Rogers Corporation Investor Presentation 1
Disclaimer Safe Harbor Statement Statements in this presentation other than historical facts, including without limitation statements regarding the Company s business strategy, future results of operations and financial position, and plans and objectives of management, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management s current expectations and are subject to risks and uncertainties that could cause results to differ materially from those set forth in or implied by such forward-looking statements. These risks and uncertainties include economic conditions, market demand and pricing, competitive and cost factors, rapid technological change, new product introductions, legal proceedings, and other risk factors described in the Company s Form 10-K for the fiscal year ended December 31, 2012 and all subsequent filings with the Securities and Exchange Commission (SEC). Non-GAAP Information This presentation may contain non-gaap financial information. Management believes non- GAAP information provides meaningful supplemental information regarding the Company's performance by excluding certain items that are generally non-recurring and accordingly may not be indicative of the core business operating results. The Company believes that this additional financial information is useful to management and investors in assessing the Company's historical performance and when planning, forecasting and analyzing future periods. However, non-gaap measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, financial information prepared in accordance with GAAP. Reconciliations of non-gaap data to comparable GAAP financial measures can be found at the end of this presentation and on our website at: www.rogerscorp.com. 2
About Rogers A global leader in materials technologies that power, protect and connect our world Revenues: $499 M (2012) Employees: 2400 worldwide Headquarters: Rogers, CT, USA Ownership: Public - ROG on NYSE 3
Our Solutions Segments Powering Protecting Connecting Power Electronic Solutions High Performance Foams Printed Circuit Materials Solving the toughest material challenges 4
Serving Customers Worldwide SUPPLYING OVER 3000 CUSTOMERS IN 66 COUNTRIES >75% of Sales Outside US US 23% EUR 25% Other 2% Asia 50% Global Headquarters Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales China Korea Japan (JV) Sales Offices Beijing Seoul Shanghai Shenzhen Singapore Taipei Tokyo US Asia 2012 Revenues by Region Excluding Joint Ventures & Discontinued Operations Europe Manufacturing & Sales Belgium Germany 5
Megatrends Advancing Our Growth INTERNET GROWTH MASS TRANSIT CLEAN TECH Wireless Infrastructure Smart Antennas Mobile Internet Devices Rail power distribution Vibration management for Rail & Aircraft Variable Frequency Motor Drives Hybrid Electric Vehicles X-by-Wire 6
Sales by Market & Megatrend Category Megatrends = 55% of Revenues Automotive 7% Defense 6% Cell Phones (non- Internet) 6% Medical & Personal Protection 5% Consumer Electronics 3% Industrial 10% Other 8% Mass Transit 8% Clean Technology 20% 2012 Sales by Market Internet Growth 27% 7
Financial Highlights 17
Investing in Our Future Solutions Focus Customers Six Sigma Use process excellence to satisfy customers and drive growth Global Survey Process Culture of Ownership Leadership Changes Best People Inspire and develop people who deliver results for our customers Powering, Protecting, Connecting Innovation Market-driven solutions to bring more value to customers Technology Roadmaps Innovation Center S&OP Operational Excellence Commercial Excellence Strategic Planning Global Supply Chain Deliver quality & reliability to the world s leading innovators Drive growth through worldclass sales & marketing Talent & Training 18
Sales History ($ in Millions) 10-Year CAGR of 11.9% $600 $500 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Core Business Other $400 $300 $200 $100 $0 19
Profitability 35% 30% 25% 20% 15% 10% 5% 0% 30.3 Gross Margin as % of Net Sales* GAAP 29.2 30.1 Excluding One-Timers 33.3 33.5 34.4 32.7 32.8 33.0 Q1-2012 Q2-2012 Q3-2012 Q4-2012 Q1-2013 * All figures re-stated to exclude discontinued operations. ** All comments reflect Q1-2013 vs. Q1-2012 comparisons except where noted. Q1 Comments** Key contributors to margin Q1-2013 vs. Q1-2012: Benefit from $3.0 M in cost improvements from 2012 streamlining yielded net 240 basis point improvement Benefit from Incremental Volume at 50% average contribution yielded 90 basis point improvement Negative impact of $7M inventory reduction yielded 95 basis point decline Net Other Costs contributed favorable 35 basis point impact 20
Liquidity Reported Cash and Debt $150.0 $114.9 $126.4 Q1 Comments $100.0 $93.5 $95.8 $91.1 Strong history of cash generation and liquid reserves $50.0 $0.0 -$50.0 -$100.0 -$150.0 $16.9 $30.9 -$27.8 -$24.2 -$14.9 -$106.0 -$98.0 -$95.5 -$121.3 -$120.0 1Q-2012 2Q-2012 3Q-2012 4Q-2012 1Q-2013 Cash Debt Net Debt Q1-2013 impacted by: Strong cash generation, improving cash by $32.9 M from Q1-2012 Debt repayments of $2.5 M during Q1-2013 Positive $30.9 M cash position, net of debt 21
Financial Highlights Financial 2008 2009 2010 2011 2012 From Continuing Operations Sales $ (in millions) $359.4 $286.9 $373.2 $548.3 $498.8 Gross Margin % 32.2% 28.5% 36.7% 32.6% 31.8% Net Income % 6.5% -20.6% 10.3% 8.1% 13.9% Diluted EPS $1.36 *-$3.77 $2.41 $2.64 **$4.07 *2009 results include impairment and other one-time net charges totaling $4.29 per share. **2012 results include special net benefits (reversal of tax valuation) totaling $2.94 per share, and impairment and other one-time net charges totaling $.90 per share related to streamlining effort. Financial Position Inventory Weeks on Hand 9 8 9 11 11 DSO's 66 62 62 58 58 Long-Term Debt $0.0 $0.0 $0.0 ***$115 ***$98 *** Borrowed $145 million in 2011 to Finance acquisition of Curamik 22
Non-GAAP Reconciliation Gross Margin Rogers Corporation Reconciliation of GAAP to Non-GAAP Financial Measures (In % of Sales) (Unaudited) Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 GAAP 30.3% 29.3% 33.3% 34.4% 32.8% Bremen shut-down charges - 0.6 0.1 - - PDS shut-down charges - 0.3 0.1 - - Inventory valuation adjustment - - - (1.7) - Curamik reorganization charges - - - 0.3 0.2 Total Special Charges - 0.9 0.2 (1.4) 0.2 Non-GAAP 30.3% 30.2% 33.5% 33.0% 33.0% SG&A GAAP 20.2% 17.8% 20.2% 21.8% 20.0% Uncollectible receivables write-off - (0.4) - - - Insurance settlement reimbursement - 0.4 - - - Severance & related charges - - (1.6) (0.4) (0.6) Asbestos-related charges - - - (2.4) - Curamik reorganization charges - - - (0.2) (0.2) Total Special Charges - - (1.6) (3.0) (0.8) Non-GAAP 20.2% 17.8% 18.6% 18.8% 19.2% 14
Questions? 24