EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
 
       1  InvestorPresentation 2017 
 
   WelcomeJack Monti, CFADirector, Investor Relations 
 
 Forward-looking statements  3  Safe Harbor StatementThis presentation contains forward-looking statements, which may concern our plans, objectives, outlook, goals, strategies, future events, future net sales or performance, capital expenditures, financing needs, 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 the results discussed in the forward-looking statements. Risks that could cause such results to differ include: failure to capitalize on, and volatility within, the Company's growth drivers, including internet connectivity, clean energy, and safety and protection, as well as specific market and industry trends within these growth drivers; business, economic and political conditions in the United States and abroad, particularly in China, South Korea, Germany, Hungary and Belgium, where we maintain significant manufacturing, sales or administrative operations; fluctuations in foreign currency exchange rates; research and development efforts; competitive developments; business development transactions and related integration considerations; the outcome of ongoing and future litigation, including our asbestos-related product liability litigation; and changes in laws and regulations applicable to our business. 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 subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Rogers Corporation assumes no responsibility to update any forward-looking statements contained herein except as required by law. ProjectionsToday’s presentation includes information related to projected industry conditions and forecasts obtained from internal industry research, publicly available information, and external surveys and market research. The publicly available information and external surveys and market research have been obtained from sources we believe to be reliable, but we cannot assure the accuracy and completeness of this information. We have not independently verified any of the data from third-party sources, and we have not ascertained the underlying economic assumptions relied upon within those sources. Similarly, our internal research and forecasts are based upon our management’s understanding of industry conditions, and such information has not been verified by independent sources. Forward-looking information obtained from these sources is subject to the same qualification and the additional uncertainties regarding the other forward-looking statements in this presentation.Today's presentation is not an offer to sell or a solicitation of an offer to buy any of our securities. 
 
 Agenda  4    Executive overviewBruce HoechnerPresident and Chief Executive Officer, Principal Executive Officer    Technology and innovation leadershipBob DaigleSenior Vice President and Chief Technology Officer    Advanced Connectivity Solutions overviewJeff GrudzienSenior Vice President and General Manager, Advanced Connectivity Solutions    Power Electronics Solutions overviewHelen ZhangSenior Vice President and General Manager, Power Electronics Solutions    Elastomeric Material Solutions overviewChris ShaddaySenior Vice President and General Manager, Elastomeric Material Solutions    Financial overviewJanice StippSenior Vice President and Chief Financial Officer, Principal Financial Executive 
 
   Executive overviewBruce HoechnerPresident and Chief Executive Officer, Principal Executive Officer 
 
 A transformed company…  6  Fulfilling the “Promise of Rogers”Well-positioned to deliver superior profitable growth over the long-term    Highly experienced leadership team driving disciplined execution of our proven strategyResults-oriented “One Rogers” culture: ethical; team-based; customer-focused  Innovation  Operational excellence and diversification  “Top of the pyramid” portfolio  Leadership and culture    Concentrated focus on higher market growth innovation opportunitiesNew product development capabilities expanding technology leadership    Operational excellence capabilities creating significant competitive advantagesGreater diversification of markets, customers and technology    Top of the pyramid portfolio positioning; technology leadership, customer serviceOrganic business and synergistic M&A offering strong growth opportunities 
 
 Rogers business overview  *See reconciliation of adjusted operating margin to operating margin in the appendix, for both 2016 and the first half of 2017  7  Portfolio highlightsHigh-performance materialsMission-critical applicationsTechnology innovation and leadershipStrong, collaborative customer relationshipsEngineer-to-engineer salesGlobal sales, manufacturing and technology footprint  Key business metricsFull year 2016  $656M1H ’17 $405MSales  15.2%1H ’17 20.6%Adjusted operating margin*  Strong growth profile with significant margin expansion opportunities    2016  Sales by business unit  2016  1H’17  Regional sales (“Ship to“) 
 
 The “One Rogers” Approach  8  Performance-driven, ethical culture driving exceptional results    Live safelyTrustInnovateJust decideSpeak openlySimply improveDeliver results  Cultural behaviors driving results              Reward shareholders  Expandcustomerloyalty  Engageemployees 
 
 Focused strategy guiding the way  9  Targeting top-tier performance        Strategic intent…  Build and optimize businesses for profitable growth and scale through innovation and acquisitions  …leveraging our competencies…  For markets that demand performance, Rogers applies technical problem solving and engineering capabilities to identify, develop and deliver highly-engineered materials and solutions  …enabled by four pillars…    …to deliver…  Top quartile operating profit growth  Market-driven organization  Innovation leadership  Synergistic M&A  Operationalexcellence 
 
