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©2017 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 regarding their 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 all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks
are the property of their respective owners.
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
February 2, 2017 © 2017 Micron Technology, Inc. | 9
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
February 2, 2017 © 2017 Micron Technology, Inc. | 10
Source: Micron and industry analysts
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
February 2, 2017 © 2017 Micron Technology, Inc. | 11
Source: Micron and industry analysts
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
February 2, 2017 © 2017 Micron Technology, Inc. | 12
Source: Micron and industry analysts
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
February 2, 2017 © 2017 Micron Technology, Inc. | 13
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
February 2, 2017 © 2017 Micron Technology, Inc. | 14
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
February 2, 2017 © 2017 Micron Technology, Inc. | 18
>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
February 2, 2017 © 2017 Micron Technology, Inc. | 19
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
February 2, 2017 © 2017 Micron Technology, Inc. | 20
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
February 2, 2017 © 2017 Micron Technology, Inc. | 21
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
February 2, 2017 © 2017 Micron Technology, Inc. | 22
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
February 2, 2017 © 2017 Micron Technology, Inc. | 23
3D XPoint™ Die
Current Memory Characteristics and Future Trends
February 2, 2017 © 2017 Micron Technology, Inc. | 24
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
February 2, 2017 © 2017 Micron Technology, Inc. | 25
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
February 2, 2017 © 2017 Micron Technology, Inc. | 28
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
February 2, 2017 © 2017 Micron Technology, Inc. | 29
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
February 2, 2017 © 2017 Micron Technology, Inc. | 30
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
Source: Micron and industry analysts
February 2, 2017 © 2017 Micron Technology, Inc. | 31
Today
1X
5X
10X
2020
GDDR5X/6 GDDR5 DDR3/4/5
Source: Micron and industry analysts
`
Bandwidth Drives High
Performance Apps
Leveraging Expertise for Emerging Applications
February 2, 2017 © 2017 Micron Technology, Inc. | 32
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
February 2, 2017 © 2017 Micron Technology, Inc. | 33
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
February 2, 2017 © 2017 Micron Technology, Inc. | 35
Ubiquitous Connectivity, Artificial Intelligence and Cyber-Security
Embedded Business Unit
February 2, 2017 © 2017 Micron Technology, Inc. | 36
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
Source: Micron and industry analysts
Note: $TAM is estimated 2017 & CAGR is 2016–2020 bit growth
Automotive Memory Growth
February 2, 2017 © 2017 Micron Technology, Inc. | 37
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
Source: Micron and industry analysts
The Drive to Autonomous
February 2, 2017 © 2017 Micron Technology, Inc. | 38
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
February 2, 2017 © 2017 Micron Technology, Inc. | 39
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
February 2, 2017 © 2017 Micron Technology, Inc. | 41
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
February 2, 2017 © 2017 Micron Technology, Inc. | 42
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
Source: Micron and industry analysts
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
February 2, 2017 © 2017 Micron Technology, Inc. | 44
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
February 2, 2017 © 2017 Micron Technology, Inc. | 46
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
February 2, 2017 © 2017 Micron Technology, Inc. | 47
Source: Micron and industry analysts
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
February 2, 2017 © 2017 Micron Technology, Inc. | 49
Source: Micron and industry analysts
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
February 2, 2017 © 2017 Micron Technology, Inc. | 50
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
February 2, 2017 © 2017 Micron Technology, Inc. | 51
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
February 2, 2017 © 2017 Micron Technology, Inc. | 54
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
February 2, 2017 © 2017 Micron Technology, Inc. | 58
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
February 2, 2017 © 2017 Micron Technology, Inc. | 60
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
February 2, 2017 © 2017 Micron Technology, Inc. | 61
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
Q&A
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