Financial Results
Third Quarter Fiscal 2018©2018 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 regarding their features, availability, functionality, orcompatibility, 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, the Micron logo, and all other Microntrademarks are the property of Micron Technology, Inc. All other trademarks are the property of theirrespective owners.

1June 20, 2018

Safe Harbor Statement
During the course of this meeting, we may make projections or other forwardlooking statements regarding future events or the future financial performance ofthe Company and the industry. We wish to caution you that such statements arepredictions and that actual events or results may differ materially. We refer you tothe documents the Company files from time to time with the Securities andExchange 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 containedin our projections or forward-looking statements. These certain factors can befound at http://www.micron.com/certainfactors. Although we believe that theexpectations reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance, or achievements. We areunder no duty to update any of the forward-looking statements after the date of thepresentation to conform these statements to actual results.

2June 20, 2018

Sanjay Mehrotra
President and CEOStrengthening Financial and Competitive Position

Record revenue and profitability in FQ3-18
Enhancing cost competitiveness by accelerating
technology development & production deployment
Driving increased profitability by broadening portfolio ofHigh-Value Solutions
Enhancing long-term shareholder value, announced
capital return program

4June 20, 2018

FQ3 Revenue Records In Multiple End Markets

MobileData Center

EmbeddedSSDs
5− High-value mobile NAND revenue nearly doubled Q/Q, driven by eMMC/eMCP− 85% of Managed NAND GB shipped were TLC vs. <1% in FQ3-17− Combined DRAM & NAND Data Center* revenue up 87% Y/Y− Improved execution, expanding share and strengthening customer relationships− Completed qualification of 64L 3D NAND surveillance-grade microSD card
− Strong design-ins on LP Automotive DRAM & qualification of 1Xnm and GDDR6− Began volume production shipments of 64L 3D NAND Enterprise SATA SSD− Shipped world’s first QLC-based SSD, built on 64L technology and a 1Tb die*Data Center reflects DRAM & NAND server (cloud + enterprise) + SSD (cloud + enterprise)

June 20, 2018

Strong Technology Development Momentum

NAND momentum

6DRAM momentum− 64L: Achieved production output crossover
in FQ3-18− 1Xnm: On track to achieve production output
crossover in 2H CY-18− 96L: Expect to have production shipments in2H CY-18− 1Ynm: On track to begin production
shipments in 2H CY-18− 4th generation: Good progress ondevelopment; based on Replacement Gateand CMOS under the array architecture− 1Znm & 1αnm: Development programs
underway

June 20, 2018

WIP

VirtuousCycle
Driven by Increasing Data Value▪ Memory and fast storage increasingly
important in Data Economy▪ Increased opportunities for expanded,higher-value data services

7June 20, 2018

Dave Zinsner
Chief Financial OfficerFQ3 2018 Summary▪ Revenue of $7.80 billion− DRAM: 71% of total FQ3 revenue− Trade NAND: 25% of total FQ3 revenue▪ GAAP results− Gross margin: 61%− Net income: $3.82 billion− Diluted EPS: $3.10▪ Non-GAAP results− Gross margin: 61%− Net income: $3.90 billion− Diluted EPS: $3.15▪ Operating expenses of $733 million
9June 20, 2018

Compute & Networking Business Unit
FQ3-18

Revenue $% of total company revenue
Operating income $Operating income %FQ2-18

FQ3-17

3.99B $

3.69B $

2.39B

51%

50%

43%

2.62B $

2.33B $

1.22B

66%

63%

51%

CNBU

▪ Revenue up 8% Q/Q and 67% Y/Y▪ Broad-based demand with growth in every business except Client▪ Sales of Cloud server and Graphics memory more than doubled Y/Y10June 20, 2018

Mobile Business Unit
FQ3-18

Revenue $% of total company revenue
Operating income $Operating income %FQ2-18

FQ3-17

1.75B $

1.57B $

1.13B

22%

21%

20%

860M $

689M $

304M

49%

44%

27%MBU▪ Revenue up 12% Q/Q and 55% Y/Y▪ Ongoing momentum for Managed NAND; strong demand for LP DRAM
▪ Customer qualifications underway for eMCP solutions

11June 20, 2018

Embedded Business Unit
FQ3-18

Revenue $% of total company revenue
Operating income $Operating income %FQ2-18

FQ3-17897M $

829M $

700M

12%

11%

13%

386M $

363M $

256M

43%

44%

37%

EBU

▪ Revenue up 8% Q/Q and 28% Y/Y▪ Growth driven by demand for Consumer and Industrial applications− Set-top boxes, factory automation and industrial drones▪ Record Automotive revenue fueled by ADAS and in-vehicle applications

12June 20, 2018

Storage Business Unit
FQ3-18Revenue $% of total company revenue
Operating income $Operating income %FQ2-18

