Financial Results
FQ1 2020©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, the Micron 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 the
Securities 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.

2

December 18, 2019

Sanjay Mehrotra
President and CEO

3

December 18, 2019

Overview
Solid Start to FY-20 Against Backdrop of Challenging Industry Environment▪ Delivered good profitability▪ Maintained positive free cash flow
▪ Strengthened our product portfolio

Optimism for FQ2-20 Bottom with Continued Recovery in 2HCY20▪ Industry supply-demand balance continues to improve in both DRAM and NAND
▪ Recent business trends give us optimism

Continued Excellent Progress on Key Strategic Objectives▪ Increased mix of high value solutions– Expected to grow from 50% of NAND bits in FY-19 to over 66% in FY-20; up to 80% in FY-21▪ Improved cost structure▪ Enhanced customer engagement

4

December 18, 2019

Micron Insight Highlights
Acquisition of FWDNXT▪ FWDNXT “Deep Learning Accelerator” hardware and software

technology, when combined with advanced Micron memory,
makes it possible to deploy neural network models from any
framework into edge devices for inference▪ Will help us learn and better address customers’ AI needs

Launched First 3D XPoint Product: X100
▪ X100 is the world’s fastest storage device, dramatically fasterthan any other SSD▪ Showcased at Microsoft Ignite conference by Azure team5

December 18, 2019

DRAM

StrongTechnology
andRoadmap
Execution
Micron is the only company in theworld with a portfolio of DRAM,
NAND and 3DXPoint technologies,
putting us in a unique position todevelop differentiated products forour customers
6

NAND

▪

1Z-based LP4 uMCP had the fastest
revenue ramp of any product in thehistory of our mobile business;
Production mix on 1Z will growthroughout 2020

▪ Expect to begin production on our
128-layer first-gen RG node in 2H of
FY20 delivering minimal cost
reduction in FY20▪

Cleanroom expansion in Taiwan ison track and we expect output incalendar 2021▪

Second-gen RG node with higher
layer count in FY21 will provide morerobust cost reduction as
it ramps▪

Advanced immersion together with
Micron’s proprietary multi-patterningtechnology shows superior economics
through 1 gamma node; however
Taiwan cleanroom is EUV capable▪

Second-gen node will leverage
Micron’s leadership in QLC andCMOS under the array

December 18, 2019

End Market Highlights

SSDs

Data Center, Graphics & PC▪

Supply shortages acrossthe industry, and pricing
trends are improving▪

MCP market share
increased approximately
50% Y/Y▪

Data Center: Strong demand
growth from enterprise andcloud customers▪

As of FQ2, NVMe SSDs
in all market segments,
positioned to gain share
in FY20▪

1Z LP4 DRAM-based
uMCP achieved
qualification at multiple
OEMs▪

Achieved qualifications
with multiple OEMs on
our 96-layer SATA
datacenter SSD▪

Graphics: Shipments of 14
gigabit per second GDDR6,
well positioned for launch ofnext generation gaming
consoles in CY20▪

7

MobileLeading on bandwidth andlow power in LP5 DRAM;
positions us well for 5G▪

PC: Bit shipment growth Q/Q;
CPU shortages continuing atleast into early CY20

December 18, 2019

Automotive▪

Q/Q revenue growth
driven by secularmemory and storage
content growth▪

Qualified and shipped
the industry’s first BGA
NVMe SSDDRAM Outlook▪ CY-19 industry bit demand growth has increased to approximately 20%

Industry▪ CY-20 industry bit demand growth of mid-teens percent range, with industry bit

supply growth to be somewhat less than demand▪ Long-term industry bit demand growth CAGR in mid-to-high teens▪ CY-19 bit supply growth will be less than industry supply growth of mid-teens

