Kemet (KEM)

Net sales:

        Net sales for fiscal year 2009 were $804.4 million, which represented a 5.4% decrease from fiscal year 2008 net sales of $850.1 million. Film and Electrolytic sales increased $60.6 million while Tantalum and Ceramic sales decreased by $56.6 million and $49.7 million, respectively. The Arcotronics business was acquired near the beginning of the third quarter of fiscal year 2008. Accordingly, the increase in Film and Electrolytic sales occurred because fiscal year 2009 contained a full year of Arcotronics' sales while fiscal year 2008 contained slightly less than two quarters of Arcotronics' sales. The global economic downturn adversely affected sales throughout the year leading to lower sales in Tantalum and Ceramic, and weaker than expected sales in Film and Electrolytic. Additionally, the downturn worsened over the course of fiscal year 2009 and led to sequentially decreasing sales in each quarter, particularly in the fourth quarter. This decrease in sales is attributable to distributors reducing their inventories in order to allow them to operate in line with forecasted customer demand, and to lower demand from our electronic manufacturing services and original equipment manufacturing customers.

        By region, 25% of net sales for the year ended March 31, 2009 were to customers in North America and South America ("Americas"), 35% were to customers in Asia and Pacific Rim ("APAC"), and 40% were to customers in Europe, Middle East and Africa ("EMEA"). For the year ended March 31, 2008, 28% of net sales were to customers in the Americas, 36% were to customers in APAC, and 36% were to customers in EMEA.

        By channel, 47.4% of net sales for the year ended March 31, 2009, were to distribution customers, 19.4% were to electronic manufacturing services customers, and 33.2% were to original equipment manufacturing customers. For the year ended March 31, 2008, 47.6% of net sales were to distribution

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customers, 17.5% were to electronic manufacturing services customers, and 34.9% were to original equipment manufacturing customers.

Net sales:

        Net sales for fiscal year 2009 were $804.4 million, which represented a 5.4% decrease from fiscal year 2008 net sales of
$850.1 million. Film and Electrolytic sales increased $60.6 million while Tantalum and Ceramic sales decreased by $56.6 million and $49.7 million, respectively.
The Arcotronics business was acquired near the beginning of the third quarter of fiscal year 2008. Accordingly, the increase in Film and Electrolytic sales occurred because fiscal year 2009 contained
a full year of Arcotronics' sales while fiscal year 2008 contained slightly less than two quarters of Arcotronics' sales. The global economic downturn adversely affected sales throughout the year
leading to lower sales in Tantalum and Ceramic, and weaker than expected sales in Film and Electrolytic. Additionally, the downturn worsened over the course of fiscal year 2009 and led to sequentially
decreasing sales in each quarter, particularly in the fourth quarter. This decrease in sales is attributable to distributors reducing their inventories in order to allow them to operate in line with
forecasted customer demand, and to lower demand from our electronic manufacturing services and original equipment manufacturing customers.

        By
region, 25% of net sales for the year ended March 31, 2009 were to customers in North America and South America ("Americas"), 35% were to customers in Asia and Pacific Rim
("APAC"), and 40% were to customers in Europe, Middle East and Africa ("EMEA"). For the year ended March 31, 2008, 28% of net sales were to customers in the Americas, 36% were to customers in
APAC, and 36% were to customers in EMEA.

        By
channel, 47.4% of net sales for the year ended March 31, 2009, were to distribution customers, 19.4% were to electronic manufacturing services customers, and 33.2% were to
original equipment manufacturing customers. For the year ended March 31, 2008, 47.6% of net sales were to distribution

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customers,
17.5% were to electronic manufacturing services customers, and 34.9% were to original equipment manufacturing customers.

Net sales:

        Net sales for fiscal year 2008 were $850.1 million, which represented a 29.1% increase from fiscal year 2007 net sales of $658.7 million. The acquisition of Evox Rifa and Arcotronics resulted in an increase in net sales of 30.5% in fiscal year 2008. Sales revenue for the core business decreased 1.4% due to decreases in average selling prices ("ASPs) from additions to industry capacity and changes in end market demand.

Net sales:

        Net sales for fiscal year 2008 were $850.1 million, which represented a 29.1% increase from fiscal year 2007 net sales of
$658.7 million. The acquisition of Evox Rifa and Arcotronics resulted in an increase in net sales of 30.5% in fiscal year 2008. Sales revenue for the core business decreased 1.4% due to
decreases in average selling prices ("ASPs) from additions to industry capacity and changes in end market demand.

