8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): November 1, 2016

KEMET Corporation

(Exact name of registrant as specified in its charter)

Delaware	001-15491	57-0923789
(State of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2835 KEMET Way, Simpsonville, SC	29681
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (864) 963-6300

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On November 1, 2016, KEMET Corporation (the “Company”) issued a News Release announcing the preliminary consolidated results for the second fiscal quarter ended September 30, 2016.

A copy of this News Release is furnished as Exhibit 99.1 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

On November 1, 2016, the Company will host a conference call to discuss financial results for its second fiscal quarter ended September 30, 2016.  The slide package prepared for use by executive management for this presentation is attached hereto as Exhibit 99.2.  All of the information in the presentation is presented as of November 1, 2016, and the Company does not assume any obligation to update such information in the future.

The information included in this Form 8-K, as well as the exhibits referenced herein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits

(a) Not Applicable

(b) Not Applicable

(c) Not Applicable

(d) Exhibits

Exhibit No.	Description of Exhibit
99.1	News Release, dated November 1, 2016 issued by the Company.
99.2	Slide Package prepared for use in connection with the Company’s first fiscal quarter earnings conference call to be held on November 1, 2016.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 1, 2016	KEMET Corporation
By:	/s/ WILLIAM M. LOWE, JR.
	William M. Lowe, Jr.
	Executive Vice President and
	Chief Financial Officer

EX-99.1

News Release

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:	William M. Lowe, Jr.	Richard J. Vatinelle
	Executive Vice President and	Vice President and
	Chief Financial Officer	Treasurer
	williamlowe@kemet.com	richardvatinelle@kemet.com
	864-963-6484	954-766-2838

KEMET REPORTS PRELIMINARY FISCAL 2017SECOND QUARTER RESULTS

• Net sales of $187.3 million within forecast range

• Gross margin improved 180 basis points to 24.8% compared to 23.0% in the prior quarter

• Cash balance increased to $74.8 million--exceeding forecast

• Initiated actions to further improve future operating margins

Greenville, South Carolina (November 1, 2016) - KEMET Corporation (the “Company”) (NYSE: KEM), a leading global supplier of passive electronic components, today reported preliminary results for our second fiscal quarter ended September 30, 2016.

Net sales of $187.3 million for the quarter ended September 30, 2016increased1.3% from net sales of $184.9 million for the prior quarter ended June 30, 2016 and increased0.6% from net sales of $186.1 million for the quarter ended September 30, 2015.

The U.S. GAAP net loss was $5.0 million or $0.11 per basic and diluted share for the quarter ended September 30, 2016. This compares to a net loss of $12.2 million or $0.26 per basic and diluted share for the quarter ended June 30, 2016. Financial results for the current quarter include cost reduction actions resulting in a write down of long-lived assets of $6.2 million and restructuring charges of $4.0 million. For the quarter ended September 30, 2015, the Company reported net income of $7.2 million or $0.14 per diluted share.

The non-U.S. GAAP adjusted net income was $7.0 million or $0.13 per diluted share for the quarter ended September 30, 2016, an improvement of $3.7 million compared to non-U.S. GAAP adjusted net income of $3.3 million or $0.06 per diluted share in the quarter ended June 30, 2016. For the quarter ended September 30, 2015, the Company reported non-U.S. GAAP adjusted net income of $4.3 million or $0.09 per diluted share.

“We continue to meet or exceed our forecast, improve operating margins, and build our cash balance," stated Per Loof, KEMET’s Chief Executive Officer. “We announced further gross margin improvement actions this quarter that we expect will help us to maintain our gross margins at this level or higher. We have created significant operating leverage and are positioned well in our market segments and regions,” continued Loof.

The net income (loss) for the quarters ended September 30, 2016, June 30, 2016 and September 30, 2015 include various items affecting comparability as denoted in the U.S. GAAP to Non-U.S. GAAP reconciliation table included hereafter.

2835 KEMET Way, Simpsonville, SC 29681 USA

864.963.6300 www.kemet.com

About KEMET

The Company’s common stock is listed on the NYSE under the ticker symbol “KEM” (NYSE: KEM).  At the Investor Relations section of our web site at http://www.kemet.com/IR, users may subscribe to KEMET news releases and find additional information about our Company.  KEMET applies world class service and quality to deliver industry leading, high performance capacitance solutions to its customers around the world and offers the world’s most complete line of surface mount and through hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. Additional information about KEMET can be found at http://www.kemet.com.

QUIET PERIOD

Beginning January 1, 2017, we will observe a quiet period during which the information provided in this news release and quarterly report on Form 10-Q will no longer constitute our current expectations. During the quiet period, this information should be considered to be historical, applying prior to the quiet period only and not subject to update by management. The quiet period will extend until the day when our next quarterly earnings release is published.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about the Company’s financial condition and results of operations that are based on management’s current expectations, estimates and projections about the markets, in which the Company operates, as well as management’s beliefs and assumptions. Words such as “expects,” “anticipates,” “believes,” “estimates,” variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.

Factors that may cause actual outcomes and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to the following: (i) adverse economic conditions could impact our ability to realize operating plans if the demand for our products declines, and such conditions could adversely affect our liquidity and ability to continue to operate; (ii) continued net losses could impact our ability to realize current operating plans and could materially adversely affect our liquidity and our ability to continue to operate; (iii) adverse economic conditions could cause the write down of long-lived assets or goodwill; (iv) an increase in the cost or a decrease in the availability of our principal or single-sourced purchased materials; (v) changes in the competitive environment; (vi) uncertainty of the timing of customer product qualifications in heavily regulated industries; (vii) economic, political, or regulatory changes in the countries in which we operate; (viii) difficulties, delays or unexpected costs in completing the restructuring plans; (ix) equity method investment in NEC TOKIN exposes us to a variety of risks; (x) acquisitions and other strategic transactions expose us to a variety of risks; (xi) possible acquisition of NEC TOKIN may not achieve all of the anticipated results; (xii) our business could be negatively impacted by increased regulatory scrutiny and litigation; (xiii) inability to attract, train and retain effective employees and management; (xiv) inability to develop innovative products to maintain customer relationships and offset potential price erosion in older products; (xv) exposure to claims alleging product defects; (xvi) the impact of laws and regulations that apply to our business, including those relating to environmental matters; (xvii) the impact of international laws relating to trade, export controls and foreign corrupt practices; (xviii) volatility of financial and credit markets affecting our access to capital; (xix) the need to reduce the total costs of our products to remain competitive; (xx) potential limitation on the use of net operating losses to offset possible future taxable income; (xxi) restrictions in our debt agreements that limit our flexibility in operating our business; (xxii) failure of our information technology systems to function properly or our

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failure to control unauthorized access to our systems may cause business disruptions; (xxiii) additional exercise of the warrant by K Equity which could potentially result in the existence of a significant stockholder who could seek to influence our corporate decisions; and (xxiv) fluctuation in distributor sales could adversely affect our results of operations.

