Owens Corning 8K Regulation FD Disclosure | OC 28 Feb 07

Owens Corning

Fiscal Q4 and 2006 Year in Review

February 28, 2007

Exhibit 99.1

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Forward-looking Statement and Non-GAAP Measures

This presentation contains forward-looking statements within the meaning of

Section 27A of the Securities Act of 1933, as amended, and Section 21E of the

Securities Exchange Act of 1934, as amended. These forward-looking statements

are subject to risks and uncertainties that could cause actual results to differ

materially from those projected in these statements. The forward-looking

statements speak only to the dates hereof and are subject to change. The

Company does not undertake any duty to update or revise forward-looking

statements.

Further information on factors that could affect the company's financial and other

results is included in the company's Forms 10-Q and 10-K, filed with the Securities

and Exchange Commission. Additional company information is available on the

Owens Corning Website: www.owenscorning.com.

Certain data included within this presentation contains "non-GAAP financial

measures"

defined

the

Securities

and

Exchange

Commission.

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

found

our

Form

8-K,

dated

February 21, 2007 and on our website referenced above.

Management Representatives

David Brown

President and Chief

Executive Officer

Michael Thaman

Chairman of the Board and

Chief Financial Officer

Scott Deitz

Vice President, Investor

Relations

•

President & CEO since 2002

•

Joined Owens Corning in 1978

•

Chairman of the Board since 2002

•

Chief Financial Officer since 2000

•

Joined Owens Corning in 1992

•

VP, Investor Relations since 2006

•

Joined Owens Corning in 2005

Owens Corning Today

•

Fiscal 2006 sales of $6.5 billion, 19,000 employees in 26 countries

•

Leader in building materials systems and high-performance glass

composites

•

Best

known

for

PINK

FIBERGLAS

home

insulation

•

Four business segments

–

Insulating Systems

–

Composite Solutions

–

Roofing & Asphalt

–

Other Building Materials & Services

2006

Fortune

Magazine

Most

Admired

Company

the

building

materials

category;

50+ consecutive years on the Fortune 500

Market Leadership &

Our Strong Brand Equity

Leading North America Market

Positions

•

Residential Insulation

•

Commercial & Industrial Insulation

•

Manufactured Stone Veneer

•

Residential Shingles

•

Roofing Asphalts

Global Leader

•

Glass Fiber Reinforcement

Materials used for Composites

Fiscal 2006 In Review

•

Record sales of $6.461 billion, up 2.2% over 2005

•

Adjusted Income from Operations of $569 million, up

4.6% compared with $544 million in 2005

•

Gross margin as a percent of sales, excluding Fresh-

Start Accounting and other restructuring charges,

17.5%, compared with 18.3% in 2005

•

SG&A 8.3%, compared with 8.9% in 2005

2006 Income from Operations (IFO)

$433

Provision for Asbestos Litigation

($13)

C-11 Related Reorganization Items

$55

Other Items

(1)

$94

Total Adjustments

$136

2006 Adjusted Income from Operations

$569

2006 Depreciation and Amortization

(2)

$278

Adjustments to remove items

impacting comparability

Reconciliation of 2006 Adjusted to Reported IFO

($MM)

(1)

Includes the impact

of inventory write-up of $44MM; write-off of in-process R&D of $21MM; restructuring activities of $55MM;

gain on sale of metals of ($45MM); and other of $19MM

(2)

Includes $21MM

write-off of in-process R&D

Fiscal Q4 & Fiscal 2006 Dynamics

•

Downturn in U.S housing starts

impacted performance, especially

Insulating Systems

•

Below trend-line storm demand, high

asphalt prices and inventories

depressed Roofing & Asphalt results

•

Exit of HOMExperts business;

improved productivity within

manufactured stone veneer

•

Performance improvement in

Composite

Solutions Business,

especially reinforcements, continues

2006

•

Emergence from asbestos-related

Chapter 11, with finality

•

Investment-grade credit ratings

achieved

•

Global Composites JV with Saint-

Gobain announced

•

Strong cash generation

•

R’s on Us™

introduced

•

Innovative

Duration™

Series

roofing

shingle

with

SureNail®

technology introduced

Balanced Portfolio of Varied End Markets

Revenue by End Market

2006 Revenue: $6.5 billion

U.S. & Canada

New Residential

Construction

36.0 %

U.S. & Canada

Residential

Repair &

Remodeling

34.0 %

U.S. & Canada

Commercial &

Industrial

18.0 %

International

12.0 %

Source: Management Estimates

Business Segment Overview

(1)

