3
Forward Looking Statements
During the course of this presentation, we may make forward-looking statements or provide forward-
looking information. All statements that address expectations or projections about the future are forward-
looking statements. Some of these statements include words such as “expects,” “anticipates,” “believes,”
“estimates,” “plans,” “intends,” “projects,” and “indicates.” Although they reflect our current expectations,
these statements are not guarantees of future performance, but involve a number of risks, uncertainties,
and assumptions which are difficult to predict. Some of the factors that may cause actual outcomes and
results to differ materially from those expressed in, or implied by, the forward-looking statements include,
but are not necessarily limited to economic conditions, competitive pressures, raw material costs and the
ability to retain key employees. We urge you to review KEMET's SEC filings, particularly its latest annual
report on Form 10-K, which was amended by a Form 8-K filed on November 5, 2009 to retrospectively
adjust for the required adoption of FSP APB 14-1 effective April 1, 2009 relating to the accounting for
certain convertible debt, and for a discussion of some of the factors which could cause actual results to
differ materially. The Company does not undertake to update any forward-looking statements as a result
of future developments or new information.
Non-GAAP Financial Measures
Included in this presentation are certain non-GAAP financial measures designed to complement the
financial information presented in accordance with generally accepted accounting principles in the United
States of America because management believes such measures are useful to investors.
Company Overview
4
• KEMET Laboratories was founded by Union Carbide in 1919
• Headquartered in Greenville, South Carolina since 1963
• Global manufacturer of tantalum, ceramic, film, aluminum, electrolytic & paper capacitors
• KEMET shipped approximately 31 billion capacitors in FYE March 31, 2010 (FY2010)
• 21 manufacturing facilities: 4 in Mexico, 4 in China, 11 in Europe (in 7 countries), 1 in the United
States, 1 in Indonesia
• 10,350 employees worldwide (March 31, 2010)
• USA: 500 Mexico: 5,250
• Asia: 2,500 Europe: 2,100
• Global sales force covering the Americas, EMEA and Asia
KEMET Revenue by Business(1) KEMET Revenue by End Market (1)
(1) FY2010 data.
What is a Capacitor?
• Essential passive electronic component
that stores, filters, and regulates
electrical energy
• Required in anything that has an electric
current (from iPods to giant windmills)
• Comes in various shapes and sizes with
a myriad of technical specifications
• May be numerous in some devices (e.g.
3,000+ in some flat panel TVs, 700+ in
some smartphones)
5
Business Overview
6
• KEMET operates in three distinct businesses: Tantalum, Ceramic and Film & Electrolytic
• The Tantalum and DC Film businesses are both #1 globally
• The Ceramic business is #2 in North America and top ten worldwide
• Film & Electrolytic is currently undergoing restructuring and is expected to be an Adjusted EBITDA contributor in FY2011
Tantalum Business Ceramic Business Film & Electrolytic Business
Market Size ~ $1.5 billion globally ~ $6+ billion globally ~ $6+ billion globally
Market Share • Approximate 23% share
• Largest tantalum capacitor
manufacturer in the world
• Approximate 3% share
• Second largest ceramic capacitor
