Financial Results
FQ4 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
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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 29, 2020

Sanjay Mehrotra
President and CEO

3

September 29, 2020

Highlights▪ Solid FQ4-20 revenue and profitability driven by strength in DRAM

shipments to cloud, PC and game console customers▪ In FQ4-20, already achieved our High Value Solutions mix target▪ Healthy FY-20 financial results▪ In FY-20, introduced industry's first 1Z nm node; first to market withmobile LP5 and GDDR6X products▪ Began shipping replacement gate and drove significant increases in

QLC mix in FY-20

4

September 29, 2020

Operations▪ Continued to operate our fabs at normal capacity in FY-20▪ Achieved record production from our assembly and test facilities in

Xi'an, Taiwan and Singapore in FY-20▪ Today, almost three quarters of Micron team members back on-siteincluding manufacturing operations which are running close to fully
staffed levels

5

September 29, 2020

DRAM

StrongTechnology
and Roadmap
Execution
Solid progress toward our goals:

6▪

Bring differentiated industryleading products to market▪

Improve product mix and cost structure▪

Grow industry profit share
while maintaining stable bit share

NAND

▪

Leading the industry in 1Z nm
production mix, a significant contributor
to our FQ4-20 sales▪

128L RG entered volume production
in FQ3-20; Began shipping RGbased consumer SSDs in FQ4-20▪

Making good progress on 1-alphawhich remains on track for introduction
in FY-21▪

Making good progress on 2nd gen
RG node; expect to introduce into
volume production during FY-21▪

Announced GDDR6X, the world’s
fastest discrete graphics memory
solution and the first to power system
bandwidth up to 1 terabyte per second▪

QLC SSD bit mix more than doubled
Q/Q, surpassing our expectations;Leading the industry with broadest
portfolio of QLC SSDs▪

Remain on track to commence High
Bandwidth Memory volume shipments
by the end of CY-20▪

NAND high-value solutions
now make up around 80% of ourquarterly NAND bits, achieving goal
set for FY-21

September 29, 2020

End Market Highlights

SSDs
▪

▪

▪

▪

7

Expanded our NVMe portfolio
and continued SATA market
leadership
FQ4-20 SSD revenue almost
doubled Y/Y led by data
center SSD sales
Client SSD average capacities
grew almost 30% Q/Q, driven
by QLC growth
Consumer SSD had anotherrecord quarter in volume
shipped, with NVMe bits morethan doubling Q/Q

Data Center &Networking▪

▪

Mobile▪

Data Center: Leveraging
our 1Z DRAM, cloud DRAM
bit shipments more thandoubled Y/Y in FQ4-20;
enterprise demand was
weaker in FQ4-20; market
expected to start its transition
to DDR5 in 2H of FY-21
Networking: 5G deployments
drove healthy DRAM bit
growth Q/Q▪

▪

Well positioned to win in 5G
era with industry leading
product portfolio
Achieved a record
number of design wins in
FQ4-20
Expect a rebound insmartphone unit volumes in
CY-21 coupled with robust 5G
driven average capacity
growth across DRAM and
NAND; 5G handset volumes
could grow to approximately
500M units in CY-21

September 29, 2020

PC, Graphics & Auto▪

▪

▪

PC: WFH trend drove strong
notebook demand, withpockets of non-memory
component shortages insupply chain; desktop PC
sales weak due to pandemic
driven changes
Graphics: GDDR6 shipments
to support next-gen
gaming consoles helped drivestrong Q/Q and Y/Y bit growth
Automotive: Strong recovery
towards end of FQ4-20;
expecting sequential productsales growth in FQ1-21

Market Trends▪ Smartphone, auto, and consumer end markets have started torecover, and we see further demand improvements ahead▪ Cloud and laptop demand continues to be healthy, supported by

the work from home and shop from home trends; gaming
demand is robust▪ Short-term outlook has weakened; enterprise demand weakened

due to lower IT spending and somewhat higher inventories atsome customers▪ Halted shipments to Huawei on Sept 14; expect to offset impact

by end of FQ2-21
8

September 29, 2020

Industry Outlook▪ CY-20 industry bit demand growth is likely to be in the mid-teens percent range

DRAM

with supply constraints for 8Gb-based DRAM products▪ CY-21 industry bit demand growth of approximately 20%; disciplined industry

capex to result in improving market conditions throughout CY-21▪ Long-term bit demand growth CAGR of mid-to-high teens▪ CY-20 industry bit demand growth in the mid-20s, with supply and demand

NAND

roughly balanced▪ CY-21 industry bit demand growth of approximately 30%; risk of some excess

supply unless industry capex moderates▪ Long-term bit demand growth CAGR of approximately 30%

