CORPORATE PRESENTATION
NOVEMBER 2010
VISHAY TODAY GROWTH MARKETS Q3 RESULTS LOOKING AHEADlooking statements.
Forward-looking statements are subject to various risks and uncertainties that could cause actual results to vary materially from those anticipated..
These risks and uncertainties are described in the Company’s annual report on Form 10-K for the year ended December 31, 2009, in the sections titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Risk Factors section in Part I.
The Company undertakes no obligation to update any forward-looking statements.
Measurements such as adjusted gross profit, adjusted operating profit, adjusted income from continuing operations and free cash are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. Management believes that adjusted gross profit, adjusted operating profit, adjusted income from continuing operations and free cash, “non-GAAP” measures, are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Reconciling items to arrive at adjusted gross profit, adjusted operating profit, adjusted income from continuing operations and free cash represent significant charges or credits that are important to an understanding of the Company’s intrinsic operations. These reconciling items are more fully
described in the Company’s annual report on Form 10-K and its quarterly reports presented on Forms 10-Q. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies.
VISHAY TODAY
GROWTH MARKETS
Q3 RESULTS
VISHAY — A PIONEER OF THE
ELECTRONIC COMPONENTS INDUSTRY
Founded in 1962 by Dr. Felix Zandman, based on an innovative resistor technology
Since 1985, strategy of accelerated growth throughsynergistic acquisitions and focused R&D to become a true broad-liner on a worldwide basis
Vishay components used today by virtually all major manufacturers of electronic products worldwideTHE VISHAY VISION
Offer innovative products and technologies to meet current and future market needs
Be a broad-liner for discrete electronic componentsoffering “one-stop shop” service and custom solutions for all market segments in all regions
Be a leading supplier to our customers
Grow at a faster rate than electronics markets Vishay participates inVISHAY — KEY STRENGTHS
Strong track record of growth through acquisitions
Broad market penetration in all industry segments and in all regions
Global technology leader in discrete semiconductors and passive components
Current and future customer-driven solutions for growth provided by R&D
Strong free cash flow generation and financial flexibility Net cash positive
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
GROWTH THROUGH ACQUISITIONS
Roederstein Sprague Sfernice Draloric Vitramon Siliconix, Telefunken General Semiconductor, Infineon infrared Dale BCcomponents SALES IN MILLION International Rectifier PCS YEAR Kemet wet tantalum Vishay excl. VPG Approx. $2,600M Spin-off Vishay Precision Group
BROAD MARKET PENETRATION
END MARKETS
SALES CHANNELS GEOGRAPHY
VISHAY REVENUES YTD SEP 2010
EXCL. VISHAY PRECISION GROUP
COMPUTING 20% CONSUMER9% AUTOMOTIVE 15% TELECOM 12% INDUSTRIAL 25% POWER SUPPLIES 10% MILITARY/AERO 6% MEDICAL 3% AMERICAS 23% EUROPE 36% ASIA 41% EMS 10% OEM 39% DISTRIBUTION 51%
BROAD CUSTOMER BASE
OEM
EMS DISTRIBUTION
BALANCED PRODUCT PORTFOLIO
44% PASSIVES - 56% SEMICONDUCTORS VISHAY REVENUES YTD SEPTEMBER
2010
EXCL. VISHAY PRECISION GROUP