Micron8▪ CY-20 bit supply growth to be slightly above industry bit supply growth▪ Long-term Micron supply growth in line with industry demand CAGR of

mid-to-high teens

December 18, 2019

NAND Outlook▪ CY-19 industry bit demand growth in the mid-40% range

Industry▪ CY-20 industry bit demand growth of high-20% to low-30% range. Industry bit

supply to be lower than industry bit demand▪ Long-term industry bit demand growth CAGR of approximately 30%▪ CY-19 bit supply growth slightly below industry bit demand growth▪ CY-20 bit supply growth to be meaningfully below industry bit supply growth; bit

Micronshipment growth to be close to industry bit demand growth as we ship ourinventory during first generation of our RG transition▪ Long-term Micron supply growth in line with industry demand CAGR of

approximately 30%
9December 18, 2019

Huawei Update▪ We applied for, and recently received all requested licenses thatenable us to provide support for certain products not subject toExport Administration Regulations and Entity List restrictions, aswell as qualify new products for Huawei’s mobile and serverbusinesses.

▪ Although we are now able to qualify new products with Huawei’s

mobile and server businesses, it will take some time before thequalifications are completed and contribute to revenue.

▪ Consequently, we do not expect these licenses to have a material

impact on our revenue in the next couple of quarters▪ If there are changes to Export Administration Regulations or Entity

List restrictions, our revenue with Huawei or other Chinese
customers could be negatively impacted, and these licenses could
be rendered ineffective by new regulations.

10

December 18, 2019

Dave Zinsner
Chief Financial Officer

11

December 18, 2019

FQ1-20 Revenue$5.1B
Revenue up 6% Q/Q and down 35% Y/Y

12December 18, 2019

Performanceby Technology
DRAM

NAND

▪

67% of total revenue in FQ1-20▪

Revenue up 2% Q/Q and down 41% Y/Y▪

Bit shipments up approximately 10% Q/Q▪

Bit shipments up mid-20 percent range Y/Y▪

ASPs down upper-single digit percent range Q/Q▪

28% of total revenue in FQ1-20▪

Revenue up 18% Q/Q and down 14% Y/Y▪

Bit shipments up mid-teen percent range Q/Q▪

Bit shipments up mid-30 percent range Y/Y▪

ASPs up low-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.

13

December 18, 2019

Revenue by Business Unit

14

FQ1-20

FQ4-19Q/Q % Change

FQ1-19Y/Y % Change

Compute and Networking (CNBU)$1.98B$1.90B4%$3.60B(45)%

Mobile (MBU)$1.46B$1.41B4%$2.21B(34)%

Storage (SBU)

$968M

$848M

14%

$1.14B(15)%

Embedded (EBU)

$734M

$705M

4%

$933M

(21)%

December 18, 2019

FQ1-20
Non-GAAP Operating Results
Revenue: $5.1 billion

Gross Margin: 27.3%
Net Income: $548 million
Diluted EPS: $0.48
Operating Expenses: $811 million

Operating Income: $594 million
Cash from Operations: $2.0 billion

15

December 18, 2019

Capital Allocation$50M used for share repurchases
in FQ1-20(1 million shares)$200M used for convert reduction
in FQ1-20(3 million shares)$2.7B of net cash at endof FQ1-20

Cash
ReturnNet
CapEx1

Cash3Debt

Liquidity2

1

2

3

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

16

FY-20 CapEx of $7B-$8B

December 18, 2019$11B in liquidity at endof FQ1-20

FQ2-20 GuidanceNon-GAAP
Revenue$4.5 billion to $4.8 billion

Gross margin

27% ± 1.5%

Operating expenses$825 million ± $25 million

Interest (income) expense, net$0 million

Diluted EPS*

$0.35 ± $0.06*Based on ~1.14 billion diluted shares

17

December 18, 2019

Other Key Data
18

December 18, 2019

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

FQ1-20% ofRevenue% of
Revenue

FQ1-19% ofRevenue

Revenue$5,144100%$4,870100%$7,913100%

Gross margin

1,405

27%

1,491

31%

4,670

59%

Operating income

594

12%

694

14%

3,887

49%

Income tax (provision) benefit(42)

Net income attributable to Micron

548

Diluted earnings per share

0.48

0.56

2.97

Cash provided by operating activities

2,011

2,233

4,810

Cash, marketable investments, andrestricted cash

8,313

9,246

7,206

(64)

