VISHAY INTERTECHNOLOGY, INC.
CORPORATE PRESENTATIONMAY 2010
VISHAY TODAY GROWTH MARKETS Q1 RESULTS SPIN-OFF VPG LOOKING AHEAD
2
NOTES ON FORWARD-LOOKING STATEMENTS Comments in this presentation other than statements of historical fact may constitute forward-
looking 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.
NON-GAAP FINANCIAL MEASURES
VISHAY TODAY
VISHAY TODAY GROWTH MARKETS Q1 RESULTS SPIN-OFF VPG LOOKING AHEAD
VISHAY TODAY
VISHAY — 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, and net cash positive
4
VISHAY TODAY
VISHAY — A PIONEER OF THE ELECTRONIC COMPONENTS INDUSTRY
Founded in 1962 by Dr. Felix Zandman, based on an innovative technology
Since 1985, strategy of accelerated growth through synergistic 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 worldwide
5
VISHAY TODAY
THE VISHAY VISION
Offer innovative products and technologies to meet current and future market needs
Be a broad-liner for discrete electronic components offering “one-stop shop” service and custom solutions for all market segments in all regions
Be a leading supplier for our customers
Grow at a faster rate than electronics markets Vishay participates in
66
VISHAY TODAY
7
0200400600800
1,0001,2001,4001,6001,8002,0002,2002,4002,6002,8003,000
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
RoedersteinSpragueSfernice
Draloric
Vitramon
Siliconix,Telefunken
General Semiconductor,Infineon infrared
Dale
BCcomponents
SALES IN MILLION International Rectifier
PCS
Year
Kemetwet
tantalumQ1 10: $640M
Annualized: $2,560M
VISHAY TODAY
BROAD MARKET PENETRATION
END MARKETS
SALES CHANNELSGEOGRAPHY
REVENUES 2009 $2,042 M
COMPUTING17%
CONSUMER10%
AUTOMOTIVE15%
TELECOM13%
INDUSTRIAL29%
POWER SUPPLIES
9%
DISTRIBUTION5%
MEDICAL2%
AMERICAS25%
EUROPE37%
ASIA38%
EMS9%
OEM44%
DISTRIBUTION47%
8
VISHAY TODAY
BROAD MARKET PENETRATION EXCL. VISHAY PRECISION GROUP
END MARKETS
SALES CHANNELSGEOGRAPHY
VISHAY REVENUES 2009EXCL. VISHAY PRECISION GROUP
APPROX. $1,870 M
COMPUTING19%
CONSUMER11%
AUTOMOTIVE15%
TELECOM16%
INDUSTRIAL22%
POWER SUPPLIES
9%
MILITARY/AERO5%
MEDICAL3%
AMERICAS22%
EUROPE37%
ASIA41%
EMS9%
OEM43%
DISTRIBUTION48%
9
VISHAY TODAY
BROAD CUSTOMER BASE
OEM
EMS DISTRIBUTION
NO SINGLE OEM CUSTOMER REPRESENTS OVER 5% OF SALES
10
VISHAY TODAY
BALANCED PRODUCT PORTFOLIO
REVENUES 2009 $2,042 M51% PASSIVES - 49% SEMICONDUCTORS
MEASUREMENTS GROUP
7%MOSFETS
21%
DIODES20%
INFRARED OPTO
8%
RESISTORS INDUCTORS
23%
CAPACITORS21%
11
VISHAY TODAY
BALANCED PRODUCT PORTFOLIOEXCL. VISHAY PRECISION GROUP
46% PASSIVES - 54% SEMICONDUCTORS
VISHAY REVENUES 2009EXCL. VISHAY PRECISION GROUP
APPROX. $1,870 M
MOSFETS23%
DIODES22%
INFRARED OPTO
8%
RESISTORS INDUCTORS
24%
CAPACITORS22%
12
VISHAY TODAY
BROADEST LINE OF DISCRETE SEMICONDUCTORSAND PASSIVE COMPONENTS
= Major Position = Minor PositionSource: 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 COMPONENTSOPTO CAPACITORS RESISTORS
13
VISHAY TODAY
#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
Source: WRTS, Company estimates
14
VISHAY TODAY
#1 worldwide in discrete power semiconductors
#1 worldwide in diodes
#1 worldwide in power rectifiers
#1 worldwide in low-voltage power MOSFETs
#1 worldwide in infrared components
TECHNOLOGY LEADER INSEMICONDUCTORS
Source: WSTS, IMS, Company estimates
15
VISHAY TODAY
DURING THE CRISIS
Maintained complete focus on generating and conserving cash
Ensured financial liquidity
Reduced permanently break-even point by $400-$500 million
16
VISHAY TODAY
1717
GROSS MARGINMILLIONS USD % OF SALES
0%
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30%
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40%
0
100
200
300
400
500
600
700
