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©2017 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are

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2017 Micron Analyst ConferenceFebruary 2, 2017

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 results may differ materially. We refer you to the documents the Company files on

a consolidated basis from time to time with the Securities and Exchange Commission,

specifically the Company’s 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

on a consolidated basis to differ materially from those contained in our projections or

forward-looking statements. These certain factors can be found at

http://www.micron.com/certainfactors. Although 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-looking statements after the date of the presentation to conform these statements

to actual results.

Safe Harbor Statement

February 2, 2017 © 2017 Micron Technology, Inc. | 2

Overview & StrategyMark Durcan, CEO

#MicronAC2017

The New Data Economy

Real-TimeAnalytics

Economic Advantage

Data Proliferation

Micron’s Technologies Are Essential

Near Storage

Data Availability

Bandwidth & Power

Memory

Processor

Storage

Growth and Diversification of Demand

Diversification of demand

creates market opportunities

DRAM Industry Bit Mix

NAND Industry Bit Mix

Memory Market Bit Demand Forecast

0%

50%

100%

2015 2020

Auto & Embedded

Server & Networking

Mobile

PC & Graphics

0%

50%

100%

2015 2020

SSD

Mobile

USB/Cards

Consumer & Other


Source: Micron and industry analysts

0

60

120

180

240

0

150

300

450

600

2015 2016 2017 2018 2019 2020

NAND

B GB EU

NAND‘16-’20 CAGR: ~45%

DRAM‘16-’20 CAGR: ~20%

DRAM

B Gb EU

0

60

120

180

240

0

150

300

450

600

2015 2016 2017 2018 2019 2020

Growth and Diversification of DemandDRAM Industry Bit Mix

NAND Industry Bit Mix

Memory Market Bit Demand Forecast

NAND

B GB EU

NAND‘16-’20 CAGR: ~45%

DRAM‘16-’20 CAGR: ~20%

New data economy market

segments will drive future demand

DRAM

B Gb EU

0%

50%

100%

2015 2020 2030

Developing

Segments

Existing

Segments

0%

50%

100%

2015 2020 2030

Developing

Segments

Existing

Segments



Industry Supply Outlook

Technology-driven growth slows due to scaling limits

with wafer additions likely only replacing lost throughput

- total supply growth remains in the 15-20% range

DRAM technology-driven supply growth has been

slowing, with trend expected to continue

NAND supply growth is stable with headwinds to supply

from 3D conversions continuing through 2018

DRAM Industry Supply Growth NAND Industry Supply Growth

-10%

0%

10%

20%

30%

40%

50%

2011 2012 2013 2014 2015 2016 2017 2018

Capacity Technology Throughput Supply Growth

-20%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017 2018

Capacity Technology Throughput Supply Growth

3D increases bits/wafer at the expense of throughput –

total supply growth in the 35-45% range



Long-Term Memory Industry Trends

DRAM

NAND$0

$25

$50

$75

$100

1991 1996 2001 2006 2011 2016

Peak to

Trough Decline:

