Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation October 27, 2023
Slide 2: Forward-Looking Statements
Forward‐Looking Statements: This presentation includes forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, fore
Slide 3: Results & Outlook
Results & Outlook Olin Quarterly Adjusted EBITDA 3Q23 Highlights Last FY $US Millions $700 Peak • Olin’s chlorine price held steady quarter over quarter $600 • Freeport VCM plant operating normally after $100 million $500 incremental 2Q/3Q EBITDA impact $400 New FY $300 Trough • Epoxy Systems profit
Slide 4: Expected 2024 benefit of Olin's ECU Value Accelerator Initiative
Expected 2024 benefit of Olin’s ECU “Value Accelerator Initiative” • Positive inflection evidence becomes apparent in 2Q24 • Broad optionality returns to Olin’s chlor‐alkali system • Reasons why we achieve a positive ECU value inflection: – Caustic • Less Olin material enters global trade flows, gen
Slide 5: Appendix
Appendix
Slide 6: ESG Quarterly Highlight
ESG Quarterly Highlight >40,000 YTD HOURS OF OLIN EMPLOYEE VOLUNTEERISM 4X FULL YEAR 2022
Slide 7: ESG Scorecard: Environmental
ESG SCORECARD 2022 % Change Climate: Olin Corporation, Global Operations 2022 2021 from baseline 1, 6 Target (year) Total Energy (Direct & Indirect) (MM GJ) 74.1 83.1 ‐23% % Electricity from Renewable Energy/Low Carbon Sources 2 7.1% 7.2% 20% Scope 1 CO2e Emissions (Million Mt CO2e) (Includes Trucki
Slide 8: Delivering on our Value Strategy
Delivering on our Value Strategy 3Q23 ECU PCI Parlay Volume Tracker 20% 19.0% 17.7% % Parlay Tons / Total Quarterly Sales Volume1 18% 16.1% 294 287 16% 261 262 257 255 14% 12.2% Index 238 222 12% 10.6% 211 9.7% 9.8% 192 10% 8.7% 8.1% 7.5% 148 8% 6.4% 106 6% 4.6% 100 93 100 Olin ‐ ECU PCI 4% Winning
Slide 9: 2023 Levered Free Cash Flow estimated to be ~$600 million
2023 Levered Free Cash Flow (LFCF) estimated to be ~$600 million ($ in millions) $145 $25 $238 $175 $115 Primary uses of 2023 LFCF: • Share repurchases • Shareholder dividends • Alliance/Joint Venture opportunities • White Flyer Acquisition ~$1.3 Billion Cash Taxes 2 Change in Capital Interest 5 Oth
Slide 10: Strong financial profile for a challenging economic environment
Strong financial profile for a challenging economic environment 2021 + 2022 2023 OUTLOOK • 2021 ‐ $2.5 Billion • Recessionary trough level ADJUSTED • 2022 ‐ $2.4 Billion Adjusted EBITDA EBITDA ~$4.9 Billion ~$1.3 Billion • Debt reduction $1.3B • Disciplined capital allocation LEVERED FREE • Share re
Slide 11: Winchester Segment Performance
Winchester Segment Performance Sales Adjusted EBITDA (in millions) (in millions) $366.6 $380.2 $71.0 $71.1 Sequential: 3Q23 vs 2Q23 – Lower commercial pricing – Higher domestic and international military volume – Lower commodity and manufacturing costs 2Q 2023 3Q 2023 2Q 2023 3Q 2023 +4% +0% $414.1
Slide 12: Chlor Alkali Products & Vinyls Performance
Chlor Alkali Products & Vinyls Performance Sales Adjusted EBITDA (in millions) (in millions) $1,002.3 $969.6 $293.4 $279.9 Sequential: 3Q23 vs 2Q23 – Lower pricing, mainly caustic soda and EDC – Lower raw material and operating costs 2Q 2023 3Q 2023 2Q 2023 3Q 2023 ‐3% ‐5% $1,263.5 $375.0 Year‐Over‐
Slide 13: Epoxy Segment Performance
Epoxy Segment Performance Sales Adjusted EBITDA (in millions) (in millions) $333.8 $14.7 $321.6 Sequential: 3Q23 vs 2Q23 – Lower pricing – Incremental costs from inventory reductions ‐$14.1 – Higher volumes; improved 2Q 2023 3Q 2023 2Q 2023 3Q 2023 product mix ‐4% ‐196% $644.1 $100.2 Year‐Over‐Year:
Slide 14: Outlook: Full year 2023 modeling assumptions
Outlook: Full year 2023 modeling assumptions ($ in millions) Line Item Forecast Key Elements Capital Spending $225 to $250 Expected to be similar to 2022 levels Depreciation & Amortization ~$535 Expected to be lower than 2022 levels Payments Under Long‐term Participation in energy project $75 to $10
Slide 15: Non-GAAP Financial Measures – Adjusted EBITDA
Non‐GAAP Financial Measures – Adjusted EBITDA (a) Olin's definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net income (loss) plus an add‐back for depreciation and amortization, interest expense (income), income tax provision (benefit), other expense (
Slide 16: Non-GAAP Quarterly Financial Measures by Segment
Non‐GAAP Quarterly Financial Measures by Segment (a) Three Months Ended Three Months Ended Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022 Income (Loss) Reconciling Depr and Adjusted Income (Loss) Reconciling Depr and Adjusted Income (Loss) Reconciling Depr and Adjusted (In mi
Slide 17: Non-GAAP YTD Financial Measures by Segment
Non‐GAAP YTD Financial Measures by Segment (a) Nine Months Ended Nine Months Ended September 30, 2023 September 30, 2022 Income (Loss) Reconciling Depr and Adjusted Income (Loss) Reconciling Depr and Adjusted (In millions) before Taxes Items Amort EBITDA before Taxes Items Amort EBITDA Chlor Alkali