Financial Results
FQ2 2023© 2023 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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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 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/certainfactors.
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.

March 28, 2023

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Sanjay Mehrotra
President and CEO

March 28, 2023

4

Overview▪

Delivered fiscal second quarter revenue within our guidance range; margins
and EPS were also within the range (excl. impact of inventory write downs).

▪

Believe that customer inventories have reduced in several end markets and see
gradually improving supply-demand balance in the months ahead.

▪

Excluding the impact of inventory write downs, we believe our balance sheet DIO
has peaked in fiscal Q2 and we are close to a transition to sequential revenue
growth in our quarterly results.

▪

We have taken substantial supply reduction and austerity measures, including
executing a company-wide reduction in force. We are navigating the near-term
difficult environment with our strong technology position, deep manufacturingexpertise, strengthening product portfolio, solid balance sheet and incredibly
talented team.

▪

Beyond this downturn, we anticipate a return to normalized growth and profitability
in line with our long-term financial model.

March 28, 2023

5Technology▪ We are investing prudently to maintain our technology competitiveness, while
managing node ramps to reduce our bit supply and align it with demand.
▪ In DRAM, 1-alpha represents most of our DRAM bit production, and we continue tomake great progress in initiating our transition to 1-beta.
▪ In NAND, 176-layer and 232-layer now represent more than 90% of NAND bit
production. QLC accounted for over 20% of our NAND bit production andshipments in fiscal Q2.
▪ Yields on 1-alpha DRAM and 176-layer NAND have reached levels that are now
higher than any node in our history. In addition, both our 1-beta DRAM and 232layer NAND have reached targeted yields ahead of schedule and faster than any ofour prior nodes.
▪ Making good progress towards the introduction of our EUV based 1-gamma nodein 2025. Similar to our 1-alpha and 1-beta nodes, we expect this node to provide us
with competitive performance, power, cost and density improvements.

March 28, 2023

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End Market Highlights

Data Center▪

▪

▪

Believe that our revenue bottomed in fiscal
Q2. Data center customer inventories
should reach relatively healthy levels by
the end of calendar 2023
AI server today can have up to eight times
the DRAM content of a regular server and
up to three times the NAND content
In fiscal Q2, we expanded shipments of
CXL DRAM samples to OEMs that service
enterprise, cloud and HPC workloads▪

Shipping D5 in high volume to data centercustomers and achieved our first qual forour 1-alpha 24Gb D5 product▪

Began volume production and shipmentsof the fastest PCIe Gen4x4 NVMe SSD in
the market, which excels in AI and highperformance computing workloads

March 28, 2023

PC & Graphics

Mobile & Intelligent Edge▪

PC: now forecast calendar 2023 PC units to
decline by mid-single digit percentage▪

Mobile: now expect calendar 2023
smartphone units to be down slightly YoY▪

Although still elevated, client customer
inventories have improved meaningfully,
and we expect increased bit demand in thesecond half of the fiscal year▪

Expect mobile customer inventory to improvethrough calendar 2023, and expect growth inbit shipments in second half of our fiscal year▪

▪

Client D4 to D5 mix crossover expected inearly-to-mid calendar 2024

Expect revenue later this fiscal year for ourindustry-leading 1-beta 16Gb LP5X▪

Displayed eight flagship mobile customer
design wins at Mobile World Congress▪

Auto: revenues grew ~5% YoY; expect auto
demand growth to continue in second half.
Qualified industry’s first 176-layer eMMC 5.1
automotive product and began shipping
industry’s first 176-layer UFS 3.1 auto solution▪

Industrial: Customer inventories are startingto stabilize at most customers; expect demand
to improve in the second half of fiscal year▪

Our NAND QLC bit shipment mix reached arecord for the second consecutive quarter▪

Qualified our Micron 2400 SSD, the world’s
only 176-layer QLC SSD qualified at OEMs▪

Graphics: expect demand in the calendar
second half of 2023 to be stronger than thefirst half▪

Our proprietary 16Gb G6X was featured in
the recently launched NVIDIA RTX 4070TI

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Industry Outlook▪

Expectations for calendar 2023 industry bit demand growth have moderated toapproximately 5% in DRAM and low-teens percentage range 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.

▪

The reduction in calendar 2023 demand from our prior forecast is driven by anassessment of customer inventories as well as some degradation in end
market demand.

▪

We expect that improving customer inventories will support sequential bit demand
growth for DRAM and NAND through the calendar year. China’s reopening is also apositive factor for calendar 2023 bit demand.

▪

Now expect that industry bit supply growth for DRAM and NAND in calendar 2023 will
be below demand growth, which will help improve supplier inventories. While the supply
demand balance is expected to gradually improve, due to the high levels of inventories,
industry profitability and free cash flow are likely to remain extremely challenged in thenear term.

▪

Market recovery can accelerate if there is a year-to-year reduction in production, or inother words, negative DRAM and NAND industry bit supply growth in 2023.