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02 03 04 05 06 07 08 090%
5%
10%
15%
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30%
35%
40%
0
100
200
300
400
500
600
700
800
Q1 09
Q2 09
Q3 09
Q4 09
Q1 10
VISHAY TODAY
1818
ADJUSTED GROSS MARGINMILLIONS USD % OF SALES
0%
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30%
35%
40%
0
100
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Q1 09 Q2 09 Q3 09 Q4 09 Q1 100%
5%
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25%
30%
35%
40%
0
100
200
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500
600
700
800
02 03 04 05 06 07 08 09
VISHAY TODAY
1919
OPERATING MARGINMILLIONS USD % OF SALES
2008: Operating Profit 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
VISHAY TODAY
2020
ADJUSTED OPERATING MARGINMILLIONS 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
Q1 09
Q2 09
Q3 09
Q4 09
Q1 10
-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
VISHAY TODAY
21
RECONCILIATION OF GAAP TO ADJUSTEDin millions USD 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
Gain on sale of building (5) (3)
VISHAY TODAY
2222
REDUCTION OF CAPITAL EXPENDITURES
0
50
100
150
200
250
300
350
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
MILLION USD MILLION USD
VISHAY TODAY
23
STRONG 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
$200-$250M
VISHAY TODAY
24
NET CASH POSITIVEas of April 3, 2010
2010 2011
Revolving Debt (up to $250M) 125 Available through April 20, 2012
LIBOR plus 1.52%
Term Loan 88 13 75 LIBOR plus 2.5%
Exchangeable Unsecured Notes 105 Due 2102 orin 92 years
LIBOR
Convertible Notes 2 Putable 2010,due 2023
3.625%
Other Debt 15 2 $15 M term loan maturing 2014
LIBOR plus 3.45%
TOTAL DEBT 334
CASH AND CASH EQUIVALENTS 613
Comments InterestPrincipal Repayment Due in millions (USD) Out-standing
VISHAY TODAY
25
CUTTING FIXED COSTS
Break-even point permanently reduced by $400-$500 million
Fixed personnel reduced by 16% since September 2008
Restructuring cash costs of $48 million in 2009No material restructuring charges expected for 2010: all defined restructuring programs implemented or announced
NEW GROWTH MARKETS
VISHAY TODAY GROWTH MARKETS Q1 RESULTS SPIN-OFF VPG LOOKING AHEAD
NEW GROWTH MARKETS
ENERGY SAVING THROUGHHYBRID 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
Source: RNCOS
20% CAGR for hybrids expected 2009-2012
27
NEW GROWTH MARKETS
APPLICATION EXAMPLE FORHYBRIDS: INVERTER
DC-Link: film capacitor module
MOSFETs,optocouplers
Intelligent IGBT modules:MOSFETs, TANDEM diodes, ultrafast rectifiers
MOSFETs, IHLP® inductors,TMBS® Schottky rectifiers,TVS diodes,HV MLCCs
VISHAY ADVANTAGES: Ability to Customize Superior Switching Performance Good Thermal Performance Battery shunt
current sense resistors
High current inductors
28
NEW GROWTH MARKETS
ENERGY SAVING THROUGHSTART/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, Schottkydiodes, 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
Source: Industry estimate29
NEW GROWTH MARKETS
APPLICATION EXAMPLE FORSTART/STOP: DC/DC CONVERTER
VISHAY ADVANTAGES: Low Forward Loss Excellent Stability Transient Immunity
Power Metal Strip®current sense resistors
Electrolyticboost capacitors
IHLP® inductors
High break downvoltage dividers
MOSFETs,TMBS® Schottky rectifiers
30
NEW GROWTH MARKETS
ALTERNATIVE ENERGYWIND 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
Source: IC Insights
25% CAGR FOR SOLAR INSTALLATIONS 2008-2013
31
NEW GROWTH MARKETS
KEY COMPONENTS FORWIND AND SOLAR ENERGY
VISHAY ADVANTAGES: Long Life, High Reliability High Power Density Safety Approvals
Power capacitors
32
Power Schottkyby-pass diodes
Discharge and chopperresistors
Phase-leg thyristors,SCR-modules
