VISHAY INTERTECHNOLOGY, INC.
CORPORATE PRESENTATION
NOVEMBER 2009
 VISHAY TODAY
 GROWTH MARKETS
 MANAGING THE
RECESSION
 Q3 RESULTS
 SPIN-OFF VPG
 LOOKING AHEAD
NOTES ON FORWARD-LOOKING STATEMENTS
 Comments in this presentation other than statements of historical fact may constitute
forward-looking statements.
 Forward-looking statements are based on Vishay management’s estimates and
projections and are subject to various risks and uncertainties.
 These risks and uncertainties are described in the Company’s annual report on Form
10-K for the year ended December 31, 2008, in the sections titled “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and the Risk
Factors section in Part I.
 This presentation includes certain non-GAAP financial measures, which include
earnings per share from continuing operations excluding special charges; operating
income before special charges; income and diluted earnings per share, excluding
restructuring and impairment charges, losses and other charges. These non-GAAP
measures exclude the impact of restructuring and impairment costs. In addition, this
presentation includes information regarding free cash flow, which reflects cash from
operations minus capital expenditures plus gain from sale of buildings. Reconciliation of
these non-GAAP measures to the most comparable GAAP measures is contained
within this presentation.
 Actual results may differ materially from those projected in the forward-looking
statements.
9-Nov-09
2
VISHAY TODAY
 VISHAY TODAY
 GROWTH MARKETS
 MANAGING THE
RECESSION
 Q3 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 virtually net debt free
9-Nov-09
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
9-Nov-09
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
 Grow at a faster rate than electronics markets
Vishay participates in
9-Nov-09
6
VISHAY TODAY
GROWTH THROUGH ACQUISITIONS
SALES IN
MILLIONS
International Rectifier
PCS
$3,000
COMPOUND ANNUAL GROWTH
RATE 1988 – 2008
$2,800
$2,600
VISHAY: 13%
$2,400
MARKET: 6%
Kemet
wet
tantalum
BCcomponents
$2,200
$2,000
Siliconix,
Telefunken
$1,800
$1,600
General Semiconductor,
Infineon infrared
$1,400
$1,200
$1,000
$800
Vitramon
Roederstein
Sprague
$600
$400
$200
Draloric
Dale
Sfernice
$85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
Years
9-Nov-09
7
VISHAY TODAY
BROAD MARKET PENETRATION
COMPUTING
18%
MEDICAL
2%
MILITARY/AERO
5%
CONSUMER
12%
AUTOMOTIVE
16%
POWER
SUPPLIES
11%
TELECOM
8%
INDUSTRIAL
28%
ASIA
39%
END MARKETS
DISTRIBUTION
42%
EMS
8%
AMERICAS
23%
REVENUE 2008 $2.8 B
EUROPE
38%
GEOGRAPHY
9-Nov-09
OEM
50%
SALES CHANNELS
8
VISHAY TODAY
BROAD MARKET PENETRATION
EXCL. VISHAY PRECISION GROUP
COMPUTING
20%
MEDICAL
2%
MILITARY/AERO
5%
CONSUMER
13%
AUTOMOTIVE
17%
POWER
SUPPLIES
12%
TELECOM
9%
ASIA
41%
INDUSTRIAL
22%
AMERICAS
22%
EUROPE
37%
GEOGRAPHY
9-Nov-09
DISTRIBUTION
46%
END MARKETS
VISHAY REVENUES 2008
EXCL. VISHAY PRECISION GROUP
APPROX. $2,580 M
EMS
9%
OEM
46%
SALES CHANNELS
9
VISHAY TODAY
BROAD CUSTOMER BASE
NO SINGLE OEM CUSTOMER REPRESENTS OVER 5% OF SALES
OEM
EMS
9-Nov-09
DISTRIBUTION
10
VISHAY TODAY
BALANCED PRODUCT PORTFOLIO
MEASUREMENTS
GROUP
7%
MOSFETs
23%
CAPACITORS
18%
DIODES
21%
RESISTORS
INDUCTORS
23%
INFRARED
OPTO
8%
48% PASSIVES - 52% SEMICONDUCTORS
REVENUE 2008 $2.8 B
9-Nov-09
11
VISHAY TODAY
BALANCED PRODUCT PORTFOLIO
EXCL. VISHAY PRECISION GROUP
CAPACITORS
20%
MOSFETs
25%
RESISTORS
INDUCTORS
24%
DIODES
22%
INFRARED
OPTO
9%
44% PASSIVES - 56% SEMICONDUCTORS
