Rogers Corporation · NYSE:ROG
Rogers — Investor Presentation (May 2019)
24 slides from Rogers's investor presentation, May 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019
Slide 2: Forward-looking Statements
Forward-looking Statements Safe Harbor Statement This presentation contains forward-looking statements, which concern our plans, objectives, outlook, goals, strategies, future events, future net sales or performance, capital expenditures, future restructuring, plans or intentions relating to expansi
Slide 3: Rogers at a Glance
Rogers at a Glance Rogers (NYSE: ROG) is a global leader in materials technology focused on delivering innovative high-performance solutions in Advanced Connectivity, Advanced Mobility and more Established Employees 2018 Sales Non-U.S. Sales 2018 Adjusted EPS* 1832 3,700 z $879M 70% $5.77 *See appen
Slide 4: What We Do
What We Do Products Markets Advanced Connectivity Advanced Connectivity Systems Solutions(ACS) (ACS) Advanced Connectivity • High frequency circuit materials • Wireless infrastructure (4G & 5G) • Portable Electronics Power Electronics Solution (PES) Advanced Mobility • Ceramic substrates used in pow
Slide 5: The Rogers Opportunity
The Rogers Opportunity Strong Secular Tailwinds Growth Drivers: 5G, EV/HEV, ADAS, Vehicle Electrification Market & Technology Focused strategy driving market leadership in high growth areas Leadership Double digit sales growth * Proven Track Record 580 bps increase in Adjusted Operating Margin* Comp
Slide 6: New Opportunities
Growth Drivers Advanced Connectivity Advanced Mobility Today’s Markets 4G & 5G wireless Portable ADAS EV/HEV Power Modules Vehicle infrastructure Electronics EV Batteries Electrification New Opportunities Internet of Low Earth Orbit Semi & Fully Vehicle-to-Vehicle Things (LEO) Broadband Autonomous V
Slide 7: Growth Drivers: Market Opportunity
Growth Drivers: Market Opportunity Advanced Connectivity Advanced Mobility 5G EV/HEV Power Modules ADAS Projected 5G Base Station Shipments1 Projected e-mobility Growth2 Projected Auto Radar Sensor Volume3 >3 million 5G shipments over 5 years 3 99 3 88 2 73 761 697 2 15 62 672 590 1 12 50 1 10 41 33
Slide 8: Focused Strategy Driving Market Leadership
Focused Strategy Driving Market Leadership Profitable Growth Market-Driven Innovation Leadership Synergistic M&A Operational Excellence • Global growth driver focus • 4 global innovation centers • Focus on ‘Top of Pyramid’ • Optimize utilization developing leading edge • Market & technology • Strong
Slide 9: Rogers Business Overview
Rogers Business Overview Key Business Metrics Portfolio Highlights 2% Sales by business unit Full year 2018 Advanced Connectivity Solutions 25% 2% Elastomeric Material Solutions • High-performance materials 34% 25% Power Electronics Solutions 34% • Mission-critical applications $879M 2018 Other • Te
Slide 10: ACS Business Overview
ACS Business Overview Segment Net Sales Strategy Consumer electronics • Leveraging innovation to FY capitalize on market $294M 8% opportunities in key areas: 2018 ADAS • Wireless infrastructure Wireless 22% Vertical infrastructure • Automotive safety Applications* 46% sensors YTD 2019 $80.5M • Inves
Slide 11: PES Business Overview
PES Business Overview Segment Net Sales Strategy Other 10% • Leverage our proven FY technology to capitalize on $223M Mass Transit strong market growth 2018 9% Industrial opportunities in Advanced 34% Mobility applications Renewable Vertical • Invest in capacity to support YTD ’19 $59.8M Energy Appl
Slide 12: EMS Business Overview
EMS Business Overview Segment Net Sales Portfolio Highlights Other • Continue focus on Automotive 5% applications in key markets FY $341M 9% of EV/HEV, portable 2018 electronics and general Consumer General 10% Industrial industrial 41% YTD ’19 $59.8M Vertical • Optimize acquisitions to Applications
