Slide 1: Owens Corning: Focused on Shareholder Value
Exhibit 99.1 Owens Corning Focused on Shareholder Value Zelman Housing Summit September 23, 2016 Boston, MA Mike Thaman Eric Andres Chief Executive Officer Leader Investor Relations
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation consists of this slide deck and the associated remarks and comments, all of which are integrally related and are intended to be presented and understood together. This presentation contains forward-looking statements within the meani
Slide 3: Investment Highlights
Investment Highlights Composites Roofing Insulation Market-leading business Strong market Progress supports with improving economic position in attractive confidence in return to conditions and higher industry historical profitability utilization rates Three Market-Leading Businesses 3
Slide 4: Q2 2016 Highlights and Outlook
Q2 2016 Highlights and Outlook Maintained a high level of safety performance in Q2 2016 Delivered adjusted EBIT of $253 million th Insulation achieved 20 consecutive quarter of EBIT growth Composites delivered record EBIT with 14% EBIT margins Roofing grew EBIT by $79 million; delivered 25% EBIT mar
Slide 5: Strong Portfolio
Strong Portfolio '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Insulation Roofing Composites Margin >= 10% 0%<= Margin < 10% Margin < 0% Sources: Owens Corning’s SEC filings since 2006. For comparability purposes, prior years have been provided based on Owen
Slide 6: Insulation Business
Insulation Business Q2 2016 Highlights $ (in millions) Q2 2016 Q2 2015 1H 2016 1H 2015 th Delivered 20 consecutive quarter of EBIT growth Net sales* $414 $451 $799 $830 Grew EBIT by $7 million, primarily on improved customer mix and deflation EBIT $32 $25 $45 $32 EBIT as % of 8% 6% 6% 4% sales D&A $
Slide 7: Owens Corning Insulation: Return to Historical Profitability Levels
Owens Corning Insulation Return to Historical Profitability Levels 30% EBIT Margin Avg EBIT Margin '85-'08 (15%) 20% 10% 0% -10% '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 Historically Delivered 15% EBIT Margins at 1.5 Million Housing Starts; Expect to Average 50% Operating Leve
Slide 8: U.S. and Canada Fiberglass Industry
U.S. and Canada Fiberglass Industry Light Density Network Capacity 2005 2015 Capacity Utilization: 100% 73% 85% 90% ( 0.3) ( 0.6) ( 0.2) 4.6 4.3 3.7 3.5 2005 Total Retired 2015 Total Mothballed Operating Cold Lines Operating Lines Capacity Capacity Plants Capacity Capacity 2.1MM 1.1 MM U.S. Housing
Slide 9: U.S. and Canada Fiberglass Industry
U.S. and Canada Fiberglass Industry Light Density Capacity and Demand Sustained Early Stage Decline Trough Performance Recovery Improvement 1000 100% 500 90% 0 80% -500 70% -1000 60% -1500 50% 2006 – 2008 2009 – 2011 2012 – 2015 2016E – 2018E in Demand in Operating Capacity Price Index Pricing has S
Slide 10: Owens Corning Insulation Profitability
Owens Corning Insulation Profitability EBIT MM$ & Margins 400 26% 300 200 17% 14% 100 4% 2% 0 -100 -23% -200 Peak Trough Current (2006) (2009) (2015) U.S. & Canada Residential Fiberglass Building Insulation Engineered Insulation & Other Regions Residential Fiberglass Still Vastly Under Historical Ea
Slide 11: Roofing Business
Roofing Business Q2 2016 Highlights $ (in millions) Q2 Q2 1H 2016 1H 2015 2016 2015 Grew EBIT by $79 million for the quarter Net sales* $679 $503 $1,108 $896 Delivered 25% EBIT margins on higher volume and lower asphalt costs EBIT $169 $90 $242 $110 EBIT as % of 25% 18% 22% 12% sales D&A $11 $10 $21
Slide 12: U.S. Asphalt Shingle Market
U.S. Asphalt Shingle Market New Construction Age Related/Economic Other Weather Events Major Storms MM Sq. 18 8 7 8 3 2 3 21 22 28 3 27 19 30 35 17 11 34 6 4 32 25 6 6 23 21 24 95 28 31 34 30 23 86 87 81 77 71 75 75 73 65 71 58 60 63 61 59 32 34 37 39 35 30 31 26 17 11 11 11 14 17 18 19 '00 '01 '02
Slide 13: Strong Market Position in Attractive Industry
Strong Market Position in Attractive Industry Track record of strong financial performance – Delivered average operating margins of 18% since 2008 New construction and replacement markets are growing, after period of extension of replacement cycle – Housing activity forecasts support demand growth –
Slide 14: InterWrap Acquisition
InterWrap Acquisition Strengthens Position of Roofing Components Business Acquired leading manufacturer of synthetic roofing underlayment and st packaging materials for $450 million on April 21 , 2016 Value contributors: – InterWrap’s established track record of double-digit revenue growth – Benefit
Slide 15: Composites Business
Composites Business Q2 2016 Highlights $ (in millions) Q2 Q2 1H 2016 1H 2015 2016 2015 Delivered $74 million EBIT and 14% EBIT margins Net sales* $517 $497 $990 $971 Continued price and volume momentum Anticipate continued growth in the glass fiber EBIT $74 $67 $138 $127 market driven by moderate gl
Slide 16: Glass Fiber: A $7.5 Billion Global Market
Glass Fiber A $7.5 Billion Global Market Building & Transportation Consumer Industrial Power & Markets Construction Energy Size Glass fiber market defined as glass fiber reinforcements and direct conversion products as consumed, excluding yarns. 16 Source: Fiber Economics Bureau, GlassFibreEurope (A
Slide 17: Owens Corning Composites: Positioned to Win
Owens Corning Composites Positioned to Win #1 Position Emerging Position Europe China 28% 27% 23% 12% % Market % OC % Market % OC Revenue Revenue Revenue Revenue #1 Position Americas #1 Position 47% OC glass fiber manufacturing site 33% OC downstream fabrication site Rest of World 17% 13% % Market %
Slide 18: Glass Fiber Industry
Glass Fiber Industry Estimated Capacity China Emergence Tightening Capacity Supply Tension Capacity Overbuild Price Inflection Improved Returns '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16E '17E '18E 100% 1.7 1.7 90% 90% Threshold 80% Change in global demand (MM T) 0.8 Change in global 70% 0.6 0.
Slide 19: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Drive shareholder returns by enabling organic and inorganic growth and supporting the balance sheet – Maintain investment grade Capital allocation strategy – Investing in attractive organic growth – Pursuing value-creating acquisitions – Returning excess cash
Slide 20: Appendix A: Non-GAAP Reconciliations
Appendix A Non-GAAP Reconciliations
Slide 21: Appendix A: Non-GAAP Reconciliations
Appendix A Non-GAAP Reconciliations
Slide 22: Appendix A: Non-GAAP Reconciliations
Appendix A Non-GAAP Reconciliations