Slide 1: Financial Results FQ2 2021
Financial Results FQ2 2021 © 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
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 and that actual events or re
Slide 3: Sanjay Mehrotra, President and CEO
3 Sanjay Mehrotra President and CEO March 31, 2021
Slide 4: Highlights
4 Highlights ▪ Delivered strong FQ2 results above our original projections driven by solid execution and higher-than-expected demand across multiple end markets ▪ DRAM market is in severe shortage, and NAND market is showing signs of stabilization in the near term ▪ Set revenue records for mobile MC
Slide 5: Operations
5 Operations ▪ We are confident our COVID-19 safety protocols will allow us to continue at full production levels ▪ Have been able to mitigate the impact of broad electronics-industry shortages to our production output through our proactive supply chain and inventory management strategies ▪ Investme
Slide 6: Strong Technology and Roadmap Execution
6 Strong Technology and Roadmap Execution DRAM NAND ▪ 1-alpha DRAM node in volume ▪ 176-layer NAND node in volume Solid progress toward our goals: production and ramping on plan production and ramping on plan ▪ Deliver industry-leading technology and ▪ Expect it to be our workhorse for FY22, ▪ Expec
Slide 7: End Market Highlights
7 End Market Highlights Data Center PC & Graphics Mobile & Intelligent Edge ▪ Memory and storage becoming an ▪ PC: Delivered record PC DRAM ▪ Mobile: Revenue grew 21% Q/Q, driven increasing portion of server BOM cost shipments despite pockets of non- by strong execution coupled with better-than- ▪ E
Slide 8: Outlook
8 Outlook ▪ CY-21 DRAM industry bit demand growth of approximately 20%, with DRAM industry supply to be below demand; DRAM market is currently facing a severe undersupply, causing DRAM prices to increase rapidly ▪ CY-21 NAND industry bit demand growth in the low-to-mid 30% range, with NAND industry
Slide 9: Dave Zinsner, Chief Financial Officer
9 Dave Zinsner Chief Financial Officer March 31, 2021
Slide 10: FQ2-21 Revenue $6.2B
10 FQ2-21 Revenue $6.2B Revenue up 8% Q/Q and up 30% Y/Y March 31, 2021
Slide 11: Performance by Technology
11 Performance by Technology ▪ 71% of total revenue in FQ2-21 ▪ Revenue up 10% Q/Q and up 44% Y/Y DRAM ▪ Bit shipments up high-single-digit percent range Q/Q ▪ ASPs up slightly Q/Q ▪ 26% of total revenue in FQ2-21 ▪ Revenue up 5% Q/Q and up 9% Y/Y NAND ▪ Bit shipments up high-single-digit percent ra
Slide 12: Revenue by Business Unit
12 Revenue by Business Unit FQ2-21 FQ1-21 Q/Q % Change FQ2-20 Y/Y % Change Amounts in millions Compute and Networking (CNBU) $2,636 $2,546 4% $1,967 34% Mobile (MBU) $1,811 $1,501 21% $1,258 44% Storage (SBU) $850 $911 (7)% $870 (2)% Embedded (EBU) $935 $809 16% $696 34% March 31, 2021
Slide 13: Non-GAAP Operating Results
13 FQ2-21 Non-GAAP Operating Results Revenue: $6.2 billion Gross Margin: 32.9% Operating Expenses: $797 million Operating Income: $1.3 billion Net Income: $1.1 billion Diluted EPS: $0.98 Adjusted EBITDA: $2.8 billion Cash from Operations (GAAP): $3.1 billion March 31, 2021
Slide 14: Capital Allocation
14 Capital Allocation $2.8B total share repurchases in FY-21 CapEx of ~$9B FY19 and FY20 Cash Net Return CapEx1 1 Cash3- $1.9B of net cash at end Liquidity2 2 $11.1B in liquidity at end of FQ2-21 Debt 3 of FQ2-21 1Capex net of amounts funded by partners and proceeds from sales of property, plant, an
Slide 15: FQ3-21 Guidance