manufacturer in North America
and among top ten globally
• Approximate 4% share (15 % in
DC Film)
• Global leader of Film with regional
players competing with more
limited product offerings
End Markets • Computer, telecom, consumer,
aerospace & defense, automotive
and general industrials
• Computer, telecom, aerospace &
defense, automotive and general
industries
• General industrial, automotive,
consumer and computer
Competitors • Panasonic/Sanyo, AVX, Vishay
and NEC-Tokin
• Samsung, Murata, Taiyo Yuden,
and several other Asian
companies
• EPCOS, Panasonic/Sanyo,
Vishay and several Asian regional
companies
Recent
Financials
(9 Mo. 12/31/09)
• Revenue and Adjusted EBITDA of
$248mm and $43mm, respectively
• Revenue and Adjusted EBITDA of
$120mm and $22mm, respectively
• Revenue and Adjusted EBITDA of
$155mm and ($20mm),
respectively
Key Market Trends Driving Growth
in Capacitors
• Growth of high frequency applications with faster microprocessors
• Miniaturization and portability of consumer electronics
• Global appetite for connectivity and resulting bandwidth requirements
• Enhanced functionality and complexity of new products
• Upgrade of global energy networks
• Drive towards development of alternative energy solutions
• Demand for higher capacitance values driving growth in tantalum and aluminum polymer
• Growing middle class in emerging economies
7
Trends Across Key End Markets Offer Compelling Growth Opportunity
Strong Customer Relationships
• KEMET’s emphasis on quality, diversified customer base and established industry presence spanning
over ninety years creates advantages in meeting the needs of the OEM, EMS and Distribution channels
• Customer base includes nearly all of the world’s major electronics OEMs (Apple, Dell, Hewlett Packard,
IBM, Intel, Motorola, Nokia and Alcatel) and EMSs (Celestica, Elcoteq, Flextronics, Jabil, and Sanmina )
• An extensive network of global Distribution partners
8
OEM
EMS Distribution
Broad and Diversified Product Offering
• KEMET offers the most complete line of primary capacitor types, across the full spectrum of dielectric materials and
technologies including tantalum, ceramic, solid and electrolytic aluminum, film and paper
• As a result, the Company can satisfy virtually all of its customers’ capacitance needs, strengthening its position as their
supplier of choice
• KEMET sells products into a wide range of different end markets, including industrial, telecommunications, automotive,
consumer, defense and healthcare sectors, across the globe
• No single end market accounted for more than 30%, and no single end user accounted for more than 3% of revenue in
FY2010
9
Revenue by Business(1) Revenue by End Markets(1) Revenue by Geography(1)
(1) FY2010 data.
FY10 Segment Performance
$18
$13
$8
$21
$3
$4
$12
$0
$5
$10
$15
$20
$25
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 2010
FEB MAR
Mil
lio
ns
TELECOM
COMPUTERS
CONSUMER
INDUSTRIAL
MEDICAL
MILITARY
AUTOMOTIVE
The rebound was consistent and across all markets
10
Leading Market Positions
and Operating Scale
• #1 Tantalum capacitor manufacturer globally, with 23% market share
• #1 DC Film capacitor manufacturer globally, with 15% market share
• #2 Ceramic capacitor manufacturer in North America and top 10 globally
• Growing exposure to higher growth, higher margin, specialty segments of the market
• Worldwide sales and distribution network
11
Global Reach and
Geographic Diversification
12
