Slide 1: Q2 2024 Earnings Call
Q2 2024 Earnings Call JULY 25, 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 Ram Mayampurath President & Senior Vice President & Chief Executive Officer Chief Financial Officer 4
Slide 5: Today's Key Messages
Today’s Key Messages 1 Solid execution to deliver Q2 results in line with expectations Demand environment remains uneven as higher sales in key markets were tempered by higher 2 customer inventory levels Implemented additional manufacturing footprint actions to better meet customer needs and 3 furth
Slide 6: Results Overview
Results Overview Q2 2024 SUMMARY REVENUE BY MARKET SEGMENT HIGHLIGHTS Significant • Strong gross margin improvement versus prior quarter Growth Other • Record quarterly EV/HEV sales in EMS business 13% EV/HEV • Stronger seasonal demand for portable electronics products Wireless 20% Infrastructure •
Slide 7: New Sustainability Report Released
New Sustainability Report Released 2024 ESG Report Highlights • Rogers’ participation in markets that reduce CO2 emissions, including EVs and renewable energy • Progress made to reduce energy consumption, GHG emissions and water usage in our operations • A commitment to achieve a 20% reduction in Sc
Slide 8: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights (in millions, except for EPS) Q2 2024 Q1 2024 Net Sales $214.2 $213.4 Gross Margin $73.1 $68.2 Gross Margin % 34.1% 32.0% Operating Income $11.3 $11.7 Operating Margin % 5.3% 5.5% Adjusted Operating Income* $17.5 $15.9 Adjusted Operating Margin %* 8.2% 7.5% Net Income $8
Slide 9: Q2 2024 Revenue Results
Q2 2024 Revenue Results Consolidated Revenue QoQ Revenue By Operating Segment QoQ** ($ in millions) ($ in millions) +0.7% -0.3% +0.4% -5.4% $1.5 $0.7 $214.2 $122.1 +10.5% $213.4 $115.5 $94.7 $85.7 Q1'24 Volume Currency Q2'24 AES Q1'24 AES Q2'24 EMS Q1'24 EMS Q2'24 & Other* • Revenues of $214.2 milli
Slide 10: Q2 2024 Gross Margin and Adjusted Net Income
Q2 2024 Gross Margin and Adjusted Net Income* Gross Margin Adjusted Net Income* ($ in millions) ($ in millions) $73.1 $0.6 $0.4 $2.2 $1.6 $12.8 $10.9 $68.2 $2.8 32.0% 34.1% 5.1% 6.0% Q1'24 Volume* Performance Q2'24 Q1'24 Adj Op Other Income Q2'24 & Other & Other Income* Inc./Exp.** Tax • Higher sale
Slide 11: Cash Utilization
Cash Utilization Net Cash Provided By Operating Activities $ 51.0 ($ in millions) Net Cash Used In Investing Activities $ (23.5) Net Cash Used In Financing Activities $ (38.4) $60.2 Effect Of Exchange Rate Fluctuations $ (0.9) Net Increase (Decrease) In Cash $ (11.8) $30.0 $10.8 $23.5 $7.2 $7.9 $14.
Slide 12: Q3 2024 Guidance
Q3 2024 Guidance Net Sales $215M - $225M Gross Margin 34.0% - 35.0% Earnings Per Diluted Share $0.32 - $0.52 Adjusted Earnings Per Diluted Share* $0.75 - $0.95 *See reconciliation of adjusted earnings per diluted share to GAAP earnings per diluted share in the appendix. 12
Slide 13: Appendix
\ Appendix ROGERS CORPORATION, 13
Slide 14: Q2 2024: Adjusted Operating Expenses Reconciliation
Q2 2024: Adjusted Operating Expenses Reconciliation* ($ in millions) Q2 2024 Q2 2024 Q1 2024 Q1 2024 GAAP Operating Expenses and Margin $61.8 28.9% $56.5 26.5% Acquisitions and Divestiture Related Costs: Dispositions - - - - Intangible Amortization ($3.1) (1.4%) ($3.1) (1.5%) (Gain) Loss on Sale or
Slide 15: Q2 2024: Adjusted Operating Income and Margin Reconciliation
Q2 2024: Adjusted Operating Income and Margin Reconciliation ($ in millions) Q2 2024 Q2 2024 Q1 2024 Q1 2024 GAAP Operating Income and Margin $11.3 5.3% $11.7 5.5% Acquisitions and Divestiture Related Costs: Dispositions - - - - Intangible Amortization $3.1 1.4% $3.1 1.5% (Gain) Loss on Sale or Disp
Slide 16: Q2 2024: Segment Adjusted Operating Income and Margin Reconciliation
Q2 2024: Segment Adjusted Operating Income and Margin Reconciliation AES AES EMS EMS ($ in millions) Q2 2024 Q2 2024 Q2 2024 Q2 2024 GAAP Operating Income and Margin $3.0 2.6% $7.2 7.6% Acquisitions and Divestiture Related Costs: Dispositions - - - - Intangible Amortization $0.5 0.4% $2.6 2.7% (Gain
Slide 17: Q2 2024: Adjusted Net Income and Margin Reconciliation
Q2 2024: Adjusted Net Income and Margin Reconciliation ($ in millions) Q2 2024 Q2 2024 Q1 2024 Q1 2024 GAAP Net Income and Margin $8.1 3.8% $7.8 3.7% Acquisitions and Divestiture Related Costs: Dispositions - - - - Intangible Amortization $3.1 1.4% $3.1 1.5% (Gain) Loss on Sale or Disposal of PPE -
Slide 18: Q2 2024: Adjusted Earnings Per Diluted Share Reconciliation
Q2 2024: Adjusted Earnings Per Diluted Share Reconciliation Q2 2024 Q1 2024 GAAP Earnings Per Diluted Share $0.44 $0.42 Acquisitions and Divestiture Related Costs: Dispositions - - Intangible Amortization $0.17 $0.17 (Gain) Loss on Sale or Disposal of PPE - - Restructuring, Business Realignment and
Slide 19: Q2 2024: Adjusted EBITDA and Margin Reconciliation
Q2 2024: Adjusted EBITDA and Margin Reconciliation ($ in millions) Q2 2024 Q1 2024 GAAP Net Income $8.1 $7.8 Acquisitions and Divestiture Related Costs: Dispositions - - Intangible Amortization $3.1 $3.1 (Gain) Loss on Sale or Disposal of PPE - - Restructuring, Business Realignment and Other Cost Sa
Slide 20: Q2 2024: Free Cash Flow Reconciliation
Q2 2024: Free Cash Flow Reconciliation ($ in millions) Q2 2024 Q1 2024 Net Cash Provided By Operating Activities $22.9 $28.1 Non-Acquisition Capital Expenditures ($14.1) ($9.4) Free Cash Flow $8.8 $18.7 Note: dollars may not add due to rounding. 20 *Free cash flow defined as net cash provided by ope
Slide 21: Q3 2024: Guidance Reconciliation
Q3 2024: Guidance Reconciliation ($ in millions) Q3 2024 GAAP Earnings Per Diluted Share $0.32 – $0.52 Intangible Amortization $0.13 Other Adjustments* $0.30 Adjusted Earnings Per Diluted Share $0.75 - $0.95 *Other adjustments includes expected restructuring charges associated with the wind down of