Financial Results
First Quarter Fiscal 2018©2017 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 regarding their features, availability, functionality, or compatibility,
are provided for informational purposes only and do not modify the warranty, if any, applicable to any
product. Drawings may not be to scale. Micron, the Micron logo, and all other Micron trademarks are theproperty of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Safe Harbor Statement
During the course of this meeting, we may make projections or other forwardlooking statements regarding future events or the future financial performance ofthe Company and the industry. We wish to caution you that such statements arepredictions and that actual events or results may differ materially. We refer you tothe documents the Company files from time to time with the Securities andExchange Commission, specifically the Company’s most recent Form 10-K andForm 10-Q. These documents contain and identify important factors that could
cause the actual results for the Company to differ materially from those containedin our projections or forward-looking statements. These certain factors can befound at http://www.micron.com/certainfactors. Although we believe that theexpectations reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance, or achievements. We areunder no duty to update any of the forward-looking statements after the date of thepresentation to conform these statements to actual results.

2December 19, 2017

Sanjay Mehrotra
President and CEO

3

Executing on FY-18 Strategic Objectives
Cost
Competitiveness

4Achieved yield maturity on 1X nm DRAM & 64L 3D NAND

High-Value
Solutions

Delivered record SSD revenues, increasing our share

Execution
Excellence

Introduced industry’s fastest, high-density 32 GB NVDIMM-N

TalentAnnounced Manish Bhatia to lead Global Operations

Strengthening
Balance Sheet

Retired ~$2.4B debt, executing our de-leveraging plans

December 19, 2017

Key Market Trends and Accomplishments
Datacenter▪ Cloud/Enterprise customers driving robust memory & storage demand▪ SSD revenue to Cloud/Enterprise customers up 50% Q/Q▪ DRAM bit shipments to Cloud/Enterprise up >50% Y/YMobile▪ Increasing device functionality driving higher mobile memory & storage content▪ Strengthening portfolio with LPDRAM, MCP and discrete managed NAND
▪ Shipped initial samples of 64-layer 3D NAND discrete UFS solution

Embedded▪ Edge devices requiring higher performance memory & managed storage solutions▪ Enhancing Automotive positions with a key autonomous driving platform win▪ Consumer/Industrial strength driven by home automation & edge computing▪ Growing demand for graphics products extending beyond gamingGraphics
5▪ Record quarterly revenue fueled by eSports, gaming and cryptocurrency▪ Ramping16 Gb/s GDDR6 in 2018 for Graphics, Automotive & NetworkingDecember 19, 2017

Manufacturing & Technology - Progressing to Plans▪ Successfully deploying advanced technologies into production– Achieved mature yields on 1X nm DRAM and 64L 3D NAND
– Expect to achieve 1X nm DRAM bit crossover exiting CY-18– Expect to achieve 64L 3D NAND bit crossover in 2H FY-18▪ Focused on driving operational efficiencies and cost competitiveness– Expect meaningful output from Taiwan back-end test & assembly facility by end FY-18– FY-18 capital investment plans remain on-track▪ Development of next generation technologies advancing well
– Expect initial output on 1Y nm DRAM and 3rd generation 3D NAND by 2H CY-18– Resourcing 3D XPoint product development to address future opportunities

6

December 19, 2017

Industry Outlook▪ Healthy market environment with broad demand drivers

DRAM▪ CY-18 Industry supply bit growth ~20%
▪ FY-18 Micron bit growth slightly below industry▪ Increasing SSD adoption across client and datacenterNAND▪ CY-18 Industry supply bit growth approaching 50%▪ FY-18 Micron bit growth somewhat above industry

7December 19, 2017

Ernie Maddock
Chief Financial Officer

8

FQ1 2018 Financial Results Summary▪ Revenue $6.80 billion– DRAM: 67% of total FQ1 revenue– Trade NAND: 27% of total FQ1 revenue▪ GAAP results– Gross margin: 55%– Net income: $2.68 billion– Diluted EPS: $2.19▪ Non-GAAP results– Gross margin: 55%– Net income: $2.99 billion– Diluted EPS: $2.45▪ Operating expenses of $612 million
9December 19, 2017

