Financial Highlights Fiscal years ended March 31 (Dollars in thousands) 2017 2018 2019 Net Sales (1) $ 757,338 $ 1,200,181 $ 1,382,818 Adjusted Operating Income* (1) $ 66,976 $ 142,105 $ 237,235 Stockholders’ Equity (1) $ 155,569 $ 463,875 $ 639,415 *Adjusted Operating Income and Adjusted EBITDA are reconciled to GAAP measures on pages 56 – 59 in the 2019 Form 10-K. (1) Fiscal year ended March 31, 2018 and March 31, 2017 adjusted due to the adoption of Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). Refer to Note 1, “Organization and Significant Accounting Policies” in the 2019 Form 10-K. Cash and Cash Equivalents Working Capital Adjusted EBITDA (in Millions) (in Millions) (in Millions) 450 450 450 $391(1) 400 400 400 $364 350 350 350 300 $287 300 300 $290 $248 (1) 250 250 250 $208 $192 (1) 200 200 200 150 150 150 $110 $105 (1) 100 100 100 50 50 50 0 0 0 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Catalogs and Technical Data COMPONENTEDGE 3D Models, Specifications, Made for Engineers and Search by Engineers search.kemet.com engineeringcenter.com DEAR KEMET SHAREHOLDER, .(0(7FHOHEUDWHGLWVFHQWHQQLDO\HDULQ¿VFDO\HDUE\GHOLYHULQJ UHFRUG¿QDQFLDOUHVXOWV.(0(7¶V¿VFDO\HDUUHVXOWVGHPRQVWUDWH WKHIXQGDPHQWDOVWUHQJWKRIRXUEXVLQHVVDFURVVDEURDGUDQJHRI HOHFWURQLFVVHJPHQWV+LJKOLJKWVLQFOXGH •$FKLHYHGDLQFUHDVHLQVDOHVRYHU¿VFDO\HDU WRELOOLRQDQLQFUHDVHRIPLOOLRQ •*$$3JURVVPDUJLQLQFUHDVHGRYHU¿VFDO\HDU •$GMXVWHG(%,7'$JUHZFRPSDUHGWR¿VFDO\HDUWRPLOOLRQ •(DUQLQJVSHUVKDUHZHUHXSWRRQDQRQ*$$3EDVLV YHUVXVLQ¿VFDO\HDUDQGLQ¿VFDO\HDU $OOWKUHHRIRXUEXVLQHVVVHJPHQWVLPSURYHGRYHUWKHSULRU\HDU:HFRQWLQXHGWRJURZLQ3RO\PHU 7DQWDOXPZKHUHZHDUHWKHPDUNHWOHDGHUDQGLQFUHDVHGRXUVKDUHRIODUJHFDVHPXOWLOD\HU FHUDPLFV,QDOOSURGXFWOLQHVZHH[SDQGHGRXUDXWRPRWLYHFXVWRPHUEDVH:LWKWKHDFTXLVLWLRQ FRPSOHWHG72.,1ZDVVXFFHVVIXOO\LQWHJUDWHGZKLFKLVFRQWLQXLQJWRJHQHUDWHRSHUDWLRQDOV\QHUJLHV Solid Capacitors 7KHFRQWLQXHGGHPDQGIRUODUJHFDVHPXOWLOD\HUFHUDPLFSURGXFWVUHSUHVHQWVDEULJKWIXWXUHIRU RXU&HUDPLFVSURGXFWOLQH2YHUWKLVSDVW¿VFDO\HDUZHKDYHHQWHUHGLQWRWHQ\HDUDJUHHPHQWV WRPDQXIDFWXUHVSHFL¿FTXDQWLWLHVIRUWKUHHGLIIHUHQWFXVWRPHUV7KHWHUPVRIWKHVHDJUHHPHQWV DUHXQLTXHWR.(0(77KH\DUHDWHVWDPHQWWRWKHVWUHQJWKRIRXUUHODWLRQVKLSVZLWKRXUFXVWRPHUV ZKRUHFRJQL]HWKHH[FHSWLRQDOTXDOLW\RI.(0(7¶VSURGXFWV,QFRQQHFWLRQZLWKWKHVHDJUHHPHQWV .(0(7LVSDUWQHULQJZLWKWKHVHFXVWRPHUVLQWKHH[SDQVLRQRIRXUFXUUHQW&HUDPLFVEXVLQHVV 7KHH[SDQVLRQLQFOXGHVLQFUHDVLQJRXUSULRUFDSDFLW\E\ZKLOHHQVXULQJ.(0(7¶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ilm and Electrolytic ,Q-DQXDU\ZHDQQRXQFHGIXUWKHUFRVWVDYLQJDFWLRQVLQ)LOPDQG(OHFWURO\WLFWRLPSURYHJURVV PDUJLQVRSHUDWLQJLQFRPHDQGFDVKÀRZ7KHVWUHDPOLQLQJRIRXUPDQXIDFWXULQJRSHUDWLRQV IRUD[LDOHOHFWURO\WLFFDSDFLWRUVWKURXJKWKHSODQQHGUHORFDWLRQIURP6ZHGHQWR3RUWXJDOZLOO DOORZXVWRLQFUHDVHÀH[LELOLW\FDSDELOLWLHVDQGFRPSHWLWLYHQHVVLQWKHPDUNHWSODFH7KLVSODQQHG FRQVROLGDWLRQRIWKHPDQXIDFWXULQJSURFHVVZLOOUHGXFHRSHUDWLQJFRVWVDQGLPSURYHRXUDELOLW\ WRPHHWWKHFKDQJLQJGHPDQGVRIRXUFXVWRPHUV Magnetics, Sensors & Actuators :HVDZRYHUDOOVWUHQJWKLQDFWXDWRUSURGXFWVJRLQJLQWRWKHVHPLFRQGXFWRUHTXLSPHQWVHJPHQW ,QDGGLWLRQGHPDQGIRUSLH]RSURGXFWVUHODWHGWRWKHFRQVXPHUDQGFRPPHUFLDO¿VK¿QGHU EXVLQHVVZDVVROLG'HPDQGIRUPHWDOPDWHULDOVUHODWHGWRWKHPHGLFDOVHJPHQWUHPDLQHG YHU\VWURQJDQGVWDEOH:HDUHYHU\SOHDVHGZLWKWKHJURZWKLQWKHSLSHOLQHRISURGXFWV WKDWZHDUHJHWWLQJLQWRRXUFKDQQHOSDUWQHUV¶LQYHQWRULHVLQWKH$PHULFDVDQG(XURSHDQ UHJLRQV:HDUHPDNLQJJUHDWVWULGHVZLWKRXUFURVVVHOOLQJRSSRUWXQLWLHVLQDOOUHJLRQV 5HFRQFLOLDWLRQVRI*$$3WRQRQ*$$3¿QDQFLDOPHDVXUHVDUHSUHVHQWHGRQSDJHV±LQWKH)RUP. 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Lowe, Jr. :LOOLDP0/RZH-U &KLHI([HFXWLYH2I¿FHU UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2019 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-15491 ____________________________________________________________________________ KEMET Corporation (Exact name of registrant as specified in its charter) Delaware 57-0923789 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) KEMET Tower, One East Broward Blvd., Fort Lauderdale, Florida 33301 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (954) 766-2800 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of exchange on which registered Common Stock, par value $0.01 KEM New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None. ____________________________________________________________________________ Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No Indicate by check mark