Financial Results
FQ4 2019©2019 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

September 26, 2019

Sanjay Mehrotra
President and CEO

3

September 26, 2019

Overview
Strong Execution Against Backdrop of Challenging Industry Environment
FQ4-19: Results exceeded guidance ranges▪ FY-19: 2nd best year in Micron history for revenue, free cash flow, earnings▪

Continued Excellent Progress on Key Strategic Objectives
Improved structural profitability▪ Reduced technology gap with competitors▪ Strengthened product portfolio▪

Executed $2.7 Billion of Share Repurchases▪

65% of FY-19 free cash flow

Market Environment Broadly Consistent with Expectations
DRAM demand bounced back as issues impacting first half 2019 dissipated▪ NAND elasticity driving robust demand growth▪ Demand recovery is encouraging, but we remain mindful of macroeconomic and trade uncertainties▪

4

September 26, 2019

Strong
Technology
and Roadmap
Execution
Significantly improved profitability
relative to peers since 2016

DRAM

NAND

•

Cost per bit declines led the industry
and exceeded our internal plans in
FY-19

•

Continued to outpace industry costdeclines during FY-19•

Volume shipments of industry’s first
1Z products gives Micron feature size
leadership•

96-layer 3D NAND is continuing toincrease as a portion of our mix•

Ended FY-19 with approximately 75%
of production on 1X and beyond, witha meaningful portion on 1Y•

Achieved first yielding dies using
replacement gate (RG), further
reducing risk of RG transition▪ Reduced cost structure▪ Increased mix of high value solutions▪ Enhanced customer engagement andgo-to-market strategy

5

September 26, 2019

End Market Highlights

SSDs▪

Consumer SSD hadrecord revenue and unit
shipments▪

Price elasticity is driving
an increase in attach
rates and capacities
Positioned to gain
share in NVMe SSD
market in FY-20▪

6

MobileData Center & Graphics

Resilient revenue andgross margin
performance in
FY-19

▪

▪

Managed NAND bit
shipments more thantripled Y/Y▪

▪

Leading in LP5 DRAM,
which positions us wellfor 5G▪

September 26, 2019

Data Center: Solid Q/Qdemand growth in bothcloud and enterprisemarkets

Graphics: Strong Q/Q bit
growth following inventory
reductions in DRAM

Automotive▪

Increased revenue Y/Ydespite weak auto
industry sales▪

LP4 shipments over
5 times higher Y/YHuawei Update▪ In the fiscal fourth quarter, sales to Huawei declined sequentiallyand were down meaningfully from the levels we anticipated prior
to the addition of Huawei to the Entity List
▪ We have applied for licenses with the U.S. Department ofCommerce that would allow us to ship additional products, butthere have been no decisions on those licenses to date
▪ If the Entity List restrictions against Huawei continue and we areunable to get licenses, we could see a worsening decline in oursales to Huawei over the coming quarters

7

September 26, 2019

Industry Outlook▪ CY-19 industry bit demand growth remains unchanged at mid-teens,

DRAM

with supply exceeding demand▪ CY-20 industry bit demand growth of high-teens to 20%,

above supply growth of only mid-teens▪ Long-term bit demand growth CAGR of mid-to-high teens▪ CY-19 industry bit demand growth in the low-to-mid 40% range,

NAND

which will exceed bit supply growth of approximately 30%▪ CY-20 industry bit demand growth of high-20s to low-30% range,

with supply growing somewhat below demand▪ Long-term bit demand growth CAGR in low-30% range

8

September 26, 2019

Micron Outlook▪ CY-19 bit supply growth slightly below industry demand growth of mid-teens

DRAM▪ CY-20 bit supply growth to be close to market demand▪ FY-20 cost reductions to moderate to high-single-digits percentage from FY-19▪ Long-term Micron supply growth in line with industry demand▪ CY-19 bit supply growth slightly above industry supply growth

NAND▪ CY-20 bit supply growth to be significantly below the industry as we use

our NAND inventory to support customer demand▪ Minimal cost reductions in FY-20 and meaningful cost reductions in FY-21▪ Long-term Micron supply growth in line with industry demand

9

September 26, 2019

Dave Zinsner
Chief Financial Officer

10

September 26, 2019

Revenue

11

FQ4-19

FY-19

$4.9B

$23.4B

Up 2% Q/Q and down 42% Y/Y

Down 23% Y/Y

September 26, 2019

DRAM
▪ 63% of overall revenue in FQ4-19▪ Revenue up 1% Q/Q and down 48% Y/Y

FQ4-19▪ Bit shipments up approximately 30% Q/Q andmid-teens percent range Y/Y▪ ASPs down approximately 20% Q/Q▪ Revenue down 28% Y/Y