Net Sales

Net sales increased from $22.7 million in the first quarter of fiscal year 2008 to $80.8 million to in the first quarter of fiscal year 2009.  The Arcotronics business, which was acquired in the third quarter of fiscal year 2008, accounted for $47.9 million of the $58.1 million increase.

Net sales:

        Net sales for fiscal year 2007 were $658.7 million, which represented a 34.4% increase from fiscal year 2006 net sales of $490.1 million. The acquisition of the EPCOS tantalum business unit resulted in an increase in net sales of 19.3% in fiscal year 2007. Sales revenue for the core business increased 15.1% due to increased sales volumes. During fiscal year 2007, average selling prices ("ASPs") remained relatively flat for existing products. The Company also had 2,700 new product introductions during fiscal year 2007, of which 336 were first to market. Each of these factors contributed to the increase in core net sales.

Net sales:

        Net sales for fiscal year 2007 were $658.7 million, which represented a 34.4% increase from fiscal year 2006 net sales of $490.1 million. The
acquisition of the EPCOS tantalum business unit resulted in an increase in net sales of 19.3% in fiscal year 2007. Sales revenue for the core business increased 15.1% due to increased sales volumes.
During fiscal year 2007, average selling prices ("ASPs") remained relatively flat for existing products. The Company also had 2,700 new product introductions during fiscal year 2007, of which 336 were
first to market. Each of these factors contributed to the increase in core net sales.

Net sales

Unit sales volumes for the nine months ended December 31, 2007 increased 0.7% as compared to the same period last year.  Average selling prices decreased 6.1% from the nine months ended December 31, 2007 as compared to the same nine month period last year.

Net sales

Unit sales volumes for the six months ended September 30, 2007 decreased 4.4% as compared to the same period last year. Average selling prices increased 2.8% from the six months ended September 30, 2007 as compared to the same six month period last year.

Net sales

Unit sales volumes for the three months ended June 30, 2007 decreased 17.5% as compared to the same period last year.  Average selling prices increased 14.5% from the quarter ended June 30, 2007 as compared to the same quarter last year.

Net sales:

Net sales for fiscal year 2006 were $490.1 million, which represented a 15.2% increase from fiscal year 2005 net sales of $425.3 million. The increase in net sales was primarily attributable to a 19% increase in units shipped offset by a 3% decline in ASPs. Unit volumes shipped were approximately 40.1 billion units as compared to 33.6 billion units in fiscal year 2005. With the exception of fiscal year 2004 and the first half of fiscal year 2005, ASPs historically decreased approximately 7% to 8% annually. During fiscal year 2004 and the first half of fiscal year 2005, ASP decreases significantly exceeded their historical averages. During the last six months of fiscal year 2005, ASPs declined on more historical levels.

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Net Sales

Unit sales volumes for the nine months ended December 31, 2006 increased 3% as compared to the same period last year. Average selling prices increased 18% for the nine-month period ended December 31, 2006 as compared to the same period last year.

Net Sales

Unit sales volumes for the three months ended September 30, 2006 increased 11% as compared to the same period last year. Average selling prices increased 11% for the six-month period ended September 30, 2006 as compared to the same period last year.

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Net sales

Unit sales volumes for the three months ended June 30, 2006 increased 23.2% as compared to the same period last year.  Average selling prices decreased 1.9% from the quarter ended June 30, 2006 as compared to the same quarter last year.

Net sales:

Net sales for fiscal year 2005 were $425.3 million, which represented a 2.0% decrease from fiscal year 2004 net sales of $433.9 million. The decrease in net sales was primarily attributable to a 22% decline in capacitor average selling prices (“ASPs” or “ASP”) with the balance being product mix. Unit volumes increased 24% to approximately 33.6 billion units from approximately 27.1 billion units in fiscal year 2004. With the exception of fiscal year 2004 and the first half of fiscal year 2005, ASPs historically decreased approximately 7% to 8% annually. During fiscal year 2004 and the first half of fiscal year 2005, ASP decreases significantly exceeded their historical averages. During the last six months of fiscal year 2005, ASPs declined on more historical levels.

Net sales

The increase in net sales for the nine-month period ended December 31, 2005 as compared to the same period a year ago was due to increased unit sales volumes.  Unit sales volumes increased 18% over this period; however, Average selling prices decreased by 17.5% on an adjusted product mix basis.

