Rogers Corporation · NYSE:ROG
Rogers — Investor Day (2023)
22 slides from Rogers's investor day presentation, 2023
Slide 1: Rogers’ Path Forward
Rogers’ Path Forward COLIN GOUVEIA PRESIDENT AND CHIEF EXECUTIVE OFFICER 1
Slide 2: 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 3: A Rich History of Innovation
A Rich History of Innovation Company founded as Circuit materials Enabling automotive U.S. Innovation Center a paper manufacturer enable space missions radar established 1832 1950s 1960s 2000 2000s 2010s 2014 2022 Materials used in Lists on New York Leader in materials EV Market Sales mainframe comp
Slide 4: Rogers At A Glance
Rogers At A Glance 3,600+ EMPLOYEES 190+ YEARS OF HISTORY $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 49
Slide 5: Commitment to ESG
Commitment to ESG ENVIRONMENTAL SUSTAINABILITY • Enabling a sustainable future • Sustainability in design • Sustainability in operations SOCIAL RESPONSIBILITY • A culture of safety • Diversity and inclusion • Investing in our employees ROBUST GOVERNANCE • Diversified board of directors • Board ESG o
Slide 6: 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 6
Slide 7: Rogers Technology
Rogers Technology Solving the 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 and high v
Slide 8: Driving Innovation In Our Markets
Driving Innovation In Our Markets General Industrial Automotive Radar Portable Electronics (ADAS) Electric Vehicles Wireless Infrastructure Aerospace & Defense Renewable Energy 8
Slide 9: Growth Opportunities Across Our End Markets
Growth Opportunities Across Our End Markets 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 2022 revenue >25% of 2022 revenue >20% of 2022 revenue Industri
Slide 10: Electric Vehicles
Electric Vehicles Capitalizing On Fast Growing Market Opportunity BEV LIGHT VEHICLE PRODUCTION FORECAST 3 (millions of vehicles) TRENDS 30 Transition to EVs accelerating 2021 Forecast 25 2023 Forecast 21 >50% of Car Buyers 18 Expect next car will be an EV1 16 15 13 12 6 10 >$1 trillion of investment
Slide 11: High Growth Markets
High Growth Markets TRENDS Automotive Radar (ADAS) Increasing penetration rate of ADAS Transition to higher levels of autonomy Aerospace and Defense Integrated tactical communication systems Advanced detection and targeting systems Portable Electronics Increasingly compact designs New form factors (
Slide 12: Core Growth Markets
Core Growth Markets TRENDS General Industrial GDP plus growth Reshoring of manufacturing Supportive policies (CHIPS Act, Infrastructure Bill) Wireless Infrastructure Stable outlook Consumer adoption of 5G progressing 5G base station deployments growing outside of China 12
Slide 13: 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 • Scale The Organization RESTOR
Slide 14: Strategic Priorities 2023: Restore
Strategic Priorities 2023: Restore COST IMPROVEMENT MARGIN FOCUS BOLSTER ORGANIZATION • Streamline organization • Targeted Improvements • Focus on operational and supply chain excellence • Portfolio and operations • 34% gross margin in Q2’23 improvements • Hiring for critical skillsets • 35% gross m
Slide 15: Strategic Priorities 2024-2025: Accelerate
Strategic Priorities 2024-2025: Accelerate MARKET TRENDS COMMERCIAL SCALE THE EXCELLENCE ORGANIZATION • Secular trends drive strong growth outlook • Accelerate design • Capabilities to support growth wins with deeper • 2025 BEV market 1.75x application expertise • Deliver new capacity larger vs 2023
Slide 16: Strategic Priorities 2025+: Elevate
Strategic Priorities 2025+: Elevate FINANCIAL OPPORTUNITY FUNNEL INNOVATION PIPELINE PERFORMANCE • Robust EV opportunity • Commercialization of • Sustain double-digit funnel1 provides visibility to innovation pipeline adds revenue growth rate future growth to growth • Drive gross margins to 40% and
Slide 17: A Proven, Repeatable Process to Drive Growth
A Proven, Repeatable Process to Drive Growth 2 Collaborative Customer Target Relationships 1 Secular Trends GROWTH Identify Unmet 3 ENGINE Needs Leverage Application Expertise Develop Innovative 5 Solutions 4 17
Slide 18: Rogers 2025 Targets
Rogers 2025 Targets SALES: $1.2 - 1.3B Adjusted EBITDA Margin: 24% - 26% SALES: $971M Adjusted EBITDA Margin: 16.5%1 ORGANIC SALES 7% - 10% CAGR SIGNIFICANT >30% >20% SIGNIFICANT ADJUSTED EBITDA HIGH >25% >25% HIGH MARGIN Gross Margin +500 - 700 bps OpEx Scaling ~50% CORE CORE ~40% 2022 2025 Target
Slide 19: Why Invest In Rogers?
Why Invest In Rogers? Strong, diversified growth opportunities driven by GROWTH FOCUS key secular trends and core markets Proven track record of developing and commercializing INNOVATION LEADER unique material solutions for leading-edge applications A repeatable customer engagement process that has
Slide 20: Appendix
\ Appendix ROGERS CORPORATION 20
Slide 21: Non-GAAP Information
Non-GAAP Information Non-GAAP Information This presentation includes the following historical financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): (1) Adjusted operating margin, which the Company defines as op
Slide 22: FY2022: Adjusted EBITDA Margin
FY2022: Adjusted EBITDA Margin ($ in millions) 2022($) GAAP net income $ 116.6 Interest expense, net $ 9.5 Income tax expense $ 23.8 Depreciation $ 29.5 Amortization $ 16.4 Stock-based compensation expense $ 11.8 Restructuring, severance, impairment and other related costs $ 70.9 Acquisition and rel