Slide 1: Third-Quarter 2020 Results
THIRD-QUARTER 2020 RESULTS Brian Chambers | Chairman & Chief Executive Officer Ken Parks | Chief Financial Officer October 28, 2020 | Q3 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 $1.9 Billion; Posted Strong Net Earnings of $206 Million and Record Quarterly Adjusted EBIT of $289 Million 3
Slide 4: Highlights
HIGHLIGHTS • Sustained high level of safety performance • Company achieved strong financial results in improving markets • Grew revenue by 1% over prior year • Delivered adjusted EBIT of $289mm, up 4% from the same period last year • Produced record free cash flow for the quarter of $425mm ROOFING C
Slide 5: Key Financial Data
KEY FINANCIAL DATA ($ in millions, except per share data) Q3 2020 Q3 2019 YTD 2020 YTD 2019 Net sales 1,904 1,883 5,130 5,468 Net earnings (loss) attributable to Owens Corning 206 150 (615) 332 Diluted earnings (loss) per common share (EPS) $1.88 $1.36 ($5.66) $3.02 attributable to Owens Corning com
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $7 $289 Gains on sale of $296 certain precious metals Q3 2020 Adj. EBIT Q3 2020 EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 6
Slide 7: Adjusted EBIT Reconciliation
ADJUSTED EBIT RECONCILIATION $53 $11 $12 $18 $277 $289 Roofing Insulation Composites Corporate Q3 2019 Adj. EBIT Q3 2020 Adj. EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 7
Slide 8: Insulation Business
INSULATION BUSINESS Current year financial performance ($ in millions) Q3 2020 Q3 2019 YTD 2020 YTD 2019 Net sales 681 693 1,879 1,945 Delivered $73mm of EBIT with EBIT 73 84 144 141 11% EBIT margins EBIT as % of net sales 11% 12% 8% 7% D&A 51 48 149 146 Continued strong market recovery in the North
Slide 9: Composites Business
COMPOSITES BUSINESS Current year financial performance ($ in millions) Q3 2020 Q3 2019 YTD 2020 YTD 2019 Net sales 521 531 1,413 1,579 Generated $55mm of EBIT EBIT 55 67 105 191 with 11% EBIT margins EBIT as % of net sales 11% 13% 7% 12% D&A 40 37 117 114 Volumes continued to improve Five-year finan
Slide 10: Roofing Business
ROOFING BUSINESS Current year financial performance ($ in millions) Q3 2020 Q3 2019 YTD 2020 YTD 2019 Net sales 761 713 1,993 2,105 Produced EBIT of $196mm EBIT 196 143 408 368 with 26% EBIT margins EBIT as % of net sales 26% 20% 20% 17% D&A 15 14 44 40 Grew revenue 7% on strong Five-year financial
Slide 11: Significant Financial Matters
SIGNIFICANT FINANCIAL MATTERS • Record free cash flow for the quarter of $425mm compared with 2019 of $208mm • Paid down remaining $190mm of the revolver balance drawn at the end of Q1 2020 • Paid down remaining $150mm on the term loan associated with the purchase of Paroc • Through September, retur
Slide 12: Business Outlook
BUSINESS OUTLOOK • Key economic factors that continue to impact the company’s businesses are global industrial production, U.S. housing starts, and global commercial and industrial construction activity • The COVID-19 pandemic will continue to create uncertainty in the company’s end markets. The mag
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