Strategically positioned to be in close proximity to the Company’s diverse and expansive
customer base
The Americas EMEA Asia
Manufacturing FacilitySales Office Distribution Hub
79008_1.wor
Shenzen, ChinaShenzen, ChinaShenzen, ChinaShenzen, ChinaShenzen, ChinaShenzen, ChinaShenzen, ChinaShenzen, ChinaShenzen, China
Taipei, TaiwanTaipei, TaiwanTaipei, TaiwanTaipei, TaiwanTaipei, TaiwanTaipei, TaiwanTaipei, TaiwanTaipei, TaiwanTaipei, Taiwan
Shanghai, ChinaShanghai, ChinaShanghai, ChinaShanghai, ChinaShanghai, ChinaShanghai, ChinaShanghai, ChinaShanghai, ChinaShanghai, China
Beijing, ChinaBeijing, ChinaBeijing, ChinaBeijing, ChinaBeijing, ChinaBeijing, ChinaBeijing, ChinaBeijing, ChinaBeijing, China
Penang, MalaysiaPenang, MalaysiaPenang, MalaysiaPenang, MalaysiaPenang, MalaysiaPenang, MalaysiaPenang, MalaysiaPenang, MalaysiaPenang, Malaysia
Bangalore, IndiaBangalore, IndiaBangalore, IndiaBangalore, IndiaBangalore, IndiaBangalore, IndiaBangalore, IndiaBangalore, IndiaBangalore, IndiaSingaporeSingaporeSingaporeSingaporeSingaporeSingaporeSingaporeSingaporeSingapore
Hong Kong, ChinaHong Kong, ChinaHong Kong, ChinaHong Kong, ChinaHong Kong, ChinaHong Kong, ChinaHong Kong, ChinaHong Kong, ChinaHong Kong, China
Suzhou, ChinaSuzhou, ChinaSuzhou, ChinaSuzhou, ChinaSuzhou, ChinaSuzhou, ChinaSuzhou, ChinaSuzhou, ChinaSuzhou, China
Anting, ChinaAnting, ChinaAnting, ChinaAnting, ChinaAnting, ChinaAnting, ChinaAnting, ChinaAnting, ChinaAnting, ChinaNantong, ChinaNantong, ChinaNantong, ChinaNantong, ChinaNantong, ChinaNantong, ChinaNantong, ChinaNantong, ChinaNantong, China
Batam, IndonesiaBatam, IndonesiaBatam, IndonesiaBatam, IndonesiaBatam, IndonesiaBatam, IndonesiaBatam, IndonesiaBatam, IndonesiaBatam, Indonesia
Bishop's Stortford, UKBishop's Stortford, UKBishop's Stortford, UKBishop's Stortford, UKBishop's Stortford, UKBishop's Stortford, UKBishop's Stortford, UKBishop's Stortford, UKBishop's Stortford, UK
Kwidzyn, PolandKwidzyn, PolandKwidzyn, PolandKwidzyn, PolandKwidzyn, PolandKwidzyn, PolandKwidzyn, PolandKwidzyn, PolandKwidzyn, Poland
Espoo, FinlandEspoo, FinlandEspoo, FinlandEspoo, FinlandEspoo, FinlandEspoo, FinlandEspoo, FinlandEspoo, FinlandEspoo, Finland
Rainhill, UKRainhill, UKRainhill, UKRainhill, UKRainhill, UKRainhill, UKRainhill, UKRainhill, UKRainhill, UK
Coatbridge, UKCoatbridge, UKCoatbridge, UKCoatbridge, UKCoatbridge, UKCoatbridge, UKCoatbridge, UKCoatbridge, UKCoatbridge, UK
Paris, FranceParis, FranceParis, FranceParis, FranceParis, FranceParis, FranceParis, FranceParis, FranceParis, France Landsberg, GermanyLandsberg, GermanyLandsberg, GermanyLandsberg, GermanyLandsberg, GermanyLandsberg, GermanyLandsberg, GermanyLandsberg, GermanyLandsberg, Germany
Dortmund, GermanyDortmund, GermanyDortmund, GermanyDortmund, GermanyDortmund, GermanyDortmund, GermanyDortmund, GermanyDortmund, GermanyDortmund, Germany
Geneva, SwitzerlandGeneva, SwitzerlandGeneva, SwitzerlandGeneva, SwitzerlandGeneva, SwitzerlandGeneva, SwitzerlandGeneva, SwitzerlandGeneva, SwitzerlandGeneva, Switzerland
Milan, ItalyMilan, ItalyMilan, ItalyMilan, ItalyMilan, ItalyMilan, ItalyMilan, ItalyMilan, ItalyMilan, Italy
Madrid, SpainMadrid, SpainMadrid, SpainMadrid, SpainMadrid, SpainMadrid, SpainMadrid, SpainMadrid, SpainMadrid, Spain
Rome, ItalyRome, ItalyRome, ItalyRome, ItalyRome, ItalyRome, ItalyRome, ItalyRome, ItalyRome, Italy
