturing

Oregon, USA Fab 4 Arizona, USA
Corporate Headquarters and Fab 2

Bangkok, Thailand Test and Assembly



 
 
 

 
 
 



Worldwide 8-Bit Microcontroller Market Share (Dollars)


    1991        1996       1998       2001       2005       2006-9    2010                          2014
No. Rank        Rank       Rank       Rank       Rank       Rank      Rank                          Rank
--- ----------- ---------- ---------- ---------- ---------- --------- ----------------------------- ---------
  1 Motorola    Motorola   Motorola   Motorola   Motorola   Microchip Renesas                       Microchip
  2 Intel       NEC        NEC        Hitachi    Renesas    NEC       Microchip                     Renesas
  3 Philips     Philips    ST-Micro   NEC        Microchip  ST-Micro  Atmel                         NXP
  4 Mitsubishi  Hitachi    Philips    Microchip  NEC        Freescale ST-Micro                      Atmel
  5 NEC         Mitsubishi Hitachi    ST-Micro   ST-Micro   Atmel     Samsung                       ST-Micro
  6 Hitachi     Toshiba    Mitsubishi Philips    Atmel      Renesas   Freescale                     Freescale
  7 Toshiba     Matsushita Microchip  Toshiba    Toshiba    NXP       NXP                           Cypress
  8 Siemens     SGS-Thomson Toshiba   Atmel      Philips    Cypress   Cypress                       Datang
  9 TI          Intel      Siemens    Matsushita Fujitsu    Sony      Panasonic                     Si Labs
10  Matsushita  Microchip  TI         Sanyo      Infineon   Fujitsu   Fujitsu                       Samsung
11  National    Siemens    Fujitsu    Samsung    Sanyo      Panasonic Datang                        CEC Huada
12  SGS-Thomson Fujitsu    Sanyo      Mitsubishi Samsung    Toshiba   NEC (1Q)                      Holtek
13  Ricoh       TI         Matsushita Infineon   Matsushita Samsung   Sony                          Spansion
14  MHS         Sony       Atmel      Sony       Sony       Datang    Toshiba                       Tongfang
15  IIT         Zilog      Zilog      TI         Sunplus    Si Labs   Si Labs                       SHIC
16  Sharp       Sharp      Sharp      Fujitsu    Micronas   Holtek    JSC                           Panasonic
17  Fujitsu     Temic      Sony       Sunplus    Novatek    Infineon  Holtek                        Sony
18  Oki         Sanyo      Intel      Zilog      Intel      Elan      Infineon                      SH Fudan
19  Zilog       National   National   Novatek    Holtek     Winbond   Sonix                         Infineon
20  Sony        Oki        LG Semi    Micronas   Winbond    Denso     Elan                          Ixys
--- -----------
23  Microchip              Based on dollar shipment volume 1991-2014, Source: Gartner and Microchip
                                                                                                    ---------



 
 
 

 
 
 



2015 Embedded Market Study*
*Preliminary Results

Which of the following 8-bit chip families would you consider for your next
embedded project?

Those with 100MHz Clock Speed

Microchip PIC

Atmel AVR

STMicro ST6, ST7, ST8

Freescale HC**

Arduino using Atmel AVR

NXP / Philips P80x, P87x, P89x

Renesas H8,

CypressPSoC

SiLabs 80xx

Atmel 80xx

Intel 80xx, '251

TI TMS370, 7000

Xilinx PicoBlaze

Altera soft core

Zilog Z8, Z80, Z180, eZ80

Infineon XC800, C500

Maxim 80xx

Parallax

Digi /Rabbit 2000, 3000

Toshiba

Other (specify)

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CONFIDENTIAL -- NOT FOR DISTRIBUTION OUTSIDE MICROCHIP



 
 
 

 
 
 



Worldwide 16-Bit Microcontroller Market Share (Dollars)

