Slide 1: Financial Results FQ1 2021
Financial Results FQ1 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 January 7, 2021
Slide 4: Highlights
4 Highlights ▪ Delivered strong revenue and earnings in FQ1 ▪ Began shipping industry's most advanced NAND with 176 layers ▪ Good progress on 1-alpha DRAM node, on track to begin volume production in 1H-CY21 ▪ We believe DRAM is past the bottom of the industry cycle and expect improving trends throu
Slide 5: Operations
5 Operations ▪ In early December, two separate events affected our Taiwan DRAM operations ⎼ A power outage at our Taoyuan facility on December 3 ⎼ A 6.7-magnitude earthquake off the northeast coast of Taiwan on December 10, felt at both our Taoyuan and Taichung locations ▪ Investments made over the
Slide 6: Strong Technology and Roadmap Execution
6 DRAM NAND Strong Technology and Roadmap ▪ Making good progress on our 1-alpha node which remains on track for ▪ Began volume production of the industry’s most advanced 176- Execution introduction in 1H-CY21 layer NAND Solid progress toward our goals: ▪ 1-alpha will deliver a 40% improvement ▪ It f
Slide 7: End Market Highlights
7 End Market Highlights Data Center Mobile PCs Graphics & Auto ▪ Memory and storage becoming an ▪ FQ1 mobile revenue was up Q/Q, ▪ WFH trend driving strong notebook Graphics: increasing portion of server BOM driven by solid execution and demand despite pockets of non- ▪ Strong growth in GDDR6/6x dri
Slide 8: Industry Outlook
8 Industry Outlook ▪ CY-20 industry bit demand growth slightly above 20% DRAM ▪ CY-21 industry bit demand growth in high-teens percentage range with DRAM industry supply to be below demand ▪ Long-term bit demand growth CAGR of mid-to-high teens ▪ CY-20 industry bit demand growth in mid-20% range ▪ C
Slide 9: Micron Outlook
9 Micron Outlook ▪ CY-21 bit supply growth expected to be below industry demand growth DRAM ▪ Long-term Micron bit supply growth CAGR in line with industry demand ▪ FY-21 cost reductions expected to be in the mid-single-digit percentage range, with somewhat higher levels of cost reductions on a like
Slide 10: Dave Zinsner, Chief Financial Officer
10 Dave Zinsner Chief Financial Officer January 7, 2021
Slide 11: FQ1-21 Revenue $5.8B
11 FQ1-21 Revenue $5.8B Revenue down 5% Q/Q and up 12% Y/Y January 7, 2021
Slide 12: Performance by Technology
12 Performance by Technology ▪ 70% of total revenue in FQ1-21 ▪ Revenue down 7% Q/Q and up 17% Y/Y DRAM ▪ Bit shipments down low-single-digit percent range Q/Q ▪ ASPs down mid-single-digit percent range Q/Q ▪ 27% of total revenue in FQ1-21 ▪ Revenue up 3% Q/Q and up 11% Y/Y NAND ▪ Bit shipments up h
Slide 13: Revenue by Business Unit
13 Revenue by Business Unit FQ1-21 FQ4-20 Q/Q % Change FQ1-20 Y/Y % Change Amounts in millions Compute and Networking (CNBU) $2,546 $3,020 (16)% $1,979 29% Mobile (MBU) $1,501 $1,462 3% $1,457 3% Storage (SBU) $911 $913 0% $968 (6)% Embedded (EBU) $809 $654 24% $734 10% January 7, 2021
Slide 14: Non-GAAP Operating Results
14 FQ1-21 Non-GAAP Operating Results Revenue: $5.8 billion Gross Margin: 30.9% Operating Expenses: $811 million Operating Income: $973 million Net Income: $897 million Diluted EPS: $0.78 Cash from Operations (GAAP): $2.0 billion January 7, 2021
Slide 15: Capital Allocation
15 Capital Allocation $2.8B total share repurchases in FY-21 CapEx of ~$9B FY19 and FY20 Cash Net Return CapEx1 1 Cash3- $1.7B of net cash at end Liquidity2 2 $10.9B in liquidity at end of FQ1-21 Debt 3 of FQ1-21 1Capex net of amounts funded by partners and proceeds from sales of property, plant, an