FQ3-17

1.14B $

1.25B $

1.32B

15%

17%

24%

156M $

251M $

276M

14%

20%

21%

▪ Revenue decreased 9% Q/Q and 13% Y/Y− Reflects shift of NAND supply to High-Value mobile managed NAND

▪ Continuing to build momentum with SSD portfolio− New record for SSD revenue, now >50% of total SBU revenue▪ Ramping lower-cost 64L 3D NAND SSDs13*SBU includes SSD, NAND component and 3D XPoint sales

June 20, 2018

SBU

Performance by Product Line
▪ 71% of overall company revenue in FQ3-18▪ Revenue up 6% Q/Q and up 56% Y/YDRAM▪ Shipment quantities relatively flat Q/Q▪ ASPs up mid-to-upper single-digit percent range Q/Q▪ Non-GAAP Gross Margin of 69% in FQ3-18 vs 54% in FQ3-17▪ 25% of overall company revenue in FQ3-18

TradeNAND▪ Revenue up 8% Q/Q and 14% Y/Y▪ Shipment quantities relatively flat Q/Q▪ ASPs up mid-to-upper single-digit percent range Q/Q▪ Non-GAAP Gross Margin of 47% in FQ3-18 vs 41% in FQ3-17

14June 20, 2018

Other Financial Metrics▪ Operating cash flow
− $4.3 billion in FQ3-18▪ Capital expenditures, net of partner contributions− $2.1 billion spent in FQ3-18− Expect FY-18 capex of ~$8 billion▪ Free cash flow*− $2.2 billion in FQ3-18▪ Cash, marketable investments & restricted cash
− $7.7 billion at the end of FQ3-18▪ GAAP debt balance− $7.3 billion at the end of FQ3-18

15*Free cash flow consists of cash provided by operating activities less investments incapital expenditures, net of partner contributions.

June 20, 2018

Achieved Net Cash Positive Position in FQ3-18▪
▪
▪

Reduced gross debt position by ~$2 billion in FQ3-18
Expect to further reduce debt position by ~$2 billion in FQ4-18
Transitioning from debt reduction to capital returns in FY-19 via share repurchases
Total Cash

Total GAAP Debt

$12.4B$11.6B$11.1B

InoteraAcquisition
Debt

$9.6B

$9.0B

$8.7B

$9.3B
$7.7B

$6.2B
$4.4B

FQ1-1716$4.6B

FQ2-17

$7.3B

$6.6B

$4.9B

FQ3-17

Cash includes short-term investments, long term investments, and restricted cash
Debt is GAAP value including current portion and long-term debt

FQ4-17
June 20, 2018

FQ1-18

FQ2-18

FQ3-18

FQ4 2018 GuidanceNon-GAAP
FQ4-18 Guidance$8.00 billion – $8.40 billion

Revenue

59% – 62%

Gross margin

Operating expenses$750 million +/- $25 million

Diluted EPS*

17

*Based on 1,230 million diluted shares$3.30 +/- $0.07

June 20, 2018

Sanjay Mehrotra
President and CEOTransformation

19Markets

Industry

MicronData-hungry applications
driving secular growth inmemory and storage

Structural changes
contributing to sustained
positive industry dynamics

Strategy, execution,
culture poised to deliversignificant value

Most Memory Intensive Ever

Healthy Fundamentals

Best Positioned Ever

June 20, 2018

Financial Summary
Non-GAAP
Dollars in millions, except per share% of Sales

FQ2-18% of Sales

FQ3-17% of Sales

Net sales

7,797

100%

7,351

100%

5,566

100%

Gross margin

4,750

61%

4,296

58%

2,671

48%

Operating income

4,01752%3,630

49%

2,071

37%

Income tax (provision) benefit

20

FQ3-18(97)

(99)

50%

Net income attributable to Micron

3,898

Diluted earnings per share

3.15

2.82

1.62

Cash provided by operating activities

4,261

4,348

2,407

Cash, marketable investments, andrestricted cash

7,677

8,675

4,899

June 20, 2018

3,495

(64)

48%

1,896

34%

Non-GAAP Reconciliations

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts
GAAP net income attributable to Micron
Non-GAAP adjustments:
Stock-based compensation$Flow-through of Inotera inventory step up
Restructure and asset impairments
Amortization of debt discount and other costs
Loss on debt repurchases and conversions(Gain) loss from changes in currency exchange rates
OtherImpact of U.S. income tax reform
Estimated tax effects of above and changes in net deferred income taxes
Total non-GAAP adjustments
Non-GAAP net income attributable to Micron$GAAP shares used in diluted EPS calculations
Adjustment for stock-based compensation and effect of capped calls
Non-GAAP shares used in diluted EPS calculations
GAAP diluted earnings per share
Effects of above
Non-GAAP diluted earnings per share

