2. Forward-Looking Statements and
Non-GAAP Measures
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 present our current forecasts and estimates of future events. 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: economic
and political conditions, including new legislation or other governmental actions; levels of residential and
commercial construction activity; competitive factors; pricing pressures; weather conditions; our level of
indebtedness; industry and economic conditions that adversely affect the market and operating
conditions of our customers, suppliers or lenders; availability and cost of energy and materials;
availability and cost of credit; interest rate movements; issues involving implementation of acquisitions,
divestitures and joint ventures; our ability to use our net operating loss carryforwards; achievement of
expected synergies, cost reductions and/or productivity improvements; issues involving implementation
of new business systems; foreign exchange fluctuations; the success of research and development
activities; difficulties in managing production capacity; labor disputes; and factors detailed from time to
time in the Company’s Securities and Exchange Commission filings. The information in this presentation
speaks as of the date March 18, 2009 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 February 18, 2009.
2
3. Owens Corning’s Key Themes
• Delivered strong operating results in 2008
– $290 million Adjusted EBIT, D&A of $331 million ($621 million Adjusted EBITDA)
– Generated $34 million positive free cash flow*
– Significantly better performance vs. last recession (2002)
• 2002**: 1.7 million housing starts – Adj. EBIT $300 million and D&A of $205 million
• 2008: 900,000 housing starts – Adj. EBIT $290 million and D&A of $331 million
– Completed successful integration of Composites acquisition
• Aggressively managing the business through the down cycle
– Expect to have positive free cash flow in 2009
– Positioning the company for strong post-recession performance
• Three valuable business franchises: Composites, Insulation,
Roofing and Asphalt
– All have leading positions in their respective markets
– Capable of combined through-the-cycle EBITDA of $1 billion-plus performance
– Provides excellent diversification in end-use markets, with global presence
Resilient cash generation and enduring value built on three powerful businesses
* Change in net debt plus cash used for stock repurchases
3
* * 2002 financial information provided as filed in 2004 10-K
5. Strong Performance in 2008
• Exceeded our initial guidance and targets: Adjusted EBIT of $290 million
– Composites
• Integrated acquisition
• Maintained share and generated synergies of $50 million
• Delivered 10% EBIT margin for the first nine months of 2008
– Roofing and Asphalt
• Delivered record earnings
• Achieved gains through streamlined asset base, manufacturing efficiencies and pricing
actions that outpaced inflation
– Insulation
• Delivered positive earnings in historically weak housing market
• Took aggressive actions to reduce production capacity and align cost structure to market
demand
• Delivered $100 million in cost savings in advance of the global economic
downturn
– Reduced active number of employees by 2,300 since end of 2007
• Reduced precious metal lease exposure by $300 million through
operational improvements
– Acquired lease portfolio expected to be reduced to zero by March 2009
5
– Further operational improvements will be delivered in the next 12-18 months
6. Strong Liquidity within Existing Facilities; Comfortable
Position with Respect to Covenants & Refinancing
• Plenty of “head-room” with respect to covenants for senior revolving
credit facility
Leverage Ratio 43.5% * 65%
As of Dec. 31, 2008 Maximum Allowed
Interest Expense 4.9x* for 2008 2.0x
Coverage Ratio Minimum Required
• Ample liquidity to meet financial obligations and support global
growth strategy
– $615 million available in senior revolving credit facility with $236 million cash on
hand, at year-end 2008
– Cash coupled with future cash flows and other sources of liquidity expected to
provide sufficient liquidity to meet cash requirements
– No significant debt maturities until Q4 2011
6
* Company calculations for compliance certificate
8. This is a “Composite”
An engineered material system…
+ Other Materials
Reinforcements
• Resins
• Additives
Glass Other
95%* • Filler
…resulting in unique attributes replacing traditional materials
High Strength Light Weight Non-Conductive
Durable
Up to 50% Lighter
Longer Blades Non-Corrosive Safety
Than Steel
8
Source: Owens Corning
9. Composites
Global Leadership in a high-growth industry
• High-growth markets driving glass fiber demand 1.5 to 2x global GDP
growth
• Global asset base serves as a platform for growth to meet the needs
of our customers
• Global product offerings that sustain a premium price in many markets
• Resources to deliver innovation and create new opportunities for growth
• Will deliver sustained EBIT margin performance in the low teens
9
10. Composites
Global Glass Fiber Demand History
Long term growth of 5%+ = 1.5 – 2x global GDP -9%
4,000
+7% CAGR +4% CAGR +5% CAGR
Anticipated
Downturns
-7%
3,000
0% Asia
-2%
Demand (kt)
2,000
ROW
1,000
Growth Drivers: Shingles Pipe RTP/Lam Shingle/China
Key Innovation: Pipe RTP/Lam Shingle Wind Blades
0
1981 1986 1991 1996 2001 2006
• Previous downturns less than 24 mos., followed by mid-single digit growth
• Application innovation & emerging markets drive growth
10
Source: Industry publications and Owens Corning estimates
12. Composites EBIT Margin
Acquisition
of Vetrotex
15%
10 year average (9%)
12% *
4%
EBIT Margin
9%
14%
6%
10% 10% 10%
10% 9% 9%
9%
8% 7%
3%
3%
0%
**
99
00
01
02
03
04
05
06
07
08
in
19
20
20
20
20
20
