Owens Corning Inc · NYSE:OC
Owens Corning — Q1 2013 Earnings Presentation
12 slides from Owens Corning's earnings presentation, May 2, 2013
Slide 1: Strong First-Quarter Earnings Growth Positions Company for Success in 2013
Strong First-Quarter Earnings Growth Positions Company for Success in 2013 Sell-Side Analyst Meeting May 2, 2013 – Amarillo, TX Michael McMurray Chief Financial Officer
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation consists of this slide deck and the associated remarks and comments, all of which are integrally related and are intended to be presented and understood together. This presentation contains forward-looking statements within the meani
Slide 3: Q1 2013 Outlook and Highlights
Q1 2013 Outlook and Highlights Continued to focus on building a safer workplace Improved adjusted EBIT by $34 million Grew Roofing EBIT margins from 14% to 20% on effective price execution Insulation on track for profitability in 2013 Composites completes asset ramp-up; on track to achieve
Slide 4: 2013 Guidance
2013 Guidance Expect margin performance improvement in each business Expect adjusted EBIT to grow at least $100 million with potential upside The upside to the outlook will largely be determined by the pace of the U.S. housing recovery and its impact on Building Materials margins 4
Slide 5: Owens Corning Composites Positioned for Improved Returns
Owens Corning Composites Positioned for Improved Returns Sell-Side Analyst Meeting May 2, 2013 – Amarillo, TX Arnaud Genis President Composites Business
Slide 6: Favorable Economic Trends
Favorable Economic Trends Economic Indicators 2012 2013F 2014F Supporting Trends Global Industrial Production 1.7% 2.6% 4.3% Growth recovery Growth Rate *1 Automotive Builds (mm) *2 81 83 88 8 kg of glass fiber used per vehicle (and growing) *6 Wind Installations (GW) *3 47 45 50 U.S. Production Tax
Slide 7: Glass Fiber Market Outlook
Glass Fiber Market Outlook Glass Fiber Market Demand 2013-2016 Growth Forecast 30 Years Averaging 5% CAGR 10 750 Demand Growth (k tons) (MM Tons) - log basis Glass Fiber Demand 500 250 1 - 1981 1991 2001 2011 2017 China Americas EMEA Rest of Asia India Glass Fiber Market Expected to About 60% of Gro
Slide 8: Market Price of Composites vs. Traditional Materials
Composites Materials Price History Market Price of Composites vs. Traditional Materials 220 200 180 Index (1992=100) 160 140 120 100 80 60 1992 1997 2002 2007 2012 Composite Materials Steel Aluminum Composites Materials Have Become More Competitive Sources: Composite represents a combination of text
Slide 9: Cost Trends Favor a Global Network
Cost Trends Favor a Global Network Cost Trends North Europe China America Energy Labor Materials Logistics Foreign Exchange China Facing Higher Inflation and Currency Appreciation Color coding indicates relative rate of growth compared to other regions. Cost drivers measured in their respective func
Slide 10: Glass Fiber Industry Capacity
Glass Fiber Industry Capacity Glass Fiber Industry Estimated Capacity Utilization 2004 2006 2008 2010 2012 2014 2016 110% 1.7 100% Estimated Capacity Utilization 90% Supply Tension 1.1 1.1 Over 20% of global 80% capacity will need to be rebuilt in China between 2013 and 2016 70% 0.5 0.5 (high prob
Slide 11: Glass Fiber Industry Phases
Glass Fiber Industry Phases Signs of a New Era Chinese Macro Supply Emergence Adjustment Tension Capacity Excess Return on Overbuild Inventory Capital 2005 – 2009 2010 – 2012 2013 – 2016 High Utilization Rates and Reinvestment Economics Support Higher Returns 11
Slide 12: Owens Corning Composites Positioned for Improved Returns
Owens Corning Composites Positioned for Improved Returns The glass fiber market is healthy and will grow driven by improving economic conditions and continuing material conversion Glass fiber reinvestment economics in China are changing, as costs increase, currency appreciates, and furnaces requ