Slide 1: Owens Corning Q1 2024 Investor Presentation
OWENS CORNING Q1 2024 INVESTOR PRESENTATION This presentation shared at the following events: 03/06/24 Evercore ISI Housing & Building Products Symposium – New York Todd Fister, Chief Financial Officer 03/05/24 Wolfe Research Housing Conference – New York Todd Fister, Chief Financial Officer 02/29/2
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 any results
Slide 3: A Global Building and Construction Materials Leader
A GLOBAL BUILDING AND CONSTRUCTION MATERIALS LEADER $9.7b 19% 24% $ 2023 adjusted EBIT / EBITDA 2023 Revenue margin as % of revenue $1.2b 18,000 2023 free cash flow Employees Roofing Insulation Composites BY SEGMENT BY END MARKET1 BY GEOGRAPHY Composites 23% Roofing Industrial / Other 13% Residentia
Slide 4: Executing Our Enterprise Strategy for Growth
EXECUTING OUR ENTERPRISE STRATEGY FOR GROWTH ENTERPRISE STRATEGY “THE OC ADVANTAGE” KEY SECULAR TRENDS Strengthen position in core 1 products and markets High Premium on Performing living space Teams Expand into new product 2 Sustainability Product & adjacencies that leverage our Focus Process Innov
Slide 5: Strategic Choices to Enhance Long-Term Performance
STRATEGIC CHOICES TO ENHANCE LONG-TERM PERFORMANCE Q4 2021 WEARDECK NATURAL FIBERTEQ JV MAJOR ORGANIC MASONITE INVESTOR DAY ACQUISITION POLYMERS ACQUISITION GROWTH ACQUISITION Owens Corning Continues pivot of ACQUISITION Expands capacity of INVESTMENTS Leadership establishes strategy Composites busi
Slide 6: A Compelling Investment with Improved Financial Performance
A COMPELLING INVESTMENT WITH IMPROVED FINANCIAL PERFORMANCE REVENUE ($b) ADJUSTED EBIT MARGIN (%) Growing revenues through core products and expanding Delivering higher, more resilient earnings by making addressable markets strategic choices and operational initiatives ~8% CAGR1 + >700 bps $9.8 $9.7
Slide 7: Balanced Capital Allocation Strategy Creates Shareholder Value
BALANCED CAPITAL ALLOCATION STRATEGY CREATES SHAREHOLDER VALUE 2020-2023: RETURNED ~$2.8B OF CASH, INCREASED DIVIDEND >2X, AND REPURCHASED >20% SHARES OUTSTANDING CAPTIAL ALLOCATION STRATEGY FREE CASH FLOW ALLOCATION Maintain investment grade balance sheet with flexibility to support growth and driv
Slide 8: Sustainability Is Core to Who We Are and What We Do
SUSTAINABILITY IS CORE TO WHO WE ARE AND WHAT WE DO 2030 GUIDING ASPRIATION THE POSITIVE IMPACT OF OUR PRODUCTS Roofing products and systems Increase the Halve the help protect and preserve homes positive impact negative impact and commercial buildings while of our products of our operations enhanci
Slide 9: Creating Differentiated Value Through Innovation
CREATING DIFFERENTIATED VALUE THROUGH INNOVATION >140 New or refreshed products Duration® SureNail® FOAMULAR® OCTM Lumber launched over the past 3 years Technology Project Panels Structural Framing • Track record of material innovation and conversion • Increasing investments in R&D • Accelerating in
Slide 10: Receiving Significant Recognition for Our Leadership
RECEIVING SIGNIFICANT RECOGNITION FOR OUR LEADERSHIP Earned placement on DJSI-World Ranked among the top 10 Best Earned a spot in the S&P Global Current ISS scores: for the 14th year in a row, and on Corporate Citizens for six Sustainability Yearbook ▪ Environmental: 1 the DJSI North America Index f
Slide 11: Roofing Segment Overview
ROOFING SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($b) EBIT margin (%) Durable pull-through model with industry leading $4.5 30% Thousands contractor network of over 23,000 members 25% $3.0 20% 15% $3.7 $4.0 Roofing components are accelerating growth $1.5 $2.6 $2.7 $3.2 10% with margins similar
Slide 12: Roofing Demand Driven by Repair and Remodel
ROOFING DEMAND DRIVEN BY REPAIR AND REMODEL Repair and remodeling (R & R) U.S. asphalt shingle market in mm of squares • Aging housing stock • Economic factors: existing 159 157 home sales, home equity, 151 11 148 consumer income 139 18 13 30 12 30 25 28 Major storms & weather events 26 25 • ~40mm s