Amsterdam, NetherlandsAmsterdam, NetherlandsAmsterdam, NetherlandsAmsterdam, NetherlandsAmsterdam, NetherlandsAmsterdam, NetherlandsAmsterdam, NetherlandsAmsterdam, NetherlandsAmsterdam, Netherlands
Bologna, ItalyBologna, ItalyBologna, ItalyBologna, ItalyBologna, ItalyBologna, ItalyBologna, ItalyBologna, ItalyBologna, Italy
Granna, SwedenGranna, SwedenGranna, SwedenGranna, SwedenGranna, SwedenGranna, SwedenGranna, SwedenGranna, SwedenGranna, Sweden
Suomussalmi, FinlandSuomussalmi, FinlandSuomussalmi, FinlandSuomussalmi, FinlandSuomussalmi, FinlandSuomussalmi, FinlandSuomussalmi, FinlandSuomussalmi, FinlandSuomussalmi, Finland
Weymouth, UKWeymouth, UKWeymouth, UKWeymouth, UKWeymouth, UKWeymouth, UKWeymouth, UKWeymouth, UKWeymouth, UK
Towcester, UKTowcester, UKTowcester, UKTowcester, UKTowcester, UKTowcester, UKTowcester, UKTowcester, UKNorthhampton, UK
Evora, PortugalEvora, PortugalEvora, PortugalEvora, PortugalEvora, PortugalEvora, PortugalEvora, PortugalEvora, PortugalEvora, Portugal
Vergato, ItalyVergato, ItalyVergato, ItalyVergato, ItalyVergato, ItalyVergato, ItalyVergato, ItalyVergato, ItalyVergato, Italy
Monghidoro, ItalyMonghidoro, ItalyMonghidoro, ItalyMonghidoro, ItalyMonghidoro, ItalyMonghidoro, ItalyMonghidoro, ItalyMonghidoro, ItalyMonghidoro, Italy
Sasso Marconi, ItalySasso Marconi, ItalySasso Marconi, ItalySasso Marconi, ItalySasso Marconi, ItalySasso Marconi, ItalySasso Marconi, ItalySasso Marconi, ItalySasso Marconi, Italy
Kyustendil, BulgariaKyustendil, BulgariaKyustendil, BulgariaKyustendil, BulgariaKyustendil, BulgariaKyustendil, BulgariaKyustendil, BulgariaKyustendil, BulgariaKyustendil, Bulgaria
Farjestaden, SwedenFarjestaden, SwedenFarjestaden, SwedenFarjestaden, SwedenFarjestaden, SwedenFarjestaden, SwedenFarjestaden, SwedenFarjestaden, SwedenFarjestaden, Sweden
79008_1.wor
Wilmington, MAWilmington, MAWilmington, MAWilmington, MAWilmington, MAWilmington, MAWilmington, MAWilmington, MAWilmington, MA
Toronto, CanadaToronto, CanadaToronto, CanadaToronto, CanadaToronto, CanadaToronto, CanadaToronto, CanadaToronto, CanadaToronto, CanadaCarmel, INCarmel, INCarmel, INCarmel, INCarmel, INCarmel, INCarmel, INCarmel, INCarmel, IN
West Chester, PAWest Chester, PAWest Chester, PAWest Chester, PAWest Chester, PAWest Chester, PAWest Chester, PAWest Chester, PAWest Chester, PA
Schaumburg, ILSchaumburg, ILSchaumburg, ILSchaumburg, ILSchaumburg, ILSchaumburg, ILSchaumburg, ILSchaumburg, ILSchaumburg, IL
Milpitas, CAMilpitas, CAMilpitas, CAMilpitas, CAMilpitas, CAMilpitas, CAMilpitas, CAMilpitas, CAMilpitas, CA
Lake Mary, FLLake Mary, FLLake Mary, FLLake Mary, FLLake Mary, FLLake Mary, FLLake Mary, FLLake Mary, FLLake Mary, FL
Fort Lauderdale, FLFort Lauderdale, FLFort Lauderdale, FLFort Lauderdale, FLFort Lauderdale, FLFort Lauderdale, FLFort Lauderdale, FLFort Lauderdale, FLFort Lauderdale, FL
Sao Paulo, BrazilSao Paulo, BrazilSao Paulo, BrazilSao Paulo, BrazilSao Paulo, BrazilSao Paulo, BrazilSao Paulo, BrazilSao Paulo, BrazilSao Paulo, Brazil
Atlanta, GAAtlanta, GAAtlanta, GAAtlanta, GAAtlanta, GAAtlanta, GAAtlanta, GAAtlanta, GAAtlanta, GA
Tijuana, MexicoTijuana, MexicoTijuana, MexicoTijuana, MexicoTijuana, MexicoTijuana, MexicoTijuana, MexicoTijuana, MexicoTijuana, Mexico
Guadalajara, MexicoGuadalajara, MexicoGuadalajara, MexicoGuadalajara, MexicoGuadalajara, MexicoGuadalajara, MexicoGuadalajara, MexicoGuadalajara, MexicoGuadalajara, Mexico
Brownsville, TXBrownsville, TXBrownsville, TXBrownsville, TXBrownsville, TXBrownsville, TXBrownsville, TXBrownsville, TXBrownsville, TX
