Financial Results
FQ1 2021© 2021 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.
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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 and Form 10-Q.
These documents contain and identify important factors that could cause the actual results for theCompany to differ materially from those contained in our projections or forward-looking statements.
These certain factors can be found at http://www.micron.com/certainfactors. Although we believe thatthe expectations reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance, or achievements. We are under no duty to update anyof the forward-looking statements after the date of the presentation to conform these statements toactual results.

January 7, 2021

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Sanjay Mehrotra
President and CEO

January 7, 2021

4Highlights▪ Delivered strong revenue and earnings in FQ1▪ Began shipping industry's most advanced NAND with 176 layers▪ Good progress on 1-alpha DRAM node, on track to begin volume

production in 1H-CY21▪ We believe DRAM is past the bottom of the industry cycle and expect

improving trends through CY21

January 7, 2021

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Operations▪ In early December, two separate events affected our Taiwan DRAM operations⎼ A power outage at our Taoyuan facility on December 3⎼ A 6.7-magnitude earthquake off the northeast coast of Taiwan on December 10, felt at
both our Taoyuan and Taichung locations▪ Investments made over the last few years in facilities’ redundancy andcleanroom control substantially mitigated the impact of these two events▪ These disruptions have, however, reduced our available FQ2 DRAM supply andnegatively influenced our costs in the short term
▪ The expected impact of these events is factored into our outlook

January 7, 2021

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Strong Technology
and Roadmap
Execution
Solid progress toward our goals:▪

Deliver industry-leading technology andimprove our cost structure▪

Bring differentiated products to market andimprove our product mix▪

Grow our share of industry profits while
maintaining stable bit share

Micron has technology leadership in both
DRAM and NAND simultaneously; going
forward, we expect to maintain thiscompetitive position through a more
typical cadence for node transitions
consistent with the rest of the industry

January 7, 2021

DRAM

NAND

▪

Making good progress on our 1-alphanode which remains on track for
introduction in 1H-CY21▪

Began volume production of theindustry’s most advanced 176layer NAND▪

1-alpha will deliver a 40% improvementin bits per wafer over our 1Z with asubstantial portion of the improvement
coming from our chip-design concepts▪

It features 2X the power
efficiency and write performancevs. our 96-layer NAND, which isessential for addressing futurehigh-end mobile applications▪

Going forward we anticipate lower
gains in bits per wafer growth as more
complex interfaces such as DDR5 areintroduced and as DRAM technology
scaling challenges continue▪

Began shipping 176-layer
consumer SSDs in FQ1 andwill introduce additional 176-layer
products over the next several
months▪

Leading the industry with thebroadest portfolio of QLC SSDs
across client, consumer, anddata center markets; increased
bit mix of QLC SSDs in FQ1▪
▪

Began revenue shipments of HBM2E
Strong growth in GDDR6 and GDDR6X
bit shipments

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End Market Highlights

Data Center

MobileMemory and storage becoming an
increasing portion of server BOM
cost

▪

▪

New compute architectures areenabling more memory channels andhigher-density modules▪

▪

Cloud and enterprise DRAM revenue
declined Q/Q from a very strong 14week FQ4, with ongoing enterprise
weakness▪

▪

Continue to make progress on our
Data center NVMe portfolio andcompleted several customer
qualifications in FQ1, while
maintaining our leadership in SATA

January 7, 2021▪

▪

FQ1 mobile revenue was up Q/Q,
driven by solid execution andimproved handset demandPCs▪

WFH trend driving strong notebook
demand despite pockets of nonmemory component shortages insupply chain. Micron delivered
strong sequential growth in PC
DRAM shipments driven by thisdemandBetter-than-expected transition of
Micron’s mobile business from
Huawei to other mobile customers
also contributed to our revenue
upside in FQ1▪

Micron is well positioned to win in the
5G era with our industry-leading
product portfolio

