Financial Results
FQ2 2020©2020 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. Drawings
may not be to scale. Micron, the Micron logo, and all other Micron trademarks are the property 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 forward-looking statements
regarding 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 and Exchange 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 contained in our projections or forwardlooking statements. These certain factors can be found at http://www.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 after the date of thepresentation to conform these statements to actual results.

2

March 25, 2020

Sanjay Mehrotra
President and CEO

3

March 25, 2020

FQ2 Highlights

Strong Q2 results including revenue at high end of guided range
Even as the COVID-19 crisis began to unfold halfway through our quarter

Positive free cash flow for 13 consecutive quarters
A marked improvement from historical cycles and is evidence of the strength of the New Micron

4

March 25, 2020

COVID-19 Update
Micron’s Response▪

Ongoing communication with our suppliers to ensure continuity and identify supply gaps▪

Increased our on-hand inventory of raw materials▪

Increased multi-sourcing of parts to reduce supplier dependence risk▪

Added assembly and test capacity in order to provide redundant manufacturing
capability

Near-term Outlook

5▪

Stronger demand from datacenter due to remote-work economy, increased gaming ande-commerce activity▪

Datacenter demand in all regions looks strong and is leading to supply shortages▪

Recent increase in demand for notebooks to support work-from-home and virtual
learning▪

Smartphone, consumer electronics and auto demand below prior expectations for2HFY2020▪

Moving supply from smartphone to datacenter markets, for both DRAM modules and
SSDs

March 25, 2020

Industry Outlook

DRAM▪ Industry demand CAGR in the mid-to-high teens

NAND▪ Industry demand CAGR in the 30% range▪ Long-term Micron supply growth in line with industry demand growth CAGR

▪ Long-term Micron supply growth in line with industry demand growth CAGR

Industry supply could be impacted by travel restrictions that hinder equipment deliveries and support
6

March 25, 2020

Strong
Technology
andRoadmap
Execution
The New Micron is focused on
combining product leadership withtechnology, manufacturing and supply
chain excellence to deliver
differentiated products to ourcustomers and maintain a competitive
cost structure
7

DRAM

NAND

▪ First to introduce 1Z in volume
production and expect over half our bit
production to be on 1Y and 1Z bysummer 2020

▪ Expect to begin production on our
128-layer first-gen RG node in ourcurrent quarter with revenue
shipments in FQ4▪ Managing the construction schedule ofour new Taiwan cleanroom expansion
carefully, remain on target for first
output in CY2021▪ QLC SSD bit shipments rose by 60%
sequentially in FQ2, with ameaningful portion of our consumer
SSDs now shipping with our QLC
technology, expect continued growthin second half of FY2020▪ Began sampling 1Z-based DDR5, on
track to introduce HBM in CY2020, andmaking good progress on our 1-alphanode▪ SSD revenue also grew
approximately 20% sequentially, led
by a greater than 50% growth indatacenter SSDs

March 25, 2020

End Market Highlights

SSDs▪

Record consumer SSD
revenue assisted by growth of
QLC NVMe consumer SSDs▪

First company to deliver
LP5 mobile DRAM tocustomers▪

Data Center: Strong demand
from enterprise and cloudcustomers▪

Expect strong sequential bit
growth in NVMe in FQ3 as we
continue the transition from
SATA to NVMe▪

Sampling world's first LP5
DRAM-based UFS MCPs,
which enable longer
smartphone battery life andhigh-performance image
processing▪

Graphics: GDDR6 bit
shipments increased more than
40% QoQ▪

8

Data Center, Graphics & PC

MobileAchieved several customer
qualifications on
our 96-layer SATA datacenter
SSD

▪

▪

LP5 and UFS more
important as 5G adoption
accelerates

March 25, 2020

PC: DRAM bit shipments andrevenue declined sequentially,
driven by slow seasonal
demand and CPU shortages

Automotive & Industrial▪

Automotive: Record DRAM
and NAND revenue and
LPDRAM was approximately
half of auto DRAM revenue▪

