Slide 1: Financial Results FQ1 2023
Financial Results FQ1 2023 © 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 December 21, 2022
Slide 4: Overview
4 Overview ▪ Delivered fiscal first quarter revenue and EPS within guidance range despite a pricing environment which deteriorated significantly from prior earnings call. ▪ Micron exercising supply discipline by making significant cuts to capex and wafer starts while maintaining its competitive posi
Slide 5: End Market Highlights
5 End Market Highlights Data Center PC & Graphics Mobile & Intelligent Edge ▪ Expect cloud demand in 2023 to grow ▪ PC: forecast CY22 units to decline in the high ▪ Mobile: expect CY22 smartphone unit volume well below historical trend, due to the teens percentage and expect 2023 PC unit to decline
Slide 6: Industry Outlook
6 Industry Outlook ▪ Expect CY22 industry bit demand growth in the low to mid-single digit percentage range for both DRAM and NAND. For CY23, expect industry demand growth of ~10% in DRAM and ~20% in NAND. ▪ Near term, over next few months, expect gradually improving demand trends for memory as cust
Slide 7: Micron's Actions and Outlook
7 Micron’s Actions and Outlook 1) Reducing capex: FY23 capex lowered to a range between $7.0B to $7.5B. Expect Resulting Outlook: FY23 WFE to be down more than 50% Y/Y. Significantly reducing FY24 capex from Expect Micron’s CY23 earlier plans to align with the supply-demand environment. Expect FY24
Slide 8: Mark Murphy, Chief Financial Officer
8 Mark Murphy Chief Financial Officer December 21, 2022
Slide 9: FQ1-23 Revenue $4.1B
9 FQ1-23 Revenue $4.1B Revenue down 39% Q/Q and down 47% Y/Y December 21, 2022
Slide 10: Performance by Technology
10 Performance by Technology ▪ 69% of total revenue in FQ1-23 ▪ Revenue down 41% Q/Q and down 49% Y/Y DRAM ▪ Bit shipments declined in the mid-20 percent range Q/Q ▪ ASPs declined in the low-20 percent range Q/Q ▪ 27% of total revenue in FQ1-23 ▪ Revenue down 35% Q/Q and down 41% Y/Y NAND ▪ Bit ship
Slide 11: Revenue by Business Unit
11 Revenue by Business Unit FQ1-23 FQ4-22 Q/Q % Change FQ1-22 Y/Y % Change Amounts in millions Compute and Networking (CNBU) $1,746 $2,931 -40% $3,406 -49% Embedded (EBU) $1,000 $1,303 -23% $1,220 -18% Storage (SBU) $ 680 $ 891 -24% $1,150 -41% Mobile (MBU) $ 655 $1,511 -57% $1,907 -66% December 21,
Slide 12: Non-GAAP Operating Results
12 FQ1-23 Non-GAAP Operating Results Revenue: $4.1 billion Gross margin: 22.9% Operating expenses: $999 million Operating income (loss): ($65) million Net income (loss): ($39) million Diluted earnings (loss) per share: ($0.04) Adjusted EBITDA: $1.8 billion Cash from operations (GAAP): $943 million S
Slide 13: Cash Flow and Capital Allocation
13 Cash flow from Cash Flow operations ▪ ▪ FQ1-23: $943M (23% of revenue) FQ1-23: CapEx of $2.5B and Capital Net CapEx1 FCF* ▪ FY-23: CapEx guidance of $7.0B to $7.5B Allocation Buybacks ▪ ▪ FQ1-23: Negative $1.5B FQ1-23: $425M (8.6M shares) From FY-20 to FQ1-23: Dividend payment of $0.115 per share
Slide 14: FQ2-23 Guidance
14 FQ2-23 Guidance Non-GAAP Revenue $3.8 billion ± $200 million Gross margin 8.5% ± 2.5% Operating expenses $945 million ± $15 million Diluted earnings (loss) per share* ($0.62) ± $0.10 *Based on ~1.09 billion diluted shares December 21, 2022
