Financial
results
FQ1 2024

Safe harbor statement
During the course of this meeting, we may make projections or other forward-looking statements regarding
market demand and supply, pricing, cost reductions, expected product volume production, expected productannouncements, future events or the future financial performance or expected financial projections of theCompany and the industry. We wish to caution you that such statements are predictions, and that actual eventsor results may differ materially. We refer you to the documents the Company files from time to time with the
Securities and Exchange Commission, including the Company’s most recent Form 10-K and Form 10-Q.
These documents contain and identify important factors that could cause the actual results for the Company todiffer materially from those contained in our projections or forward-looking statements. These certain factors
can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in theforward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance,or achievements. We are under no duty to update any of the forward-looking statements to conform thesestatements to actual results.
This presentation includes Non-GAAP financial measures. Non-GAAP financial measures represent GAAP
measures, excluding the impact of certain activities, which management excludes in analyzing our operating
results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further
information regarding Micron's use of non-GAAP measures and reconciliations between GAAP and non-GAAP
measures are included in the Appendix.
December 20, 2023

2

Sanjay Mehrotra
President and CEO

December 20, 2023

3

Overview• In fiscal Q1, Micron delivered revenue, gross margin and
EPS above the high end of the guidance ranges weprovided at the last earnings call, reflecting Micron’sstrong execution combined with improved pricing.
• We are in the very early stages of a multi-year growthphase catalyzed and driven by generative AI, and thisdisruptive technology will eventually transform every
aspect of business and society.

• We intend to stay very disciplined with our supply andcapacity investments as our pricing is still far from levels
associated with necessary ROI. We expect our pricing
to continue to strengthen through the course ofcalendar 2024.
• We expect improved margins and financial performancethroughout 2024, and record industry TAM in
calendar 2025.

September20,
28,2023
2023
December

4

Technology

End markets overview• The vast majority of our bits are on leading-edge
nodes: 1-alpha and 1-beta in DRAM and 176-layerand 232-layer in NAND.
• Both 1-beta DRAM and 232-layer NAND nodes havereached mature yields faster than the prior nodes.

• Inventories for memory and storage are at or near normal
levels for most customers across PC, mobile, auto andindustrial end markets. Data center customer inventory of
memory and storage is improving and we expect toapproach normal levels sometime in the first half ofcalendar 2024.

• We expect fiscal 2024 front-end cost reductions totrack in line with our long-term expectations of midto-high single digits in DRAM and low teens in NAND.

• Across our data center and PC markets we are ahead of
the industry in our transition to D5 and we expect to crossover our D5 volume from D4 in early calendar 2024.

• We are on track for volume production in 1-gamma
DRAM using EUV in calendar 2025.

• AI market expansion is driving higher capacity, lower
power, and increased performance requirements formemory and storage.

December 20, 2023

5

End market highlights
Data
center• Total server unit shipments are expected to increase by a mid-single digit
percentage in calendar 2024, following a year of low double-digit
percentage decline in calendar 2023.
• In response to AI-driven data center demand, several customers haveannounced aggressive roadmaps for new GPU and AI accelerator ASIC
product introductions with increasing requirements for HBM capacity,
performance, and power. Micron is addressing these exciting opportunities
brought on by the proliferation of AI with an industry-leading portfolio of data
center solutions, including HBM3E, D5, several types of high capacity
server memory modules, LPDRAM, and data center SSDs.
• HBM: We have received very positive customer feedback on our HBM3E,
which has approximately 10% better performance and about 30% lower
power consumption compared to competitive offerings of HBM3E. In fiscal
Q1, we shipped samples of HBM3E to a number of key partners and aremaking good progress in our qualifications. Micron is in the final stages ofqualifying our industry-leading HBM3E to be used in NVIDIA's next
generation Grace Hopper GH200 and H200 platforms. In addition, our LP5x
is being used for the Grace CPU, driving a new use case for LP memory inthe data center for accelerated computing.

• We are on track to begin our HBM3E volume production ramp in early
calendar 2024 and to generate several hundred millions of dollars of HBM
revenue in fiscal 2024. We expect continued HBM revenue growth in 2025,
and we continue to expect that our HBM market share will match our overall
DRAM bit share sometime in calendar 2025.
• 128GB Modules: Last month we introduced the fastest, lowest latency,
high-capacity, monolithic-die based 128GB modules based on our industryleading 1-beta node. Our high-density monolithic dies do not require 3D
stacking, enabling a simpler process flow for assembly. Additionally, leading
CPU vendors have confirmed validation support for our monolithic-die
based 128GB modules on existing platforms released in 2022 and 2023
as well as upcoming new platforms. This ensures that our offering has asignificant TAM that we can address immediately. We expect volume
production to start next quarter, with significant growth in fiscal 2025
and beyond.
• Data center SSDs: Micron ended the third calendar quarter with recordhigh revenue share in data center SSDs, based on independent industry
assessments. This marks the second consecutive quarter of record revenue
share in data center SSDs, and we look to build on this revenue momentum
through fiscal 2024.

