Owens Corning Inc · NYSE:OC
Owens Corning — Q1 2018 Earnings Presentation
15 slides from Owens Corning's earnings presentation, Apr 25, 2018
Slide 1: First-Quarter 2018 Results
Company Grew Net Sales by 14% to $1.7 Billion; Realized and Announced Price Actions Expected to Overcome.inilation in 2018 First-Quarter 2018 Results April 25, 2018 Mike Thaman Chairman & Chief Executive Officer Michael C.| McMurray Chief Financial Officer
Slide 2: Forward-looking statements and non-GAAP measures
Forward-looking statements and non-GAAP\measures This presentation and the associated remarks contain forward-looking statements. We caution you against relying on these statements as they involve risks and uncertainties that are difficult to predict and the Company's actual results may differ mater
Slide 3: First-Quarter Review
First-Quarter Review Mike Thaman Financial Results Michael McMurray Questions and Discussion All Closing Remarks Mike Thaman
Slide 4: Highlights and outlook
Highlights and outlook ¢ Improved safety performance with recordable incident rate down 6% year over year * Revenue growth: 14%; adjusted EBIT: $152mm * Composites: delivered $51 1mm of revenue; $60mm of EBIT * Roofing: grew revenue by $15mm; delivered $97mm of EBIT * Insulation: grew revenue by $19
Slide 5: Key financial data
Key financial data ($ in millions, except per share data) Q1 2018 | gi207 Net sales $1,691 $1,478 Net earnings attributable to Owens Corning $92 $101 Died cannas pu sue ErS)aieusbete $9288 Earnings before interest and taxes (EBIT) $131 $170 sage oe eB) taxes, depreciation and $240 $254 Adjusted EBIT
Slide 6: Adjusted EBIT reconciliation
Adjusted EBIT reconciliation Acquisition Restructuring related Q1 2018 EBIT Q1 2018 Adj. EBIT SS = Numbers in millions °
Slide 7: Adjusted EBIT reconciliation
Adjusted EBIT reconciliation 20 ~@OO0.. Insulation Composites Roofing Corporate Q1 2017 Adj. EBIT Q1 2018 Adj. EBIT SS = Numbers in millions ’
Slide 8: Insulation
Insulation Current year financial performance business ($ in millions) Q1 2018 Q1 2017 Net sales $596 $399 EBIT $32 $5 EBIT as % of sales 5% 1% D&A $45 $26 Acceleration of price Five-year financial performance improvement in U.S. $2,500 10% residential $2,000 —A——n i Lat $1,500 — — 6% $1,000 — — A%
Slide 9: Composites
Composites business Generated EBIT of $60mm Anticipate EBIT growth of about $20mm in Current year financial performance ($ in millions) Q1 2018 Q1 2017 Net sales $511 $511 EBIT $60 $71 EBIT as % of sales 12% 14% D&A $37 $36 Five-year financial performance $2,500 $2,000 $1,500 — $1,000 — $500 — $o 20
Slide 10: Roofing
Roofing Current year financial performance business ($ in millions) Q1 2018 Q1 2017 Net sales $642 $627 EBIT $97 $125 EBIT as % of sales 15% 20% D&A $12 $12 15% EBIT margins as Five-year financial performance inflation outpaced $3,000 25% pricing $2,400 — 20% $1,800 — 15% $1,200 — — 10% Expect to $6
Slide 11: Significant financial matters and 2018 outlook
Significant financial matters and 2018 outlook * Repurchased 1.0mm shares in Q1; 6.5mm shares available for repurchase * Consensus U.S. housing starts and global industrial production growth * Composites — EBIT growth of about $20mm — Benefit of market growth and improved pricing partly offset by ac
Slide 12: Other 2018 outlook
Other 2018 outlook * Conversion of adjusted net income into free cash flow at about 100% ¢ Full-year corporate guidance will be provided next quarter * Corporate expense: $140mm to $150mm * Capital additions: approximately $500mm * Depreciation and amortization: approximately $450mm * Interest expen
Slide 13: Questions and Discussion
Slide 14: Appendix A
Appendix A Non-GAAP reconciliations —‘table 1 Net debt (a non-GAAP financial measure) is defined by the Company as total borrowings, less cash and cash equivalents and less the impact of derivatives used to hedge the borrowings. The reconciliation from total debt to net debt is shown in the table be
Slide 15: Appendix A
Appendix A Non-GAAP reconciliations —‘table 2 The reconciliations of EBITDA and adjusted EBITDA are shown in the table below (in millions): Three Months Ended March 31, 201 2017 EBIT (a) s 1315 170 Depreciation and amortization 109 4 EBITDA 240 254 Adjusting expense (income) items to EBIT (a) 21 1 A