Slide 1: Financial Results FQ3 2022
Financial Results FQ3 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 June 30, 2022
Slide 4: Highlights
4 Highlights ▪ Delivered record quarterly revenue with strong profitability and free cash flow; achieved revenue records in the auto, industrial, and networking markets, and in SSDs for both data center and client ▪ NAND business delivered record quarterly revenue, and Embedded Business Unit and Sto
Slide 5: Technology
5 Technology ▪ Leading the industry in both DRAM and NAND technology and well-poised to continue this lead into CY23 ▪ 1-alpha node ramp is several quarters ahead of the industry and in FQ3, 1-alpha represented the largest DRAM node in our shipment mix ▪ Our newest DRAM node, 1-beta, is on track to
Slide 6: Operations
6 Operations ▪ Across the industry, there are cost challenges stemming from supply chain and inflationary pressures ▪ Continue to expect our cost reductions to outpace those of the industry this year, driven by excellent productivity improvements in our fabs and the well-executed ramp of our world-c
Slide 7: End Market Highlights
7 End Market Highlights Data Center PC & Graphics Mobile & Intelligent Edge ▪ Data center FQ3 revenue grew by double ▪ PC: Achieved client revenue growth in the ▪ Mobile: FQ3 mobile revenue declined digit percentage Q/Q and well over mid-teens percent range Q/Q in FQ3 driven slightly Y/Y but grew Q/
Slide 8: Outlook
8 Outlook ▪ Expectations for CY22 industry bit demand growth have moderated since our last earnings call ▪ Near the end of fiscal Q3, we saw a significant reduction in near-term industry bit demand, primarily attributable to end demand weakness in consumer markets, including PC and smartphone Indust
Slide 9: Mark Murphy, Chief Financial Officer
9 Mark Murphy Chief Financial Officer June 30, 2022
Slide 10: FQ3-22 Revenue $8.6B
10 FQ3-22 Revenue $8.6B Revenue up 11% Q/Q and up 16% Y/Y June 30, 2022
Slide 11: Performance by Technology
11 Performance by Technology ▪ 73% of total revenue in FQ3-22 ▪ Revenue up 10% Q/Q and up 15% Y/Y DRAM ▪ Bit shipments increased by slightly over 10% Q/Q ▪ ASPs declined slightly Q/Q ▪ 26% of total revenue in FQ3-22 ▪ Revenue up 17% Q/Q and up 26% Y/Y NAND ▪ Bit shipments increased in the high-teens
Slide 12: Revenue by Business Unit
12 Revenue by Business Unit FQ3-22 FQ2-22 Q/Q % Change FQ3-21 Y/Y % Change Amounts in millions Compute and Networking (CNBU) $3,895 $3,461 13% $3,304 18% Mobile (MBU) $1,967 $1,875 5% $1,999 (2)% Storage (SBU) $1,341 $1,171 15% $1,009 33% Embedded (EBU) $1,435 $1,277 12% $1,105 30% June 30, 2022
Slide 13: Non-GAAP Operating Results
13 FQ3-22 Non-GAAP Operating Results Revenue: $8.6 billion Gross Margin: 47.4% Operating Expenses: $953 million Operating Income: $3.1 billion Net Income: $2.9 billion Diluted EPS: $2.59 Adjusted EBITDA: $5.0 billion Cash from Operations (GAAP): $3.8 billion See non-GAAP reconciliations June 30, 202
Slide 14: Cash Flow and Capital Allocation
14 Cash Flow Cash Flow from Operations ▪ ▪ FQ3-22: $3.8B (44% of revenue) FQ3-22: CapEx of $2.5B and Capital Net CapEx1 ▪ FY-22: CapEx guidance of ~$12B Allocation FCF* Buybacks ▪ ▪ FQ3-22: $1.3B FQ3-22: $981M (13.8M shares) From FY-19 to FQ3-22, generated approximately $10 billion of free Dividend
