SK hynix Inc. Reports First Quarter 2015 Results

Seoul, April 23, 2015

SK hynix Inc. (or ‘the Company’, www.skhynix.com) today announced financial results for its first quarter 2015 ended March 31, 2015.

The consolidated first quarter revenue was 4.8 trillion won dropped 6% from 5.1 trillion won of the previous quarter due to declined shipment and product prices according to seasonal weak demand. Nevertheless, year-on-year the revenue rose 29% as well as operating profit totaled 1.59 trillion won increased 50%.

Operating margin for the quarter was 33% improved from 32% of the previous quarter and 28% of the last year thanks to elevated cost efficiency through enhanced products portfolio and yield rate. Net income amounted to 1.3 trillion won with net margin of 27% reflecting income tax expenses.

Quarter-over-quarter, DRAM bit shipments and the average selling price decreased 5% and 4% respectively. The shipments were affected by weak demand from PC and consumer DRAM although the demand from server DRAM counterbalanced partially. The average selling price of mobile and server DRAM relatively remained stable compared to weak PC DRAM price.

For NAND Flash, the bit shipments remained stable but the average selling price dropped 7%. The shipments stabilized owing to continuous effect of brand new mobile gadgets.

SK hynix will strengthen its cost competitiveness by expanding the proportion of 2Ynm DRAM sharply and finishing preparing for successful mass production of 2Znm DRAM in the second quarter. Plus, the Company will increase the portion of DDR4 products in server and mobile DRAM markets to catch up with the market transition.

For NAND Flash, SK hynix is to launch 1Xnm TLC during this ongoing quarter and gradually increase the manufacturing ratio of it. Moreover, the Company will complete verification processes of 3D NAND products with clients through pilot-scale production within this year.

FY2015 Q1 Earnings

Consolidated BasisUnit : Billion KRW

	2015 Q1	2014 Q4	QoQ	2014 Q1	YoY
Revenue	4,818	5,148	-6%	3,743	29%
Operating Profit	1,589	1,667	-5%	1,057	50%
Operating Profit Margin	33%	32%	1%p	28%	5%p
Net Income	1,295	1,624	-20%	802	61%

※ 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 March 31, 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.