Financial
results
FQ3 2023

Safe 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 the Company 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 from time to time with the Securities andExchange 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 materiallyfrom those contained in our projections or forward-looking statements. These certain factors can be found at
micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking
statements are reasonable, 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 thesestatements to actual results.

June 28, 2023

2

Sanjay Mehrotra
President and CEO

June 28, 2023

3

Overview• Micron delivered fiscal third quarter revenue within our guidance
range, with gross margin and EPS above the range.

• We have increased confidence that the industry has passed thebottom for quarterly revenue and year-on-year revenue growth.

• The ongoing improvement of customer inventories and content
growth are driving higher industry demand, while production cuts
across the industry continue to help reduce excess supply.

• Our technology leadership and strengthening product portfolio
position us well across diverse growth markets, including AI andmemory-centric computing.

• As a result, pricing trends are improving.

• Beyond this downturn, we expect to see record TAM in calendar
2025 along with a return to more normalized levels of profitability.

June 28, 2023

4

Update on business in China• The impact of the May 21st decision by the Cyberspace Administrationof China (CAC) on the business of Micron remains uncertain and fluid.
• Several Micron customers, including mobile OEMs, have been contacted bycertain Critical Information Infrastructure (CII) operators or representativesof the government in China concerning the future use of Micron products.
• Micron’s revenue with companies headquartered in mainland China
and Hong Kong, including direct sales as well as indirect sales
through distributors, accounts for approximately a quarter of Micron’sworldwide revenue and remains the principal exposure.
• We currently estimate that approximately half of that China-headquarteredcustomer revenue, which equates to a low-double-digit percentage of Micron’sworldwide revenue, is at risk of being impacted.
• Micron is working to mitigate this impact over time and expects increased
quarter-to-quarter revenue variability. Micron’s long-term goal is to retain its
worldwide DRAM and NAND share.

June 28, 2023

5

Technology & production• Micron continues to lead the industry in both DRAM and NAND technology. We areinvesting prudently to maintain our technology competitiveness while managing capex,
node ramps and wafer start reductions to reduce our bit supply and align it with demand.
• Our industry-leading 1-beta DRAM and 232-layer NAND nodes are achieving world-classyields, and yield ramp has been faster than any of our prior nodes.
• These leadership nodes provide a strong cost capability, along with best-in-class power andperformance specifications that will be leveraged across the portfolio of DRAM and NAND
products.
• In fiscal Q3, we achieved several important product qualifications on these advanced nodes
and are well positioned to ramp them in fiscal 2024.
• We are also making good progress towards the introduction of our EUV-based 1-gamma
node in 2025, which will be manufactured first in our Taiwan site, where we already have
EUV capability installed and operating in preparation for this ramp.
• In fiscal Q3, we announced plans to bring EUV technology to Japan, with support from theJapanese government. Micron will be the first company to bring EUV technology to Japanfor production.

June 28, 2023

6

Backend investments• We are advancing our global assembly and test network in order to support our
product portfolio and extend our ability to deliver on global customer demand.
• In China, we announced an investment of approximately $600M over the next
several years in our operations in Xi’an.

• As a part of this investment, we decided to purchase the assembly equipmentof Powertech Semiconductor Xi’an. We also intend to construct a new building
at our Xi’an site.
• In India, with the strong support of the Indian government, we will build a newassembly and test facility in Gujarat to address demand for the latter half of thisdecade.
• We are also increasing our investments in assembly and test capacity in
Taiwan for high-bandwidth memory products as we gear up for stronger
demand in this segment driven by the AI wave.

June 28, 2023

7

End market highlights
Data
center• Strong sequential revenue growth in both cloud and enterprise in fiscal Q3
driven by some recovery from depressed sales levels in fiscal Q2.
• Generative AI is driving higher-than-expected industry demand for memoryand storage for AI servers, while traditional server demand for mainstream
data center applications continues to be lackluster. AI servers have 6x-8x
the DRAM content of a regular server and 3x the NAND content.
• NVIDIA’s DGX GH200 supercluster shows how memory-intensive AI
workloads can be. It provides developers the ability to support giant models
with a massive, shared memory space of 144TB, of which a significant
majority is enabled by a joint development project with Micron. We areproud to pioneer this differentiated LP DRAM innovation to deliversignificant reduction in data center power consumption compared to DDRbased solutions – helping to support customers’ green initiatives.
• HBM: The customer response has been strong, and we believe our productdelivers significantly higher bandwidth than competing solutions andestablishes the new benchmark in performance and power
consumption. We expect to begin mass production ramp for this product inearly CY24, and to achieve meaningful revenues in FY24.

