Slide 1: Financial Results FQ4 2022
Financial Results FQ4 2022 © 2022 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 an
Slide 3: Sanjay Mehrotra, President and CEO
3 Sanjay Mehrotra President and CEO September 29, 2022
Slide 4: Highlights
4 Highlights FY-22 ▪ Delivered record annual revenue in fiscal year 2022 with solid profitability and free cash flow despite a challenging environment in the latter part of the year ▪ Ramped industry-leading 1-alpha DRAM and 176-layer NAND nodes across our portfolio; Returned a record amount of cash
Slide 5: Technology & Operations
5 Technology & Operations ▪ Industry-leading 1-alpha DRAM and 176-layer NAND nodes drove strong cost reductions in fiscal 2022 ▪ In fiscal Q4, we led the industry again in introducing our 232-layer NAND, becoming the first company to enter volume production on a node with more than 200 layers ▪ We a
Slide 6: Manufacturing in the U.S.
6 Manufacturing in the U.S. ▪ Earlier this month, we announced that we have chosen Boise as one of two leading- edge DRAM manufacturing fab sites that we are planning in the U.S., and we expect to invest approximately $15 billion at this site through the end of the decade ▪ The co-location of this n
Slide 7: End Market Highlights
7 End Market Highlights Data Center PC & Graphics Mobile & Intelligent Edge ▪ Data center revenue fell Q/Q and Y/Y, ▪ PC: client revenue fell Q/Q and Y/Y, ▪ Mobile: mobile revenue fell both Q/Q and driven primarily by declines in ASP driven by lower PC unit end-demand and Y/Y in fiscal Q4, though we
Slide 8: Industry Outlook
8 Industry Outlook ▪ CY 2022 industry bit demand growth for DRAM is now expected to be in the low-to-mid-single digit percentage range and for NAND, slightly higher than 10% CY-22 ▪ An unprecedented confluence of macro events and customer inventory adjustments are depressing demand for DRAM and NAND
Slide 9: Micron Supply Actions and Outlook
8 Micron Supply Actions and Outlook ▪ We made significant reductions to capex and now expect FY 2023 capex to be around $8 billion, down over 30% Y/Y; construction capex to more than double Y/Y to support demand for second half of decade Key ▪ Expect FY 2023 WFE capex to decline nearly 50% Y/Y and r
Slide 10: Mark Murphy, Chief Financial Officer
Mark Murphy Chief Financial Officer 9September 29, 2022
Slide 11: Revenue
11 Revenue FQ4-22 FY-22 $6.6B $30.8B Down 23% Q/Q and down 20% Y/Y Up 11% Y/Y September 29, 2022
Slide 12: DRAM
12 DRAM ▪ 72% of total revenue in FQ4-22 ▪ Revenue declined 23% Q/Q and down 21% Y/Y FQ4-22 ▪ Bit shipments decreased by roughly 10% Q/Q ▪ ASPs declined low-teens percentage range Q/Q ▪ 73% of total revenue in FY-22 FY-22 ▪ Revenue increased 12% Y/Y September 29, 2022
Slide 13: NAND
13 NAND ▪ 25% of total revenue in FQ4-22 ▪ Revenue declined 26% Q/Q and down 14% Y/Y FQ4-22 ▪ Bit shipments declined in the low-20s percentage range Q/Q ▪ ASPs declined in the mid-to-high-single-digit percentage range Q/Q ▪ 25% of total revenue in FY-22 FY-22 ▪ Revenue up 11% Y/Y September 29, 2022
Slide 14: Revenue by Business Unit
14 Revenue by Business Unit Amounts in millions FQ4-22 FQ3-22 Q/Q % FQ4-21 Y/Y % FY-22 FY-21 Y/Y % Change Change Change Compute and Networking (CNBU) $2,931 $3,895 (25)% $3,794 (23)% $13,693 $12,280 12% Mobile (MBU) $1,511 $1,967 (23)% $1,892 (20)% $7,260 $7,203 1% Storage (SBU) $ 891 $1,341 (34)% $
Slide 15: Non-GAAP Operating Results