9September 29, 2020

Micron Outlook▪ CY-20 bit supply growth expected to be above industry demand

DRAM▪ CY-21 bit supply growth expected to moderate to less than industry demand▪ Long-term Micron bit supply growth CAGR in line with industry demand▪ FY-21 cost reductions expected to be in mid-single-digit percent range,

impacted by mix▪ CY-20 bit supply growth expected to be well below industry demand

NAND▪ CY-21 bit supply growth expected to grow somewhat below industry demand▪ Long-term Micron bit supply growth CAGR in line with industry demand▪ FY-21 cost reductions expected to be in the low-to-mid-teens percent range,

impacted by mix

10

September 29, 2020

Dave Zinsner
Chief Financial Officer

11

September 29, 2020

Revenue

12

FQ4-20

FY-20

$6.1B

$21.4BUp 11% Q/Q and up 24% Y/Y

Down 8% Y/Y

September 29, 2020

DRAM
FQ4-20FY-20▪

72% of total revenue in FQ4-20▪

Revenue up 22% Q/Q and up 29% Y/Y▪

Bit shipments up mid-20% range Q/Q▪

ASPs down lower-single-digit percent range Q/Q▪

68% of total revenue in FY-20▪

Revenue down 14% Y/Y

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

13

September 29, 2020

NAND
FQ4-20FY-20▪

25% of total revenue in FQ4-20▪

Revenue down 8% Q/Q and up 27% Y/Y▪

Bit shipments flat Q/Q▪

ASPs down upper-single-digit percent range Q/Q▪

29% of total revenue in FY-20▪

Revenue up 14% Y/Y

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

14

September 29, 2020

Revenue by Business Unit

15

FQ4-20

FQ3-20Q/Q %Change

FQ4-19Y/Y %Change

FY-20

FY-19

Y/Y %
ChangeCompute and Networking (CNBU)$3,020M$2,218M

36%$1,903M

59%$9,184M$9,968M(8)%

Mobile (MBU)$1,462M$1,525M(4)%$1,406M

4%$5,702M$6,403M(11)%

Storage (SBU)$913M$1,014M

(10)%

$848M

8%

$3,765M$3,826M(2)%

Embedded (EBU)

$654M

$675M

(3)%

$705M

(7)%

$2,759M$3,137M(12)%

September 29, 2020

Non-GAAP Operating Results

16

FQ4-20

FY-20

Revenue$6.1B$21.4B

Gross Margin

34.9%

31.3%

Net Income

$1.2B

$3.2B

Diluted EPS

$1.08

$2.83

Operating Expenses

$809M

$3.3B

Operating Income

$1.3B

$3.4B

Cash from Operations

$2.3B

$8.3B

September 29, 2020

Capital Allocation$41M used for share repurchases
in FQ4-20(824,000 shares)$2.6B of net cash at endof FQ4-20

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 cash17

FY-20 CapEx of $7.9B
FY-21 CapEx guidance of ~$9B

September 29, 2020

$11.8B in liquidity at endof FQ4-20

Non-GAAP Guidance
FQ1-21
Revenue$5.2 billion ± $200 million

Gross Margin

27.5% ± 1%

Operating Expenses$825 million ± $25 million

Interest (income) expense, net$35 million

Diluted EPS*

$0.47 ± $0.07

FY-21
CapEx

~$9 billion*Based on ~1.15 billion diluted shares
18

September 29, 2020

Other Key Data
19

September 29, 2020

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

FQ4-20% ofRevenue% of
Revenue

FQ4-19% ofRevenue$6,056100%$5,438100%$4,870100%

Gross margin

2,111

35%

1,804

33%

1,491

31%

Operating income

1,302

21%

981

18%

694

14%

Income tax (provision) benefit

(46)

(29)
20%

1,229

Diluted earnings per share

1.08

0.82

0.56

Cash provided by operating activities

2,271

2,023

2,233

Cash, marketable investments, andrestricted cash

9,256

9,288

9,246

September 29, 2020

941

(64)

Net income attributable to Micron

See Non-GAAP reconciliations
20

FQ3-20

17%

637

13%

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

21% of
Revenue

FY-20

% of
Revenue

FY-19$21,435

100%$23,406100%

Gross margin

6,718

31%

10,97347%

Operating income

3,419

16%

7,801

33%

Income tax (provision) benefit(134)

Net income attributable to Micron

3,235

Diluted earnings per share

2.83

6.35

Cash provided by operating activities

8,306

13,189September 29, 2020

(579)
15%

7,314

31%

Non-GAAP Financial Data and Guidance% of Revenue

FQ4-20 Non-GAAP

FQ4-20

DRAM

72%

NAND

25%

(amounts in millions,
except per share)

