VISHAY INTERTECHNOLOGY, INC.

VISHAY INTERTECHNOLOGY, INC. CORPORATE PRESENTATION NOVEMBER 2010 VISHAY TODAY GROWTH MARKETS Q3 RESULTS LOOKING AHEAD

NOTES ON FORWARD-LOOKING STATEMENTS Comments in this presentation other than statements of historical fact may constitute forwardlooking 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. NON-GAAP FINANCIAL MEASURES 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. 2

VISHAY TODAY VISHAY TODAY GROWTH MARKETS Q3 RESULTS LOOKING AHEAD

VISHAY TODAY 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 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 4

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 to our customers Grow at a faster rate than electronics markets Vishay participates in 5

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 Net cash positive 6

VISHAY TODAY SALES IN MILLION 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 GROWTH THROUGH ACQUISITIONS Vitramon Roederstein Draloric Sprague Dale Sfernice Siliconix, Telefunken International Rectifier PCS Spin-off Vishay BCcomponents Precision Group Kemet wet tantalum General Semiconductor, Infineon infrared 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 YEAR Vishay excl. VPG Approx. $2,600M 7

VISHAY TODAY BROAD MARKET PENETRATION MEDICAL 3% MILITARY/AERO 6% COMPUTING 20% CONSUMER 9% AUTOMOTIVE 15% POWER SUPPLIES 10% TELECOM 12% ASIA 41% AMERICAS 23% INDUSTRIAL 25% END MARKETS DISTRIBUTION 51% EMS 10% EUROPE 36% VISHAY REVENUES YTD SEP 2010 EXCL. VISHAY PRECISION GROUP OEM 39% GEOGRAPHY SALES CHANNELS 8

VISHAY TODAY BROAD CUSTOMER BASE NO SINGLE OEM CUSTOMER REPRESENTS OVER 5% OF SALES OEM EMS DISTRIBUTION 9

VISHAY TODAY BALANCED PRODUCT PORTFOLIO MOSFETS 24% CAPACITORS 20% DIODES 23% RESISTORS INDUCTORS 24% INFRARED OPTO 9% 44% PASSIVES - 56% SEMICONDUCTORS VISHAY REVENUES YTD SEPTEMBER 2010 EXCL. VISHAY PRECISION GROUP 10

VISHAY TODAY BROADEST LINE OF DISCRETE SEMICONDUCTORS AND PASSIVE COMPONENTS DIODES MOSFETs Diodes, Rectifiers MOSFETs Fairchild Int. Rectifier Infineon KEMET KOA Murata Nichicon NXP (Philips) ON Semi Panasonic Rohm Sharp ST Micro TDK/EPCOS Toshiba Yageo = Major Position = Minor Position Source: Company estimates SEMICONDUCTORS PASSIVE COMPONENTS Infrared Components OPTO CAPACITORS RESISTORS Power, Optocouplers Ceramic Power Resistors Sensors Aluminum, Film, SMD Variable, LEDs Film, Tantalum MAGNETICS Inductors, Transformers VISHAY Avago AVX 11

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 12

VISHAY TODAY TECHNOLOGY LEADER IN SEMICONDUCTORS #1 worldwide in power rectifiers #1 worldwide in low-voltage power MOSFETs #1 worldwide in infrared components Source: WSTS, IMS, Company estimates 13

VISHAY TODAY 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: Israeli shekel, Czech koruna, Chinese yuan 14

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 Restructuring cash costs of $48 million in 2009 No material restructuring charges expected for 2010 and 2011: all defined restructuring programs implemented or announced 15

VISHAY TODAY ADJUSTED GROSS MARGIN MILLIONS USD 800 800 40% % OF SALES 40% 700 700 35% 35% 600 600 30% 30% 500 500 25% 25% 400 400 20% 20% 300 300 15% 15% 200 200 10% 10% 100 100 5% 5% 0 02 03 04 05 06 07 08 09 00% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 0% 16

VISHAY TODAY OPERATING MARGIN MILLIONS USD % OF SALES 300 300 30% 30% 250 250 25% 25% 200 200 20% 20% 150 150 15% 15% 100 100 10% 10% 50 50 5% 5% 0 00% 0% (50) (50) -5% -5% (100) (100) -10% -10% (150) 02 03 04 05 06 07 08 09 (150) -15% Q1 09Q2 09Q3 09Q4 09Q1 10Q2 10Q3 10-15% 2008: Operating Loss was ($1,648.7), see reconciliation schedule 17

VISHAY TODAY ADJUSTED OPERATING MARGIN MILLIONS USD % OF SALES 280 280 28% 28% 250 250 25% 25% 220 220 22% 22% 190 190 19% 19% 160 160 16% 16% 130 130 13% 13% 100 100 10% 10% 70 70 7% 7% 40 40 4% 4% 10 10 1% 1% (20) (20) -2% -2% (50) 02 03 04 05 06 07 08 09 (50) -5% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10-5% 18

VISHAY TODAY RECONCILIATION OF GAAP TO ADJUSTED in millions USD Q310 Q2 10Q1 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 writedowns 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) 19

VISHAY TODAY CAPITAL EXPENDITURES MILLION USD 350 MILLION USD 300 250 200 150 100 50 0 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 FC 10 20