15 Non-GAAP Operating Results FQ4-22 FY-22 Revenue $6.6B $30.8B Gross Margin 40.3% 45.9% Operating Expenses $1.0B $3.8B Operating Income $1.7B $10.3B Net Income $1.6B $9.5B Diluted EPS $1.45 $8.35 Adjusted EBITDA $3.6B $17.4B Cash from Operations (GAAP) $3.8B $15.2B September 29, 2022
Slide 16: Cash Flow and Capital Allocation
16 Cash Flow Cash Flow from Operations ▪ FQ4-22: $3.8B (57% of revenue) ▪ FY-22: $15.2B and Capital Net CapEx1 ▪ FY-22: CapEx of $12B ▪ FY-23: CapEx guidance of around $8B Allocation FCF* ▪ FY-23: Expect WFE Capex down ~50% Y/Y ▪ FQ4-22: $196M From FY-19 to FY-22, generated ▪ FY-22: $3.2B approximat
Slide 17: FQ1-23 Guidance
17 FQ1-23 Guidance Non-GAAP Revenue $4.25 billion ± $250 million Gross margin 26.0% ± 2.0% Operating expenses $1 billion ± $25 million Diluted EPS* $0.04 ± $0.10 *Based on ~1.12 billion diluted shares September 29, 2022
Slide 18: Other Key Data
18 Other Key Data September 29, 2022
Slide 19: Financial Summary
19 Financial Summary Non-GAAP Amounts in millions, except per share FQ4-22 % of FQ3-22 % of FQ4-21 % of Revenue Revenue Revenue Revenue $6,643 100% $8,642 100% $8,274 100% Gross margin 2,676 40% 4,097 47% 3,964 48% Operating income 1,662 25% 3,144 36% 3,073 37% Income tax (provision) benefit (74) (1
Slide 20: Financial Summary
20 Financial Summary Non-GAAP Amounts in millions, except per share FY-22 % of Revenue FY-21 % of Revenue Revenue $30,758 100% $27,705 100% Gross margin 14,113 46% 10,987 40% Operating income 10,281 33% 7,667 28% Income tax (provision) benefit (793) (694) Net income 9,475 31% 6,976 25% Diluted earni
Slide 21: Non-GAAP Financial Data and Guidance
21 Non-GAAP Financial Data and Guidance % of Revenue FQ4-22 FQ4-22 Non-GAAP FQ1-23 (amounts in millions, DRAM 72% Non-GAAP Guidance except per share) NAND 25% Revenue $ 6,643 $4.25 billion ± $250 million Gross margin 40.3% 26.0% ± 2.0% % Sales Volume Change FQ4-22 Q/Q Operating expenses $ 1,014 $1 b
Slide 22: Revenue by Technology
22 Revenue by Technology % of % of % of Amounts in millions FQ4-22 Revenue FQ3-22 Revenue FQ4-21 Revenue DRAM $4,809 72% $6,271 73% $6,091 74% NAND 1,688 25% 2,288 26% 1,971 24% Other 146 2% 83 1% 212 3% Total $6,643 100% $8,642 100% $8,274 100% Percentages of total revenue may not total 100% due to
Slide 23: Revenue by Technology
23 Revenue by Technology Amounts in millions FY-22 % of Revenue FY-21 % of Revenue DRAM $22,386 73% $20,039 72% NAND 7,811 25% 7,007 25% Other 561 2% 659 2% Total $30,758 100% $27,705 100% Percentages of total revenue may not total 100% due to rounding. September 29, 2022
Slide 24: Non-GAAP Reconciliations
24 Non-GAAP Reconciliations September 29, 2022
Slide 25: Consolidated Results
25 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ4-22 FQ3-22 FQ4-21 GAAP gross margin $ 2,622 $ 4,035 $ 3,912 Stock-based compensation 49 57 43 Other 5 5 9 Non-GAAP gross margin $ 2,676 $ 4,097 $ 3,964 GAAP operating expenses $ 1,101 $ 1,031 $ 957 Stock-based compensation (82)
Slide 26: Consolidated Results
26 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ4-22 FQ3-22 FQ4-21 GAAP cost of goods sold $ 4,021 $ 4,607 $ 4,362 Stock-based compensation (49) (57) (43) Other (5) (5) (9) Non-GAAP cost of goods sold $ 3,967 $ 4,545 $ 4,310 GAAP research and development $ 839 $ 773 $ 705 Stoc
Slide 27: Consolidated Results