• DDR5 (D5): Our D5 percentage of DRAM shipments has more thandoubled from Q2 to Q3, and we expect Micron D5 volume to cross over D4
at the end of first calendar quarter of 2024 versus mid-calendar 2024 for theindustry.
• We are also making good progress on 1-beta based high-density 128GB D5
modules using a 32Gb die that optimizes cost and performance. We expect
these high-density modules to ramp in calendar Q2 of 2024 with significant
cost improvements over today's TSV-based solutions in the industry.

• Data center SSDs: our entire portfolio is now on 176-layer or 232-layer
NAND• In fiscal Q3, we launched the world’s first 200+ layer NAND data center
SSD, and qualification is in progress at multiple key customers to support AI
cluster installations. We have already passed qualification of this product ata critical server OEM partner.
• We also launched our “extreme endurance” data center SSD, which offers
superior scalability and affordability versus hard drives.

June 28, 2023

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End market highlights
PC andgraphics• PC: Forecast CY23 PC unit volume to decline by a low double-digit % YoY,
with PC units to be below the pre-COVID levels last seen in 2019.
• We are well positioned for the ongoing industry transition to D5. Industry
client D5 mix is expected to crossover from D4 in early calendar 2024.

• In fiscal Q3, we achieved record quarterly client SSD bit shipments, driven
by share growth in client SSDs
• Our SSD QLC bit shipment mix reached a new record for the third
consecutive quarter, with growth in both client and consumer.
• Launched Crucial T700, the world’s fastest Gen5 PCIe consumer SSD, builtwith our 232-layer NAND.
• Graphics: Analysts continue to expect graphics’ TAM growth CAGR to
outpace the broader market, supported by applications across client anddata center. We expect customer inventories to normalize in calendar Q3.
• We plan to introduce our next-generation G7 product on our industryleading 1-beta node in the first half of CY24.

Mobile andintelligent edge
• Mobile: Now expect CY23 smartphone unit volumes to be down by a midsingle digit % YoY. While units are weaker, we are seeing stronger memory
content growth driven by mix shift towards premium phones and elasticity.
• In FQ3, we achieved key mobile customer qualifications on 1-beta based
LP5X and started high-volume revenue shipments to tier-1 OEMs.
• We achieved significant milestones in UFS with the qualification and ramp
of a high-capacity uMCP5 featuring 16GB of DRAM and 512GB of NAND.
We have also started to sample a new UFS4 product based on our latest
232-layer NAND technology• Automotive: FQ3 revenue reached another quarterly record and grew by ahigh-single-digit % YoY. Expect growth in auto memory demand for the 2H
of CY23, driven by easing non-memory supply, normalizing customer
inventory levels, and increasing memory content per vehicle.
• Industrial: Market saw early signs of recovery in fiscal Q3. We expect an
improvement in demand in the 2H of CY23. Industrial customers continue
to adopt and implement IoT, AI, and machine learning in the factory.

June 28, 2023

9

Outlook and actions• Expectations for calendar 2023 industry bit demand growth have reduced to
low-to-mid single digits in DRAM and to high-single digits in NAND, which are
well below the expected long-term CAGR of mid-teens percentage range in
DRAM and low 20s percentage range in NAND.
• We continue to expect stronger industry bit shipments for DRAM and NAND in
the second half of the calendar year, driven by secular content growth andcontinued improvement in customer inventory.
• We see DRAM and NAND supply growth in calendar 2023 to be negative forthe industry as utilization and capex cuts are impacting supply growth.
• While supply demand balance is improving, due to the excess inventory,
profitability and cash flow will remain extremely challenged for some time.
• We expect Micron’s year-on-year bit supply growth to be meaningfully
negative for DRAM, and to produce fewer NAND bits in calendar 2023 thanin calendar 2022.

Micron Actions:• We have taken decisive
actions to bring our supply
back in balance with demand.
• Our fiscal 2023 capex plan of$7B is down more than 40%
from last year, with WFE
down more than 50%. We
continue to expect fiscal 2024
WFE to be down year on year.
• Recently, we have further
reduced wafer starts toapproach 30% in both DRAM
and NAND. We now expectthat reduced wafer starts willcontinue well intocalendar 2024.

