Olin Corporation · NYSE:OLN
Olin — Buckingham Research Boston (June 2004)
81 slides from Olin's conference presentation, Jun 23, 2004
Slide 1: Buckingham Research Boston June 23, 2004
EX99_1 Buckingham Research Boston June 23, 2004
Slide 2: Attending Today
Attending Today Joseph D. Rupp – President and Chief Executive Officer Anthony W. Ruggiero – Exec. VP and CFO John L. McIntosh -- President, Chlor Alkali Products John E. Fischer – Vice President, Finance Richard E. Koch – Vice President, Investor Relations and Public Affairs
Slide 3: Company Overview
Company Overview Olin Year Ending Dec. 2003 Revenue: $1,586 Op. Inc.: 53 Metals Specialty Copper-Based Products and Related Engineered Materials Revenue: $883 Op. Inc.: 11 Chlor Alkali North American Producer of Chlorine and Caustic Soda Revenue: $400 Op. Inc.: 63 Winchester North American Producer
Slide 4: Olin Corporate Strategy
Olin Corporate Strategy Olin Corporation Goal: Superior Shareholder Returns TRS in Top Third S&P Mid Cap 400 ROCE Over Cost of Capital Over the Cycle Focused Portfolio of Businesses Improve Profitability of the Metals Business Increase the Value of and Generate Cash From Chlor Alkali Leverage Winche
Slide 5: Investment Highlights
Investment Highlights Significant Operating Leverage Chlor Alkali Selling Prices Forecast to Improve Sequentially as Year Progresses Particularly as a Result of Higher Caustic Prices A Better Economy Is Expected to Improve Metals Results Winchester Has Additional Earnings Potential from Defense Rela
Slide 6: First Quarter 2004
First Quarter 2004 Sales Increased 25% vs. 2003 Earnings Per Share, Without Restructuring and Other Charges, Were $0.13 in ‘04 vs. $0.09 in ‘03. (See Non-GAAP Reconciliation at End of Presentation.) Restructuring Charge of $0.09 Per Share in 1Q’04 Associated With Previously Announced Corporate Reloc
Slide 7: Second Quarter
Second Quarter Yesterday We Raised Our EPS Projection From Breakeven to $0.10 Per Diluted Share Range Costs Associated With the Fire at East Alton, IL Were $0.05 Per Share; Lower Than Expected Announced a Gain of $0.05 Per Share Related to the Sale of Aegis
Slide 8: Full-Year Fire
Full-Year Fire Costs Realized in the Second Qtr. Hot Mill Returned to Normal Operation on Schedule in Mid May Production Ramped up More Rapidly Than Expected Inventory Levels Returning to Normal Earlier Than Expected
Slide 9: Metals
Metals Olin is Leading Manufacturer of Copper Alloy Strip and Brass Rod in the U.S. Large Size Provides Economies of Scale and Manufacturing Efficiencies Olin Possesses Leading Technology Position Olin is the Leading Copper Based Sheet and Strip Distributor in the U.S.
Slide 10: Metals
Metals Significant Earnings Leverage as a Result of Cost Cutting and Capacity Rationalization As the Following Slides Show, 2001, 2002 and 2003 Were Well Below Historical Consumption In the First Quarter of 2004, Demand Increased Year-Over-Year for Both Sheet and Rod Products
Slide 11: Metals Income Increased
1Q’04 Metals Income Increased First Quarter 2004 vs. 2003 Sales Increased 41% From $222 Million in 1Q’03 to $314 Million in 1Q’04 Shipment Volumes Increased 13% Higher Copper Prices and Product Mix Accounted for 28% Operating Income Increased From $3.4 Million in 1Q’03 to $14.7 Million in 1Q’04 Ship
Slide 12: Second Quarter Industry Demand Strengthening
Second Quarter Industry Demand Strengthening Demand for Strip and Rod Has Been Growing Second Quarter Metals Volumes Up at Least 10% Over Last Year Rod May Be Stronger
Slide 13: U.S. Strip Consumption
U.S. Strip Consumption In MM Pounds 1800 1600 1400 1200 1000 800 600 400 200 0 1998 1999 2000 2001 2002 2003 We believe the normalized consumption is somewhat below 1.3 billion pounds per year. If 2004 consumption continues at same rate of growth as it has had through April, it will be approx. 1.2 b
Slide 14: U.S. Brass Rod Consumption
U.S. Brass Rod Consumption In MM Pounds 1200 1000 800 600 400 200 0 1998 1999 2000 2001 2002 2003 If 2004 consumption continues at same rate of growth as it has had through April, it will be approx. 900 million pounds.
