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1QFY26 Investor Presentation JULY 31, 2025
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Forward-looking statements This presentation and the accompanying oral remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this presentation and the accompanying oral remarks, including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors and trends affecting our business, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance, or achievements, and one should avoid placing undue reliance on such statements. Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 28, 2025, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our dependence on growth in the end markets that use our products and the impact that slowdowns in such growth could have on our financial results; the loss of one or more significant customers; our ability to identify, enter and expand in new markets, and to generate returns on such investments; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the risk of unsolicited acquisition proposals; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; the impact of restructuring activities on our business and operating results; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; any failure to maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the risks presented by climate change; the risks related to ESG matters; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. You should read this presentation and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this presentation, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise. This presentation and the accompanying oral remarks include certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison. This presentation may not be reproduced, forwarded to any person or published, in whole or in part. 2
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1Q Financial & Business Update Company Overview Appendix ALLEGRO’S VALUES
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▪ Net sales above the high end of guidance, increasing 22% year-over-year ▪ Auto sales increased 13% year-over-year, led by e-Mobility which grew 31% year-over-year ▪ Industrial and Other sales increased 50% year-over-year, with strength in Data Center and Robotics & Automation ▪ 75% of Design Wins were in strategic focus areas • xEV Traction inverter win with a leading Chinese automotive OEM • Multiple wins with a leading APAC automotive OEM for ADAS and EV applications • Several wins in Robotics & Industrial Automation ▪ Sampling high voltage isolated gate drivers for SiC; garnering strong interest from global customers ▪ Net Sales above the high end of guidance ▪ Gross margin above high end of guidance, improving 260 bps quarter-over-quarter ▪ EPS above the midpoint of guidance ▪ Free Cash Flow of $51M, or 25% of sales ▪ Made $35 million in voluntary debt repayments Guidance1,2 Actual3 Net Sales $192M - $202M $203M Gross Margin % 46% to 48% 48.2% EPS $0.06 to $0.10 $0.09 1QFY26 Non-GAAP Financial Highlights 1. The May 8, 2025 guidance for 1QFY26 included in this presentation has not been updated and is for historical reference only. 2. Contains non-GAAP financial measures. Allegro has not provided a reconciliation of its 1QFY26 guidance for non -GAAP Gross Margin, non-GAAP Operating Expenses, and non-GAAP Diluted Earnings per Share because estimates of all the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward -looking estimate between such forward-looking non-GAAP measures and the comparable forward -looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to est imate these items are out of its control and/or cannot be reasonably predicted. 3. Gross Margin and EPS are Non-GAAP measures. Reconciliations of these numbers to the most comparable GAAP measures can be found i n the Appendix. 1QFY26 Financial and Business Highlights Business Highlights 4
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▪ Only ASIL-C certified device enabling in two sensors what others deliver in three sensors ▪ Achieves high immunity to stray magnetic fields when used with a U-core concentrator, simplifying mechanical assembly ▪ Saves weight, space and cost versus C-core solutions ASIL-C Current Sensor Simplifies Mechanical Assemblies for xEV Inverters NEW PRODUCT INTRODUCTIONS 5View all press announcements here.
