Financial Results
FQ3 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, theMicron 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.

3

June 25, 2019

Sanjay Mehrotra
President and CEO
4

June 25, 2019

FQ3-19 Highlights§ Delivered solid results despite headwinds of industry oversupply and steeper than expected price declines, reflecting
technology advancement and product cost reduction§ Healthy balance sheet, structurally improved profitability, and winning team position us well for when industry
environment recovers§ Long-term demand outlook for memory and storage is robust, driven by broad secular trends such as AI, autonomousvehicles, 5G and IoT§ Customer inventory corrections have proceeded broadly in line with our expectations in most end markets and reinforces
confidence in return to healthy Y/Y DRAM bit demand growth in 2HCY19; NAND bit demand is also increasing in mostmarkets as elasticity kicks in§ Further cuts in capex and production required to bring industry supply-demand into balance

5

June 25, 2019

Continued
StrongTechnology
and Roadmap
Execution> 2000 basis points of EBITDA
margin improvement relative topeers since FY2016
Expect healthy Y/Y cost declines inboth DRAM and NAND this fiscal
year

6

DRAM

NAND

1y-nm: continuing to increase mix

Continue to ramp 96 layer and on track todeliver healthy cost declines in FY2019

1z-nm: excellent progress towards
ramping next fiscal year

Good progress on 128-layer 3D NAND
which use replacement gate

Broke ground in April for cleanroom
expansion at Taichung facility to enable
future nodes

High-value solutions: now over two-thirdsof NAND revenues

ASSEMBLY & TEST
Captive back-end packaging facilities now account for
more than half of our total assembly requirements

FQ3-19 Accomplishments§ SSDs− Strengthening SSD portfolio with launch of 9300 Datacenter NVMe SSDs for cloud and enterprise markets− More than doubled revenue shipments of NVMe Client SSD to large PC OEMs (built with our own controller)− QLC SSD bit shipments increased ~75% sequentially driven by growth of our consumer NVMe SSDs
§ Mobile− Micron’s mobile DRAM features best-in-class power consumption− Leading on LPDDR5: started sampling highest density LPDDR5 die− Recently launched 2nd-gen UFS product with best-in-class endurance§ Data Center & Graphics− Cloud customers are turning the corner on inventories; most are approaching normal levels− Continue to sample and qualify 64GB DDR4 server modules built with 1Y-nm DRAM
§ Automotive− Leading market share, deep customer relationships, and well-established product quality− Content growth driven by advanced in-vehicle infotainment and ADAS
− Began ramping shipments to a leading OEM for their most advanced autonomous system; uses 16 GB of our LPDRAM
7June 25, 2019Comments on Huawei§ Effective May 16, the US Commerce Department’s Bureau of Industry and Security (BIS) added Huawei and 68 of its
non-US affiliates to the BIS Entity List
§ To ensure compliance, Micron immediately suspended shipments to Huawei and began a review of Micron products soldto Huawei to determine whether they are subject to the imposed restrictions§ Through this review, we determined that we could lawfully resume shipping a subset of current products because they
are not subject to Export Administration Regulations and Entity List restrictions§ We have started shipping some orders of those products to Huawei in the last two weeks§ However, there is considerable ongoing uncertainty surrounding the Huawei situation, and we are unable to predict thevolumes or time periods over which we’ll be able to ship products to Huawei§ Micron will continue to comply with all government and legal requirements, just as we do in all our operations globally§ Of course, we cannot predict whether additional government actions may further impact our ability to ship to Huawei

8June 25, 2019

CY2019 Industry Outlook

9

DRAM

§ Anticipate healthy Y/Y bit demand growth in 2HCY19§ CY2019 bit demand growth in mid-teens; industry bit supply growth
tracking to mid-to-high teens§ Continuing with previously announced 5% idling of wafer starts

NAND§ CY2019 bit demand growth in mid-30s; industry bit supply growth in high-30s§ Targeting bit shipments to grow close to industry bit demand growth rate
§ Reducing our wafer starts by ~10%, an increase from 5% previously

June 25, 2019

Dave Zinsner
Chief Financial Officer

10

June 25, 2019

FQ3-19 Revenue$4.8B
Revenue down 39% Y/Y and down 18% Q/Q

11June 25, 2019

Performance by
Product Line

12

DRAM

§ 64% of overall company revenue in FQ3-19§ Revenue down 19% Q/Q and down 45% Y/Y§ ASPs approached down 20% Q/Q§ Shipment quantities relatively flat Q/Q