    2004       2006       2008       2009       2010          2011        2012                     2014
No. Rank       Rank       Rank       Rank       Rank          Rank        Rank                     Rank
--- ---------- ---------- ---------- ---------- ------------- ----------- ------------------------ -----------
  1 Renesas    Renesas    Renesas    Renesas    Renesas       Renesas     Renesas                  Renesas
  2 Infineon   Infineon   Infineon   Infineon   Infineon      Infineon    Infineon                 Infineon
  3 Freescale  Freescale  Samsung    TI         TI            TI          TI                       TI
  4 TI         Fujitsu    TI         Samsung    Samsung       Freescale   Freescale                Freescale
  5 NEC        TI         Freescale  Fujitsu    Freescale     Fujitsu     Fujitsu                  Microchip
  6 Matsushita Intel      Fujitsu    Freescale  Fujitsu       Toshiba     Samsung                  Spansion
  7 Toshiba    Toshiba    Toshiba    Toshiba    Toshiba       Samsung     Microchip                Spansion
  8 Fujitsu    NEC        Intel      NEC        Microchip     Microchip   Toshiba                  Toshiba
  9 Intel      Sunplus    NEC        Intel      Intel         Intel       Intel                    INSIDE
10  STMicro    Sony       Sony       Microchip  Sony          Sony        INSIDE                   EM Micro
11  Oki        NXP        Panasonic  Panasonic  JSC Sitronics JSC         Sony                     NXP
12  Sony       Micronas   NXP        Sony       Sunplus I     Winbond     CEC Huada                Sunplus
13  Micronas   Winbond    Winbond    Winbond    Winbond       Ixys        JSC                      Sony
14  Sunplus    Matsushita Microchip  Sunplus I  NXP           Micronas    EM Micro                 Ixys
15  Winbond    Microchip  Micronas   Micronas   Micronas      Seiko Epson SH Fudan                 Maxim
16  Microchip  Samsung    Sunplus I  NXP        Sunplus MM    Shenzhen St Sunplus                  Datang
17  Samsung    Oki        Sunplus MM Sunplus MM Seiko Epson   Sunplus     Datang                   CEC Huada
18  Philips    National   Sharp      Seiko      Panasonic     Rohm        Winbond                  SSM
19  Magnachip  Sharp      Rohm       Sharp      Rohm          Panasonic   Ixys                     Seiko Epson
20  Sharp      STMicro    Seiko      Rohm                                 Seiko Epson              RTI Group
                          Based on dollar shipment volume 2004-2014, Source: Gartner and Microchip



 
 
 

 
 
 



2015 Embedded Market Study*
*Preliminary Results

Which of the following 16-bit chip families would you consider for your next
embedded project?

Those with 100MHz Clock Speed

Microchip PIC24 / dsPIC

TI MSP430

STMicro ST9, ST10

Freescale HC16

Freescale HC12

Renesas RL78

Renesas R8C

Intel 8086, '186, '286

Infineon XE166, XC2000, XC166, C166

AMD 186, '188

Maxim

Zilog Z180, Z380

Other (specify)

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CONFIDENTIAL -- NOT FOR DISTRIBUTION OUTSIDE MICROCHIP



 
 
 

 
 
 




Worldwide 32-bit Microcontroller Market Share (Dollars)

    2010        2011        2012         2013       2014
No. Rank        Rank        Rank         Rank       Rank
--- ----------- ----------- ------------ ---------- -----------------------------------------------
  1 Renesas     Renesas     Renesas      Renesas    Renesas
  2 Freescale   Freescale   Freescale    Freescale  Freescale
  3 TI          TI          ST-Micro     ST-Micro   ST-Micro
  4 ST-Micro    ST-Micro    TI           TI         TI
  5 Denso       NXP         Atmel        Atmel      Atmel
  6 Fujitsu     Denso       Denso        Infineon   NXP
  7 NXP         Atmel       Infineon     Denso      Infineon
  8 Atmel       Fujitsu     NXP          NXP        Denso
  9 Toshiba     Infineon    Toshiba      Melfas     Microchip
10  Infineon    Toshiba     Fujitsu      Toshiba    Toshiba
11  Panasonic   Panasonic   Panasonic    Microchip  Spansion
12  EM Micro    EM Micro    Microchip    CEC-Huada  Cypress
13  Rohm        Rohm        MELFAS       Fujitsu    Samsung
14  JSC         JSC         Samsung      Spansion   Melfas
15  Shenzhen St Microchip   Rohm         Cypress    Winbond
16  Huahong     Shenzhen St Energy Micro Panasonic  Panasonic
17  Seiko Epson Huahong     CEC Huada    SH Huahong Nationz Tech
18  Winbond     Winbond     Nationz      SH Fudan   CEC Huada
19  Microchip   Seiko Epson SH Fudan     Winbond    Energy Micro
20  Samsung     Samsung     Cypress      Datang     Rohm
                           Based on dollar shipment volume 2010-2014, Source: Gartner and Microchip



 
 
 

 
 
 



2015 Embedded Market Study*
*Preliminary Results

Which of the following 32-bit chip families would you consider for your next
embedded project?