Slide 16: FQ2-21 Guidance
16 FQ2-21 Guidance Non-GAAP Revenue $5.8 billion ± $200 million Gross margin 31% ± 1% Operating expenses $825 million ± $25 million Interest (income) expense, net $35 million Diluted EPS* $0.75 ± $0.07 *Based on ~1.15 billion diluted shares January 7, 2021
Slide 17: Other Key Data
17 Other Key Data January 7, 2021
Slide 18: Financial Summary
18 Financial Summary Non-GAAP Amounts in millions, except per share FQ1-21 % of FQ4-20 % of FQ1-20 % of Revenue Revenue Revenue Revenue $5,773 100% $6,056 100% $5,144 100% Gross margin 1,784 31% 2,111 35% 1,405 27% Operating income 973 17% 1,302 21% 594 12% Income tax (provision) benefit (71) (46) (
Slide 19: Non-GAAP Financial Data and Guidance
19 Non-GAAP Financial Data and Guidance % of Revenue FQ1-21 FQ1-21 Non-GAAP FQ2-21 (amounts in millions, DRAM 70% Non-GAAP Guidance except per share) NAND 27% Revenue $ 5,773 $5.8 billion ± $200 million Gross margin 30.9% 31% ± 1% % Sales Volume Change FQ1-21 Q/Q Operating expenses $ 811 $825 millio
Slide 20: Revenue by Technology
20 Revenue by Technology % of % of % of Amounts in millions FQ1-21 Revenue FQ4-20 FQ1-20 Revenue Revenue DRAM $4,056 70% $4,371 72% $3,469 67% NAND 1,574 27% 1,530 25% 1,422 28% Other 143 2% 155 3% 253 5% Total $5,773 100% $6,056 100% $5,144 100% Revenue for MCPs and SSDs, which contain both DRAM an
Slide 21: Non-GAAP Reconciliations
21 Non-GAAP Reconciliations January 7, 2021
Slide 22: Consolidated Results
22 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-21 FQ4-20 FQ1-20 GAAP gross margin $ 1,736 $ 2,068 $ 1,366 Stock-based compensation 41 37 31 Other 7 6 8 Non-GAAP gross margin $ 1,784 $ 2,111 $ 1,405 GAAP operating expenses $ 870 $ 911 $ 848 Stock-based compensation (51) (52)
Slide 23: Consolidated Results
23 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-21 FQ4-20 FQ1-20 GAAP net income attributable to Micron $ 803 $ 988 $ 491 Stock-based compensation 92 89 72 Restructure and asset impairments 8 50 (4) Amortization of debt discount and other costs 7 6 10 (Gain) loss on debt rep
Slide 24: Consolidated Results
24 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-21 FQ4-20 FQ1-20 GAAP cost of goods sold $ 4,037 $ 3,988 $ 3,778 Stock-based compensation (41) (37) (31) Other (7) (6) (8) Non-GAAP cost of goods sold $ 3,989 $ 3,945 $ 3, 739 GAAP selling, general and administrative $ 214 $ 23
Slide 25: Consolidated Results
25 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-21 FQ4-20 FQ1-20 GAAP shares used in diluted EPS calculations 1,135 1,131 1,129 Adjustment for stock-based compensation and capped calls 11 11 9 Non-GAAP shares used in diluted EPS calculations 1,146 1,142 1,138 GAAP diluted ea
Slide 26: Consolidated Results
26 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-21 FQ4-20 FQ1-20 Net cash provided by operating activities $ 1,967 $ 2,271 $ 2,011 Investments in capital expenditures, net Expenditures for property, plant, and equipment, net* (2,726) (2,268) (1,936) Payments on equipment pur
Slide 27: FQ2-21 Guidance
27 FQ2-21 Guidance Non-GAAP Reconciliations GAAP Adjustments Non-GAAP Revenue $5.8 billion ± $200 million — $5.8 billion ± $200 million Gross margin 25% ± 1% 6% A 31% ± 1% Operating expenses $882 million ± $25 million $57 million B $825 million ± $25 million Interest (income) expense, net $37 millio
Slide 28: January 7, 2021
28 January 7, 2021