Financial Results
FQ3 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 beto scale. Micron, the Micron orbit logo, the M orbit logo, Intelligence Accelerated™, and 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 actualresults 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.

2June 29, 2020

Sanjay Mehrotra
President and CEO

3

June 29, 2020

FQ3 Highlights▪ Strong execution drove solid sequential revenue and EPS growth▪ Ramping the industry’s most advanced DRAM node andincreasing our mix of high-value NAND
▪ Strong competitive position and diversified product portfolio put

Micron in an outstanding position for growth in the memory andstorage markets

4

June 29, 2020

Operations Update

5▪

Most of our fab and assembly sites operated at full production throughout the quarter▪

Our Singapore and Taiwan assembly and test facilities achieving record production▪

COVID-19's impact to our production early in our third quarter was limited to our back-end
assembly and test sites in Muar and Penang, Malaysia, and we quickly offset this impactwith production adjustments at our other facilities▪

All our production facilities are operating normally at this time▪

We continue to prioritize the health and safety of all team members and contractors andhave strong COVID-19 safety measures in place at all our sites worldwide▪

We are taking a conservative, phased and site-specific approach to returning our teammembers on-site, prioritizing our manufacturing workforce and engineering teams

June 29, 2020

Market Environment▪ Technology is rapidly helping society with changes stemming from the pandemic,

End-MarketTrends

and the faster pace of digital transformation in the economy is here to stay
▪ 2HCY20 data center outlook to be healthy, smartphone and consumer end-unit

sales to improve, and new gaming consoles will drive DRAM and NAND demand▪ Limited short-term visibility due to COVID-19, macro and trade, customer

inventory changes, and recent restrictions on Huawei

Long-term
Outlook6▪ DRAM industry bit demand CAGR in the mid-to-high teens▪ NAND industry bit demand CAGR in the 30% range▪ Long-term Micron supply growth in line with industry demand growth CAGR

June 29, 2020

StrongTechnologyandRoadmap
Execution
Since 2016, Micron has madetremendous progress
narrowing the competitive gap
on leading-edge technology
nodes

7DRAM

NAND

▪ Ramping 1z, the industry’s mostadvanced node, and achieving yield
improvements that reduce our cost,with several customer qualifications
underway▪ 128-layer first-gen RG node involume production in FQ3 andrecently began customer shipments;
good progress on second-gen RG
and on track for meaningful RG
NAND output by the end of CY20

▪ Our 1y and 1z nodes together now
make up more than 50% of our bit
production and we continue to makeprogress on our 1-alpha node, which
we expect to introduce in FY21

▪ QLC bits now represent more than
10% of Micron’s overall NAND
production, contributing to our NAND
cost improvements▪ Have begun sampling our first highbandwidth DRAM memory product,
which is competitive with the industry’s
most advanced products, and will
expand our AI data center opportunity▪ NAND high-value solutions now
make up over 75% of our quarterly
NAND bits, on target to increase thisto 80% for FY21

June 29, 2020

End Market Highlights

SSDs
Record quarterly revenue
with cloud SSD doubling
Q/Q and client NVMe SSDgrowth▪ Customer qualifications
progressing well for nextgeneration products forboth NVMe and SATAmarkets▪ Announced a TLC client
SSD and our first QLC
client SSD, both using nextgen 96-layer technology▪

8

Data Center &Networking

PC, Graphics & Auto

Healthy Y/Y growth▪ 5G driven resumption ofsmartphone units expected
in CY21 with multipliereffect of higher memoryand storage content▪ Design-ins for LP4 and LP55G platforms; mNAND
products now sampling atseveral major OEMs
▪ Micron is well positioned towin in the 5G era▪

▪

Data Center: Cloud DRAM
sales grew significantly
Q/Q; sampling 1z DDR5 forenterprise and higherfrequency DDR4 for Intel’sIce Lake server platform▪ Networking: Significant
DRAM bit shipment growth
Q/Q, driven by
infrastructure deployment,
particularly in Asia▪

MobileJune 29, 2020

PC: DRAM revenue up Q/Qdriven by higher pricing;
unit shipment decline
expected for CY20
▪ Graphics: Started shipping
GDDR6 for next-gen
gaming consoles; strong
demand expected for CY20
▪ Automotive: Significant
Q/Q revenue decline due tobroad auto supply chain
disruptions; content driven
record LP4 DRAM revenue

Dave Zinsner
Chief Financial Officer

9June 29, 2020

FQ3-20 Revenue$5.4B
Revenue up 13% Q/Q and up 14% Y/Y

10June 29, 2020

Performanceby Technology
DRAM

NAND

▪

66% of total revenue in FQ3-20▪

Revenue up 16% Q/Q and up 6% Y/Y▪

Bit shipments up approximately 10% Q/Q▪

ASPs up mid-single-digit percent range Q/Q▪

31% of total revenue in FQ3-20▪

Revenue up 10% Q/Q and up over 50% Y/Y▪

Bit shipments up lower-single-digit percent range Q/Q▪

ASPs up upper-single-digit percent range Q/Q

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

11June 29, 2020

Revenue by Business Unit

12

FQ3-20FQ2-20Q/Q % Change

FQ3-19Y/Y % Change

Compute and Networking (CNBU)$2,218M$1,967M

13%$2,079M

7%

Mobile (MBU)$1,525M$1,258M

21%$1,174M

30%

Storage (SBU)$1,014M

$870M

17%

$813M

25%

Embedded (EBU)

