1、Financial resultsFQ3 20242June 26,2024Safe harbor statementDuring the course of this meeting,we may make projections or other forward-looking statements regarding market demand and supply,the impact of new technologies such as AI,pricing,cost reductions,expected product volume production,our market

2、position,expected product announcements,future events or the future financial performance or expected financial projections of the Company and the industry.We wish to caution you that such statements are predictions,and that actual events or results may differ materially.We refer you to the document

3、s the Company files from time to time with the Securities and Exchange Commission,including the Companys most recent Form 10-K and Form 10-Q.These documents contain and identify important factors that could cause the actual results for the Company to differ materially from those contained in our pro

4、jections or forward-looking statements.These certain factors can be found at we believe that the expectations reflected in the forward-looking statements are reasonable,we cannot guarantee future results,levels of activity,performance,or achievements.We are under no duty to update any of the forward

5、-looking statements to conform these statements to actual results.This presentation includes Non-GAAP financial measures.Non-GAAP financial measures represent GAAP measures,excluding the impact of certain activities,which management excludes in analyzing our operating results and understanding trend

6、s in our earnings,adjusted free cash flow,and business outlook.Further information regarding Microns use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included in the Appendix.3June 26,2024Sanjay MehrotraPresident and CEO34June 26,2024September 28,2023Overview Micro

7、n delivered fiscal Q3 revenue,gross margin and EPS all above the high end of guidance ranges.Micron drove robust price increases as industry supply-demand conditions continued to improve.This improved pricing,combined with our strengthening product mix,resulted in increased profitability across all

8、our end markets.In data center,rapidly growing AI demand enabled us to grow our revenue by over 50%on a sequential basis,and we grew share in high margin AI-related product categories such as HBM,high-capacity DIMMs and data center SSDs.Robust AI-driven demand for data center products is causing tig

9、htness on our leading-edge nodes.Consequently,we expect continued price increases throughout CY24 despite only steady near-term demand in PCs and smartphones.As we look ahead to 2025,demand for AI PCs and AI smartphones,and continued growth of AI in the data center,create a favorable set up that giv

10、es us confidence that we can deliver a substantial revenue record in FY25,with significantly improved profitability underpinned by our ongoing portfolio shift to higher margin products.June 26,202445June 26,2024Technology&Operations Over 80%of our DRAM bit production is now on leading-edge 1-alpha a

11、nd 1-beta nodes.Over 90%of our NAND bit production is on our two leading-edge NAND nodes.1-gamma DRAM pilot production using extreme ultraviolet(EUV)lithography is progressing well,and we are on track for volume production in CY25.Our next-gen NAND node is also on track,with high volume production p

12、lanned for CY25.Despite impacts from the earthquake,we now expect our FY24 DRAM front-end cost reductions excluding HBM,to be in the high single-digits percentage range.We expect our FY24 NAND front-end cost reductions to be in the low teens percentage range.5CHIPS Micron signed a non-binding prelim

13、inary memorandum of terms,or PMT,with the U.S.government for$6.1 billion in grants under the CHIPS and Science act.Fab construction in Idaho is underway,and we are working diligently to complete the regulatory and permitting processes in New York.This additional leading-edge greenfield capacity,alon

14、g with continued technology transition investments in our Asia facilities is required to meet long-term demand in the second half of this decade and beyond.These investments support our objective to maintain our current bit share over time,and to grow our memory bit supply in line with long-term ind

15、ustry bit demand.Micron retains flexibility under the PMT to manage construction and timing of supply growth in a manner that allows us to remain responsive to market conditions.June 26,20246June 26,2024End markets overview We are in the early innings of a multi-year race to enable Artificial Genera

16、l Intelligence,or AGI,which will revolutionize all aspects of life.Enabling AGI will require training ever-increasing model sizes with trillions of parameters and sophisticated servers for inferencing.AI will also permeate to the edge via AI PCs and AI smartphones,as well as smart automobiles and in

17、telligent industrial systems.These trends will drive significant growth in the demand for DRAM and NAND,and we believe that Micron will be one of the biggest beneficiaries in the semiconductor industry of the multi-year growth opportunity driven by AI.6Customer Inventories Most data center customer