Industrial: Record bit
shipments for DRAM and
NAND, expect secular growthin IoT markets as 5G rolls out

Dave Zinsner
Chief Financial Officer

9

March 25, 2020

FQ2-20 Revenue$4.8B
Revenue down 7% Q/Q and down 18% Y/Y

10March 25, 2020

Performanceby Technology
DRAM

NAND

▪

64% of total revenue in FQ2-20▪

Revenue down 11% Q/Q and down 26% Y/Y▪

Bit shipments down approximately 10% Q/Q▪

Bit shipments up more than 20% Y/Y▪

ASPs flat Q/Q▪

32% of total revenue in FQ2-20▪

Revenue up 6% Q/Q and up 9% Y/Y▪

Bit shipments down low-single-digit percent range Q/Q▪

Bit shipments up approximately 20% Y/Y▪

ASPs up upper-single-digit percent range Q/Q

The metrics above reflect the change in reporting for MCPs and SSDs, which have been disaggregated into DRAM and NAND.

11

March 25, 2020

Revenue by Business Unit

12

FQ2-20

FQ1-20Q/Q % Change

FQ2-19Y/Y % Change

Compute and Networking (CNBU)$1.97B$1.98B(1)%$2.38B(17)%

Mobile (MBU)$1.26B$1.46B(14)%$1.61B(22)%

Storage (SBU)

$870M

$968M

(10)%

$1.02B(15)%

Embedded (EBU)

$696M

$734M

(5)%

$799M

(13)%

March 25, 2020

FQ2-20
Non-GAAP Operating Results
Revenue: $4.8 billion

Gross Margin: 29.1%
Net Income: $517 million
Diluted EPS: $0.45
Operating Expenses: $856 million

Operating Income: $542 million
Cash from Operations: $2.0 billion

13

March 25, 2020

Capital Allocation$44M used for share repurchases
in FQ2-20(785,000 shares)$2.7B of net cash at endof FQ2-20

Cash
ReturnNet
CapEx1

Cash3Debt

Liquidity2

1

2

3

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

14

FY-20 CapEx of $7B-$8B

March 25, 2020

$10.6B in liquidity at endof FQ2-20

FQ3-20
Guidance
Non-GAAP
Revenue$4.6 billion to $5.2 billion

Gross margin

31.0% ± 1.5%

Operating expenses$825 million ± $25 million

Interest (income) expense, net$35 million

Diluted EPS*

$0.55 ± $0.15*Based on ~1.14 billion diluted shares
15

March 25, 2020

Other Key Data
17

March 25, 2020

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

FQ2-20% ofRevenue% of
Revenue

FQ2-19% ofRevenue

Revenue$4,797100%$5,144100%$5,835100%

Gross margin

1,398

29%

1,405

27%

2,928

50%

Operating income

542

11%

594

12%

2,110

36%

Income tax (provision) benefit(17)

Net income attributable to Micron

517

Diluted earnings per share

0.45

0.48

1.71

Cash provided by operating activities

2,001

2,011

3,435

Cash, marketable investments, andrestricted cash

8,120

8,313

9,223

(42)

11%

See Non-GAAP reconciliations
18

FQ1-20March 25, 2020

548

(178)

11%

1,971

34%

Non-GAAP Financial Data and Guidance% of Revenue

FQ2-20 Non-GAAP

FQ2-20

DRAM

64%

NAND

32%

(amounts in millions,
except per share)

Revenue$

Gross margin% Sales Volume Change

FQ2-20 Q/Q

DRAM

Decreased approximately
10%

NAND

Decreased low-single-digit
percent range% ASP Change

DRAM

NAND

FQ2-20 Q/Q

Flat
Increased upper-single-digit
percent range

29%$4.6 billion to $5.2 billion
31.0% ± 1.5%

Operating expenses$

856$825 million ± $25 million

Interest (income) expense, net$

6$35 million

Earnings per share

$

0.45

$0.55 ± $0.15

FQ2-20 Non-GAAP(amounts in millions)

