Financial Results
FQ2 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 theSecurities 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

March 20, 2019

Sanjay Mehrotra
President and CEO
4

March 20, 2019

FQ2-19 Highlights▪ Delivered solid results within guidance ranges and healthy levels of profitability and cash flow ina challenging industry environment▪ Strengthened balance sheet by increasing cash position and total liquidity▪ Continued execution on Micron’s strategy to improve cost competitiveness and increase highvalue solutions in our portfolio▪ Positioned to navigate near-term headwinds while investing for long-term growth5

March 20, 2019

Continued Strong Technologyand Roadmap Execution$6 billion improvement in profitability from FY2016 to FY2018

Expect healthy Y/Y cost declines in both DRAM and NAND this fiscal year

DRAM6NAND▪ 1y-nm: yielding well, expect to increase
conversion in second half of FY2019▪ 96-layer 3D NAND: fastest yield ramp of any
NAND product in our history▪ 1z-nm: started sampling products▪ Progressing on replacement gate development;
limited deployment of initial node

▪ Site preparation for cleanroom expansion atTaichung facility to enable future nodes;
production output starting ~CY2021▪ High-value solutions: increased to two-thirds ofNAND revenues in first half of FY2019
March 20, 2019

FQ2-19 Accomplishments▪ SSDs & 3D Xpoint™ Technology− Began revenue shipments to a large PC OEM for our first NVMe client SSD, which uses Micron-designed controller− Introduced consumer and client SATA SSDs based on 96-layer 3D NAND
− Fully ramped custom persistent memory solution for cloud market, which combines DRAM and NAND
− 3D XPoint customer samples planned before calendar year-end▪ Mobile− Expanded gross margins Y/Y despite adverse pricing and weakness in high-end smartphone− Managed NAND bit shipments grew by more than five times Y/Y▪ Data Center & Graphics− Shipped high-density 1y-nm DDR4 server module samples to customers ahead of plan
− Grew sales of high-performance GDDR6 DRAM and expanded customer base

▪ Automotive, Industrial and Consumer− Y/Y revenue growth driven by advanced in-vehicle infotainment and ADAS− Announced industry’s first 1TB microSD card using QLC NAND
7March 20, 2019

CY2019 Industry Outlook

8DRAM▪ Bit shipments to begin increasing in FQ3-19▪ CY2019 bit demand growth in low-to-mid teens; industry bit supply
growth tracking to mid-to-high teens▪ Idling ~5% of DRAM 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 total NAND wafer starts by 5%

March 20, 2019

Dave Zinsner
Chief Financial Officer

9

March 20, 2019

FQ2-19 Revenue

$5.8B
▪
▪

10

Worse than expected DRAM and NAND pricing in FQ2-19
Down 21% Y/Y and down 26% Q/Q

March 20, 2019

Performance byProduct Line11DRAM▪ 64% of overall company revenue in FQ2-19▪ Revenue down 30% Q/Q and down 28% Y/Y▪ ASPs down low-20% range Q/Q▪ Shipment quantities down low double-digit percent
range Q/QNAND▪ 30% of overall company revenue in FQ2-19▪ Revenue down 18% Q/Q and down 2% Y/Y▪ ASPs down mid-20% range Q/Q▪ Bit shipments increased upper single-digit percent
range Q/Q
March 20, 2019

Revenue by Business Unit

12FQ2-19

FQ1-19Q/Q % Change

FQ2-18Y/Y % Change

Compute and Networking (CNBU)$2.38B$3.60B(34)%$3.69B(35)%

Mobile (MBU)$1.61B$2.21B(27)%$1.57B

3%

Storage (SBU)$1.02B$1.14B(11)%$1.25B(19)%

Embedded (EBU)

$799M

$933M

(14)%

$829M

(4)%

March 20, 2019

Non-GAAP Operating Results▪ Revenue: $5.8 billion▪ Gross Margin: 50%▪ Net Income: $1.97 billion▪ Diluted EPS: $1.71▪ Operating Expenses: $818 million▪ Operating Income: $2.1 billion▪ Cash from Operations: $3.4 billion
13

