owens corning roadshow toronto

Owens Corning Positioned for Growth

Investor Visits June 14, 2013 - Toronto, Canada

Mike Thaman Thierry Denis Chief Executive Officer Director Investor Relations

2

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 meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are any statements that are not historical facts, and they are based upon the Company’s current expectations. Because forward-looking statements involve risks and uncertainties, the Company’s actual results could differ materially from those projected in these statements. Information regarding some of the risks and uncertainties that could cause such differences can be found in the Company’s Securities and Exchange Commission (“SEC”) filings, including under Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

For purposes of this presentation, any discussion referring to “year to date” or last twelve months (“LTM”) refers to the period ended March 31, 2013. Otherwise the information in this presentation speaks as of June 14, 2013, 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 June 14, 2013 is not intended and will not be construed as updating or confirming such information.

This presentation contains references to certain "non-GAAP financial measures" as defined by the SEC. 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 furnished to the SEC on April 24, 2013. This Form 8-K and additional Company information is available on the Owens Corning website: www.owenscorning.com. Free cash flow is the change in net debt excluding the cash impact of issuing new stock, repurchasing treasury stock, and paying stockholder dividends. Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, net precious metal lease expense, and other items that management does not allocate to our segment results because it believes they are not a result of the Company’s current operations.

THE PINK PANTHER™ © 1964-2012 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The color PINK is a registered trademark of Owens Corning. © 2012 Owens Corning.

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Owens Corning at a Glance

Founded in 1938, an industry leader in glass fiber insulation, roofing and glass fiber reinforcements

2012 sales: $5.2 billion

15,000 employees in 27 countries

Fortune 500 company for 59 consecutive years

Component of Dow Jones Sustainability World Index

Three powerful businesses, three valuable franchises

– Insulation – Roofing – Composites

3

Investment Highlights

The Insulation business is a proven franchise prepared to return to historic margins

The Roofing business is positioned for growth as the U.S. housing market recovers

The Composites business is the leader in an attractive growth industry

4

Margin >= 10% 0%<= Margin < 10% Margin < 0%

Strong Portfolio Positioned for Growth

Insulation

Roofing

Composites

’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘12

Sources: Owens Corning’s SEC filings since 2006. For comparability purposes, prior years have been provided based on Owens Corning’s SEC filings, internal management reports, and management estimates 5

2012 Revenue by End Market*

$ (in millions) Q1 2013

Q1 2012 Change

Net sales* $330 $331 $(1)

EBIT $(21) $(34) $13

EBIT as % of sales (6)% (10)% 4%

D&A $26 $25 $1

6

Insulation Business

* before inter-segment eliminations

Q1 2013 Highlights Improved EBIT by $13 million

Realized meaningful pricing improvement across the business

Insulation volumes in the U.S. new residential construction market are tracking U.S. housing starts

Expect return to profitability for full-year 2013

-10%

-5%

0%

5%

10%

$0

$500

$1,000

$1,500

$2,000

2009 2010 2011 2012 LTM

Five-Year Financial Performance

Sales* EBIT as % of sales *In millions

International 19%

U.S. & Canada New Residential

Construction 37%

U.S .& Canada Residential Repair

& Remodeling 20%

U.S. & Canada Commercial & Industrial

24%

*Owens Corning management estimates

Source: Owens Corning management estimates and Owens Corning SEC filings; comparability may differ over time

Positioned to Grow with Our Markets

7 Source: Owens Corning management estimates as of Feb 2013

Insulation End-Use Markets

% of 2012 Revenue

Expected Market Growth Drivers

Revenue CAGR 2011 – 2014

U.S. & Canada Residential New

Construction 37%

10-25%

U.S. & Canada Repair & Remodel

20% > 5%


24%

5-10%

Latin America & Asia Pacific

19% 5-10%

Housing starts Building energy code adoption Household formation

Aging housing stock Energy efficiency policies

Code and “green” specification driven

Owner operator focus

Growing middle class Infrastructure improvements Urbanization of China

Expect Double-Digit Revenue Growth as Market Recovers

8 Sources: Pacific Northwest National Laboratory, and Owens Corning management estimates as of Feb 2013 IECC – International Energy Conservation Code