Slide 13: Financial Track Record
Financial Track Record Double Digit Revenue Growth Increasing Profitability Strong Earnings Momentum Net Sales ($M) Adjusted Operating Margin* Adjusted Earnings per Share* $879 15.8% $1.85 $1.67 $499 $1.48 10.0% 2012 2018 2012 2018 Q1'18 Q4'18 Q1'19 Strong Financial Performance Driven by Focused Mul
Slide 14: Rogers Vision for 2020
Rogers Vision for 2020 Strategic Elements Financial Objectives Organic $1.2B Synergistic Market-Driven Innovation growth: Revenues M&A growth: Organization Leadership 7-10% 5-8% 15% Total growth Synergistic Operational M&A Excellence 20% Margin: Adjusted Operating Adjusted operating margin* 20% Capi
Slide 15: Financial Overview
Financial Overview
Slide 16: Q1 2019 Financial Highlights
Q1 2019 Financial Highlights ($ in millions, except EPS) Q1-2019 Q4-2018 Q1-2018 Net sales $239.8 $222.9 $214.6 Gross margin $85.4 $78.4 $76.6 Gross margin % 35.6% 35.2% 35.7% Operating income $32.8 $26.8 $31.0 Operating margin % 13.7% 12.0% 14.5% Adjusted operating income* $41.0 $35.6 $33.0 Adjuste
Slide 17: 2018 Financial Highlights
2018 Financial Highlights ($ in millions, except EPS) FY-2018 FY-2017 Net sales $879.1 $821.0 Gross margin $310.8 $318.6 Gross margin % 35.4% 38.8% Operating income $112.7 $129.1 Operating margin % 12.8% 15.7% Adjusted operating income* $138.9 $150.0 Adjusted operating margin %* 15.8% 18.3% Net inco
Slide 18: Appendix
Appendix
Slide 19: Q1-2019: Adjusted Operating Income and Operating Margin Reconciliation
Q1-2019: Adjusted Operating Income and Operating Margin Reconciliation ($ in millions) Q1-18($) Q1-18(%) Q4-18($) Q4-18(%) Q1-19($) Q1-19(%) Operating income and operating margin $31.0 14.5% $26.8 12.0% $32.8 13.7% Restructuring, severance, impairment and other related costs $1.4 0.7% $2.7 1.2% $1.9
Slide 20: Q1-2019: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Q1-2019: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation ($ in millions) Q1-18($) Q1-18(%) Q4-18($) Q4-18(%) Q1-19($) Q1-19(%) Net Income $26.1 12.2% $24.5 11.0% $28.4 11.8% Interest expense, net $1.2 0.6% $2.1 1.0% $1.9 0.8% Income tax expense $4.8 2.2% $0.9 0.4% $4.7 2.0% Depreciation $7
Slide 21: Q1-2019: Adjusted EPS Reconciliation
Q1-2019: Adjusted EPS Reconciliation Q1-18 ($) Q4-18 ($) Q1-19 ($) GAAP earnings per diluted share $1.40 $1.31 $1.52 Restructuring, severance, impairment and other related costs $0.06 $0.11 $0.07 Acquisition and related integration costs $0.02 $0.02 $0.02 Change in foreign jurisdiction tax regulatio
Slide 22: 2018: Adjusted Operating Income and Operating Margin Reconciliation
2018: Adjusted Operating Income and Operating Margin Reconciliation (in $millions) FY-12% FY-17($) FY-17(%) FY-18($) FY-18(%) Operating income and operating margin 5.1% $129.1 15.7% $112.7 12.8% Restructuring, severance, impairment and other related costs 1.3% $3.6 0.4% $9.0 1.0% Acquisition/ divest
Slide 23: 2018: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
2018: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation (in $millions) FY-17($) FY-17(%) FY-18($) FY18(%) Net Income $80.5 9.8% $87.7 10.0% Interest, net $6.1 0.7% $6.6 0.8% Income tax expense (benefit) $52.5 6.4% $22.9 2.6% Depreciation $29.3 3.6% $33.5 3.8% Intangible amortization $14.8 1.
Slide 24: 2018: Adjusted EPS Reconciliations
2018: Adjusted EPS Reconciliations FY-17 ($) FY-18 ($) Earnings per diluted share $4.34 $4.70 Restructuring, severance, impairment and other related costs $0.13 $0.37 Acquisition and related integration costs $0.11 $0.11 Acquisition inventory step up $0.05 $0.01 Lease revenue related to asset acquis