Micron Q4-08slides

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Micron Q4-08slides

  1. 1. Micron Technology Financial Conference Call Fourth Quarter of Fiscal 2008 © 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. | October 2008 2 MICRON CONFIDENTIAL
  2. 2. 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. © 2008 Micron Technology, Inc. | October 2008 3
  3. 3. Ron Foster CFO and VP of Finance October 2008 © 2008 Micron Technology, Inc. | 4
  4. 4. Financial Summary Q4 -2008 Q3 -2008 Dollars in millions, except per share 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 October 2008 © 2008 Micron Technology, Inc. | 5
  5. 5. Financial Summary 2008 2007 Dollars in millions, except per share 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 October 2008 © 2008 Micron Technology, Inc. | 6
  6. 6. Operating Expenses Dollars in millions October 2008 © 2008 Micron Technology, Inc. | 7
  7. 7. Capital Expenditures Dollars in millions $4,090 $2,916 October 2008 © 2008 Micron Technology, Inc. | 8
  8. 8. 2008 Capital Expenditures Dollars in millions Micron IMFS TECH IMFT $2,916 October 2008 © 2008 Micron Technology, Inc. | 9
  9. 9. 2009F Capital Expenditures Micron IMFlash TECH $1.0 – 1.3 billion October 2008 © 2008 Micron Technology, Inc. | 10
  10. 10. Mark Adams VP of Worldwide Sales October 2008 © 2008 Micron Technology, Inc. | 12
  11. 11. Memory Pricing NAND & DRAM Average (Trade) ASPs 1 Gb 128Mx8 667MHz DDR2 NAND 8Gb 1024Mx8 (MLC) $3.75 $3.25 $2.75 $2.25 $1.75 $1.25 January '08 March '08 August '08 February '08 July '08 December '07 September '08 May '08 April '08 June '08 Source: DRAM eXchange October 2008 © 2008 Micron Technology, Inc. | 13
  12. 12. PC Unit Shipments vs. PC Memory Content Notebook Units Desktop Units Desktop MB/System Notebook MB/System 100 3000 80 2400 Desktop, Notebook Units in Millions Average MB per System 60 1800 40 1200 Growth Growth Growth ’06 – ’07 ’07 – ’08 ’08 – ’09 20 600 56% 56% 33% 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Average Average Average Average Average Average Average Average Average Average Average Average 409 MB 555 MB 772 MB 1207 MB 1207 MB 1856 MB 1882 MB 2451 MB 413 MB 555 MB 772 MB 2499 MB 0 0 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 All data is in calendar quarters Q2-08 – Q4-09 Forecast Source: iSuppli October 2008 © 2008 Micron Technology, Inc. | 14
  13. 13. Micron’s Module Density Transition DDR2 100% 4GB 4GB 8GB DDR2 Module 4GB 4GB 2GB 4GB DDR2 Module 75% 2GB 2GB 2GB 2GB DDR2 Module 50% 1GB DDR2 Module 1GB 1GB 25% 1GB 512MB DDR2 Module 1GB 256MB DDR2 Module 0% Q1 (FY 2008) Q2 (FY 2008) Q3 (FY 2008) Q4 (FY 2008) October 2008 © 2008 Micron Technology, Inc. | 15
  14. 14. Handset Memory Content 2000 1,916 DRAM Embedded NAND Flash Cards 1500 Average MB per System 1,110 1,106 DRAM NAND* Flash Cards 53% 165% 128% 1000 YoY Growth YoY Growth YoY Growth 2007-2008 2007-2008 2007-2008 698 497 500 322 188 141 74 52 36 24 0 2007 2008 2009 2010 * Embedded Only 2008 – 2010 Forecast Sources: Gartner, iSuppli, Micron Market Research October 2008 © 2008 Micron Technology, Inc. | 16
  15. 15. Total NAND Market by Application 80,000 70,000 Other 60,000 Non-Mobile Flash Cards 50,000 Billions of MB Mobile Handsets 40,000 30,000 USB Drives 20,000 MP3 Players (Flash Based) 10,000 Computing - 2007 2008 2009 2010 2011 2012 Mobile Handsets = cards + embedded Computing = SSD, Hybrid HDD, and PC Cache Other = Portable gaming, Set Top Boxes, Other consumer Source: iSuppli, Gartner, Micron Market Research October 2008 © 2008 Micron Technology, Inc. | 17
  16. 16. Consumer Market Opportunities 2008 Forecast Digital Still Cameras GPS Handheld Video Gaming Units (Millions) 42 129 Units (Millions) Units (Millions) 61 YoY Growth -1% 17% YoY Growth YoY Growth 81% NAND NAND NAND MB/system 355 375 MB/system MB/system 2,066 YoY Growth 3921% YoY Growth 114% YoY Growth 37% DRAM DRAM 109 MB/system MB/system 62 YoY Growth 11% YoY Growth 11% PMP / Mp3 Players Digital Set-top Boxes Digital Video Cameras Units (Millions) 197 Units (Millions) 21 Units (Millions) 16 YoY Growth 12% YoY Growth 106% YoY Growth 7% NAND NAND NAND MB/system 7,319 MB/system 383 MB/system 632 YoY Growth 70% YoY Growth 136% YoY Growth 394% DRAM DRAM DRAM MB/system 44 MB/system 107 MB/system 57 YoY Growth 41% YoY Growth 13% YoY Growth 42% Sources: Gartner, iSuppli October 2008 © 2008 Micron Technology, Inc. | 18
  17. 17. Continued Technology Innovation 68nm 1Gb DRAM Log Cell Size 58nm 1Gb DRAM 34nm 32Gb NAND Today DRAM NAND October 2008 © 2008 Micron Technology, Inc. | 19
  18. 18. RealSSD: The Coming Revolution 2008 – 2012 Forecast October 2008 © 2008 Micron Technology, Inc. | 20

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