Slide 1: Owens Corning Q2 2024 Investor Presentation
OWENS CORNING Q2 2024 INVESTOR PRESENTATION This presentation shared at the following events: 06/14/24 IR Roadshow Hosted by Loop Capital – Chicago Todd Fister, Chief Financial Officer 06/10/24 IR Roadshow Hosted by Truist – New York City Brian Chambers, Chair & Chief Executive Officer 05/29/24 IR R
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 are subject to risks, uncertainties and other factors and actual results may differ materially from any results
Slide 3: A Global Building and Construction Materials Leader
A GLOBAL BUILDING AND CONSTRUCTION MATERIALS LEADER OWENS CORNING + MASONITE 2023 FINANCIAL PERFORMANCE1 ~$12.5b $2.9b 23% Roofing Insulation Doors Composites Adjusted EBITDA Revenue on a synergized Adjusted EBITDA basis margin on a synergized basis BY SEGMENT1 BY END MARKET2 BY GEOGRAPHY1 Residenti
Slide 4: Executing Our Enterprise Strategy for Growth
EXECUTING OUR ENTERPRISE STRATEGY FOR GROWTH ENTERPRISE STRATEGY “THE OC ADVANTAGE” KEY SECULAR TRENDS Strengthen position in core 1 products and markets High Premium on Performing living space Teams Expand into new product 2 Sustainability Product & adjacencies that leverage our Focus Process Innov
Slide 5: Strategic Choices to Enhance Long-Term Performance
STRATEGIC CHOICES TO ENHANCE LONG-TERM PERFORMANCE Q4 2021 WEARDECK NATURAL FIBERTEQ JV MAJOR ORGANIC MASONITE INVESTOR DAY ACQUISITION POLYMERS ACQUISITION GROWTH ACQUISITION Owens Corning Continues pivot of ACQUISITION Expands capacity of INVESTMENTS Leadership establishes strategy Composites busi
Slide 6: A Leader in Branded Residential Building Materials
A LEADER IN BRANDED RESIDENTIAL BUILDING MATERIALS HIGHLY VALUED PRODUCTS AND BRANDS STRONG CHANNEL REACH Builders Contractors Distributors Home Centers Homeowners 6
Slide 7: Operating Model Delivering Improved Financial Performance
OPERATING MODEL DELIVERING IMPROVED FINANCIAL PERFORMANCE LEGACY OWENS CORNING FINANCIAL PERFORMANCE REVENUE ($b) ADJUSTED EBIT MARGIN (%) Growing revenues through core products and expanding Delivering higher, more resilient earnings by making addressable markets strategic choices and operational i
Slide 8: Balanced Capital Allocation Strategy Creates Shareholder Value
BALANCED CAPITAL ALLOCATION STRATEGY CREATES SHAREHOLDER VALUE 2020-2023: RETURNED ~$2.8B OF CASH, INCREASED DIVIDEND >2X, AND REPURCHASED >20% SHARES OUTSTANDING CAPITAL ALLOCATION STRATEGY FREE CASH FLOW ALLOCATION Maintain investment grade balance sheet with flexibility to support growth and driv
Slide 9: Sustainability Is Core to Who We Are and What We Do
SUSTAINABILITY IS CORE TO WHO WE ARE AND WHAT WE DO 2030 GUIDING ASPIRATION THE POSITIVE IMPACT OF OUR PRODUCTS Roofing products and systems help protect Increase the Halve the and preserve homes and commercial positive impact negative impact buildings while enhancing curb appeal. of our products of
Slide 10: Creating Differentiated Value Through Innovation
CREATING DIFFERENTIATED VALUE THROUGH INNOVATION >140 New or improved products Duration® SureNail® FOAMULAR® OCTM Lumber launched over the past 3 years1 Technology Project Panels Structural Framing • Track record of material innovation and conversion • Increasing investments in R&D • Accelerating in
Slide 11: Receiving Significant Recognition for Our Leadership
RECEIVING SIGNIFICANT RECOGNITION FOR OUR LEADERSHIP Earned placement on DJSI-World Ranked among the top 10 Best Earned a spot in the S&P Global Current ISS scores: for the 14th year in a row, and on Corporate Citizens for six Sustainability Yearbook ▪ Environmental: 1 the DJSI North America Index f
Slide 12: Roofing Segment Overview
ROOFING SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) EBIT margin (%) Durable pull-through model with industry leading $4.5 35% Thousands 30% contractor network of over 23,000 members $3.0 25% 20% $3.7 $4.0 $4.1 15% Roofing components are accelerating growth $1.5 $2.7 $3.2 10% with margins sim
Slide 13: Roofing Demand Driven by Repair and Remodel
ROOFING DEMAND DRIVEN BY REPAIR AND REMODEL Repair and remodeling (R & R) U.S. ASPHALT SHINGLE MARKET in mm of squares • Aging housing stock • Economic factors: existing 159 157 home sales, home equity, 151 11 148 consumer income 139 18 13 30 12 30 25 28 Major storms & weather events 26 25 • ~40mm s
Slide 14: Insulation Segment Overview
INSULATION SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) EBIT margin (%) Attractive and diverse global businesses with $4.0 20% Thousands market-leading positions $3.0 15% $2.0 $3.7 10% $3.7 $3.7 Ability to grow above the construction market $3.2 $2.6 $1.0 5% through demand for more energy eff
