Rogers Corporation · NYSE:ROG
Rogers — Investor Presentation (November 2023)
17 slides from Rogers's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
Investor Presentation NOVEMBER 2023
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: Introductions
Introductions Colin Gouveia Ram Mayampurath President & Senior Vice President & Chief Executive Officer Chief Financial Officer 4
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 a a a MARKET INNOVATION 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 aligni
Slide 7: Rogers At A Glance
Rogers At A Glance ~3,600 EMPLOYEES $971 MILLION OF REVENUE IN 2022 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: Growth Opportunities Across Our End Markets
Growth Opportunities Across Our End Markets Introduced at March 2023 Investor Day GDP PLUS 8% - 10% 20% - 25% GROWTH RATE GROWTH RATE GROWTH RATE CORE HIGH SIGNIFICANT GROWTH GROWTH GROWTH Strong cash generation Strong growth applications Fastest growing opportunity <50% of YTD 2023 revenue >30% of
Slide 11: 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 12: Our Path Forward
Our Path Forward Achieving Breakthrough Growth and Profitability • Financial Performance ELEVATE • Opportunity Funnel Leads To Increased Design Wins 2025+ • Commercialization Of Innovation Pipeline ACCELERATE • Secular Market Trends 2024 - 2025 • Commercial Excellence • Secured design Wins Begin To
Slide 13: Path to Margin Enhancement
Path to Margin Enhancement SECULAR Accelerating Growth TAILWINDS STRONG PRODUCT Global Manufacturing Efficiency OFFERING MANUFACTURING EXCELLENCE Sourcing and Supply Chain Savings SOURCING STRATEGIES Cost Reductions from Design Improvements MACRO Cost Increase and Inflationary Challenges ENVIRONMENT
Slide 14: 2023 Progress
2023 Progress Gross Margin % Adjusted EBITDA % 35.1% 19.8% 16.0% 31.6% Q3 2022 Q3 2023 Q3 2022 Q3 2023 D RIV IN G P ROF ITA BILITY IMP ROV EMEN TS • Lower direct and indirect procurement costs • Factory footprint optimization • Divestiture of low-margin, non-core business • Managing operating expens
Slide 15: 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 16: Appendix
\ Appendix ROGERS CORPORATION 16
Slide 17: Q3 2023: Adjusted EBITDA and margin reconciliation
Q3 2023: Adjusted EBITDA and margin reconciliation ($ in millions) Q3 2022 Q3 2023 GAAP net income $14.8 $19.0 Interest expense, net $2.9 $2.3 Income tax expense $2.8 $7.2 Depreciation $7.3 $8.1 Amortization $4.1 $3.4 Stock-based compensation expense $3.5 $3.8 Acquisitions and divestiture related co