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KEMET CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Amounts in thousands, except per share data)

(Unaudited)

	Quarters Ended September 30,
	2016			2015
Net sales	$	187,308		$	186,123
Operating costs and expenses:
Cost of sales	140,895			143,317
Selling, general and administrative expenses	25,972			22,948
Research and development	7,116			6,152
Restructuring charges	3,998			23
Write down of long-lived assets	6,193			—
Net (gain) loss on sales and disposals of assets	84			(304		)
Total operating costs and expenses	184,258			172,136
Operating income (loss)	3,050			13,987
Non-operating (income) expense:
Interest income	(6		)	(3		)
Interest expense	9,910			9,811
Change in value of NEC TOKIN option	(1,600		)	(2,200		)
Other (income) expense, net	(905		)	(2,091		)
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(4,349		)	8,470
Income tax expense (benefit)	830			1,438
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(5,179		)	7,032
Equity income (loss) from NEC TOKIN	181			162
Net income (loss)	$	(4,998	)	$	7,194
Net income (loss) per basic share	$	(0.11	)	$	0.16
Net income (loss) per diluted share	$	(0.11	)	$	0.14
Weighted-average shares outstanding:
Basic	46,590			45,767
Diluted	46,590			50,004

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KEMET CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in thousands, except per share data)

(Unaudited)

	September 30, 2016			March 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	74,753		$	65,004
Accounts receivable, net	88,089			93,168
Inventories, net	164,977			168,879
Prepaid expenses and other	30,990			25,496
Total current assets	358,809			352,547
Property, plant and equipment, net of accumulated depreciation of $824,241 and $815,338 as of September 30, 2016 and March 31, 2016, respectively	221,490			241,839
Goodwill	40,294			40,294
Intangible assets, net	30,993			33,301
Investment in NEC TOKIN	15,174			20,334
Deferred income taxes	7,749			8,397
Other assets (1)	2,466			3,068
Total assets (1)	$	676,975		$	699,780
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	—		$	2,000
Accounts payable	64,055			70,981
Accrued expenses	58,015			50,320
Income taxes payable	293			453
Total current liabilities	122,363			123,754
Long-term debt, less current portion (1)	386,098			385,833
Other non-current obligations	82,640			74,892
Deferred income taxes	2,994			2,820
Stockholders’ equity:
Preferred stock, par value $0.01, authorized 10,000 shares, none issued	—			—
Common stock, par value $0.01, authorized 175,000 shares, issued 46,508 shares at September 30, 2016 and March 31, 2016	465			465
Additional paid-in capital	445,662			452,821
Retained deficit	(316,843		)	(299,510		)
Accumulated other comprehensive income	(45,527		)	(31,425		)
Treasury stock, at cost (226 and 611 shares at September 30, 2016 and March 31, 2016, respectively)	(877		)	(9,870		)
Total stockholders’ equity	82,880			112,481
Total liabilities and stockholders’ equity (1)	$	676,975		$	699,780

(1)March 31, 2016 adjusted due to the adoption of Accounting Standards Update ("ASU") No. 2015-03, Interest - Imputation of Interest

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KEMET CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited)

	Six-Month Periods Ended September 30,
	2016			2015
Net income (loss)	$	(17,203	)	$	(29,856	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	18,876			19,182
Equity (income) loss from NEC TOKIN	(404		)	(1,747		)
Non-cash debt and financing costs	378			437
Stock-based compensation expense	2,332			2,607
Change in value of NEC TOKIN option	10,400			27,000
Net (gain) loss on sales and disposals of assets	175			(362		)
Write down of long-lived assets	6,193			—
Pension and other post-retirement benefits	1,417			333
Change in deferred income taxes	1,165			52
Change in operating assets	1,721			(14,474		)
Change in operating liabilities	(1,830		)	(14,514		)
Other	(177		)	410
Net cash provided by (used in) operating activities	23,043			(10,932		)
Investing activities:
Capital expenditures	(10,344		)	(9,268		)
Acquisitions, net of cash received	—			(2,892		)
Proceeds from sale of assets	—			247
Net cash provided by (used in) investing activities	(10,344		)	(11,913		)
Financing activities:
Proceeds from revolving line of credit	—			8,000
Payments on revolving line of credit	—			(3,500		)
Payments on long-term debt	(1,870		)	(481		)
Purchase of treasury stock	(628		)	(575		)
Net cash provided by (used in) financing activities	(2,498		)	3,444
Net increase (decrease) in cash and cash equivalents	10,201			(19,401		)
Effect of foreign currency fluctuations on cash	(452		)	354
Cash and cash equivalents at beginning of fiscal period	65,004			56,362
Cash and cash equivalents at end of fiscal period	$	74,753		$	37,315

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Non-U.S. GAAP Financial Measures

The Company utilizes certain Non-U.S. GAAP financial measures, including "Adjusted gross margin", "Adjusted operating income (loss)", “Adjusted net income (loss)”, “Adjusted net income (loss) per share” and “Adjusted EBITDA”.  Management believes that investors may find it useful to review the Company’s financial results as adjusted to exclude items as determined by management as further described below.

Adjusted Gross Margin

Adjusted gross margin represents net sales less cost of sales excluding adjustments which are outlined in the quantitative reconciliation provided below.  Management uses adjusted gross margin to facilitate our analysis and understanding of our business operations by excluding the items outlined in the quantitative reconciliation provided below which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. The Company believes that adjusted gross margin is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company.  Adjusted gross margin should not be considered as an alternative to gross margin or any other performance measure derived in accordance with U.S. GAAP.

