Slide 1: Financial results FQ4 2023
Financial results FQ4 2023 d4icron
Slide 2: Safe harbor statement
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, and
Slide 3: Sanjay Mehrotra, President and CEO
Sanjay Mehrotra President and CEO September 27, 2023 3
Slide 4: Overview
Overview • In fiscal Q4, Micron delivered revenue and gross margin • Ongoing demand growth, customer inventory above the midpoint of our guidance, with EPS above the normalization, and industry-wide supply reductions have high end of the range. set the stage for increased revenue, along with improve
Slide 5: Fiscal year 2023 highlights
Fiscal year 2023 highlights • Achieved record automotive revenue, record NAND QLC bit shipments for the full fiscal year, and reached record levels in CQ2 for revenue share in data center and client SSDs. • First in our industry to introduce 1-beta DDR5 and LP5X DRAM products, and the first to ship
Slide 6: Technology and production; End markets overview
Technology and production End markets overview • Our industry-leading technology roadmap continues to • Customers continued to reduce their excess inventory for progress well. memory and storage in fiscal Q4. • Vast majority of our bits are on leading edge nodes 1- • Most customer inventories for me
Slide 7: End market highlights
End market highlights Data center • Traditional server demand remains lackluster while demand for AI servers • DDR5: We expect Micron D5 volume to cross over D4 in early calendar has been strong. Total server unit shipments are expected to decline in 2024, ahead of the industry. We expanded our high
Slide 8: End market highlights
End market highlights PC Mobile and intelligent edge • PC: Continue to forecast calendar 2023 PC unit volume to decline by a low • Mobile: Expect calendar 2023 smartphone unit volume to be down by a double-digit percentage year over year and then grow by low to mid single mid-single digit percentage
Slide 9: CAC decision
CAC decision • As previously discussed, the CAC (or Cybersecurity Administration of China) decision earlier this year has impacted our business, particularly in the domestic data center and networking markets in China. • We remain committed to serving our customers in China for those areas of their
Slide 10: Outlook and Capex Plan
Outlook and Capex Plan • Expect CY23 DRAM bit demand to grow in the mid-single digit % range. In NAND, our Capex Plan: expectations increased from high-single digits to high teens % demand growth Y/Y. These are below the expected long-term bit demand growth CAGRs of mid-teens in DRAM and • FY24 cape
Slide 11: Mark Murphy, Chief Financial Officer
Mark Murphy Chief Financial Officer September 27, 2023 11
Slide 12: FQ4-23 revenue; FY23 revenue
FQ4-23 revenue FY23 revenue Revenue up 7% Q/Q Revenue down 49% Y/Y and down 40% Y/Y September 27, 2023 12
Slide 13: Performance by technology
Performance by technology DRAM FQ4-23 NAND FQ4-23 • $2.8 billion, representing 69% of total revenue in FQ4-23 • $1.2 billion, representing 30% of total revenue in FQ4-23 • Revenue increased 3% Q/Q • Revenue increased 19% Q/Q • Bit shipments increased in the mid-teens percentage • Bit shipments incre
Slide 14: Revenue by business unit
Revenue by business unit Q/Q % Y/Y % Y/Y % Amounts in millions FQ4-23 FQ3-23 FQ4-22 FY-23 FY-22 Change Change Change Compute and Networking (CNBU) $1,200 $1,389 (14%) $2,931 (59%) $5,710 $13,693 (58%) Mobile (MBU) $1,211 $ 819 48% $1,511 (20%) $3,630 $7,260 (50%) Embedded (EBU) $ 860 $ 912 (6%) $1,3
Slide 15: Non-GAAP operating results
Non-GAAP operating results FQ4-23 FY-23 Revenue $4.0B $15.5B Gross margin (9%) (8%) Operating expenses $842M $3.6B Operating income (loss) ($1.2B) ($4.8B) Net income (loss) ($1.2B) ($4.9B) Diluted earnings (loss) per share ($1.07) ($4.45) Cash provided by operating activities (GAAP) $249M $1.6B See
Slide 16: Cash flow and capital allocation
Cash flow and capital allocation From FY-20 to FY-23: Cash flow FQ4-23: $249M from operations FY-23: $1.6B (10% of revenue) • $4.2 billion towards repurchasing 63 million shares FY-23: CapEx of $7B Net CapEx1 • ~$300 million toward settling convert premiums FY-24: CapEx guidance of slightly above $7
Slide 17: FQ1-24 guidance
FQ1-24 guidance Non-GAAP Revenue $4.40 billion ± $200 million Gross margin (4.0%) ± 2.0% Operating expenses $900 million ± $15 million Diluted earnings (loss) per share* ($1.07) ± $0.07 *Based on ~1.10 billion diluted shares See non-GAAP reconciliations September 27, 2023 17
Slide 18: Other key data
Other key data September 27, 2023 18
Slide 19: Financial summary Non-GAAP