-57%

-49%

-23%

-18%

$0

$25

$50

$75

$100

1991 1996 2001 2006 2011 2016

Memory Revenue ($B)Memory projected to grow

2.5x non-memory semi



Delivered on FY16 Operating Priorities

20nm DRAM ramp, >50% of DRAM fab bit output by FQ3-16

1Xnm DRAM manufacturing enablement

Non-Volatile

Memory

Technology and

Product Enablement

DRAM Memory

3D Gen 1 ramp and Gen 2 manufacturing enablement

Total 3D >50% of NAND fab bit output by Fall 2016

3D XPoint™ market enablement

Controller and sub-system capabilities

Advanced packaging

Emerging memory


P

P

P

FY17 Operating Priorities

Ramp 1Xnm

Develop 1Ynm

Non-Volatile Memory

Technology and

Product Enablement

DRAM Memory

Ramp TLC and 3D Gen 2

Develop 3D Gen 3

Develop QLC to market requirements

3D XPoint™ memory early market adoption

Develop comprehensive 1Xnm DRAM portfolio

Expand 3D/TLC enabled product portfolio

Emerging memory development


Technology and Product Enablement

Compute &

NetworkingEmbedded Storage Mobile

Technology for the New Data EconomyScott DeBoer, VP Technology Development

Technology Updates Strong 2016 Performance

DRAM Development Model

Enabling Success

NAND Technology Leadership

Emerging Memory Developments

Significant 2016 Progress

DRAM

• Successful 20nm transition

• Yield execution strength

• Steady progress on 1Xnm DRAM

NAND

• 32 Tier NAND with CuA* drives significant

cost reduction and performance

enhancements vs planar

• 64 Tier NAND deployment progress


>30%

TLC NAND Cost per GB Improvement

16nm Planar

32 Tier 3D64 Tier 3D

>30%

* CMOS under Array

128 Gb

384 Gb

256 Gb

>25%

DRAM Cost per Gb Improvement

25nm

20nm

1Xnm

>20%

DRAM Development Model Benefits

Alternating development model

enabled at 20nm and below

1Xnm technology now deployed in

Japan and Taiwan

1Ynm and 1Znm concurrently under

development (USA and Japan)

Substantial reduction in time

between nodes relative to previous

Micron results


Taiwan Fab 16 Taiwan Fab 11 Japan Fab 15

Technology Development

USA Japan

Accelerating DRAM Technology

Technology deployment improves competitive position

Meaningful 1Xnm output by FY17 end

• Enables critical high-density mobile and compute applications

Transition 1Ynm to manufacturing in 2H17


1Ynm DRAM

Cross-section

1Xnm Yield Map

(Blue is Good Die)

3D NAND Node Transitions

Mature yield on 32 Tier TLC

Meaningful 64 Tier output by FY17 end

Gen 3 manufacturing introduction in 2H17

QLC deployment aligned to market requirements

CuA density advantage across all generations


64 Tier Yield Map

(Blue is Good Die)

16 nm 32 Tier 64 Tier 3D Gen 3

GB per Wafer

>100%

>80%

>40%

2D

3D

FY 2015 FY 2016 FY 2017 FY 2018

NAND GB Probed


64 Tier 3D NAND Structure

64 Active

Tiers

CMOS under Array

Metal

CMOS

Circuits

~4.3 Gb/mm2 (>25% more

die per wafer relative to

competitor’s 64 Tier

3D NAND)

3D NAND Innovation

World’s Smallest

256Gbit Die

59 mm2

New Memory Technology Leadership

First generation 3D XPoint™ running in

manufacturing

Only commercially ready, high density

new memory technology

High capacity, low latency supporting

storage and memory applications

Next two generations in development

New high performance memories

under development


3D XPoint™ Die

Current Memory Characteristics and Future Trends


Perf

orm

ance

(Sp

eed

)

Cost/Bit

NAND

3D XPointTM

DRAM

ReRAM

STT MRAM

New Memory

Developing Technology for the New Data Economy Competitive DRAM Position

3D NAND Strength

New Memory Leadership

Package Technology Focus

R&D Cleanroom Expansion Near Complete


Business Unit UpdateCNBU | EBU | SBU | MBU

Compute & Networking Business UnitTom Eby, Vice President

#MicronAC2017

Compute & Networking Business UnitMARKET TRENDS

Virtual/augmented

reality (VR/AR)

driving growth

Emergence of

gaming as a mass

spectator sport

Graphics


Highest

Bandwidth

Tipping point of

Fortune 500 cloud-

based deployments

Growing diversity

of cloud services

and solutions

Cloud

High Density,

Persistence

Growing demand

for in-memory

database apps

Performance

advances from

persistent memory

Enterprise

Highest Density,

Persistence

4X–5X peak

internet traffic

growth by 2020

5G rollout enables

broader suite of IoT

solutions

Networking

High-Bandwidth,

Low-Latency

Business driven

growth of Ultrathin

segment

VR/AR and high

definition (4K)