March 28, 2023

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Micron’s Actions and Outlook
1. Reducing our supply: Made additional reductions to our fiscal 2023 capex planand now expect to invest ~$7B, down >40% from last year, with WFE down >50%.
In fiscal 2024, we expect WFE to fall further, as we ramp 1-beta and 232-layer
nodes in a capital efficient manner. We have further reduced DRAM and NAND
wafer starts, which are now down by ~25%.
2. Furthering cuts to Opex: Now expect our overall headcount reduction toapproach 15%. This will occur through a combination of workforce reductions which are now largely complete - as well as anticipated attrition through theremainder of the calendar year.
3. Executing to our flat bit share strategy: While we have had to reduce price toremain competitive in the market, we have not done so in an attempt to gain share,as such share changes at customers are generally transitory.
4. Ensuring ample liquidity: We have the strongest balance sheet among the pure-play memory & storage companies. Our strong liquidity will enable us to weather
this downturn while ensuring our product and technology competitiveness.

March 28, 2023

Resulting Outlook:
Expect Micron’s CY23
year-on-year bit
supply growth to bemeaningfully negative for
DRAM. We also expect toproduce fewer NAND bits
in CY23 than in CY22.
Excluding the impact of
inventory write-downs, we
expect Micron’s DIO todecline sequentially going
forward, from its peak inthe second quarter.

9Mark Murphy
Chief Financial Officer

March 28, 2023

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FQ2-23 Revenue$3.7B
Revenue down 10% Q/Q and down 53% Y/Y

March 28, 2023

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Performanceby Technology
74% of total revenue in FQ2-23▪ Revenue down 4% Q/Q▪ Bit shipments increased in the mid-teens percent range Q/Q▪ ASPs declined approximately 20% Q/Q▪

DRAM

24% of total revenue in FQ2-23▪ Revenue down 20% Q/Q▪ Bit shipments increased in the mid-to-high single-digit percent
range Q/Q
▪ ASPs declined in the mid-20s percent range Q/Q▪

NAND
March 28, 2023

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Revenue by Business Unit
FQ2-23

FQ1-23

Q/Q % Change

FQ2-22

Y/Y % Change$1,375$1,746(21%)$3,461(60%)

Mobile (MBU)

$945

$655

44%

$1,875(50%)

Embedded (EBU)$865$1,000(14%)$1,277(32%)

Storage (SBU)

$507

$680

(25%)

$1,171(57%)

Amounts in millions
Compute and Networking (CNBU)

March 28, 2023

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FQ2-23
Non-GAAP Operating Results
Fiscal second quarter results were impacted by$1.43 billion of inventory write downs; EPS impacted
by $1.34 per diluted share
Revenue: $3.7 billion
Gross margin: (31.4%)
Operating expenses: $916 million
Operating income (loss): ($2.1 billion)
Net income (loss): ($2.1 billion)
Diluted earnings (loss) per share: ($1.91)
Cash from operations (GAAP): $343 million
See non-GAAP reconciliations
March 28, 2023

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Cash Flow
and Capital
Allocation
From FY-20 to FQ2-23:$4.2 billion towards repurchasing 63 million shares▪ ~$300 million toward settling convert premiums which
reduced diluted share count by 5 million shares▪ $5.2 billion returned to shareholders from share
repurchases, convert premiums, and dividends

Cash flow fromoperations
Net CapEx1▪

FQ2-23: $343M (9% of revenue)

FQ2-23: CapEx of $2.2B▪ FY-23: CapEx guidance of ~$7.0B
▪

FCF*

▪

FQ2-23: Negative $1.8B

Buybacks▪

FQ2-23: Temporarily suspended

Dividends

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

Liquidity2$14.6B in liquidity at end of FQ2-23▪

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.

March 28, 2023

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FQ3-23 GuidanceNon-GAAP
Revenue$3.70 billion ± $200 million

Gross margin
Operating expenses(21.0%) ± 2.5%$900 million ± $15 million

Diluted earnings (loss) per share*
FQ3-23 guidance assumes ~$500 million of additional write downs associated with new inventory produced during FQ3-23.

*Based on ~1.09 billion diluted shares
March 28, 2023($1.58) ± $0.07

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Other key data
March 28, 2023

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Financial Summary
Non-GAAP

Amounts in millions, except per share

FQ2-23% ofRevenue

FQ1-23% ofRevenue

FQ2-22% ofRevenue

Revenue$3,693100%$4,085100%$7,786100%

Gross margin(1,161)

(31%)

934

23%

3,724

48%

Operating income (loss)(2,077)

(56%)

(65)

(2%)

2,750

35%

Income tax (provision) benefit

(53)

(1)

Net income (loss)(2,081)

Diluted earnings (loss) per share(1.91)(0.04)

2.14

Cash provided by operating activities (GAAP)

343

943

3,628

12,11912,075

11,947

Cash, marketable investments, andrestricted cash (GAAP)

See non-GAAP reconciliations
March 28, 2023

(56%)