June 28, 2023

10Mark Murphy
Chief Financial Officer

June 28, 2023

11

FQ3-23 revenue

Revenue up 2% Q/Q
and down 57% Y/Y

June 28, 2023

12

Performance by technology

DRAM

NAND

• 71% of total revenue in FQ3-23• 27% of total revenue in FQ3-23• Revenue down 2% Q/Q• Revenue up 14% Q/Q• Bit shipments increased in the 10-percentange
range Q/Q

• Bit shipments increased in the upper 30percentage range Q/Q• ASPs declined approximately 10% Q/Q• ASPs declined in the mid-teens percentage
range Q/Q

June 28, 2023

13

Revenue by business unit
Amounts in millions

FQ3-23

FQ2-23

Q/Q % Change

FQ3-22

Y/Y % Change

Compute and Networking (CNBU)$1,389$1,375

1%$3,895(64%)

Embedded (EBU)

$912

$865

5%

$1,435(36%)

Mobile (MBU)

$819

$945

(13%)

$1,967(58%)

Storage (SBU)

$627

$507

24%

$1,341(53%)

June 28, 2023

14

FQ3-23
Non-GAAP Operating Results
Fiscal third quarter results were impacted by~$400 million of inventory write downs, impacting
EPS by $0.37 per diluted share
Revenue: $3.8 billion
Gross margin: (16%)
Operating expenses: $866 million
Operating income (loss): ($1.5 billion)
Net income (loss): ($1.6 billion)
Diluted earnings (loss) per share: ($1.43)
Cash from operations (GAAP): $24 million

See non-GAAP reconciliations
June 28, 2023

15

Cash flow and capital allocation
From FY-20 to FQ3-23:• $4.2 billion towards repurchasing 63 million shares• ~$300 million toward settling convert premiums
which reduced diluted share count by 5 million
shares• $5.3 billion returned to shareholders from share
repurchases, convert premiums, and dividends

Cash flowfrom operations

FQ3-23: $24M (1% of revenue)

Net CapEx1

FQ3-23: CapEx of $1.4B
FY-23: CapEx guidance of ~$7.0B

FCF*

FQ3-23: Negative $1.4B

Buybacks

FQ3-23: Temporarily suspended

Dividends

Dividend payment of $0.115 per share will be
paid on July 25th

Liquidity2$13.9B in liquidity at end of FQ3-23

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*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.

June 28, 2023

16

FQ4-23 guidanceNon-GAAP
Revenue$3.90 billion ± $200 million

Gross margin(10.5%) ± 2.5%

Operating expenses$845 million ± $15 million

Diluted earnings (loss) per share*($1.19) ± $0.07*Based on ~1.10 billion diluted shares
June 28, 2023

17

Other key data

June 28, 2023

18

Financial Summary
Non-GAAP
Amounts in millions, except per share
Revenue

Gross margin
Operating income (loss)
Income tax (provision) benefit

FQ3-23% ofRevenue

FQ2-23% ofRevenue

FQ3-22$3,752100%$3,693100%$8,642

100%

(603)

(16%)

(1,161)

(31%)

4,097

47%

(1,469)(39%)(2,077)

(56%)

3,144

36%

(102)

(53)

(1,565)

Diluted earnings (loss) per share(1.43)(1.91)

2.59

24

343

3,838

11,397

12,11911,977

Cash, marketable investments, andrestricted cash (GAAP)(42%)(2,081)(193)

Net income (loss)

Cash provided by operating
activities (GAAP)% of
Revenue

(56%)

2,939

34%

See non-GAAP reconciliations

June 28, 2023

19

Non-GAAP Financial Data and Guidance% of Revenue

FQ3-23 Non-GAAP

FQ3-23

DRAM

71%

NAND

27%

Revenue$

Gross margin% Sales Volume Change

FQ3-23 Q/Q

DRAM

Increased in the
10-percentage range

NAND

Increased in the upper
30-percentage range% ASP Change
DRAM

NAND

FQ3-23 Q/Q
Declined byapproximately 10%
Declined in the mid-teens
percentage range

FQ4-23
Non-GAAP Guidance(amounts in millions,
except per share)

3,752$3.90 billion ± $200 million(16%)(10.5%) ± 2.5%

Operating expenses$

866$845 million ± $15 million

Diluted earnings (loss)
per share$(1.43)($1.19) ± $0.07

FQ4-23
Non-GAAP Estimates

FQ3-23 Non-GAAP(amounts in millions)

Diluted shares

1,094~1.10 billion~($40) million

Income tax (provision) benefit

$

(102)

Cash from operations (GAAP)

$

24

—

Depreciation and amortization

$

1,956

—

Investments in capex, net(capital cash flow)

