Slide 1: Financial results
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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, market and pricing trends and drivers, the impact of technologies such as AI, cost reductions, expected product volume production, our market posit
Slide 3: Sanjay Mehrotra, President and Chief Executive Officer
Sanjay Mehrotra President and Chief Executive Officer December 18, 2024 3
Slide 4: Overview
Overview • Micron achieved record revenue in fiscal Q1, with revenue, gross margins and earnings per share (EPS) all at or above the midpoint of our guidance range. • Data center revenue grew over 400% year over year and 40% sequentially, reaching a record level, with data center revenue mix surpass
Slide 5: Overview
Overview • Leading-edge DRAM supply remains tight, driven by robust demand in data center DRAM, including HBM, which will underpin our business results throughout fiscal and calendar 2025. • We had previously shared our expectation that customer inventory reductions in the consumer-oriented segments
Slide 6: Technology and operations
Technology and operations • We are in production with the industry’s most advanced DRAM and NAND nodes. • We continue to ramp our 1β (1-beta) technology node, which supports HBM3E, and we are preparing to ramp our 1γ (1-gamma) technology node using extreme ultraviolet (EUV) in calendar 2025. • In NA
Slide 7: Manufacturing update
Manufacturing update • Earlier this month, we finalized an agreement with the U.S. Department of Commerce for an award of up to $6.1 billion under the CHIPS and Science Act to support advanced DRAM manufacturing fabs in Idaho and New York. • Additionally, we have entered into a preliminary memorandu
Slide 8: Impact of AI on end markets
Impact of AI on end markets • Multimodal models, post-training and chain-of-thought • Micron is extraordinarily well positioned to leverage this inferencing represent new frontiers of innovation, all of long-term growth opportunity, which has the potential to which are memory intensive and can benef
Slide 9: Data center
Data center • We have upgraded our view of server unit percentage growth and now expect it to reach low teens in calendar 2024, fueled by strong AI demand as well as a robust traditional server refresh cycle. We also anticipate server unit growth to continue in 2025. • Micron achieved new records in
Slide 10: Data center (continued)
Data center (continued) • This month, we commenced high-volume shipments to our second large HBM customer and will start high-volume shipments to our third large customer in CQ1, expanding our HBM customer base. • We continue to receive positive feedback from our leading customers for Micron’s HBM3E
Slide 11: Data center (continued)
Data center (continued) • Micron’s LP5X provides >500GB of capacity and memory bandwidth of >540 GB/s, thus delivering attractive performance per watt for AI platforms. • NVIDIA’s Grace CPU uses Micron’s LP5X to provide systems with additional cache coherent memory to supplement HBM for the ever-gro
Slide 12: PC
PC • The PC refresh cycle is unfolding more gradually, and we expect PC unit volume growth to be flattish in calendar 2024, slightly below prior expectations. • AI PCs will require additional DRAM content, with a minimum of 16GB of DRAM for entry level PCs and 24GB and above for higher-end segments,
Slide 13: Mobile
Mobile • Smartphone unit volumes in calendar 2024 remain on track to grow in the mid-single-digit percentage range, and we expect low-single-digit percentage growth in 2025. • AI adoption continues to be a strong driver for mobile DRAM content growth, where we see the technology used in applications
Slide 14: Automotive
Automotive • Lower than expected automotive unit production, combined with a shift toward value-trim vehicles from premium models and electric vehicles (EVs), has slowed memory and storage content growth and resulted in inventory adjustments at OEMs. • Longer term, we remain optimistic that advanced
Slide 15: Demand outlook
Demand outlook • We expect industry DRAM bit demand growth to be in the high-teens percentage range in calendar 2024 and in the mid-teens percentage range in calendar 2025. • We see overall calendar 2025 DRAM industry bit supply growing roughly in line with bit demand, with tightness in leading-edge
Slide 16: Supply outlook
Supply outlook • The decline in 2024 and 2025 industry NAND demand growth outlook implies that supply actions will be necessary to achieve balance. • Since NAND technology transitions provide a significant increase in overall bit output, the pace of technology transitions will also need to slow in o
Slide 17: Mark Murphy, Chief Financial Officer
Mark Murphy Chief Financial Officer December 18, 2024 17
Slide 18: FQ1-25 revenue $8.7B
FQ1-25 revenue $8.7B Revenue up 12% Q/Q and up 84% Y/Y December 18, 2024 18
Slide 19: Performance by technology
Performance by technology DRAM FQ1-25 NAND FQ1-25 • $6.4 billion, representing 73% of total revenue in • $2.2 billion, representing 26% of total revenue in FQ1-25 FQ1-25 • Revenue increased 20% Q/Q • Revenue decreased 5% Q/Q • Bit shipments increased in the low-double-digit • Bit shipments decreased
Slide 20: Revenue by business unit
Revenue by business unit • Compute and Networking Business Unit revenue was up 46% sequentially to $4.4 billion and now represents over half of our total revenue. CNBU revenue reached a new quarterly record, driven by cloud server DRAM demand, as well as HBM revenues, which more than doubled sequent
Slide 21: FQ1-25 Non-GAAP operating results
FQ1-25 Non-GAAP operating results Revenue: $8.7 billion Gross margin: 39.5% Operating expenses: $1.05 billion Operating income: $2.4 billion Net income: $2.0 billion Diluted earnings per share: $1.79 Cash from operations (GAAP): $3.2 billion See non-GAAP reconciliations in Appendix December 18, 2024
Slide 22: Cash flow and capital allocation
Cash flow and capital allocation From FY-22 to FQ1-25 Cash flow from operations FQ1-25: $3.2 billion (37% of revenue) • $3.2 billion toward repurchasing 47 million shares Net Capex1 FQ1-25: $3.1 billion • $1.6 billion towards dividends paid Adjusted FCF* FQ1-25: $112 million • $4.8 billion returned
Slide 23: Capex plan
Capex plan • In fiscal Q2, we forecast net capex to be approximately $3 billion. • For fiscal 2025, we are prioritizing our investments to ramp 1β and 1γ technology nodes, as well as greenfield fab investments for DRAM, which will help us support HBM and long- term DRAM demand. • We have cut our NAN
Slide 24: FQ2-25 guidance Non-GAAP
FQ2-25 guidance Non-GAAP Revenue $7.90 billion ± $200 million Gross margin 38.5% ± 1.0% Operating expenses $1.10 billion ± $15 million Diluted earnings per share* $1.43 ± $0.10 *Based on ~1.14 billion diluted shares. See non-GAAP reconciliations in Appendix. December 18, 2024 24
Slide 25: Q&A
Q&A December 18, 2024 25
Slide 26: on an “AS IS” basis without warranties of any kind. Statements regarding products, including
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