Rogers Corporation · NYSE:ROG
Rogers — Investor Presentation (March 2024)
20 slides from Rogers's investor presentation, March 2024
Slide 1: Investor Presentation
Investor Presentation MARCH 2024 1
Slide 2: Forward-looking statements
Forward-looking statements Safe Harbor Statement Statements included in this presentation that are not a description of historical facts are forward-looking statements. Words or phrases such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “seek,” “plan,” “expect
Slide 3: Non-GAAP and Additional Information
Non-GAAP and Additional Information Non-GAAP Information This presentation includes the following financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): (1) Adjusted EBITDA, which the Company defines as net inco
Slide 4: Company Overview
ROGERS CORPORATION \ Company Overview
Slide 5: Why Invest In Rogers?
Why Invest In Rogers? Strong, diversified growth opportunities driven by GROWTH FOCUS key secular trends and core markets Proven track record of developing and commercializing INNOVATION LEADER unique material solutions for leading-edge applications A repeatable customer engagement process that has
Slide 6: Our Strategy
Our Strategy Rogers’ proven strategy remains unchanged a MARKET a INNOVATION a OPERATIONAL SYNERGISTIC DRIVEN LEADERSHIP EXCELLENCE M&A Implementing a market- Leveraging our Driving operational Targeting M&A driven business by innovation leadership to excellence to ensure opportunities with aligning
Slide 7: Rogers At A Glance
Rogers At A Glance ~3,300 EMPLOYEES $908 MILLION OF REVENUE IN 2023 Germany U.K. Illinois Belgium Hungary Multiple Sites: 15 MANUFACTURING FACILITIES S. Korea CT, RI, DE 3 GLOBAL INNOVATION CENTERS Arizona China >5,000 CUSTOMERS IN 70 COUNTRIES 7
Slide 8: Who We Are
Who We Are Rogers’ Technologies Solve Complex Challenges Advanced Safety & Extend EV Range Autonomous Driving ADVANCED MATERIAL High Efficiency Critical Defense Communications SOLUTIONS Energy Conversion Improved Reliability in Smartphone Durability Industrial Technologies 8
Slide 9: Rogers Technology
Rogers Technology Solving our customers’ most complex challenges HIGHLY ENGINEERED | DIFFERENTIATED OFFERINGS | MARKET LEADERSHIP BRANDS KEY MARKETS Advanced Electronics Metalized ceramic substrates used in power electronics Electric Solutions (AES) Power interconnects for high Vehicles ADAS current
Slide 10: EV Growth Opportunities
EV Growth Opportunities EV solutions enable improved system performance & lower total cost of ownership Power Substrates EV Battery Solutions Power Interconnects Spine SiC SiC Environmental Power Distribution Seal Cell connection SiC SiC Cooling Plate Spring Pads Pouch & Advanced Prismatic ceramic C
Slide 11: Multi-Year Targets
Multi-Year Targets CONFIDENTIAL 11
Slide 12: Multi-Year Financial Targets
Multi-Year Financial Targets Extending timeline to achieve previously communicated targets beyond 2025 WHAT HAS CHANGED Net Sales Gross Margin • Persistent challenges in the global manufacturing $1.2B - $1.3B 38% - 40% economy, with recovery expected to be gradual • Lack of near-term visibility to r
Slide 13: Market Growth Expectations Over Multi-Year Period
Market Growth Expectations Over Multi-Year Period LOW SINGLE MID SINGLE HIGH TEENS DIGIT DIGIT PLUS GROWTH RATE GROWTH RATE GROWTH RATE CORE HIGH SIGNIFICANT GROWTH GROWTH GROWTH Near-term headwinds from macro Led by A&D and renewable energy markets Phase 1 of new power substrate factory Gradual mar
Slide 14: Financial Overview
Financial Overview CONFIDENTIAL 14
Slide 15: 2023 Results Summary
2023 Results Summary Net Sales Gross Margin % in $M $971 -6% +75 bps 33.8% $908 33.1% 2022 2023 2022 2023 Free Cash Flow* Adjusted EBITDA %* in $M >$60M $74 16.5% -20 bps 16.3% $13 2022 2023 2022 2023 IMP ROV ED G ROSS MA RG IN A N D FCF D ESP ITE LOWER SALES *See Appendix for reconciliation of non-
Slide 16: Recent Results Overview
Recent Results Overview Q4 2023 SUMMARY REVENUE BY MARKET SEGMENT HIGHLIGHTS Significant • Higher Q4 EV/HEV market sales versus the prior quarter Growth Other • Strong full year sales growth in renewable energy and ADAS markets 14% Wireless EV/HEV • New design wins in EV/HEV, renewable energy and me
Slide 17: Capital Allocation Priorities
Capital Allocation Priorities • Capital expenditures for capacity to support EV market Drive Organic Growth • Investments in R&D, sales and other capabilities to support growth • Maintain efficient capital structure Debt Management • Flexibility to support growth • Disciplined approach to acquisitio
Slide 18: Appendix
\ Appendix ROGERS CORPORATION 18
Slide 19: 2023: Adjusted EBITDA and margin reconciliation
2023: Adjusted EBITDA and margin reconciliation ($ in millions) 2022 2023 GAAP net income $116.6 $56.6 Interest expense, net $9.5 $10.1 Income tax expense $23.8 $19.7 Depreciation $29.5 $37.7 Amortization $16.4 $13.4 Stock-based compensation expense $11.8 $14.3 Acquisitions and divestiture related c
Slide 20: 2023: Free cash flow reconciliation
2023: Free cash flow reconciliation ($ in millions) 2022 2023 Net cash provided by operating activities $129.5 $131.4 Non-acquisition capital expenditures ($116.8) ($57.0) Free cash flow $12.7 $74.4 Note: dollars may not add due to rounding. 20 *Free cash flow defined as net cash provided by operati