$675M

$696M

(3)%

$700M

(4)%

June 29, 2020

FQ3-20
Non-GAAP Operating Results
Revenue: $5.4 billion

Gross Margin: 33.2%
Net Income: $941 million
Diluted EPS: $0.82
Operating Expenses: $823 million
Operating Income: $981 million
Cash from Operations: $2.0 billion

13June 29, 2020

Capital Allocation
Combining share repurchases
and settlement of converts,$338M towards reducing sharecount in FQ3-20$2.6B of net cash at endof FQ3-20

FY-20 CapEx of ~$8B

CashReturnNet
CapEx1

Cash3Debt

Liquidity2

3121Capex 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

14June 29, 2020

$11.8B in liquidity at endof FQ3-20

FQ4-20 GuidanceNon-GAAPRevenue$5.75 billion to $6.25 billionGross margin

35.5% ± 1.5%

Operating expenses$850 million ± $25 million

Interest (income) expense, net$30 million

Diluted EPS*

$1.05 ± $0.10*Based on ~1.14 billion diluted shares
15

June 29, 2020

Other Key Data
16

June 29, 2020

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

FQ3-20% ofRevenue% of
Revenue

FQ3-19% ofRevenue

Revenue$5,438100%$4,797100%$4,788100%

Gross margin

1,804

33%

1,398

29%

1,884

39%

Operating income

981

18%

542

11%

1,110

23%

Income tax (provision) benefit(29)

Net income attributable to Micron

941

Diluted earnings per share

0.82

0.45

1.05

Cash provided by operating activities

2,023

2,001

2,711

Cash, marketable investments, andrestricted cash

9,288

8,120

7,933

(17)
17%

See Non-GAAP reconciliations
17FQ2-20

June 29, 2020

517

6311%

1,198

25%

Non-GAAP Financial Data and Guidance% of Revenue

FQ3-20 Non-GAAP

FQ3-20

DRAM

66%

NAND

31%

(amounts in millions,
except per share)

Revenue$Gross margin% Sales Volume Change

FQ3-20 Q/Q

DRAM

Increased approximately10%NAND

Increased lower-single-digit
percent range% ASP Change

DRAMNAND

FQ3-20 Q/Q
Increased mid-single-digit
percent range
Increased upper-single-digit
percent range

33%$5.75 billion to $6.25 billion
35.5% ± 1.5%

Operating expenses$823$850 million ± $25 million

Interest (income) expense, net$

24$30 million

Earnings per share$0.82$1.05 ± $0.10

FQ3-20 Non-GAAP(amounts in millions)

Diluted shares

FQ4-20Non-GAAP Estimates

1,142~1.14 billion~6% rate

Income tax (provision) benefit$(29)Operating cash flow

$2,023—

Depreciation and amortization$1,415—Investments in capex, net(capital cash flow)

$

1,922

FY-20: ~$8 billion

See Non-GAAP reconciliations
185,438

FQ4-20Non-GAAP GuidanceJune 29, 2020

Revenue by Technology
Amounts in millions% ofRevenue

FQ3-20% ofRevenue

FQ3-19% ofRevenueDRAM$3,58766%$3,08364%$3,398

71%

NAND

1,665

31%

1,514

32%

1,104

23%

Other

186

3%

200

4%

286

6%

Total

$5,438100%$4,797100%$4,788

100%

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.
19

FQ2-20June 29, 2020

Historical Revenue % by Technology
Q1-19

Q2-19

Q3-19

Q4-19

FY-19

DRAM

74%

71%

71%

70%

72%

NAND

21%

24%

23%

25%

23%

Other

5%

5%

6%

5%

5%

Total

100%

100%

100%

100%

100%

Q1-18

Q2-18

Q3-18

Q4-18

FY-18

DRAM

71%

74%

76%

76%

74%

NAND

24%

21%

20%

21%

21%

Other

5%4%

4%

3%

4%

Total

100%

100%

100%

100%

100%

Q1-17

Q2-17

Q3-17

Q4-17

FY-17

DRAM

67%

68%

68%

70%

68%

NAND

29%

28%

29%

27%

28%

Other

4%

4%

4%

3%

4%

Total

100%

100%

100%

100%

100%

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.
20

June 29, 2020

Non-GAAP Reconciliations
21June 29, 2020

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FQ3-20GAAP gross margin
Stock-based compensation
Start-up and preproduction costs
Other
Non-GAAP gross margin

