Slide 1: Third-Quarter 2023 Results
THIRD-QUARTER 2023 RESULTS Brian Chambers | Chair & Chief Executive Officer Todd Fister | Chief Financial Officer October 25, 2023 | Q3 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: Agenda
AGENDA Company highlights Brian Chambers Financial results Todd Fister Business outlook Brian Chambers Questions and discussion All Owens Corning Delivers Net Sales of $2.5 Billion; Generates Net Earnings of $337 Million and Adjusted EBIT of $518 Million 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS Half of global locations operating ($ in millions) Q3 2023 Q3 2022 YTD 2023 YTD 2022 injury-free for a year or more Net sales 2,479 2,529 7,373 7,476 Adjusted EBIT 518 487 1,413 1,429 Adjusted EBIT as % of net sales 21% 19% 19% 19% Delivered revenue similar to prior year Adj
Slide 5: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data) Q3 2023 Q3 2022 YTD 2023 YTD 2022 Net sales 2,479 2,529 7,373 7,476 Net sales growth (2%) 14% (1%) 17% Adjusted EBIT 518 487 1,413 1,429 Adjusted EBIT as % of net sales 21% 19% 19% 19% Adjusted EBITDA 644 608 1,795 1,807 Adjusted EBITDA as % o
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $41 $14 Restructuring Paroc marine costs recall $518 $463 Q3 2023 Adj. EBIT Q3 2023 EBIT Numbers in millions. From left to right, red denotes decrease. 6
Slide 7: Capital Deployment
CAPITAL DEPLOYMENT • Third-Quarter 2023 • Generated $581mm of free cash flow • Capital additions of $110mm, or 4% of revenue • Return on capital was 20% for the last twelve months • Maintained ample liquidity of approximately $2.4b, consisting of $1.3b of cash and nearly $1.1b of combined availabili
Slide 8: Roofing Business
ROOFING BUSINESS ($ in millions) Q3 2023 Q3 2022 YTD 2023 YTD 2022 Net sales 1,084 1,003 3,102 2,859 EBIT 343 229 890 663 Delivered third-quarter revenue of EBIT as % of net sales 32% 23% 29% 23% $1,084mm, up 8% from prior year EBITDA 359 244 938 709 EBITDA as % of net sales 33% 24% 30% 25% Produced
Slide 9: Insulation Business
INSULATION BUSINESS ($ in millions) Q3 2023 Q3 2022 YTD 2023 YTD 2022 Net sales 913 965 2,737 2,758 EBIT 150 173 469 459 Delivered third-quarter revenue of EBIT as % of net sales 16% 18% 17% 17% $913mm, down 5% from prior year EBITDA 201 225 628 615 EBITDA as % of net sales 22% 23% 23% 22% Generated
Slide 10: Composites Business
COMPOSITES BUSINESS ($ in millions) Q3 2023 Q3 2022 YTD 2023 YTD 2022 Net sales 567 638 1,772 2,071 EBIT 80 126 216 434 Delivered third-quarter revenue of EBIT as % of net sales 14% 20% 12% 21% $567mm, down 11% from prior year EBITDA 123 166 346 565 EBITDA as % of net sales 22% 26% 20% 27% Reported
Slide 11: Full-Year 2023 Key Financial Outlook
FULL-YEAR 2023 KEY FINANCIAL OUTLOOK • General corporate expenses are estimated to be at high end of range from $215mm to $225mm • Interest expense estimated to be between $70mm and $80mm • Full-year effective and cash tax rates of 24% to 26% on adjusted pre-tax earnings, cash tax rate previously 26
Slide 12: Q4 2023 Business Outlook
Q4 2023 BUSINESS OUTLOOK ENTERPRISE • Higher interest rates and ongoing geopolitical tensions result in slower global economic growth • Anticipate most building and construction end markets in the U.S. and Europe to be relatively stable through Q4 • Overall, net sales slightly below prior year while
Slide 13: Questions and Discussion
QUESTIONS AND DISCUSSION
Slide 14: Appendix A: Non-GAAP Reconciliations – Table 1
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 1 14
Slide 15: Appendix A: Non-GAAP Reconciliations – Table 2
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 2 15
Slide 16: Appendix A: Non-GAAP Reconciliations – Table 3
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 3 16
Slide 17: Appendix A: Non-GAAP Reconciliations – Table 4
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 4 17
Slide 18: Appendix A: Non-GAAP Reconciliations – Table 5
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 5 18
Slide 19: Appendix A: Non-GAAP Reconciliations – Table 6
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 6 19
Slide 20: Appendix A: Non-GAAP Reconciliations – Table 7
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 7 20
Slide 21: Appendix A: Non-GAAP Reconciliations – Table 8
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 8 21
Slide 22: Appendix A: Non-GAAP Reconciliations – Table 9
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 9 22