Slide 15: China Joint Venture
China Joint Venture Olin-Loutong Metals (GZ) Ltd., Co. Distribution Center in Guangzhou, China Will Process and Distribute Both Olin and Luoyang’s Copper Alloy Products Became Operational in 1Q’04
Slide 16: Metals Summary
Metals Summary We See Improving Macro-Economic Factors Historically our Businesses Generally Lag the Recovery by About Six Months Lead Times and Visibility Have Improved Improved Volumes and Aggressive Cost Reductions Will Improve Profits
Slide 17: Winchester Products
Winchester Products Products Winchester ® sporting ammunition — shot-shells, small caliber centerfire & rimfire ammunition Small caliber military ammunition Industrial products — 8 gauge loads & powder-actuated tool loads End Uses Hunters & recreational shooters, law enforcement agencies Infantry an
Slide 18: Winchester First Quarter 2004 vs. 2003
Winchester First Quarter 2004 vs. 2003 Sales Up 6% From $71 Million in 1Q’03 to $75 Million in 1Q’04 Primarily Due to Higher Commercial Demand Operating Income Increased to $6.1 Million, From $5.9 million in 1Q’03 Higher Commercial Sales Offset in Part by Increased Manufacturing Costs
Slide 19: Rimfire
Rimfire To Improve Its Competitive Position, Winchester is Considering Relocating Its Rimfire Manufacturing Operation from East Alton No Final Geographic Decision Made As Yet
Slide 20: Winchester's Military Business Is Growing
Winchester’s Military Business Is Growing In May 2004, Winchester began deliveries of 5.56 mm M855 Ball ammunition as part of a $18 million contract. Winchester has recently been awarded a $6.5 million contract by the US Army to produce 7.62 mm M80 Ball linked ammunition with deliveries beginning in
Slide 21: Chlor Alkali Products
Chlor Alkali Products First Quarter 2004 vs. 2003 Olin ECU Prices Were Below 1Q’03 ($300 vs. $315) Due to Falling Caustic Prices Demand Was Higher 1Q’04
Slide 22: Olin Chlor Alkali Factors
Olin Chlor Alkali Factors Olin Operating Rates Expected to Be at Capacity (ex. Planned Outages) in 2Q’04 Olin’s Electricity Costs, a Key Component of Manufacturing Costs, Have Remained Relatively Stable Over Time, But Have Shown Some Seasonal Increase High Gas Prices Impacting Other Chlor Alkali Pro
Slide 23: Olin Has Leading Capacity Share in Eastern U.S.
Olin Has Leading Capacity Share in Eastern U.S. Total Industry Capacity Bayer 2% Mexichem 2% Georgia Gulf 3% Vulcan 6% Pioneer 5% Formosa 6% Olin 9% PPG 12% Occidental 19% Dow 31% Other 5% Source: CMAI Chlor Alkali Report 4th Overall in U.S. Capacity #1 Capacity Share East of the Mississippi River S
Slide 24: U.S. Chlorine Uses
U. S. Chlorine Uses 2003 Demand Inorganics 5% Organics 28% Chlorinated Intermediates 9% Vinyl 39% Water 5% Pulp & Paper 1% Other 13% Source: CMAI
Slide 25: U.S. Chlorine Segment Growth 2003-2008
U.S. Chlorine Segment Growth 2003 - 2008 2.8% 2.1% -0.7% 1.3% 1.8% 0.1% -0.3% 1.0% AAGR Other Water P&P Inorganics Organics Urethanes Vinyl (100) - 100 200 300 400 Annual Demand Increase (‘000 ST/Y) %s are Segment Annual Growth CMAI Data
Slide 26: U.S. Caustic Soda Demand
U. S. Caustic Soda Demand P&P 26% Others 10% Soaps/Detergents/Textiles 11% Inorganic 23% Organic 24% Water 3% Alumina 3% Source: CMAI
Slide 27: U.S. Caustic Segment Growth 2003-2008
U.S. Caustic Segment Growth 2003—2008 1.3% AAGR -2.5% 3.2% 1.7% 1.5% -1.5% 2.2% 0.0% 0.3% (200) (100) - 100 200 300 400 Net Exports Other Water Inorganics Textile Organics Alumina P&P %s are Segment Annual Growth Annual Demand Increase (‘000 ST/Y) CMAI Data
Slide 28: Key Changes in Market Segment Growth 2003-2008
Key Changes in Market Segment Growth 2003—2008 Chlorine EDC, PVC exports from US expected to be reduced due to current and future projections for US energy pricing Caustic Capacity increases in Middle East and Far East expected to reduce US exports of caustic Net export category reflects increased i
Slide 29: Industry Highlights
Industry Highlights Chlorine demand remained relatively flat in 2003, but operating rates improved with industry rationalization continuing The 2003 average ECU pricing rose some $120 over the 2002 low point despite weakening caustic values in the second half of 2003 North American chlor alkali capa
Slide 30: U.S. Chlor Alkali Forecast