VISHAY TODAY STRONG GENERATION OF FREE CASH CASH FLOWS FROM OPERATIONS LESS CAPITAL EXPENDITURES PLUS PROCEEDS FROM SALE OF PROPERTY AND EQUIPMENT MILLIONS $350 $300 $250 $200 $150 $100 $50 $0 ($50) MILLIONS $350 $300 $250 $200 $150 $100 $50 $0 ($50) ($100) 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 FC 10 ($100) 21

VISHAY TODAY NET CASH POSITIVE as of October 2, 2010 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 22

NEW GROWTH MARKETS VISHAY TODAY GROWTH MARKETS Q2 RESULTS 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 24

NEW GROWTH MARKETS APPLICATION EXAMPLE FOR HYBRIDS: INVERTER VISHAY ADVANTAGES: Ability to Customize High current inductors Superior Switching Performance Good Thermal Performance Battery shunt current sense resistors 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 25

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 26

NEW GROWTH MARKETS VISHAY ADVANTAGES: Low Forward Loss Excellent Stability Transient Immunity APPLICATION EXAMPLE FOR START/STOP: DC/DC CONVERTER Electrolytic boost capacitors High break down voltage dividers Power Metal Strip current sense resistors IHLP inductors MOSFETs, TMBS Schottky rectifiers 27

NEW GROWTH MARKETS ALTERNATIVE ENERGY WIND AND SOLAR 25% CAGR FOR SOLAR INSTALLATIONS 2008-2013 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 28

NEW GROWTH MARKETS KEY COMPONENTS FOR WIND AND SOLAR ENERGY VISHAY ADVANTAGES: Long Life, High Reliability High Power Density Safety Approvals Power Schottky by-pass diodes Discharge and chopper resistors Snap-in & screw terminal electrolytic capacitors Phase-leg thyristors, SCR-modules Power capacitors 29

Q3 2010 FINANCIAL RESULTS VISHAY TODAY GROWTH MARKETS Q3 RESULTS LOOKING AHEAD

Q3 FINANCIAL INFORMATION 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 31

Q3 FINANCIAL INFORMATION 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 32

Q3 FINANCIAL INFORMATION ADJUSTED FINANCIAL RESULTS in millions, except per share amounts Q3 2010 1 Q3 2009 Q2 2010 1 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 1) No adjustments for Q2 and Q3 2010 33

Q3 FINANCIAL INFORMATION RECONCILIATION OF GAAP TO ADJUSTED 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 34

Q3 FINANCIAL INFORMATION BALANCE SHEET OVERVIEW 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 * Long term debt includes $ 95 million of exchangeable unsecured notes due in 92 years in millions Q2 2008 Q1 2009 35

Q3 FINANCIAL INFORMATION 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 Q2 2008 Q1 2009 36

Q3 FINANCIAL INFORMATION 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 Book-to-bill Asia 0.88 1.07 1.70 1.29 1.12 37

Q3 FINANCIAL INFORMATION 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 Backlog in months 4.4 4.2 4.3 3.1 2.9 38

Q3 FINANCIAL INFORMATION VISHAY SALES EXCL. VISHAY PRECISION GROUP $ in millions 750 700 650 600 550 500 450 400 350 300 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 39

Q3 FINANCIAL INFORMATION VISHAY GROSS MARGIN EXCL. VISHAY PRECISION GROUP % 40 35 30 25 20 15 10 5 0 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 40

Q3 FINANCIAL INFORMATION VISHAY SALES BY PRODUCT SEGMENT $ in millions 200 $ in millions 200 160 160 120 120 80 80 40 40 0 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 0 MOSFETs DIODES OPTO Res/Ind excl. Foil Capacitors 41

Q3 FINANCIAL INFORMATION VISHAY GROSS MARGINS BY PRODUCT SEGMENTS % % 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 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 0 MOSFETs DIODES OPTO Res/Ind excl. Foil Capacitors 42

Q3 FINANCIAL INFORMATION GUIDANCE FOR Q4 2010 Revenues for Vishay excl. VPG of $650 to $690 million at performance levels close to Q3 2010 43

LOOKING AHEAD VISHAY TODAY GROWTH MARKETS Q3 RESULTS LOOKING AHEAD

LOOKING AHEAD LEVERAGING CURRENT MODEL WHILE RETURNING TO PRE-CRISIS SALES LEVELS 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, at least $0.40 drop to operating profit 45

LOOKING AHEAD LEVERAGING CURRENT MODEL WHILE RETURNING TO PRE-CRISIS SALES LEVELS 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 of medium to high 20s 46

LOOKING AHEAD AFTER ECONOMIC RECOVERY IMPROVE EPS BY OUTGROWING OUR 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 acquisitions 47

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 48

LOOKING AHEAD TARGETED ACQUISITION STRATEGY Solid product portfolios complementing Vishay s existing product lines Board decision to limit maximum debt/ebitda for Vishay plus target: 2.5x 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% 49

LOOKING AHEAD 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 50

SUMMARY Vishay has emerged from the crisis stronger Further improve EPS by outgrowing end markets through acquisitions Maintain strong financial position 51