The following table provides reconciliation from U.S. GAAP Gross margin to Non-U.S. GAAP adjusted gross margin (amounts in thousands):

	Quarters Ended
	(Unaudited)
	September 30, 2016			June 30, 2016			September 30, 2015
Net sales	$	187,308		$	184,935		$	186,123
Cost of sales	140,895			142,412			143,317
Gross margin (U.S. GAAP)	46,413			42,523			42,806
Gross margin as a % of net sales	24.8		%	23.0		%	23.0		%
Non-U.S. GAAP adjustments:
Plant start-up costs	119			308			187
Stock-based compensation expense	301			384			459
Adjusted gross margin (non-U.S. GAAP)	$	46,833		$	43,215		$	43,452
Adjusted gross margin as a % of net sales	25.0		%	23.4		%	23.3		%

Adjusted Operating Income (Loss)

Adjusted operating income (loss) represents operating income (loss), excluding adjustments which are outlined in the quantitative reconciliation provided below. Management uses adjusted operating income (loss) to facilitate our analysis and understanding of our business operations by excluding the items outlined in the quantitative reconciliation provided earlier in this presentation which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. The Company believes that adjusted operating income (loss) is useful to investors to provide a supplemental way to understand our underlying operating performance and allows investors to monitor and understand changes in our ability to generate income from ongoing business operations. Adjusted operating loss should not be considered as an alternative to operating income (loss) or any other performance measure derived in accordance with U.S. GAAP.

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Adjusted operating income (loss) is calculated as follows (amounts in thousands):

	Quarters Ended
	(Unaudited)
	September 30, 2016		June 30, 2016		September 30, 2015
Operating income (loss) (U.S. GAAP)	$	3,050	$	8,898	$	13,987
Adjustments:
Write down of long-lived assets	6,193		—		—
Restructuring charges	3,998		688		23
ERP integration/IT transition costs	1,783		1,768		282
Stock-based compensation expense	1,104		1,228		1,328
Legal expenses related to antitrust class actions	766		1,175		541
NEC TOKIN investment-related expenses	194		206		186
Plant start-up costs	119		308		187
Net (gain) loss on sales and disposals of assets	84		91		(304		)
Adjusted operating income (loss) (non-GAAP)	$	17,291	$	14,362	$	16,230

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share

“Adjusted net income (loss)” and “Adjusted net income (loss) per basic and diluted share” represent net income (loss) and net income (loss) per basic and diluted share excluding adjustments which are outlined in the quantitative reconciliation provided below.  The Company believes that these Non-U.S. GAAP financial measures are useful to investors because they provide a supplemental way to understand the underlying operating performance of the Company and allows investors to monitor and understand changes in our ability to generate income from ongoing business operations.  Management uses these Non-U.S. GAAP financial measures to evaluate operating performance by excluding the items outlined in the quantitative reconciliation provided earlier in this presentation which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Non-U.S. GAAP financial measures should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with U.S. GAAP.

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The following table provides reconciliation from U.S. GAAP net income (loss) to Non-U.S. GAAP Adjusted net income (loss) (amounts in thousands):

U.S.GAAP to Non-U.S.GAAP Reconciliation	Quarters Ended
	September 30, 2016			June 30, 2016			September 30, 2015
U.S. GAAP	(Unaudited)
Net sales	$	187,308		$	184,935		$	186,123
Net income (loss)	$	(4,998	)	$	(12,205	)	$	7,194
Net income (loss) per basic share	(0.11		)	(0.26		)	0.16
Net income (loss) per diluted share	(0.11		)	(0.26		)	0.14
Non-U.S. GAAP
Net income (loss)	$	(4,998	)	$	(12,205	)	$	7,194
Adjustments:
Write down of long-lived assets	6,193			—			—
Restructuring charges	3,998			688			23
ERP integration/IT transition costs	1,783			1,768			282
Change in value of NEC TOKIN option	(1,600		)	12,000			(2,200		)
Stock-based compensation expense	1,104			1,228			1,328
Legal expenses related to antitrust class actions	766			1,175			541
Net foreign exchange (gain) loss	(724		)	(1,920		)	(3,171		)
NEC TOKIN investment-related expenses	194			206			186
Amortization included in interest expense	188			190			217
Equity (income) loss from NEC TOKIN	(181		)	(223		)	(162		)
Plant start-up costs	119			308			187
Net (gain) loss on sales and disposals of assets	84			91			(304		)
Income tax effect of non-U.S. GAAP adjustments (1)	29			—			153
Adjusted net income (loss)	$	6,955		$	3,306		$	4,274
Adjusted net income (loss) per basic share	$	0.15		$	0.07		$	0.09
Adjusted net income (loss) per diluted share	$	0.13		$	0.06		$	0.09
Weighted average shares outstanding:
Weighted Average Shares-Basic	46,590			46,349			45,767
Weighted Average Shares-Diluted	53,834			52,097			50,004

(1)         The income tax effect of the excluded items is calculated by applying the applicable jurisdictional income tax rate, considering the deferred tax valuation for each applicable jurisdiction.

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Adjusted EBITDA

Adjusted EBITDA represents net income (loss) before net interest expense, income tax expense (benefit), and depreciation and amortization expense, adjusted to exclude certain items which are outlined in the quantitative reconciliation provided herein.  We use adjusted EBITDA to monitor and evaluate our operating performance and to facilitate internal and external comparisons of the historical operating performance of our business.  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 adjustments to arrive at 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 noted below.  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 U.S. GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.

Our adjusted EBITDA measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. 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 to 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 U.S. GAAP results and using adjusted EBITDA as supplementary information.