Simpsonville, SCSimpsonville, SCSimpsonville, SCSimpsonville, SCSimpsonville, SCSimpsonville, SCSimpsonville, SCSimpsonville, SCSimpsonville, SC
Monterrey, MexicoMonterrey, MexicoMonterrey, MexicoMonterrey, MexicoMonterrey, MexicoMonterrey, MexicoMonterrey, MexicoMonterrey, MexicoMonterrey, Mexico
Ciudad Victoria, MexicoCiudad Victoria, MexicoCiudad Victoria, MexicoCiudad Victoria, MexicoCiudad Victoria, MexicoCiudad Victoria, MexicoCiudad Victoria, MexicoCiudad Victoria, MexicoCiudad Victoria, Mexico
Matamoros, MexicoMatamoros, MexicoMatamoros, MexicoMatamoros, MexicoMatamoros, MexicoMatamoros, MexicoMatamoros, MexicoMatamoros, MexicoMatamoros, Mexico
Robust and Growing Presence in Specialty
Products
• Alternative Energy
• Extreme Environment (e.g. High Temp, Vibration)
• Energy Exploration (e.g. Gas, Oil, Geothermal)
• Specialty Automotive (e.g. Under-Hood, Safety,
Electric Drive Vehicle –“EDV”)
• Lighting
• Medical
• Military/Aerospace
• Telecom Infrastructure
• Power Supplies
13
Targeted Specialty Markets Specialty Products Attributes
• High Reliability (Long-life)
• Low ESR/ESL (Lower Energy Consumption and
Higher Efficiency)
• Resistant to Environmental Stimuli (Heat,
Vibration, Fluids)
• Non-Standard Configurations (Array, Low Profile,
Case Size/Footprint)
• High Voltage
• High Temperature (>125°C)
• High Frequency (>1 Ghz)
KEMET is focusing on specialty markets as its primary areas of growth given the higher margin
profile, recurring revenue potential and increased end market visibility
• In recent years, KEMET has put more focus on growing market share in the specialty markets,
including: alternative energy, extreme environments, medical, and military/aerospace
Specialty Markets are Key to Growth
• Specialty products represent higher margin business and also require a longer product design/life cycle
with greater servicing needs
• In August 2009, KEMET was selected as one of thirty companies to receive a grant from the
Department of Energy
• The $15.1 million award will enable KEMET to produce film and electrolytic capacitors within the
U.S. to support alternative energy products and emerging green technologies, such as hybrid
electric drive vehicles
• Producing these parts in the United States will allow KEMET to effectively compete in the growing
alternative energy market in the Americas
14
KEMET is a leader in the global capacitance space and one of the
largest specialty capacitor technologies companies
Development Activities to Sustain Growth
Well into the Future
15
The breadth and depth of KEMET’s capacitance offering uniquely positions KEMET to capitalize
on critical industry growth trends such as Alternative Energy and Hybrid Vehicle technologies
• KEMET is actively involved with 13 distinct hybrid electric vehicle programs with such companies as
Bosch, Continental, Delphi, TRW and Visteon, with 15 more programs in the developing stages
• KEMET’s F&E capacitors are already designed-in and used in equipment manufactured by
Converteam, Vestas, Gamesa, Emerson and ABB in windmill installations around the globe with
ongoing qualification at GE
• Solar power conversion is another application where KEMET is a key supplier to Siemens, Inge Team,
SolarMax, Kostal and PowerOne
• Power Factor Correction is key to the efficient use of electricity for industry. KEMET capacitors are a
mainstay with industry leaders such as Vacon and Danfoss
Cost Reduction Initiatives
16