18、inventories have normalized,and demand from customers continues to strengthen.PC and smartphone customers have built additional inventories due to the rising price trajectory,the anticipated growth in AI PCs and AI smartphones,as well as the expectation of tight supply as an increasing portion of DR

19、AM and NAND output is dedicated to meeting growing data center demand.Due to expectations for continued leading-edge node tightness,we are seeing increased interest from many customers across market segments to secure 2025 long-term agreements ahead of their typical schedule.June 26,20247June 26,202

20、4End market highlights In data center,industry server unit shipments are expected to grow in the mid-to-high-single digits in CY24,driven by strong growth for AI servers and a return to modest growth for traditional servers.HBM:Our HBM shipment ramp began in FQ3,and we generated over$100M in HBM3E r

21、evenue in the quarter,at margins accretive to DRAM and overall company margins.We expect to generate several hundred million dollars of revenue from HBM in FY24,and multiple$Bs in revenue from HBM in FY25.We expect to achieve HBM market share commensurate with our overall DRAM market share sometime

22、in CY25.Our HBM is sold out for CY24 and CY25,with pricing already contracted for the overwhelming majority of our 2025 supply.We are making significant strides towards expanding our HBM customer base in CY25,as we design-in our industry-leading HBM technology with most of the major HBM customers.We

23、 have sampled our 12-high HBM3E product and expect to ramp it into high volume production in CY25,and increase in mix throughout 2025.We are confident we will maintain our technology leadership with HBM4 and HBM4E.128GB Modules:We achieved full validation on our 1-beta 32 gigabit monolithic-die base

24、d 128 gigabyte high-capacity server DIMM products,and are on track to achieve several hundred million dollars of revenue from high capacity DIMMs in the second half of fiscal 2024.Additionally,we continue to see strong interest in our industry-leading 1-beta LPDRAM in data center applications.Data c

25、enter SSDs:Amidst of a strong demand recovery as customers have worked through their 2023 inventory.Hyperscale demand is improving,driven primarily by AI training and inference infrastructure,and supplemented by the start of a recovery of traditional compute and storage infrastructure demand.Micron

26、is gaining share in data center SSDs,as we reach new revenue and market share records in this important product category.During the quarter,we more than tripled bit shipments of our 232-layer based 6500 30 terabyte SSDs,which offer best-in-class performance,reliability,and endurance for AI data lake

27、 applications.We continued our leadership and innovation by becoming the first NAND vendor to supply 200+layer QLC for the enterprise storage market.Data center8June 26,2024End market highlights PC:Unit volumes remain on track to grow in the low single-digit range for CY24.We are optimistic that the

28、 planned Windows 10 end of life in 2025,the launch of Windows 12 and the introduction of a new generation of AI PCs will accelerate the PC replacement cycle starting in late CY24.The PC replacement cycle should gather momentum through CY25,as new AI applications are rolled out.During Computex in Tai

29、wan,we saw several announcements of next-generation chipsets and AI PCs.These devices feature high-performance Neural Processing Unit chipsets,and we expect these devices will have 40%to 80%more DRAM content than todays average PC.We expect next-gen AI PCs to make up a meaningful portion of total PC

30、 units in CY25,growing each year until most PCs ultimately support AI PC specs.AI PCs are also likely to require higher performance and higher average capacity SSDs than traditional PCs,aligning well with our leading technology portfolio on our 232-layer NAND with our Performance 3500 SSD,and our in

31、dustry-leading value QLC 2500 NVMe SSDs.Mobile:Smartphone unit volumes in CY24 remain on track to grow in the low-to-mid single digit percentage range.Microns leading LP5X is enabling the recent 12GB and 16GB AI phone releases at all Android tier 1 customers,representing a 50%to 100%increase over la

32、st years flagship models.Automotive:The automotive sector continued to experience robust demand for memory and storage,and Micron achieved a record quarter for automotive revenues.In the fiscal third quarter,we launched the worlds first multi-port Gen 4 NVMe SSD in support of next generation central

33、ized compute architectures.Industrial:In industrial and retail consumer segments,which are a smaller part of our business,we are seeing some near-term demand uncertainty from our distribution partners and end customers.We remain confident in the long-term fundamentals and growth drivers of these bus

