Owens Corning Inc · NYSE:OC
Owens Corning — Zelman Housing Summit – Boston 2024
39 slides from Owens Corning's conference presentation, Sep 13, 2024
Slide 1: Owens Corning Q3 2024 Investor Presentation
OWENS CORNING Q3 2024 INVESTOR PRESENTATION 09/13/24 Zelman Housing Summit – Boston Todd Fister, Chief Financial Officer 09/05/24 Jefferies Industrials Conference – New York Brian Chambers, Chair & Chief Executive Officer 08/22/24 IR Roadshow Hosted by Wolfe Research – Boston Brian Chambers, Chair &
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 are subject to risks, uncertainties and other factors and actual results may differ materially from those resul
Slide 3: A Global Residential & Commercial Building Products Leader
A GLOBAL RESIDENTIAL & COMMERCIAL BUILDING PRODUCTS LEADER OWENS CORNING + MASONITE 2023 FINANCIAL PERFORMANCE1 ~$12.5b $2.9b 23% Roofing Insulation Doors Composites Adjusted EBITDA Revenue on a synergized Adjusted EBITDA basis margin on a synergized basis BY SEGMENT1 BY END MARKET2 BY GEOGRAPHY1 Re
Slide 4: Executing Our Enterprise Strategy for Growth
EXECUTING OUR ENTERPRISE STRATEGY FOR GROWTH ENTERPRISE STRATEGY “THE OC ADVANTAGE” KEY SECULAR TRENDS Strengthen position in core 1 products and markets High Premium on Performing living space Teams Expand into new product 2 Sustainability Product & adjacencies that leverage our Focus Process Innov
Slide 5: Strategic Choices to Enhance Long-Term Performance
STRATEGIC CHOICES TO ENHANCE LONG-TERM PERFORMANCE Q4 2021 WEARDECK NATURAL FIBERTEQ JV MAJOR ORGANIC MASONITE INVESTOR DAY ACQUISITION POLYMERS ACQUISITION GROWTH ACQUISITION Owens Corning Continues pivot of ACQUISITION Expands capacity of INVESTMENTS Leadership establishes strategy Composites busi
Slide 6: A Leader in Branded Residential Building Materials
A LEADER IN BRANDED RESIDENTIAL BUILDING MATERIALS HIGHLY VALUED PRODUCTS AND BRANDS STRONG CHANNEL REACH Builders Contractors Distributors Home Centers Homeowners 6
Slide 7: Operating Model Delivering Improved Financial Performance
OPERATING MODEL DELIVERING IMPROVED FINANCIAL PERFORMANCE LEGACY OWENS CORNING FINANCIAL PERFORMANCE REVENUE ($b) ADJUSTED EBIT MARGIN (%) Growing revenues through core products and expanding Delivering higher, more resilient earnings by making addressable markets strategic choices and operational i
Slide 8: Balanced Capital Allocation Strategy Creates Shareholder Value
BALANCED CAPITAL ALLOCATION STRATEGY CREATES SHAREHOLDER VALUE 2020-2023: RETURNED ~$2.8B OF CASH, INCREASED DIVIDEND >2X, AND REPURCHASED >20% SHARES OUTSTANDING CAPITAL ALLOCATION STRATEGY FREE CASH FLOW ALLOCATION Maintain investment grade balance sheet with flexibility to support growth and driv
Slide 9: Sustainability Is Core to Who We Are and What We Do
SUSTAINABILITY IS CORE TO WHO WE ARE AND WHAT WE DO 2030 GUIDING ASPIRATION THE POSITIVE IMPACT OF OUR PRODUCTS Roofing products and systems help protect Increase the Reduce the and preserve homes and commercial positive impact negative impact buildings while enhancing curb appeal. of our products o
Slide 10: Creating Differentiated Value Through Innovation
CREATING DIFFERENTIATED VALUE THROUGH INNOVATION >140 New or improved products Duration® SureNail® FOAMULAR® OCTM Lumber launched over the past 3 years1 Technology Project Panels Structural Framing • Track record of material innovation and conversion • Increasing investments in R&D • Accelerating in
Slide 11: Receiving Significant Recognition for Our Leadership
RECEIVING SIGNIFICANT RECOGNITION FOR OUR LEADERSHIP Earned placement on DJSI-World Ranked among the top 10 Best Earned a spot in the S&P Global Current ISS scores: for the 14th year in a row, and on Corporate Citizens for six Sustainability Yearbook ▪ Environmental: 1 the DJSI North America Index f
Slide 12: Roofing Segment Overview
ROOFING SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) EBIT margin (%) Durable pull-through model with industry leading $4.5 35% Thousands 30% contractor network of over 23,000 members $3.0 25% 20% $3.7 $4.0 $4.1 15% Roofing components have accelerated growth $1.5 $2.7 $3.2 10% with margins sim
Slide 13: Roofing Demand Driven by Repair and Remodel
ROOFING DEMAND DRIVEN BY REPAIR AND REMODEL Repair and remodeling (R & R) U.S. ASPHALT SHINGLE MARKET in mm of squares • Aging housing stock • Economic factors: existing 159 157 home sales, home equity, 151 11 148 consumer income 139 18 13 30 12 30 25 28 Major storms & weather events 26 25 • ~40mm s
Slide 14: Insulation Segment Overview
INSULATION SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) EBIT margin (%) Attractive and diverse global businesses with $4.0 20% Thousands market-leading positions $3.0 15% $2.0 $3.7 10% $3.7 $3.7 Ability to grow above the construction market $3.2 $2.6 $1.0 5% through demand for more energy eff
