Slide 1: Q2 2023 Earnings Call
Q2 2023 Earnings Call AUGUST 3, 2023 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 operating income, which the Company defines a
Slide 4: Introductions
Introductions Colin Gouveia Ram Mayampurath President & Senior Vice President & Chief Executive Officer Chief Financial Officer 4
Slide 5: 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 • Secular Market Trends ACCELERATE • Commercial Excellence 2024 - 2025 • Secured Design Wins Begin To
Slide 6: Power Substrate Capacity Expansion in China
Power Substrate Capacity Expansion in China Highlights: • Significant increase in curamik® substrate capacity to support growing demand for silicon carbide (SiC) power semiconductor devices • New capacity will serve EV and renewable energy markets, similar to existing flagship factory in Germany • C
Slide 7: Results Overview
Results Overview Q2 2023 SUMMARY REVENUE BY MARKET SEGMENT HIGHLIGHTS • Continued execution on profitability improvement actions Other • Gross margin of 34.5% improved 180 bps versus the prior quarter 14% Wireless EV/HEV • Higher sales in the portable electronics and Aerospace and Infrastructure 21%
Slide 8: New ESG Report Supplement
New ESG Report Supplement Highlights: • An update to Rogers 2021 ESG Report • Covers the period from Jan 1 to Dec 31, 2022 • Features third-party verification of greenhouse gas emissions for 2021 and 2022 • Includes extended reporting of employee health and safety metrics Rogers 2023 supplement and
Slide 9: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights ($ in millions, except EPS) Q2-2023 Q1-2023 Net sales $230.8 $243.8 Gross margin $79.6 $79.7 Gros s ma rgi n % 34.5% 32.7% Operating income $27.9 ($0.3) Opera ti ng ma rgi n % 12.1% -0.1% Adjusted operating income* $31.0 $25.5 * Adjus ted opera ti ng ma rgi n % 13.4% 10.
Slide 10: Q2 2023 Revenue Results
Q2 2023 Revenue Results Consolidated Revenue QoQ Revenue by Operating Segment QoQ** (5.6%) (4.2%) +0.3% (5.3%) $135.9 $130.2 (6.7%) ($ in millions) ($ in millions) $243.8 $13.8 $0.7 $230.8 $102.2 $95.3 Q1'23 Volume Currency Q2'23 AES Q1'23 AES Q2'23 EMS Q1'23 EMS Q2'23 & Other* • Revenues of $230.8
Slide 11: Q2 2023 Gross Margin and Operating Income Results
Q2 2023 Gross Margin and Operating Income Results Q2 Gross Margin Q2 Operating Income QoQ ($ in millions) (3.7%) +2.1% (0.1%) ($ in millions) $6.2 +1.4% $6.6 $79.7 $1.7 $79.6 $2.9 $15.4 $1.2 $27.9 32.7% 34.5% ($0.3) 12.1% Q1'23 Volume* Performance Supply Q2'23 Q1'23 Other Restructuring Other operati
Slide 12: Cash Utilization
Cash Utilization Net cash provided by operating activities $ 17.5 Net cash used in investing activities $ (24.6) Net cash provided by (used in) financing activities $ (89.5) ($ in millions) $78.8 Effect of exchange rate fluctuations $ 2.1 Net increase (decrease) in cash $ (94.4) $85.0 $27.9 $23.3 $5
Slide 13: Q3 2023 Guidance
Q3 2023 Guidance Net sales $230M - $240M Gross Margin 34.0% - 35.0% EPS $1.20 - $1.40 Adjusted EPS* $1.05 - $1.25 *See reconciliation of adjusted earnings per diluted share to GAAP earnings per diluted share in the appendix. 13
Slide 14: Appendix
\ Appendix ROGERS CORPORATION, 14
Slide 15: Q2 2023: Adjusted operating expenses reconciliation
Q2 2023: Adjusted operating expenses reconciliation* ($ in millions) Q1-23($) Q1-23(%) Q2-23($) Q2-23(%) GAAP operating expenses $ 80.0 32.8% $ 51.7 22.4% Acquisitions and divestiture related costs: Acquisition and related integration costs $ (0.1) (0.0%) $ (0.0) (0.0%) Dispositions $ (1.2) (0.5%) $
Slide 16: Q2 2023: Adjusted operating income and margin reconciliation
Q2 2023: Adjusted operating income and margin reconciliation ($ in millions) Q1-23($) Q1-23(%) Q2-23($) Q2-23(%) GAAP operating income (loss) and margin $ (0.3) (0.1%) $ 27.9 12.1% Acquisitions and divestiture related costs: Acquisition and related integration costs $ 0.1 0.0% $ 0.0 0.0% Disposition
Slide 17: Q2 2023: Adjusted EBITDA and adjusted EBITDA margin reconciliation
Q2 2023: Adjusted EBITDA and adjusted EBITDA margin reconciliation ($ in millions) Q1-23($) Q2-23($) GAAP net income $ (3.5) $ 17.9 Interest expense, net $ 3.5 $ 2.8 Income tax expense $ (0.1) $ 7.3 Depreciation $ 11.3 $ 10.4 Amortization $ 3.3 $ 3.3 Stock-based compensation expense $ 2.1 $ 5.0 Acqu
Slide 18: Q2 2023: Adjusted net income reconciliation
Q2 2023: Adjusted net income reconciliation ($ in millions) Q1-23($) Q1-23(%) Q2-23($) Q2-23(%) GAAP Net Income $ (3.5) (1.4%) $ 17.9 7.7% Acquisitions and divestiture related costs: Acquisition and related integration costs $ 0.1 0.0% $ 0.0 0.0% Acquisition intangible amortization $ 3.3 1.4% $ 3.3
Slide 19: Q2 2023: Adjusted earnings per share reconciliation
Q2 2023: Adjusted earnings per share reconciliation Q1-23($) Q2-23($) GAAP earnings per diluted share $ (0.19) $ 0.96 Acquisitions and divestiture related costs: Acquisition and related integration costs $ 0.00 $ 0.00 Dispositions $ 0.05 $ 0.00 Loss/(gain) on sale or disposal of assets $ (0.00) $ (0
Slide 20: Q2 2023: Free cash flow reconciliation
Q2 2023: Free cash flow reconciliation ($ in millions) Q1-23($) Q2-23($) Net cash provided by operating activities $ 1.8 $ 15.7 Non-acquisition capital expenditures $ (16.4) $ (11.5) Free cash flow $ (14.6) $ 4.2 Note: dollars may not add due to rounding. 20 *Free cash flow defined as net cash provi
Slide 21: Q3 2023: Guidance Reconciliation
Q3 2023: Guidance Reconciliation Q3-23 GAAP earnings per diluted share $1.20 – $1.40 Discrete items* $(0.28) Acquisition intangible amortization $0.13 Adjusted earnings per diluted share $1.05 - $1.25 *Discrete items includes expected net gain on assets held for sale Note: dollars may not add due to