FY-19▪ Bit shipments up low-single-digit percent range Y/Y▪ ASPs down approximately 30% Y/Y

12

September 26, 2019

NAND
▪ 31% of overall revenue in FQ4-19

FQ4-19▪ Revenue up 5% Q/Q and down 32% Y/Y▪ Bit shipments up low-to-mid teens percent range Q/Q▪ ASPs down upper-single-digit percent range Q/Q▪ Revenue down 12% Y/Y

FY-19▪ ASPs down mid-40 percent range Y/Y▪ Strong bit shipment growth13

September 26, 2019

Revenue by Business Unit

14

FQ4-19

FQ3-19Q/Q %Change

FQ4-18Y/Y %Change

FY-19

FY-18

Y/Y %
ChangeCompute and Networking (CNBU)$1.90B$2.08B(8)%$4.36B

(56)%$9.97B$15.25B(35)%

Mobile (MBU)$1.41B$1.17B20%$1.90B(26)%$6.40B$6.58B(3)%

Storage (SBU)

$848M

$813M

4%

$1.24B(32)%$3.83B$5.02B(24)%

Embedded (EBU)

$705M

$700M

1%

$923M

(24)%

$3.14B$3.48B(10)%

September 26, 2019

Non-GAAP Operating Results

15

FQ4-19FY-19

Revenue$4.9B$23.4B

Gross Margin

31%

47%

Net Income

$637M

$7.3B

Diluted EPS

$0.56

$6.35

Operating Expenses

$797M

$3.2B

Operating Income

$694M

$7.8B

Cash from Operations$2.2B$13.2B

September 26, 2019

Capital Allocation~7% reduction in shares outstanding Y/Y

65% of $4.1B free cash flowused for repurchases in FY-19$3.4B of net cash at end of FY-19

Cash
ReturnNet
CapEx1

Cash3Debt

Liquidity2

1

2

3

1Capex net of partner contributions
2Cash, short-term and long-term marketable investments, restricted cash and undrawn revolver capacity
3Cash, short-term and long-term marketable investments, and restricted cash16

FY-19 CapEx of $9.1B(High ROIC node transitions +elevated level of buildings andfacilities capex)

September 26, 2019$13B in liquidity at end of FY-19

Non-GAAP Guidance
FQ1-20
Revenue$5.0 billion ± $200 million

Gross Margin

26.5% ± 1.5%

Operating Expenses$780 million ± $25 million

Diluted EPS*

$0.46 ± $0.07

FY-20
CapEx

$7 billion to $8 billion*Based on ~1.13 billion diluted shares

17

September 26, 2019

Other Key Data
19

September 26, 2019

Financial Summary
Non-GAAP
Amounts in millions, except per share20

FQ4-19% ofRevenue% of
Revenue

FQ3-19

FQ4-18% ofRevenue

Revenue$4,870100%$4,788100%$8,440100%

Gross margin

1,491

31%

1,884

39%

5,179

61%

Operating income

694

14%

1,110

23%

4,439

53%

Income tax (provision) benefit(64)

Net income attributable to Micron

637

Diluted earnings per share

0.56

1.05

3.53

Cash provided by operating activities

2,233

2,711

5,155

Cash, marketable investments, andrestricted cash

9,246

7,933

7,356

(131)

63
13%

September 26, 2019

1,198

25%

4,313

51%

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

FY-18

Revenue$23,406100%$30,391

100%

Gross margin

10,97347%

17,94459%

Operating income

7,801

33%

15,24350%

Income tax (provision) benefit(579)

Net income attributable to Micron

7,314

Diluted earnings per share

6.35

11.95

13,18917,400Cash provided by operating activities

21

% of
Revenue

FY-19

September 26, 2019

(418)
31%

14,70048%

Non-GAAP Financial Data and Guidance% of Revenue

FQ4-19 Non-GAAP

FQ4-19

DRAM

63%

NAND

31%

(amounts in millions,
except per share)

Revenue$

Gross margin% Sales Volume Change

FQ4-19 Q/Q

DRAM

Increased approximately
30%

NAND

Increased low-to-mid teens
percent range% ASP Change
DRAM

NAND

FQ4-19 Q/Q
Decreased approximately
20%
Decreased upper-singledigit percent range

31%$5.0 billion ± $200 million
26.5% ± 1.5%

Operating expenses$

797$780 million ± $25 million

Earnings per share

$

0.56

$0.46 ± $0.07

FQ4-19 Non-GAAP(amounts in millions)

