Rogers Corporation · NYSE:ROG
Rogers — Investor Presentation (May 2023)
23 slides from Rogers's investor presentation, May 2023
Slide 1: Investor Overview
\ Investor Overview MAY 2023
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 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 4: 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 5: 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 6: 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 96
Slide 7: 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 8: 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 8
Slide 9: 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 10: 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 11: 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 • Secured design Wins Begin To
Slide 12: 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 12
Slide 13: 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 14: Path to Margin Enhancement
Path to Margin Enhancement SECULAR Accelerating Growth TAILWINDS STRONG PRODUCT Global Manufacturing Efficiency OFFERING MANUFACTURING EXCELLENCE Sourcing and Supply Chain Savings SOURCING STRATEGIES Cost Reductions from Design Improvements MACRO Cost Increase and Inflationary Challenges ENVIRONMENT
Slide 15: Building Financial Momentum: 2022 to 2025
Building Financial Momentum: 2022 to 2025 PROJECTED 2022 2025 TARGET ASSUMPTION GROWTH 7% - 10% REVENUE $971 million $1.2 - $1.3 billion Organic growth CAGR Revenue growth GROSS MARGIN 33.1% 500 - 700 bps 38% - 40% Operations cost savings ADJUSTED Gross margin improvements 11.7% 600 - 800 bps 18% -
Slide 16: Appendix
\ Appendix ROGERS CORPORATION 16
Slide 17: AES Business Overview
AES Business Overview Other AES 12%2 PRODUCT PORTFOLIO AES HIGHLIGHTS Electric Wireless Vehicles Infrastructure 2022 30% Engineered Materials Solutions Strong leadership in the areas of: positions across markets 11% $530M Net Sales • Power Electronics • Radio Frequency (RF) Engineer-to-engineer rela
Slide 18: EMS Business Overview
EMS Business Overview Electric Other EMS Vehicles 11% 20%2 EMS HIGHLIGHTS PRODUCT PORTFOLIO 2022 Differentiated high-performance Portable Diversified portfolio with strong leadership positions solutions based on product & $420M Electronics 18% Net Sales in multiple end markets application know how S
Slide 19: FY2022: Adjusted Operating Margin
FY2022: Adjusted Operating Margin 2022(%) GAAP operating margin 14.9% Restructuring, severance, impairment and other related costs 7.4% Acquisition and related integration costs 0.1% Gain on sale or disposal of property, plant and equipment 0.0% Utis fire charges (0.2%) (Income) costs associated wit
Slide 20: FY2022: Adjusted EBITDA Margin
FY2022: Adjusted EBITDA Margin ($ 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
Slide 21: FY2022: Adjusted Earnings per Share
FY2022: Adjusted Earnings per Share 2022($) GAAP earnings per diluted share $ 6.15 Restructuring, severance, impairment and other related costs $ 2.90 Acquisition and related integration costs $ 0.03 Gain on sale or disposal of property, plant and equipment $ 0.02 Utis fire charges $ (0.10) (Income)
Slide 22: FY2022: Free Cash Flow
FY2022: Free Cash Flow ($ in millions) 2022($) Net cash provided by operating activities $ 129.5 Non-acquisition capital expenditures $ (116.8) Free cash flow $ 12.7 *Net cash provided by operating activities includes regulatory termination fee, net of fees and taxes, received in Q4 2022 22 Note: do
Slide 23: FY2022: Segment adjusted operating income and operating margin reconciliation
FY2022: Segment adjusted operating income and operating margin reconciliation EMS AES ($ in millions) 2022 ($) 2022 (%) 2022 ($) 2022 (%) Operating income and operating margin $61.7 14.7% $80.9 15.3% Restructuring, severance, impairment & other related costs $26.3 6.3% $45.1 8.5% Acquisition and rel