Snap-in & screw terminalelectrolytic capacitors
32
NEW GROWTH MARKETS
3333
ENERGY SAVINGS THROUGHLED LIGHTING
Vishay offers solutions and key components—both custom and off-the-shelf—for lighting applications such as:
LEDs: high power LEDs and modules
DC/DC controls: PowerPAK® MOSFETs, IHLP® inductors, current sense resistors
AC/DC power supplies: TMBS® diodes, optocouplers, MOSFETS, tandem rectifiers for power factor correction
9% CAGR FOR LEDs EXPECTED 2009-2012
33Source: WSTS
NEW GROWTH MARKETS
SOLUTION EXAMPLE FOR LEDs:LED STREET LIGHT
VISHAY ADVANTAGES: Optimized Thermal Performance Proprietary DC Current Control High Brightness LED Clusters
34
High powerLED clusters
High power LEDs
TMBS® diodes
Electrolytic capacitorsLow ESR MOSFET PowerPAK® SO8L
IHLP® inductors
34
Q1 2010 FINANCIAL RESULTS
VISHAY TODAY GROWTH MARKETS Q1 RESULTS SPIN-OFF VPG LOOKING AHEAD
Q1 FINANCIAL INFORMATION
36
HIGHLIGHTS Q1 2010
Revenues for Q1 10 were $640M or $34M higher than Q4 09
Adjusted operating margins improved by $26M: from $39M in Q4 09 to $65M in Q1 10
EPS of $0.24
Cash from operations in Q1 10 was $68M
Capital expenditures in Q1 10 were $18M
Inventories at distribution down by 6% compared to Q4 09 for turns of 5.0
Q1 FINANCIAL INFORMATION
37
FINANCIAL RESULTS
in millions, except per share amounts Q1 2010 Q1 2009 Q4 2009
Net revenues $640 $450 $607
Gross profit $167 $68 $137
26.1% 15.1% 22.6%
Operating income $65 ($38) $35
10.2% (8.5%) 5.7%
Net earnings $45 ($29) $29
EPS $0.24 ($0.16) $0.15
Q1 FINANCIAL INFORMATION
38
ADJUSTED FINANCIAL RESULTS
in millions, except per share amounts Q1 20101 Q1 2009 Q4 2009
Net revenues $640 $450 $607
Gross profit $167 $68 $137
26.1% 15.1% 22.6%
Adjusted operating income $65 ($19) $39
10.2% (4.3%) 6.4%
Adjusted net earnings $45 ($15) $32
Adjusted EPS $0.24 ($0.08) $0.16
1) No adjustments for Q1 2010
Q1 FINANCIAL INFORMATION
39
in millions Q1 2010 Q1 2009 Q4 2009
GAAP NET EARNINGS (LOSS) $45 ($29) $28
Reconciling items affecting operating margin:
Restructuring and severance costs - $19 $3
Asset write-downs - $1
Tax effects of items above and other one-time tax expense (benefit)
- ($1) ($1)
ADJUSTED NET EARNINGS (LOSS) $45 ($15) $32
RECONCILIATION OF GAAP TO ADJUSTED
Q1 FINANCIAL INFORMATION
40
BALANCE SHEET OVERVIEW
Long term debt includes $105 million of exchangeable unsecured notes due in 92 years
in millions Q1 2010 Q1 2009 Q4 2009
Cash and cash equivalents $613 $365 $579
Long term debt incl. current portion $334 $361 $336
Inventories $435 $505 $435
Inventory turns* 4.3 2.9 4.3*Costs of products for the quarter 4x divided by the average inventory at the end of the quarter and the previous quarter
in millionsQ3 2009 Q2 2008 Q1 2009
Q1 FINANCIAL INFORMATION
41
CASH FLOW OVERVIEW
in millions Q1 2010 Q1 2009 Q4 2009
Depreciation $45 $49 $56
Amortization $6 $6 $4
Cash from operations $68 $53 $112
CapEx $18 $11 $24
Free Cash* $50 $42 $92*Cash flows from operations less capital expenditures plus proceeds from sale of property and equipment
in millionsQ3 2009 Q2 2008 Q1 2009
Q1 FINANCIAL INFORMATION
42
BOOK-TO-BILL DETAIL
Q1 2010 Q4 2009 Q3 2009 Q2 2009 Q1 2009
Book-to-bill VISHAY 1.46 1.22 1.11 1.06 0.89
Book-to-bill semiconductors 1.57 1.32 1.13 1.14 0.96
Book-to-bill passive components 1.35 1.12 1.09 0.97 0.84
Book-to-bill distribution 1.67 1.37 1.17 1.20 0.84
Book-to-bill OEMs 1.22 1.06 1.06 0.93 0.93
Book-to-bill Americas 1.30 1.16 1.12 0.99 0.81
Book-to-bill Europe 1.31 1.22 1.10 0.95 0.88
Book-to-bill Asia 1.70 1.29 1.12 1.19 0.97
Q1 FINANCIAL INFORMATION
43
OPERATIONAL METRICS
Q1 2010 Q4 2009 Q3 2009 Q2 2009 Q1 2009
Change in ASP vs. prior year VISHAY (1.5) (2.2) (2.8) (2.8) (2.2)
Change in ASP vs. prior year semis (2.9) (5.4) (5.6) (6.0) (5.4)