22$

1,763$

34—
71,804

FQ2-20$1,355$

37—
61,398

FQ3-19$

1,828

$

24
23
91,884GAAP operating expenses
Stock-based compensation
Restructure and asset impairments
Other

$875
(48)
(4)
—

$915
(48)
(10)
(1)

$818
(34)
(9)
(1)

Non-GAAP operating expenses$823$856$774

GAAP operating income
Stock-based compensation
Start-up and preproduction costsRestructure and asset impairments
Other$

888
82
—
47$

440
85
—
107$

1,010
58
23
910

Non-GAAP operating income

$981$

542

$

1,110

June 29, 2020

ConsolidatedResults
Non-GAAP Reconciliations
Amounts in millions

FQ3-20GAAP net income attributable to Micron

$803

$

FQ3-19405$

840

Stock-based compensation

8285

58

Start-up and preproduction costs——23

Restructure and asset impairments

4109

Amortization of debt discount and other costs

4610(Gain) loss on debt repurchases and conversions

2—317

Other

7713Impact of U.S. income tax reform

—

—

(42)

Estimated tax effects of above, non-cash changes in net deferred incometaxes, and assessments of tax exposures394(30)Non-GAAP net income attributable to Micron

$

941

$

517$

1,198

GAAP income tax (provision) benefit

$

(68)

$

(21)

$

135

Impact of U.S. income tax reform

—

—

(42)

Estimated tax effects of non-GAAP adjustments, non-cash changes in net
deferred income taxes, and assessments of tax exposures394(30)Non-GAAP income tax (provision) benefit

23

FQ2-20$June 29, 2020(29)

$(17)

$63

ConsolidatedResults
Non-GAAP Reconciliations
Amounts in millions

FQ3-20GAAP cost of goods sold$3,675$

FQ3-193,442$

2,960

Stock-based compensation

(34)

(37)

(24)

Start-up and preproduction costs

——

(23)

Other

(7)

(6)

(9)

Non-GAAP cost of goods sold

$

3,634

$

3,399

$

2,904

GAAP selling, general and administrative

$

216

$

223

$

206

Stock-based compensation

(26)

(26)

(18)

Non-GAAP selling, general and administrative$

190

$

197$

188

GAAP research and development

$649$

681

$

606

Stock-based compensation

(22)

(22)

(16)

Other—(1)(1)

Non-GAAP research and development24

FQ2-20$June 29, 2020

627$

658$

589

ConsolidatedResults
Non-GAAP Reconciliations
Amounts in millions

FQ3-20GAAP 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

FQ3-19

1,129

1,133

1,129

131161,142

1,144

1,135

0.71

$

0.110.36$

0.090.74
0.31

Non-GAAP diluted earnings per share

$

0.82

$

0.45$

1.05

GAAP net income

$805

$

407$

851

Interest (income) expense, net

2812(23)

Provision (benefit) for income taxes

68

21(135)

1,422

1,365

1,360

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

$

2,323

$

1,805

$

2,053

GAAP interest (income) expense, net

$

28$

12$

(23)

Amortization of debt discount and other costs(4)

Non-GAAP interest (income) expense, net

25

FQ2-20$June 29, 202024(6)$6(10)$(33)

Consolidated
Results
Non-GAAP Reconciliations
Amounts in millions

FQ3-20Net cash provided by operating activities$FQ2-20

2,023

$

2,001

FQ3-19$2,711

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

(1,937)(2,013)(2,345)

Payments on equipment purchase contracts

(20)

(18)

(17)

Amounts funded by partners

3593213

Adjusted free cash flow

$101

$

Amounts in millions$FQ3-20

Cash and short-term investments$562

FQ2-20

8,658

$

7,481

Current and noncurrent restricted cash

5353

Long-term marketable investments

577

586

(6,686)(5,425)Current and long-term debt
Net cash$*Expenditures for property, plant and equipment, net include proceeds from sales ofproperty, plant, and equipment of $7 million for FQ3-20, $43 million for FQ2-20, and $58
million for FQ3-19.
26

63

June 29, 2020

2,602

$

2,695

FQ4-20
Guidance
Non-GAAP Reconciliations
GAAP
Revenue

Adjustments$5.75 billion to $6.25 billion—

34.5% ± 1.5%

1%A

35.5% ± 1.5%$900 million ± $25 million$50 million

B$850 million ± $25 million$33 million$3 million

C$30 million$0.88 ± $0.10$0.17

Gross margin
Operating expenses

Non-GAAP

Interest (income) expense, net
Diluted EPS*

Adjustments (amounts in millions)A
Stock-based compensation – cost of goods soldA
Other – cost of goods sold
B
Stock-based compensation – sales, general, and administrative$5.75 billion to $6.25 billion

A,B,C,D$1.05 ± $0.10

$

37
727

B

Stock-based compensation – research and development

23CD

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

399$

196

The above guidance does not incorporate the impact of any potential business combinations, divestitures, restructuring activities, balance sheet valuation adjustments, strategicinvestments, 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
27

June 29, 2020

28

June 29, 2020