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The following table provides a reconciliation from U.S. GAAP net income (loss) to Adjusted EBITDA (amounts in thousands):

	For the Quarters Ended
	(Unaudited)
	September 30, 2016			June 30, 2016			September 30, 2015
Net income (loss) (U.S. GAAP)	$	(4,998	)	$	(12,205	)	$	7,194
Interest expense, net	9,904			9,920			9,808
Income tax expense (benefit)	830			1,800			1,438
Depreciation and amortization	9,440			9,436			9,265
EBITDA (non-GAAP)	15,176			8,951			27,705
Excluding the following items:
Write down of long-lived assets	6,193			—			—
Restructuring charges	3,998			688			23
ERP integration/IT transition costs	1,783			1,768			282
Change in value of NEC TOKIN option	(1,600		)	12,000			(2,200		)
Stock-based compensation expense	1,104			1,228			1,328
Legal expenses related to antitrust class actions	766			1,175			541
Net foreign exchange (gain) loss	(724		)	(1,920		)	(3,171		)
NEC TOKIN investment-related expenses	194			206			186
Equity (income) loss from NEC TOKIN	(181		)	(223		)	(162		)
Plant start-up costs	119			308			187
Net (gain) loss on sales and disposals of assets	84			91			(304		)
Adjusted EBITDA (non-GAAP)	$	26,912		$	24,272		$	24,415

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EX-99.2

Earnings Conference Call November 1, 2016 Quarter Ended September 30, 2016

Cautionary Statement Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about KEMET Corporation's (the "Company") financial condition and results of operations that are based on management's current expectations, estimates and projections about the markets in which the Company operates, as well as management's beliefs and assumptions. Words such as "expects," "anticipates," "believes," "estimates," variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise. Factors that may cause actual outcomes and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to the following: (i) adverse economic conditions could impact our ability to realize operating plans if the demand for our products declines, and such conditions could adversely affect our liquidity and ability to continue to operate; (ii) continued net losses could impact our ability to realize current operating plans and could materially adversely affect our liquidity and our ability to continue to operate; (iii) adverse economic conditions could cause the write down of long-lived assets or goodwill; (iv) an increase in the cost or a decrease in the availability of our principal or single-sourced purchased materials; (v) changes in the competitive environment; (vi) uncertainty of the timing of customer product qualifications in heavily regulated industries; (vii) economic, political, or regulatory changes in the countries in which we operate; (viii) difficulties, delays or unexpected costs in completing the restructuring plans; (ix) equity method investment in NEC TOKIN exposes us to a variety of risks; (x) acquisitions and other strategic transactions expose us to a variety of risks; (xi) possible acquisition of NEC TOKIN may not achieve all of the anticipated results; (xii) our business could be negatively impacted by increased regulatory scrutiny and litigation; (xiii) inability to attract, train and retain effective employees and management; (xiv) inability to develop innovative products to maintain customer relationships and offset potential price erosion in older products; (xv) exposure to claims alleging product defects; (xvi) the impact of laws and regulations that apply to our business, including those relating to environmental matters; (xvii) the impact of international laws relating to trade, export controls and foreign corrupt practices; (xviii) volatility of financial and credit markets affecting our access to capital; (xix) the need to reduce the total costs of our products to remain competitive; (xx) potential limitation on the use of net operating losses to offset possible future taxable income; (xxi) restrictions in our debt agreements that limit our flexibility in operating our business; (xxii) failure of our information technology systems to function properly or our failure to control unauthorized access to our systems may cause business disruptions; (xxiii) additional exercise of the warrant by K Equity which could potentially result in the existence of a significant stockholder who could seek to influence our corporate decisions; and (xxiv) fluctuation in distributor sales could adversely affect our results of operations. 2

Income Statement Highlights U.S. GAAP (Unaudited) 3 For the Quarters Ended (Amounts in thousands, except percentages and per share data) Sep 2016 Jun 2016 Sep 2015 Net sales $ 187,308 $ 184,935 $ 186,123 Gross margin $ 46,413 $ 42,523 $ 42,806 Gross margin as a percentage of net sales 24.8 % 23.0 % 23.0 % Selling, general and administrative $ 25,972 $ 25,914 $ 22,948 SG&A as a percentage of net sales 13.9 % 14.0 % 12.3 % Operating income (loss) $ 3,050 $ 8,898 $ 13,987 Net income (loss) $ (4,998 ) $ (12,205 ) $ 7,194 Per Basic and Diluted Share Data: Per basic and diluted share data: Net income (loss) per basic share $ (0.11 ) $ (0.26 ) $ 0.16 Net income (loss) per diluted share (0.11 ) (0.26 ) 0.14 Weighted avg. shares - basic 46,590 46,349 45,767 Weighted avg. shares - diluted 46,590 46,349 50,004

Income Statement Highlights Non-GAAP (Unaudited) 4 For the Quarters Ended (Amounts in thousands, except percentages and per share data) Sep 2016 Jun 2016 Sep 2015 Net sales $ 187,308 $ 184,935 $ 186,123 Adjusted gross margin $ 46,833 $ 43,215 $ 43,452 Adjusted gross margin as a percentage of net sales 25.0 % 23.4 % 23.3 % Adjusted selling, general and administrative $ 22,475 $ 21,980 $ 21,130 Adjusted SG&A as a percentage of net sales 12.0 % 11.9 % 11.4 % Adjusted operating income (loss) $ 17,291 $ 14,362 $ 16,230 Adjusted net income (loss) $ 6,955 $ 3,306 $ 4,274 Adjusted EBITDA $ 26,912 $ 24,272 $ 24,415 Per share data: Adjusted net income (loss) - basic $ 0.15 $ 0.07 $ 0.09 Adjusted net income (loss) - diluted $ 0.13 $ 0.06 $ 0.09 Weighted avg. shares - basic 46,590 46,349 45,767 Weighted avg. shares - diluted 53,834 52,097 50,004

Financial Highlights (Unaudited) (1) Calculated as accounts receivable, net, plus inventories, net, less accounts payable. (2) Current quarter's accounts receivable divided by annualized current quarter’s Net sales multiplied by 365. (3) Current quarter's accounts payable divided by annualized current quarter's cost of goods sold multiplied by 365. 5 (Amounts in millions, except DSO and DPO) Sep 2016 Jun 2016 FX Impact Cash, cash equivalents $ 74.8 $ 52.9 $ (0.1 ) Capital expenditures $ 4.2 $ 6.2 Short-term debt $ — $ — Long-term debt 386.9 386.9 Debt premium and issuance costs (0.8 ) (0.9 ) Total debt $ 386.1 $ 386.0 $ — Equity $ 82.9 $ 88.4 $ 0.7 Net working capital (1) $ 189.0 $ 190.2 $ — Days in receivables (DSO)(2) 43 44 Days in payables (DPO)(3) 41 43

Financial Trends Cash and Cash Equivalents (Unaudited) 6 (in millions)