March 20, 2019

Capital Allocation~70% of ~$1B in free cash flowused for repurchases in FQ2(21M shares)

CashReturnNetCapEx

1

Lowered FY19 capex to ~$9B vs.
$9B–$9.5B prior guidance range(Mostly for tech node transitions andcleanroom, not capacity increase)2043 convert redeemed in FQ3(effectively eliminated ~9M sharesfrom fully diluted count)3$3.0B of net cash
at end of FQ2

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

14March 20, 20192Liquidity~$12B in liquidity at end of FQ2(~$10.5B after 2043 convert redemption)

FQ3-19 GuidanceNon-GAAP

Revenue$4.8 billion +/- $200 million
37% – 40%

Gross margin
Operating expenses$785 million +/- $25 million

Diluted EPS*

15

*Based on ~1.14 billion diluted shares$0.85 +/- $0.10

March 20, 2019

Other Key Data16

March 20, 2019

Financial Summary
Non-GAAP
Amounts in millions except per share

17

FQ2-19% of Revenue

FQ1-19% of Revenue

FQ2-18% of Revenue

Revenue$5,835100%$7,913

100%$7,351100%

Gross margin

2,928

50%

4,670

59%

4,296

58%

Operating income

2,11036%

3,887

49%

3,630

49%

Income tax provision(178)

Net income attributable to Micron

1,971

Diluted earnings per share

1.71

2.97

2.82

Cash provided by operating activities

3,435

4,810

4,348

Cash, marketable investments, andrestricted cash

9,223

7,206

8,675(400)34%

March 20, 2019

3,508

(99)
44%

3,495

48%

Non-GAAP Financial Data and Guidance% of Revenue

FQ2-19 Non-GAAP(amounts in millions,except per share)

FQ2-19DRAM

64%

NAND30%Revenue$Gross margin

DRAM

FQ2-19Q/Q
Decreased low double digit
percent range

NAND

Increased upper singledigit percent range% Sales Volume Change

50%

FQ2-19Q/Q

18DRAM

Decreased low-20% range

NAND

Decreased mid-20% range

See Non-GAAP reconciliations*Net of amounts funded by partners$4.8 billion +/- $200 million
37% – 40%

Operating expenses$818$785 million +/- $25 million

Earnings per share$1.71$0.85 +/- $0.10

FQ2-19 Non-GAAP(amountsin millions)
Diluted shares% ASP Change5,835

FQ3-19 Non-GAAP Guidance

FQ3-19 Non-GAAP Estimates

1,149~1.14 billion

Income tax provision$(178)

FY19: ~10.5% of PBTOperating cash flow

$

3,435

—

Depreciation and amortization

$

1,305

—

Capital expenditures(Capital cash flow)*

$

2,447

FY19: ~$9 billion

March 20, 2019

Convertible Notes Dilution Overview(shares in millions)
Actual
FQ2-19*$30

$33

$36

$39

$42$45$48$51$54$57$602032 D Notes

10991010101011111111112033 F Notes

4444555555552043 G Notes

5———————————

Total dilutive shares

1913

13

14

15

15

15

16

16

16

16

16

Benefit from capped call

(3)

(3)

(3)

(3)

(3)

(2)

(2)

(2)

(2)

(2)

(2)

(2)

Net dilution

1610

10

11

12

13

13

14

14

14

14

14

Stock Price

Note: Except for FQ2-19 dilution, the table above presents the potential dilutive impact of convertible
notes outstanding as of February 28, 2019 over the range of trading prices for Micron’s stock.
*Represents the actual dilutive impact of convertible notes for FQ2-19 diluted sharecount based on an average share price of $36.63 for the quarter.