Compute & Networking Business Unit
FQ1-18

Revenue $% of total company revenue

Operating income $Operating income %FQ4-17

FQ1-17

3.21B $

2.85B $

1.47B

47%

46%

37%

1.91B $

1.60B $

204M

60%

56%

14%

CNBU

▪ Revenue up 13% Q/Q and more than double Y/Y▪ Record performance driven by increasing server memory content

10

December 19, 2017

Storage Business Unit
FQ1-18

Revenue $% of total company revenue

Operating income (loss) $Operating income (loss) %FQ4-17

FQ1-17

1.38B $

1.30B $

860M

20%21%22%

400M $

250M $(45)M

29%

19%

(5)%

SBU

▪ Revenue increased 61% Y/Y due to increased SSD market share▪ Record quarterly sales of SSDs in FQ1-18

11December 19, 2017

Mobile Business Unit
FQ1-18

Revenue $% of total company revenue

Operating income $Operating income %FQ4-17

FQ1-17

1.37B $

1.18B $

1.03B

20%

19%

26%

505M $

364M $

89M

37%

31%

9%

▪ Revenue up 16% Q/Q and 32% Y/Y▪ Strength from LPDRAM and managed NAND offerings

12December 19, 2017

MBU

Embedded Business Unit
FQ1-18

Revenue $FQ1-17

830M $

827M $

578M

12%

13%

15%

342M $

348M $

178M

41%

42%

31%

% of total company revenue

Operating income $FQ4-17

Operating income %▪ Revenue flat Q/Q and up 44% Y/Y▪ Strong demand trends from automotive to edge devices

13December 19, 2017

EBU

Other Financial Metrics▪ Operating cash flow
– $3.6 billion in FQ1-18▪ Capital expenditures, net of partner contributions– $1.9 billion spent in FQ1-18▪ Free cash flow*– $1.7 billion in FQ1-18▪ Cash, marketable investments & restricted cash
– $6.6 billion at end FQ1-18▪ Face value debt
– $9.3 billion at end FQ1-18– Retired $2.4B in principal debt in FQ1-18* Free cash flow consists of cash provided by operating activities less investments in capital expenditures, net of partner contributions.

14

December 19, 2017

FQ2 2018 GuidanceNon-GAAP
FQ2-18 Guidance$6.80 – $7.20 billion

Revenue

54% – 58%

Gross margin
Operating expenses$625 – $675 million

Operating income$3.25 – $3.45 billion$2.51 – $2.65

Diluted EPS*

*Based on 1,241 million diluted shares15

December 19, 2017

Q&A16Financial Summary
Non-GAAP
Dollars in millions, except per share% of Sales

FQ4-17% of Sales

FQ1-17% of Sales

Net sales

6,803

100%

6,138

100%

3,970

100%

Gross margin

3,769

55%

3,147

51%

1,032

26%

Operating income

3,157

46%

2,546

41%

438

11%

Income tax (provision) benefit

17

FQ1-18(91)(60)44%

Net income attributable to Micron

2,994

Diluted earnings per share

2.45

2.02

0.32

Cash provided by operating activities

3,636

3,203

1,138

Cash, marketable investments, andrestricted cash

6,610

6,152

4,396

December 19, 2017

2,386(18)
39%

335

8%

Non-GAAP Reconciliations

18Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts
GAAP net income (loss) attributable to Micron
Non-GAAP adjustments:
Stock-based compensation$

FQ4-172,368 $

FQ1-17
180

51

57

46—
6291959311(27)
32
37
123—
45
32
2124

23316
2,994 $

(107)
18
2,386 $

14155
335

GAAP shares used in diluted EPS calculations
Effect of capped calls and other adjustments

1,225(5)1,187(6)1,091(29)Non-GAAP shares used in diluted EPS calculations

1,220

1,181

1,062$

2.19 $

1.99 $

0.16$

0.26
2.45 $

0.03
2.02 $

0.16
0.32

Flow-through of Inotera inventory step up
Restructure and asset impairments
Amortization of debt discount and other costs
Loss on debt repurchases and conversions(Gain) loss from changes in currency exchange rates
Other
Estimated tax effects of above and changes in net deferred income taxes
Total non-GAAP adjustments
Non-GAAP net income (loss) attributable to Micron

