Slide 1: Financial Results FQ2 2023
Financial Results FQ2 2023 © 2023 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 regard
Slide 2: Safe Harbor Statement
2 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, a
Slide 3: Sanjay Mehrotra, President and CEO
3 Sanjay Mehrotra President and CEO March 28, 2023
Slide 4: Overview
4 Overview ▪ Delivered fiscal second quarter revenue within our guidance range; margins and EPS were also within the range (excl. impact of inventory write downs). ▪ Believe that customer inventories have reduced in several end markets and see gradually improving supply-demand balance in the months
Slide 5: Technology
5 Technology ▪ We are investing prudently to maintain our technology competitiveness, while managing node ramps to reduce our bit supply and align it with demand. ▪ In DRAM, 1-alpha represents most of our DRAM bit production, and we continue to make great progress in initiating our transition to 1-b
Slide 6: End Market Highlights
6 End Market Highlights Data Center PC & Graphics Mobile & Intelligent Edge ▪ Believe that our revenue bottomed in fiscal ▪ PC: now forecast calendar 2023 PC units to ▪ Mobile: now expect calendar 2023 Q2. Data center customer inventories decline by mid-single digit percentage smartphone units to be
Slide 7: Industry Outlook
7 Industry Outlook ▪ Expectations for calendar 2023 industry bit demand growth have moderated to approximately 5% in DRAM and low-teens percentage range in NAND, which are well below the expected long-term CAGR of mid-teens percentage range in DRAM and low 20s percentage range in NAND. ▪ The reducti
Slide 8: Micron's Actions and Outlook
8 Micron’s Actions and Outlook 1. Reducing our supply: Made additional reductions to our fiscal 2023 capex plan Resulting Outlook: and now expect to invest ~$7B, down >40% from last year, with WFE down >50%. Expect Micron’s CY23 In fiscal 2024, we expect WFE to fall further, as we ramp 1-beta and 23
Slide 9: Mark Murphy, Chief Financial Officer
9 Mark Murphy Chief Financial Officer March 28, 2023
Slide 10: FQ2-23 Revenue $3.7B
10 FQ2-23 Revenue $3.7B Revenue down 10% Q/Q and down 53% Y/Y March 28, 2023
Slide 11: Performance by Technology
11 Performance by Technology ▪ 74% of total revenue in FQ2-23 ▪ Revenue down 4% Q/Q DRAM ▪ Bit shipments increased in the mid-teens percent range Q/Q ▪ ASPs declined approximately 20% Q/Q ▪ 24% of total revenue in FQ2-23 ▪ Revenue down 20% Q/Q NAND ▪ Bit shipments increased in the mid-to-high single
Slide 12: Revenue by Business Unit
12 Revenue by Business Unit FQ2-23 FQ1-23 Q/Q % Change FQ2-22 Y/Y % Change Amounts in millions Compute and Networking (CNBU) $1,375 $1,746 (21%) $3,461 (60%) Mobile (MBU) $945 $655 44% $1,875 (50%) Embedded (EBU) $865 $1,000 (14%) $1,277 (32%) Storage (SBU) $507 $680 (25%) $1,171 (57%) March 28, 202
Slide 13: Non-GAAP Operating Results
13 FQ2-23 Non-GAAP Operating Results Fiscal second quarter results were impacted by $1.43 billion of inventory write downs; EPS impacted by $1.34 per diluted share Revenue: $3.7 billion Gross margin: (31.4%) Operating expenses: $916 million Operating income (loss): ($2.1 billion) Net income (loss):
Slide 14: Cash Flow and Capital Allocation