Those with 100MHz Clock Speed

STMicro STM32 (ARM)
Microchip PIC 32-bit (MIPS)
NXP LPC (ARM)
FreescaleKinetis (ARM/Cortex-M4/M0)
Atmel SAMxx (ARM)
Atmel (AVR32)
Atmel AT91xx/ATSAMxx (ARM)
Arduino
Freescale i.MX (ARM)
TI Sitara (ARM)
TI TM4Cx (ARM)
Cypress PSOC 5 (ARM)
TI Tiva (ARM)
Xilinx Zynq (with dual ARM Cortex-A9)
TI C2000 MCUs
Renesas RX
Energy Micro EFM32
Atmel AT91xx
TI OMAP
Altera Nios II (soft core)
Xilinx MicroBlaze (soft-core)
Freescale 68K, ColdFire
SiLABS Precision32 (ARM)
TI Hercules (ARM)
Altera SoC-FPGA (with dual ARM Cortex-A9)
Intel Atom, Pentium, Celeron, Core 2, Core iX
Renesas RH850
Freescale PowerPC 55xx
Microsemi SmartFusion2 SoC FPGA (Cortex-M3)
Freescale PowerPC 5xx, 6xx

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CONFIDENTIAL -- NOT FOR DISTRIBUTION OUTSIDE MICROCHIP



 
 
 

 
 
 




Worldwide Microcontroller Market Share (Dollars)

    2003       2008      2009      2010          2011          2012      2013                      2014
No. Rank       Rank      Rank      Rank          Rank          Rank      Rank                      Rank
--- ---------- --------- --------- ------------- ------------- --------- ------------------------- ---------
  1 Renesas    Renesas   Renesas   Renesas       Renesas       Renesas   Renesas                   Renesas
  2 Motorola   NEC       NEC       Freescale     Freescale     Freescale Freescale                 Freescale
  3 NEC        Freescale Freescale Samsung       TI            Infineon  ST-Micro                  ST-Micro
  4 Matsushita Infineon  Samsung   Microchip     Microchip     Microchip Microchip                 Microchip
  5 Infineon   Samsung   Microchip Atmel         ST-Micro      ST-Micro  Infineon                  NXP
  6 Fujitsu    Microchip TI        TI            Atmel         TI        TI                        TI
  7 Toshiba    ST-Micro  Infineon  Infineon      Infineon      Atmel     NXP                       Infineon
  8 Microchip  TI        ST-Micro  ST-Micro      Fujitsu       NXP       Atmel                     Atmel
  9 Samsung    Fujitsu   Fujitsu   Fujitsu       Toshiba       Fujitsu   Samsung                   Spansion
10  ST-Micro   NXP       NXP       NXP           Samsung       Samsung   Cypress                   Samsung
11  Atmel      Toshina   Atmel     Toshiba       NXP           Toshiba   Denso                     Cypress
12  TI         Atmel     Toshiba   Denso         Denso         Cypress   Toshiba                   Toshiba
13  Sanyo      Panasonic Panasonic Cypress       Sony          Denso     Fujitsu                   Denso
14  Philips    Denso     Denso     Panasonic     Panasonic     Panasonic Spansion                  Datang
15  Intel      Sony      Cypress   Sony          Cypress       Sony      Melfas                    Si Labs
16  Sony       Cypress   Sony      Datang        JSC Sitronics Si Labs   CEC-Huada                 CEU-Huada
17  Micronas   Intel     Datang    JSC Sitronics Datang        CEC Huada Si Labs                   Panasonic
18  Oki        Micronas  Intel     Si-Labs       Intel         Melfas    Panasonic                 SHIC
19  Sunplus    Winbond   Si-Labs   Intel         Huahong       JSC       Datang                    Tongfang
20  Winbond    Si-Labs   Rohm                    Si Labs       INSIDE    INSIDE                    Holtek
                          Based on dollar shipment volume 2003-2014, Source: Gartner and Microchip