December 20, 2023

6

End market highlights
PC• PC: We forecast unit volumes to grow by a low to mid-single digit
percentage in calendar 2024, after two years of double digit percentage PC
unit volume declines.
• We expect PC OEMs to start ramping AI-on-device PCs in the second halfof calendar 2024, with an additional capacity of 4 to 8GB of DRAM per unit,
and we see average SSD capacities increasing as well. We also completedqualifications for our industry-leading 1-beta based 16Gb D5 at several PC
customers in fiscal Q1.
• In fiscal Q1, we achieved record bit shipments in both client and consumer
SSDs, as customers adopted our industry-leading solutions. Building upon
our QLC leadership, our client SSD QLC bit shipments also reached a newrecord in fiscal Q1. QLC now comprises the majority of our bit shipment mix
for both client and consumer SSD.
• This month, we also announced we are shipping the Micron 3500 NVMe
SSD, the world’s first performance client SSD with 200+ layer NAND. Built
on our industry-leading 232-layer NAND, the 3500 will help our customers
handle demanding workloads for business applications, scientificcomputing, gaming and content creation.

Mobile andintelligent edge
• Mobile: Smartphone demand is showing signs of recovery, and we forecast
smartphone unit shipments to grow modestly in calendar 2024. We expect
smartphone OEMs to start ramping AI-enabled smartphones in 2024, withan additional capacity of 4 to 8GB of DRAM per unit. Our new industryleading 9.6Gbps LP5x will address the bandwidth requirements of the mostdemanding AI-based mobile applications. We also began sampling ournext-generation 232-layer NAND UFS 3.1 and our 1-beta DRAM 24GB
LP5x to support the memory needs of emerging AI foundational models.
• Automotive: Our automotive business achieved a new quarterly revenue
record in fiscal Q1, driven by better demand and volume ramps of newvehicle platforms. Our automotive design win trajectory remains strong.
• Industrial: Our industrial business saw double-digit sequential growth infiscal Q1 as the industrial market continued to recover. Inventory levels formemory and storage continued to improve at distribution partners, and areat normal levels at the majority of our customers. Industry fundamentals
remain strong for memory and storage as the widespread adoption of IoT,
AI and machine learning solutions create new growth opportunities for us.

December 20, 2023

7

Outlook and Capex plan
• Demand: We expect calendar 2023 DRAM bit demand to grow in the high-single digit
percentage range, up from prior expectations for mid-single-digit growth. In NAND, we
continue to expect calendar 2023 bit demand growth in the high-teens percentage range.
Looking forward, over the next few years, we expect bit demand growth CAGRs of midteens in DRAM and low-20s percentage range in NAND. We forecast calendar 2024 bit
demand growth for the industry to be near the long-term CAGR for DRAM and somewhat
below the long-term CAGR for NAND.
• Supply: Micron’s bit supply growth in fiscal 2024 is planned to be well below demand
growth for both DRAM and NAND, and we expect to decrease our days of inventory infiscal year 2024. We expect calendar 2024 industry supply to be below demand for both
DRAM and NAND, which will result in a contraction of industry inventory levels.
• The ramp of HBM production will constrain supply growth in non-HBM products and will
help improve the overall DRAM industry supply-demand balance. HBM will consume morethan two times the wafer supply as D5 to produce a given number of bits.
• In last quarter’s earnings call, we communicated that we strategically diverted underutilized
equipment toward ramping new technology nodes, which will help us increase leadingedge production in a capital efficient manner. Since the number of wafer processing steps
is higher for leading-edge nodes, this approach of diverting underutilized tools to theleading edge meaningfully reduces our overall wafer capacity. Thus, underutilization in our
fabs early this fiscal year transitions to structurally lower wafer capacity at higher utilization
rates as we move through the fiscal year.

Capex plan:• Micron’s fiscal 2024 capex isprojected to be between $7.5
billion and $8.0 billion, slightly
higher than last year’s levels andprior plans, primarily to support
the HBM3E production ramp.
• We continue to expect WFE
capex in fiscal 2024 to be down
year over year.
• We have opened state-of-the-art
assembly and test facilities in
Malaysia and Taiwan. We areproceeding with our previously
announced expansion of our
Xi'an facility, having received
approval from Chinese
authorities for our planned
investment.