34、inesses-especially with the increasing adoption of AI in a variety of applications.PCMobile andintelligent edge9June 26,2024Outlook Demand:We forecast CY24 bit demand growth for the industry to be in the mid-teens percentage range for both DRAM and NAND.Over the medium term,we expect industry bit de

35、mand growth CAGRs of mid-teens in DRAM and high teens in NAND.Supply:We expect CY24 industry supply to be below demand for both DRAM and NAND.As discussed previously,the ramp of HBM production will constrain industry supply growth in non-HBM products.Industry wide,HBM3E consumes approximately three

36、times the wafer supply as D5 to produce a given number of bits in the same technology node.With increased performance and packaging complexity,across the industry,we expect this trade ratio for HBM4 to be even higher than the trade ratio for HBM3E.We anticipate strong HBM demand due to AI,combined w

37、ith increasing silicon intensity of the HBM roadmap,to contribute to tight supply conditions for DRAM across all end markets.As the memory industry is still recovering from the challenging environment in 2023,this tight supply environment will help drive the considerable improvements in profitabilit

38、y and ROI that are needed to enable the investments required to support future growth.Microns bit supply growth in FY24 remains below our demand growth for both DRAM and NAND.Micron will continue to exercise supply and capex discipline,and focus on improving profitability,while maintaining our bit m

39、arket share for DRAM and NAND.We continue to project we will end fiscal 2024 with low double digit percentage less wafer capacity in both DRAM and NAND than our peak levels in fiscal 2022.We intend to use our existing inventory to drive a portion of the bit growth supporting our revenue in fiscal 20

40、25,to enable a more optimized use of our capex investments.910June 26,2024Capex plan FY24 capex plan will be$8.0B and WFE spending will be down YoY in FY24.We expect to increase our capital spending materially next year,with capex around mid-30s%range of revenue for FY25,which will support HBM assem

41、bly and test equipment,fab and back-end facility construction as well as technology transition investment to support demand growth.Record revenue and significantly improved profitability in FY25 will help support average quarterly capex in FY25 to be meaningfully above the FQ4 2024 level of$3B.The c

42、onstruction capex in the planned Idaho and New York greenfield fabs in fiscal 2025 will be half or more of the expected increase in total capex.In fact,the growth in both greenfield fab construction and HBM capex investments,is projected to make up the overwhelming majority of the year-over-year cap

43、ex increase.These fab construction investments are necessary to support supply growth for the latter half of this decade.This Idaho fab will not contribute to meaningful bit supply until fiscal 2027 and the New York construction capex is not expected to contribute to bit supply growth until fiscal 2

44、028 or later.The timing of future WFE spend in these fabs will be managed to align supply growth with expected demand growth.1011June 26,2024Mark MurphyChief Financial Officer1112June 26,2024FQ3-24 revenue$6.8BRevenue up 17%Q/Qand up 82%Y/Y13June 26,2024Performance by technologyDRAM FQ3-24$4.7 billi

45、on,representing 69%of total revenue Revenue increased 13%Q/Q Bit shipments decreased by a mid-single digit percentage Q/Q ASPs increased by approximately 20%Q/QNAND FQ3-24$2.1 billion,representing 30%of total revenue Revenue increased 32%Q/Q Bit shipments increased by a high-single digit percentage

46、Q/Q ASPs increased by approximately 20%Q/Q14June 26,2024Revenue by business unitAmounts in millionsFQ3-24FQ2-24Q/Q%ChangeFQ3-23Y/Y%ChangeCompute and Networking(CNBU)$2,573$2,18518%$1,38985%Mobile(MBU)$1,588$1,598(1%)$81994%Embedded(EBU)$1,294$1,11116%$91242%Storage(SBU)$1,353$90550%$627116%15June 26

47、,2024FQ3-24Non-GAAP operating resultsRevenue:$6.8 billionGross margin:28%Operating expenses:$976 millionOperating income:$941 millionNet income:$702 millionDiluted earnings per share:$0.62Cash from operations(GAAP):$2.5 billion15See non-GAAP reconciliations in Appendix16June 26,2024Cash flow and cap