 Delivering results  *See reconciliation in the appendix of adjusted operating margin to operating margin. **Free cash flow calculated by subtracting GAAP capital expenditures from GAAP net cash provided by operating activities from continuing operations, with calculation in the appendix.  10  Executing the strategy to create shareholder value    Sales  Adjusted operating margin*  Free cash flow**      Growth through innovation and synergistic M&A Greater market diversification Expanded customer base  Significant margin expansionConsistently strong marginsStrategic R&D  Strong operating cash flowDisciplined capital allocationInvesting in strategy and growth  Over $157 million sales increase  +520 basis points increase    1H ’17$405M    1H ’1720.6%  +$82 million of free cash flow    1H ’17$55M 
 
 Market-driven innovation  11  Providing enabling solutions for:  AutonomousvehiclesVehicle-to-vehicle communications4.5G & 5G wireless infrastructureInternet of Things(IoT)  TOMORROW’sEmerging market opportunities    Advanced Mobility      Advanced Connectivity    A history of enabling innovationfor today’s and tomorrow’s solutions  TODAY’sGrowth applications  HEV power modulesEV batteriesVehicle electrificationAdvanced driver assistance systems  4G/LTE power amplifiers Multiband antennasMobile internet devices     
 
   Strong execution of synergistic M&A  12  Continuing focus on differentiated growth businesses    MOREdifferentiated                                Market and technology leadershipHighly engineered applicationsDifferentiated offeringsAttractive financial profile  “Top of the Pyramid” criteria:        Q1 2017  Q4 2016  Q1 2011  Future transactions…  Q1 2015                   
 
 Vision for Rogers: 2020  13  Deliver leading shareholder returns    A market and innovation leader at the “top of the pyramid”A broad base of markets, customers and technologyOperationally excellentResults-driven, ethical culture focused on employees, customers and shareholders  Company positioning  Financial objectives  ~$370M  Adjusted Operating Margin: 20%  $1.2BRevenues 15% Total growth  Synergistic M&A growth:5-8%  Organic growth: 7-10%    20%Adjusted operating margin 
 
   Technology and innovation leadershipBob Daigle Senior Vice President and Chief Technology Officer 
 
 Heritage of innovation  15  Materials innovation is in our DNA     
 
   “Top of the pyramid” focus  16  High performance differentiated solutions drive growth                            DIFFERENTIATED PERFORMANCE  DIFFERENTIATED PERFORMANCE  Market and technology leadershipHighly engineered applicationsDifferentiated offeringsAttractive financial profile  Rogers’focus  
 
   Wirelessinfrastructure  Automotive safety / connectivity  Aerospace & defense  Advanced Connectivity Solutions  17  Enabling the world’s most critical connections  High frequency circuit materials                         
 
   Industrial automation  EV / HEV and vehicleelectrification  Renewableenergy  Power Electronic Solutions  18  Increasing efficiency, managing heat, ensuring reliability  High performance materials and power electronic components                           
 
   Sealing & vibration management  Portable electronicdevice protection  EV batterymaterials  Elastomeric Material Solutions  19  Protecting mission-critical components and devices  High reliability polymeric/elastomeric solutions                           
 
 Market-driven innovation  20  Providing enabling solutions for:  AutonomousvehiclesVehicle-to-vehicle communications4.5G & 5G wireless infrastructureInternet of Things(IoT)  TOMORROW’sEmerging market opportunities    Advanced Mobility      Advanced Connectivity    A history of enabling innovationfor today’s and tomorrow’s solutions  TODAY’sGrowth applications  HEV power modulesEV batteriesVehicle electrificationAdvanced driver assistance systems  4G/LTE power amplifiers Multiband antennasMobile internet devices     
 
 Market-driven innovation  21  Expanded Core  Current coretechnology  University collaboration  Internal development  Technology licensing  Business acquisitions  Unmet market needs   
 
 Innovation centers  22  Partnering globally to speed innovation    Chandler, AZ  Burlington, MA  Suzhou, China 
 
 Examples from new product pipeline  23  Pursuing a wide range of market-driven opportunities  Advanced Mobility    Advanced Connectivity        New generation of power semiconductor substrates for wide bandgap semiconductorsLow inductance integrated capacitor solutions for EV applications  Dielectric-based broadband antennas for 5G infrastructureSmaller, decorrelated antennas in handsets for high order MIMOExtreme low-loss, high-speed platform enabling 50 GB/s per channelHeat absorbing materials to reduce hotspots in portable electronics 
 
       Targeting advanced mobility and advanced connectivity opportunities      Technology and innovation summary  24  Heritage of innovation  Building on heritage of materials innovation  “Top of the pyramid”  Focusing on new platform top of the pyramid products   Organic growth drivers  Global collaboration  Pursuing global collaboration to speed innovation  Product pipeline  Expanding market-driven new product pipeline  Rogers continues to strengthen technology leadership position 
 