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2QFY26 Financial Guidance Midpoint of Sales Guidance Implies 12% Year-Over-Year Growth 1. The July 31, 2025 guidance for 2QFY26 included in this presentation has not been updated, and inclusion of the guidance shoul d not be construed as an update or reaffirmation of this guidance as of any later date. 2. Contains non-GAAP financial measures. Allegro has not provided a reconciliation of its 2QFY26 guidance for non -GAAP Gross Margin, non-GAAP Operating Expenses, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward -looking estimate between such forward -looking non-GAAP measures and the comparable forward -looking U.S. GAAP measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted. Non-GAAP Guidance1,2 Sales $205M - $215M Gross Margin % 48% - 50% EPS $0.10 - $0.14 6 ▪ Made another $25M debt payment on July 31st
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1Q Financial & Business Update Company Overview Appendix ALLEGRO’S VALUES
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Why Allegro? ▪ Market leader in magnetic sensing and deep expertise in targeted power ICs enabling electrification and autonomy ▪ 30+ years of focused automotive semiconductor expertise ▪ Levered to key semiconductor growth megatrends of electrification and autonomy ▪ Positioned for long-term growth and margin expansion ▪ Strong management with a track record of consistently delivering results 8
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9 Drive relentless innovation to strengthen our competitive advantages in Automotive & Industrial Markets Extend our leadership in the Magnetic Sensing Market and Select Power Applications Capitalize on new opportunities in high-growth Industrial sectors Execute operational efficiency initiatives to enhance gross margins and profitability Advance the rollout of our highly differentiated XtremeSenseTM TMR and High Voltage Isolated Gate Driver technologies 9 Deliver on near-term financial commitments while progressing towards our long-term model Allegro’s Strategic Priorities
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1. Based on sales as a percent of total as of fiscal year ended March 28, 2025. 2. Omdia, MEMS & Sensors Competitive Analysis Database – May 2025. 3. As of June 28, 2025. 4. Non-GAAP Gross Margin and Non-GAAP EPS are Non-GAAP measures. Reconciliations of these numbers to the most comparable GAAP measures can be found in the Appendix. Allegro at a Glance Our Mission Magnetic Sensing 65% Power 35%Sales by Product1 MARKET LEADING TECHNOLOGY & PORTFOLIO ALIGNED TO HIGH GROWTH MARKETS & SECULAR TRENDS Auto 74% Industrial & Other 26% FY25 NON-GAAP FINANCIAL RESULTS Market Leader2 ~4,0003 Employees >10,000 Customers ~1,9003 Patents To be the leader in global semiconductor technology with sensing and power solutions that drive e-Mobility, clean energy and automation forward. Sales by Market1 17 Engr. & Tech Centers across 15 countries3 ~7503 R&D Employees >30 years Automotive experience >1.5k Devices in Portfolio >25B Cumulative Units shipped 48.0%4 FY25 Gross Margin $0.244 FY25 EPS $725M FY25 Sales #1 MAGNETIC SENSING 10
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Sensor ICs A combination of precision, reliability and innovation in sensing cater to the growing need for energy-efficient products Current Sensors Switches and Latches Position Sensors Speed Sensors Power Management ICs Highly integrated power management solutions save space and simplify design while ensuring reliability and robustness ClearPower Modules LED Drivers Regulators Driver ICs Best in class drivers provide precise and efficient control of motors and high-power switches optimizing performance and enhancing safety Brush DC Drivers Brushless DC Drivers Isolated Gate Drivers #1 Market Leader in Magnetic Sensing1 • Broadest portfolio Hall effect, GMR, TMR technologies • High accuracy, efficiency, small sizes, faster operation • Proprietary packaging • Superior TMR technology: Better accuracy, lower energy than Hall effect • >1,200 patents and market share gains Deep Expertise in Targeted Power ICs • Leadership in niche power applications leveraging auto-grade technology • Reuse xEVs solutions in EV charging and renewable energy markets • ICs provide efficient, quiet, reliable operation • Content opportunity in high-voltage isolated gate drivers for SiC/GaN • Higher levels of integration for higher power density with space savings Differentiated Sensing and Power Technology Core Value: “Innovation with Purpose” 1. Omdia, MEMS & Sensors Competitive Analysis Database – May 2025. Sense Regulate Drive 11
