Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call OCTOBER 24, 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” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 193
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 Laura Russell President & Interim Chief Executive Officer Chief Financial Officer 4
Slide 5: Today's Key Messages
Today’s Key Messages Mixed Q3 results with earnings that exceeded the guidance forecast, and revenues below the low 1 end of the outlook. 2 Industrial and EV/HEV market demand remains subdued. 3 Continuing measured investments to support growth strategy with ribbon-cutting at new power substrate fac
Slide 6: Results Overview
Results Overview Q3 2024 SUMMARY REVENUE BY MARKET SEGMENT HIGHLIGHTS Significant • Earnings exceeded the high end of guidance Growth Other • Improved gross margin and lower operating expenses 12% EV/HEV • Strong wireless infrastructure sales led by demand from India Wireless 19% Infrastructure • Se
Slide 7: Industrial Market Update
Industrial Market Update CHALLENGES COMMENTARY • 2024 sales lower by ~$10 -$15 million per quarter versus 1H 2023. • AES: Higher customer inventories in 2024 and lower demand as capital investment in factory automation and equipment has decreased. • EMS: Broad destocking in 2H 2023. Improved end dem
Slide 8: EV/HEV Market Update
EV/HEV Market Update CHALLENGES COMMENTARY • 2024 sales lower by ~$5 -$15 million per quarter versus 1H 2023. • AES: Power module customer inventory correction in 1H 2024. Not yet seeing demand recovery. • EMS: EV/HEV battery sales up >50% YTD 2024, but Q3 order softness related to customer inventor
Slide 9: SiC Growth Opportunity
SiC Growth Opportunity NEW POWER SUBSTRATE FACTORY MARKET OPPORTUNITY • New Suzhou China facility will produce Si3N4 AMB substrates • Market for ceramic substrates used in power modules for EV/HEV, renewable energy, and industrial markets expected to grow at a 11% CAGR from 2023 to 2029 • 40+ custom
Slide 10: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights (in millions, except for EPS) Q3 2024 Q2 2024 Net Sales $210.3 $214.2 Gross Margin $74.1 $73.1 Gross Margin % 35.2% 34.1% Operating Income $14.6 $11.3 Operating Margin % 6.9% 5.3% Adjusted Operating Income* $24.7 $17.5 Adjusted Operating Margin %* 11.7% 8.2% Net Income $
Slide 11: Q3 2024 Revenue Results
Q3 2024 Revenue Results Consolidated Revenue QoQ Revenue By Operating Segment QoQ** ($ in millions) ($ in millions) -2.0% +0.1% -1.8% -2.8% $4.2 $0.3 -0.6% $214.2 $210.3 $115.5 $112.2 $94.7 $94.2 Q2'24 Volume Currency Q3'24 AES Q2'24 AES Q3'24 EMS Q2'24 EMS Q3'24 & Other* • Revenues of $210.3 millio
Slide 12: Q3 2024 Gross Margin and Adjusted Net Income
Q3 2024 Gross Margin and Adjusted Net Income* Gross Margin Adjusted Net Income* ($ in millions) ($ in millions) $0.2 $74.1 $1.6 $0.0 $18.2 $73.1 $1.1 $12.8 $7.2 34.1% 35.2% 6.0% 8.7% Q2'24 Volume* Operational Q3'24 Q2'24 Adj Op Other Income Q3'24 & Other Excellence Income* Inc./Exp.** Tax • Favorabl
Slide 13: Cash Utilization
Cash Utilization Net Cash Provided By Operating Activities $ 93.4 Net Cash Used In Investing Activities $ (40.7) ($ in millions) Net Cash Used In Financing Activities $ (38.6) $95.4 Effect Of Exchange Rate Fluctuations $ 0.6 Net Increase (Decrease) In Cash $ 14.7 $30.0 $23.9 $10.9 $40.7 $7.9 $15.1 $