Net Sales

Net sales for the six months ended September 30, 2005, increased 1.0% to $230.7 million as compared to the same period last year.  The increase in net sales was attributable to higher volumes.  Unit volumes in the six-month period ended September 30, 2005 increased 15.5% as compared to the same period last year.  Mix-adjusted average selling prices for the six month period ending September 2005 decreased approximately 17.1% compared to average selling prices for the six month period ending September 2004.

Net sales of surface-mount capacitors were 83.0% of net sales or $191.4 million for the six months ended September 30, 2005, compared to 81.3% of net sales or $185.7 million for the same period last year. Net sales of leaded capacitors were 17.0% of net sales or $39.3 million for the six months ended September 30, 2005, versus 18.7% of net sales or $42.7 million during the same period last year.  Unit volumes increased approximately 16.1% for surface-mount capacitors and decreased approximately 9.2% for leaded capacitors.

Net Sales

Net sales for the three months ended June 30, 2005, decreased 6.8% to $114.1 million as compared to the same period last year.  The decrease in net sales was attributable to lower unit prices.  Unit volumes in the three-month period ended June 30, 2005 increased 15.3% as compared to the same period last year.  Mix-adjusted average selling prices for the June 2005 quarter decreased approximately 18.2% compared to average selling prices for the June 2004 quarter.

Net sales of surface-mount capacitors were 82.3% of net sales or $93.9 million for the three months ended June 30, 2005, compared to 80.4% of net sales or $98.4 million for the same period last year. Net sales of leaded capacitors were 17.7% of net sales or $20.2 million for the three months ended June 30, 2005, versus 19.6% of net sales or $24.0 million during the same period last year.

By region, 44% of net sales for the three months ended June 30, 2005 were to customers in North America, 36% were to Asia, and 20% were to Europe.  By region, 46% of net sales for the three months ended June 30, 2004 were to customers in North America, 31% were to Asia, and 23% were to Europe.

By channel, 56% of net sales for the three months ended June 30, 2005 were to distribution customers, 24% were to Electronic Manufacturing Services customers, and 20% were to Original Equipment Manufacturing customers.  By channel, 56% of net sales for the three months ended June 30, 2004 were to distribution customers, 23% were to Electronic Manufacturing Services customers, and 21% were to Original Equipment Manufacturing customers.

Net sales:

Net sales for fiscal year 2004 were $433.9 million, of which $2.4 million resulted from acquisitions made during fiscal year 2004. Fiscal year 2004 net sales less the acquisitions were $431.5 million, which represented a 4% decrease from fiscal year 2003 net sales of $447.3 million. The decrease in net sales was primarily attributable to a 35% decline in capacitor ASPs with the balance being product mix. Unit volumes increased 54% to approximately 27.1 billion units from approximately 17.6 billion units in fiscal year 2003. ASPs historically decrease approximately 5% to 6% annually. During fiscal year 2003 and the first half of 2004, ASP decreases significantly exceeded their historical averages. During the last six months of fiscal year 2004, ASPs moderated or slightly increased.

Net Sales

Net sales for the nine months ended December 31, 2004, increased 2% to $323.9 million as compared to the same period last year. The increase in net sales was attributable to higher unit volumes for both tantalum and ceramic capacitors. Unit volumes in the nine-month period ended December 31, 2004, exceeded the volumes of the prior period by approximately 29%.  Mix-adjusted average selling prices for the nine-month period ended December 2004 decreased approximately 9% compared to average selling prices for the same nine-month period last year.

Net sales of surface-mount capacitors were 81.4% of total sales or $263.8 million for the nine months ended December 31, 2004, compared to 80.9% of total sales or $256.4 million for the same period last year. Net sales of leaded capacitors were 18.6% of total sales or $60.1 million for the nine months ended December 31, 2004, versus 19.1% of total sales or $60.4 million during the same period last year.  Unit volume increased approximately 27% for surface-mount capacitors and increased approximately 2% for leaded capacitors.

By region, 45% of total sales for the nine months ended December 31, 2004 were to customers in North America, 33% were to Asia, 21% were to Europe, and 1% were to the rest of the world.  By region, 46% of total sales for the nine months ended December 31, 2003 were to customers in North America, 34% were to Asia, 19% were to Europe, and 1% were to the rest of the world.

By channel, 53% of total sales for the nine months ended December 31, 2004 were to distribution customers, 25% were to Electronic Manufacturing Services customers, and 22% were to Original Equipment Manufacturing customers.  By channel, 49% of total sales for the three months ended December 31, 2003 were to distribution customers, 25% were to Electronic Manufacturing Services customers, and 26% were to Original Equipment Manufacturing customers.