MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(Unaudited)

Three Months

Ended 

Nine Months
Ended

September 30,
2023

September 30,
2023

September 30,
2022

Cash flows from operating activities

Net loss  

$      (5,165)

$   (30,582)

$     (11,007)

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

Depreciation and amortization     

4,081

12,583

11,225

Provision for severance benefits  

1,267

5,358

5,163

Loss on foreign currency, net      

5,415

14,532

66,335

Provision for inventory reserves 

1,914

3,035

7,730

Stock-based compensation          

2,171

5,383

4,487

Other, net     

230

680

631

Changes in operating assets and liabilities

Accounts receivable, net              

(6,067)

(6,409)

7,805

Inventories   

(1,276)

3,635

(13,208)

Other receivables         

586

4,993

17,115

Other current assets     

(2,686)

(2,291)

(14,117)

Accounts payable        

3,186

6,066

(14,792)

Other accounts payable

(250)

(6,738)

(6,215)

Accrued expenses        

(485)

619

5,866

Accrued income taxes  

(42)

(3,014)

(11,483)

Other current liabilities

(270)

(741)

(1,583)

Other non-current liabilities         

(65)

(279)

523

Payment of severance benefits     

(455)

(6,183)

(4,181)

Other, net     

(354)

(841)

(50)

Net cash provided by (used in) operating activities

1,735

(194)

50,244

Cash flows from investing activities

Proceeds from settlement of hedge collateral               

—

3,335

2,805

Payment of hedge collateral         

(568)

(3,154)

(15,282)

Purchase of property, plant and equipment  

(762)

(2,280)

(11,812)

Payment for intellectual property registration              

(67)

(230)

(301)

Collection of guarantee deposits  

3,539

4,984

242

Payment of guarantee deposits    

(369)

(7,276)

(2,075)

Other

—

—

550

Net cash provided by (used in) investing activities

1,773

(4,621)

(25,873)

Cash flows from financing activities

Proceeds from exercise of stock options     

—

27

1,786

Acquisition of treasury stock       

(6,247)

(43,087)

(5,065)

Repayment of financing related to water treatment facility arrangement      

(123)

(371)

(381)

Repayment of principal portion of finance lease liabilities           

(23)

(69)

(50)

Net cash used in financing activities       

(6,393)

(43,500)

(3,710)

Effect of exchange rates on cash and cash equivalents           

(3,425)

(10,518)

(49,377)

Net decrease in cash and cash equivalents              

(6,310 )

(58,833)

(28,716)

Cash and cash equivalents

Beginning of the period          

172,954

225,477

279,547

End of the period    

$   166,644

$   166,644

$     250,831