Slide 14: Q4 2024 Guidance
Q4 2024 Guidance Net Sales $185M - $200M Gross Margin 31.5% - 33.0% Earnings Per Diluted Share $(0.15) - $0.15 Adjusted Earnings Per Diluted Share $0.30 - $0.60 • Earnings per diluted share includes expected restructuring charges associated with the wind- down of AES manufacturing operations in our
Slide 15: Appendix
\ Appendix ROGERS CORPORATION, 15
Slide 16: Q3 2024: Adjusted Operating Expenses Reconciliation
Q3 2024: Adjusted Operating Expenses Reconciliation* ($ in millions) Q3 2024 Q3 2024 Q2 2024 Q2 2024 GAAP Operating Expenses and Margin $59.5 28.3% $61.8 28.9% Acquisitions and Divestiture Related Costs: Dispositions - - - - Intangible Amortization ($3.1) (1.5%) ($3.1) (1.4%) (Gain) Loss on Sale or
Slide 17: Q3 2024: Adjusted Operating Income and Margin Reconciliation
Q3 2024: Adjusted Operating Income and Margin Reconciliation ($ in millions) Q3 2024 Q3 2024 Q2 2024 Q2 2024 GAAP Operating Income and Margin $14.6 6.9% $11.3 5.3% Acquisitions and Divestiture Related Costs: Dispositions - - - - Intangible Amortization $3.1 1.5% $3.1 1.4% (Gain) Loss on Sale or Disp
Slide 18: Q3 2024: Segment Adjusted Operating Income and Margin Reconciliation
Q3 2024: Segment Adjusted Operating Income and Margin Reconciliation AES AES EMS EMS ($ in millions) Q3 2024 Q3 2024 Q3 2024 Q3 2024 GAAP Operating Income and Margin $0.3 0.3% $13.2 14.0% Acquisitions and Divestiture Related Costs: Dispositions - - - - Intangible Amortization $0.5 0.4% $2.6 2.8% (Ga
Slide 19: Q3 2024: Adjusted Net Income and Margin Reconciliation
Q3 2024: Adjusted Net Income and Margin Reconciliation ($ in millions) Q3 2024 Q3 2024 Q2 2024 Q2 2024 GAAP Net Income and Margin $10.7 5.1% $8.1 3.8% Acquisitions and Divestiture Related Costs: Dispositions - - - - Intangible Amortization $3.1 1.5% $3.1 1.4% (Gain) Loss on Sale or Disposal of PPE -
Slide 20: Q3 2024: Adjusted Earnings Per Diluted Share Reconciliation
Q3 2024: Adjusted Earnings Per Diluted Share Reconciliation Q3 2024 Q2 2024 GAAP Earnings Per Diluted Share $0.58 $0.44 Acquisitions and Divestiture Related Costs: Dispositions - - Intangible Amortization $0.17 $0.17 (Gain) Loss on Sale or Disposal of PPE - - Restructuring, Business Realignment and
Slide 21: Q3 2024: Adjusted EBITDA and Margin Reconciliation
Q3 2024: Adjusted EBITDA and Margin Reconciliation ($ in millions) Q3 2024 Q2 2024 GAAP Net Income $10.7 $8.1 Acquisitions and Divestiture Related Costs: Dispositions - - Intangible Amortization $3.1 $3.1 (Gain) Loss on Sale or Disposal of PPE - - Restructuring, Business Realignment and Other Cost S
Slide 22: Q3 2024: Free Cash Flow Reconciliation
Q3 2024: Free Cash Flow Reconciliation ($ in millions) Q3 2024 Q2 2024 Net Cash Provided By Operating Activities $42.4 $22.9 Non-Acquisition Capital Expenditures ($17.2) ($14.1) Free Cash Flow $25.2 $8.8 Note: dollars may not add due to rounding. 22 *Free cash flow defined as net cash provided by op
Slide 23: Q4 2024: Guidance Reconciliation
Q4 2024: Guidance Reconciliation ($ in millions) Q4 2024 GAAP Earnings Per Diluted Share $(0.15) – $0.15 Intangible Amortization $0.13 Other Adjustments* $0.32 Adjusted Earnings Per Diluted Share $0.30 - $0.60 *Other adjustments is mainly comprised of expected restructuring charges associated with t