OWENS CORNING ImperialConference

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<ol><li> 1. Differentiate, Perform,Grow Q3 Results Based on Strong Global Composites &amp; Roofing PerformanceDuncan Palmer Chief Financial Officer November 18, 2008Imperial Capital Conference </li><li> 2. Forward-Looking Statements and Non-GAAP MeasuresThis presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected in these statements. Such factors include, without limitation, competitive factors, pricing pressures, availability and cost of energy and materials, acquisitions and achievement of expected synergies therefrom, general economic conditions, the effect of industry and economic conditions on the market and operating conditions of our customers and factors detailed from time to time in the Companys Securities and Exchange Commission filings. The information in this presentation speaks as of the date October 29, 2008 and is subject to change. The Company does not undertake any duty to update or revise forward-looking statements. Any distribution of this presentation after that date is not intended and will not be construed as updating or confirming such information. Additional Company information is available on the Owens Corning Web site: www.owenscorning.com. Certain data included within this presentation contains quot;non-GAAP financial measuresquot; as defined by the Securities and Exchange Commission. A reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles can be found in our Current Report on Form 8-K filed with the Securities and Exchange Commission on October 29, 2008. 2 </li><li> 3. Owens Corning At A Glance Founded in 1938, an industry leader in glass fiber insulation, roofing and asphalt, and glass fiber reinforcements 2007 sales: $5 billion 18,000 employees in 26 countries 127.4 million diluted shares outstanding at September 30, 2008 Senior debt ratings: BBB- and Ba1 FORTUNE 500 company for 54 consecutive years.Leading North American Global Leader Market Positions Glass Fiber Reinforcement Residential InsulationMaterials for Composites Commercial &amp; Industrial Insulation Manufactured Stone Veneer Residential Shingles Roofing AsphaltsThe Pink Panther 1964-2008 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved.3 The color PINK is a registered trademark of Owens Corning. 2008 Owens Corning. </li><li> 4. Business Segment OverviewNine Months 2008 YTD EBIT: Nine Months 2008 YTD Revenue: $316 million(2)$4.7 billion(1) Other BuildingOther Building Materials Materials and and Services Services-3% 4% RoofingRoofing and andAsphaltAsphalt 30%36% Composite Insulating SolutionsComposite Insulating Systems 41%SolutionsSystems 7%25% 60% (1) Percentages by segment based on revenue of $4.7B before corporate eliminations (2) Percentages based on segment results before restructuring costs and other credits, general corporate expenses, 4 Income taxes and interest expense. </li><li> 5. Composites Group </li><li> 6. What is a Composite? An engineered material system+ Other Materials Reinforcements Resins Additives Glass Other 95%* Filler resulting in unique attributes replacing traditional materialsHigh StrengthLight Weight Non-ConductiveDurable Up to 50% Lighter Longer Blades Non-Corrosive SafetyThan Steel 6 Source: Owens Corning </li><li> 7. CompositesQ3 2008 Highlights ($ in millions)Q3 2008 Q3 2007 % Change Net sales*589 39748% Sales up 48% and EBIT up 108% year-over- year, primarily due to acquisition EBIT 5426108% About two-thirds of earnings increase due to EBIT as % of9%7%sales acquisition, net of the divestitureEBIT as % of 37 %29 % Improved manufacturing productivityall segments Inflation not fully offset by higher pricesD&amp;A332065% *Net sales before inter-segment eliminations Four-Year and LTM Financial Performance*Q3 2008 YTD Revenue by End MarketSales EBIT as % of Sales U.S. &amp; Canada$3,000 30%Commercial &amp; Industrial20% $2,500 25% $2,000 20%U.S. &amp; Canada Residential$1,500 15%Construction$1,000 10%9%International 71% $5005%$00% 2004 200520062007 LTM Company estimates*2004 is not recast for the effect of discontinued operations7 </li><li> 8. Greater Value through Synergy AttainmentSuccessful AcquisitionMarket Position InnovationComposition of SynergiesOperating Expenses: Eliminating redundancies30%Technology:50% Upgrading to Advantex20% Supply Chain: Reconfiguring plants Fewer ocean shipmentsAt least $100 million of total synergies by 2011 8Source: Owens Corning </li><li> 9. Demand for Glass Reinforcements is GrowingSuccessful Acquisition Market Position Innovation Trends Driving Growth Emerging economies1.5 to 2X Global GDP$8 B Global energy demand 5% to 7%CAGR Green solutions in