Slide 13: Insulation Segment Overview
INSULATION SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($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 Ability to grow above the construction market $3.2 $2.7 $2.6 $1.0 5% through demand for more energy eff
Slide 14: Technical and Global Insulation 2023 Revenues by End Market
TECHNICAL AND GLOBAL INSULATION 2023 REVENUES BY END MARKET 1 Commercial Industrial and other 2 3 Residential 4 1 Manufacturing and warehouse 2 Education, healthcare, and government 3 Office and retail 4 All other Note: Technical and Global building insulation includes pipe and flexible duct media i
Slide 15: Composites Segment Overview
COMPOSITES SEGMENT OVERVIEW FINANCIAL PERFORMANCE Revenue ($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 $2.1 $2.0 $2.3 $2.3 $0.8 5% Roofing shingles $0.0 0% 201
Slide 16: 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 17: Glass Reinforcements Business Under Strategic Review
GLASS REINFORCEMENTS BUSINESS UNDER STRATEGIC REVIEW Owens Corning initiating a 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 ot
Slide 18: Appendix A: Masonite Acquisition
APPENDIX A: MASONITE ACQUISITION 18
Slide 19: Strengthening Position in Building and Construction
STRENGTHENING POSITION IN BUILDING AND CONSTRUCTION TRANSACTION DETAILS STRATEGIC RATIONALE Owens Corning to acquire Masonite for Expands Owens Corning’s leadership $133.00 per share or ~$4b in cash 1 position in branded residential building products Implies ~8.6x 2023E adjusted EBITDA1, or ~6.8x in
Slide 20: A Market Leader in North American Residential Doors
A MARKET LEADER IN NORTH AMERICAN RESIDENTIAL DOORS 2,892 2,831 2,597 2,177 2,257 2019 2020 2021 2022 2023 1 Residential Interior Doors Residential Exterior Doors Components and Door Systems REVENUE ($mm) Architectural Europe Canada New Construction Residential R&R 11% 9% ~10% ~45% ~55% 446 U.K. 413
Slide 21: Expands Branded Residential Building Materials
EXPANDS BRANDED RESIDENTIAL BUILDING MATERIALS HIGHLY VALUED PRODUCTS AND BRANDS STRONG CHANNEL REACH Builders Starter Strip VentSure® Contractors Plus Ridge Vent Starter Shingles Distributors Home Centers Homeowners 21
Slide 22: Appendix B: Additional Financial Information
APPENDIX B: ADDITIONAL FINANCIAL INFORMATION 22
Slide 23: Appendix B: Key Financial Data – Businesses
APPENDIX B: KEY FINANCIAL DATA – BUSINESSES Owens Corning* Roofing Insulation Composites ($ in millions) Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Net sales 2,304 2,285 928 799 931 956 514 589 EBIT* 392 333 284 168 150 153 26 64 EBIT* as % of net sales 17% 15% 31% 21% 16% 16% 5
Slide 24: Appendix B: Key Financial Data – Disaggregated Revenue
APPENDIX B: KEY FINANCIAL DATA – DISAGGREGATED REVENUE Three Months Ended December 31, 2023 ($ in millions) Disaggregation Categories Roofing Insulation Composites Eliminations Consolidated U.S. residential $ 879 $ 362 $ 89 $ (66) $ 1,264 U.S. commercial and industrial 24 222 189 (2) 433 Total Unite
Slide 25: Appendix C: Non-GAAP Reconciliations
APPENDIX C: NON-GAAP RECONCILIATIONS
Slide 26: Non-GAAP Reconciliation – Table 1
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 1 26
Slide 27: Non-GAAP Reconciliation – Table 2
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 2 27
Slide 28: Non-GAAP Reconciliation – Table 3
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 3 28
Slide 29: Non-GAAP Reconciliation – Table 4
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 4 29
Slide 30: Non-GAAP Reconciliation – Table 5
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 5 30
Slide 31: Non-GAAP Reconciliation – Table 6
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 6 31
Slide 32: Non-GAAP Reconciliation – Table 7
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 7 32
Slide 33: Non-GAAP Reconciliation – Table 8
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 8 33
Slide 34: Non-GAAP Reconciliation – Table 9
APPENDIX C: NON-GAAP RECONCILIATION – TABLE 9 34