Slide 1: Q1 2023 Earnings Call
Q1 2023 Earnings Call APRIL 27, 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: Results Overview
Results Overview Q1 2023 SUMMARY REVENUE BY MARKET SEGMENT HIGHLIGHTS • New design wins in ADAS, EV and renewable energy markets Other • Continued growth in ADAS market sales following customer Mass Transit 14% 4% EV/HEV disruptions in 2H 2022 21% • Strong growth in renewable energy market sales Wir
Slide 7: 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 8: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights ($ in millions, except EPS) Q1-2023 Q4-2022 Net sales $243.8 $223.7 Gross margin $79.7 $71.0 Gros s ma rgi n % 32.7% 31.8% Operating income ($0.3) $82.7 Opera ti ng ma rgi n % -0.1% 37.0% * Adjusted operating income $25.5 $20.7 * Adjus ted opera ti ng ma rgi n % 10.5% 9.
Slide 9: Q1 2023 Revenue Results
Q1 2023 Revenue Results Consolidated Revenue QoQ Revenue by Business Segment QoQ** +2.7% +9.0% +8.4% +6.3% $243.8 $135.9 $6.0 $125.3 +9.1% ($ in millions) ($ in millions) $102.2 $223.7 $14.1 $93.7 Q4'22 Volume Currency Q1'23 AES Q4'22 AES Q1'23 EMS Q4'22 EMSQ1'23 & Other* • Revenues of $243.8 millio
Slide 10: Q1 2023 Gross Margin
Q1 2023 Gross Margin ($ in millions) +3.0% (0.7%) • Volume: Demand increase across both business +12.2% segments partially offset by unfavorable +9.9% $0.5 product mix $79.7 $2.2 • Performance: Favorable factory utilization driven by higher demand and lower logistics costs $71.0 $7.0 31.8% 32.7% Q4'
Slide 11: Q1 2023 Operating Income Results
Q1 2023 Operating Income Results Q1 Operating Income QoQ Q1 Operating Income GAAP versus Non-GAAP ($ in millions) ($ in millions) $25.5 $3.0 $54.9 $140.9 $3.3 $82.7 $3.1 $7.6 $(0.3) $(0.3) $11.9 Q4'22 Other Restructuring Other operating Q1'23 Q1'23 Restructuring, Non-routine Acquisition Other Q1'23
Slide 12: Cash Utilization
Cash Utilization Net cash provided by operating activities $ 1.8 Net cash used in investing activities $ (15.4) Net cash provided by financing activities $ (29.4) ($ in millions) Effect of FX $ 0.8 Net increase (decrease) in cash $ (42.1) $35.1 $25.0 $16.4 $5.5 $4.0 $3.5 $22.7 $235.8 $193.7 $193.7 1
Slide 13: Q2 2023 Guidance
Q2 2023 Guidance Net sales $235M - $245M Gross Margin 33.5% - 34.5% EPS $0.65 - $0.85 Adjusted EPS* $0.95 - $1.15 *See reconciliation of adjusted earnings per diluted share to GAAP earnings per diluted share in the appendix. 13
Slide 14: Appendix
\ Appendix ROGERS CORPORATION, 14
Slide 15: Q1 2023: Adjusted operating expenses reconciliation
Q1 2023: Adjusted operating expenses reconciliation* ($ in millions) Q4-22($) Q4-22(%) Q1-23($) Q1-23(%) GAAP operating expenses $ (11.6) (5.2%) $ 80.0 32.8% Acquisitions and divestiture related costs: Acquisition and related integration costs $ (0.1) (0.1%) $ (0.1) (0.0%) Dispositions $ (3.2) (1.4%
Slide 16: Q1 2023: Adjusted operating income and margin reconciliation
Q1 2023: Adjusted operating income and margin reconciliation ($ in millions) Q4-22($) Q4-22(%) Q1-23($) Q1-23(%) GAAP operating income (loss) and margin $ 82.7 37.0% $ (0.3) (0.1%) Acquisitions and divestiture related costs: Acquisition and related integration costs $ 0.1 0.1% $ 0.1 0.0% Disposition
Slide 17: Q1 2023: Adjusted EBITDA and adjusted EBITDA margin reconciliation
Q1 2023: Adjusted EBITDA and adjusted EBITDA margin reconciliation ($ in millions) Q4-22($) Q1-23($) GAAP net income $ 67.3 $ (3.5) Interest expense, net $ 4.0 $ 3.5 Income tax expense $ 11.1 $ (0.1) Depreciation $ 7.7 $ 11.3 Amortization $ 3.8 $ 3.3 Stock-based compensation expense $ 0.2 $ 2.1 Acqu
Slide 18: Q1 2023: Adjusted net income reconciliation
Q1 2023: Adjusted net income reconciliation ($ in millions) Q4-22($) Q4-22(%) Q1-23($) Q1-23(%) GAAP Net Income $ 67.3 30.1% $ (3.5) (1.4%) Acquisitions and divestiture related costs: Acquisition and related integration costs $ 0.1 0.1% $ 0.1 0.0% Acquisition intangible amortization $ 3.8 1.7% $ 3.3
Slide 19: Q1 2023: Adjusted earnings per share reconciliation
Q1 2023: Adjusted earnings per share reconciliation Q4-22($) Q1-23($) GAAP earnings per diluted share $ 3.58 $ (0.19) Acquisitions and divestiture related costs: Acquisition and related integration costs $ 0.00 $ 0.00 Dispositions $ 0.13 $ 0.05 Loss/(gain) on sale or disposal of assets $ 0.02 $ (0.0
Slide 20: Q1 2023: Free cash flow reconciliation
Q1 2023: Free cash flow reconciliation ($ in millions) Q4-22($) Q1-23($) Net cash provided by operating activities $ 127.6 $ 1.8 Non-acquisition capital expenditures $ (29.8) $ (16.4) Free cash flow $ 97.8 $ (14.6) Note: dollars may not add due to rounding. 20 *Free cash flow defined as net cash pro
Slide 21: Q2 2023: Guidance Reconciliation
Q2 2023: Guidance Reconciliation Q2-23 GAAP earnings per diluted share $0.65 – $0.85 Discrete items $0.16 Acquisition intangible amortization $0.14 Adjusted earnings per diluted share $0.95 - $1.15 Note: dollars may not add due to rounding. 21