14 Cash Flow Cash flow from operations ▪ FQ2-23: $343M (9% of revenue) and Capital Net CapEx1 ▪ FQ2-23: CapEx of $2.2B ▪ FY-23: CapEx guidance of ~$7.0B Allocation FCF* ▪ FQ2-23: Negative $1.8B From FY-20 to FQ2-23: Buybacks ▪ FQ2-23: Temporarily suspended ▪ $4.2 billion towards repurchasing 63 mill
Slide 15: FQ3-23 Guidance
15 FQ3-23 Guidance Non-GAAP Revenue $3.70 billion ± $200 million Gross margin (21.0%) ± 2.5% Operating expenses $900 million ± $15 million Diluted earnings (loss) per share* ($1.58) ± $0.07 FQ3-23 guidance assumes ~$500 million of additional write downs associated with new inventory produced during
Slide 16: Other key data
16 Other key data March 28, 2023
Slide 17: Financial Summary
17 Financial Summary Non-GAAP Amounts in millions, except per share FQ2-23 % of FQ1-23 % of FQ2-22 % of Revenue Revenue Revenue Revenue $3,693 100% $4,085 100% $7,786 100% Gross margin (1,161) (31%) 934 23% 3,724 48% Operating income (loss) (2,077) (56%) (65) (2%) 2,750 35% Income tax (provision) be
Slide 18: Non-GAAP Financial Data and Guidance
18 Non-GAAP Financial Data and Guidance % of Revenue FQ2-23 FQ2-23 Non-GAAP FQ3-23 (amounts in millions, DRAM 74% Non-GAAP Guidance except per share) NAND 24% Revenue $ 3,693 $3.7 billion ± $200 million Gross margin (31.4%) (21.0%) ± 2.5% % Sales Volume Change FQ2-23 Q/Q Operating expenses $ 916 $90
Slide 19: Revenue by Technology
19 Revenue by Technology % of % of % of Amounts in millions FQ2-23 Revenue FQ1-23 Revenue FQ2-22 Revenue DRAM $ 2,722 74% $ 2,829 69% $ 5,719 73% NAND 885 24% 1,103 27% 1,957 25% Other 86 2% 153 4% 110 1% Total $ 3,693 100% $ 4,085 100% $ 7,786 100% Percentages of total revenue may not total 100% du
Slide 20: Non-GAAP Reconciliations
20 Non-GAAP Reconciliations March 28, 2023
Slide 21: Consolidated Results
21 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-23 FQ1-23 FQ2-22 GAAP gross margin $ (1,206) $ 893 $ 3,676 Stock-based compensation 41 36 44 Other 4 5 4 Non-GAAP gross margin $ (1,161) $ 934 $ 3,724 GAAP operating expenses $ 1,097 $ 1,102 $ 1,130 Stock-based compensation (95
Slide 22: Consolidated Results
22 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-23 FQ1-23 FQ2-22 GAAP cost of goods sold $ 4,899 $ 3,192 $ 4,110 Stock-based compensation (41) (36) (44) Other (4) (5) (4) Non-GAAP cost of goods sold $ 4,854 $ 3,151 $ 4,062 GAAP research and development $ 788 $ 849 $ 792 Stoc
Slide 23: Consolidated Results
23 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-23 FQ1-23 FQ2-22 GAAP net income (loss) $ (2,312) $ (195) $ 2,263 Stock-based compensation 136 126 119 Restructure and asset impairments 86 13 5 Amortization of debt discount and other costs 4 5 8 Other 4 5 80 Estimated tax eff
Slide 24: Consolidated Results
24 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-23 FQ1-23 FQ2-22 GAAP shares used in diluted EPS calculations 1,091 1,090 1,130 Adjustment for stock-based compensation - - 13 Non-GAAP shares used in diluted EPS calculations 1,091 1,090 1,143 GAAP diluted earnings (loss) per
Slide 25: FQ3-23 Guidance
25 FQ3-23 Guidance Non-GAAP Reconciliations GAAP Adjustments Non-GAAP Revenue $3.70 billion ± $200 million — $3.70 billion ± $200 million Gross margin (23.0%) ± 2.5% ~2% A (21.0%) ± 2.5% Operating expenses $1.07 billion ± $15 million $166 million B $900 million ± $15 million Diluted earnings (loss)
Slide 26: March 28, 2023
26 March 28, 2023