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,

2019

March 31,

2019

June 30,

2018

Net loss

$

(9,520)

$

(34,125)

$

(21,505)

Adjustments:

Interest expense, net

5,092

5,059

5,059

Income tax expense

812

841

1,521

Depreciation and amortization

8,202

8,303

8,012

EBITDA

4,586

(19,922)

(6,913)

Restructuring and other charges

1,130

2,894

—

Equity-based compensation expense

772

669

1,341

Foreign currency loss, net

10,431

9,997

27,449

Derivative valuation loss, net

80

56

1,632

Loss on early extinguishment of long-term borrowings, net

—

42

—

Others

—

585

—

Adjusted EBITDA

$

16,999

$

(5,679)

$

23,509

Net loss

$

(9,520)

$

(34,125)

$

(21,505)

Adjustments:

Restructuring and other charges

1,130

2,894

—

Equity-based compensation expense

772

669

1,341

Foreign currency loss, net

10,431

9,997

27,449

Derivative valuation loss, net

80

56

1,632

Loss on early extinguishment of long-term borrowings, net

—

42

—

Others

—

585

—

Adjusted Net Income (Loss)

$

2,893

$

(19,882)

$

8,917

Adjusted Net Income (Loss) per common share:

- Basic

$

0.08

$

(0.58)

$

0.26

- Diluted

$

0.08

$

(0.58)

$

0.23

Weighted average number of shares – Basic

34,245,127

34,194,878

34,420,654

Weighted average number of shares – Diluted

34,965,562

34,194,878

45,735,521