9-Nov-09
VISHAY REVENUES 2008
EXCL. VISHAY PRECISION GROUP
APPROX. $2,580 M
12
VISHAY TODAY
BROADEST LINE OF DISCRETE SEMICONDUCTORS
AND PASSIVE COMPONENTS
SEMICONDUCTORS
DIODES MOSFETs
VISHAY
Avago (HP)
AVX
Fairchild
Int. Rectifier
Infineon
KEMET
KOA
Murata
Nichicon
NXP (Philips)
ON Semi
Panasonic
Rohm
Sharp
ST Micro
TDK/EPCOS
Toshiba
Yageo
Diodes,
Rectifiers
MOSFETs







OPTO
CAPACITORS
Infrared
Components
Optocouplers
LEDs










RESISTORS
Aluminum,
Ceramic
Power,
Film,
Tantalum
Film,
Power
R-Chips












MAGNETICS
Inductors,
Variable,
TransSensors
formers


























Source: Company estimates
9-Nov-09
PASSIVE COMPONENTS














 = Major Position  = Minor Position
13
VISHAY TODAY
TECHNOLOGY LEADER IN
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
Source: WRTS, Company estimates
9-Nov-09
14
VISHAY TODAY
TECHNOLOGY LEADER IN
SEMICONDUCTORS
#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
Source: WSTS, IMS, Company estimates
9-Nov-09
15
NEW GROWTH MARKETS
 VISHAY TODAY
 GROWTH MARKETS
 MANAGING THE
RECESSION
 Q3 RESULTS
 SPIN-OFF VPG
 LOOKING AHEAD
NEW GROWTH MARKETS
ENERGY SAVING THROUGH
HYBRID AND FULLY ELECTRIC VEHICLES
20% CAGR for hybrids expected 2009-2012
New functions in hybrid cars include inverters and
advanced motor control and battery management
Vishay offers key components—both custom and off-theshelf—for hybrid applications such as:
 DC-links: film capacitor modules
 Inverters: IGBT modules
 Battery controls: shunt and discharge resistors, MOSFETs
Source: RNCOS
9-Nov-09
17
NEW GROWTH MARKETS
APPLICATION EXAMPLE FOR
HYBRIDS: INVERTER
VISHAY ADVANTAGES:
 Ability to Customize
 Superior Switching Performance
 Good Thermal Performance
DC-Link: film
capacitor module
9-Nov-09
MOSFETs,
optocouplers
High-current inductors
Battery shunt
current sense resistors
Intelligent IGBT modules:
MOSFETs, TANDEM diodes,
ultrafast rectifiers
MOSFETs,
IHLP® inductors,
TMBS® Schottky rectifiers,
TVS diodes,
HV MLCCs
18
NEW GROWTH MARKETS
ENERGY SAVING THROUGH
START/STOP TECHNOLOGY IN CARS
50% of all new cars expected to be equipped
with start/stop technology by 2012
Vishay offers key components—both custom and off-theshelf—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
Source: Industry estimate
9-Nov-09
19
NEW GROWTH MARKETS
APPLICATION EXAMPLE FOR
START/STOP: DC/DC CONVERTER
VISHAY ADVANTAGES:
 Low Forward Loss
 Excellent Stability
 Transient Immunity
Electrolytic
boost capacitors
High-breakdown
voltage dividers
Power Metal Strip®
current sense resistors
IHLP® inductors
MOSFETs,
TMBS® Schottky rectifiers
9-Nov-09
30-Sep-09
20
NEW GROWTH MARKETS
ALTERNATIVE ENERGY
SOLAR AND WIND
25% CAGR FOR SOLAR INSTALLATIONS 2008-2013
Vishay offers key components, both custom and off-theshelf, for solar and wind energy applications such as:
 Inverters: MOSFETs, intelligent IGBT and SCR modules, snap-in
electrolytic capacitors, discharge and shopper resistors
 Grid filters: AC power factor correction capacitors
 Junction boxes: bypass power Schottky diodes
Source: IC Insights
9-Nov-09
21
NEW GROWTH MARKETS
KEY COMPONENTS FOR
WIND AND SOLAR ENERGY
VISHAY ADVANTAGES:
 Long Life, High Reliability
 High Power Density
 Safety Approvals
Discharge and chopper
resistors
Power Schottky
by-pass diodes
Snap-in and screw terminal
electrolytic capacitors
9-Nov-09
Phase-leg thyristors,
SCR modules
Power capacitors
22
MANAGING THE RECESSION
 VISHAY TODAY
 GROWTH MARKETS