Residential Energy Productivity

Acceleration of Code Adoption 2006-2015 Drives Demand for Insulation Products

2009 – 49% Built to 2006 Code 2012 – 85% Built to 2009 Code 2015 – Expect 57% Build to 2012 Code

0%

50%

100%

150%

no code 1987 2006 2009 2012 2015

Ener

gy E

ffici

ency

Impr

ovem

ent (

%)

Energy Codes

Year of Code IECC IECC IECC IECC

Goal

0.5

1

1.5

2005 2012 2016

Demand per start at forecasted code adoption level

9

Inde

xed

Fibe

rgla

ss In

sula

tion

Use

* US Census Bureau ** SF home size 2012 Q1-Q3 average Sources: North American Home Builders; US Census Bureau; Owens Corning management estimates as of Feb 2013

Potential demand per start if 2012 codes are adopted by all states

Multi-family mix 17% 31% 20-25% Single family home size (SF) 2,462 2,509** ~2,500 % Owner/Contractor built* 19% 24% 20-25%

Code Adoption and Improving Single- / Multi-Family Mix Drives Insulation Demand Growth of 25% or more from 2012-2016

Code Changes Support Increased Glass Fiber Demand

Eloy

Santa Clara

Toronto

Edmonton

Newark Kansas City

Waxahachie

Delmar

Fairburn

Continued Discipline in Capacity Management

Current Status: All lines operating Some lines down Facility mothballed

Mt. Vernon

Candiac

Capacity utilization based as of January 1, 2013, light density insulation Source: Owens Corning management estimates

Nephi

Lakeland

Salt Lake City

Owens Corning Insulation North American Fiberglass Network

Network Management National footprint to

support regional demand recovery

10

60% 70%

90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Capacity Operating Plants Operating Lines

Insulation Industry North American Fiberglass

11

2013 Industry Capacity Utilization

Capacity Utilization Tightening as U.S. Housing Recovers

Capacity utilization based on 2013 estimate at 990,000 unlagged U.S. housing starts (Source: Feb 2013 Blue Chip consensus), light-density insulation.. Source: Owens Corning management estimates as of Feb 2013

-10%

0%

10%

20%

30%

'85 '88 '91 '94 '97 '00 '03 '06 '09 '12

% EBIT Avg % EBIT (15%)

Owens Corning Insulation A Proven Franchise

12 Source: Owens Corning management estimates and Owens Corning SEC filings, comparability may differ over time

Historically Delivered 15% EBIT Margins at 1.5 Million Housing Starts

Well positioned to return to

historical margins

Improved cost and efficiency

Code adoption

Expected U.S. housing improvement



Q1 2012 Change

Net sales* $607 $588 $19

EBIT $119 $83 $36

EBIT as % of sales 20% 14% 6%

D&A $10 $9 $1

13

Roofing Business


Q1 2013 Highlights Achieved 20% EBIT margins

Effective price execution in Q1 resulted in improved profitability; Q2 price increase in effect

Maintain outlook on full-year market demand and expectation of improved margins over 2012

0%

5%

10%

15%

20%

25%

30%

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

2009 2010 2011 2012 LTM




Construction 11%

U.S. & Canada Residential Repair

& Remodeling 73% U.S. & Canada

Commercial & Industrial

16%



Source: Owens Corning management estimates and various industry sources and publications

