MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(Unaudited)

Three Months Ended 

March 31,
2023

March 31,
2022

Cash flows from operating activities

Net income (loss)   

$        (21,470)

$          9,528

Adjustments to reconcile net income (loss) to net cash provided by operating activities

Depreciation and amortization     

4,357

3,891

Provision for severance benefits  

2,330

1,670

Loss on foreign currency, net      

9,082

6,380

Provision for inventory reserves 

1,138

145

Stock-based compensation          

1,120

1,638

Other, net     

237

161

Changes in operating assets and liabilities

Accounts receivable, net              

2,973

(1,213 )

Inventories   

1,062

1,456

Other receivables         

2,376

667

Other current assets     

1,456

(6,829 )

Accounts payable        

1,904

538

Other accounts payable

(1,424 )

(702 )

Accrued expenses        

7,600

187

Accrued income taxes  

(2,923 )

(2,346 )

Other current liabilities

(596 )

(711 )

Other non-current liabilities         

(169 )

(73 )

Payment of severance benefits     

(871 )

(1,389 )

Other, net     

(306 )

(178)

Net cash provided by operating activities               

7,876

12,820

Cash flows from investing activities

Proceeds from settlement of hedge collateral               

1,155

1,829

Payment of hedge collateral         

(1,093 )

(2,891 )

Purchase of property, plant and equipment  

(135 )

(944 )

Payment for intellectual property registration              

(74 )

(59 )

Payment of guarantee deposits

(3,482 )

(79 )

Other, net     

19

2

Net cash used in investing activities       

(3,610 )

(2,142 )

Cash flows from financing activities

Proceeds from exercise of stock options     

9

1,781

Acquisition of treasury stock       

(12,264 )

(830 )

Repayment of financing related to water treatment facility arrangement      

(126 )

(134 )

Repayment of principal portion of finance lease liabilities           

(24 )

(16 )

Net cash provided by (used in) financing activities

(12,405 )

801

Effect of exchange rates on cash and cash equivalents           

(5,253 )

(6,105 )

Net increase (decrease) in cash and cash equivalents             

(13,392 )

5,374

Cash and cash equivalents

Beginning of the period

225,477

279,547

End of the period

$      212,085

$      284,921