Cost Rationalization Drives Margin Improvement U.S. GAAP (Unaudited) 7

Cost Rationalization Drives Margin Improvement Non-GAAP (Unaudited) 8

Gross Margin & Operating Income (Loss) - U.S. GAAP Solid Capacitors (Unaudited) 9 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net sales $ 142,641 $ 141,944 $ 141,284 Gross margin 43,915 40,945 39,723 Gross margin as a percentage of net sales 30.8 % 28.8 % 28.1 % Operating income (loss) $ 35,410 $ 35,079 $ 33,979

Adjusted Gross Margin & Operating Income (Loss) - Non-GAAP Solid Capacitors (Unaudited) 10 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net sales $ 142,641 $ 141,944 $ 141,284 Adjusted gross margin 44,136 41,209 40,053 Adjusted gross margin as a percentage of net sales 30.9 % 29.0 % 28.3 % Adjusted operating income (loss) $ 38,257 $ 35,571 $ 34,889

Gross Margin & Operating Income (Loss) - U.S. GAAP Film & Electrolytics (Unaudited) 11 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net sales $ 44,667 $ 42,991 $ 44,839 Gross margin 2,498 1,578 3,083 Gross margin as a percentage of net sales 5.6 % 3.7 % 6.9 % Operating income (loss) $ (7,096 ) $ (1,467 ) $ 2,217

Adjusted Gross Margin & Operating Income (Loss) - Non-GAAP Film & Electrolytics (Unaudited) 12 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net sales $ 44,667 $ 42,991 $ 44,839 Adjusted gross margin 2,697 2,005 3,399 Adjusted gross margin as a percentage of net sales 6.0 % 4.7 % 7.6 % Adjusted operating income (loss) $ 426 $ (491 ) $ 1,460

Sales Summary - Q2 FY2017 (Unaudited) 13

Appendix

Adjusted Gross Margin Non-GAAP (Unaudited) 15 For the Quarters Ended (Amounts in thousands, except percentages) Sep 2016 Jun 2016 Sep 2015 Net Sales $ 187,308 $ 184,935 $ 186,123 Gross Margin (U.S. GAAP) $ 46,413 $ 42,523 $ 42,806 Gross margin as a percentage of net sales 24.8 % 23.0 % 23.0 % Adjustments: Plant start-up costs 119 308 187 Stock-based compensation expense 301 384 459 Adjusted Gross margin (non-GAAP) $ 46,833 $ 43,215 $ 43,452 Adjusted gross margin as a percentage of net sales 25.0 % 23.4 % 23.3 %

Adjusted Selling, General & Administrative Expenses Non-GAAP (Unaudited) 16 For the Quarters Ended (Amounts in thousands, except percentages) Sep 2016 Jun 2016 Sep 2015 Net sales $ 187,308 $ 184,935 $ 186,123 Selling, general and administrative expenses (U.S. GAAP) $ 25,972 $ 25,914 $ 22,948 Selling, general, and administrative as a percentage of net sales 13.9 % 14.0 % 12.3 % Less adjustments: ERP integration/IT transition costs 1,783 1,768 282 Legal expenses related to antitrust class actions 766 1,175 541 NEC TOKIN investment-related expenses 194 206 186 Stock-based compensation expense 754 785 809 Adjusted selling, general and administrative expenses (non-GAAP) $ 22,475 $ 21,980 $ 21,130 Adjusted selling, general, and administrative as a percentage of net sales 12.0 % 11.9 % 11.4 %

Adjusted Operating Income (Loss) Non-GAAP (Unaudited) 17 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Operating income (loss) (U.S. GAAP) $ 3,050 $ 8,898 $ 13,987 Adjustments: Write down of long-lived assets 6,193 — — Restructuring charges 3,998 688 23 Stock-based compensation expense 1,104 1,228 1,328 ERP integration/IT transition costs 1,783 1,768 282 Legal expenses related to antitrust class actions 766 1,175 541 Plant start-up costs 119 308 187 NEC TOKIN investment-related expenses 194 206 186 Net (gain) loss on sales and disposals of assets 84 91 (304 ) Adjusted operating income (loss) (non-GAAP) $ 17,291 $ 14,362 $ 16,230

Adjusted Net Income (Loss) Non-GAAP (Unaudited) For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net income (loss) (U.S. GAAP) $ (4,998 ) $ (12,205 ) $ 7,194 Adjustments: Write down of long-lived assets 6,193 — — Restructuring charges 3,998 688 23 ERP integration/IT transition costs 1,783 1,768 282 Change in value of NEC TOKIN option (1,600 ) 12,000 (2,200 ) Stock-based compensation expense 1,104 1,228 1,328 Legal expenses related to antitrust class actions 766 1,175 541 Net foreign exchange (gain) loss (724 ) (1,920 ) (3,171 ) NEC TOKIN investment-related expenses 194 206 186 Amortization included in interest expense 188 190 217 Equity (income) loss from NEC TOKIN (181 ) (223 ) (162 ) Plant start-up costs 119 308 187 Net (gain) loss on sales and disposals of assets 84 91 (304 ) Income tax effect of non-U.S. GAAP adjustments (1) 29 — 153 Adjusted net income (loss) (non-GAAP) $ 6,955 $ 3,306 $ 4,274 Adjusted net income (loss) per share - basic $ 0.15 $ 0.07 $ 0.09 Adjusted net income (loss) per share - diluted $ 0.13 $ 0.06 $ 0.09 Weighted avg. shares - basic 46,590 46,349 45,767 Weighted avg. shares - diluted 53,834 52,097 50,004 18 (1) The income tax effect of the excluded items is calculated by applying the applicable jurisdictional income tax rate, considering the deferred tax valuation for each applicable jurisdiction.