U.S. Asphalt Shingle Industry Consolidation

14

Top 90% 16 13 10 4 Total 21 17 13 8

’70s ’80s ’90s Current OC FRY GAF ELK

CERTAINTEED TAMKO

CELOTEX MANVILLE

IKO BIRD

ATLAS GEORGIA PACIFIC

FLINTKOTE GLOBE PABCO

MALARKEY LUNDAY THAGARD CUSTOM ROOFING

BIG CHIEF BEAR

PHILIP CAREY

PABCO MALARKEY

LUNDAY THAGARD CUSTOM ROOFING

OC GAF ELK

CERTAINTEED TAMKO

CELOTEX MANVILLE

IKO BIRD


GENSTAR GLOBE

GLOBE PABCO

MALARKEY

OC GAF ELK

CERTAINTEED TAMKO

CELOTEX IKO


GS ROOFING

OC GAF/ELK

CERTAINTEED TAMKO

IKO ATLAS PABCO

MALARKEY

Favorable Industry Structure for the Future

33 33 30 31 32 34 37 39 35 26 17 11 11 11 14 26

106 107 103 109 110 113 116 116 112 100 96 93 91 93 94 104

5 3 3

3 2 7

8 18 8

3 22

17 6

19 11

9

0.0

7.5

0

180

'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 15 Yr. Avg

New Construction Re-roof Major Storms Total Existing Home Sales

U.S. Asphalt Shingle Market Improved Housing Supports Demand Growth

15

Recovery to 15-Year Average Represents a 20% Increase in Non-Storm Demand

Total 144 143 136 143 144 154 161 173 155 129 135 120 108 122 118 139

- 5% CAGR

+ 3%

Source: Asphalt Roofing Manufacturers Association, Summary of Asphalt Roofing Industry Shipments. National Association of Realtors existing home sales and Owens Corning management estimates

5.3

Positioned for Growth

Great business in a well-structured industry

Asphalt shingle market growing 5-8% (over the next 3-5 years on non-storm demand) driven by improving U.S. housing activity

Continued improvements in shingle design, cost and mix

Confidence in operating margins of mid-teens or better

16

Strong Business Performance with Market Growth Opportunities

Source: Owens Corning management estimates as of Feb 2013



Q1 2012 Change

Net sales* $459 $476 $(17)

EBIT $9 $23 $(14)

EBIT as % of sales 2% 5% (3)%

D&A $32 $30 $2

17

Composites Segment


Q1 2013 Highlights Lower production levels and input cost inflation

generated an unfavorable quarter-over-quarter comparison

Planned asset ramp-up complete; expect higher utilization rates throughout remainder of 2013

Full-year 2013 margins expected to exceed 2012

-5%

0%

5%

10%

15%

$0

$600

$1,200

$1,800

$2,400

2009 2010 2011 2012 LTM



International 62%


Construction 3%

U.S. & Canada Residential Repair

& Remodeling 9%


26%



Glass Fiber A $7 Billion Global Market

18

Construction 34%

Transportation 27%

Industrial 15%

Consumer 16%

Wind 8%

Glass reinforcements market defined as glass fiber reinforcements and direct conversion products as consumed, excluding yarns Source: Owens Corning management estimates as of Feb 2013

• Residential • Commercial • Water transportation

& storage

• Cars • Trucks, buses, trains • Marine

• Factories • Mining • Offshore platforms

• Appliances • Electronics • Recreation

A Key Material Enabling Solutions Essential to Everyday Life

-

1,000

2,000

3,000

4,000

5,000

1981 1989 1997 2005

Sustained Growth Led by Global Industrial Production and Material Substitution

Glass Fiber Market Demand 30 Years Averaging 5% CAGR

19

Gla

ss F

iber

K T

ons

Glass fiber market demand excludes E-glass yarns Sources: Fiber economic bureau, Glass Fiber Europe, Global Trade information Services, inc. and Owens Corning management estimates

5% Demand Growth Driven by 3% Industrial Production Growth

2012

20

0

0.9 1.1

1.6

3.8

Wood Steel Aluminum Glass Fiber Carbon Fiber

Global Glass Fiber Growth vs. Other Materials

Materials Growth as a Multiple of Change in Industrial Production

Global Market Size (Indexed to Glass Fiber)