11%

See Non-GAAP reconciliations

19

FQ4-19December 18, 2019

637

(400)

13%

3,508

44%

Non-GAAP Financial Data and Guidance% of Revenue

FQ1-20 Non-GAAP

FQ1-20

DRAM

67%

NAND

28%

(amounts in millions,
except per share)

Revenue$

Gross margin% Sales Volume Change

FQ1-20 Q/Q

DRAM

Increased
approximately 10%

NAND

Increased mid-teens
percent range% ASP Change

DRAM

NAND

FQ1-20 Q/Q
Decreased upper-single-digit
percent range
Increased low-single-digit
percent range$4.5 billion to $4.8 billion

27%27% ± 1.5%

Operating expenses$

811$825 million ± $25 million

Interest (income) expense, net$(7)$0 million

Earnings per share

$

0.48

$0.35 ± $0.06

FQ1-20 Non-GAAP(amounts in millions)

Diluted shares

FQ2-20Non-GAAP Estimates

1,138~1.14 billion

Income tax (provision) benefit

$

(42)

~5% rate

Operating cash flow

$

2,011

—

Depreciation and amortization

$

1,289

—

Capital expenditures(capital cash flow)*

$

1,932

FY-20: $7 billion to $8 billion

See Non-GAAP reconciliations*Net of amounts funded by partners

20

5,144

FQ2-20Non-GAAP GuidanceDecember 18, 2019

Convertible Notes Dilution Overview(shares in millions)
Actual
FQ1-20*

$39

$42

$45

$48

$51

$54

$57

$60

$63

$66

2032 D Notes

11

10

10

10

11

11

11

11

11

11

11

2033 F Notes

1

1

1

1

1

1

1

1

1

1

1

Total dilutive shares

12

11

11

11

12

12

12

12

12

12

12

Benefit from capped call

(2)

(3)

(2)

(2)

(2)

(2)

(2)

(2)

(2)

(2)

(1)

Net dilution

10

8

9

9

10

10

10

10

10

10

11

Stock Price

Note: Except for actual FQ1-20 dilution, the table above presents the potential dilutive impact ofconvertible notes outstanding as of November 28, 2019 and the anti-dilutive benefit from capped calls
over the range of trading prices for Micron’s stock.
*Represents the actual dilutive impact of convertible notes for FQ1-20 diluted sharecount based on an average share price of $46.87 for the quarter.

21

December 18, 2019

Revenue by Technology
Amounts in millions% of
Revenue

FQ1-20% ofRevenue

FQ1-19% ofRevenueDRAM$3,46967%$3,39970%$5,893

74%

NAND

1,422

28%

1,204

25%

1,660

21%

Other

253

5%

267

5%

360

5%

Total

$5,144100%$4,870100%$7,913

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.
22

FQ4-19December 18, 2019

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 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.
23

December 18, 2019

Non-GAAP Reconciliations
24

December 18, 2019

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ1-20GAAP gross margin
Stock-based compensation

$

1,366
31

$

—
1
7

Start-up and preproduction costs
Employee severance
Other

FQ1-19

1,395
29

$

12
47
8

Non-GAAP gross margin

$

1,405

$

GAAP operating expenses
Stock-based compensation

$

848
(41)

$

—
4
—

Employee severance
Restructure and asset impairments
Other

1,491

4,615
26
8
13
8

$

4,670

745 $
(38)

856
(35)

(32)
122
—

(7)
(30)
(1)

Non-GAAP operating expenses

$

811

$

797

$

783

GAAP operating income
Stock-based compensation
Start-up and preproduction costs

$

518
72
—

$

650
67
12

$

3,759
61
8

Employee severance
Restructure and asset impairments
Other

1
(4)
7

Non-GAAP operating income
25

FQ4-19$December 18, 2019

594

79
(122)
8
$

694

20
30
9
$

3,887

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ1-20GAAP net income attributable to Micron