• Completed tantalum, ceramic and corporate
headcount optimization initiative
• Successfully renegotiated unfavorable
sourcing contracts
• Fixed cost restructuring in relation to
rationalization of low margin products in
tantalum and ceramics
• Seamlessly relocated tantalum
manufacturing to Mexico and Suzhou
• Integration of Evox Rifa and Arcotronics
Completed Cost Reduction Initiatives In-Process Cost Reduction Initiatives
• Continued relocation / combination of
manufacturing facilities (e.g. F&E) to
improve cost structure and distribution
• Emphasis on further yield improvements
• Gradual deployment of more efficient
internal systems (e.g. Oracle)
• Continued emphasis on operational
excellence via lean Six Sigma initiatives
• New manufacturing technology
development
• Between August 2008 and January 2009, KEMET completed numerous cost reduction initiatives
which have resulted in meaningful savings
• KEMET continues to significantly improve its low-cost production base through numerous cost
reduction initiatives and process improvements
Lean Activities Coupled with Restructuring
to Support Bottom Line Growth
17
• Lean Six-Sigma is at the core of the reduction in working capital as well as manufacturing productivity
and cost improvements
• This lean focus supports KEMET’s global facilities’ moves (US-Mexico / Mexico-China, US-China,
Europe-Mexico), without disruption to customer operations
• This collective knowledge and experience is critical as KEMET moves high volume F&E equipment
from Europe to Mexico and Asia, to production ready facilities, allowing KEMET to serve local markets
in a cost effective manner without interruption
• KEMET’s local administrative and HR capabilities support these moves through the efficient hiring and
training practices that have evolved based on experience
KEMET has a proven track record in reorganizing businesses, moving operations and developing lean
operations to maximize manufacturing efficiency
19
Historical Financial Summary($ in millions)
•The global economic downturn adversely affected
sales throughout FY09 and into FY10
•Reduced manufacturing costs and higher sales
volumes led to increased Adjusted EBITDA in
FY10
•Total debt has decreased by $129 million from
FY08 through Q4 FY10
Revenue Adjusted EBITDA
Total Debt and Total Cash (1)
$490.1
$658.7
$850.1 $804.4
$736.3
$0
$150
$300
$450
$600
$750
$900
FY2006 FY2007 FY2008 FY2009 FY2010
Ceramic Tantalum Film and Electrolytic
$100.0
$330.7
$412.7
$338.3$283.7
$163.8$212.2
$81.4$39.2
$79.2
$0
$100
$200
$300
$400
$500
FY2006 FY2007 FY2008 FY2009 FY2010
Debt Cash
(1) Debt amounts represent face value of debt.
$51.7
$80.2 $79.1
$26.3
$71.0
($30)
$0
$30
$60
$90
FY2006 FY2007 FY2008 FY2009 FY2010
Ceramic Tantalum Film and Electrolytic Corporate
20
Adjusted Net Income
Mar-10 Dec-09 Mar-09
Net income (loss) 317$ (1,779)$ 2,382$
Adjustments:
Amortization included in interest expense 3,806 3,703 2,424
Restructuring charges 6,609 1,322 1,295
Write down of long-lived assets - 656 2,469
(Gain)/loss on disposal of assets (1,501) 240 1,731
Curtailment gains on benefit plan - - (30,835)
Acquisitions integration costs - - 543
Tax impact of adjustments (462) (143) (141)
Total adjustments 8,452 5,778 (22,514)
Adjusted net income (loss) 8,769$ 3,999$ (20,132)$
Adjusted EPS basic 0.11$ 0.05$ (0.24)$
Adjusted EPS diluted 0.06$ 0.03$ (0.24)$
Balance Sheet Highlights
23
(Amounts in millions, except days in
receivables/payables.)
