Financial Results
FQ1 2023© 2022 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to change without notice. All information is provided on an “AS IS” basis without warranties of any kind. Statements
regarding products, including statements regarding product features, availability, functionality, or compatibility, are provided for informational purposes only and do not modify the warranty, if any, applicable to any product.
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2Safe Harbor Statement
During the course of this meeting, we may make projections or other forward-looking statements
regarding market demand and supply, future events or the future financial performance of theCompany and the industry. We wish to caution you that such statements are predictions and that
actual events or results may differ materially. We refer you to the documents the Company files fromtime to time with the Securities and Exchange Commission, including the Company’s most recent
Form 10-K and Form 10-Q. These documents contain and identify important factors that could
cause the actual results for the Company to differ materially from those contained in our projections
or forward-looking statements. These certain factors can be found at micron.com/certain factors.
Although we believe that the expectations reflected in the forward-looking statements arereasonable, we cannot guarantee future results, levels of activity, performance, or achievements.
We are under no duty to update any of the forward-looking statements to conform these statements
to actual results.

December 21, 2022

3Sanjay Mehrotra
President and CEO

December 21, 2022

4Overview▪

Delivered fiscal first quarter revenue and EPS within guidance range despitea pricing environment which deteriorated significantly from prior earnings call.

▪

Micron exercising supply discipline by making significant cuts to capex and wafer
starts while maintaining its competitive position. Also taking measures to cut costs andopex across the company.

▪

Customer inventory is impacting near term demand and is expected to continue improving.
Expect most customers to have reduced inventory to relatively healthy levels by mid CY23.
Consequently, expect revenue in second half FY23 to improve from first half.

▪

Expect Micron’s days of inventory to peak in FQ2 and gradually improve over the next fewquarters, as bit shipments improve and supply growth is reduced.

▪

As previously indicated, slowed the ramps of 1-beta DRAM and 232-layer NAND to better alignMicron’s supply with market demand; both nodes offer strong cost reductions.

December 21, 2022

5End Market Highlights

Data Center▪

Expect cloud demand in 2023 to growwell below historical trend, due to thesignificant impact of inventory reductions
at key customers▪

Expect server DDR5 bit shipments tobecome more meaningful in 2H CY23,
with crossover expected in mid-CY24▪

In FQ1, began qualifying 1-alpha 24Gb
DDR5 and validated DDR5 for the new
AMD EPYC™ 9004 Series processors▪

Introduced Micron’s first CXL DRAM
samples to data center customers in FQ1▪

In data center SSDs in FQ1, nearly
doubled the number of customers where
Micron is qualified▪

Completed qualification of 176-layer QLC
with an important enterprise customer

December 21, 2022

PC & Graphics▪

PC: forecast CY22 units to decline in the highteens percentage and expect 2023 PC unit
volume to decline by low to mid single digit %▪

▪

▪

Mobile & Intelligent Edge▪

In FQ1, client and consumer QLC SSDs hadvery strong growth which helped increase ourNAND QLC mix to a new record

Mobile: expect CY22 smartphone unit volumeto decline 10% Y/Y, versus high single digit
decline projection last earnings. Forecast
CY23 smartphone unit volume to be flattish toslightly up Y/Y▪

In December, Micron began shipping theworld’s most advanced client SSD featuring232-layer NAND technology

In FQ1, the majority of mobile DRAM bit
shipments were LP5. Also Micron’s LP5X wasvalidated for Qualcomm’s latest platform▪

Shipped the industry’s first 1-beta DRAM qual
samples with Micron’s 16Gb LP5▪

Auto: revenues grew ~30% Y/Y, just below
FQ4-22 quarterly record. Expect robust growth
in FY23, with ramp of next-gen infotainment
and ADAS driving content▪

Industrial: market continued to soften in FQ1.
Expect volumes to recover in 2H FY23 asinventory levels improve

Micron’s 2550 NVMe SSD demonstrates
superior speed, density, and power savings –enabled by industry leading NAND node▪

Graphics: expect bit growth to outpace thebroader market in CY23▪

Micron continues to drive the industry's
fastest graphics memory with 24Gbps 16Gb
GDDR6X shipping in high-volume production

6Industry Outlook▪

Expect CY22 industry bit demand growth in the low to mid-single digit percentage
range for both DRAM and NAND. For CY23, expect industry demand growth of ~10%in DRAM and ~20% in NAND.