   Advanced Connectivity SolutionsJeff Grudzien Senior Vice President and General Manager 
 
 ACS key messages  26  ACS well-positioned in rapidly expanding core markets        Near-term focus  Continued 4G LTE spend supplemented by early 4.5G deployments ADAS radar penetration exceeding consensus growth forecastsAerospace & Defense market providing steady growth  Growthdrivers  Rapidly increasing mobile data traffic requirementsAutomotive autonomous driving and connectivityThe worldwide connection of everything to everything  Long-term outlook  Established leaders in markets with positive growth tailwindsPerformance and reliability requirements provide high barrier to entryInnovation is central to our strategy to diversify and differentiate 
 
 ACS business overview  27  Portfolio highlightsLeader across market applicationsExpanded offering / solutions providerTrusted partner for innovationStrong customer loyalty / collaboration    Key business metricsFull year 2016  $278 M1H ’17 $153 MSales  17.1%1H ’17 22.8%Segment adjusted operating margin*  Strong position to support customers and markets worldwide  Vertical applications  *See reconciliation of segment adjusted operating margin to segment operating margin in the appendix, for both 2016 and the first half of 2017  1H ’17 
 
 ACS market applications   28  Trusted to deliver innovation and reliability to markets that demand nothing less          20%  41%  20%  ACS Business Unit  Operating from a position of strength in target markets  Market application  Next 5 years  Competitive Advantages      Auto safety / connectivity  Portfolio supports short, mid and long range sensorsGlobal leadership position in installed baseReliability is a cornerstone value  Aerospace & defense  Decades of high reliability excellenceUnique products for the toughest applicationsOur consistent material performance is valued  Wireless infrastructure  Broad portfolio of high-frequency solutionsTrust based on leadership position in 2G/3G/4GWorld-class technical expertise and problem solving             
 
 Auto safety / connectivity  *Sources: IHS Markit, June 2017; ABI Research, December 2016  29  High growth from ADAS penetration and trend toward connected, autonomous vehicles  ADAS sensors prevalent in more vehicle platformsRadar is performance critical, supplemented by cameras / LIDARAutonomous driving to require a higher number of sensors per vehicleVehicle-Infrastructure, Vehicle-Vehicle communications increasingConsumer demand passed tipping point in connectivity and safety  Drivers    Automotive Radar Sensor Volume*  (Units in millions)  3 year CAGR’sABI: 70%IHS: 22% 
 
 Wireless infrastructure  *Source: Cisco VNI Mobile, 2017  30  Accelerated 5G deployment will provide incremental growth  4G LTE global population coverage at approximately 55% by end of 20164.5G being deployed to build faster networks and expand capacitySmall cell, NB-IoT and LTE-M installationsFixed Wireless Access likely the first widespread 5G applicationNon-standalone 5G New Radio defined by industry  Drivers    Global Mobile Data Traffic*  (Exabytes per month)  3 year CAGR: 51% 
 
       Operational excellence initiatives      ACS summary  31  “Top of the pyramid”  Position at the top of the pyramid provides a value premium  Innovation  Trusted innovation partner across multiple application segments  Operational excellence  Global capabilities  Industry recognized, broad and deep global team for customer support  Market leader  Strong leadership position in attractive growing markets  ACS will continue to be a major contributor to Rogers’ sales and profit growth 
 
   Power Electronics SolutionsHelen ZhangSenior Vice President and General Manager  
 
 PES key messages  33  PES is well-positioned for growth in e-Mobility and continues to drive profit improvement         Near-term focus  Rapid growth in e-Mobility (EV/HEV + Vehicle Electrification) Ongoing adoption of Si Carbide (SiC) chip for e-Mobility and clean energy Accelerating demand for advanced manufacturing applications   Growth drivers  Demand to reduce CO2 emissionsSiC chip adoption, which will drive demand for higher thermal conductivity substratesIncreasing industrial automation  Long-term outlook  Accelerate e-Mobility growth by solving unmet market needsInvest in micro-channel cooler (MCC) for high-end laser machine reliability Continue operational excellence initiatives and leverage pricing for profitable growth 
 
 PES business overview  34  Portfolio highlightsMarket leader in our product linesWell established global service networkExperienced provider in automotiveStrong customization design capabilityEngineer-to-engineer relationshipsManufacturing in low-cost countries    Key business metricsFull year 2016  $152 mm1H ’17 $87 mmSales  6.5%1H ’17 12.1%Segment adjusted operating margin*  Strong track record of top- and bottom-line growth  *See reconciliation of segment adjusted operating margin to segment operating margin in the appendix, for both 2016 and the first half of 2017  Vertical applications  1H ’17 
 