Revenue$

Gross margin% Sales Volume Change

FQ4-20 Q/Q

DRAM

Increased mid-20% range

NAND

Flat

6,056

27.5% ± 1%

Operating expenses$

809$825 million ± $25 million

Interest (income) expense, net$

31$35 million

Earnings per share

$

1.08

$0.47 ± $0.07

FQ4-20 Non-GAAP

DRAM

NAND

FQ4-20 Q/Q
Decreased lower-single-digit
percent range
Decreased upper-single-digit
percent range

Diluted shares

1,142

FQ1-21
Non-GAAP Estimates~1.15 billion

Income tax (provision) benefit

$

(46)

Operating cash flow

$

2,271

—

Depreciation and amortization

$

1,560

—

Investments in capex, net(capital cash flow)

$

2,160

FY-21: ~$9 billion

See Non-GAAP reconciliations
22$5.2 billion ± $200 million

34.9%(amounts in millions)% ASP Change

FQ1-21
Non-GAAP Guidance

September 29, 2020

High-single-digit rate

Revenue by Technology
Amounts in millions% of
Revenue

FQ4-20% ofRevenue

FQ4-19% ofRevenueDRAM$4,37172%$3,58766%$3,399

70%

NAND

1,530

25%

1,665

31%

1,204

25%

Other

155

3%

186

3%

267

5%

Total

$6,056100%$5,438100%$4,870100%

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.
23

FQ3-20

September 29, 2020

Revenue by Technology
DRAM$14,51068%$16,841

72%

NAND

6,131

29%

5,355

23%

Other

794

4%

1,210

5%

Total

$21,435

100%$23,406

100%

Percentages of total revenue may not total 100% due to rounding.
September 29, 2020

FY-19

% of
Revenue

FY-20

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.

24

% of
RevenueAmounts in millions

Non-GAAP Reconciliations
25

September 29, 2020

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FQ4-20GAAP 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
Non-GAAP operating expenses$

GAAP operating income
Stock-based compensation$

Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Other
Non-GAAP operating income

26$

September 29, 2020

FQ3-20

2,068
37
—
(1)
7
2,111
911
(52)
—
(50)
809
1,157
89

$

$
$

$
$

FQ4-19

1,763
34
—
—
7
1,804
875
(48)
—
(4)
823
888
82

$

$
$

$
$

1,395
29
12
47
8
1,491
745
(38)
(32)
122
797
650
67

—
(1)
50

—
—
4

12
79
(122)

7
1,302

7
981

8
694

$

$

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FQ4-20GAAP net income attributable to Micron

$

988

$

FQ4-19

803

$

561

Stock-based compensation

89

82

67

Start-up and preproduction costs

—

—

12

Employee severance

(1)

—

79

Restructure and asset impairments

50

4

(122)

Amortization of debt discount and other costs

6

4

10

(Gain) loss on debt repurchases and conversions

—

2

10

Other

7

7

13

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

90

39

7

Non-GAAP net income attributable to Micron

$

1,229

$

941

$

637

GAAP income tax (provision) benefit

$

(136)

$

(68)

$

(71)

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

27

FQ3-2090$

September 29, 2020

(46)

39
$

(29)

7
$

(64)

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FQ4-20GAAP cost of goods sold

$

3,988

$

FQ4-19

3,675

$

3,475

Stock-based compensation

(37)

(34)

(29)

Start-up and preproduction costs

—

—

(12)

Employee severance

1

—

(47)

Other

(7)

(7)

(8)

Non-GAAP cost of goods sold

$

3,945

$

3,634

$

3,379

GAAP selling, general and administrative

$

231

$

216

$

212

Stock-based compensation

(29)

(26)

(18)

Employee severance

—

—

(10)

Non-GAAP selling, general and administrative

$

202

$

190

$

184

GAAP research and development

$

630

$

649

$

623

Stock-based compensation

(23)

(22)

(20)

Employee severance

—

—

(22)

Non-GAAP research and development28

FQ3-20$

September 29, 2020

607

$

627

$

581

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FQ4-20GAAP shares used in diluted EPS calculations
Adjustment for stock-based compensation and capped calls
Non-GAAP shares used in diluted EPS calculations
GAAP diluted earnings per share$

Effects of non-GAAP adjustments

FQ4-19

1,131

1,129

1,128

11

13

6

1,142

1,142

1,134

0.87

$

0.21

0.71

$

0.11

0.49
0.07

Non-GAAP diluted earnings per share

$

1.08

$

0.82

$

0.56

GAAP net income

$

988

$

805

$

586

Interest (income) expense, net

37

28

(18)

Provision (benefit) for income taxes

136

68

71

1,567

1,422

1,416

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

$

2,728

$

2,323

$

2,055

GAAP interest (income) expense, net

$

37

$

28

$

(18)

Amortization of debt discount and other costs(6)