20
20
20
20
g
ar
M
g
Av
T
L-
We will deliver low-teen EBIT margins
* 4% increase in EBIT margin resulting from acquisition synergies ($100MM on $2.5B revenue)
** 10-year average + acquisition synergies
12
Source: Company SEC Filings and management estimates, comparability may differ over time
14. Roofing and Asphalt
U.S. Industry Consolidation
70s 80s 90s Current
FRY/OC OC OC OC
GAF/ELK
GAF GAF GAF
ELK ELK ELK
CERTAINTEED CERTAINTEED CERTAINTEED CERTAINTEED
TAMKO TAMKO TAMKO TAMKO
CELOTEX CELOTEX
MANVILLE MANVILLE
IKO IKO IKO IKO
GLOBE GLOBE
BIRD BIRD
ATLAS ATLAS ATLAS ATLAS
GEORGIA PACIFIC GEORGIA PACIFIC GEORGIA PACIFIC
FLINTKOTE FLINTKOTE GENSTAR (Flintkote)
PABCO PABCO PABCO PABCO
MALARKEY MALARKEY MALARKEY MALARKEY
LUNDAY THAGARD LUNDAY THAGARD
BIG CHIEF
BEAR
REGIONAL1
REGIONAL2
REGIONAL3
90% 16 13 9 4
Total 21 16 11 8
A favorable industry structure for the future
14
Source: Management estimates and industry sources and publications
16. Roofing and Asphalt
Delivering Sustained Margin Performance
• Enduring improvements to our cost position
– Sold underperforming assets
– Redesigned the shingle for significantly lower cost
– Improved energy efficiency and manufacturing productivity
• Effective price discipline throughout 2008
– Price increases offset asphalt inflation by end of Q3
– Margins increased in Q4
• Mix improvement to enhance average margin
– Increased sales of premium Duration shingles
– Greater focus on roofing accessories
• Double-digit EBIT margins are sustainable
– Favorable industry structure
– OC margins have now matched and exceeded competitors’ levels*
– Asphalt prices remain higher than historic averages
* Management estimates
16
17. 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
17
18. Insulation EBIT Margin
25%
2.50
24 yr. avg. EBIT margin
20%
EBIT Margin %
Starts (mil)
2.00
15%
1.50
10%
1.00
5%
0.50 0%
'85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07
Starts (single, multi, and mfg housing) EBIT %
• 20% EBIT margins demonstrated during periods of strong housing demand
• 15% EBIT average over 24-year period
18
Source: Management estimates, company filings and U.S. Census Bureau. Comparability may differ over time.
19. Insulation
A proven long-term franchise
• The leading market position in North America residential and
commercial and industrial fiberglass insulation
– Three producers represent about 80% of market
• Positive demographics and energy-efficiency policy will drive market
recovery
• Our customer and channel diversity provides us an advantage, in all
market conditions
• Energy efficiency and U.S. stimulus will increase demand
– Buildings are #1 user of energy in U.S.
– Stricter building codes will drive improved efficiency and demand
– Nearly 80 million homes in U.S. under-insulated
Source: Management estimates 19
20. 2009 American Recovery and Reinvestment Act:
Key Energy Efficiency & Green Energy Provisions
Owens Corning Actions
Provision
• Existing Home Tax Credit Aggressive marketing campaign
– 30% credit up to $1,500
Increased training for installers
– Requires compliance with IECC 2009 codes
Coordinated promotions with retailers
• Low Income Weatherization Develop public/private state programs
– $5 billion through October 1, 2010
Engage 900 Community Agencies
– Expands eligibility to 200% of poverty level
Promote attic insulation as first thing to do
Introduce wall solution
• Wind Energy Development Continued technological innovation
– Extended production tax credit
Maintain leading market share
– Investment tax credit introduced
Continue to develop specialty applications
– Credits can be redeemed at U.S.
Treasury for cash
Owens Corning is positioned to benefit from the provisions of this legislation
20
21. Owens Corning through-the-cycle EBITDA
Owens Corning’s core franchises are capable of through-the-cycle EBITDA of $1B+
Normalized
EBIT
Margin Range Revenue EBIT (MM) Description
• Improved industry structure
Roofing
– Top 4 producers supply about 90% of demand
8% $160 • About 75% of demand from repair & remodel
x = • Sustainable business improvements
$2.0B
10% 200
– Manufacturing gains
12% 240
– Improved product mix
Insulation • Long-term EBIT margins average 15%
12% $240 • Limited new industry capacity and significant
barriers to entry
x =
15% 300
$2.0B
• Top 3 producers supply about 80% of North
20% 400 America fiberglass demand
• “Green” initiatives and stimulus plan will improve
demand
Composites • Exposure to higher growth markets: 1.5 –
2.0x global GDP growth
$250
10%
• Market consolidation and product innovation
x = 300
$2.5B
12% leading to double-digit margins
350 • Synergies from acquisition drive EBIT
14%
margins to low teens
Other (1) EBITDA
Total
$6.5B + $350 - $400 = $1.0B to 1.4B
$650 - $990
(1) Includes Depreciation & Amortization, Other Building Materials & Services and Corporate Expenses
Assumes return to projected normal / mid-cycle demand environment
21
Source: Management estimates
22. In Summary:
Owens Corning’s Business Portfolio
• Three valuable business franchises with market-leading
positions in their respective industries
• All three franchises are well positioned for strong earnings
growth when the business cycle turns up
• OC is actively driving, and is positioned to benefit from, world-
wide energy policy initiatives
• OC has a balanced business portfolio with limited exposure to
any one market and is capable of generating cash in today’s
severe market conditions
Capable of through-the-cycle EBITDA of $1 billion +
22
23. Owens Corning’s 2009 Market Outlook
• Free cash flow positive
• Aggressive management of costs, headcount, capacity and
capital
• Favorable momentum in roofing business continues
• Prolonged weakness in insulation business
• Weak start for Composites, with improvement through the year
23