 MANAGING THE
RECESSION
 Q3 RESULTS
 SPIN-OFF VPG
 LOOKING AHEAD
MANAGING THE RECESSION
MANAGING THE RECESSION
 Complete focus on generating and conserving cash
 Ensure financial liquidity
 Reduce Fixed Costs by $200 million
2009 compared to 2008
9-Nov-09
24
MANAGING THE RECESSION
DRAMATIC REDUCTION OF CAPEX
CAPITAL EXPENDITURES
MILLIONS
MILLIONS
$350
$350
$300
$300
$250
$250
$200
$200
$150
$150
$100
$100
$50
$50
$0
$0
93
94
95
96
97
98
99
00
01
Years
9-Nov-09
02
03
04
05
06
07
08
09
FORECAST
25
MANAGING THE RECESSION
UNBROKEN GENERATION OF FREE CASH
CASH FLOWS FROM OPERATIONS LESS CAPITAL EXPENDITURES PLUS PROCEEDS FROM SALE OF PROPERTY AND EQUIPMENT
MILLIONS
MILLIONS
$350
$350
$300
$300
$250
$250
$200
$200
$150
$150
$100
$100
$50
$50
$0
$0
($50)
($50)
($100)
($100)
93
94
95
96
97
98
99
00
01
Years
9-Nov-09
02
03
04
05
06
07
08
09
FORECAST
26
MANAGING THE RECESSION
VIRTUALLY NET DEBT-FREE
as of September 26, 2009
in millions (USD)
Outstanding
Revolving Debt (up to $250M)
125
Term Loan
100
Exchangeable Unsecured Notes
105
Convertible Notes
Other Debt
25
17
349
CASH AND CASH EQUIVALENTS
508
2
Comments
Interest
Available through
April 20, 2012
LIBOR plus 1.4%
75
2
TOTAL DEBT
9-Nov-09
Principal Repayment Due
2010
2011
2
LIBOR plus 2.5%
Due 2102 or
in 93 years
LIBOR
Putable 2010,
due 2023
3.625%
$15 M term loan
maturing 2014
LIBOR plus 3.45%
27
MANAGING THE RECESSION
CUTTING FIXED COSTS
 Reduce Fixed Costs by $200 million
• COGS and SG&A 2009 compared to 2008
 YTD September 2009 $173 million savings realized
 Includes temporary measures such as plant
shut-downs, short work weeks, etc.
 Fixed personnel already reduced by over 10% in 2009
 Cash costs $50 million for restructuring in 2009
9-Nov-09
28
Q3 2009 FINANCIAL RESULTS
 VISHAY TODAY
 GROWTH MARKETS
 MANAGING THE
RECESSION
 Q3 RESULTS
 SPIN-OFF VPG
 LOOKING AHEAD
Q3 FINANCIAL INFORMATION
HIGHLIGHTS Q3
 Revenues for Q3 09 were $525 million or $65 million higher
than Q2 09
 Adjusted operating margins improved by $20 million: from ($5
million) in Q2 09 to 15 million in Q3 09
 EPS of $0.01, adjusted EPS $0.03
 Fixed costs reduced by $173 million YTD September 09
 Cash from operations YTD September 2009 was $179 million
 Capital expenditures YTD September 2009 were $26 million
 Inventories at distribution down by 10% compared to Q2 09
9-Nov-09
30
Q3 FINANCIAL INFORMATION
FINANCIAL RESULTS
Q3 2009
Q3 2008
Q2 2009
Net revenues
$525
$739
$460
Gross profit
$104
$160
$79
19.9%
21.6%
17.1%
$11
($322)
($47)
(43.6%)
(10.1%)
($1.62)
($0.32)
in millions, except per share amounts
Operating income
2.1%
EPS
9-Nov-09
$0.01
31
Q3 FINANCIAL INFORMATION
ADJUSTED FINANCIAL RESULTS
Q3 2009
Q3 2008
Q2 2009
Net revenues
$525
$739
$460
Gross profit
$104
$160
$79
19.9%
21.6%
17.1%
$15
$47
($5)
2.8%
6.3%
(1.1%)
in millions, except per share amounts
Adjusted operating income*
*Q3 2009 excludes charges for restructuring and severance costs of $3.5
*Q3 2008 excludes charges for restructuring and severance costs of $8.9, and terminated tender offer expenses of $4.0, and
for goodwill and indefinite-lived intangible asset impairment of $357.9
*Q2 2009 excludes charges for restructuring and severance costs of $12.1, and for an amended executive employment
agreement of $57.8, partially offset by a gain on settlement of matters related to the acquisition of International Rectifier's PCS
business of $28.2
Adjusted EPS**
$0.03
$0.17
($0.10)
