1. Owens Corning
Positioned for Growth
Investor Visits Hosted by CL King & Associates
June 17-18, 2013 - New York, NY
Thierry Denis Adam Bayer
Director Investor Relations Leader Investor Relations
3. 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
4. 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
5. 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
6. 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
7. Positioned to Grow with Our Markets
7Source: 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%
U.S. & Canada
Commercial
& Industrial
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. 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
EnergyEfficiencyImprovement(%)
Energy Codes
Year of
CodeIECC IECC IECC IECC
Goal
9. 0.5
1
1.5
2005 2012 2016
Demand per start at forecasted code adoption level
9
IndexedFiberglassInsulationUse
* 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
10. Eloy
Santa Clara
Toronto
Edmonton
NewarkKansas 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
11. 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
12. -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
12Source: 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
13. 2012 Revenue by End Market*
$ (in millions)
Q1
2013
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
* before inter-segment eliminations
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
Five-Year Financial Performance
Sales* EBIT as % of sales
*In millions
U.S. & Canada
New Residential
Construction
11%
U.S. & Canada
Residential Repair
& Remodeling
73% U.S. & Canada
Commercial
& Industrial
16%
*Owens Corning management estimates
Source: Owens Corning management estimates and Owens Corning SEC filings; comparability may differ over time
14. 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
ATLAS
GEORGIA PACIFIC
GENSTAR
GLOBE
GLOBE
PABCO
MALARKEY
OC
GAF
ELK
CERTAINTEED
TAMKO
CELOTEX
IKO
ATLAS
GEORGIA PACIFIC
GS ROOFING
OC
GAF/ELK
CERTAINTEED
TAMKO
IKO
ATLAS
PABCO
MALARKEY
Favorable Industry Structure for the Future
15. 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
16. 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
17. 2012 Revenue by End Market*
$ (in millions)
Q1
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
* before inter-segment eliminations
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
Five-Year Financial Performance
Sales* EBIT as % of sales
*In millions
International
62%
U.S. & Canada
New Residential
Construction
3%
U.S. & Canada
Residential Repair
& Remodeling
9%
U.S. & Canada
Commercial
& Industrial
26%
*Owens Corning management estimates
Source: Owens Corning management estimates and Owens Corning SEC filings; comparability may differ over time
18. 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
19. -
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
GlassFiberKTons
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. 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
21. -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
GlassFiberKTons
22. 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
23. 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
24. A Winning Business
24
Owens Corning Composites Global Capacity
Percentage of Low Delivered Cost * Assets
30%
60%
75%
Mid-2010s20122007
*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
25. 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%
EstimatedCapacityUtilization
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
27. 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
28. 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
29. Tax Position is a Significant Asset
Benefit from $2.3 billion NOL with estimated present value
of approximately $5 per share
Expect long-term book tax rate of 25% to 28% based
on geographic mix of earnings and tax planning
Cash tax rate approximately 10% to 12% over the next few years
29Source: Owens Corning management estimates as of Feb 2013
30. Disciplined Capital Allocation Strategy
Drive shareholder returns by enabling organic growth
and supporting the balance sheet
Maintain capital allocation strategy
– Current debt level is appropriate
– Pursuing attractive organic investment opportunities
– Seeking acquisitions that add value to shareholders
– Share buy-back: 10 million shares available for repurchase as of
March 31, 2013
Continue to consider a dividend when U.S. housing recovers and
Insulation returns to profitability
30
31. Key Financial Data
31
($ 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
32. 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
33. 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