Slide 1: Financial results FQ3 2023
Financial results FQ3 2023 d4icron
Slide 2: Safe harbor statement
Safe harbor statement During the course of this meeting, we may make projections or other forward-looking statements regarding market demand and supply, future events or the future financial performance of the Company and the industry. We wish to caution you that such statements are predictions, and
Slide 3: Sanjay Mehrotra, President and CEO
Sanjay Mehrotra President and CEO June 28, 2023 3
Slide 4: Overview
Overview • Micron delivered fiscal third quarter revenue within our guidance • We have increased confidence that the industry has passed the range, with gross margin and EPS above the range. bottom for quarterly revenue and year-on-year revenue growth. • The ongoing improvement of customer inventori
Slide 5: Update on business in China
Update on business in China • The impact of the May 21st decision by the Cyberspace Administration of China (CAC) on the business of Micron remains uncertain and fluid. • Several Micron customers, including mobile OEMs, have been contacted by certain Critical Information Infrastructure (CII) operato
Slide 6: Technology & production
Technology & production • Micron continues to lead the industry in both DRAM and NAND technology. We are investing prudently to maintain our technology competitiveness while managing capex, node ramps and wafer start reductions to reduce our bit supply and align it with demand. • Our industry-leadin
Slide 7: Backend investments
Backend investments • We are advancing our global assembly and test network in order to support our product portfolio and extend our ability to deliver on global customer demand. • In China, we announced an investment of approximately $600M over the next several years in our operations in Xi’an. • A
Slide 8: End market highlights
End market highlights Data center • Strong sequential revenue growth in both cloud and enterprise in fiscal Q3 • DDR5 (D5): Our D5 percentage of DRAM shipments has more than driven by some recovery from depressed sales levels in fiscal Q2. doubled from Q2 to Q3, and we expect Micron D5 volume to cro
Slide 9: End market highlights
End market highlights PC and Mobile and graphics intelligent edge • PC: Forecast CY23 PC unit volume to decline by a low double-digit % YoY, • Mobile: Now expect CY23 smartphone unit volumes to be down by a mid- with PC units to be below the pre-COVID levels last seen in 2019. single digit % YoY. Wh
Slide 10: Outlook and actions
Outlook and actions • Expectations for calendar 2023 industry bit demand growth have reduced to Micron Actions: low-to-mid single digits in DRAM and to high-single digits in NAND, which are well below the expected long-term CAGR of mid-teens percentage range in • We have taken decisive DRAM and low
Slide 11: Mark Murphy, Chief Financial Officer
Mark Murphy Chief Financial Officer June 28, 2023 11
Slide 12: FQ3-23 revenue
FQ3-23 revenue Revenue up 2% Q/Q and down 57% Y/Y June 28, 2023 12
Slide 13: Performance by technology
Performance by technology DRAM NAND • 71% of total revenue in FQ3-23 • 27% of total revenue in FQ3-23 • Revenue down 2% Q/Q • Revenue up 14% Q/Q • Bit shipments increased in the 10-percentange • Bit shipments increased in the upper 30- range Q/Q percentage range Q/Q • ASPs declined approximately 10%
Slide 14: Revenue by business unit
Revenue by business unit Amounts in millions FQ3-23 FQ2-23 Q/Q % Change FQ3-22 Y/Y % Change Compute and Networking (CNBU) $1,389 $1,375 1% $3,895 (64%) Embedded (EBU) $912 $865 5% $1,435 (36%) Mobile (MBU) $819 $945 (13%) $1,967 (58%) Storage (SBU) $627 $507 24% $1,341 (53%) June 28, 2023 14
Slide 15: FQ3-23 Non-GAAP Operating Results