GAAP diluted earnings (loss) per share
Effects of above
Non-GAAP diluted earnings (loss) per share

19

FQ1-182,678 $

December 19, 2017$

Consolidated Statement of Operations
FQ1 2018 Non-GAAP Reconciliation
Amounts in millions
Net sales
Cost of goods sold
Gross margin$

Selling, general, and administrative

191

B

173

Research and development
Other operating (income) expense
Total operating expenses
Operating income

448
11650
3,097

(14) C,H(6) D(38)
60

434
5612
3,157

Interest expense, net(101)29E(72)Other non-operating income (expense), net(204)

204

F,G—

Income tax (provision) benefit
Equity in net income (loss) of equity method investees
Net income
Net income attributable to noncontrolling interests

2,792(114)
—
2,678
—

293
23
—
316
—

2,678

316

Net income attributable to Micron

20

GAAP
Adjustments
Non-GAAP
6,803 $
—
$
6,803
3,056
(22) A,H
3,034
3,747
22
3,769

December 19, 2017

(18)

I

3,085(91)
—
2,994
—
2,994

Consolidated Statement of Operations
FQ1 2018 Non-GAAP Reconciliation (continued)
Amounts in millions
ABCD

Stock-based compensation – cost of goods soldStock-based compensation – sales, general, and administrative
Stock-based compensation – research and development
Restructure and asset impairments

EF

Amortization of debt discount and other costs
Loss on debt repurchases and conversions

29195

GHI(Gain) loss from changes in currency exchange rates
Other
Estimated tax effects of above and non-cash changes in net deferred income taxes

9323316$$21

December 19, 2017

20
18136

Summary Key Data

22

Non-GAAP Financial Data and Guidance% of Revenue

FQ1-18

FQ1-18 Non-GAAP(amounts in millions,except per share)

FQ1-17DRAM

67%61%

Trade NAND*

27%32%

Revenue $Gross margin% Sales Volume
ChangeDRAM
Trade NAND*% ASP Change
DRAM
Trade NAND*

Gross Margin

FQ1-18Q/Q
increased upper
single digit %increased mid
single digit %FQ1-18Y/Y
increased lower
20% range
increased upper
40% range

FQ1-18Q/Q
increased mid
single digit %declined low
single digit %FQ1-18Y/Y
increased upper
50% range
relativelyunchanged

FQ1-18

FQ1-1755%$6.80 – $7.20 billion
54% – 58%

Operating expenses $612$625 – $675 million

Operating income $3,157$3.25 – $3.45 billion

Earnings per share $2.45$2.51 – $2.65

FQ1-18 Non-GAAP(amountsin millions)
Net interest expense $FQ2-18 Non-GAAP Estimates

72~$45 million

1,220~1,241 millionTax (provision) benefit $(91)~($105 million)

Operating cash flow $

3,636

—

Diluted shares

DRAM

62%

28%

Depreciation and amortization $

1,087

—

Trade NAND*

49%

23%

Capital expenditures(Capital cash flow) (a) $1,921

FY-18: $7.5 billion +/- 5%

See Non-GAAP reconciliations*Trade NAND excludes products sold to Intel through IMFT under a long-term supply agreement at prices approximating cost.
(a) Net of amounts funded by partners

23

6,803

FQ2-18 Non-GAAP GuidanceDecember 19, 2017

Convertible Notes Dilution Overview
FQ1 2018 (shares in millions)
Stock Price

$

40 $

41 $

42 $

43 $

44 $

45 $

46 $

47 $

48 $

49 $

50

2032 C Notes
2032 D Notes
2033 E Notes
2033 F Notes
2043 G Notes
Total dilutive shares

14134201061

14
13
420
1061

14144201163

14144201163

1414420
1264

14
14421
1265

14
14
521
1367

14
14521
1367

14
14
521
1468

14
14521
1468

15
14
521
1570

Benefit from capped call
Net dilution

(8)
53(8)
53(7)
56(7)
56(7)
57

(7)
58

(7)
60

(7)
60

(7)
61

(6)
62

(6)
64

Note: At the end of FQ1-18 market price of Micron’s stock closed at $42.39/share

24

December 19, 2017