48、ital allocationFrom FY-21 to FQ3-24:$5.5 billion returned to shareholders from share repurchases and dividends,including$4.1 billion used to repurchase 60 million sharesCash flow from operationsFQ3-24:$2.5B(36%of revenue)Net CapEx1FQ3-24:CapEx of$2.1BFY-24:CapEx guidance of approximately$8.0BAdjuste

49、d FCF*FQ3-24:$425MBuybacksFQ3-24:Temporarily suspendedDividendsDividend payment of$0.115 per share will be paid on July 23rd Liquidity2$11.7B in liquidity at end of FQ3-241CapEx net of proceeds from government incentives and proceeds from sales of property,plant,and equipment.2Cash,short-term and lo

50、ng-term marketable investments,restricted cash,and undrawn revolver capacity.*Adjusted free cash flow is a non-GAAP measure defined as net cash provided by operating activities less investments in capital expenditures net of proceeds from government incentives and proceeds from sales of property,pla

51、nt,and equipment.See non-GAAP reconciliations in Appendix.17June 26,2024FQ4-24 guidanceNon-GAAP*Based on 1.14 billion diluted shares.See non-GAAP reconciliations in Appendix.Revenue$7.60 billion$200 millionGross margin34.5%1.0%Operating expenses$1.06 billion$15 millionDiluted earnings per share*$1.0

52、8$0.0818June 26,2024Appendix19June 26,2024Financial summaryNon-GAAPSee non-GAAP reconciliations.Amounts in millions,except per shareFQ3-24%of RevenueFQ2-24%of RevenueFQ3-23%of RevenueRevenue$6,811100%$5,824100%$3,752100%Gross margin1,91728%1,16320%(603)(16%)Operating income(loss)94114%2044%(1,469)(3

53、9%)Income tax(provision)benefit(227)294(102)Net income(loss)70210%4768%(1,565)(42%)Diluted earnings(loss)per share0.620.42(1.43)Cash provided by operating activities(GAAP)2,4821,21924Cash,marketable investments,and restricted cash(GAAP)9,2249,71811,39720June 26,2024Non-GAAP financial data and guidan

54、ce%of RevenueFQ3-24DRAM69%NAND30%See non-GAAP reconciliations.%Sales Volume ChangeFQ3-24 Q/QDRAMDecreased by a mid-single digit percentageNANDIncreased by a high-single digit percentage%ASP ChangeFQ3-24 Q/QDRAMIncreased by approximately 20%NANDIncreased by approximately 20%FQ3-24 Non-GAAP(amounts in

55、 millions)FQ4-24Non-GAAP EstimatesDiluted shares1,1361.14 billionIncome tax(provision)benefit$(227)($320)millionCash from operations(GAAP)$2,482Investments in capex,net(capital cash flow)$(2,057)FY-24:$8.0 billionFQ3-24 Non-GAAP(amounts in millions,except per share)FQ4-24Non-GAAP GuidanceRevenue$6,8

56、11$7.60 billion$200 millionGross margin28%34.5%1.0%Operating expenses$976$1.06 billion$15 millionDiluted earnings per share$0.62$1.08$0.0821June 26,2024Revenue by technologyAmounts in millionsFQ3-24%of RevenueFQ2-24%of RevenueFQ3-23%of RevenueDRAM$4,69269%$4,15871%$2,67271%NAND2,06530%1,56727%1,0132

57、7%Other(primarily NOR)541%992%672%Total$6,811100%$5,824100%$3,752100%Percentages of total revenue may not total 100%due to rounding.22June 26,2024Non-GAAP reconciliations23June 26,2024Consolidated resultsNon-GAAP reconciliationsAmounts in millionsFQ3-24FQ2-24FQ3-23GAAP gross margin$1,832$1,079$(668)

58、Stock-based compensation808060Other545Non-GAAP gross margin$1,917$1,163$(603)GAAP operating expenses$1,113$888$1,093Stock-based compensation(137)(129)(91)Restructure and asset impairments(68)Patent cross-license agreement gain200Litigation settlement(68)Non-GAAP operating expenses$976$959$866GAAP op

59、erating income(loss)$719$191$(1,761)Stock-based compensation217209151Restructure and asset impairments68Patent cross-license agreement gain(200)Litigation settlement68Other545Non-GAAP operating income(loss)$941$204$(1,469)24June 26,2024Consolidated resultsNon-GAAP reconciliationsAmounts in millionsF