U.S. Chlor Alkali Forecast North American Chlor Alkali Capacity Reductions Since 2000 Company Location Short Tons as Chlorine Dow Plaquemine, LA 385,000 Oxy Vinyls LP Deer Park, TX 382,800 Pioneer Tacoma, WA 226,600 Atofina Portland, OR 224,400 La Roche Gramercy, LA 198,000 Dow Ft. Saskatchewan 159,
Slide 31: CMAI Estimates of ECU Prices
CMAI Estimates of ECU Prices* (For Chlorine to Chemicals and Diaphragm Grade Caustic) $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 * ECU Prices Before Freight and Other Allowances
Slide 32: Recent Price Increase Announcements
Recent Price Increase Announcements Generally Consistent with CMAI Forecast Late April: Caustic $ 50 per ton for Commercial Grade; Higher Amounts for Other Grades Late May: Caustic $ 45 Additional Late May: Chlorine $20 Additional to Record High CMAI Contract Levels Announcements Are Effective Immed
Slide 33: Impact Of High Chlorine Prices On Profitability
Impact Of High Chlorine Prices On Chlor Alkali Profitability Chlorine Buyers are Highly Concentrated Large Chlorine Users Have Contractual Caps and /or Discounts Which Dampen Impact of Price Increases at High End of Contract Range Chlorine Contracts are Multi-Year and Recognize Cycle Pricing Trends
Slide 34: Caustic Price Increases Are A Key to Higher ECU Values
Caustic Price Increases Are A Key to Higher ECU Values Historically, Olin’s Chlor Alkali Business Has Seen Peak Earnings During Times of High Caustic Prices Caustic Customers are Smaller and More Numerous Caustic Demand Improvement Normally Lags Chlorine by Six Months Olin Sells 10% More Caustic Tha
Slide 35: Olin's Chlor Alkali Strategy
Olin’s Chlor Alkali Strategy Be the Preferred Supplier to the Merchant Chlor- Alkali Customers Continue to Drive Cost Improvements Through Manufacturing and Logistic Optimization Continue Our Partnership Philosophy With Our Customers Significant Opportunities to Increase the Value of the Business (B
Slide 36: Second Quarter Update
Second Quarter Update ($ millions) Est. Pretax Income Est. Net Income (1) Est. EPS (2) April 29 Forecast $10 $6 $0.10 Impact of Fire (10) (6) (0.10) May 3 Forecast 0 0 0.00 Gain on Sale of Aegis 5 3 0.05 Change in Impact of Fire 5 3 0.05 Assumes 41% effective tax rate Based on approximately 70 milli
Slide 37: Financial Highlights
Financial Highlights February Stock Issuance Strengthened Balance Sheet and Increased Financial Flexibility $125 Million Pension Contribution Made in February 2004 Possible Additional $40 Million Voluntary Contribution in 2005 Expected Debt Repayments of $27 Million in 2004 and $52 Million in 2005
Slide 38: Financial Highlights (continued)
Financial Highlights(continued) Pension Expense Increasing Over 2003 and Expected to Increase Approximately $10 Million Per Year Through 2007 Projected 2004 Effective Tax Rate of 41% Commitment to Investment Grade Credit Rating Capital Spending Levels Expected to Continue at Less Than Depreciation
Slide 39: Cap. Ex. and D&A
Cap. Ex. and D&A 76 78 78 78 73 80 1999 95081 2000 65 87 2001 41 88 2002 55 82 2003 67 77 2004E
Slide 40: Investment Rationale
Investment Rationale Potential for Improved Performance Based On: Higher Expected ECU Prices in the Next Several Years An Improved Economy Is Expected to Improve Metals Results Winchester Participation in Increased Military Spending Strong Financial Discipline Commitment to Investment Grade Rating D
Slide 41: Corporate Office Moves
Corporate Office Moves Closing Norwalk, CT Headquarters and Moving by End of 2004 Decision Driven By Organizational, Strategic, Economic Reasons One-time Costs of Approximately $12 Million; Annualized Savings of about $6 Million
Slide 42: Forward-Looking Statements
Forward-Looking Statements This presentation contains estimates of future performance, which are forward-looking statements and results could differ materially from those anticipated in the forward-looking statements. Some of the factors that could cause actual results to differ are described in the
Slide 43: Proud Heritage ... Promising Future
Proud Heritage … Promising Future
Slide 44: The Following Slides Are Provided as Background Information
The Following Slides Are Provided as Background Information and Come Primarily from Previous Presentations. These Slides May or May Not Be Used in the Presentation. In Some Cases, They Are Duplicate Slides From What Was Covered in the Above Slides.