19

March 20, 2019

Non-GAAP Reconciliations

20

March 20, 2019

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

FQ1-194,615 $

FQ2-184,270

Stock-based compensation
Start-up and preproduction costs
Employee severance

23
15
1326
81322
——

Other

13

84

Non-GAAP gross margin$

2,928 $

4,670 $

4,296

GAAP operating expenses$907 $

856 $703

Stock-based compensation
Employee severance

34435
730—

Restructure and asset impairments

5130

7Other—1—

Non-GAAP operating expenses

$

818 $

783 $

666

GAAP operating income$

1,957 $

3,759 $

3,567

Stock-based compensation
Start-up and preproduction costs
Employee severance
Restructure and asset impairments

57
15
1751

61
820
3052
—
—
7Other13

942,110 $3,887 $$

Non-GAAP operating income

21

FQ2-192,864 $March 20, 2019

3,630

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$

FQ1-193,293 $
61
8

FQ2-183,309
52—

Employee severance
Restructure and asset impairments

1751

2030

—
7Amortization of debt discount and other costs

111826(Gain) loss on debt repurchases and conversions

83(14)

23(Gain) loss from changes in currency exchange rates
Other

313

51027
7

Impact of U.S. income tax reform
Estimated tax effects of above, non-cash changes in net deferred income taxes, and assessments oftax exposures

(14)

47131

11630(87)$1,971 $

3,508 $

3,495

GAAP income tax provision$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(280) $(14)(477) $47(143)
131

116

30(87)$(178) $(400) $(99)Non-GAAP net income attributable to Micron

Non-GAAP income tax provision22

FQ2-191,619 $
57
15

March 20, 2019

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions except per share amounts
GAAP cost of goods sold$FQ1-19
3,298 $

FQ2-183,081

Stock-based compensation

(23)

(26)

(22)

Start-up and preproduction costs

(15)

(8)

—

Employee severance

(13)

(13)

—

Other

(13)

(8)

(4)

Non-GAAP cost of goods sold$2,907 $

3,243 $

3,055

GAAP selling, general and administrative

$

209 $

209 $

196

Stock-based compensation

(18)

(19)

(16)

Employee severance

(3)

(2)

—

Non-GAAP selling, general and administrative

$

188 $

188 $

180

GAAP research and development

$

601 $

611 $

523

Stock-based compensation

(16)

(16)

(14)

Employee severance

(1)

(5)

—

Other—

(1)

—

584 $

589 $509$

Non-GAAP research and development

23FQ2-19
2,971 $March 20, 2019

Consolidated Results
Non-GAAP Reconciliations
FQ2-19Amounts 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
GAAP diluted earnings per share$Effects of non-GAAP adjustments

FQ2-18

1,141

1,174

1,238852

1,149

1,179

1,240

1.42 $

2.81 $

2.67

0.29

0.16

0.15

Non-GAAP diluted earnings per share$

1.71 $

2.97 $2.82

GAAP net income$

1,625 $

3,296 $

3,311

Interest (income) expense, net

(31)

(5)

61

Provision (benefit) for income taxes

280

477

143

1,313

1,335

1,151

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

$

3,187 $

5,103 $

4,666

Net cash provided by operating activities$

3,435 $

4,810 $

4,348

(2,649)(2,700)(2,261)

Payments for equipment purchase contracts

(17)

(20)

(20)

Net partner contributions

219

236

167

2,326 $

2,234

Expenditures for property, plant, and equipment$Adjusted free cash flow

24

FQ1-19March 20, 2019

988 $

FQ3-19 GuidanceNon-GAAP Reconciliations
GAAPRevenue

Adjustments$4.8 billion +/- $200 million—36% – 39%1%

A

37% – 40%$825 million +/- $25 million($40 million)

B$785 million +/- $25 million$0.51 +/- $0.10$0.34

Gross margin
Operating expenses

Diluted EPS*

Non-GAAP$4.8 billion +/- $200 million

A,B,C$0.85 +/- $0.10

Adjustments (amounts in millions)AA
B

Stock-based compensation – cost of goods sold
Other – cost of goods sold
Stock-based compensation – sales, general, and administrativeBBCCC

Stock-based compensation – research and development
Other – operating expenses
Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions
Tax effects of the above items and non-cash changes in net deferred income taxes$2417171678316(22)$383

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 ~1.14 billion diluted shares

25

March 20, 2019

26

March 20, 2019