**Q3 2009 excludes after-tax effect of negative $0.02 for charges for restructuring and severance costs
**Q3 2008 excludes the after-tax effect of negative $1.79 for charges for restructuring and severance costs, terminated tender
offer expenses, and goodwill and indefinite-lived intangible asset impairment
**Q2 2009 excludes after-tax effect of negative $0.22 for charges for restructuring and severance costs, and for an
amendment to an executive employment agreement, partially offset by a gain on settlement of matters related to the
acquisition of International Rectifier's PCS business
9-Nov-09
32
Q3 FINANCIAL INFORMATION
BALANCE SHEET AND CASH FLOW
Q3 2009
Q3 2008
Q2 2009
Cash and cash equivalents
$508
$312
$394
Long term debt incl. current portion
$349
$359
$349
Inventories
$448
$562
$470
$59
$56
$56
$110
$89
$16
$8
$41
$7
$103
$54
$9
in millions
Depreciation & amortization
Cash from operations
CapEx
Free Cash*
*Cash flows from operations less capital expenditures plus proceeds from sale of property and equipment
Long-term debt includes $105 million of exchangeable unsecured notes due in 93 years
Q3 2009
in millions
9-Nov-09
Q2 2008
Q1 2009
33
Q3 FINANCIAL INFORMATION
BOOK-TO-BILL DETAIL
Q3 2009 Q2 2009 Q1 2009 Q4 2008 Q3 2008
1.11
1.06
0.89
0.74
0.92
Book-to-bill semiconductors
1.13
1.14
0.96
0.59
0.85
Book-to-bill passive components
1.09
0.97
0.84
0.88
0.98
Book-to-bill distribution
1.17
1.20
0.84
0.65
0.88
Book-to-bill OEMs
1.06
0.93
0.93
0.83
0.95
Book-to-bill Americas
1.12
0.99
0.81
0.92
0.93
Book-to-bill Europe
1.10
0.95
0.88
0.78
0.94
Book-to-bill Asia
1.12
1.19
0.97
0.59
0.89
Book-to-bill VISHAY
9-Nov-09
34
Q3 FINANCIAL INFORMATION
OPERATIONAL METRICS
Q3 2009 Q2 2009 Q1 2009 Q4 2008 Q3 2008
Backlog at quarter end VISHAY
$502
$433
$400
$460
$619
Change in ASP vs. prior year VISHAY
(2.8)
(2.8)
(2.2)
(2.3)
(3.4)
Change in ASP vs. prior year semis
(5.6)
(6.0)
(5.4)
(4.0)
(5.3)
0.5
0.6
(1.0)
(1.2)
Change in ASP vs. prior year passives
9-Nov-09
0.6
35
Q3 FINANCIAL INFORMATION
GUIDANCE FOR Q4
 Revenues of $530 to $570 million and
improved results
9-Nov-09
36
SPIN-OFF
VISHAY PRECISION GROUP
 VISHAY TODAY
 GROWTH MARKETS
 MANAGING THE
RECESSION
 Q3 RESULTS
 SPIN-OFF VPG
 LOOKING AHEAD
VISHAY TODAY
SPIN-OFF OF VISHAY PRECISION GROUP








9-Nov-09
On October 27th, 2009, Vishay Intertechnology announced its intention to spin-off its measurements
business into an independent, publicly traded company to be named Vishay Precision Group.
The spin-off is expected to take the form of a tax-free stock dividend to Vishay’s shareholders.
It is anticipated that holders of Vishay common stock will receive common stock of Vishay Precision
Group and holders of Vishay Class B common stock will receive Class B common stock of Vishay
Precision Group.
Vishay Precision Group is not a core component of Vishay’s overall operations. VPG employs a
strategy of “vertical product integration”, largely focused on designing, manufacturing, marketing,
installing and servicing precision measurement products and customized precision measurement
systems. Foil resistor technology is the basis of resistive strain gages and provides the technology
for Vishay Precision Group’s future development.
The spin-off will enable the management teams of both companies to better focus on the unique
issues facing their respective businesses and permit each company to pursue its own business,
resource allocation and growth strategies, and attract the best personnel.