22$$

June 20, 2018

FQ3-183,823 $

FQ2-183,309 $

FQ3-17
1,647485257

—
823
168
2410—
7262327
736
123061
22
3(222)
1675
3,898 $

131(87)
186
3,495 $

—
28249
1,896

1,235
3
1,238

1,238
2
1,240

1,177(8)1,169

3.10 $
0.05
3.15 $

2.67 $
0.15
2.82 $

1.40
0.22
1.62

Consolidated Statement of Operations
FQ3 2018 Non-GAAP Reconciliation
Amounts in millions
Net sales$

Cost of goods sold
Gross margin

3,074
4,723

Non-GAAP$7,797(27) A,H
27

3,047
4,750

Selling, general, and administrative

211(14)

B

197

Research and development603(15) C,H588

Other operating (income) expense

(44)

(8)

(52)

Total operating expenses

770(37)

733

3,953

64

4,017

(44)
(193)
3,716

23
E
194 F,G,H
281

(21)
1
3,997

Operating income
Interest expense, net
Other non-operating income (expense), net
Income tax (provision) benefit
Equity in net income (loss) of equity method investees
Net income
Net income attributable to noncontrolling interests

Net income attributable to Micron

23GAAP
Adjustments
7,797 $—

June 20, 2018

D109(206)

I,J

(97)

(2)
3,823

—
75

(2)
3,898

———

3,823

75

3,898

Consolidated Statement of Operations
FQ3 2018 Non-GAAP Reconciliation (continued)
Amounts in millions
AB
C
D

Stock-based compensation – cost of goods sold
Stock-based compensation – sales, general, and administrative
Stock-based compensation – research and development
Restructure and asset impairments

EF

Amortization of debt discount and other costs
Loss on debt repurchases and conversions

23168

GH(Gain) loss from changes in currency exchange rates
Other2410IJ

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

24

June 20, 2018

2014148(222)1675

Summary Key Data

Non-GAAP Financial Data and Guidance% of Revenue

FQ3-18

FQ3-18 Non-GAAP(amounts in millions,except per share)

FQ3-17

DRAM

71%

64%

Trade NAND*25%

31%

Revenue $Gross margin% Sales Volume
ChangeDRAM

Relatively flat

Trade NAND*

Relatively flat

% ASP Change
DRAM
Trade NAND*
Gross Margin26

FQ3-18
Q/Q

FQ3-18
Y/Y
Increased midteens % range
Increased low20% range

7,79761%

Decreased midsingle digit %FQ3-18

FQ3-1759% – 62%733$750 million +/- $25 million

Earnings per share $3.15$3.30 +/- $0.07

FQ3-18
Y/Y
Increased mid30% range$8.00 billion – $8.40 billion

Operating expenses $FQ3-18 Non-GAAP(amountsin millions)

FQ3-18
Q/Q
Increased midto-upper single
digit %
Increased midto-upper single
digit%

FQ4-18 Non-GAAP Guidance

Net interest expense $FQ4-18 Non-GAAP Estimates

21~$0 million

1,238~1,230 millionTax (provision) benefit $(97)~($125 million)

Operating cash flow $

4,261

—

Diluted shares

DRAM

69%

54%

Depreciation and amortization $1,233—

Trade NAND*

47%

41%

Capital expenditures(Capital cash flow) (a) $2,100

FY-18: ~$8 billion

See Non-GAAP reconciliations*Trade NAND excludes products sold to Intel through IMFT under a long-term supply
agreement at prices approximating cost.
(a) Net of amounts funded by partners

June 20, 2018

Convertible Notes Dilution Overview(shares in millions)

Stock Price2032 C Notes
2032 D Notes
2033 E Notes
2033 F Notes
2043 G Notes
Total dilutive shares
Benefit from capped call
Net dilution

Actual
FQ3-18*13141121656(4)
52

$50
9$53
9$56
9$59
9$62
9$65
9$68
9$71
9$74
9$77
9$80
9

13
8
15
45

13
8
16
46

13
8
17
47

14
8
18
49

14
8
19
50

14
8
19
50

14
8
20
51

14
8
21
52

14
8
21
52

14
8
22
53

14
8
22
53

(2)
43(2)
44(2)
45(2)
47(2)
48(2)
48(1)
50(1)
51(1)51

(1)
52

(1)
52

Note: Except for FQ3-18 dilution, the table above presents the potential dilutive impact of convertible
notes outstanding as of May 31, 2018 over the range of trading prices for Micron’s stock.

27*Represents the actual dilutive impact of convertible notes for FQ3-18 diluted share countbased on an average share price of $53.48 for the quarter.

June 20, 2018

28

June 20, 2018