FQ1-20Non-GAAP Estimates

Diluted shares

$

1,134

Income tax (provision) benefit

$

(64)

Operating cash flow

$

2,233

—

Depreciation and amortization

$

1,409

—

Capital expenditures(capital cash flow)*

$

1,970

FY20: $7 billion to $8 billion

See Non-GAAP reconciliations*Net of amounts funded by partners

22

4,870

FQ1-20Non-GAAP Guidance

September 26, 2019~1.13 billion
Mid-to high-single digit rateConvertible Notes Dilution Overview(shares in millions)
Actual
FQ4-19*

$35

$38

$41

$44

$47

$50

$53

$56

$59

$62

$65

2032 D Notes

10

10

10

10

10

11

11

11

11

11

11

11

2033 F Notes

4

1

1

1

1

1

1

1

1

1

1

1

Total dilutive shares

14

11

11

11

11

12

12

12

12

12

12

12

Benefit from capped call

(2)

(3)

(3)

(2)

(2)

(2)

(2)

(2)

(2)

(2)

(2)

(2)

Net dilution

12

8

8

9

9

10

10

10

10

10

10

10

Stock Price

Note: Except for actual FQ4-19 dilution, the table above presents the potential dilutive impact ofconvertible notes outstanding as of August 29, 2019 and the anti-dilutive benefit from capped calls over
the range of trading prices for Micron’s stock.

*Represents the actual dilutive impact of convertible notes for FQ4-19 diluted sharecount based on an average share price of $40.52 for the quarter.

23

September 26, 2019

Non-GAAP Reconciliations
24

September 26, 2019

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

FQ4-19GAAP gross margin
Stock-based compensation
Start-up and preproduction costs$

Employee severance
Other
Non-GAAP gross margin$

GAAP operating expenses
Stock-based compensation
Employee severance
Restructure and asset impairments
Other
Non-GAAP operating expenses
GAAP operating income

$

745
(38)

$
$

$

$

650

$

$
September 26, 2019

47
8
1,491

$

$

Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Other

25

1,395
29
12

(32)
122
—
797

Stock-based compensation

Non-GAAP operating income

FQ3-19

FQ4-18

1,828
24
23
—
9
1,884

$

5,151
21
—

$

—
7
5,179

818 $
(34)

774
(26)

—
(9)
(1)
774 $

—
(7)
(1)
740

1,010

$

4,377

67

58

47

12
79
(122)
8

23
—
9
10

—
—
7
8

694

$

1,110

$

4,439

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

FQ4-19GAAP net income attributable to Micron
Stock-based compensation$

Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions(Gain) loss from changes in currency exchange rates
Other
Impact of U.S. income tax reform
Estimated tax effects of above, non-cash changes in net deferred income taxes,
and assessments of tax exposures

26

Non-GAAP net income attributable to Micron$

GAAP income tax (provision) benefit
Impact of U.S. income tax reform
Estimated tax effects of non-GAAP adjustments, non-cash changes in net deferredincome taxes, and assessments of tax exposures$

Non-GAAP income tax (provision) benefit$

September 26, 2019

FQ3-19561
67$

FQ4-18
840
58

$

4,325
47

12
79
(122)
10
10

23
—
9
10
317

—
—
7
23
(1)

—
13
—

1
12
(42)

15
8
(83)

7
637

$

(30)
1,198 $

(28)
4,313

(71) $
—

135 $
(42)

(20)
(83)

7
(64) $

(30)
63 $

(28)
(131)

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

27

FQ4-19GAAP cost of goods sold
Stock-based compensation
Start-up and preproduction costs
Employee severance
Other
Non-GAAP cost of goods sold$

GAAP selling, general and administrative
Stock-based compensation
Employee severance
Non-GAAP selling, general and administrative$

GAAP research and development
Stock-based compensation
Employee severance
Other
Non-GAAP research and development

$

$

$

$

September 26, 2019

FQ3-19

3,475
(29)
(12)
(47)
(8)
3,379

$

212
(18)
(10)
184

$

623
(20)
(22)
—
581

$

$

$

$

FQ4-182,960 $
(24)
(23)
—
(9)
2,904 $

3,289
(21)
—
—
(7)
3,261

206 $
(18)
—
188 $

215
(13)
—
202

606 $
(16)
(1)
—
589 $

567
(13)
—
(1)
553

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

FQ4-19GAAP 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

FQ4-18

1,128

1,129

1,216

6

6

4

1,134

1,135

1,220

0.49

$

0.07

0.74

$

0.31

3.56
(0.03)

Non-GAAP diluted earnings per share

$

0.56

$

1.05

$

3.53

GAAP net income

$

586

$

851

$

4,326

Interest (income) expense, net

(18)