Diluted shares

FQ3-20Non-GAAP Estimates

1,144~1.14 billion~5% rate

Income tax (provision) benefit

$

(17)

Operating cash flow

$

2,001

—

Depreciation and amortization

$

1,358

—

Investments in capex, net(capital cash flow)

$

1,938

FY-20: $7 billion to $8 billion

See Non-GAAP reconciliations
19

4,797

FQ3-20Non-GAAP Guidance

March 25, 2020

Revenue by Technology
Amounts in millions% of
Revenue

FQ2-20% ofRevenue

FQ2-19% ofRevenueDRAM$3,08364%$3,46967%$4,151

71%

NAND

1,514

32%

1,422

28%

1,387

24%

Other

200

4%

253

5%

297

5%

Total

$4,797100%$5,144100%$5,835

100%

Revenue for MCPs and SSDs, which contain both DRAM and NAND, are disaggregatedinto DRAM and NAND in the table above based on the relative values of each component.

Percentages of total revenue may not total 100% due to rounding.
20

FQ1-20March 25, 2020

Historical Revenue % by Technology
Q1-19

Q2-19

Q3-19

Q4-19

FY-19

DRAM

74%

71%

71%

70%

72%

NAND

21%

24%

23%

25%

23%

Other

5%

5%

6%

5%

5%

Total

100%

100%

100%

100%

100%

Q1-18

Q2-18

Q3-18

Q4-18

FY-18

DRAM

71%

74%

76%

76%

74%

NAND

24%

21%

20%

21%

21%

Other

5%

4%

4%

3%

4%

Total

100%

100%

100%

100%

100%

Q1-17

Q2-17

Q3-17

Q4-17

FY-17

DRAM

67%

68%

68%

70%

68%

NAND

29%

28%

29%

27%

28%

Other

4%

4%

4%

3%

4%

Total

100%

100%

100%

100%

100%

Revenue for MCPs and SSDs, which contain both DRAM and NAND, are disaggregatedinto DRAM and NAND in the table above based on the relative values of each component.
Percentages of total revenue may not total 100% due to rounding.
21

March 25, 2020

Non-GAAP Reconciliations
22

March 25, 2020

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ2-20GAAP gross margin
Stock-based compensation

$

1,355
37

$

—
—
6

Start-up and preproduction costs
Employee severance
Other

FQ2-19

1,366
31

$

—
1
7

2,864
23
15
13
13

Non-GAAP gross margin

$

1,398

$

1,405

$

2,928

GAAP operating expenses
Stock-based compensation

$

915
(48)

$

848
(41)

$

907
(34)

—
(10)
(1)

Employee severance
Restructure and asset impairments
Other

—
4
—

(4)
(51)
—

Non-GAAP operating expenses

$

856

$

811

$

818

GAAP operating income
Stock-based compensation
Start-up and preproduction costs

$

440
85
—

$

518
72
—

$

1,957
57
15

—
10
7

Employee severance
Restructure and asset impairments
Other
Non-GAAP operating income
23

FQ1-20$March 25, 2020

542

1
(4)
7
$

594

17
51
13
$

2,110

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ2-20GAAP net income attributable to Micron

$

405

$

FQ2-19

491

$

1,619

Stock-based compensation

85

72

57

Start-up and preproduction costs

—

—

15

Employee severance

—

1

17

Restructure and asset impairments

10

(4)

51

Amortization of debt discount and other costs

6

10

11

(Gain) loss on debt repurchases and conversions

—

(42)

83

Other

7

7

16

Impact of U.S. income tax reform

—

—

(14)

Estimated tax effects of above, non-cash changes in net deferred income
taxes, and assessments of tax exposures

4

13

116

Non-GAAP net income attributable to Micron

$

517

$

548

$

1,971

GAAP income tax (provision) benefit

$

(21)

$

(55)

$

(280)

Impact of U.S. income tax reform

—

—

(14)

Estimated tax effects of non-GAAP adjustments, non-cash changes in net
deferred income taxes, and assessments of tax exposures

4

13

116

Non-GAAP income tax (provision) benefit

24

FQ1-20$March 25, 2020

(17)