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Uniquely Focused on Serving Automotive and Select Industrial Markets Levered to Key Semiconductor Growth Megatrends of Electrification and Autonomy Automotive $8bn SAM,1 7% CAGR2 xEV ADAS Conventional Powertrain (ICE) Safety, Comfort & Convenience (SCC) Solar Data Center Medical Robotics & Automation EV Charging 12 Allegro's Large and Growing SAM $12bn SAM,1 +9% CAGR2 1. Internal estimates. 2. CAGR 2024-2030. Industrial & Other $4bn SAM,1 12% CAGR2
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13 Allegro’s Sensor & Power ICs are Enabling Electrification and Autonomy in Automotive and Select Industrial Markets Magnetic Sensor ICs Power ICs S E N S E R E G U L A T E & D R I V E Current Position Speed Regulators Motor Gate Drivers AUTO xEV Powertrain ◉ ◉ ◉ ◉ ◉ ◉ ADAS ◉ ◉ ◉ ◉ ◉ ◉ Safety, Comfort and Convenience ◉ ◉ ◉ ◉ ◉ ◉ Conventional Powertrain (ICE) ◉ ◉ ◉ ◉ ◉ ◉ INDUSTRIAL Clean Energy ◉ ◉ ◉ ◉ ◉ Data Center ◉ ◉ ◉ Medical ◉ ◉ Robotics & Automation ◉ ◉ ◉ ◉ ◉ ◉ Precision engineered for efficiency and reliability48V ready now Broadest portfolio of magnetic sensors
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Automotive More Than Three Decades of Focused Automotive Semiconductor Expertise
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Focused Auto Supplier with Broad Exposure Our Zero-defect Culture and Innovative Solutions Boost Efficiency in Powertrain, Safety and Comfort xEV Powertrain Advanced Driver Assistance Systems (ADAS) Safety, Comfort & Convenience (SCC) Design compact, efficient and safe electric systems for mild hybrid, full hybrid, plug-in hybrid and battery electric vehicles Quality control and safety are top priorities at Allegro— who can be relied upon to deliver safety critical automotive systems Ensure safety while maintaining vehicle comfort, convenience and performance 48V Mild Hybrid Starter Generator On Board Chargers DC-DC Converters Battery Management Systems Thermal Management High Voltage Traction Inverters and Motors Steering Systems Braking Systems Active Suspension Detection and Ranging Driver Monitoring Seat Belt/Position/Ventilation Heads-up Display In-Cabin Motors HVAC Systems Lighting 15 Conventional Powertrain (ICE) Reduce emissions and improve efficiency with our conventional powertrain solutions Engine Management Sensors Transmission Motors/Sensors Fuel, Oil and Water Pumps Cooling Fans
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Expanding Auto Production and Content Per Vehicle Drive Double-digit Growth in Auto Semiconductor Addressable Market Auto production presents a large and growing opportunity +2% CAGR 80 98 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Global Auto Production Forecast1 (M Units) 1. Auto Semis Monthly, TD Cowen, September 2024 . 2. Automotive Semiconductors, a 100B Device industry, Yole, October 2023 & Internal Estimates. 3. Exploring new regions: The greenfield opportunity in semiconductors, Mckinsey & Company, January 2024. 52 147-183 2021 2030 Global Auto Semi Market value3 $B (TAM) Auto semiconductors is projected to be the fastest growing end market for semiconductors 12-15% CAGR Average Semi Content per Vehicle2 $USD (TAM) Electrification and ADAS feature adoption are expected to drive Auto semi content growth +12% CAGR 410 1,144 2021 2030 16
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Other Auto e-Mobility Automotive SAM3 ADAS 18% xEV 45% ICE 16% SCC 21% $8.0B +7% CAGR 2024-2030 $40 $100 ICE BEV & Full Hybrid 2030 Estimated Content Opportunity per Vehicle3 xEV and ADAS Growth Projected to Drive $8B SAM Opportunity Allegro Wins as Cars Electrify and Adopt Advanced Driver Assistance 1. xEV includes battery electric vehicles, range extended electric vehicles, series hybrid vehicles, full hybrid vehicles, and plug-in hybrid vehicles. 2. S&P Global Mobility, Light Vehicle Engine Production Forecast, January 2021 & September 2024. 3. Internal estimates. 4. CAGR is 2024-2030. 5. Calculated using production and ADAS adoption rates from Auto Semis Monthly: Inside the Circuit September 2024, TD Cowen, September 2024. 6. CAGR 2021-2030. 32 52 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Jan. 2021 Sept. 2024 +22% CAGR6 xEV Unit Forecast2 M Units Growing ADAS Penetration: Vehicles Produced with L1+ ADAS Features5 (M units) 39 91 2021 2030 Growing xEV1 Unit Forecast +10% CAGR +65% e-Mobility +16%3,4 CAGR 17