Slide 45: Profit Summary - First Quarter 2004
Profit Summary From Earnings Release (a) First Quarter—2004 Operating Pretax Tax Net Diluted Effective Income Income Expense Income EPS Tax rate(b) As Reported $9.2 $5.2 $2.3 $2.9 $0.04 44% Restructuring Charge (c) 8.9 8.9 3.5 5.4 0.09 39% As Adjusted $18.1 $14.1 $5.8 $8.3 $0.13 41% Average Diluted
Slide 46: Profit Summary - First Quarter 2003
Profit Summary From Earnings Release (a) First Quarter—2003 Operating Pretax Net Diluted Income(Loss) Income (Loss) Income(Loss) EPS As Reported ($14.7) ($19.7) ($39.0) ($0.67) Accounting Change (d) - - 25.4 0.44 Restructuring Charge (c) 29.0 29.0 18.7 0.32 As Adjusted $14.3 $9.3 $5.1 $0.09 Average
Slide 47: Profit Summary Notes
Profit Summary From Earnings Release (a) (a) Unaudited (b) The effective tax rate is defined as tax expense divided by pretax income. (c) Reflects the restructuring charge in 2004 for the relocation of our corporate headquarters and the restructuring charge in 2003 for the shutdown of our Indianapol
Slide 48: Definition of Segment Operating Income
Definition of Segment Operating Income Olin defines segment operating income (loss) as earnings (loss) before interest expense, interest income, other income, restructuring charges and income taxes and includes the operating results of non-consolidated affiliates.
Slide 49: Profit Summary
Profit Summary From Earnings Release (In millions, except EPS) The following table summarizes the significant unusual items impacting the reported operating results. Management monitors earnings per share excluding unusual items such as restructuring charges, unusual charges/credits and accounting c
Slide 50: Profit Summary - Full Year 2003 and 2002
Profit Summary From Earnings Release Full Year—2003 Operating Pretax Net Diluted Income/(Loss) Income/(Loss) Income/(Loss) EPS As Reported $21.8 $5.5 ($24.1) ($0.42) Accounting Change (d) - - 25.4 0.44 Restructuring Charge (b) 30.8 30.8 19.8 0.34 As Adjusted $52.6 $36.3 $21.1 $0.36 Average Diluted S
Slide 51: Profit Summary Notes
Profit Summary From Earnings Release (a) Unaudited (b) Reflects the restructuring charge for the shutdown of our Indianapolis Brass mill and certain other actions. (c) Income taxes for the 2002 fourth quarter and year included a provision in connection with the surrender of life insurance policies p
Slide 52: Metals Products
Metals ProductsStrip and Sheet Products End Uses Copper and Copper Alloy Sheet & Strip (standard / high performance) Electronic connectors, lead frames, electrical components, communications, automotive, builders’ hardware, coinage, ammunition Network of Metals Service Centers Electronic connectors,
Slide 53: Overview of Brass Strip Processing
Overview of Brass Strip Processing Olin is the leader in each of these categories. Scrap Metal Virgin Material Casting Hot Mill Coil Miller Cold Rolling Annealing/ Cleaning Slitting Integrated Mills (60%) Olin OAB PMX Revere Hussey Miller Scott Brush Wellman NGK Imports Reroll Mills (11%) Olin Heyco
Slide 54: Key Drivers - Brass Strip
Key Drivers – Brass Strip Sensitive to Changes in the Economy Changes in Demand for Specific Sectors Affect Olin Performance: Automotive Computers Telecommunications Housing Coinage Market Segment Is Sensitive to Swings in the Economy
Slide 55: Olin Brass Competitive Advantages
Olin Brass Competitive Advantages Largest Brass Mill in U.S. Provides Economies of Scale Outstanding Manufacturing Capabilities More Patents Than Competitors Largest Distribution Business in U.S. (A.J. Oster) High Performance Alloys and Specialty Products
Slide 56: Indianapolis
Indianapolis Shutdown Reduced Cost Base and About 10% of Domestic Strip Capacity Completed in Mid-February 2003