NVMe represented over 90% ofclient SSD bits, with nearly halfbeing QLC bits▪

Consumer SSD had a second
consecutive record quarter for bits
shipped, and Micron shipped theworld’s first 176L based Consumer
SSDs

Maintained LP5 solutions leadershipand grew our LP5 shipments, were
the first to market with uMCP5, andachieved record MCP revenue

Graphics & Auto
Graphics:▪

Strong growth in GDDR6/6x driven
by new game console and PC
graphics product launches; Micron
has a strong position in this highgrowth market

Automotive:▪

Record revenue resulting from theresumption of auto manufacturing
around the globe and the continued
growth of memory and storage
content per vehicle▪

Micron’s quality and market
leadership positions us well in thismarket8

Industry Outlook▪ CY-20 industry bit demand growth slightly above 20%

DRAM▪ CY-21 industry bit demand growth in high-teens percentage range with DRAM

industry supply to be below demand▪ Long-term bit demand growth CAGR of mid-to-high teens▪ CY-20 industry bit demand growth in mid-20% range

NAND▪ CY-21 industry bit demand growth of approximately 30% with supply potentiallyhigher; market can stabilize over the course of 2021 if suppliers moderate theirproduction growth▪ Long-term bit demand growth CAGR of approximately 30%

January 7, 2021

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Micron Outlook▪ CY-21 bit supply growth expected to be below industry demand growth

DRAM
NAND
January 7, 2021

▪ Long-term Micron bit supply growth CAGR in line with industry demand▪ FY-21 cost reductions expected to be in the mid-single-digit percentage range,

with somewhat higher levels of cost reductions on a like-for-like basis▪ CY-21 bit supply growth expected to be below industry demand growth▪ 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 percentage range

10Dave Zinsner
Chief Financial Officer

January 7, 2021

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FQ1-21 Revenue$5.8B
Revenue down 5% Q/Q and up 12% Y/Y

January 7, 2021

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Performanceby Technology
70% of total revenue in FQ1-21▪ Revenue down 7% Q/Q and up 17% Y/Y▪ Bit shipments down low-single-digit percent range Q/Q▪ ASPs down mid-single-digit percent range Q/Q▪

DRAM

27% of total revenue in FQ1-21▪ Revenue up 3% Q/Q and up 11% Y/Y▪ Bit shipments up high-teens percent range Q/Q▪ ASPs down low-teens percent range Q/Q▪

NAND

The metrics above reflect the change in reporting for MCPs and SSDs, which have been disaggregated into DRAM and NAND.
January 7, 2021

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Revenue by Business Unit
FQ1-21

FQ4-20Q/Q % Change

FQ1-20Y/Y % Change

Compute and Networking (CNBU)$2,546$3,020(16)%$1,97929%

Mobile (MBU)$1,501$1,462

3%$1,4573%

Storage (SBU)

$911

$913

0%

$968

(6)%

Embedded (EBU)

$809

$654

24%

$734

10%

Amounts in millions

January 7, 2021

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FQ1-21
Non-GAAP Operating Results
Revenue: $5.8 billion
Gross Margin: 30.9%
Operating Expenses: $811 million
Operating Income: $973 million
Net Income: $897 million
Diluted EPS: $0.78
Cash from Operations (GAAP): $2.0 billion

January 7, 2021

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Capital Allocation$2.8B total share repurchases in
FY19 and FY20

$1.7B of net cash at endof FQ1-21

FY-21 CapEx of ~$9B

Cash
ReturnNet
CapEx1

Cash3Debt

Liquidity2

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 cash

January 7, 2021

12$10.9B in liquidity at endof FQ1-21

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FQ2-21 GuidanceNon-GAAP
Revenue
Gross margin
Operating expenses
Interest (income) expense, net
Diluted EPS*

*Based on ~1.15 billion diluted shares
January 7, 2021

$5.8 billion ± $200 million
31% ± 1%$825 million ± $25 million$35 million$0.75 ± $0.07