 
 
 

 
 
 



Total MCU (8/16/32) Market Share %

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Analog Yearly Revenue (k$)

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Microchip Analog Product Portfolio 100 Growth

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Analog and Interface Products

        THERMAL                     POWER                                       INTERFACE/
                                                     MIXED SIGNAL
    MANAGEMENT               MANAGEMENT                                      CONNECTIVITY
         Temperature                                      Delta-Sigma
            Sensors           Linear Regulators         A/D Converters               CAN/LIN
      Fan Control and               Switching                SAR A/D          USB Hubs/PHYs/
 Hardware Management               Regulators              Converters                Switches
                           Digitally-Enhanced and               Energy         Ethernet Controller/
                              PWM Controllers         Measurement ICs     Switches/Bridges/PHYs
           LINEAR
                                 Charge Pump         Current/DC Power                Wireless
                             DC/DC Converters         Measurement ICs
        Single Supply
      CMOS Op Amps                                  Dual Slope/Display             Real Time
                           Battery Management           A/D Converters          Clock/Calendar
         Comparators
                               USB Port Power           D/A Converters           I/O Expanders
   RF Power Amplifiers, Controller/ Power Delivery
          PGA, SGA          System Supervisors                                 SAFETY AND
                                                   Digital Potentiometers
                              Voltage Detectors                                  SECURITY
                               Power MOSFET               V/F and F/V
MOTOR DRIVER ICs                                                            Smoke Detector ICs
                                      Drivers              Converters
      Stepper and DC/        High-Speed Power                                     Piezoelectric
                                                    Voltage References
     3[] Brushless DC               MOSFETs                                       Horn Drivers



 
 
 

 
 
 



Our Analog and Memory Enables Providing Complete Solutions

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SAM Expansion Focus Areas

[] eXtreme Low Power

[] Infotainment in Cars

[] Touch Sense

[] Touch Screen

[] Advanced Graphics

[] USB Interface

[] Ethernet Connectivity

[] Wireless Connectivity

[] Advanced Analog

[] AC/DC Power Supplies

[] Wireless Audio

[] Computing Embedded Controllers

[] Motor Control

[] Digital Power Supplies

[] Energy Efficient Lighting

[] Energy Harvesting and Monitoring

[] Made for iPod and iPhone

[] Medical Solutions



 
 
 

 
 
 




MCHP Applications in S-Class
26 MCUs / 6 Analog / 6 Memory

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MCHP Applications in S-Class
6 MOST / 5 KLEER

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MCHP Applications in Hyundai Genesis

25 MCU / 21 Analog / 4 Memory / 3 MOST / 2 USB

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MCHP Content in Tesla Model - S
5 MCU / 9 Analog / 1 Memory / 2 USB

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     Incremental Growth Through Acquisitions



 
 
 

 
 
 



Broadening Microchip Solutions Through Acquisitions

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Hampshire          RandE       HI-TECH       ZeroG               SST  Adv Silicon
                                                                      Products
------------- ----------- ------------- -------------- ------------ -------------
      Oct '08    Apr '09       Mar '09     Jan '10          Apr '10       Oct '10
------------- ----------- ------------- -------------- ------------ -------------
Touch Screen    Security/ Development   Low Power      High-Density   Motor Drive
  Controllers Life-Safety        Tools/ Embedded           Flash/IP      Products
                  ASICs       Compiler      Wi-Fi ([R])



 
 
 

 
 
 



Broadening Microchip Solutions Through Acquisitions

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       MMT      LSS                 Ident  Roving Networks                  SMSC
------------- ------- -------------------- ------------------------ -----------------
      Feb '11 Oct '11              Feb '12              Apr '12             Aug '12
------------- ------- -------------------- ------------------------ -----------------
 Assembly and    High-  Gesture Recognition       Bluetooth([R]) and          MOST([R])
Test Capacity Speed          and Proximity     Wi-Fi ([R]) Solutions USB and Ethernet
   Expansion    ADC                                                 Wireless Audio
                                                                     PC Controllers