▪

Near term, over next few months, expect gradually improving demand trends formemory as customer inventory levels improve further, new CPU platforms arelaunched, and China’s demand starts to grow as its economy reopens.

▪

Longer term, expect DRAM bit demand CAGR in mid-teens % range and NAND bit
demand CAGR in low to mid 20s % range. Revised down from earlier this year
primarily due to lowered growth expectations from PC and smartphone markets andsome moderation in the strong long-term growth in the cloud.

▪

Expect CY22 industry bit supply growth for both DRAM and NAND to be close to theirrespective long-term demand CAGRs and well above CY22 industry demand growth.
For CY23, expect that DRAM and NAND industry supply growth will be well below theirlong-term CAGRs and also well below expected demand growth in 2023.

▪

Given the significant supply demand mismatch entering CY23, expect industry
profitability will remain challenged throughout 2023.

December 21, 2022

7

Micron’s Actions and Outlook
1) Reducing capex: FY23 capex lowered to a range between $7.0B to $7.5B. Expect
FY23 WFE to be down more than 50% Y/Y. Significantly reducing FY24 capex fromearlier plans to align with the supply-demand environment. Expect FY24 WFE to fallfrom FY23 levels, even as construction spending increases Y/Y.
2) Sharp reduction in wafer starts: As previously announced, Micron reduced wafer
starts for DRAM and NAND by ~20%.
3) Slowing process tech node transitions: Given the decision to slow 1-beta
production ramp, now expect that 1-gamma introduction will be in 2025. Next NAND
node beyond 232-layer will be delayed to align to the new demand & supply outlook.
4) Reducing costs: Project spending to decrease through the year - actively lowering
discretionary spend. Expect to exit FY23 with quarterly opex of around $850M, withadditional savings in COGS in the P&L.

December 21, 2022

Resulting Outlook:
Expect Micron’s CY23
production bit growth
to be negative in
DRAM and up slightly
in NAND. Full impactof the wafer startcuts will be realized
beginning FQ3-23.
Micron’s bit supply in
2024 will be materiallyreduced from theprior trajectory.

8Mark Murphy
Chief Financial Officer

December 21, 2022

9FQ1-23 Revenue$4.1B
Revenue down 39% Q/Q and down 47% Y/Y

December 21, 2022

10Performanceby Technology
69% of total revenue in FQ1-23▪ Revenue down 41% Q/Q and down 49% Y/Y▪ Bit shipments declined in the mid-20 percent range Q/Q▪ ASPs declined in the low-20 percent range Q/Q▪

DRAM

27% of total revenue in FQ1-23▪ Revenue down 35% Q/Q and down 41% Y/Y▪ Bit shipments declined in the mid-teens percent range Q/Q▪ ASPs declined in the low-20 percent range Q/Q▪

NAND
December 21, 2022

11Revenue by Business Unit
FQ1-23

FQ4-22

Q/Q % Change

FQ1-22

Y/Y % Change

Compute and Networking (CNBU)$1,746$2,931-40%$3,406-49%

Embedded (EBU)$1,000$1,303-23%$1,220-18%

Storage (SBU)

$ 680

$ 891

-24%

$1,150-41%

Mobile (MBU)$ 655$1,511-57%$1,907-66%

Amounts in millions

December 21, 2022

12FQ1-23
Non-GAAP Operating Results
Revenue: $4.1 billion

Gross margin: 22.9%
Operating expenses: $999 million
Operating income (loss): ($65) million
Net income (loss): ($39) million
Diluted earnings (loss) per share: ($0.04)
Adjusted EBITDA: $1.8 billion
Cash from operations (GAAP): $943 million

See non-GAAP reconciliations
December 21, 2022

13

Cash Flow
and CapitalAllocation

Cash flow fromoperations

Net CapEx1▪

FQ1-23: $943M (23% of revenue)

FQ1-23: CapEx of $2.5B▪ FY-23: CapEx guidance of $7.0B to $7.5B
▪

FCF*

▪

FQ1-23: Negative $1.5B

Buybacks▪

FQ1-23: $425M (8.6M shares)

Dividends

Dividend payment of $0.115 per share will be
paid on January 19thLiquidity2$14.6B in liquidity at end of FQ1-23

Cash3-Debt$1.8B of net cash at end of FQ1-23

From FY-20 to FQ1-23:$5 billion of free cash flow generated*▪ $4.2 billion towards repurchasing 63 million shares▪ $300 million toward settling convert premiums which
reduced diluted share count by 5 million shares▪ $5.1 billion returned to shareholders from share
repurchases, convert premiums, and dividends▪

1CapEx net of amounts funded by partners and proceeds from sales of property, plant, and equipment
2Cash, short-term and long-term marketable investments, restricted cash, and undrawn revolver capacity
3Cash, short-term and long-term marketable investments, and restricted cash
*Free cash flow is a non-GAAP measure defined as net cash provided by operating activities less investments in capital expenditures net of amounts funded by partners and proceeds from sales of property, plant, and equipment.