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Sustainable Advantages Customer Benefits Integrated packaging leadership delivers best-in-class current sensors and high- voltage isolated gate drivers Charge faster with 2x the power density in power conversion modules (i.e., AC to DC) for hybrid EV powertrains Proprietary high voltage process technology enables True 48V gate driver and power management solutions Drive farther with unparalleled 48V energy efficiency and multi-platform (12V/24V/48V) scalability High performance current and position sensors based on XtremeSenseTM TMR Technology Charge faster and drive farther with XtremeSense TMR sensors’ lower power and faster response ISO 26262-certified design process with ASIL-compliant safety diagnostics Get there safely with products designed for reliable operation and redundant safety designs Auto Pedigree ▪ 30+ Years of Automotive Expertise serving leading global automakers • We understand auto customers’ unique requirements • Serving all leading global auto customers • Teams located in all major global automotive hubs ▪ Proprietary technology • Exceeds rigorous automotive quality/safety standards with a 200 ppb failure rate • Designed for automotive performance, safety, energy efficiency and reliability 30+ Years of Focused Automotive Semiconductor Expertise Charge faster. Drive farther. Get there safely. 18
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Higher efficiency Lower power conversion loss increases driving range and battery life Higher power density Smaller cables/connectors save space and weight to extend battery life Higher power Support performance boost when needed and support faster charging Enhances power delivery using less current and is ideal for battery electric vehicles, clean energy, cloud infrastructure and automation. 48V REGULATORS, SENSORS AND DRIVERS OFFER Unlock the Potential of 48V SystemsWell-positioned to Support True 48V Transition DESIGNED ON A ROBUST 120V SILICON PROCESS 19
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Industrial & Other Leveraging Automotive Grade Technology & Expertise
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Data Center Clean Energy Medical Robotics & Automation Industrial & Other Provides an Incremental $4B SAM Leveraging Automotive Grade Technology & Expertise Clean Energy +10%2 CAGR $0.7B SAM1 1. Internal estimates. 2. CAGR 2024-2030. 3. CAGR 2025-2030. $4.1B1 +12% CAGR 2024-2030+15%2 CAGR Strategic Focus Areas $3.0B +7%2 CAGR Broad-based & Other $1.1B Medical +10%3 CAGR $0.3B SAM1 Data Center +20%2 CAGR $0.9B SAM1 21 Robotics & Automation +19%2 CAGR $1.0B SAM1
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Tailored for Data Center, our Solutions Efficiently Manage Power Density and Thermal Demands Allegro’s Content Opportunity Scales Directly with AI Workload Energy Consumption (kWh) Motor Drivers Integrated solutions for reliable, efficient AI fan and liquid pump operation in 12V/48V systems, enhancing performance and simplifying design with built-in intelligence Current Sensors Reliable, high accuracy sensors optimize power management, reduce energy waste, and rapidly respond to changing power demands Isolated Gate Drivers Enhancing power density and efficiency to meet AI power requirements 221. Breaking Barriers to Data Center Growth, Boston Consulting Group, January 20, 2025. 2. Internal estimates. Driving the Next Wave of AI & Cloud Innovation Rapid server cooling backed by reliable, energy efficient power infrastructure 7% 20% 65% Traditional Other AI & HPC GenAI Data Center Power Growth CAGR 2023-2028 by Workload1 $150 $425 Traditional AI ALGM Content Opportunity per Rack2 Allegro Solutions Deliver Energy Efficiency and Protection for Optimal Server Performance READY NOW READY NOW READY NOW
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Robotics Market is Reaching an Inflection Point with Greater Adoption and Complexity Allegro’s Motion Control and Sensing Solutions Scale with Robotic Sophistication Position Sensors TMR and Inductive position sensors offer high-resolution performance at both ends of the actuator spectrum, enabling full robot solutions Current Sensors TMR current sensors provide the precise, high-speed, high voltage solution essential for precise motor control Motor Drivers Allegro's 100V motor drivers provide the high-power handling and precise control essential for driving larger, more capable motors in advanced robotics Regulators and Lighting High efficiency regulation and lighting solutions complement motor control in cobot and humanoid end products 23 Delivering the Precision, Efficiency, and Scalability that Advanced Robotics Demand Defining Robotic Precision & Power with TMR and >100V Leadership Unlocking the Humanoid & Automation Frontier with Unmatched Sensing Finesse and High-Voltage Muscle Factory & Building Process Automation Cobots & Humanoids ALGM Content Opportunity Ranges2 $10 - $110 $3 - $10 $0.5 - $5 $160 $25 $40 $260 2020 2023 2030 Global Robotics TAM ($B)1 Base Case Upside Case 22% - 31% CAGR 2023-2028 Global Humanoid revenue forecast at $5 Trillion in 20503 1. Robotics Outlook 2030: How Intelligence and Mobility Will Shape the Future, Boston Consulting Group, June 28, 2021, CAGR 2023 -2030. 2. Internal Estimates. 3. A $5 Trillion Global Market, Morgan Stanely, April 29, 2025.
