Owens Corning Inc · NYSE:OC
Owens Corning — Investor Presentation (August 2023)
34 slides from Owens Corning's investor presentation, Aug 31, 2023
Slide 1: Owens Corning Investor Presentation August 2023
OWENS CORNING INVESTOR PRESENTATION AUGUST 2023
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: Owens Corning at a Glance
OWENS CORNING AT A GLANCE OUR MISSION: TO BUILD A SUSTAINABLE FUTURE THROUGH MATERIAL INNOVATION COMPANY OVERVIEW 2022 FINANCIAL HIGHLIGHTS REVENUE BY… $9.8B End market 19,000 Residential Construction 59% Employees Revenue Materials Commercial and Other 100+ 31 $1.8B $2.3B Construction Materials 25%
Slide 4: A Global Building and Construction Materials Leader
A GLOBAL BUILDING AND CONSTRUCTION MATERIALS LEADER… ENTERPRISE STRATEGY “THE OC ADVANTAGE” KEY SECULAR TRENDS 1 STRENGTHEN position in core products & markets Premium on EXPAND into new product LIVING SPACE adjacencies that leverage our 2 material science, market, and manufacturing expertise Demand
Slide 5: With a Compelling Investment Thesis
…WITH A COMPELLING INVESTMENT THESIS PROVEN PROGRESS ON KEY DRIVERS OF SHAREHOLDER VALUE CREATION REVENUE ($B) ADJUSTED EBIT MARGIN 2024 Financial Targets Growing revenues through core capabilities and Sustaining margins at a higher level by making structural cost expanding addressable markets impro
Slide 6: Capital Allocation Strategy Focuses on Increasing TSR
CAPITAL ALLOCATION STRATEGY FOCUSES ON INCREASING TSR Capital allocation strategy Maintain investment grade balance sheet FREE CASH FLOW ALLOCATION with flexibility to support growth and drive shareholder value 100% 75% Maintain safe, sustainable, and productive operations in our existing business 5
Slide 7: Shareholder Return Performance
SHAREHOLDER RETURN PERFORMANCE OWENS CORNING OUTPERFORMING THE MARKET SHAREHOLDER RETURN OVER TIME SHAREHOLDER RETURN YTD Share Price Performance (indexed) 80% 70% OC: +64% 250% 60% 50% 200% 40% 150% 30% DJUSCN: +22% 20% 100% S&P 500: +17% 10% 50% 0% -10% 0% -50% OC Total Return S&P 500 TR Index Dow
Slide 8: Sustainability Is Core to Who We Are and What We Do
SUSTAINABILITY IS CORE TO WHO WE ARE AND WHAT WE DO 20 YEARS OF SUBSTANTIAL GLOBAL PROGRESS NET-POSITIVE ASPIRATION 2030 GUIDING ASPIRATIONS Purpose: Our people and Increase the Halve the negative products make the world positive impact of our PRODUCTS impact of our OPERATIONS a better place. Elimin
Slide 9: Receiving Significant Recognition for ESG Leadership
RECEIVING SIGNIFICANT RECOGNITION FOR ESG LEADERSHIP Earned placement on DJSI- Included in CDP’s Ranked 1st among Earned “Gold Class” Current ISS scores: Obtained a perfect World for the 13th year in a climate change and 100 Best Corporate score in 2022 for the ▪ Environmental: 1 score on Corporate
Slide 10: Accelerating Innovation to Help Customers Win in the Market
ACCELERATING INNOVATION TO HELP CUSTOMERS WIN IN THE MARKET TRACK RECORD OF MATERIAL INNOVATION AND CONVERSION MATERIAL INNOVATION Investing for Growth • Innovative product and process technologies delivering significant value Duration® Flex FOAMULAR® NGX™ Windstrand® Pink Next Gen™ • Accelerated ne
Slide 11: Innovation Creates Differentiated Value
INNOVATION CREATES DIFFERENTIATED VALUE TRANSFORMATIVE MATERIAL SCIENCE AND PROCESS INNOVATION CUSTOMER-CENTERED PRODUCT INNOVATION Margin enhancement and capital-efficient growth opportunities Leveraging customer insights with our technical capabilities Asphalt Coating Technology FOAMULAR® NGX • In
Slide 12: Leveraging the Power of the Enterprise
LEVERAGING THE POWER OF THE ENTERPRISE INTEGRATED BUSINESSES CREATING UNIQUE VALUE FOR OUR CUSTOMERS AND SHAREHOLDERS Integrated Material Solutions Fiber Nonwovens Asphalt Technology Shingles ROOFING COMPOSITES Manufacturing & Technology Expertise Materials Manufacturing Markets Advanced Modeling Fu
Slide 13: Global Businesses in Attractive End Markets
GLOBAL BUSINESSES IN ATTRACTIVE END MARKETS 2022 REVENUE BY END MARKET Owens Corning Insulation Roofing Composites 16% 25% $9.8B 59% $3.7B $3.7B $2.7B Residential Construction Materials Commercial and Other Construction Materials Industrial and Other 2022 REVENUE BY GEOGRAPHY Owens Corning Insulatio
Slide 14: Insulation Business
INSULATION BUSINESS 2022 REVENUE FIVE-YEAR FINANCIAL PERFORMANCE $4,000 20% $3,200 16% Residential Construction $2,400 12% Materials $3.7B $1,600 8% Commercial and Other $800 4% Construction Materials $0 0% Industrial and Other 2019 2020 2021 2022 LTM Net sales in millions EBIT as % of net sales ABO
Slide 15: Increased Earnings Performance in Insulation
INCREASED EARNINGS PERFORMANCE IN INSULATION A BALANCED PORTFOLIO WITH AN INDUSTRY-LEADING MARGIN STRUCTURE NORTH AMERICAN RESIDENTIAL INSULATION TECHNICAL & GLOBAL INSULATION $500 $500 EBITDA (mm) $400 $400 $300 $300 $200 $200 $100 $100 $- $- 2006 2019 2021 2022 2006 (peak) 2019 2021 2022 EBITDA EB