graphics

Client

Low Power,

Small Form Factor

Source: Cisco Visual Networking Index, Micron and industry analysts

Compute & Networking Business Unit


DRAM DEMAND DRIVERS

Segment Bit CAGR 2017 TAM Memory Drivers

Graphics ~35% $2.5B GDDR5 is volume solution; GDDR5X for highest

performance

GDDR6 in development as next generation graphics solution

Cloud ~40% $5.5B

Persistent memory (NVDIMM) accelerating database &

other applications

More diverse workloads driving need for higher

performance memory

Enterprise ~30% $5.6B 32GB DDR4 RDIMM is mainstream solution

In-memory database driving demand for highest density

DIMMs (128GB)

Networking ~30% $1.5B RLDRAM for low latency and HMC for highest bandwidth

GDDR5 for high performance, high-volume applications

Client ~10% $8.5B 4GB/8GB DDR4 SO-DIMM is mainstream solution

Ultrathin segment driving demand for LPDDRNote: Graphics TAM and CAGR is only GDDR

Note: $TAM is estimated 2017 & CAGR is 2016–2020 DRAM bit growth Source: Micron and industry analysts

PC Graphics & Game Console Growth


Memory playing a critical role in extending performance for

next-generation graphics: increased bandwidth and density

PC-based systems offer the most immersive

VR experience

Emergence of PC gaming in China and India

Gaming is a $100B industry; ~500M eSports

fans are forecast by 2020

PC Graphics

Increasing console refresh rate due to VR and

higher density content

More affordable console-based VR expanding

the user base

Greater than 150% VR CAGR through 2020

Game Consoles

0

6,000

GDDR5

Other

GDDR5X/6Millions of

1Gbe

0

6,000

Millions of

1Gbe

GDDR5

Other

GDDR5X/6

2015 2020

2015 2020



Today

1X

5X

10X

2020

GDDR5X/6 GDDR5 DDR3/4/5


`

Bandwidth Drives High

Performance Apps

Leveraging Expertise for Emerging Applications


GRAPHICS LEADERSHIP POSITIONS MICRON FOR SUCCESS

Networking High Performance Computing

Application Routing & Switching Machine Learning & Analytics

Benefits Fewer Devices & Lower TCO Higher Bandwidth

Current

ImplementationGDDR5N @ 5Gb/s GDDR5 @ 8Gb/s

Future Outlook GDDR6N @ 10Gb/s GDDR5X/GDDR6 @ 10Gb/s+

Micron Position #1 networking memory supplier

High reliability, long-term support

Strong enabler relations in GPU space

Access to OEMs and cloud users

Why Micron WinsGRAPHICS PERFORMANCE LEADER

Development Expertise

High Quality Solutions

Ecosystem Partnerships

Leading Edge Products

Co-define technologies (GDDR5X,

GDDR6) with SoC and OEM partners

Co-validate products with SoC and

OEM partners

In-house test capabilities

Extensive system level capability

Applying networking & HPC

expertise to GDDR

Highest performance product with

GDDR5X

1Xnm GDDR5 coming later this year

10+ years GDDR5 design

experience

Applying GDDR5X learning to

GDDR6


Embedded Business UnitJeff Bader, Vice President

#MicronAC2017

Industrial IoT/Industrie 4.0

Edge node intelligence

with real-time analytics

IoT security framework

Embedded Business UnitMARKET TRENDS

Users expect connectivity

ADAS adoption &

autonomous vehicles

Configurable virtual

cockpit

Continued 4K/UHD uptake

AI driving smarter homes

OTT/IP STB video streaming

VR/AR user experience

Automotive Industrial Consumer/Connected Home


Ubiquitous Connectivity, Artificial Intelligence and Cyber-Security

Embedded Business Unit


DEMAND DRIVERS

Segment Bit CAGR 2017 TAM Memory Drivers

AutomotiveDRAM: ~35%

NAND: ~30%$2.2B

2x increase of in-vehicle displays with virtual cockpit

3D navigation maps and black box driving 3-4x storage

4-5x increase in sensor data and AI/machine learning

IndustrialDRAM: ~30%

NAND: ~40%$2.3B

Big-data/AI/machine learning increasing processing and storage

IoT end points, edge nodes, IP cameras driving NVM growth

