The document summarizes a presentation given by John Hillenbrand, Vice President and Chief Innovation Officer at Owens Corning, about the company's focus on sustainability and innovation. Some key points: - Owens Corning has a long history of innovation dating back to the 1930s and has developed many new fiberglass and building products. - The company sees sustainability and open innovation as interdependent and key to creating value for customers. - Recent innovations highlighted include EcoTouch insulation with high recycled content, and EnergyComplete sealant for reducing air leakage. - Lessons learned include engaging customers early, building partnerships through trust, committing to excellence, and differentiating through real science and innovation even in mature categories.

1. Business Confidential
Business Confidential
The Power of Innovation that Delivers
Green Without Compromise
Chief Innovation Officers Summit – San Francisco
June 18, 2014
John Hillenbrand
Vice President and Chief Innovation Officer
Copyright © 2014 Owens Corning.
All Rights Reserved.

2. Business Confidential
• Background – a Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples
– EcoTouch® Insulation
– EnergyComplete® Sealant
– Shingle Recycling
• Lessons Learned
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Preview

3. Owens-Illinois
Founded 1938
Our Brand Today
OC COMPANY CONFIDENTIAL – DO NOT DISTRIBUTE
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4. Business Confidential
1940s, bomber
insulation
1960s, beta yarn
for space suits
2000s, wind blade
energy
1970s, cold-top
electric melter
1980s, fiberglass
mat for shingles
2010s, EcoTouch® insulation,
EnergyComplete® sealant
1990s, Advantex®
glass fibers
1950s, fiberglass
and Corvette
1930s, continuous
glass fibers
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A Heritage of Innovation

5. Business Confidential
• Background – a Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples
– EcoTouch® Insulation
– EnergyComplete® Sealant
– Shingle Recycling
• Lessons Learned
5
Outline

6. Business Confidential
• Founded in 1938, an industry leader in glass
fiber insulation, roofing and glass fiber
reinforcements
• 2013 sales of $5.3 billion
• 15,000 employees in 27 countries
• Fortune® 500 firm for 60 consecutive years
• Component of Dow Jones Sustainability
World Index
• Three powerful businesses, three valuable
franchises
• Insulation
• Roofing
• Composites
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2014 – Owens Corning At A Glance

7. Business Confidential
Composite SolutionsComposite Solutions

8. Business Confidential
Glass Melting
Fiberizing
Sizing
Chemistry
Mixing
Batch
Drying
Curing
Chopped
Fibers
Continuous
Fibers
Mats
Fabrics
Business Confidential
Delivering lightweight strength, performance and durability to a variety of applications
Composites – Essential to Everyday Life
Our materials science, processes and products that our
customers turn into composite parts

9. Business Confidential
Building MaterialsThe color PINK is a registered trademark of Owens Corning.

10. Business Confidential
Delivering benefits in energy efficiency, acoustics, and comfort
The color PINK is a registered trademark of Owens Corning.
Business Confidential
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Solutions for Homes and
Commercial Buildings

11. Business Confidential
• Background – a Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples
– EcoTouch® Insulation
– EnergyComplete® Sealant
– Shingle Recycling
• Lessons Learned
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Outline

12. Business Confidential
Sustainability – Macro Trends
• Massive opportunities in our markets
– Soaring interest in energy efficiency – public and private
– Consumer desire to achieve personal sustainability
– Green building and renewables demand
• Pink is Green® – key element of our business strategy
Population Growth
and Consumption
Climate Consciousness Energy / Water Use
and Availability
Scalable solutions needed to address these global challenges
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13. Business Confidential
Creating Competitive Advantage
through Sustainability and Innovation
• Sustainability – Meeting the needs of the present without
compromising the world that we leave to the future
• Innovation – Turning knowledge into value for our
customers and Owens Corning
• Open Innovation – Turning others’ knowledge into value for
our customers and Owens Corning
Source: Adapted from the U.N. World Commission on Environment and Development,
in its final document - generally known as the Brundtland Report (1983-1987)
The interdependency of sustainability and innovation
presents a significant value creation opportunity
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14. Business Confidential
Driving to be a net-positive company
1. Operations sustainability
2. Product and supply chain sustainability
3. Innovation and collaboration to deliver energy
efficiency and durable material solutions at scale
4. Health and safety, employee engagement and
community vitality
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Sustainability – Our (Evolving) Strategy
Continuously shrinking our environmental footprint and …
exponentially growing our positive handprint

