Slide 1: Financial Results FQ3 2021
Financial Results FQ3 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 June 30, 2021
Slide 4: Highlights
4 Highlights ▪ Strong execution enabled us to achieve the largest sequential EPS improvement in our history and set multiple revenue records • NAND hit record revenue, propelled by record mobile MCP, consumer SSD, and client SSD revenues • Our embedded business exceeded $1B for the first time, with
Slide 5: Operations
5 Operations ▪ Micron delivered record assembly output this quarter, which helped fuel our strong revenue performance ▪ Successfully mitigated the impacts of the drought in Taiwan with no reduction in our production output ▪ Due to the rise in COVID-19 cases, we temporarily reduced our on-site workf
Slide 6: Strong Technology and Roadmap Execution
6 Strong DRAM NAND Technology ▪ 1α DRAM accounted for a meaningful ▪ 176-layer NAND node accounted and Roadmap portion of our bit production in FQ3 and on track to become a meaningful for a meaningful portion of bit production in FQ3 and on track Execution ▪ portion of our revenue in FQ4 By end of C
Slide 7: End Market Highlights
7 End Market Highlights Data Center PC & Graphics Mobile & Intelligent Edge ▪ Memory and storage is becoming an ▪ PC: Industry expectations for CY21 PC ▪ Mobile: Achieved record MCP increasing portion of server BOM cost unit demand growth have increased to quarterly revenue ▪ We will enhance our NVM
Slide 8: Outlook
8 Outlook ▪ Expect CY-21 DRAM industry bit demand growth to be somewhat above 20%, with DRAM industry supply below demand; there is currently unmet demand for DRAM due to end market strength and we expect the DRAM market to remain tight into CY-22 Industry ▪ Expect CY-21 NAND industry bit demand gro
Slide 9: Dave Zinsner, Chief Financial Officer
9 Dave Zinsner Chief Financial Officer June 30, 2021
Slide 10: FQ3-21 Revenue $7.4B
10 FQ3-21 Revenue $7.4B Revenue up 19% Q/Q and up 36% Y/Y June 30, 2021
Slide 11: Performance by Technology
11 Performance by Technology ▪ 73% of total revenue in FQ3-21 ▪ Revenue up 23% Q/Q and up 52% Y/Y DRAM ▪ Bit shipments up low-single-digit percent range Q/Q ▪ ASPs up approximately 20% Q/Q ▪ 24% of total revenue in FQ3-21 ▪ Revenue up 10% Q/Q and up 9% Y/Y NAND ▪ Bit shipments up low-single-digit pe
Slide 12: Revenue by Business Unit
12 Revenue by Business Unit FQ3-21 FQ2-21 Q/Q % Change FQ3-20 Y/Y % Change Amounts in millions Compute and Networking (CNBU) $3,304 $2,636 25% $2,218 49% Mobile (MBU) $1,999 $1,811 10% $1,525 31% Storage (SBU) $1,009 $850 19% $1,014 0% Embedded (EBU) $1,105 $935 18% $675 64% June 30, 2021
Slide 13: Non-GAAP Operating Results
13 FQ3-21 Non-GAAP Operating Results Revenue: $7.4 billion Gross Margin: 42.9% Operating Expenses: $821 million Operating Income: $2.4 billion Net Income: $2.2 billion Diluted EPS: $1.88 Adjusted EBITDA: $4.0 billion Cash from Operations (GAAP): $3.6 billion June 30, 2021
Slide 14: Capital Allocation
14 Capital Allocation $3.0B total share repurchases FY-21: CapEx somewhat higher from FY19 through FQ3-21 Cash Net than $9.5B Return CapEx1 1 Cash3- $3.1B of net cash at end Liquidity2 2 $12.3B in liquidity at end of FQ3-21 Debt 3 of FQ3-21 1Capex net of amounts funded by partners and proceeds from
Slide 15: FQ4-21 Guidance
15 FQ4-21 Guidance Non-GAAP Revenue $8.2 billion ± $200 million Gross margin 47.0% ± 1% Operating expenses $900 million ± $25 million Diluted EPS* $2.30 ± $0.10 *Based on ~1.15 billion diluted shares June 30, 2021