$

(42)

$

(178)

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ2-20GAAP cost of goods sold

$

3,442

$

FQ2-19

3,778

$

2,971

Stock-based compensation

(37)

(31)

(23)

Start-up and preproduction costs

—

—

(15)

Employee severance

—

(1)

(13)

Other

(6)

(7)

(13)

Non-GAAP cost of goods sold

$

3,399

$

3,739

$

2,907

GAAP selling, general and administrative

$

223

$

211

$

209

Stock-based compensation

(26)

(22)

(18)

Employee severance

—

—

(3)

Non-GAAP selling, general and administrative

$

197

$

189

$

188

GAAP research and development

$

681

$

640

$

601

Stock-based compensation

(22)

(19)

(16)

Employee severance

—

—

(1)

(1)
658

—
621

—
584

Other
Non-GAAP research and development25

FQ1-20$March 25, 2020$$

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ2-20GAAP shares used in diluted EPS calculations
Adjustment for capped calls and stock-based compensation

Non-GAAP shares used in diluted EPS calculations
GAAP diluted earnings per share$

Effects of non-GAAP adjustments

FQ2-19

1,133

1,129

1,141

11

9

8

1,144

1,138

1,149

0.36

$

0.09

0.43

$

0.05

1.42
0.29

Non-GAAP diluted earnings per share

$

0.45

$

0.48

$

1.71

GAAP net income

$

407

$

508

$

1,625

Interest (income) expense, net

12

3

(31)

Provision (benefit) for income taxes

21

55

280

1,365

1,296

1,313

Depreciation and amortization of property, plant, and equipment and intangibles
EBITDA

$

1,805

$

1,862

$

3,187

GAAP interest (income) expense, net

$

12

$

3

$

(31)

Amortization of debt discount and other costs(6)

Non-GAAP interest (income) expense, net

26

FQ1-20$March 25, 2020

6

(10)
$

(7)

(11)
$

(42)

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ2-20Net cash provided by operating activities

$

2,001

FQ1-20$2,011

FQ2-19$3,435

Investments in capital expenditures, net
Expenditures for property, plant, and equipment, net*

(2,013)(1,936)(2,629)Payments on equipment purchase contracts

(18)

(11)

(17)

Amounts funded by partners

93

22

225

Adjusted free cash flow

$

63

$

Amounts in millions$

FQ2-20Cash and short-term investments

$

1,014

FQ1-20

7,481

$

7,588

Current and noncurrent restricted cash

53

126

Long-term marketable investments

586

599

(5,425)(5,650)Current and long-term debt
Net cash$*Expenditures for property, plant and equipment, net include proceeds from sales ofproperty, plant, and equipment of $43 million for FQ2-20, $7 million for FQ1-20, and $20
million for FQ2-19.
27

86

March 25, 2020

2,695

$

2,663

FQ3-20 GuidanceNon-GAAP Reconciliations
GAAP
Revenue

Adjustments$4.6 billion to $5.2 billion—

30% ± 1.5%

1%A

31% ± 1.5%$891 million ± $25 million$66 million

B$825 million ± $25 million$38 million$3 millionC$35 million$0.41 ± $0.15$0.14

Gross margin
Operating expenses

Non-GAAP

Interest (income) expense, net
Diluted EPS*
Adjustments (amounts in millions)A
Stock-based compensation – cost of goods soldA
Other – cost of goods sold$4.6 billion to $5.2 billion

A,B,C,D$0.55 ± $0.15

$

41
7

B

Stock-based compensation – sales, general, and administrative

26

B

Stock-based compensation – research and development

21

B

Other – operating expenses

19

C
D

Amortization of debt discount and other costs
Tax effects of the above items and non-cash changes in net deferred income taxes

3
41
$

158

The above guidance does not incorporate the impact of any potential business combinations, divestitures, 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.
*GAAP EPS based on ~1.13 billion diluted shares and non-GAAP EPS based on ~1.14 billion diluted shares
28

March 25, 2020

29

March 25, 2020