Owens Corning Inc · NYSE:OC
Owens Corning — CIBC World Markets Annual Industrial Conference 2007
29 slides from Owens Corning's conference presentation, Oct 2, 2007
Slide 1: CIBC World Markets Annual Industrial Conference
CIBC World Markets nd Annual Industrial Conference Mike Thaman, Chairman & CEO-Elect October 2, 2007 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: Owens Corning At A Glance
Owens Corning At A Glance • Founded in 1938, an industry leader in glass fiber insulation, roofing and asphalt, and glass fiber composite solutions • 2006 sales: $6.5 billion • 16,000 employees in 26 countries • Market capitalization: $3.3 billion • Diluted shares outstanding: 131.1 million • Senior
Slide 4: Market Leadership & Strong Brand Equity
Market Leadership & Strong Brand Equity Leading North American Market Positions • Residential Insulation • Commercial & Industrial Insulation • Manufactured Stone Veneer • Residential Shingles • Roofing Asphalts Global Leader • Glass Fiber Reinforcement Materials for Composites
Slide 5: Business Segment Overview
Business Segment Overview (1) Percentages by segment based on revenue of $2.943 B before corporate eliminations (2) Percentages based on segment results before Chapter 11-related reorganization items, restructuring credits, OCV Reinforcements transaction costs, gains (losses) related to exit of Home
Slide 6: Rebalancing of End-Use Markets
U.S. & Canada Residential Repair & Remodeling 32% U.S. & Canada New Residential Construction 37% International 13% U.S. & Canada Commercial & Industrial 18% U.S. & Canada Residential Repair & Remodeling 26% U.S. & Canada New Residential Construction 29% International 23% U.S. & Canada Commercial & I
Slide 7: Insulating Systems Business
Insulating Systems Business
Slide 8: How Our Products are Used in the Home
How Our Products are Used in the Home Insulation in existing homes saves 48% of the energy that otherwise would have been consumed Attic/Flat Ceilings Cathedral Ceilings Interior/ Exterior Walls Ductwork Rigid Foam Insulated Concrete Forms Under Floor Water Resistant Membrane Foam Sheathing House Wr
Slide 9: How Our Products are Used Commercially
How Our Products are Used Commercially Insulation in existing commercial buildings saves at least 30% of the total U.S. commercial energy consumption Insulation for Noise Control And Thermal Protection in Interior & Exterior Walls Owens Corning Duct Solutions Pipe Insulation Metal Building Insulatio
Slide 10: 2006 Insulating Systems
2006 Insulating Systems 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% Owens Corning has leading share of the North American fiberglass insulation market Source: Management Estimate
Slide 11: Insulating Systems Financial Overview
Insulating Systems Financial Overview Sales EBIT Margin as % of Sales 1,000 1,500 2,000 $2,500 LTM- 6/30/07 0% 5% 10% 15% 20% 25%
Slide 12: Strategies for Success
Strategies for Success • Leading through the cycle • Grow the North American market • Global expansion
Slide 13: Composite Solutions Business
Composite Solutions Business
Slide 14: Diverse Industry Markets
Diverse Industry Markets Key drivers in major markets: • Low cost, lightweight transportation • High strength and durable infrastructure • Affordable and renewable energy • Smaller, more functional electronics • Aesthetically pleasing, low-maintenance housing Source: Owens Corning 2005 Global Market
Slide 15: Composite Solutions
Composite Solutions Estimated Revenue by End Market, after Portfolio Rebalancing 1,250 1,300 1,350 1,400 1,450 1,500 1,550 1,600 1,650 LTM- 6/30/07 0% 4% 8% 12% Financial Performance ($MM)* Sales EBIT Margin as % of Sales *Excludes gains from the sale of metal ($37 million LTM, $45 million in 2006,
Slide 16: Delivering Solutions | Transforming Markets | Enhancing Lives
DELIVERING SOLUTIONS | TRANSFORMING MARKETS | ENHANCING LIVES
Slide 17: Roofing and Asphalt – Our Products
Roofing and Asphalt – Our Products • Shingle coating • Commercial roofing • Waterproofing • Industrial and specialty applications • Hip & ridge shingles • Ventilation products • WeatherLock ® underlayment • Starter strip shingles • Strips • Laminates • Heavyweight laminates
Slide 18: Our Markets
Our Markets 2006 R&A Revenue by End Market U.S. & Canada Commercial & Industrial 11% U.S. & Canada New Residential Construction 25% U.S. & Canada Residential Repair & Remodeling 64% Source: Management Estimates
Slide 19: Roofing & Asphalt Financial Overview
Roofing & Asphalt Financial Overview Financial performance ($MM) Sales EBIT Margin as % of Sales 1,000 1,500 2,000 LTM - 6/30/07 0% 2% 4% 6% 8% 10%
Slide 20: A market-leading business
A market-leading business Strategic Priorities • Growth through innovation – Aesthetics, ease of application, performance • Margin enhancement – Product mix – Productivity • Return on invested capital – Laminate shingles – Accessories
Slide 21: Other Building Materials & Services
Other Building Materials & Services Estimated Revenue by End Market, after Portfolio Rebalancing 1,000 1,200 $1,400 LTM- 6/30/07 0% 2% 4% 6% 8% 10% • Manufactured Stone Veneer • Vinyl Siding, Norandex/Reynolds Distribution (Exited this business Q3 2007 with sale to Saint-Gobain) • Owens Corning Fran
Slide 22: Financial Guidance & Strategies
Financial Guidance & Strategies
Slide 23: Questions & Discussion
Questions & Discussion THE PINK PANTHER™ & © 1964-2007 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The color PINK is a registered trademark of Owens Corning. ©2007 Owens Corning
Slide 24: Delivering Solutions | Transforming Markets | Enhancing Lives
DELIVERING SOLUTIONS | TRANSFORMING MARKETS | ENHANCING LIVES
Slide 25: Balance Sheet Snapshot and Credit Statistics
Balance Sheet Snapshot and Credit Statistics 2.30 2.72 Debt/Adjusted LTM EBITDA 35% 36% Debt/Total Capitalization 1,058 Total Liquidity (2) 5,632 5,895 Total Capitalization 3,686 3,775 Shareholder Equity 1,946 2,120 Total Debt $ 282 $ 135 Cash December 31, (1) June 30, (MM) Owens Corning (1) Decembe
Slide 26: Owens Corning Annual Sales
Owens Corning Annual Sales - Year
Slide 27: Reconciliation of 2006 Adjusted to Reported EBIT
Reconciliation of 2006 Adjusted to Reported EBIT ($MM) 2006 Earnings Before Interest & Taxes (EBIT) $433 Adjustments to remove items impacting comparability Provision for Asbestos Litigation ($13) C-11 Related Reorganization Items $55 Other Items $94 Total Adjustments $136 2006 Adjusted EBIT $569 De
Slide 28: Reconciliation of Q1 2007 Adjusted to Reported EBIT
Reconciliation of Q1 2007 Adjusted to Reported EBIT ($MM) Q1 2007 EBIT $33 Adjustments to remove items impacting comparability Chapter 11 related reorganization items $3 Restructuring credits and other credits ($2) Employee emergence equity program $8 OCV Reinforcements joint venture transaction cos
Slide 29: Reconciliation of Q2 2007 Adjusted to Reported EBIT
Reconciliation of Q2 2007 Adjusted to Reported EBIT ($MM) Q2 2007 EBIT $78 Adjustments to remove items impacting comparability OCV Reinforcements transaction costs $7 Losses (Gains) related to the exit of our HOMExperts service line ($1) Losses related to strategic reviews $12 Employee emergence equ
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