Financial summary Non-GAAP Amounts in millions, except per share FQ4-23 % of FQ3-23 % of FQ4-22 % of Revenue Revenue Revenue Revenue $4,010 100% $3,752 100% $6,643 100% Gross margin (366) (9%) (603) (16%) 2,676 40% Operating income (loss) (1,208) (30%) (1,469) (39%) 1,662 25% Income tax (provision)
Slide 20: Financial summary Non-GAAP
Financial summary Non-GAAP Amounts in millions, except per share FY-23 % of Revenue FY-22 % of Revenue Revenue $15,540 100% $30,758 100% Gross margin (1,196) (8%) 14,113 46% Operating income (loss) (4,819) (31%) 10,281 33% Income tax (provision) benefit (142) (793) Net income (loss) (4,862) (31%) 9,
Slide 21: Non-GAAP financial data and guidance
Non-GAAP financial data and guidance % of Revenue FQ4-23 FQ4-23 Non-GAAP FQ1-24 (amounts in millions, DRAM 69% Non-GAAP Guidance except per share) NAND 30% Revenue $ 4,010 $4.40 billion ± $200 million Gross margin (9%) (4.0%) ± 2.0% % Sales Volume Change FQ4-23 Q/Q Operating expenses $ 842 $900 mill
Slide 22: Revenue by technology
Revenue by technology % of % of % of Amounts in millions FQ4-23 Revenue FQ3-23 Revenue FQ4-22 Revenue DRAM $ 2,755 69% $ 2,672 71% $ 4,809 72% NAND 1,205 30% 1,013 27% 1,688 25% Other 50 1% 67 2% 146 2% Total $ 4,010 100% $ 3,752 100% $ 6,643 100% Percentages of total revenue may not total 100% due
Slide 23: Revenue by technology
Revenue by technology Amounts in millions FY-23 % of Revenue FY-22 % of Revenue DRAM $ 10,978 71% $ 22,386 73% NAND 4,206 27% 7,811 25% Other 356 2% 561 2% Total $ 15,540 100% $ 30,758 100% Percentages of total revenue may not total 100% due to rounding. September 27, 2023 23
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations September 27, 2023 24
Slide 25: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ4-23 FQ3-23 FQ4-22 GAAP gross margin $ (435) $ (668) $ 2,622 Stock-based compensation 64 60 49 Other 5 5 5 Non-GAAP gross margin $ (366) $ (603) $ 2,676 GAAP operating expenses $ 1,037 $ 1,093 $ 1,101 Stock-based compensation (87) (
Slide 26: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ4-23 FQ3-23 FQ4-22 GAAP cost of goods sold $ 4,445 $ 4,420 $ 4,021 Stock-based compensation (64) (60) (49) Other (5) (5) (5) Non-GAAP cost of goods sold $ 4,376 $ 4,355 $ 3,967 GAAP research and development $ 719 $ 758 $ 839 Stock-b
Slide 27: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ4-23 FQ3-23 FQ4-22 GAAP net income (loss) $ (1,430) $ (1,896) $ 1,492 Stock-based compensation 151 151 131 Restructure and asset impairments 4 68 5 Goodwill impairment 101 — — Litigation settlement — 68 — Other 7 7 11 Estimated tax
Slide 28: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions, except per share FQ4-23 FQ3-23 FQ4-22 GAAP shares used in diluted EPS calculations 1,095 1,094 1,106 Adjustment for stock-based compensation — — 15 Non-GAAP shares used in diluted EPS calculations 1,095 1,094 1,121 GAAP diluted earni
Slide 29: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FY-23 FY-22 GAAP gross margin $ (1,416) $ 13,898 Stock-based compensation 201 193 Other 19 22 Non-GAAP gross margin $ (1,196) $ 14,113 GAAP operating expenses $ 4,329 $ 4,196 Stock-based compensation (363) (308) Restructure and asset
Slide 30: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FY-23 FY-22 GAAP cost of goods sold $ 16,956 $ 16,860 Stock-based compensation (201) (193) Other (19) (22) Non-GAAP cost of goods sold $ 16,736 $ 16,645 GAAP research and development $ 3,114 $ 3,116 Stock-based compensation (226) (175
Slide 31: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FY-23 FY-22 GAAP net income (loss) $ (5,833) $ 8,687 Stock-based compensation 564 501 Restructure and asset impairments 171 48 Goodwill impairment 101 — Litigation settlement 68 — Loss on debt repurchases and conversions — 83 Other 32
Slide 32: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions, except per share FY-23 FY-22 GAAP shares used in diluted EPS calculations 1,093 1,122 Adjustment for stock-based compensation — 13 Non-GAAP shares used in diluted EPS calculations 1,093 1,135 GAAP diluted earnings (loss) per share $
Slide 33: FQ1-24 guidance Non-GAAP reconciliations
FQ1-24 guidance Non-GAAP reconciliations GAAP Adjustments Non-GAAP Revenue $4.40 billion ± $200 million — $4.40 billion ± $200 million Gross margin (6.0%) ± 2.0% 2.0% A (4.0%) ± 2.0% Operating expenses $1.01 billion ± $15 million $113 million B $900 million ± $15 million Diluted earnings (loss) per
Slide 34: on an “AS IS” basis without warranties of any kind. Statements regarding products, including
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