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Rogers Corporation Investor
Presentation
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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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
Our Solutions Segments
Power Electronic Solutions
High Performance Foams
Printed Circuit Materials
Powering Protecting Connecting
Solving the toughest material challenges
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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
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
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
Financial Highlights
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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
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%
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.
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
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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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%
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Questions?