glass fibersOwens Corning is #1 in technical fabrics in specialty glass mats 9Source: U.S. Fiber Economic Bureau, APFE, Owens Corning </li><li> 10. Attractive End-Use Market GrowthSuccessful AcquisitionMarket Position InnovationPower &amp;Aerospace WaterDistribution &amp; Defense Transportation Housing Industrial ConsumerEnergy1,000 Glass Reinforcements (kt)Growth CAGR 08-13Market Size for &gt;10% ~5% 0Owens Corning has played a major rolein the development of these markets 10Source: Owens Corning </li><li> 11. Wind Power The world will spend $11 trillion on power infrastructure through 2030 By 2015, spending on renewable energy will reach $300 billion a year Wind power is growing 20% per year, consuming 200,000 tons of glass reinforcements annuallyOwens Corning is the leading supplier of glass reinforcements for wind power today Source: International Energy Agency; Morgan Stanley Clean Energy Report, May 2008; BTM Consultant ApS March 2008; Owens Corning11 </li><li> 12. Building Materials Group </li><li> 13. Residential and Commercial Building Materials Attractive building materials segments: Insulating Systems Roofing and Asphalt Other Building Materials and Services Leading market shares Powerful brand Broad distribution Used in virtually every home built in America 13 </li><li> 14. Roofing and Asphalt </li><li> 15. Asphalt Roofing Industry is Attractive More than $7 billion market representing 75% of all residential roofing installed 75% 80% re-roof; 20% 25% new construction Market growth driven by aging of existing housing stock, new construction and storm activity Four national producers service more than 90% of the market 15 </li><li> 16. Roofing and Asphalt($ in millions)Q3 2008Q3 2007 % Change Q3 2008 Highlights Sales up 63% on higher selling prices due toNet sales* 616 37963% raw material and delivery costs EBIT9515533% EBIT up on improved productivity, higher sellingEBIT as % of 15 % 4% sales prices and improved mix EBIT as % of Selling price increases offset inflation for first65 %17 % all segments nine months of the year D&amp;A 111010% Storm-related demand expected to continue intoNet sales before inter-segment eliminations 2009 Q3 2008 YTD Revenue by End Market Four-Year and LTM Financial PerformanceSales EBIT as % of SalesU.S. &amp; Canada Commercial &amp; Industrial $2,000 8% 11% U.S. &amp; CanadaResidential Repair $1,500 6% &amp; Remodeling U.S. &amp; Canada64%New Residential$1,000 4%Construction25%$5002% $0 0% Company estimates 2004 20052006 2007LTM 16 </li><li> 17. Strategic Priorities Manage price to recover cost inflation Innovation fuels our customers success Duration Series Shingle Roofing accessories Reinsulation opportunity Margin improvement Enhance product mix Increase roofing accessory sales Relentless about cost reduction Improved operating margin and return on invested capital 17 </li><li> 18. Providing Top of the House Solutions Hip &amp; Ridge Shingles VentSure Ventilation ProductsOwens Corning Felt Underlayment ProductsOwens Corning ShinglesOwens Corning Starter Shingle Products WeatherLock Self-Sealing Ice &amp; Water Barrier Products RapidFlowTM Gutter Drainage Protection raft-R-mate Attic Rafter Vent Undereave Ventilation Products AttiCat Expanding Blown-In Pink FiberglasTM Insulation 18 </li><li> 19. Insulating Systems </li><li> 20. Our Insulating Products Residential Insulating Batt used in wall cavities of newly constructed and existing homes Foam Insulation used in above- and below-grade construction applications Flexible Duct Media insulated duct used in new and existing homes as a more energy-efficient HVAC solution than metal ducts Metal Building Insulation insulation used in commercial and industrial metal buildings Commercial and Industrial Pipe Insulation fiberglass insulated pipe used in hot and cold industrial applications 20 </li><li> 21. Insulating Systems Strategic Priorities Remain profitable in a weak market Responsive capacity management Focus on operational execution Commercialize innovation supporting energy efficiency Customer focus, cycle management andinnovation are key to our success21 </li><li> 22. Insulating Systems($ in millions)Q3 2008 Q3 2007 % Change Q3 2008 Highlights Net sales*412 462 (11)% Reached breakeven profitability in very weak U.S. EBIT 0 42(100)% housing market EBIT as % of0%9% Sales down on lower volumes sales EBIT as % of About 70% of EBIT decline due to lower selling prices0%46 % all segments and inflation D&amp;A3133(6)%*Net sales before inter-segment eliminationsQ3 2008 YTD Revenue by End Market Four-Year and LTM Financial Performance International Sales EBIT as % of Sales13%$2,50025% U.S. &amp; CanadaNew Residential $2,00020%Construction39%U.S. &amp; Canada $1,50015% Commercial &amp; Industrial $1,00010% 27% $500 5% U.S. &amp; CanadaResidential Repair$0 0% &amp; Remodeling2004 20052006 2007LTM Company estimates21% 22 </li><li> 23. The Reinsulation Market Opportunity 40% of all energy in the United States is used inbuildings More than industry and more than transportation Concern for energy efficiency and the environment isfront-page news around the world In 2008, Oil and natural gas prices reached historichighs Insulation is the single-most cost-effective solution inthe world to reduce greenhouse gases*Nearly 80 million homes in United Statesare under insulated23 *Source: McKinsey &amp; Company </li><li> 24. Owens Corning Financial Strategies Financial performance and discipline Strong operating cash flow to support growth andinnovation Continual focus on return on net assets in excess ofcost of capital Balanced use of free cash flow Maintain strong balance sheet and ample liquidity Disciplined capital investment to maintain the corebusiness and to grow through international opportunities Support shareholder returns 24 </li><li> 25. Differentiate, Perform,Grow Questions &amp; DiscussionDuncan PalmerChief Financial OfficerNovember 18, 2008 Imperial Capital Conference </li><li> 26. Appendix </li><li> 27. Key Financial Data Q3 YTD Q3 YTD($ in millions, except per share data) Q3-2008Q3-2007 2008 2007Net sales 1,629 1,2684,5563,674Net earnings (loss)* (810)112(794)142Earnings (loss) from continuing operations*(810) 38(794) 67Earnings from discontinued operations -74- 75EPS (diluted) from continuing operations* (6.36) 0.30(6.17)0.52EPS (diluted) from discontinued operations-0.57- 0.58EBIT from continuing operations 98 83181191Adjusted EBIT from continuing operations111 102242253Adjusted EPS (diluted) from continuing0.72 0.42 1.06 0.89operationsAdjusted EBIT as a % of sales7% 8% 5% 7%Marketing and administrative expenses 151 102458365D&amp;A from continuing operations84 83240234Debt, net of cash 2,014 1,9152,0141,915 *Includes Impact of Income Tax Valuation Allowance of $899 million 27 </li><li> 28. Q3 2008 Reconciliation from Adjusted EBITto EBIT 150$(20)$16 $111120 $(6) $(2) $(1) $98 EBIT ($MM)90 60 300st s r tsIT e ehe IT nsnsosEB Co Ot EB peperCdn d 08xx ste the oan ct iyEeE 20dju uitets dO saasQ3n seAq an ra As lLeE 08 n/T et a ing of20 nc r ioe les Q3sMct uratrgSameiou trute gn ecs E n soRenIeePrloyaintio et i N p uis G Em cq A28 </li><li> 29. Adjusted EBIT($MM)050 100 150 200Q220 08Ro$77 of in g andA Co spmh poaltsi te $58Solu tio nsBu siInn sues sla tin g $(17) Sy stO emths eB rB usinuild e in ssgM$(7)ateria ls &amp;Services $2 Cor po ra Q3 2008 Compared with Q2 2008te $(2) Adjusted EBIT by Business SegmentQ320 08$111 29 </li><li> 30. Other Building Materials &amp; Services Q3 2008 Highlights($ in millions)Q3 2008Q3 2007 % Change Masonry products continued to face weakNet sales* 67 78 (14)% construction-related demand leading to EBIT (3)7 (143)% majority of the sales and EBIT declineEBIT as % of (4) %9% Basement finishing and SunSuites salessales down due to weak consumer credit markets EBIT as % of (2) %8% and impact on home remodelingall segments D&amp;A 3 4(25)% *Net sales before inter-segment eliminationsQ3 2008 YTD Revenue by End MarketFour-Year and LTM Financial Performance*SalesEBIT as % of SalesInternational 15% $1,6008% U.S. &amp; Canada $1,2004%Commercial &amp; U.S. &amp; CanadaIndustrialNew Residential 18% $8000% Construction50% $400-4% U.S. &amp; Canada $0-8% Residential Repair 2004 2005 2006 2007LTM&amp; Remodeling 17%Company estimates *2004 is not recast for the effect of discontinued operations 30 </li><li> 31. Other Items Energy used in manufacturing Represents about 10% of cost of sales About 60% natural gas, 30% electricity, 10% other Capital expenditures estimated to be somewhat higher than $350 million in 2008 Liquidity position remains strong Net Debt is currently expected to be at or close to last years level of $1.9 billion at years end31 </li><li> 32. Share Buy-Back Program Announced a share buy-back program in the first quarter of 2007 Authorized to repurchase up to 5%, approximately 6.5 million shares, of Owens Corning outstanding stock During Q3 Owens Corning repurchased 1.9 million shares of the Companys common stock at an average price paid of $22.23 Through September 2008, Owens Corning repurchased approximately 2.9 million shares of the Companys common stock at an average price of $22.70 per share As of September 30, 2008, the company has about 3.6 million shares remaining available for repurchase under the current authorization 32 </li></ol>

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