Slide 1: Q3 2023 Earnings Call
Q3 2023 Earnings Call OCTOBER 26, 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: Executing On Our Proven Strategy
Executing On Our Proven Strategy • Focusing on opportunities in secular growth markets Market Driven • Moving forward with targeted investments in new capacity • Continued progress securing new design wins • Product and process innovation in AES & EMS businesses Innovation Leadership • Griffin Gappe
Slide 6: Results Overview
Results Overview Q3 2023 SUMMARY REVENUE BY MARKET SEGMENT HIGHLIGHTS Significant • Gross margin of 35.1% increased 60 bps versus the prior quarter Growth Other • Higher Q3 portable electronics market sales versus the prior quarter 14% EV/HEV Wireless • Stronger year-to-date sales in renewable energ
Slide 7: Key Drivers of Growth
Key Drivers of Growth Recovery in Recovery in EV design wins Power New power general portable substrate substrate industrial electronics process capacity online market market innovation Sales impact: + Sales impact: + Sales impact: ++ Sales impact: + Sales impact: +++ Expected Timing: Expected Timin
Slide 8: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights (in millions, except for EPS) Q3 2023 Q2 2023 Net sales $229.1 $230.8 Gross margin $80.4 $79.6 Gross margin % 35.1% 34.5% Operating income $27.1 $27.9 Operating margin % 11.8% 12.1% Adjusted operating income* $32.7 $31.0 Adjusted operating margin %* 14.3% 13.4% Net incom
Slide 9: Q3 2023 Revenue Results
Q3 2023 Revenue Results Consolidated Revenue QoQ Revenue by Operating Segment QoQ** ($ in millions) ($ in millions) (0.4%) (0.3%) (0.7%) (2.9%) $230.8 $0.9 $0.7 $229.1 $130.2 $126.4 +2.8% $95.3 $98.0 Q2'23 Volume Currency Q3'23 AES Q2'23 AES Q3'23 EMS Q2'23 EMS Q3'23 & Other* • Revenues of $229.1 mi
Slide 10: Q3 2023 Gross Margin and Adjusted Net Income
Q3 2023 Gross Margin and Adjusted Net Income* Q3 Gross Margin Adjusted Net Income* ($ in millions) ($ in millions) +0.8% +0.9% -1.5% +16.0% +0.1% +9.0% +8.5% $79.6 $0.6 $80.4 $0.3 $23.2 $0.1 $1.8 $20.0 $1.7 34.5% 35.1% 8.7% 10.1% Q2'23 Volume* Performance Q3'23 Q2'23 Adj Op Other Income Q3'23 & Othe
Slide 11: Cash Utilization
Cash Utilization Net cash provided by operating activities $ 59.5 ($ in millions) Net cash used in investing activities $ (30.3) $124.2 Net cash provided by (used in) financing activities $ (139.6) Effect of exchange rate fluctuations $ 1.0 Net increase (decrease) in cash $ (109.4) $135.0 $34.5 $17.
Slide 12: Q4 2023 Guidance
Q4 2023 Guidance Net sales $215M - $225M Gross Margin 34.0% - 35.0% EPS $0.71 - $0.91 Adjusted EPS* $0.90 - $1.10 *See reconciliation of adjusted earnings per diluted share to GAAP earnings per diluted share in the appendix. 12
Slide 13: Appendix
\ Appendix ROGERS CORPORATION, 13
Slide 14: Q3 2023: Adjusted operating expenses reconciliation
Q3 2023: Adjusted operating expenses reconciliation* ($ in millions) Q2 2023 Q2 2023 Q3 2023 Q3 2023 GAAP operating expenses and margin $51.7 22.4% $53.2 23.2% Acquisitions and divestiture related costs: Acquisition and related integration costs ($0.0) (0.0%) $0.0 0.0% Dispositions ($0.1) (0.0%) $0.
Slide 15: Q3 2023: Adjusted operating income and margin reconciliation
Q3 2023: Adjusted operating income and margin reconciliation ($ in millions) Q2 2023 Q2 2023 Q3 2023 Q3 2023 GAAP operating income and margin $27.9 12.1% $27.1 11.8% Acquisitions and divestiture related costs: Acquisition and related integration costs $0.0 0.0% $0.0 0.0% Dispositions $0.1 0.0% ($0.7
Slide 16: Q3 2023: Segment adjusted operating income and margin reconciliation
Q3 2023: Segment adjusted operating income and margin reconciliation AES AES EMS EMS ($ in millions) Q3 2023 Q3 2023 Q3 2023 Q3 2023 GAAP operating income and margin $5.7 4.5% $19.9 20.3% Acquisitions and divestiture related costs: Acquisition and related integration costs $0.0 0.0% $0.0 0.0% Dispos
Slide 17: YTD 2023: Segment adjusted operating income and margin reconciliation
YTD 2023: Segment adjusted operating income and margin reconciliation AES AES EMS EMS ($ in millions) Q3’23 YTD Q3’23 YTD Q3’23 YTD Q3’23YTD GAAP operating income and margin $6.0 1.5% $43.3 14.6% Acquisitions and divestiture related costs: Acquisition and related integration costs $0.0 0.0% $0.1 0.0
Slide 18: Q3 2023: Adjusted net income and margin reconciliation
Q3 2023: Adjusted net income and margin reconciliation ($ in millions) Q2 2023 Q2 2023 Q3 2023 Q3 2023 GAAP net income and margin $17.9 7.7% $19.0 8.3% Acquisitions and divestiture related costs: Acquisition and related integration costs $0.0 0.0% $0.0 0.0% Acquisition intangible amortization $3.3 1
Slide 19: Q3 2023: Adjusted earnings per share reconciliation
Q3 2023: Adjusted earnings per share reconciliation Q2 2023 Q3 2023 GAAP earnings per diluted share $0.96 $1.02 Acquisitions and divestiture related costs: Acquisition and related integration costs $0.00 $0.00 Dispositions $0.00 ($0.03) Loss/(gain) on sale or disposal of assets ($0.02) ($0.01) Restr
Slide 20: Q3 2023: Adjusted EBITDA and margin reconciliation
Q3 2023: Adjusted EBITDA and margin reconciliation ($ in millions) Q2 2023 Q3 2023 GAAP net income $17.9 $19.0 Interest expense, net $2.8 $2.3 Income tax expense $7.3 $7.2 Depreciation $10.4 $8.1 Amortization $3.3 $3.4 Stock-based compensation expense $5.0 $3.8 Acquisitions and divestiture related c
Slide 21: Q3 2023: Free cash flow reconciliation
Q3 2023: Free cash flow reconciliation ($ in millions) Q2 2023 Q3 2023 Net cash provided by operating activities $15.7 $42.0 Non-acquisition capital expenditures ($11.5) ($6.7) Free cash flow $4.2 $35.3 Note: dollars may not add due to rounding. 21 *Free cash flow defined as net cash provided by ope
Slide 22: Q4 2023: Guidance Reconciliation
Q4 2023: Guidance Reconciliation ($ in millions) Q4 2023 GAAP earnings per diluted share $0.71 – $0.91 Discrete items $0.06 Acquisition intangible amortization $0.13 Adjusted earnings per diluted share $0.90 - $1.10 Note: dollars may not add due to rounding. 22