 
 
 

 
 
 



Broadening Microchip Solutions Through Acquisitions

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  Novocell    EqcoLogic        Supertex, Inc.              ISSC
------------- ------------- --------------------- ------------------
     Jun '13        Nov '13             April '14        July '14
------------- ------------- --------------------- ------------------
Non-Volatile- Equalizer and High-Voltage Analog       Low power
 Memory IP          Coaxial    and Mixed Signal   Bluetooth([R]) and
                Transceiver                            Advanced
                  Products                              Wireless
                                                       Solutions



 
 
 

 
 
 



Our Vision: Be The Very Best Embedded Control Solutions Company Ever

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Mission

[] Microchip is a leading supplier of field- programmable embedded control
solutions by delivering the popular PIC[R] microcontrollers, a broad spectrum
of innovative analog and mixed- signal products, wired and wireless
connectivity products, related non-volatile memory products and Flash-IP
solutions.

[] In order to contribute to the ongoing success of our customers, shareholders
and employees,  our mission is to focus resources on high value, high quality
products and services and to continuously improve all aspects of our business,
providing an industry leading return on investment.



 
 
 

 
 
 



Guiding Values

[] Quality comes first [] Customers are our focus

[] Continuous improvement is essential [] Employees are our greatest strength
[] Products and technology are our foundation [] Total cycle times are
optimized [] Safety is never compromised [] Profits and growth provide for
everything we do [] Communication is vital [] Suppliers, representatives and
distributors are our partners [] Professional ethics are practiced




 
 
 

 
 
 



Average % of Time MCHP Practices the Guiding Values: Employee Population*

                                                2014  2013  2012
Values (Goal: 80%)                              Mean  Mean  Mean
----------------------------------------------- ----- ----- -----
Quality Comes First                             86.7% 86.0% 86.3%
----------------------------------------------- ----- ----- -----
Customers Are Our Focus                         89.5% 89.4% 89.8%
----------------------------------------------- ----- ----- -----
Continuous Improvement Is Essential             86.1% 85.7% 85.7%
----------------------------------------------- ----- ----- -----
Employees Are Our Greatest Strength             80.0% 79.7% 80.2%
----------------------------------------------- ----- ----- -----
Products And Technology Are Our Foundation      87.2% 86.2% 86.8%
----------------------------------------------- ----- ----- -----
Total Cycle Times Are Competitive               83.1% 83.0% 84.1%
----------------------------------------------- ----- ----- -----
Safety Is Never Compromised                     91.0% 90.6% 89.8%
----------------------------------------------- ----- ----- -----
Profits And Growth Provide For Everything We Do 89.7% 89.7% 89.0%
----------------------------------------------- ----- ----- -----
Communication Is Vital                          85.5% 84.7% 84.3%
----------------------------------------------- ----- ----- -----
Suppliers And Distributors Are Our Partners     87.7% 86.8% 87.3%
----------------------------------------------- ----- ----- -----
Professional Ethics Are Practiced               87.5% 87.2% 86.7%
----------------------------------------------- ----- ----- -----

*Excluding Thailand



 
 
 

 
 
 



    Mode % of Time MCHP Practices the Guiding Values: Employee Population*

                                                 2014    2013    2012
Values (Goal: 90%)                              Mode     Mode    Mode
----------------------------------------------- -------- ------- -------
Quality Comes First                                100%      90%     90%
----------------------------------------------- -------- ------- -------
Customers Are Our Focus                            100%    100%    100%
----------------------------------------------- -------- ------- -------
Continuous Improvement Is Essential                100%    100%      90%
----------------------------------------------- -------- ------- -------
Employees Are Our Greatest Strength                100%    100%    100%
----------------------------------------------- -------- ------- -------
Products And Technology Are Our Foundation         100%    100%    100%
----------------------------------------------- -------- ------- -------
Total Cycle Times Are Competitive                    90%     90%     90%
----------------------------------------------- -------- ------- -------
Safety Is Never Compromised                        100%    100%    100%
----------------------------------------------- -------- ------- -------
Profits And Growth Provide For Everything We Do    100%    100%    100%
----------------------------------------------- -------- ------- -------
Communication Is Vital                             100%    100%    100%
----------------------------------------------- -------- ------- -------
Suppliers And Distributors Are Our Partners        100%      90%     90%
----------------------------------------------- -------- ------- -------
Professional Ethics Are Practiced                  100%    100%    100%
                                                -------- ------- -------