60、Q3-24FQ2-24FQ3-23GAAP cost of goods sold$4,979$4,745$4,420Stock-based compensation(80)(80)(60)Other(5)(4)(5)Non-GAAP cost of goods sold$4,894$4,661$4,355GAAP research and development$850$832$758Stock-based compensation(77)(77)(57)Non-GAAP research and development$773$755$701GAAP selling,general,and

61、administrative$291$280$219Stock-based compensation(60)(52)(34)Non-GAAP selling,general,and administrative$231$228$18525June 26,2024Consolidated resultsNon-GAAP reconciliationsAmounts in millionsFQ3-24FQ2-24FQ3-23GAAP net income(loss)$332$793$(1,896)Stock-based compensation217209151Restructure and as

62、set impairments68Patent cross-license agreement gain(200)Litigation Settlement68Other327Estimated tax effects of above and other tax adjustments150(328)37Non-GAAP net income(loss)$702$476$(1,565)GAAP income tax(provision)benefit$(377)$622$(139)Estimated tax effects of non-GAAP adjustments and other

63、tax adjustments150(328)37Non-GAAP income tax(provision)benefit$(227)$294$(102)26June 26,2024Consolidated resultsNon-GAAP reconciliationsAmounts in millionsFQ3-24FQ2-24FQ3-23GAAP net income(loss)$332$793$(1,896)Interest(income)expense,net1414(8)Income tax provision(benefit)377(622)139Depreciation exp

64、ense and amortization of intangible assets1,9551,9241,956Non-GAAP adjustmentsStock-based compensation217209151Restructure and asset impairments68Patent cross-license agreement gain(200)Litigation settlement68Other1Adjusted EBITDA$2,895$2,119$47827June 26,2024Consolidated resultsNon-GAAP reconciliati

65、onsAmounts in millions,except per shareFQ3-24FQ2-24FQ3-23GAAP shares used in diluted EPS calculation1,1231,1141,094Adjustment for stock-based compensation1320Non-GAAP shares used in diluted EPS calculation1,1361,1341,094GAAP diluted earnings(loss)per share$0.30$0.71$(1.73)Effects of non-GAAP adjustm

66、ents0.32(0.29)0.30Non-GAAP diluted earnings(loss)per share$0.62$0.42$(1.43)Net cash provided by operating activities$2,482$1,219$24Expenditures for property,plant,and equipment(2,086)(1,384)(1,561)Payments on equipment purchase contracts(45)(26)(36)Proceeds from sales of property,plant,and equipment

67、411334Proceeds from government incentives33149184Investments in capital expenditures,net(2,057)(1,248)(1,379)Adjusted free cash flow$425$(29)$(1,355)28June 26,2024FQ4-24 guidanceNon-GAAP reconciliations*GAAP earnings per share based on approximately 1.12 billion diluted shares and non-GAAP earnings

68、per share based on approximately 1.14 billion diluted shares.The above guidance does not incorporate the impact of any potential business combinations,divestitures,additional restructuring activities,balance sheet valuation adjustments,strategic investments,financing transactions,and other significa

69、nt transactions.The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.Non-GAAP Adjustments(amounts in millions)AStock-based compensation cost of goods sold$84AOther cost of goods sold4BStock-based compensation research and development77BSt

70、ock-based compensation selling,general,and administrative48CTax effects of the above items and other tax adjustments315$528GAAPAdjustmentsNon-GAAPRevenue$7.60 billion$200 million$7.60 billion$200 millionGross margin33.5%1.0%1.0%A34.5%1.0%Operating expenses$1.19 billion$15 million$125 millionB$1.06 b

71、illion$15 millionDiluted earnings per share*$0.61$0.08$0.47A,B,C$1.08$0.08 2024 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

72、products,including statements regarding product features,availability,functionality,or compatibility,are provided for informational purposes only and do not modify the warranty,if any,applicable to any product.Drawings may not be to scale.Micron,the Micron logo,and other Micron trademarks are the property of Micron Technology,Inc.All other trademarks are the property of their respective owners.