Slide 16: Other Key Data
17 Other Key Data June 30, 2021
Slide 17: Financial Summary
18 Financial Summary Non-GAAP Amounts in millions, except per share FQ3-21 % of FQ2-21 % of FQ3-20 % of Revenue Revenue Revenue Revenue $7,422 100% $6,236 100% $5,438 100% Gross margin 3,185 43% 2,054 33% 1,804 33% Operating income 2,364 32% 1,257 20% 981 18% Income tax (provision) benefit (200) (12
Slide 18: Non-GAAP Financial Data and Guidance
19 Non-GAAP Financial Data and Guidance % of Revenue FQ3-21 FQ3-21 Non-GAAP FQ4-21 (amounts in millions, DRAM 73% Non-GAAP Guidance except per share) NAND 24% Revenue $ 7,422 $8.2 billion ± $200 million Gross margin 42.9% 47.0% ± 1% % Sales Volume Change FQ3-21 Q/Q Operating expenses $ 821 $900 mill
Slide 19: Revenue by Technology
20 Revenue by Technology % of % of % of Amounts in millions FQ3-21 Revenue FQ2-21 Revenue FQ3-20 Revenue DRAM $5,448 73% $4,444 71% $3,587 66% NAND 1,812 24% 1,650 26% 1,665 31% Other 162 2% 142 2% 186 3% Total $7,422 100% $6,236 100% $5,438 100% Percentages of total revenue may not total 100% due t
Slide 20: Non-GAAP Reconciliations
21 Non-GAAP Reconciliations June 30, 2021
Slide 21: Consolidated Results
22 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-21 FQ2-21 FQ3-20 GAAP gross margin $ 3,126 $ 1,649 $ 1,763 Stock-based compensation 45 57 34 Inventory accounting policy change to FIFO — 133 — Change in inventory cost absorption — 160 — 3D XPoint inventory write-down — 49 — O
Slide 22: Consolidated Results
23 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-21 FQ2-21 FQ3-20 GAAP operating income $ 1,799 $ 663 $ 888 Stock-based compensation 98 112 82 Inventory accounting policy change to FIFO — 133 — Change in inventory cost absorption — 160 — 3D XPoint inventory write-down — 49 —
Slide 23: Consolidated Results
24 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-21 FQ2-21 FQ3-20 GAAP cost of goods sold $ 4,296 $ 4,587 $ 3,675 Stock-based compensation (45) (57) (34) Inventory accounting policy change to FIFO — (133) — Change in inventory cost absorption — (160) — 3D XPoint inventory wri
Slide 24: Consolidated Results
25 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-21 FQ2-21 FQ3-20 GAAP net income attributable to Micron $ 1,735 $ 603 $ 803 Stock-based compensation 98 112 82 Inventory accounting policy change to FIFO — 133 — Change in inventory cost absorption — 160 — 3D XPoint inventory w
Slide 25: Consolidated Results
26 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-21 FQ2-21 FQ3-20 GAAP shares used in diluted EPS calculations 1,145 1,144 1,129 Adjustment for stock-based compensation and capped calls 9 10 13 Non-GAAP shares used in diluted EPS calculations 1,154 1,154 1,142 GAAP diluted ea
Slide 26: Consolidated Results
27 Consolidated Results Non-GAAP Reconciliations Amounts in millions FQ3-21 FQ2-21 FQ3-20 Net cash provided by operating activities $ 3,560 $ 3,057 $ 2,023 Investments in capital expenditures, net Expenditures for property, plant, and equipment, net* (2,185) (3,000) (1,937) Payments on equipment pur
Slide 27: FQ4-21 Guidance
28 FQ4-21 Guidance Non-GAAP Reconciliations GAAP Adjustments Non-GAAP Revenue $8.2 billion ± $200 million — $8.2 billion ± $200 million Gross margin 46.0% ± 1% 1% A 47.0% ± 1% Operating expenses $955 million ± $25 million $55 million B $900 million ± $25 million Diluted EPS* $2.23 ± $0.10 $0.07 A,B,
Slide 28: Micron
Micron