26 55 12 1 0.15

Growth multiples over 1981-2012, except carbon fiber 1990-2012 and wood 1990-2011. Global market sizes estimated in revenue USD as of 2011 for wood, 2012 for others. Source: IHS Global Insight, Owens Corning management estimates, World Steel Association, Food and Agriculture Association of the United Nations, U.S. Geological Survey

Glass Fiber Growing as a Substitute for Traditional Materials

-150

-100

-50

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 100

110

120

130

140

150

160

170

180

190

200

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US PPI China PPI (USD basis)

Market Trends Favor Owens Corning Low-Cost Global Network

Change In Chinese Capacity Available For Export* China vs. U.S. inflation

21 * Chinese manufacturers, defined as CPIC, Jushi and Taishan, estimated capacity available for export Sources: IHS Global Insight, Owens Corning management estimates as of Feb 2013

Chinese Export Competitiveness Eroding

Gla

ss F

iber

K T

ons

0%

5%

10%

15%

20%

25%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Demand Outside China Served by Manufacturing in China

22 Source: Fiber Economic Bureau, Glass Fiber Europe, Global Trade Information Services, Inc. and Owens Corning management estimates Manufacturing in China defined as CPIC, Jushi and Taishan

Industry Structure Transformation Market Supply

China Exports Have Stabilized After Rapid Growth

Owens Corning Composites Positioned to Win

23

Sources: Owens Corning management estimates Definitions: EMEA: Europe, Middle East, Africa

% Market Revenue = market revenue in region as % of global market size % OC Revenue = OC revenue in region as % of OC Composites global 2012 sales Glass reinforcements market defined as glass fiber reinforcements and direct conversion products as consumed, excluding yarns

#1 Position

31%

49%

% Market Revenue

% OC Revenue

Americas

#1 Position

25% 24%

% Market Revenue

% OC Revenue

EMEA

Emerging Position

25%

7%

% Market Revenue

% OC Revenue

China

#1 Position

20% 17%

% Market Revenue

% OC Revenue

Other Asia

Leading Market Positions and an Unrivaled Supply Network

OC glass fiber manufacturing site OC downstream fabrication site

A Winning Business

24

Owens Corning Composites Global Capacity

Percentage of Low Delivered Cost * Assets

30% 60%

75%

Mid-2010s 2012 2007

*Low delivered cost asset defined as delivered cost in the region at or below best competitive benchmark, glass fiber manufacturing Source: Owens Corning management estimates as of Feb 2013

0.5

1.1 1.1

1.7

0.3 0.5

2005-09 2010-12 2013-16 Change in global demand (MM T) Change in global capacity (MM T)

0.1 / yr 0.3 / yr 0.4 / yr 0.1 / yr 0.3 / yr 0.1 / yr 50%

60%

70%

80%

90%

100%

110%

Estim

ated

Cap

acity

Util

izat

ion

Glass Fiber Industry Capacity

25

Glass Fiber Industry Estimated Capacity Utilization

Tighter Capacity Environment Glass fiber market demand excludes E-glass yarns Sources: Fiber economic bureau, Glass Fiber Europe, Global Trade information Services, inc. and Owens Corning management estimates as of Apr 2013

Supply Tension

Over 20% of global capacity will need to be rebuilt in China between 2013 and 2016

Owens Corning does not expect to add incremental melting capacity before 2015

(high probability additions)

2004 2006 2008 2010 2012 2014 2016

Chinese Emergence

Capacity Overbuild

Macro Adjustment

Excess Inventory

Supply Tension Return on

Capital

Glass Fiber Industry Phases Signs of a New Era

26

High Utilization Rates and Reinvestment Economics Support Higher Returns

2005 – 2009 2010 – 2012 2013 – 2016

Owens Corning Composites A Winning Business

Global megatrends, continued growth in industrial production, and ongoing material substitution support glass fiber market growth at a 5-7% CAGR

