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1 Rogers Corporation Investor Presentation

Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

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Page 1: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

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Rogers Corporation Investor

Presentation

Page 2: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Safe Harbor StatementStatements 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.

Disclaimer

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Page 3: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

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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

About Rogers

Page 4: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Our Solutions Segments

Power Electronic Solutions

High Performance Foams

Printed Circuit Materials

Powering Protecting Connecting

Solving the toughest material challenges

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Page 5: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Serving Customers Worldwide

Asia50%

EUR25%

US23%

Other2%

2012 Revenues by RegionExcluding Joint Ventures & Discontinued Operations

SUPPLYING OVER

3000 CUSTOMERS IN

66 COUNTRIES

Global HeadquartersRogers, Connecticut

Manufacturing & SalesArizonaIllinoisConnecticut

Manufacturing & SalesBelgiumGermany

Manufacturing & SalesChinaKorea Japan (JV)

Sales OfficesBeijingSeoulShanghaiShenzhenSingaporeTaipeiTokyo

US

Europe

Asia

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>75% of Sales Outside US

Page 6: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Megatrends Advancing Our Growth

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• Wireless Infrastructure

• Smart Antennas

• Mobile Internet Devices

INTERNET GROWTH

• Rail power distribution

• Vibration management for Rail & Aircraft

MASS TRANSIT

• Variable Frequency Motor Drives

• Hybrid Electric Vehicles

• X-by-Wire

CLEAN TECH

Page 7: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Sales by Market & Megatrend Category

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Megatrends = 55% of Revenues

Internet Growth27%

Clean Technology

20%

Mass Transit8%

Industrial10%

Automotive7%

Defense6%

Cell Phones (non-Internet)

6%

Medical & Personal Protection

5% Consumer Electronics3%

Other8%

2012 Sales by Market

Page 8: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Financial Highlights

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Page 9: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Investing in Our Future

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CustomersUse process excellence to

satisfy customers and

drive growth

InnovationMarket-driven solutions to bring more

value to customers

Commercial ExcellenceDrive growth

through world-class sales &

marketing

Operational Excellence

Deliver quality & reliability to the world’s leading

innovators

Best PeopleInspire and

develop people who deliver

results for our customers

Six Sigma

S&OP

Solutions Focus

Leadership Changes

Innovation Center

Technology Roadmaps

Talent & Training

Strategic Planning

Culture of Ownership

Global Supply Chain

Global Survey Process

Powering, Protecting, Connecting

Page 10: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Sales History ($ in Millions)

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$0

$100

$200

$300

$400

$500

$600

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Core Business Other

10-Year CAGR of 11.9%

Page 11: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

ProfitabilityQ1 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

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Gross Margin as % of Net Sales*

30.329.2

33.3 34.4 32.830.1

33.532.7 33.0

0%

5%

10%

15%

20%

25%

30%

35%

Q1-2012 Q2-2012 Q3-2012 Q4-2012 Q1-2013

GAAP Excluding One-Timers

* All figures re-stated to exclude discontinued operations.** All comments reflect Q1-2013 vs. Q1-2012 comparisons except where noted.

Page 12: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Liquidity

Q1 Comments

� Strong history of cash generation and liquid reserves

� 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

Reported Cash and Debt

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$93.5 $95.8 $91.1

$114.9$126.4

-$121.3 -$120.0-$106.0

-$98.0 -$95.5

-$27.8 -$24.2-$14.9

$16.9$30.9

-$150.0

-$100.0

-$50.0

$0.0

$50.0

$100.0

$150.0

1Q-2012 2Q-2012 3Q-2012 4Q-2012 1Q-2013

Cash Debt Net Debt

Page 13: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

2008 2009 2010 2011 2012Financial

From Continuing Operations

Sales $ (in millions) $359.4 $286.9 $373.2 $548.3 $498.8Gross 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.

Financial Position

Inventory Weeks on Hand 9 8 9 11 11DSO's 66 62 62 58 58Long-Term Debt $0.0 $0.0 $0.0 ***$115 ***$98*** Borrowed $145 million in 2011 to Finance acquisition of Curamik

**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 Highlights

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Page 14: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

Non-GAAP Reconciliation

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Rogers CorporationReconciliation of GAAP to Non-GAAP Financial Measures

(In % of Sales) (Unaudited)

Q1-12 Q2-12 Q3-12 Q4-12 Q1-13Gross Margin

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&AGAAP 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%

Page 15: Rogers Corporation Investor Presentation - Jefferies Corp.pdf · Rogers, Connecticut Manufacturing & Sales Arizona Illinois Connecticut Manufacturing & Sales Belgium Germany Manufacturing

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Questions?