SK hynix Inc. Reports Fiscal Year 2016 and Fourth Quarter Results

Seoul, January 26, 2017

SK hynix Inc. (or ‘the Company’, www.skhynix.com) today announced financial results for its fiscal year 2016 and fourth quarter ended December 31, 2016.

The Company’s consolidated sales of fiscal year 2016 totaled 17.2 trillion won while operating profit amounted to 3.28 trillion won and net income was 2.96 trillion won. Operating margin for the year was 19% and net margin was 17%.

Its consolidated fourth quarter revenue was 5.4 trillion won while operating profit amounted to 1.54 trillion won with operating margin of 29%. Net income for the quarter was 1.63 trillion won with net margin of 30%.

The Company set a record-high quarterly revenue thanks to favorable market conditions attributed to strong demand and product price hikes as well as the weak won during the fourth quarter. The operating profit went over 1 trillion won for the first time since third quarter 2015.

Quarter-over-quarter, DRAM bit shipments grew by 13% and the average selling price increased by 14%. The shipments rose due to strong demand from server and mobile sectors.

For NAND Flash, the bit shipments decreased by 3% but the average selling price rose by 14%. The Company’s sales increase in eMCP with a price premium led the ASP rise.

SK hynix will speed up to expand 2Znm DRAM and start to mass produce 1Xnm DRAM in this year to strengthen its profitability. Also, the Company will set up a cleanroom on the upper floor of M14 to meet NAND Flash market growth. In addition, it is planning to finish to develop then mass produce 72-layer 3D NAND.

Please note that the financial results discussed herein are preliminary and speak only as of December 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.

Seoul, January 26, 2017

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.