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

June 30,

2015

March 31,

2015

June 30,

2014

Net income (loss)

$

(30,626)

$

(20,029)

$

15,010

Adjustments:

Depreciation and amortization

6,797

6,870

7,754

Interest expense, net

3,933

4,063

4,007

Income tax expenses (benefits)

(602)

1,133

656

Equity-based compensation expense

1,792

185

455

Foreign currency loss (gain), net

12,296

3,176

(38,424)

Derivative valuation loss, net

306

—

36

Restatement related expenses

5,168

7,058

8,477

Adjusted EBITDA

$

(936)

$

2,456

$

(2,029)

Adjusted EBITDA per common share:

- Diluted

$

(0.03)

$

0.07

$

(0.06)

Weighted average number of shares– Diluted

34,092,402

34,056,468

34,056,359

Net income (loss)

$

(30,626)

$

(20,029)

$

15,010

Adjustments:

Amortization of intangibles

—

—

371

Equity-based compensation expense

1,792

185

455

Foreign currency loss (gain), net

12,296

3,176

(38,424)

Derivative valuation loss, net

306

—

36

Restatement related expenses

5,168

7,058

8,477

Adjusted net loss

$

(11,064)

$

(9,610)

$

(14,075)

Adjusted net loss per common share:

- Diluted

$

(0.32)

$

(0.28)

$

(0.41)

Weighted average number of shares — Diluted

34,092,402

34,056,468

34,056,359