Financial Results
First Quarter Fiscal 2019©2018 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, orcompatibility, 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 Microntrademarks are the property of Micron Technology, Inc. All other trademarks are the property of theirrespective owners.

1June 20, 2018

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 18, 2018

Sanjay Mehrotra
President and CEO

Continued Strong Technology and Roadmap Execution

DRAMNAND▪ 1Xnm: Achieved crossover of shipments inFQ1-19▪ QLC: Introduced consumer NVMe SSDs
and enterprise SATA SSDs

▪ 1Ynm: Started revenue shipments in FQ1-19;
remain on track for meaningful production byFQ3-19▪ 96L: Started shipping products; yields aheadof plan

▪ 1Znm: Making excellent progress ondevelopment4▪ High-value solutions: Now represent over
50% of NAND bits

December 18, 2018

FQ1-19 Accomplishments by End MarketMobile▪ Record revenue, gross margins and operating margins▪ Mobile DRAM content growth of >25% in density per units shipped Y/YDatacenter and Graphics▪ Strong demand for higher density products; 64GB module revenue up >50% Q/Q▪ Started volume ramp of high-performance GDDR6 memory

Long lifecycle Industrial, Multi-market and Auto
▪ Record revenue in Auto and Industrial markets with Q/Q expansion in gross margins▪ Strength in Auto driven by increasing demand for in-vehicle infotainment and ADAS

5December 18, 2018

CY-19 Industry Outlook Expectations▪ Industry demand growth of ~16%DRAM▪ Industry supply bit output growth tracking above demand▪ Taking actions to lower our DRAM bit output growth to ~15%

▪ Industry demand growth of ~35%NAND▪ Industry supply bit output growth exceeds demand growth▪ Taking actions to lower our NAND output and now expect ourNAND bit shipment growth to be ~35%

6December 18, 2018

Dave Zinsner
Chief Financial Officer

Performance by Product Line
▪ 68% of overall company revenue in FQ1-19DRAM▪ Revenue down 9% Q/Q and up 18% Y/Y▪ ASPs down high single digits percent range Q/Q▪ Shipment quantities flat Q/Q▪ 28% of overall company revenue in FQ1-19

TradeNAND▪ Revenue down 2% Q/Q and up 17% Y/Y▪ ASPs down low to mid-teens percent range Q/Q▪ Shipment quantities up low to mid-teens percent range Q/Q

8December 18, 2018

Revenue by Business Unit

9FQ1-19

FQ4-18Q/Q % Change

FQ1-18Y/Y % Change

Compute and Networking (CNBU)$3.60B$4.36B(17)%$3.21B

12%

Mobile (MBU)$2.21B$1.90B17%$1.37B

62%

Storage (SBU)$1.14B$1.24B(8)%$1.38B(17)%

Embedded (EBU)$933M$923M

1%$830M

12%

December 18, 2018

Financial Metrics▪ GAAP results− Gross margin: 58%− Net Income: $3.29 billion− Diluted EPS: $2.81▪ Non-GAAP results− Gross margin: 59%− Net Income: $3.51 billion− Diluted EPS: $2.97▪ Non-GAAP operating expenses of $783 million▪ Non-GAAP operating income of $3.9 billion

10

December 18, 2018

Other Financial Metrics▪ Repurchased $1.8 billion of common stock,− Reduced total shares by 42 million or approximately 3.5% of shares outstanding▪ Operating cash flow− $4.8 billion in FQ1-19▪ Capital expenditures, net of partner contributions− $2.5 billion spent in FQ1-19− Revised FY-19 capex forecast to $9.0 to $9.5 billion▪ Free cash flow*− $2.3 billion in FQ1-19

11*Free cash flow consists of cash provided by operating activities less investments
in capital expenditures, net of partner contributions.

December 18, 2018

Record Net Cash Position in FQ1-19▪ FQ1-19 free cash flow* of $2.3 billion▪ Reduced gross debt position by ~$500 million in FQ1-19
Total Cash

Total GAAP Debt

$12.4B$11.6B
InoteraAcquisition
Debt

$9.6B

$11.1B
$9.0B

$8.7B

$9.3B
$7.7B

$6.2B
$4.4B

FQ1-17
12$4.6B

FQ2-17

$7.3B

$7.2B

$6.6B

$4.9B

FQ3-17

$7.4B

$4.6B

FQ4-17

FQ1-18

FQ2-18*Free cash flow consists of cash provided by operating activities less investments in capital expenditures, net of partner contributions
December 18, 2018
Cash includes short-term investments, long-term investments, and restricted cash
Debt is GAAP value including current portion and long-term debt

FQ3-18

FQ4-18$4.1B

FQ1-19

Revised FY-19 Investment Plans

FY-19 Capex*$9B - $9.5B▪ $1.25B reduction from prior guidance▪ Will continue to remain flexible to respond to market conditions