Slide 15: Technical and Global Insulation 2023 Revenues by End Market
TECHNICAL AND GLOBAL INSULATION 2023 REVENUES BY END MARKET 1 Commercial Industrial and other 2 3 Residential 4 1 Manufacturing and warehouse 2 Education, healthcare, and government 3 Office and retail 4 All other Note: Technical and Global building insulation includes pipe and flexible duct media i
Slide 16: Doors Segment Overview
DOORS SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) Adj. EBITDA margin (%) A leading designer and manufacturer of residential $3.2 20% interior and exterior doors and door systems $2.4 15% $1.6 10% $2.6 $2.9 $2.8 Expanding product offering into complementary $2.2 $2.3 $0.8 5% adjacencies and c
Slide 17: A Leader in Residential Doors and Door Systems
A LEADER IN RESIDENTIAL DOORS AND DOOR SYSTEMS OPPORTUNITY FOR GROWTH WITH R&R RECOVERY CAPTURING MORE VALUE PER DOOR Engineered door frames Residential Repair & Remodel Rails Non-Residential Stiles Construction Locking systems Smart Doors Wood, fiberglass and steel door facings Glass units Solid co
Slide 18: Composites Segment Overview
COMPOSITES SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) EBIT margin (%) Pivoting to higher-value applications focused $3.2 20% Thousands on building and construction $2.4 15% $1.6 10% $2.7 Vertical integration within Composites and into $2.0 $2.3 $2.3 $2.2 $0.8 5% Roofing shingles $0.0 0% 202
Slide 19: A Leading Nonwovens Business Serves Building & Construction Market
A LEADING NONWOVENS BUSINESS SERVES BUILDING & CONSTRUCTION MARKET Residential Roofing Sheathing & Walls We are a global market leader in Asphalt Shingles Gypsum1 & insulation boards nonwovens, investing in capacity expansion Highly specified and customized products deliver customer value Unique man
Slide 20: Glass Reinforcements Business Under Strategic Review
GLASS REINFORCEMENTS BUSINESS UNDER STRATEGIC REVIEW Owens Corning initiating a strategic review process for glass reinforcement business Operates within Composites segment and is one of the largest providers of glass reinforcements for wind energy, infrastructure, industrial, transportation, and ot
Slide 21: Appendix A: Masonite Acquisition
APPENDIX A: MASONITE ACQUISITION 21
Slide 22: Strengthening Position in Building and Construction
STRENGTHENING POSITION IN BUILDING AND CONSTRUCTION TRANSACTION DETAILS STRATEGIC RATIONALE Owens Corning acquired Masonite for $133.00 Expands Owens Corning’s leadership per share or ~$4b in cash 1 position in branded residential building products Implies ~8.6x 2023E adjusted EBITDA1, or ~6.8x incl
Slide 23: Appendix B: Additional Financial Information
APPENDIX B: ADDITIONAL FINANCIAL INFORMATION 23
Slide 24: B: Key Financial Data – Businesses
APPENDIX B: KEY FINANCIAL DATA – BUSINESSES Owens Corning* Roofing Insulation Composites ($ in millions) Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Net sales 2,300 2,331 957 895 904 919 523 585 EBIT* 438 361 286 209 161 156 46 49 EBIT* as % of net sales 19% 15% 30% 23% 18% 17% 9
Slide 25: B: Key Financial Data – Disaggregated Revenue
APPENDIX B: KEY FINANCIAL DATA – DISAGGREGATED REVENUE Three Months Ended March 31, 2024 ($ in millions) Disaggregation Categories Roofing Insulation Composites Eliminations Consolidated U.S. residential $ 923 $ 379 $ 117 $ (80) $ 1,339 U.S. commercial and industrial 20 202 168 (3) 387 Total United
Slide 26: Appendix C: Non-GAAP Reconciliations
APPENDIX C: NON-GAAP RECONCILIATIONS
Slide 27: C: Non-GAAP Reconciliation – Table 1
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 1 27
Slide 28: C: Non-GAAP Reconciliation – Table 2
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 2 28
Slide 29: C: Non-GAAP Reconciliation – Table 3
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 3 29
Slide 30: C: Non-GAAP Reconciliation – Table 4
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 4 30
Slide 31: C: Non-GAAP Reconciliation – Table 5
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 5 31
Slide 32: C: Non-GAAP Reconciliation – Table 6
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 6 32
Slide 33: C: Non-GAAP Reconciliation – Table 7
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 7 33
Slide 34: C: Non-GAAP Reconciliation – Table 8
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 8 34
Slide 35: C: Non-GAAP Reconciliation – Table 9
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 9 35
Slide 36: C: Non-GAAP Reconciliation – Table 10
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 10 36
Slide 37: C: Non-GAAP Reconciliation – Table 11
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 11 37
Slide 38: C: Non-GAAP Reconciliation – Table 12
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 12 38