SK hynix Inc. Reports Third Quarter 2015 Results

Seoul, October 22, 2015

SK hynix Inc. (or ‘the Company’, www.skhynix.com) today announced financial results for its third quarter 2015 ended September 30, 2015.

The consolidated third quarter revenue was 4.9 trillion won increased 6% from 4.6 trillion won of the previous quarter thanks to expanded sales portion of products applicable to mobile IT devices and favorable exchange rate environment.

The operating profit amounted to 1.38 trillion won which was at a similar level to that of the previous quarter with operating margin of 28%. Net income totaled 1.05 trillion won with net margin of 21% reflecting income tax expenses.

Over the previous quarter, DRAM and NAND Flash bit shipments increased 11% and 15% but the average selling price slipped 11% and 15% respectively.

SK hynix is planning to meet steadily rising demand of mobile DRAM and expand the proportion of DDR4 and LPDDR4 continuously. For NAND Flash, the Company will constantly enhance its cost competitiveness of 1Xnm TLC. Plus, it will complete the development of 48-layer 3D NAND Flash within this year while expanding NAND solutions including SSD to gear up for upcoming market demand of the 3D NAND next year.

FY2015 Q3 Earnings

Consolidated BasisUnit : Billion KRW

	2015 Q3	2015 Q2	QoQ	2014 Q3	YoY
Revenue	4,925	4,639	+6%	4,312	+14%
Operating Profit	1,383	1,375	+1%	1,301	+6%
Operating Profit Margin	28%	30%	-2%p	30%	-2%p
Net Income	1,048	1,108	-5%	1,095	-4%

※ The financial information of the earnings is written based on K-IFRS.

Please note that the financial results discussed herein are preliminary and speak only as of September 30, 2015. Readers should not assume that this information remains operative at a later time. In addition, this information may include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. For further discussion of these risks and uncertainties, readers should refer to SK hynix Inc.’s filings with the Korea Exchange. This document is neither an offer to sell nor a solicitation of an offer to sell any security of SK hynix Inc.

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), Flash memory chips (“NAND Flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com.