Proliferating proven low delivered cost model to further improve competitive position

Glass fiber reinvestment economics in China are changing, as costs increase, currency appreciates, and furnaces require rebuilding

Composites materials remain a great value vs. other materials

Our focus is on offsetting inflation and returning margins to levels that support investment

27 Source: Owens Corning management estimates as of Feb 2013 Low delivered cost asset defined as delivered cost in the region at or below best competitive benchmark, glass fiber manufacturing

Business Growing in an Attractive Market

Sustaining a Strong Balance Sheet

Maintaining investment-grade financial strength is a pillar of Owens Corning’s strategy

Earned investment-grade credit ratings from Standard & Poor's and Fitch

$800 million revolving credit facility maturing in 2016

$250 million accounts receivable facility, which matures in 2014

$1.8 billion senior notes outstanding with 2016, 2019, 2022 and 2036 maturities

Sustaining ample liquidity to support growth

Capital markets remain open to Owens Corning

28

Tax Position is a Significant Asset

Benefit from $2.3 billion NOL with estimated present value of approximately $5 per share

Expect long-term book tax rate of 25% to 28% based on geographic mix of earnings and tax planning

Cash tax rate approximately 10% to 12% over the next few years

29 Source: Owens Corning management estimates as of Feb 2013

Disciplined Capital Allocation Strategy

Drive shareholder returns by enabling organic growth and supporting the balance sheet

Maintain capital allocation strategy

– Current debt level is appropriate

– Pursuing attractive organic investment opportunities

– Seeking acquisitions that add value to shareholders

– Share buy-back: 10 million shares available for repurchase as of March 31, 2013

Continue to consider a dividend when U.S. housing recovers and Insulation returns to profitability

30

Key Financial Data

31

($ in millions, except per share data) Q1 2013 Q1 2012

Net sales $1,350 $1,346

Net earnings (loss) attributable to Owens Corning $22 $(46)

Diluted earnings (loss) per share attributable to Owens Corning common stockholders $0.18 $(0.38)

Earnings (loss) before interest and taxes (EBIT) $57 $(12)

Adjusted EBIT $77 $43

Adjusted Earnings $35 $11

Adjusted EPS (diluted) $0.29 $0.09

Adjusted EBIT as a % of sales 6% 3%

Marketing and administrative expenses $133 $137

Depreciation and amortization $78 $89

Cash flow used for operating activities $179 $193

Total debt, net of cash $2,253 $2,170

2013 Corporate Environment & Guidance

32

Macro Environment

U.S. housing starts generally forecasted in the range of 900,000-1,000,000

Moderate global industrial production growth driving below-trend growth in glass fiber market

Primary Guidance

Expect adjusted EBIT to grow at least $100MM with potential upside

Expect margin performance improvement in each business

Pace of U.S. housing recovery and its impact on Building Materials margins will likely determine upside to guidance

Corporate expenses of about $120MM Capital expenditures around $380MM,

including Kearny roofing plant rebuild Depreciation & amortization about $315MM Cash tax rate of 10-12% and book tax rate of

25-28% on adjusted pre-tax earnings

Source: Owens Corning management estimates as of Apr 2013

Other Guidance Items

2013 Business Environment & Guidance

33

Roofing Insulation Composites

2013 margins to exceed 2012 Return to profitability 2013 margins to exceed 2012

Lower winter incentives, announced price increases

Growth in U.S.

residential new construction

Growth potential

in re-roofing

Storm comps vs. last year

Growth in U.S. residential new construction Asset capacity

utilization to tighten in 2013 Improved pricing

Current prices significantly below historical average

Higher capacity utilization and benefit of asset transformation Global market

growth Growth in U.S.

residential new construction

Financial Guidance

Source: IHS Global Insights, Moody’s and Owens Corning management estimates as of Apr 2013

First-quarter asset ramp up Nominal prices

flat with continued inflation Uncertain pace

of recovery in Europe, Brazil and India