Slide 57: Brass Strip Mill Shipment Industry Profile
Brass Strip — Mill Shipment Industry Profile Base Index Index Market Segment 2000 2002 2003 Auto Electrical 100 94 90 Computer/Telecom 100 65 53 Electrical 100 78 74 Bldg./Household 100 138 142 Other Transportation 100 36 28 Other Commercial 100 81 69 Coinage 100 40 30 Ammunition 100 106 120 Exports
Slide 58: Chase Industries
Chase Industries
Slide 59: Chase Competitive Advantages
Chase Chase is a Leader in Brass Rod Competitive Advantages Manufacturing Excellence, Low Cost, High Quality “Blue Dot” Trademark Leading Market Share Customer Service Focus Leverage to Enhance Long-term Profitability and Return on Investment Chase has New Efficient Facilities, Future Cash Flow Pote
Slide 60: U.S. Brass Rod End Uses
U.S. Brass Rod End Uses Exports Consumer & General Electrical & Electronic Transportation Industrial Machinery & Equip. Building Products
Slide 61: Demand Drivers
Demand Drivers Building Products Housing Starts # of Bathrooms – Home Intensity of Use Product Innovation Average Age of Homes Existing Home Sales Low Mortgage Rates Industrial Machinery & Equipment GDP Industrial Production Transportation US Auto Sales Class Eight Truck Sales Consumer & General Pro
Slide 62: Chase Financial Performance
Chase Financial Performance Years Ending December 31 In Millions of Dollars 35 30 25 20 15 10 5 0 1997 1998 1999 2000 2001 2002 2003 Pretax Income
Slide 63: Factors Affecting Chase Brass in 2003
Factors Affecting Chase Brass in 2003 Lower Commercial Construction Less Capital Spending for Industrial Machinery Lower Automotive and Truck Sales Housing Remained at Healthy Levels
Slide 64: Key Drivers - Winchester
Key Drivers - Winchester Supply / Demand Balance Total U.S. Demand: 4.5 Billion Rounds With Excess U.S. Production Capacity Non-Economic Factors Primarily Drive Demand Cycle Political / Regulatory Political Pressure Shifting From Federal to State/local Level Competition Alliant TechSystems (Federal
Slide 65: Winchester Strategy
Winchester Strategy Leverage Existing Strengths to Grow Sales Legendary Winchester® Brand Name Received “Ammunition of the Year” Award For Six Years (1997 –2002) From Shooting Industry Academy of Excellence Manufacturer of the Year Award from National Association of Sporting Goods Wholesalers in 200
Slide 66: Chlor Alkali Products
Chlor Alkali Products Chlorine and Caustic Soda Are Co-Products of Salt Electrolysis The Production of 1 Ton of Chlorine Results in 1.1 Tons of Caustic Soda Together the Two Chemicals Are Called an Electrochemical Unit “ECU” Supply / Demand Determine Pricing
Slide 67: Key Drivers - Chlor Alkali
Key Drivers – Chlor Alkali Chlorine/caustic Demand Driven by General Economic Conditions PVC Is the Largest End-use Market Segment for Chlorine, and Pulp and Paper Is Largest Caustic Market Segment Manufacturing Cost Heavily Dependent on Energy (Natural Gas) No North American Chlor Alkali Producers
Slide 68: Chlor Alkali Competitive Advantages / Strategies
Chlor Alkali Products Competitive Advantages / Strategies Olin’s Electricity Costs Have Been Relatively Stable Over Time Because We Purchase Electricity From Utilities That Are Primarily Coal, Nuclear and Hydro-Power Based Olin’s Sunbelt Joint Venture Has Low Manufacturing Costs Due to Membrane Tech
Slide 69: Chlor Alkali Competitive Advantages / Strategies
Chlor Alkali Products Competitive Advantages / Strategies Focus on Being the Preferred Supplier to Merchant Chlor Alkali Customers Continue Our Partnership Philosophy With Our Customers Continue to Drive Cost Improvements Through Manufacturing and Logistics Optimization Significant Opportunities to
Slide 70: Why Olin's ECU Netbacks Differ
