Micron Technology, Inc. · NASDAQ:MU
Micron Technology — Merger or Acquisition (February 2013)
20 slides from Micron Technology's merger presentation, Feb 5, 2013
Slide 1: Presentation Highlights
February 5, 2013 Presentation Highlights February 5, 2013 ©2013 Micron Technology, Inc. All rights reserved. Products are warranted only to meet Micron’s production data sheet specifications. Information, products, and/or specifications are subject to change without notice. All information is provid
Slide 2: Cautionary Statement
Cautionary Statement In this presentation, we may make projections or other forward-looking statements regarding future events, including whether and when the Elpida transactions will be completed and the results of the Elpida transactions, or the future financial performance and trends of the Compa
Slide 3: Financial Overview
Financial Overview Ron Foster Chief Financial Officer February 5, 2013
Slide 4: Elpida Performance Update
Elpida Performance Update January to September 2012 was a transition period for Elpida Filed for bankruptcy in February Filed reorganization plan in late August with Tokyo court with Micron as sponsor Since the signing of the Sponsor Agreement with Micron in July, Elpida’s key business drivers have
Slide 5: Micron + Elpida Pro Forma Quarterly Income Statement
Income Statement (USD’M) Fiscal Quarter ended Micron Nov 29, 2012 Elpida Sep 30, 2012 Pro Forma Adj. Pro Forma Combined Net Sales $1,834 $794 ($9) $2,619 COGS 1,617 777 (196) 2,198 Gross Margin 217 17 187 421 % Margin 12% 2% 16% Operating Expenses (374) (157) 10 (521) % of Revenue 20% 20% 20% Operat
Slide 6: Micron’s Path to Continued Leadership
Micron’s Path to Continued Leadership February 5, 2013 CQ1’12: Acquisition of IMFlash (Singapore and MTV) from Intel Increase NAND gross margin Extend & expand NAND technology JV Incremental trade NAND capacity CQ1‘13: Restructuring of Inotera JV Stabilize DRAM gross margin No obligation to fund CAP
Slide 7: Strategy Overview
Strategy Overview Mark Durcan Chief Executive Officer February 5, 2013
Slide 8: Business Highlights
Business Highlights Large multi-market opportunities in semiconductor memory with significant growth drivers Largest global pure play memory company (post Elpida transaction) Diversified across memory technologies and end markets; focused on high growth, high margin segments Financial strength to in
Slide 9: Memory Markets Continue to Grow
Memory Markets Continue to Grow February 5, 2013 Forecast NOR TAM NAND TAM DRAM TAM MEMORY TAM Sources: Gartner (4Q12)
Slide 10: Diversified Memory End Markets
Automotive Server Mobile Personal Computing Industrial Multimarket Storage Graphics / Consumer Networks Diversified Memory End Markets February 5, 2013
Slide 11: Micron End Market and Technology Diversification
Source: Micron * LTM is FQ2-12 through FQ1-13; AIMM is Auto, Industrial, Medical and Military Micron End Market and Technology Diversification February 5, 2013 SSD Other AIMM Networking & Storage Server Consumer Mobile Personal Systems End Applications NOR Other NAND DRAM Memory Technology NAND Over
Slide 12: SSD and Mobile Driving NAND Bit Growth
SSD and Mobile Driving NAND Bit Growth February 5, 2013 Source: Micron, Gartner 4Q12; Cards included in Mobile and DSC 2012 – 2016 NAND Bit CAGR 40% 73% 13% 32% 27% 38% 71% 39% Tablets SSD PMP/MP3 USB DSC/Video Mobile PC/Com (Non-SSD) Embedded, AIMM End Applications
Slide 13: Shift to Mobility Driving DRAM Bit Growth
Shift to Mobility Driving DRAM Bit Growth February 5, 2013 2012 – 2016 DRAM Bit CAGR 33% 28% 44% 46% 23% AIMM Tablet Consumer Mobile Server/ Storage PC/Computing End Applications 67% Source: Micron, Gartner 4Q12; AIMM is Auto, Industrial, Medical and Military
Slide 14: Expanding Customer Landscape
February 5, 2013 PC/NB Server & Storage Networking Mobile Consumer Enablers OS Expanding Customer Landscape + + + + + + +
Slide 15: Memory Technology Roadmap
Memory Technology Roadmap February 5, 2013 Memory Cost Scaling Over Time Today Physical and Electrical Materials Limitations Equipment Capability Cost and Complexity Historical ~30% YoY Reductions Historical ~40% YoY Reductions Hybrid Memory Cube - DRAM Increased Bandwidth Power Efficiency Scalabili
Slide 16: Elpida Acquisition - Solidifying Leadership in Memory
Elpida Acquisition - Solidifying Leadership in Memory February 5, 2013 Founded in 1978 Headquartered in Boise, Idaho ~27,000 Employees LTM Revenue: $8.0bn IP Patents: ~25,000 Fab locations: Boise, Idaho Manassas, Virginia Lehi, Utah Singapore Taiwan (Inotera) Italy Israel Total Capacity: 435k WSPM¹
Slide 17: Scale to Invest, Compete, and Serve Customers
Source: Company Data, Micron Estimates, Competitor data from C1’Q12 – CQ4’12 except for Micron, Elpida, and Windbond (thru CQ3-12 as they have not yet reported) 1. Group total defined as only those companies listed on this page although others may also exist 2. Micron Includes NAND sold to Intel fro
Slide 18: Solidifying Leadership In Memory
Solidifying Leadership In Memory February 5, 2013 Industry leading pure-play memory company with scale to invest, compete and serve our customers Greater Manufacturing Scale Creating Significant Shift in Strategic Capability ~90% increase in trade wafer capacity (includes Micron’s trade NAND and tot
Slide 19: Business Highlights
Business Highlights February 5, 2013 Large multi-market opportunities in semiconductor memory with significant growth drivers Largest global pure play memory company (post Elpida transaction) Diversified across memory technologies and end markets; focused on high growth, high margin segments Financi
Slide 20: Focused on Memory | Engineered for Innovation
cron: Focused on Memory | Engineered for Innovation
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