Adjusted EBITDA Reconciliation Non-GAAP (Unaudited) 19 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net income (loss) (U.S. GAAP) $ (4,998 ) $ (12,205 ) $ 7,194 Interest expense, net 9,904 9,920 9,808 Income tax expense (benefit) 830 1,800 1,438 Depreciation and amortization 9,440 9,436 9,265 EBITDA (non-GAAP) 15,176 8,951 27,705 Excluding the following items: Write down of long-lived assets 6,193 — — Restructuring charges 3,998 688 23 ERP integration/IT transition costs 1,783 1,768 282 Change in value of NEC TOKIN option (1,600 ) 12,000 (2,200 ) Stock-based compensation expense 1,104 1,228 1,328 Legal expenses related to antitrust class actions 766 1,175 541 Net foreign exchange (gain) loss (724 ) (1,920 ) (3,171 ) NEC TOKIN investment-related expenses 194 206 186 Equity (income) loss from NEC TOKIN (181 ) (223 ) (162 ) Plant start-up costs 119 308 187 Net (gain) loss on sales and disposals of assets 84 91 (304 ) Adjusted EBITDA (non-GAAP) $ 26,912 $ 24,272 $ 24,415

Adjusted Gross Margin - Non-GAAP Solid Capacitors (Unaudited) 20 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net sales $ 142,641 $ 141,944 $ 141,284 Gross margin (U.S. GAAP) 43,915 40,945 39,723 Gross margin as a percentage of net sales 30.8 % 28.8 % 28.1 % Adjustments: Stock-based compensation expense 221 264 330 Adjusted gross margin (non-GAAP) $ 44,136 $ 41,209 $ 40,053 Adjusted gross margin as a percentage of net sales 30.9 % 29.0 % 28.3 %

Adjusted Gross Margin - Non-GAAP Film & Electrolytics (Unaudited) 21 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net sales $ 44,667 $ 42,991 $ 44,839 Gross margin (U.S. GAAP) 2,498 1,578 3,083 Gross margin as a percentage of net sales 5.6 % 3.7 % 6.9 % Adjustments: Stock-based compensation expense 80 119 129 Plant start-up costs 119 308 187 Adjusted gross margin (non-GAAP) $ 2,697 $ 2,005 $ 3,399 Adjusted gross margin as a percentage of net sales 6.0 % 4.7 % 7.6 %

Adjusted Operating Income (Loss) - Non-GAAP Solid Capacitors (Unaudited) 22 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net sales $ 142,641 $ 141,944 $ 141,284 Operating income (loss) (U.S. GAAP) 35,410 35,079 33,979 Adjustments: Write down of long-lived assets 2,076 — — Restructuring charges 558 136 570 Stock-based compensation expense 221 264 330 (Gain) loss on sales and disposals of assets (8 ) 92 10 Adjusted operating income (loss) (non-GAAP) $ 38,257 $ 35,571 $ 34,889

Adjusted Operating Income (Loss) - Non-GAAP Film & Electrolytics (Unaudited) 23 For the Quarters Ended (Amounts in thousands) Sep 2016 Jun 2016 Sep 2015 Net sales $ 44,667 $ 42,991 $ 44,839 Operating income (loss) (U.S. GAAP) (7,096 ) (1,467 ) 2,217 Adjustments: Write down of long-lived assets 4,117 — — Restructuring charges 3,115 549 (749 ) Stock-based compensation expense 80 119 129 Plant start-up costs 119 308 187 (Gain) loss on sales and disposals of assets 91 — (324 ) Adjusted operating income (loss) (non-GAAP) $ 426 $ (491 ) $ 1,460

Adjusted EBITDA Reconciliation Non-GAAP (Unaudited) 24 Quarter Ended LTM (Amounts in thousands, except percentages) Mar 2014 Jun 2014 Sep 2014 Dec 2014 Dec 2014 Net Sales $ 215,821 $ 212,881 $ 215,293 $ 201,310 $ 845,305 Net income (loss) (14,447 ) (3,540 ) 6,330 2,914 (8,743 ) Income tax expense (benefit) (2,811 ) 1,282 2,583 1,359 2,413 Interest expense, net 10,658 10,453 10,284 9,933 41,328 Depreciation and amortization 12,175 10,797 10,177 9,720 42,869 EBITDA 5,575 18,992 29,374 23,926 77,867 Excluding the following items (Non-GAAP): Change in value of NEC TOKIN options (1,777 ) (4,100 ) (6,600 ) (2,500 ) (14,977 ) Equity (gain) loss from NEC TOKIN 4,127 1,675 (232 ) (1,367 ) 4,203 Restructuring charges 5,954 1,830 1,687 6,063 15,534 ERP integration costs / IT transition costs 837 895 409 671 2,812 Stock-based compensation expense 579 994 958 1,232 3,763 Legal expenses related to antitrust class actions — — — 409 409 Net foreign exchange (gain) loss (449 ) 527 (1,351 ) (1,257 ) (2,530 ) NEC TOKIN investment-related expenses 618 580 487 485 2,170 Plant start-up costs 669 1,647 1,114 1,144 4,574 Plant shut-down costs 2,668 889 — — 3,557 Net (gain) loss on sales and disposals of assets (39 ) 365 (550 ) (574 ) (798 ) (Income) loss from discontinued operations (103 ) (6,943 ) 1,400 164 (5,482 ) (Gain) loss on early extinguishment of debt — — — (1,003 ) (1,003 ) Professional fees related to financing activities — — — 1,142 1,142 Inventory revaluation — 2,676 (821 ) (927 ) 928 Write down of long-lived assets 1,118 — — — 1,118 Infrastructure tax 1,079 — — — 1,079 Adjusted EBITDA $ 20,856 $ 20,027 $ 25,875 $ 27,608 $ 94,366 Adjusted EBITDA Margin 9.7 % 9.4 % 12.0 % 13.7 % 11.2 %

25 Adjusted EBITDA Reconciliation Non-GAAP (Unaudited) Quarter Ended LTM (Amounts in thousands, except percentages) Sep 2014 Dec 2014 Mar 2015 Jun 2015 Jun 2015 Net Sales $ 215,293 $ 201,310 $ 193,708 $ 187,590 $ 797,901 Net income (loss) 6,330 2,914 (19,847 ) (37,050 ) (47,653 ) Income tax expense (benefit) 2,583 1,359 3 (248 ) 3,697 Interest expense, net 10,284 9,933 10,016 10,010 40,243 Depreciation and amortization 10,177 9,720 10,074 9,917 39,888 EBITDA 29,374 23,926 246 (17,371 ) 36,175 Excluding the following items (Non-GAAP): Change in value of NEC TOKIN options (6,600 ) (2,500 ) 11,100 29,200 31,200 Equity (gain) loss from NEC TOKIN (232 ) (1,367 ) 2,093 (1,585 ) (1,091 ) Restructuring charges 1,687 6,063 3,437 1,824 13,011 ERP integration costs / IT transition costs 409 671 1,273 4,369 6,722 Stock-based compensation expense 958 1,232 1,328 1,279 4,797 Legal expenses related to antitrust class actions — 409 435 718 1,562 Net foreign exchange (gain) loss (1,351 ) (1,257 ) (2,168 ) 1,049 (3,727 ) NEC TOKIN investment-related expenses 487 485 226 224 1,422 Plant start-up costs 1,114 1,144 651 195 3,104 Net (gain) loss on sales and disposals of assets (550 ) (574 ) 538 (58 ) (644 ) Pension plan adjustment — — — 312 312 (Income) loss from discontinued operations 1,400 164 — — 1,564 (Gain) loss on early extinguishment of debt — (1,003 ) — — (1,003 ) Professional fees related to financing activities — 1,142 — — 1,142 Inventory revaluation (821 ) (927 ) (928 ) — (2,676 ) Adjusted EBITDA $ 25,875 $ 27,608 $ 18,231 $ 20,156 $ 91,870 Adjusted EBITDA Margin 12.0 % 13.7 % 9.4 % 10.7 % 11.5 %