 PES market applications  Strong commercial base with industrial market leadership; e-Mobility is a major growth driver          26%  43%  16%  e-MobilityEV/PHEV and Vehicle Electrification  IndustrialUPS, VFD& MCC   PES Business Unit  Renewable energy   Recognized technology leadership with OEMs and Tier 1 automotive customers Unsurpassed product quality and reliabilityEstablished, dependable supplier, 10+ years in market  Market-leading position in DBC substrates Expertise in DBC, offering high-quality and reliabilityLeading position in advanced feature offerings  Broadening product offerings based on customer collaboration to reinforce and expand industry-leading position  Market leader in DBC substrates for residential solar applicationsExpertise in laminated busbars for high power solar and wind farms  Market application  Next 5 years  Competitive Advantages                  35 
 
 e-Mobility as a PES growth engine  36  Significant EV market adoption will drive e-Mobility growth  *Source: Bloomberg New Energy Finance  Global call to reduce air pollutionConsumer preference for lower emissions, government regulations and incentivesBattery improvements driving affordabilityIncreased number of EV OEMsHigher content in electrification features Start-stop also lowers CO2 emissions  Drivers    e-Mobility sales penetration*  (% of new car sales)          5%  4%  3%  2%  1%  0%  2015  2016  2017  2018  2019  2020  2021    EuropeU.S.ChinaROW 
 
 Laser systems enabling industry 4.0   *Source: Laser Markets Research  37  Significant growth from high-end laser systems   Industrial lasers are key components in automated processing systemsHealthcare is an additional growth driver of laser systems High performance coolers provide excellent reliability for laser systems  Drivers    Total Laser Market*  (USD millions)  15% high-end CAGR  7% total market CAGR 
 
     Broaden portfolio of solutions through collaborative innovation      PES summary  38  Market leader  e-Mobility, industrial and renewable energy markets poised for growth  Innovation  Global capabilities  Global service network with local design expertise  Operational excellence  Focus on operational excellence for accelerated profit growth  PES is executing on significant profit growth through innovation and operational excellence    “Top of the pyramid”  Continued execution enhances top of the pyramid positioning 
 
   Elastomeric Material SolutionsChris Shadday Senior Vice President and General Manager 
 
 EMS key messages  40  EMS portfolio positioned for steady organic growth and strong inorganic opportunities        Near-term focus  Organic growth opportunities supported by market and technology trendsSignificant opportunities for global growth in newly acquired businessesDiversified portfolio offers stable long-term growth potentialInorganic growth opportunities with top of the pyramid materials  Growthdrivers  Pace of technological change continues to accelerate in core marketsMore demanding technologies require more advanced materialsMany small-to-mid sized advanced material companies with differentiated technologies for potential M&A  Long-term outlook  Demand for more resilient materials driving growth of silicones portfolioGrowing portfolio allows EMS to leverage our global commercial presenceEmerging technologies in Automotive drive opportunities for higher performance materials 
 
 EMS business overview  41  Portfolio highlightsDiversified portfolio across markets and applicationsNew North American based acquisitions offer the opportunity to leverage global footprintStrong customer loyaltyProduct performance is a critical customer criteria    Diverse portfolio of applications across global markets providing many vectors for growth  Key business metricsFull year 2016  $203 mm1H ’17 $154 mmSales  17.2%1H ’17 22.3%Segment adjusted operating margin*  Vertical applications  *See reconciliation of segment adjusted operating margin to segment operating margin in the appendix, for both 2016 and the first half of 2017  1H ’17 
 
 EMS market applications   42  Attractive mix of steady growth and high-potential applications          38%  21%  8%  General industrial  Portableelectronics  EMS Business Unit  Automotive  Technology leadershipStrong customer loyalty in all regionsGrowing diversity of material portfolio  Market leadership with strong position across OEMsWell positioned for technology changesChanging OEM competitive landscape; new OEMs offering new opportunities  Strong market position in key segmentsDiversified market and product portfolioGlobal resources to drive growth in acquisitions  Sealing and isolation solutionsTechnology leadershipWell positioned in fast growing EV segment  Market application  Next 5 years  Competitive advantages                 
 
 General industrial  Source: Internal Data  43  Significant opportunity to globalize acquired businesses  More demanding technologies across industries drive needs for high-performing materialsDiverse portfolio offers steady growth opportunitiesNewly acquired businesses have high NA concentration… opportunity to leverage global resources to drive growth  Drivers    Geographic mix (acquired businesses) 
 