Slide 15: FQ4-22 Guidance
15 FQ4-22 Guidance Non-GAAP Revenue $7.2 billion ± $400 million Gross margin 42.5% ± 1.5% Operating expenses $1.05 billion ± $25 million Diluted EPS* $1.63 ± $0.20 *Based on ~1.13 billion diluted shares June 30, 2022
Slide 16: Other key data
16 Other key data June 30, 2022
Slide 17: Financial Summary
17 Financial Summary Non-GAAP Amounts in millions, except per share FQ3-22 % of FQ2-22 % of FQ3-21 % of Revenue Revenue Revenue Revenue $8,642 100% $7,786 100% $7,422 100% Gross margin 4,097 47% 3,724 48% 3,185 43% Operating income 3,144 36% 2,750 35% 2,364 32% Income tax (provision) benefit (193) (
Slide 18: Non-GAAP Financial Data and Guidance
18 Non-GAAP Financial Data and Guidance % of Revenue FQ3-22 FQ3-22 Non-GAAP FQ4-22 (amounts in millions, DRAM 73% Non-GAAP Guidance except per share) NAND 26% Revenue $ 8,642 $7.2 billion ± $400 million Gross margin 47.4% 42.5% ± 1.5% % Sales Volume Change FQ3-22 Q/Q Operating expenses $ 953 $1.05 b
Slide 19: Revenue by Technology
19 Revenue by Technology % of % of % of Amounts in millions FQ3-22 Revenue FQ2-22 Revenue FQ3-21 Revenue DRAM $6,271 73% $5,719 73% $5,448 73% NAND 2,288 26% 1,957 25% 1,812 24% Other 83 1% 110 1% 162 2% Total $8,642 100% $7,786 100% $7,422 100% Percentages of total revenue may not total 100% due to
Slide 20: Non-GAAP Reconciliations
20 Non-GAAP Reconciliations June 30, 2022
Slide 21: Consolidated Results
21 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-22 FQ2-22 FQ3-21 GAAP gross margin $ 4,035 $ 3,676 $ 3,126 Stock-based compensation 57 44 45 Other 5 4 14 Non-GAAP gross margin $ 4,097 $ 3,724 $ 3,185 GAAP operating expenses $ 1,031 $ 1,130 $ 1,327 Stock-based compensation (7
Slide 22: Consolidated Results
22 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-22 FQ2-22 FQ3-21 GAAP cost of goods sold $ 4,607 $ 4,110 $ 4,296 Stock-based compensation (57) (44) (45) Other (5) (4) (14) Non-GAAP cost of goods sold $ 4,545 $ 4,062 $ 4,237 GAAP research and development $ 773 $ 792 $ 670 Sto
Slide 23: Consolidated Results
23 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-22 FQ2-22 FQ3-21 GAAP net income $ 2,626 $ 2,263 $ 1,735 Stock-based compensation 135 119 98 Restructure and asset impairments — 5 453 Amortization of debt discount and other costs 8 8 7 Other 5 80 15 Impact of Idaho income tax
Slide 24: Consolidated Results
24 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-22 FQ2-22 FQ3-21 GAAP shares used in diluted EPS calculations 1,121 1,130 1,145 Adjustment for stock-based compensation 15 13 9 Non-GAAP shares used in diluted EPS calculations 1,136 1,143 1,154 GAAP diluted earnings per share
Slide 25: Consolidated Results
25 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-22 FQ2-22 FQ3-21 Net cash provided by operating activities $ 3,838 $ 3,628 $ 3,560 Expenditures for property, plant, and equipment (2,578) (2,611) (2,259) Proceeds from sales of property, plant, and equipment 39 27 74 Payments
Slide 26: FQ4-22 Guidance
26 FQ4-22 Guidance Non-GAAP Reconciliations GAAP Adjustments Non-GAAP Revenue $7.2 billion ± $400 million — $7.2 billion ± $400 million Gross margin 41.5% ± 1.5% 1% A 42.5% ± 1.5% Operating expenses $1.13 billion ± $25 million $83 million B $1.05 billion ± $25 million Diluted EPS* $1.52 ± $0.20 $0.1
Slide 27: Micron
Micron