Slide 1: Financial Results FQ1 2022
Financial Results FQ1 2022 © 2021 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
Micron Highly Confidential 2 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 a
Slide 3: Sanjay Mehrotra, President and CEO
Micron Highly Confidential 3 Sanjay Mehrotra President and CEO December 20, 2021 Micron Highly Confidential
Slide 4: Highlights
Micron Highly Confidential 4 Highlights § Delivered outstanding results in fiscal Q1, achieving strong year-over-year revenue growth and solid profitability § On track to deliver record revenue and robust profitability in fiscal 2022 § Rapidly ramping our industry-leading 1-alpha DRAM and 176-layer
Slide 5: Strong Technology and Roadmap Execution
Micron Highly Confidential 6 Strong DRAM NAND Technology § The combination of 1-alpha and 1z DRAM nodes represents the majority of § 176-layer NAND now accounts for the majority of our NAND bit and Roadmap our DRAM bit production production Execution § Planning for volume DRAM production on EUV in 2
Slide 6: Operations
Micron Highly Confidential 6 Operations § Two-thirds of our customers rank us No. 1 in quality § Amid ongoing semiconductor supply chain challenges, Micron has leveraged our deep partnerships with customers and suppliers to support DRAM, NAND and NOR supply continuity § Over 75% of our revenue comes
Slide 7: End Market Highlights
Micron Highly Confidential 7 End Market Highlights Data Center PC & Graphics Mobile & Intelligent Edge § Memory and storage is growing as a portion of § PC: Inventory adjustment at most PC customers is § Mobile: Mobile revenue increased more than 25% Y/Y server BOM, supported by new and heterogenous
Slide 8: Outlook
Micron Highly Confidential 8 Outlook § Expect CY-21 industry DRAM bit demand growth to be in the low 20% range and industry NAND bit demand growth to be in the high 30% range Industry § Expect CY-22 industry bit demand growth to be in the mid to high teens for DRAM and approximately 30% for NAND § L
Slide 9: Dave Zinsner, Chief Financial Officer
Micron Highly Confidential 9 Dave Zinsner Chief Financial Officer December 20, 2021 Micron Highly Confidential
Slide 10: FQ1-22 Revenue $7.7B
Micron Highly Confidential 10 FQ1-22 Revenue $7.7B Revenue down 7% Q/Q and up 33% Y/Y December 20, 2021 Micron Highly Confidential
Slide 11: Performance by Technology
Micron Highly Confidential 11 Performance by Technology § 73% of total revenue in FQ1-22 DRAM § Revenue down 8% Q/Q and up 38% Y/Y § Bit shipments down mid-single-digit percent range Q/Q § ASPs down lower-single-digit percent range Q/Q § 24% of total revenue in FQ1-22 NAND § Revenue down 5% Q/Q and
Slide 12: Revenue by Business Unit
Micron Highly Confidential 12 Revenue by Business Unit FQ1-22 FQ4-21 Q/Q % Change FQ1-21 Y/Y % Change Amounts in millions Compute and Networking (CNBU) $3,406 $3,794 (10)% $2,546 34% Mobile (MBU) $1,907 $1,892 1% $1,501 27% Storage (SBU) $1,150 $1,203 (4)% $911 26% Embedded (EBU) $1,220 $1,360 (10)%
Slide 13: Non-GAAP Operating Results
Micron Highly Confidential 13 FQ1-22 Non-GAAP Operating Results Revenue: $7.7 billion Gross Margin: 47.0% Operating Expenses: $891 million Operating Income: $2.7 billion Net Income: $2.5 billion Diluted EPS: $2.16 Adjusted EBITDA: $4.4 billion Cash from Operations (GAAP): $3.9 billion December 20, 2
Slide 14: Cash Flow and Capital Allocation
Micron Highly Confidential 14 Cash Flow Cash Flow from FQ1-22: $3.9B (51% of revenue) and Capital § Operations Net CapEx1 § FY-22: CapEx guidance of $11B to $12B Allocation FCF* § FQ1-22: $671M From FY-17 to FQ1-22, generated Buybacks § FQ1-22: $259M (3.6M shares) approximately $21 billion of free c
Slide 15: FQ2-22 Guidance
Micron Highly Confidential 15 FQ2-22 Guidance Non-GAAP Revenue $7.5 billion ± $200 million Gross margin 46.0% ± 1% Operating expenses $975 million ± $25 million Diluted EPS* $1.95 ± $0.10 *Based on ~1.14 billion diluted shares December 20, 2021 Micron Highly Confidential
Slide 16: The New Micron Delivers Strong Revenue Growth and Profitability Cross Cycle
Micron Highly Confidential 16 The New Micron Delivers Strong Revenue Growth and Profitability Cross Cycle *4-year average metrics reveal sustained cross cycle performance Strong revenue growth Cash Meaningful FCF Growing Asset Base outpacing broader semis generation power over time >2x >4x ~5x ~4x $