 Portable electronics  *Source: IDC  44  Competitive and rapidly changing market providing new challenges and opportunities  Device replacement cycles ensure large market size and steady growthConstant innovation provides ongoing stream of new challenges and opportunities (e.g., OLED displays)Maturing market means greater competitive pressure to preserve share leadership  Drivers    Portable electronics market*  (smartphone and tablet shipments in millions)  3.4% CAGR 
 
 Automotive  *Source: IDC  45  Planning for steady growth from traditional auto seals and gaskets; accelerated growth from EV/HEVs  Tighter tolerances mean new opportunities in traditional sealing and gasketingGrowth in EV/HEV driving growth in battery separator and sealing applicationsEmerging technologies in Automotive expected to drive need for improved sealing, gasketing and vibration damping materials  Drivers    Light vehicle market*  (millions of vehicles)  CAGR’sLight vehicles: 2%Electric vehicles: 27%   
 
     Continue to use synergistic M&A for growth, and build upon strong track record with recent acquisitions      EMS summary  46  Diverse market opportunities  Diverse application areas provide increased consistency and significant growth opportunities  Synergistic M&A  Global capabilities  Leverage global capabilities for revenue synergies and organic growth  Operational excellence  Focus on operational excellence for increased profitability  EMS is a core strategic business unit for Rogers, with several strong organic and inorganic growth opportunities    “Top of the pyramid”  Rapid pace of technological change moves markets toward Rogers’ top of the pyramid position 
 
   Financial overviewJanice Stipp Senior Vice President and Chief Financial Officer, Principal Financial Officer 
 
       Recent financial highlights – Q2 2017  48  Accelerating revenue growth  Strong revenues across all Rogers’ strategic business unitsQ2 revenue up 28% year-over-yearTurned the corner on the industrial recession  Increasing profitability  Q2 gross margins of 40.0%, increasing 180 basis pointsAdjusted operating margins* of 19.1%, increasing 560 basis pointsAdjusted EPS* of $1.33, up 51.1% versus last year  Consistentlystrong balance sheet  Strong cash position on balance sheet with $177M at Q2 period endCash / debt essentially neutral2017 YTD operating cash flow of $64M, and free cash flow** of $54MCompleted 2 recent acquisitions, and balance sheet remains strong  Strong performance across all strategic business units  *See reconciliations in the appendix: adjusted operating margin to operating margin and adjusted earnings per diluted share to earnings per diluted share. **Free cash flow is calculated by subtracting GAAP capital expenditures from GAAP net cash provided by operating activities from continuing operations, with reconciliation shown in the appendix. 
 
 Profitable organic growthStrategic acquisitionsResearch and development funding product innovationFurther diversify customer base and platform mix  Execute integration and synergy plansOperational excellenceLeverage SG&A with growthIncrease engineering investment to support cost reductionsSupply chain leverage  Deploy free cash flow strategicallyImprove working capital efficiencyOptimize capital structureStrong balance sheet and liquidityReturn excess cash to shareholders  Financial priorities  49  Top quartile operating profit growth; generate shareholder returns  Revenue growth  Expand earnings  Cash flow, capital structure, capital allocation 
 
 Financial performance  50  *See reconciliations in the appendix: adjusted EPS to EPS and adjusted operating margin to operating margin.  Strategic focus increasing revenues; operating discipline driving margin expansion  Sales  Margins  Significant growth    *Adj. EPS +77% ’12-’16  $499M  $656M    *Adj. OM +520 bps ’12-’16  620 bps gross margin increase ’12-’16  $405M 
 
 Confidence in organic growth  Note: Other segment sales are not included above with the core business segments. *3 year outlook on an organic basis.  51  Solid foundations support organic growth        Strategic business units  Comments on foundations for strong organic growth  Advanced Connectivity Solutions (ACS)  Power Electronics Solutions (PES)  Elastomeric Material Solutions (EMS)  Organic growth*  High single digits  Mid to high single digits  Revenue %  35-40%  35-40%  20-25%  Early 4.5G deployments, 5G accelerating, continued 4G LTE spendAutomotive radar penetration exceeding expectationsAerospace & defense market providing growth  Growth in base business with industrial recession behind usOutpacing market and GDPSynergistic acquisitions increasing growth rateSignificant international opportunities for growth  e-Mobility growing significantlyOngoing adoption of products for cleaner energy solutionsNew applications for micro channel coolers providing significant growth potential  Mid single digits 
 
 Delivering value through M&A  52  Synergistic M&A enhances increased growth profile, accelerates value creation  Augments and accelerates growth and core innovationAccess to new markets and customersRigorous deal review process with committed return on capitalIntegration focus on:Integrating and scaling through the channelDelivering defined synergiesRetention of acquired talentHistory of delivering growth and returns  Synergistic M&A focus            Q1 2011  Q1 2015  Q4 2016  Q1 2017  Future transactions…   
 