MOSFETS 24% DIODES 23% INFRARED OPTO 9% RESISTORS INDUCTORS 24% CAPACITORS 20%
BROADEST LINE OF DISCRETE SEMICONDUCTORS
AND PASSIVE COMPONENTS
= Major Position= Minor Position Source: Company estimates
DIODES MOSFETs MAGNETICS
Diodes, Rectifiers MOSFETs Infrared Compo-nents Opto-couplers LEDs Aluminum, Ceramic Power, Film, Tantalum Film, Power SMD Resistors Variable, Sensors Inductors, Trans-formers VISHAY Avago AVX Fairchild Int. Rectifier Infineon KEMET KOA Murata Nichicon NXP (Philips) ON Semi Panasonic Rohm Sharp ST Micro TDK/EPCOS Toshiba Yageo
SEMICONDUCTORS PASSIVE COMPONENTS
#1 worldwide in wirewound and other power resistors #1 worldwide in leaded film resistors
#1 worldwide in thin film SMD resistors
#1 worldwide in wet and conformal-coated tantalum capacitors
#1 worldwide in capacitors for power electronics
TECHNOLOGY LEADER IN
PASSIVE COMPONENTS
#1 worldwide in power rectifiers
#1 worldwide in low-voltage power MOSFETs #1 worldwide in infrared components
TECHNOLOGY LEADER IN
SEMICONDUCTORS
NATURAL HEDGE
AGAINST USD-EUR CURRENCY FLUCTUATIONS
Vishay’s revenues earned and costs incurred in Euro nearly offset down to operating profit
Euro weakening vs. US dollar:• Revenues denominated in EUR are reported lower in USD (semblance of low growth)
• Costs incurred in EUR are reported lower in USD
Euro strengthening vs. US dollar:• Revenues denominated in EUR are reported higher in USD (semblance of high growth)
• Costs incurred in EUR are reported higher in USD
Currency exposure does exist in countries where we manufacture products but have less revenues:
DURING THE CRISIS
Maintained complete focus on generating and conserving cash
Ensured financial liquidity
Reduced permanently break-even point by $400-$500 million
Restructuring cash costs of $48 million in 2009
No material restructuring charges expected for 2010 and 2011: all defined restructuring programs implemented or announced
ADJUSTED GROSS MARGIN
MILLIONS USD % OF SALES
0% 5% 10% 15% 20% 25% 30% 35% 40% 0 100 200 300 400 500 600 700 800 02 03 04 05 06 07 08 09 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 100 200 300 400 500 600 700 800 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
OPERATING MARGIN
MILLIONS USD % OF SALES
2008: Operating Loss was ($1,648.7), see reconciliation schedule -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% (150) (100) (50) 0 50 100 150 200 250 300 02 03 04 05 06 07 08 09 -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% (150) (100) (50) 0 50 100 150 200 250 300 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
ADJUSTED OPERATING MARGIN
MILLIONS USD % OF SALES
-5% -2% 1% 4% 7% 10% 13% 16% 19% 22% 25% 28% (50) (20) 10 40 70 100 130 160 190 220 250 280 02 03 04 05 06 07 08 09 -5% -2% 1% 4% 7% 10% 13% 16% 19% 22% 25% 28% (50) (20) 10 40 70 100 130 160 190 220 250 280 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
RECONCILIATION OF GAAP TO ADJUSTED
in millions USD Q310 Q2 10 Q1 10 2009 Q4 09 Q3 09 Q2 09 Q1 09 2008 2007 2006 2005 2004 2003 2002
Reconciling items affecting gross margin:
Loss on purchase commitments, Ta
write-downs 6 16 (1) 17 18 133
Product quality claims 3
Reconciling items affecting operating margin:
Restructuring and severance costs 38 3 3 12 19 63 15 40 30 47 29 19
Asset write-downs 1 1 5 4 7 11 27 1 12
Settlement agreement gain (28) (28)
Executive employment agreement charge 58 58
Impairment of goodwill and indefinite-lived
intangibles 1,723