(23)

16

Provision (benefit) for income taxes

71

(135)

20

1,416

1,360

1,285

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

$

2,055

$

2,053

$

5,647

Net cash provided by operating activities

$

2,233

$

2,711

$

5,155

Expenditures for property, plant, and equipment
Payments on equipment purchase contracts
Net partner contributions
Adjusted free cash flow

28

FQ3-19$September 26, 2019

(2,028)(2,403)(2,251)

(21)

(17)

(36)

79
263

$

213
504

$

225
3,093

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

FY-19

GAAP gross margin
Stock-based compensation
Start-up and preproduction costs$

Employee severance
Other
Non-GAAP gross margin$

GAAP operating expenses
Stock-based compensation
Employee severance
Restructure and asset impairments
Other
Non-GAAP operating expenses
GAAP operating income$

10,702102
58
73
38
10,973
3,326
(141)

$

$
$

17,89183——
20
17,994
2,897
(115)

$

(43)
32
(2)
3,172

$

—
(28)
(3)
2,751

$

7,376

$

14,994

Stock-based compensation

243

198

Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Other

58
116
(32)
40

—
—
28
23

Non-GAAP operating income
29

FY-18

$
September 26, 2019

7,801

$

15,243

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

FY-19

GAAP net income attributable to Micron
Stock-based compensation

30

$

FY-18
6,313
243

$

14,135198

Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions

58
116
(32)
49
396

—
—
28
101
385

(Gain) loss from changes in currency exchange rates
Other
Impact of U.S. income tax reform
Estimated tax effects of above, non-cash changes in net deferred income taxes, and assessmentsof tax exposures

9
48
(9)

75
28
(174)

123
7,314

(76)
14,700Non-GAAP net income attributable to Micron$

GAAP income tax (provision) benefit
Impact of U.S. income tax reform
Estimated tax effects of non-GAAP adjustments, non-cash changes in net deferred income taxes,
and assessments of tax exposures$

Non-GAAP income tax (provision) benefit$

September 26, 2019

(693)
(9)
123
(579)

$
$

$

(168)
(174)
(76)
(418)

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

31

FY-19

GAAP cost of goods sold
Stock-based compensation
Start-up and preproduction costs
Employee severance
Other
Non-GAAP cost of goods sold$

GAAP selling, general and administrative
Stock-based compensation
Employee severance
Non-GAAP selling, general and administrative$

GAAP research and development
Stock-based compensation
Employee severance
Other
Non-GAAP research and development

$

$

$

$

September 26, 2019

FY-18

12,704
(102)
(58)
(73)
(38)
12,433

$

836
(73)
(15)
748

$

2,441
(68)
(28)
(2)
2,343

$

$

$

$

12,500
(83)
—
—
(20)
12,397
813
(61)
—
752

2,141
(54)
—
(3)
2,084

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

FY-19

GAAP 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

1,143

1,229

7

1

1,150

1,230

5.51

$

0.84

11.51
0.44

Non-GAAP diluted earnings per share

$

6.35

$

11.95

GAAP net income

$

6,358

$

14,138Interest (income) expense, net

(77)

222

Provision (benefit) for income taxes

693

168

5,424

4,759

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

12,398$19,287

Net cash provided by operating activities$

13,189$17,400

Expenditures for property, plant, and equipment
Payments for equipment purchase contracts
Net partner contributions
Adjusted free cash flow

32

FY-18

$

September 26, 2019(9,780)(8,879)

(75)

(206)

747
4,081

$

889
9,204

FQ1-20 GuidanceNon-GAAP Reconciliations
GAAP
Revenue

Non-GAAP$5.0 billion ± $200 million—

25.5% ± 1.5%

1%A

26.5% ± 1.5%$818 million ± $25 million$38 million

B$780 million ± $25 million$0.42 ± $0.07$0.04

Gross margin
Operating expenses

Adjustments

Diluted EPS*

Adjustments (amounts in millions)A
Stock-based compensation – cost of goods soldA
Other – cost of goods sold
B
Stock-based compensation – sales, general, and administrative$5.0 billion ± $200 million

A,B,C$0.46 ± $0.07

$

30
7
20

B

Stock-based compensation – research and development

18

C

Amortization of debt discount and other costs

7

CC(Gain) loss on debt repurchases and conversions
Tax effects of the above items and non-cash changes in net deferred income taxes

(77)
35
$

40

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 ofour control.
*GAAP and non-GAAP EPS are based on ~1.13 billion diluted shares

33

September 26, 2019

34

September 26, 2019