 Significant diversification  53  Diversifying customer base and product offerings  Sales by customer  Key growth drivers and markets  Growth drivers focused on market-driven innovation increasing faster  2016  2012  Advanced mobility  Advanced connectivity  Other  Aerospace & defense  General industrial  Clean / renewable energy  Top 10  2016  Customer 1  Customer 2  Customer 3  Customer 4  Customer 5  Customers 6-10 
 
 Vision for Rogers: 2020 financial objectives  *See reconciliations in the appendix: adjusted EPS to EPS and adjusted operating income and margin to operating income and margin.  54  Strong growth and operating leverage drive margin expansion  Organic revenue growth and synergistic M&A  Adjusted operating income* growth faster than revenue  CAGR 15%  Synergistic M&A  7% organic  15% with M&A  480 bps increase  $656M  $875M  $1.2B  $100M  $235M  Adj. EPS*  Adj. EPS*    +21%*Adj. EPS CAGR ’16-’20 
 
 Initiatives for operational excellence  55  Operational excellence drives continued margin expansion  Optimizing utilization  Improving productivity and yield  Increasing flexibility and repurposing underutilized assets  Increase utilization of shared services  Footprint  Process  Cost structure  Back office    Gross margin initiatives to drive to 40% target  1H1739.7% 
 
 Further improving cost structure  56  *See reconciliations in the appendix: adjusted operating margin to operating margin.  Lean cost structure allows for investment in engineering and higher margins  Lowering costs of goods sold  Increasing R&D  Increasing adjusted operating margin*  620 bps improvement      50 bps increase  520 bps improvement  $50M  $100M  $29M  $19M 
 
         Capital allocation priorities  57  Execute strategic priorities  Strong balance sheet and cash generationInvest in business and pursue synergistic M&ANew product innovations and operational excellence  Ensure adequate liquidity  Optimize capital structure  Distribute excess cash  Maintain sufficient cash balanceContinue to ensure adequate capital resources  Target sustainable capital structureSustain strategy execution over time  Excess cash to be distributed through execution of share repurchase program  Focus on value enhancing investments 
 
 Capital allocation  58  *Historical capital deployment from 2014-2016**Gross cash outflow for acquisitions from 2014-2016 of $292M.  Capital allocation flexibility remains focused on long-term shareholder value creation        Capital spending  Revenue growthFootprint optimizationProcess improvements  Share repurchases  Return cash to shareholdersIncrease EPSReward investors  Synergistic M&A  Enhance growth platformIncrease market leadershipDeliver more significant value  Historical deployment*          Capital expenditures ~26%  Debt repayment ~46%  Stock repurchase ~17%  Net acquisitions** ~11%   
 
       Continuing to optimize cost structure while investing for growth      Rogers outperforms  59  Track record  Track record of strong financial performance  Growth  Accelerating growth through innovations and acquisitions  Cost structure  Flexibility  Significant operational and financial flexibility  Capital allocation  Strong cash generation and accretive deployment plan  Consistently delivering value; outperformance continues 
 
 Outperform major indices  Significant shareholder returns  Source: IR insight price performance 2012 through August 1, 2017  60  +229%  +97%  +93% 
 
   Questions and answersBruce Hoechner and executive team 
 
 A transformed company…  62  Vision 2020: 15% total revenue growth; 20% adjusted operating margin    Highly experienced leadership team driving disciplined execution of our proven strategyResults-oriented “One Rogers” culture: ethical; team-based; customer-focused  Innovation  Operational excellence and diversification  “Top of the Pyramid” portfolio  Leadership and culture    Concentrated focus on higher market growth innovation opportunitiesNew product development capabilities expanding technology leadership    Operational excellence capabilities creating significant competitive advantagesGreater diversification of markets, customers and technology    Top of the pyramid portfolio positioning; technology leadership, customer serviceOrganic business and synergistic M&A offering strong growth opportunities 
 
 Presenters 
 
 Presenters  64    Bruce D. HoechnerPresident and Chief Executive OfficerPrincipal Executive Officer  Bruce Hoechner joined Rogers as President and CEO in 2011. During his tenure, the company significantly increased revenues, margins and cash flow, through organic growth and acquisitions. Prior to Rogers, Bruce spent 30 years with Rohm and Haas Company / Dow Chemical, where he led a number of global specialty chemical business units and eventually served as President of Dow Advanced Materials, Asia Pacific region, with revenues of more than $2B.    Robert C. DaigleSenior Vice President and Chief Technology Officer    Bob Daigle joined Rogers in 1988. He has led the company’s R&D organization since 2003, where he is responsible for new product development and market-driven innovation to drive Rogers’ growth. Also while with Rogers, Bob has held a number of leadership roles, including head of Corporate Development, Corporate Marketing, Vice President of the Advanced Connectivity Solutions business, and Vice President of the Power Electronics Solutions business. 
 