15. Business Confidential
Our Aspiration – an Innovation Powerhouse
Driving a Growth Premium and a Margin Premium for our Company
Strengthen and Renew our CORE BUSINESSES
Create New GROWTH PLATFORMS
Starts with TOP INNOVATIVE TALENT who love
to create and apply materials, manufacturing,
and building science with imagination and
teamwork that help our customers win
Be the preferred GROWTH PARTNER where
our customers consider Owens Corning to be
the CLEAR INNOVATION LEADER in
Building Materials & Composites
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16. Business Confidential
• Background – a Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples
– EcoTouch® Insulation
– EnergyComplete® Sealant
– Shingle Recycling
• Lessons Learned
16
Outline

17. Business Confidential
EcoTouch® Insulation
with PureFiber® Technology

18. Business Confidential
Green Without Compromise
 Saves energy
 58% recycled content (36% post consumer)1
 99% natural materials (minerals & plant-based)2
 Formaldehyde free
 Multi-attribute environmentally preferable
Green is well defined, science based, and third party certified
1 Certified by Scientific Certifications Systems to have a minimum of 58% recycled content with at least 36% post-consumer
recycled and the balance of pre-consumer recycled content.
2 Made with a minimum of 99.4% by weight natural materials consisting of minerals and plant-based compounds. 18

19. Business Confidential
EcoTouch® Insulation
commercial

20. Business Confidential
The Building Science of Air Leakage
Troublespotsfor air leakage*: OwensCorninghasidentified themost important
areastoseal – includingthreewherecreatinga
gasket iskey:
EnergyComplete® sealant formsa gasket in these
areas, reducingair leakage.
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Source: Whole House Air Infiltration Study by Dr. Gren Yuill, Penn State University

21. Business Confidential
Who Would You Rather Have in Your Home?
We think there’s a safer, more cost effective, and more sustainable way to
make your home more comfortable, quiet, and energy efficient
or…

22. Business Confidential
Shingle Recycling
We make shingle recycling easy and cost-competitive, by
connecting contractors with eligible recycling services
Criteria – It’s easy
– Contractors find an eligible recycler at www.Earth911.com
– Pledge to recycle at www.roofing.owenscorning.com/recycle
Benefits
– Leads identified on Contractor Locator
and homeowner promotional programs
– Recycling discounts available
– Marketing tools
– Convenient drop-off or dumpster delivery
Results1
– 100+ open markets
– 60% population coverage
– 10% waste stream recycled in 2013 – 1 million tons
– Contractors save 30% compared to landfill fees
1 Owens Corning Roofing and Asphalt results and estimates, March 2013.
Hot Mix Asphalt
Grind
Drop
Tear-Off
Road Paving
Recycled Shingles
Our shingles are now labeled as recyclable!

23. Business Confidential
• Background – a Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples
– EcoTouch® Insulation
– EnergyComplete® Sealant
– Shingle Recycling
• Lessons Learned
23
Outline

24. Business Confidential
• When you engage and enroll your customers early and often,
you just might learn something.
• You can never know too much about your customers, the value
chain, and the competitive landscape.
• Listening to your customers is necessary, but not sufficient;
you bring power to the relationship through an imaginative
understanding of their needs.
• And when it comes to being viewed as an industry leader,
the only voices that really matter are those of your customers.
Delivering Green Without Compromise
Lessons Learned – Customers
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25. Business Confidential
• Partnerships are about access, not control.
• A thoughtful and well-written Joint Development Agreement may
be worth the effort versus a simple Confidentiality Agreement.
• Your initial attraction to a partner might be their unique technology
or channel access, but lasting partnerships are built on a
foundation of mutual trust and cultural fit.
• Find partners who can contribute to multiple growth opportunities.
• For truly business-critical initiatives, demand a dedicated team
and dedicated leader (a.k.a. supervising executive) – and ensure
your partner is equally committed and resourced.
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Delivering Green Without Compromise
Lessons Learned – Partnerships

26. Business Confidential
• If you’re not the first to market, you’d better commit to being
the best.
• Know your limitations and face reality.
• Open Innovation is neither free nor easy – and don’t expect
it to take only one big success for everyone to “get it.”
• To maximize the impact of an innovation, there’s no substitute
for real science – particularly science that has IP protection.
• Don’t underestimate the challenges of bringing a new-to-the-world
solution to the market.
• If you believe you’re a commodity, you’re right. There are plenty
of opportunities to innovate and differentiate versus competition,
even in the category you created 75+ years ago.
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Delivering Green Without Compromise
Lessons Learned – Organization

27. Business Confidential
Thank you
The Pink Panther™ © 1964-2013 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The color PINK is a registered trademark of Owens Corning. ©2013 Owens Corning. All Rights Reserved.
THE PINK PANTHER™ & © 1964–2014 Metro-Goldwyn-Mayer Studios Inc. All
Rights Reserved. The color PINK is a registered trademark of Owens Corning.