15 FQ3-21 Guidance Non-GAAP Revenue $7.1 billion ± $200 million Gross margin 41.5% ± 1% Operating expenses $875 million ± $25 million Interest (income) expense, net $25 million Diluted EPS* $1.62 ± $0.07 *Based on ~1.16 billion diluted shares March 31, 2021
Slide 16: Other Key Data
17 Other Key Data March 31, 2021
Slide 17: Financial Summary
18 Financial Summary Non-GAAP Amounts in millions, except per share FQ2-21 % of FQ1-21 % of FQ2-20 % of Revenue Revenue Revenue Revenue $6,236 100% $5,773 100% $4,797 100% Gross margin 2,054 33% 1,784 31% 1,398 29% Operating income 1,257 20% 973 17% 542 11% Income tax (provision) benefit (125) (71)
Slide 18: Non-GAAP Financial Data and Guidance
19 Non-GAAP Financial Data and Guidance % of Revenue FQ2-21 FQ2-21 Non-GAAP FQ3-21 (amounts in millions, DRAM 71% Non-GAAP Guidance except per share) NAND 26% Revenue $ 6,236 $7.1 billion ± $200 million Gross margin 32.9% 41.5% ± 1% % Sales Volume Change FQ2-21 Q/Q Operating expenses $ 797 $875 mill
Slide 19: Revenue by Technology
20 Revenue by Technology % of % of % of Amounts in millions FQ2-21 Revenue FQ1-21 Revenue FQ2-20 Revenue DRAM $4,444 71% $4,056 70% $3,083 64% NAND 1,650 26% 1,574 27% 1,514 32% Other 142 2% 143 2% 200 4% Total $6,236 100% $5,773 100% $4,797 100% Percentages of total revenue may not total 100% due t
Slide 20: Non-GAAP Reconciliations
21 Non-GAAP Reconciliations March 31, 2021
Slide 21: Consolidated Results
22 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-21 FQ1-21 FQ2-20 GAAP gross margin $ 1,649 $ 1,736 $ 1,355 Inventory accounting policy change to FIFO 133 — — Change in inventory cost absorption 160 — — 3D XPoint inventory write-down 49 — — Stock-based compensation 57 41 37 O
Slide 22: Consolidated Results
23 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-21 FQ1-21 FQ2-20 GAAP operating income $ 663 $ 866 $ 440 Inventory accounting policy change to FIFO 133 — — Change in inventory cost absorption 160 — — 3D XPoint inventory write-down 49 — — Stock-based compensation 112 92 85 Pa
Slide 23: Consolidated Results
24 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-21 FQ1-21 FQ2-20 GAAP cost of goods sold $ 4,587 $ 4,037 $ 3,442 Inventory accounting policy change to FIFO (133) — — Change in inventory cost absorption (160) — — 3D XPoint inventory write-down (49) — — Stock-based compensatio
Slide 24: Consolidated Results
25 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-21 FQ1-21 FQ2-20 GAAP net income attributable to Micron $ 603 $ 803 $ 405 Inventory accounting policy change to FIFO 133 — — Change in inventory cost absorption 160 — — 3D XPoint inventory write-down 49 — — Stock-based compensa
Slide 25: Consolidated Results
26 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-21 FQ1-21 FQ2-20 GAAP shares used in diluted EPS calculations 1,144 1,135 1,133 Adjustment for stock-based compensation and capped calls 10 11 11 Non-GAAP shares used in diluted EPS calculations 1,154 1,146 1,144 GAAP diluted e
Slide 26: Consolidated Results
27 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ2-21 FQ1-21 FQ2-20 Net cash provided by operating activities $ 3,057 $ 1,967 $ 2,001 Investments in capital expenditures, net Expenditures for property, plant, and equipment, net* (3,000) (2,726) (2,013) Payments on equipment pur
Slide 27: FQ3-21 Guidance
28 FQ3-21 Guidance Non-GAAP Reconciliations GAAP Adjustments Non-GAAP Revenue $7.1 billion ± $200 million — $7.1 billion ± $200 million Gross margin 40.5% ± 1% 1% A 41.5% ± 1% Operating expenses $930 million ± $25 million $55 million B $875 million ± $25 million Interest (income) expense, net $27 mi
Slide 28: March 31, 2021
28 March 31, 2021