Ubiquitous connectivity increasing M2M module memory

Consumer/

Connected

Home

DRAM: ~25%

NAND: ~25%$5.4B

4K/UHD increasing STB storage, DTV DRAM & NVM

Smart home/wearables growth increasing mobile NVM+DRAM

AI/natural language assistants integration


Note: $TAM is estimated 2017 & CAGR is 2016–2020 bit growth

Automotive Memory Growth


CONNECTIVITY

BLACK BOX

SENSORS

POWERTRAIN ECUs

INFOTAINMENT

CLUSTER

ADAS CPU

Memory footprint per application

Penetration rate across OEM

product lines (luxury to entry)

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

1 2 3 4 5 6 7 8 9 10 112015 2020 2025

Infotainment & Connectivity

ADAS & Autonomous

Power Train & Other

Increasing


The Drive to Autonomous


Safety

1.3M lives globally

94% human error

Efficiencies

40-80 hours time lost

30% congestion

5-10% fuel economy

2018 2020+

NVM: 16-128GB | DRAM: 2-4GB NVM: 64GB-1TB | DRAM: 18-24GB

ADAS: L1/L2 Autonomous Driving: L4/L5

Adaptive cruise control

Lane keeping

Parking assist

Full sense, decide and act

AI & machine learning

Infotainment/Cluster Infotainment/Cluster

Configurable displays

Telematics & connectivity

3D navigational maps

Real-time HD Maps

Display & resolution

increase

Source: Micron, industry analysts and government/industry publications

Why Micron WinsMAINTAINING OUR #1 POSITION AS A PROVEN AND TRUSTED PARTNER

Commitment

Trusted Advisor

Collaboration

Innovation

Global customer labs

OEM, Tier1 and SoC relationships

Consortium alignment

Customer first

Memory pure-play

Application expertise

Broadest portfolio

Leading-edge technology

Delivering performance with reliable

solutions

Security

25+ years

Quality driven

Product longevity


Storage Business UnitDarren Thomas, Vice President

#MicronAC2017

Storage Business UnitMARKET TRENDS

Fast follower to client

applications

Aftermarket

extension of existing

PC platforms

Client

for Consumer


Interested in

enhanced security for

mobile workforce

Smaller laptop

designs, driving need

for sleeker SSD form-

factors

Client

for Business

Performance

consistency

demanded for

modern workloads

Power and capacity

improving data

center TCO

Cloud

Enterprise

Focused on

performance, security

and reliability

Data moving closer to

compute

Traditional

Enterprise

Storage Business Unit


DEMAND DRIVERS

Segment Bit CAGR 2017 TAM Workloads Driving Storage Demand

Client

for Consumer~40% $3.6B

Extending the life of older PCs and new data intensive

applications

Client

for Business~55% $5.2B

Sleeker form factors, extended battery life and durability

are key requirements for OEM

Cloud

Enterprise~60% $5.2B

Social media, mobile and IoT drive need for differentiated

storage portfolio compared to traditional enterprise

architecture design

Traditional

Enterprise~60% $3.6B

Greater use of virtualization and software-defined

architectures, requiring a performance-oriented data

center infrastructure


Note: $TAM is estimated 2017 & CAGR is 2016–2020 NAND bit growth

Seeding the Cloud Total cloud IT infrastructure spending up 18% in

2017, reaching $44.2B*

Spinning media cannot handle random IO at scale

of multi-tenant environments

Customers are demanding & Micron delivers:

• Superior performance: 99% better QoS vs HDD

• Best-in-class capacity: up to 8 TBs, 4X compared to HDDs

• Outstanding cost profile: 66% lower TCO vs HDD

*Source: IDC

Why Micron WinsWORKLOAD MATCHED PORTFOLIO SOLVING END-CUSTOMER IT CHALLENGES

NAND Technology Leadership

SSD Optimization

Comprehensive Portfolio

Differentiated Ecosystem

Engagement

Cross-market, workload focused

• Products cross into adjacent

markets

Industry-leading security

features (FIPS, TCGe, AES-256 bit)

