Owens Corning Inc · NYSE:OC
Owens Corning — Q4 2020 Earnings Presentation
15 slides from Owens Corning's earnings presentation, Feb 17, 2021
Slide 1: Fourth-Quarter and Full-Year 2020 Results
FOURTH-QUARTER AND FULL-YEAR 2020 RESULTS Brian Chambers | Chairman & Chief Executive Officer Ken Parks | Chief Financial Officer February 17, 2021 | Q4 & FY 2020
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 Business updates Brian Chambers Financial results Ken Parks Business outlook Brian Chambers Questions and discussion All Company Delivered Net Sales of $7.1 Billion; Generated Record Operating Cash Flow of $1.1 Billion in 2020 3
Slide 4: Highlights
HIGHLIGHTS • Sustained high level of safety performance • Revenue down 1% over prior year • Delivered record adjusted EBIT of $878mm, up 6% from the same period last year • Generated record operating and free cash flow of $1.1b and $828mm for the year INSULATION COMPOSITES ROOFING Delivered $250mm o
Slide 5: Key Financial Data
KEY FINANCIAL DATA ($ in millions, except per share data) Q4 2020 Q4 2019 FY 2020 FY 2019 Net sales 1,925 1,692 7,055 7,160 Net earnings (loss) attributable to Owens Corning 232 73 (383) 405 Diluted earnings (loss) per common share (EPS) $2.13 $0.66 ($3.53) $3.68 attributable to Owens Corning common
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $26 $41 $987 $878 Gains on sale of Restructuring Impairment certain precious costs charges metals ($124) FY 2020 Adj. EBIT FY 2020 EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 6
Slide 7: Adjusted EBIT Reconciliation
ADJUSTED EBIT RECONCILIATION $136 $20 $82 $24 Roofing Insulation Composites Corporate $878 $828 FY 2019 Adj. EBIT FY 2020 Adj. EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 7
Slide 8: Insulation Business
INSULATION BUSINESS Current year financial performance ($ in millions) Q4 2020 Q4 2019 2020 2019 Net sales 728 723 2,607 2,668 Delivered $250mm of EBIT EBIT 106 89 250 230 with 10% EBIT margins EBIT as % of net sales 15% 12% 10% 9% D&A 52 48 201 194 Generated earnings growth in the North American re
Slide 9: Composites Business
COMPOSITES BUSINESS Current year financial performance ($ in millions) Q4 2020 Q4 2019 2020 2019 Net sales 547 480 1,960 2,059 Reported $165mm of EBIT EBIT 60 56 165 247 with 8% EBIT margins EBIT as % of net sales 11% 12% 8% 12% D&A 42 40 159 154 Strong volume improvements resulted in double-digit E
Slide 10: Roofing Business
ROOFING BUSINESS Current year financial performance ($ in millions) Q4 2020 Q4 2019 FY 2020 FY 2019 Net sales 702 529 2,695 2,634 Produced $591 of EBIT with EBIT 183 87 591 455 22% EBIT margins EBIT as % of net sales 26% 16% 22% 17% D&A 15 14 59 54 Grew revenue on higher sales volumes in both shingl
Slide 11: Significant Financial Matters
SIGNIFICANT FINANCIAL MATTERS • Delivered record operating and free cash flow in 2020 • Free cash flow of $828mm, an increase of $238mm, resulting in free cash flow conversion of 146% • Returned $396mm of cash to shareholders through share repurchases and dividends • As of the end of 2020, 9.5mm sha
Slide 12: Business Outlook
BUSINESS OUTLOOK • The key economic factors that impact the company’s businesses are residential repair and remodeling activity, U.S. housing starts, global commercial construction activity, and global industrial production • The company expects the COVID-19 pandemic will continue to create market u
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