SK hynix Inc. Reports Fiscal 2021 and Fourth Quarter Results

Seoul, South Korea, January 27, 2022 /PRNewswire/ — SK hynix Inc. (or “the Company”, www.skhynix.com) today announced financial results for its 2021 fiscal year ended December 31, 2021. Consolidated revenue for the 2021 financial year has been 42.998 billion wonwhile the operating result amounted to 12.41 trillion won and the net revenue 9.616 trillion won. Operating margin for the year was 29% and the net margin was 22%.

SK hynix has achieved record annual sales since its inception. This surpasses revenues from *2018 when the semiconductor market was at its biggest boom.

Despite uncertain market conditions such as supply chain disruptions, the demand for contactless computer technology has increased. Based on its technology and qualitative competitiveness, SK hynix has succeeded in supplying its products proactively, achieving record annual sales.

For DRAM, SK hynix has focused on securing profitability by flexibly meeting PC and server application demands in the DRAM industry. In addition, by developing the industry’s first DDR5 and HBM3 DRAMs, SK hynix has ensured leading quality competitiveness in high value-added next-generation products.

In addition, thanks to the competitiveness of 128-layer NAND Flash products, the NAND Flash business, which managed to turn into surplus in the third quarter of last year, also recorded a surplus on an annual basis by registering a sales growth rate which far exceeded the average level of the market.

Consolidated revenue for the fourth quarter of 2021 has been 12,377 billion won while the operating result amounted to 4.220 billion won. Sales exceeded 12 trillion won on a quarterly basis for the first time in history, and operating profit continues to reach 4 trillion won for two consecutive quarters.

SK hynix expects supply chain issues to gradually improve from the second half of this year and market demand for memory products to increase.

With this in mind, SK hynix has decided to pursue its strategy of focusing on profitability while containing market volatility by flexibly managing its DRAM inventory.

For NAND Flash, SK hynix will continue its large-scale growth. With the launch of its US subsidiary Solidigm after the closing of the first phase of the Intel NAND and SSD business acquisition last year, SK hynix expects its NAND Flash sales to double from last year.

SK hynix has decided to increase its dividend per share to 1,540 wonup more than 30% compared to 1,170 won one year earlier. Additionally, SK hynix will apply a new dividend policy from this year until 2024, with a fixed dividend per share raised from 1,000 won at 1,200 won. SK hynix will maintain its policy of distributing an additional 5% of **Free Cash Flow (FCF). The Company also said it will use approximately 50% of the FCF created over the next three years as shareholder return funds and will consider repurchasing treasury shares depending on the situation.

Meanwhile, SK hynix will launch a round of new recruitment of university graduates and experienced employees in the first quarter of this year. Compared to previous years, the Company has decided to broaden the recruitment plan to prepare for new growth drivers to come, including the creation of the Yongin Semiconductor Cluster, the launch of the American subsidiary Solidigm and the large-scale operation scale of the Icheon M16 Fab. Areas of new hires include process, device, design, test, packaging, SoC, software, data science, product planning and strategy, and others, and recruitment schedule will be published next month on the website.

* SK hynix achieved an annual turnover of 40.445 billion wonand the operating profit of 20,844 billion won in 2018.

** Free Cash Flow (FCF): the cash flow generated by commercial activities subtracts the amount spent on the acquisition of property, plant and equipment

– The the financial information of the results is written on the basis of K-IFRS.

– The the financial information of the results is written on the basis of K-IFRS.

Please note that the financial results discussed here are preliminary and speak only as of the 31st of December, 2021. Readers should not assume that this information remains operative in the future. Additionally, this information may include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. For a more in-depth discussion of these risks and uncertainties, readers should refer to the filings of SK hynix Inc. with the Korea Stock Exchange. This document is neither an offer to sell nor a solicitation of an offer to sell any securities of SK hynix Inc.

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s leading semiconductor supplier offering dynamic random access memory (“DRAM”) chips, flash memory (“NAND Flash”) chips and sensors CMOS image (“CIS”) for a wide range of distinguished customers worldwide. The shares of the Company are traded on the Korea Stock Exchange and the shares of Global Depository are listed on the Luxembourg Stock Exchange. More information about SK hynix can be found at www.skhynix.com, news.skhynix.com.

SOURCE SK hynix Inc.