Owens Corning Inc · NYSE:OC
Owens Corning — Investor Presentation (October 2006)
21 slides from Owens Corning's investor presentation, Oct 30, 2006
Slide 1: Owens Corning Investor Presentation
Owens Corning Investor Presentation Week of October 30, 2006 Exhibit 99.1
Slide 2: Forward-looking Statement and Non-GAAP Measures
Forward-looking Statement and Non-GAAP Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to risks
Slide 3: Management Presenters
David Brown President and Chief Executive Officer Michael Thaman Chairman of the Board and Chief Financial Officer Scott Deitz Vice President, Investor Relations Management Presenters • President & CEO since 2002 • Joined Owens Corning in 1978 • Chairman of the Board since 2002 • Chief Financial Off
Slide 4: Owens Corning Today
2006 Fortune Magazine Most Admired Company in the building materials category; 50 + consecutive years on the Fortune 500 Owens Corning Today • 2005 sales of $6.3 billion, 20,000 employees in 26 countries • Leader in building materials systems and high- performance glass composites • Best known for P
Slide 5: Our purpose, values and commitment to safety
TNnCVTONS FoR TAG OUR PURPOSE OUR STANDS OUR YALUES OUR FOUNDATION OWENS CORNING’s BRIGHT FUTURE Our Commitment “SAFETY:: Unconditional INTEGRITY | RESPECT | ACCOUNTABILITY | FUN | SHARING | CANDOR | INNOVATION
Slide 6: Market Leadership & Our Strong Brand Equity
Market Leadership & Our Strong Brand Equity Leading North America Market Positions • Residential Insulation • Commercial & Industrial Insulation • Manufactured Stone Veneer • Residential Shingles • Roofing Asphalts Worldwide Leader • Glass Fiber Reinforcement Materials used for Composites
Slide 7: Balanced Portfolio of Varied End Markets
Balanced Portfolio of Varied End Markets Revenue by End Market 2005 Revenue: $6.3 billion (1) (1) Percentages by end market based on revenue of $6.5B before corporate eliminations U.S. & Canada New Residential Construction 36.0 % U.S. & Canada Residential Repair & Remodeling 34.0 % U.S. & Canada Com
Slide 8: Business Segment Overview
Business Segment Overview (1) Percentages by segment based on revenue of $6.5B before corporate eliminations (2) Percentages by segment based on EBITDA of $910MM before general corporate expense and adjustments; See Appendix: Reconciliation of 2005 Adjusted to Reported IFO 2005 EBITDA: $775 million
Slide 9: Insulating Systems
Insulating Systems 2005 Revenue by End Market U.S. & Canada New Residential Construction 60% U.S. & Canada Repair & Remodeling 13% U.S. & Canada Commercial & Industrial 19% International 8% Financial performance ($MM) 1,000 1,500 2,000 $2,500 LTM 9/30/06 0% 5% 10% 15% 20% 25% LTM refers to last 12 m
Slide 10: Roofing & Asphalt
Roofing & Asphalt 2005 Revenue by End Market U.S. & Canada Commercial & Industrial 12% U.S. & Canada New Residential Construction 21% U.S. & Canada Residential Repair & Remodeling 67% 1,000 1,500 2,000 $2,500 LTM 9/30/06 0% 2% 4% 6% 8% 10% Financial performance ($MM) LTM refers to last 12 months Sal
Slide 11: Other Building Materials & Services
Other Building Materials & Services 2005 Revenue by End Market U.S. & Canada New Residential Construction 55% U.S. & Canada Residential Repair & Remodeling 42% U.S. & Canada Commercial & Industrial 3% 1,000 1,200 $1,400 LTM 9/30/06 0% 2% 4% 6% 8% 10% • Cultured Stone ® • Vinyl Siding • Norandex/Reyn
Slide 12: Composite Solutions
Composite Solutions 2005 Revenue by End Market U.S. & Canada Commercial & Industrial 40% U.S. & Canada Residential Repair & Remodeling 14% U.S. & Canada New Residential Construction 5% International 41% 1,000 1,200 1,400 1,600 $1,800 LTM 9/30/06 0% 4% 8% 12% Financial performance ($MM) LTM refers to
Slide 13: Composite Solutions Strategy: Proposed Joint Venture with Saint-Gobain
Composite Solutions Strategy Proposed Joint Venture with Saint-Gobain Strategic Initiatives: Composite Solutions • Align commercial position with regional strengths • Reposition existing assets for sustainable returns • Establish low-cost country supply • Grow through innovation and specialty produc
Slide 14: Safety Performance and Management Team with a Proven Record
0.0 1.0 2.0 3.0 4.0 5.0 6.0 2006E Recordable Incident Rate Safety Performance Year Targeted Results 3-Year EBIT Projection vs. Actual Performance Source of Projection: Plan of Reorganization filing, August 8, 2003 Projected EBIT EBIT Management Team with a Proven Record On average, senior management
Slide 15: Innovations for Living
INNOVATIONS FOR LIVING™ DELIVERING SOLUTIONS | TRANSFORMING MARKETS | ENHANCING LIVES
Slide 16: Highlights: Third-Quarter 2006
Highlights: Third-Quarter 2006 • Record consolidated net sales of $1.661 billion, up 2.7% compared with Q3 2005 • Third-quarter reported IFO of $159 million, up 14.4% compared with Q3 • Gross margin as % of consolidated net sales down 1.1% in Q3 2006, compared with Q3 2005 • SG&A 8.5% of consolidate
Slide 17: Business Segment Results: Q3 2006
Business Segment Results: Q3 2006 Q3 2006 Net Sales Q306 Q305 % Change Insulating Business Systems $529 $502 5.4% Roofing and Asphalt $458 $453 1.1% Other Building Materials and Services $328 $341 -3.8% Composite Solutions $393 $371 5.9% Q3 2006 Adjusted Income from Operations See Appendix: Items Af
Slide 18: Outlook
Outlook • Slowing housing starts from record highs and increases in housing inventory beginning to weaken demand for some of our building materials products • Decline could impact capacity utilization and selling prices for certain products in Q4 2006 • Energy Policy Act of 2005 and marketing progra
Slide 19: Innovations for Living
INNOVATIONS FoR UMNG™ > = =
Slide 20: Innovations for Living
INNOVATIONS FOR LIVING™ DELIVERING SOLUTIONS | TRANSFORMING MARKETS | ENHANCING LIVES
Slide 21: Reconciliation of 2005 Adjusted to Reported IFO
Reconciliation of 2005 Adjusted to Reported IFO ($MM) 2005 Loss from Operations (10-K) ($3,743) Provision for Asbestos Litigation $4,267 C-11 Related Reorganization Items $45 Other Credits * ($25) Sub Total - Adjustments $4,287 2005 Adjusted Income from Operations $544 2005 Depreciation and Amortiza