asps (dram) micron vs. market vie...december 2008 ©2008 micron technology, inc. | pc unit shipments...
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©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
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©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.
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©2008 Micron Technology, Inc. |December 2008
Ron FosterCFO and VP of Finance
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©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) ($0.45)
Shares in diluted EPS calc 773.3 772.9
*Including NRV
©2008 Micron Technology, Inc. |December 2008
Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09
ASP COGS
Micron DRAM ASP & Cost Trends
ChangeQ4-08 / Q1-09ASP/Gb (-34%)
COGS/Gb (-12%)
Note: COGS/Gb excludes NRV and other adjustments
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©2008 Micron Technology, Inc. |December 2008
Micron NAND ASP & Cost Trends
Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09
ASP COGS
ChangeQ4-08 / Q1-09ASP/GB (-24%)
COGS/GB (-14%)
Note: COGS/GB excludes NRV and other adjustments
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©2008 Micron Technology, Inc. |December 2008
Operating Expenses(Millions of US$)
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$195$184
$163$180
$170 $167$178
$134 $143
$112 $120 $116$107 $102
FQ3-07 FQ4-07 FQ1-08 FQ2-08 FQ3-08 FQ4-08 FQ1-09
R&D
SG&A
©2008 Micron Technology, Inc. |December 2008
Cash Flow From Operations(Millions of US$)
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
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©2008 Micron Technology, Inc. |December 2008
36%
23%
41%
2009F Capital Expenditures
$650 – 750 million
MicronIM Flash
TECH
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©2008 Micron Technology, Inc. |December 2008
Mark AdamsVP of Worldwide Sales
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©2008 Micron Technology, Inc. |December 2008
Memory Pricing
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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)
©2008 Micron Technology, Inc. |December 2008
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
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©2008 Micron Technology, Inc. |December 2008
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
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©2008 Micron Technology, Inc. |December 2008
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
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©2008 Micron Technology, Inc. |December 2008
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
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©2008 Micron Technology, Inc. |December 2008
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
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©2008 Micron Technology, Inc. |December 2008
Product Technology Innovation
Log C
ell
Siz
e
Today
NANDDRAM
34nm32Gb NAND
50nm1Gb DRAM
68nm1Gb DRAM
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©2008 Micron Technology, Inc. |December 2008
Channels & Alliances
Examples
Retail
OEM
Channel Distribution
PartnerAlliances
E-Commerce
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©2008 Micron Technology, Inc. |December 2008
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
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