Adjusted EBITDA Reconciliation Non-GAAP (Unaudited) 26 Quarter Ended LTM (Amounts in thousands, except percentages) Dec 2014 Mar 2015 Jun 2015 Sep 2015 Sep 2015 Net Sales $ 201,310 $ 193,708 $ 187,590 $ 186,123 $ 768,731 Net income (loss) 2,914 (19,847 ) (37,050 ) 7,194 (46,789 ) Income tax expense (benefit) 1,359 3 (248 ) 1,438 2,552 Interest expense, net 9,933 10,016 10,010 9,808 39,767 Depreciation and amortization 9,720 10,074 9,917 9,265 38,976 EBITDA 23,926 246 (17,371 ) 27,705 34,506 Excluding the following items (Non-GAAP): Change in value of NEC TOKIN options (2,500 ) 11,100 29,200 (2,200 ) 35,600 Equity (gain) loss from NEC TOKIN (1,367 ) 2,093 (1,585 ) (162 ) (1,021 ) Restructuring charges 6,063 3,437 1,824 23 11,347 ERP integration costs / IT transition costs 671 1,273 4,369 282 6,595 Stock-based compensation expense 1,232 1,328 1,279 1,328 5,167 Legal expenses related to antitrust class actions 409 435 718 541 2,103 Net foreign exchange (gain) loss (1,257 ) (2,168 ) 1,049 (3,171 ) (5,547 ) NEC TOKIN investment-related expenses 485 226 224 186 1,121 Plant start-up costs 1,144 651 195 187 2,177 Net (gain) loss on sales and disposals of assets (574 ) 538 (58 ) (304 ) (398 ) Pension plan adjustment — — 312 — 312 (Income) loss from discontinued operations 164 — — — 164 (Gain) loss on early extinguishment of debt (1,003 ) — — — (1,003 ) Professional fees related to financing activities 1,142 — — — 1,142 Inventory revaluation (927 ) (928 ) — — (1,855 ) Adjusted EBITDA $ 27,608 $ 18,231 $ 20,156 $ 24,415 $ 90,410 Adjusted EBITDA Margin 13.7 % 9.4 % 10.7 % 13.1 % 11.8 %

Adjusted EBITDA Reconciliation Non-GAAP (Unaudited) 27 Quarter Ended LTM (Amounts in thousands, except percentages) Mar 2015 Jun 2015 Sep 2015 Dec 2015 Dec 2015 Net Sales $ 193,708 $ 187,590 $ 186,123 $ 177,184 $ 744,605 Net income (loss) (19,847 ) (37,050 ) 7,194 (8,600 ) (58,303 ) Income tax expense (benefit) 3 (248 ) 1,438 2,760 3,953 Interest expense, net 10,016 10,010 9,808 9,848 39,682 Depreciation and amortization 10,074 9,917 9,265 9,674 38,930 EBITDA 246 (17,371 ) 27,705 13,682 24,262 Excluding the following items (Non-GAAP): Change in value of NEC TOKIN options 11,100 29,200 (2,200 ) (700 ) 37,400 Equity (gain) loss from NEC TOKIN 2,093 (1,585 ) (162 ) 6,505 6,851 Restructuring charges 3,437 1,824 23 1,714 6,998 ERP integration costs / IT transition costs 1,273 4,369 282 167 6,091 Stock-based compensation expense 1,328 1,279 1,328 1,154 5,089 Legal expenses related to antitrust class actions 435 718 541 1,300 2,994 Net foreign exchange (gain) loss (2,168 ) 1,049 (3,171 ) (1,036 ) (5,326 ) NEC TOKIN investment-related expenses 226 224 186 225 861 Plant start-up costs 651 195 187 160 1,193 Plant shut-down costs — — — 231 231 Net (gain) loss on sales and disposals of assets 538 (58 ) (304 ) 129 305 Pension plan adjustment — 312 — — 312 Inventory revaluation (928 ) — — — (928 ) Adjusted EBITDA $ 18,231 $ 20,156 $ 24,415 $ 23,531 $ 86,333 Adjusted EBITDA Margin 9.4 % 10.7 % 13.1 % 13.3 % 11.6 %

28 Adjusted EBITDA Reconciliation Non-GAAP (Unaudited) Quarter Ended LTM (Amounts in thousands, except percentages) Sep 2015 Dec 2015 Mar 2016 Jun 2016 Jun 2016 Net Sales $ 186,123 $ 177,184 $ 183,926 $ 184,935 $ 732,168 Net income (loss) 7,194 (8,600 ) (15,173 ) (12,205 ) (28,784 ) Income tax expense (benefit) 1,438 2,760 2,056 1,800 8,054 Interest expense, net 9,808 9,848 9,925 9,920 39,501 Depreciation and amortization 9,265 9,674 10,160 9,436 38,535 EBITDA 27,705 13,682 6,968 8,951 57,306 Excluding the following items (Non-GAAP): Change in value of NEC TOKIN options (2,200 ) (700 ) — 12,000 9,100 Equity (gain) loss from NEC TOKIN (162 ) 6,505 11,648 (223 ) 17,768 Restructuring charges 23 1,714 617 688 3,042 ERP integration costs / IT transition costs 282 167 859 1,768 3,076 Stock-based compensation expense 1,328 1,154 1,013 1,228 4,723 Legal expenses related to antitrust class actions 541 1,300 482 1,175 3,498 Net foreign exchange (gain) loss (3,171 ) (1,036 ) 122 (1,920 ) (6,005 ) NEC TOKIN investment-related expenses 186 225 265 206 882 Plant start-up costs 187 160 319 308 974 Plant shut-down costs — 231 141 — 372 Net (gain) loss on sales and disposals of assets (304 ) 129 608 91 524 Adjusted EBITDA $ 24,415 $ 23,531 $ 23,042 $ 24,272 $ 95,260 Adjusted EBITDA Margin 13.1 % 13.3 % 12.5 % 13.1 % 13.0 %