FQ3-23 Non-GAAP Operating Results Fiscal third quarter results were impacted by ~$400 million of inventory write downs, impacting EPS by $0.37 per diluted share Revenue: $3.8 billion Gross margin: (16%) Operating expenses: $866 million Operating income (loss): ($1.5 billion) Net income (loss): ($1.6
Slide 16: Cash flow and capital allocation
Cash flow and capital allocation From FY-20 to FQ3-23: Cash flow FQ3-23: $24M (1% of revenue) from operations • $4.2 billion towards repurchasing 63 million shares FQ3-23: CapEx of $1.4B Net CapEx1 • ~$300 million toward settling convert premiums FY-23: CapEx guidance of ~$7.0B which reduced diluted
Slide 17: FQ4-23 guidance Non-GAAP
FQ4-23 guidance Non-GAAP Revenue $3.90 billion ± $200 million Gross margin (10.5%) ± 2.5% Operating expenses $845 million ± $15 million Diluted earnings (loss) per share* ($1.19) ± $0.07 *Based on ~1.10 billion diluted shares June 28, 2023 17
Slide 18: Other key data
Other key data June 28, 2023 18
Slide 19: Financial Summary Non-GAAP
Financial Summary Non-GAAP Amounts in millions, except per share FQ3-23 % of FQ2-23 % of FQ3-22 % of Revenue Revenue Revenue Revenue $3,752 100% $3,693 100% $8,642 100% Gross margin (603) (16%) (1,161) (31%) 4,097 47% Operating income (loss) (1,469) (39%) (2,077) (56%) 3,144 36% Income tax (provisio
Slide 20: Non-GAAP Financial Data and Guidance
Non-GAAP Financial Data and Guidance % of Revenue FQ3-23 FQ3-23 Non-GAAP FQ4-23 (amounts in millions, DRAM 71% Non-GAAP Guidance except per share) NAND 27% Revenue $ 3,752 $3.90 billion ± $200 million Gross margin (16%) (10.5%) ± 2.5% % Sales Volume Change FQ3-23 Q/Q Operating expenses $ 866 $845 mi
Slide 21: Revenue by Technology
Revenue by Technology % of % of % of Amounts in millions FQ3-23 Revenue FQ2-23 Revenue FQ3-22 Revenue DRAM $ 2,672 71% $ 2,722 74% $ 6,271 73% NAND 1,013 27% 885 24% 2,288 26% Other 67 2% 86 2% 83 1% Total $ 3,752 100% $ 3,693 100% $ 8,642 100% Percentages of total revenue may not total 100% due to
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations June 28, 2023 22
Slide 23: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ3-23 FQ2-23 FQ3-22 GAAP gross margin $ (668) $ (1,206) $ 4,035 Stock-based compensation 60 41 57 Other 5 4 5 Non-GAAP gross margin $ (603) $ (1,161) $ 4,097 GAAP operating expenses $ 1,093 $ 1,097 $ 1,031 Stock-based compensation (9
Slide 24: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ3-23 FQ2-23 FQ3-22 GAAP cost of goods sold $ 4,420 $ 4,899 $ 4,607 Stock-based compensation (60) (41) (57) Other (5) (4) (5) Non-GAAP cost of goods sold $ 4,355 $ 4,854 $ 4,545 GAAP research and development $ 758 $ 788 $ 773 Stock-b
Slide 25: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ3-23 FQ2-23 FQ3-22 GAAP net income (loss) $ (1,896) $ (2,312) $ 2,626 Stock-based compensation 151 136 135 Restructure and asset impairments 68 86 — Litigation contingency accrual 68 — — Amortization of debt discount and other costs
Slide 26: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ3-23 FQ2-23 FQ3-22 GAAP shares used in diluted EPS calculations 1,094 1,091 1,121 Adjustment for stock-based compensation — — 15 Non-GAAP shares used in diluted EPS calculations 1,094 1,091 1,136 GAAP diluted earnings (loss) per sha
Slide 27: FQ4-23 guidance Non-GAAP reconciliations
FQ4-23 guidance Non-GAAP reconciliations GAAP Adjustments Non-GAAP Revenue $3.90 billion ± $200 million — $3.90 billion ± $200 million Gross margin (12.5%) ± 2.5% 2.0% A (10.5%) ± 2.5% Operating expenses $946 million ± $15 million $101 million B $845 million ± $15 million Diluted earnings (loss) per
Slide 28: Rights reserved and trademark notice
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