Cash and Cash Equivalents
Restricted Cash
Capital Expenditures
Short-Term Debt
Long-Term Debt
Debt Discount
Total Debt
Equity
Net Working Capital (1)
Days in Receivable (2)
Days in Payables (2) 43 38
213.5$ (3.1) 220.1$
61 63
284.3$ 291.7$
(34.2) (37.1)
249.5$ (8.8) 257.1$
17.9$ 35.0$
265.8 259.2
5.4$ 3.9$
2.2$ 3.9$
2010 Impact 2009
79.2$ 65.0$
Fourth Quarter
March Exchange Rate December
(1) Includes only Receivables, Inventories, and Accounts Payable(2) DSO and DPO are calculated by annualizing the current quarter’s net sales and cost of sales
• Bond offering finalized and funded on Wednesday, May 5, 2010. We
now have in place the new 10.5% Senior Notes in the principal amount of
$230 million which will mature on May 1, 2018
• The principal balance is due at maturity. During the term of this loan, we
will be making semi-annual interest payments beginning November 2010
• The proceeds from these new bonds have been used to prepay all the
debt previously owed to Platinum Equity (principal of $57.8 million),
UniCredit Corporate Banking (principal of $ 104.7 million) and Vishay
Intertechnology (principal of $15.0 million)
• The new 10.5% Senior Notes represent a major milestone in KEMET’s
financial evolution
Recent Developments
26
Recent Developments
• May 18, 2010, completion of KEMET’s tender offer for its 2.25%
Convertible Senior Notes due 2026
• KEMET accepted for purchase $40.5 million in principal amount of
outstanding Notes that were tendered
• $57.5 million in principal amount of Notes, approximately 71 percent
of the principal amount of the outstanding Notes were tendered
• The successful tender offer and the Bond offering greatly improve
KEMET’s balance sheet by eliminating debt and improve cash flow by
reducing debt payments
27
28
Recent Developments – Debt Components($ in millions)
Debt Outstanding after Tender Offer and New Bond Issue
Description Rate
Long-Term
Amount
Short-Term
Amount Total
Convertible Notes (put date November 2011) 2.25% 40.6$ -$ 40.6$
New Senior Notes 10.50% 230.0 - 230.0
Miscellaneous Foreign Subsidiary Debt various 7.1 6.0 13.1
277.7$ 6.0$ 283.7$
Recent Developments
• We have consolidated our Ceramic and Film and Electrolytic Business
Groups under the leadership of Chuck Meeks
• This will allow us to capitalize on the Ceramic team’s proven track
record of consistently demonstrated restructuring capabilities
• We are ready to begin realignment the Film and Electrolytic Business to
achieve profitability. We have reached an agreement with three labor
unions in Italy and with the regional government in Emilia Romagna,
Italy, to proceed with our planned restructuring process
• The realignment will allow us to focus on producing specialty products in
Europe and the U.S. and shift standard and commodity production to
lower cost regions
29
30
•KEMET has successfully restructured and
repositioned its Tantalum and Ceramic businesses
•Total debt has decreased by $129 million from
FY08 to Q4 FY10
•F&E business realignment has been reinitiated.
Expected costs of $35-$40M.
•Forecasted improvement in underlying
Adjusted EBITDA for F&E is projected to be
a $10M improvement in FY2011 and $42M
improvement in FY 2012 over FY2010
respectively. Beginning in Q1FY2012 run
rate expected of $6M positive EBITDA per
quarter over FY2010 average rate of
negative ($6M) per quarter resulting in a $48
million change.
•Ongoing expansion within specialty and
emerging markets will allow KEMET to
continue to further improve margins and
increase pricing
(1) Shown as Fiscal Quarters
Strong Operating Momentum
$150.2
$173.3
$199.9
$213.0
$9.9
$13.5
$22.2
$25.4
$0
$5
$10
$15
$20
$25
$30
$0
$50
$100
$150
$200
$250
Q1 FY10 Q2 FY10 Q3 FY10 Q FY10
Revenue and Adjusted EBITDA (1)
Revenue Adjusted EBITDA
Adjusted EBITDA Reconciliation to Net Income
33
(1) Certain prior periods have been adjusted to conform with current period presentation which is determined by management.