December 20, 2023

8Mark Murphy
Chief Financial Officer

December 20, 2023

9

FQ1-24 revenue

Revenue up 18% Q/Q
and up 16% Y/Y

December 20, 202310

Performance by technology
DRAM Q1-24

NAND Q1-24• $3.4 billion, representing 73% of total revenue• $1.2 billion, representing 26% of total revenue• Revenue increased 24% Q/Q• Revenue increased 2% Q/Q• Bit shipments increased in the low-20s
percentage range Q/Q• Bit shipments decreased in the mid-teens
percentage range• ASPs increased in the low-single digit
percentage range Q/Q• ASPs increased by approximately 20%

December 20, 2023

11

Revenue by business unit

Amounts in millions

FQ1-24FQ4-23Q/Q %Change

FQ1-23

Y/Y %ChangeCompute and Networking (CNBU)$1,737$1,20045%$1,746(1%)

Mobile (MBU)$1,293$1,211

7%

$ 655

97%

Embedded (EBU)$1,037$ 860

21%$1,0004%

Storage (SBU)

$ 653

$ 739

(12%)

$ 680

(4%)

December 20, 2023

12

FQ1-24
Non-GAAP operating results
Revenue: $4.7 billion

Gross margin: 1%
Operating expenses: $992 million
Operating income (loss): ($955 million)
Net income (loss): ($1.0 billion)
Diluted earnings (loss) per share: ($0.95)
Cash from operations (GAAP): $1.4 billion

See non-GAAP reconciliations in Appendix
December 20, 2023

13

Cash flow and capital allocation
From FY-21 to FQ1-24:

Cash flowfrom operations

FQ1-24: $1.4B

Net CapEx1

FQ1-24: CapEx of $1.7B
FY-24: CapEx guidance between $7.5B and $8.0B

Adjusted FCF*

FQ1-24: Negative $333M

Buybacks

FQ1-24: Temporarily suspended

Dividends

Dividend payment of $0.115 per share will be
paid January 18th

Liquidity2$12.3B in liquidity at end of FQ1-24• $4.1 billion towards repurchasing 60 million shares• $5.2 billion returned to shareholders from share
repurchases and dividends

1CapEx net of proceeds from government incentives and proceeds from sales of property, plant, and equipment
2Cash, short-term and long-term marketable investments, restricted cash, and undrawn revolver capacity*Adjusted free cash flow is a non-GAAP measure defined as net cash provided by operating activities less investments in capital expenditures net of proceeds from government incentives and proceeds from sales of property, plant, and equipment.

December 20, 2023

14

FQ2-24 guidanceNon-GAAP
Revenue$5.30 billion ± $200 million

Gross margin

13.0% ± 1.5%

Operating expenses$950 million ± $15 million

Diluted earnings (loss) per share*($0.28) ± $0.07*Based on ~1.10 billion diluted shares
See non-GAAP reconciliations in Appendix
December 20, 2023

15

Appendix

December 20, 2023

16

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

FQ1-24% ofRevenue

FQ4-23% ofRevenue

FQ1-23% ofRevenue$4,726100%$4,010100%$4,085

100%

37

1%

(366)

(9%)

934

23%

Operating income (loss)

(955)

(20%)

(1,208)

(30%)

(65)

(2%)

Income tax (provision) benefit(59)

Gross margin

14
(22%)

(1,177)(1)

Net income (loss)(1,048)

(29%)

(39)

Diluted earnings (loss) per share(0.95)(1.07)(0.04)Cash provided by operating
activities (GAAP)

1,401

249

943

Cash, marketable investments, andrestricted cash (GAAP)

9,839

10,517

12,097(1%)

See non-GAAP reconciliations

December 20, 2023

17

Non-GAAP financial data and guidance% of Revenue

FQ1-24 Non-GAAP

FQ1-24

DRAM

73%

NAND

26%

Revenue$

Gross margin% Sales Volume Change

FQ1-24 Q/Q

DRAM

Increased in the low-20s
percentage range

NAND

Decreased in the mid-teens
percentage range

FQ2-24
Non-GAAP Guidance(amounts in millions,
except per share)

4,726$5.30 billion ± $200 million

1%13.0% ± 1.5%$950 million ± $15 million

Operating expenses$

992

Diluted earnings (loss)
per share$(0.95)($0.28) ± $0.07

FQ1-24 Non-GAAP(amounts in millions)% ASP Change

FQ1-24 Q/Q
Diluted shares

DRAM

NAND

FQ2-24
Non-GAAP Estimates

Increased in the low-single
digit percentage range
Increased by approximately
20 percent

1,100~1.10 billion~($45) million

Income tax (provision) benefit

$

(59)

Cash from operations (GAAP)

$

1,401

—

Investments in capex, net(capital cash flow)$(1,734)