December 21, 2022

14

FQ2-23 GuidanceNon-GAAP
Revenue

Gross margin
Operating expenses
Diluted earnings (loss) per share**Based on ~1.09 billion diluted sharesDecember 21, 2022

$3.8 billion ± $200 million

8.5% ± 2.5%$945 million ± $15 million($0.62) ± $0.10

15

Other key data
December 21, 2022

16

Financial Summary
Non-GAAP

Amounts in millions, except per share
Revenue

FQ1-23% ofRevenue

FQ4-22% ofRevenue

FQ1-22% ofRevenue$4,085100%$6,643100%$7,687100%

Gross margin

934

23%

2,676

40%

3,616

47%

Operating income (loss)

(65)

-2%

1,662

25%

2,725

35%

Income tax (provision) benefit(1)

Net income (loss)

(39)

(74)
-1%1,621(240)
24%

2,471

Diluted earnings (loss) per share(0.04)

1.45

2.16

Cash provided by operating activities (GAAP)

943

3,777

3,938

12,097

11,055

11,480Cash, marketable investments, andrestricted cash (GAAP)

See non-GAAP reconciliations
December 21, 2022

32%

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Non-GAAP Financial Data and Guidance% of Revenue

FQ1-23 Non-GAAP

FQ1-23DRAM

69%

NAND

27%

(amounts in millions,except per share)

Revenue$4,085Gross margin% Sales Volume Change

FQ1-23 Q/QDRAM

Declined in the mid-20
percent rangeNAND

Declined in the mid-teens
percent range% ASP Change
DRAMNANDSee non-GAAP reconciliations
December 21, 2022

FQ1-23 Q/Q
Declined in the low-20
percent range
Declined in the low-20
percent range

FQ2-23
Non-GAAP Guidance$3.8 billion ± $200 million

22.9%

8.5% ± 2.5%

Operating expenses$999$945 million ± $15 million

Diluted earnings (loss) per share$(0.04)($0.62) ± $0.10

FQ1-23 Non-GAAP(amounts in millions)

Diluted shares

FQ2-23
Non-GAAP Estimates

1,090~1.09 billion

Income tax (provision) benefit$(1)~($60) million

Cash from operations (GAAP)

$943

—

Depreciation and amortization

$

1,921

—

Investments in capex, net (capitalcash flow)

$

2,471

FY-23: $7.0 billion to $7.5 billion

18

Revenue by Technology
DRAM% ofRevenue

FQ1-23

Amounts in millions

2,829

69%

NAND

1,103

OtherTotal$$

Percentages of total revenue may not total 100% due to rounding.
December 21, 2022

FQ4-22$% ofRevenue

4,809

72%

27%

1,688

153

4%

4,085

100%

$% ofRevenue

FQ1-22$

5,58773%

25%

1,878

24%

1462%

222

3%

6,643

100%

7,687

100%$

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Non-GAAP Reconciliations
December 21, 2022

20

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions
GAAP gross margin

FQ1-23$

FQ4-22893$

FQ1-22

2,622

$

3,565

Stock-based compensation

3649

43

Other

558

Non-GAAP gross margin

$

934

$

2,676$

3,616

GAAP operating expenses$

1,102$

1,101

$

934

Stock-based compensation

(90)

(82)

(73)

Restructure and asset impairments

(13)

(5)

(38)

Other68$—
1,014$

891$

1,521$

2,631

Non-GAAP operating expenses$—999

GAAP operating income (loss)$(209)

Stock-based compensation

126

131116

Restructure and asset impairments

13538

Other55(60)Non-GAAP operating income (loss)

December 21, 2022

$

(65)

$

1,662

$

2,725

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Consolidated Results
Non-GAAP Reconciliations
Amounts in millions
GAAP cost of goods sold

