MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of US dollars)

(Unaudited)

Three Months Ended

March 31,

2013

March 31,

2012

Cash flow from operating activities

Net income (loss)

$

(7,405)

$

15,263

Adjustments to reconcile net income to net cash provided by operating

   activities

Depreciation and amortization

8,522

7,474

Provision for severance benefits

4,229

4,703

Amortization of debt issuance costs and original issue discount

283

242

Loss (gain) on foreign currency translation, net

2

28,280

(12,824)

Gain on disposal of property, plant and equipment, net

—

(269)

Loss on disposal of intangible assets, net

1

11

Restructuring and impairment charges

618

—

Stock-based compensation

420

458

Other

635

123

Changes in operating assets and liabilities

Accounts receivable

(6,409)

1,339

Inventories

2,022

(2,860)

Other receivables

(1,278)

(4,024)

Other current assets

2,014

8,536

Deferred tax assets

2,182

871

Accounts payable

2,290

12,581

Other accounts payable

9,734

(298)

Accrued expenses

(1,125)

9,886

Other current liabilities

(5,838)

2,225

Payment of severance benefits

(627)

(2,323)

Other

(1,004)

(1,261)

Net cash provided by operating activities

37,544

39,853

Cash flow from investing activities

Decrease in restricted cash

92

2,995

Proceeds from disposal of plant, property and equipment

—

273

Purchase of plant, property and equipment

(32,927)

(24,758)

Payment for intellectual property registration

(142)

(190)

Payment for acquisition

—

(8,642)

Decrease in short-term financial instruments

—

173

Collection of guarantee deposits

—

31

Payment of guarantee deposits

(741)

(178)

Other

8

(48)

Net cash used in investing activities

(33,710)

(30,344)

Cash flow from financing activities

Proceeds from issuance of common stock

1,006

108

Repayment of obligations under capital lease

—

(1,510)

Acquisition of treasury stock

(6,000)

(11,935)

Net cash used in financing activities

(4,994)

(13,337)

Effect of exchange rates on cash and cash equivalents

1,909

(1,660)

Net increase (decrease) in cash and cash equivalents

749

(5,488)

Cash and cash equivalents

Beginning of the period

182,238

162,111

End of the period

$

182,987

$

156,623