NAND§ 31% of overall company revenue in FQ3-19§ Revenue down 18% Q/Q and down 25% Y/Y§ ASPs down mid-teens percent range Q/Q§ Bit shipments down mid-single-digit percent range
Q/Q
June 25, 2019

Revenue by Business Unit

13

FQ3-19

FQ2-19Q/Q % Change

FQ3-18Y/Y % Change

Compute and Networking (CNBU)$2.08B$2.38B(13)%$3.99B(48)%

Mobile (MBU)$1.17B$1.61B(27)%$1.75B(33)%

Storage (SBU)$813M$1.02B(20)%$1.14B(29)%

Embedded (EBU)

$700M

$799M

(12)%

$897M

(22)%

June 25, 2019

FQ3-2019
Non-GAAP Operating Results
Revenue: $4.8 billion
Gross Margin: 39%
Net Income: $1.2 billion
Diluted EPS: $1.05
Operating Expenses: $774 million
Operating Income: $1.1 billion
Cash from Operations: $2.7 billion

14Capital Allocation~8% reduction in outstanding shares since FQ3-18~70% of ~$3.8B in free cash
flow used for repurchases YTD(67M shares)

Cash
ReturnNet
CapEx

FY19 capex of ~$9B
1(High ROIC Node transitions + elevatedlevel of buildings and facilities capex)

2043 convert redeemed in FQ3(effectively eliminated ~9M sharesfrom fully diluted count)$3.0B of net cash
at end of FQ3

3

Cash-Debt

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 cash

15

June 25, 20192

Liquidity~$10B in liquidity at end of FQ3

FQ4-19 GuidanceNon-GAAP

Revenue$4.5 billion ± $200 million

Gross margin

29% ± 1.5%

Operating expenses$785 million ± $25 million

Diluted EPS*

16

*Based on ~1.13 billion diluted shares$0.45 ± $0.07

June 25, 2019

Q&A

17

May 21, 2018

Other Key Data

18

June 25, 2019

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

FQ2-19% of Revenue

FQ3-18% of Revenue

Revenue$4,788100%$5,835100%$7,797100%

Gross margin

1,884

39%

2,928

50%

4,750

61%

Operating income

1,110

23%

2,110

36%

4,017

52%

Income tax (provision) benefit

19

FQ3-19

63

(178)
25%

Net income attributable to Micron

1,198

Diluted earnings per share

1.05

1.71

3.15

Cash provided by operating activities

2,711

3,435

4,261

Cash, marketable investments, andrestricted cash

7,933

9,223

7,677

June 25, 2019

1,971

(97)
34%

3,898

50%

Non-GAAP Financial Data and Guidance% of Revenue

FQ3-19 Non-GAAP(amounts in millions,
except per share)

FQ3-19

DRAM

64%

NAND

31%

FQ3-19Q/Q% Sales Volume Change
DRAM

Relatively flat

NAND

Decreased mid-single-digit
percent range

Revenue$

Gross margin39%

FQ3-19
Q/Q

20

DRAM

Approaching 20% decline

NAND

Decreased mid-teens
percent range

See Non-GAAP reconciliations*Net of amounts funded by partners$4.5 billion ± $200 million
29% ± 1.5%

Operating expenses$

774$785 million ± $25 million

Earnings per share

$

1.05

$0.45 ± $0.07

FQ3-19 Non-GAAP(amounts
in millions)
Diluted shares% ASP Change

4,788

FQ4-19 Non-GAAP Guidance

FQ4-19 Non-GAAP Estimates

1,135~1.13 billion

Income tax (provision) benefit$

63

FY19: ~9% of PBTOperating cash flow

$

2,711

—

Depreciation and amortization

$

1,354

—

Capital expenditures(Capital cash flow)*

$

2,207

FY19: ~$9 billion

June 25, 2019

Convertible Notes Dilution Overview(shares in millions)
Actual
FQ3-19*

$23

$26

$29

$32

$35

$38

$41

$44

$47

$50

$53

10

8

8

9

9

10

10

10

10

11

11

11

2033 F Notes
Total dilutive shares

4
14

3
11

3
11

4
13

4
13

4
14

4
14

4
14

4
14

4
15

5
16

5
16

Benefit from capped call
Net dilution

(2)
12

(4)
7

(4)
7

(3)
10

(3)
10

(3)
11

(3)
11

(2)
12

(2)
12

(2)
13

(2)
14

(2)
14

Stock Price2032 D Notes

Note: Except for FQ3-19 dilution, the table above presents the potential dilutive impact of convertible
notes outstanding as of May 30, 2019 over the range of trading prices for Micron’s stock.
*Represents the actual dilutive impact of convertible notes for FQ3-19 diluted sharecount based on an average share price of $40.03 for the quarter.