FY-24: between $7.5 billion
and $8.0 billion

See non-GAAP reconciliations

December 20, 2023

18

Revenue by technology
Amounts in millions
DRAM

$

NAND
Other (primarily NOR)
Total

% of
Revenue

FQ1-24$% ofRevenue

FQ4-23% ofRevenue

FQ1-23

3,427

73% $

2,755

69% $

2,829

69%

1,230

26%

1,205

30%

1,103

27%

69

1%

50

1%

153

4%

4,726

100% $

4,010

100% $

4,085

100%

Percentages of total revenue may not total 100% due to rounding.
December 20, 2023

19

Non-GAAP
reconciliations

December 20, 2023

20

Consolidated results
Non-GAAP reconciliations
Amounts in millions
GAAP gross margin

FQ1-24$FQ4-23

FQ1-23(35) $(435) $

893

Stock-based compensation

67

64

36

Other

5

5

5

Non-GAAP gross margin

$

37 $

(366) $

934

GAAP operating expenses$

1,093 $

1,037 $

1,102

(115)

(87)

(90)

Restructure and asset impairments

—

(4)

(13)

Goodwill impairment

—

(101)

—

Other

14

(3)

—

Stock-based compensation

Non-GAAP operating expenses

$

992 $

842 $

999

GAAP operating income (loss)$(1,128) $(1,472) $(209)

Stock-based compensation

182

151

126

Restructure and asset impairments

—

4

13

Goodwill impairment

—

101

—

Other

(9)

8

5

(955) $

(1,208) $(65)

Non-GAAP operating income (loss)$

December 20, 2023

21

Consolidated results
Non-GAAP reconciliations
Amounts in millions
GAAP cost of goods sold

FQ1-24$FQ4-23

FQ1-23

4,761 $

4,445 $

3,192

Stock-based compensation

(67)

(64)

(36)

Other

(5)

(5)

(5)

Non-GAAP cost of goods sold$4,689 $

4,376 $

3,151

GAAP research and development

$

845 $

719 $

849

Stock-based compensation

(68)

(57)

(53)

Other

14

—

—

Non-GAAP research and development

$

791 $

662 $

796

GAAP selling, general, and administrative

$

263 $

219 $

251

(47)

(30)

(37)

216 $

189 $

214

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

December 20, 2023

22

Consolidated results
Non-GAAP reconciliations
Amounts in millions
GAAP net income (loss)

FQ1-24$FQ4-23

FQ1-23(1,234) $(1,430) $(195)

Stock-based compensation

182

151

126

Restructure and asset impairments

—

4

13

Goodwill impairment

—

101

—

Other

(10)

7

10

Estimated tax effects of above and other tax adjustments

14

(10)

7

Non-GAAP net income (loss)$(1,048) $(1,177) $(39)

GAAP income tax (provision) benefit$(73) $

24 $

(8)

14

(10)

7

(59) $

14 $(1)

Estimated tax effects of non-GAAP adjustments and other tax adjustments
Non-GAAP income tax (provision) benefit$

December 20, 2023

23

Consolidated results
Non-GAAP reconciliations
Amounts in millions, except per share
GAAP diluted earnings (loss) per share

FQ1-24$

Effects of non-GAAP adjustments

FQ4-23

FQ1-23(1.12) $(1.31) $(0.18)

0.17

0.24

0.14

Non-GAAP diluted earnings (loss) per share$(0.95) $(1.07) $(0.04)Net cash provided by operating activities$

1,401 $

249 $

943

Expenditures for property, plant, and equipment(1,796)(1,461)(2,449)Payments on equipment purchase contracts

(56)

(26)

(47)

Proceeds from sales of property, plant, and equipment

33

18

23

Proceeds from government incentives

85

462

2

(1,734)(1,007)(2,471)

Investments in capital expenditures, net
Adjusted free cash flow$(333) $

(758) $

(1,528)December 20, 2023

24

FQ2-24 guidanceNon-GAAP reconciliations
GAAP

Adjustments

Non-GAAP

Revenue$5.30 billion ± $200 million—$5.30 billion ± $200 million

Gross margin

12.0% ± 1.5%

1.0%

A

13.0% ± 1.5%

Operating expenses$1.07 billion ± $15 million$122 million

B$950 million ± $15 million

Diluted earnings (loss) per share*($0.45) ± $0.07

$0.17

A,B,C

($0.28) ± $0.07

Non-GAAP Adjustments (amounts in millions)A

Stock-based compensation – cost of goods soldA

Other – cost of goods sold

4

B

Stock-based compensation – research and development

77

B

Stock-based compensation – selling, general, and administrative45

C

Tax effects of the above items and other tax adjustments

(13)

$

$

75

188

*GAAP and non-GAAP earnings (loss) per share based on approximately 1.10 billion diluted shares.
The above guidance does not incorporate the impact of any potential business combinations, divestitures, additional 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.

December 20, 2023

25

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