Percentages by segment based on revenue of $6.6B before corporate eliminations

(2)

Percentages based on segment results before reconciliation to income (loss) before income tax expense

2006

Income

Before

Income

Tax

Expense:

$711

million

(2)

Insulating

Systems

32%

Roofing and

Asphalt

26%

Composite

Solutions

23%

Other Building

Materials & Services

19%

Insulating

Systems

66%

Roofing and

Asphalt

10%

Composite

Solutions

22%

Other Building Materials & Services

2006

Revenue:

$6.5

billion

(1)

Insulating Systems

2006 Revenue by End Market

U.S. & Canada

New

Residential

Construction

60%

U.S. & Canada

Repair &

Remodeling

13%

U.S. & Canada

Commercial &

Industrial

19%

International

Financial performance ($MM)

500

1,000

1,500

2,000

$2,500

2003

2004

2005

2006

10%

15%

20%

25%

Sales

IFO Margin

Management Estimates Based on Channel and Product Mix

Roofing & Asphalt

2006 Revenue by End Market

U.S. & Canada

Commercial & Industrial

12%

U.S. & Canada

New

Residential

Construction

21%

U.S. & Canada

Residential

Repair & Remodeling

67%

500

1,000

1,500

2,000

2003

2004

2005

2006

10%

Financial performance ($MM)

Sales

IFO Margin

Management Estimates Based on Channel and Product Mix

Other Building Materials & Services

2006 Revenue by End Market

U.S. & Canada

New

Residential

Construction

55%

U.S. & Canada

Residential Repair

& Remodeling

42%

U.S. & Canada

Commercial & Industrial

200

400

600

800

1,000

1,200

$1,400

2003

2004

2005

2006

10%

•

Manufactured Stone Veneer

•

Vinyl Siding, Norandex/Reynolds

Distribution (Exploring Strategic alternatives)

•

Franchising/Construction Services

Financial performance ($MM)

Sales

IFO Margin

Management Estimates Based on Channel and Product Mix

Composite Solutions

2006 Revenue by End Market

U.S. & Canada

Commercial

& Industrial

36%

U.S. & Canada

Residential Repair

& Remodeling

13%

U.S. & Canada

New Residential

Construction

International

47%

200

400

600

800

1,000

1,200

1,400

1,600

$1,800

2003

2004

2005

2006

12%

Financial performance ($MM)

Sales

IFO Margin

Management Estimates Based on Channel and Product Mix

Strategic Actions

•

Signed JV agreement to merge OC’s composites and

reinforcements business with Saint-Gobain’s

–

Estimated world-wide revenues of $1.8 billion, 10,000 employees

–

Strengthened presence in developed and emerging markets

–

Owens Corning 60% ownership; Saint-Gobain 40%

–

OC option to purchase after 4 years

•

Exploring strategic alternatives for Siding Solutions Business &

Fabwel unit; mid-year completion

•

Owens Corning share buy-back program

–

Authorized to purchase up to 5% of Owens Corning’s outstanding

common stock

–

At current share price, represents approximately $200 million

–

Promote total return and value to shareholders

2007 Outlook

•

Housing start slow down continues well into 2007

•

First quarter weak, results improving through the year

•

Insulating Systems Business to lag starts by 90 days

•

Roofing & Asphalt improvement expected through the year

•

JV completed with continued improvement in composites results

through the year

•

As a result of emergence, NOL of $2.8 billion resulting in estimated

cash taxes to

be 10% to 15% of pre-tax income for the next five to

seven years

•

Owens Corning’s Adjusted Income from Operations estimated to

exceed $415 million in 2007, based on current NAHB forecasts for

2007

US. housing starts

Owens Corning Financial Strategies

•

Financial performance & discipline

–

Strong operational Cash Flow to foster growth and innovation

–

Continued focus on Return on Net Assets in excess of

Cost of Capital

•

Balanced use of Free Cash Flow

–

Maintain strong balance sheet and sustain investment-grade credit

profile

–

Invest maintenance capital –

estimated at 80% of depreciation

–

Invest remainder of depreciation to improve and grow operations

–

Focused and disciplined organic growth and acquisitions

–

Support shareholder returns

Questions & Discussion

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Owens Corning (OC) 8-KRegulation FD Disclosure