Owens Corning Inc · NYSE:OC
Owens Corning — Q1 2022 Earnings Presentation
18 slides from Owens Corning's earnings presentation, Apr 27, 2022
Slide 1: First-Quarter 2022 Results
FIRST-QUARTER 2022 RESULTS Brian Chambers | Chair & Chief Executive Officer Ken Parks | Chief Financial Officer April 27, 2022 | Q1 2022
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 Ken Parks Business outlook Brian Chambers Questions and discussion All Owens Corning Delivers Record Net Sales of $2.3 Billion, Generates Net Earnings of $304 Million and Adjusted EBIT of $417 Million 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS ($ in millions) Q1 2022 Q1 2021 Net sales 2,346 1,915 Maintained world-class level of safety Adjusted EBIT 417 282 performance Adjusted EBIT as % of net sales 18% 15% Adjusted EBITDA 543 400 Delivered revenue growth of 23% and adjusted EBIT growth of 48% Adjusted EBITDA as %
Slide 5: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data) Q1 2022 Q1 2021 Net sales 2,346 1,915 Net sales growth 23% 20% Adjusted EBIT 417 282 Adjusted EBIT as % of net sales 18% 15% Adjusted earnings 285 190 Adjusted EPS (diluted) $2.84 $1.79 5
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $27 $4 $6 $442 $417 Gain on sale of Gains on sale of Restructuring Shanghai, China certain precious costs facility metals Q1 2022 Adj. EBIT Q1 2022 EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 6
Slide 7: Capital Deployment
CAPITAL DEPLOYMENT • First-Quarter 2022 • Generated $51mm of free cash flow • Capital additions of $107mm, or 4.6% of revenues • Improved return on capital to 19% for the last twelve months • Maintained ample liquidity of approximately $1.8b, consisting of $748mm of cash and nearly $1.1b of combined
Slide 8: Adjusted EBIT Reconciliation
ADJUSTED EBIT RECONCILIATION $75 $47 $20 $7 Composites Insulation Roofing Corporate $417 $282 Q1 2021 Adj. EBIT Q1 2022 Adj. EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 8
Slide 9: Insulation Business
INSULATION BUSINESS ($ in millions) Q1 2022 Q1 2021 Net sales 859 700 EBIT 129 82 Delivered $129mm of EBIT EBIT as % of net sales 15% 12% with 15% EBIT margins EBITDA 182 133 EBITDA as % of net sales 21% 19% Generated revenue growth and margin expansion on price Five-year financial performance reali
Slide 10: Composites Business
COMPOSITES BUSINESS ($ in millions) Q1 2022 Q1 2021 Net sales 714 559 EBIT 154 79 Reported $154mm of EBIT EBIT as % of net sales 22% 14% with 22% EBIT margins EBITDA 197 117 EBITDA as % of net sales 28% 21% Revenue growth driven by strong commercial execution Five-year financial performance and favo
Slide 11: Roofing Business
ROOFING BUSINESS ($ in millions) Q1 2022 Q1 2021 Net sales 838 711 EBIT 176 156 Produced $176mm of EBIT EBIT as % of net sales 21% 22% with 21% EBIT margins EBITDA 190 171 EBITDA as % of net sales 23% 24% Above market volume growth Five-year financial performance in shingles $3,500 25% $2,800 20% $2
Slide 12: Full-Year 2022 Key Financial Outlook
FULL-YEAR 2022 KEY FINANCIAL OUTLOOK1 • General corporate expenses are estimated to be between $160mm and $170mm • Interest expense estimated outlook to be approximately $115mm to $125mm • The company estimates a full-year effective tax rate of 25% to 27% and a cash tax rate of 22% to 24%, both on a
Slide 13: Q2 2022 Business Outlook
Q2 2022 BUSINESS OUTLOOK ENTERPRISE • U.S. residential repair and remodel, new construction markets, as well as global commercial and industrial end-markets to remain strong • Inflation to continue to accelerate in Q2 • Each of the businesses maintaining positive price more than offsetting inflation
Slide 14: Questions and Discussion
QUESTIONS AND DISCUSSION
Slide 15: WearDeck: Premium Producer of Composite Decking
WEARDECK®: PREMIUM PRODUCER OF COMPOSITE DECKING • Expects to deliver ~$60mm in FY 2022 sales with significant growth potential • Strengthens Owens Corning’s position in building and construction • Significantly expands total addressable market by more than $7b • Innovative product design uses High-
Slide 16: Appendix B: Non-GAAP Reconciliations – Table 1
APPENDIX B: NON-GAAP RECONCILIATIONS – TABLE 1 16
Slide 17: Appendix B: Non-GAAP Reconciliations – Table 2
APPENDIX B: NON-GAAP RECONCILIATIONS – TABLE 2 17
Slide 18: Appendix B: Non-GAAP Reconciliations – Table 3
APPENDIX B: NON-GAAP RECONCILIATIONS – TABLE 3 18