Terminated tender offer expenses 4
Contract termination charge 19
Siliconix transaction-related charges 4
Purchased in-process R&D 10 2
Environmental remediation 4
CAPITAL EXPENDITURES
0 50 100 150 200 250 300 350 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 FC 10STRONG GENERATION OF FREE CASH
CASH FLOWS FROM OPERATIONS LESS CAPITAL EXPENDITURES PLUS PROCEEDS FROM SALE OF PROPERTY AND EQUIPMENT
($100) ($50) $0 $50 $100 $150 $200 $250 $300 $350 ($100) ($50) $0 $50 $100 $150 $200 $250 $300 $350 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 FC 10 MILLIONS MILLIONS
NET CASH POSITIVE
in millions (USD) Outstanding
Debt Comments Interest
Revolving Debt (up to $250M) 125 Available through April 20, 2012 LIBOR plus 1.875%
Term Loan 75 $37.5 M due January 1, 2011
$37.5 M due July 1, 2011 LIBOR plus 2.5%
Exchangeable Unsecured Notes 95 Due 2102 or in 92 years LIBOR
Other Debt 4 $3.5 M term loan maturing 2014 LIBOR plus 3.45%
TOTAL DEBT 299
CASH AND CASH EQUIVALENTS 745
VISHAY TODAY
GROWTH MARKETS
Q2 RESULTS
ENERGY SAVING THROUGH
HYBRID AND FULLY ELECTRIC VEHICLES
New functions in hybrid cars include inverters and advanced motor control and battery management
Vishay offers key components—both custom and off-the-shelf—for hybrid applications such as:
DC-links: film capacitor modules Inverters: IGBT modules
Battery controls: shunt and discharge resistors, MOSFETs
20% CAGR for hybrids expected 2009-2012
APPLICATION EXAMPLE FOR
HYBRIDS: INVERTER
DC-Link: film capacitor module
MOSFETs, optocouplers
Intelligent IGBT modules: MOSFETs, TANDEM diodes,
MOSFETs, IHLP® inductors, TMBS® Schottky rectifiers, TVS diodes, VISHAY ADVANTAGES: Ability to Customize
Superior Switching Performance
Good Thermal Performance Battery shunt
current sense resistors High current inductors
ENERGY SAVING THROUGH
START/STOP TECHNOLOGY IN CARS
Vishay offers key components—both custom and off-the-shelf—for start/stop applications such as:
DC boost converters: power inductors, MOSFETs, Schottky diodes, electrolytic capacitors
B6 bridges and current sensors: MOSFETs, customized Power Metal Strip® resistors
50% of all new cars expected to be equipped with
start/stop technology by 2012
APPLICATION EXAMPLE FOR
START/STOP: DC/DC CONVERTER
VISHAY ADVANTAGES:
Low Forward Loss
Excellent Stability
Transient Immunity
Power Metal Strip® current sense resistors
Electrolytic boost capacitors
IHLP® inductors
High break down voltage dividers
ALTERNATIVE ENERGY
WIND AND SOLAR
Vishay offers key components, both custom and off-the-shelf, for solar and wind energy applications such as:
Inverters: MOSFETs, intelligent IGBT and SCR modules, snap-in electrolytic capacitors, discharge and chopper resistors
Grid filters: AC power factor correction capacitors Junction boxes: bypass power Schottky diodes
WIND AND SOLAR ENERGY
VISHAY ADVANTAGES:
Long Life, High Reliability
High Power Density
Safety Approvals
Power capacitors Power Schottky
by-pass diodes
Discharge and chopper resistors
Phase-leg thyristors, Snap-in & screw terminal
VISHAY TODAY
GROWTH MARKETS
Q3 RESULTS
HIGHLIGHTS Q3 2010
Revenues for Q3 10 were $694M or 7.0% higher than Q2 10 when excluding VPG
Gross margins of 31.5% were highest since 2001
Operating margins improved to 18.9% of sales in Q3 10
Cash from operations YTD was $339M
Capital expenditures YTD were $80M
Inventories turns at distribution were 5.0 and POS increased 5.2% quarter over quarter
