Micron Q109_Earnings_Call

©2008 Micron Technologies, Inc. All rights reserved. Products are warranted only to meet Micron’s production data sheet specifications. 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. Dates are estimates only. Drawings are not to scale. Micron and the Micron logo are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners.

December 2008 ©2008 Micron Technology, Inc. |

Micron TechnologyFinancial Conference Call

First Quarter of Fiscal 2009

2

©2008 Micron Technology, Inc. |December 2008

Safe Harbor

During the course of this meeting, we may make projections or other forward-

looking statements regarding future events of 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

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.

3


Ron FosterCFO and VP of Finance

4

©2008 Micron Technology, Inc. |December 2008 5

Financial SummaryDollars in millions, except per share Q1 – 2009 % of Sales Q4 - 2008 % of Sales

Net sales $1,402 100% $1,449 100%

Gross margin* (449) -32% (65) -4%

Operating (loss) (672) -48% (338) -23%

Income tax (provisions) (13) (2)

Non-controlling interest in net (income) loss

13 11

Restructuring credits (charges) 66 (4)

Net (loss) ($706) -50% ($344) -24%

Diluted (loss) per share ($0.91) ($0.45)

Shares in diluted EPS calc 773.3 772.9

*Including NRV


Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09

ASP COGS

Micron DRAM ASP & Cost Trends

ChangeQ4-08 / Q1-09ASP/Gb (-34%)

COGS/Gb (-12%)

Note: COGS/Gb excludes NRV and other adjustments

6


Micron NAND ASP & Cost Trends

Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09

ASP COGS

ChangeQ4-08 / Q1-09ASP/GB (-24%)

COGS/GB (-14%)

Note: COGS/GB excludes NRV and other adjustments

7


Operating Expenses(Millions of US$)

8

$195$184

$163$180

$170 $167$178

$134 $143

$112 $120 $116$107 $102

FQ3-07 FQ4-07 FQ1-08 FQ2-08 FQ3-08 FQ4-08 FQ1-09

R&D

SG&A


Cash Flow From Operations(Millions of US$)

Source: Company Data, Finance Strategy Group

* All competitor data based on closest calendar quarter, Micron data based on fiscal quarters** Qimonda based on Cowen estimates

Market: Elpida, Hynix, Qimonda, Nanya, Powerchip, ProMOS, WinbondRepresented by a simple average of competitors’

respective operating cash flows

$276 $282

$217$243

$359

$101

-$88

-$144

-$41

-$200

-$100

$0

$100

$200

$300

$400

FQ 1Q08 FQ 2Q08 FQ 3Q08 FQ 4Q08 FQ 1Q09

Micron Market

9


36%

23%

41%

2009F Capital Expenditures

$650 – 750 million

MicronIM Flash

TECH

10


Mark AdamsVP of Worldwide Sales

12


Memory Pricing

13

Source: DRAM eXchange

DRAM & NAND Spot Market ASPs 3-Month Decline

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

Sep-08 Oct-08 Nov-08

1 Gb 128Mx8 667MHz DDR2 NAND 1GB 1024Mx8 (MLC)


PC Unit Shipments vs. PC Memory ContentD

esk

top, N

ote

book U

nits

in M

illio

ns

All data is in calendar quarters

Q2-08 – Q4-09 Forecast

2004 Average413 MB

2005 Average555 MB

2006 Average772 MB

2007 Average1207 MB

Growth ’06 – ’07

56%

2008 Average1882 MB

Growth ’07 – ’08

56%

Source: iSuppli

2009 Average2499 MB

Growth ’08 – ’09

33%

Avera

ge M

B p

er S

yste

m

0

600

1200

1800

2400

3000

0

20

40

60

80

100

1Q

-04

2Q

-04

3Q

-04

4Q

-04

1Q

-05

2Q

-05

3Q

-05

4Q

-05

1Q

-06

2Q

-06

3Q

-06

4Q

-06

1Q

-07

2Q

-07

3Q

-07

4Q

-07

1Q

-08

2Q

-08

3Q

-08

4Q

-08

1Q

-09

2Q

-09

3Q

-09

4Q

-09

Notebook Units Desktop Units Desktop MB/System Notebook MB/System

2004 Average409 MB

2005 Average555 MB

2006 Average772 MB

2007 Average1207 MB

2008 Average1856 MB

2009 Average2451 MB

14


1GB

1GB1GB

1GB

2GB

2GB2GB 2GB

4GB4GB 4GB 4GB

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q2 (FY 2008) Q3 (FY 2008) Q4 (FY 2008) Q1 (FY 2009)

8GB

4GB

2GB

1GB

512MB

256MB

Micron’s Module Density TransitionDDR2

15


Server Memory and Unit Growth

0

2

4

6

8

10

12

0

10,000

20,000

30,000

40,000

50,000

60,000

2006 2007 2008 2009 2010 2011 2012

Weighted Average MBs per System Server Forecast in Millions of Units

Weig

hte

d A

vera

ge M

Bs

per

Syst

em S

erve

r Fore

cast in

Millio

ns o

f Units

32%YoY Growth2008-2009

Source: IDC

16


24 36 52 74

188

497

1,110

1,916

141

322

698

1,106

0

500

1000

1500

2000

2007 2008 2009 2010

DRAM Embedded NAND Flash Cards

Handset Memory Content

Sources: Gartner, iSuppli, Micron Market Research

Avera

ge M

B p

er

Syst

em

* Embedded Only

DRAM

43%

YoY Growth2008-2009

NAND*

123%

YoY Growth2008-2009

2008 – 2010 Forecast

Flash Cards

117%

YoY Growth2008-2009

17


Total NAND Market by Application

Sources: iSuppli, Gartner, Micron Market Research

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2007 2008 2009 2010 2011 2012

Bill

ions

of M

B

Other

Non-Mobile Flash Cards

Mobile Handsets

USB Drives

MP3 Players (Flash Based)

Computing

Mobile Handsets = cards + embeddedComputing = SSD, Hybrid HDD, and PC Cache

Other = Portable gaming, Set Top Boxes, Other consumer

18


Product Technology Innovation

Log C

ell

Siz

e

Today

NANDDRAM

34nm32Gb NAND

50nm1Gb DRAM

68nm1Gb DRAM

19


Channels & Alliances

Examples

Retail

OEM

Channel Distribution

PartnerAlliances

E-Commerce

20

http://www.bhphotovideo.com/bnh/controller/home?O=productlist.jsp&A=getpage&Q=RootPage.jsp


Solid State Drives

Cards for Photography

DRAM Modules

USB Flash Drives

Lexar and Crucial Products

Gaming CardsMobile Cards

Good Cards Best Cards Gaming CardsMobile CardsBetter Cards

21

Economy & Finance

Micron Q109_Earnings_Call