Flexible architecture

• Capacity spans 240GB–8TB

• Tunable capacities

Customer alignment

• Simplified offerings

• Quicker time-to-qual

Customer workload tested

• System tuned

Partner solution development

• Proven reference architectures

Largest capacity 3D NAND

• 50% higher capacity

• Enables 8TB 2.5” form factor

Storage market-tuned media

designs


Mobile Business UnitMike Rayfield, Vice President

#MicronAC2017

LPDRAM: Flagship/high-

end OEMs are positioning

6GB+ memory

NAND: Driven by market

leader’s adoption of

256GB, Android follows

Smartphone Technology DriversMARKET TRENDS

Need for immersive

experience: Multiple

camera system and low

latency 3D rendering

Higher GPU and display

requirements

Solution tailored to

applications

LPDDR4x brings 20%

power consumption

efficiency compared with

LPDDR3

AR/VR Drives Memory

Bandwidth & Density

Increased Density

Drives Market

Mobile Services Drives

Power Efficiency


Mobile Business UnitDEMAND DRIVERS

Segment Bit CAGR 2017 TAM Market Dynamics

FlagshipDRAM: ~25%

NAND: ~45%$14.9B

Deep relationships with select OEMs

Flagship market drives innovation

High-endDRAM: ~30%

NAND: ~50%$9.5B

High growth, high features

Discrete and MCP solutions: excellent fit for MBU’s

broadening portfolio

Mid-tierDRAM: ~35%

NAND: ~50%$4.3B

Strong bit growth opportunity

Aligns well with MBU’s MCP portfolio

Low-endDRAM: ~45%

NAND: ~60%$2.3B

Mass market with highest unit growth potential

Opportunities in emerging regions

Total: DRAM $14.8B, NAND $16.2B



Note: $TAM is estimated 2017 &

CAGR is 2016–2020 bit growth

Content Explosion Leads to Storage Growth

32 64 64 64128 128

256

512

1024

2010 2011 2012 2013 2014 2015 2016 2017 2018+

Planar Mobile NAND

3D Mobile NAND

*Assumption: Uncompressed 8 bit image/30 second video file and Optimized 8 NAND die per package

Source: Micron, industry analysts and toolstudioIO

Picture: ~3MB

VR/4K Video: ~4.7GB

Video: ~50MB

Today’s

social

media

User

generated

content

HD, professional

and user generated

content

MOBILE STORAGE DENSITY IN 8 DIE/PKG (GB)*

xMCP (Multi-Chip Packaging) Market Outlook

SegmentExample

SKUsxMCP TAM

Current

SoM (%)Market Dynamics

High-end $6.0B <5% High growth, high features

Excellent fit for MBU’s broadening portfolio

Leverage with LPDRAM

Mid-tier$4.3B

<10% Strong bit growth opportunity

Aligns well with MBU’s MCP portfolio

Leverage with LPDRAM

Low-end $2.3B <10% Mass market with highest unit growth potential

Opportunities in emerging regions



Growing the xMCP SegmentxMCP BRINGS UNIQUE PROPOSITION

Sub-System in Package-

3DNAND+LPDRAM+FW+Controller

Ease of procurement

Ease of system design (PCB/Routing)

Enables simple adoption of next

generation memory/storage

Target Mid and High-End Segment OEMs xMCP Value Proposition

OPPO R9S plus VIVO X9


Why Micron WinsA FOCUS ON HETEROGENEOUS SOLUTIONS

Complete Portfolio

Ecosystem Collaboration

Leadership in 3D

Supply Chain Synergies

CMOS under Array (industry-

leading die size)

Mobile specific NAND offering

Top-to-bottom density offering

Co-define future memory interfaces

(LPDDR5, UFS, NVMe) and

packaging

Co-validate new products with SoC

supplier and OEMs

In market labs for support

Partner as opposed to competitor to

our customers

Broad portfolio to ensure full

coverage of SKUs in xMCP and

Discrete (128 and 256GB).