Non-GAAP interest (income) expense, net

29

FQ3-20$

September 29, 2020

31

(4)
$

24

(10)
$

(28)

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FQ4-20Net cash provided by operating activities

$

2,271

FQ3-20$2,023

FQ4-19$2,233

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

(2,268)(1,937)(1,983)

Payments on equipment purchase contracts

(14)

(20)

(21)

Amounts funded by partners

122

35

80

Adjusted free cash flow

$

111

$

Amounts in millions$

FQ4-20Cash and short-term investments$

Current and noncurrent restricted cash

309

FQ3-20

8,142

$

8,658

66

53

Long-term marketable investments

1,048

577

Current and long-term debt

(6,643)(6,686)

Net cash$*Expenditures for property, plant and equipment, net include proceeds from sales ofproperty, plant, and equipment of $12 million for FQ4-20, $7 million for FQ3-20, and $45
million for FQ4-19.
30

101

September 29, 2020

2,613

$

2,602

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

FY-20

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
Stock-based compensation
Start-up and preproduction costs$

Employee severance
Restructure and asset impairments
Other
Non-GAAP operating income
31$
September 29, 2020

FY-19
6,552
139
—
—
27
6,718
3,549
(189)
—
(60)
(1)
3,299
3,003
328
—
—
60
28
3,419

$

$
$

$
$

$

10,702102
58
73
38
10,973
3,326
(141)
(43)
32
(2)
3,172
7,376
243
58
116
(32)
40
7,801

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

FY-20

GAAP 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
Other
Estimated tax effects of above, non-cash changes in net deferred income taxes, assessmentsof tax exposures, and impact of U.S. income tax reform

32

FY-19
2,687
328
—

$

6,313
243
58

—
60
26
(40)
28

116
(32)
49
396
57

146

114

Non-GAAP net income attributable to Micron

$

3,235

$

7,314

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

$

(280)

$

(693)

Non-GAAP income tax (provision) benefit

$

146
(134)

$

114
(579)

September 29, 2020

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

FY-20

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

33$

September 29, 2020

FY-19

14,883
(139)
—
—
(27)
14,717
881
(103)
—
778
2,600
(86)
—
(1)
2,513

$

$
$

$
$

$

12,704
(102)
(58)
(73)
(38)
12,433
836
(73)
(15)
748
2,441
(68)
(28)
(2)
2,343

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FY-20

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

Effects of non-GAAP adjustments

1,131

1,143

10

7

1,141

1,150

2.37

$

0.46

5.51
0.84

Non-GAAP diluted earnings per share

$

2.83

$

6.35

GAAP net income

$

2,687

$

6,358

Interest (income) expense, net

80

(77)

Provision (benefit) for income taxes

280

693

5,650

5,424

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

$

8,697

$

12,398GAAP interest (income) expense, net

$

80

$

(77)

Amortization of debt discount and other costs(26)

Non-GAAP interest (income) expense, net

34

FY-19

$

September 29, 2020

54

(49)
$

(126)

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FY-20

Net cash provided by operating activities

$

FY-19

8,306

$

13,189Investments in capital expenditures, net
Expenditures for property, plant, and equipment, net*

(8,154)(9,634)

Payments on equipment purchase contracts

(63)

(75)

Amounts funded by partners

272

754

Adjusted free cash flow$

Amounts in millions

$

FY-20

Cash and short-term investments$

Current and noncurrent restricted cash

4,234

FY-19

8,142

$

7,955

66

127

Long-term marketable investments

1,048

1,164

Current and long-term debt

(6,643)(5,851)

Net cash$*Expenditures for property, plant and equipment, net include proceeds from sales ofproperty, plant, and equipment of $69 million for FY-20 and $146 million for FY-19.
35

361

September 29, 2020

2,613

$

3,395

FQ1-21
Guidance
Non-GAAP Reconciliations
GAAP
Revenue

Adjustments$5.2 billion ± $200 million—

26.5% ± 1.5%

1%A

27.5% ± 1%$873 million ± $25 million$48 million

B$825 million ± $25 million$37 million$2 millionC$35 million$0.39 ± $0.07$0.08

Gross margin
Operating expenses

Non-GAAP

Interest (income) expense, net
Diluted EPS*

$5.2 billion ± $200 million

A,B,C,D$0.47 ± $0.07

Adjustments (amounts in millions)A

Stock-based compensation – cost of goods soldA

Other – cost of goods sold

7

B

Stock-based compensation – sales, general, and administrative

25

B

Stock-based compensation – research and development

23

C

Amortization of debt discount and other costs

2

D

Tax effects of the above items and non-cash changes in net deferred income taxes

(1)

$

$

39

95

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 ~1.15 billion diluted shares
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September 29, 2020

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