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Leading-edge Technology Offers Significant SAM, Differentiated Products and Revenue Growth 1. Technology acquired via acquisition of Heyday Integrated Circuits. 2. XtremeSense TMR technology and brand acquired from Crocus Technology. ▪ Unmatched magnetic sensitivity, lowest power, smallest size versus other magnetic technologies ▪ Designed for harsh environments for a competitive advantage ▪ Enables industry-leading current and position sensor performance and cost ▪ SiC and GaN transistors require the high bandwidth of TMR ▪ Designed to power and control SiC and GaN power systems ▪ Revolutionary, fully-isolated, integrated gate driver and power supply technology in a single package ▪ Enabling some of the smallest high-voltage / most efficient power systems available today Isolated Gate Driver $2.7B SAM1 XtremeSense Tunneling Magnetoresistance (TMR) $1.0B SAM2 Accuracy Speed (GaN / SiC) Low Power Hall Effect AMR GMR TMR 24
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Allegro’s Highly Attractive Business Profile ✓ Levered to key semiconductor growth megatrends of electrification and autonomy ✓ Well-balanced geographical distribution with highly diversified customer base ✓ Fabless, asset light business model enables scale, agility and resilience ✓ Positioned for long-term growth and margin expansion ✓ Recent investments in M&A and capacity expansion paves the way for scale, operating leverage, and EPS growth ✓ Management team well-positioned to accelerate current strategic initiatives to drive attractive shareholder value 25
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Americas 16% Europe 15% Japan 21% China 25% Rest of Asia 23% Well-balanced Geographical Distribution With Highly Diversified Customer Base Channel Mix1 ▪ Strong relationships with auto OEMs built over decades and are majority sole sourced ▪ Global and regional distribution partners expand demand creation ▪ Distribution helps us reach >10K customers ▪ Well-balanced geographical sales ▪ Enabled by regional sales and tech centers ▪ Strong presence in Asia, growing North America & Europe ▪ No end customer >10% Sales by Geography 1 1. Based on the fiscal year ended March 28, 2025. Direct 49% Distribution 51% 26
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Fabless, Asset Light Business Model Enables Scale, Agility and Resilience Throughout Business Cycles Global Resilience at Scale Rest of World China-for- China1 S U P P O R T I N G M U L T I P L E S U P P L Y C H A I N L A N E S • Recent investments pave the way for scale, operating leverage, and EPS growth • Leveraging partners for supply chain resilience and localization ▪ USA and Taiwan based fabs ▪ Multiple OSATs in Southeast Asia ▪ Proprietary packaging and test done internally in the Philippines ▪ Multiple Fabs running proprietary Allegro process ▪ Market-leading OSAT partners in Asia ▪ Proprietary packaging and test done internally in the Philippines ▪ Local fab for local production ▪ Local OSAT partner for turnkey, probe assembly and test ▪ Localizing select SKUs Taiwan United States ⚫ ⚫ PhilippinesMalaysia ⚫ ⚫ Thailand ⚫FAB ⚫ OSAT China ⚫ ⚫ 271. Execution of China for China supply chain strategy is in progress.
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Positioned for Long-term Growth and Margin Expansion Long-Term Target Model1 1. These long-term targets are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management and are based upon assumptions with respect to future decisions, which are subject to change. The Company has not prescribed any specific time periods for these long-term targets. Actual results may vary, and those variations may be material. Nothing in this presentation should be regarded as a representation by any person that these objectives will be achieved, and the Company undertakes no duty to update its objectives as circumstances change. For more information, please refer to the Disclaimers on Page 2 and the sections entitled “Risk Factors” and “Forward Looking Statements” in the Company’s Annual Report on Form 10-K for the fiscal year ended March 28, 2025. 2. Denotes a Non-GAAP measure. A reconciliation of the non-GAAP financial measures included in this chart to the corresponding GAAP measures is not available without unreasonable effort. 3. As a percentage of sales. 