(Amounts in thousands)
Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 FY10
Net income (loss) $ 25,090 $ (93,075) $ (1,779) $ 317 $ (69,447)
Income tax expense (benefit) 1,030 1,712 (93) 2,387 5,036
Interest expense, net 5,788 6,389 7,420 6,223 25,820
Depreciation and amortization expense 12,264 13,288 13,701 13,391 52,644
Share-based compensation expense 241 1,387 160 77 1,865
Increase in value of warrant - 81,088 - - 81,088
Write down of long-lived assets - - 656 - 656
(Gain)/loss on disposal of assets 206 52 240 (1,501) (1,003)
Gain on early extinguishment of debt (38,921) - - - (38,921)
Foreign exchange transaction (gain)/loss 4,221 1,419 523 (2,057) 4,106
Restructuring charges - 1,267 1,322 6,609 9,198
Adjusted EBITDA (1) $ 9,919 $ 13,527 $ 22,150 $ 25,446 $ 71,042
Non-GAAP Financial Measures
34
Non-GAAP Financial Measures
Included in this presentation are certain non-GAAP financial measures designed to complement the financial
information presented in accordance with generally accepted accounting principles in the United States of America because
management believes such measures are useful to investors.
Adjusted operating income (loss)
Adjusted operating income (loss) represents operating income (loss), excluding adjustments which are outlined in
the quantitative reconciliation provided earlier in this presentation. Management uses Adjusted operating income (loss) to evaluate
the Company’s operating performance and believes that Adjusted operating income (loss) is useful to investors because it provides
a supplemental way to possibly better understand the underlying operating performance of the Company. Adjusted operating
income (loss) should not be considered as an alternative to operating income or any other performance measure derived in
accordance with GAAP.
Adjusted net income (loss) and Adjusted EPS
Adjusted net income (loss) and Adjusted EPS represent net income (loss) and EPS, excluding adjustments which are
more specifically outlined in the quantitative reconciliation provided earlier in this presentation. Management uses Adjusted net
income (loss) and Adjusted EPS to evaluate the Company's operating performance and believes that Adjusted net income (loss) and
Adjusted EPS are useful to investors because they provide a supplemental way to possibly better understand the underlying
operating performance of the Company. Adjusted net income (loss) and Adjusted EPS should not be considered as an alternative to
net income, operating income or any other performance measures derived in accordance with GAAP.
Non-GAAP Financial MeasuresContinued
35
Adjusted EBITDA
Adjusted EBITDA represents net income (loss) before income tax expense, interest expense, and depreciation and
amortization expense, adjusted to exclude restructuring charges, impairment write-downs, share-based compensation expense,
gain/loss on the disposal of assets, gain on the early extinguishment of debt, increase in fair value of warrant, and foreign exchange
transaction gain/loss. We present Adjusted EBITDA as a supplemental measure of our performance and ability to service debt. We
also present Adjusted EBITDA because we believe such measure is frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry.
We believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because cash
expenditures on interest are, by definition, available to pay interest, and tax expense is inversely correlated to interest expense
because tax expense goes down as deductible interest expense goes up; depreciation and amortization are non-cash charges. The
other items excluded from Adjusted EBITDA are excluded in order to better reflect our continuing operations.
In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses similar to the
adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future
results will be unaffected by these types of adjustments. Adjusted EBITDA is not a measurement of our financial performance
under GAAP and should not be considered as an alternative to net income, operating income or any other performance measures
derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.
Non-GAAP Financial MeasuresContinued
36
Our Adjusted EBITDA measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute
for analysis of our results as reported under GAAP. Some of these limitations are:
• it does not reflect our cash expenditures, future requirements for capital expenditures or contractual commitments;
• it does not reflect changes in, or cash requirements for, our working capital needs;
• it does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment
on our debt;
• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to
be replaced in the future, and our Adjusted EBITDA measure does not reflect any cash requirements for such replacements;
• it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
• it does not reflect the impact of earnings or charges resulting from matters we consider not be indicative of our ongoing
operations;
• it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and
• other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash
available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our
obligations. You should compensate for these limitations by relying primarily on our GAAP results and using Adjusted
EBITDA only supplementally.