Slide 15: Technical and Global Insulation 2023 Revenues by End Market
TECHNICAL AND GLOBAL INSULATION 2023 REVENUES BY END MARKET 1 Commercial Industrial and other 2 3 Residential 4 1 Manufacturing and warehouse 2 Education, healthcare, and government 3 Office and retail 4 All other Note: Technical and Global building insulation includes pipe and flexible duct media i
Slide 16: Doors Segment Overview
DOORS SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) Adj. EBITDA margin (%) A leading designer and manufacturer of residential $3.2 20% interior and exterior doors and door systems $2.4 15% $1.6 10% $2.6 $2.9 $2.8 Expanding product offering into complementary $2.2 $2.3 $0.8 5% adjacencies and c
Slide 17: A Leader in Residential Doors and Door Systems
A LEADER IN RESIDENTIAL DOORS AND DOOR SYSTEMS OPPORTUNITY FOR GROWTH WITH R&R RECOVERY CAPTURING MORE VALUE PER DOOR Engineered door frames Residential Repair & Remodel Rails Non-Residential Stiles Construction Locking systems Smart Doors Wood, fiberglass and steel door facings Glass units Solid co
Slide 18: Composites Segment Overview
COMPOSITES SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) EBIT margin (%) Pivoting to higher-value applications focused $3.2 20% Thousands on building and construction $2.4 15% $1.6 10% $2.7 Vertical integration within Composites and into $2.0 $2.3 $2.3 $2.2 $0.8 5% Roofing shingles $0.0 0% 202
Slide 19: A Leading Nonwovens Business Serves Building & Construction Market
A LEADING NONWOVENS BUSINESS SERVES BUILDING & CONSTRUCTION MARKET Residential Roofing Sheathing & Walls We are a global market leader in Asphalt Shingles Gypsum1 & insulation boards nonwovens, investing in capacity expansion Highly specified and customized products deliver customer value Unique man
Slide 20: Glass Reinforcements Business Under Strategic Review
GLASS REINFORCEMENTS BUSINESS UNDER STRATEGIC REVIEW Owens Corning continues strategic review process for glass reinforcement business Operates within Composites segment and is one of the largest providers of glass reinforcements for wind energy, infrastructure, industrial, transportation, and other
Slide 21: Masonite Acquisition
APPENDIX A: MASONITE ACQUISITION 21
Slide 22: Strengthening Position in Building and Construction
STRENGTHENING POSITION IN BUILDING AND CONSTRUCTION TRANSACTION DETAILS STRATEGIC RATIONALE Owens Corning has purchased Masonite for Expands Owens Corning’s leadership $133.00 per share with an implied transaction value of approximately $3.9 billion1 1 position in branded residential building produc
Slide 23: Additional Financial Information
APPENDIX B: ADDITIONAL FINANCIAL INFORMATION 23
Slide 24: Key Financial Data – Businesses
APPENDIX B: KEY FINANCIAL DATA – BUSINESSES Owens Corning* Roofing Insulation Doors Composites ($ in millions) Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Net sales 2,789 2,563 1,105 1,123 916 905 311 - 546 620 EBIT* 588 534 373 338 183 163 34 - 61 87 EBIT* as % o
Slide 25: Key Financial Data – Disaggregated Revenue
APPENDIX B: KEY FINANCIAL DATA – DISAGGREGATED REVENUE Three Months Ended June 30, 2024 ($ in millions) Disaggregation Categories Roofing Insulation Doors Composites Eliminations Consolidated U.S. residential $ 1,049 $ 382 $ 244 $ 121 $ (87) $ 1,709 U.S. commercial and industrial 37 209 - 187 (2) 43
Slide 26: Non-GAAP Reconciliations
APPENDIX C: NON-GAAP RECONCILIATIONS
Slide 27: Non-GAAP Reconciliation – Table 1
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 1 27
Slide 28: Non-GAAP Reconciliation – Table 2
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 2 28
Slide 29: Non-GAAP Reconciliation – Table 3
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 3 29
Slide 30: Non-GAAP Reconciliation – Table 4
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 4 30
Slide 31: Non-GAAP Reconciliation – Table 5
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 5 31
Slide 32: Non-GAAP Reconciliation – Table 6
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 6 32
Slide 33: Non-GAAP Reconciliation – Table 7
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 7 33
Slide 34: Non-GAAP Reconciliation – Table 8
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 8 34
Slide 35: Non-GAAP Reconciliation – Table 9
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 9 35
Slide 36: Non-GAAP Reconciliation – Table 10
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 10 36
Slide 37: Non-GAAP Reconciliation – Table 11
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 11 37
Slide 38: Non-GAAP Reconciliation – Table 12
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 12 38
Slide 39: Non-GAAP Reconciliation – Table 13
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 13 39