4. Third-party data and internal estimates (multi-year CAGR). 5. Internal estimates for Financial Model. Sales growth Low double- digit Y-o-Y growth Focus on fast growing markets and content expansion • Auto: Auto Production4 % + 7-10%5 CAGR • Industrial & Other: Broad Industrial Semi4 % + 5–10%5 CAGR Gross margin2,3 >58% Expansion through product differentiation and mix, supply chain optimization, and manufacturing efficiencies and volume leverage Operating expenses2,3 ~26% Continued focused R&D investment <15% of sales and SG&A leverage Operating margin2,3 >32% Significant operating leverage and sustainable profitable growth Free cash flow2,3 >25% Strong cash flow generation to continue to fuel innovation 28
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2929 Drive Sustainable Double-Digit Sales Growth and Margin Expansion Drivers Enabling Double-Digit Sales Growth Key Cost Actions Driving Margin Expansion ✓ Continued focus on fast-growing markets and content expansion in e-Mobility and strategic Industrial ✓ Refocus distribution to drive growth and margin improvement in Industrial ✓ Capitalize on ~$3B SAM expansion applications in Robotics & Automation, Data Center, Clean Energy & Medical ✓ Accelerate TMR and isolated gate driver adoption offering ~$4B SAM expansion within high growth Auto and Industrial ✓ Benefit from operating leverage driven by volume increases as industry recovers ✓ Efficiency improvements - global footprint, lower-cost engineering centers, Philippines shared services center, factory efficiency and optimization projects ✓ Consolidate suppliers and optimize mix of internal and external assembly and test ✓ Aggressively drive product design cost reductions through mix of wafer, packaging, assembly and test
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• Deliver strong and growing cash flow • Maintain strong balance sheet and adequate liquidity • Retain financial flexibility to pursue growth opportunities • Track-record of voluntary debt repayment • Drive innovation to enhance technology leadership • Expand sales and partner network to enhance customer intimacy • ROIC-based investment decisions • Accelerate growth in our Strategic Focus Areas • Complementary to our expertise and customer base • Accretive to Target Financial Model Investment and Capital Allocation Strategy1 1. These strategies are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties an d contingencies, many of which are beyond the control of the Company and its management and are subject to change. For more information, please refer to the Disclaimer s on Page 2 and the sections entitled “Risk Factors” and “Forward Looking Statements” in the Company’s Annual Report on Form 10 -K for the fiscal year ended March 28, 2025. Maintain Strong & Flexible Balance Sheet Focused M&A Investment in Organic Growth 30
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Sanken had a capital need in 2024 and monetized a portion of their Allegro shares to fund business needs. ▪ July 2024 Share Repurchase • Allegro repurchased ~39 million shares from Sanken; reducing ownership from 51.5% to 32.5% • This repurchase was tax advantaged for Sanken, and Allegro was compensated with a $35m facilitation fee plus payment of transaction expenses • As a result of reduced ownership, the Stockholders Agreement was updated • Sanken agreed to a 14-month lockup, expiring in September of 2025 Benefits to Allegro Shareholders ▪ Allegro increased its free float by ~30% while simultaneously retiring 10M shares or 5% of the outstanding shares ▪ July 2024 Amended and Restated Stockholders Agreement with Sanken • Sanken agreed to vote in favor of all Board designees nominated by Allegro’s NGC • Sanken agreed to vote in favor of any matter that the Allegro Board approves • If Sanken owns 20% or more of common shares, it can designate 2 directors to the Board • Allegro has the right of first refusal to purchase from Sanken any future sales of Allegro shares • Sanken agreed to not sell any more than 10% of common shares to a material competitor without Allegro’s consent ▪ Currently only one Sanken insider is on Allegro’s BOD (plus an observer) ▪ Sanken’s nominees cannot chair any Board Committee at ALGM 31 Summary of Allegro’s Share Repurchase From Sanken Electric and Benefits to Allegro Shareholders