$

1,379

FY-23: ~$7.0 billion

See non-GAAP reconciliations

June 28, 2023

20

Revenue by Technology

DRAM

% of
Revenue

FQ3-23

Amounts in millions

2,672

71%

NAND

1,013

Other
Total

$

$

% of
Revenue

FQ2-23
$

2,722

74%

27%

885

67

2%

3,752

100%

$

% of
Revenue

FQ3-22
$

6,271

73%

24%

2,288

26%

86

2%

83

1%

3,693

100%

8,642

100%

$

Percentages of total revenue may not total 100% due to rounding.
June 28, 2023

21

Non-GAAP
reconciliations

June 28, 2023

22

Consolidated results
Non-GAAP reconciliations
Amounts in millions
GAAP gross margin

FQ3-23$

FQ2-23(668)$

FQ3-22(1,206)$

4,035

Stock-based compensation

60

41

57

Other

5

4

5

Non-GAAP gross margin

$

(603)

$

(1,161)$

4,097

GAAP operating expenses

$

1,093

$

1,097

$

1,031

Stock-based compensation

(91)

(95)

(78)

Restructure and asset impairments

(68)

(86)

—

Litigation contingency accrual

(68)

—

—

Non-GAAP operating expenses

$

866

$

916

$

953

GAAP operating income (loss)$(1,761)$(2,303)$

3,004

Stock-based compensation

151

136

135

Restructure and asset impairments

68

86

—

Litigation contingency accrual

68

—

—

Other

5

4

5

Non-GAAP operating income (loss)$(1,469)$(2,077)$

3,144

June 28, 2023

23

Consolidated results
Non-GAAP reconciliations
Amounts in millions
GAAP cost of goods sold

FQ3-23$

FQ2-234,420$

FQ3-22

4,899

$

4,607

Stock-based compensation

(60)

(41)

(57)

Other

(5)

(4)

(5)

Non-GAAP cost of goods sold

$

4,355

$

4,854

$

4,545

GAAP research and development

$

758

$

788

$

773

Stock-based compensation

(57)

(59)

(45)

Non-GAAP research and development

$

701

$

729

$

728

GAAP selling, general, and administrative

$

219

$

231

$

264

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

(34)
$

185

(36)
$

195

(33)
$

231

June 28, 2023

24

Consolidated results
Non-GAAP reconciliations
Amounts in millions
GAAP net income (loss)
Stock-based compensation

FQ3-23$

FQ2-23(1,896)151$

FQ3-22(2,312)
136

$

2,626
135

Restructure and asset impairments

68

86

—

Litigation contingency accrual
Amortization of debt discount and other costs
Other

68
2
5

—

—

4
4

8
5

Impact of Idaho income tax reform

—

—

189

37
(1,565)1(2,081)

(24)
2,939

Estimated tax effects of above and other tax adjustments
Non-GAAP net income (loss)$

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

GAAP income tax (provision) benefit

$

$

8
2
10

$

(139)

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

$

$

$
$

$

30
4
34

$

24
(8)
16

$

(54)

$

(358)

—

—

189

37
(102)

1
(53)

(24)
(193)

$

$

June 28, 2023

25

Consolidated results
Non-GAAP reconciliations
Amounts in millions

FQ3-23

FQ2-23FQ3-22GAAP shares used in diluted EPS calculations

1,094

1,091

1,121

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

—
1,094

—
1,091

15
1,136

GAAP diluted earnings (loss) per share
Effects of non-GAAP adjustments
Non-GAAP diluted earnings (loss) per share$

Net cash provided by operating activities
Expenditures for property, plant, and equipment
Proceeds from sales of property, plant, and equipment
Payments on equipment purchase contracts
Amounts funded by partners
Investments in capital expenditures, net
Adjusted free cash flow$$

(1.73)
0.30(1.43)$$(2.12)
0.21(1.91)

$

2.34
0.25
2.59

$

24

$

343

$

3,838

$

(1,561)34(36)
184(1,379)(1,355)$(2,205)17(29)
62(2,155)(1,812)$(2,578)39(27)
38(2,528)1,310)

June 28, 2023

26

FQ4-23 guidanceNon-GAAP reconciliations
GAAP

Adjustments

Non-GAAP

Revenue$3.90 billion ± $200 million—$3.90 billion ± $200 million

Gross margin(12.5%) ± 2.5%

2.0%

A

(10.5%) ± 2.5%

Operating expenses$946 million ± $15 million$101 million

B$845 million ± $15 million

Diluted earnings (loss) per share*($1.34) ± $0.07

$0.15

A,B,C

($1.19) ± $0.07

Non-GAAP 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

59

B

Stock-based compensation – selling, general, and administrative42

C

Tax effects of the above items and other tax adjustments

5

$

$

57

167

*GAAP and Non-GAAP earnings (loss) per share based on approximately 1.10 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 othersignificant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

June 28, 2023

27

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