*Excluding Thailand 34




 
 
 

 
 
 



Percent of Time Employee's Direct Supervisor  Practices the Guiding Values
Expressed in Mean Scores Over Time

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Job Satisfaction
Rated by Employee Population*

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High and Good Combined: 84.8% (2013: 83.5%)

*Excluding Thailand



 
 
 

 
 
 



Strategic Rationale

[] Adds a portfolio of Linear and Power Management products to Microchip's
Analog and Interface products.

[] Adds a portfolio of LAN Solutions to Microchip's solutions of connectivity
products.

[] Adds Timing and Communication products as a new set of products and business
unit to Microchip.

[] Microchip's manufacturing and sales channel strengths can extend the reach
of Micrel's solutions into new applications and markets.

[] Adds a portfolio of 400 patents to Microchip IP portfolio.



 
 
 

 
 
 



Next Steps

[] Microchip and Micrel executives will work towards completing the acquisition
expeditiously.

[] We expect to close transaction in early CQ3, 2015.

[] We will form an integration team consisting of employees from both companies
who will outline the integration strategy in areas of IT, HR, Finance, legal,
operations, product lines and sales.



 
 
 

 
 
 



Some Answers in the HR area

[] Your vested stock options will be cashed out at $14.00   stock price.

[] Your unvested stock options will be assumed by Microchip adjusted for the
exchange ratio.

[] # of options = Current number of options x Exchange ratio [] Option price=
Current option price/Exchange ratio [] The vesting schedule will remain the
same

[] Exchange ratio= 14/ Microchip's avg.  closing stock price for the ten
trading days ending on the second to last trading day immediately prior to the
Effective Time.



 
 
 

 
 
 



ESPP

[] Micrel's ESPP will be terminated.

[] We will develop a schedule for employees to join
Microchip's ESPP.

[] Microchip's U. S.  ESPP plan has a two years look back period and a 15%
discount, and is therefore more generous than Micrel's ESPP plan.

[] Our international ESPP plan has a 6 months look back period and has a 15%
discount.



 
 
 

 
 
 



401K

[] Micrel's 401K plan will be frozen.

[] The employees can enroll into Microchip's 401K plan.

[] Microchip's 401K plan has a match contribution by
Microchip.

[] Match is quarterly and is discretionary based on business results.

[] Target match is 50% of the first 4% of basic contributions.

[] Micrel's's 401K plan will undergo a typical IRS audit.
Once approved, you will have the option to distribute or roll your monies into
an IRA or Microchip 401(k) Plan.



 
 
 

 
 
 



Microchip Community Awards



2011 Microchip Again Wins Alfred P. Sloan Award for Workplace Flexibility For
Fifth Consecutive Year, Company Receives National Recognition for Business
Practices

 Microchip Technology has been selected as one of Arizona's "100 Best"
Companies! 2011

Dec 2010 Microchip Named Phoenix Business Journal's "Best Place to Work "for
Fourth Straight Year--

Bay Area News "Top Workplaces Program " for fourth straight year--- 2012 -2015



 
 
 

 
 
 



Best Employers in Thailand 2009

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Microchip Training Awards

[] Criteria

[] Strategic application of training to drive business objectives [] Robust,
formal training program [] Training budget, resources and tuition reimbursement
[] Hours of training per employee

[] Top 125 in 2012 (Rank # 116)

[] Top 125 in 2013 (Rank #124) [] Top 125 in 2014 (Rank #107) [] Top 125 in
2015 (Rank #100)



 
 
 

 
 
 




Source: Driving Excellence John Wiley and Sons, April 2006

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Microchip Summary

[] Leading provider of embedded control solutions

[] Leadership position shaped by our vision, unique culture and guiding values


[] Dedicated to the success of our customers, investors and employees

[] Excited to have Micrel join the team!



 
 
 

 
 
 



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Thank You!