Micron Q4-08slides

MICRON CONFIDENTIAL

© 2008 Micron Technology, 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 not to scale. Micron and the Micron logo are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners.

© 2008 Micron Technology, Inc. | 2October 2008

Micron TechnologyFinancial Conference Call

Fourth Quarter of Fiscal 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.


Ron FosterCFO and VP of Finance


Financial Summary

Dollars in millions, except per share Q4 -2008 Q3 -2008

Net Sales $1,449 $1,498

Gross margin (65) 48

Operating (loss) (338) (225)

Income tax (provision) (2) (13)

Non-controlling interests in net (income) loss 11 8

Net (loss) ($344) ($236)

Diluted (loss) per share ($0. 45) ($0.30)

Shares in diluted EPS calc 772.9 772.8


Financial Summary

Dollars in millions, except per share 2008 2007

Net Sales $5,841 $5,688

Gross margin (55) 1,078

Operating (loss) (1,595) (280)

Income tax (provision) (18) (30)

Non-controlling interests in net (income) loss 10 (122)

Net (loss) (1,619) (320)

Diluted (loss) per share ($2.10) ($0.42)

Shares in diluted EPS calc 772.5 769.1


Operating ExpensesDollars in millions


Capital ExpendituresDollars in millions

$2,916

$4,090


2008 Capital Expenditures

$2,916

Dollars in millions

IMFSMicron

TECH IMFT


2009F Capital Expenditures

$1.0 – 1.3 billion

IMFlashMicron

TECH


Mark AdamsVP of Worldwide Sales


Memory Pricing NAND & DRAM Average (Trade) ASPs

Source: DRAM eXchange

$1.25

$1.75

$2.25

$2.75

$3.25

$3.75

Dece

mber

'07

January

'08

Febru

ary

'08

Marc

h '08

April '0

8

May '08

June '08

July

'08

August

'08

Septe

mber

'08

1 Gb 128Mx8 667MHz DDR2

NAND 8Gb 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


0%

25%

50%

75%

100%

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

8GB DDR2 Module

4GB DDR2 Module

2GB DDR2 Module

1GB DDR2 Module

512MB DDR2 Module

256MB DDR2 Module

Micron’s Module Density Transition

1GB

1GB

1GB 1GB

2GB

2GB

2GB2GB

DDR2

4GB 4GB4GB 4GB


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

53%

YoY Growth2007-2008

NAND*

165%

YoY Growth2007-2008

2008 – 2010 Forecast

Flash Cards

128%

YoY Growth2007-2008


Total NAND Market by Application

Source: 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

Bil

lio

ns o

f M

B

Other

Non-Mobile Flash Cards

Mobile Handsets

USB Drives

MP3 Players (Flash Based)

Computing

Mobile Handsets = cards + embedded

Computing = SSD, Hybrid HDD, and PC Cache

Other = Portable gaming, Set Top Boxes, Other consumer


Consumer Market Opportunities2008 Forecast

Sources: Gartner, iSuppli

Digital Still Cameras GPS

Digital Video CamerasDigital Set-top Boxes

Handheld Video Gaming

Units (Millions) 129

YoY Growth 17%

NANDMB/system 375

YoY Growth 114%

DRAMMB/system 109

YoY Growth 11%

Units (Millions) 61

YoY Growth 81%

NANDMB/system 2,066

YoY Growth 37%

DRAMMB/system 62

YoY Growth 11%

Units (Millions) 16

YoY Growth 7%

NANDMB/system 632

YoY Growth 394%

DRAMMB/system 57

YoY Growth 42%

Units (Millions) 42

YoY Growth -1%

NANDMB/system 355

YoY Growth 3921%

Units (Millions) 21

YoY Growth 106%

NANDMB/system 383

YoY Growth 70%

DRAMMB/system 107

YoY Growth 13%

PMP / Mp3 Players

Units (Millions) 197

YoY Growth 12%

NANDMB/system 7,319

YoY Growth 136%

DRAMMB/system 44

YoY Growth 41%


Continued Technology InnovationLog C

ell

Siz

e

Today

NANDDRAM

34nm32Gb NAND

58nm1Gb DRAM

68nm1Gb DRAM


RealSSD: The Coming Revolution

2008 – 2012 Forecast

Micron Q4-08slides

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