Slide 16: Technical & Global Insulation 2022 Revenues by End Market
TECHNICAL & GLOBAL INSULATION 2022 REVENUES BY END MARKET 2022 TECHNICAL AND GLOBAL RESIDENTIAL INSULATION REVENUE COMMERCIAL Residential Construction Materials INDUSTRIAL & OTHER Commercial and Other Construction Materials Industrial and Other Source: Owens Corning management estimates; estimated e
Slide 17: Roofing Business
ROOFING BUSINESS 2022 REVENUE FIVE-YEAR FINANCIAL PERFORMANCE $4,000 25% $3,200 20% Residential Construction $2,400 15% Materials $3.7B Commercial and Other $1,600 $800 10% 5% Construction Materials $0 0% Industrial and Other 2019 2020 2021 2022 LTM Net sales in millions EBIT as % of net sales INDUS
Slide 18: Roofing Market Driven by Repair & Remodeling
ROOFING MARKET DRIVEN BY REPAIR & REMODELING U.S. asphalt shingle market in mm squares Repair and Remodeling (R & R) New construction R&R Weather events Major storms Aging housing stock Economic factors: existing home sales, 11 home equity, consumer income 18 13 13 12 30 25 28 24 26 Major storms & w
Slide 19: Continuing to Expand Our Multimaterial Roofing System
CONTINUING TO EXPAND OUR MULTIMATERIAL ROOFING SYSTEM THE TOTAL PROTECTION ROOFING SYSTEM® IS A LEADING SELLING STORY FOR OUR CONTRACTORS Total Protection Roofing System® Hip & Ridge Ventilation • Expanding our multimaterial system offering positions Roofing Roof Covering for future growth Underlaym
Slide 20: Composites Business
COMPOSITES BUSINESS 2022 REVENUE FIVE-YEAR FINANCIAL PERFORMANCE $3,000 20% $2,400 16% Residential Construction $1,800 12% Materials $2.7B $1,200 8% Commercial and Other $600 4% Construction Materials $0 0% 2019 2020 2021 2022 LTM Industrial and Other Net sales in millions EBIT as % of net sales PIV
Slide 21: Composites 2022 Revenues by Key End Markets
COMPOSITES 2022 REVENUES BY KEY END MARKETS 2022 REVENUE BUILDING & CONSTRUCTION Key Trends How We Win Unique Solutions • Light-weighting and • Integrated scale • Leveraging Owens prefabrication production Corning Channels OTHER • Sustainable solutions • Coating and surfacing • Power of the OC Brand
Slide 22: Increasing Value Through Integrated Material Solutions
INCREASING VALUE THROUGH INTEGRATED MATERIAL SOLUTIONS Core products Glass Production Window Production Installer Glass Production Nonwoven Production Ceiling Tile Production Installer Glass Production Rebar Production Contractor Integrated material solutions Glass Production Nonwoven Production Shi
Slide 23: Appendix A: M&A Activity
APPENDIX A: M&A ACTIVITY
Slide 24: WearDeck: Premium Producer of Composite Decking
WEARDECK®: PREMIUM PRODUCER OF COMPOSITE DECKING • Expects to deliver ~$60mm in annual sales with significant growth potential • Strengthens Owens Corning’s position in building and construction • Significantly expands total addressable market by more than $7b • Innovative product design uses High-D
Slide 25: Natural Polymers: Innovative Manufacturer of Spray Foam
NATURAL POLYMERS: INNOVATIVE MANUFACTURER OF SPRAY FOAM • Expects to deliver ~$100mm in annual sales with double-digit growth over the next several years • Strengthens Owens Corning’s core building and construction products • Natural Polymers’ products comply with the GREENGUARD certification standa
Slide 26: Additional Financial Information
ADDITIONAL FINANCIAL INFORMATION
Slide 27: Appendix B: Key Financial Data – Businesses
APPENDIX B: KEY FINANCIAL DATA – BUSINESSES Owens Corning* Insulation Roofing Composites ($ in millions) Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Net sales 2,563 2,601 905 934 1,123 1,018 620 719 EBIT* 534 525 163 157 338 258 87 154 EBIT* as % of net sales 21% 20% 18% 17% 30%
Slide 28: Appendix B: Key Financial Data – Disaggregated Revenue
APPENDIX B: KEY FINANCIAL DATA – DISAGGREGATED REVENUE Three Months Ended June 30, 2023 ($ in millions) Disaggregation Categories Composites Insulation Roofing Eliminations Consolidated U.S. residential $ 87 $ 324 $ 1,054 $ (83) $ 1,382 U.S. commercial and industrial 237 223 40 (2) 498 Total United
Slide 29: Appendix C: Non-GAAP Reconciliation – Table 1
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 1 29
Slide 30: Appendix C: Non-GAAP Reconciliation – Table 2
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 2 30
Slide 31: Appendix C: Non-GAAP Reconciliation – Table 3
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 3 31
Slide 32: Appendix C: Non-GAAP Reconciliation – Table 4
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 4 32
Slide 33: Appendix C: Non-GAAP Reconciliation – Table 5
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 5 33
Slide 34: Appendix C: Non-GAAP Reconciliation – Table 6
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 6 34