FINANCIAL RESULTS
in millions, except per share amounts Q3 2010 Q3 2009 Q2 2010
Net revenues $694 $525 $702 Gross profit $218 $104 $211 31.5% 19.9% 30.0% Operating income $131 $11 $101 18.9% 2.1% 14.4% Net earnings $90 $2 $77 EPS $0.47 $0.01 $0.40
ADJUSTED FINANCIAL RESULTS
in millions, except per share amounts Q3 20101 Q3 2009 Q2 20101
Net revenues $694 $525 $702
Gross profit $218 $104 $211
31.5% 19.9% 30.0%
Adjusted operating income $131 $15 $101
18.9% 2.8% 14.4%
Adjusted net earnings $90 $5 $77
Adjusted EPS $0.47 $0.03 $0.40
in millions Q3 2010 Q3 2009 Q2 2010
GAAP NET EARNINGS (LOSS) $90 $2 $77
Reconciling items affecting operating margin:
Restructuring and severance costs - $3
-Settlement agreement gain - -
-Executive employment agreement change - -
-Tax effects of items above and other one-time
tax expense (benefit) - -
-ADJUSTED NET EARNINGS (LOSS) $90 $5 $77
BALANCE SHEET OVERVIEW
*Long term debt includes $ 95 million of exchangeable unsecured
notes due in 92 years
in millions Q3 2010 Q3 2009 Q2 2010
Cash and cash equivalents $745 $508 $675
Long term debt incl. current portion* $299 $349 $322
Inventories $426 $448 $450
Inventory turns** 4.6 3.7 4.4
**Costs of products for the quarter 4x divided by the average inventory at the end of the quarter and the previous quarter For Q3 2010 average inventory at the end of the quarter and the end of the previous quarter without the spin-off VPG
CASH FLOW OVERVIEW
in millions Q3 2010 Q3 2009 Q2 2010
Depreciation $40 $53 $44
Amortization $5 $6 $5
Cash from operations $162 $110 $110
CapEx $31 $8 $31
Free Cash* $131 $103 $79
*Cash flows from operations less capital expenditures plus proceeds from sale of property and equipment
in millions
Q3 2009
BOOK-TO-BILL DETAIL
Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009
Book-to-bill VISHAY 1.04 1.15 1.46 1.22 1.11
Book-to-bill semiconductors 1.02 1.08 1.57 1.32 1.13
Book-to-bill passive components 1.06 1.23 1.35 1.12 1.09
Book-to-bill distribution 0.95 1.17 1.67 1.37 1.17
Book-to-bill OEMs 1.16 1.14 1.22 1.06 1.06
Book-to-bill Americas 1.09 1.17 1.30 1.16 1.12
Book-to-bill Europe 1.20 1.24 1.31 1.22 1.10
OPERATIONAL METRICS
Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009
Change in ASP vs. prior year VISHAY 4.2 1.1 (1.5) (2.2) (2.8) Change in ASP vs. prior year semis 5.5 2.3 (2.9) (5.4) (5.6) Change in ASP vs. prior year passives 2.6 0.0 (0.0) 1.1 0.6
FX effect on sales vs. previous quarter $3 ($18) ($13) $8 $8
Backlog at quarter end VISHAY $1,010 $988 $908 $630 $502
VISHAY SALES
EXCL. VISHAY PRECISION GROUP
300 350 400 450 500 550 600 650 700 750 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2004 2005 2006 2007 2008 2009 2010 $ in millions
VISHAY GROSS MARGIN
EXCL. VISHAY PRECISION GROUP
0 5 10 15 20 25 30 35 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2004 2005 2006 2007 2008 2009 2010 %
VISHAY SALES
BY PRODUCT SEGMENT
0 40 80 120 160 200 0 40 80 120 160 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2004 2005 2006 2007 2008 2009 2010MOSFETs DIODES OPTO Res/Ind excl. Foil Capacitors
$ in millions $ in millions
VISHAY GROSS MARGINS
BY PRODUCT SEGMENTS
0 5 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2004 2005 2006 2007 2008 2009 2010 % %GUIDANCE FOR Q4 2010
Revenues for Vishay excl. VPG of $650 to
$690 million at performance levels close to
Q3 2010
VISHAY TODAY
GROWTH MARKETS
Q3 RESULTS