Leverage leadership in LPDRAM

Solution catered towards

heterogeneous architecture


Financial & Operational UpdatesErnie Maddock, CFO

#MicronAC2017

Agenda

Key Initiatives and Operational Updates

Capital Management

Continued Bit Growth and Cost Reductions

NAND figures based on Trade NAND (excludes Intel portion of IM Flash)1Two year CAGR comparing total annual FY18/17 to FY16/15

Source: Micron

DRAM NAND DRAM NAND DRAM NAND

FY 2016 FY2017 FY 2018

Bit Growth(FY17 vs. FY15)1

New!

(FY18 vs. FY16)1

Bit Shipments – Two Year CAGR

DRAM ↑ 20-30% ↑ 30-40%

NAND ↑ 30-40% ↑ 45-55%

Average Cost per Bit – Two Year CAGR

DRAM ↓ 15-25% ↓ 15-25%

NAND ↓ 20-30% ↓ 20-30%

P

P

P

P


Manufacturing

Fab Optimization

Assembly and Backend Improvements

Ongoing Operational Enhancements

Segment and Product Portfolio Management NAND Segmentation

New Product Introductions

Ongoing Product Portfolio Review

Expected Yearly P&L Improvement at Full Run Rate: ~$500M

Expected Impact to

Long-run Working

Capital: ~$400M

Working Capital Expectations

Inventory Reductions

Supply Chain Process Improvements

Manufacturing Cycle Time

Improvements

Capital Management

Improved Free Cash Flow Opportunities

Increased deployment of leading edge DRAM and 3D NAND

Benefits of scale from Inotera acquisition and Singapore expansion

Continued focus on operational efficiencies and working capital

Enabling Improved FCF in Business

Conditions Similar to 2H15/1H16

Previous “Trough”

Free Cash Flow

Technology

Deployment

Scale

Operational

Efficiency

Revised Free

Cash Flow


Current FY17 Free Cash Flow Outlook Business environment supports free cash

flow generation >$1.5B in FY17

50-75% of FY17 free cash flow targeted

for debt reduction

Pursuing additional balance sheet

opportunities as appropriate

Capital Management FrameworkLONG-TERM TARGETS

Target Leverage Ratio

Efficient Free Cash Flow

Model

ValueCreation

StrongBalance

Sheet

Access to Low-Cost

Capital

GAAP Debt to EBITDA 1.0x-2.0x(market condition dependent)

P

Target Minimum Cash BalanceLTM SG&A + R&D + Current Debt

P

CAPEX / Sales

Target ~30% of Sales

P

Return on Assets > Cost of Capital

LTM WACC ~10%

PValue

Creation

Efficient Free

Cash Flow

Model

Access to

Low-Cost

Capital

Strong

Balance Sheet


FY17 Investment PlansNET MICRON CAPEX OF $4.8-$5.2B

Non-Volatile Memory30-40% of FY17 CAPEX

Technology and Product

Enablement15-25% of FY17 CAPEX

DRAM Memory40-50% of FY17 CAPEX

Complete 3D Gen 1

Ramp 3D Gen 2

3D XPoint™ early market adoption

Future technology node transitions

Advanced packaging

Emerging memory

Complete 20nm

1Xnm ramp


Takeaways Continuing to execute on

technology migrations and operational

enhancements

Micron positioned for improved

FCF over a variety of market conditions

while supporting normalized CAPEX

spend

Targeting to reduce leverage with FY17

free cash flow

SummaryMark Durcan, CEO

#MicronAC2017

Summary Micron technologies essential to the

new data economy

Delivered on 2016 and strong progress on 2017 operating priorities

Differentiated customer engagement supports success

Innovative technology and products meet evolving market requirements

Strengthening financial opportunities

2017 micron analyst conference - intel - …files.shareholder.com/downloads/abea-45yxoq/... · ssd...

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