Quarter Ended LTM (Amounts in thousands, except percentages) Dec 2015 Mar 2016 Jun 2016 Sep 2016 Sep 2016 Net Sales $ 177,184 $ 183,926 $ 184,935 $ 187,308 $ 733,353 Net income (loss) (8,600 ) (15,173 ) (12,205 ) (4,998 ) (40,976 ) Income tax expense (benefit) 2,760 2,056 1,800 830 7,446 Interest expense, net 9,848 9,925 9,920 9,904 39,597 Depreciation and amortization 9,674 10,160 9,436 9,440 38,710 EBITDA 13,682 6,968 8,951 15,176 44,777 Excluding the following items (Non-GAAP): Change in value of NEC TOKIN options (700 ) — 12,000 (1,600 ) 9,700 Equity (gain) loss from NEC TOKIN 6,505 11,648 (223 ) (181 ) 17,749 Restructuring charges 1,714 617 688 3,998 7,017 ERP integration costs / IT transition costs 167 859 1,768 1,783 4,577 Stock-based compensation expense 1,154 1,013 1,228 1,104 4,499 Legal expenses related to antitrust class actions 1,300 482 1,175 766 3,723 Net foreign exchange (gain) loss (1,036 ) 122 (1,920 ) (724 ) (3,558 ) NEC TOKIN investment-related expenses 225 265 206 194 890 Plant start-up costs 160 319 308 119 906 Plant shut-down costs 231 141 — — 372 Net (gain) loss on sales and disposals of assets 129 608 91 84 912 Write down of long-lived assets — — — 6,193 6,193 Adjusted EBITDA $ 23,531 $ 23,042 $ 24,272 $ 26,912 $ 97,757 Adjusted EBITDA Margin 13.3 % 12.5 % 13.1 % 14.4 % 13.3 % Adjusted EBITDA Reconciliation Non-GAAP (Unaudited)

Adjusted EBITDA Reconciliation Non-GAAP (Unaudited) 30 Fiscal Year (Amounts in thousands, except percentages) 2015 2016 Net Sales $ 823,192 $ 734,823 Net income (loss) (14,143 ) (53,629 ) Income tax expense (benefit) 5,227 6,006 Interest expense, net 40,686 39,591 Depreciation and amortization 40,768 39,016 EBITDA 72,538 30,984 Excluding the following items (Non-GAAP): Change in value of NEC TOKIN options (2,100 ) 26,300 Equity (gain) loss from NEC TOKIN 2,169 16,406 Restructuring charges 13,017 4,178 ERP integration costs / IT transition costs 3,248 5,677 Stock-based compensation expense 4,512 4,774 Legal expenses related to antitrust class actions 844 3,041 Net foreign exchange (gain) loss (4,249 ) (3,036 ) NEC TOKIN investment-related expenses 1,778 900 Plant start-up costs 4,556 861 Plant shut-down costs 889 372 Net (gain) loss on sales and disposals of assets (221 ) 375 Pension plan adjustment — 312 (Income) loss from discontinued operations (5,379 ) — (Gain) loss on early extinguishment of debt (1,003 ) — Professional fees related to financing activities 1,142 — Adjusted EBITDA $ 91,741 $ 91,144 Adjusted EBITDA Margin 11.1 % 12.4 %

Non-GAAP Financial Measures 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 for the reasons described below. Adjusted gross margin Adjusted gross margin represents net sales less cost of sales excluding adjustments which are outlined in the quantitative reconciliation provided earlier in this presentation. Management uses Adjusted gross margin to facilitate our analysis and understanding of our business operations by excluding the items outlined in the quantitative reconciliation provided earlier in this presentation which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. The Company believes that Adjusted gross margin is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company. Adjusted gross margin should not be considered as an alternative to gross margin or any other performance measure derived in accordance with GAAP. Adjusted selling, general and administrative expenses Adjusted selling, general and administrative expenses represents selling, general and administrative expenses excluding adjustments which are outlined in the quantitative reconciliation provided earlier in this presentation. Management uses Adjusted selling, general and administrative expenses to facilitate our analysis and understanding of our business operations by excluding the items outlined in the quantitative reconciliation provided earlier in this presentation which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. The Company believes that Adjusted selling, general and administrative expenses is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company. Adjusted selling, general and administrative expenses should not be considered as an alternative to selling, general and administrative expenses or any other performance measure derived in accordance with GAAP. 31

Non-GAAP Financial Measures Continued 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 to facilitate our analysis and understanding of our business operations by excluding the items outlined in the quantitative reconciliation provided earlier in this presentation which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. The Company believes that Adjusted operating income is useful to investors to provide a supplemental way to understand the underlying operating performance of the Company and monitor and understand changes in our ability to generate income from ongoing business operations. Adjusted operating income should not be considered as an alternative to operating loss 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 by excluding the items outlined in the quantitative reconciliation provided earlier in this presentation which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. The Company believes that Adjusted net income (loss) and Adjusted EPS are useful to investors because they provide a supplemental way to understand the underlying operating performance of the Company and allows investors to monitor and understand changes in our ability to generate income from ongoing business operations. Adjusted net income (loss) and Adjusted EPS should not be considered as alternatives to net income, operating income or any other performance measures derived in accordance with GAAP. 32

Non-GAAP Financial Measures Continued Adjusted EBITDA Adjusted EBITDA represents net loss before income tax expense (benefit), interest expense, net, and depreciation and amortization expense, excluding adjustments which are more specifically outlined in the quantitative reconciliation provided earlier in this presentation. 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. 33

Non-GAAP Financial Measures Continued 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 to 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. 34