1. VISHAY Intertechnology Inc. Christèle Gennardi Philippe Fabro Sébastien Rochedy

2. Agenda  Company: key datas  Strategy of Vishay Intertechnology Inc.  Business sectors  Vishay key success factors  Customers  Suppliers and competitors  R&D functions  The SFERNICE Division  The three technologies  First conclusions

3. COMPANY: Key Datas  Foundation in 1962  Exploitation of an invention on ultra-stable resistors (based on metal foil)  Diversification in the field of discrete semiconductors  Turnover 2005: 2.4bn US$  Employees: 20 000  Strategy of growth by acquisitions:  become a leader in the fields of the resistors and capacitors

4. VISHAY STRATEGIC ACQUISITIONS

5. BUSINESS SECTORS  One of the largest manufacturers of discrete semiconductors and passive components.  Used in virtually all types of electronic devices and equipment  Multiple end markets: Industrial, Computer, Automotive, Consumer, Telecommunications, Military, Aerospace, and medical markets.

6. VISHAY KEY SUCCESS FACTORS  Related to Customers: One-stop-shopping Quality state-of-the-art products at competitive prices A continuous stream of new products Superior customer service worldwide (SAP based). Complete range of products Conformity to international quality central (ISO, MIL)  Related to Suppliers: Consolidated purchasing policy Purchasing power for long-term supply and best prices.  Related to labor cost: Move factories to low labor-cost countries (East Europe, Mexico, India, China)

7. CUSTOMERS Three main types of customers:  The OEM (Original Equipment Manufacturer) => 44% of the turnover  The Distributors => 48% of the turnover  The EMS (Electronic Manufacturing Services)=> 8% of the turnover 44% of the turnover 48% of the turnover 8% of the turnover

8. Suppliers and competitors  SUPPLIERS: SUMITOMO for coumpounds DUPOND – BOLORE for plastic film HOECHST – KYOCERA for ceramic substrates BECROMAL for aluminiumComponent BAYER – AIR LIQUIDE for Chemicals  COMPETITORS: Semiconductors: Toshiba, Rohm, Fairchild Semi, Agilent Passive components: Agilent, Yageo, Rohm, Avx.

9. COMPETITORS

10. R&D FUNCTIONS  Goals: Maximize profits by increasing market share and providing technological leadership in discrete components: One-stop-shop Best service Innovative products  Strategy: Increase sales Reduce costs Focus on R&D  Growth and maintening leadership through R&D : Reduce Size Increase Performance Reduce Cost.

11. R&D FUNCTIONS  Belong to the divisions  Study: MOTION TRANSDUCERS DIVISION Team of 5 engineers, managed by Mr LANOT, Director. Turnover : about 30 M€ or 30% of the division, 20% catalogue parts and 80% custom products.  Standard products proposed by the Marketing Department  Custom products developed from customer’s specification: integration of functions.

12. R&D FUNCTIONS FOCUS SEGMENTS OF THE DIVISION:  Automotive : SIEMENS VDO, BOSCH, FORD  Off-road : JOHN DEERE, CATERPILLAR, FENWICK  Aircrafts : AIRBUS, DASSAULT  Air conditioning : CARRIER  Valves : EMERSON  Plastic Injection Machines : mainly Asia manufacturers

13. THE SFERNICE DIVISION  Resistors & Inductors BU  Motion Transducer Department

14. TECHNOLOGIES  Function realised by the Motion Transducer (department of the SFERNICE BU) is twofold : To give an instruction to an Electronic Control Unit (ECU) related to the position one want a part of the machine to reach To feed-back the position of the part to the ECU in order to control that the position is correctly reached.  Contact technology : a wiper moves on a track : T1 : CERMET : ceramic substrate + metal tracks. T2 : Conductive Plastic : metal loaded plastic on ceramic or plastic substrate.  Contactless technology: no mechanical contact : T3 : Using a magnetic element which position is detected by a special Integrated Circuit (IC).

15. M M ECU Engine Exhaust Gas Recirculation Sensor Gear Position Sensor Gas Pedal Position Sensor Throttle Position Sensor Gives an instruction Indicates a position Motion Transducers : Example in Automotive

16. Audit of three technologies ProductServicesProduction processes Management systems Information systems T1 Precision Potentiometer Motion Transducers Screen printing FunctionalProprietary + SAP T2 Gas control AirbusMotion Transducers Cut plastic inked substrate FunctionalProprietary + SAP T3 Contactless transducer Motion Transducers Mechanical assembly of magnet and IC FunctionalProprietary + SAP

17. FIRST CONCLUSIONS  The technologies audited: relatively classical on the market, competitive advantage: very high control of the process.  Most of the critical apparatus are designed and produced within the Division

18. Thank you for your attention To be continued...