(39)

(286)
(1%)

2,444

31%

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Non-GAAP Financial Data and Guidance% of Revenue

FQ2-23 Non-GAAP

FQ2-23

DRAM

74%

NAND

24%

(amounts in millions,
except per share)

Revenue$

3,693

Gross margin% Sales Volume Change

FQ2-23 Q/Q

DRAM

Increased in the mid-teens
percent range

NAND

Increased in the mid-to-highsingle-digit percent range% ASP Change
DRAM

NAND

See non-GAAP reconciliations
March 28, 2023

FQ2-23 Q/Q
Declined by approximately
20%
Declined in the mid-20s
percent range

FQ3-23
Non-GAAP Guidance$3.7 billion ± $200 million(31.4%)(21.0%) ± 2.5%

Operating expenses$

916$900 million ± $15 million

Diluted earnings (loss) per share$(1.91)($1.58) ± $0.07

FQ2-23 Non-GAAP(amounts in millions)

Diluted shares

FQ3-23
Non-GAAP Estimates

1,091~1.09 billion

Income tax (provision) benefit

$

(53)

~($50) million

Cash from operations (GAAP)

$

343

—

Depreciation and amortization

$

1,942

—

Investments in capex, net(capital cash flow)

$

2,155

FY-23: ~$7.0 billion

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Revenue by Technology
DRAM

% of
Revenue

FQ2-23

Amounts in millions

2,722

74%

NAND

885

Other
Total

$

$

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

FQ1-23$% ofRevenue

2,829

69%

24%

1,103

86

2%

3,693

100%

$

% of
Revenue

FQ2-22
$

5,719

73%

27%

1,957

25%

153

4%

110

1%

4,085

100%

7,786

100%

$

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Non-GAAP Reconciliations
March 28, 2023

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

FQ2-23$

FQ1-23(1,206)$

FQ2-22

893

$

3,676

Stock-based compensation

41

36

44

Other

4

5

4

Non-GAAP gross margin$(1,161)

$

934

$

3,724

GAAP operating expenses

$

1,097

$

1,102

$

1,130

Stock-based compensation

(95)

(90)

(75)

Restructure and asset impairments

(86)

(13)

(5)

Other

(76)

$

—
999

$

974

$

(209)

$

2,546

Non-GAAP operating expenses

$

—
916

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

Stock-based compensation

136

126

119

Restructure and asset impairments

86

13

5

Other

4

5

80

Non-GAAP operating income (loss)

March 28, 2023$

(2,077)

$

(65)

$

2,750

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

FQ2-23$

FQ1-23

4,899$

FQ2-22

3,192

$

4,110

Stock-based compensation

(41)

(36)

(44)

Other

(4)

(5)

(4)

Non-GAAP cost of goods sold

$

4,854

$

3,151

$

4,062

GAAP research and development

$

788

$

849

$

792

Stock-based compensation

(59)

(53)

(45)

Other

—

—

(1)

Non-GAAP research and development

$

729

$

796

$

746

GAAP selling, general, and administrative

$

231

$

251

$

263

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

March 28, 2023

(36)
$

195

(37)
$

214

(30)
$

233

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

March 28, 2023

FQ2-23$

FQ1-23(2,312)
136
86

$

4
4
1
(2,081)

$

30

$

4
34

$
$

(54)
1
(53)

$

FQ2-22

(195)
126
13

$

2,263
119
5

$

5
5
7
(39)

$

8
80
(31)
2,444

$

37

$

43

$

5
42

$

(8)
35

$
$

(8)
7
(1)

$
$

(255)
(31)
(286)

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Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ2-23

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

1,091
1,091

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

FQ1-23
1,090
1,090
$

$

(2.12)
0.21(1.91)$

343$(2,205)17(29)
62(2,155)(1,812))

March 28, 2023

FQ2-22
1,130
13
1,143
$

$

(0.18)
0.14(0.04)

$

2.00
0.14
2.14

$

943

$

3,628

$

(2,449)23(47)
2(2,471)(1,528)$(2,611)27(27)
11(2,600)
1,028

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FQ3-23 GuidanceNon-GAAP Reconciliations

GAAP
Revenue

Non-GAAP$3.70 billion ± $200 million—(23.0%) ± 2.5%

~2%A

(21.0%) ± 2.5%

$1.07 billion ± $15 million$166 million

B$900 million ± $15 million($1.79) ± $0.07$0.21

Gross margin
Operating expenses

Adjustments

Diluted earnings (loss) per share*$3.70 billion ± $200 million

A,B,C($1.58) ± $0.07

Adjustments (amounts in millions)A

Stock-based compensation – cost of goods soldA

Other – cost of goods sold

5

B

Stock-based compensation – research and development

62

B

Stock-based compensation – selling, general, and administrative

44

B

Restructure and asset impairments

60

C

Tax effects of the above items and other tax adjustments

5

$

$

55

231

*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.
March 28, 2023

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March 28, 2023