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1Q Financial & Business Update Company Overview Appendix ALLEGRO’S VALUES
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GAAP to Non-GAAP Gross Profit and Gross Margin Reconciliations1 1. Sum of items may not total due to rounding. ($ in millions) Fiscal Qtr ended June 28, 2024 (F1Q’25) Fiscal Qtr ended September 27, 2024 (F2Q’25) Fiscal Qtr ended December 27, 2024 (F3Q’25) Fiscal Qtr ended March 28, 2025 (F4Q’25) Fiscal Year ended March 28, 2025 (FY 2025) Total Net Sales $166.9 $187.4 $177.9 $192.8 $725.0 Cost of goods sold 92.1 101.7 96.7 112.9 403.5 GAAP Gross Profit $74.8 $85.7 $81.2 $79.9 $321.5 GAAP Gross Margin (% of net sales) 44.8% 45.7% 45.7% 41.4% 44.3% Purchased intangible amortization 4.9 4.9 4.9 5.0 19.6 Restructuring costs 1.2 — 0.5 2.4 4.1 Stock-based compensation 0.6 0.8 0.8 0.7 2.9 Non-GAAP Gross Profit $81.4 $91.4 $87.4 $87.9 $348.1 Non-GAAP Gross Margin (% of net sales) 48.8% 48.8% 49.1% 45.6% 48.0% 33
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GAAP to Non-GAAP Operating Income and Operating Margin Reconciliations1 1. Sum of items may not total due to rounding. ($ in millions) Fiscal Qtr ended June 28, 2024 (F1Q’25) Fiscal Qtr ended September 27, 2024 (F2Q’25) Fiscal Qtr ended December 27, 2024 (F3Q’25) Fiscal Qtr ended March 28, 2025 (F4Q’25) Fiscal Year ended March 28, 2025 (FY 2025) GAAP Operating (Loss) Income ($10.6) $4.1 $— ($13.2) ($19.8) GAAP Operating Margin (% of net sales) (6.4%) 2.2% —% (6.8%) (2.7%) Transaction-related costs 1.8 0.5 0.5 0.1 2.9 Purchased intangible amortization 5.4 5.4 5.4 5.5 21.7 Restructuring costs 2.4 2.3 2.4 8.4 15.5 Stock-based compensation 10.1 11.5 10.6 9.6 41.9 Other costs 0.8 (1.8) 0.4 6.9 6.3 Non-GAAP Operating Income $10.0 $22.0 $19.2 $17.4 $68.6 Non-GAAP Operating Margin (% of net sales) 6.0% 11.7% 10.8% 9.0% 9.5% 34
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GAAP to Non-GAAP Earnings Per Share Reconciliations1 1. Sum of items may not total due to rounding. (in millions, except per share) Fiscal Qtr ended June 28, 2024 (F1Q’25) Fiscal Qtr ended September 27, 2024 (F2Q’25) Fiscal Qtr ended December 27, 2024 (F3Q’25) Fiscal Qtr ended March 28, 2025 (F4Q’25) Fiscal Year ended March 28, 2025 (FY 2025) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. ($17.7) ($33.7) ($6.9) ($14.8) ($73.0) GAAP Diluted weighted average common shares 193.5 189.2 184.0 184.2 187.7 GAAP Diluted (Loss) Earnings per Share ($0.09) ($0.18) ($0.04) ($0.08) ($0.39) Transaction-related costs 1.8 3.3 0.5 0.1 5.7 Transaction-related interest 0.7 0.1 0.2 0.3 1.3 Purchased intangible amortization 5.4 5.4 5.4 5.5 21.7 Restructuring costs 2.4 2.1 2.4 8.5 15.3 Stock-based compensation 10.1 11.5 10.6 9.6 41.9 Loss on change in fair value of forward repurchase contract — 34.8 — — 34.8 Other costs 2.8 1.4 1.4 6.7 12.4 Tax effect of adjustments to GAAP results 0.4 (10.1) (0.4) (4.1) (14.2) Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. $6.0 $14.9 $13.2 $11.7 $45.9 Non-GAAP Diluted weighted average common shares 194.7 189.7 184.5 185.2 188.6 Non-GAAP Diluted Earnings per Share $0.03 $0.08 $0.07 $0.06 $0.24 35
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GAAP to Non-GAAP Free Cash Flow Reconciliations1 1. Sum of items may not total due to rounding. ($ in millions) Fiscal Qtr ended June 28, 2024 (F1Q’25) Fiscal Year ended September 27, 2024 (F2’Q25) Fiscal Qtr ended December 27, 2024 (F3’Q25) Fiscal Qtr ended March 28, 2025 (F4’Q25) Fiscal Year ended March 28, 2025 (FY 2025) GAAP Operating Cash Flow $34.2 $15.5 ($8.2) $20.4 $61.9 GAAP Operating Cash Flow (% of net sales) 20.5% 8.3% (4.6%) 10.6% 8.5% Purchases of property, plant and equipment (11.0) (10.0) (13.6) (5.4) (40.0) Non-GAAP Free Cash Flow $23.2 $5.6 ($21.8) $15.0 $22.0 Non-GAAP Free Cash Flow (% of net sales) 13.9% 3.0% (12.3%) 7.8% 3.0% 36
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($ in millions) Fiscal Qtr ended June 27, 2025 (F1Q’26) Total Net Sales $203.4 Cost of goods sold 112.1 GAAP Gross Profit $91.3 GAAP Gross Margin (% of net sales) 44.9% Purchased intangible amortization 5.1 Restructuring costs 0.7 Stock-based compensation 0.9 Non-GAAP Gross Profit $98.0 Non-GAAP Gross Margin (% of net sales) 48.2% GAAP to Non-GAAP Gross Profit and Gross Margin Reconciliation1 37 1. Sum of items may not total due to rounding.
