Owens Corning (OC) 2025 Investor Day Summary Company Overview - **Company**: Owens Corning (OC) - **Event**: 2025 Investor Day - **Date**: May 14, 2025 - **Location**: Toledo, Ohio Core Industry and Market Focus - **Industry**: Building Products - **Geographic Focus**: North America and Europe - **Total Addressable Market**: $95 billion, with OC holding an 11% market share - **Recent Acquisition**: Masonite, adding approximately $30 billion to addressable market Key Financial Highlights - **Revenue Growth**: Average annual revenue growth of 9% since 2021, with a 4% organic CAGR - **EBIT Margin Improvement**: Average adjusted EBIT margin expanded by nearly 500 basis points - **Free Cash Flow Return**: 63% of free cash flow returned to shareholders from 2022 to 2024 - **Adjusted EBITDA Margins**: Consistently above 20% for 19 consecutive quarters - **Total Cash Returned to Shareholders**: $3.6 billion since 2019 Strategic Initiatives and Performance - **Focus on High-Value Products**: Shift towards high-value building products, particularly in roofing and insulation - **Operational Efficiency**: Continuous improvement in manufacturing and supply chain efficiency - **Investment in Innovation**: Over 150 new or refreshed products launched in the last three years, contributing to 20% of revenues - **Contractor Engagement Model**: Building strong relationships with contractors to drive demand and loyalty Market Trends and Growth Drivers - **Aging Housing Stock**: Both the U.S. and Europe face aging and underbuilt residential housing stock, increasing demand for building products - **Energy Efficiency Demand**: Rising demand for energy-efficient solutions, particularly in insulation - **Non-Discretionary Reroofing**: Over 80% of roofing demand driven by non-discretionary reroofing activities Future Outlook - **Revenue Target**: Expected revenue growth to $12.5 billion by 2028 - **EBITDA Margin Target**: Anticipated adjusted EBITDA margins in the mid-twenty percent range - **Free Cash Flow Generation**: Projected generation of over $5 billion in free cash flow through 2028 Unique Competitive Advantages - **Brand Recognition**: The Owens Corning brand, symbolized by the Pink Panther, is highly trusted among consumers and contractors - **Commercial Strength**: Strong relationships with contractors and a broad distribution network enhance market position - **Technological Leadership**: Continuous investment in R&D and process innovation to maintain competitive edge Additional Insights - **Operational Playbook**: A structured approach to optimize operations and drive cost efficiencies across all business segments - **Market Positioning**: Focus on essential branded building products, leveraging local manufacturing and materials to meet specific market needs - **Sustainability Commitment**: Emphasis on energy-efficient solutions aligns with broader market trends towards sustainability Conclusion - **Company's Vision**: Owens Corning is positioned to outperform the market through strategic investments, operational excellence, and a strong commitment to customer success, with a clear path for future growth and profitability.

Group 1: Acquisition Details - Quaker Chemical Corporation (KWR) has completed the acquisition of Dipsol Chemicals Co., Ltd. for JPY 23 billion (approximately $153 million) [1] - Dipsol generated around $82 million in revenues for the 12 months ended December 31, 2024, with an acquisition multiple of about 10.5 times its trailing 12-month estimated adjusted EBITDA of approximately $15 million [2] - Additionally, KWR announced the acquisition of Natech, Ltd. for about 4 million GBP (approximately $5.2 million) [3] Group 2: Strategic Impact - The acquisitions of Dipsol and Natech strengthen KWR's market position and enhance its technical service model, broadening its product and service portfolio [4] - These acquisitions are expected to expand KWR's advanced solutions business in high-growth potential markets, providing significant opportunities for cross-selling and meeting global customer needs [4] Group 3: Financial Performance and Outlook - KWR's shares have decreased by 43.1% over the past year, contrasting with a 2.3% decline in the Zacks Chemicals Specialty industry [5] - The company aims to achieve sustained growth and share gains by advancing its enterprise strategy, with expected run-rate cost savings of at least $20 million this year, which should enhance operational efficiency and competitiveness [6] - KWR anticipates revenue, adjusted EBITDA, and earnings growth in 2025 [6]

Financial Data and Key Metrics Changes - The bank reported adjusted earnings of $2.2 billion or $1.76 per share, reflecting a 15% year-over-year growth in noninterest revenue [9][40] - Return on equity improved to 11.8% from 10.6% in the previous quarter, with return on tangible common equity at 14.3% [41][112] - Revenues increased by 11% year-over-year, driven by both net interest and non-interest income [41][112] - The provision for credit losses was approximately $1.2 billion, with a PCL ratio of 60 basis points, up 6 basis points quarter-over-quarter [42][64] Business Line Data and Key Metrics Changes - Canadian Banking reported earnings of $914 million, down 6% year-over-year due to higher loan loss provisions and expenses [47] - Global Wealth Management delivered earnings of $414 million, up 23% year-over-year, driven by higher mutual fund fees and wealth advisory revenues [50][91] - Global Banking and Markets had earnings of $517 million, up 33% year-over-year, with capital markets revenue increasing by 41% [53][94] - International Banking delivered earnings of $657 million, down 7% year-over-year, with a PCL ratio of 146 basis points [57][70] Market Data and Key Metrics Changes - The bank's overall funding profile strengthened with year-over-year deposit growth of 4%, reducing the loan-to-deposit ratio to 105% [85] - Retail deposit growth was up 4% year-over-year, with commercial business generating over $10 billion in deposit growth [98][99] - Digital active clients at Tangerine reached an all-time high of 1.4 million [100] Company Strategy and Development Direction - The bank is focused on allocating incremental capital and resources to priority markets, including a recent investment in KeyCorp [12][84] - The strategy emphasizes value over volume, with initiatives like Mortgage+ and Scene+ to enhance client acquisition [15][86] - The bank aims to improve operational excellence and return discipline, targeting stronger ROE performance across business lines [18][89] Management's Comments on Operating Environment and Future Outlook - Management acknowledged heightened geopolitical uncertainty and a less certain economic outlook, particularly in the U.S. and Mexico [35][106] - The bank is taking a conservative approach to navigate potential economic disruptions and is well-positioned to fund organic growth while resuming dividend growth [34][72] - Confidence remains in the bank's ability to manage through challenging periods while supporting clients [72][108] Other Important Information - The bank's CET1 capital ratio remained strong at 12.9%, with total risk-weighted assets at $468 billion [45][116] - The bank generated positive operating leverage of 2.8%, with a productivity ratio of 54.5% [44][114] - The effective tax rate increased to 23.8% due to changes in earnings mix and the implementation of the global minimum tax [44][112] Q&A Session Summary Question: What are the expectations regarding the impact of potential tariffs? - Management indicated that PCLs would remain elevated due to macroeconomic uncertainty and potential tariffs, with a base case scenario including modest tariff risks [63][70] Question: How is the bank addressing client acquisition and retention? - The bank is enhancing client acquisition strategies through initiatives like Mortgage+ and Scene+, with significant growth in primary clients [15][87] Question: What is the outlook for earnings growth in 2025? - The bank is on track to deliver earnings growth towards the higher end of the 5% to 7% range, excluding potential tariff impacts [104][106]