13*Net of partner contributions

December 18, 2018

FQ2-19 GuidanceNon-GAAP$5.70 billion – $6.30 billion

Revenue

50% – 53%

Gross margin

Operating expenses$800 million +/- $25 million

Diluted EPS*

14

*Based on ~1,153 million diluted shares$1.75 +/- $0.10

December 18, 2018

Non-GAAP Reconciliations

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

FQ4-184,325 $

FQ1-18
2,678

61

4751

Employee severance, start-up costs, and otherRestructure and asset impairments

3830

873
6

Amortization of debt discount and other costs

182329(Gain) loss on debt repurchases and conversions(Gain) loss from changes in currency exchange rates

(14)
5(1)
15195
9

Impact of U.S. income tax reform47(83)—Estimated tax effects of above and changes in net deferred income taxes

30(28)

23215
3,508 $

(12)
4,313 $

316
2,994

1,174
5
1,179

1,216
4
1,220

1,225(5)1,220$

2.81 $

3.56 $

2.19$

0.16
2.97 $(0.03)
3.53 $

0.26
2.45

Total non-GAAP adjustments
Non-GAAP net income attributable to Micron$

GAAP shares used in diluted EPS calculations
Adjustment for stock-based compensation and effect of capped calls
Non-GAAP shares used in diluted EPS calculations
GAAP diluted earnings per share
Effects of above
Non-GAAP diluted earnings per share

16

FQ1-193,293 $

December 18, 2018

Consolidated Statement of Operations
FQ1-19 Non-GAAP Reconciliation
Amounts in millions
Revenue$

Cost of goods sold
Gross margin

Non-GAAP$
7,913

3,298
4,615

(55) A,H
55

3,243
4,670

Selling, general, and administrative

209(21) B,H

188

Research and development611(22) C,H

589

Other operating (income) expense

36(30)

Total operating expenses

856(73)783

Operating income

3,759

128

3,887

Interest expense, net

518D6E23

Other non-operating income (expense), net

93,773(8) F,G,H
138

13,911

Income tax provision(477)

77(400)Net income

3,296

215

3,511(3)—(3)

3,293 $

215

Net income attributable to noncontrolling interests$

Net income attributable to Micron

17GAAP
Adjustments
7,913 $—

December 18, 2018

I,J$

3,508

Consolidated Statement of Operations
FQ1-19 Non-GAAP Reconciliation (continued)
Amounts in millions
AB
CD

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

EAmortization of debt discount and other costs

18FGH(Gain) loss on debt repurchases and conversions(Gain) loss from changes in currency exchange rates
Employee severance, start-up costs, and other(14)538IImpact of U.S. income tax reform

47

J

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

30$$

18

December 18, 2018

26191630215

Other Key Data

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

FQ1-19% of Sales

FQ4-18% of Sales

FQ1-18% of Sales

Revenue

7,913100%

8,440

100%

6,803

100%

Gross margin

4,670

59%

5,17961%

3,769

55%

Operating income

3,887

49%

4,439

53%

3,157

46%

Income tax provision(400)

Net income attributable to Micron

3,508

Diluted earnings per share

2.97

3.53

2.45

Cash provided by operating activities

4,810

5,155

3,636

Cash, marketable investments, andrestricted cash

7,206

7,356

6,610(131)44%

December 18, 2018

4,313

(91)

51%

2,994

44%

Non-GAAP Financial Data and Guidance% of Revenue

FQ1-19 Non-GAAP(amounts in millions,except per share)

FQ1-19DRAM

68%

Trade NAND*

28%

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

2159%$5.70 billion – $6.30 billion
50% – 53%

Operating expenses $783

$800 million +/- $25 million

Earnings per share $2.97$1.75 +/- $0.10

FQ1-19Q/Q

Relatively flat
FQ1-19 Non-GAAP(amountsin millions)

Increased low to mid-teens% range
Diluted shares% ASP Change

7,913

FQ2-19 Non-GAAP Guidance

FQ1-19Q/Q
Decreased high single digit%
Decreased low to midteens % range

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

FQ2-19 Non-GAAP Estimates

1,179~1,153 million

Income tax provision $(400)FY-19: ~11% of PBTOperating cash flow $

4,810

—

Depreciation and amortization $

1,330

—

Capital expenditures(Capital cash flow) (a) $2,484

FY-19: $9 billion - $9.5 billion

December 18, 2018

Convertible Notes Dilution Overview(shares in millions)

Stock Price2032 D Notes
2033 F Notes
2043 G Notes
Total dilutive shares
Benefit from capped call
Net dilution

Actual
FQ1-19*1151026(2)
24$30
9$33
9$36
10$39
10$42
10$45
10$48
11$51
11$54
11$57
11$60
11

4
114(3)
11

4
4
17(3)
14

4
721(3)
18

5924(3)
21

51126(2)24

51227(2)25

51430(2)28

51531(2)29

51632(2)30

51733(2)31

51834(2)32

Note: Except for FQ1-19 dilution, the table above presents the potential dilutive impact of convertible
notes outstanding as of November 29, 2018 over the range of trading prices for Micron’s stock.

22*Represents the actual dilutive impact of convertible notes for FQ1-19 diluted sharecount based on an average share price of $41.58 for the quarter.

December 18, 2018

23

June 20, 2018