Change in ASP vs. prior year passives (0.0) 1.1 0.6 0.5 0.6
Backlog at quarter end VISHAY $908 $630 $502 $433 $400
Q1 FINANCIAL INFORMATION
44
GUIDANCE FOR Q2 2010
Revenues of $660 to $700 million at further improved margins
SPIN-OFFVISHAY PRECISION GROUP
VISHAY TODAY GROWTH MARKETS Q1 RESULTS SPIN-OFF VPG LOOKING AHEAD
SPIN-OFF VISHAY PRECISION GROUP
46
TRANSACTION OVERVIEW
Spin-off of Vishay’s measurements and foil resistor business into an independent, publicly traded company to be named Vishay Precision Group (“VPG”)
The spin-off is expected to take the form of a tax-free stock dividend to Vishay’s shareholders
Vishay and VPG are expected to have dual-class common stock after the spin-off has been executed
VPG will be headquartered in the U.S. Form 10 filed on March 26, 2010 The transaction is expected to close in mid 2010
SPIN-OFF VISHAY PRECISION GROUP
RATIONALE
Vishay Precision Group 47
VPG is not a core component of Vishay’s overall operations
Fundamentally different from Vishay across products, technology, manufacturing processes, markets and customers
47
SPIN-OFF VISHAY PRECISION GROUP
48
VISHAY PRECISION GROUP OVERVIEW
VPG is a leading sensor technology company providing vertically integrated products and solutions for multiple fast-growing markets in the area of stress measurement, weighing modules, and process control systems
VPG sales: 2009 approx. $172 million 2008 approx. $242 million
Equivalent to approx. 9% of Vishay’s total revenues Spin-off expected to have negligible impact on Vishay’s
operating margins and slight impact on gross margins• VPG has higher gross margins but a higher
percentage of SG&A costs than Vishay’s corporate average
LOOKING AHEAD
VISHAY TODAY GROWTH MARKETS Q1 RESULTS SPIN-OFF VPG LOOKING AHEAD
LOOKING AHEAD
50
GROW OPERATING MARGIN TO > 10% OF SALES
Contribution margin of 40% - 45%
Keep Fixed Costs controlled at close to current low levels despite revenue growth
For each additional $1 of sales, approximately $0.40 drop to operating profit
LEVERAGING CURRENT MODELWHILE RETURNING TO PRE-CRISIS SALES LEVELS
LOOKING AHEAD
51
CONTINUED GENERATION OF FREE CASH
Despite sales increases keep working capital low
CapEx of $120 - $150 million per year
No material restructuring costs
Tax rate back to levels of high 20s
LEVERAGING CURRENT MODELWHILE RETURNING TO PRE-CRISIS SALES LEVELS
LOOKING AHEAD
52
AFTER ECONOMIC RECOVERY
Growth through leveraging broad product portfolio: “one-stop shop” service
Growth through innovative products—R&D
Growth through targeted acquisitions
IMPROVE EPSBY OUTGROWING OUR MARKETS WHILE MAINTAINING STRONG FINANCIAL POSITION
LOOKING AHEAD
53
GROWTH THROUGH R&D
Sales of products less than 5 years old currently at 26%
Equivalent to a contribution of approx. 5% per year to internal growth
More than offsets aging of product portfolio
Further intensify R&D programs after recession
LOOKING AHEAD
54
TARGETED ACQUISITION STRATEGY
Solid product portfolios complementing Vishay’s existing product lines
Cash payback in less than 8 years
Accretive to earnings in less than 12 months
Compatible with Vishay: can be integrated and run by Vishay’s present organization
Contribution margins of over 40%
LOOKING AHEAD
55
TARGETED ACQUISITION STRATEGY
Acquisitions in passive components:
• Strengthen and broaden Vishay’s position as a specialty products supplier
Acquisitions in discrete semiconductors:
• Increase market share and exploit synergies
56
SUMMARY
Vishay has emerged from the crisis stronger
10-12% Operating Margin under normal economic conditions
Further improve EPS by outgrowing end markets through acquisitions
Maintain strong financial position