FQ1-23$

FQ4-22

3,192$

FQ1-22

4,021

$

4,122

Stock-based compensation

(36)

(49)

(43)

Other(5)(5)(8)

Non-GAAP cost of goods sold

$

3,151

$

3,967

$

4,071GAAP research and development

$849

$839

$712

Stock-based compensation

(53)

(47)

(38)

Non-GAAP research and development$796$792$674

GAAP selling, general, and administrative

$251

$280

$

259

Stock-based compensation
Non-GAAP selling, general, and administrative

December 21, 2022

(37)
$214

(35)
$245

(35)
$224

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Consolidated Results
Non-GAAP Reconciliations
Amounts in millions
GAAP net income (loss)
Stock-based compensation
Restructure and asset impairments
Amortization of debt discount and other costs(Gain) loss on debt repurchases
Other
Estimated tax effects of above and other tax adjustments
Non-GAAP net income (loss)

FQ1-23$$

GAAP interest (income) expense, netAmortization of debt discount and other costs
Non-GAAP interest (income) expense, net$

GAAP income tax (provision) benefit
Estimated tax effects of non-GAAP adjustments and other tax adjustments
Non-GAAP income tax (provision) benefit

December 21, 2022

FQ4-22(195)126
135—
57(39)

$

$

37
542$$

(8)
7$

(1)

$

1,492
131
56—5(18)
1,621

FQ1-22$$

2,306
116
38
983(60)
(21)
2,471

9615$

$

(56)
(18)

$(219)(21)$(74)$(240)

$$

(35)
9(26)

23

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ1-23

GAAP shares used in diluted EPS calculations
Adjustment for stock-based compensation
Non-GAAP shares used in diluted EPS calculations

1,090
1,090

GAAP diluted earnings (loss) per share
Effects of non-GAAP adjustments
Non-GAAP diluted earnings (loss) per share$GAAP net income (loss)
Interest (income) expense, netProvision (benefit) for income taxes
Depreciation expense and amortization of intangible assets
Non-GAAP adjustments
Stock-based compensation
Restructure and asset impairments(Gain) loss on debt repurchase

$

Other
Adjusted EBITDA

December 21, 2022

FQ4-22$$

FQ1-22

1,106
15
1,121(0.18)
0.14(0.04)

$

(195)
(37)
8
1,921

$

$

1,130
11
1,141

1.35
0.10
1.45$

1,492
(9)
56
1,882

$

$

2.04
0.12
2.16
2,306
35
219
1,671

126
13
—

131
5—

116
38
83

—
1,836

—
3,557

(65)
4,403$$

24

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions
Net cash provided by operating activities

FQ1-23$

Expenditures for property, plant, and equipment

FQ4-22943$

FQ1-22

3,777

$

3,938

(2,449)(3,613)(3,265)

Proceeds from sales of property, plant, and equipment

2330

21

Payments on equipment purchase contracts

(47)

(9)

(78)

2

1155

(2,471)(3,581)(3,267)

Amounts funded by partners
Investments in capital expenditures, net
Adjusted free cash flow$(1,528)

$196

$671)

Amounts in millions
Cash and short-term investments

FQ1-23$Current and noncurrent restricted cash
Long-term marketable investments
Current and long-term debt
Net cashDecember 21, 2022$

FQ4-22

10,581

$

9,331

6877

1,426

1,647(10,265)(6,906)

1,810

$

4,149

25

FQ2-23 GuidanceNon-GAAP Reconciliations

GAAPRevenue

Adjustments$3.8 billion ± $200 million—

7.5% ± 2.5%~1%A

8.5% ± 2.5%

$1.08 billion ± $15 million$137 million

B$945 million ± $15 million($0.79) ± $0.10$0.17

Gross margin
Operating expenses

Non-GAAP

Diluted earnings (loss) per share*$3.8 billion ± $200 million

A,B,C($0.62) ± $0.10

Adjustments (amounts in millions)A

Stock-based compensation – cost of goods soldA

Other – cost of goods sold

4

B

Stock-based compensation – research and development

62

B

Stock-based compensation – selling, general, and administrative

45

B

Restructure and asset impairments

30

CTax effects of the above items and other tax adjustments

8$$40

189

*GAAP and Non-GAAP earnings (loss) per share based on approximately 1.09 billion diluted shares.
The above guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions,and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.
December 21, 2022

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