KEMET

Corporation

KeyBanc Conference

Boston, MA

June 2, 2010

Investor Presentation

Company

Overview

Per-Olof LööfChief Executive Officer

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

Financial

Overview

Bill Lowe

EVP and CFO

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)$

21

Strong Operating Trends

GM % 11.9% 12.7% -1.2% 13.6% 14.4% 18.2% 20.2%

($ in millions)

Adjusted EBITDA

22

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

Strong and Growing Cash Position

Cash balances include restricted cash.

24

Recent

Developments &

Conclusion

• 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

Appendix

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.