Rogers : 2024 First Quarter Conference Call Slides

Q1 2024 Earnings Call

APRIL 25, 2024

1

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," "should," "would" or similar expressions are intended to identify forward-looking statements, and are based on Rogers' current beliefs and expectations. This release contains forward-looking statements regarding our plans, objectives, outlook, goals, strategies, future events, future net sales or performance, capital expenditures, future restructuring, plans or intentions relating to expansions, business trends and other information that is not historical information. All forward-looking statements are based upon information available to us on the date of this release and are subject to risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to differ materially from those indicated by the forward-looking statements. Other risks and uncertainties that could cause such results to differ include the following, without limitation: failure to capitalize on, volatility within, or other adverse changes with respect to the Company's growth drivers, such as delays in adoption or implementation of new technologies; failure to successfully execute on our long-term growth strategy as a standalone company; uncertain business, economic and political conditions in the United States (U.S.) and abroad, particularly in China, South Korea, Germany, Belgium, England and Hungary, where we maintain significant manufacturing, sales or administrative operations; the trade policy dynamics between the U.S. and China reflected in trade agreement negotiations and the imposition of tariffs and other trade restrictions, as well as the potential for U.S.-China supply chain decoupling; fluctuations in foreign currency exchange rates; our ability to develop innovative products and the extent to which our products are incorporated into end-user products and systems and the extent to which end-user products and systems incorporating our products achieve commercial success; the ability and willingness of our sole or limited source suppliers to deliver certain key raw materials, including commodities, to us in a timely and cost-effective manner; intense global competition affecting both our existing products and products currently under development; business interruptions due to catastrophes or other similar events, such as natural disasters, war, including the ongoing conflict between Russia and Ukraine, terrorism or public health crises; the impact of sanctions, export controls and other foreign asset or investment restrictions; failure to realize, or delays in the realization of anticipated benefits of acquisitions and divestitures due to, among other things, the existence of unknown liabilities or difficulty integrating acquired businesses; our ability to attract and retain management and skilled technical personnel; our ability to protect our proprietary technology from infringement by third parties and/or allegations that our technology infringes third party rights; changes in effective tax rates or tax laws and regulations in the jurisdictions in which we operate; failure to comply with financial and restrictive covenants in our credit agreement or restrictions on our operational and financial flexibility due to such covenants; the outcome of ongoing and future litigation, including our asbestos-related product liability litigation; changes in environmental laws and regulations applicable to our business; and disruptions in, or breaches of, our information technology systems. Should any risks and uncertainties develop into actual events, these developments could have a material adverse effect on the Company. For additional information about the risks, uncertainties and other factors that may affect our business, please see our most recent annual report on Form 10-K and any subsequent reports filed with the Securities and Exchange Commission, including quarterly reports on Form 10-Q. Rogers Corporation assumes no responsibility to update any forward-looking statements contained herein except as required by law.

2

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 as operating income excluding acquisition and related integration costs, dispositions, intangible amortization, (gains) losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, non-routine shareholder advisory costs, (income) costs associated with terminated merger, UTIS fire (recoveries) charges, asbestos-related charges (credits), and the related income tax effect on these items;
2. Adjusted operating margin, which the Company defines as adjusted operating income as a percentage of total net sales;
3. Adjusted operating expenses, which the Company defines as operating expenses excluding acquisition and related integration costs, dispositions, intangible amortization, (gains) losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, non-routine shareholder advisory costs, (income) costs associated with terminated merger, UTIS fire (recoveries) charges, asbestos-related charges (credits), and the related income tax effect on these items;;
4. Adjusted net income, which the Company defines as net income (loss) excluding acquisition and related integration costs, dispositions, intangible amortization, (gains) losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, non-routine shareholder advisory costs, (income) costs associated with terminated merger, UTIS fire (recoveries) charges, asbestos-related charges (credits), pension settlement charges and the related income tax effect on these items;
5. Adjusted earnings per diluted share, which the Company defines as earnings per diluted share excluding acquisition and related integration costs, dispositions, intangible amortization, (gains) losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, non-routine shareholder advisory costs, (income) costs associated with terminated merger, UTIS fire (recoveries) charges, asbestos-related charges (credits), pension settlement charges, and the related income tax effect on these items, divided by adjusted weighted average shares outstanding - diluted;
6. Adjusted EBITDA, which the Company defines as net income (loss) excluding acquisition and related integration costs, dispositions, intangible amortization, (gains) losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, non-routine shareholder advisory costs, (income) costs associated with terminated merger, UTIS fire (recoveries) charges, asbestos-related charges (credits), pension settlement charges, interest expense, net, income tax expense (benefit), depreciation of fixed assets, equity compensation expense, and the related income tax effect on these items;
7. Adjusted EBITDA Margin, which the Company defines as the percentage that results from dividing Adjusted EBITDA by total net sales;
8. Free Cash Flow, which the Company defines as net cash provided by (used in) operating activities less non-acquisition capital expenditures.

Management believes adjusted operating income, adjusted operating margin, adjusted operating expenses, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA, adjusted EBITDA margin and free cash flow are useful to investors because they allow for comparison to the Company's performance in prior periods without the effect of items that, by their nature, tend to obscure the Company's core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. As a result, management believes that these measures enhance the ability of investors to analyze trends in the Company's business and evaluate the Company's performance relative to peer companies. Management also believes free cash flow is useful to investors as an additional way of viewing the Company's liquidity and provides a more complete understanding of factors and trends affecting the Company's cash flows. However, non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from, and should not be compared to, similarly named measures used by other companies. Reconciliations of the differences between these non-GAAP financial measures and their most directly comparable financial measures calculated in accordance with GAAP are set forth below.