$

491

$

FQ1-19
561

$

3,293

Stock-based compensation

72

67

61

Start-up and preproduction costs

—

12

8

Employee severance

1

79

20

Restructure and asset impairments

(4)

(122)

30

Amortization of debt discount and other costs

10

10

18

(Gain) loss on debt repurchases and conversions

(42)

10

(14)

Other

7

13

15

Impact of U.S. income tax reform

—

—

47

Estimated tax effects of above, non-cash changes in net deferred income
taxes, and assessments of tax exposures

13

7

30

Non-GAAP net income attributable to Micron

$

548

$

3,508

GAAP income tax (provision) benefit$(55) $(71) $(477)

Impact of U.S. income tax reform

—

—

47

Estimated tax effects of non-GAAP adjustments, non-cash changes in net
deferred income taxes, and assessments of tax exposures

13

7

30

(64) $(400)

Non-GAAP income tax (provision) benefit

26

FQ4-19$December 18, 2019$(42) $

637

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ1-20GAAP cost of goods sold

$

3,778

$

FQ1-19

3,475

$

3,298

Stock-based compensation

(31)

(29)

(26)

Start-up and preproduction costs

—

(12)

(8)

Employee severance

(1)

(47)

(13)

Other

(7)

(8)

(8)

Non-GAAP cost of goods sold$3, 739

$

3,379

$

3,243

GAAP selling, general and administrative

$

211

$

212

$

209

Stock-based compensation

(22)

(18)

(19)

Employee severance

—

(10)

(2)

Non-GAAP selling, general and administrative

$

189

$

184

$

188

GAAP research and development

$

640

$

623

$

611

Stock-based compensation

(19)

(20)

(16)

Employee severance

—

(22)

(5)

—
621

—
581

(1)
589

Other
Non-GAAP research and development27

FQ4-19$December 18, 2019$$

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts

FQ1-20GAAP 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

FQ1-19

1,129

1,128

1,174

9

6

5

1,138

1,134

1,179

0.43

$

0.05

0.49

$

0.07

2.81
0.16

Non-GAAP diluted earnings per share

$

0.48

$

0.56

$

2.97

GAAP net income

$

508

$

586

$

3,296

Interest (income) expense, net

3

(18)

(5)

Provision (benefit) for income taxes

55

71

477

1,296

1,416

1,335

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

$

1,862

$

2,055

$

5,103

Net cash provided by operating activities

$

2,011

$

2,233

$

4,810

Expenditures for property, plant, and equipment
Payments on equipment purchase contracts

Net partner contributions
Adjusted free cash flow
28

FQ4-19$December 18, 2019

(1,943)(2,028)(2,700)

(11)

(21)

(20)

22
79

79
263

236
2,326

$

$

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions

FQ1-20GAAP interest (income) expense, net$

Amortization of debt discount and other costs

FQ4-193$(10)

Non-GAAP interest (income) expense, net

$

(7)

$

Amounts in millions(18) $

(5)

(10)

(18)

(28) $(23)

FQ1-20Cash and short-term investments

$

7,588

FQ4-19$

7,955

Current and noncurrent restricted cash

126

127

Long-term marketable investments

599

1,164

(5,650)(5,851)

Current and long-term debt
Net cash29

FQ1-19$December 18, 2019

2,663

$

3,395

FQ2-20 GuidanceNon-GAAP Reconciliations
GAAP
Revenue

Adjustments$4.5 billion to $4.8 billion—

26% ± 1.5%

1%A

27% ± 1.5%$878 million ± $25 million$53 million

B$825 million ± $25 million$5 million$5 millionC$0 million$0.25 ± $0.06$0.10

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$4.5 billion to $4.8 billion

A,B,C,D$0.35 ± $0.06

$

32
7

B

Stock-based compensation – sales, general, and administrative

20

B

Stock-based compensation – research and development

21

B

Other – operating expenses

12

C
D

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

5
14
$

111

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 ofour control.
*GAAP EPS based on ~1.13 billion diluted shares and non-GAAP EPS based on ~1.14 billion diluted shares

30

December 18, 2019

31

December 18, 2019