 Presenters  65      Jeffrey M. GrudzienSr. Vice President and General ManagerAdvanced Connectivity Solutions  Jeff Grudzien joined Rogers in 2000 and has served in a number of sales and marketing leadership roles during his tenure. Since 2012, Jeff has led the Advanced Connectivity Solutions business. Before that, Jeff served as Vice President of Sales & Marketing for all of Rogers’ product lines. Jeff has over 33 years of business experience, primarily in Sales and Marketing roles for specialty engineered products.     Helen ZhangSr. Vice President and General ManagerPower Electronics Solutions  Helen Zhang joined Rogers in May 2012 as Vice President, leading the company’s Power Electronics Solutions business unit, as well as Rogers’ Asia region. Prior to Rogers, Helen spent more than 20 years with Dow Chemical where she held a variety of leadership positions in the specialty chemicals business, and led two joint ventures in the Asia region. 
 
 Presenters  66      Christopher R. ShaddaySr. Vice President and General ManagerElastomeric Material Solutions  Chris Shadday joined Rogers in 2014 as Vice President of Marketing for the Elastomeric Material Solutions business and took over leadership of the division in early 2016. Prior to joining Rogers, Chris spent 28 years in manufacturing and commercial leadership roles within Rohm and Haas Company and its subsidiaries, including the role as President of a specialty chemical joint venture company between Rohm and Haas and Rockwood Specialties.  Janice E. StippSr. Vice President and Chief Financial OfficerPrincipal Financial Officer  Janice Stipp joined in 2015 serving as Chief Financial Officer of Rogers Corporation. Janice brings 35 years of finance and accounting experience to her role, including over 10 years of CFO experience, for public and private companies across the manufacturing, technology and automotive industries. Janice serves on the Board of Directors for Arcbest and Plygem, and is on the Michigan State University Accounting Advisory Board. 
 
 Appendix 
 
 Non-GAAP information  68  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”): Adjusted earnings per diluted share, which the Company defines as earnings per diluted share excluding acquisition-related amortization of intangible assets and discrete items, such as restructuring expenses, certain costs associated with acquisitions, and gains or losses on asset or business dispositions (collectively, “Discrete Items”)Adjusted operating income, which the Company defines as operating income excluding acquisition-related amortization of intangible assets and Discrete Items; Adjusted operating margin, which the Company defines as operating margin excluding acquisition-related amortization of intangible assets and Discrete Items.Management believes each of these measures is 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 the potential variability across periods based on the timing, frequency and magnitude. As a result, management believes that adjusted net sales, adjusted earnings per diluted share, adjusted EBITDA, adjusted operating income, adjusted operating margin and adjusted EBITDA margin enhance the ability of investors to analyze trends in the Company’s business and evaluate the Company’s performance relative to peer companies. However, non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from 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 at the end of this document.  
 
 69    1H-17  FY-20  FY-16  FY-15  FY-14   FY-13   FY-12                  Operating margin  17.8%  18.0%  12.8%  11.9%  13.3%  9.2%  5.1%   Environmental accrual adjustment  -  -  (0.1%)  0.5%  -  -  -   Pension curtailment & settlement charges  -  -  -  -  0.9%  0.3%  0.4%   Restructuring, severance and other related costs  0.4%  -  0.2%  0.3%  -  0.9%  1.3%   Manufacturing site optimization  -  -  -  -  -  -  1.5%   Purchase accounting inventory adjustment  0.4%  -  0.1%  0.2%  -  -  -   Asbestos  -  -  -  -  -  -  0.6%   Gain on sale of non-core assets  (0.2%)  -  -  -  -  -  -   Acquisition/ divestiture related costs  0.5%  -  0.6%  -  0.4%  -  -   Integration costs  -  -  -  0.8%  -  -  -   Relocation charges – Curamik’s final inspection operation  -  -  -  -  -  0.2%  -   Impairment charge on investment  -  -  -  -  -  0.8%  -   Other special charges  -  -  -  -  -  0.1%  0.2%  Operating margin plus Discrete Items  18.9%  18.0%  13.6%  13.7%  14.6%  11.5%  9.1%   Acquisition intangible amortization  1.7%  2.0%  1.6%  1.7%  1.0%  1.1%  0.9%  Adjusted operating margin  20.6%  20.0%  15.2%  15.4%  15.6%  12.6%  10.0%  Adjusted operating margin reconciliations, 2012-2016, 2020 and 1H 2017 
 