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Other Key Data
January 7, 2021

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Financial Summary
Non-GAAP

Amounts in millions, except per share

FQ1-21% ofRevenue

FQ4-20% ofRevenue

FQ1-20% ofRevenue

Revenue$5,773100%$6,056100%$5,144100%

Gross margin

1,784

31%

2,111

35%

1,405

27%

Operating income

973

17%

1,302

21%

594

12%

Income tax (provision) benefit(71)

Net income attributable to Micron

897

Diluted earnings per share

0.78

1.08

0.48

Cash provided by operating activities (GAAP)

1,967

2,271

2,011

Cash, marketable investments, and restrictedcash (GAAP)

8,363

9,256

8,313

See non-GAAP reconciliations
January 7, 2021

(46)
16%

1,229

(42)
20%

548

11%

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Non-GAAP Financial Data and Guidance% of Revenue

FQ1-21 Non-GAAP

FQ1-21

DRAM

70%

NAND

27%

(amounts in millions,
except per share)

Revenue$

Gross margin% Sales Volume Change

FQ1-21 Q/Q

DRAM

Decreased low-single-digit
percent range

NAND

Increased high-teens
percent range% ASP Change
DRAM

NAND

See non-GAAP reconciliations
January 7, 2021

FQ1-21 Q/Q
Decreased mid-single-digit
percent range
Decreased low-teens
percent range

5,773

FQ2-21
Non-GAAP Guidance$5.8 billion ± $200 million

30.9%

31% ± 1%

Operating expenses$

811$825 million ± $25 million

Interest (income) expense, net$

31$35 million

Diluted earnings per share

$

0.78

$0.75 ± $0.07

FQ1-21 Non-GAAP(amounts in millions)

Diluted shares

1,146

FQ2-21
Non-GAAP Estimates~1.15 billion

Income tax (provision) benefit

$

(71)

Mid-to-high-single-digit rate

Cash from operations (GAAP)

$

1,967

—

Depreciation and amortization

$

1,480

—

Investments in capex, net(capital cash flow)

$

2,783

FY-21: ~$9 billion

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Revenue by Technology
Amounts in millions

FQ1-21% ofRevenue

FQ4-20% ofRevenue

FQ1-20% ofRevenue

DRAM$4,05670%$4,37172%$3,469

67%

NAND

1,574

27%

1,530

25%

1,422

28%

Other

143

2%

155

3%

253

5%

Total

$5,773100%$6,056100%$5,144

100%

Revenue for MCPs and SSDs, which contain both DRAM and NAND, are disaggregated into 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.
January 7, 2021

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Non-GAAP Reconciliations
January 7, 2021

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Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ1-21GAAP gross margin
Stock-based compensation
Other
Non-GAAP gross margin$

GAAP operating expenses
Stock-based compensation$

Restructure and asset impairments
Non-GAAP operating expenses
GAAP operating income
Stock-based compensation
Restructure and asset impairments
Other
Non-GAAP operating income

January 7, 2021

$

$
$

$

FQ4-20

1,736
41
7
1,784

$

870
(51)

$

(8)
811
866
92
8
7
973

$

$
$

$

FQ1-20

2,068
37
6
2,111

$

911
(52)

$

(50)
809
1,157
89
50
6
1,302

$

$
$

$

1,366
31
8
1,405
848
(41)
4
811
518
72
(4)
8
594

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Consolidated Results
Non-GAAP Reconciliations
Amounts in millions
GAAP net income attributable to Micron

FQ1-21$

FQ4-20803$

FQ1-20

988

$

491

Stock-based compensation

92

89

72

Restructure and asset impairments

8

50

(4)

Amortization of debt discount and other costs

7

6

10

(Gain) loss on debt repurchases and conversions

—

—

(42)

Other

7

6

8

(20)

90

13

Estimated tax effects of above and non-cash changes in net deferred income
taxes
Non-GAAP net income attributable to Micron