Slide 17: Q&A
Micron Highly Confidential 16 Q&A December 20, 2021 Micron Highly Confidential
Slide 18: Other Key Data
Micron Highly Confidential 17 Other Key Data December 20, 2021 Micron Highly Confidential
Slide 19: Financial Summary
Micron Highly Confidential 18 Financial Summary Non-GAAP % of % of % of Amounts in millions, except per share FQ1-22 FQ4-21 FQ1-21 Revenue Revenue Revenue Revenue $7,687 100% $8,274 100% $5,773 100% Gross margin 3,616 47% 3,964 48% 1,784 31% Operating income 2,725 35% 3,073 37% 973 17% Income tax (p
Slide 20: Non-GAAP Financial Data and Guidance
Micron Highly Confidential 19 Non-GAAP Financial Data and Guidance % of Revenue FQ1-22 FQ1-22 Non-GAAP FQ2-22 (amounts in millions, Non-GAAP Guidance DRAM 73% except per share) NAND 24% Revenue $ 7,687 $7.5 billion ± $200 million Gross margin 47.0% 46.0% ± 1% % Sales Volume Change FQ1-22 Q/Q Operati
Slide 21: Revenue by Technology
Micron Highly Confidential 20 Revenue by Technology % of % of % of Amounts in millions FQ1-22 FQ4-21 FQ1-21 Revenue Revenue Revenue DRAM $5,587 73% $6,091 74% $4,056 70% NAND 1,878 24% 1,971 24% 1,574 27% Other 222 3% 212 3% 143 2% Total $7,687 100% $8,274 100% $5,773 100% Percentages of total reven
Slide 22: Non-GAAP Reconciliations
Micron Highly Confidential 21 Non-GAAP Reconciliations December 20, 2021 Micron Highly Confidential
Slide 23: Consolidated Results
Micron Highly Confidential 22 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-22 FQ4-21 FQ1-21 GAAP gross margin $ 3,565 $ 3,912 $ 1,736 Stock-based compensation 43 43 41 Other 8 9 7 Non-GAAP gross margin $ 3,616 $ 3,964 $ 1,784 GAAP operating expenses $ 934 $ 957 $ 870 Stock-b
Slide 24: Consolidated Results
Micron Highly Confidential 24 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-22 FQ4-21 FQ1-21 GAAP cost of goods sold $ 4,122 $ 4,362 $ 4,037 Stock-based compensation (43) (43) (41) Other (8) (9) (7) Non-GAAP cost of goods sold $ 4,071 $ 4,310 $ 3,989 GAAP research and develop
Slide 25: Consolidated Results
Micron Highly Confidential 25 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-22 FQ4-21 FQ1-21 GAAP net income $ 2,306 $ 2,720 $ 803 Stock-based compensation 116 93 92 Restructure and asset impairments 38 22 8 Amortization of debt discount and other costs 9 8 7 (Gain) loss on d
Slide 26: Consolidated Results
Micron Highly Confidential 26 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-22 FQ4-21 FQ1-21 GAAP shares used in diluted EPS calculations 1,130 1,138 1,135 Adjustment for stock-based compensation and capped calls 11 9 11 Non-GAAP shares used in diluted EPS calculations 1,141
Slide 27: Consolidated Results
Micron Highly Confidential 27 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-22 FQ4-21 FQ1-21 Net cash provided by operating activities $ 3,938 $ 3,884 $ 1,967 Expenditures for property, plant, and equipment (3,265) (2,015) (2,738) Proceeds from sales of property, plant, and e
Slide 28: FQ2-22 Guidance
Micron Highly Confidential 28 FQ2-22 Guidance Non-GAAP Reconciliations GAAP Adjustments Non-GAAP Revenue $7.5 billion ± $200 million — $7.5 billion ± $200 million Gross margin 45.0% ± 1% 1% A 46.0% ± 1% Operating expenses $1,058 million ± $25 million $83 million B $975 million ± $25 million Diluted
Slide 29: Consolidated Results
Micron Highly Confidential 29 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-11 FY-12 FY-13 Net cash provided by operating activities $ 2,482 $ 2,115 $ 1,811 Expenditures for property, plant, and equipment (2,550) (1,871) (1,442) Proceeds from sales of property, plant, and equi
Slide 30: Consolidated Results
Micron Highly Confidential 30 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-17 FY-18 FY-19 Net cash provided by operating activities $ 8,153 $ 17,400 $ 13,189 Expenditures for property, plant, and equipment (4,734) (8,879) (9,780) Proceeds from sales of property, plant, and eq
Slide 31: Consolidated Results
Micron Highly Confidential 31 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-14 FY-15 FY-16 Equity $ 11,562 $ 13,239 $ 12,928 Less: Intangible assets 468 449 464 Goodwill 4 23 104 Tangible book value $ 11,090 $ 12,767 $ 12,360 Amounts in millions FY-17 FY-18 FY-19 Equity $ 19,4
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