Why Olin’s ECU Netbacks Differ from Other Chlor Alkali Producers Methodologies and Definitions May Differ Among Producers Degree of Chlorine Integration Across the Producers Pricing to Customers Can Vary Depending on Customer End Use and Location and Method of Shipment (Pipeline, Railcar, Truck, Bar
Slide 71: Olin's Chlor Alkali System
Olin’s Chlor Alkali System Olin Contracts Nearly 100% of Its Chlorine and Caustic Sales On About Two-Thirds of the Chlorine and Caustic Volumes, Prices Change Quarterly, with a Combination of Formula-based and Negotiated Pricing Many Contracts Have a One Quarter Lag in Them, Which Delays Price Incre
Slide 72: Manufacturing Cost Structure
Manufacturing Cost Structure “Typical” Gulf Coast Diaphragm Plant Nat. gas @ $2.00/mmbtu Steam, less H2 Salt 12% credit 3% Fixed Cost 43% Electric Power 40% Other Variable 2%
Slide 73: Manufacturing Cost Structure
Manufacturing Cost Structure “Typical” Gulf Coast Diaphragm Plant Nat. gas @ $5.5/mmbtu Steam, less H2 Salt 9% credit 4% Fixed Cost 30% Other Variable 1% Electric Power 56%
Slide 74: Pension Plan
Pension Plan At 12/31/2003, Pension Plan Under-funded by Approximately $400 MM (as measured under SFAS 87) Before Recent $125 MM Pension Contribution. During 2003, a 24% Gain in Value of Plan Assets Was More Than Offset by Interest Rate Effect In 2002, We Recorded a Pretax Charge of $360 MM ($220 MM
Slide 75: Pension Plan (continued)
Pension Plan (continued) Based on revised assumptions and estimates taking into account the recently passed Pension Funding Equity Act of 2004, we may make a voluntary contribution to the pension plan in the $40 million pretax range in 2005 and, as a result, no other contributions would be required
Slide 76: February 2004 Stock Offering
February 2004 Stock Offering 10 Million Shares of Common Stock Done Overnight on February 3, 2004 Net Proceeds: $178 Million $125 Million Contributed to Pension Plan $53 Million for General Corporate Purposes Debt Maturities: March 2004 = $17.5 Million; June 2004 = $8.1 Million; June 2005 = $50 Mill
Slide 77: Rationale for Stock Issuance
Rationale for Stock Issuance Strengthens Balance Sheet and Increase Financial Flexibility Companies with Stronger Financial Positions Have Better Multiples Company Stock Price Was Close to 52-Week High and Reasonably Close to Its Average High Price for the Past 5 Years Market Receptive to Chemical E
Slide 78: Stock Offering
Stock Offering Accretive Up to EPS of $0.90 Assumed Use of Proceeds Proceeds Pretax After Tax EPS Pension Return 9% 125.0 11.3 6.9 0.69 Debt $17.5 at 6.875% 17.5 1.2 0.7 0.07 Debt $8.1 at 4.5% 8.1 0.3 0.2 0.02 Series A notes at 7.11% 27.4 1.9 1.2 0.12 178.0 14.7 9.0 0.90 All values in $ millions, ex
Slide 79: Key Initiatives
Key Initiatives Have Increased Olin’s Financial Flexibility Completed $200 Million Public Senior Note Offering on December 11, 2001 Closed on $140 Million Three-Year Revolving Credit Facility on January 3, 2002 Completed Common Stock Offering on March 11, 2002 Which Raised $56 Million and Lowered Ol
Slide 80: Financial Policies and Objectives
Financial Policies and Objectives Commitment to Maximizing Total Return to Shareholders (TRS) Over the Long Run Commitment to Lower Cost Structure Targeted Headcount Reductions Optimized Manufacturing Reduced Capital Spending Commitment to Investment Grade Rating Commitment to Maximizing Return on C
Slide 81: Olin's Demonstrated Shareholder Orientation
Olin’s Demonstrated Shareholder Orientation Compensation System Assures Alignment With Shareholder Interests Long Term Incentive Plan is 100% Stock Options and Performance Shares Senior Management Compensation Highly Oriented to Stock Performance Stock Ownership Guidelines for Senior Management Boar