3

Introductions

Colin Gouveia	Ram Mayampurath	Griffin Gappert
President &	Senior Vice President &	Vice President and
Chief Executive Officer	Chief Financial Officer	Chief Technology Officer

4

Today's Key Messages

1	Q1 results met guidance expectations, led by higher A&D and industrial sales.
2	Seeing improved demand in general industrial and other markets. Continuing to expect a gradual
recovery into the second half of 2024.
3	Implemented cost and expense reduction actions, balanced with maintaining ability to capture
near-term demand improvements.
4	Continuing to drive innovation and measured investments in new capacity to support growth plans.

Focused On Growth Strategy While

Driving Near-term Profitability and Cash Flow Improvements

5

Innovation At Rogers

A History of Innovation	Accelerating The Innovation Process
Technology Leadership	Strengthen Innovation Operating Model
Market Driven	• Scale innovation processes and execution capabilities
Targeted Multi-Horizon Innovation Strategy
Highly Engineered Materials
•	Extend core business
Differentiated Offerings
•	Capture emerging opportunities

• Explore future opportunities - leveraging technology

Next Generation	EV Battery Cell	Antenna	Next Generation	Emerging EV	Process
Power Substrates	Pads	Miniaturization	ADAS	Battery Tech	Innovations

Building On Our Strong Foundation of Innovation

6

Results Overview

Q1 2024 SUMMARY

REVENUE BY MARKET SEGMENT

HIGHLIGHTS

• Stronger A&D demand in AES business from improved program activity
• Industrial market demand appears to have hit bottom and seeing improvement
• Record quarterly EV/HEV sales in EMS business
• New design wins in EV/HEV, renewable energy and portable electronics

CHALLENGES

• Macro conditions showing improvement, but recovery expected to

be gradual

Other

14%

Wireless

Infrastructure

8%

2024 YTD

Industrial

Significant

Growth

EV/HEV

20%

ADAS

7%

A&D

•	AES EV/HEV demand impacted by near-term inventory
	management at key customers
•	Unfavorable product mix led to a decline in gross margin

Core 26%

Growth

Renewables 5%

14%

Portable Electronics 7%

High Growth

7

Percentages may not add due to rounding

Q1 2024 Financial Highlights

(in millions, except for EPS)		Q1 2024		Q4 2023
Net Sales		$213.4	$204.6
Gross Margin		$68.2	$67.4
Gross Margin %		32.0%	32.9%
Operating Income		$11.7	$30.5
Operating Margin %		5.5%	14.9%
Adjusted Operating Income*		$15.9	$12.9
Adjusted Operating Margin %*		7.5%	6.3%
Net Income		$7.8	$23.2
Net Income % of Net Sales		3.7%	11.3%
Adjusted EBITDA*		$28.3	$23.4
Adjusted EBITDA Margin %*		13.3%	11.4%
Earnings Per Diluted Share		$0.42	$1.24
Adjusted Earnings Per Diluted Share*		$0.58	$0.60

*See Appendix for reconciliation of non-GAAP measures.

8

Q1 2024 Revenue Results

Consolidated Revenue QoQ

($ in millions)	+3.5%	+0.8%	+4.3%
$204.6	$7.2	$1.6	$213.4
Q4'23	Volume	Currency	Q1'24
	& Other*

• Revenues of $213.4 million increased 4.3% versus Q4'23.
• Higher volume primarily from aerospace and defense (A&D) and industrial markets, partially offset by lower AES EV/HEV demand.
• Favorable currency impact primarily from euro and CNY sales.

*Volume & Other of $7.2 million represents change in volume, price and mix excluding the impact of FX.

Note: Percentages and dollars may not add due to rounding

Revenue By Operating Segment QoQ**

($ in millions)

	+4.1%
$117.3	$122.1		+2.8%
		$83.4	$85.7
AES Q4'23	AES Q1'24	EMS Q4'23	EMS Q1'24

• AES: Higher A&D, wireless infrastructure, industrial and renewable energy sales, partially offset by lower EV/HEV and ADAS sales. Favorable foreign currency $1.0 million.
• EMS: Higher general industrial, A&D and EV/HEV sales, partially offset by seasonally lower portable electronics sales. Favorable foreign currency of $0.6 million.

**"Other" business unit not included	9
Note: Percentages and dollars may not add due to rounding.

Q1 2024 Gross Margin and Adjusted Net Income*

Gross Margin

($ in millions)	+1.5%	(0.3%)

Adjusted Net Income*

($ in millions)

		+1.2%
$67.4	$0.2	$68.2
$1.0

32.9%

32.0%

+26.5%

$3.0

$11.3

5.5%

+15.0% (45.1%)

$1.7

$5.1

(3.5%)

$10.9

5.1%

Q4'23	Volume*	Performance	Q1'24
	& Other	& Other

• Higher sales volume impacted by unfavorable product mix.
• Cost reduction actions offset by under-utilization in AES from lower EV/HEV production volumes.

*Volume & Other of $1.0 million represents change in sales volume, price, mix and FX. Note: percentages and dollars may not add due to rounding

Q4'23	Adj Op	Other	Income	Q1'24
	Income*	Inc./Exp.**	Tax

• Adjusted Op Income*: Improvement from higher gross profit and lower adjusted operating expenses.
• Other Income/Expense**: Increase due to gains on foreign currency transactions and lower interest expense.

*See appendix for reconciliation of adjusted measures to GAAP measures
**Includes equity income in unconsolidated joint ventures, other income (expense), net and interest	10
expense, net from Consolidated Statements of Operations
Note: percentages and dollars may not add due to rounding