Magnachip

• 30-year operating history

• 3,500 pending and registered patents
• Distinctive analog and mixed-signal technology platform
• 2,400+ product offerings
• 419 new products shipped in 2010
• Revenue growth: 2010 revenue grew 38% to $770M.
• Margin expansion: 2010 adjusted EBITDA margin of 21%.
• Free cash flow generation: $172M cash balance (12/31).
• New customers: Shipped products to 4 new customers and began product development
for 5 new customers in 2010.
• New technologies: 31 new technologies offered in 2010.
• Remain leading supplier to LG for display.
• 51% of revenue generated outside Korea including 18% in US/Europe

3G
Baseband (Discrete & Analog) $11.25
Apps Processor $8.25
Memory $8.50
Transceiver $6.50
Power Amplifier $1.75
LCD controllers/drivers $2.25
CMOS/CCD sensors $3.00
4G
Baseband (Discrete & Analog) $20.51
Apps Processor $12.00
Memory $13.25
Transceiver $13.50
Power Amplifier $3.25 Growth= 86%
LCD controllers/drivers $2.50 Growth= 11%
CMOS/CCD sensors $3.75

• The company has been able to grow gross margins and adjusted EBITDA margins in b
oth growth and contraction years.

• Power solutions started in Korea and expanded to global market within two years
o Power customers include Samsung, LG, HP, Acer, Lenovo, Dell, Flextronics
, Compal, Skyworth, Wistron, Quanta Computer
o Power revenue has gone from $5M in 2008, and grown each quarter to $57M
annual revenue 2010
o 4% of business from EU, 28% from Taiwan, 37% from China, and 31% Korea.
o
• Biggest customers in display are LG, Samsung, & Sharp
• Foundry customers include Cirrus Logic, Wolfson Microelectronics, ELAN, Pericom,
Sitronix, Abov Semiconductor
• Magna’s foundry business grew from 261M to 405M revenue ’09-’10. (55% growth)
o The foundry industry grew from $22B to $31B (40% growth).
o The semi industry grew from $229B to $302B (32% growth).
o Their US/Europe foundry business grew from $35M 1h’09 to $63M 1H’10 (80%).
• AMOLED capabilities-an area of growth?

• Total semiconductor spending of top 6 customers equals $52B, $9B of Analog & Pow
er.
• MagnaChip is beginning to offer Enhanced Process Design Kit (PDK) for 0.18um and
0.35um BCD Technology.
• eMemory is collaborting with MagnaChip to offer 0.11um HV embedded NVM technolog
y.
o *** Check on status of project ***
• Analog semiconductors remain a large part of their semiconductor fabricating rev
enue.
• The 10-year CAGR of analog units was 3.8% (1999-2009). Units declined 8% and AS
Ps decreased by $0.01 YoY to $0.47 in 2009.
o Barclay’s forecast for 2010 is 22% YoY growth in the analog IC market with
a 27% increase in units and a 4% decline in ASP ($0.45).
o Their forecast for 2011 is 7% YoY growth with an 11% increase in units a
nd a decline of 4% in ASP ($0.43).