SK hynix Inc. Reports First Quarter 2016 Results

Seoul, April 26, 2016

SK hynix Inc. (or ‘the Company’, www.skhynix.com) today announced financial results for its first quarter ended March 31, 2016.

The Company’s consolidated first quarter revenue was 3.66 trillion won decreased 17% and operating profit amounted to 562 billion won declined 43% from the previous quarter. Net income for the quarter was 448 billion won after income tax expenses and so on. Operating margin was 15% and net margin was 12%.

Quarter over quarter, DRAM bit shipments and the average selling price declined by 3% and 14% respectively due to a delay in demand recovery from the PC segment as well as slowdown in server and mobile DRAM market growth. For NAND Flash, the bit shipments and the average selling price decreased 11% and 12% each on account of sluggish demand from mobile devices.

SK Hynix will expand 2Znm to be applied to its mobile DRAM and concentrate on developing 1Xnm DRAM. For NAND Flash, SK hynix is planning to make a transition to 1Ynm process in planar NAND and raise its competitiveness in 3D technology. The Company will start to mass produce 48-layer 3D NAND Flash after completing the development within the latter half of this year.

Please note that the financial results discussed herein are preliminary and speak only as of March 31, 2016. 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.