27 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ4-22 FQ3-22 FQ4-21 GAAP net income $ 1,492 $ 2,626 $ 2,720 Stock-based compensation 131 135 93 Restructure and asset impairments 5 — 22 Amortization of debt discount 6 8 8 Other 5 5 3 Impact of Idaho income tax reform — 189 — Est
Slide 28: Consolidated Results
28 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ4-22 FQ3-22 FQ4-21 GAAP shares used in diluted EPS calculations 1,106 1,121 1,138 Adjustment for stock-based compensation 15 15 9 Non-GAAP shares used in diluted EPS calculations 1,121 1,136 1,147 GAAP diluted earnings per share
Slide 29: Consolidated Results
29 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ4-22 FQ3-22 FQ4-21 Net cash provided by operating activities $ 3,777 $ 3,838 $ 3,884 Expenditures for property, plant, and equipment (3,613) (2,578) (2,015) Proceeds from sales of property, plant, and equipment 30 39 4 Payments o
Slide 30: Consolidated Results
30 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-22 FY-21 GAAP gross margin $ 13,898 $ 10,423 Stock-based compensation 193 186 Inventory accounting policy change to FIFO — 133 Change in inventory cost absorption — 160 3D XPoint inventory write-down — 49 Other 22 36 Non-GAAP gr
Slide 31: Consolidated Results
31 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-22 FY-21 GAAP operating income $ 9,702 $ 6,283 Stock-based compensation 501 395 Inventory accounting policy change to FIFO — 133 Change in inventory cost absorption — 160 3D XPoint inventory write-down — 49 Restructure and asset
Slide 32: Consolidated Results
32 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-22 FY-21 GAAP cost of goods sold $ 16,860 $ 17,282 Stock-based compensation (193) (186) Inventory accounting policy change to FIFO — (133) Change in inventory cost absorption — (160) 3D XPoint inventory write-down — (49) Other (
Slide 33: Consolidated Results
33 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-22 FY-21 GAAP net income $ 8,687 $ 5,861 Stock-based compensation 501 395 Inventory accounting policy change to FIFO — 133 Change in inventory cost absorption — 160 3D XPoint inventory write-down — 49 Restructure and asset impai
Slide 34: Consolidated Results
34 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-22 FY-21 GAAP shares used in diluted EPS calculations 1,122 1,141 Adjustment for stock-based compensation 13 10 Non-GAAP shares used in diluted EPS calculations 1,135 1,151 GAAP diluted earnings per share $ 7.75 $ 5.14 Effects o
Slide 35: Consolidated Results
35 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-22 FY-21 Cash and short-term investments $ 9,331 $ 8,633 Current and noncurrent restricted cash 77 66 Long-term marketable investments 1,647 1,765 Current and long-term debt (6,906) (6,776) Net cash $ 4,149 $ 3,688 September 29,
Slide 36: Consolidated Results
36 Consolidated Results Non-GAAP Reconciliations Amounts in millions FY-19 FY-20 Net cash provided by operating activities $ 13,189 $ 8,306 Expenditures for property, plant, and equipment (9,780) (8,223) Proceeds from sales of property, plant, and equipment 146 69 Payments on equipment purchase cont
Slide 37: FQ1-23 Guidance
37 FQ1-23 Guidance Non-GAAP Reconciliations GAAP Adjustments Non-GAAP Revenue $4.25 billion ± $250 million — $4.25 billion ± $250 million Gross margin 25.0% ± 2% 1% A 26.0% ± 2% Operating expenses $1.09 billion ± $25 million $91 million B $1.00 billion ± $25 million Diluted EPS* ($0.09) ± $0.10 $0.1
Slide 38: Micron
Micron