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($ in millions) Fiscal Qtr ended June 27, 2025 (F1Q’26) GAAP Operating Loss ($2.7) GAAP Operating Margin (% of net sales) (1.3)% Transaction-related costs 0.1 Purchased intangible amortization 5.6 Restructuring costs 3.0 Stock-based compensation 10.8 Other costs 5.9 Non-GAAP Operating Income $22.7 Non-GAAP Operating Margin (% of net sales) 11.1% GAAP to Non-GAAP Operating Income and Operating Margin Reconciliation1 38 1. Sum of items may not total due to rounding.
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(in millions, except per share) Fiscal Qtr ended June 27, 2025 (F1Q’26) GAAP Net Loss Attributable to Allegro MicroSystems, Inc. ($13.2) GAAP Diluted weighted average common shares 184.6 GAAP Diluted Loss per Share ($0.07) Transaction-related costs 0.1 Transaction-related interest 0.9 Purchased intangible amortization 5.6 Restructuring costs 3.0 Stock-based compensation 10.8 Other costs 7.3 Tax effect of adjustments to GAAP results 1.5 Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. $16.0 Non-GAAP Diluted weighted average common shares 185.4 Non-GAAP Diluted Earnings per Share $0.09 GAAP to Non-GAAP Earnings per Share Reconciliations1 39 1. Sum of items may not total due to rounding.
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($ in millions) Fiscal Qtr ended June 27, 2025 (F1Q’26) GAAP Operating Cash Flow $61.6 GAAP Operating Cash Flow (% of net sales) 30.3% Purchases of property, plant and equipment (10.6) Non-GAAP Free Cash Flow $51.0 Non-GAAP Free Cash Flow (% of net sales) 25.1% GAAP to Non-GAAP Free Cash Flow Reconciliations1 40 1. Sum of items may not total due to rounding.
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Supplemental Schedule of Total Net Sales by Application
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($ in thousands) Fiscal Qtr ended June 28, 2024 (F1Q’25) Fiscal Qtr ended September 27, 2024 (F2Q’25) Fiscal Qtr ended December 27, 2024 (F3Q’25) Fiscal Qtr ended March 28, 2025 (F4Q’25) Automotive $127,394 $139,680 $128,637 $139,494 Industrial and Other 39,525 47,711 49,235 53,330 Total Net Sales $166,919 $187,391 $177,872 $192,824 Net Sales by Application* 42 *During the preparation of the fourth quarter fiscal year 2025 interim condensed consolidated financial statements, the Company identified an immaterial misclassification of net sales by market, whereby customer returns and sales allowances were incorrectly classified by market between Automotive and Industrial and Other in prior periods. There was no impact to previously reported total net sales or net loss in any of the periods.
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Allegro’s History and Relationship with Sanken 43
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Allegro’s History and Relationship with Sanken Sanken Electric has been a good owner of Allegro MicroSystems shares for 35 years, allowing Allegro to pursue a standalone business strategy 1990 Sanken acquired the semiconductor division of Sprague Electric Company to expand its U.S. operations and strengthen its worldwide presence 2017 Sanken sold 28.8% of its ownership in Allegro to One Equity Partners __ Sanken no longer the majority of Allegro Board members 2020 Allegro went public on the Nasdaq exchange as ALGM on October 29, 2020 2024 In July of 2024, Allegro repurchased 39M shares of its stock from Sanken, reducing Sanken’s ownership from 51.5% to 32.5% Operations Allegro is an independent publicly traded company • Allegro is not a “controlled company” • Sanken is required to vote with the majority of the Allegro Board • Currently only one Sanken insider is on Allegro’s Board (plus an observer) • Sanken and Allegro do not have a significant operational business relationship following the transition of our distribution relationship with Sanken to third-party distributors in FY24 • Sanken and Allegro each own shares in Polar Semiconductor, but neither Sanken nor Allegro have a controlling interest in Polar Semiconductor (Allegro’s holdings at 10%) 44 History
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Thank You. View product information, datasheets, technical information, order samples and evaluation boards at allegromicro.com