$

897

$

1,229

$

548

GAAP income tax (provision) benefit

$

(51)

$

(136)

$

(55)

Estimated tax effects of non-GAAP adjustments and non-cash changes in net
deferred income taxes
Non-GAAP income tax (provision) benefit

January 7, 2021

(20)
$

(71)

90
$

(46)

13
$

(42)

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Consolidated Results
Non-GAAP Reconciliations
Amounts in millions
GAAP cost of goods sold

FQ1-21$

FQ4-204,037$

FQ1-20

3,988

$

3,778

Stock-based compensation

(41)

(37)

(31)

Other

(7)

(6)

(8)

Non-GAAP cost of goods sold

$

3,989

$

3,945

$

3, 739GAAP selling, general and administrative

$

214

$

231

$

211

Stock-based compensation

(27)

(29)

(22)

Non-GAAP selling, general and administrative

$

187

$

202

$

189

GAAP research and development

$

647

$

630

$

640

Stock-based compensation
Non-GAAP research and development

January 7, 2021

(24)
$

623

(23)
$

607

(19)
$

621

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Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ1-21GAAP 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

FQ4-20

FQ1-20

1,135

1,131

1,129

11

11

9

1,146

1,142

1,138

0.71

$

0.07

0.87

$

0.21

0.43
0.05

Non-GAAP diluted earnings per share

$

0.78

$

1.08

$

0.48

GAAP net income

$

803

$

990

$

508

Interest (income) expense, net

38

37

3

Provision (benefit) for income taxes

51

136

55

1,487

1,567

1,296

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

$

2,379

$

2,730

$

1,862

GAAP interest (income) expense, net

$

38

$

37

$

3

Amortization of debt discount and other costs
Non-GAAP interest (income) expense, net

January 7, 2021

(7)
$

31

(6)
$

31

(10)
$

(7)

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Consolidated Results
Non-GAAP Reconciliations
Amounts in millions
Net cash provided by operating activities

FQ1-21$

1,967

FQ4-20$2,271

FQ1-20$2,011

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

(2,726)(2,268)(1,936)

Payments on equipment purchase contracts

(97)

(14)

(11)

Amounts funded by partners

40

122

22

Adjusted free cash flow

$

(816)

$

Amounts in millions
Cash and short-term investments

111$

FQ1-21$

Current and noncurrent restricted cash

86

FQ4-20

7,032

$

8,142

67

66

Long-term marketable investments

1,264

1,048

Current and long-term debt

(6,629)(6,643)

Net cash$

1,734*Expenditures for property, plant and equipment, net include proceeds from sales of property, plant, and equipment of $12 million for FQ1-21, $12 million for FQ4-20, and $7 million for FQ1-20.
January 7, 2021

$

2,613

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FQ2-21 GuidanceNon-GAAP Reconciliations

GAAP
Revenue

Adjustments$5.8 billion ± $200 million—

25% ± 1%6%A

31% ± 1%$882 million ± $25 million$57 million

B$825 million ± $25 million$37 million$2 millionC$35 million$0.41 ± $0.07$0.34

A,B,C,D$0.75 ± $0.07

Gross margin
Operating expenses
Interest (income) expense, net
Diluted EPS*

Non-GAAP$5.8 billion ± $200 million

Adjustments (amounts in millions)
A
A
A
A
B

Inventory accounting policy change to FIFO – cost of goods sold
Change in inventory cost absorption – cost of goods sold
Stock-based compensation – cost of goods sold
Other – cost of goods sold
Stock-based compensation – research and development

B

Stock-based compensation – sales, general, and administrative

27

C
D

Amortization of debt discount and other costs
Tax effects of the above items and non-cash changes in net deferred income taxes

2
(27)

$

$

135
165
54
7
30

393

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 othersignificant 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 ~1.14 billion diluted shares and non-GAAP EPS based on ~1.15 billion diluted shares.
January 7, 2021

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January 7, 2021