21

June 25, 2019

Non-GAAP Reconciliations

22

June 25, 2019

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

FQ3-191,828 $

FQ2-192,864 $

FQ3-18
4,723

$

24
23
—
9
1,884 $

23
15
13
13
2,928 $

20
—
—
7
4,750

818 $
(34)
—

907 $
(34)
(4)

770
(28)
—

(9)
(1)

(51)
—

(8)
(1)

$

Restructure and asset impairments
Other
Non-GAAP operating expenses

$

774 $

818 $

733

GAAP operating income
Stock-based compensation
Start-up and preproduction costs
Employee severance
Restructure and asset impairments$

1,010 $
58
23—
9

1,957 $
57
15
17
51

3,953
48
—
—
8

10
1,110 $

13
2,110 $

8
4,017

Other
Non-GAAP operating income

23$

June 25, 2019

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

FQ3-19$(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 oftax exposures
Non-GAAP net income attributable to Micron
GAAP income tax (provision) benefit

June 25, 2019

FQ3-18
3,823
48
—
—
8
23

317
1
12
(42)

83
3
13
(14)

168
24
10
(222)

$

(30)
1,198 $

116
1,971 $

16
3,898

$

135 $

109

(42)

(280) $
(14)

(222)

(30)
63 $

116
(178) $

16
(97)

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

24

840 $
58
23
—
9
10

FQ2-191,619 $
57
15
17
51
11

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions except per share amounts
GAAP cost of goods sold$

Stock-based compensation
Start-up and preproduction costs

FQ2-192,971 $

FQ3-18
3,074

(24)
(23)

(23)
(15)

(20)
—

—
(9)
2,904 $

(13)
(13)
2,907 $

—
(7)
3,047

206 $
(18)

209 $
(18)

211
(14)

—
188 $

(3)
188 $

—
197

601 $
(16)
(1)

603

Stock-based compensation
Employee severance

606 $
(16)
(1)

Other
Non-GAAP research and development

—
589 $

—
584 $

(1)
588

Employee severance
Other
Non-GAAP cost of goods sold$

GAAP selling, general and administrative
Stock-based compensation

25

FQ3-192,960 $$

Employee severance
Non-GAAP selling, general and administrative$

GAAP research and development$$

June 25, 2019(14)—

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions except per share amounts
GAAP shares used in diluted EPS calculations
Adjustment for capped calls and stock-based compensation
Non-GAAP shares used in diluted EPS calculations

FQ3-19
1,129
6
1,135

FQ3-18
1,235
3
1,238

GAAP diluted earnings per share
Effects of non-GAAP adjustments$

0.74 $
0.31

1.42 $
0.29

3.10
0.05

Non-GAAP diluted earnings per share$

1.05 $

1.71 $

3.15

GAAP net income

$

851 $
(23)
(135)
1,360

1,625 $
(31)
280
1,313

3,823

Interest (income) expense, net
Provision (benefit) for income taxes
Depreciation and amortization of property, plant, and equipment and intangibles

26

FQ2-19
1,141
8
1,149

44
(109)
1,233

EBITDA

$

2,053 $

3,187 $

4,991

Net cash provided by operating activities
Expenditures for property, plant, and equipment
Payments for equipment purchase contracts
Net partner contributions$

2,711 $
(2,403)(17)213

3,435 $
(2,649)
(17)
219

4,261
(2,411)(17)
328

Adjusted free cash flow

$

504 $

988 $

2,161

June 25, 2019

FQ4-19 GuidanceNon-GAAP Reconciliations
GAAP
Revenue
Gross margin
Operating expenses
Diluted EPS*

Adjustments$4.5 billion ± $200 million—

27% ± 1.5%

2%A

29% ± 1.5%$723 million ± $25 million$62 million

B$785 million ± $25 million$0.41 ± $0.07$0.04

Adjustments (amounts in millions)A
Stock-based compensation and employee severance – cost of goods soldA
Other – cost of goods sold
B
Stock-based compensation and employee severance – sales, general, and administrative
B
B
CC

Non-GAAP$4.5 billion ± $200 million

A,B,C$0.45 ± $0.07$

Stock-based compensation and employee severance – research and development
Restructure and asset impairments
Amortization of debt discount and other costs
Tax effects of the above items and non-cash changes in net deferred income taxes

77
16
27
31
(120)
9
6

$

46

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 ~1.12 billion diluted shares and Non-GAAP EPS based on ~1.13 billion diluted shares

27

June 25, 2019

28

March 20, 2019