 Free cash flow reconciliations  70    1H-17  FY-16  FY-15  FY-14  FY-13  FY-12                Operating cash flow from continuing operations  $64.5  $117.0  $73.9  $85.2  $77.2  $40.4   Less capital expenditures  $9.7  $18.1  $24.8  $28.8  $16.9  $23.8  Free cash flow  $54.8  $98.9  $49.1  $56.4  $60.3  $16.6  ($ in millions) 
 
 71    ACS  ACS  EMS  EMS  PES  PES    1H-17 ($)  1H-17 (%)  1H-17 ($)  1H-17 (%)  1H-17 ($)  1H-17 (%)                Operating income and margin  $32.9  21.5%  $27.0  17.5%  $8.6  9.9%   Restructuring severance and other related costs  $0.8  0.5%  $0.5  0.3%  $0.4  0.5%   Purchase accounting inventory adjustment  -  -  $1.6  1.0%  -  -   Gain on sale of non-core assets  ($0.4)  (0.3%)  ($0.3)  (0.2%)  ($0.2)  (0.2%)   Acquisition related costs  -  -  $2.1  1.4  -  -  Operating margin plus Discrete Items  $33.3  21.7%  $30.9  20.0%  $8.8  10.2%   Acquisition intangible amortization  $1.6  1.1%  $3.6  2.3%  $1.7  2.0%  Adjusted operating income and margin  $34.9  22.8%  $34.5  22.3%  $10.5  12.1%  Segment adjusted operating income and operating margin reconciliations 1H 2017  ($ in millions) 
 
 72  Segment adjusted operating income and operating margin reconciliations 2016    ACS  ACS  EMS  EMS  PES  PES    FY-16 ($)  FY-16 (%)  FY-16 ($)  FY-16 (%)  FY-16 ($)  FY-16 (%)                Operating income and margin  $44.0  15.8%  $26.6  13.1%  $6.0  3.9%   Environmental accrual adjustment  ($0.4)  (0.1%)  ($0.2)  (0.1%)  ($0.2)  (0.1%)   Restructuring severance and other related costs  $0.7  0.3%  $0.3  0.1%  0.3  0.2%   Purchase accounting inventory adjustment  -  -  $0.9  0.4%  -  -   Acquisition related costs  -  -  $3.8  1.9%  -  -  Operating margin plus Discrete Items  $44.3  16.0%  $31.4  15.4%  $6.1  4.0%   Acquisition intangible amortization  $3.2  1.1%  $3.7  1.8%  $3.8  2.5%  Adjusted operating income and margin  $47.5  17.1%  $35.1  17.2%  $9.9  6.5%  ($ in millions) 
 
 73        Q2-17 ($)  Q2-17 (%)  Q2-16 ($)  Q2-16 (%)                Operating income and margin      $32.8  16.3%  $18.8  11.9%   Restructuring severance and other related costs      $1.1  0.5%  -  -   Acquisition related costs      $0.9  0.5%  -  -  Operating margin plus Discrete Items      $34.8  17.3%  $18.8  11.9%   Acquisition intangible amortization      $3.6  1.8%  $2.5  1.6%  Adjusted operating income and margin      $38.4  19.1%  $21.3  13.5%  Adjusted operating income and operating margin reconciliations, Q2-2017 and Q2-2016  ($ in millions) 
 
 74    Q2-17 ($)  Q2-16 ($)  1H-17 ($)  FY-20 ($)  FY-16 ($)  FY-12 ($)                Earnings per diluted share  $1.13  $0.29  $2.60  $7.05  $2.65  $3.97  Restructuring, severance and other related costs   $0.04  -  $0.07  -  $0.04  $0.63  Acquisition related costs  $0.03  -  $0.07  -  $0.13  -  Tax discrete items  -  $0.49  -  -  $0.49  ($2.94)  Environmental charge  -  -  -  -  ($0.03)  -  Purchase accounting inventory adjustment  -  -  $0.05  -  $0.03  -  (Gain) / loss on the sale of non-core assets  -  -  ($0.03)  -  $0.01  -  Asbestos charge for forecast period change  -  -  -  -  -  $0.13  Foreign currency and copper hedging valuation adjustments  -  -  -  -  -  $0.05  Impairment for auction rate security liquidation  -  -  -  -  -  $0.10  Inventory revaluation  -  -  -  -  -  ($0.09)  Other special charges, net  -  -  -  -  -  $0.06  Total Discrete Items   $0.07   $0.49   $0.16   -   $0.67   ($2.06)  Earnings per diluted share, adjusted for Discrete Items   $1.20   $0.78   $2.76   $7.05   $3.32   $1.91  Acquisition intangible amortization  $0.13  $0.10  $0.25  $0.85  $0.40  $0.19  Adjusted earnings per diluted share   $1.33   $0.88   $3.01   $7.90   $3.72   $2.10  Adjusted EPS reconciliations