Key management of Vishay Precision Group:
• President & CEO: Ziv Shoshani, currently Vishay’s EVP, COO and Head of the Specialty
Group, which will become the Vishay Precision Group
• Chairman: Marc Zandman, who will continue to serve as Vishay’s Vice Chairman of the Board
and Chief Administration Officer
• CFO: William M. Clancy, currently Vishay's SVP, Corporate Controller and Secretary
Vishay Precision Group will be headquartered in the U.S.
The transaction is expected to close in the first half of 2010.
38
VISHAY TODAY
VISHAY PRECISION GROUP OVERVIEW




Vishay Precision Group (“VPG”) is a leading designer, manufacturer and marketer of
sensors, weighing modules, and weighing systems for a wide variety of applications.
VPG is comprised of the “Measurements Group” business and the foil resistor
business, currently part of the resistors business. It is part of our business segment
Passive Components.
VPG manufactures and sells individual components for weighing systems and also
designs, manufactures and sells complete solutions for weighing applications.
VPG’s vertically integrated products and solutions include:
•
•
•



9-Nov-09
Resistive foil sensor product lines (resistive foil strain gages, resistive foil current sensors
and ultra-precision foil resistive standards)
Weighing modules (transducers and load cells)
Weighing systems (containing VPG transducers, VPG instruments, VPG software)
VPG’s solutions are used mainly for specific industrial applications such as weighing
and force measurement systems for residential waste management, process control,
on-board weighing and data acquisition systems for stress measurements.
VPG generated approximately $179 million in net revenue in the last twelve months
September 2009 or approximately $242 million in 2008 equivalent to approximately
9% of total revenues.
Going forward, VPG’s primary strategy is to focus on growing its weighing and force
measurement systems.
39
LOOKING AHEAD
 VISHAY TODAY
 GROWTH MARKETS
 MANAGING THE
RECESSION
 Q3 RESULTS
 SPIN-OFF VPG
 LOOKING AHEAD
LOOKING AHEAD
LEVERAGING CURRENT MODEL
DURING ECONOMIC RECOVERY
GROW OPERATING MARGIN TO > 10% OF SALES
 Contribution margin of 40% - 45%
 Revenue recovery from current levels over next years
 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
9-Nov-09
41
LOOKING AHEAD
LEVERAGING CURRENT MODEL
DURING ECONOMIC RECOVERY
CONTINUED GENERATION OF FREE CASH
 Despite sales increases, keep working capital low
 CapEx of $80 - $120 million per year
 Restructuring cash costs of <$20 million per year
 Tax rate back to levels of mid to high 20s
9-Nov-09
42
LOOKING AHEAD
AFTER ECONOMIC RECOVERY
IMPROVE EPS
BY OUTGROWING MARKETS WHILE
MAINTAINING STRONG FINANCIAL POSITION
 Growth through leveraging broad product
portfolio: “one-stop shop” service
 Growth through innovative products—R&D
 Growth through targeted acquisition strategy
9-Nov-09
43
LOOKING AHEAD
“ONE-STOP SHOP” SERVICE
INCREASE MARKET SHARE
Technical sales force offers entire product portfolio by
application in all market segments and in all regions
 Value for customer: specific solutions instead of
single products or modules
 Value for Vishay: opportunity to get all relevant
specialty products for an application onto bill of
materials
9-Nov-09
44
LOOKING AHEAD
R&D AT VISHAY
 Divisional R&D: expand and rejuvenate existing
product lines
• Reduce size
• Increase performance
• Reduce cost
 Corporate R&D: introduce completely new product
platforms
9-Nov-09
45
LOOKING AHEAD
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
9-Nov-09
46
LOOKING AHEAD
NEW PRODUCT PLATFORMS
EXAMPLES OF NEW PRODUCT PLATFORMS WITH GROWING SALES
 Power Metal Strip® Resistor WSL
 Power Inductor IHLP®
 High power chipscale MICRO FOOT® MOSFET
 Trench MOS Barrier Schottky Rectifier TMBS®
9-Nov-09
47
LOOKING AHEAD
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%
9-Nov-09
48
LOOKING AHEAD
TARGETED ACQUISITION STRATEGY
 Acquisitions in passive components:
• Strengthen and broaden Vishay’s position as a
specialty products supplier
 Acquisitions in discrete semiconductors and
specialty ICs:
• Increase market share and exploit synergies
9-Nov-09
49
SUMMARY
 Vishay will emerge from the crisis stronger
 At least 10% Operating Margin under normal
economic conditions
 Further improve EPS by outgrowing end
markets while maintaining a strong financial
position
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50