MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET INCOME

(In thousands of US dollars, except share data)

(Unaudited)

Three Months Ended

March 31,
2015

December 31,
2014

March 31,
2014

Net loss

$

(20,029)

$

(63,830)

$

(21,605)

Adjustments:

Depreciation and amortization

6,870

7,143

7,268

Interest expense, net

4,063

4,134

4,070

Income tax expense (benefit)

1,133

(247)

803

Restructuring and impairment charges

—

10,269

—

Equity-based compensation expense

185

407

617

Foreign currency loss, net

3,176

30,161

9,407

Derivative valuation loss (gain), net

—

(49)

16

Restatement related expenses

7,058

12,145

4,797

Adjusted EBITDA

$

2,456

$

133

$

5,373

Adjusted EBITDA per common share:

- Diluted

$

0.07

$

0.00

$

0.16

Weighted average number of shares - Diluted

34,056,468

34,056,413

34,052,875

Net loss

$

(20,029)

$

(63,830)

$

(21,605)

Adjustments:

Restructuring and impairment charges

—

10,269

—

Equity-based compensation expense

185

407

617

Amortization of intangibles

—

120

357

Foreign currency loss, net

3,176

30,161

9,407

Derivative valuation loss (gain), net

—

(49)

16

Restatement related expenses

7,058

12,145

4,797

Adjusted net loss

$

(9,610)

$

(10,777)

$

(6,411)

Adjusted net loss per common share:

- Diluted

$

(0.28)

$

(0.32)

$

(0.19)

Weighted average number of shares - Diluted

34,056,468

34,056,413

34,052,875