Slide 15: Other key data
15 Other key data December 21, 2022
Slide 16: Financial Summary
16 Financial Summary Non-GAAP Amounts in millions, except per share FQ1-23 % of FQ4-22 % of FQ1-22 % of Revenue Revenue Revenue Revenue $4,085 100% $6,643 100% $7,687 100% Gross margin 934 23% 2,676 40% 3,616 47% Operating income (loss) (65) -2% 1,662 25% 2,725 35% Income tax (provision) benefit (1)
Slide 17: Non-GAAP Financial Data and Guidance
17 Non-GAAP Financial Data and Guidance % of Revenue FQ1-23 FQ1-23 Non-GAAP FQ2-23 (amounts in millions, DRAM 69% Non-GAAP Guidance except per share) NAND 27% Revenue $ 4,085 $3.8 billion ± $200 million Gross margin 22.9% 8.5% ± 2.5% % Sales Volume Change FQ1-23 Q/Q Operating expenses $ 999 $945 mil
Slide 18: Revenue by Technology
18 Revenue by Technology % of % of % of Amounts in millions FQ1-23 Revenue FQ4-22 Revenue FQ1-22 Revenue DRAM $ 2,829 69% $ 4,809 72% $ 5,587 73% NAND 1,103 27% 1,688 25% 1,878 24% Other 153 4% 146 2% 222 3% Total $ 4,085 100% $ 6,643 100% $ 7,687 100% Percentages of total revenue may not total 100%
Slide 19: Non-GAAP Reconciliations
19 Non-GAAP Reconciliations December 21, 2022
Slide 20: Consolidated Results
20 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-23 FQ4-22 FQ1-22 GAAP gross margin $ 893 $ 2,622 $ 3,565 Stock-based compensation 36 49 43 Other 5 5 8 Non-GAAP gross margin $ 934 $ 2,676 $ 3,616 GAAP operating expenses $ 1,102 $ 1,101 $ 934 Stock-based compensation (90) (82)
Slide 21: Consolidated Results
21 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-23 FQ4-22 FQ1-22 GAAP cost of goods sold $ 3,192 $ 4,021 $ 4,122 Stock-based compensation (36) (49) (43) Other (5) (5) (8) Non-GAAP cost of goods sold $ 3,151 $ 3,967 $ 4,071 GAAP research and development $ 849 $ 839 $ 712 Stoc
Slide 22: Consolidated Results
22 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-23 FQ4-22 FQ1-22 GAAP net income (loss) $ (195) $ 1,492 $ 2,306 Stock-based compensation 126 131 116 Restructure and asset impairments 13 5 38 Amortization of debt discount and other costs 5 6 9 (Gain) loss on debt repurchases
Slide 23: Consolidated Results
23 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-23 FQ4-22 FQ1-22 GAAP shares used in diluted EPS calculations 1,090 1,106 1,130 Adjustment for stock-based compensation - 15 11 Non-GAAP shares used in diluted EPS calculations 1,090 1,121 1,141 GAAP diluted earnings (loss) per
Slide 24: Consolidated Results
24 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ1-23 FQ4-22 FQ1-22 Net cash provided by operating activities $ 943 $ 3,777 $ 3,938 Expenditures for property, plant, and equipment (2,449) (3,613) (3,265) Proceeds from sales of property, plant, and equipment 23 30 21 Payments on
Slide 25: FQ2-23 Guidance
25 FQ2-23 Guidance Non-GAAP Reconciliations GAAP Adjustments Non-GAAP Revenue $3.8 billion ± $200 million — $3.8 billion ± $200 million Gross margin 7.5% ± 2.5% ~1% A 8.5% ± 2.5% Operating expenses $1.08 billion ± $15 million $137 million B $945 million ± $15 million Diluted earnings (loss) per shar
Slide 26: Micron
Micron